Private via Panama 3 Adelaide Place King Wm. Street London 31st Decemr. 1866 My dear Sir I am compelled to commence this before the mail (November) via Panama is to hand. It is telegraphed off Sheen Castle so should be delivered tomorrow but as it does not give one beyond a few hours wherewith to answer letters I must write in anticipation of the delivery. It was with deep concern I learnt of the warlike measures which the rebel Hau Haus had forced you to take, at the same I cannot express how gratified I feel upon reading the account of the decisive and well merited chastisement which they received from the hands of the settlers. I earnestly hope it has been the means of stamping out the rebellious tendency. Allow me to congratulate you upon the success which has attended your policy. I know you are slow to anger and would infinitely prefer subduing the misguided natives by acts of forbearance and kindness, at the same time no one knows better than you do when to strike and when it comes to blows I think the lesson you have taught them will make them hesitate before again provoking you to arms. The settlers of Hawkes Bay deserve great praise and I am thankful the loss of life is so small. I am most anxious to see whether the affair at Petane has quenched the outburst of war in the district or whether it has only kindled it in other places - It is causing an uneasiness to the friends of settlers but whenever I get the opportunity I do my best to quiet their fears. The mail via Suez with news from N. Z. to 15 Nov. is telegraphed but as there is not a word reported about N. Z. I gather from it that there has been no more fighting for Melbourne is only too ready to report whatever is unfavorable to N. Z. The news of the Petane affair arrived a few days after the Montmorency sailed - It was fortunate inasmuch as it would probably have influenced some of the Emigrants. I have sent you by this mail all the papers and Miss Rye also writes you fully. The embarkation of the Emigrants was much marred by the frightful weather that we had at the time. Miss Rye also ordered the people up one day too soon, on the 4th instead of the 5th - Altho it entailed every one interested in the shipment much extra trouble, all were taken on board - I send you an extract taken from the Times newspaper, also a Leader from the Daily Telegraph - Reporters from both papers were down at the ship, but when you read that, you would hardly suppose that their visits were paid during torrents of rain, causing such confusion and mess, that no human power could avert. I dreaded their verdict when I was doing my best to point out the arrangements and could not help smiling at the brilliant colours in which the Telegraph laid it before the public. I hope the public notice will do good to the province. I have already pointed out to you the somewhat arbitrary way in which Miss R. has disregarded the Government instructions. In this case I was compelled to give way otherwise I should have got her into a mess and no doubt brought upon myself the displeasure of many in the province, but I beg you will for the future transactions in which I may have to do with the Lady, give me Definite orders, I am aware you did this before but if you point out that I am in no wise to deviate from them I shall take good care to carry them out. Do not conclude that Miss Rye and myself do not pull together, we get on admirably, but having been for so long a Government officer you can suppose my position is not satisfactory one when I am forced to deviate from my instruction, especially as the extent to which it has been done is considerable. The blot on the shipment of the Montmorency is the case of the man Wye who has left his own wife and family and gone off with another mans wife. They appear to have arranged a most deceptive game I hope you will be able to punish them. Miss Rye sends full particulars. Efforts were made to communicate with the ship and to turn them out but without success. I cannot help thinking had the officials in Shaw Savill and Cos office been more prompt it might have been done. It has given me much annoyance and I am sure it has been a sore blow to Miss Rye after the brave and painstaking efforts she made. I hope the class of Emigrants will please you. I should like to have sent a larger number of bona fide agricultural laborers. The Scotch peasantry of the Highland or of the Border land, and I am sure if the same advantages were offered in more districts many would avail of them. I must see if Miss Rye has any influence in those districts. You will learn from Col.Whitmore that his sheep are on board the Montmorency. I hope he may get them out safe, they are splendid animals. I am getting a ship for some Horses (2) which Mr. Brown, Buckhurst Hill in Sussex, wants to send out to his sons but I doubt if I shall be able to secure a direct one - it is too late in the season and I cannot offer sufficient inducement. The Mail is delivered, and I have to thank you for your favors of 29th and 31 Oct. also for the Newspapers you have kindly sent. The letter for Mr.W. S. Grahame has been handed to him. Your news is highly encouraging and I hope to make use of it for the advantage of the Province, it is a great relief to learn you have not been compelled to resort to further hostilities. See the letter of the Wellington correspondent of the Times in today's paper - His tone as to the permanency of peace is not decisive - I ventured to express a similar opinion at the Colonial Office the other day in talking about the Petane affair. If the colony is involved in another outbreak it will certainly be owing to the natives becoming emboldened by the troops leaving - Let us hope the lesson you have taught them will be long remembered I enclose particulars of the tenders received by the Crown agents for the £250,000 6 per cent Debentures of the Government. Altogether about £313,700 was applied for but the sum allotted, at and above the minimum which was fixed at 95 was only £70,200. I am however glad to say the balance has been recently taken up - The demand for bona fide Colonial securities is good in the open market our Bonds are quoted 961/2 4 Decr, due this day. Still there is a strong disinclination to go into new enterprises fortunately the public see this and do not attempt to float schemes. I still strongly advocate that the Genl. Government should consolidate all the provincial Loans - Until it is done the financial arrangements of the Colony will be always unsatisfactory and insecure. The view that I take of the question is what everyone here will tell you should be done, it is not with the desire to lessen the power of the Provinces but to give permanent stability to the financial arrangements of New Zealand. It was rumoured here that owing to one of the Provl.Govts. not having remitted funds for the payment of the interest due today, the Bank was not going to pay the coupons - I am glad the rumour is incorrect, but it shows how the Credit of the Colony may be damged by these financial matters not being centred in one department. Wishing you many returns of the year, I am, Yours faithfully John Morrison