The Bruce Herald. TOKOMAIRIRO, MAY 25, 1865.

Bruce Herald, Volume III, Issue 59, 25 May 1865, Page 3

The Bruce Herald. TOKOMAIRIRO, MAY 25, 1865.

The circular recently issued by the General Government of New Zealand with reference to Provincial loans seems to have created considerable -dissatisfaction, and it has been asserted that the terms mentioned therein are so stringent as to render any future attempts on the part of any province to borrow quite impossible. That it will cause Provincial Governments to consider well before they propose a loan, that it will compel them to look to a loan as a last resource, we

quite agree ; and such, we imagine, was the object'soughtto be effected by the issue of the memorandum. Hitherto the provinces have been by far too ready to plunge into loans, and to expend the money, if not foolishly, at least on unproductive works, and without making due provision for the liabilities incurred. To this carelessness it is no doubt partially owing- that provincial loans are looked upon with distrust by the European capitalists ; and although the ability of the several provinces to meet their liabilities be undoubted, still to the lender at a distance there does not seem any tangible security, and thus the loans become difficult to float. That the borrowing powers of the provinces required to be restricted has long been acknowledged, and we do not see that the plan defined in the ministerial circular will entail any great hardship on provinces which really want to borrow, and intend to spend the money borrowed on reproductive works, while it will effectually prevent any province plunging recklessly into debt, and injuring the credit of the whole colony by being obliged to negotiate its debentures at a low figure in consequence of the security offered being- questionable. There is no doubt that all the provinces ai*e well able to meet all existing liabilities — that, whatever their present difficulties, they are perfectly solvent, and we believe that the resolution of the General Government will help to extricate them from their difficulties by restoring confidence in the loans, thus enabling them to be more readily placed. It will show that in futnre no provincp will be allowed to plunge beyond its depth into loans, that the security of loans already sanctioned is not likely to be interfered with by any future ones, and that the General Government exercises a wise control over the borrowing powers of the provinces. j The General Government plan as to the hypothecation of land as security for loans, however, can scarcely be looked upon as an original one. It is a plan which emanated from Otago, and which was laid before the Provincial Council in a message from the Superintendent on the 14th of April, i 1864. In Message No. 4 his Honor submitted a draft of resolutions to facilitate the negotiation of the L 5,000,000, 000,000 loan by giving additional security for its repayment, and also resolutions with reference to futurfe loans. By these resolutions the Governor was to be asked to sanction the selection of 5,000,000 acres of land to be reserved and set apart as an estate against which the said loan and interest should be a first charge, and a bill to effect this was i;o be introduced into the Assembly : — That no future loan should be entered into except for the purpose of being devoted to permanent and useful works manifestly required for the advancement of the province, and for the construction of which the ordinavy revenue was inadequate ; that, after being passed by the Council, all such loans should be sanctioned by an act of Assembly, and that such sanction should not be sought for except on the following terms : — ' By reserving and appropriating as a security for any such, loan a number of acres of the waste lands of the Crown, situate in this province, in the proportion of one acre of such land for every pound of such loan, provided that when : it is desired to effect a further loan or loans, for the completion or extension of any such works, such further loan or loans should be sanctioned and authorised in the manner required in the case of the original loan, and an additional number of acres of waste lands of the Crown, situate in the province, in the proportion of one acre to every pound of such further loan or loans, should be set aside and appropriated as a further and joint security for the original and subsequent loans, and should form, jointly with the lands previously appropriated, accumulative security for the whole of the original and subsequent loan or loans, no one of such loans, whether original or subsequent, having priority over another.' The loans were to be made a first charge on the works for the construction of which they were raised. The land thus set apart as security for the loans was proposed to be vested in the Governor, the terms of the trust to be defined by the Act of Assembly authorising the loan, and the Governor to have full power to sell the loan and invest the proceeds as security for payment of interest and repayment of principal. And it was lurther provided : — [ ' That in case default should at any time ; be made in payment of either interest or capital, when the same shall respectively

become due,, it should be made lawful for the Governor or such trustee as aforesaid, or for his delegate for the time being to appoint a Commission or Commissioner to administer the said trust estate, with full powers to lease or - sell the same for the protection of the interests of the person who may have made any such loan, and of the holders of such debentures or secm'ities as aforesaid, prorided that in the event of such lands failing- to realise the full amount of the loan, together with the interest thereof secured upon them, all deficiences, and also all the expenses connected with the administration of the said land, should be chargeable on the province, and power and authority should be given to the Governor to direct that such deficiencies should from, time to time, until made good and repaid, be deducted from the proportions of the land and ordinary revenue payable to the province of OtagoV The vesoluttons from- which we have quoted lapsed in consequence of the ministerial crises which led to the retirement of the Gillies Ministry ; but we think there is little difference to bg • found between the system sketched by them and thai defined in Mr Weld's memorandum, which runs as follows : — 'The General Government have had under their consideration the subject of Provincial Loan Bills, which may be from time to time transmitted for the signification of the Governor's pleasure thereon, and I think it right at once to communicate to your Honor the decision at which the Government have arrived in relation to that important subject. * Before agreeing to any future loan to be contracted by any pi*ovince, the Government will require a specific allocation to be made of a block or blocks of land, of a definite value to be determined, to be set apart under authority of an Act of the General Assembly, as collateral security, in addition to the security of the Ordinary and Territorial Revenue of the province, for the principal and interest, not only of that loan to be contracted, but also of any Joans previously contracted and unpaid. ' They will also require an adequate sinking fund to be provided out of the g-eneral Territprial Revenue of the province, and, in case of need, out of the Ordinary Revenue of the province, as an additional guarantee for the payment of such past and new loans. The period within which any new loans, so to be contracted, shall be paid off, the rate of interest, and other details, must be made the subject of specific arrangement. Many of our readers will remember that some months ago several inhabitants of this district subscribed a ! sum of money to enable Mr Thomas Shaw to proceed in his action against the Government for certain injuries sustained by him in consequence of the erection of a Toll Grate in front of his premises. Subsequently the Government yielded to Mr Shaw's claims without tliejinteri fereuee of thei'law, and we have been requested |to inlioiate that after calling a meeting of the | subscribers, and with their consent Mr Shaw has I handed over the amount collected to Mr Poppelwell as Treasurer of the Building Committee of tha Roman Catholic Church. j On Saturday evening last, a meeting of parties interested in the maintenance of the Coal Road was held in ■ the School-house. J. L. Gillies was voted to the chair, and stated that he had called the meeting at the request of several parties interested in the state of the road, and for the purpose of devising some rr c ins to place it j in a state of passable repair. Mr E. T. Gillon as chairman of the district Board of Road Trustees explained that the Trustees had visited the road, and resolved to expend LSO on it, but that until the proposed rate of sixpence an acre was allowed by the General Board, they]were powerless, being without funds. After some conversation, it was resolved that Messrs Gillies, Jackson, and James Martin should endeavor to collect subscriptions for the repair of the road, and should wait on the Trustees and offer them the amount required for the repair of the road. Mr Gillon then stated that the Trustees were very anxious to do all that they could, and that hehadno doubt they would be willing to allow any subscriptions now given against ths rate when imposed. About L2O was collected in the room, and we believe that a meeting of the Trustees will be held in the School-house on Saturday next to meet the deputation appointJd by the meeting. A vote of thanks to the Chairman ended the proceedings. We sincerely trust that the movement thus commenced will result in the repair of 'the road alluded to, which is at present in an. impassable aad disgraceful state.

Another fire has occurred in unfortunate Invercargill, and has destroyed property to the amount of about LSOOO. Tht property destroye this time 'was known 'as the Southland Iro Works, and were the property of Mr Davis, the railway contractor, who, we understand, was totally uninsured. The progress of the flame was stayed before they reached the adjoining buildings, but some Jloss was occasioned y the furniture being removed hurridly from these, as their safety was for some time doubtful. The English Mail was telegraphed from Invercargill on Sunday evening, and the good folk of Dunedin were thus placed in receipt of the English, news twenty-four hours earlier than they would have been, had not the telegraph been in operation. The line from Invercargill to Christchurch was declared open to the public on Tuesday last, but for several days before that the operators offered every facility to the press. The only stations as yet open are Invercargill, Dunedin, and Uhristchureb, but we believe that interraediete stations will be established and opened n the course of a few weeks. Saturday last was a thorough Saxby day, and fully justified the predictions of the gallant Lieutenant. Sunday and Monday were cold and stormy, and on Tuesday morning the ground was covered with snow. Yesterday was a most unpleasant day, and winter seems now to have set in with considerable severity. Yesterday being Her Majesty's Birthday, was observed as a general holiday. At noon the Brace Rifles fired a ' feu de joie, ' followed as usual by three cheers. The company then marched to the residence of Lieutenant Tait, where refreshments were prepared, after partaking of which, three hearty cheers were give^ * for the gallant Lientenant, and a similar compliment paid to Captain Jones, and Sergeant Perdue the drill instructor. In the evening there was a Volunteer Ball in Smith and Co.'s Store. We have been requested to intimate that a Wesleyan Minister, the Rev. George Quilty will officiate in the Presbyterian Church, Tokomairiro, on Sunday aiternoon next. In our report of the Young Men's Mutual Improvement Soiree, published last week, we omitted to mention that Mr James Goodall had acted as caterer, and that a hearty vote of thanks was passed to him for the very satisfactory manner which he had performed the important duties of that position. We have to acknowledge the receipt of a pamphlet published by Mills, Dick, and Co., of Duuedin, for the Post Office authorities, and containing a large amount ot useful information connected with that department. In the table of distances, however, we think that some few errors will be found. For instance, Blueskin is put down as 75 miles from Dunedin. We have received a copy of an extra published on Monday evening by our spirited contemporary the ' Tuapeka Kecorder,' containing an accoount of the nomination of candidates for. the representation of the Gold Fields in the General Assembly vice Captain Baldwin resigned. The nomination took place at Lawrence on Monday at nooa. H. \Y. Robinson, Esq., Returning Officer presiding Mr Duncan Campbell (Tuapeka) was proposed by Mr S. Strong, seconded by Mr. J. C. Roberts. Mr Charles E. Hough ton (Arrow), was proposed by Mr Bowes, seconded by Mr Elliot, and Mr J, B. Bradshaw (Queenstown), was proposed by Mr Strong, seconded by Mr D. Campbell. >Mr Campbell who was the only candidate present, addressed the electors at some length, after which a show of hands was taken with the following result :— Campbell, 18 ; Houghton, 2 ; Brausbaw, 4. A poll was demanded, and it will take place at the several polling places on Monday next. 'Tokomairiro's' letter on Pleuro- Pneumonia was received too late for insertion this week. We are also compelled to hold over our Edinburgh and London correspandent's letters. We have been shown b y Mr Robert M'Kenzie, some very handsome specimens of gold obtained at Canada Bush. They were obtained from the German's claim, and^Mr^M'Kenzie informs us that the Germans (the original party) have commenced to drive into the hill, and that doing so is likely to turn out well.