WELLINGTON,

Grey River Argus, Volume VI, Issue 418, 17 September 1868, Page 3

WELLINGTON,

(from our special correspondent.) September 8. My telegram of yesterday would place you in possession of the heads of the various matters of interest, about which I can now inform you more fully. The great battle of the session lias now commf need in earnest, and a day or two will decide whether the Stafford Ministry are to remain in office or not. The policy of the Government was set forth in the resolutions appended to the financial statement, and upon those Mr Fox tabled counter resolutions expressive of a want of confidence in the Ministry. The Government at once took steps to ascertain the strength of their party, and a circular was sent to those members who had usually voted with Ministers, inviting them to a "caucus" at the Government offices. There was a large muster — 40 ; and, the Premier having fully explained the policy of the Cabinet, stated that, whilst they should resist any amendments from the Opposition, they were prepared to listen to and consider any suggestions from The friends of the Government. During the discussion, Mr Harrison commented on the injustice done to Westland by the Acting-Trea3urer in leaving if entirely nnmentioned in the adjustment of indebtedness between the various Provinces. He insisted that Westland's case should be considered, or he should be compelled to withdraw and consider the course he should take. Mr Stafford admitted that Westland was a fair case for adjustment, and, after some further discussion, a Committee was chosen to consider the whole question, and bring up a scheme of adjustment to the Government. That Committee made a sweeping alteration of the scale of adjustment proposed by Mr Hall. It recommended that Westland should have a payment of .£15,000 ; Nelson, .£150,000 instead of £90,000; Otago, £40,000 ; and Wellington should, instead of a money payment, be relieved of her local loansj amounting to £58,000. The .annual contribution of Southland was recommended to be reduced from £12,000 per annum to £9,000. The Government have consented to accept these alterations in the form of an amendment, to be proposed by one of their supporters. The Opposition are moving heaven and earth to obtain votes, and have secured a few supporters from the ranks of the Ministerialists. Messrs Curtis, Ormond, and M'Lean have gone over to Mr Fox, and one or two others are said to be wavering. Strong attempts have been made to get the Westland members to vote against the Government, as it is understood that one of them (Mr Harrison) is not at all satisfied with the proposals of the Government It is most probable, however, that they will be found on the side of the Ministry. — A curious scene occurred in the House on Tuesday night. In Committee of Supply, in order to shelve the Ministerial resolutions, Mr Fox moved that the Chairman leave the chair, and stated that he meant this to mean a motion of no confidence in the Government. After some discussion, the question was put, and negatived on the voices ; but the Opposition not calling for a division, it was forced upon them by one of the Government party. Then there was nothing but confusion for about ten minutes ; the tellers for the Opposition refused to act, and the Speaker had to be sent for, who decided that they must act, whereupon all the Opposition defiled into the lobby, and voted against their own motion ! The fact is, they were afraid to test their strength at this stage. Last night, Mr Fox's "No-Confidence" motion came on. He made a long and forcible speech, and attacked the Ministry heavily. He agreed with the proposed dissolution of partnership in the consolidated revenue between the Provinces and the General Government, but regarded the proposal of charging the interest of Provincial loans on the general revenue of the Colony as a monstrous injustice. He looked upon the whole policy of the Government as being capable of no other result than the destruction of the Provinces, and the stoppage of the great colonising works which they are carrying out. Instead of charging the interest and sinking fund of the loans of the Provinces, he would, said Mr Fox, "Propose a capitation tax of 30s. per head to be paid to every Province, till it shall amount to £400,000, when it should be reduced to such a ratio as would bring it down to that amount. The application of it should be fixed to the interest and sinking fund of each Province, and such objects of government as it is the interest of the Colony at large to see carried out, and in respect of which every Province owes allegiance to the whole Colony — such as harbora, gaols, police ; any balance to be at the disposal of the Provinces. The amount at present on that ratio would be about £327,966. Mr Fitzherbert estimated for the last year £337,827; but they actually received £292,506. Mr Hail estimates for next year £309,293. Therefore, my proposal is about £10,000 worse for them than Mr Fitzherbert's estimates ; £35,960 better than their actual receipts this year, and £18,670 better than Mr Hall's estimate this year." He would fix the waste lands of each Province, so that their land fund could not be tampered with by the General Government. He would strengthen Provincial Governments, and bring them into harmony with the General Government by means of a Secretary for the Provinces whose duty it should be to know everything that went on in the Provinces, to act as a medium of communication between the mind of the General Government and that of every Province, and also between the minds of the Provinces, each with the others ; so as to secure, as far as possible, uniformity of action, unity of purpose, arid harmony of temper, instead of that conflict and uncertainty in action, and that feeling of intense bitterness which now exists, and which, if it existed between any two independent states, could only, and would quickly lead to war. Mr Fox pitched into the Government for not having proposed any reduction of taxation, and said New Zealand would soon be in the state that Turkey was. But he did not attempt to say that such a reduction could be made at present. On Native affairs he proposed that an annual sum should be voted to the North Island Provinces, and the Government of each Province should be held responsible for the peace of its own district. On the question of Local Government, he said : —I am no enemy to local self-govermncnt;

1 am, and ever have been, its warmest friend ; but I wish to nee it made a reality and not a sham. I would extend it in every direction, but in subordination to, not set over the heads of Provincial Institutions. I contend that this House will at all times be justified in ensuring the performance of this duty by the Provincial Governments, and that if they are lax in providing for local self-government, this House may justly interfere to aid outlying districts in obtaining such subordinated institutions for local purposes as may be necessary and desirable in connection with the Provincial centre. I would extend local self-government equally to agricultural and mining districts. But, in doing so, I would hold out no premium to discontent ; I would ■encourage a feeling of satisfaction, not labor to fan the flame of dissatisfaction with the institutions of the country." Mr Stafford's reply was most masterly, and was a complete answer to most of Mr Fox's arguments against the Government. Mr Curtis followed in a neat and practical speech in favor of Provincialism as it exists in Nelson. The debate was adjourned until to-day, but I don't think the division will come on before tomorrow. It will be a close run, but I think the Government will get tiie best of it. Sir George Grey took his departure for England yesterday, per the Mataura. He was escorted on board by a large number of ladies and gentlemen. A report is current in town, and generally credited, that prior to his departure Sir George Grey made an offer to the Government to undertake the capture of the Natives who are causing such trouble on the West Coast. Sir George said that he would go with a few friendly Natives and capture the lot. This offer it is said was declined. The bad news I scut you per telegraph yi*3terday is confirmed. The Ballot Bill is likely to become law.