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Hawke's Bay Times, Volume I, Issue 8, 22 August 1861, Page 3

Our readers will be gratified to find that there is at length a reasonable prospect of an equitable settlement of the long-vexed question of the Wellington debt. We have published in extenso the memorandum by Mr. Ormond ; and respecting the correspondence on the subject referred to therein, as many of our readers may feel disinclined to wade through a course of twenty-three epistolary documents, we have made a condensed summary of them for their information. No. 1 hears date 4t,h December, 1858, and is from the Colonial Treasurer to the Superintendent of Wellington,requesting particulars of the state of the public debt of the Province at the time of the separate establishment of Hawke’s Bay, with sufficient information to satisfy the General Government as to the nature of the debt, the legal authority for raising the loans, rates of interest, &c., the manner in which it had been appropriated, and the balance in the Provincial Treasury at the time of separation. This letter was not taken any notice of by the Superintendent of Wellington, and No. 2, which is dated 29th April, 1859, is written by Mr. Whitaker to Dr. Featherston, to call his attention to it, and again requests the required information. No. 3 is dated 4th June, 1859, from Dr. Featherston to the Colonial Secretary (Mr. Stafford) and gives as the reason for not furnishing the required information that, as it was not certain the New Provinces Act would be allowed by the Imperial Government, it was unnecessary to enter on the financial question till this point was known. Nos. 4 and 5 bear date 25th October, 1859, and are from the Colonial Secretary to the Wellington Superintendent, requesting any information he may be able to give on the subject of apportionment, a statement of the principles on which it ought to he based, recalls his attention to the former correspondence, informs him that, though the decision of the Imperial Government had been known and published in the New Zealand Gazette over three months, no information had been received from him which would enable the apportionment to be made, and in consequence the Provincial chest of Wellington was deprived of funds that properly belonged to it. No. 6 is the Superintendent of Wellington’s reply, and bears date 12th December, 1859. He informs the Colonial Secretary that £50,000, to bear interest at 6 per cent, per annum was authorised to be raised by Loan Act, Session I, No. G, and by act Session 2, No. 9, the maximum rate of interest was fixed at 8 per cent., a portion of which was raised in 1854-5, the remaining part at the disposal of the Government at the end of 1856. £50,000 more was authorised to be raised by Loan Act, Session 4, No. 4, at 8 per cent, interest, redeemable in ten years, accepted by the Union Bank in July, 1856, and at once placed to the credit of the Government. £25,000 more was raised on the same terms in 1857, by authority of Loan Act, Session 4, No. 9 ; but the sale of the bonds was suspended by the bank, as the Governor disallowed the act. £3,600 borrowed under the Savings Bank Act (session 3, No. 7), at 6 per cent, redeemable on seven days’ notice. A tabular statement is given of the amounts expended on the several works and undertakings to 31st December. 1858, as under-: The Wellington—Wairarapa Road £'29,833 Ngahurangi 8,834 Wairarapa—Ahuriri 14,955 Wellington—-Wanganui

Immigration 35,934 Principal Government Oflices 9158 Surveys from Ist July, 1858, to 31st December, „ „ 183 a 14.105 Road Department and Contingencies 6,490 Light House 5 754 £141,127 and of existing contracts and liabilities, Ist November, 1858, specified hi Loan Acts— Waiohine Bridge (paid in 1859) £3,499 Wanganui (£IOOO paid in 1859) 5,000 Steam with Melbourne (paid in 1859) 2,572 Immigration (£3,910 paid in 1859) about ... 10,000 besides about ,£B,OOO for works and contracts not specified in Loan Acts. No. 7 encloses a memorandum from the Colonial Treasurer on the subject to the Superintendent of Wellington, which states that His Honor’s information does not enable him to arrive at a satisfactory conclusion respecting the public debt of the Province of Wellington, as His Honor seems to imply that the debt was, at the time of separation, £IOO,OOO at the least; or, including the disallowed £25,000, and the Savings Bank £3,000, was £128,000 ; while from the quarterly abstract of the Provincial Accounts it would appear that the actual debt of the Province on 31st December, 1858, (separation having taken place in November) was only £ ( 6,128, the proper deductions being made for old debentures paid off, &c., which rendered it necessary the question should be referred to the General Assembly. No. 8 conveys the above information to His Honor the Superintendent of Hawke’s Bay. No. 9, dated Ist June, 1860, from the Superintendent of Wellington to Colonial Secretary, states that the whole of the interest on £IOO,OOO, from Ist November, 1858 to July Ist, 1860, amounting to £13,333, had been paid by Wellington; that £4OOO more would have to be remitted in 3 or 4 months to pay interest up to Ist January, 1861 ; that rather more than half the above sums should be borne by Hawke’s Bay; and requesting that that Province should be caused to pay immediately say £7,000, and to provide (say £3,500 per annum) its share of the interest in time to be remitted to England for payment of the dividends as they fall due. No. 10—9th June, 1860, from the Colonial Secretary, reminds His Honor the Superintendent of Wellington that he has not furnished sufficient data for the due apportionment of the debt—that that province has in its hands £3,500 of the monies of the General Government, which they have allowed it to retain in consideration of its claim against Hawke’s Bay; but, as a considerable sum will certainly be due on the 30th June inst., from Hawke’s Bay to Wellington, instructions are given the Subm ° - & Treasurer to pay £2,500, on account.

No. 11, encloses copies of the above to Superintendent of Hawke's Bay.

No. 12, 25th June, 1860, is an acknowledgment from His Honor the Superintendent of Hawke’s Bay, thanking the Colonial Secretary “for the steps he lias taken, as no doubt can exist, of our present liability for a portion of the interest,” but hopes the General Assembly will relieve the province from responsibility, for debts contracted against its will, and from which it received no benefit. No. 1, of further papers, (in continuation of papers presented on the 11th Sept., I 860,) is from the Superintendent of Hawke's Bay to the Colonial Secretary, stating that Hawke’s Bay has paid on account of the Wellington Government about £I,OOO, asking how much Wellington can legally demand; and slating his own opinion that Hawke’s Bay is only answerable for £35,000, of the Gladstone Loan, and that interest can only be demanded from the Ist July, 1859. No. 2, in reply, states that the subject is under consideration, and the decision will be communicated as soon as arrived at. No. 3, from the Colonial Secretary, 19th January, 1861, requests His Honor, the Superintendent of Hawke's Bay, to pay the Sub-Treasurer £5,000, in repayment of advances to Wellington, on account of interest (i.o. £2,500,) to be sent by next mail. In No. 4, the Superintendent of Hawke’s Bay expresses his disappointment at being called on to pay any amount until the. debts are adjusted; again states that about £I,OOO, has been paid on account of Wellington, for deposits on runs, and begs the Government to insist on the accounts being furnished by Wellington, so as the extent of Hawke’s Bay’s liability may be known; has placed £5,000 on the estimates, and will write again in a few days. No. 5, informs the Colonial Secretary that the Provincial Council of Hawke’s Bay have rejected the item of £5,000, placed on the estimates, on account of interest for Wellingde'ot; but, as the General Government holds the one-sixth of the laud revenues, presumes no difficulty will be made in replacing advances from this fund until accounts are adjusted.

No, 6, from the Superintendent of Wellington to the Colonial Treasurer, 19th Deer., 1860, requests that steps be taken to cause the immediate payment by Hawke’s Bay, (if the large amount due to Wellington—£9,ooo or £IO,OOO, (of which only £2,500, has been paid, leaving a balance of at least £7,000,) or, if not tne whole of this, the greatest portion.

No. 7, in reply, gives an order on the Sub-Treasurer, Wellington for £2,5000, on account. No. 8, 22nd February, 1861, from Superintendent of Wellington to Colonial Treasurer, acknowledges the receipt of the above, and recalls attention to No. 0, where the sum due was stated to be at least £7,000, and £2,000, just falling due; complains of injustice, and again requests that immediate payment be ordered. _ No. 9, encloses memorandum by the Colonial Treasurer, to the Superintendent of Wellington, which states that £7,000, is a mere round number founded on assumption, disputed by Hawke’s Bay; that it is still undecided:—lst, what was the Provincial debt at the date of separation? 2nd, whether the £50,000, redeemable in 10 years is to be considered part of the permanent debt of the province? 3rd, whether Hawke’s Bay’s liability commences on the date of separation, Ist, November, 1858, or on the commencement of financial year, Ist July, 1859 ? That, as these questions involve considerable difficulty, and as neither party would willingly agree to a decision adverse to its interests, further legislation is unavoidable. That Wellington has already received from the Government more thap Hawke’s Bay would admit to be due, and therefore no more can at present be paid on account of interest; but, pending a renewed application to the legislature, £3,000, will be paid to Wellington, and debited in its separate account; and, it is presumed that this sum will cover the contribution of Hawke’s Bay, to the 30th June, 1861, even supposing the three questions above raised, are decided in favour of Wellington. No. 10, which completes the correspondence, is from the Superintendent of Hawke’s Bay to the Colonial Secretary, June 27th 1861, concerning the financial statement of the Wellington Provincial Treasurer; and, the fact of £B,OOO, in all having been paid to the Wellington Government, on account of Hawke’s Bay, out of the one-sixth of land revenue of the Province, and calls attention to the fact of the council refusing to allow any sum to be placed on the estimates, until accounts were furnished by Wellington and adjusted; protests against any payment being made on account of Hawke’s Bay, till this is done; proposes that Wellington be called on to furnish accounts, and these be placed in juxtaposition with Mr. Fitz Gerald’s pamphlet, and laid before the House of representatives, that they may have proper data for deciding the question.