PROVINCIAL COUNCIL.

Lyttelton Times, Volume XXIII, Issue 1408, 3 June 1865, Page 4

PROVINCIAL COUNCIL.

Thursday, June I. The Council met shortly after five. Present— Messrs. Aynsley, Birch, Clark, Cowlishaw, Cox, Hall, Hargreaves, Hornbrook, Maude, Kickman. RonMton, Rowe, Tancred, Templar, Westenra, Wilkin.Wilson, C.8., Wilson, W., Aikman, Buckley, Turnbull, Tosswill, Peacock, Moorhouse, and Stewart. After prayers had been read by the Chaplain, The minutes were read and confirmed. THE NORTHERN AND SOUTHERN RAILWAY. Mr. W. Wilson inquired why a preference had been given to the formation of the Southern Railway over that projected to the North, , Mr. Hall said the question would be answered in the course of the evening. KAIAPOI COURT-HOUSE. Mr. W. Wilson wished to know why the Kaiapoi Court-house had not been enlarged, in accordance with the vote of the Council in the last session. Mr. Hall said the answer to the query might be found in the correspondence then upon on the subject; but he would state that the financial state of the province was at the bottom of it. However, he would promise the early attention of the Government. THE LATE SPEAKER. Mr. Tancred prefaced the moving of the following resolutions by saying that it was almost unnecessary for him to enlarge upon the uniform courtesy, impartiality, and punctuality displayed by the late Speaker during the time he held that position in the Council. It was admitted by all the members that the attention to the duties of the office had been fulfilled by the gentleman he alluded to in a manner which had raised the dignity of the Council, and added great weight to the legislation of the province. He begged to move the resolutions, which ran as follows :— That this Council desires to express its regret that the departure from the province or the late Speaker, Mr. Charles Bowen, should have deprived the Council of his valuable services, and desires to put on record its appreciation of the uniform courtesy, impartiality, and attention to the duties of the office, for which that gentleman has, for a long course of years, been distinguished. That the above resolution be entered upon the Minutes of the-Council, and that Mr. Speaker be requested to forward a copy thereof to Mr. Charles Bowen. The Provincial Secretary briefly seconded the resolution, which was carried unanimously. THE REPLY TO THE ADDRESS.

The Provincial Solicitor (Mr. Cowlishaw) read the following reply to the Address:—

The Council thank jour Honor for the Address with, which you have opened their session. Under the circumstances stated by your Honor, they agree in the expediency of deferring the Ordinary Annual Session of the Council until after the meeting of the General Assembly. They learn with satisfaction that it has been found practicable to undertake a portion of the important works of internal communication, which have already received the sanction of the Council. They will give to the Contract, entered into with Messrs. Holmes and_ Co., their early and serious consideration. They agree in the hope expressed by your Honor that it may be found practicable at an early date to proceed with the contemplated Bailway to "the Northern part of the province. the Council concur in the importance attached by your Honor to the discovery of the large and important goldfield which is now developed on the West Coast, and they will confirm such arrangements as may be necessary for the due administration of the Government in that part of the province, and the proper regulation of mining pursuits. The Council appreciate the importance of obtaining increased land communication between the eastern and western portions of the province, and they are gratified to learn that this desirable end is likely to be attained within a short period. They agree in the expediency of. such further explorations as appear likely to provide additional lines of communication with the goldfields. They recognise that these valuable objects cannot be secured without the expenditure of sums of money which must constitute a serious charge on the Provincial revenues. The Council will give to the various matters to which their attention may be called, their attention and careful consideration.

He remarked that, in moving this reply, he thought it required but little from him to induce the Council to pass it. The first part of the reply referred to the expediency of deferring the ordinary session of the Council until after the meeting of the General Assembly. There were measures to be brought before that body which would affect.in a remarkable degree the various provinces of New Zealand. He referred to the intended introduction of a bill which would place a restriction upon the borrowing powers of the various provinces. This was not only desirable, but necessary, as this province had already suffered from the reckless system of administration of other provinces. The other measure to which he had alluded, though not probably calculated to affect the Government of this province, was one to direct the appropriation of certain portions of the revenue of each province to the works and improvement of the outlying districts. That policy had been pursued by Canterbury during the last financial year, yet some dissatisfaction had been expressed at the administration of the funds, and the disruption of the province was threatened. He thonght the measure would tend to remove all feeling of local jealousy and irritation, and bring the various parts of the province into closer union. Members would be gratified that this was a special session for the object which had brought them together, works which the increased prosperity of the province had enabled the Government to commence, which he believed would develop the resources of the province, and not only place Canterbury far ahead of its neighbours, but render it the market for the whole southern hemisphere. If the Council carried out the programme there was a bright future before them, in which year by year the province would increase in wealth and material progress. When it was considered that they were then met to initiate the first step in the series, the Council had reason to congratulate his Honor upon the commencement of the Great Southern Railway. There was another point which was referred to in his Honor's speech, and to which he had not attached too much importance—the discovery of the West Coast Goldfk'lds. It might be in the recollection of the Council that, although Canterbury suffered at first from the discovery of the Otago goldfields, yet, ultimately, great benefit had resulted. He anticipated greater, still greater, advantages from the possession of a goldfield within the province.

Mr. llargheaves begged to second the motion, saying, although he might not agree to the address altogether, yet, as it was the custom for new members to do so, he could not allow it to fall to the ground for want of a seconder. Mr. Maude said it was usual to go into committee on such an occasion, but that session was so unlike its predecessor, and the address contained so little, that he would support it as it stood. The address was then put to the "House by the Speaker, and carried ; and a deputation, consisting of the mover, seconder, and Speaker, appointed to present it. LEAVE OF ABSENCE. On the motion of Mr Maude, leave of absencc was granted to Mr. Hawkes for the remainder of the session. PRINTING COMMITTEE. On the motion of Mr. Hall, a printing committee was appointed. overland mail to west coast. The House went into committee. Mr. Maude, in the absence of Mr. Beswick, in the chair, Mr. Kolleston moved:— That this Council will indemnify his Honor tlie Superintendent in the disbursement of any sum or sums of money whioh it may bo necessary to inour in the maintenance of an overland mail from Christohurch to the West Canterbury goldfield, for a period of sis months.

He said the feeling of the Council was, no doubt, in favour of the proposition expressed in the motion. He need not enlarge upon the advantages to the mercantile portion of the community by the establishment of a mail to the West Coast. The tenders were already out, the conditions of which were that four days should be occupied in going and four days m returning. The mail would be carried up to the head of the pass on horseback, after that on foot for a considerable distance. The mail would have been established before, but it was uncertain which track would be the best. The Hurunui track could scarcely be pronounced practicable, and the new track possessed many advantages in point of shortness of distance. The Government had thought it very prejudicial to the interests of trade, if the service was any longer postponed. For obvious reasons _ it _ would be 'unwise to mention the sum which it was thought would be sufficient for the service, as it would be an indication to tenderers, l he expense would probably be more than other 011 account of the difficulty of the route, but it must be borne in mind that it was prcIlill tl l°, eßtablishm ent of the escort and the tu™ Jvi i' K ! " ,e of binding together the at the province. m secon ded the motion. B {RCH disagreed with what had fallen from ti nn „j ovl '! clal Secretary as to no sum being men- • Ifc was always the custom' of that House snppifw° ney res( t lutionß were passed to mention a specific sum. It could not be an indication to

persons outside as to what sum wouldh " —" It gave unbounded power to the o nv e acce Pted. spend money-a power which it behove, " n Cllt to jealously to guard. lie also wished to W intended to confine the contractor to • Wa! > route. There already existed a "postal serv" 0 line o£ Biderable way on a route other than that 6 a Cou ' and this route had been used for commi]ni^f- ntlone(1 ) the West Coast by both settlers, naS^S' 1 ment. Until the new route was formed' t>,,! Reroute would be found much the cheaner 'h Unui of the service might also be advantageous!,. . time and money saved. ex tended ) Mr. ltoLLEsroN, in reply, sa id ],„ with the last speaker with regard t 0 ti a /? ree 'l cil granting unlimited power to the f- ' ment to spend money, but in this cast> ti,, vernwould be but small, as it was only for a niv atllol } nt service However, they were in the hands ft Council, and would name the sum if necess'irv he thought it would bean unwise proceeding ti was no route at present definitely hi,] C :T<: was thought the one by the Waimakariri m,' n u u the one adopted. Until the tenders ean»- i n i„ n not say whether one route would he enforel-dVi i prejudice of others. lie could not agree v itl, hon. member as to the extension of thf *\JI , might be a little additional expense, but tho i vantages to mercantile men would be im.i,Stately great. F«Porti on .

The motion was passed in committee, and adorn, i by the House. THE SOUTHERN RAILWAY CONTRACT. Mr. Hall moved:— That this Council, having hart before it thr> com™ > entered into by his Honor the Superintends Messrs. G. Holmes and Co., for the construction 7f railway from Christchurch to the Rakaia River author? * his Honor to make payments to Messrs. G. ilolmes a 1 Co., in waste lands of tho Crown, and in debentures i« able under the Canterbury Loan Ordinance, 18f)2 in. th" manner provided in the said contract, if tho "tinanr l position of the province should render such mode of na ment nccessary. * p >

He said that when the Council met in April IBfi the Government then stated their plans gene'rally to the Council, and a resolution was adopted, of which he read a portion. At the last session of the Council authority was given to apply to the General Assembly for a private bill, and a vote was passed on account of the contract. In pursuance of the resolution, application was made for Acts to authorize the construction of the lines to the North and South of the province, and although the session was a hurried one, the bills passed into law, and they were enabled to commence the works at once. The completion of the plans and specifications did not take place until within the last two months, after which the Government directed their attention to the practicability of commencing the railway. The Council was aware that the greatest obstacle in the way of the progress of the works was the difficulty of obtaining funds. Not this province alone, but the other provinces in a greater degree, had' been suffering serious financial depression; trade had declined, and the land revenue was affected. The Government had felt bound to do what they had intimated in that Council would be done, if required by circumstances. In reply to the member for Lyttelton, it had been stated that they would sell the debentures at a discount, and he named 90 as the sum to which they proposed to go. While on that point, he would make a few remarks upon the power and authority of an Executive Government to sell debentures below par without the consent of the Council. A reference to the Lyttelton and Christchurch Railway Ordinance would satisfy members on that point. Under that Ordinance the Superintendent had power to raise £300,000 by debentures, to bear interest at 6 per cent. But there was no provision in the Ordinance to prevent him selling the debentures at what price he pleased. Whether this was a wise or prudent mode of raising money he could not say, but he confessed, when he came to study the Ordinance, he was rather alarmed at the power possessed by the Superintendent, and he should have liked to find some restriction on the mode of selling the debentures. However, they had given the Council fair notice that they would sell the debentures at 90, if necessary, and they had done so. Although he could not help regretting that a full price had not been obtained, yet, when they contrasted them with the debentures of other provinces, there was reason for congratulation. The debentures of Otago had been sold in the London markets at 75, at the same time that those of Canterbury had fetched an average of 90, so they had not been thrown away. The Council must also remember that the General Government 5 per cent, debentures had been sold at fc'O. Therefore Canterbury alone, unaided, had raised money at rather less than 7 per cent. —not unfavourable terms, all things considered, The Railway Debentures were not the only mode of raising money. They had the debentures of the half-million loan to dispose of, but they had not done so for various reasons. In the first place, in the recent state of the English money market, it seemed of very little use to send them home for sale; secondly, the Coupon Act. which passed the General Assembly last session, provided that unless the coupons were actually signed by the Superintendent of the province using them, they must be authenticated in a formal manner, which had to be indicated by the Governor in Council. It had been found a physical impossibility for one man to sign all the debentures ; so the latter mode had to be adopted. £300,000 of the ban have been sent to place on the English market, when a favourable opportunity offers. The English agent was instructed not to sell below par. The Government had also thought where so large a sum was in question, that it was unadvisable to confine the offer to one banking establishment, but that the securities should be laid before several large capitalists; or, adopting another course, that they should be laid before a committee of bankers connected with New Zealand. The result had not been heard, but he hoped by the means he had indicated, they would receive the benefit of any favourable change in the money market at home. And he saw no reason to reduce the limit at which the half-million was fixed to be disposed o£ Although the time was not favourable to make a beginning, when the plans and specifications had been received, the Government considered the feasibility of commencing the work. They had not then heard ottae sale of the Railway Debentures, even at 90; and they knew that any arrangements they made for the purpose must depend upon resources province itself. Upon a careful calculation tne} tou:i that a small sum could be spared from the Harbour Works Fund, and with what they could get irom the land revenue r if it kept up as at present, t.iey were determined to let the contract on such term* would enable them to make a beginning, ana to pu» on the works more rapidly as further supples cam to hand. They had taken precautions against u e possibility of any financial embarrassment, j serving the power to stop the works aitoge ' any period when deemed necessary. . , nL '* ? c,. for this provision had been sufficiently ctk • what had taken place with regard to the L\ e i ■ • Christchureh Railway. The Ordinance pro* .did' the issue of £50,000 a-year in debentures, tu aware that there would have been n° l • >j 0 selling the debentures as they were wMwished to impute blame to no one, as ne would have shared the confidence lea atthat no financial embarrassment cou i -;■ it. But the result, hail been unfortunate. ' '£50,000 was paid out of the provincial re>t " second had been sold ; and the thm ' ■ " t been disposed of. But, inconie or _no - contractors had to be I® 1 ' 011 e ,.,' t u the month. He thought it intlispeiisabli- t . Government should have power to .to t \ of the works at any time when deemed .ujii It would not be necessary for hun t. «,<■ I)lV . lti , e details of the financial plans then ' financial -circumstances were now change*. , l . t;l ] mC nt prospects were now brighter, the | I;U [ t^eu of the Loan had now sold, and an i i '. uu i the made for the remainder at an eligi )!>■.l ' ltl <t ,n state of the market was such that . e si . them as required. When Govern men > • ( j irc e tion to go on, tenders were for #u Ji a persons in the proviuce likely to cot i»■ piece of work. The peculiar condu trict—that payment was to be • • (0 lie land, part cash, and the {)0S5 j. stopped at any moment—prec' the nubility of going to a foreign mat a t home, tract, so they knew their best d" 1 "" t . .mother One of the parties declined the u •' iu)t feel made a tender, but the Government ~a toi r, justified in accepting the oonoitiont> t ] lt . Messrs. Holmes and Co. made an ot . t j, a t conGovern ment had acceded, lhc * LS . tn j MS , 0 f that tract was upon the table. I". iK .' -V that t i:( j contract, he could not disguise ■ ; (I]CV Executive had exercised a large po« < the verdict, of the Council upon 1 ' j or approval. The total ilI,10U " iwne's ori;! ui:l . the contract wa* £200,000. ' " s ml iya!i "PI" o*'*0*'* estimate was £170,000, but that \« short in - mate'estimate, as from that gc , t e sidence in the colony, he liad By price of sleepers and other ma " v jj e " not on-, tract the contractors arc hound i I r() u; I ,g stoi ' the line, but extrasidings, statu) n t lnis r ;ll '' i r which might be put down at e ' to £19«' the amount on es> j ft s thereby leaving an increase o > Cllj h, -,j f ference. The conditions are jOp

at 90, and 25 per cent in waste cent hi deo acre _ with respect to tlie latter lam's,, a; * i h ha(l n0 power to offer the waste con ?' Shout' the sanction of the Council. The 1 not only gave such facilities in the way of con t. but by it the Government were enabled to fiS'e the rate and progress of the works, which i , i-niild extend over a period of tour years, or, by • »for the materials ordered, they conld put an P n > :: t , )O contract at any time. It is probable that /he Government gone into the open market with i? .nntract, they might have got it done at a lower • but they would have been bound to pay cash P "£ contractors. And it must also betaken into their consideration that the present contractors were EL the ready money for half of the whole con- ° Vs to the debentures, they had "power to Sen. them, if they thought proper at the prfce • on • and if they could be sold at a higher price, l contractors would not retain them. There l, s another gre.it advantage to be derived j , i,.|[in> T the work to Holmes and Co. Those tlemen'wcre the lessees of the Lyttelton and ri ristchurch Railway, and had in their possession a i re rolling stock, and they were bound to work the K for six months. It must also be borno in mind |j" e t ,], e Government could not obtain the use of the PhrNU'luirch line until December, 186(5, when the h' e expires, and it is only by binding them to work the line that the right of running into the Christrl Uivh Station is secured. He could also say tlat the fact of Messrs. Holuies and Co. being nilwnv contractors, who had done their work in a satisfactory manner in the province, was an ad- j dition'al guarantee that the work would be done well nil rapidly• It was worth paying a little extra fora contract under such circumstances. His next duty would be to satisfy the Council that, without starving ond pinching their means, they really had a fair o S pect of providing funds to carry on the work, lie would therefore place before them his estimate of the funds available for that purpose during the ensuing financial year. He would assume that the land revenue having, during a period of great financial depression, kept up to its average, it would continue to do so next year. They had, therefore put down the laud Bales at £150,000 ; the sales «f town lands were put down at rather less than last vear and pasturage rents at an increase of £30,000. Referring to the provision made for these works, he would impress upon the Council that they relied exclusively upon the Railway and Harbour Works Fund, which consisted of two-fifths of the land fund, the proceeds of certain debentures, and the rents of the railway. It was no part of their plan to touch any other fund; not one farthing of the fund set apart for the Road Boards; nothing would be charged against the Land and Works account. The receipts of the Railway and Harbour Works Fund might be put down at £74,000, that is, two-fifths of the land revenue. Rents, £6,000. Assuming they did not sell any of the half-million loan, there would be the proceeds of the railway debentures, amounting to £123,000. Supposing only 90 was obtained for them, they would produce a sum of £111,000, which, together with the sums he had previously mentioned, would give a total of £191,030 as a revenue for the purpose, out of the Railway and Harbour Works Fund. As to disbursements, he should not be going beyond the mark if he stated that on July 11, the bankers' debt would not exceed £10 000 on this fund. The charges on the loans to come out of this fund will be the interest and sinking fund, which will amount to £17,000." For the Timaru and Lyttelton Harbour works £20,000 had been reserved, and £50,000 for the Lyttelton and Christchurch railway. After deducting these items, the sum of £90,000 cash was left for railway purposes for the next financial year. From this sum, he should take £45,000, which he thought sufficient for the contractors, and there would then remain an equal sum, in which members of Northern constituencies would feel aa interest. It will be perfectly safe to go on with the works. He had put down the whole sum at £50,000, and whatever sums might in future be raised exceeding the calculation, might be made available to pay back the sums which have been, as it were, lent to the. Railway Fund. He would then refer to aquestion of the hon. member for Kaiapoi. He wished to deny the statement that Government had ever pledged itself to go on with the two lines of railway simultaneously. What was said on the occasion of the application to the General Assembly for the bill was, that they would do both lines as soon as they reasonably could. One reason for the preference being given to the construction of the Southern line is, that Government is in possession of the land for the whole of the line, while they have not a foot of the Northern ljne. Last session they had a bill to enable them to purchase the land. If members insist upon the construction of the two lines at the same time, then the Southern line must be delayed until all the preliminaries are settled for the Northern before a spade can be put in the ground. There was no wish to delay the Northern line, the estimates of which had been laid before him. and he thought that the whole of the land between Christchurch and Kaiapoi might be acquired for £20,000. Government intended to serve the usual notices and obtain possession of the land as soon as possible. The next point to which he had heard objections were raised was as to payment of the contractors in land. There might be some ground for the objection ; but it was better to go on with the works by a payment in land than not at all. If the Council did not sanction that part of the contract, there would be so much the less money for the line to the north. It might affect the land revenue to a certain extent, but not so much as was anticipated. Under the circumstances, they wished the Council to give them the power to pay in land, if necessary, but with the understanding that if they had the cash, of course they would pay it.

Mr. Peacock would like to know what were the objectionable conditions of the tender which had not been accepted. Mr. Hall had no objection to tell the lion, member. The Government received two tenders in the ease alluded to; one of them was sent in time, and the other was not. The conditions upon which the tenderer agreed to take the contract appeared to bind the contractor to the extent of one-third, while two-thirds depended upon the receipt of the mail from England, wit-h the option of throwing up the contract. The conditions bound the province, but not the contractor. Terms were then come to with Holmes and Co. It was true a verbal offer was received, which might have proved satisfactory, but it was too late.

Mr. Ay>6lky said that, looking at the allocation of the fund to be derived from debentures, as men-tion-d in his Honor's.message, in the proceedings of the Council of the 22nd Sept. r 1883, and under which £50,000 was appropriated to the Lyttelton Harbour Works,he thought no change could be made without a specific resolution of the Council. Mr. Hall said the allocation referred to was not a regular iegal appropriation of the loaa; it was a mere expression of opinion. Subsequently the Council liud done away with it, by passing the Railway and Harbour Works Ordinance, which makes a different appropriation. If the Council think it unwise to adhere to the appropriation of sums made Borne time back, they ask the Council to pass a different appropriation now, which they are at liberty to do. Independently of that, the objection should have been urged at the time the Lyttelton Habour Works were under consideration.

Mr. Wilkin inquired whether the land was to be reserved, or was it contemplated that the contractors should come forward on board days and choose what they wanted? Mr. llai.l said it-was clear that no land w'ould be reserved; they would obtain their land in the usual way, on the completion of their contract. Mr. Mooujiol'se hoped that the selection of the land was not limited to any particular district, '■there was a great fear entertained that such w f is the case. There was also a fear that holders of land

orders would negotiate them at a discount of twentyfive per cent., and a doubt existed whether the contractors bad not calculated upon that discount in making their tender. If the necessity arose for payment by debenture?, lie considered that the Government had inadvertently taken a plan likely to operate in depreciating what is really a good investment for money. There is no doubt the debentures ar e worth £100, as we offer six per cent. an, l simple security. It must be admitted that- the debentures have been sold under pressure, which has result (1 in a sa ] c f or j f;S3 than their nominal vnlue. Now, the purchasers of these debentures should be protected, us they were pulling in the same boat with lis as allies; therefore the debentures should npt be depreciated. Let there be no more sacrifices in debentures : if Canterbury depends upon its own resources, it can overcome its temporary difficulties ] unaided. As to the preference to the Southern line, e " a< l no doubt Government had taken the best means to consult the interest of the country, and it Blight be taken as a wise measure. Great energy l n 'l activity had been shewn in particular directions. ~ e Government believe that by opening the land to ne south, they would be conferring an indirect auQ tage upon the country: there would be no protit on the line, but it would assist the farmers to make J 1 exp 0r t It was a toss-up as to the benefit to be R "! ed the construction of the line T>nJV e one route had a larger and more settled Ppulation, and the other the most land to sell. Tb ®" Widiscontent at Timaru about the sale of tn tn J Whether the principle was right or wrong a expenditure of a portion of land revenue m cer

££* di ? ri ? t ?' U would be adv 'isable for the Governtation 6 means t0 a PPease the existing agi-

-J l ]; C ° x j lardl / knew whether he could vote for r>ni?. ? n i aB -i t sto ? d - was based on a new Lifi 1 ™X' carried out unconditionally, would 00-cj l Ti 9i° Unci '' ignoring the policy of last . s .'. <)n " * , e contract was adopted with reference le w aste lands, it would be a departure from the ■nor of the resolution, passed in that Council. Again it the contract were to stand without addition, there would be great dissension in the Road Hoards all over the province. Last session the Vio\ eminent finally disposed of the question of the appropriation of the land revenue, for which they would get great credit if carried out. He was aware that alienation of Crown lands had been practised on a small scale, but it was never before proposed on so large a scale, l'revious to the passing of the resolutions last session, they were at liberty to dispose of revenue us thev liked; now they were bound by the lesolution. When the deputation from Timaru waited upon the Government, they obtained a promise that 25 per cent, of the territorial revenue should be set aside for that district. He would suggest that the alienated land should be charged with that 25 per cent; if this were conceded, and to which the districts were fairly entitled, it would satisfy the clamour. He had a resolution to move, that the claims of Timaru should be recognized; in fact, anything short of recognizing the claims of all the outlying districts would fall short of justice.

Mr. ItoLLKSTox rose to make an explanation as to the couse he had adopted with regard to the Railway contract. When lie returned from the West Coast, he found that his colleagues had devoted much, care and attention to the subject, and had almost determined upon it. It took him by surprise, as, having had to give his attention to other matters, he had had no time to consider the subject. He had listened with care to their arguments in favour of the project, but it seemed to him to be somewhat premature to undertake a work of that magnitude. The province was not in a favourable position, financially speaking; and claims, not only from the outlying districts, but from the City of Christchurch itself, had not been met. He was completely taken aback at the work, and responsibility involved; and he could not but think

it likely to plunge the province into worse difficulties than it at present laboured under. He could see no prospect of ease in the money market, nor was it the general impression. The feeling was that times were as bad as they could be. It was objectionable to ease matters temporarily by involving the province in measures by which increased future liabilities would be incurred. At the same time he would admit that the Government had done the best under the circumstances. The contract had been drawn up with great care, and well put together to keep clear of financial embarrassment. The advices recently received from home would tend to relieve the public liund; but he should not be doing his duty if he had not said what he had on the subject. However, the contract was before the House, and they could decide. It would be binding upon him, as a member of the Government; but, after the care devoted to it by his colleagues, he thought it right that

his judgment should be subservient to theirs in the matter.

In reply to Mr. Aynsley, Mr. Hall said the Land Regulations would govern the terms and situation of the land to be chosen by

the contractors. Mr. Buckley could not see what amount would be set apart for the prosecution of the harbour works. If they were not carried out it would entail a great loss upou the province every year. He believed the railway to the Rakaia would not pay its working expenses. He objected to the payment of land in kind, as it indicated a great weakness in their resources.

Mr. Moorhoose had heard the speech of the Provincial Secretary with great alarm. Instead of his working con amore with his colleagues, it would appear that he does not approve of their proceedings. If the leader is despondent, what comfort are they likely to derive from his leadership ? The proper course would be for the hon. member to resign, and leave the ship to he piloted by a more nervous arm. There were all sorts of rumours of resignation flying about; another was that the Canterbury Standard was a commercial speculation of the present Government. The organ or organs of the Government say nothing about the temporary absence of Mr. Stevens from the Executive. Has there been an arbitration, or was it the same political excuse as that assigned by the Provincial Secretary ? It was i a disappointment that Mr. Stevens was not in that House to state why he retired for a short time, and give the reason for his return. What guarantee had they that similar difficulties did not exist all through the Executive? The hon. member must be conscious of a very great mistake indeed, and he would find that his explanation and subsequent retention of office were very inconsistent indeed. Mr: Hall, in referring to the remarks of the hon. member for the Heathcote, said he had treated unfairly the candour of his hon. friend the Provincial Secretary. He had hoped that the hon. gentleman (Mr. Moorhouse) had laid aside his prejudice against the Government; but he was afraid it was that feeling which had caused him to misrepresent what had fallen from his colleague, who had stated broadly his objection to the scheme of payment by land in kind: they all entertained the same idea that it was objectionable. If his hon. colleague could not vote with them, he ought not to sit with them; but his opinion had altered, and there was no reason why he should not do so. Whether similar feelings had influenced Mr. Stevens in resigning his seat, he could not say; but the events were notorious, and they had the fruits before them. If events had turned out different, they would have had to break the law to retain him as a member of the Executive; as it was, they were glad to avail themselves of him again. That was the explanation of the mysterious circumstances which had so nuzzled the hon. member for the Heathcote. As to the payment of the contractors by debentures at 90, he did not think it calculated to depreciate their value. If they could sell in the colony at 10 per cent., it was a satisfactory state of things, looking at the differences the value of money in the colony as compared with England. As to the other debentures, the English agent was instructed to sell at par. He differed from the member for Lyttelton, Mr. Buckley, who thought the line would not pay working expenses beyond the Rangitata That portion of the line between it and the Rakaia would pay well, as there would be a large traffic in wool and agricultural produce. It had been mentioned that it was only expected to spend £20 000 upon the Harbour Works in two year. T a was' a mistake, as that sum would be expended in the next twelve months. What those wojks were would be stated hereafter. In reply to the member Tor the Lincoln district, as to works being put up for public tender, he quite agreed with him as a rule • but if they had gone to Australia with half in cash, half in debentures, and half in I waste lands (laughter) as payments for conTrSs would they have found any one to treat with them ? With the means at their command, they went to the most likely men. In reply to the hon member for Geraldine, as to the 25 per cent, on the Snf rhp land he assumed that that question was spttled The Government hoped to .abmit an offer on terms- but whether any terms which t • i Knfln m;ide were founded in enor. rit? Isssesggg 3S"^;="=-" £ and the Hou.e adjourned for a quarter of an_hour. SSwlt. Ho took up Mr. Hall opposeu i, wag bet ter to pay for this broad P rincl P ®' that t i, e y should stand still, contracts lii land than ied payment would If the amendmentshouldbe imme _ have to be made' qw land is our weu.th, diately be ft i„ it had existed for some and then 'had'" woVked*weSf and' had been productive of the most beneflml results. amendment Mr. r q would be abandoning a were rejected, the J* expe dient. He thought principle a ",^ t keep our commodities intact. He that we ought toMP depr ecate that wretched should most strong y j property which yankee tendency P ug deal irt cash: that was respectable way of doing business. wa s the on y resyeci Ifc waß owing to Let us avoid dealing haying g0 long p re . that ® ? nterbury that our stock stood so high, vailed in Ca "\ er o l ie^tion to any attempt to put off He had a great J t8 in kind. our commodities as p j Lyttelton Harbour

Mr. Hall replied in the negative. ~ Mr. Ollivier strongly objected to Mr. PeaccKamendment. Messrß. Holmes and Co. wo naturally be very glad to get the land as payme . They could sell it, and no doubt it would be taK up by a very useful body of immigrants. He slloU . support the proposition of the Government, as thought that it was a sound one in principle. Mr. J. C. Wilson remarked that payment land to Messrs. Holmes and Co. was not of the same value to them as payment in cash, not that the lai was worth nothing to them, but cash was more valuable. For his own part, he was so pleased to sec railway undertakings carried out, that, much as ne disliked payments in kind, he would rather suonni to them than that the works should not be proceeded W Dr. Turniiull believed that payment in kind had been made to several public bodies. The principle had been established that such payments should ue made in land ; there was no principle laid down tor the guidance of the House which states that payment of a debt should not be mHde in land. Mr. Buckley briefly supported the amendment. After some further discussion, a division was taken with the following result: — Ayes, 7. —Messrs. Buckley, Clark, Peacock, Rowe, Stewart, Westenra, and Wilkin. Noes, 18.—Messrs. Aikman, Aynsley, Birch, Oowlishaw, Cox, Hall, Hargreaves, Hornbrook.Moorhouse, Ollivier, Rickman, Rolleston, Tancred, Tern pier, Toss will, Turnbull, C. Wilson, and W. Wilson. The amendment was therefore lost, and the resolution was put and carried. The House resumed, and the resolution was reported and adopted. • Mr. Hall asked for leave to introduce the City Council Ordinance Amendment Bill. He proposed also to ask the House to suspend the Standing Orders, so as to allow the bill to pass through committee the following morning. The bill was read a first time, and ordered to be printed. Notices of motion were given, and the House adjourned till next day (Friday), at twelve o'clock.

Friday, Jdne 2. The Council met at noon, soon after which time the Speaker took the chair and prayers were read, the following members being present at the time Messrs. Rolleston, Hall, Tailored, Maude, Cracroft Wilson, Rickman, Westenra, Cox, Hargreaves, ■Wilkin, W. Wilson, Hornbrook, and Stewart. Mr. Cox moved for a return of the acreage of Crown lands otherwise alienated than by sale since the last session of the Council. Mr. Hall had no objection, and the return would be furnished as soon as possible. The motion was carried. THE - RnrEB—IIALSWELL. Mr. Cracroft Wilson said the Ordinance providing for the clearing of rivers from watercress only came into operation in any river on proclamation. Other streams had been proclaimed, but the Halswell had not. He moved that the River Halswell be declared a river under the Watercress Ordinance of 1864, and that his Honor the Superintendent be solicited to issue the necessary proclamation in the Gazette. Mr. Rolleston wished to know, first, whether other residents on the river were of the same mind with the mover. Some injury might be done to landowners by the working of the Ordinance, and unless they accepted it, he thought the Council should be averse to forcing it on them. Mr. Wilson said he had not asked all the residents; lie was not personally interested as a landowner on the river, but he knew that the Ordinance was required there, and that it would be cheaper and better for the residents to have it in force. Damage was done by the present want of system. Mr W. Wilson confirmed the opinion just expressed. He knew of tracts of land being placed under water by the accumulation of watercress. He had seen it quite lately, and believed that it was most important that every possible step should be taken to clear the river, which was one of the worst in the province. It affected a large extent of very valuable land. Mr. Rolleston admitted the necessity of enforcing the law, and his Honor would be advised to take the needful steps. The motion was carried. auditor's report. The Speaker intimated that he had received a report from the Auditor, showing the unauthorised expenditure. The report was read by the Clerk, and was ordered to be printed. LIBRARY COMMITTEE. On the motion of Mr. Rolleston, a Library Committee was appointed. 60LDFIELD TOWNSHIPS. Mr. Rolleston moved — 1. That in the opinion of this Council it is advisable that townships should be laid out for sale at the Hokitika, the Waimea, and Brace's Bay. 2. That the townships shall be laid out in sections, averaging a quarter of an acre each, at an upset price at the rate of £48 an acre, except in cases where the ground has already been laid out in the form of business sites, in which cases the sections should average from one-six-teenth to one-quarter of an acre.

He said that the townships hitherto laid out had been very irregular. Hokitika was more regular, but the business sites granted by license had not been the usual quarter of an acre. He therefore left it open to lay the town out otherwise if needful. The Government proposed that the town lands should be sold, and on the spot, as it would be wholly unfair to sell at Christchurch. . . , Mr. Maude wanted to know if it was intended to throw open rural laud for sale on the West Coast. The time was coming when agricultural land would be wanted, and it was important that a settled population should be attracted there, and, if possible, the diggers themselves made residents. Mr. Rolleston said the question was under the close consideration of the Government, and it was their intention to throw open blocks for sale as soon as possible. It had not been possible to do so hitherto. There was a good deal of available agricultural land, but it was difficult to say in what places gold might not be found ; and as soon as the Government were able to distinguish between the auriferous and other land, they would at once throw open the latter for sale. Mr. W. Wilson wished to know what the size ot the townships would be, and whether the usual reserves would be laid out. The Council had no plans, and only the most meagre information. _ Mr. Rolleston said the plans were not yet in his possession; but it was the intention of the Government to make ample reserves. The law required one-tenth of the town to be reserved for public purposes, but he would suggest that even a larger amount should be set apart. After a few words from Mr. Maude and others, the resolutions were adopted. Leave of absence was granted to Mr. Beswick for a week.

WEST COAST ROAD. * Mr. Hall said, even at last session the Government were prepared to take steps for the management of the West Coast. His duty now was to explain what they had done in the matter of road communication. Even so late as Januaiy, from reports by Mr. Rochfort and others, the goldfield was not thought likely to be permanent. This opinion turned out to be erroneous. Very different accounts shortly afterwards arrived. Towers had already been obtained from the General Government to act with promptitude. At the end of February 6 extent of the field became apparent, and it became the duty of the Government, among other things, improve the means of communication. At once a officer of the Engineer's department was dispatched to the Lower Teremakau. He improved the the way down with great success. Instead ox c - ing thirty-six times, the river had now only crossed seven times, and it was now a ve v, foot-track. The total spent in this work wasi */«, in addition to the salary of the superintending B neer. The public was aware of the result • George Dobson's explorations, through the P press, which the Government bad J taken pains to supply with re P or T.r„Do3geß- - They had no particular p P sion in favour of the Otira route 5 . j party which was sent there under Mr. D instructions, if the Otira route was not 11 proceed to the Hurunui route and mipro emen A proposition was then made by tei» , , to explore the whole of the western po favo|irable) Waimakariri; and this seemed t^e that the Government PJ on l lO ®J j t had in expedition by a grant of ■ *" J •- Bum bereality cost those found from sides. The result was that no ac jj uruiiu i line the upper waters of this river. the roa d, at Mr, Edwin, Blake was sent to P witll suc h success the same time, and 960 .f ® JLly' believed it could that the residents along it ?«- ' believe that more be made so good. He J 1 d under the circould have been done than rece ived was most cumetancea. The ™ b « coottaml hindperplexing, and the »» had orders to supply all ranee. The road P ar to f f oo d with rations. This travellers actually in f case s where it was rewas done, but the number oi

quired were very few indeed. Nor had any loss of life occurred through the neglect of the Government. On the upper Teremakau no fatal accident whatever had occurred; but in the lower part of the river lives had been lost, where the Government really could do nothing. The report of a first-class engineer was hen trequired on the Otira line, and Mr. Edward Dobson was dispatched for the purpose. The exploration made by him satisfied the Government that the best route was that by the Otira, and steps were at once taken to push it on. Two road parties were sent out forthwith, beginning from the Kowai, and improving the road all the way. The nature of the work, the haste required, and the putchwork character of the repairs, forbade calling for tenders; but the contractors took it without previous examination, to be paid such a 1 rice as the engineer might think a fair one ; and the prices fixed were remarkably fair. The Government had now to decide on which road to lay out money, for they could not undertake both the Hurunui and the Arthur's Pass roads. Mr. Dobson's report settled this question finally, and exhausted the arguments on the subject. He thought that eventually the line from Christchurch would be by Kaiapoi, whence a branch of the Northern railway would run to Oxford, and a road would lead thence through the gorge of the Waimakariri to Arthur's Pass, making the distance from Christchurch to the Teremakau about 104 miles. By the Hurunui Pass the same point was reached in 116 miles. The access to the West Coast from the North would be by a still more northerly pass. For all these reasons the Arthur's Pass road was entered upon. An offer was made by a gentleman of Kaiapoi to make a road to the mouth of the Teremakau, by the Hurunui, for a sum of about £14,000; but it was quite clear that that gentleman did not know what he was proposing to do. Mr. Dobson had taken infinite trouble with the work he had in hand, and deserved that his services should be acknowledged publicly. Mr. George Dobson's services were also most valuable. With the exception of Por-ter's Pass, the whole line to Arthur's Pass was already a dray road, and the works had been very well performed by Messrs. White and Wright. There was no part of the road so bad as the Papanui road used to be. There was an impression that enormous works were required on the Oiira, and enormous expense would be incurred ; but this was a mistake. A steep dray-road could be made for not much money, and he hoped that further investigation would show that a road, could be taken on the level. In two months a bridle road would be carried thence into the open riverbed of the Otira, for £2000, whence a road was practicable to the Teremakau; and arecent discovery of Mr. Walter Blake's showed that there was an access from a point lower down into the diggings by a very easy cutting. This saved 20 to 25 miles on the road to Hokitika. Mr. Sale was instructed to cut this pOTfr lrom 20 to 80 feet wide, and report on the expense of corduroying it. He was persuaded that more rapid communication with the diggings would soon be established than,.any one was. aware of. An important discovery by Mr. Browning was well known; but, so far as they knew, it was not likely to become a dray track. The distance was not shorter to the main points of the West Coast, and all the passes were not fully known yet. Mr. Sale would direct the exploration of the head-waters of the Arahaura and Hokitika from the west side, and Mr. Browning would receive an appointment as surveyor, which would place him in the position of being at the head of their explorations. Mr. Hall then read a statement of the expenses which had been incurred, and for which the sanction of the Council was required. He moved that the Council go into Committee of Supply, to consider the resolution. The Council then went into committee, Mr. Maude in the chair. Mr, Hall moved— That this Council will indemnify his Honor the Superintendent in the expenditure of any sum or sums of money, not exceeding the sum of £20,000, which his Honor may deem it necessary to incur in the formation of a Jroad to the West Coast. Mr. Hickman wanted to know if Mr. Dobson had made a personal survey of the Hurunui line, or took his facts from hearsay. Mr. Hall said he had been up to the saddle, and even on that part an expenditure of £80,000 would be necessary. Mr. W. Wilson thought it would be well to state whether it was intended to run a gold escort when the road should be finished. Mr. Rolleston said that he stated yesterday that this should be done as soon as practicable. The establishment of a post was only preliminary to that of an escort.

Mr. Hall remarked that Mr. Blake's new track offered the greatest facilities for the escort, as the gold would be brought away from the Waimea, which was the principal source of supply, without going to the Hokitika. The Government would, as soon as possible, make a second attempt at establishing an escort. The resolution was then put and carried, and the Council resumed, when the resolution was reported, and finally adopted. CHRISTCHUKCH CITY COUNCIL ORDINANCE. Mr. Hall moved the second reading of the Amendment Bill. The chief point in it was the alteration of the principle of rating, by which it was hoped that a rate-roll for the present year might yet be prepared. It was proposed, in the case of lands, instead of the value for the year, to assess them at the rent for which they might let for a term of seven years. Opportunity had been taken to make some other amendments in the law, but none were of importance. Mr. Maude approved of the principle enunciated; but he objected to some of the details of the present Bill. He would prefer a measure simply enabling the Council to construct a fresh roll for the current year. Mr. Cracrokt Wilson protested against the general application of the principle announced. Say land was let for a single year, or two or three years, were the assessors to value it as if it were leased for seven years? .The Bill was then read a second time, and, on the motion of Mr. Hall, by notice, the Standing Orders were suspended, with a view to passing the Bill through Committee the same day. The Council then went into Committee to discuss the several clauses. The clauses were read seriatim, and carried, after some discussion, and a few verbal alterations had been made in some of the sections. _ The Bill, as amended, was reported to the House,which resumed; but shortly afterwards went again into Committee, to consider the confirmation of the public reserves made since the last session. It was decided that the further consideration of the subject should be deferred until Tuesday next, in order that the list of reserves might be in the hands of 'the members. Notices of motion were given, and the House adjourned until Tuesday next.