GENERAL ASSEMBLY.

Lyttelton Times, Issue 1510, 14 October 1865, Page 10 (Supplement)

GENERAL ASSEMBLY.

[from a correspondent,] Wellington, Friday, Sept. 15. I was able to Bend you by the Albion, which steamer sailed for Lyttelton among the Bmall hours on Wednesday morning, the reiult of the division on the separation questi6n, which closed but an hour or bo previously. It would be supposed that, after talking four days on the state of the colony, the members of the most loquacious body in the world would be glad to have done with mere oratory and take to business for a change; but, unfortunately, the long debate had elicited some angry feelings without exhausting the particular subjects which created the anger. Mr. Bussell, representing the Ministry of 1863-4, impugned the prudence and general conduct of the present Ministry, with the view of showing that a Southern Government, which alone would receive the support of the Assembly in j its present state, was incapable of taking a correct view of native affairs and conducting the administration of the country in a matter so vitally important to the North Island. In this light the argument drawn from the failings of the present Ministry had a bearing on the question of separation; but it was a dangerous argument to use, and dangerous ground for any exMinister to venture on. At once the debate began to assume the character of a " want of confidence" and party struggle. Besides, the attack demanded from the Government a justification of their general policy, aud invited a tu qitoque reply, which was the easier and the i more forcible of the two. So the debate was, in fact, a discussion on the question whether the present i Government or the late one spent most money with the least prudence and the greatest amount of illegality. I daresay, if the House were to sift thoroughly into the whole circumstances, it would arrive at last at the 1 conclusion that the honour and inte- ■ grity of both Governments are unimpeachable ; and that the administration of affairs has been conducted with as much prudence and exactitude as was 1 possible under the terribly trying circumstances of the colony. But the i circumstances have not been thoroughly sifted into, and the resolutions on which the discussion arose the other day, settled nothing as to this question; so the quarrel hangs on. And, in spite of the four days' debate, which ended on Tuesday, Wednesday brought up the whole question of the merits of the ; two Governments all over again. Mr. Eussell demanded an enquiry into his conduct, when in office, by means of a select committee. The Government, not approving of a select committee for such a work, proposed as an amendment that the members of the Audit Committee should be appointed as a Royal Commission, out of session, to inquire into the adminstration of the finances of the colony since June, 1863, and particularly as to the manner in which the Three Million Loan has been raised and. expended. Mr. Russell's motion could not be put, owing to some informality, but Mr. Sewell opened a very brisk debate in moving the Government amendment. This debate has not closed, &nd may possibly involve a great waste of time before it is done with. On Wednesday, what time was saved from the discussion on the merits of Ministers was spent on an extraordinary debate about some native reserves in Dunedin. This city was originally laid out with some water frontage reserves in Princess street, which were intended for public purposes. After many years the Governor chose to declare some of them reserves to be devoted to Maori purposes, but nothing was done with them. When the goldfield's rush made Dunedin a great town, and added value to its lands, the Provincial Government found that these reserves which they thought their own were claimed by the Native Commissioners. The Government would not decide one way or the other, but permitted the land to be used on rental, from year to year, and carried the proceeds to a suspense account. This session the Otago members brought- up the question, got a select committee to examine the facts, bad a report in favour of the province, and requested the House to order a Crown grant to be issued accordingly. The Government protested against making the Legislature a judicial tribunal, and begged that the ordinary forms of law might be complied with by taking the case into the Supreme Court on a friendly action, the costs to be paid out of the estate. But the House approved of summary justice and directed that the Provincial | Government of Otago should be considered the owner of the land, in trust for the Municipality of Dunedin. The Government called for a division and lost it by 17 to 27; a victory which Otago men accept with becoming pride. On Thursday, distracting debates were carfefiilly avoided, and an immense quantity of small business was done in the morning. In the evening the Volunteer Bill was read a second time, with the universal approval of the House, marked not by a lazy passing of the measure through a formal stage, but by an intelligent examination of the provisions of the Bill, and an expression of sympathy with its objects irom all sorts of members. Ihe Militia Bifl was also to be read a second time. This is really a formidable measure, even for the Middle Island, where all the first-class militia are actually to br called out everv year, but still more so for the Northern Island, where actual service stares the population ln the f ac e ; for it is the plan of the Government to require the people to defend themselves, and to provide comparatively small permanent force to assist them. It is n Vn * 6r th u at fc^ e P rovißi °ns of such a Bill, at such a time, should be keenly criticised; and the subject was considered so important that the debate upon it was still further adjourned The Representation Bill was but

touched, and no more; and the Native Lands Bill was pushed on in committee, all the clauses being passed except those which bore on debateable questions. The Stormbird arrived yesterday evening from the Bast Cape and Opotiki; and as rumours of the successful landing of the expedition were going about, Major Atkinson read to the House the dispatch from Captain Hope, which was received with cheers: — Portions of private letters irom Captain Brassey and Captain Hope were also read. The former stated that 13 dead bodies had been picked up in the town out of which the natives were driven, and that two slight casualties only occurred on our side. Captain Hope's note said, w The conduct of the native contingent was admirable. We could see their operations from the ship, and it was a beautiful sight." Tuesday, Sept. 19. Politics are like the weather in Wellington. No such storms occur elsewhere, but when it is fine, the serenity is wonderful. The sky is just now clearing, after a fortnight of broken and stormy weather; and though one cannot aver that wind and rain are not to be expected after this, there is great hope of settled weather soon returning. I have already described, somewhat roughly and briefly, the events which have taken place in the House of Representatives up to Friday morning last, and as neither House has sat since the evening of that day, there is only one day's work to account for. As far as the Lower House is concerned, the political weather, on Friday, was squally and changeable. Your readers may perhaps imagine that the Tipper House has not had justice done to it in my letters; and that the House of Representatives baa occupied an unfair amount of attention. But really this apparent neglect of the Peers only represents the true state of the case. Their Lordships do nothing, because they have nothing to do; the Commons have talked so much and have got through so little business in the last three weeks that the 4 other place' has not had enough business to occupy its time. Since the two or three questions before it on which interesting speeches were made, and to which I drew your attention, there has been nothing to report of any moment. A very feeble excitement was got up about separation; and something still feebler about finance. But the newspapers take very little pains to record the opinions expressed, although their Lordships prove themselves friendly to the printing interest by cutting down and purging of all offensive matter the bill for regulating printing offices and newspapers. The Upper House has taken up this subject, and for want of a better has made a bonne louche of it. The fetters forged for a free press by the tyrants in power have been shattered not by the representatives of the people but by the nominees of the Crown, who mean to win their way to the hearts and confidence of the public by so bold an act. And if the Masters and Servants Act shall ever emerge from the labyrinth of recommitals and adjournments into which it has been driven in the Lower House, their Lordships are expected to strike one more blow for liberty and the people by tearing the Bill into fragments on the Council table.

The Council, in truth, strikes for i freedom, but it speaks not. The glory i of its eloquence is departed. Once • upon a time there was to be heard ■ within its walls the keen cogent fluency i of a Whitaker, the dignified but labo- • rious lecturing of an Arney, the cold, , clear discourse of a Swainson, the • smooth pleading of a Pollen, and the happy, hasty, hesitating advocacy of a Sewell. But now the first has left his place for private life, the second has been unable to tear himself from his judicial office in Auckland, the third allows his dread of the sea to prevent the fulfilment of his duties, the fourth is necessary to the administration of the government in Auckland, and the fifth has abandoned his seat among Peers to accept the more animating, but less stable honours of a Representative. Besides the four conspicuous Auckland members of Council whom I have named, there have been absent this session Messrs. Walton, Salmon, and Gilfillan, from the same province. So we get back to the dust and turmoil of the Lower House. Here the fighting is not over, nor the fighting spirit extinguished. To repeat the metaphor with which I began, the weather shows some signs of clearing, but the barometer is still between " stormy " and " much rain," and the Government won't venture abroad without the most abundant precautions. The financial debate has not come off yet, and until that cloud has passed over the Premier refuses to go about his ordinary work out of doors. There was a strange fight on Friday upon this very point. On the previous day the Representation Bill had been put aside as too precious a morsel to be merely nibbled at, and had been carefully placed high up on the order paper for Friday, in order that the debate on the second reading might come on with plenty of time I before members. It did come on; the House happened to be rather empty; and, after a very few remarks, the second reading was carried. But before anything more could be done to the Bill, some of its opponents made their appearance, and a general "scrimmage " arose on the questiou when the Bill should be committed. The Government named that day week, declaring that they had given no promise to do more than read the Bill a second time on this particular day, and that they meant to have all the venom of the opposition drawn out on the financial questions before they would take the Representation Bill through another stage. It is a little difficult for an outsider, watching the proceedings of Parliament from the gallery, or rending of them in newspaper reports, to understand what all the quarrelling is about. On this occasion I believe the fact to be that the Government still fear (I thmk needlessly) a defeat

on their financial policy, which they know to be the weakest point in their armour, and that which will be assaulted most determinedly by all Provincialists, and by the regular Opposition besides. Knowing this, and fearing thus, they push the fight, for two reasons. In the first place, if they are to be turned out, as they say, they will not be at the pains and labour of pushing a troublesome Bill, like the Representation, through the Legislature; they will only undertake that onerous tank if they are to be left with the responsibility of office. This is the ostensible argument. The other is that which is felt but not paraded. If certain Middle Island members get all thev want in the way of representation, they will be free to vote how they choose; but if a hostile vote against the finance of the G-overn merit can only be given at the risk of losing the Representation Bill, which does so much for the Middle Island, they will perhaps, pause before givint,' it, and for the sake of the additional members swallow taxation and reduction of revenue. The little game was I played out on Friday afternoon, and the Government won it; the Reform Bill was postponed till after taxation, and cannot come on till Friday next. This being done, Mr. Reynolds, of Otago, offered a hideous threat, a bifold menace to the House—first, that he would speak against time all day, and every day during the week, until Friday should come; and, secondly, that on turning out the Ministry, he himself would take the reins of office ! In so saying Mr. Reynolds proved himself the truest friend of the Ministry, and secured to them a permanent tenure of power. One of his friends bent, no doubt, on saving the unfortunate man and the House from four consecutive days' orations against time moved that the House should adjourn over those days till Friday; but this motion was negatived, and poor Mr. Reynolds has now either to fulfil his threat or convict himself of self-suffi-cient imbecility. Whichever he does, I don't think the Government have anything to fear; and lam firmly persuaded that they would have done far better to have disregarded the impotent caballing of a small minority, and to have pursued the even tenor of their way, fearless of opposition, patient of criticism, and ready to conciliate.

A curious symptom of the pugnacious temper of both sides was given on the same day. Mr. Sewell had to move the formal resolution that the House would u on a future day" go into committee to consider the propriety of imposing Stamp Duties. I think the motion was unnecessary, and that the question of Stamp Duties could and ought to have been considered in the Committee of Ways and Means already ordered to sit. But, at any rate, the motion meant no more than the fixing of the date. A half-and-half discussion arose, members not exactly knowing whether they would be committed to taxation by allowing the motion to pass. But at last the question was put, and on the voices the ayes had it. Nevertheless, though the Government had their way, one of the Ministers, in his ardour to fight, or perhaps confused by his intense susceptibility to the attacks of the Opposition, demanded a division. In this state, though the formal motion might have passed without committing any one, yet to divide in favour of the Government was to record some sort of assent to the principle of extra taxation in the shape of Stamip Duties. Consequently a good many members walked out of the House, and left the Government with the comparatively small majority of 22 to 17. The question itself is the first of those fixed for discussion today. If the amount of speaking on it be at all commensurate with the interest felt in the subject on ail sides of the House, the debate will be at least as long as that on Separation. Fortunately there are but few members who are bold enough to speak to figures. The notorious Masters and Servants Bill finished the evening. The Attor-ney-General has allowed the conduct of this measure, though he introduced it, to glide into the hands of its putative father, Mr. Craeroft Wilson. This gentleman had seen the measure through committee, and now wished to carry it to a third reading and safety. Mr. Brodie wanted to bring it back into committee to alter one clause. Other members forewarned the House that they had other clauses into winch they meant to thrust amendments. And finally, a vigorous voice was raised for the rejection of the Bill altogether. Finally, it was sent back to the tortures of purgatory before the committee, but not without an ing and animated, if not very ckvoroti? interchange of epithets between lion, goutlemen, for which see the papers. To prove the really private nature of the measure, though it re-

ceived the Government sanction, ;j member of the Ministry deuouiuvi some of its provisions in severe term*. and gave notice of amendments offered in committee. I hardlv tin" the Lords will be left the satistiu'U^ 1 of quenching the feeblej light oi I'ttf which still flickers in this unhappy Bill.

The Assembly is likely to be "" session a full month longer, and t u is naming the very shortest time. Since this morning, when the Bird took the regular mail tor j South, very little has happened ni J Legislature. The fiuaneial have been postponed till the eveni'V sitting at 7 o'clock, and as the l ,:inU sails at once, I cannot giw? . voU particulars of the discussion. . To-day has been occupied i» Lower House in discussion on t' H> lunteer Force Bill. About two-t 11 of this measure has passed the 011 of committee without material 11 tion; but there is one point ot e derable consequence which has cided against the interests ot t vice. I mean t u e privilege ot exeiut( from serving on juries, which t ie has enjoyed for some years pa> • Government proposed to coutl 'i"| lt in privilege, and made a strong 3

favour of it; but the House got into its head that men enough could not be found for juries, and they negatived the clause, upon division, by about 22 to 17. The proposal of the Government to give volunteers and their officers i precedence over the militia was attacked; but the House supported the clauses, and this privilege has been conceded, which will be some sort of compensation for the .loss of the jury clauses. Saturday, Sept. 23. Another political squall has passed over without damage. The storm has been short but sharp, and the violence of the squalls i 8 gradually moderating. During the past week, of which last (Friday) night was the legislative conclusion, the fight in the Lower has been on finance in its two branches, the expenditure and the sources of reTenue. I can describe the present position in a few words. The House has affirmed the principle of the estimates, which is that the war expenditure should be charged, for the future, not against loan but on the ordinary revenue. Then it has proceeded to inquire whether extra taxation is necessary for this year on that account, and it is now iu the middle of an adjourned debate whether the stamp duties —which all acknowledge to be a legitimate form of taxation—are to be additional to, or iu diminution of, the present excessive customs duties. The Government mean to increase the taxation; and, an amendment has been moved to the opposite effect. The more detailed story may also be given in few words. When I wrote laßt,on Tuesday evening, the discussion on finance was impending. It began in the most clumsy manner in the after-dinner sitting of that day, when Mr Renall, —member for the Hutt, near Wellington, and therefore, by force of geography, a Government supporter, though his nature leans to chronic opposition, —was to bring on a motion in favour of economy, before going into committee of supply. He wanted to compel the Government to adhere to the estimates of 1863-4, in all salaries and departmental expenses. I don't know how many members were prepared to vote with Mr. Renall; but probably the motion was considered dangerous by Ministers, and a little private remonstrance may have been made against such a proposition coming from the mouth of one of their friends. However that was, Mr. Renall declined, when the time came, to move in the matter, and he had to be coaxed, and urged, and worried, before he would open his mouth. The process, to a looker-on, was a continual moving " that the Speaker do leave the chair," then a pause while the Chairman of Committees got into his place and opened his book, then a chatter for a few minutes, then a motion " that the Chairman do report progress, and ask leave to sit again," then a pause, while Mr. Speaker got into his place, then another chatter for a few minutes, then the same over again, another committal, another pause, a third chatter, another reporting of progress, another pause, a fourth chatter, and so on; to the grievous waste of public time. Finally, Mr. Renall did make up his mind to put his resolution about economy and adherence to last year's estimates; it was talked about in a random scrambling way, and lost. Then came a motion by Mr. Macaindrew to produce reduction in another way. He proposed that the estimates should be cut down in the lump by £100,000; and this proposal was also chattered over, put, and lost. Then commenced the actual discussion of the items of the estimates for the year ; and the Government began with the department of Internal Defence. The first item was a salary (£800) for the Inspector-General of Militia and Volunteers. On this the random scrambling discussion was continued, and with no more effect than that which had gone before. The ministerial position in supply is firm and impregnable. If a vote be objected to, it has been most carefully considered, and the amount placed at the lowest sum consistent with efficiency ; if it is still objected to, the Minister has to say \that whatever it may be in the power ofsthe Government to effect by-way oi redu&b»<J& in other parts of the estimates, office is absolutely essentiaNtQthe service of the country, and members will not attempt to impair its efficiency by reducing the amount; if pressed to the last extreme, he declares that Ministers will not be responsible for the conduct of public affairs if the House refuse to grant the sums which may be requisite for carTying on the departments. The force of logic can no further go and the vote is passed of course. But on thi question the Government had the helj of the volunteer element in the House which is strong; as the is recognized as a great want m th< organization of the force. All this took place on Tuesday, in next day, the economica. members lei that they had been throwing awa. their ammunition in irregular mishing, and they F e P are * for deliberate attack. When the tim came for committee of supply, M Stafford moved the following resoli tion: —

That, having considered the %***«*£ the proposed expenditure of the vernmentforthe financial 30, 1866j amounting, as |M?P ears J*° . near ] y statements, to the to of undertaken without CLS"fSS«™mn,end. that the pro- ™ Ted eSiture he largely reduced, and P fni«?iv indicates the estimated charges for <; o pec»a y and native purposes as being, SSffSSrifes-s briskest, and most to the point tlmt this session has produced. The ir 11 ' planof defence involved an expend l " ture which the ordinary revenue of the

x>lony could not possibly meet; that J h®y were putting on the loan charges fvhich should not be there; that the jost of the war should continue to be paid out of the Three Million Loan, as tar as it would go ; that, for the rest, they must look to confiscation of native Lands j and, in fact, if they could not see their way to getting funds from ather sources, they certainly could not io so from ordinary revenue, and so they must modify their plans entirely. This waß the purely financial argument. Of course there were many who objected to the war expenditure xs wrong in itself, because the plan of operations was wrong; and there were 3ther poiuts of general policy taken up. But the Government had one reply for all. The colony had ordered the war to be begun ; it had sanctioned the! present policy; it had brought the uonsequeuces on itself; and now it was in honour bound to complete the work, jost what it might. The debate ended about two o'clock iu the morning by a division, and a majority for the Government of 26 to 20. There were four pairs, Dr. Featherston did not come down to /cte, and one member, Mr. Eyes, of Marlborough, was absent. The only member for the Middle Island, out of Otago, who voted against the Governnent on this question was Mr. Crosbie Ward. He said that all his sympathies were with the present Government ; but that the plan of paying ! or defence out of current revenue was m practicable; six months ago the 3-overnment had declared it to be so ;hemselves; and a very short calculaiion proved that next year the carrying )ut of the plan would involve a defijiency on the year's accounts of nearly i quarter of a million. The question yas too serious to be made one of ?arty; and he declared that it the preient plan were adhered to, the consequences to the colony would be such as ;o render separation the only safety of ;he Middle Island. It will be observed that throughout this session, vhenever the question of finance has irisen, Mr. Ward has separated himself 'rom all the other members for Can;erbury, who have always supported ;he doctrine of liability for the war md its consequences. This discussion closed the question >f the Estimates. The Opposition, jroperly so called, declared that they vould not now seek to cut down the tems, when they had failed to reduce ;he total; and they would not be responsible for the expenditure in any shape. This they announced on Thurslay evening, when the Estimates were igain gone on with. They (Mr. Stafford, Vogel, Brodie, Graham, Williamson, Macandrew, and the leading Auckand and Otago men) washed their lands publicly, before the items were >one into, of all guilt on account )f them, and most of those members ivent out of the House. During Thursiay evening, therefore, there was peace, rhe whole defence estimates were passed, about £89,000 in all, including the permanent force as well as Militia and Volunteers. Then the native estimates were gone into, and these too svere ultimately passed in a lump, with i reduction of some £1500 only, the total granted being £58,000. Mr. Fitz Gerald put the case to the committee that he was exceedingly anxious to reduce the establishment, but he eould not do so at once, for to strike officials off pay without notice or compensation was impossible. He showed the existing items; but asked that, on his promise to reduce them, the committee would not fix him to items at all, but give him the whole sum in a lump. There was an amendment moved that the sum should be reduced b) £13,000. This was proposed by Mr Dillon Bell, and supported by Mr Cracroft Wilson and others, but rejec ted by the committee ; so Mr. Fitz Gerald got the whole, with the reduc tions only that he was himself able t< announce. Another element of debati was introduced by Mr, Ward, who pro posed that the native expenditur< should be locally charged against thi provinces in which it took place. A the committee was, thin, the debate oi this point was adjourned to anothe . j *1

>pportunity. t On Friday (yesterday) the two great i terns of Native and Defence expen- 1 liture having been reported from the i committee and adopted by the 1 House, the time came to consider how 1 noney was to begot. The question i )f imposing stamp duties was put in | committee by Mr. Sewell, who has taken the duties of the Colonial Treasurer, in the absence, through fllness! of that officer. I have not . apace to dwell upon the debate which lasted from eight oclock till half-past one in the morning, and then was adjourned till Tuesday. The point in it, as I have already said, was not whether stamp duties were a tair method of taxation, but whether they should be levied in addition to or in reduction of other methods. lne principle of addition was asserted in the Government' resolution; that ot reduction in an amendment proposed by Mr. Ward. The arguments used travelled very much over the same ground as that occupied in the previous financial debates; but the point at issue was better defined, and formed a more available handle for the opposition. There can be no doubt that the Government will carry this, as they have done every other measure on which they have insisted. ? < I will go back to Wedneaday a business to mention an additional debate on a kindred subject. Mr. Vogel wanted to know whether the new Customs Bill would be soon laid on the table, and he moved that it should be produced before going on with other proposals of taxation. Now the Customs duties have been under consideration, it is known, for a long time; but the idea has hitherto been that the intention of the Government was only to rearrange them, without increasing the burthen. In reply to Mr Vogel, hnwpver it came out that the Govern ment S deliberately holding the Cubtoms Bill back till the end of the session, with # the • raising the duties, m case the House refuses to comply with their stamp duties proposal. So it is not

certain that the new Customs Duties Act, when it comes out, will not be more onerous than even the present one. Among miscellaneous business I may mention that the Volunteer Bill has passed through committee without any amendments of importance. The draft which the Committee in Christchurch had before them was modified in many of the particulars which they recommended, as will have been seen from the new Bill which you published in your columns. This may now be considered passed and done with. The Militia Bill has also been read a second time, but not without much opposition. The Q-oldfields Bill, and the Canterbury Waste Lands Bill have passed through committee, and are on the high road to becoming law. So also is the Religious, Charitable, and Educational Trusts Bill, which particularly affects the Diocesan Synod of Christchurch, enabling it to hold lands and effect conveyances by an easy process. There is some probability that a Bankruptcy Bill may be got ready before the session ends, and, if not passed, at least left ready for next year, which is a great matter. It is an adaptation of the Scotch law, which gives the duty of administration to the creditors, and not to a court of justice in the first instance.

Sunday, Sept. 24. I wrote yesterday, by the Otago, a letter, intended to describe the actual proceedings of the Legislature for the past week. Nothing, of course, has occurred since by way of history; but there are two or three notices on the order paper of business to come before the House of Eepresentatives which deserve to be made known and commented on before hand. I begin with the least important. Mr. Stafford has given notice of a resolution, to be moved on Wednesday next, in the following terms: —" That in the event of an additional Judge ot the Supreme Court being appointed, with a view to the large and increasing population on the West Coast of the Middle Island, and in the province of Nelson, it is fitting that such Judge should reside in Nelson." Of course, there is a certain amount of reason why, in any increase of Judges, Nelson should receive the services of one resident there, rather than, that Christchurch should have two. But that is not the question. The question is, whether a Judge resident in Nelson can administer the Supreme Court at Hokitika, where his services are more pressingly required than either at Nelson or Christchurch. With our present experience of the navigation of the West Coast, it would be necessary to calculate on losing a Judge on the bar every other trip, which would occasion a larger consumption of legal talent than the New Zealand, bench could well spare. The alternative lies between residence at Hokitika and at Christchurch, from which place there is a road which has carried Bishops, and Secretaries of State, and may therefore be trusted With a Judge. Mr. Stafford has, perhaps, forgotten the calamity which deprived his province' of its Superintendent. On the same day Mr. O'Rorke, one of the Auckland members, has promised to submit to the House the bold proposition " That, so long as this colony continues to be one united colony, the general charges of the Government ought to be borne by the several provinces that compose the colony, in proportion to the ordinary and territorial revenues raised in each province." This means, of course, that the land fund is to be taken from Canterbury and used for Native and war purposes. The House will negative the proposition in the most abrupt manner, no doubt; but there will be a repetition of the doctrine that the land: fund belongs to the provinces, not by any inherent right, but by virtue only of an arrangement made in 1856, and called the " Compact;" and therefore, that the ownership of the lands can continue only so long as the unity of the colony and Legislature by which the compact was made. I think it would be easy to show, from the best authorities, that this doctrine is exactly wrong; that the compact was but the recognition of an abstract right; and that the land fund ought to be settled upon the territory in which it is raised for purposes wholly apart from the ordinary conduct of government, or the maintenance of law and order. I don't think Canterbury

need drill its Volunteers to mount

guard on the Land-office and Treasury just yet. But if the proper share of representation for the South is not secured this session, I am not prepared to say that next year the necessities of the North for more war will not prove too strong an argument for Northern self-control, and. for Southern sympathizers too. There are heretics from sound territorial doctrine already.

On the same Wednesday, and coming first on the Notices of Motion for that day, Mr. Crosbie Ward has a resolution declaring that no new province ought to be constituted in any district where it can be shown that an equitable proportion of the land revenue has been spent by the parent province; and if this resolution be carried, he has given notice of a Bill to be introduced to amend the New Provinces Act accordingly. It will be recollected that this Act is mandatory to the Governor, and compels him, on the mere request of a certain majority of separationists, to divide a province into two, whether the new province has suffered injustice or been treated with the most periect fairness. If the General Government had power to examine into the whole matter through the Auditor-General, there would be no danger of a district like Wanganui being pampered into good condition by Wellington, for fear of separation, and afterwards, by reason of its good condition, demanding and getting separation without giving any reason for it. At the same time provinces will still be compelled to do justice. The debate on this subject will probably bring out those who wanted, and still want, total repeal, but who, for private reasons of spite,

refused to advance their own object. If they still mean repeal, they will endeavour to carry an amendment on Mr. Ward's proposal. I have begun at the least important matters, and have now arrived at the longest if not the greatest. On Tuesday Mr. Vogel has a string of resolutions about the subject of provincial loans, which are as follows:—

Mr. Yogel to move—That the House go into committee to take into consideration the following resolutions: —

(1.) That in the opinion of this House it is desirable to define precisely the conditions upon which the security and repayment of provincial loans depend. (2.) That without making the general revenue of the colony liable for provincial loans it is desirable that the colony should undertake to enforce upon each province the discharge of its liabilities, either by impounding its revenues or by subjecting it to special taxation.

(3.) That Commissioners should be appointed by the General Government to negotiate provincial loans, through whom also the investment of the sinking funds and payment of the interest should be made; provided that it should be a direction to such commissioners to invest the sinking fund of each province in the re-purchase of its own loan or loanß. (4.) That as security for the punctual payment of the interest and sinking-funds of provincial loans, two - fifths of the land revenue ot each province should be paid to the Commissioners, out of which to defray the said interest and sinking fund; provided that, if such two-fifths be not sufficient to defray the payment of such interest and sinking fund, the Government should impound and hand over to the Commissioners so much of the balance of land revenue of any province as may be necessary, added to the two-fifths permanently appropriated to meet the payment of the said interest and sinking fund ; provided further that should the land revenue thus impounded be insufficient to meet the payment of interest and sinking fund, and should the Provincial Government not place the commissioners in funds to pay whatever deficiency there may be, the Colonial Treasurer should be authorised to make payment of the deficiency and to impound the entire revenues of the province until such deficiency, together with a fine of not more than one per cent, per diem be repaid, or until he is able to lay a statement of the case before the Assembly, and the Assembly takes some measure to enforce on the defaulting province payment of its liabilities. "And in case of a continued default this House is of opinion that the province defaulting should either be absorbed into one of its neighbours ready to meet and undertake its liabilities, or that the Provincial Government be suspended, and the government be administered by a commission appointed by the Governor, under sanction of a special Act of the Assembly. (5.) That in the case of any province the loan liabilities of which, in the opinion of the Governor, are not of an amount sufficient to make it necessary for the due discharge of the interest and sinking fund, that it should put apart so large a contribution as twofifths of the land revenue, it shall be lawful for his Excellency by proclamation to fix any less amount as the permanent contribution of such province : Provided that it shall be lawful for him from time to time to raise the amount to the said, limit of two-fifths, or to revoke the proclamation as the liabilities of the province increase; and in the event of the contribution made by any province in any one year, being in excess of the amount required for the payment of interest and sinking fund for that year, the said excess shall be held as a contribution towards the future payments of interest and sinking fund when the permanent contribution of two-fifths proves insufiicient. (6.) That as the interest on some of the loans is payable out of the colony, and as some time is necessary for the transmission of the money, it should be lawful for the Governor to fix by proclamation the dates on which the several payments of interest are to be held to be due in the colony and to be payable to the commissioners. (7.) That as security against the contracting of unauthorised liabilities, it shall be necessary, in all contracts entered into by Provincial Governments, that the payments for the same shall be made to depend upon "monies voted," or "to be voted," as the case may be, "by the Provincial Council," and when such stipulation is omitted from any contract, it shall, nevertheless, be held to apply to it: Provided further that the money shall not be held to be voted until the vote is embodied in an appropriation or indemnification Ordinance. (8.) That no fresh Provincial Loans should by authorised without the sanction of Act of the Assembly. (9.) That it shall be incumbent on the Commissioners to keep accounts in which credit shall be given to each Province for all payments it makes, and in which the mode of disposing of such payments shall be fully set forth ; and a statement of such accounts, certified by the Auditor-General, shall be published in the Gazette at least once a year : Provided further that the Superintendent of any province, or an agent appointed by him, shall be entitled at any time to examine the accounts and securities relating to his province. (10.) That the above resolutions should be incorporated into the Provincial Loans Consolidation Act.

Mr. Yogel has gone down to Dunedin for a week, and perhaps the question of provincial loans will not come on till he returns. This will give time for the consideration of these resolutions among those to whom they refer. The general principles find favour among Southern members, for one or two particular reasons. In the first place, the Government have got a dangerous measure, which it is desirable to arrest. Secondly, something really ought to be done, for provincial credit is not so high as it might be. Thirdly, the resolutions do not lump the provinces together in any way, or render one more responsible for another than is already the case. The idea simply is to bring out in the London market all provincial loans through the same means, so as to avoid clashing interests, undue competition, and confusion in the lender's mind as to the conflict of securities Then borrowing provinces are to be required to do as Canterbury already does —devote a fixed proportion of land revenue, year by year, to pay off its debts; so that it will be impossible for the territory to be sold off without the debts being provided for Then the proceeds of this proportion are to be retained by certain independent trustees or commissioners, who are to transact the business of paying interest, investing sinking fund, and adjusting accounts with each province. This last provision is simply a niece of extra care, to prove to the creditors that no folly or fraud on the part of fleeting provincial Governments shall injure their interests. And then there are some provisions, not so acceptable, about keeping up a control over provincial appropriations. Taken altogether, I think the resolutions of Mr. Vogel are practical in themselves, and far more acceptable than the Government measure. They will give all the Southern provinces matter for earnest thought. 1.30 p.m. There has been ah excitement to-day on the public jetty which outweighs all th« excitements of the Legislature.

To-day, the Ashley was to sail at noon fot Napier, and she was to take on, for service at Hick's Bay and Waiapu, about 60 men ofVon Tempsky's Forest Rangers, 45 of whom had come on from Wanganui a few days before, and the remainder were enlisted in Wellington during the past few days. The force had been ordered on board the steamer, and at the last moment, the men refused to go. The story told is as follows: —

Von Tempsky's force was enlisted by that gentleman, who has seen service in other parts of the world, and now for two years in New Zealand, and who has risen to the rank of Major. He is a peculiarly active and courageous officer, and has won the affections of the very rough men who compose his force. It is the crack corps of the colonial troops, and till lately had a higher rate of pay than the other forces by about tenpence a day. Some time before being ordered on this particular duty, the Government issued an order directing the extra pay to be reduced, so that all the men engaged in the same service should be paid alike. The men, then at Wanganui, refused to accept the reduction ; but their commandant, Von Tempsky, by his personal influence induced them to volunteer for this service, and they declared to serve with him [even without pay for three months. Major Von Tempsky has been for a few weeks absent in Auckland on sick leave. During this period, Capt. Brassey, the officer who commanded at Pipiriki, has been given a majority, and the command of the Opotiki expedition. Von Tempsky appears to have been a little hurff at Brassey being promoted to a command over his head; "but the Government gave the former an independent com mand in another district and on similar service, that to which the men were now proceeding, at Hick's Bay and Waiapu, close to the East Cape. I believe the story to be so far true ; but for the rest of it I have only information of a semiauthentic kind to rely upon. You will remember the dashing affairs at the East Coast, led by Capt. Frazer, who appears to be a most gallant and clever officer. In recognition of his services, the Government gave him two steps at once, and made him a Lieutenant-Colonel, thus placing him senior to Von Tempsky in the same district. I the blunder was committed unintentionally; but at any rate the Government were not prepared to carry out their promise to Von Tempsky to give him the command, and asked him to serve under Frazer, which hedeclined to do, and yesterday or this morning he resigned his commission. On this his men refused to march on board the Lord Ashley without him, and claimed the extra pay which he had induced them to forego, while volunteering on this special service. Looked at as a private question between Von Tempsky and the Defence office, if the above "story is true, the former is right and the latter wrong; they were not justified in superseding him and giving his junior officer promotion and command over his head. But looked at as a question of service, it is unquestionable that Von Tempsky, being ordered on service, had no right to resign, or to dispute about serving under an officer of higher rank, however unfairly that rank might have been given. He ought not to have attempted to get redress by failing to go on duty when ordered. But if Von Tempsky were ever so right, the men were clearly wrong, for they were bound to obey their superior officers, whoever they might be. At the same time, if the Government made the bungle above described, including the reduction of pay, and the superseding of the commandant, they brought the mischief on themselves.

It took two hours or more of trouble and argument to end the affair. The Lord Ashley went off, but waa recalled and stayed a little way off. In the first place the men who enlisted only the other day were called upon, and they at last consented. This started the matter, for when one man goes to the wars, his comrades don't like to stop behind. Ultimately, in addition to the 15 recruits, about 30 more gave way and were sent on board in boats ; and while I write the Lord Ashley is steaming out, leaving only 15 or 16 recusants. Probably some of these are drunk or half drunk, and when they come to their senses they will be sorry they did not go. But tjvo things have to be considered. First, the Defence office must take the warning, redress grievances, and foresee difficulties which may hereafter arise at any time from mis-management. Secondly, the Government and the Legislature, and the colony at large have to recollect that the " self defence" policy, when it means only hiring by our money mercenaries to fight for us, involves the great danger that when we have hired and armed the force we may not be able to keep I them under control.

I have heard that similar difficulties to that of to-day have before occurred, and have been got over as this has been. Of course, it is made political capital of by all those who deprecate the " self-reliant" policy.

Friday, Sept. 29. The Advertiser, of Monday last contains a full and clear narrative of the differences between the Government, Major Yon Tempsky, and the Waikato Bangers, the consequences of which I was able to describe in a postscript to my last letter. The opinions I then expressed are generally entertained —namely, that the Defence Minister committed a blunder by which he has lost a valuable officer, and shaken the confidence of the force; but that Major Yon Tempsky was not justified by the rules of the service in taking the course which he adopted. He was placed under close arrest for four days, and then permitted to leave his quarters on parole; and now he awaits the result of the court of inquiry, which will sit to-morrow. Colonel Haultain will be its president, and Captain Baillie, of Marlborough, with two junior officers of the Militia, will complete the court. The proceedings of the Legislature

extended over three sitting days, Tuesday, Wednesday, and Thursday. On Tuesday, a certain amount of general business was done, but no Bill or motion in which Canterbury is interested was advanced a stage. The debate of the day was, perhaps, in one sense, also that of the session, being the inquiry into taxation. You will remember that the Government had come down last week with their formal motion, " That it is expedient to levy stamp duties, for the purpose of producing additional revenue," and that Mr. Ward had met this with an amendment, not denying the propriety of levying stamp duties, but declaring that revenue might be raised by that means only for the purpose of reducing taxation by existing methods. The debate had been adjourned immediately upon this amendment being moved, and on this (Tuesday) morning it was proceeded with. Mr. Sewell opened it, on the part of the Government, with the announcement that they had given way to the arguments advanced in the committee. They would consent to strike off some of the items proposed to be charged on the loan, and to place a share of the defence expenditure on the loan in their room ; and to supplement this amount with a sum of £25,000, to be produced from sales of confiscated lands. But it camo out that this giving, way would not relieve the taxation of the country, because there were other items of expenditure yet to come to charge, which would absorb the whole saving effected by removing the war expenditure from the Estimates. In short, as the Estimates had been drawn the provinces were to have had but onehalf of the Customs Revenue for all purposes; and the Government had afterwards promised to give them ninesixteenths. The question was, where to get the odd sixteenth, an amount of £49,000. And it was this question that the Government had answered by their concession, not that about taxa- ' tion which the Committee had asked. During the debate it appeared that many members were opposed to stamp duties as a means of collecting revenue at all, and notice was given of another amendment to this effect by Mr. Reynolds. Finally, after some sharp debating, Mr. Ward's amendment was put, and lost by a majority oi two votes, 21 to 19. There were five pairs, and six who were absentees intentionally, or on purpose, besides the Chairman. The opinions of all were well known, however, and, had they been present, the result of the division would only have been reduced by a single vote, leaving a slender majority of one in favour of farther taxation.

Mr. Reynolds's amendment,declaring against stamp duties altogether, was next put, and lost by a majority of 24 to 18. And then Mr. Stafford proposed a rider to the original resolution, to the effect that the duties should not be collected until the measure should receive the assent of another Parliament, which was also lost by 24 to 19.

I have dwelt a little upon the story of the Stamp Duties, because it includes the question of taxation, which is the most important subject of the session to the community at large. It will be seen that the House was very reluctant to impose fresh burthens on the people; had the proposal not been a " Ministerial question," it would certainly have been rejected, but members who ally themselves strongly to the Government side are obliged to keep their mouths shut, and to close their eyes also, on occasions. After this the House proceeded to consider the representation _of the people; and, first, of the Maori people. Mr. George Graham, the peacemaker, moved a series of resolutions to the effect that in the next Parliament the natives ought to be represented by white men. The Government took the ground that, though it would be well that natives should be represented, this boon ought only to be granted at their request, and by their own consent. The resolutions were therefore negatived. Then, on the Bill itself, in committee, when the clause declaring the number of members to be 70 was read, Mr. Bell moved that the number should be reduced to 60. The effect of this amendment would be much larger and wider than the mere limit of the House. It would involve the dis-fran-chisement of several existing Northern constituencies. For, supposing that an increase of 13 (making 70) represents the number required to bring up the Middle Island to the same scale of representation as the North, it follows that if three only are to be added to the present House (making 60), five members must be struck off the ! North Island to keep balance even. The Ministry in their Bill have followed the principle of nondisfranchisement; and wisely, as I think. In the first place, the taking away of members is a most difficult and disagreeable task. Then, there is no positive harm in having 70 members, nor any particular virtue in the number 60. Besides, the natural subdivision of the country, as is evidenced in the case of Canterbury, requires the extended representation, unless we are going to allow one populous corner of a composite district to tyrannize over all the other interests within it. And, finally, the larger the representation is, the less will become the influence of the small provincial jealousies which now divide the of the colony into fragments. Six or seven men may be found to represent a province, and all to vote on one side, in which case they are exceedingly strong for mischief if nolfc for good. But if the same province obtains the privilege of returning 15 members, the chances are that eight of them will vote against the other seven. I don't say that such a result is for the benefit of the province which sends the members; but it creates a much more homogeneous House of Representatives on the whole, and therefore facilitates the governing and legislative processes. The debate on this question still stands over, and it is only one of many which will cause discussion during the progress of the Bill through the two

Houses. On Wednesday there waa a short but refreshing debate about the New

Provinces Act. Mr. Ward introduced it by a resolution proposing to amend the Act. This brought out those who wish to stop its operation altogether; and with the consent, as it appeared, of a majority of the House, Mr. Maeandrew gave notice at once of his intention to rdvive his old Bill for that purpose. Mr. Ward agreed to this so far as to postpone the debate on his resolutions until the trial should be made whether the House would, in fact, consent to the second reading of Mr. Macandrew's Bill; if not, he undertook to bring his motion on again; but he would not expose the New Provinces measure to the risk of complete overthrow. Mr. Cox spoke up strongly for the interests of Timaru. Mr. Stafford's motion, recommending that a judge for the West Coast should be stationed at Nelson, was objected to by the Government and others, but was ultimately carried without a division. Mr. O'Rorke's resolution, threatening to dip the hands of the North in the Middle Island land fund, lapsed in his absence. A great number of small motions and formal orders were disposed of to-day; and among others, the Masters and Servants Bill received a fresh thrashing in committee. It is now, where it has often been before, reported from committee, and ready to pass to a third reading; but it has so frequently been driven back to run the gauntlet again, that nobody can yet say that it is safe.

Towards the end of this (Wednesday) evening, one of the most exciting skirmishes of the session, folio wed by the most singular of all results, took place. For a fortnight or three weeks back there had been hanging on, at the end of a long list of deferred notices of motion, an adjourned debate upon a resolution proposed by Mr.Colenso, requiring information why certain natives who had committed murder were included in the late proclamation of amnesty, though they had been expressly excepted from pardon in previous proclamations. The interest in the debate seemed to have been lost, and the motion might have been disposed of one way or other in a few words, had not Mr. Dillon Bell pointed out in somewhat forcible terms, that the Oakura murders, the beginning of the present war, were among those for which amnesty had been granted. Immediately Major Atkinson rose and denounced Mr. Bell, declaring that he was responsible for those murders; for that he had persisted in sending the murdered men out to Tataraimaka,though the Government of which he was a member had had distinct warning that a party of natives were lying in wait to commence the war by killing any Europeans that might pass that way. The boldness and magnitude of the charge electrified the House. Setting aside the personal accusation against the Minister of that time, which involved the Governor even more than the Minister, the political position taken by Major Atkinson was most extraordinary. The murders of Hope, Tragett, and others, at Oakura, caused the outbreak of war after two years of peace; if they did not constitute a crime of a serious kind, for what did we fight ? and if they were not deserving of punishment, the aggressions of Kewi ought not to have caused the Waikato campaign, nor the slaughter of Yolkner and Fulloon the expedition which commenced its campaign at Opotiki but a week or two ago. For what have we been fighting, if these were not offences, or if, being so, they could have been punished by the civil law ? Not to require satisfaction is to forego all the objects of war ; to declare that there was no crime, is to assert that our proceedings have been unjust; to pardon without being able to seize the ringleaders, is to confess the impotence of our arms. Better wait till time shall place the criminals in our hands, than proclaim an amnesty because we cannot inflict punishment. Better allow murder to go unchecked and unreproved than to proclaim it a vile offence to be punished by the sword in one year, and the next to forgive and pardon the criminals whom we cannot bring to justice. We have had proclamations from time to time during the past two years declaring the slaughter of the men at Oakura to be murder ; and now we say it is not. Truly, we are a wise and consistent people; and the barbarian will learn lessons of morality and philosophy from our example ! In this strain the debate went on; and before it had ended a large majority of the members were known to hold, if they did not express, a strong opinion against the proclamation ot peace issued at the beginning of this month. And Mr. Weld, in a short speech, begged that it should not be made a party question, which was taken to mean that the Government would not make it so themselves. At the same time many members of the known opposition endeavoured to induce Mr. Colenso to withdraw the resolution, inasmuch, as all the mischief which the proclamation could do had been done, and there was no use in pressing the motion after the opinion of the House had been declared upon it. But Mr. Colenso would not withdraw; the motion was put, and carried " Aye " by the voices, the Government voting " No," and calling for a division. Then, in agreement with the view above expressed, and to save the Government from defeat, a great number of members walked out; the division proceeded, and several who remained found, to their astonishment, that it was indeed a Ministerial question. _ It had been declared so on the first night of the debate; and Mr. Weld's remark had not been intended to renounce the position then taken. By all these means, the " Aye " side of the division list was left bare; there were no tellers, and the result could not be recorded. In that case, the Speaker declared that, according to the judgment on the voices, the "Ayes" had it; which was a defeat for the Government, and all the more serious because it was known to accord with the real sentiments of members. It was now past one o'clock in the morning, and the sitting could not be prolonged ; but, in despair, the Government

declared that they could not keep office unless the vote were rescinded. It was agreed, then, that Standing Orders should be suspended next morning, and a motion taken to annul the vote without regular notice. And on the contingency of this being carried into effect the next day, Ministers consented to retain their portfolios during the night. On Thursday morning the programme was steadily carried out. Standing Orders were suspended, the vote of the past night was read, and it was ordered to be rescinded. But the Government were made painfully conscious that the sentiments of the majority were not with them in this most important item of their native policy, aud that they owed the retention "of their seats entirely to the readiness with which opinions were put. aside by their supporters for the sake of personal friendship. On division the Opposition again walked out, aud the Government had a majority of 21 to 4.

Mr. Stafford wickedly moved for, and was promised, some dispatches and letters between the Governor, the Secretary of State, and Mr. FitzGerald, in which the first and the last of the three abuse each other roundly. Is there not enough libellous literature printed for Parliament already ? Then there arose a long and noisy debate about Lowry Bay. This is the name of the place m Wellington harbour, on the opposite side from the town, which has been chosen as the site of the viceregal residence — £10,000 has been spent upon it already, and the next year is to show an expenditure of about equal amount. I am told that seventeen speeches were made against the expenditure of money for such a purpose at this time; so the arrangement has few friends. But eventually, instead of anything been hurriedly done, the subject was referred to a select committee for detailed inquiry. Then came a real defeat for the Government, and again on native policy. The Native Minister had a plan for cutting off from the province of Auckland certain districts at Kawhia, Opotiki, and Hicks Bay, to be native provinces, and to be governed by a General Government agent until a plan should bedevised forgivingthem Constitutions. This plan was embodied in a Bill, which Mr. FitzGerald, in a good speech, though none of his best, asked leave to introduce. He was met by Mr. Robert Graham with the unusual amendment that leave should be given to bring it in " this day six months." And this was seconded by Mr. Stafford, in a far more lively and energetic speech than has been heard from his lips since he left office in 1861. It was clear that the whole House turned against the Government in this point; and so apparent was the opposition, that they declared they would not press the measure. Mr. Sewell made an able defence for it, and Mr. FitzGerald said but a few words in reply, and that exhausted the debating. The amendment was carried by a tumult of voices against two or three " Noes " from the Government Bench itself, and the measure was kicked out in the most crushing and ignominious manner that has ever attended the defeat of any Bill.

The work of the day was then all bub over. The rancorous motion, in which it was proposed that a commission should sit to examine the accounts and finances of the colony, and the raising and expenditure of the Three Million Loan, was discharged from the order paper by the moving of the previous question, which was carried. A commission on finance would doubtless be a most desirable thing; but it should be one based upon broad grounds, and not constituted with a party spirit. The Miners "West Coast of Canterbury Representation in the Provincial Council Bill has been finally passed through both Houses. The V olunteer Bill is all but done with. The Bankruptcy Committee have produced a measure, a draft of which I enclose, to amend the existing law, with the promise that next session the country shall have a complete code, grounded on the Scotch system. In his speech on the Native Districts Bill (defeated), Mr. FitzGerald incidentally mentioned that we had 800 friendly natives now fighting for us at the East Cape. There is another difficulty between the Defence Office and a commander flf the local forces. Major (now Lieut.Colonel) Bookes, who commanded the Wanganui Militia, and was mentioned by name in the Governor's opening address to the Assembly, has been suspended and dismissed. Suspicions had arisen about his accounts, and he did not comply with repeated demands to render a statement. So another officer, Lieut.-Colonel Gorton, was sent up to examine the affair. Colonel Bookes then came away without leave, and refused to go Sack when ordered by the Defence Minister. He was therefore dismissed the force, and is now trying to trade upon his reputation with the Legislature and the country, and to have the dismissal reversed. So much for one of the heroes of the AVeveroa, recorded in the Speech from the throne.

The business on Friday was tame. The Native Lands Bill came on. This contains no new principle, but amends the law which was constructed in 1862, for the purpose of permitting natives to obtain certificates of title for their land, and to dispose of it then to any purchaser. The only point of importance was a question deeply affecting the province of Wellington. In 1862, a large block of land in the Manawatu district was excepted from the operation of the Act, so that the Provincial Government might buy there, as they had been used to do, without competition, and sell again at their own price. Dr. Featherston has been unable to complete his purchases, or, indeed, to get any land at all in that block during the past three years; but he claims to be in a position now to secure what he requires without delay. The question was, whether the claim of the province for special consideration should be still considered in the

Act, or whether the natives of Manawatu ought to be admitted to the full rights of proprietorship equally with the natives of other parts of New Zealand ? At the close of the discussion, the claim of the province was admitted by a large majority on division, Another incident of the day has occurred since I wrote the earlier part of this letter. The Masters and Servants Bill has received its quietus at last. The third reading was fixed foi to-day, but when the order was called on, Mr. Henderson, of Auckland, who has never before spoken during the session, rose in his place, and, speaking as an employer of labour in the colony for twenty-five years, moved that the Bill be read that day six months. There was a short debate, a division, and a tie—twenty-two on both sides. The Speaker gave his voice against the Bill, and it passed into the limbo of immature legislation. Then came on the question of stamp duties, and the Act itself, and the ponderous schedule, were at last laid on the table. The House merely nibbled at the question, and it was suggested that, instead of £75,000 a year, the Government will probably make £200,000 a year from this tax. Finally, the day was signalised by the second reading, at long and last, of the New Provinces Repeal Bill. Mr. Macandrew's short and sweeping measure was proposed and carried by twenty-seven to fifteen. I don't like to prophesy success, after so many failures, but it looks like it at last. There is no news from the East Cape, for the Queen, due on Thursday, has not arrived yet. Wednesday, Oct. 4.

The papers contain full reports of Major Yon Tempsky's examination by the Court of Inquiry, and there is no doubt that he has the best oi the dispute with the Government, both morally and technically. The gist of the defence for refusing to obey orders is that he had accepted service for the province of Auckland only, and that he was ordered to proceed to Napier, with which order it was competent for him, therefore, to refuse compliance. But it is quite clear that he would have gone on duty to Napier or anywhere else, as he actually went to Wanganui, had not a junior officer of smaller experience and less meritorious service been promoted over his head and placed in command. No such plea as was put forward at the inquiry, for, of course, no officer is justified in refusing duty on such grounds. But it forms a valid excuse out of doors for Major Yon Tempsky's conduct; and when coupled with the technical defence, is irresistible; and though the Court has offered no opinion on the evidence, there can be no doubt what the verdict of a Court-martial would have been upon it. Yon Tempsky must be acquitted of the charge of disobedience of a lawful order. There is, of course, the other view of the matter. There was a better way to accomplish the end than resigning at the moment when his services were required. An exceedingly cool and prudent man would have gone to his duty under protest, and by proper management have turned the difficulty to his own advantage. So far as blame attaches to an 6fficer who, under peculiarly aggravating circumstances, stands on his rights and considers his personal position more than the good of the country, so far blame attaches to Yon Tempsky. Nine men out of ten, treated as he had been, would have done as he did The tenth man would have been either more or less than an officer and a gentleman. But the moral of the case does not lie in these shallow reflections. The root of the evil is to be found in the system on which the colonial army has sprung up. The enlistment of mercenaries, who volunteer to do particular stated service, under a leader selected by them, and are kept in check by no habit of discipline, still less by any superior force, cannot produce a reliable force. The doctrine of self-reliance is all very well; but when it resolves itself into the practice of hiring men whom the colony can't control with promises of money that it can't afford to pay, the policy is stripped of its heroism and its practicability both together. I have alluded to this topic here, because the case of Major Yon Tempsky and his men is to be brought before the House of Bepresentatives this evening, and vent will no doubt be given to the opinions which most men hold on the subject. Some attempt may be made to ally the case of Colonel Rookes with the other; but it is one of a very different character, for it touches on pecuniary matters at issue between that officer and the Defence Office.

There are obvious signs of the session drawing to a close. ' Pairingtime ' has begun; that is, members are going back to their homes in couples, when their opinions happen to differ, so that nothing is gained or lost by neither being present at a division. The order paper is falling to scanty dimensions; the routine business is being cleared off; and the yet unsolved questions form a hard but small residuum at the bottom.

It occurs to me that your readers must imagine that all questions of finance have long ago been disposed of. There have been bo many debates reported, and division lists published — such a series of bills resolutions, amendments, and counter-amendments proposed and carried, or lost —all bearing in some way or other on this one subject, that it is hard to believe the thing not to be exhausted. But the fact is that hardly a single practical step is yet complete. There have been declaratory resolutions enough, but the House has not yet carried out one of them. The Estimates are untouched, with the exception of the Native and Defence departments, large indeed, but not more than a tenth of the expenditure: The appropriation of the balance of the loan iB untouched, the estimates proper for the year remain to be considered, the stamp duties are not much more than submitted for consideration, the Customs tariff is kept in profound darkness, the alteration of the Surplus Eevenue Act has yet to be fought for, the allocation of

the Three Million Loan among the Northern provinces has only been suggested in the most distant way, the regulation of provincial loans is no nearer settlement than it was two months ago, and in fine, further than certain resolutions, extorted from the House,to support the Government in its plans as a whole, I cannot say that anything inthecategory of finance has really been done. The fight has lasted a long time, much longer than in any previous session; but it must come to an end at last, and then the various questions which I have glanced at will be disposed of with marvellous celerity. I may here mention one cause of the delay. The Government have, it seems, determined to force the stamp duties through the House before they will bring down the new Customs Tariff. The Opposition, however, claim the right to know what is to be done by existing methods of collecting revenue, before they will assent to a new one. The Government are very stiff on the point, and, of course, the Opposition are obliged to give way inch by inch. But the effect of it all is that the public suffer; because time will soon be so pressing that the tariff must be passed without that reference to public opinion which is so wholesome. In the meantime the Commissioner of Customs has taken power to require any increased duties to be paid by importers, even before the Act is passed. I note a fact, with reference to the prolongation of the session. This session. is the last of the present Parliament, which was elected in 1860. The Assembly expires by law in five years from the " return of the writs." This may mean either the return of the first writ or of the whole of them. By way of prudence, it has been held that the Assembly ought not to sit or do business after the first date. The writ for Marsden was returned on the 27th December, 1860; aud that for Timaru on the 28th March, 1861. All the rest were between these dates. The Assembly can accordingly sit in perfect safety until the 27th of next December, which, it is to be hoped, it will not attempt to do, for the convenience of all parties. As for the business done in the Assembly since my last letter, there is not ; much to say. I was able to inform you briefly that on Friday night, the New Provinces Repeal Bill was carried to a second reading by 27 to 15. Yesterday (Tuesday), it went into committee, was met by amendments of every possible description, and was dragged through only by the hair of the head, but without a scratch, without the slightest amendment. It has one simple clause —that after the passing of the Act, no new province shall be constituted, except by Act of the Legislature. It stands for third reading to-day, and will no doubt pass. But then it goes up into the Legislative Council: and it is generally understood that that body is exactly evenly divided between ayes and noes. A single vote would make the difference. It is to be hoped that if any member of the Upper House not in attendance wishes to have the New Provinces Act repealed, he will hurry up to the division. It is necessary to add, for the prevention of mistakes, that Mr. Jollie proposed his wellknown resolutions in favour of the outlying districts, as an addition to " the Eepealing Bill. But, though many members would have concurred with the spirit of his proposals at any other time, they were so determined not to allow any interference with the repeal that they resolutely negatived the addition. As soon as the repeal is safe, they profess themselves willing and ready to unite in framing a measure which shall provide substantial justice for all outlying districts, whether they could have claimed separation into new provinces or not.

Yesterday the stamp duties schedule was partly considered. There is any amount of guess work in it, for no one is able to say what amount of business is done in the country likely to be taxed, and therefore what amount of money the tax will realise. There are, however, two items, the tax on bank notes, and that on bills of exchange, which are within calculation. The first will produce about £14,000 a year; and the second between £20,000 and £25,000.

The Militia Bill, which came on for discussion late in the evening, developed quite a new excitement. The point was raised whether boys of sixteen should be trained, and at eighteen should be liable to actual servica. Against this, which was the proposal of the Government, the heavy fathers of the House raised a protest. They made the age for training 18, and then increased that for actual service. On this the Government rebelled, and would not go on with the Bill; there seemed, indeed, some disposition to "go out" upon the defeat. But this course will not be done; and they cannot drop a Bill which is so important to them. The point of the whole joke —taken as a joke—was that the supremely loyal and devoted adherents of Government in all such matters as touched other people, like taxation, now on a point of the " selfreliant " policy which came home to them, which demanded that their sons should shoulder a musket in their country's defence, point blank refused, and protested that the Government might "go out" or do what it chose, rather than that they should submit to it.

There is a proposal now before the Legislature, submitted on behalf of the Provincial Government of Canterbury, to deal with the lands on the West Coast by way of sale. Owing to the limited area capable of being turned to agricultural purposes at once, the land will necessarily be exceedingly valuable, and on its being open for sale, would be monopolised by the first applicant. Under the special circumstances it is proposed to treat these reserved areas as is done with townships, namely, to cut them up into sectiou& and sell them by auction. This is recommended as a fair method to the population, and remunerative to the Government. It was proposed, on

the other hand, to sell actual town sites at a fixed price, but this cannot be done without reference to England; Friday, Oct. 6. The Wonga Wonga, going South, to take up the service dropped by the accident to the Queen, having just now supplied that dropped by the Lady Bird, offers, an accidental opportunity for writing. There is but little to say of the business done in the Legislature. The session is palpably drawing to a close ; not that there are few subjects for deliberation, but that they are more closely attended to, and the family of " innocents" begins to be murdered, that is, the unimportant subjects are hardly afforded a hearing, and new measures are met with an expression of impatience.

In the papers of this morning you will find a long and comprehensive dispatch from the Secretary of State, written in reply to the Governor's letters of April and May, in which the controversy between the General and his Excellency was treated of, and an application made for some pecuniary consideration to be extended by the mother country towards the colony. The gist of the letter is that the quarrel between the two eminent men is deplored, the publication of private letters is made the subject of reproof, the actual policy of the colonial Government is conditionally approved, and the application for assistance is refused. There is a cold severity about the tone of the dispatch, which effectually extinguishes any hope which may have been entertained by some that the Imperial Government would give its guarantee to the remainder of our loans, or offer an annual parliamentary grant in aid. The dispatch was read at length in both Houses, and has created an uncomfortable impression among all parties.

The Upper House has got the New Provinces Bill fairly before it at last. The Bill was nursed through all its stages in the Representatives, and emerged without a scratch from the ordeal. It went up on Thursday.; and the first division taken upon it showed a majority of 10 to 8 in its favour. This small majority is likely to be disturbed at any time, as the Council is far from fully attended, and members may drop in at any time from other provinces, disposed to treat the question one way or other. The second reading in the Council is fixed for today, and before the mail closes I may be able to inform you of the result. Before the second reading a set of resolutions will be proposed in favour of the claims of outlying districts. This is done in order to assure the tenderhearted protectors of those districts that the repeal of the New Provinces Act is not intended to deprive them of all means of obtaining justice. A large majority of the Lower House asserted that they held sentiments favourable to outlying districts, though they voted in favour of the repeal. But this declaration was . received with incredulity by the other; side; unfairly as it turned out, for the resolutions would certainly pass both Houses with a strong majority.

Talking of outlying districts, some members professed a disinclination to use a word worn so threadbare in debate. But Mr. Mantell, whose attribute it is to be humorous, and whose privilege it is to jest even in face of the House, declared that he not only would use that word, but he would go even further. Considering the unfair treatment bestowed by the central districts upon those more remote, and the unjustifiable arguments used by them, if the latter were called "outlying," the former deserved the name of " out-and-out-lying" districts. A few laughed, but the joke was too neat and too new to catch the intelligence of members in general.

The Upper House has had the first transactions upon the Distillation Bill, and have indulged in an onslaught on the measure, only second in the magnitude of its results to the dressing they gave to the Printers' Gagging Act. The Distillation Bill was one of thirty pages, and has been left with three clauses only! The effect is that, instead of establishing a machinery by law for regulating distillation, power is given to the Executive to make regulations tentatively until the end of next session. But I hardly think so wise a power will be ratified by the Eepresentatives.

An attempt has been made to purify the House of Representatives against the next election by directing that no Government servant, contractor, pensioner, or other person holding a place of emolument should be capable of being elected to or of sitting or voting in the House. There was a general impression that no change of this kind, limiting the choice of the electors, should be made without a present grievance compelling it; and no such grievance was proved. There are very few place men or contractors in the House, and such as there are by no means give a combined or regular support to the Government of the day, but rather the contrary. The motion, however, which was proposed by Mr. Stafford, was permitted to be carried; but aB it be effected by Act, if at all, a more attentive consideration will no doubt be given to the Bill when it comes forward.

A change has been made in the " Law Practitioners Act," by the insertion of a clause making it competent for any Master of Arts or Bachelor of Civil Law, of any 1 University, alter passing the usual examination before the Supreme Court, to practise as a barrister or solicitor of the Court. This change may not be acceptable to the Legislative Council, to which body the Bill has gone up. But if it passes in the present shape, the doors of a lucrative profession will be thrown open to a large class of men who have had the highest form of general education, without the special training which is now demanded in a lawyer. Another step, and the legal profession will be open to all comers, as in the United States. The schedule of the Stamp Duties Bill, which enumerates the subjects ot

taxation and fixes the amount of the tax, has passed through committee of ways and means, with a few important alterations from the original. In the first place, the bankers, merchants and others who do money business for clients through cheques and orders, are not to pay the yearly licence of £80, as at first proposed. Then the duties on fire insurance are struck out, and policies are not to. tie subject to the one shilling per cent, tax which was proposed. The "progressive duty" on deeds—a term which lawyers will understand, and it applies only to them—is withdrawn ; and the stamp on transfer of runs is increased from £ to 1 per cent, on the sworn value. The material item of the expected revenue —that is to say, the £2 per cent, duty on the average issue of notes by banking companies, remains. It was the subject of a great deal of lively comment, and it gave rise to an incidental discussion on the finance of the colony in this way. The banks profess at present that the issue of notes is not a source of profit to any considerable extent. Tcet it is well known that much of the enterprising competition maintained between them in gold buying is occasioned by the desire to get out their notes, since there is little or no margin of profit upon the purchase of the gold itself. One would say, in this case, that bank paper is at a discount, for of course no speculator would do the same with coin. And this is not improbably true; not that paper currency is in excess, but that, owing, to the cumbrous transactions between the banks with theirown agencies and , one another, an enormous quantity of coin has to be kept in the country, far in excess of the requirements of the circulation. One need look no further than to the published returns of the banks in the colony, to understand how likely this opinion is to be true. If the currency be in excess, of course the paper will be the first to feel it, both on broad grounds, and also any bank which is compelled to keep in its coffers an excessive amount of coin is impelled to push out its notes to compensate for the loss of interest. At the present time the coin held by the banks, instead of being merely one third of the note circulation, as is required by law, is actually 25 per cent, in excess of it. In other words, the note circulation is less than one-fourth of what it might be for the coin held against it. These considerations point to two results. First, if the note issue is not remunerative now, it will be less so when a £2 per cent, duty is levied on it, and the banks may not be unwilling to abandon its advantages altogether. Secondly, if the coin held in the country be in excess, and habitually so, of the amount needed for circulation, it follows that a large portion of it might be prudently and safely replaced by Government paper, equally acceptable by all banks, which their own notes are not, and equally valuable as currency within the limits of the colony. The Government could save by substituting such paper for debentures which bear interest and sinking fund, and the country would save by the annual profit on the gold which is now buried and valueless for the purposes of commerce. These were the considerations raised incidentally by the stamp duty on notes, and they were partially ventilated in committee, , but of course without any practical result, for the Government would not commit themselves in such haste. But, looking to the necessities of the State, and to the difficulty of placing loans on the English market, it is not too bold a prophecy to assert that, before long, there will be a State paper currency, convertible, or inconvertible, throughout New Zealand.

A grand purgation of the order paper has taken place. A heap of Bills of minor importance, needing no debate, and having patiently waited on the list for a spare five minutes to be pushed along, have received that little attention, and have attained to a point somewhere near maturity. Among others, I may mention a Bill for correcting the doubts which have arisen about the appointment of constables; and another affirming that Provincial Legislatures have power to create municipal corporations. The "Bailors and Mortgagees Bill," in other words, a measure to make more secure the right of a man who lets sheep on terms, has gone through the Upper House, where it has received large modifications, and is now at its second reading among the Representatives.

The Militia Bill has passed through Committee, after much severe handling in its details; but the important corrections may be briefly summed up. Justices of the Peace are not to be exempt from service; and the Militia is not to be marched more than twenty miles from head quarters, except on emergency, when it is left to the Government to send them as far as it chooses. That is to say, the Southern Island Militia may, in case of emergency, be mobilised and turned into a Northern army. This is the result of a dozen different amendments, which were intended to remove the grievance, as it was supposed, of the Militia being compelled to march fifty miles.

The following are the resolutions, as submitted to the Legislative Council to-day, on the subject of justice to outlying districts, by Mr. Hall

1. That, in tlie opinion of this Council, it is desirable to take measures for ensuring to the outlying districts in the several provinces of the colony an equitable share of the land revenue arising therein. 2. That the revenue derived from the sales of land in any province is properly applicable to public works, surveys, and immigration, and that a fixed proportion of such revenue ought to be expended in furtherance of such objects on behalf of those districts within which it has accrued. 3. That, in pursuance of the above resolution, not less than 25 per cent, of the amount accruing from the sale of waste lands in any district, after deducting the cost of the survey of such laud, ought to be expended on roads, bridges, and other public works, for the permanent benefit of such district. 4. That it is expedient that provision should be made by legislative enactment, for giving effect to the foregoing resolution. The Council was still considering the resolutions when the mail closed.