OTAGO.

Nelson Examiner and New Zealand Chronicle, Volume XXII, Issue 88, 12 September 1863, Page 3

OTAGO.

We take the following from the letter of the Southern Cross's owt^ correspondent, dated Dunedin, September 1:—1 :—:—: — The chief items of local interest are in connection with the proceedings of our Provincial Council. First it has been ascertained that the financial administration of the Roads Department has been most carelesslx and irregularly conducted. Recent revelations show that as large a sum as £40,000 has been unaccounted for, and that the provincial ledger has not been posted up since April hat. In the next place the publithave been scandalised by the refusal of the manager of the Union Bank to honour the drafts of the Government, and the consequent removal of the' Government banking account to the Bank of New Zealand. The facts appear to be that, when the present Superintendent took office, the Government overdraft at the Union Bank amounted to £40,700, and that, between that date and the 25th August, it had risen to £140,000, the whole of which sum was unauthorized expenditure, and a portion of it contracted on the sole responsibility of the Superintendent, who was left for some time without an Executive. The bank manager became anxious that the large sum should be covered by the Government in some way or other, and he agreed to receive debentures for the amount. Owing, however, to the fact that the Superintendent is compelled by law to sign every coupon, and that his time was interfered with by the meeting | of Council, he failed to fulfil the arrangement made with the bank by the time specified. A series ol interviews took place which do not appear to have been of a very pleasant character, and the affair culminated in the bank manager declining to honour any further drafts, except on the condition that the provincial share of the Customs' revenue was secured to the bank. This the Superintendent at once refused to agree to. The result was that application was made to the Bank of New Zealand, and that bank agreed to make the necessary advances to the Government. The matter rests at present as follows : — The Government owe the Union Bank some £145,000, payment of which is demanded by the bank. The Government think to be able to compel the bank to take the debentures, according to the arrangements at first proposed ; but I am credibly informed that the bank will insist on cash. The question is, can the Bank of New Zealand readily fork out £140,000 for the Otago Government? If not, I suppose the matter will be carried into the Supreme Court. Altogether it appears to be a pretty kettle of fish, and neither side comes out of the affair very creditably. The Superintendent has not treated the bank manager very fairly, and the manager has acted with great want of tact.