AUCKLAND, FRIDAY, JUNE 28, 1867.

New Zealand Herald, Volume IV, Issue 1130, 28 June 1867, Page 3

AUCKLAND, FRIDAY, JUNE 28, 1867.

The consolidation of the authorised loans, provincial and general, of the colony of NewZealand into one loan, or stock, has been again and again rccommendcd by this journal, and we are glad to learn that in the ensiling session ol tlie General Assembly the ministry intend bringing forward a bill for that purpose. Information of this intention comes direct from the liead of the Government, as will be seen by reference to the following letter addressed by Mr. Stafford to the Superi'itendent of Canterbury : Colonial Secretary's offico, Wellington, May 3, 1867. Sir,—Referring to the information roeeived by tlio last mail from England of tho recent failure of the attempt to place the Canterbury Provincial Loan on tho London market, I have to inform vour Honor that the Government is most anxious that all loans authorised to bo raised for public pumoees in New Bealand should bo negotiated at such.'prices aa will prevent any sacrifice of the public interests, and with a view of promoting that objeot, intends to submit to the General Assembly next session a measure for converting the provincial loans into colonial stock. As Mr. Crosbio Ward is about to proceod to England as agont for the province of Canterbury, and it is understood tiiat one of tho objects of his mission ig to endeavour to _ negotiate the Canterbury loan, I have thought it right to inform your Honor of this intention of tho Government, and if your Honor wishes it, tho Government will be happy to confer with Mr. Ward on this subject while ho is in Wellington on his way to London. I have tho honor to be, &e., E. W. Stappobd. His Honor the Superintendent of Canterbury. To this Mr. Moorhouse replies with a tender of thanks lor the timely information of the intention ol the Government, and with a desire that Mr. Crosbie "Ward, then about to sail for England, should receive more explicit instructions from tho Government. The following letter was then addressed by Mr. Stall'ord to Mr. Ward. Colonial Secretary's Office, Wellington, May 8, 18G7. Sir,—Willi reference to my letter of the 3rd inßtant, in which, having special reforenco to the reccnt failure of the attompt to place certain debentures of the Canterbury province on tho London market, and to your intended visit to Great Britain in tho official capacity of agont for that province, I have thought it desirable to inform tho Superintendent of Canterbury generally of the intention of tho Government to submit to the Genoral Assembly, at its next session, a measure for the consolidation of provincial loans. I now deiiire to Btate, more especially for your information and guidance, so far as it is at present practicable to do so, that tlie Cabinet has definitely determined to introduce qb a part of its financial policy a bill to authorise the iBSUO of colonial bonds to an amount which will cover the entire amount of provincial loans hithorto authorised, including those already raised and those not raised (wholly or in part) respectively. In all probability tho interest will bo fixed at six per cent, and tho colonial debentures so to bo raised will bo sccurcd on tho entire revenues of New Zealand, territorial and ordinary. As to the intor-provincial arrangements and guarantees for repayment which it may be nocessary to introduce into the measure, I am unable at prosent to furnish you with particulars. You aro yourself cognisant of tho difficulties and complications which will have to be dealt with, but the Government will not bo deterred irom pushing forward their meaßuro by any consideration of these difficulties. It is not, however, necessary for the success of your mission that these intor-provincial arrangements bo made known, even if they were finally determined on. It, is sufficient that you should be explicitly ossnred that tho proposal will embrace the guarantee by the Colony of New Zealand of all provincial loans subjcct only to domestic arrangements that I apprehend being tho solo question on which the capitalists will ask for information. The Government, regard this moasure as one of such great importance is to be inclined to make it a ministerial question; but I am unablo at present to speak definitely on this point. I have, &c. E. W. STArfoiro. Crosbie Ward, Esq., It is indeed time that tho Government moved in this matter. Every year that the financial difficulties of tlie several provinces are allowed to muddle on, tlie more difficult • will they become of arrangement. As an exemplification of the folly of liaying so long

delayed tlio consolidation of our several loans we may instance the late and even present state of tlie English money market. .Had this measure, which the Government is now anxious to introduce, and which was gravely discussed outside the House a year ago, been introduced and carried in tho last session of the Assembly, tho stock representing the colonial national debt might have been negotiated, in the London market at a percentage which would have materially lightened the burden not. only of the colony itself, but of the several indebted provinces. What are the individual debts of individual provinces, for which the whole colony is not legally liable—however much for its own credit's sake it may choose to make itself so —would be called in and reissued as colonial stock, as, in fact, a New Zealand national debt. Capitalists at home would look more favourably on such stock than they do on tho debentures of this or that Province, which may be brought to the verge of ruin by local mismanagement, or by any extraordinary circumstance. They would not then have all their eggs in one basket, but the risk would be spread over the whole nine provinces. Indeed, the whole loan, some six millions in extent, would be worth the attention of leading financiers at home, and would be negotiated on better terms than many at least of the Provincial loansliave been. The sinking fund, too, a condition of tho existing loans, might in many cases be dispensed with, and this would afford considerable relief to the borrowers. Suppose for instance a two per cent, sinldng fund on a half million loan remitted, the indebted province would save a yearly payment of ten thousand pounds. Ask tho present Superintendent of Auckland if such a saving would bo appreciated now! There is a noticeable feature in Mr. Stafford's second letter when he says that the colonial debentures so to be raised will bo secured on tho entire revenue of Now Zealand, territorial as well as ordinary. This, indeed, is but fair and just to tho Northern Provinces. It means, we take it, that in the allotment of the apportionment of the then formed national debt, to be paid by the several provinces, a proportion of the existing colonial loans shall be made chargeable to the land fund of the Middlo Island provinces. The South may object to this, will fall back no doubt on the arrangement of 185G—but there is but one other way by which the North will bo satisfied, and that is, the simple but just one suggested by Mr. Eowe, the other day, in the Provincial Council. Let tho South take the Colonial debt and tho enjoyment of the landed estate of the colony, and leave the Northern provinces, in lieu of their share thereof, the sole management and cost of managing the people of the native race within their boundaries and the annual vote of £50,000 for native purposes. The adoption of such a course would at once set quiet, aud for ever, the cry for Separation. Auckland would be satisfied with so much of self-government afforded to her, and the Separation party in the South would achieve the end they seek in Separation—the getting rid of the Maori difficulty and its ever-constant cost. AV r c do not hesitate to say that were the management of tho Maori race confided to the colo ■ nists of the provinces in which the Maoris are located, peaco would bo established on a sound basis, and the Maori would have a fair chance of becoming part and parcel of . tho future nation of New Zealand. At pre- ; sent it seems to be the policy of the Southern : Government to retard the advancement of , the North by keeping it in a state of i disquietude. So long as the Maoris < ire governed from the South there ] will bo a Maori difficulty. Indeed wo , need scarcely tell our southern fellow •' colonists this, for the more candid of them already acknowledge the truth of the state- , incnt. If they did not, rcccnt events at lauranga would clcarly prove it to them, ( ivherc a General Government officer did all he could to prevent tho Maoris from meet- < ing the Superintendent on his late visit, i md tumble to prevent this, after the visit, i [lid all he could to counteract its good 1 3flect upon the Native mind. 1 Whether or no ao wholesome a course as , that suggested in our Provincial Council 1 ivould be acceptable to the Assembly or not, i the consolidation of the loans may go on 1 ivithout affording tho least interference to its solution. The consolidation of the debts ' af the colony is an act quite independent of 1 the after apportionment of the burden.