LATEST POLLTLGAL NEWS.

New Zealand Herald, Volume XVI, Issue 5498, 1 July 1879, Page 5

LATEST POLLTLGAL NEWS.

' THE RESIGNATION OF MB. BALLANGE. SCENE BETWEEN THE PREMIER AND TREASURER. [from our owx correspondent.] [by telegraph.]

Wellington, Monday. Mr. Ballance to-day tendered his resignaof hie seat in the Cabinet as I telegraphed on F ziday was probable, This has since Friday been regarded as inevitable, but air. Ballance- did not wieh to take such a step without reflection or on impulse. ;

It has been notorious for some time that the relations between himself and the Premier had been far from cordial. Ever since Sir George Grey returned from Auckland the breach has been widening. Since that scarcely any Cabinet meetings have been held. The Premier has been sending for his colleagues individually, telling them what he has decided and thinks should be done, and insisting in carrying out his views, but giving them no opportunity of collectively discussing the subjects. Mr. Ballance and others hav« warmly remonstrated, but without effect. Since Mr. Stout's resignation, and the qnestion of supplying his place has arisen, things have gone worse. On Friday afternoon, while engaged with Mr. Under-Secretary Gavin of the Treasury, Mr. Ballance received a meaaage that the Premier wished to see him. Asking Mr. Gavin to wait, Mr. Ballance went to the Premier's room. After about a quarter of an hour, Sir George Grey rushed out of his room in a most excited state, crossed the passage, r.nd entered Mr. E. Fox's room opposite, slamming both dooro after him. A few seconds after Mr. Ballance emerged from the room, trembling with suppressed excitement, and apparently restrained by Mr. Sheehan, whose hand was on his shoulder. Mr. Sheehan went back, and Mr. Ballance went to his own room.

It has ainoe transpired that what took place in the room wae this : —Sir George Grey had before him the Treasury departmental draft estimates, prepared by Mr. Ballance. Heretofore, since Sir Julius Vogel's time, the salary of Mr E. Fox has been charged to the Tro&aury, as confidential secretary to the Treasurer. As a matter of fact, Mr. Fox has long ceased to have any connection with either Treasurer or Treasury, being confidential secretary to the Cabinet and Premier. In preparing his departmental estimates, Mr. Ballance struck Mr Fox out of the Treasury, and put him down at the same salary as secretary to the Cabinet. When Mr. Ballance came into the Premier's room, Mr. Sheehan being present, Sir George, pointing to the transfer items, said to Mr. Ballance, " If this kind of thing is to be done, I shall take the Treasury into my own hands." Mr. Ballnnce attempted to explain his reasons, but Sir George refused to listen, and told Mr. Ballance he was not to talk to him, but to do as he was told. Mr. Ballance replied, that he understood it to be the duty of every Minister to prepare his own departmental estimates for submission to the Cabinet, and it was for the Cabinet to revise them, adding, that if the Cabinet choso to charge Mr. Fox's salary to a department with which Mr. Fox had no connection, he of course could not object. Sir George Grey declared that this was an insult to him, the Premier, that he would not be talked to, and after -some further strongly condemnatory language addressed to Mr. Ballance, the Premier said, "Leave the room, sir." Mr. Ballance, although excited, was calm, and said he certainly would not leave the room. He had been sent for, and as long as lie was a member of the Ministry, he would certainly claim the right of free discussion with all his colleagues, from the Premier downwards. Mr. Sheehan interfered, and tried to throw oil on the troubled waters, but without effect. Sir George Grey declared that if Mr. Ballance did not leave the room, he would send for a messenger to have him forcibly ejected. Mr. Ballance declined to move if all the messengers in the buildings were summoned, whereupon Sir George Grey rose and said he would not stay in that or

any room with Mr. Ballance, and he rushed out as already detailed. Since Friday the other Ministers have been trying to make up the matter, and it is understood that the Premier was willing to make a sort of apology to Mr. BaUance, but the latter, feeling it was impossible to remain in the Ministry after what had occurred, put all his papers in order this .morning, and then sent in his resignation., FURTHER PROBABLE RESIGNATIONS. It is thought very probable that other Ministero will follow Mr. Ballance's example. Mr. Macandrew is believed to have ridden out to the Hutt this evening, to consult with Sir William Fitzherbert as to the course he should take ; and if he determines to resign, as is most probable, Mr. Sheehan and Mr. Fisher will also follow. It is stated that Sir-George Grey has declared that he cares not if they all resign. He can find plenty of men to form a Ministry which, will carry out his principles. There is considerable excitement in the city on the subject.EXPRESSIONS OF OPINION. ' The Post, writing of the matter to-night, eays " It has been no secret for a lone; time past that serious dissensions existed in the Cabinet, and that a complete rupture am ong Ministers more than once has been only narrowly averted. Matters at length appear to have coma to a crisis, resulting, we understand, in the resignation of the Colonial Treasurer, Mr. ' Ballance. It has been notorious that the dissensions to which we have alluded were not confined to mere difference of opinion on public questions, but often took the form of sharp personal altercations between the Premier (Sir- George Grey) and one or other of his colleagues, on trifling points of details. Notwithstanding all the earnest protests on the part of the Ministerial organs, that the Government was quite a model 'happy family, , and the etrenuous efforts made to conceal from the public gaze all signs of the Ministerial disagreements, sufficient intelligence has leakod out from time to, time to liliew that the relations of Ministers with one another -were of so critical a nature that a 'split in the Cabinet' might be looked for any day. It has been understood that the system of Government under the present Ministry was simply one of personal autocracy, the Premier apparently regarding his colleagues as merely the instruments to register his absolute decrees. ' Whether Sir George or the other Ministers were in the right on the precise questions as to which they differed is not now to the point, the real issue being whether the colony should be governed constitutionally by the Minietry, or unconstitutionally ■ by the single will of the Prime Minister. It is said that no Cabinet meetings properly so-called havo been held for many months; that Ministers have met nominally in Cabinet, not to discuss what should be done in reference to various public questions, bat to receive from the lipe of Sir. G. Grey each information as he might vouchsafe to furnish, of what he had either done or decided to do. Such a tyetem obviouely conained the seeds of its own dissolution, and Utterly matters have gone from bad to

worse in Ministerial relations," the premier, it is alleged, treating eertainof his colleagues with discourtesy bo marked as to make it almost impossible for them, with any regard for their own self-respect to maintain personal communication with him. Theimpreßeion thus has gained ground daily that Sir G. Grey's object was to get rid of his present associates in the Government with the view of surrounding himself with colleagues of a disposition more congenial to his natural love of supreme power. This being a matter of public notoriety and comment, the recent symptoms of commencing disintegration created no surprise. The almost universal wonder being that a Cabinet composed of such dissonant elements had held together so long. Accordingly Mr. Stout's resignation of the AttorneyGeneralship, which inaugurated the breakup of the Ministry, was received with regret but not astonishment. It has been well known that the Premier and his colleagues entertained widely different views as to filling up the vacancy thus created, as well as on the native question, and several other important subjects. Not on any of these, however, has the difficulty arisen which, to-day appears to have brought matters to a climax. It is asserted that, since Mr. Stout's resignation, Sir G-. Grey has taken several occasion.3 to offer Mr. Ballance personal, slights of a marked nature in regard to' numerous points of petty detail coming within the upecial department of the Colonial Treasurer. This line of conduct culminated on Friday afternoon last in so direct a personal affront that no man with any •jelfrespect could possibly submit to it tamely, or willingly expose himself to a repetition. The consequence is, that as we have already mentioned, Mr. Ballance has come to the determination to resign his seat in the Cabinet, and his resignation, we believe, was placed in the Premier's hands this afternoon. It is rumoured that some other members of the Government, feeling at present while they are compelled to share the responsibility of the action of the Government, they are wholly powerless to effect it, contemplate follov'ing Mr. Ballance's example. 2.30 p.m.

Since the above was in type, the Colonial Treasurer's resignation has been formally placed in the hands of the Premier. The Chronicle narrates the facts of the dispute substantially as 1 have given them, and says :—" The Colonial Treasurer reviewed the whole question, and, placed as he was, he says that he could not, as an honourable gentleman, meet Sir George Grey again in the Cabinet. Therefore hu could not prepare his financial statement, for if he laid it before the House, it must be as his own private statement, arid not as that of the Government. Not only on peraonal grounds, but in the interests of the country, he felt that he must resign. He took ample time to consider the matter fully, and having arrived at the only possible conclusion, he sent in his resignation as Colonial Treasurer, Minister of Education, and member of tan Executive Council this morning. Though Mr. Balance has left the Ministry, he will still remain a staunch champion of the Liberal party. Half-an-hour before he was sent for by Sir George Grey he received a telegram from Colonel Whitmore, who was in Auckland, stating that one of the Auckland papers had just published an extra containing sensational news about a disruption of the Cabinet. Mr. Ballauce telegraphed back to Colonel Whitmore telling him to give an unqualified denial, as there had been no disagreement in the Cabinet. This shews that Sir George Grey's insulting conduct to Mr. Ballance was pre-arranged, and that he had given intimation of what was going to happen. Sir George Grey has, moreover, been in the habit of receiving anonymous letters from all parts of the country complaining of the action of his colleagues. This is wholly unconstitutional and unproeendented. We understand the Minister for Public Works and the Native Minister have both threatened, to resign."

THE FEELING IN , DUNEDIN. Dunediit, Monday. Great excitement prevailed here this morning on receipt of the intelligence that the Hon. J. Ballance had resigned his portfolio. A general feeling o£ regret was universally expressed at the step taken by the hon. gentleman at this critical juncture. Dcnedin, Monday. The Daily Times, in an article on the changes in the Cabinet necessitated by Mr. Stout's withdrawal, and the rumour that Sir George Grey wishes to appoint Mr. Bees or Mr. Moss, says : "We believe the appointment of Mr. Kees to a seat in the Cabinet would be fatal to the Ministry, as he has shewn himself to be wanting both in common sense and discretion of speech. Mr. F. J. Mosb is an able| man, but he represents an Auckland constituency, and there ie a feeling on the part of Southern members that Auckland influence is already strong enough in the Ministry. Wβ in Otago have a right to urge that our interest will not be sufficiently represented by the presence of Mr. Macandrew alone in the Cabinet, and that Mr. Stout ought to be replaced by an Otago man, though we admit that Canterbury also is but inadequately represented by Mr. Fisher. If Mr. Rees or Mr. Moss were appointed, the North Island would be unduly strong, Mr. Macandrew and Mr.Fieher being the only Southern representatives, as against five Northern men, including the Premier, who is a host in himself. It would be Grey, Sheehan, Ballance, Whitmore, and Moss, or Kees, agaicst Macandrew and Fisher, and the latter almost a nonentity. As we hold them, it is absolutely necessary that the new member of the Ministry should be a South Island man. The choice will be between three or four individuals, of whom Mr. Montgomery ia undoubtedly one. If Mr. Ollivier should be induced to join, he would be, we believe, an excellent representative of Otago, and not unpleasant to Canterbury; but we have no reason to belive he would accept a seat in the present Government, and wo do not know of another Otago man of weight who could or would accept the position. Mr. Montgomery has so freely criticised the Government policy that acceptance by him of a seat in the Minietry now wonld indicate a compromise, and we have said on several occasions that if the Ministry were defeated during the coming session they would claim, and would, in all probability, obtain, a dissolution ; but, it would be of no use for them, to go to the country if they are divided in opinion on an important point, and, at the same time, were unable to obtain a colleague who will command confidence in Otago and Canterbury, or, at least, in one orotherof these important provincial districts ; for local jealousies have not yet died out, though they may have changed form since abolition. The aspect of native affaire is likely once more to rise in the impatient cry for separation which we hear from time to time whenever Southern and Northern interests seemed sharply divided. For our part, we do not believe that separation is either practicable or desirable ; but neither, on the other hand, are we prepared to advocate in Otago the retention of the control of affairs by a Ministry, five-sovenths of whose members, in case of the present vacancy being filled by Mr. Moss or Mr. Rees, would be Northern men. We havo given the Government hitherto a consistent, though not uncritical support j but we cannot forget our duty to Otago, and will certainly not willingly be a party to such an arrangement."

A meeting of the executive portion of the Governor's Reception Oommitteti ie called by advertisement to be held to-day, at 2 o'olock, in the Mayor's room.