THE Otago Daily Times. "Inveniam viam aut faciam." DUNEDIN, SATURDAY, JUNE 18.

Otago Daily Times, Issue 784, 18 June 1864, Page 4

THE Otago Daily Times. " Inveniam viam aut faciam." DUNEDIN, SATURDAY, JUNE 18.

Supposing the Government had thought

it right to ratify the Panama Contrast a? it stands, the doingso could not have beenheld to bind the Colony. The Contract contains stipulations at variance with the decisions of the Assembly, and no act of the Government could give any legal effect to it. It is true, the members might stake their official position on the hazard, they might give that amount of ratification which would be involved in the dsclaration to make the approval of the Contract a Government question. The Government has declined to adopt this course, simply because it does not approve of the Contract, but in a very able minute Mr.\ Fox, the Colonial Secretary, has pointed out the conditions to which he and' his colleagues object, and undertakes upon their being remedied to recommend to the Assembly the ratification of the contract. It is absurd folly to i characterise as repudiation, as has been done by Mr AVard and has sattelites, the refusal of the Government to overstep the limits of the powers it possesses. If the Contract were very much better than it is, the Government almost undertook to leave it to the Assembly to ratify. As we have already seen, at the close of last Session Mr Ward's disposition to exceed his powers was freely spoken of, and grave fears were expressed that he might undertake more than the Colony would be inclined to endorse. The Contract into which he was supposed to be about to enter, did not involve the exceeding of his powers to anything like the extent he has since yea-

tured on, but even as then represented the Government almost pledged itself to do nothing positive in the matter ■without consulting the House. In the course it has since adopted, it leaves the matter exactly »vhere Mr Ward left it. It refuses to pretend to ratify that which it has no power to affirm—and in a spirit of fairness and candor it indicates to the contractors the points which it will not recommend the House to assent to.

But the Assembly has the power to ratify the contract as it stands, and it is a matter for discussion whether it is bound to give effect to Mr Ward's arrangements without reference to their expediency. "We may at once grant that Mr Ward went home accredited to arrange on behalf of the Colony for a Panama service, but the authority, be operated under was that of an Act of the Local Legislature, and his powers did not extend beyond it. The Company with which he contracted consulted counsel's opinion as to his powers, and the reply was decidedly averse to his possessing- them. The case was stated with an evident desire to obtain a favorable reply. Besides the power Mr Ward possessed under the act for subsidising a Panama Service it was sought to make out that he had authority to act as Postmaster-General of New Zealand. But counsel's opinion was decidedly against Mr Ward having any right to enter into the contract as PostmasterGeneral, and it may be added, that had the case been candidly stated, he would have been found to have no right to act in that capacity at all. He had left his resignation behind him, and had absolutely ceased to be Postmaster-Gene-ral when the opinion was asked. In regard to Mr Ward's powers under the Act for subsidising a Panama line, counsel considered he required a special authority to act, from the Governor. Suppose that authority implied, he still had no power to go beyond the amount of subsidy authorised by the Act. " I apprehend 1' said counsel " that a " contract exceeding the authorised " amount would be extra vires, and there- " fore not enforceable." The only feature j in the Contract to which counsel's notice was directed, was the excess in price, and as we have said the opinion was unfavorable to his having the right to exceed the amount. But in the Contract as made the excess of subsidy is looked on as the least important point, indeed we can say that if in other respects the Contract was satisfactory, the Government would not hesitate to endorse the increase of amount.

But Mr Ward agreed to conditions in the Contract, which, as Postmaster, or in any other capacity else, he had not the shadow of right to affirm. Besides the Panama portion of the Contract, he entered into, an agreement for Local Coastal Services extending over a term of year 9 ; he undertook to extend the time of certain Contracts having nothing whatever to do with Panama, and he agreed to give the contractors a monopoly of all the Steam Postal Services required by New Zealand. These conditions were embodied in the Panama Contract, and the contractors must have been aware Mr Ward had no power to assent to them. They have no relation to Mr Ward's mission to England; he might just as well have promised the contractors a grant of land conquered from the natives. No doubt he was very weak and stupid to suppose, or to be persuaded into supposing that he had such powers, but the contractors were equally to blame for recognising them. At any rate they entered into the Contract perfectly aware that Mr Ward was exceeding his authority.and that they ran the chance of its being disallowed. Those who assert that New Zealand is bound equitably, legally, or as a matter of good faith, to recognise the contract, must be prepared to affirm as a general principle that a State is bound by the engagements of its agent, however enormously he exceeds his authority, and however cognizant those with whom he negotiates are that he is so doing. In other words, a weak or dishonest ambassador might ruin the country he represents, by entering into engagements ruinous to it to fulfil. Not in the money cost but in other respects, the contract into which Mr. Ward has entered would be disastrous to New Zealand, and there really does not appear to be a plausible argument in favor of its ratification beyond that of securing Mr. Ward from the censure to which his weakness entitles him.

The contractors moreover are deserving to no sympathy, for they have commenced the affair with something very like a breach of good faith. At the persuasion of the contractors, Mr Ward was induced to consent to a thirty days'—9 knots— service between New Zealand and Panama, coupled with the stipulation that for every day saved on the voyage, a bonus of £100 should be given. As a proof that practical effect was meant to be given to the stipulation, we find the following passage in a letter from the Secretary to the contractors, to Mr Ward -.—"There is every " reason to expect that the ships we in- " tend to furnish will traverse the distance " between New Zealand and Panama in " twenty-eight days instead of thirty." After this surely very little good faith is displayed in an offer that was sent out by the contractors to the Government, after the Contract was signed, to make the service 28 days instead of the 30, for a consideration of £24,000 per annum. According to the Contract, the same two two diTys, at a bonus of £100 per diem would have amounted on the 24 for voyages annually to £4800—and whiltt the Contract was still unsigned it was given out that the company expected to shorten the passage by this term. But as soon as the Contract was signed, £24,000 was asked for what should have been done for £4,800. The contractors know that the 30 days' voyage will make the service useless to New South Wales for postage purposes, so they venture to make this extravagant demand

by way of anticipating any contribution the neighboring colony might be inclined to make to the subsidy. We cannot help thinking that this incident augurs very little good faith on the part of the contractors, and gives them no right to expect extra consideration from New Zealand. In Canterbury and Wellington an agitation has been got up, apparently at Mr. Ward's instigation, for the recognition of the Contract as it present stands. A guarantee, or what purports to be one, has been sent home by these Provinces. But the contractors should understand that it means nothing beyond a pledge of political support on the part of those who subscribe to it. The Provinces are prevented by the Constitution Act from interfering with the Postal Service or Mail Contracts. The action, moreover, was taken before the Panama correspondence was published, and it is understood that many of those who before considered the Colony bound to recognise the Contract as it stands, see reason from the published documents to alter their opinion. Even Canterbury's special envoy to the General Government is reported to have felt his opinion much weakened. The contractors can, of course, do as they please, but we venture to remind them that instead of depending upon a doubtful political agitation, they would find it more to their interest to arrange with Mr. Reader Wood, who is now at home, a modification of the objectionable features in the Contract, when, no doubt, the Government will recommend its ratification to the Assembly at the next session of that body.

The Canterbury Press and Lyttelton Times speak of the probable resignation of the Ministry, and the calling together of the Assembly, as events likely to occur almost immediately. They announce this intelligence in almost positive terms. We have reason to think our contemporaries are somewhat misled. Rumors to the effect that his Excellency the Governor and the Ministry were not agreed as to the policy to be pursued in regard to the Military Settlements have for some time been rife. These rumors appear to have reached our jcontemporaries through some particular channel, in a form sufficiently coherent to induce them to arrive at a positive conclusion. We believe we are justified in saying that there is no greater probability of the resignation of the Ministry, and the convening of the Assembly now than there has been for some time past. That Sir George Grey and his Executive are not agreed upon several points of native policy there can be no doubt. But no issue is raised sufficiently distinct to call for the decision of the Assembly, and the probability is that the Governor and his Ministry will continue on much the same terms as hitherto— neither agreeing with the other, bnt nevertheless able to act in concert together. It is not to be denied that relations of this nature are liable to be brought at any time to an abrupt conclusion, but our contemporaries are in advance of the fact when they suppose such to have already

occurred,

We understand that the General Government have lent themselves, to some extent, to pulling Southland out of its difficulties. The arrangement consists, .we believe, in enabling the province to obtain £15,000 a month for three months to complete the railway works.