CORRESPONDENCE BETWEEN THE COLONIAL OFFICE AND THE TREASURY RELATIVE TO THE NEW ZEALAND GUARANTEED LOAN.

Otago Daily Times, Issue 851, 13 September 1864, Page 5

CORRESPONDENCE BETWEEN THE COLONIAL OFFICE AND THE TREASURY RELATIVE TO THE NEW ZEALAND GUARANTEED LOAN.

(FOJt Otfß WELLINGTON CORRESPONDENT.)

Sir Frederick Rodgers," Bart., To G. A

Hamilton, Esq.

Downing street, 2nd June, 1864. ■: Sir—With reference to your letter of the l(hh December last, signifying the willingness of the Lords Commissioners of the Treasury to submit a Bill to Parliament for guaranteeing a loan of L 500.000 to the Colony of New Zealand, to enable them to meet some of the heavy charges which' had fallen upon the Colonial resources from the war with the natives. I am now directed by Mr Secretary Cardwell to request that !you will la^ before thiir Lordships this present communication, with its enclosures, as setting fori h the ground on which he is prepared to recommend, that the amount thus proposed to be guaranteed should be extended to the sum of LU-00,0,0. The Lords Commissioners are of course aware that since July last, when the loan of 1500 000 was in contemplation, hostilities with the natives have been renewed, and tliat Sir George Grey hai fouud himself compelled tp adopt the most vigorous and energetic • measures for the prosecution of the war, and that the cansequences have been audi as to entail a heavy expenditure on the Imperial and Colonial revenues. Although itis hoped that the measures adapted by Sir George Grey, and carried on with the able assistance of Lieutenant-.General Sir D. Cameron, wilt bring about an early termination ofthe war, and place upon a better footing our future relations with the natives, the charges upon the colonial revenues up to the present time, and those which are still unavoidable, have been, and will be, so large as to allow of their payment by no other means than by having recourse to a loan. .„,*.» I am now to request that you will 'ay before the Lords Commissioners, for their information, and with a view to enabling them to-decide upon the proposed loan of L 1,000,000, the following papers: — 1. Copy of a Despatch from Sir George Grey, submitting the following Acts, passed by the Legislature of New Zealaud-. No. 7, fbr the suppression of the rebellion. No. 8, to establish settlements for the colonization of the Northern Island. No. 11, fov raising a loan of L 3,000,000. No, 12, to appropriate certain sums raised under the Loan Act, No. 11. 2. Copy of a Despatch from Mr Cardwell, dated the 26th April, making known to Sir George Grey the opinion he had formed on these important measures. 3. Copy of a Despatch from Sir George Grey, introducing Mr Reader Wood, the treasurer of New Zealand, who was proceeding to England on matters connected with the loan. 4. Copy of a letter from Mr Reader Wood, dated the 24th May, showing that the financial capabilities of the colony are sufficient to meet its -current expenditure, and provide for the in terest and sinking fund of the loan. 5. Copy of a letter addressed to Mr Reader Wood on the 26th May by Mr Cardvvell's desire, setting forth the conditions on which he is prepared to recommend that a loan of L 1,000,000 should be guaranteed by this country. 6. Copy of a despatch from Mr Cardwell to Si George iivej, dated 26th May, forwarding a copy of the letter addressed to Mr Reader Wood on that day. / , 7. Copy of Mr Wood's reply to letter of 26th May. Mr Cardwell feels tbat the papers transmitted afford such complete information, that it is not necessary for him to add any observations of his own, and that he need do no more than direct the attention of the Lords Commissioners more immediately to his despatch to Sir George Grey, and to the letter to Mr Wood. The proposal now submitted may, however, be shortly stated as follows:— That the Imperial guarantee should be extended to a loan of L 1,000,000. 2. That the amount due to the Imperial Treasury, calculated, so far as appears at present, at somewhat less than L 5 0,000, should be repaid out of the loan. And as regards the future charge onthe Home Treasury for military expenditure, there shall be a prospective increase of colonial contribution, as stated in the letter to Wood, naraelv, as follows:— ~ fi\ •*, 1. That one regiment shall be supplied to New Zealand without cost. • 2. That in consideration of this regiment the Colonial Government shall continue to apply 150,000 a year to native purposes. _ * 3 Thai on all troops beyond this regiment New Zealand shall pay to the Imperial Treasury, the same contribution as that which it is propose^ that the Australian Colonies shall pay, viz., L4O per annum a head on Infantry, and L 55 on Artillery. " " ' ~ „ . ■ :' ' 4. That New Zealand shall not pay upon more than 4000 men in the year 1865. I have, &c, 3 (Signed) F. Rogers. G. A. Hamilton, Esq., Sec, Sec, &c. (enclosure 1.) Westminster Palace Hotel, London, 24th May, 1864. Sir—ln compliance with your request that I should state to you in writing the nature of the security the Government of New Zealand has to offer forthe Loan which it is proposed to contract, I beg to lay before you the following statement ofthe actual Ordinary Revenue and Expenditure of the Colony, for the financial year which ended 30th June, 1863. The ordinary revenue is the security offered forthe Loan :—

From this it will be seen that, after the expenses of the General Government have been defrayed, there remains a surplus of upwards of L 200.000. . t i 7 I may state for your information that the revenue for the current year is received at a rate considerably beyond the amount at which it was estimated, and there can be no question that,

maintaining the present system of appropriation, and continuing to pay to the Provincial CJovernraents the proportion of the Customs revenue which has hitherto been annually set apart for their use, there will be, for future financial years, an smple rurplu? to cover the ioterest and sinking fund of the loan. The rate at which the New Zealand revenue has increased during the last year is as follows: — Prior to the year 1860 61, the ordinary increase of the revenue varied from 10 to 16 per cent ; the year 1861 62 (the year of the gold discoveries) showed an increase of 65 per cent, over the previous year; 1862-63, 44 per cent.; and 1863-64 is showing au increase at the rate of 30 per cent.

The general progress and advancement of New Zealand may be.shown by the following statistics :—

Oa December 31st, 1860, the population of the colony was 83..919; oh December 31st, 1862, it whs 133,114, being an increase of nearly 60 ncr cent.

In the year 1860, 140,276 tons, of shipping entered inwards ; in the year 1862, 301,000 tons entered inwards, being an increase of 114 per cent.

In" 1860 the value ot the imports was Ll, 548,333, in 1862 the value wa<* L 4 626,(82.

In 1860 the value of the exports amounted to 1588,000, and in. 1862.t0 L2 J 422,734.,-,. The value of the gold exported from the colony to December 31st 1862, was 14,377,708. The value of the wool exported iv 1860 was 1444,392, in 1862 it was L 674226 In 1860 the total ararant of deposits in the banks in the colony was L 660.000, and in 1863, on the 30th September, the deposits amounted to L 2.171.165. I think these stateme"ts exhibit elements of prosperity, which afford a perfect security for the loan which it is proposed to raise- ; ■. . I have, &s., (Signed) Reader Wood. The Right Hon. The Secretary of State for the Colonies, &c. kc. kc

(The only other printed enclosures are 2 and 3, which consist of Sir F. Rogers' letter to Mr Yt bod, of 26th May, and Mr Wood's reply, of 28th May, already,printed as enclosures to Mr Secretary Card well's despatch to Governor Grey.)

KiCJSIJM.3. Sr.:: .:: .:: :: £1|| \\ j udic ; a l ... 19.177 0 0 Registration of Deeds 6,769 0 0 Miscellaneous 8,006 0 0 £549,983 0 0 EXPENDITURE. Civil Lisb £25,000 0 0 Permanent Charges .. .♦ 79,000 0 0 Conduct of Government generally charged 91 ; 912 0 0 Conduct of Government provindally charged 94,755 0 0 Surplus paid to Provinces, and otherwise appropriated ... 259,29b , U » £5i9,963 0 0 I beg, also, to lay before you the Estimated Receipts and ExDenditure of the current finanjial year, ending 30th June, 1864 :— RECEIPTS. Sustains £603,600 0 0 Postal 40,000 0 0 rudicial 25,000 0 0 Registration Fees 12 000 0 0 Miscellaneous 11,000 0 0 .. £691,600 0 0 EXPENDITURE. 3ivilList £27.500 0 0 Permanent Charges 130,490 0 0 Conduct of Government generally charged .. 167,400 0 0 Conduct of Government Provincially charged .. .. 151,400 0 0 Surplus, for distribution to Pro* vinces . ... 214,810 0 0 £691.600 0 0