The Otago Witness.

Otago Witness, Issue 787, 28 December 1866, Page 11

The Otago Witness.

DUNEDIN, FRIDAY, DECEMBER 28. Before another copy of the Weekly Witness issues from the press, the year 1866 will have passed away. It has been an eventful one for the Colony and the world. At its commencement, there appeared no likelihood that the Native War would soon be brought to a close. There were undoubted evidences that the disaffected tribes were becoming exhausted. There was no longer unity of purpose amongst 1 them, They were seeking different objects. The King movement had lost its ■vitality, and the war had become a development of superstition and fanaticism ; but there was every indication of a protracted struggle. The invariable success of the Imperial and Colonial troops, in every encounter with the Natives, has apparently at length convinced them of the hopelessness of continuing the strife; and, to all appearance, the year 1867 will open with every prospect of peaceful relations between the two races. Could the responsibility and expense of suppressing Native disturbances be made to fall upon the Provinces in which they occur, there would "be. no reason to doubt the continuance of peace.

The opening of the Panama Postal Service is an event of great importance to New Zealand. The benefits cannot be at

once realised. It is not merely that by its means a new channel of communication has been opened with the Old World ; but, by the opening of the Panama Route, new commercial relations are opened up. It was impossible, for any long series of years, that the millions who inhabit South America and California should continue to be shut out from intercourse with New Zealand. Sooner or later important commercial relations must have sprung up. These will be hastened by the establishment of the Panama Service.

The Australasian Colonies are rapidly becoming important communities, and in addition to their inter- colonial trade, new marts are being opened in the Dutch settlements inßatavia. To these epening markets very shortly — for a few years is but a short period in a nation's lifetime — must be added the vast island populations of the Indian Archipelago, New Caledonia, the Society Isles, and other interesting groups. The social progress of the inhabitants of many of them has been slow ; others have not even begun to move, but remain in their primitive barbarism ; but the influence of commerce cannot fail to reach them, and from the vast mineral treasures of New Zealand, and her pastoral and agricultural capabilities, her products must one day find ready markets amongst them.

The completion of telegraphic communication between the North and South Islands is an important event in their history. It i 9 evidence of the rapid advancement of the various settlements that this mode of communication has been found necessary, and its usefulness will yet further be extended by the continuation of the line to Napier and Auckland. The lapse of a few minutes only will then be required to flash the intelligence of the doings at Auckland to Invercargill, or the reverse.

Politically, the year 1866 will leave much for 1867 to do and to undo. The session of the General Assembly of the past year has been productive of very unsatisfactory results. There was plenty of legislation, but, unfortunately, it was onesided. Southern interests were almost altogether ignored ; and the material welfare of the North was mainly considered. New taxes were imposed, and a new principle of taxation initiated. There was a glaring attempt to crush Provincialism, and to concentrate all legislative and administrative power in the hands of the General Government. Unacconntably enough, no effectual resistance was offered to these encroachments. Although every Province is interested in opposing such an arrangement, no common ground ot opposition was taken. The Government, determined and united, proved too adroit for their divided opponents ; and should ,no better arrangement be fallen into

during the" next session, tfiey may yet further weaken Provincial institutions. While the injuries' were fresh, a spirit of determined oppositfon in Otago was roused, and a league was formed, from the operation of which beneficial results were anticipated. As yet, no effective action has been taken ; and unless the coming elections for the Provincial Council reawaken the slumbering spirit, the next session of the Assembly will find the Provinces equally unprepared for effectual opposition with the last.

Otago has unquestionably advanced in prosperity during the past year. Trade appears to have settled down upon a sound foundation. The crisis that proved so disastrous in its effects in England and some other countries was but slightly felt ; and the inhabitants of the Province may fairly and reasonably look forward to the prospects of the coming year with a well founded hope of success and advancement.