DISCOUNT ON THE THREE MILLION LOAN.

Timaru Herald, Volume IV, Issue 96, 16 March 1866, Page 3

DISCOUNT ON THE THREE MILLION LOAN.

The following 1 letter has been published m the Press.

My Dear Fit' Gerald, —l observe that the question is raised as to the power of the Governor, under the Loan Act, 1863, to raise the full sum of three millions sterling by sale of debentures to an unlimited amount, so increasing the debt on the colony to an undefined extent The power of the Governor to effect a transaction of this kind wa3 first considered by me m reference to Mr. Reader Wood's sale of debentures below par. The conclusion I came to, after a careful reading of the Act was, that such sale of debentures below par was not warranted by the terms of the Act. The question wasagain considered by me, m concert with Mr^Titzherbert, the late Colonial Treasnrer, during Mr. Weld's administration— when I was Attorne3'-Geneml. The opinion that I then formed was, that the Governor was authorised to borrow three millions sterling upon debentures bearing a certain rate of iuterest, but that he could not issue a greater amount of debentures than for the money borrowed. If a person "authorises another to raise money for him upon security, it is, m my opinion, of the essence of the transaction that the security shall not exceed the amount authorised to be borrowed, unless there be specific authority for the purpose. The sum to be borrowed is the ordinary limit ot indebtedness. The construction now sought to be put upon the Loan Act, 18G3, is, that the Governor is authorised to issue an unlimited number of debentures, and to sell them without restriction of price for whatever they will fetch. That construction is not, m my opinion, tenable, and I am sure the Supreme Court would not affirm it. All the finanical arrangements of the late Government, proceeded on the assumption that they were precluded from creating a debt on the colony beyond three millions sterling. In my opinion, any attempt on the part of the Government to exceed that limit would be a, fraud on the Legislature. It may be that such an abuse of the borrowing power would be held to vitiate the securities not warranted by the Legislature. Under the Loan Amendment Act, 1565, the Governor is empowered to sell the debentures below par ; but he is not authorised to issue a larger amount of debentures than for the sum originally authorised to be raised, viz., three millions. Believe me, my dear FitzGerald, Yours truly, Hesry Sectell. Wellington, March 8, 1866.

j THE MURDERERS OF MR. VOLKNER. The Southern Cross, of February 27, says :— The Five Natives accused of the murder of Mr. Volkuer, who have been for some months m custody at Opotiki, but who were not brought before the Court-martial, arrived m Auckland yesterday by the steamer Sturt from Opotiki. The following art their names : — Monomoko, Heremita, Kahupoea, Hakaraia te Rahui, Paora Taia and Peuetita. The first-named is a closely tatooed man, of about forty-five years of age, who, it is said, acted as commander of the party that committed the murder ; Kahupaea and Te Rahui are said to have been actively engaged m the hanging of Mr. Volkner ; Paioa Taia and Peuetita, it is stated, drank the blood of the murdered man, the former having been standing m the pulpit of the church with Kereopa when Mr. Volkner's head was brought m. All the prisoners are rather unfavorable specimens of the Maori. The prisoners were brought before his Worship about two o'clock, on an information charging them with the murder of Mr. Volkner, laid by Mr. T. Clarke, Civil Commissioner, at Taurango. Mr. Brooklield stated that lie appeared for the prosecution, and would ask for a remand until Saturday a? the principal witnesses had not arrived from Opotiki, and he expected them before that day. His Worship granted the remnnd until ten o'clock on Saturday, when the preliminary examination will be commenced at the new gaol.