CORRESPONDENCE RELATIVE TO PROVINCIAL LOANS.

Appendix to the Journals of the House of Representatives, 1863 Session I, B-05

B.—No. 5.

CORRESPONDENCE RELATIVE TO PROVINCIAL LOANS.

PRESENTED TO BOTH HOUSES OF THE GENERAL ASSEMBLLY, BY COMMAND OE HIS EXCELLENCY.

AUCKLAND.

1863.

B.—No. 5

PEOVINCE OF AUCKLAND. No. 1. THB HONOBABLE THE COLONIAL SECBETABY TO THE STJPEBINTENDENT, AUCKLAND. Colonial Secretary's Office, Auckland, 27th February, 1863. Sir,— In the " Southern Cross " of to-day, I observe that the Provincial Secretary of Auckland, in the report of the debate in the Provincial Council on the " Loan Bill," sent down to the Council by your Honor, is reported to have made the following statement:— " Now, as the assent of the General Government was most necessary, he would state what had happened. The Provincial Government having made up their minds, laid a paper similar to that placed in the hands of the Honorable Members before the General Government. A meeting of the Executive was called, and the facts were discussed. The Members of the General Government then said, after full enquiry ' We will be happy if this Bill be passed, to recommend His Excellency to assent to it,' and without having had that assurance first, the Bill would not have been sent down to take up the time of the Council needlessly, in discussing a measure which might not be assented to when passed." This statement being inaccurate, I think it desirable, in order that the Council or your Honor's Government may not be misled, to remind you of what has really taken place on the subject between your Honor and myself. In the first place, I should state distinctly, that not only has no Executive Council been held to consider the question of the Governor's assent to the Bill, but not even a Cabinet Council of the Ministers. The necessary formal consideration of such a Bill could not take place, for the Bill has not yet been seen (so far as I am aware) by any Member of His Excellency's Government. But at one or two interviews between your Honor and myself personally, I have stated in the course of conversation that I should be happy to assist your Honor's Government in any way I could, in getting a Bill made law for raising a Loan to carry on the purchase of Native Lands in the Province of Auckland, and especially for introducing bodies of Immigrants and establishing Settlements on the Frontiers, provided always that your Honor could show satisfactorily that sufficient guarantees existed for the payment of the interest of the Loan. A similar intimation was also made to your Honor (in a private form) by another Member of the Government; and, indeed, by the assent which has been given to two similar measures in the Middle Island, the Government have sufficiently indicated their desire to assist the Provincial Legislatures, where ample security was offered to the public creditor in any contemplated Loan for public purposes. I have, &c, Alfred Domett. His Honor the Superintendent, Auckland.

No. 2. THE SUPEBINTENDENT, AUCKLAND, TO THE HONOBABLE THB COLONIAL SECBETABY. Superintendent's Office, Auckland, 18th March, 1863. Sir,— I have the honor to transmit herewith, for the purpose of being laid before the Governor, the Act noted in the margin, which has been passed by the Provincial Council, and which I have reserved for the signification of His Excellency's assent.

CORRESPONDENCE RELATING to PROVINCIAL LOANS.

B—No. 5

In compliance with the request contained in your letter (circular) of date July 7th, 1857, with reference to Bills reserved, this Act is transmitted in duplicate, and is authenticated by the signature of the Speaker of the Provincial Council, and by my own. I have, <fec, Robekt Graham, Superintendent The Honorable the Colonial Secretary, Auckland.

No. 3. THE HONORABLE THE COLONIAL SECRETARY TO THE SUPERINTENDENT, AUCKLAND. Colonial Secretary's Office, Auckland, 21st March, 1863. Sir,— I have the honor to acknowledge the receipt of your Honor's letter, No. 48, of the 18th instant, transmitting a Bill, intituled the " Auckland Loan Act, 1863," which had been passed by the Provincial Council of Auckland, and reserved by your Honor for the signification of the Governor's pleasure thereon. In the Colonial Secretary's letter to your Honor, No. 71, of the 27th ultimo, your Honor was informed that the Colonial Secretary would be happy to assist your Government in any way he could, in " getting a Bill made law for raising a Loan to carry on the purchase of Native Lands in the Province of Auckland, and especially for introducing bodies of Immigrants, and establishing Settlements on the Frontiers, provided always that your Honor could show satisfactorily that sufficient guarantees existed for the payment of the interest of the Loan." It will accordingly be necessary that your Honor should furnish the Government with a statement setting forth in detail the nature and amount of the guarantees for the payment of interest and sinking fund on the proposed Loan, before this Bill can be submitted for His Excellency's assent. I have, &c, Header Wood, In the absence of Mr. Domett. His Honor the Superintendent, Auckland.

No. 4. THE SUPERINTENDENT, AUCKLAND, TO THE HONORABLE THE COLONIAL SECRETARY. Superintendent's Office, Auckland, 23rd March, 1863. Sir,— In reply to your Letter of date 21st instant (No. 100), I have the honor to inform you that the "Auckland Loan Bill, 1863," is a consolidation of all the Provincial liabilities, and that the security proposed for the payment of interest and sinking fund on the proposed loan is the Revenue of this Province, including that derivable from all sources. You will observe, however, that the Province will, for the sum of £185,000, hold securities to itself over such trust and other property as may be accepted by Act of the Provincial Council; also, that the £200,000 proposed to be appropriated to the promotion of Immigration and the Purchase of Land, will increase the Revenue and put the Provincial Government in possession of real property. Thus the sum of £115,000 only is left as a fixed charge on the Provincial revenue, and that is made up of the old Provincial debt £45,000, and the amount which it is anticipated will be required for the erection of public buildings £70,000. For further particulars I beg to refer you to the statement made in the Provincial Council by the Provincial Treasurer as reported in the Neio-Zealander newspaper, of date 26 th February, ultimo. I have, <fec, Robert Graham, Superintendent. The Honorable the Colonial Secretary, Auckland.

No. 5. THE HONORABLE THE COLONIAL SECRETARY TO THE SUPERINTENDENT, AUCKLAND. Colonial Secretary's Office, Auckland, 16th April, 1863. Sib,— In reference to your Letters of the 18th and 23rd ultimo, forwarding the " Auckland Loan Act, 1863," and furnishing a statement of the Finances of Auckland at the present time, I beg to state that this subject has received the anxious attention of the Government. It seems that the Loan in. question may be divided into three distinct parts —

2

PAPERS RELATING TO

B.—No. 5.

1. of £115,000 0 0 2. of 185,000 0 0 3. of 200,000 0 0 £500,000 0 0 The first division of One hundred and fifteen thousand pounds represents the liabilities at present charged against the Revenues of the Province in a consolidated form—namely, a sum of Forty-five thousand pounds raised some years since, and a sum of Severity thousand pounds for the erection of Public Buildings —Sixty thousand pounds of which was authorised last year. As far, then, as the first division of this Loan goes, the indebtedness of the Province will not be increased by any appreciable amount. The second division consists of a sum of One hundred and eighty-five thousand pounds, set apart for the purpose of being again lent under specific Acts of the Provincial Council to such Boards as exist or may be established for the purpose of executing and maintaining public works, the interest and sinking fund of such Loans to be paid out of the Eevenues of the Boards. At the present time the City and Harbour of Auckland are largely endowed with valuable lands, the rents of which can easily be made available for the payment of interest and sinking fund on any sums advanced for their improvement and utilization. By this division, then, the charge on the Provincial Revenues will not be increased. The third division consists of a sum of Two hundred thousand pounds for Immigration and the Purchase of Native Lands, the interest and sinking fund of which will be directly a charge upon the Provincial Eevenues. The Provincial Eevenue for the current year is estimated at Sixty thousand and fifty-eight pounds three shillings and two pence. The charges on this for establishments, police, interests of money on loans already raised, certain miscellaneous items, <fec, amount to Thirty-four thousand two hundred and ninety-seven pounds eight shillings and five pence, leaving but a very narrow margin for the prosecution of such works of general utility as should be provided for out of the ordinary Revenue. If the question were a purely financial one only, it might be open to doubt whether it would be prudent now to burthen this small surplus with still further charges, though there is no question whatever that the Provincial Revenue will continue to increase yearly. But looking to the present position of the Province in other respects, and having regard to the pressing necessity that exists in reference to the Native question to introduce immigrants into the Province of Auckland, and to provide funds for the purchase of sufficient lands for their location, the political necessity outweighs mere financial considerations, and Ministers have, therefore, advised the Governor to assent to the Bill. I have accordingly to inform your Honor that His Excellency has been pleased to give his assent in accordance with that advice. I herewith return to you a copy of the Act in question duly assented to. I have, <fcc, Reader Wood, In the absence of Mr. Domett. His Honor the Superintendent, Auckland.

PROVINCE OF TARANAKI. No. 1. THE SUPERINTENDENT, TAHANAKI, TO THE HONORABLE THE COLONIAL SECRETARY. Superintendent's Office, New Plymouth, 3rd October, 1862. Sir,— I have the honor to transmit a " Loan Amendment Ordinance 1862," which I have reserved for the signification of His Excellency's pleasure thereon. The alteration effected is practically, that the Provincial Government cannot redeem the Debentures issued until after six years have elapsed. Under the original Ordinance the Superintendent could at any time redeem them by a three months' notice, which reduced the Debentures to the value of a Three months' Bill, and precluded the Government from negotiating them at the low rate that they can be negotiated for, if the enclosed Ordinance is assented to. I have, &c, Charles Brown, Superintendent. The Honorable the Colonial Secretary.

3

PROVINCIAL LOANS.

B.—No. 5

No. 2. THE HONORABLE THE COLONIAL SECRETARY TO THE SUPERINTENDENT, TABANAKI. Colonial Secretary's Office, Auckland, 17th October, 1862. SlE,— I have the honor to inform you that the Bill forwarded in your letter of the 3rd instant, No. 81, passed by the Provincial Council of Taranaki, intituled " The Loan Amendment Ordinance 1862," and reserved by your Honor for the signification of the Governor's pleasure thereon, has been laid before His Excellency, who has been pleased to assent to the same. Your Honor's attention is directed to the 2nd Section of the " Provincial Reserved Bills Act," which provides that no Bill reserved for the signification of the Governor's pleasure thereon, shall have any force within the Province until the Superintendent shall signify as therein specified, that it has been laid before the Governor, and that His 1'Jxcellency has assented to the same. I herewith return to your Honor one copy of the Ordinance in question. I have, &c, F. D. Bell, For the Colonial Secretary. His Honor the Superintendent, Taranaki.

PEOVINCE OF HAWKE'S BAY. No. 1. THE SUPERINTENDENT OF HAWKE'S BAT TO THE HONOBABLE THE COLONIAL SECBETABT. Napier, 27th March, 1863. Sir,— I have the honor to acquaint you that I have proposed to the Provincial Council the raising of a Loan of £60,000 for the purchase of Native Lands, Maintenance of Koads, Harbour Accommodation, and Police. I shall shortly have a Loan Bill passed by the Council, which I shall submit for His Excellency's sanction ; and I trust, considering the objects intended to be carried out by the Loan, that this measure will be favourably entertained by your Government. I have, &c, Donald McLean, Superintendent. The Honorable the Colonial Secretary, Auckland.

No. 2. THE HONORABLE THE COLONIAL SECRETARY TO THE SUPERINTENDENT, HAWKE'S BAT. Colonial Secretary's Office, Auckland, 1st April, 1863. Sib,— With reference to your Honor's letter of the 27th ultimo, stating that you intended to submit a Bill to the Provincial Council for the raising of a Loan of Sixty Thousand Pounds (£60,000), I have the honor to inform you that the Government will require a statement in detail to accompany the proposed Loan Bill, setting forth the financial position of the Province, together with the nature and amount of the guarantees for the due payment of Interest and Sinking Fund. I have, &c, Header Wood, In the absence of Mr. Domett. His Honor the Superintendent, Hawke's Bay.

4

PAPERS RELATING TO

B.—No. 5.

No. 3. THB SUPEBINTENDENT, HAWKE'S BAT, TO THE HONOEABLE THB COLONIAL 8ECBET4.BT. Superintendent's Office, Napier, April 17th, 1863. Sir, — I have the honor to transmit six Acts, as noted in the margin, passed by the Provincial Council of Hawke's Bay, during the past Session, and which Acts have been reserved by me for the signification of His Excellency the Governor's pleasure thereon. I have, Sic, Donald McLean, Superintendent. The Honorable the Colonial Secretary.

Loan Act, and fire other Acts.

No. 4. THE SUPERINTENDENT, HAWKE'S BAT, TO THE HONOBABLB THB COLONIAL SECBETABT. Superintendent's Office, Napier, April 24th, 1863. Sir,— I have the honor to transmit herewith a Resolution and Regulations attached, which have been'adopted by the Provincial Council of Hawke's Bay. The chief object of the Resolution is to provide against the too easy surrender of the Provincial Estate, and to set apart a considerable portion of it as collateral security for the Loan of Sixty Thousand Pounds, intended to be raised as provided for by an Act submitted for His Excellency's assent, which was passed on the 8th instant. I expect that the several persons holding Land under Occupation Licenses will be induced to accept in exchange the terms proposed in the Resolutions, as the additional security thereby afforded will be an equivalent for the increased rent and price to be paid for improved land in Fee Simple at the expiration of fourteen years. Some of the largest holders have already acquiesced in the arrangement, and the others are likely to follow. The Regulations for the disposal of land upon a system of deferred payments have been copied fromthe Auckland Whitaker Land Regulations, as being adapted to the present wants of this Province, where an industrious class of agricultural immigrants is much required. It is, however, submitted that the provisions in those Regulations which restricts the offer of such lands after the first day of August, 1860, to " Immigrants expected to arrive," is unfair in its operation, as being calculated to impede the settlement by persons already in the Country or adjacent Colonies, who might be desirous to avail themselves of an opportunity to locate upon such lands as should be specially set apart to be disposed of on credit. I have to request that you will have the goodness to cause an Act to be prepared and brought before the next Session of the General Assembly, to give legal effect to the aforesaid Resolution and Regulations. In a separate communication I will allude more particularly to the object of the Loan BilL I have, &c, Donald McLean. Superintendent. The Honorable the Colonial Secretary

Enclosure to No. 4. 1863. COUNCIL PAPER. This Council having considered as to whether it is not advisable to set aside as collateral security for the Creditor of the Province under the Loan Act of this Session, some portion of the Provincial Estate, are of opinion— That those Blocks of Land known respectively as the Ahuriri, Moeangiangi, Arapawanui, Waikari, and Mohaka, and containing in all about Two hundred thousand (200,000) acres, should be set apart and reserved from sale for a fixed period of Fourteen (14) years, excepting such portions of those Blocks as have been already disposed of, or for the purchase of which applications shall be received before such time as this Resolution shall have become law ; and excepting, also, those Blocks of Land—a Schedule and Plan of which are hereunto attached, and which are, or shall be, set aside for settlement for a term of Fourteen (14) years, shall be offered to the present holders of Occupation Licenses over the Lands contained within the boundaries of the Blocks intended to be set aside. That the terms upon which such Leases shall be granted, shall be the payment of a Rental of

5

PROVINCIAL LOANS.

B.—No. 5.

One (1) penny per acre for the first Seven (7) years, and Two (2) pence per acre for the remaining Seven (7) years of the Lease. That a pre-emptive right to purchase such Lands at the rate of Thirty (30) shillings per acre for that portion of the Ahuriri Block contained between the Mangaone River, the Esk River, and the Pohui Reserve : Twenty (20) shillings per acre for the remainder of the Ahuriri Block and the Block known as the Arapawanui : and Ten (10) shillings per acre for the Block known as the Mohaka, be given to the Lessees over such portions of the Lands so leased as they shall improve. The term Improvement shall be held to mean, sowing with grasses and fencing. Provided, however, that in such cases where from the nature of the country fencing is impracticable, and a certificate to that effect shall be given by the Commissioner of Crown Lands, the Lessee shall be entitled to the pre-emption right on laying such Land down in grasses without fencing. That it being deemed advisable that certain portions of the Waste Lands of this Province should be reserved for Special Settlement, to be disposed of on a system of credit, — This Council resolves, That His Excellency's Government be requested to legalise the following Regulations for the occupation of Lands reserved for Settlement as aforesaid. The Council is aware that under the provision of the " "Waste Lands Act, 1858," "No Land, after the first day of August, " 1860, shall be sold upon credit, except such as it may be lawful to set apart for Special Settlement " by Immigrants expected to arrive," but it is of opinion that the interests of the Province would be better secured by extending the privileges of the disposal of Land on credit to others than those named in the " Waste Lands Act " —namely, " Immigrants expected to arrive ; " and trust that His Excellency's Government will take the necessary steps to exempt this Province from the operation of that provision, in so far only as Lands reserved for Settlement for Agricultural purposes is concerned. The Council adopts the following as Regulations for the disposal as aforesaid of Lauds on credit :— 1. Before any credit Land shall be sold, the Superintendent shall declare by notification in the Provincial Government Gazette, and in such newspapers in the Colony of New Zealand and elsewhere as he may think fit, that the same will be open for sale at a price to, be there stated, at a place, and on and after a day to be fixed in the notification ; which day shall be at least two calendar months after the first publication of such notification. 2. The price of all Credit Land shall be fixed by the Superintendent, acting by and with the advice of His Executive Council, and shall be disposed of only to persons willing to purchase the same, subject to the conditions hereinafter contained for the occupation and improvement thereof. 3. Any person upwards of sixteen years of age desirous of making a selection of Credit Land shall, on application to the Commissioner, or his Deputy, in Napier, or to such other person in the Colony of New Zealand as shall be appointed by the Superintendent to receive the same, be entitled, upon payment of a sum after the rate of Ten (10) per cent, by way of deposit upon the price fixed for the Allotment of Land selected, to receive a Land Order, in a form to be from time to time prescribed by the Superintendent : Provided always that no person shall be entitled to any such Land Order for more than Eighty, or less than Forty, acres of Land. 4. Evei'y such Land Order shall authorize the person entitled to the same, or his Agent, constituted in writing, to make a selection out of any Credit Land which shall be open for selection at the time such person shall desire to make the same : Provided always that the Land so selected shall be either in one allotment, or in contiguous allotments. 5. Every right of selection must be exercised within two calendar months from the date of the Land Order, if such Land Order has been issued in the Province of Hawke's Bay ; but, if such Land Order has been issued elsewhere, within six months from the date thereof, and the selection under any such Land Order shall be deemed to be complete, whenever the person making the same shall have delivered such Land Order daring office hours at the Waste Lands Office, together with a description in writing (under a sealed cover, with the words " Description of Credit Land" legibly written thereon) sufficient for the purpose of identifying the Land selected. 6. All such sealed covers shall be opened at noon on the next Monday (not being a holiday), by the Commissioner, or his Deputy, in the presence of the Receiver of Land Revenue, or, in the absence of the Receiver of Land Revenue, by such other Officer of the Provincial Government as the Superintendent may from time to time appoint for that purpose, and in the presence of any applicants, if they shall attend; and, if there be more than one application for the same Allotment, the Commissioner, or his Deputy, and such Receiver or other Officer, shall at once put up the same for sale by Auction at the upset price of such Allotment, at which sale those only who applied for the Allotment shall be allowed to bid, and the highest bidder amongst them shall be declared the purchaser thereof; and the amount bid shall be deemed to be the price of the said Allotment : Provided always that, when the person so receiving a Land Order does not make a selection within two months or six months respectively after the date thereof, it shall be lawful for such person to return to the Waste Lands Office such Land Order, and to receive back the amount paid for the same : Provided also that, if any such Land Order be not returned within seven days from the time within which the selection in respect of the same should have been made, such Land Order shall be held to have lapsed, and the amount paid for the same forfeited. 7. Any person whose application shall be granted shall be entitled to have immediate occupation of the land selected, and shall be entitled to a Lease of the same for five years in a form to be from time to time prescribed by the Superintendent, at a yearly rent after the rate of ten (10) per cent, per annum on the price paid for such Land, payable yearly ; and the payment hereinbefore required by way of deposit, shall bo deemed to be payment in advance for such rent. 8. After five years bond fide occupation, and the payment of the rent reserved by the Lease, the

6

PAPERS RELATING TO

B.—No. 5.

Lessee shall be entitled to a Grant from the Crown in fee simple of the Land contained in such Lease, on payment of the price thereof as aforesaid : Provided always that if the purchase money and all the rent due be not paid within six calendar months after the expiration of the Lease, the Land therein comprised, together with all improvements thereon, shall be sold by Auction, by order of the Superintendent, after two months' notice given in the " Provincial Government Gazette," and in two of the Newspapers published in Napier ; and the proceeds, after deducting all sums due in respect of the said Land, and all expenses incident to the sale thereof, shall be paid over to the Lessee forfeiting the claim, or to his appointee or representative : Provided that in default of such sale by direction of the Superintendent within twelve calendar months after the expiration of the Lease, the Governor may direct the sale of such Land, upon not less than two months' notice, given in such wise as he may think fit. 9. Every person shall be deemed to have bond fide occupied any Credit Land under Lease as aforesaid, who shall have erected a habitable dwelling-house thereon during the first year, and made improvements thereon, or any part thereof, after the rate of one acre in ten of Open Land, and one acre in twenty of Forest Land, for every year after the first year during such occupation, such improvements to consist of tillage, or clearing of forest, or laying down to grass ; and a residence during the whole term of five years by the Lessee on any such Land shall be deemed and taken to be equivalent to such improvements. 10. Any Lessee of Credit Land who shall at any time during the term of his Lease have completed all the improvements which he is by these Regulations required to make during the whole term of five years, and who shall pay the price thereof, and also all rent accrued due, shall be forthwith entitled to a Grant of the Land included in such Lease. 11. If any Lessee or other Person shall continue in possession of Land which shall have become forfeited under the provisions of these Regulations (unless an Appeal as hereinafter provided be pending) he shall be deemed to be in the unlawful occupation of Waste Lands of the Crown, and shall forfeit and pay for every day during which he shall so continue in possession, the sum of forty (40) shillings, to be recovered before any Justice of the Peace in a summary manner. 12. Every Lessee of Credit Land shall forward to the Commissioner, on the last day of the second year, and on the last day of every subsequent year of the term of his Lease, or within fifteen days after such days respectively, a Return in writing, in a form to be from time to time prescribed by the Superintendent, of the Land improved by him during the preceding year, and the nature of such improvements, which Return shall be certified by two householders. 13. Any Lessee, or his Assign, will be permitted to assign and transfer any Credit Land, subject to the terms and conditions prescribed in the original Lease, and subject also to the approval of the Superintendent, on the recommendation of the Commissioner. 14. If any person, holding under such Lease as aforesaid, shall not, within six months, enter into hon&fide occupation of the Land thereby leased, or, if he shall not pay the yearly rent of Ten per centum per annum on the price paid for such Land at the end of the second and every subsequent , year, or, if he shall cease to bond fide occup} 7, or, if he shall omit for two months after notice to make the lleturn in writing required as aforesaid, the Commissioner shall forthwith, by a notification, to be published in the Provincial Government Gazette, declare that the right and interest of snch Lessee in such Land has become forfeited ; and the Superintendent may let or sell, or otherwise dispose of it under these Regulations in the same manner as if the Land had never been let to such Lessee. 15. If any question shall at any time arise as to whether a forfeiture has been incurred, or sufficient improvements made, as required by these Regulations, it shall be lawful for the Lessee, within one month after such question shall have arisen, to prefer an appeal, in writing, to the Superintendent, ■which appeal shall be referred, at the expense of the party requiring the same, to two (2) Arbitrators and an Umpire, to be appointed in the usual way, whose decision shall be final and conclusive. 16. If any Lessee, or any other person, shall, after the time for appealing to the Superintendent against the decision of the Commissioner shall have elapsed, continue in possession of Land which shall have become forfeited under the provisions of these Regulations, and of which due notice shall have been given him, he shall be deemed to be in the unlawful occupation of Waste Lands of the Crown, and shall forfeit and pay for every day during which he shall so continue in possession the sum of Forty (40s.) shillings, to be recovered before a Justice of the Peace in a summary way.

SCHEDULE of lands keferred to in resolutions to be RESERVED FOR SPECIAL SETTLEMENT. Pohui Block 3,324 Acres. Pukititiri Block .... ... 14,000 „ Mohaka Reserve. (To contain three thousand acres, to be defined by Survey, and laid out on the road to Turanga, in such manner as may secure the inclusion of the most suitable Lands in tha Locality for Settlement) 3,000 „ Total 20,324 „ John Wilkinson, Speaker.

7

PROVINCIAL LOANS.

B.—No. 5

No. 5. THE STJPEBINTENDENT, HiWO's BAT, TO THE HONOBABLE THE COLONIAL 8ECBETABY. Superintendent's Office, Napier, April 25th, 1863. Sir,— In compliance with the request conveyed in your letter of the 1st instant, I have the honor to inform you that a detailed statement, setting forth the financial position of the Province, is being prepared and will be transmitted by an early opportunity. I forwarded a letter yesterday, covering a Eesolution of the Provincial Council, by which it is proposed to preserve for fourteen (14) years a considerable extent of the Provincial Estate as collateral security for the Loan of Sixty Thousand Pounds. Due provision will also be made for the Sinking Fund, as well as for the half-yearly payment of Interest to the Bank or Banks that may negotiate the Loan. It is intended only to raise from time to time such portions of the Loan as may be actually required for the purposes set forth in the Schedule attached to the Bill. I presume that some money will shortly be necessary to provide accommodation for the members of the Colonial Defence Force that are to be stationed in Hawke's Bay. When the Loan is negotiated, and I am in a position to estimate the amount to be from time to time drawn, I will make provision in the Estimates to meet the payment of Interest and Sinking Fund. The objects contemplated by the Bill are so obviously essential to the advancement of the Province that I trust His Excellency will give his assent to the measure, as every precaution has been taken by offering tangible security to meet the liability when it falls due. I have, &c, Donald McLean, Superintendent. The Honorable the Colonial Secretary, Auckland.

No. 6. THE STTPEBINTENDENT, HAWKe's BAT, TO THE HONORABLE THE COLONIAL SECBETAKY. Superintendent's Office, Napier, April 29th, 1863. Sib,— In continuation of my letter of the 23th instant, 1 have now the honor to transmit, as required by your letter of the 1st, a Statement of the financial position of the Province of Hawke's Bay on the 31st March, 1863, and for the succeeding fifteen months. The statement of Assets does not embrace the unalienated Waste Lands of the Province, of which a Return is herewith enclosed. I have, &c, Donald McLean, Superintendent. The Honorable the Colonial Secretary, Auckland.

Enclosure to No. 6. STATEMENT of financial position of the peovince of hawke's bay, on the 31st march, 1863, AND FOE THE SUCCEEDING FIFTEEN SIONTHS. ASSETS: £ s. d. £ s. d. Balance in hands of Treasurer, 31st March, 1863 . . 9,564 14 5 Advances to be accounted for, viz. :— On account of Wellington Provincial Government . 1,809 0 4 His Honor the Superintendent, as Trustee of Small Farms Reserve .... 1,541 0 0 Balances in hands of Officers to be accounted for . 3,566 6 6 16,481 1 3 Estimate of Revenue for the Fifteen Months ending 30th June, 1864, including Land Purchase Sixths, in hands of General Government ..... 23,397 5 4 Total Assets . . . 39,878 6 7

8

PAPERS RELATING TO

B.—No. 5.

LIABILITIES: £ S. d. £ S. d. Outstanding Claims (in hands of Officers, to be accounted for, 31st March, 1863) ..... 3,566 6 6 Estimate of Expenditure for the Fifteen Months ending 30th June, 1864, including an additional amount of £1,400, as per separate Eesolution of Council. . . . 29,216 16 0 Total Liabilities „ . 32,783 2 6 Excess of Estimated Assets over the amount of Estimated Liabilities to 30th June, 1864. .... £7,095 4 1 V. Janisch, Provincial Treasurer. Napier, 29th April, 1863. 6. E. G. Richardson, Provincial Auditor. MEMOEANDUM. ACRES. Approximate Area of Agricultural Land, remaining unsold, over which the Native Title has been extinguished, in the Province of Hawke's Bay .... 60,000 Do. do., Unagricultural Land 360,000 Do. do., Unavailable do. 318,000 Do. do,, Bush do. 107,000 Total ...... 845,000 H. S. TlFFEN, Commissioner of Crown Lands. Crown Land Office, Napier, 16th March, 1863.

No. 7. THE HONORABLE THE COLONIAL SECEETAEY TO THE SUPERINTENDENT, HAWKE'S BAT. New Plymouth, 18th May, 1863. Sir,— I have the honor to acknowledge the receipt of your Honor's letter, dated 17th April, 1863, forwarding Six Acts, passed by the Provincial Council of Hawke's Bay, and reserved by your Honor for His Excellency's assent. His Excellency the Governor has been pleased this day to assent to the following :— No. 2. " An Act to repeal the various Acts relating to Sheep, and the disease in sheep called scab, and to make other Provision in behalf of the same. No. 3. " An Act to appropriate the Eevenue of Hawke's Bay for 1863-4." No. 5. " An Act to constitute a Marine Board for the Port of Napier, to be called the 'Napier Marine Board.' *' No. G. "An Act to appoint Commissioners to adjust certain claims and matters of account, depending between the Provinces of Wellington and Hawke's Bay." And I now beg to return to your Honor one copy of each of the Acts above cited, with the assent of His Excellency formally endorsed thereon. In reference to these Acts generally, I desire to call your Honor's attention to the circumstance, that in some cases the enacting clause is worded " by and with the consent," instead of " by and with the advice and consent of the Provincial Council." The latter form of words is prescribed by the Constitution Act, and should be strictly adhered to. And in the case of the Marine Board Act, the Attorney-General has remarked that the first Section might have been more accurate by declaring the Board thereby constituted, and that the three last Sections are surplusage. The Loan Act will be made the subject of a future communication. I have, cfcc, Alfred Domett. His Honor the Superintendent, Hawke's Bay.

9

PEOVINCIAL LOANS.

B.—No. 5

No. 8. THE HONOBABLE THE COLONIAL SECBETAEY TO THE STTPEEINTENDENT, HAWKE's BAY. Colonial Secretary's Office, Auckland, 6th July, 1863. Sir,— With reference to my letter No. 184 of the 18th May last, I have now the honor to return you the Acts noted in the margin, with the Governor's assent duly noted thereon. With respect to the Loan Act, I have to remark that His Excellency has been advised to assent to that Act on the understanding that the Land referred to in the Eesolution of the Provincial Council be made available by law in the next session of the General Assembly as collateral security for the Loan, and that, in the mean time, funds received from all sales of land within those blocks be retained in the hands of the General Government, and appropriated to the Sinking Fund. I have, &c, Alfred Domett. His Honor the Superintendent, Hawke's Bay.

Loan Act and four other Acts.

No. 9. THE SUPEBINTENDENT, HAWKE's BAT, TO THE HONOBABLE THE COLONIAL SECBETABY. Superintendent's Office, Napier, July 16th, 1863. Sir,— I have the honor to acknowledge the receipt of your letter of the 6th instant, covering Acts assented to by the Governor. I fully concur in the desire to have the Land referred to in the Kesolution of the Provincial Council made available by Law in the next Session of the General Assembly, as collateral security for the Loan, and in the meantime I will take steps to give effect to your wishes in reference to the Funds received from all Sales of Land within the blocks in question, and I may add that they are precisely in accordance with the expressed intention of the Provincial Council. I have, &c, Donald McLean, ■ Superintendent. The Honorable the Colonial Secretary, Auckland.

PROVINCE OF NELSON. No. 1. THE SUPEBINTENDENT, NELSON, TO THE HONOEABLE THE COLONIAL SECBETABT. Superintendent's Office, Nelson, 14th August, 1863. Sir— ' , I have honor to enclose for the consideration of His Excellency the Governor, a copy of a series of Resolutions passed in the Provincial Council approving of the construction of a line of railway to the interior of this Province and of the raising a sum of £300,000 by loan for this and other purposes. In forwarding these resolutions it is right that I should state that the Council was pretty evenly, divided on the questions. Twelve Members (including the Speaker who voted in Committee) approved, and ten disapproved. It is also my duty to furnish His Excellency's Government with my own views on the subject. Of the ultimate great public utility of the proposed work lam satisfied. It is possible the quantity of land which would be improve^ by its construction would justify the outlay if the whole of the improved land could be charged with it. But I am compelled to hesitate about the propriety of the undertaking, chiefly by the fact that the districts to be improved in the highest degree by it, may possibly at some early day be separated from this Province and the whole burden cast on a part of the Community, at the same time that the means of bearing it are greatly reduced. His Excellency's advisers are doubtless aware that there is an influx of diggers going on into this Province, from Otago

Nelson Railway.

10

PAPERS RELATING TO

B.—No 5

and Australia : and a high probability exists, that rich gold fields may be discovered on all parts of the river Buller, and its tributaries. The presence of a population approaching in numbers to that of the Otago gold fields if even it should not continue settled beyond a few years might of itself justify the proposed outlay. A few months, or perhaps weeks, will decide whether this is or is not to be the position of the Province, and 1 would respectfully suggest that His Excellency should be advised to suspend his judgment on the resolutions for a time. There are other reasons for such a course. The objections urged in the Provincial Council and out of doors are, doubts as to the quantity and quality of Crown Lands, to be rendered accessible and improved in value by such a work, and as to the cost of the work itself. Our present knowledge of the country is imperfect, and whether rich gold fields are found or not, we are certain to increase that knowledge very fast as the summer comes on by means of the tracks now in progress and the exhaustive prospecting which is going on. Nearly every new line that is cut through the Forest opens new indications of Mineral wealth, and the indications of a Coal field have appeared on the Upper Buller near the river Owen, one of its tributaries. Fresh approaches to the Main Valley are moreover being discovered from time to time. I think it quite possible that a very short period may place the question beyond reasonable doubt and satisfy all parties as to the propriety of the undertaking. If the gold fields prove extensively attractive it might be wise to proceed quickly with such a work and I should regret having caused by my hesitation any obstacle in the way of colonizing the interior of the Province. On the other hand I am not prepared with my present information to be a party to incurring a debt which would cripple the resources of the Province if its now unsettled districts should soon be cut off. I have, <tc, J. P. ROBINSON, Superintendent. P.S. —I enclose copy of the Minutes of Evidence taken before the Committee of the Provincial Council. J. P. R. The Honorable the Colonial Secretary, Auckland.

Enclosure to No. 1. COPIES OF FOUB BESOLUTIONS PASSED BY THE PBOVINCIAL COUNCIL ON ) ULY 31ST, 1863. " 1. In the opinion of this Council it is the incumbent duty of the Government at once to take efficient means to open out the interior of the Province by a Road capable of affording at all times cheap communication with the Port, putting such an upset price upon all contiguous lands as would represent the great additional value thereby conferred on them." " 2. That a Eailway would best fulfil these requirements." " 3. That a Railroad should be made with as little delay as possible to the Plain of the Four Eivers in the Central Buller." " 4. That the Superintendent be requested to apply to the Government of the Colony for permission to raise a Loan of £300,000 to defray the cost of constructing a Railway and other works essential to opening the Country; and that as soon as conveniently may be after receiving an answer to this application, His Honor re-assemble this Council."

No. 2 THE HONORABLE THE COLONIAL SBCSETABT TO THE SUPERINTENDENT, NELSON. Colonial Secretary's Office, Auckland, 25th August, 1863. Sie,— I have the honor to acknowledge the receipt of your letter of the 14th instant, in which your Honor encloses a copy of Resolutions passed by the Provincial Council of .Nelson in favor of the construction of a Railway into the interior of the Province, and the raising of a Loan of Three Hundred Thousand Pounds for the purpose. Your Honor further suggests that His Excellency should be advised to suspend his judgment On the Resolutions for a time, as the lapse of a few months or even weeks will probably determine whether there are Gold-fields in the District to be opened by the Railway of sufficient extent and value to justify the proposed outlay, and will also place the public in possession of such an increase of knowledge as to the mineral capabilities of the District in other respects, and as to the quantity and quality of the lands to be made accessible, as may satisfy all parties of the propriety of the undertaking. After a careful perusal of the Report of the Council and the evidence taken by the Select Committee of the Provincial Council, as well as of the debates in the Provincial Council, and the discussions on thesubjectat Public Meetings and in the public prints, I am compelled to conclude that the advisability of contracting so large a Loan for the Railway is at present, to say the least, very questionable.

11

PEOVINCIAL LOANS.

B.—No. 5

It certainly appears to me that the advocates of the Railway, who advance many undeniable generalities as to the advantages of Railways, do not succeed, when they set themselves to measure in figures those of the one proposed, in shewing that the latter are an equivalent for what must be set ofi against them —viz., the large original outlay, the cost of working the Railway, and keeping it in repair, and the payment of so large an annual interest on the borrowed capital. With every disposition to take a hopeful view of the matter, and to admit the correctness of the estimates of the extent and value of the lands to be made accessible, formed by those most favorable to the project, I cannot think that it has yet been shewn that there is much probability that the increase of revenue of any kind to be produced by the Railway would for many years equal the interest that would have to be paid on the Loan. But surely, unless this could be satisfactorily shewn, Government would not be justified by any representations, however forcible, of the general results of Railways in other countries, under different circumstances, in saddling so large a debt upon the people of Nelson. If, indeed, the Provincial Government had other revenues of its own, amply sufficient to guarantee its ability to meet this additional liability, the case would be different. But, apart from the revenue, direct or indirect, to arise from the Railway, and an approximation to what, at all events, ought to be attainable in figures, it does not appear that the Province of Nelson has any revenue sufficient for this purpose. If there be any reasonable ground for these conclusions, then I think it must be admitted that, if a debt of such magnitude is to be saddled on the Province, other ways of spending Three hundred thousand pounds to its more immediate and greater advantage might probably be devised. If anything like that sum, for instance, were judiciously expended in due proportion for the introduction of immigrants, and the making the districts best adapted for immediate settlement easily accessible from the natural outlets for the produce of such districts, I believe the benefit to the Province, as a whole, would be incomparably greater. If the main object, however, is to prevent the possible separation of the Western portion of the Province from Nelson, by making Nelson the outlet for the produce of the Buller and Grey districts, I do not think there is any evidence to show that such a reversal of the ordinary results of the natural configuration of the country could be brought about by this or any other Railway. The Government, therefore, have no hesitation in acceding to Your Honor's request that no decision in favor of this project should be come to until an opportunity has been afforded for acquiring the additional information alluded to by Your Honor, especially as the influx of a large body of golddiggers would most materially alter the whole aspect of the question. I need scarcely say, in conclusion, that the fact of the nearly equal decision of opinion in the Provincial Council, and, apparently, in the public, of Nelson for and against this scheme, is a strong confirmation of the prudence of adopting the course suggested by Your Honor. I have, &c, Alfred Domett. His Honor the Superintendent, Nelson.

No. 3. THE SUPERINTENDENT, NELSON, TO THE HONOKABLE THE COLONIAL 8ECBETAEY. Superintendent's Office, Nelson, 17th November, 1862. Sir,— A reference to the report prepared by Mj> Burnett, Colliery Engineer, who has been for a considerable time, and still is engaged in examining that portion of the Grey Coal Field lying near the Buller River, a copy of which, with plans illustrative thereof, I had the honor to transmit to you by the Provincial Treasurer, Mr. Poynter, on his late visit to Wellington, will shew that in order to reduce the cost of conveying the Coals from the Mine to the place of shipment to the lowest possible amount, it will be necessary to construct a tramway ; foj. the purpose of defraying the cost of which, working the Mines, and carrying on other necessary operations connected therewith, it is estimated that a capital of Fifty-thousand Pounds may be required. In order that no delay may arise in working the mines and bringing the Coal to market, it is proposed that this Government- should commence the required works, and if necessary, carry them on until a suitable company may be found willing to do so on terms mutually advantageous to themselves and the Public, In order to the accomplishment of these objects, I have to request that you will be good enough to inform me at your earliest convenience, whether the Government will be prepared to advise His Excellency the Governor to give his assent to an Act for raising by loan the sum of, say, Fifty thousand Pounds, should the Provincial Council pass such an Act. I have, ifec, J. P. Robinson, Superintendent. The Honorable the Colonial Secretary, Auckland.

Wangapeka Coal Fields Railway.

12

PAPERS RELATING TO

B.—No. 5

No. 4. THE HONOBABLE THB COLONIAL SECBETAKT TO THE SUFEBINTENDENT, NELSON. Colonial Secretary's Office, Auckland, 6th December, 1862. Sib,In reply to your Honor's letter of the 17th ultimo, I have the honor to inform you that His Excellency the Governor will be advised to assent to the Bill for the Loan of Fifty thousand Pounds for working the Coal Mines near the Buller River, should the Provincial Council pass such a measure. I have, &c, Alfred Domett. His Honor the Superintendent, Nelson.

No. 5. THE SUFEBINTENDENT, NELSON, TO THE HONOBABLE THK COLONIAL SECBETABT. Superintendent's Office, Nelson, April 17th, 1863. Sir,— I have the honor to recal your attention to the subject of the proposed loan for opening the Coal-Field on the West Coast of this Province. Since my letter asking His Excellency's assent to the introduction of a Loan Bill for the above purpose in the next Session of the Provincial Council, the discovery has been made, that Coal, believed to be of the same formation as the Grey Coal, and to all appearance equal in quality, is to be obtained at a point half-way between.Nelson and the River Buller, and probably accessible by a road not exceeding and perhaps less than sixty miles in length. The advantages of opening this part of the field if it be practicable, are very great. First, the port of Nelson is incomparably better as a place of shipment than any of the Rivers of the West Coast, the best of which, the Buller, is only a small harbour of third-rate quality. Secondly, the wealth and population of the Province is principally in that part of the Country of which Nelson is the natural outlet, and any road constructed for Coal Traffic by way of Nelson would be a great convenience to the district, whilst a road made for opening the Coal-Field at the part adjacent to the River Buller, would be made in a country where as yet there is neither population nor investment, and would accommodate little at any time except the Coal trade itself. Thirdly, a road to the newly discovered portion of the Coal Field would be an important part of a main line from Nelson to the Buller and Grey districts, and would be a means of facilitating the settlement of some valuable country which at present is almost inaccessible. For these reasons I hope it may prove, on fuller examination, that the newly discovered coal is in quantity and quality deserving of a large outlay to bring it to the market, and that the intervening country offers no serious difficulty in the way of constructing a narrow gauge railway from its site to the Port of Nelson. Before entering on any costly survey of the suggested line, or bringing the scheme previously described to His Excellency before the Provincial Council, I am anxious to be informed whether in the event of the circumstances of the newly discovered coal deposits proving as favourable as present information describes them, His Excellency would assent to the increase of the proposed Loan to the sum of One hundred and twenty thousand Pounds ; and to the amount being appropriated in general terms to the opening of the Nelson Coal-Field at the most practicable point instead of limiting its use to the particular part near the River Buller. I enclose an estimate which I believe is a moderate one, of the extent of land which would most of it be materially increased in value by such a work as a Railway to the head of the Wangapeka river, the site of the new discovery, and which may moreover be fairly reckoned as saleable if such a work were constructed within the period of redemption of any debt contracted at the present time. I think this land will be considered an ample basis for the additional credit I am now asking, beyond the Fifty thousand Pounds for which I have His Excellency's approbation. I have, &c., J. P. Robinson, Superintendent The Honorable the Colonial Secretary, Auckland.

13

PROVINCIAL LOANS

B.—No. 5

Enclosure to No. 5. MEMORANDUM foe his honor the superintendent. Approximate Estimate of the Area of Land lying upon or opened by the proposed Road to the Karamea and the Buller Eivers by way of the Wangapeka Valley. Between the Motueka and Waimea . . 96,000 Acres Wangapeka (unsurveyed) . . . 3,000 „ Karamea (unexplored) probably . . . 5,000 „ Karamea on the Coast .... 20,000 „ Oweka, a tributary of the Buller . . - 3,800 „ Inangahua, do. ... 21,000 „ Mokihinui ..... 6,000 „ Heaphy ..... 12,000 „ Mouth of the BuUer, North . . . 24,000 „ do. do. South . . . 25,000 „ Total Northwards of, and adjacent to, the Buller . 215,800 Grey Plain ... . 185,000 Mawhera-iti, tributary of the Grey . . . 25,000 Maruia, tributary of the Buller . . . 25,000 More remote and indirectly affected by the proposed Roads . 235,000 Land Office, Nelson. The minimum price of land in the Province of Nelson is Six Shillings per acre. A large part of the Land in the above Estimate is of superior quality, and would sell at Fifteen to Twenty Shillings per Acre. There would be several Suburban Blocks at the mouth of the Buller, on the Grey Plain, and at the Wangapeka; and some valuable Village Sites at the confluence of the tributaries with the Buller and Grey, &c. At present rates the average value of the Land in the above Estimate may be taken at Ten Shillings per Acre. J. C. Richmond, Commissioner.

No. 6. THE HONORABLE THE COLONIAL SECEETART TO THE SUPERINTENDENT, NELSON. Colonial Secretary's Office, Auckland, 3rd July, 1863. Sir,— In reference to your Honor's letter of the 17th April last, I have the honor to state that Government has every desire to sanction any measures for the development of the mineral resources of the Province of Nelson, especially of its Coal-fields, which, from all the information that has been obtained, appear to be by far the most valuable in New Zealand. I am not, however, at present able to promise your Honor that Government will recommend for His Excellency's assent a Bill to raise a Loan for the construction of a Railway to Wangapeka Coalfield, for the following reasons :— From the very clear and sensible Reports of Mr. Burnett and Mr. Blackett, lately published in the Nelson Examiner, the following facts appear to be established : — 1. That if a Railway were made from this part of the Country to Nelson, the principal Return for the outlay upon it would have to be looked for from the transport of Coal to Nelson, and that this must be considerable to give such Returns as to make the Railway a profitable undertaking. 2. That if a considerable Coal Trade spring up, then the Coal could and would be imported into Nelson from either the Grey or Buller River, at a much less cost than to Nelson by Railway from Wangapeka District. Consequently, that the chief source of return for outlay on the Railway would be cut of£ The well known experience and good sense of the gentlemen who drew up these Reports, entitle their opinion, I think, to great weight. It is true they do not, as they were not required, enter into the question how far the opening up of new Country for Settlement, and the amount of ordinary traffic between the Agricultural Districts and the Town of Nelson, would justify the very large outlay required for the Railway to Wangapeka, which is estimated at £231,000, besides heavy expenses for working ; but I scarcely think there is sufficient evidence of the value and quantity of the Lands to be made accessible, and the amount of traffic in question at present before Government to warrant the assumption that such an outlay would be a profitable investment of Provincial Funds, if the returns in money or other material advantages were derivable from these sources alone.

14

PAPEES EELATING TO

B.—No. 5

I shall receive with great interest any communication from your Honor, conveying the opinion of the Provincial Council or your Honor's Government on the point last referred to. I have, &c, Alfred Domett. His Honor the Superintendent, Nelson.

PROVINCE OF CANTERBURY. No. 1. THE SUPERINTENDENT, CANTERBURY, TO THE HONOBABLE THE COLONIAL SECRETARY. Superintendent's Office, Christchurch, December 9th, 1862. Sir,— I have the honor to hand you herewith a Copy of an Ordinance passed by the Provincial Council of Canterbury, intituled the " Canterbury Loan Ordinance, 1862," and to request that you will move His Excellency the Governor to assent to the same. I have also the honor to hand you Copies of the Resolutions of the Council in reply to the Message with which I sent down the proposal for the Loan. I have to request that you will be good enough to lay these documents before His Excellency. I have, ifec, W. S. Moorhouse, Superintendent. The Honorable the Colonial Secretary.

Enclosure to No. 1. Provincial Council Chamber, 6th November, 1862. The Council desire to thank your Honor for the Message No. 1, transmitting the Canterbury Loan Bill. The Council, while concurring with your Honor in the expediency of borrowing for the purposes set forth in the Preamble of the Bill, are of opinion that it would not be expedient to disturb the Lyttelton and Christchurch Railway Loan, and that it would be highly expedient to borrow for the purposes indicated in your Honor's Message Five hundred thousand pounds by a Substantive Bill. But the Council is of opinion that such monies ought to be appropriated solely to Immigration and such larger public works as require a larger outlay than can be appropriated from the current Land Fund. (True Copy) H. B. Quin, Clerk of Council, Canterbury. Provincial Council Chamber, 11th November, 1862. Resolved —That in the opinion of this Council the time has now arrived for constructing that portion of the Lyttelton and Christchurch Railway between Christchurch and Ferry Mead, and that a request be presented to His Honor the Superintendent to take immediate steps to carry out that ■work. (True Copy) H. B. Quin, Clerk of Council, Canterbury. Provincial Council Chamber, 18th November, 1862. The Council thank your Honor for your Message No. 2, recommending that an appropriation of Fifty thousand pounds be made for Railway works, and is of opinion that it is desirable that the sum of Fifty thousand pounds should be appropriated to the purchase of that amount of Debentures under the Lyttelton and Christchurch Railway Loan Ordinance ; such Debentures to be sold hereafter, and the proceeds placed to the credit of Ordinary Revenue. (True Copy) H. B. Quin, Clerk of Council, Canterbury.

15

PROVINCIAL LOANS.

B.—No. 5

No. 2. THE HONORABLE THE COLONIAL SECRETARY, TO THE SUPERINTENDENT, CANTERBURY. Colonial Secretary's Office, Auckland, Sir, — 23rd December, 1862. I have the honor to acknowledge the receipt of your Honor's Letter of the 9 th instant, enclosing a Copy of an Ordinance passed by the Provincial Council of Canterbury, and entitled the "Canterbury Loan Ordinance, 18G2." Referring to the interview your Honor had yesterday with the Members of the Executive Government, I have the honor to inform you that for the reasons and under the circumstances stated by your Honor on that occasion, His Excellency will be advised to give his assent to the Ordinance in question. I have, <fec, His Honor the Superintendent, Canterbury. Alfked Domett.

No. 3. THE HONORABLE THE COLONIAL SECRETARY TO THE SUPERINTENDENT, CANTERBURY. Colonial Secretary's Office, Auckland, Sir, — 5th January, 1863. With reference to my Letter to your Honor of the 23rd ultimo, respecting the "Canterbury Loan Ordinance, 1862," I have now tlie honor to inform you that His Excellency the Governor has been pleased to assent to that Ordinance, a Copy of which I herewith return to your Honor. I have, (fee, His Honor the Superintendent, Canterbury. Alfred Domett.

No. 4. THE SUPERINTENDENT, CANTERBURY, TO THE HONOEABLE THE COLONIAL SECRETARY. Superintendent's Office, Christchurch, Canterbury, N.Z., Sir,— 14th January, 1863. I have the honor to acknowledge the receipt of your Letter of the number and date quoted in the margin, forwarding a Copy of the " Canterbury Loan Ordinance, 1862," to which His Excellency the Governor has been pleased to assent. I have, &c, W. S. Moorhouse, The Honorable the Colonial Secretary, Auckland. Superintendent.

No. 19.

No. 5. COPY OF DESPATCH FROM GOVERNOR SIR GEORGE GREY, K.C.B., TO HIS GRACE THE DUKE OF NEWCASTLE, E.G. Auckland, New Zealand, My Lord Duke, — Government House, February 20th, 1863. I have the honor to enclose for Your Grace's information, the copy of an Ordinance passed by the Provincial Council of the Province of Canterbury, to which I have given my assent. 2. This Ordinance is entitled the ' Canterbury Loan Ordinance, 1862,' and authorizes the raising of a loan of Five Hundred Thousand Pounds, for the purposes of Immigration to the Province of Canterbury, the construction of Railways, wharves, bridges, &c. My Responsible Advisers recommended me to give my assent to this Ordinance for the reasons which they have set forth at length in the enclosed Memorandum. 3. The Province of Canterbury continues to make remarkable advances in wealth and population ; its soil is very fertile, and the complete settlement of the Native Question in these Islands depends entirely upon the number of the European population inhabiting them. It appeared to me therefore, that Your Grace would have thought it a wrong act upon my part to have refused my assent to a Law which will so largely assist in the development of the resources of so important a part of New Zealand as Canterbury is. 4. I beg to direct Your Grace's attention to the fact stated in the Memorandum of my Responsible Advisers, that the Provincial Revenue of the Province of Canterbury already exceeds a quarter of a million per annum. I have, &c, His Grace the Duke of Newcastle, K.G. G. Grey.

16

PAPERS RELATING TO

B.—No. 5

Enclosure to No. 5. MEMORANDUM foe his excellency the govebnob. Auckland, 27th December, 1862. Ministers recommend that His Excellency's assent be given to the accompanying Ordinance passed by the Provincial Council of Canterbury, intituled the "Canterbury Loan Ordinance 1862." As the object of the Ordinance is to enable the Superintendent of Canterbury to raise a large sum of money, Ministers think it right to add the following remarks in explanation of the above recommendation. The money to be raised is to be expended on Immigration and the construction of Railways through the great agricultural districts of the Province of Canterbury. The Provincial Government propose to introduce Immigrants at the rate of 5,000 souls per annum for the next five years. The Provincial Council has on the Estimates for the present year a vote of £40,000 for Immigration. If these Immigrants are introduced, it will be necessary to render the rich agricultural lands of the Province accessible by roads, in order that the Immigrants may be settled on them as they arrive, with a prospect of self-support. The cheapest roads if made in the first instance, are Railroads. The principal tract of agricultural land extends from Bank's Peninsula to Timaru, the Southern boundary of the Province, a tract of nearly 00 miles in length by about 12 in breadth. It is proposed to open up this tract, as well as the other Districts on the North of the Peninsula. The security for the repayment of the loan is ample. The amount of agricultural Crown land in the Province is variously estimated at from one to two million acres. This land sells at present for two pounds (£2) per acre, the fixed price under the Waste Land Regulations, and there can be little doubt that it will fetch more if opened up by Railroads. The encumbrances upon this Estate are veiy slight. The Canterbury proportion towards the original Colonial Debt and Sinking Fund for £500,000 amounts to only £4,000 per annum. No portion of the loan of £300,000 authorized by the " Lyttelton and Christchurch Railway Ordinance" to be raised for that Railway, has ever been raised except a sum of £50,000 of Debentures taken up by the Provincial Government itself and cancelled. Of the £30,000 raised under the " Loan Ordinance" Session 7, No. 3, for Immigration and Public Works, £7,000 has been paid off, £23,000 remaining due. These are the only debts of the Province, and the Revenue is in a very flourishing condition. By the last Canterbury Estimates it appears that a balance of £90,000 was in the Provincial Chest. The total Provincial Revenue for the last two years was, for 1861-2, £145,446; and for nine months ending 30th September, 1862 of 1862-3, £197,050, being at the rate of £262,730 for the year. A special clause in the Ordinance saves from prejudice the security for the Loan above alluded to, guaranteed by the Imperial Government. Alfred Domett.

NEW ZEALAND

No. 57.

No. 6. copy of DESPATCH from his grace the duke of Newcastle, k.g., to governor sir georgb GREY, K.C.B. Downing Street, Sir,— 12th June, 1863. I have received your Despatch No. 19, of the 20th of February, forwarding Copy of an Ordinance of the Provincial Council of Canterbury, authorising the raising of a Loan of £500,000 for local purposes, to which you have given your assent; and I have to acquaint you that the Lords Commissioners of the Treasury have stated, in reply to the reference which was made to them, that they see no objection to this Ordinance. I avail myself of the opportunity to remark that Copies of the Enactments passed by the different Provincial Governments in New Zealand have, with very few exceptions, not been received at this Department, and I should be glad if you would take such steps as may be necessary for procuring their regular transmission, as it is very desirable that the Secretary of State should be fully informed on a matter of so much importance. I have, &c, Newcastle.

£.500,000

No. 7. THE StTPEBINTENDENT, CANTERBUBY, TO THE HONOBABLE THE COLONIAL SECBETABY. Superintendent's Office, Christchurch, Canterbury, N.Z., 16th September, 1863. Sir,— I have the honor to forward two copies of an Ordinance, intituled the " Loan Ordinance

17

PROVINCIAL LOANS.

B.—No. 5

Amendment Ordinance, 1863," and to request that you -will move His Excellency the Goyernor to assent to tlie same. I also forward copies of two Ordinances, viz. :— "The Public House Ordinance, 1863," "Ferrymead Eailway and Wharf Tolls Ordinance, 1863," which I have assented to on behalf of His Excellency. I have, &c, S. Bealet, Superintendent. The Honorable the Colonial Secretary.

No. 8. THE HONORABLE THE COLONIAL SECEETABT, TO THE SUPEBINTENDENT, CANTEBBtTBY. Colonial Secretary's Office, Auckland, 6th October, 1863. Sir,— I have to acknowledge the receipt of Your Honor's letter, No. 69, of the 16th ultimo, transmitting copies of an Ordinance, intituled " The Loan Ordinance Amendment Ordinance, 1863," passed by the Provincial Council of Canterbury, and reserved by Your Honor for the assent of His Excellency the Governor ; also copies of the two Ordinances—namely, " The Public House Ordinance, 1863," and "Ferrymead Kail way and Wharf Tolls Ord'nance," assented to by Your Honor. His Excellency will be advised to assent to the first-named Ordinance—" The Loan Ordinance Amendment Ordinance, 1863 ; and, as soon as his signature to such assent is obtained, I will forward to Your Honor a copy of the Ordinance, with such assent duly noted thereon. His Excellency has also been advised to leave the other two Ordinances transmitted in your letter to their operation. I have, &c, Alfred Domett. His Honor the Superintendent, Canterbury.

No. 9. THE HONOEABLE THE COLONIAL SECBETAKY TO THE STJPEEINTENDENT, CANTEBBUBY. Colonial Secretary's Office, Auckland, 8th October, 1863. Sir,— With reference to my letter to Your Honor, No. 343, of the 6th instant, I have now the honor to transmit to you a copy of the " Loan Ordinance Amendment Ordinance, 1863," with His Excellency's assent duly noted thereon. I have, &c., Alfred Domett. His Honor the Superintendent, Canterbury.

PROVINCE OF OTAGO. No. 1. THE SUPERINTENDENT, OTAGO, TO THE HONORABLE THE COLONIAL SECEETAEY. Superintendent's Office, Dunedin, 6th November, 1862. Sir,— As the Gold Fields of this Province appear to be extending across the centre of the Country, making it imperatively necessary that several Lines of Roads should be formed from the Sea Coast to the Interior, thus involving a large immediate outlay ; and as, moreover, from time to time a large number of Miners of an inferior class have temporarily to be employed on the public Roads, I have

18

PAPEES EELATING TO

B.—No. 5,

the honor to inform you that it is my intention during the coming Session of the Provincial Council to introduce a Bill for the purpose of negotiating a Loan for obtaining the sum of £500,000, on the security of the L and Revenue of the Province, following the conditions of the OtagoLoan Ordinance, 1861, -which was approved of by His Excellency, a copy of which is herewith enclosed. I append for your information a Memorandum exhibiting the position of the Finances of the Province on the 30th September, together with a Memorandum of the Loaning power of the Government, and to what extent it has already been exercised. I observe that several of the Provinces have, or contemplate having, large powers of raising money on the issue of Debentures ; and as the demands on the resources of this Province are not surpassed by those on any other Province, the Provincial Government expect, and with reason, that the greatest latitude will be given it, consistently with Imperial Insti-uctions. I have, &c., J. Richardson, Superintendent. The Honorable the Colonial Secretary, Auckland.

Enclosure to No. 1. STATEMENT OF LIABILITIES and assets of the pbovince of otago on septembeb 30th, 1860. Liabilities. Assets. £ s. d. loans — £ s. d. Deposit Accounts . . 441 2 0 Dunedin Town Board. 4500 0 0 Debentures Payable . . 23,000 0 0 „ Cemetery . 100 0 0 Union Bank of Australia . . 22,583 4 3 Port Chalmers Town Board . . 500 0 0 Cemetery 100 0 0 James G. Lewis . 250 0 0 Harbour Endowments 11,261 10 6 £16,711 10 6 Due by Home Agents . . 10,485 3 9 Advanced Accounts . . 6,520 11 11 Immigrationßills payable on demand 46,979 1 5 Total . . £46,024 6 3 Total . . . £80,696 7 7 BOBEOWING POWEES. Debentures Outstanding . . £23,000 0 0 Loan Ordinance 1856 35,000 0 0* 1861 50,000 0 0 Public Building, 1862 50,000 0 0 Harbour Endowment 1862 . . 50,000 0 0 £185,000 0 0 • This amount has been borrowed, but £12,000 has been paid off, leaving £23,000 as outstanding liabilities.

No. 2. THE HONORABLE THE COLONIAL SECRETABY TO THE SUPERINTENDENT, OTAGO. Colonial Secretary's Office, Auckland, 6th December, 1862. Sik,— With reference to your Honor's letter, No. 1222, of the 6th ultimo, stating that you intended to propose to the Provincial Council of Otago a Bill for raising a Loan of £500,000, I have the honor to communicate to you the views of the General Government upon this subject. In the Despatch of the Secretary of State of the 15th September, 1857, published in the " New Zealand Gazette " of the 15th December of that year, Mr. Labouchere writes to the Governor as follows :— "I have therefore to instruct you, in exercise of the powers vested in you by the Constitution Act, to require that all Bills of Provincial Legislatures for the purpose of raising monies by Loan shall be reserved for your assent ; not to give such assent in any case unless either the amount is inconsiderable, and the purpose temporary, or the exigency appears to you so great as to render departure from this rule essential for the public convenience; and if ever Loans to any serious amount should appear to be required by a Province, to require that the Legislature should present to you Resolutions to that effect, in order that you may confer with Her Majesty's Government previously to the introduction of any Bill for the purpose."

19

PEOVINCIAL LOANS.

X—No. 5,

There can, however, be little doubt that the Home Government at that time never contemplated the raising of Loans so large as that proposed by your Honor, and did not mean, even that their qualifications with respect to cases of emergency should be construed so as to allow of such Loans. His Excellency's Advisers, nevertheless, in consideration of the necessity of enabling your Honor to make some provision for the crowds of diggers constantly swarming into Otago from Melbourne, by continually opening up Auriferous Districts for their occupation, and at the same time affording employment on road-making for the numbers that may probably be unsuccessful as diggers, and in consideration of the fearful results that might follow in such cases, should there be no employment for them, will recommend His Excellency to give his assent to the proposed Bill. At the same time I have to request that your Honor will be good enough to furnish to the General Government, as soon as possible, a succinct statement, showing— 1st. The actual numbers of diggers or immigrants arriving by the week or month. 2nd. The total value in round numbers of the Waste Lands of the Province, upon which the repayment of the Loan will be principally secured. 3rd. In case of a sudden or early decline in the amount of gold produced, or the exhaustion of the Gold Fields, and of the consequent re-emigration of great numbers of the digging population, to ■what extent the security for repayment would be damaged. The information above referred to is required in order to enable the Government to give the necessary explanations to the Imperial authorities. I would call your Honor's attention to the latter part of the enclosed copy of a Memorandum from Mr. Crawford, (who is acting for the Law Officer) suggesting improvements in the Draft Bill transmitted by your Honor ; and would request you to introduce into it the amendments, unless you should have satisfactory reason to the contrary. I have, &c, Alfred Domett. His Honor the Superintendent, Otago. Some difficulties present themselves in considering the proposal for an Otago Provincial Loan of £500,000. 1. The Bill must be reserved for His Excellency's assent, and this assent must be given within three months, otherwise the Bill falls. 2. But His Excellency must refer the question of so large a Loan to the Home authorities, which cannot be done in three months. The proposal must, therefore, originate in the shape of Resolutions by the Provincial Legislature, which might embody the proposed Bill, and thus bring all its details under the notice of the Imperial authorities. The form of the Bill now sent has already been sanctioned by the Attorney-General. Certain errors were pointed out in the correspondence on the subject which can now be corrected. (See Sessional Papers, A. No. 3, pp. 16, 17, and 18.) Besides these I may note that the form of Debenture is capable of improvement. It should be payable at a place (or either of two places) certain, not with the indefinite condition " as may be arranged." It is not stated whether this half-million Loan is intended to embrace and supersede the XI 85,000, for which borrowing power already exists. James H. Crawford, For the Assistant Law Officer. 5th December, 1862.

No. 3. THE SUPERINTENDENT, OTAGO, TO THE HONORABLE THE COLONIAL SECRETARY. Superintendent's Office, Dunedin, December 4th, 1862. Sir,— I have the honor to acknowledge the receipt of your letter, of the number and date quoted in the margin, and to state that I await with considerable anxiety the reply to my application for a Loan of £500,000. I have, <fec, J. Richardson, Superintendent The Honorable the Colonial Secretary, Auckland.

20

PAPERS RELATING TO

B.—No. 5

No. 4. THE SUPERINTENDENT, OTAGO, TO THE HONOBABLE THE COLONIAL SECEETAEY. Dunstan, January 12th, 1863. Sir,— I have the honor to forward the accompanying Bill, which I have reserved for the signification of the Governor's pleasure thereon : —■ "The Otago Loan Bill, 1862." I need not point out the urgent necessity of this Bill being assented to, as the demands of the Provincial Treasury are of a very urgent character. Should any slight informality occur, it may be remedied in an Amendment Bill. I have, <fec, J. Richardson, Superintendent. The Honorable the Colonial Secretary.

No. 5. THE HONOEABLE TnE COLONIAL SECEETAEY TO THE SUPERINTENDENT, OTAGO. Colonial Secretary's Office, Auckland, 18th February, 1863. Sir,— I have the honor to inform you that the Bill forwarded in your Honor's letter of the 12th ultimo, intituled " The Otago Loan Ordinance, 1862," and reserved by you for the signification of the Governor's pleasure thereon, has been laid before His Excellency, who has been pleased to assent to the same. I have to direct your Honor's attention to my letter of the 6th December last, calling for certain Returns and information which are required by the Government. I trust that I need not point out to your Honor the necessity there is that the returns should be sent at once, in order that they may accompany and explain the Ordinance above alluded to, when forwarded to the Secretary of State. I herewith return to your Honor a copy of the Act above referred to. I have, dec, Alfred Domett. His Honor the Superintendent, Otago.

No. 6. THE SUPERINTENDENT, OTAGO, TO THE HONOBABLE THE COLONIAL SECEETAEY. Province of Otago, New Zealand, Superintendent's Office, Dunedin, 7th March, 1863. Sir,— In acknowledging the receipt of your Despatch, No. 45, of the 18th ultimo, intimating that His Excellency has been pleased to assent to " The Otago Loan Ordinance, 1862," I. have to express my regret that the Returns and information therein alluded to have not been furnished, for the reason that your Despatch of the 6th December lias been unaccountably mislaid. May I request, therefore, that you will cause me to be furnished with a duplicate, on the receipt of which no further delay shall take place. I have, &c, J. Richardson, Superintendent. The Honorable the Colonial Secretary, Auckland.

No. 7. THE HONOEABLE THE COLONIAL SECEETAKY TO THE SUPERINTENDENT, OTAGO. Colonial Secretary's Office, Auckland, 21st March, 1863. Sir,— With reference to your Honor's letter of the 7th instant, No. 1506, on the subject of the "Otago Loan Ordinance, 1862," in which you state that the letter from this Office, of the 6th

21

PROVINCIAL LOANS.

B.—No. 5

December last, to your Honor, has been mislaid, and requesting to be furnished with a copy thereof, I have the honor, in accordance with such request, to transmit you herewith a certified copy of the letter referred to. I have, &c, Reader Wood, In the absence of Mr, Domett. His Honor the Superintendent, Otago.

No. 8. THE SUPERINTENDENT, OTAGO, TO THE HONORABLE THE COLONIAL SECRETARY. Superintendent's Office, Dunedin, April 11th, 1863. Sir,— I have the honor to acknowledge the receipt of your letter, of the number and date quoted in the margin, forwarding a copy of a letter on the subject of certain Returns required in connection with the " Otago Loan Ordinance, 1862." I have, &c, J. Richardson, Superintendent. The Honorable the Colonial Secretary, A uckland.

No. 88, March 21st, 1863.

No. 9. THE SUPERINTENDENT, OTAGO, TO THE HONORABLE THE COLONIAL SECEETABY. Province of Otago, Superintendent's Office, Dunedin, 14th April, 1863. Sir, — Referring to my letter of the 11th instant, I have now the honor to furnish the infoi'mation required by your Despatch of the 6th December last. 1. I forward a Return shewing the actual number of arrivals in the Province for the Quarters ended December, 1862, and March, 1863, distinguishing those who arrived from Britain and the Australian Colonies ; most of the latter, exclusive, of course, of the women and children, may be classed as diggers. 2. I enclose a copy of a letter from the Commissioner of Crown Lands as to the approximate value of the Waste Lands of the Province ujion which the repayment of the Loan will be principally secured. 3. As I cannot contemplate either a sudden or early decline in the amount of gold produced, or of the exhaustion of the Gold Fields, and of the consequent re-emigration of great numbers of the digging population, it is manifestly impossible for me to say that the security for repayment will be damaged in any way. I have, ifec, John Richardson, Superintendent. The Honorable the Colonial Secretary, Auckland.

Enclosure 1 to No. 9. Return of the number of persons who have arrived in the Province of Otago during the Quarters ended 31st December, 1862, and 31st March, 1863, including families and children ; distinguishing those who have arrived from Great Britain and those who arrived from the Australian Colonies, most of whom may be classed as Diggers :—

QUARTER ENDED 31ST DECEMBER, 1862.

22

PAPERS RELATING TO

October. j November. December. Total. Great Britain Colonies 523 3,836 | 779 1.646 451 1,259 1,753 6,741 4,359 2,425 I 1,710 8,494

B.—No. 5

QUARTER ENDED 31ST MARCH, 1863.

Thomas Dick, Provincial Secretary. April 13th, 1863.

Enclosure 2 to No. 9. W. H. CUTTEN TO THB SUPEEINTENDENT, OTAGO. Crown Lauds Office, Dunedin, 13th April, 1863. Sir,— In reply to your Honor's request for an Estimate of the value of the Crown Lands within the Province of Otago, I have the honor to state that I estimate their value at £6,000,000 (six million) pounds sterling. This estimate is of necessity only approximate, and may be inaccurate should any change be made in the laws relating to the sale, letting, disposal, and occupation of Crown Lands. I have, &c., W. H. Cutten, Commissioner of Crown Lands. To His Honor the Superintendent of Otago.

PEOVINCE OF SOUTHLAND. No. 1. THE SUPERINTENDENT, SOUTHLAND, TO THE HONORABLE THE COLONIAL SECRETARY. Superintendent's Office, Southland, 4th February, 1863. Sir,— Since the constitution of a Government in this Province, the necessity for constructing a Railway to the Blufi' has always been looked forward to as a contingency by no means remote, if the Province only prospered as all classes in it anticipated. The extension of Gold-fields in Otago, in the course of last summer, greatly, though indirectly, benefited Southland ; their further development, in the course of last spring, near the borders of this Province, gave so great a stimulus to the commercial prosperity that it was felt even then that the time had arrived for entering on a work which would connect the best port in the Province— and the only unexceptionable one for vessels of the largest class—with the capital and country in the interior, and a survey of the line was pressed forward. That survey is now complete, and the line presents no engineering difficulties, for the greatest part of the way it will run alongside of the highroad. In connection with this Railway, jetty accommodation of a somewhat expensive character will be required at Campbelltown, and, to meet the expenditure on those works, the Government proposes to borrow .£100,000 for these specific purposes, to be repaid in twenty-five years by a sinking fund. But while engaged in ascertaining all the preliminaries of those works, a further development of the Gold-fields on the borders of the Province has occurred, and the Gold-field of Whakatipu— the lichest hitherto discovered in New Zealand—is now occupied by thousands of miners. In about two months, about thirty thousand ounces of gold have been transmitted from thence. It is said that from eight thousand to ten thousand men are now on the field, and the supplies have been almost exclusively sent from Southland. The only available line to Whakatipu from Dunedin joins the road from Invercargill, at the Mataui'a, about forty miles from here, and then traverses this Province, for about eighty miles, to the Whakatipu Lake. This road, however, is neither formed nor metalled for more than a dozen miles from this place ; and there are two other routes from here

23

PEOVINCIAL LOANS

January. February. March. Total. Great Britain Colonies 523 2,597 211 4,756 380 5,306 1,114 12,659 3,120 4,967 5,686 13,773

B.—No. 5

to the Lake, which are much shorter—one by the Aparima, the other line (the most direct) by the valley of Orete, the distance being little above eighty miles, the course lying along a succession of plains for the whole distance: a singular fact, seeing that it crosses two watersheds. Along a great part of this line, shingle for metal or ballast is easily procurable; but, as no natural road can support a heavy traffic in (winter) wet weather, the possibility of maintaining the traffic during the winter, at reasonable rates, will depend upon the ability of the Province to meet the expense of metalling, at every necessary point, the shortest and most eligible route of these. Taking further into consideration that the gravel commonly used on the roads here might sustain the traffic, where the subsoil was dry, and the supply close at hand, as there are no gravel beds sufficient for the purpose near the town on that line, and the line for some distance runs along low plains, difficult to dry thoroughly, it follows that stone, for metal would be necessary. The nearest convenient point at which this could be obtained would be at the West end of the Bluff peninsula. The ordinary cost of gravelling averages from £700 to £1,000 a mile: it would not meet the requirements of this line of road for a long distance out of town. In any case, it would require a renewal evey summer, and would certainly break down in many places under the pressure of heavy winter ti-affic. Metalling the road with stone would cost, on the average, about £2,500 a mile. In the low plains, it would be apt to give way in places in winter, and require renewal, at furthest, every second year. More probably, twothirds must be re-metalled every summer, at the same average cost. Considering, further, that a Tramway, which could be laid down at about the same cost —£2,500 a mile—would become at once a permanent way, the expense of maintaining which would be trifling, as compared with that of a highway,—that it would not break down under any increase of traffic, —that it would be available for all kinds of carriages,—would facilitate the conveyance of goods, and, as estimated, reduce the cost of carriage to Whakatipu from a maximum of £70 or £80 per ton (or the present rate of £40 to £45) to a rate ranging from £6 to £10 a ton, —that a considerable revenue would be at once derivable from tolls thereon, —that the land along the line, which, beyond the North boundary of the New River Hundreds, is all unsold, and of which about sixty thousand acres are arable, of the most fertile character (besides contiguous valleys, and the drier plains further inland), would at once acquire a greatly increased value ; the Provincial Government has resolved to propose to the Provincial Council to borrow £120,000, for the specific purpose of forming a Tramway from Invercargill to Whakatipu. The Provincial Government has been in communication on the subject with contractors experienced in such works, and it is assured that, within four months after the work shall have been contracted for, some fourteen miles of the line would be open for traffic. This would extend over the lower plains North of the town, and lead on to the drier plains inland, where shingle is abundant, and where the country being unsold and open, even a winter traffic, with light loads, might possibly be carried. These Loans may appear to be large for a Province that is still so young ; but it must be remembered that the proposed outlay will be confined to objects which will prove highly reproductive. It will secure the commercial advantage of supplying a large producing population on the Gold-fields, who cannot absolutely obtain their supplies elsewhere, nor easily, otherwise, with certainty, on account of the diminished cost of carriage. It will encourage the advent of shipping to that port of New Zealand which is the nearest to Melbourne, and which, as the terminus of the line of Telegraph in the Southern Island, must become a place of importance for other reasons; and, finally, that the prospective Land Revenue of the Province justifies the Provincial Government in the conviction it entertains that these prospective Loans will not produce a strain on the finances of the Province. In an appended slip is a statement of the population of the Province in 1861 and 1862, and the imports and exports of those years contrasted. I shall take an early opportunity of forwarding a statement of unsold agricultural lands in the Province, <fec, and I trust to succeed in convincing you that it is both safe and prvident to assent to these Loans, and thus enable the Provincial Government of Southland to take " the tide at the flood." I have, <fec, J. A. R. Menzies. The Honorable the Colonial Secretary.

Enclosure to No. 1. SOUTHLAND POETS. Years ending 30th September. Value. Population of Province of Southand. 1861. f Tonnage ) 9961. £58,014. December, 1861. 1820. 1862. \ Inwards, j 34556. 132,325. December, 18G2. 3400. Now the large increase of imports at a time when Gold Fields could exercise only an indirect influence on the prosperity of the Province affords a good indication of the belief in and extent of its natural resources. Now with a Gold Field on the border, containing a population of 8 to 10,000, who must draw their supplies from, and trade with, this place, a very great increase of trade must necessaxily follow. J. A. R. M. 4th February, 1863.

24

PAPEES EELATING TO

B.—No. 5

No. 2. THE HONOEABLE BEADEE WOOD TO THE SUPEEINTENDENT, SOUTHLAND. Colonial Secretary's Office, 5th March, 1863. Sir,— I have to acknowledge the receipt of your Honor's letter of the 4th ultimo, submitting to the favourable consideration of the Government a proposal for raising a loan of Two hundred and twenty thousand Pounds for the purpose of constructing a Railway between the Bluff, Iuvercargill and Whalcatipu. As Mr. Domett is at Taranaki, no definite reply can be now sent to your Honor, but the subject will be brought under his consideration immediately on his return. I have, <fec, Reader Wood, In the absence of Mr Domett His Honor the Superintendent, Southland.

No. 3. THE SUPERINTENDENT, SOUTHLAND, TO THE HONOEABLE THE COLONIAL SECEETABY. Superintendent's Office, Southland, 4th March, 1863. Sir,— I enclose, for your information, copies of some papers which were laid upon the table of the Provincial Council in its present Session, with reference to the Railway from the Bluff to Invercargill, and other matters connected therewith. A good deal of evidence was taken on the same subjects, in corroboration of the opinions advanced in these reports, Some sheets of the Census Tables are also enclosed. I have, &c, J. R. Menzies, Superintendent. The Honorable the Colonial Secretary, Auckland.

Enclosure to No. 3. Comparative Tables shewing the .Numbers of the Population, Acres of Land Improved, Stock, Revenue, Imports and Exports, in the years 1861 and 1862, with the Centesimal increase in tho Year 1862.

TABLE 9.

TABLE 10.

25

PROVINCIAL LOANS.

POPULATION. LAND i: :peoved. Males. Females. Totals. .861 1,107 713 1.820 .8(52 2,187 1,268 3,455 Centesimal Increase 98 ! 78 90 Acres Fenced in. 5,951 9,541 60 Acres under Crop. 1,092 1,871 71

Horses. Mules and Asses. Horned Cattle. Sheep. Goats. Pigs. Poultry. 861 .862 Centesimal Increase ... 812 1,217 50 4 9 125 9,139 11,467 25 73,970 110,231 49 j 9 86 855 555 995 80 4,163 7,524 81

B.—No. 5

TABLE 11.

TABLE 12.

Southland. The gross Customs Eevenue from 1st January, 1863, to this date, is aboTe £7,800, taken almost exclusively at the Port of Invercargill. 7th March, 1863. J. A. E. M.

No. 4. THE SUPERINTENDENT, SOUTHLAND, TO THE HONORABLE THE COLONIAL SECEETAEY. Superintendent's Office, Southland, 23rd March, 1863. Sir,— I have the honor to acknowledge the receipt of your letter of 5th instant, with reference to my communication of 4th ultimo, on the subject of a Loan of £220,000, for the prosecution of Kailway and other Public Works. My subsequent communications, enclosing various Bills and other Public Documents, will have shown that after discussion in the Provincial Council, some of the proposed plans were considerably modified, and finally the assent of His Excellency the Governor has been asked to a Loan Bill, considerably less in amount than the sum stated in my letter, an assent to which I trust there can be no hesitation to give. I have, &c, J. A. R. Menzies, Superintendent. The Honorable the Colonial Secretary, Auckland.

26

PAPERS RELATING TO

Territorial Customs Revenue. Exports. Hevenue. Three Eights. Gross. 9 months ending 1 31st Dec, 1861 j Year ending 31st } Dec, 1862 ) Centesimallncrease* 20,160 17 11 54,710 18 0 104 0 0 1,275 12 7 4,411 6 11 159 0 0 3,401 13 6 55,242 0 oj 11,763 11 9 169,000 15 0 159 0 0 130 5,131 0 0 19,471 14 0 185

ier am onnage o: esse. :ered 1 and Cleared at Invercarg: 1861 and 1862. OBI ari lours in Le year: Coastwise. From and to other Pi iets ni ]S"ew Zealand. Inwards. Outwards. Inwards. OUTWAUDS. Vessels. Tons. Vessels. Tons. Vessels. Tons. Vessels. ' Tons. Yeae. 1861 1862 78 235 5,778 12,758 80 234 6,366 18,665 35 59 9,099 20,289 27 47 8,146 14,260 Tear ending 30th Sept., 1861 ... 1862 ... Quarter ending December 31, 1862 Hontk of January, 1863 Imports. £58,014 1 0 132,325 15 0 50,439 0 0 35,725 0 0 Southland Ports. Exports. £8,504 10 0 19,673 14 0 152 0 0

B.—No. S

No. 5. THE HONORABLE THE COLONIAL SECRETAET TO THE SUPEBINTENDENT, SOUTHLAND. Colonial Secretary's Office, Auckland, Slat April, 1863. Sir,— I have to acknowledge the receipt of your Honor's letter, of the 4th ultimo, transmitting copies of some papers which were laid upon the table of the Provincial Council of Southland, with reference to the Railway from the Bluff to Invercargill, and other matters connected therewith. His Excellency's Advisers have perused these papers with much interest; and, in their opinion, they contain information quite sufficient to justify the Government in promoting, as far as lies in their power, the views of your Honor, and of the Provincial Council, with respect to the Railway in question. I have, etc., Reader Wood, In the absence of Mr. Domett. His Honor the Superintendent, Southland.

The Bluff and Invercargil Kail way Ordinance. The Debentures Ordinance. The Diversion of Eoads Ordinance. The Appropriation Ordinance.

No. 6. THE HONORABLE THE COLONIAL SECRETARY TO THE SUPERINTENDENT, SOUTHLAND. New Plymouth, lOth April, 1863. Sir,— I have the honor to inform you that the four Ordinances of the Provincial Council of Southland, named in the margin, having been laid before the Governor, His Excellency has been pleased to assent to the same. I have, <fcc, Alfred Domett. His Honor the Superintendent, Southland.

No. 7. THE HONORABLE THE COLONIAL SECRETARY TO THE SUPERINTENDENT, SOUTHLAND. New Plymouth, April 11th, 1863. Sir,— In notifying to your Honor by yesterday's mail that the assent of His Excellency the Governor had been given to the Bills of the Provincial Council of Southland relating to the proposed Railway from the Port of Invercargill, I omitted any allusion to your Honor's previous letter (the receipt of which was acknowledged by the Hon. Mr. Wood on the 5th ultimo,) on the subject of a Railway from the Port to Invercargill and Whakatipu. The assent to the Bills is, perhaps, a sufficient reply ; but I wish to state to your Honor that I consider the facts and reasoning so ably put in your Honor's letter of the 4th of February, quite conclusive as to the advisability and good policy of the undertaking projiosed by your Government and sanctioned by the allowance of the Bills in question. I have, &c, Alfred Domett. His Honor the Superintendent, Southland.

No. 8. THE SUPERINTENDENT, SOUTHLAND, TO THE HONORABLE THE COLONIAL SECRETAET. Superintendent's Office, Southland, 11th May, 1863. Sib,— I have the honor to acknowledge the receipt of your letter of the 11th April, from New Plymouth, with reference to your pi-evious notification of His Excellency's assent to the group o

27

PROVINCIAL LOANS.

B.—No. 5

Bills connected with the proposed Railway in Southland, and express my satisfaction that the views expressed in my former communications have received a favourable consideration. I have, &c, J. A. R. Menzies, Superintendent. The Honorable the Colonial Secretary, Auckland.

No. 9. THE SUPERINTENDENT, SOUTHLAND, TO THE HONOEABLE THE COLONIAL SECRETARY. Superintendent's Office, Southland, 2nd June, 1863. Sir,— I have had the honor in various communications in the course of the past summer to draw your attention to the great importance to this place of the trade with the Whakatipu District. In February last the Provincial Government proposed to the Provincial Council that a Loan should be raised for the purpose of forming a Tramway or Horse Railway northwards from this place towards Whakatipu, but the opposition was so decided that it was felt that it would be imprudent to press tin; measure through the Council by the aid of a small majority, and the Loan Bill was withdrawn, a resolution being readily agreed to at the same time that £20,000, if such a sum was available in the Treasury, would be applied to keep the North Road open throughout the winter. This road is now a source of great expenditure for a few miles out of Town, and for reasons stated in my letter of 4th February, it is obvious that until the Bluff Railway is in operation, there can be little hope of forming the road properly with broken stone. Under these circumstances, and seeing moreover that the experience of the winter is proving the anticipations expressed as to the condition of the road—a fact patent to all, I feel that it will be necessary to renew the proposal to the Council of raising a Loan to form a Railroad extending not more than thirty miles north from this. The line will be nearly a level, and inexpensive ; but prior to coming to a decision on this course, T am desirous to know whether your Government will be disposed to approve of the Province of Southland borrowing about £100,000 for this specific object. An Engineer of some experience and Contractor of great experience is confident that the line could be constructed with wooden rails, which he believes, from prior experience of such, would endure for seven years, at the cost of from £2700 to £3000 per mile, within six months from the commencement; and at even the present rate of traffic reimburse the whole cost within five years. I have, &c, J. A. R. Mekzies, Superintendent. The Honorable the Colonial Secretary, Auckland or Taranaki.

No. 10. THE HONORABLE THE COLONIAL SECRETARY TO THE SUPERINTENDENT, SOUTHLAND. Colonial Secretai-y's Office, Auckland, 27th June, 1863. Sie,— I have to acknowledge the receipt of your Honor's letter of the 2nd instant, in which you request to be informed whether the General Government will be disposed to approve of the Province of Southland borrowing about One hundred thousand Pounds (£100,000) for the purpose of forming a Railway northward from Invercargill for thirty miles. In reply, I have to inform your Honor that the Government recognise the propriety of such a Loan, and are disposed to give a bill for that purpose their favourable consideration. I have, &c, Alfred Domett. His, Honor the Superintendent, Southland.

28

PAPERS RELATING TO

B.—No. 5.

No. 11. THE HONORABLE THE COLONIAL SECBETABT TO THE SUPEBINTENDENT, SOUTHLAND. Colonial Secretary's Office, Auckland, 17th August, 1863. Sir,— With reference to your letter of the 2nd June last, on the subject of borrowing the sum of One hundred thousand Pounds (£100,000) to construct a Railway, I have to request your Honor to be good enough to furnish the Estimate of the Cost and Returns of the Tramway alluded to in the last paragraph of that letter. I have, &c, Alfeed Domett. His Honor the Superintendent, Southland.

No. 12. THE SUPEBINTENDENT, SOUTHLAND, TO THE HONOBABLE THE COLONIAL SECEETAEY. Superintendent's Office, Southland, 4th August, 1863. Sir,— I have the honor to request that you will cause the enclosed Notices to be inserted in the number next published of the New Zealand Gazette. The Plans and Drawings will be deposited in due time as notified. I have, <fcc, J. A. R. Menzies, S uperin tendent. The Honorable the Colonial Secretary.

Enclosure to No. 12. BLUFF HARBOUR AND INVERCARGILL RAILWAY AND EXTENSION. Notice is hereby given that Application will be made at the ensuing Session of the General Assembly of the Colony for leave to bring in a Bill to empower the Superintendent of the Province of Southland to take and purchase compulsorily for the purpose of the Bluff Harbour and Invercargill Railway, authorised to be constructed under and by virtue of the Bluff Harbour and Invercargill Railway Ordinance, 1863," of the Provincial Council of the said Province of Southland, certain Lands lying and being within the line of the said Railway, and the limits of deviation thereof: And also to authorise the said Superintendent to make and maintain extensions of the said Railway as follows, that is to say :— 1. An Extension leaving the present line of Railway at a distance of four chains Northwest from the intersection with the Eastern Boundary of Section 17, Block 7, Campbelltown District, and skirting the line of Beach with a Radius of forty chains, will be carried along it, parallel to and in close proximity with the line shown on the Campbelltown Plan as the exterior Boundary of Nore Street, to a point opjwsite the North-west Corner of Block No. 5, Canipbelltown, from which point it will be continued with a radius of forty chains to a point opposite the North-east corner of Block No 4, from which point it will be continued along the beach, parallel to, and in close proximity with, the line shown as the exterior Boundary of Gore Street to the termination of this extension at the line shown on the Campbelltown Plan as Palmer's Boundary. On this extension there will be one gradient only, descending at an inclination not exceeding that of 1 vertical to 150 horizontal, to the level of four feet above the level of High Water, Spring Tides. 2. An extension leaving the present line of Railway twenty chains South of the Southern Town Belt, and entering Annan Street by reverse curves of forty chains radius will be continued down the centre of that Street, and crossing Crinan, Ettrick, Tweed, and Findhorn Streets on the level, will be continued in the Reserve distinguished on the Town Plans as the Public Esplanade, to the Site of the proposed Goods Station in that Reserve, at the back of the Government Buildings in Dee Street. There will be no gradients in this extension. And Notice is hereby further given that Copies of the said Bill will be deposited in the Private Bill Office in pursuance of the Standing Orders of the General Assembly of New Zealand relative to Private Bills, within Fourteen Days from the commencement of the said Session.

29

PROVINCIAL LOANS.

B.—No. 5

And further that the Plans, Selections and Books of Reference relating to so much of the Land proposed to be taken for the said undertaking as are Crown Lands and Tidal Lands, will be deposited before the commencement of the said Session in the Office of the Colonial Secretary of the Colony, and that the plans, Sections and Books of Reference relating to other Lands proposed to be taken for the said undertaking will be deposited in the Office of the Registrar of Deeds at Invercargill in the said Province of Southland within twenty days from this date. J. A. R. Menzies, Superintendent. Dated at Invercargill aforesaid, this ) fifth day of August, 1863. /

No. 13. THE HONORABLE THE COLONIAL SECRETARY TO THE SUPERINTENDENT, SOUTHLAND. Colonial Secretary's Office, Auckland, 22nd August, 18G3. Sir,— I have the honor to acknowledge the receipt of your Letter of 4th August, and in reply, to inform your Honor that the notice forwarded therein respecting the Bluff Harbour and Invercargill Railway and Extension has, in accordance with your request, been published in the New Zealand Gazette. I have, &c, Alfred Domett. His Honor the Superintendent, Southland.

No. 14. THE SUPERINTENDENT, SOUTHLAND, TO THE HONORABLE THE COLONIAL SECRETAST. Superintendent's Office, Southland, 13th August, 1863. Sir,— I have the honor to enclose a Notice in reference to the Bluff Harbour and Invercargill Railway, extracted from the Southland Provincial Government Gazette noted in the margin, with the request that you will be good enough to cause the same to be published in the New Zealand Government Gazette. I have, &c, J. A. R. Menzies, Sujierintendent The Honorable the Colonial Secretary.

30

PAPERS RELATING TO PROVINCIAL LOANS.