CESSION OF THE MURIHIKU BLOCK.

3

C—No. 3

kept; and I have been content that they should do so, rather than that the distrust should fall upon the Government. But in the last two months facts have come to my knowledge which have induced me to bestow the most careful attention on the present disposition of the Natives on the subject of the sale. The resident Europeans (from thirty to forty families) tired of waiting for the provision they have been led to expect from Government, have lately been using their utmost endeavours to dissuade the Natives from completing the cession to Her Majesty: they have dwelt on the rental for runs which they have offered to the Maoris, on the price at which land is sold by the Govern-, ment, in contrast to that at which it is bought; offering to purchase at the former rate from the Maoris; on the hardship of Customs' duties, and of the prohibition of powder and spirits, both of which (especially the latter) they freely supply to the Maoris. But the chief obstacles thus arising were the squatting, and the extensive increase (£7,C00 to £9,000) in the Natives' demand for the extinction of their title. On the arrival here with titis of Topi, Paitu and the rest of the Natives interested, I found them resolved, as they said, "if the Governor would not buy the land, to sell it to those who would, and certainly to let the pasturage, for which some settlers were already in treaty with them." I therefore carefully studied the Native Land Purchase Ordinance, and found that more than one feasible mode existed of evading the provisions of that Ordinance. I will mention one which was afterwards confidently stated to me by an intended squatter as quite safe from the penalties of that Ordinance, a proposition to which I of course would not assent: that the Natives should nominally be graziers, taking charge of the settlers' cattle, employing the stockowners and their servants as shepherds and stockmen. Determined to try the Ordinance to the utmost rather than permit so important and necessary a portion of this Province to fall into such a state as the Wairarapa, I next reviewed my means of enforcing it against the resistance of both Native and European. These would consist of such as could be spared almost constantly from a police force of six men, who would also have to do all other necessary duty in a Province as large as Van Dieman's Land. My view of the proper mode of enforcing the Ordinance in cases of recusancy, was to commence the informations at once, and repeat them at the smallest legal interval until the offender should give up in despair. But while the possibilities of evasion already alluded to shook my faith in the efficacy of this plan, the small means for carrying it into efficient practice destroyed it. I must here remark that the enormous delay of reference to you, though it would have relieved me from a serious responsibility, could not in the state of the case, be contemplated. Squatting, the evil to be warded off had already commenced in more than one place, two cargoes of stock had been landed, and two more were daily expected, so that it was necessary to decide on a line of action, and to act at once. I conceived myself to be in this dilemma. Ist. I might let matters take their course, enforcing the laws against squatting, with means so inadequate as only to irritate the offenders without suppressing the offence; reporting my proceedings to you, with a request that I might be honored with instructions, which I could hardly hope to receive in a less period than three months ; meantime the evil would have become confirmed and inerradicable, and those who obeyed the law would see the best country appropriated by those who set it at defiance; or, 2nd, I might in exercise of the power entrusted to and still vesting in me, and at my own risk exceeding it if necessary to meet demands increased by delay, —avail myself of the opportune presence in or near Otago personally or by known representatives, of all the principal native claimants, to conclude the purchase on the best terms yet practicable; and as their repeated disappointments render them suspicious of my promises on such subjects, distribute the first instalment of a thousand pounds. I should thus acquire a large and essential addition to the lands open for colonization, anel in the simplest and least expensive manner, the obstacles which, under the former course would have offered so insuperable a barrier to the progress of the colony. The chief difficulty would arise from the want of funds, and I trust that my candid explanation of the plan by which I purposed to provide these will be viewed by the Governor as some palliation of a departure from a precedent which may appear almost unpardonable in an Officer of His Excellency's Government. I proposed to devote to the purpose, a sum in my hands, amounting to almost £500 received during the current quarter for Crown Lands sold, and if I could do so without divulging the object of tho loan, to borrow on mortgage of my private property a further sum of £500. 1. The former course was safe, but with the certainty of great loss to the public by its adoption, not honourable; and I conceive that I should by its adoption, have deserved to forfeit the appointment I have the honor to hold. 2. By taking the latter I might not only forfeit my appointment, but suffer heavy pecuniary loss; yet I should feel that I had done my duty according to my best conception. I accordingly, after a week's delay, during which all I learned only made me more anxious to conclude the negotiations, assembled the Natives and ended a long and anxious debate with the signature of the deed of which a copy is enclosed in my letter of the 17th instant. By this you will see that while about to overstep the strict letter of your instructions, I have taken especial care to plant each step firmly. Thus, though the cession is already a fact, the distribution of the first instalment will only become so, on the return of Topi with the minor recipients. Whatever my own position, I have at least taken care to secure the public against loss. Whatever may be the Governor's decision upon my proposed appropriation of the Crown Land funds (for to this date I have done nothing in excess of my instruction*), I cannot too strongly