E—No. 1 Sec. 11.

I may state that, having examined the bulk of the claims on the spot, with persons having local information, and having an interest in reducing the claims within fair limits, I believe that the total sum fairly claimable exceeds £150,000. This is exclusive of deterioration in the value of property from non-occupation of land, and from general depreciation. Henry Sewell, Auckland, October 15th, 1861. Commissioner.

Enclosure 6 in No. 4. STATEMENT OF EXPENDITURE ARISING OUT OP THE NATIVE INSURRECTION, TO 29TH OCTOBER, 1861* Payments from Colonial Treasury— £ s. d. £ c. d, 1. Militia and Volunteers, Pay and Contingent Expenditure ... 13,130 10 11 2. Barracks, Blockhouses, and other Defences 11,836 18 3 3. General Expenses— Arms, Accoutrements, &c 34,015 16 0 Extra services of Royal Mail Steamers, purchase and employment of Gun-boats and other Vessels 2,764 15 9 Miscellaneous Expenses arising out of the War 7,937 0 2 Bonus to Crews of Her Majesty's Ships on the Station ... 4,000 0 0 Extra Expenses of Harbour Department at New Plymouth 3,500 0 0 52,217 11 11 Paid by means o!' sums advanced from the Commissariat Chest to the Colonial Treasury— Militia, New Plymouth, July to September 6,030 4 8 Bonus to Crews of Her Majesty's Ships ~;... 5,000 0 0 11,030 4 8 £ 88,215 5 9 Amount claimed on behalf of the Imperial Government for Expenditure from the Commissariat Chest, to 30th June, 1861 £ 104,964 19 9 R. F. Pouter, Treasury, Auckland, 30th October, 1 SGI. Assistant Treasurer.

Enclosure 7 in No. 4. EXTRACT FROM MR. CABTEIt's SPEECH IN HOUSE OF REPRESENTATIVES, JULY 4TH, 1861. One most important topic seems to me to have been entirely lost sight of in the course of this debate; that is, the probable cost of the war. My hoc friend the member for Rangitikei has noticed (me item of it; but the Government have hanily thought it worth their attention, and appear to me to be leading1 their supporters into war blindfolded. fc>ir, as men of business, we ought to know our liabilities; and as honest men, if we incur them, we must provide the ways and means of meeting them; and if we can arrive at the cost, or a fair approximation to it, we shall then be able to see how much we shall have saved the Colony if prudent negotiations secure an honourable peace. I believe it to be the duty of this House to prepare for war, but before we commit ourselves to war, we ought 10 count the cost; and I would here call the attention of Southern members in particular, who have so liberally offered to pay their quota of the expenses of the war, to a statement 1 am about to make, uliieh will give them, before they finally commit themselves, some idea of the liabilities and cost of a war now imminent. In the fiist place 1 will call the attention of the House to a message sent down to this House by His Excellency, and covering a despatch from the Duke of Newcastle, which message asks us to comply with the request contained in the Duke's despatch. This request is for payment of the usual Colonial allowance to Her Majesty's troops, men and officers, and is in addition to the £5 per man, rank and file, agreed to be paid by the Colonial Secretary, Mr. Stafford, some months ago. Now this additional demand of extra pay exceeds £ft per man per annum, but, taking it sit the lowest rate of £5, this, with the Colony's contribution of £5, makes £10 per annum: and as the dumber of troops, of all ranks, including 600 men now on their way out here, may be takeu safely at 0,000 men, we shall have G.OOO men at £10 per head, which, with the £7,000 demanded for New Plymouth Barracks, amounts for this year to £G7,000; aud I am just informed, t'iat a little account— ;i back bill—has been sent in, I believe by the Commissariat department, for about £60,000. This makes a total of £127,000 we are called upon to pay. But leaving out this arrears account of £60,000, and keeping to toy own estimate of £07,000, it will be very much increased if we have two more regiments out. Of course, as I have in the course of my remarks said, the war is an imperial one, we ought not to be called on to. pay such vast sums, —and if we are called upon we hare

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TO THE SECRETARY OF STATE.