E.—No. 2A.
financial question under the consideration of his colleagues, and the Government had determined to advise His Excellency on the subject at tho time it became incumbent on them, for other reasons, to resign the offices which they held. The Colonial Treasurer thinks it right that His Excellency should be informed that Ministers would have advised the reduction of all War Expenditure, except eo much as is absolutely indispensable. Treasury, Auckland, sth October, 186-1. Eeader Wood.
No. 2. MEMORANDUM by tho Governor. The Governor requests his Responsible Adviser.* io be so good as to inform him of the naturs and extent of the war expenditure they would lave advis_dhm to reduce. He Irus s, af.or tho Memorandum he has just received from the Colonial Treasurer on the subject, he will be furnished with tho information. October sth, 1861. G. Grey.
No. 3. MEMORANDUM by Mijustekp. Immediately after the arrival of the Colonial Treasurer from England; Ministers carefully considered the financial position of the Colony. It was obvious that some reduction of expendilure must be oTeetel, aid there wcrs two branches that could be operated on, one relating to the Military Settlers and t..e other o.nbraL-ing the various Government establishments and military forces now on foot. The first, involving an amount equal to about three-fourths of the whole military expenditure, was by far tho most important, if possible, to deal with, and the result arrived at by Ministers waa that, if His Excellency could be induced to bring under the New Zealand Settlements Act the land in our possession in Waikato, most of the military settlers might be located within a few weeks, and at the same time an important source of revenue at once made available, namely, the proceeds of the sale of the surplus land. In this way Ministers believed that a saving afier the rate of about £250,000 per annum might be effected, and at least £LOO,OOO worth of land sold by January next. Witl respect to the other branch of expenditure, it appeared practicable that some saving could be effected at once, and the details were on the point of being gone into when Ministers resigned. No definite conclusion could of course have been come to without first conferring wiih the Governor, and the General being consulted on the subject, but it would principally it seems have rested with His Excellency, as it appears from an extract from the General's letter quoted by His Excellency, in his Memorandum of yesterday's date, that the General is equally uninformed as Ministers as to his Excellency's resolution in reference to operations in the South. Ministers have made this statement at his Excellency's request, with an earnest desire to afford him all the assistance in their power, but not without great misgivings aB to the proprie'y of tho course they have adopted, seeing that constitutionally they cannot now be considered as His Excellency's Responsible Advisers. Auckland, Oth October, 1864. Fred. Whitaker.
No. 4. MEMORANDUM by Ministers. On the 80th of September, Ministers forwarded to His Excellency their resignations, but up to the present time His Excellency has not been pleased to give them any reply. Minisieis believo that, under ordinary circumstances, it would be irregular and improper for them to deal with any questions of political importance ; and they certainly would not do so, but at the present time there are questions involving serious consequences, upon which some immediato action is required. Unless, therefore, His Excellency can at once accept their resignations, Ministers cannot permit any feelings of false delicacy to stand in the way of stating what, in their opinion, it is indispensable should be done without any delay whatever, as, in their opinion, the vital interests of the Colony have a right to precedence over personal considerations. Ministers deem it indispensable — 1. That, under existing circumstances, and having regard to the present state of the Colonial Finances, all war expenditure necessarily to be paid from Colonial sources should be stopped, except such as is requisite to fulfil existing engagements. 2. That the General Assombly should be called to meet at a date not laLer than the 15th of November next. Auckland, Bth October, 1861. Fred. Wkitakeb.
No. 5. MEMORANDUM by the Governor. The Governor begs to thank Ministers for their Memorandum, which he received a,t a late hour on the evening of the Bth instant, in which they tender him their advice as to what should be dono at tho present time. When the Governor received this advice he was preparing a Memorandum addressed to his Responsible Advisers for the purpose of informing them that, after a careful consideration of the present and prospective financial condition of the Colony, in as far as he could form an opinion on those subjects, from the papers in reference to them, which Ministers had laid before him (tne last of which ouly reached him upon the 7th inst.), he thought it would not be possible for him to form a new
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RESIGNATION OF MINISTERS, &c.