B.—No. 3a.

In carrying out the wishes of the Cabinet with respect to an examination into the Financial position of the Province of Southland, its embarrasments, and its prospects, I did not understand that it was desired that the examination of accounts uhould extend beyond a reasonably approximate estimate of its Assets and Liabilities, because a more complete examination would rather have assumed the form of an Axidit, which was not necessary, and for which I was not prepared. It will be seen by a perusal of the accompanying documents that the sums due by the Provincial Government, as rendered by the Bank of Otago, the Bank of New South Wales, and the Sub-Treasurer at Invercargill, (respectively numbered 1, 2, and 3), do not exactly correspond with those rendered by the Provincial Treasurer, (numbered! and 5) ; which latter were necessarily drawn up in haste in order to give a rough approximation only. 1 have adhered in my statements to the former ; accepting, however, as correct, the amount of" outstanding claims'' legally chargeable on the Eevenue of the Province, as represented by the Accountant of the Provincial Government on the 31st Jamiary, 1805. (No. 4.) The approximate total of these Liabilities amounts to £403,530 13s. 3d. as may be seen by the annexed statemement marked A. Attached to this is another statement marked B, indicating the probable Assets of the Province on the same date amounting to £27,231 Bs. Gd., or, including Immigrants Bills overdue, to the sum of £34,865 Bs. 6d. Little reliance in regard to immediate realizations can be placed iipon the Immigrant Bill accounts ; the London Agent's account is probably dissipated by this time, and from the Town Board it will be very difficult to realize any great amount at the present moment.

A. Approximate Liabilities on the 31st January, 1865.

REPORT BY THE HON. MAJOR RICHARDSON ON THE FINANCIAL CONDITION OF THE PROVINCE OF SOUTHLAND. REPORT.

Advance. Interest. Total. lank of Otago, Oreti Railway acct. to 81st January, 1865 (1) Do. Ordinary Rove., do., do. Do. Promissory Note, do., do. Do. Greville&'Whitings'do.,do. lank of N.S. Wales, Railway Loan acct. to 31st January, 1865 (2) ... Do. Provl. Treasrs. do., do. Do. do. No. 2, do., do. Do. Campbell & Robertson, do., do. Do. Manning and Shelton, do., do. Do. Harnett & Co., do., do. reneral Go vert., Advance on Revenue to 18th Feb. 1865 (3) lutstanding claims, to 31 Jan. 1865 (3) £ s. d. 48,998 13 11 72,475 9 7 10,000 0 -0 3,227 5 5 £ s. d3136 13 5 1635 15 11 936 17 3 169 11 1 £ B. d. 143,580 G 7 151,579 1 0 25,565 11 9 6,037 19 3 4276 3 10 725 13 0 171 7 S 2,300 0 0 800 0 0 450 0 0 191,905 1G 6 22,597 0 2 1005 6 3 23,602 6 41,142 8 5 9 403,530 13 8 £ 403,530 13 8