E.-No. la.

10

FINANCIAL STATEMENT.

of State for the Colonies. The amount of these counter claim It must be confessed, however, that the whole affair has, from is as follows, viz.: — the very first, being surrounded with great and special diffi- £ s. d. culties, and I very much doubt whether any other administrators Colonial Debentures sold at par ... 500,000 0 0 could have effected more. Much, indeed, has been achieved; Military Roads 102,875 9 10 and had the original calculations been less sanguine, the Proportion of River Transport Charges 97,329 011 subsequent disappointment would have proportionately Miscellaneous 206,652 411 diminished. Nevertheless, on large grounds of policy, the Government has, after a very careful consideration of this £906,856 15 8 subject, decided to propose to the Committee that the conIt will now appear that, on the supposition that the sums fiscated lands should, with certain limited exceptions, and comprising that counter claim will not be much, if at all, affected subject to conditions as to fulfilment of engagements with by examination in the Imperial Treasury department, there will Natives and others, be handed over as speedily as possible to remain due by the Imperial Government, on a final adjustment, the respective Provinces for their beneficial administration, the sum of £147,235 Is. Id., and here the question would rest, and free of all claims for past special expenditure. In a coloviewed as a mere matter of account; but, as the Colonial Com- nizing point of view, I believe this proposal will be hailed with missioner has very properly observed, there are claims which the satisfaction by the Provinces of the North Island. In a financial Colony may justly prefer, and which lam sure Great Britain point of view, lam not going to pretend (hat any great boon will not be slow to recognize, arising out of the peculiar con- is being proffered. There are some who are sufficiently neetion which existed between the Crown, the Colony, and the sanguine to believe that a considerable revenue will be derived Native race, at the time when these liabilities were incurred, from this territory. For my own part, I candidly confess that, The nature and extent of these liabilities are dealt with in the judging from the past (during which the cost has far exceeded report of my honorable friend, which I commend to the atten- the proceeds), I cannot arrive at the same conclusion. Ncvertion of the Committee as a monument of patient and impartial theless, the colonizing opportunities which will be thus afforded research. to the Provinces, cannot, I think, be valued too highly. A Bill But I must be allowed to draw attention to the fact that the on this subject will accordingly be introduced to give effect to Colony has expended and become charged with in aid of the this proposal. suppression of the rebellion against the sovereignty of the I cannot however dismiss the consideration of this and the Crown, the following sums : — two preceding topics without adverting to the policy of 185G ; £ s. d. and I particularly ask those who may be inclined to regard The Colony has actually expended 2,725,660 18 8 our proposals as over favourable to the North to give their Is charged by the Imperial attention for a short time. In 1856 the Colony adopted the Treasury with £1,304,963 17 1 policy of localizing the land revenues, and declined to reserve for itself even such a proportion of that revenue as might be £4,030,624 15 9 regarded as a royalty. In this respect, no less than in others, It is a duty incumbent on me that I should make this public there is a fundamental difference between the financial policy statement, whilst lat the same time express a belief on the part adopted in the United States of America and that pursued of New Zealand that the Imperial Government will, upon a ™ ew Zealand. In America, not only do they regard the careful review of the whole circumstances, extend that con- customs duties as general revenue (and if any tax is of a sideration to the Colony which would materially aid it in the general character it is certainly customs duties) but also struggle it is now making to get out of the embarrassments territorial revenue ; whereas in New Zealand we have localized created by the war. customs revenue as well as territorial revenue. As this is a I approach another disagreeable sequence of the loan of 1863. very interesting subject I will cite before the Committee a It was within the original scope of the policy of 1863 to nigh authority ; I quote from Kent on American Law. "By charge certain expenditure locally. This intention was carried th° Act of Congress of September 4th, 1841, c. 16, ten per out by the Legislature of 1865 and 1866. During the past cent- °f tne B*4 proceeds of the sales of the public lands financial year it was incumbent on the Treasurer to recoup l° be made- subsequent to the 31st December, 1841, within certain interest and sinking funds from the Provinces of the tnc limits of the States of Ohio, Indiana, Illinois, Alabama, North Island. I regret to have to inform the Committee that Missouri, Mississippi, Lousiana, Arkansas, and Micliigan, are I have to a great extent failed in my endeavours to enforce to be paid to those states respectively ; and the residue of these recoveries. I can also assure the Committee that this these net proceeds, subject to certain provisos, divided halffailure did not arise from any want of efforts on my part, yearly among the twenty-six states of the Union, and the The Provinces of Auckland, Taranaki, and Hawke's Bay, pleaded district of Columbia, and the territories of Winseonsin, lowa, their inability to make the payments ; and the Government, an(l Florida, according to their respective federal representative not being prepared to drive those Provinces into embarrass- population, as ascertained by the last census, to be applied by ment, decided not to enforce the claim until Parliament the Legislatures of the said states to such purposes as they should have considered the question. I have now to state should direct." that it is one of the proposals of the Government to relieve the Hut in order to ascertain what has been the financial effect Provinces of the North Island from the payment of this special of the policy of 1856, I refer to a very interesting comparative debt. I am ready to admit that, so far as the Province of Return (No. VI) of the Imports and Exports, and Territorial Wellington is concerned, the reasons why she should be and Ordinary Revenues of the North and Middle Islands released from this allocated debt are not so cogent as they r6spectively. There is not time now to do more than just, are in tho case of the other three Provinces. The Govern- glance at this statement. But when I inform the Committee ment, however, believes that the Committee would not be that the figures show that from the year 1856-7 to the 30th disposed to mako any exception (and the amount is com- June last, the Middle Island has received as territorial revenues paratively inconsiderable) ; if, that is to say, it should approve in excess of that of the North Island (I repeat the words, "in of the general scope of the financial policy of the Government excess of that of the North Island,") £3,154,635, the full which is intended to be one of final provincial adjustments, effect of that policy is perceived; and the South would do Thero still remains one more subject to bring under the well to recollect these figures when proposals are made to consideration of the Committee. It is also a legacy of the hand over certain territories (all encumbered as they are) to policy of 1863. I refer to the confiscated lands. Great expee- the Provinces of the North Island, and to relieve those tations were once entertained, but these have been disap- Provinces of the charges of certain allocated debts arising pointed. I wish I could say that the administration had been out of the transactions under the loan of 1863; and also altogether satisfactory, cither to the Colony or the Government, when it is proposed to raise the full amount of three millions