D.—No. L

Department is obviously to facilitate the administration of the Gold Fields in the interests of those connected with them; and the question whether the expense of creating the materials employed in that department was provided for out of the special revenues of the Gold Fields, or (as you seem to think) out of the Provincial Revenues of Otago, can only be determined upon a careful comparison of the respective sums received into and paid out of the Provincial Chest on account of the Gold Fields in that Province. The Government is not aware whether any distinct statement has been produced on which a comparison could be made ; if it has not, it is evident that it is a necessary preliminary to the determination of any claim preferred by the Province for reimbursement of its alleged outlays on the Department of Gold Fields, and unless such a statement shows that the Province has expended on the administration of the Gold Fields more than it has received, no valid claim can be made for the repayment of the materials necessary to their proper administration, especially when the very large increase to the Customs and other receipts consequent on the working of the Gold Fields within the Province is taken into consideration. Pending the determination of this question of expense, it is obvious that the effect of withholding the materials of the Gold Fields Department from the only officers legally competent to make use of them is calculated to be productive of great inconvenience and loss to the miners and others employed in the Gold Felds, by whom alone the development of the Gold Fields and the large revenues drawn from them are created, and to entail the additional expenditure which your Honor seems to deprecate. For these consequences your Honor, by refusing to deliver up documents of which you are not legally in possession, and in respect of which you prefer only a possible pecuniary claim, renders yourself wholly responsible, while your conduct in this matter conclusively shows the inadvisability of any of the powers of the Governor being delegated to a Superintendent, if the successor of such Superintendent is to refuse to give up the public property which, in consequence of such delegation was in the temporary possession of his predecessor. I have, &c., His Honor the Superintendent, Otago. E. W. Staitoed.

No. 31. Copy of a Letter from the Supebintendent, Otago, to the Hon. the Colonial Seceetaet. (No. 7536-1.) Sic,— Superintendent's Office, Dunedin, 20th May, 1867. I have the honor to inform you that at an early date a vote of the whole Province will be taken on the question of whether the Gold Fields Management should be vested in the Provincial or General Government. If you desire that the General Government should be represented by Scrutineers at the various Polling-booths I have to request that you will immediately appoint them and send me. down their names, when I shall have them duly gazetted. Their payment will have to be provided by the General Government. I have, &c., James Macandeew, The Hon. the Colonial Secretary, Wellington. Superintendent.

No. 32. Copy of a Letter from the Hon. E. W. Statfoed to the Supeeintendent, Otago. (No. 251.) Sic,— Colonial Secretary's Office, Wellington, 23rd May, 1867. I have the honor to acknowledge the recipt of your letters of the numbers and dates quoted in the margin. I have, &c, His Honor the Superintendent, Otago. E. W. Staitoed.

No. 370-141, May 17, 1867No. 7536, May 20,1867. May 17.

No. 33. Copy of a Letter from the Superintendent, Otago, to the Superintendent, Wellington. (No. 7GGO-2.) Province of Otago, New Zealand, Sic, — Superintendent's Office, Dunedin, 15th June, 1867. I have to acknowledge the receipt of your letter of date as per margin respecting the transfer of certain Provincial Government property on the Gold Fields to the General Government. I note your remarks generally upon this matter, but seeing that the whole question is now materially changed, it does not seem to me necessary to reply to them. At the date of my former letter the control of the Gold Fields remained with His Excellency the Governor in Council. You appear to be under the impression that notwithstanding the fact of the Governor having delegated his powers to Mr. Stafford His Excellency still retains them. This is obviously incorrect, and equally obvious is it that Mr. Stafford being the delegate I have no one to treat with on the basis of your letter. As to the reimbursement to the Province on delivering up the Provincial property, as referred to by you, I shall be sorry to fix a personal liability upon Mr. Stafford, the delegate, and in no other way could any security be given to me, for what even you yourself admit to be a contingent liability. The Gold Fields Act did not intend that the Superintendent should hand over valuable property

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CASE OF MR. MACANDREW.