A.—No. 2.

6

DISALLOWANCE OE PROVINCIAL BILLS.

No. 11. The Hon. W. Gisborne to His Honor D. McLean. Sir,— Colonial Secretary's Office, AVellington, 20th August, 1869. Adverting to my letter to your Honor, No. 168, of the 27th ultimo, I have to state that the Government is advised, with respect to " The Ratification of Loan Expenditure Act, 1869," that a resolution should have been passed by an absolute majority of the Provincial Council under the Provincial Audit Act before the Bill was recommended by your Honor, as it purports to indemnify for the application of moneys raised under a Loan Act to purposes other than those to which Acts of the Province had appropriated them. It appears also that no Act had authorized the expenditure of the moneys to the purposes on which they have been expended, consequently the expenditure was not authorized, and should have been made under special warrant. For the above reasons His Excellency has been advised to withhold his assent to the Bill in question. I have, &c, His Honor the Superintendent, Hawke's Bay. AY. Gisborne.