D.—No. 4.

6

CORRESPONDENCE WITH THE NEW ZEALAND

7. All of these would involve the necessity of careful selection and approval at home. Your inquiries at home will, however, enable you to ascertain if any of them, or any other plan which may be suggested to you, would be likely to eventuate in regular and extensive immigration. The same remarks apply to a modified system of assisted immigration, such as would be involved by the payment at home of a portion of the passage-money. 8. There are many ways in which it might answer the purpose of Companies or Associations to undertake immigration on a systematic scale. 9. The principles of insurance are just as applicable to the chances of the immigrant's success in a new colony as to other risks. It could be calculated with nicety that, out of every 1,000 immigrants, so many would be successful, and redeem whatever payments they contracted to make; so many unsuccessful. 10. A Company which provided passages on deferred payments to immigrants (for convenience sake I continue to call them immigrants, although to English Associations they would be emigrants) would require, besides interest, to add an amount sufficient to cover the risk of bad debt. Such a Company, if it extended its operations to the neighbouring colonies, could, by means of agents, keep such an accurate registry of the whereabouts of its debtors as to practically very much reduce its risks. It would be easy to arrange with the Company to give to it a bonus for every immigrant it landed. The bonus would have to be small, unless there was a good guarantee that the immigrant should remain —such as employment being open to him; still I do not hesitate to say that a bonus of a substantial nature would be available. If the Company were to advance the whole of the passage-money, the fact of its agreeing to trust the immigrant would be to some extent a guarantee. A larger bonus could be given if it took the shape of an annual payment, over a term of years during which the immigrant remained in the Colony. Eor instance, the Colony might well afford to pay £1 a year for seven years. With such a bonus it would be necessary for the Company to charge the immigrant but little for risk. The liability of an immigrant who brought out a family would be large ; still it would probably better suit the Company to deal with such immigrants, for there would be a minimum risk of their leaving the Colony. To guard the Company against risks from death, arrangements could be made to effect life assurances by the New Zealand Government under the Act recently passed, entitled "The Government Annuities Act, 1869," in respect of the immigrants prior to their leaving home. Instead of an annual payment, a bonus could be given at the expiration of a stated period after the immigrant arrived in the Colony. This would be the most favourable shape of bonus to the Colony. I do not refer to payments by land to a Company of the kind lam now discussing; such payments would be better suited to a Company the nature of which I proceed to describe. 11. The Company or Association last referred to would be one which went no further than lending money to immigrants, charging them for the risk. A Company which, in addition, undertook colonizing operations, would have a larger field of operation, and one with which it would very much better suit the Colony to co-operate. 12. Such a Company might invest a certain amount of capital in the Colony, and let immigrants have land on deferred payments, besides reserving to itself contiguous estates on which it would be able to employ the labour of immigrants. It could establish flax mills, saw mills, breweries, distilleries, woollen manufactories, found towns, which in time would become very valuable ; make its own land highly remunerative through the progress of the settlers, and the position and value the land would acquire ;in short, it could found special settlements. The Government might encourage a Company of this kind in various ways. It might give it a certain amount of land for every immigrant introduced, or a larger amount for every immigrant remaining in the Colony. It might, if the Company itself preferred to purchase land, give money bonuses, as previously described, either on the immigrant landing, or after a certain fixed period of residence, or by yearly payment. I need scarcely say that, in any agreement for paying a bonus either to the class of Company at present under consideration, or the class before referred to, the Government would have to be satisfied that fair terms were offered to the immigrant; in fact, that he was not subjected to exorbitant charge. It is possible to conceive, and it would be very much better, that the immigrant should participate in the bonus, whatever its nature. This could be done by a deduction off the debt of the immigrant, or by a money payment to him ; or, in case the bonus took the shape of land, the Company might arrange that part or all of the land, after a certain term, should become his —say after he had paid off his liability. Companies undertaking colonizing operations should make provision for assisting immigrants with advances to improve their lands. In the transfer of any land for special settlements, the Government would of course have to make certain conditions for the protection of public interests, and for securing the due performance of the contract. 13. When such settlements were in disturbed districts, special arrangements for self-defence would have to bo made. 14. The Government would esteem highly any proposals for special settlements which embraced, besides immigration, provision for the employment of the Maoris. This applies, of course, to the North Island ; but I wish you clearly to understand that what I have previously written applies equally to both Islands. 15. Suitable settlers from Continental countries would be highly prized. Germans especially have been found to be valuable colonists. They keep together, and readily form associations. I think you would be able to obtain advantageous offers in respect to German immigrants, and I desire to direct your attention to them. It would be well that you should be able to afford information concerning the astonishing inducements the flax industry offers. The establishment of factories to utilize the flax fibre, instead of sending it home, would be highly desirable. 16. It is not improbable that the Assembly may be favourably disposed to sanction an extensive system of railway construction, and you should endeavour to obtain proposals combining assisted immigration, the establishment c.f settlements, and the construction of railways. There will probably be a great deal of land available for the purpose, and undertakings of the kind, I am told, have