I.—B

10

Officers of the Crown have changed their opinion ; for now we are told that the moneys since advanced under similar circumstances are not likely to be recovered. Bat-aew Eeverting agaia4e noio to the part at which I digressed, in dealing with what occurred in the Public Accounts Committee, aad I am now going to refer to wkat-eaa something that is not to be discovered only be-diseevered by hunting up the archives of the Government, but to something which was in priat-altaeuga print and 'which circulated but only for the information of those gentlemen who composed the Public Accounts Committee. It-was 1 refer to a letter, dated the 12th July, 1888, from the Agent-General to the Premier Colonial Treasurer, and, although we haw no previous correspondence was set out, the letter clearly indicates that it was called for forth by some communication from the Premier Colonial Treasurer to the Agent-General,—that the letter was probably written upon the lines indicated in a communication el from the Premier Colonial Treasurer. In that letter the Agent-General tells the Premier that "the opinion generally" in London is that default by the New Plymouth Harbour Board would have no more than " a tr-aasitory transient effect." Eemember that it was known that this Board was in difficulties. The Colonial Treasurer had himself announced the fact, and his announcement is reported in Hansard ia for 1888. And remember, too, that the payment of their the Board's interest would not fall due until a week more than a week after the conversion had boon was to have been effected. The letter goes on to say this—and I will use its very words themselves : It advises, that they with reference to the Board, that the colony should "tide over the next dividend somehow, as a pure matter of expediency." fe-tho oolony and advanoo tho monoyi Here is our high- wiaded toned AgentGeneral putting it on the ground of " pure " expediency that the Government should do something to deceive the moneyed public in London ! What are we coming to ? This is the Government of sound finance. This is the Government of high morality. This is the Government of specious pruaasesr faultless promise. It was.bad enough for the Agent-General to propound such a thing, but we have the Colonial Treasurer, ivho is also Premier, iv additiea adopting ais-epiaiea that advice, printing this letter, circulating amongst the Public Accounts Committee, and getting something from that Committee which, according to the Minister the other day, warranted the Treasurer in advancing this money. That there was any warrant, any authority, for doing so, no one who considers the matter will for a moment dare to sayr assert. What is a Committee but a few gentlemen delegated by the House to inquire into and report on any matter, and who, until this House has decided, they have no weight or authority ? And yet in that Committee, if I am correctly informed, by some juggle—by some one being gette prepese proposing that this money should not be advanced, and then by " the previous question " being carried —the Colonial Treasurer takes upon himself to advance the meaey cash to the NewPlymouth Harbour Board. That is what occurred. But that the loss of the money is not the most serious part of the matter. We, perhaps, can afford to lose this £5,000, but I doubt whether we can afford to lose the good name of the colony in connection with its finance. What was this letter written for but to enable the Colonial Treasurer to write Home to the Agent-General to promulgate on the Stock Exchange that tho next payment

which was circulated but only for the information of those gentlemen who composed the Public Accounts Committee. I refer to a letter, dated the 12th July, 1888P, from the Agent-General to the Colonial Treasurer, aad Although no previous correspondence was is set out, the letter clearly indicates that it was called forth by seme a communication from the Colonial Treasurer to the Agent-General,—that the letter was probably written upon the lines indicated in a communication from the Colonial Treasurer. In that letter the Agent-General tells the Colonial Treasurer that " the opinion generally" in London is that the default by the New Plymouth Harbour Board would have no more than " a transient effect." Eemember that it was known that this Board was in difficulties. The Colonial Treasurer had himself announced the fact, and his announcement is reported iv Hansard for 1888. And remember, too, that the payment of the Board's interest would not fall due until more than a week after the conversion was to have been effected. The letter goes on to say this —and I will use the very words themselves : It advises, with reference to the Board, that the colony should " tide over the next dividend somehow, as a pure matter of expediency." Here is our hightoned Agent-General putting it on the ground of " pure" expediency that the Government should do something to deceive the moneyed public in London ! What are we coming to ? Thin is Is this the Government of sound finance ? Is this the Government of high morality ? Is this the Government of faultless promise? It was bad enough for the Agent-General to propound such a thing, but wediave ivorse for the Colonial Treasurer, who is also Premier, to adoptiag that advice, printiag this letter, circulatiage it amongst the Public Accounts Committee, and gettiag something from that Committee which, according to the Minister the other day, warranted the Treasurer in advancing tlwMaeaey-r £4,992. That there was any warrant, any authority, for doing so, no one who considers the matter for a moment will dare to assert. What is a Committee but a few gentlemen delegated by the House to inquire into and report on aay a matter, and whe whose recommendations can, until this House has decided? adopted them, have no weight or authority ? And yet in that Committee, if I am correctly informed, by some juggle—by some one's feehig proposiagiiww that this money should not be advanced and then by " the previous question " being carried —the Colonial Treasurer takes took upon himself to advance the cash to the New Plymouth Harbour Board. That is what occurred. Bat The leaa loss of the money is not the most serious part of the matter. We, perhaps, can afford to lose this £5,000, but I doubt whether we can afford to lose the good name of the colony in connection with its finance. What was this letter written for but to enable the Colonial Treasurer to write Home to the Agent-General to promulgate on the Stock Exchange that the next payment by the New Plymouth Harbour Board would be duly made ? We thea thus see the Agent-General of thise colony fussing about London and assuring the people that the New Plymouth Harbour Board is all right! Dealing now with the con-version-loan in connection with which they this advance to the New Plymouth Harbour Board was made, we / find that the Loan Agents of the colony in Dunedin advertised for tenders for £2,700,000. The exact sum required for meeting the two loans was £2,595,300, so that the loan