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The principal proposals were— (1) To redistribute the town and suburban lands by means of reselection according to the respective original orders of choice, with the exception of orders representing unsold sections : (2) To include as suburban some lands not hitherto laid out as such : (3) To permit persons who have improved their suburban sections to take in contiguity thereto their rural sections : (4) To suppress or postpone the unsold orders of choice with regard to rural lands. (') These proposals, which had the effect of remodelling the whole scheme of the Nelson settlement, were adopted by the Company and carried into efiect.( 2 ) It may be mentioned that the revised scheme was rendered possible, and was certainly desirable, in view of the fact that under one-half of the sections offered for sale in England were actually disposed of at that time. J. W. Cowell in his report to Earl Grey of the 23rd November, 1847, stated that the Company sold 442 properties on allotments to 315 purchasers, of whom eighty, being proprietors among them of 109 properties, proceeded to the settlement at different times. Thus about one-quarter of the purchasers became actual colonists, and upon them depended the foundations of the social scheme of Nelson. The Company emigrated 3,100 souls of the labouring class, of whom about 920 were male adults, and these were to co-operate as labourers and receivers of wages with the eighty colonists, being at the rate of eleven adult male labourers to each colonist.( 3 ) Mr.-Cowell expressed the opinion that there was, in the Waimea Valley, quite enough land, both agricultural and pastoral, for the profitable engagement of 80 settlers and 920 adult labourers, had that land been properly classified and sold in allotments of different extents according to its varying capabilities and at prices corresponding and appropriate^ 4 ) In the report of the committee appointed by the Nelson land-purchasers and agents to submit proposals for remodelling the Nelson scheme (published in the Nelson Examiner, 2>/l/il) there is a reference to the Native reserves :—• " One subject arising out of our proposed plan, but not coming strictly, perhaps, within the scope of our own duties, we yet consider it our duty to make a few remarks upon. We allude to the Native reserves. With respect to the rural sections, it is understood that the Governor, in making the large reserves he has for the Natives at Wairau, has released the Company from laying out and choosing the 100 rural sections according to the original scheme ; but in the case of the town and suburban sections the effect of our proposal would be to allot a much larger proportion than one-tenth of the land actually sold by the Natives. How far, now that the Crown has taken these reserves into its hands, any alteration in them would be sanctioned is a question ; but we would suggest a memorial being addressed to the Governor, with a view to limiting the number of town and suburban reserves to one-tenth of the land actually sold, so as to throw open the remainder for present choice."( 6 ) In compliance with the proposition that the Governor be asked to consent to a reduction of the number of Native reserves, Lieutenant-Governor Eyre, in a letter to Colonel Wakefield acknowledging receipt of correspondence, stated, — " I have no hesitation in assuring you, on behalf of the local Government, that they will be ready to allow the Native reserves to be subjected to the same conditions as the sections of the settlers, and to agree that only such of them be retained as will be proportioned to the altered extent of the Nelson settlement at the rate originally reserved."( 6 ) The Lieutenant-Governor's provisional consent was confirmed by the Governor-in-Chief (Governor Grey), who expressed his approval of the proposal that the Native reserves of Nelson should be subject to the same conditions as the sections of settlers with reference to the arrangements contemplated for the reduction and concentration of that township."( 7 ) The use of the word " township " in the private secretary's letter led to some confusion, and Mr. Fox, the Resident Agent, addressed a letter to the Superintendent of Nelson, inquiring whether His Excellency understood that the application was intended to extend to suburban sections (which it was), and whether his assent was intended to go so far.( 8 ) No reply to this inquiry is on record, but subsequent events showed that the reduction was not extended to the suburban sections and that only forty-seven town sections were surrendered. On the 17th March, 1848, the Superintendent of Nelson advis'ed the Colonial Secretary that he had withdrawn the requisite number of town allotments (forty-seven), retaining those with the frontages or that were in localities where they were, or likely to become, most valuable. He further stated that he was instructed by the Governor-in-Chief to exchange a Native reserve (No. 203) for a European section (No. 733), to enable the Nelson School Committee to enlarge their premises, which exchange had accordingly been made.( 9 ) The following is the list of sections surrendered on behalf of the Native Trust: Nos. 20, 21, 46, 47, 191, 194, 253, 256, 303, 382, 387, 529, 551, 561, 575, 608, 625, 626, 650, 706, 718, 722, 768, 777, 778, 784, 797, 798, 828, 831, 855, 858, 860, 897, 926, 939, 941, 943, 945, 951, 953, 954, 956, 1051, 1084, 1088,1091: Total, 47.( 10 )

f 1 ) Enclosure 4, J. S. Tytler to Earl Grey, 19/3/51 : New Zealand Company, 1851-2—Papers relating to surrender of charter, presented to British Parliament, 22/7/51. ( 2 ) J. S. Tytler to Earl Grey, 19/3/51 : Ibid. (Tytler was the agent in the United Kingdom for the Nelson Board of Trustees.) ( 3 ) J. W. Cowell to Earl Grey, 23/11/47 : Correspondence re New Zealand Company; ordered to be printed, 1/7/52. (British Parliament.) Mr. Cowell was the Commissioner appointed by the British Government in 1846 to superintend the affairs of the Company. ( 4 ) Ibid., ( 5 ) Enclosure 4, Tytler to Earl Grey, 19/3/51. ( 6 ) Lieut.-Governor Eyre to Colonel Wakefield, 25/10/47 : Maekay's Compendium. Vol. 2, p. 272. ( 7 ) Lieut.-Governor to Colonel Wakefield, 21/1/48 : Maekay's Compendium, Vol. 2, p. 273. ( 8 ) William Fox to the Superintendent of Nelson, 5/2/48 : Ibid. ('■>) Superintendent of Nelson to Colonial Secretary, 17/3/48 : Maekay's Compendium, Vol. 2, p. 274. (' °) Ibid.

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