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being increased it will be necessary to decrease it, unless a portion of the General charge# especially those'on account of the part-maintenances of Hospitals and other aboriginal expenses not included in the civil List, should be made a charge on the General Land Fund of the Colony. On reference to the Estimates it will be found, that the sum of £2,223 15s. has been included for the land purchase Department, It was proposed to increase the cost of this Department considerably. At present, however, nothing can be gained by unusual exertions on the part of the Government to hasten the extinguishment of the Aboriginal Titles to land. The native mind is disturbed by the extent of territory which has lately been added to the Crown Demesne, and the Commissioner is of opinion _ that these feelings of alarm should be allowed to subside by abstaining for a time from active negociations. A portion of the purchase money for native lands, partly situated in the Province of Canterbury and obtained by the Government in the month of August, 1853, equivalent to that portion of the lands belonging to the Province of Canterbury, is ultimately to be paid from the Land Fund of the Province of Canterbury into the Land Fund Chest at Nelson. I propose at once adjusting this claim out of the large proceeds of Land Sales now lying in the General Treasury at Canterbury, and to devote the sum payable into the Nelson Chest in part payment of the expense of completing the extinction of the Native Titles to lands in the Province of Nelson. The contributions towards the expence of the "Nelson" steamer, which have been guaranteed by the Provincial Governments, will be placed on the Supplementary Estimates as soon as the House has signified its wish that the amount should be defrayed out of the General Funds of the Colony. I have called upon the Commissioner of Crown Lands, at Wellington, to furnish a full report on the arrangements made in concurrence with the New Zealand Company's Agent, for the purchase of Scott's grant, by which Debentures for the sum of £3675 165., bearing interest at the rate of eight per cent., have been issued to the Trustees of Scott's Estate. It having been left for future adjustment whether the Debentures should be a charge on the Colonial Revenues of New Zealand, or form a deduction from the New Zealand Company's Debt. The interest of these Debentures is borne on the estimates ; and I am of opinion that until the question of debt is settled, it should be defrayed out of the Land Fund of the Province of Wellington. A Despatch from the Secretary of State, dated 29th December, 1853, will be laid on the table of the House, together with one from Sir George Grey, in which his Excellency reported to the Home Government that in pursuance of instructions conveyed by Lord Grey in his Despatch of the 19tli of March, "1851, he had incurred an Expenditure of £10520 18s. 11 d., on account of the fulfilment of the contracts of the New Zealand Company towards the Wellington settlers ; and that he had called upon the Officer in charge of the Military Chest to advance to the Colonial Treasurer the sum of £7620 9s. Bd. part of that amount. On reference to the Secretary of State's Despatch it will be seen that Her Majesty's Government disown any liability on account of the advance of £7620 9s. Bd., and has directed, that one-sixth of the Land Revenue which may have accrued in the several New Zealand Company's Settlements, since the date of Sir George Grey's Despatch, and which may not have been absorbed by their current expenses, should be applied to the reinbursement of the Commissariat Chest for this advance. There has also been laid on the table of the House a copy of the Despatch of the Secretary of State, enquiring whether any further payments have been made to the the Military Chest, in reimbursement of the advances which have been made by Her Majesty's Government, on account of the New Zealand Fencibles. The expenditure on account of this service was incurred principally for the purpose of reducing the Military expenditure in the Colony, and at the same" time of benefitting the Colony by giving an increased value to the Crown Lands in the neighbourhood of the Pensioner Settlements. A demand amounting to £6113 ss. Bd, made upon the Colonial Treasury has been discharged, as being the portion of the claim which is fairly chargeable for Immigration purposes, and therefore the only claim to be made on the Revenues of the Colony for the increased value given to land in the neighbourhood of the Pensioner Settlements. R. H. Wyutaed.