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your decision whether you think the case to be brought before you is one which ought to be treated as an exception to the rule.

The second subject to which I referred, is the settlement of the affairs of the Canterbury Association. It rarely falls to the lot of any legislative body to deal with a question so full of difficulty and delicacy as that I am alluding to. Still more rarely does it follow that such matters can be arranged with perfect satisfaction to all parties concerned. The termination of our relations with the Canterbury Association may be looked back upon by all concerned with unalloyed satisfaction; and, as frequently happens with actions performed in an honorable and generous spirit, the burden which the Province assumed in undertaking the debt of the Association has proved to be far less onerous than might have been anticipated, whilst the conduct of the Province in the matter has tended more than anything else, to establish its credit in England. I desire to warn you, however, that this result will still depend solely on the manner in which the Association's estate is managed, and on the punctuality with which the rents are collected in the colony. If this be not attended to, you will be called on for heavy advances from the Revenues to pay the Dividends on the loan, which must of course be punctually paid in London at all sacrifices.

I would further strongly counsel you to expend all the monies arising from the sale of portions of the Estate to pay off these debentures. As a matter of honour and credit I think the proceeds of this Estate ought to be devoted to the same purpose which it would have been had it remained in the hands of the Association. I shall therefore ask for a vote this session to enable me to discharge Five Hundred Pounds of the debt, for which monies are already, or will be shortly in hand.

Full accounts of the management of the Estates, will, of course, be laid before you.

Whilst referring to our relations with the Association, I cannot but again remind you how much we owe to the continued attachment of its members, especially Mr. Godley and Mr. Selfe, to the interests of this Province. The Council are aware that these gentlemen have again advanced considerable sums to induce Messrs. Willis to continue the Immigration, and that these debts have not yet been all discharged. The papers on your table will inform you that they were prepared to guarantee the interest, due in July last, had not the funds arrived in time. Although the necessity did not occur, still the Province is under no small obligation to gentlemen, who, without any hope of pecuniary reward have been so generously ready to afford pecuniary assistance, rather than that the interests or credit of the Province should suffer.

I think some special acknowledgement of the services of Mr. Selfe and Mr. Godley is due from the Government of the Province.

I may further congratulate you upon the completion of the purchase of all the Native Land within the Province, and I cannot but advert to the agency by which this has been accomplished. It was one of the objects of my journey to Auckland last year, and I cannot too highly acknowledge the immediate and kind attention with which his Excellency the Governor met the application on the subject. Still you must observe that it was not through the Land Purchase Department that these troublesome questions were settled. A Commissioner was sent down here last summer, who after remaining some time was compelled to return to Auckland, having no sufficient instructions to enable him to act. But when at Auckland, I begged that Mr. Hamilton might be appointed to act as a Commissioner; and I offered to advance all the cost of the service, although I was aware the charge ought not to come, and will not ultimately come, on the Province. The result has been, that these questions, which have not been settled by the General Government in four years, and would not have been settled, in all probability in as many more, were settled in a few weeks by local agency. It is one instance, in the many which occur all over New Zealand, proving the necessity of leaving to the Provincial authorities the duty of purchasing Native Lands.

But, I turn from matters of congratulation to those of a contrary character. You may not have forgotten that, at the first opening of the Council, I urged upon you most strongly the necessity of some permanent provision for the education of the people. It is with the deepest regret that I