they cannot afford and do not desire to lose.

I feel it, however, my duty to deprecate the practice which has been too prevalent in New Zealand, of giving undue prominence to isolated instances of individual misconduct. It would be unreasonable to expect that the contact of two races so dissimilar should be unattended by occasional differences between individuals.

With a view, therefore, to strengthen as much as possible the hands of the Magistracy in the equal administration of justice, an application has been made to the General Government by some of our settlers, in which I fully concur—to have a portion of the Colonial Constabulary Force authorized by the General Assembly stationed in this Province.

It is generally allowed that we possess the finest climate and best pastoral and agricultural country in the North Island of New Zealand, and with such advantages we have every reason to hope for a prosperous future.

It devolves upon us, however, to turn these advantages to the best account for the interests of the community and to devise such measures as may be best calculated to promote this object.

One means by which we must expect to increase our prosperity will be the acquisition of fresh tracts of land from the Natives. Without this we can hold out but few inducements for the introduction of labor and capital.

You are aware that by a late Act of the General Assembly, which only awaits the sanction of the Imperial Government to become Law, the Province will be placed in competition with individual capitalists and speculators, who are prepared to invest largely in the purchase of land, and in whose hands it will in all probability be locked up for an indefinite period from access to the industrious classes.

To provide against such a contingency I feel it my duty to ask your sanction to the raising of a loan of £30,000 for the acquisition of Land from the Natives, and a further sum of £30,000 for the purposes of Immigration, maintenance of roads, harbor accommodation, and police.

Ample security will be afforded for these loans by the lands now possessed by the Province, as well as by those that may hereafter be acquired.

In commencing the administration of the affairs of this Province, I regret the necessity of advising this course, but I see no alternative in our present circumstances except that of being placed in a worse position than capitalists, either absentee or resident, who may with large means divest the Province of its most available and legitimate source of revenue.

From the extent of Waste Lands possessed by the Province, it is evident that we have more than sufficient security for liabilities already incurred as well as for fresh loans.

It may, however, be expedient for the Council to consider whether a more advantageous mode of regulating the leasing and disposal of these lands cannot be devised. I am of opinion that the principles laid down in a report of a Select Committee of the Provincial Council appointed on the 1st March, 1860, are equally applicable to our present circumstances.

It is true that since that time a great extent of the most available land has been disposed of, and it is only necessary now to consider how what remains may be rendered most available for the interests of the Province.

It appears to me that the only means by which we can secure a permanent revenue from the lands at present occupied by Runholders is that of granting leases with a preemptive right of purchase upon such terms as the Council may deem just and equitable.

The acquisition of fresh territory from the Natives must necessarily, under the altered circumstances of the Colony, be attended with much more difficulty and expense than formerly, although I may state that certain tracts of country are now under offer. Time, patience, and available funds will no doubt remove some of the obstacles to the acquisition of land adapted to the requirements of agricultural settlers.

It may be found necessary, as a means of attracting Immigration, that certain blocks of such land should be set apart for special settlement and disposed of upon a system of deferred payments.

As we must rely chiefly upon population not only for the solution of our present difficulties, but also by means of indirect taxation for an increase of revenue, I would earnestly direct your attention to the necessity of devoting as much as possible of any funds that may be available to the introduction of immigrants from the mother country, including assistance in bringing distressed operatives from the manufacturing districts in the north of England.

An offer worthy of your consideration has been made by the Messrs. Goddefroy, a highly respectable firm in Hamburg, to send out to New Zealand emigrants, to be approved of on arrival in the Colony by a local board, charging only six per cent. on the original outlay, and allowing a period of ten years for the re-payment of the capital embarked by them.

The introduction of German immigrants, judiciously selected, has proved so successful in other Colonies, that there can be no question as to the advantage to be derived from having a certain number of them introduced into this Province, as they can produce and manufacture in this fine climate many articles which we are obliged to import at high prices from foreign markets.

The peculiar advantages of German Immigration under the foregoing arrangement is, that a population who will soon be self-supporting can be obtained without any large immediate outlay beyond providing a year’s