40

has been going forward. Forest land is gradually
taking the place which it must, in a bush-covered
country, eventually occupy in public estimation. In
various parts of the Province, the access is being done
its work, particularly in the Motueka, Dovedale, Pi-
geon, and Takaka Valleys. These are encouraging
facts which should reconcile us to the necessity of
estimating the land revenue for the current year, at
much less than we have had to expend of late.

4. With a reasonable confidence in the resources
   of the Province, we need not be eager for a torrent
   of population, bringing much wealth indeed, but
   much misery in its train, should the sudden collapse
   when the flood retires. The Province from end to
   end, possesses gold deposits which may perhaps never
   prove the cause of intense excitement, like that we
   have just witnessed in a neighbouring Province, but
   which will give fair wages to steady labor for many
   years, and become more attractive whenever settle-
   ment shall spread into the valleys of the western and
   other auriferous districts.

Under circumstances like those of the gold-bearing
colonies, a sudden rise of Customs revenue is not a
certain symptom of sound prosperity, and our mode-
rate advances in this respect need not be viewed with
despondency. The gradual extension of permanent
industry over the face of the country, and the steady
growth of revenue that follows the increase of settled
population, are the objects of wise hope.

Although the land revenue of last year fell short of
my estimate and your expectation, the examination
of the sources and particulars of this deficiency gives
evidence of a healthy advance in the Province.

5. The gross Customs receipts, exclusive of gold
   duty, for the year ended 31st March last, amounted
   to £25,752 7s. 0d., of which the Provincial Treasurer
   has received £11,278 14s. 11d., being £1,278 14s. 11d.
   in excess of my districts, and in addition to this the
   sum of £1,627 10s. 5d. has been received from the
   General Government, as surplus revenue. The gold
   duty for the same period amounted to £1,028 2s. 2d.

6. The land fund was estimated at £30,000, which-
   as above the average of nine previous years' receipts,
   might be supposed a reasonable conjecture. The
   amount actually received was, however, little more
   than half that estimate, being £17,127, nett, and
   showed a startling decrease of £44,267, or nearly
   seventy-five per cent. upon the receipts of the pre-
   vious year—£59,394. A very little reflection will
   show that a land fund three-fourths of it arising in
   favorable years, from the large purchases of three
   or four wealthy flockowners, cannot be made, with
   any degree of certainty, the subject of calculation.

It will be seen, from the returns that will be laid
before you, that the great falling short has been in
these large purchases. The cash sales of large tracts
in the Amuri were £53,173 0s. 0d. in 1862-3 against
£5,268 0s. 0d. in 1863-4, showing a diminution of
£47,905, or nine-tenths of the whole amount, and
more than the total decrease of the land fund; whilst
the cash sales of comparatively small lots in the
agricultural and mixed districts have increased from
£6,221 in 1862-3 to £10,254 last year. Thus we see
that so far as land sales can be taken as an index of
prosperity, the past year shows a marked advance in
the amount of available capital spread among the
bulk of the population, a growing confidence in the
stability and resources of the Province, and real pro-
gress towards the occupation of the country.

7. My opportunities of expressing myself are not
   so frequent that, I could neglect this occasion to de-
   clare my own opinion that although the land fund
   may and must sooner or later shrink away (being, in

fact, capital and not revenue), and with it one easy
means of expending public works will be taken from
us, yet there is no sign nor probability of a stoppage
of growth, much less of decay in the Province; and
though from the physical character of the land its
settlement may be slow and long deferred, there is
ground for confidence that the progress of coloniza-
tion will not be arrested until population has spread
to every spot where industry can find its reward.

8. For the reasons that may be gathered from what
   I have already stated, I propose to make a low con-
   servative estimate for the current year. My
   estimate of the total revenue will be £35,000 from
   all sources. Of this amount I propose that one half
   at least shall be appropriated to public works.

9. I think you will do wisely to provide for the
   extension and improvement of the works already
   constructed in the Valley of the Buller. The specific
   improvements I recommend to you are—First, the
   construction of a horse bridge across the Buller, at
   the junction of the Mangles. This would render both
   the existing tracks, north and south of the main
   river, available at all times for supplying the inhabi-
   tants on the Buller, and on the tributaries on both
   banks. Secondly, I propose the enlargement of the
   foot track between the Mangles junction and the
   Lyell, wherever that may be necessary to allow
   horses to pass. Thirdly, I propose to make reserves
   on which small bush clearings should be made at
   intervals along the various lines, with the primary
   object of forming paddocks for cattle travelling on
   the roads; and with the further view of giving a
   taxable value to the character of the land in
   many parts of these valleys and its capabilities as
   pasture.

The extensions I propose are two; one up the
length of the Matakitaki Valley of about twenty-five
miles, the other a cross country line from the Tiran-
mea Plain to the upper end of the line just named,
a distance of about thirteen miles. The whole Mata-
kitaki Valley would thus have the full benefit of one
two tracks now in existence. The lines offer no
difficulties whatever and will open no inconsiderable
quantity of fair bush land and about 10,000 acres of
grass country; and a further extension of twelve miles
will render the Maruia Valley accessible and bring
our horse roads close to the Valley of the Grey.

10. I consider it now practicable and right that
    we should proceed in the most careful and deliberate
    way with all parts of the main southern tracks, lay-
    out every new line and every improvement of exist-
    ing lines, with a constant view to the future con-
    struction of a railway or floss to and from end to
    end of the Province. I am aware that many roads
    have been constructed piecemeal, and have grown
    out of the hasty line blazed by some explorer, im-
    proved from time to time as funds allowed or an
    emergency required. There is nothing at the pre-
    sent moment to urge on the main southern line, or
    any of the roads in the country, beyond such a rate
    as is consistent with providing beforehand for greater
    future improvement, without abandoning the works
    of the present day.

11. The information obtained on the coal-fields has
    been, from time to time, made public. A perfect
    boring apparatus has arrived from home, and under the
    care of a person of much skill and experience in the
    use of such tools in the collieries of the North of
    England.

The result of the borings made at Mokihinui has
been to fix my attention more particularly on the
coal beds nearer the Buller, and the apparatus is
probably now at work on the seaward side of Mount
Rochfort, putting to practical proof the opinion of