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office, a considerable portion of the revenue of the
year just ended having been expended in anticipa-
tion by my predecessor.

The estimates of revenue and expenditure for the
current year, which will shortly be submitted to you,
will contain provision for the overdraft above re-
ferred to, by making the proposed expenditure
£10,000 less than the estimated revenue.

I may observe in reference to the yearly accounts
about to be presented to you, that include all
expenditure incurred in all parts of the province up
to the 31st of March last. The statement for the
previous year could not be made up nearly so closely,
much expenditure having been made upon the West
Coast, which, owing to the backward state of the
accounts, could not be included in the annual
statement. Under the excellent arrangements in-
stituted by the Provincial Treasurer, aided by the
appointment of an accountant upon the Gold-
fields, every payment whatever to the end of the
financial year appears in the accounts, and as no
heavy works are now in progress in that district,
there are no outstanding contracts, or liabilities of
any considerable amount.

In forming an estimate of the receipts of revenue
for the new financial year, I have assumed that the
increase by which the past year was marked will be
maintained.

But I wish you to understand that there is an
amount of uncertainty in the present state and pros-
pects of the South-Western Gold-fields, upon the
progress and prosperity of which the Provincial re-
venue so greatly depends, which makes it difficult to
arrive at an estimate which can be relied upon.

At this period last year new ground of promising
character, and of large extent, had been, or was in
course of being, brought under the operation of the
miner, and our population was increasing.

Now, although the yield of gold is well main-
tained, and every district of the Gold-fields is in a
satisfactory and prosperous condition, yet that con-
traction exists to justify me in calculating upon any
large accession to the number at those gold-fields
upon them, while we are at all times liable to the
effects of the counter-attraction of others gold-fields,
of which an instance has lately occurred in the diver-
sion of some hundreds of our miners to those of
Queensland, although many of them are already,
probably, on their way back again.

The divided state of public opinion as to the pre-
sent apportionment of Revenue between the Colony
and the Provinces, and the consequent doubt which
exists as to the course the General Assembly may take
in reference to it, adds another element of uncertainty
to our estimate of revenue, though it is scarcely pro-
bable that any change which may be decided upon
will be brought into operation so speedily as to affect
our calculations for the current financial year.

Under these circumstance, however, I shall con-
sider it prudent to confine both our expenditure and
our engagements as closely as possible to the amount
of actual receipts into the Treasury from month to
month.

Bills for the amendment of the "Gold-Fields
Licensing Act," the "Country Roads Act," the
"Cattle Trespass Act," and the "Cattle Slaughtering
Act," and also a bill providing for the inspection of
meat, have been prepared and published, in order to
give time for the expression of public opinion upon
them before they were submitted for your considera-
tion.

Being advised by the Provincial Solicitor, that the
provisions of the "Provincial Compulsory Land
Taking Act," put it out of the power of Provincial
Legislatures to pass any measure for the enforcement

of any system of compulsory drainage of country
land, and Mr. Adams\'s opinion having been con-
firmed by the Attorney-General, I am unable to take
any steps to carry out this highly desirable object.

By the 11th clause of the "Consolidated Loan
Act," you are prohibited from passing any Act to
guarantee interest, or to grant subsidies extending
over future years, for the promotion of public works.
I have, therefore, not prepared a measure to gua-
rantee interest on capital employed in coal mining,
as I should otherwise have done in accordance with
your wishes in that behalf.

5. As soon as practicable, after the receipt of the
   Acts of the General Assembly passed during the late
   session, I took steps for the revision of the Gold-
   fields Regulations, by calling upon the
   Wardens in each district to appoint representatives to
   confer with the Warden of their district; so that the
   nature of the alterations required in each locality
   might be ascertained. Subsequently, the Wardens
   met together, and agreed upon a new code of regu-
   lations, suited so far as possible to the wants and
   peculiarities of every part of the gold-fields. They
   are now in the printer\'s hands, and will be brought
   into operation with the least possible delay.

6. In compliance with the wish you expressed by
   resolution, in Session XVI., Rules for the Regula-
   tion of Watermen and Ballast-getters, were prepared
   and forwarded for the approval of the Governor.
   The Colonial Government, however, determined
   upon framing a series of General Harbour Regula-
   tions, which should be applicable to the whole colony.
   The Harbour Masters of the principal ports were
   consequently summoned to Wellington, and a code
   of regulations was agreed upon, which will no doubt
   shortly be made public and put into force.

7. The additional information obtained in the valu-
   able report furnished to me by the Sanitary Com-
   mission, together with your resolution that action
   should be taken on the subject, by the preparation
   of a measure for that purpose, has not yet
   have received my anxious consideration. I am, how-
   ever, of opinion that it will be desirable to defer
   legislation in the matter for at least another year.
   The large additional expense to the householders of
   this city which the passing of a measure, such as is
   suggested by the Commission, must involve, would, I
   think, be a greater burden than could reasonably be
   imposed upon them at the same time as the water-
   rate now in course of collection; and, although
   with much reluctance, I have come to the conclusion
   that it is better not to ask you to entertain the sub-
   ject during the present Session.

8. I congratulate you, and the inhabitants of this
   city, on the successful completion of the Nelson
   Water-Works, which were formally opened on the
   16th of this month. I am sure that you will agree
   with me, that your thanks, and those of the public,
   are due to the Provincial Engineer for the very able
   manner in which this important work has been de-
   signed and carried into execution; and especially
   by the fact that Mr. Blackett\'s estimate of its cost
   was so carefully framed, that it has proved to be
   fully sufficient to meet every contingency—a circum-
   stance, I believe, to be almost without precedent in
   reference to a work of this magnitude.

9. A preliminary survey of the line for the pro-
   posed Nelson, Cobden, and Westport Railway, has
   at length been completed, and the full and able re-
   port of Mr. Wrigg, the engineer employed upon it,
   will be laid upon your table. Much delay has, un-
   fortunately, occurred in this matter, owing, in the
   first place, to the failure of Mr. Ogilvie, the engi-
   neer whose services had been retained by the late
   Acting Superintendent, to carry out his engagement,