(74)

ance is rising between the European merchants
and the native population. There seems no rea-
son to doubt that this trade will very rapidly in-
crease in extent and importance; the natives are
now very generally purchasing small vessels for
the purpose of trading; they are extremely anx-
ious to procure articles of European clothing,
and luxuries generally, and they possess abun-
dant means of paying in produce for all such ar-
ticles as they may require. Indeed the consump-
tion of British goods in these islands will soon
become so considerable as to be an object of im-
portance to British merchants, whilst the valua-
ble products which are given in exchange for
them will also prove highly advantageous to Bri-
tish commerce and industry. In illustration of
this I need only state that the principal articles
of consumption here are woollen goods, the wool
for which is chiefly grown in Australia, carried
to England in British vessels, manufactured there
and brought to New Zealand in British ships,
where it is exchanged for timber, flax, copper,
and wool in its raw state, which are again car-
ried in British vessels, to England: thus in each
stage of these employments an impetus is given
to some branch of British trade.

The extent to which British commerce may be
carried on here is limited, in the first place, by
the amount of the population, which I believe
has been under estimated by nearly one-half;
and secondly, by the extent to which life and
property are rendered secure. The short period
of tranquility which the northern portion of the
country has recently enjoyed, has already given
a considerable impetus to trade, and a large aug-
mentation to the revenue, which being raised
from duties of customs, augments in the same
proportion as the commerce of the country, and
with its increasing prosperity affords the Govern-
ment the means of still further securing the fu-
ture tranquility and order of the colony. It is
difficult to see on what grounds this mode of
raising a revenue can be objected to. The na-
tives benefit largely by obtaining those articles
which they value highly, and which contribute
to their comfort, respectability, and civilization;
they also are now, for the first time, beginning to
feel the advantages of security of person and pro-
perty; in point therefore of abstract justice,
there appears no reason why they should not pay
for those advantages. Whilst upon the ground of
discontent, no objection at present exists to the
payment of Customs duties, as the native chiefs
are very generally beginning to understand that
the Government cannot be conducted without
money; they are also generally anxious to enjoy
the advantages of good government, and
several of the principal chiefs have stated that
they see, that so long as the duties of
customs are the payment made to the Govern-
ment, so long will the wealth of the
Government depend upon their being rich en-
ough to buy clothing and articles of luxury: that
it will thus be the object of the Government to
see them wealthy, and they therefore entertain
no fear of their lands and property being taken
from them.

I have therefore no intention of attempting to
raise a revenue by any other means than the im-
position of light duties of customs on all import-
ed goods; and as I have before stated, I feel
quite satisfied that within a very few years from
the present time the revenue realised from this
source, will be found ample to defray the
whole of the colonial expenditure.

The present condition of the colony, in re-
ference to its financial state, is different from
all other portions of the empire. It is not in

the ordinary position of a young country, the
establishments of which could grow in extent,
in the same proportion as its population, re-
venue and commerce. The fact is, that a large
population rapidly becoming civilized, and ca-
pable of immediately affording a considerable
commerce and revenue, already exists here:
but no establishments have been formed for the
protection of life, property, or commerce, or for
the collection of revenue, or indeed for the
controul and government of this large popula-
tion, who, if their energies are not directed
into proper channels, and if they are not go-
verned and kept under control, will certainly
attempt to set up the government of various
ambitious chiefs, and will keep the country in a
constant state of disturbance and war.

It appears therefore absolutely necessary that
a considerable annual expenditure in excess of
the revenue should be sanctioned for a few years
by the British Parliament, to provide for the
formation of the public buildings, roads,
and establishments which are absolutely requi-
site for the assertion and preservation of British
supremacy, for the control of the turbulent, the
protection of life, property, and commerce, and
the security of the revenue which the country
can at once yield.

The advantages which justify such an expen-
diture are, the impetus which will be given to
the interests of humanity and civilization, the
ultimate saving which will be effected to the
country by the prevention of expensive inter-
nal wars, which would require the constant pre-
sence of a large naval and military force, the
extension afforded to British commerce and in-
dustry, and the great increase of the revenues
of the colony, which will shortly enable it to
dfray the whole of its own expenses.

The amount of such expenditure in excess
of the revenue need not at any time be very
great. It may, I think be fairly deduced from
the following estimate:

Probable general ordinary annual ex-
penditure of local government
Probable extra expenditure on account
of natives, police, roads, &c., &c.
Total Expenditure
Probable revenue from this date, but
rapidly increasing in amount
Immediate annual deficiency, yearly
decreasing in amount

. 27,000 0 0
. 31,000 0 0
. 58,000 0 0
. 22,000 0 0.
£36,000 0 0

Thus leaving the sum of about £30,000, in ad-
dition to the present Parliamentary grant, to be
provided from some extraneous source. It should
however, be observed that this additional grant
would decrease in amount from year to year,
exactly in proportion to the progress of the co-
lony.

I beg to assure your Lordship that after
having now visited almost all the important por-
tions of the colony, I feel quite satisfied that the
Government cannot be efficiently conducted for
a lower amount than that which I have above
stated, and that any attempt to do so will ulti-
mately only result in great disaster, and even-
tually in a much greater expense to the British
Treasury than that which will be incurred un-
der the system I have detailed, and upon which
I intend to act until your Lordship's further
instructions can reach me. It is probable that I
may have stated the estimated revenue at too
small an amount, and I think that I have done
so: but I have thought it better to incur the