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assume any increase of the ordinary
revenue over that estimated for the year
ending the 30th of Sept., 1854.
It will be seen from the annexed state-
ment—which for all practical purposes
may be taken to be correct—that the es-
timated public balances in hand on the 31st
July last were as follows:
At Auckland.................. £35,671
Wellington ................... 18,000,
Canterbury ................... 31,000
Nelson ....................... 600

Amounting altogether to . . . £85,271
Deducting from this balance the "De-
posits unavailable," the New Zealand Com-
pany's fourth, and the Loans to be repaid
out of the first receipts of the Land Fund
at Wellington, there remains the sum of
£50,000 available for the current expenses
of the Government.

The net Revenue for the year, after de-
ducting the costs of collection, is estimated
at £146,315, and the Expenditure, exclu-
sive of the costs of collection, at £37,329
leaving a balance of receipts over
expenditure of £108,986.

If to this balance on the year now esti-
mated for be added the available balance
on hand on the 31st of July last, there
will be a total sum of £159,067 unappro-
priated.

Out of the unappropriated balance of
£159,067 it will, however, be necessary to set
aside a considerable sum for future land
purchases; but I have not included any
sum for this purpose in the estimates, as I
wish to take the recommendation of the
House as to the amount. During the last
twelve months large sums of money on
this account have been disbursed, but the
late increase of the Land Deposits at Auck-
land has enabled the Government to com-
plete the purchases without disarranging
the finances of the Colony.

I need not dwell on the benefits which
arise to the country from the extension of
the Public Demesne." Nothing indeed
could have justified the Government if it
had overlooked the pressing necessity of
extinguishing the Native title to large
tracts of lands in the vicinity of our settle-
ments. Altogether the sums expended on
this service during the last year amount
to about £40,000. Five million acres of
Native lands at Otago have been pur-
chased for £2,600. At Wellington about
two million acres have been purchased at
an expense of about £24,000, of which sum
£18,000 have already been paid to the
Natives, and the liquidation of the balance
provided for in yearly instalments, to be
completed in the month of May, 1858. At
Auckland £16,000 on this account have
been expended.

These extensive purchases have been
made without any important increase of
the Land Purchase Department; and so far
from their having disarranged in any way

the finances of the Colony, the Govern-
ment has been able to fulfil the whole of
the undertakings to which it was pledged
in the Civil Secretary's Circular Letter of
the 8th August, 1853.

'For instance, at Auckland there has been
paid into the Provincial Chest out of the
General Revenues, on account of the three
quarters ended the 30th June last, the sum
of £32,020 13s. 4d., including £5,690 12s.
for Immigration Purposes. The total ap-
propriation of the Province for the whole
year being £32,262 1s. 9d., the advances
issued out of the General Chest on account
of the year ending 30th September, 1854,
exclusive of those for Immigration, will
greatly exceed the sums required to meet
the Provincial appropriations.

At Wellington, the quarterly payments
of two-thirds of the net Customs Receipts
average about 4,300l.; so that the sums
paid into the Provincial Chest on the ter-
mination of the year in accordance with
the terms of the Circular Letter alluded to,
will exceed 17,000l. Estimating the Pro-
vincial receipts from other sources of
Revenue at 2,000l., the balance of receipts
in excess of the Provincial appropriation
will be about 1,000l.

At Canterbury, the sums appropriated
by the Provincial Legislature amount to
19,000l. The Land Fund Receipts now lying
in the General Chest at Canterbury exceed
30,000l., of which 22,500l. would be pay-
able into the Provincial Chest under the
Government Regulations, had the Super-
intendent been prepared to give the
guarantee that the money should be ap-
propriated in accordance with the scheme
of the Canterbury Association. Putting
out of consideration the Land Fund
receipts and the appropriations of the Pro-
vincial Legislature for Public Works and
Immigration—which appear to have been
made in anticipation of the available
balance of the local Land Fund receipts
being paid into the Provincial Chest—the
remaining appropriations will be fully met
by the sums provided by the General
Government.

It is impossible indeed to have anticipated
a more favourable state of the Public
Finances.

In reference to the distribution of the Land
Fund, it will be seen by the Regulations of
Governor Sir George Grey dated 8th August,
1853, that after certain deductions have been
made, the balance of the Land Fund is to be
divided into two equal parts, one for Immi-
gration Purposes, the other for Public Works;
both being payable into the Provincial Chests.
With the exception of the Province of Can-
terbury this regulation has been carried out
in each instance where a surplus has arisen.
By the provisions of the Constitution Act,
however, the whole of the proceeds of the
Land Fund are chargeable with the expenses
of the General Government, in the same
manner as any other portion of the Queen's
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