cable also to the settlements of Wellington
and New Plymouth.
3. In the same Despatches Lord Grey in-
structed me, to draw for the necessary ex-
penses on the Commissariat Chest, and to pay
into it from time to time any monies that
might be received for lands sold, and his
Lordship further directed me to keep the ex-
penses of the settlements by all reasonabl
endeavours within the amount of one sixth of
the sums realized from the sale of Lands,
which were under the arrangements of the
Company chargeable with such expenses,
and the Lords Commissioners of the Treas-
ury in their letter No. 319, of the 13th
March, 1851, directed to the Officer in the
charge of the Commissariat in New Zealand,
to carry out these arrangements by receiv-
ing such sums as might be tendered on ac-
count of the several settlements of New
Zealand, and in making such payments as
might be directed by the Governor, under
Lord Grey's instructions.

Enclosure No. 4. I now beg to enclose for
Compare your Grace's information a com-
tive statement parative statement of the expen-
enclosed in
Mr. Bell's
letter to the
Civil Sec-
retary, dated
June 28, 1853.
diture on Fixed Establishments
created by the New Zealand
Company in their several settle-
ments, and of the expenses of
the local Government on the
same establishments in those Set-
tlements, together with explanatory remarks
thereon by Mr. Bell, Commissioner of Crown
Lands, formerly the New Zealand Company's
Resident Agent at Nelson, from which it
will be seen that the Establishments I created
under Lord Grey's Instructions were on a
much more frugal scale than those created by
the New Zealand Company, and that I in this
respect effected a considerable saving.

5. I then beg to state to your Grace that
   in the case of the Settlement of Wellington I
   continued from time to time to pay, from
   advances from other funds at the disposal of
   Government, or from advances from the Com-
   missariat Chest, the expenses incurred in com-
   pleting the contracts of the New Zealand
   Company, and that I hoped that I might
   ultimately from the sale of Crown Lands
   under the Regulations established by the New
   Zealand Company, as also from the proceeds
   handed over to the Government by the Com-
   pany's Agent, have replaced the advances
   thus made.

6. I regret, however, to state that the
   whole proceeds received from the New Zea-
   land Company's Agent in this settlement
   amounted to no more than one hundred and
   twenty-five pounds, and that no statement.
   of the amount the Company would have to
   pay was furnished until recently, and that
   owing to the nature of the land regulations of
   the Company, not one acre of the land was
   sold up to the time when I was permitted by
   instructions from Sir J. Pakington to alter
   those regulations; that is up to the 4th of
   last March.

Since that date a considerable quantity of
land has been sold. The Government will
henceforth, I hope, have from the land Sales
the means of defraying the expenses of ful-
filling the Company's contracts, and as the
lands have now come under the control of
the Colonial Government I presume that it is
intended, in assuming the control of the lands,
it should also assume the charges to which
they are subject.

7. I have therefore had pre- Enclosure
   pared the enclosed account, shew- No. 2.
   ing the expenditure and receipt
   by the Local Government of New Zealand, in
   fulfilling the contracts of the New Zealand
   Company in the settlement of Wellington
   from the fifth of July, 1850, to the 4th of
   March, 1853; from which it will be seen that
   the amounts received amounted to £393,
   10s. whilst the expenditure for the same pe-
   riedof time amounted to £10,520 18s. 11d.,
   leaving a balance of £10,127 8s. 11d., due
   to the Local Government. I think it right
   to add, lest any surprise should be created at
   the smallness of the proceeds of the sales of
   land in the settlement of Wellington, that for
   the three years preceding the Enclosure
   dissolution of that body they only No. 3.
   realized the sum of £942,
   for the sale of lands at Welling- ton.

8. Of the above balance of £10,127 8s.
   11d. it will be found from the
   enclosed letter from the Com- Enclosure
   missioner of Crown Lands that No. 4. The
   sum of £7,620 9s. 8d. is to Commissioner
   be defrayed from the Commis- of Crown
   sarfat Chest under Lord Grey's Orvil Sec-
   instructions; but in the hope retary, June
   that the whole amount might 22, 1853.
   not, for the reasons I have be-
   fore stated, be required from the Military
   Chest. I thought it better during the pre-
   ceding year to apply for an advance in ex-
   cess of the Parliamentary Grant for that
   year of £2000, and during the present year
   a further advance of the sum of £1000 has
   been made from the Military Chest, making a
   total sum of £3000 thus advanced, and leav-
   ing a balance of £4,620 9s: 8d; due from the
   Commissariat Chest to the Local Government
   of this Colony.

9. I have therefore requested the Officer in
   charge of the Military Chest to pay over to
   the Colonial Treasurer the sum of £7,620 9s.
   8d., to enable him to repay the advances of
   £4,620 9s. 8d. which they have made from
   other funds.

10. I trust that with care and economy the
    Local Government will under the new land
    regulations be able to defray the large amount
    still to be found for the fulfilment of the
    Company 's contracts in this settlement, and
    I see every reason to hope that they will be
    able to do so, as land is now again being rea-
    dily sold. Your Grace will observe from the
    papers I have enclosed, that whilst only a sum
    of £7,620 9s. 8d. has been drawn for the