58

and their continuance in office practically depends
on the votes of the two Houses, rests on no written
law, but on usage only. In carrying similar sys-
tems into effect in the North American Colonies,
legislation has indeed been necessary to make a
binding arrangement for the surrender by the
Crown of the territorial revenue, which has
generally formed part of the scheme, and for the
establishment of a civil list; but not for any
other purpose. In New Zealand the territorial
revenue has already been ceded to the
Assembly, and Her Majesty's Government
have no terms to propose with reference
to the Civil List already established. Unless,
therefore, there are local laws in existence which
would be repugnant to the new system, legisla-
tion seems uncalled for except for the very simple
purpose of securing their pensions to retiring
officers. And if uncalled for, such legislation is
objectionable: because the laws so enacted
would probably stand in the way of the various
partial changes which it might be necessary to
adopt in the details of a system in its nature
liable to much modification.

The shortness of the time at my command, as
I am anxious to answer your despatches by the
present mail, prevents me from entering on the
details of the narrative contained in your
despatches: nor indeed does there appear any
necessity for my doing so. I am satisfied that
you acted to the best of your judgment under the
circumstances in which you were placed; and it
gives me much pleasure to find that the ultimate
result of the deliberations of the General Assem-
bly has been the adoption of the ordinary and
most satisfactory course, namely, that of referring
the question of Responsible Government to Her
Majesty's Ministers for complete adjustment. In-
stead of putting it partially in practice, and
leaving some important questions bearing on it
undecided.

There are passages in your Address already
referrrd to, of the 31st of August, to the General
Assembly after its prorogation to which I feel it
my duty shortly to advert.

Your appear in that address to have especially
called the attention of the Assembly to the ex-
pediency of legislation on a subject, upon which
they could not by the Constitution legislate at
all. I refer to the proposal for rendering the
Legislative Council elective. It is also extremely
doubtful whether the proposed measure for
authorising the Superintendents to dissolve Pro-
vincial Councils, a function reserved by Sec. 13
of the Constitutional Act to the Governor, is
within the power of the General Assembly. So
too the constituting Auckland as a separate Go-
vernment under a Lieutenant Governor, and with
exclusive powers of legislation, if I rightly un-
derstand what is meant by the proposal, is also
a measure which it would be beyond the power
of that body to carry into execution. You ap-
pear also to propose the foundation of a new
federal Convention (apart from the General As-
sembly) which would be an innovation irrecon-
cileable with the existing fundamental law.

I do not now enter on the question of the ex-
pediency of these several schemes, but I am
anxious to call your attention to the incon-
venience of inviting the Legislature to originate
measures to which the Crown could not assent,
as such assent would be invalid.

The views of Her Majesty's Government on
these points will be communicated to the Gover-
nor who will I hope shortly proceed to New
Zealand, but as you have yourself conducted the
proceedings reported in your present Despatches,
and I am very desirous to avoid unnecessary
delay, I have no hesitation in authorising you to
act in person on my present instructions.

I have, &c., &c. G. GREY.

The Officer Administering
the Government,
of New Zealand.

COLONIAL BANK OF ISSUE.
TOTAL Amount of Notes in circulation at the
Office of the Colonial Bank of Issue, at
Auckland, on the 26th day of May, 1855,
being the close of the preceding four
weeks:—
£5 and upwards ............ £6,565
Under £5 ................... 4,197
Total. ......£10,762

Total Amount of Coin held by the same
office on the same day :-
Gold ........................ £4,098
Silver ....................... 24
Total.. £4,122

I, Alexander Shepherd, the Colonial
Treasurer, do hereby certify that the above
is a true account, as required by the Or-
dinance No. 16, Session 8.

A. SHEPHERD
Colonial Treasurer,

Dated at Auckland this
27th day of May, 1855.

The sum of six thousand pounds (£6000)
sterling has been remitted to England through
the Commissariat Department for investment
in the Public Funds of Great Britain.

Auckland; Printed by WILLIAMSON & WILSON.