588
THE NEW ZEALAND GAZETTE.
[No. 28

that line of railway. Negotiations for such lands are, in the opinion of my Advisers, proceeding satisfactorily, and with due regard to the necessity of a sufficient quantity being retained by the Maoris for their own use. You will be asked to amend the laws relating to the disposal of Native lands in the direction which appears to my Ministers best adapted to do justice to the Maori owners and to hasten the occupation and settlement of the country.

Public works have been proceeded with as rapidly as the means placed at the disposal of the Government permitted. Proposals will be laid before you for continuing railways and other public works on a scale consistent with the circumstances of the colony, and in the manner most calculated to secure sound economical results.

New Zealand is suffering from the depression that appears to prevail throughout the world, but which is affecting this colony much less than other countries because of its great resources. My Advisers are of opinion that this depression, rather than tending to discourage the energies of the people, should lead them to additional exertions, and that if, concurrently with the progress of railways, abundant opportunity be offered to settlers to occupy and cultivate land in farms of reasonable size, farmers from other countries will be attracted to the colony and materially aid its progress.

In calling your attention to the gracious compliment which Her Majesty paid to all the Colonies and India by opening the Exhibition devoted to their products, and to the gratitude the Colonies and India owe to His Royal Highness the Prince of Wales for the untiring exertions which have led to the success of the Exhibition, I am glad to be able to say that my Ministers have used their utmost endeavours to secure for this colony an adequate representation.

GENTLEMEN OF THE HOUSE OF REPRESENTATIVES,—

The Estimates of revenue and expenditure for the current year will be laid before you. My Advisers fully recognize the importance of keeping down the expenditure to the lowest limit consistent with meeting the requirements of the public service and the wants of the country. The finances of the colony are in a sound condition, and gratifying progress is being made with the conversion of the loans. The San Francisco Mail Service has been re-established at a cost within the authority which you gave by resolution. It is gratifying that the contract should have been taken by a New Zealand Company on behalf of itself and a powerful American steamship organization. It is equally gratifying that New South Wales joins in the arrangement, and that assistance is received from the Government of the United States.

HONOURABLE GENTLEMEN OF THE LEGISLATIVE COUNCIL, AND GENTLEMEN OF THE HOUSE OF REPRESENTATIVES,—

Whilst giving attention to the undertakings which it is desirable the colony should carry out, it is not to be forgotten that the works constructed by local bodies are of essential importance towards promoting and extending the settlement of the lands. A measure will be placed before you dealing with the finance of local bodies, and enlarging their power of directly managing their own affairs.

My Ministers view with satisfaction the disposition which is being shown to develop the local resources of the colony, including those of the mines, the forests, and the fisheries. It is of infinite importance to recognize and take advantage of the natural wealth of New Zealand, and to encourage the prosecution of industries of a varied character. My Advisers place great faith in the operation of a policy which embraces the points of—

Prosecuting local industries, and thus affording abundant occupation to the population;
Promoting settlement by liberal land laws;
Constructing railways with a view to opening the country, aiding the progress of settlement, and speedily securing satisfactory economical results;
Placing local bodies in a position to open roads and do other useful work;
Giving to the mining population liberal facilities; and the
Establishing of friendly relations with the Maoris.