970 THE NEW ZEALAND GAZETTE. [No. 45.

provision made during last session for carrying on the public services has proved
more than sufficient. The public accounts show a surplus of revenue over
expenditure—a surplus of a thoroughly sound kind, able to challenge any honest
and reasonable criticism.

Though during the recess persistent efforts have been made to combine the
Maori tribes in a league against further sales of land, my Advisers are glad to
be able to assure you that the attempt has failed. Indeed, signatures to deeds of
sale are being affixed in numbers, and the work of the acquisition by the State
of Native land is in no danger of being arrested. From causes which will be
made known to you, the work of surveying the territory of the Tuhoé Tribe was
some months ago suddenly interrupted. A display of armed force, and negotia-
tions conducted for the Government by the member of the Executive representing
the Native race, quickly led to a peaceful understanding. But my Advisers,
deeming it best to guard against any further disturbance or obstruction in that
part of the colony, have decided to insure, by pushing roads through the length
and breadth of the Urewera country, that in future it shall lie at peace and open
to all.

The inability of the Midland Railway Company to complete its contract has
long been notorious. Three years ago the company’s New Zealand representa-
tives frankly admitted this inability. Though valuable concessions were more
than once granted, the company had twice subsequently to ask Parliament to
modify the contract in order to prevent the collapse of the undertaking. The
second application was decisively refused. Though the time for the contract’s
completion expired in January last, only about one-fifth of the moneys required
for the line’s construction have yet been laid out, and for months past little or no
work has been done. The arbitration demanded by the company was postponed
by the arbitrators until next year. The inexcusable delay by the company in com-
pleting its work, and the consequent locking-up of five millions of acres of Crown
lands, impelled my Advisers to take possession of both the completed and incom-
plete portions of the line. This step was taken in accordance with law, and
under the best advice to be obtained. The opened portion of the Midland
Railway is now being worked by the Government, and authority will be asked
to extend it. The cost of such extension the company will be requested to
refund.

The visit of the Colonial Treasurer to London has been followed by much
direct advantage to the colony. At the Postal Conference at Hobart new cable
rates were fixed, under which New Zealand will save £3,000 a year. In London
the Treasurer has obtained for the colony amended terms with the Bank of
England, whereby the colony will benefit to the extent of £3,000 per annum.
Above all, New Zealand has led the way in successfully floating a 3-per-cent.
loan in the English money-market, thereby strengthening her public credit and
insuring the success of the scheme for giving financial aid under the Advances
to Settlers Act. Many of our settlers have alleged that their applica-
tions for loans have not received that consideration which their merits
demanded. The responsibility, however, of administering the law rests with
the Board, and the circumstances complained of are beyond the control of my
Ministers. This matter will, I trust, receive your careful consideration.

With the view of opening fresh markets for our products, my Ministers have
provisionally arranged reciprocal treaties with Canada and South Australia.
These agreements will be submitted to you, and you will be asked to ratify
them. There will also be laid before you the report of the delegate who last
year represented this colony at the Ottawa Conference—a meeting memorable for
the action of the Imperial Government in despatching to the gathering the Earl
of Jersey on behalf of the mother-country. The report above mentioned deals
with proposals as to the establishment of a mail-service by way of Vancouver,
and the laying of an ocean cable across the Pacific to connect New Zealand with
British North America.

The world-wide problem of providing work for the workless has once more
been a cause of anxiety. During the recess one of my Ministers visited and
inspected a number of the village settlements and labour colonies in New
South Wales, Victoria, and South Australia. His report has led to the trial
of an important experiment in combining settlement with the employment of