JUNE 22.] THE NEW ZEALAND GAZETTE. 1225

Advisers, after ascertaining the wishes of members of Parliament, contributed substantial assistance on behalf of the colony. Grateful thanks from Canada came in return.

MR. SPEAKER AND GENTLEMEN OF THE HOUSE OF REPRESENTATIVES,—

The estimates of the year will be laid before you, and they have been prepared with due regard to economy and the necessities of the public service. In respect to the Defence Forces, Harbour Defences, the cost of sending and maintaining the Contingents, and generally placing our defences on a safer and more satisfactory footing, as you will naturally have concluded, a largely increased provision will have to be made.

The increasing traffic on our railways demands that a proportionate provision on the estimates should be made to meet the growing reproductive expenditure. Inasmuch as moneys intelligently expended on the railways is more than compensated for by increased revenue, my Advisers find themselves in a position to grant large concessions in respect of passenger-fares and freights. It will be pleasing to you to know that we have a steadily increasing revenue, ample to meet present requirements, notwithstanding the extra calls made upon it.

During the present period of universal prosperity the opportunity is afforded of calmly and equitably considering the incidence of taxation. It is undoubted that the great buoyancy of trade has added largely to the revenues raised by indirect taxation. I trust you may at no distant date consider the incidence of indirect taxation, with a view of reducing Customs duties levied on the necessaries of life.

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

That the bubonic plague exists in several of the Australian Colonies is unfortunately true, and the strenuous efforts made to prevent its appearance in New Zealand, and to minimise its dire effects should it appear here, will, I feel sure, receive your warmest commendation. Nothing has been spared that science or common-sense could suggest to prevent its spread to this colony, and, so far, with success. The laws, however, respecting public health are defective, and do not give the necessary power to preserve the health of the people, or to grapple with a scourge like the one which threatens us. Commissioners, both European and Native, have been appointed in the several districts of the colony. The information gained by them and the reports that they furnish will be of service. Legislation in respect to the public health will be submitted.

The successful results of the policy of securing the acquisition of lands for close settlement, and the placing of the people thereon, fully warrant a continued and vigorous development of the system. Close settlement has been highly beneficial, and the increased products thereby obtained have swelled our exports in a large degree, and helped to bring about the general prosperity now existing.

The cheap money lent to settlers under the Advances to Settlers Act has materially helped to secure a reasonable rate of interest, and has been of great assistance, particularly to leasehold tenants of the Crown. The most sanguine expectations of my Advisers have been realised; and the success that has attended the operation of this law fully warrants further attention to the question. The requirements of the country necessitate that further moneys shall be raised for this purpose.

Pensions to the deserving aged have proved to be a great boon to many old colonists requiring assistance. Circumstances which could not, in the first instance, have been foreseen, have caused a somewhat larger expenditure than was anticipated; but, notwithstanding this, the strain has not proved too great for our resources, and the continuation of this law is considered by my Advisers to be in the best interests of humanity.

It will be gratifying to you to know that the long-standing dispute with the Midland Railway Company has at last been settled. The case was decided in