NEW ZEALAND

OTAGO

PROVINCIAL GOVERNMENT GAZETTE.

Published by Authority.

Vol. VIII. DUNEDIN, WEDNESDAY, SEPTEMBER 7, 1864. No. 391

LOANS AND FINANCIAL POSITION OF THE PROVINCE.

Provincial Secretary’s Office,
Dunedin, 2nd September, 1864.

HIS Honor the Superintendent directs the publication of the following correspondence between his Honor and the Honorable the Colonial Secretary.

James Paterson,
Provincial Secretary.

MEMORANDUM.—HIS HONOR THE SUPERINTENDENT OF THE PROVINCE OF OTAGO TO THE HONORABLE THE COLONIAL SECRETARY.

In accordance with the understanding arrived at during an interview with Ministers on the 20th July inst., the Superintendent of the Province of Otago submits for their consideration the following observations and remarks on the Loans of that Province, and on its present and prospective financial position.

The Superintendent proposes to present the subject to Ministers briefly under five heads, namely—

First. The necessity for resorting to Loans in order to the performance of extensive public works.

Secondly. The existing Otago Loans and their position in Great Britain.

Thirdly. The financial position of the Province.

Fourthly. The means by which the Province may be relieved from prospective difficulties.

Fifthly. Suggestive observations on future Loans for provincial purposes.

1st. The necessity for resorting to Loans, &c.

From the date of the first settlement of Otago in 1848 until the year 1861, when the discovery of Gold was made, the progress of the Province had been of so gradual a character that the Provincial Government did not consider itself at liberty to mortgage to a large amount its capital and future revenues, in order to carry out public works on an extensive scale.

In the year 1861, however, a great change was at hand; Gold was produced in large quantities, and an enormous increase to the population immediately followed. Public works of a character and to an extent which had not before been dreamt of as likely to become necessary for many years to come, were immediately demanded, and the result has been that an unusually large expenditure has taken place within the past two years, which under the ordinary conditions of colonization would have been distributed over a period of from 15 to 20 years. It soon became apparent that the numerous demands upon the Government could not be satisfied from territorial and ordinary Revenues, and that it was a matter of necessity that those Revenues should be made available by partial anticipation. Hence the Loan Ordinances of 1861-62, which having been passed by the Provincial Council, were, under the circumstances, assented to by His Excellency the Governor.

2nd. The existing Otago Loans and their position, &c.

Amount authorised to be raised—

Under Loan Ordinance, 1856 ... £35,000 0 0
Harbor Loan Ordinance, 1861-2 ... 50,000 0 0
Public Buildings Loan Ordinance, 1861-62 ... 50,000 0 0
Otago Loan Ordinance, 1861-2 ... 50,000 0 0
Otago Loan Ordinance, 1862 ... 500,000 0 0

Total of Otago Loans ... £685,000 0 0

Amount of Debentures sold, forming part of the above Loans—

The whole of Loan of 1856 ... £35,000 0 0
Part of Otago Loan, 1861-2 ... 7,000 0 0
Part of Otago Loan, 1862 ... 38,000 0 0

Total of Debentures sold ... £80,000 0 0

Balance of Debentures undisposed of ... £605,000 0 0