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The blind infatuation which leads Colonial statesmen to presume that, without rhyme or reason, and in spite of the declared wishes of the people to the contrary, they can suddenly blot out of existence the political entity of a Province like this, by means to some extent of setting one district against another, and bribing its different Municipal bodies with their own money, is too monstrously reprehensible, and augurs anything but well for the future: it exhibits very poor opinion indeed as to the intelligence of the people and their capacity to realise what is best for their own interest.

Why not have left well alone? Otago is not a mere abscess being bled sufficiently by the Colony without being further drained of its landed property, its educational endowments, and its railway revenues; all of which, of course, become common property under the Abolition regime. To say that it will be otherwise appears to me to be an insult to our common sense, and cannot possibly be believed but by the most prejudiced partisans and inexperienced politicians.

One of the prominent provisions of the Abolition Bill, which he who runs may read, is that the 4 per cent interest on the Provincial debt, which has heretofore been met chiefly out of the Otago share of the consolidated revenue, is henceforth to be charged against its land fund. When to this is added the expenses of survey, administration, compensation to leaseholders, and payment of interest on unproductive railways in other Provinces, it would be interesting to know how much will remain with which to fulfill those glittering promises of the Colonial Government as to permanent endowments for promises which, we may rest assured, will prove as evanescent as all those of a similar nature which have emanated from the same source.

Affairs of the Province.

Gentlemen, although you cannot be conceived to review potentially the action of the Executive, and to receive an account of its stewardship, I deem it right that you should be put in possession of all the information as to the state of the affairs of the Province during the past financial year, which you would have received if in Session assembled.

With this view the various departmental reports will be forwarded to you, also the balance sheet of the year; likewise the estimates of revenue and expenditure for the six months ending the 30th September next.

The following figures will no doubt be interesting as applying to the twelve months preceding the 31st March last.

Finance. 1875-6.

The revenue paid into the Provincial Treasury was £524,124, while the disbursements amounted to £536,646. The revenue derived from this Province by the Colonial Treasury was £533,980. It will thus be seen that the total public revenue of Otago, Colonial and Provincial, for the year, amounted to £1,058,104.

With such resources why should the Province be required to go to Wellington to be doles administered?

Statistical.

The number of Deposits in Savings’ Banks for the year was 21,860, the amount of Cash deposited being £234,290.

Of Births there were 1,873, Marriages 474, and of Deaths 585.

Land granted from the United Kingdom 5,132.

The amount of Gold received by Escort for the year was 108,798 ounces.

Of Public Schools supported by the Provincial Government there are now in the Province 162, with a teaching staff of 313. The total number of scholars in attendance at the end of the year was 13,026. The amount expended on Education for the year was £19,128, of which £2,5023 was for School buildings, and £2534 on Public Libraries and Atheneums. The Education report enters very fully into these details, so that they need not be enlarged upon here.

The area of Rural Lands sold for cash for the year was 102,094 acres to 357 purchasers; and of Town Lands 116 acres to 76 purchasers. Area of Rural Land taken up on Deferred payment, 19,707 acres by 126 individuals.