537

those that were offered ; the leading poli-
ticians in this Island are of opinion that
this guarantee should be given, and the
question is of such vital importance to
its interests, especially to those of its
three Southern Provinces, who have each
large loans to dispose of, that it becomes
the duty of each Provincial Legislature
to consider it carefully, and declare its
opinion distinctly. The Provincial loans
of this island have no tangible Colonial
guarantee, although no doubt the assent
of the Governor to such Loan Bills may
be regarded as a moral guarantee. To
place the validity of the security, which
is offered, beyond a doubt ; to enable the
Provinces of the Southern Island to carry
out the works they have undertaken ; to
enable them to proceed with other great
public works which will develope the re-
sources of the island, and attract an in-
creasing flow of emigrants to the Colony,
it is essential that some measures should
be urged on the Colonial Government by
the expression of opinion in the Provinces
that Loan Bills, sanctioned by the Gover-
nor, shall be secured by Act of the Gene-
ral Assembly, and provision made under
the same authority whereby any Pro-
vince, able to show sufficient reasons for
undertaking large works, can obtain the
means necessary to enable it to proceed
with them. With a rapidly increasing
population, and extending settlement and
trade, it may be anticipated that in order
to give greater facilities for intercom-
munication between the different Pro-
vinces by land, and with other countries
by sea, the construction of great and
costly works will soon become indispensa-
ble. The current of opinion has set in
favour of extension of railways through
the length of the island to meet the first
condition, and harbour works of similarly
expensive character will be required to
fulfil the second. Such works will be of
Colonial importance, not simply local
advantages. Their prosecution will in-
volve the necessity of borrowing large
sums of money ; to obtain the means,
the Colony must become legally bound
to repay them.

The Southern Island has a fair right to
claim that the Assembly shall give it a
due share of such advantages, seeing that
it has already, by the action of its repre-
sentatives, willingly undertaken its share
of responsibility for large loans, authorised
by Acts of the General Assembly ; far
the greater part of which loans have
been, or are to be, expended in the North-
ern Island. Some resolutions on this sub-
ject will be submitted for your considera-
tion in the course of the session.

I have to intimate to you that the mem-

bers of the Executive Council have re-
signed their seats in it ; the Provincial
Treasurer alone retaining his seat and
office until the appointment of his suc-
cessor.

It has not been thought advisable to
propose many Bills for your considera-
tion, or attempt much legislation in the
course of this session, seeing that the
time of this Council is drawing to a close,
and that a newly elected Provincial Coun-
cil may be expected to meet here in little
more than three months.

The disease among cattle has unhappily
extended widely during the last four
months, and has occasioned serious losses,
and when the reports of the inspectors
are laid before you, I trust the subject
will receive your serious attention.

And now, Gentlemen, in declaring that
this Council is open for the transaction
of business, I have to express the hope
that the result of your deliberations will
restore confidence, and hasten the return
of that commercial prosperity of which
we already can see indications.

REPLY TO THE ADDRESS

OF HIS HONOR THE SUPERINTENDENT.

The Provincial Council has received
your Honor’s address with great interest,
and desires to express its entire concur-
rence with the soundness of the advice
which has induced your Honor to call it
together, in order that it might arrive at
a full and clear explanation of the finan-
cial position of the Province.

While desirous of expressing its sym-
pathy with your Honor, in the present
embarrassed position of the Province, it
cannot but give utterance to its grave
regret at the reckless expenditure on
public works, which has led to it ; an ex-
penditure incurred in the face of impend-
ing financial difficulties of no little
moment ; nor can the Council concur
with your Honor, in the opinion that the
General Government withholding its
sanction to the two loan Ordinances for
£120,000 and £25,000, is the main cause
of our present difficulties ; inasmuch as
had the loans been sanctioned, they were,
in the present state of the home money
market, unnegotiable ; but rather to the
Government having entered into large
contracts since the 30th September, 1863,
at which time there was an unprovided
overdraft for ordinary expenditure of
over £47,000.

The Council fully concurs with your
Honor, in the hope that the Oreti Rail-
way will, in a short time, be open for
traffic, for a considerable distance ; and
would earnestly recommend that the