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balance of the sum of £15,000 a month,

since September 30th, 1863, at which time there was an unprovided overdraft for ordinary expenditure of £47,000.

granted by the General Government, be strictly appropriated to the carrying forward of the Northern Railway works.

The Council further begs to express its entire disapproval of the application to other objects of funds raised on the security of the loans for the construction of the Bluff Harbour and Oreti Railways; nor can it see how the sum of these loans can be expended on the construction of Railway works, as mentioned in your Honor’s address, seeing that it has already been spent on other works.

The Council will give its earnest attention to the Resolutions, on the subject of obtaining the guarantee of the Colonial Government to such Provincial loans as may be necessary to cover existing liabilities; and, with this view, would respectfully suggest that a considerable portion of the Land Revenue be set aside, monthly, as a security for the General Government. But this Council is strongly of opinion, that in the present state of the finances of the various Provinces, and the money market at home, it would be extremely imprudent to entertain any idea of loans further than to cover existing liabilities. The Provincial Council, learns, with regret, that your Honor is again without an Executive Council; and trusts that your Honor will see the necessity of at once appointing such a Council from members who possess the confidence and support of the Provincial Council.

The Council much deplores the existence and spread of disease among cattle in the Province, but is unaware of its having any power to legislate on the subject; and trusts that your Honor will, with the advice of an Executive Council, take such measures as will prevent further spread of the disease, in accordance with the power delegated to your Honor by the Governor.

(MESSAGE No. 4.)

To the Provincial Council of the Province of Southland.

The Superintendent has to acknowledge the receipt of the reply of the Provincial Council to his address when opening it for the transaction of business.

The second paragraph expresses a censure on the Executive Government, and an opinion on the cause of the financial embarrassment, which he cannot allow to pass without remark.

The Council expresses “its grave regret at the reckless expenditure” which has led to this embarrassment; it differs from his opinion of the main cause of this, attributing it “rather to the government having entered into large contracts,
since September 30th, 1863, at which time there was an unprovided overdraft for ordinary expenditure of £47,000.

In the fifth session of the Council (Oct., 1863), above £84,000 was voted for roads and public works alone; works done chiefly by contract. Much of this sum, no doubt, was voted on account of contracts then existing. Considerable sums were also voted for other works, and supplies usually furnished under contracts; the entire sum voted for the service of the year, was over £289,000, (including a vote to meet the overdraft alluded to.) This sum was greatly in excess of the estimated revenue; and the balance could have been met only by borrowing. This Appropriation Ordinance (October, 1863) was disallowed.

In the sixth session in February and March, 1864, another Appropriation Ordinance was passed, appropriating £48,000 for roads and public works, for the eight months ending 30th September, 1864. Of this amount, liabilities to the extent of £17,000, were for contracts entered into between 30th September, 1863, and February 10th, 1864. A return, which has been laid on the table of the Council, shows that the sum of the contracts, for roads and public works, entered into since 30th September, 1863 amounts to about £22,000, exclusive of some works which have been done, or are in progress, as extras, or without special contract. The gross amount then of those contracts is not large, and it is far within the limit of the vote of the Council; therefore it may fairly be doubted that they exercised the injurious influence attributed to them.

The remark can scarcely be meant to apply to railway contracts; as those were proceeded with under the sanction of special ordinances.

The Superintendent regrets that the Council should now censure as “reckless” an expenditure mainly on account of works, which, but a few months ago, were considered of the greatest importance, much less than the amount it deliberately sanctioned after having had full opportunity for consideration.

If the ordinances had been assented to, the loans might not be readily negotiable; but the Government might have been able to obtain such advances as would relieve it from pressure, until their full value was obtainable by the effect of legislation.

The Council states that it cannot “see how the sum of those loans” (namely, for the Bluff Harbour and Oreti Railways) “can be expended on the construction of railway works, seeing that it had