89

was due to each Province, I have not yet
heard anything of; it is therefore impossi-
ble for me to state whether the Treasury of
the Province is in debt to the Treasury of
the Colony, or is entitled to any further
funds. The only principle that seems to
rule in the division of the Revenues of the
Colony is, that each Province shall retain
and spend all it can lay hold of, and that
the General Government may take Provin-
cial funds in transitu and spend them, the
Province losing the amount though holding
the vouchers of the Collector of Customs
that such are Provincial funds—this, as the
Council is aware, is the case in this Pro-
vince to the amount of nearly a quarter's
revenue, and as a settlement of the accounts
of the colony seems as remote as ever, there
is little hope of present redress.

Supposing existing arrangements to con-
tinue, and that the Province obtains the two
thirds of the net Customs Revenue shewn
by the vouchers of the Collector of Customs,
I am of opinion that there will be a larger
sum to devote to roads and public works
than has yet been spent in the Province for
that purpose; still, as I consider that the
amount applicable to the repairs of roads
will be insufficient for the purpose, a Bill
will be submitted for your consideration to
authorise the division of the settled portions
of the Province into districts, with power to
the inhabitants to impose rates on land for
the purpose of making and repairing roads;
this measure, with such assistance as can
be afforded from the Revenues of the Pro-
vince, will, I anticipate, be the means of
placing the means of communication in such
a state of repair, that a small yearly sum
will soon be sufficient to maintain them in
good order.

The recent native affray continues to un-
settle the native population. As it is a
question exclusively under the authorised
control of the General Government, I have
not considered it advisable to appear at any
discussion of the question by the natives;
such a course might have devolved on the Pro-
vince a portion of the responsibility which
best rests, where it lies—with the General
Government. Mr. Commissioner McLean,
the best qualified Officer in the colony to
investigate this internal quarrel of a tribe,
has been deputed by His Excellency, and I
have no doubt but that every thing that can

be done, will be done by that gentleman,
at whose disposal in carrying out the in-
tentions of the General Government I have
placed the co-operation and assistance of
the Provincial Government. I have every
reliance on the good feeling that has always
subsisted between the two races, continuing
to prevent the European population from
interfering in this native quarrel; as some
evidence of the good feeling of the Native
race to the European, I may mention that,
while one party applied for military aid,
the chief of the other stated that if afforded
by the Government he should not consider
the settlers as involved by it.

The recent legislation by the General As-
sembly has not reached me; how far the
suggestions of his Honor the Superinten-
dent of the Province of Auckland as the
Officer administering the Government of
New Zealand have been carried out, as
stated in His Excellency's last opening
Address to the General Assembly, I am un-
able to inform you; but I can state, that if
his Excellency's views are carried out by al-
terations in the Constitution Act, and by the
legislation of the General Assembly, the
General Government will be stripped of al-
most every power and authority, and the
Provincial Governments, not constituted for
the exercise of such powers, will become
six jarring and despotic democracies. Al-
ready have the unity and General Govern-
ment of the colony suffered sufficiently from
the Provincial Governments having been
called into existence before the summoning
of the General Assembly, without being
totally destroyed by the policy proposed.

I shall have better hopes of the future and
prosperity of New Zealand when Superin-
tendents are precluded from exercising Ex-
ecutive functions over the whole Colony,
and when the General Government has been
strengthened and placed in the position it
ought to occupy—a position in which I trust
the Assembly will immediately place it on
the introduction of complete Ministerial
Responsibility. The proper limitation and
control of the Provincial Governments by
the General Assembly will follow, and finally
we must anticipate that Provincial Legisla-
tures will be absorbed in the Representative
institutions of the whole colony, and Super-
intendents and Provincial Councils pass
away with the development of larger gene-