Provincial Secretary’s Office,
New Plymouth, 31st January, 1860.

THE following Despatch and enclosures are published for general information.

J. C. RICHMOND.
Provincial Secretary.

Colonial Secretary’s Office,
Auckland, 26th January, 1860.

Sir,—I have the honor to enclose for your information the Surplus Revenue Account for the Province of Taranaki, for the period ended 30th June, 1859, together with copy of a Memorandum of the Honorable the Colonial Treasurer referring to the same.

I have, &c.,
(Signed) E. W. STAFFORD.

His Honor
The Superintendent
Of Taranaki,
New Plymouth.

MEMORANDUM FOR THE COLONIAL SECRETARY.

The Colonial Treasurer herewith transmits the Surplus Revenue Accounts of the several Provinces for the period ended 30th June, 1859, in order that the same may be forwarded to the Superintendents.

It will be observed that the advances made to the Provinces by the General Government, on account of the Surplus Revenue for the Financial year 1858-59, amount to £60,160 18s. 4d., being fully equal to the amount of the divisible surplus estimated for by the Colonial Treasurer in his Financial statement made in the Session of 1858, and this amount has been paid into the Provincial chests, notwithstanding the considerable additions which were made by the House of Representatives to the original Estimates of Expenditure.

It will further be observed, that in consequence mainly of the authorised Expenditure of 1858-59 having been kept below the Estimates, and of the excess of the actual over the Estimated Revenue of that year, an aggregate Balance of £9,944 14s. 6d. was due from the General Government to the Provinces, on the 30th September, 1859. In round figures £10,000 was due to the Provinces, in addition to the £60,000 already received by them. The exact amount of the surplus of 1858-59 is £70,559 16s. 6d.

On the other hand, the supplementary Expenditure for 1857-58-59, which has not yet received the sanction of the Legislature, but which it will be proposed to charge against the Revenue of the period ending 30th June, 1860, amounts to the sum of £10,174 5s. 7d., being about equal to the amount of the Provincial Balances.

The supplementary Expenditure of the current year will also have to be provided for in the same manner.

It was apparent at the commencement of the present Financial year, that this operation would so far reduce the divisible Surplus for the year 1859-60, as to render it impossible to continue the existing rate of advances to the Provinces, viz., 5/8ths of the Gross Customs, if distribution were made of the full nominal Surplus Revenue of 1858-59.

The preferable course seemed to be to continue undisturbed the existing rate of advances, and to make no further payment on account of 1858-59, except to those Provinces which it was estimated would retain Credit Balances on 30th June, 1860, after the supplementary Expenditure should have been fully provided for, and to those Provinces, to pay such sums only, as with the advances of 5/8ths of the Gross Customs continued till 30th June, 1860, might be expected at that date to leave no Balance, or but a small Balance, due to them on their respective accounts. Wellington and Canterbury are Provinces in this category, and it is estimated that on 30th June, 1860, there will be no considerable amount due either way on their respective Surplus Revenue Accounts if there be now paid to the former the sum of £2,000, and to the latter the sum of £1,500.

The Sub-Treasurers at Wellington and Lyttelton have accordingly received instructions forthwith to pay those amounts into the respective chests of the two above mentioned Provinces.

The residue of the Provincial Balances appearing due on the 30th June, 1859, are already liquidated or in course of rapid liquidation by the current advances of 5/8ths of the Gross Customs.

It will doubtless be felt throughout the Colony to be matter of congratulation that the improving state of the ordinary Revenue should have enabled the General Government steadily to continue for a period of four years, the rate of advances established in 1856, and at the same time to make prudent provision for meeting the large increase of Expenditure occasioned by the English, Inter-Colonial, and Inter-Provincial Steam Services, by the charges for Military Defence now thrown upon the Colony, and by the other inevitable demands upon the Public Purse of a rapidly increasing community.

(Signed) C. W. RICHMOND.
Treasury, Auckland,
25th January, 1860.