to hand you annexed copies of resolutions passed at a meeting this day on the subject of the letter received from the Provincial Treasurer of New Plymouth dated 26th January, 1861.

I have, &c.,

(Signed)
A. W. SCALFE,
Honorary Secretary,
Taranaki Relief Fund Committee.

Mr William Gray, Nelson.

1st. That Mr Gray having submitted the letter of the Provincial Treasurer of New Plymouth dated 26th January, 1861, to this Committee, requesting him to take steps for the transfer of the funds received from Sydney to the joint credit of the Colonial Treasurer and the Provincial Treasurer of Taranaki with the Union Bank of Australia, Auckland, this Committee resolves that as their instructions from Sydney are that these funds are intended for the present relief of the sufferers by the Maori outbreak at New Plymouth so far as they may be required, and any balance that may not be so required is to be invested in the joint names of approved parties, this Committee cannot consent that these funds should be alienated from the purpose for which they were intended by the subscribers, and at the same time record their conviction that the subscribers intended this Committee should have a voice in the appointment of Trustees should any of the funds be invested through not being required for their first object.

2nd. That a copy of the foregoing resolutions be sent to Mr Gray.

A true copy.

(Signed)
WILLIAM GRAY.

Provincial Treasury,
New Plymouth, 2nd March, 1861.

SIR,—I have received a letter from Mr Wm. Gray, covering a copy of one from you to that gentleman, and of a resolution passed at a meeting of the Taranaki Relief Fund Committee on the 20th ult. on the subject of my letter to Mr Gray of 26th January.

I am desirous that no misunderstanding should exist on the part of the Committee as to the reasons which actuated me in making the application.

The Provincial Government of Taranaki has felt for a long time that the funds which have been contributed by the kindness of our fellow-colonists in New Zealand and Australia for the relief of the sufferers in the Taranaki war would, if not secured in some way, fall virtually into the hands of the General Government, and thus, instead of benefiting the sufferers, simply relieve the colony from a part of the burden it has undertaken in the adoption by the House of Representatives of the interim report of the Taranaki Relief Committee.

Recent instructions from the Colonial Secretary to Mr Gray have shown the correctness of this opinion, for in his memorandum of 16th February, 1861, the Colonial Secretary directs amongst other things "clothing, boots and shoes, to be supplied when absolutely necessary—when there are no other means of procuring them—from public funds, and medical comforts and extras to be supplied from private funds.

On the 26th November last the Provincial Council of Taranaki, in its anxiety to see a fund created on which the people might rely with certainty for some assistance at the close of the war, and at the same time secure the contributions from any chance of misappropriation, recommended "that all local subscriptions be paid into the Union Bank of Australia, Auckland, to the credit of the Taranaki General Relief Fund in the names of the Colonial Treasurer of New Zealand, and the Provincial Treasurer of Taranaki." This recommendation was forwarded by the Superintendent of Taranaki to the Colonial Secretaries of Victoria and New South Wales, and therefore it was that the resolution of the Sydney Committee, quoted in my letter to Mr Gray was adopted.

I am sure there can be no question with the Committee that the difficulties of the Taranaki settlers will be most severe at the close of the war. The destruction of their homesteads is all but complete, and the proceeds of such of their sheep and cattle as can be saved from an active enemy are contributing to the temporary maintenance of themselves and families. The sentiment is universal among them that a fund on which they can rely at the end of the war is a vital necessity. With it they would submit cheerfully to temporary privations, but without it the future would be a blank to them.

I can assure the Committee that I have no desire to exercise any control over the funds placed in their hands, or to deprive them of their voice in the appointment of trustees; but I submit that the resolution of the Sydney Committee would justify them in transferring to a general fund, vested for security in the financial officers of the General and of the Provincial Government of Taranaki, any residue there might be after providing "for any cases of immediate necessity requiring relief," and that the words "in conjunction with any other monies that may be available" point out the particular mode of investment recommended by the Taranaki Government.