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able in some instances, has not been the only cause of the want of success, may be inferred from the fact that while few schools have been founded on the Government plan, fewer still, it is believed, have been established on any other. Had there been no other impediments than those caused by political opinion or religious zeal, it is scarcely credible, that those who were actuated by such motives would not have endeavoured to substitute some schools of their own, in the place of those, which they prevented from being established on the Government plan; and it is therefore probable, that other causes, such as those alluded to, have combined to prevent, and will for many years continue to impede, the progress of education not only in this, but in every province of the colony. It is no doubt to be regretted, that the warm, pious instruction should be admitted into the schools supported by the Government, and forced to you fall back on the secular system. It would be gratifying to the Government of this Province, if it could be assured that the public mind, while refusing to place its educational system on any other than a religious basis, had arrived at some harmonious decision, as to the extent and description of religious instruction, and the manner in which it might be given in the common schools. Any decision, at which a decided majority of the electors might arrive, having for its object the introduction of so much religious teaching, as embodied only truths common to all Christian sects, and which did not infringe on principles which the Government feels bound to maintain, would be gladly acquiesced in, by it. And while by such a course, the spirit of the recommendations of the Commissioners would be carried out, you would be able still to oppose those barriers, which you erected last year against the spirit of proselytism—against the interference of the clergy in the common schools—and against every attempt to introduce sectarian or denominational teaching.

It has long been a reproach to Wellington, and urged as one of its great drawbacks, that there is little or no available land within a reasonable distance; and yet there is probably scarcely any sea-port town in this colony in the immediate vicinity of which there is a greater quantity of agricultural land. The erroneous impression has been created by some of the best districts not having yet been opened out. Acting, however, upon the recommendation of your Select Committee of the first session, I propose that immediate steps should be taken for continuing the Karori road to Makara, and for making a branch road from Porirua road to the Ohariu. These two districts, which may very properly be termed suburban, are distant only six miles from Wellington, and contain above 20,000 acres of rich agricultural land. The length of the two roads will, I understand, not exceed four miles, and their cost is estimated at £3,000. As 7,000 acres are owned by absentees, and as these roads, which cannot be considered trunk lines, will raise their value some hundred-fold, it appears to me only reasonable that the land-owners should be called upon to contribute towards making them. A Bill has accordingly been prepared, which authorizes the Government to levy a tax of 2s. an acre upon all land within these two districts. Assuming that £1,000 will be thus raised, I suggest that £2,000 should be contributed out of the Provincial Revenue, an amount which will probably be repaid by the immediate sale of the land which is still unalienated.

Before proceeding to indicate the various public works for which grants will be proposed, I am happy to inform you that the funds which will be at your disposal, will, I believe, prove amply sufficient for all that can possibly be undertaken in the present state of the labour market.

Taking the balance in the hands of the Treasurer at £15,500—estimating the Customs Receipts at £15,000—Licenses and Fees at £2,100—Promissory Notes, due on account of Immigration, at £1,000—and other incidental receipts at £500—and believing that in the event of the sale of the township in the Wairarapa, we may calculate upon £4,000 from the Territorial Revenue; the total receipts for the financial year ending the 31st December, 1856, will not be less than

£38,000. As the cost of the several departments of Government will not exceed £10,000, there will remain a balance of £28,000 available for public works and undertakings.

While in distributing this balance, it is my desire to give to each district its fair proportion, there are yet certain works to which all attach a paramount importance. Our chief aim ought undoubtedly to be to connect the capital of the Province with its two extremities within the shortest possible period; for it is only by the practical lessening of distances—by opening up markets to distant places—by cheapening the transport of produce—that we can hope to maintain our connection with such remote districts as Hawke\'s Bay, or to make Wellington the emporium of the trade of the whole Province.

An expenditure of £5,000 upon the Rimutaka will complete the road to Burling\'s in the Wairarapa. A sum of £2,000 will enable us to open up a practicable dray road thence through the forty mile bush to the Rua Taniwha Plains, and an additional sum of £1,000 would extend the line to Napier,—thus diminishing the distance between Napier and Wellington by at least four days, and bringing Auckland and Wellington within eight days\' journey of each other, at a cost wholly insignificant—not worth a moment\'s thought—when compared with the advantages gained.

You will be gratified to learn that his Excellency proposes to take immediate steps for establishing a postal communication by this route between these two capitals, and has instructed Mr. M\'Lean to exert his influence in obtaining the assistance of the Natives in making the road through the forty mile bush. As it will probably facilitate his Excellency\'s postal arrangements if some portion of the expense were borne by this Province, I recommend that a sum of £500 should be voted for this service.

As it appears probable that even after the Rimutaka road is completed the greatest portion of the agricultural and pastoral wealth of the Wairarapa will be more cheaply brought to Wellington, by being shipped at Te Kopi, and having at the same time to the large sums which the purchasers of land in that valley have contributed to the Revenue, I have deemed it right to place a sum of £400 on the Estimates for improving the communication with that boat harbor. Knowing, further, your desire to foster the Small Farm Settlements—settlements which after a personal inspection I can safely say have had a greater progress than could have been reasonably anticipated, considering the disputes which have occurred respecting their boundaries, and the delay in completing the Rimutaka road,—I feel that I am only forestalling your wishes by recommending that £400 should be expended in forming the road between Greytown and Masterton.

Provision having thus been made for completing the communication between Napier and Wellington, I have, in order to connect this town with Wanganui, to propose a vote of £2000 for the road between Rangitikei and Wanganui, and a similar sum for the Ngahuranga line, upon which operations (so far as felling the bush) have already commenced.

The recommendations of your Select Committee on Ferries on the Northern Road either have been carried out, or will shortly be so. A large punt, built at the expense of Government, has been placed on the Wanganui river; a similar one will within a few weeks be established at the Rangitikei: and you will be gratified to learn that Mr. Commissioner M\'Lean,—(thanks to the Governor having provided the requisite funds,)—has succeeded within the last few days in obtaining a lease from the Natives for 10 years of the ferry at the Manawatu: so that as soon as the necessary arrangements for letting this ferry are completed, all the dangers hitherto attendant upon crossing the rivers up that coast will be obviated and removed, and the communication between Wellington and the thriving settlement of Wanganui will be rendered practicable for vehicles of any description the whole distance.

Grants will be proposed for widening the Karori, for making the Ohiro, and for metalling the Beach Roads.

Before dismissing the subject of internal communication, I would remind you that the execution of the various works I have proposed will necessarily