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ment at £14,000—the interest on Loans, General and Provincial, at £10,400—the expense of the Survey and Engineers’s Departments, £3779.

I have placed on the Estimates for the Wanganui bridge, £5000, (being an addition of £1000 to the previous vote)—for the Wangehu, £1000,—for the Horokiwi and Pabautanui, £200—for the Pakuratahi, £600—for the Hutt and Silver Stream bridges, £200—for the Taueru, £350—for the Kounihoi, £250. The sums proposed for roads, are for repairs of the North Eastern and North Western, £2600—repairs of Ngahauranga, £300—of Gorges, Upper Hutt, £200—for construction of road between Featherston and Masterton, £1500; Masterton to Castle Point, £509; Beach Road, Wellington, £100; Belmont Road, £200; Wai-nui-o-mata, £200; widening Remutaka, £500; just bridle track to Mungaroa valley, £150; Pahautanui, £170; Rangitikei to Wanganui, £600; Rangitikei to Turakina, £300; Cliff Road, Wanganui, £150; Road up No. 3 line, Wanganui, £500; for grants in aid, £3000; for reclaiming land, £10,000; for Wharf, £15,000; for piling River Bank, Wanganui, £300; for additions to Lunatic Asylum, £400; for Tollgate & House at Kaiwarra, £350; for Powder Magazine, Lock-up, sundry other Buildings, repairs, &c., £1000; For Steam Subsidy £1250,—Education £600, for Ferries, Explorations and other undertakings £500. Without specifying smaller appropriations I may state that the proposed expenditure on Public Works is in round numbers, on Bridges £7800—on Roads £12000—on Buildings, Wharf and reclaiming Land £28000—on Surveys, Steam, &c., £5300—making a total expenditure on Public Works and Undertakings £53,100, an amount much greater than you can possibly expend, during the current year.

Still though a considerable portion of this will under no circumstances be required this year, it must be remembered that a very large sum which it is impossible to estimate, is every year required to meet the casualties and damages to the Public Works. If to this expenditure be added the cost of the Government, and Interest on Loans, the total expenditure proposed is £77,926.

Turning now to the “Ways and Means” of meeting this proposed expenditure, I am happy to state that here we have no difficulty, & when you bear in mind that we have, in common with the rest of the Colony, just emerged from a period of great stagnation and depression—that one third of our Land Revenue has been for the last two years retained by the General Government—that valuable blocks of land long since purchased from the Natives are still withheld from us—that a considerable balance is still due to us, you will readily understand how gratifying it is to me to be able to lay before you a more satisfactory statement of your Financial position, than I have done on any previous occasion.

From the Estimates of Revenue and Expenditure which will be laid before you to-morrow, you will find that on the 1st of January (1861) the Balance in the hands of the Treasurer was £3886—in the hands of the Agent in England £3925—that the balance due from the General Government on account of Surplus Ordinary Revenue was £3000—that the Interest due from Hawkes Bay up to the 31st December last, was estimated at £6000. Making the balances either in hand or due, amount to £13,811. I estimate that the proportion apportioned for the current year what we shall be entitled to claim from Hawkes Bay will be £400—the proceeds of the Sale of the Land already reclaimed at £8000; I further estimate 3-5ths of the gross Customs Receipts at £13,500; Licenses Publicans and Auctioneers, £1900; Registration of Deeds at £400; Pilotage £500; Immigrants Promissory Notes at £1000; Rates on Land and Contributions for Grants in Aid at £1500; Fees and Fines, Assessment on Sheep and other Incidental Receipts at £610—the Pasture Licences and Rents at £500; Land Sales (after deducting the 1-6th taken by the General Government) at £30,000. Giving a total of Receipts, of £75,720. This amount, in the event of our recovering during the ensuing Session of the General Assembly, the 1-6th of the Territorial Revenue for the last three years, impounded by the General Government, will be increased to £92,720. You are aware that last Session your Representatives succeeded in carrying through the House of Representatives by large majorities Bills repealing the clause in the Land Revenue Appropriation Act, under which the General Government was authorized to retain 1-6th of the Territorial Revenue of the Provinces in this Island, and compelling a refund of the amount so impounded. These Bills, though twice passed by the House of Representatives, were rejected by the Legislative Council. An understanding was, however, come to in the House, that if we succeeded in carrying similar measures next session, no opposition would be offered to them on the part of ministers in the Legislative Council. The members of Canterbury and Otago also pledged themselves to support them; so that, looking at the interest all the Provinces in this Island have in recovering the large sums thus withheld, I confidently rely upon the Bills receiving the sanction of both Houses.

In this Estimate, I have not included the value of the land now being reclaimed, and which it is calculated will realise when sold, especially if the wharf be carried out from it between £13,000 and £15,000.

Lest it should be imagined that I had overlooked them, I would state that there are several other matters which it would have been my duty to have brought before you, had there been any chance of the present session lasting beyond a few days. Amongst others I should have asked you to re-appoint the Committee appointed in 1858, to receive the claims to compensation of those parties who, owing to various causes, had been prevented preferring them within the prescribed time. I should also have again referred to you the case of the ‘Ann Wilson.’

It was likewise my intention to have introduced Bills for the management of various reserves, both here and at Wanganui; but these and many other measures must of necessity be remitted to the next Session.

I only remain for me, while congratulating you on the present position and future prospects of the province, to express an earnest hope that not only our past differences may be buried in oblivion, but that we may all be enabled heartily