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I have received representations in the newspapers of the Colony, endeavoured to foment tribal strife and frustrate the purchase—attempts which, had they been successful, must have entailed upon the Province, and upon the native themselves, the most calamitous results.

Of the large sum thus paid, as usual the greatest portion at once found its way to the pockets of the harpies, who on such occasions are ever hovering about, ready to supply the natives with grog, and then to palm off upon them the most worthless wares. Some three thousand pounds have been invested in the Wanganni Bridge Debentures; a similar amount may have been lent on mortgage, or spent in the purchase of stock and land, and probably not less than two or three thousand pounds are still in their hands, and will ultimately be beneficially invested. Had the whole amount been invested for them at the ordinary rate of interest, the tribes would have been in receipt of an income four times greater than the amount of rent hitherto received by them from the squatters.

I am glad, however, to observe that there is undoubtedly a growing disposition on the part of the natives—a disposition which for years I have done my utmost to foster and encourage, to invest their money so as to secure to themselves a permanent income. In addition to the purchase money, the natives will derive a very considerable rental from their reserves.

I feel that I am entitled to say that in no previous land purchase has so liberal a price been paid, or such ample justice done to all the natives concerned in the transaction.

The thanks of the province are due to His Excellency’s Ministers for the readiness with which, in compliance with my request, they advanced (in anticipation of the sale of the land purchase loan) the funds required to enable me to meet my engagements with the natives.

At the meeting at Parewanui in December last, probably the largest gathering of natives ever held in this Province, the six tribes claiming to be interested in the land, after long and angry discussions, failed to come to any arrangement as to the division of the money, and they appealed to me for my opinion on the subject. Distinctly guarding myself from being bound to adopt the proposal, I felt from the first bound to evade the responsibility of deciding a question which, by the terms of our agreement, rested with the sellers—a responsibility which I had from the first declined to undertake. I, nevertheless, felt that if the meeting should break up without the completion of the purchase, the rival tribes would at once assert their conflicting claims by force of arms, and that the whole of the West Coast district would be speedily plunged into a general native disturbance. To prevent this, therefore, any further complications arising from the question, and to aid those chiefs who were really anxious, it almost amounted to a positive duty to preserve the peace. I at length submitted a proposal to the meeting, which, though at first violently denounced by the Ngatiruanui, was ultimately unanimously accepted by all the tribes concerned as perfectly fair and equitable. Only were then appointed by the sellers to receive the respective shares, and the distribution of the money was left entirely to the natives.

I stipulated, however, with the natives, that a liberal portion of their share should be set apart for the outstanding claims of the tribe, and for the secondly agreeing to the payment of the purchase money in two periods of one hundred and fifty of these (mostly venal) claimants have given their consent to the sale and signed the deed. There is, however, still a small number of Ngatiruanui dissentients to whom, in the event of their persisting in their refusal to accept the sum set apart for them, it may be necessary to make an award in land to the extent of such claims as are admitted by the sellers.

The question of reserves is now in course of settlement. The Ngatiruanui and Rangitane have accepted the reserves allotted them, and the Nga rauru reserves will be defined as soon as the claims of the dissident Ngatiruanui have been satisfactorily adjusted. The “back” rents, amounting now to between two and three thousand pounds, which were relinquished by me in order to prevent hostilities in 1864 are still unpaid, as I have been anxious to get all the minor details of the purchase arranged before re-opening a question on which an altogether free hand must be left to me. I have just heard from the very formidable nature of the attendance and forbearance shown by the Ngatiruanui and the Ngatiapa chiefs at the late meeting with respect to this matter.

After nearly four years of continual anxiety on this subject, I trust I may be permitted to repeat my assurance to you of the final and peaceful adjustment of what not only native difficulty: for, in spite of all that has been said and written, I do not hesitate to assert that the Rangitikei-Manawatu purchase, while from its very nature it has “magnetized” all the interested, probably the most laborious one ever undertaken in this colony—is a complete vindication of the sound policy pursued by successive Governments from the natives under such circumstances of the base of dealing Europeans, who, from selfish motives have, by intrigues with the natives, and misrepresentations in the newspapers of the Colony, endeavoured to foment tribal strife and frustrate the purchase.

At the large meeting held, as usual the greatest portion of the purchase money was paid to the pockets of the harpies, who on such occasions are ever hovering about, ready to supply the natives with grog.

Some three thousand pounds have been invested in the Wanganni Bridge Debentures; a similar amount may have been lent on mortgage, or spent in the purchase of stock and land, and probably not less than two or three thousand pounds are still in their hands.

In my recent visits I carefully examined the block with a view of ascertaining the best site for the township. I am satisfied that the township will have to be placed on the Rangitikei River, for the Oroua is only navigable for canoes during a part of the year, and there is certainly no eligible site on the Manawatu. The survey is now placing the township blocks as nearly equidistant as possible from the shipping place at Rangitikei, and more than thirty miles from Wanganui. In short few of the difficulties usually attendant upon the establishment of a new settlement will be encountered.

The Small Farm Association will naturally be disappointed at the slowness of these dealings with the natives, but by the time the remaining questions to which I have just referred are settled, the surveyed land in the townships of Foxton and Palmerston will be so far in advance of the demand, that the sale of the land purchase loan) the funds required to meet my engagements with the natives.

I am now able to inform you that I have received an assurance that the final adjustment of this land purchase will be shortly completed to the satisfaction of all parties. Walter Buller, Esq., bestowed upon him a substantial recognition of his valuable services.

The Small Farm Association will naturally be disappointed at the delay in placing the block at their disposal. However, having anticipated that the block might not be ready for settlement, I arranged in advance for the survey of the township sites.

I have recently visited the block and satisfied myself that the best site for the township is not less than thirty miles from the shipping place at Rangitikei, nor more than forty miles from Wanganui. In order to facilitate the establishment of the settlement, I have directed that the survey be so arranged that the township blocks are nearly equidistant from the shipping place at Rangitikei.

I will be remembered that when the purchase of the Wairarapa and Manawatu block was granted by His Excellency to the squatters who had taken leases from the natives in spite of repeated protests and warnings, both from the New Zealand Company and the Government, there are in the Rangitikei block some seven or eight settlers in precisely the same position. Some of these have expended considerable sums in improvements—all have large interests at stake. It appears to me that the fairest course would be to accord to these settlers the same terms as those accorded to Wairarapa squatters, who have differed from them only in that they should be required to pay £1 instead of 10s. an acre, and that their leases should be for twenty-one years.