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surrection, and indirectly by the depreciation in the value of stock, by the fall in the
price of wool and other staple exports; but above all by the entire destruction of confidence in the future of the Colony.

Fourthly—By the increase of Provincial Charges imposed last session of the General Assembly, and

Lastly—by the unfair detention in their hands, by the General Government, of funds which ought long ago to have come into the provincial chest.

But by retrenchments effected during the last few months, and still going on, the expenditure has already been reduced to within the income of the Province, and if the Province will only submit to a suspension of any great public works for a time, all claims outstanding against the Province will in a few weeks be liquidated. Amongst other causes of depression which affect the Colony, the cessation of the operations of the Panama Company deserve mention. While the dispersion of their fine fleet of ocean and coastal steamers must not only be a matter of very great regret and loss to the Colony, this port will feel it the more from its having been the head quarters of the company’s operations. Our regret is also added to by the approaching departure of Captain Benson, who, in his capacity of General Manager of the Company, as well as in that of a private citizen, has won for himself the esteem of the entire community.

It is not, in the present state of the Colony, without great misgivings that I venture to lay before you an estimate of Revenue for the ensuing financial year. Governments, in this respect, are precisely in the same position as individuals, and I fancy there are very few who would not find it difficult to form an approximate estimate of their income for the next year. Taking the receipts for the last two years as the basis, I estimate one-half of the Consolidated Revenue at £52,000, Licenses at £4000, Pilotage £2000, Incidental Receipts at £1500, Sheep Assessment £1500, Toll Bar £1800, Wharf and Bonded Store £2400, Reclaimed Land £2500, Territorial £9000, giving a total of £76,700.

Although from a Return that was published in the Provincial Gazette on the 2nd February it will be seen that there is a greater quantity than there ever has been of surveyed land open for sale, comprising some 177,000 acres at the upset price of £57,000, still it would scarcely be prudent to estimate the Land Sales at more than they have yielded this year, especially seeing that lands actually applied for and on which a deposit has been paid, are sometimes not taken up.

The estimate of Expenditure is, I regret to say, more easily made—it is so fixed and certain that the greatest portion is to all intents and purposes beyond the control of the Council.

The Provincial Charges voted by the General Assembly may be put down in round numbers at £21,000; the Permanent Appropriations, in the shape of Interest and Sinking Fund on your Loans, &c., at £18,900; the ordinary expenses of the Provincial Government at £17,500; the Land, Survey, and Engineer’s Departments £7400; Appropriation for Roads, Education, Immigration, and existing Debts £11,500.

Taking perhaps rather a sanguine view of your Revenue for the ensuing financial year, you cannot, so far as public works are concerned, undertake to do more than to keep the trunk lines in repair and provide for contingencies, but I do hope that you will be enabled to renew the Grants in Aid of the Common Schools in all districts except the centres of population, where the schools ought to be self-supporting.

It is no doubt unfortunate that in the present general state of impecuniosity there should be any withdrawal of the Government Aid hitherto afforded. Still, considering that of the £86,959 expended on District Roads, the Provincial Council has contributed £56,691, and at least a moiety of the sum expended on Educational Purposes has also been contributed by it—that without any addition to the local taxation of the last few years the major part of the district roads can be kept in repairs, and that the great expense of the erection of school buildings has, with the Government assistance,