that the cost of the passage of each immigrant
is £7 10s, the province would be liable for
£3 15s, payable by instalments at a rate not
exceeding 3s per annum, the debt being extinguished in three years, when its liability in
respect of the immigrant would finally cease
and determine. But it would during those
three years have been entitled to the capitation allowance and during whatever number of
years that allowance may be continued to the
provinces. This seems to me, as far as the
province is concerned, a sound commercial
and paying transaction, and equally so to the
Colonial Government, from the additional
revenue it will receive.

Were it not that I have virtually ceased to
be Superintendent, and that I am bound, as I
have already stated, not in any way to em-
barrass my successor, I should before this have
advised the Governor to commence a stream
of immigration into this province, at the rate
of not less than 2,400 souls a year. This would
give you probably 500 male adults, a number,
I believe, barely adequate to the construction
of the works in contemplation—would bring
to this port ten ships in the year, and would
probably be the means of introducing a capital
of £100,000.

With respect to railways—There can, I ap-
prehend, be no difference of opinion as to
what lines ought to be constructed. The
difficulty will be to get them placed in the
proper schedule, though the member for the
Wairarapa very nearly succeeded in placing
the Wellington-Napier line in Schedule No. 1.
But I see looming at no great distance another
difficulty. The Middle Island members, or at
any rate a section of them, seem disposed to
dispute the right of the North Island to have
any railways whatever, on the ground that its
territorial revenue is comparatively small—
but it ought to be borne in mind that the
land revenue of this island has been destroyed
mainly by the violation of the compact of
1856, which was effected by the Native
Lands Act of 1862—an act which was
carried by the votes of the representatives of
the Middle Island—and it must also be
remembered that the position of the
North Island would have been very different
to what it is but for the war policy so strenuously advocated and supported by the Middle
Island.

Turning now to the financial position of the
province:—I confess that far from taking a
gloomy view of it I believe that in a few
months the province will be entirely released
from its present difficulties, and will have
ample means to meet its requirements. In
fact, had it not been for the enormous increase
during the last two years in the provincial
charges made by the General Assembly, and
for the issue of the “Volunteer Scrip,” which
has already been exercised to the extent of
£6000, those embarrassments never would have
existed.

On the 1st of February your liabilities con-
sisted of an overdraft at the Bank of £10,000,
and of advances made by the General Govern-
ment of £12,600 making a total of £22,600.
I omit the balance of £980 due to the Road
Boards for provision has been made for liquidating it as soon as certain mortgages are
realised. All other claims to the 31st January,
when the Appropriation Act expired have
been met.

As I propose submitting to you an Appropriation Bill for a period of five months com-
mencing on the 1st of February and ending on
the 30th June, I have now to state the expendi-
ture proposed, and the means of meeting it.
The ordinary expenses of the Government
will be £8511; of land and survey depart-
ments, £3110; for repairs of roads, £1600; for
law expenses, £600; for interest and sinking
fund on your loans, £7352; giving a total ex-
penditure of £21,173. The receipts may be

stated as follows:—Capitation allowances,
£7500; provincial revenue, £7346; land sales
(already realised), £6100; estimate of land
receipts during the ensuing five months,
£5000; giving a total revenue of £25,946
to meet an expenditure of £21,173. It
is clear therefore that unless my estimate of
land revenue is exceeded, which is exceedingly
probable, you cannot very materially reduce
your existing liabilities.

But will the province be able to meet its
engagements for the future, and to carry on
the public works, absolutely necessary?
The annual expenditure may be stated as
follows:—Ordinary expenses of Government,
£19,000; Land and Survey Departments,
£7000; repairs of roads and contingencies,
£5000; interest and sinking fund, £16,500;
total £47,500. This expenditure must, under
any circumstances, be met.

I think the following estimate of revenue
may be regarded as moderate. The capitation
allowance for the current year is £61,500, less
provincial charges, £33,500, leaving a balance
of £18,000. This will be reduced next year
by £2500, but as the charges for the Wanga-
nui Court and Custom Houses and other items
will not appear on the estimates of next year,
and as it may fairly be assumed that the
population will go on increasing, we may safely
take the balance of capitation allowance available for provincial appropriation at £18,000.
The provincial revenue is £10,000, leaving a
deficiency of £19,500 to be met out of territorial revenue.

Now, considering the quantity of land
already surveyed and open for sale in the
Rangitikei-Manawatu districts, and that an additional thirty thousand acres will be ready for
sale within the next nine months; considering
further that lines of road through the district
are in course of construction, and that immigration has already commenced, I think that ...
at the very lowest estimate you may calculate
upon your land realising for the next few years
at least £35,000 a year. This would leave you
a balance of £15,500 for district roads, and
other public works, exclusive of the colonial
grant of £5000 a year to the Road Boards.
At any rate, there is nothing in either the
present state of your finances or in the future
prospects of the province to justify the opinion
entertained by many that the province is not
in a position either to pay its way or to
undertake any works, however necessary they
may be.

And here allow me to remark that as the
whole of your loans and land revenue have been
expended on public works and immigration,
it appears to me only fair that the interest and
sinking fund should be made a charge upon
the territorial revenue.

Should the land sales within the next three
months not enable you to pay off the Deficiency Bill of £10,000 some temporary arrange-
ment will have to be made with the bank.

With respect to the advances made by the
General Government, I am not prepared, until
certain claims I have made against it on behalf of the province have been adjusted, to
admit that the province is its debtor. On the
contrary, I believe that upon any equitable
settlement of accounts between them there
will be a balance in favour of the province.
And this brings me to another and new phase
in the never-ending—the ever-recurring Manawatu question.

You are aware that when effect was
attempted to be given to the judgments of the
Native Lands Court by carrying out the survey
of the block these surveys were interrupted
by certain natives, instigated by Europeans,
and acting under their advice in defiance of
the law. The Provincial Government during
my absence desiring, above all things, that the
peace of the district should be preserved requested the General Government
to use its efforts to prevent further obstruc-