via Marseilles 3 Adelaide place King Wm. St. London 26th Novr. 1864 My dear Sir, I have to acknowledge the receipt of and to thank you for your interesting letter of 5th Septr. last. The Government has certainly to congratulate itselfupon the progress of the province which has been so ably and judiciously fostered under your good guidance. I wish others of the N. Z. confederation were in as comfortable circumstances. I have given you a rough outline of the state of our money market. No sooner is the rate of Discount lowered than the market is flooded with gigantic financial operations This state of things augers dear money for the Directors of the Bank of England will put on the screw in order to check this tendency. During the month Otago 6% Debentures have been sold at 80. This indicates the value of provincial securities. The General Government must forthwith take some decisive measures in reference to the provincial loans, if they do not it will seriously militate against floating their own loan. I am glad you received Gorsts book in good time. I will endeavour to keep you supplied from time to time. I have sent the Treasurer an order on Messrs. Stuart & Co. for £71. 12. 3 which Messrs. Shaw Savill & Co have sent to me against the charges claimed by the Government for landing Emigrants Luggage and passage money of 3 gaisengers short landed ex Rangoon. They wish the amount to appear in Messrs. Stuart and Co's accounts against that ship and altho I have reluctantly consented to take this order it was not until I was assured that it would be duly honored and that they would reimburse me if it were not. I trust you will excuse my granting this latitude to this firm. I have not officially written you about the claim of compensation for the matter was in progress but has been stayed by the untimely death of Mr. Shaw which took place suddenly yesterday morning. After last mail left Mr. Shaw who had only receovered from an attack of Fever called upon me with the view of going into the claim, was he only able to do so partially but I had good hope so think that we would arrive at a satisfactory conclusion. Whether he had overexerted himself or not I cannot say but he had a relapse which confined him to Mis room and altho progressing favorably, so much so he sent me a message the day previous to his deceasethat he hoped soon to be able to see me and settle what we had begun for he knew how anxious to have this done, but about 4 o'clock next morning after an hour and half suffering from spasm of the heart he ceased to exist. Under such painful circumstances I am satisfied you will not consider me called on to guess the firm for a prompt settlement and they may also warrant my taking the order on Messrs. Stuart & Co. for the blow has fallen so unexpectedly that they are much disconcerted. I have not neglected to protect the interest of the Government and will in due season endeavour to arrange the claim with Mr. Saville. Mr. Shaw's death is universally regretted, his desire to promote direct communication between England and the various ports in New Zealand has been always acknowledged and to those interested in the shipping trade of the colony he will be greatly missed. To his firm his death must be an almost ir reparable loss. I will endeavour to get two suitable teachers to proceed to Hawkes Bay but it is would have been desirable if you had given me a little more information as to the districts in which the new schools are to be located and the number of scholars who are likely to attend them as the emolument of the teacher is contingent on the pupils. The low rate of passage money required to take Emigrants to America is one of the causes of so many going and still there is no superabundance of people availing themselves of the free passage to Auckland. The second ship sailed yesterday - The second Irish vessel leaves on the 18th of next month and 3rd English on the 10 Jany. There has been 2 from Clyde. The Wool market is down about 1 @ 1 1/2 per lb. a good attendance of both foreign and English buyers are attending the sales but prices are irregular. I am my dear Sir, Yours faithfully, John Morrison His Honor, D. McLean Esqr.