Napier, Oct. 1st. 1867. My dear McLean, We got here yesterday early after a good passage the place is looking well, there having been plenty of rain. I find nothing done in the way of preparation for the Council meeting, not a single Bill drafted, printed or anything else. It is really too bad - so far as I can see, when we are away Hawkes Bay ceases to have any Prov. Govt. at all. Branden called on me yesterday he has sent back the cheque for the £2,000 I drew to pay Morrison. The Wellington manager did not advise him that the amt. was advanced as the other Bank advances were, to be re-couped out of loan. Please see about this and set it straight. I find financial matters here in a tremendous mess, nothing like our Estimated Revenue for the 4 months has been realized and the prospect of the eight coming months of the year is equally gloomy. The Estimates must be largely reduced and where to do it is almost more than I know. We shall not be far behind Auckland and Taranaki in the race for who shall wind up first - we should go out as soon as either of them were it not for the Loan which will keep us going a little longer. It is no use your coming back without definite agreement with the Bank as to advances on acct. of loan. We require at once: To liquidate debts now existing in the Province 3,000 Balance of Montmorency passages due in London immigration 414 Cash required to complete the Papakura purchase on new terms, and by cash payments but you can estimate about £7,000 £10,414. A credit to draw up to say £45,000 in all during current year ending June 30th./68.) i.e. inclusive of present advances, the whole advance required on acct. of loan will be as follows: General advance arranged by you £10,000 Morrison's draft advanced me 2,000 Papekura purchase deposit advanced Rhodes £12,500 This with items other side amounting to makes now drawn and advance required £23,914 and will leave a balance to draw on, for different accounts appropriated under Loan Acct of about £21,000 making in all the £45,000 I above named. We shall require all this, but the £21,000, that is what we have yet to draw can be spread over the remainder of the year. Will you see Russell and arrange this, for what I gathered from him there will be no difficulty supposing he is successful in getting his views adopted by the Govt. I conclude as a matter of course that the Consolidation of the loans is definitely settled by - I need not say more on that head I think. On enquiry respecting the Confiscated lands in our Province I find them clogged by some very ugly liabilities of which as you did not mention them I conclude you are unaware. There is a sum of £1000 due to Locke for services for Native Land Court which will have to be borne I suppose by whoever takes over the lands. Estimated survey of the remainder of the Block before it could be let as Runs £800 survey of Native Reserves £500 - in the Block, making in all £2300. The estimated receipts are My sale with next 12 mths of select portions £600 Rental of Runs to be let £1300 In other words this year we should have to find £2300 and whatever sum might be awarded as Compensation to Friendly Natives for their claims and we should receive £1300 considering that we have not two years to live as a Province this makes it a bad investment. You had better consider these points before taking over the lands. What about the Native lands that we were to have sold the Gen. Govt. for the location of the Hauhass - could you manage to induce the Govt. to carry out that bargain and give us the £5,200 for the land, it would be a great help in these times. Brunner says the Council sitting is to be a stormy one. The opposition are breathing fire and brimstone but I suppose it will all evaporate in smoke. The place is terribly dull and everyone hard up - I am trying to cheer them up with hopes of better times coming. You must get up as quickly as you can it is most difficult to deal with the finance whilst there is any uncertainty as to loan advances. I am working at the Estimates, but it is a miserable task and how I am to arrange it I don't know - it -is simply a case of having no end of establishments and no money to pay them with - in private life of course the establishments would go, in the present case and with the necessities of Provincialism I don't see how the Establishments are to be done away with - all I know is, we shan't have money to pay them. The Council met yesterday and the proceedings opened by a discussion to point of order as to the position of the Govt. in absence of the Super., and Tanner-Whitmore etc. Wanted to know if we were prepared to carry out the principles of Responsible Govt. confessing also an opinion that you should not sit in the Council. I answered them without in any way pledging ourselves to anything and told them for the few months we have to live as Province we may as well go on as usual. The Cemetery Bill we passed through the other Bills I postponed not having had time to look them over. I don't think there is anything else to tell you. Referring to the Loan advances, and sums now required, of course the £7,000 to complete on other terms than these arranged by Rhodes, the purchase of Papakura, will not be all wanted for a week or a month but will be all wanted say within 3 months. The following are heads of the outstanding liabilities: Roads - acct. due £1500 Bridges - 500 Salaries of officers - 986 Balance Montmorency 414 Papakura purchase Goodbye, Yours truly, J.D. Ormond. P.S. By the bye, Carter came to me in a great way about Webb being sent back to his office by you. I suppose you did not think about what you were doing for the installing Webb there again would be simply upsetting the whole work of that office so far as Carter is concerned, and placing an enemy to ourselves where he ought not to be. I gave directions at once he was not to be taken in, not being required. There is a lot of talk here too about some letter you wrote Cuff abt. a Bill for securing Maories against claims for debt. It appears Cuff has shown about your letter. Whitmore's £600 a year is also being discussed and if be not struck off the Estimates the Prov. Council will memorealize that it be. We are blamed for it - you must get it struck off.