MR MONTGOMERY AT AKAROA.

Globe, Volume I, Issue 92, 16 September 1874, Page 3

MR MONTGOMERY AT AKAROA.

Mr Montgomery addressed his constituents in the Town Hall, Akaroa, on Saturday evening. There was a large attendance, the Hall being filled. On the motion of Mr J. D. Garwood, MrS. Watkins took the chair. Mr Montgomery, who was received with applause on rising, said—Mr Chairman and gentlemen :—lt is now little more than a month since I last had the pleasure of addressing you, and at that time you expressed a renewal of your confidence in me, which was exceedingly gratifying. Since that time, however, I have again attended in my place in the Assembly, and as matters of large interest to the colony and to you, as part of the people of the colony, have since transpired. I deemed it only my duty to come before my constituents for the purpose of explaining what I have done —what action I have taken in the matter, and to give my opinion so as to throw forth a few ideas which may be food for discussion, and tend to bring about a fixity of thought which it is very desirable to have. The principal question before the public is, of course, the abolition of the pvoviuces, but before I speak upon this question and give you my ideas upon it, I wish to refer to a matter upon which I spoke when I addressed you before in this room. It is a matter of local interest, and you will, perhaps, rememb-r that I brought before you the fact that Mr Vogel in his financial statement had come clown with a proposal that the Government should take over all the main lines of railway in the colony, [and relieve the provinces from paying interest and sinking fund, and had said that what stood in the way of this being done was a piece of line being the Winton and Bluff line in Otago, and the Lyttelton and Selwyn line in Canterbury. The provincial authorities in Otago took action in this matter, and agreed to the sale of their portion of these lines. The General Government, acting upon this, agreed to purchase the line, and give the money to the Provincial Government for the purpose of milking branch lines in the province. It seemed to me, as one of the repre?entatives of Canterbury, that it was riglit (hat the same course should be pursued as regarded Canterbury. The line between Lyttelton and Selwyn was made partly our. of provincial revenue, and partly out of borrowed money, the value of the line, rolling stock, and stations being estimated at from

£700,000 to a million. Now, as the General Government had taken over the lines in the .North Island, and relieved the provinces of the payment of interest and sinking fund—though it was necessary to do this for the provinces of the North Island, because they could not pay it—[ thought it was not right that Canterbury should be deprived of the advantages thus to be derived from the 'taking over proposed. Hia Honor the Superintendent also agreed with it. and the Ministry introduced a clause in the Railways Act about to come before the House. We thought that if we had this money we should be in a position to make our branch railways, which would be very useful to act as feeders to the main lines, and bring into communication with them those parts of the country which would otherwise have no means of doing so. The clauses passed in the Lower House, but when they went up to the Upper House it was there thought inexpedient to increase the debt of the colony by purchasing these lines, and it was also thought that Canterbury being so rich itwaa unadvisable to give her any more. At all events it was thrown out, and the Government then introduced a Bill into the Lower House with two clauses left out. viz, one providing for purchase of the line in Otago, and one in Canterbury. The Premier in so doing expressed his regret at the result, and he pledged his Government as strongly as a man could do to bring in a Bill next session to purchase the Otago and Canterbury lines. I wanted to move a resolution affirming the desirability of doing this, but the Premier expressed to me in the House a wish that after the decision of the House on the question I should not press the resolution, and I therefore withdrew it, as I did not think it necessary after what the Premier had stated to jeopardise what I believe will be of very great advantage to Canterbury. [Cheers.J I come now to the abolition of the Provinces. You will all remember that it was generally supposed that the session would be a very short one, and that no important questions—questions involving changes of any moment—would be brought forward. It was never dreamed that so large a measure as a total and radical change in our constitution would be brought before the House, and regarding the utterances of the Premier—not those of the last few weeks, but the whole tenor of his political life—which are distinctly those of an upholder of provincial institutions, I should have thought him to be the last man to have proposed such a change as he has done without first consulting the people upon it. I will read you his own words, because they contain utterances of so emphatic a character, are put into fewer words, and much better than I could do it. You may remember that in 1870, in introducing the scheme of immigration and public works, he put before the country a statement—a paper I am bound to say showing as much ability and as much lucidity as any paper of the kind I ever read. A man in the position of Mr Vngel standing up to deliver a financial statemeut must, and should, weigh well and carefully all that he there says, beeause it has an immense bearing upon the destinies of the colony, either for good or ill. Now, in 1870, in his financial statement, he says:— " In justice to Jtbe provinces, and to my own opinious, I must say that I think in relation to provincial institutions, we are apt to mistake cause for effect. I admit that the provincial divisions of the colony make it a work of enormous difficulty to come down with any proposals for a comprehensive scheme of colonisation. But to suppose that those divisions are consequent upon the political institutions of the provinces Jis, as I have said, to confound causes with effect. Provincialism, as it is called, is consequent upon, and not the cause of the manner in which the country was settled. It was an ambitious effort to attempt to settle the colony from so many points, but the effort was made, the work was effected, and its consequences survive. You have to deal with a number of different communities. Provincialism represents not only their different ideas on the different circumstances in which they are placed, but it represents also their strong protests against an indisciiminate, precipitate, and arbitrary fusion. If we were dealing with colonies having each only one metropolitan centre, we should propose to apply a new colonising scheme gradually commencing from one point, but to do so in New Zealand would involve great injustice, not because of the political organisation of the provinces, but because those provinces contain different communities composed of men who have built up the provincial edifice on the clear understanding that something in the nature of proprietary rights attached to it. We may undervalue local distinctions, but why should the inhabitants of one province submit to a lengthened period of depression, whilst the means they partly contribute are devoted to consolidating the prosperity of another province." Now, gentlemen, I say that no words could put the case of the retention of provincial institutions stronger than those which the hon gentleman used himself, and which I have read to you. This was in 1870. In 1873, in making his financial statement and speaking on the question of provincial loans for public works, the Premier gave utterance to the following :—" But the colony cannot do justice to such works. Neither my colleagues nor myself can be considered partisans of either centralism or provincialism. I confers myself to have frequently wavered in opinion, appalled by the difficulty, on the one hand, of preventing the provinces from destroying the necessary power of colonial action, and on the other, of preventing the centralising tendency from destroying: the usefulness of local governing bodies without supplying or being able to supply their place, The policy lam about to elaborate I describe as the result of a search after equilibrium—or as nearly a state of equilibrium as is possible amidst the many varying circumstances and contending interests with which we have to deal. Broadly, we want the colony to take charge of colonial works ; the provinces to take charge of local works. Broadly, also, we class main railways and immigration as amongst colonial works : other works necessary for the settlement of the country we class amongst the local. We do not say that there will not from time to time, come before us for consideration works the classification of which will be difficult. If I am asked why the colony cannot take charge of the whole of these works, I reply that we must no longer palter with a great question. Because of our disinclination to come to a decision, the paM has been a series of compromises, and the Assembly has at times usurped provincial functions without the requisite knowledge how to exercise them. If the Assembly means to do the work of the provinces, then the provinces should be abolished, the waste of labor on provincial legii-

lation be saved, and provision be made for a thorough system of colonial government. I express the opinion that the legislative work of the provinces and of the colony, if performed by one body of men, would necessitate the sitting of Parliament for at least ten months out of the twelve. I shall be told that the parliamentary work of the Empire itself occupies but a small portion of the year. Granted, but the circumstances are different,. In a country with hundreds of years of history, rapid legislation is rarely necessary, and generally undesirable. A young country requires, as do young children, more care and looking after. The argument that an old and wealthy country requires proportionately more parliamentary attention than a y&ung and comparatively poor one. would be fairly paralleled by the assertion that infants might feed, and wash, and be mindful of themselves—that the attention of nurses should be devoted to adults. But where are we to find in the colony, men to whom its legislation should be confided, who are willing to give ten months in the year to the task ? We find with difficulty men to whom ambition of the power to be useful, and of the position of a Minister, is inducement sufficient to lead them to consent to the personal sacrifices the position entails; but to be simply members of Parliament does notoffer adequate temptation to reconcile men to entirely relinquishing their occupations, and we have not in the country a sufficient number of leisured men, on whom to rely for its legislation. Therefore if a strictly colonial system were the best, it could not be satisfactorily carried out ; but I am not sure it is the best. Even in the United Kingdom, thoughtful men begin to see the necessity of a system of government intermediate between the central and the purely municipal ; or, in other words, of strengthening the system of county government. In the colonies, I think, the want of provinces has shown itself, and to supply it Road Districts are becoming powerful by some such process as that by which, according to Darwin, man has developed from a lower type. Road Boards, by the process of natural selection and the survival of the fittest, develop into shires, and shires may develop, indeed are developing, inio provinces. I may be told that man's perfection arises from his slow development. Grant that in our case the highest form of local government has been toerapidly developed and is full of imperfections ; surely it is better now to work from the vantage ground obtained, than to endeavor to throw back our local system, in order that it may attain a higher form more slowly. Bui my illustration would do me injustice if it be held to indicate that I disapprove of road districts or wish to Bee them abolished. On the contrary, I want to see them permanent, and I believe that permanency can be bettei established by an intermediate form of go vernment to work with them and over them. than by starting them on a career of ambitioi. to supersede themselves by the attainment ol a higher and different form of power. In the system of diffusion which is to make the whole colony prosperous, Road Boards have a most useful part to play, and it would be as improper to allow them to usurp provincial power, as to allow the provinces to usurp colonial power." This is the language of the Premier in 1873. I will now read you a short extract from Mr Vogel's financial statement of 1874. This, you must remember, is only a few weeks ago. In making his financial statement he says :—" The case of the provinces is not, however, dealt with by merely exceptional advances for public works. There are three provinces which labor under the great disadvantage of contributing largely to the colonial revenue without enjoying an adequate provincial revenue for local purposes. The provinces which enjoy large revenues feel no difficulty in contributing to the colonial revenue ; for whilst they make their contributions, they enjoy local expenditure out of taeir own revenue. But the case of some provinces is simply constant contribution —a constant disheartening tendency to the result so familiarly explained by the slaughter of the bird which lays the golden egg. As a mere matter of policy, it is wise, in the midst of the immense increase of the colonial revenue, to specially remember some of the provinces which contribute it, and which are at present at a great disadvantage as compared with others. It is not wise to let parts of the colony languish under a sense «of wrong—to allow them to feel they are still becalmed, whilst the favouring breeze removes from their sight the vessels originally becalmed with them. The condition of the three , provinces—of Auckland, Westland, and Nelson—as compared with the other provinces, is lamentable, and requires assistance from the surplus of the Consolidated Revenue. Auckland's case is by far the worst. It will take that province some years to work itself round, and to enjoy the future which I firmly believe is still before it. Westland deserves much sympathy. Weighted with a great public debt, its Government, eagerly anxious to develop it, find themselves hampered in every direction. Westland has proved a mine of wealth to the colony. The west coast of Nelson is somewhat similarly placed: Nelson will, however, now have the means, as it appears its rulers have the inclination to use those means, to become a prosperous province. These considerations impel us to recommend that out of the year's surplus a special allowance, in addition to that already provided by the scale of capitation allowances, be made to Auckland, Westland, and Nelson, of £25,000 to the first, .£IO,OOO to the second, and £SOOO to the third. When honourable members Btudy the whole of the circumstances, they will not, I think, grudge the proposed aid." I read these extracts because I wish to put the case fairly before you. In this, you will perceive, that tins Premier was in favour, as strongly as he could be, of the retention of the provinces. There was no idea shadowed forth of the abolition of the provinces of the North Island. It did not appear in the statement made ten days after Parliament assembled, nor was there anything to give any one an ideajof this until a Bill called the State Forests Bill came before the House. Probably, as you will have read of it, many of you are acquainted with the provisions of this Bill. One of its provisions was to take 3 per cent. of the whole land in any province for planting as reserves. Now, take Canterbury as an example, 3 per cent, of the whole land thus proposed to be taken would amount to 260,000 acres, and I contend that it would take more than the money proposed to plant the tenth part of this, let alone throughout the colony. It was opposed generally in the House, more particularly by those who, like myself, hold that the Land Fund is a sacred trust. One member in particular—though others spoke strongN against it—spoke very keenly and strongly against the Bill, so much so that it raised the ire of the Premier, that member was Mr

Fitzherbert, the Superintendent of Wellington. He spoke in such a manner as was not to sav calculated, for it did sting the Premier to the quick, and this was the first time the idea- relating r.o the abolition of the provinces passed the Premier's lips ; at least, so far as h- knew. In re lying to the speech of Mr Ki-zuorberfc on the Forests Bill, the Premier run !e a very severe attack upon the provin cial authorities of Wellington. He especially singled out Mr Fitzherbert, and likened him to a tree, said to be neither sightly nor savoury -in fact, he called him the blue gum of New Zealand. He spoke as strongly as it was possible for one man to do of another. There was, I may tell you, a bitter feud between these two distinguished politicians, or, I would rather say, that they interchanged those compliments which are usual to politicians who may happen to be antagonistic. Some short time after this, a caucus, as it is c died, or a meeting of members took place, when, I understood, 46 attended, and the result of the caucus was that they urged upon the Premier to bring down resolutions bearing upon three points, or rather containing three distinct affirmations, viz.:—first, the abolition of the North Island provinces; second, the retention of the Middle Island revenue ; and thirdly, the retention of the seat of Government in Wellington. When the resolutions, which I have no doubt yon have already heard of, came before the House, many members objected to such a large question as that of the abolition of the North Island Provinces being discussed and settled, before the constituencies of the colony had had an opportunity of expressing their opinion upon it. Mr Fitzherbert moved a resolution to the effect that the constituencies should be consulted by a dissolution, butit was carried against him by a large majority. Mr Swanson then moved that the bills giving effect to this resolution —that is,) containing the practical working out of the details of the scheme —should be circulated for two months before the session, so that the people might know what really was intended to be done, but this was refused also by a large majority, and the House pledged itself actually and entirely to the abolition of provincial institutions in the North Island without knowing what was to take their place. Indeed, I expect this large question—a question involving far more than you are perhaps aware, will bo decided before the people have an opportunity of expressing their opinion. By an expression of opinion, I do not mean as, on the present occasion, when I come forward to address you, but by 'he various members coming before their constituents on this question for re-election; then and then only, can the voice of the people be heard. [Cheers J I will tell you my ideas of the subject, so that you, as my constituency, can see what I did on the subject. I objected to the change as being a surprise on the country; and further I objected to it as asking the House to abolish provincial institutions without stating what there was to be put in their place. I held the opinion, and still hold it, that no great constitutional changes should take place in the country without the electors from whom the members derive their power being consulted. [Cheers.] I sav that for a. Parliament in the last session of its life to pass an Act altering the constitution of the country,—and ths, too, without consulting those who returned them—l say that this was nothing less than treason to the people who sent them there—[cheers] — and I say that if I thought that by going up there and voting against such an Act as this, I had been the cause, however remote, of placing an obstacle in the way. I should say that I had at least done one good thing in my life. [Cheers.] I will now go on to say a few words on the land fund, because with these great questions our land fund is intimately connected. The Premier, I may state in passing, said that he would bring in legislation to secure the land fund, but myself and other members from Canterbury pointed out that we did not want legislation, for that which we already held as a right without further legislation. As regards the compact of 1856, which is made a point in the Government resolutions, I will read you an extract, from the Act of 1858 which was founded upon that compact, with reference to our land, and you will then see that any legislation securing our land fund is simply a work of supererogation. The compact of 1856,0 f which we hear so much, is as follows : " That, in accordance with a former resolution of this House, the province of Auckland be relieved retrospectively, as well as prospectively, from the New Zealand Company's debt ; and that, after payment of the sum due to the Company on the sth of April, 1857, the balance of the loan of £200,000 be made applicable to that purpose, leaving any deficiency or excess to be adjusted when the same be ascertained; the province of Auckland, on its part, bearing the sum of £9ll 8s 6d, under the Land Claimants' Ordinance, New Ulster, as a debt incurred for its exclusive advantage. That this House is of opinion that the administration of the waste lands of each province should be transferred to the Provincial Government of such province, and the land revenue thereof made provincial revenue subject to the following charges:—The province of Nelson to be subject to a charge of £66,666 13s 4d, to bear interest at the rate of four per cent, with a sinking fund of two per cent. The province of Canterbury, to be subject to a eharge of £6fi,666 13s 4d, to bear interest at the like rate, with a sinking fund at the like rate. The province of Otago, to be subject to a charge of £66,666 13s 4d, to bear interest at the like rate, with a sinking fund at the like rate." This was the arrangement of 1856, or what you have doubtless all heard of as the compact of 1856. On this legislation took place in 1858, and I will read you some of the clauses of the Act bearing upon the matter, they arc as follows: —" An Act to appropriate the revenue arising from the disposal of the Waste Lands of the Crown in jJew Zealand. Be it enacted, &c, clause VII. After and subject to the payments to be made under the provisions hereinbefore contained. all the revenue arising from the disposal of the waste lands of the Crown in the several provinces of the colony shall, in pursuance of warrants to be from time to time granted by the Governor, be paid over by the receivers of land revenue to the respective treasuries of such provinces for the public u»es thereof, subject to the appropriation of the respective Provincial Councila." Now, gentlemen, that is the Act of 1858. It is upon this Act, and upon this arrangement known as the compact of 1856, that we hold our land, that we administer our land revenue, and that the money derived therefrom is applied to its proper use, such as the making of roads and bridges and the opening up of e< mmuntcaiion in various localities. If we can place any reliance at all in the utterances of public men, we must take those of the

Premier, more particularly as he has said that to infringe that Act would be impolitic, and in the highest degree dishonest, and that he would not be a party to it in any way. At the same time I believe that he did not utter a word which he did not intend to act up to. Rut the Premier has changed his opinions frequently—no doubt in compliance with his sincere convictions —and I have read you whot he said in 1870, 1873, and 1874, and now he says abolish the proviuces in the North Ldand, and that too without giving us the slightest idea or conception of what it will lead to. The Premier has shown, 1 think, that when circumstances do not favor him he is perfectly willing to be guided by circumstances, and to suit his policy to them as they arise. It is just this that I dread, because it springs from conviction, not on afterthought of what he was going to do in his mind. This is what alarms me. Because if a man brings down a proposition to change the whole consHtution of the colony after declaring a few days previously in his financial statement that he does not intend any change, he may change his opinion as regards the land fund as he did regarding the provinces. Besides, he may find it necessary. There are plenty round about him who would counsel him to make the change, and indeed may not the very necessities of the colony induce him to do so. [Cheers.] At the commencement of the session the amount of indebtedness for which debentures were afloat was 12J millions, and the amount of borrowing power, which has notbeen exercised is between two and three millions. The Premier the other day in the House asked for on extension of the borrowing powers to the amount of four millions, making altogether the indebtedness of the colony when the borrowing powers already granted have been exercised, amount to upwards of eighteen and a half millions. Why I dread this extension of the borrowing powers of the colony is that when the Premier brought in a Bill to borrow four millions, no person in the House except Mr Gillies rose to object on any large ground. Mr Gillies in his speech on that occasion said that we were hurrying on at a pace which we should all regret in the end, but the House would not listen to caution, and but few seemed to take any very threat interest at all in it. The four millions asked for by the Premier was granted almost without any discussion at all. It has been frequently asked what amount our debt will have reached by the time these works upon which we are now engaged are finished? Some say about twenty or twenty-five millions will see us through, but some that not thirty will do so, unles« the borrowing powers of the colony are checked. I think, indeed, that what we have now, viz—18£ millions, will tax to the u+most the poweis of the people, and will press heavily upon us. I have made a little calculation with regard to this matter, and have got a gentleman well conversant with colonial and provincial finance to examine the matter with me, and I will put in a very few words, and a very few figures, how I see this matter, and also endeavor to Bhow co you that there is very grave cause for alarm. The Customs and stamp duties, <fcc. being our indirect contribution to the colonial revenue last year, produced £1,364,237. Now, in the calculations I am going to put to you, I have calculated our contributions to the Customs' revenue as onefifth, because we are as a province equal to one-fifth of the whole colony, and by seeing the effect upon us as a province, you can judge of the effect upon the whole colony. Making allowance for duties collected elsewhere, in Wellington, Otago, &c, the province of Canterbury paid during the past year to the General Government, as its con-, tribution to the consolidated revenue, the sum of £280.000. You will se<3 that £280,000 on a population of some 60,000, must come exceedingly heavy in the way of taxation upon them. Now I find that of £280,000, after deducting all charges, including the capitation tax, which may be considered applicable to Canterbury, no less a sum during the year than £160,000 went to the General Government for General Government purposes. These General Government purposes means interest on war debt, &o, and not provincial debt of £40,000 incurred for railways, &c.—this is paid out of a different fund of our own—but purely what may be considered General Government expenditure. If we come to increase the taxation — which we must do before long—the consideration comes where to levy it. I have heard many people say put a small property tax on, and I will endeavor to showyouwhat such a tax will produce. The annual rateable value of property in the municipalities and Road Boards, is £512.888, and a rate of one shilling in the pound will therefore produce £25,644. If we had to raise the amonnt paid over to the General Government, as indirect taxation, by means of stamps, customs, and other duties : if I say this amount came directly from the pockets of the taxpayers instead of indirectly—the amount would be something between 6s and 7s in the pound. Whether you put it in one way or the other, the people have to pay it—and you will see that, if we have to put on an income or property tax—and the former has been spoken of—and we do not check the borrowing powers, a property tax of one shilling in the pound would not go far to meet what may be required. If the fatal facility of borrowing be not checked, 2s_ 6d or even 5s in the pound may be required yet. I bring this before you for your consideration, because it is a large question particularly for you to consider, because there are many large property holders, who makers of the laws of the colony, who will object to pay either an income or a property tax, while the land fund remains and might be applied for this purpose. In a Parliament which does not look favourably upon Canterbury or her land fund, I ask you, is it likely that a tax on nroperty will be passed and leave the land fund untouched 1 Indeed, I think it is a wise thing to consider how all the land fund is likely to be ieopardised by the contracting of these enormous loans, and that is why I have brought before you the question of further increasing our borrowing powers. You will find that the large holders of property will refuse to tax themselves, and will put it on the land fund instead. [Hear.] I wish also to point out that in the change from provincialism to centralism many who voted for the consolidation of the provinces will endeavor to do away with the compact of 1856, which gives you your land fund, and to prove this I will read you an extract or two from a speech by a man of great ability and industry, a speech which has been reported in the local papers, and which is well worth perusal. The speech is that of Mr Swanson, who voted against the abolition of the provinces, and who said out what he thought on the subject, unlike some faint-hearted men

who would not speak out, but were forced to vote. He said —" I have not the slightest respect for the compact of 1856. I say thatgentlemen from the south need never in the slightest degree expect that the great msijorit.y of those who come from the north will pay the slightest attention to it. I tell the House that if this measure is carried, it will be a test question in the province I come from, and we shall be sent down here to burst up this compact. Plenty of men will be found who have no scruples about the matter." Further on he says—" Let me go back to where I started from. 1 believe the whole key to this resolution is cash—that financial difficulties are before us, but if the present Government can get hold of the land fund, it will last their reign, and let some future Government look after an income tax or property tax. Whether the people consider that this is a proper sacrifice for them to make is for those who have a large fund at their disposal to think over. I may tell the provinces from which those gentlemen come, that there will be no mercy shown to them; and if I can judge from the speeches on the other side, there will always be found people either seeking office for themselves or for their relatives, who will be happy to go in for the abolition of the provinces of the South as well as of the North. They may depend upon it there will be a compact body in this House, ready to drive home the wedge, and then this solemn compact of which we hear so much will go up like smoke." These are the utterances of a man who thinks the General Government, by taking too large an amount of revenue, injured his province. I will now ask you to bear with me while I read you the utterances of a gentleman, recently addressing a meeting of 600 persons at Nelson, and whose speech was enthusiastically received. Mr Luckie says :—" Canterbury was rolling in riches, and her exchequer was overflowing. It was right that the land that she held as the property of the people of the province should be applied to the benefit of the colony. Canterbury might howl, and Otago might call out, but the day was coming when their revenues should be made colonial revenues." These are the sentiments which were received with rapturous applause by gentlemen however who have no land revenue of their own. But I would ask you if they would applaud so strongly if they were going to make the sacrifice themselves which they would enforce upon ns. [Cheers.] I now come to the reason why it is that the North Island has not a land fund. In the first place the North Island never had the land to induce people to settle ; there was so much better in the South Island that the estate was of comparatively little value. The Government have either conquered or bought out of the mo iey of the colony, or rather of the loan, for which we are responsible, an estate in the North Island ; they have been doing so during the last two years out of loan. However, I don't object to this, as we might do worse than this with our money, so long as it is fairly and honestly purchased. Nelson, like Canterbury, had a large area of splendid land, but it was sold at a low price and in large blocks, and the consequence is that there are now blocks of 4000, 5000, 20,000, 30,000, and up to 90,000 acres of the finest land in the colony occupied as a sheep walk, instead of being occupied by human beings. Westland, though possessing goldfields, had not a large extent of land suitable for settlement ; while it will be many years before its people will be able to .feed themselves. It has plenty of timber on the land, which will be a source of wealth and employment to the people ; and it has also gold ; but it has not, as I have said, much land for people proposing to settle on it. Therefore, it has little or no revenue wherewith to make roads, bridges, &c. Otago and Southland have a large landed estate, and people in large numbers are already settled upon it in various directions ; good roads have been made, schools founded, and generally the work of colonial progress has been pushed forward. But in Canterbury, though we have been at times hard up—though we have never had to go and beg from the General Government; we never descended so low as that—it has never occurred to any man to be a statesmanlike view to lower the price of land, because when this is done you pass away the land which it is necessary should be used for agricultural and farming purposes to sheep farmers. The tide of prosperity which has set in over Australia and over this colony is not caused by the immigration and public works policy alone, but. by a combination of causes which are bo large that it is difficult to account for, or to say more about than that it was so—consequent on this prosperity large sales of land have taken place, and we have large sums of money in our coffers. The Government felt that it would not be right to do works which, in the scarcity of labour, would cost 10s—and not then do as much as 5s would do now. Therefore the Government —and here I must say that it was not myself and colleagues, but my predecessors in office —wisely determined not to go into the market and compete with private enterprise, when labor was scarce. [Hear, hear.] Thus we saved money, and have it no 1 " in hand to do works which may be necessary, and, if required, to afford employment to men requiring it when wages might be low. [Cheers.] Now, however, it seems that our very prudence is turned against us. It is said outside the province that Canterbury has no right to roll in wealth, but when we know that these provinces have sold their birthright, it behoves us as colonists of Canterbury, to make a stand for what we consider to be our rights. [Cheers.J I will now say a word or two respecting the possibility of saving the provincial institutions in the Middle Island, when the provinces of the North Island are abolished. Mr Stafford, a gentleman who deserves to receive the very highest amount of respect for his large views and clear sightedness id matters relating to the colony, says that the abolition of the North Island provinces, means the abolition of those in this island, and he says —" I believe in it, and shall support it, but don't distress yourselves about it." Now, I say that it is more than probable, if the Premier brings down a Bill for the abolition of all the provinces next session, it will be carried by as large a majority as were his resolutions for the abolition of the North Island provinces in the last session. And when this is done—supposing it to be carried—what will become of the land fund: because it is, by the very fact of the grouping together of these provinces, the defining of boundaries and fixity, that this land fuud has any stability whatever. I say at once that there are those in the Assembly who would not scruple for one moment to take our land fund upon the smallest pretext, and therefore it becomes the duty of the people here to see how far they and the stability

of their land fund will be affected by the abolition of the Northern Island provinces. I hope you see that if the abolition of the provinces in the North Island is carried out, it will be immediately followed by abolition in the Middle Island, and what we have got to take their place, no one seems to have the slightest idea, fCheers! It has been said that the provinces are expensive, but I will point out to you that the Premier in his speech on the abolition of provinces calculates the whole legislative and executive exexpenditure for the North Island provinces at some £13,000 odd per year. Now whatever we put in the place of provincial institutions must entail some expenditure for executive matters; you can't get your work done in this way for nothing, and there has been no attempt to show that any saving will be effected, but it is put on the ground of increased efficiency in administration. Taking the General Government expenditure and contrasting it with that of provinces, what do we find ? Why that the General Government is spending money very lavishly, and I say, that the staff of officials now maintained is very great. In the Public Works Office, for instance alone—a department under the control of a gentleman of acknowledged high ability and practical knowledge—the amount for the staff, including draftsmen, engineers, incidental expenses, &c, voted for the current year was £83,500. The large sum of £83,500 was voted in this department alone in one year. I ask you when one office spends so large a sum as this —and remember other offices spend equally in proportion—whether the General Government cannot spend well ? The money which is being borrowed to be spent will not last for ever; it will soon go, and the great army of officials which has been collected together in the colony will no longer be engaged. When the railways which we have now in hand are finished, I think —and I am no alarmist —that there will ensue great hardship and suffering. I think we are going too fast, and that when we stop these works we shall find that we have been going too fast, and there will be a collapse, entailing much hardship and suffering. When the Government curtails this distribution of the revenue, and hardship and suffering are amongst us, I ask you whether the Customs revenue will be maintained? How can people in hard times afford to buy so large a quantity of dutiable goods—that is, goods contributing to the revenue—as when there is plenty of money. The large expenditure of public money is at present creating a great deal of prosperity, but when we stop these works, say in two years or bo, there will be a great alteration. For my own part, I think it would have been better to have spread the expenditure of these large sums over a longer term of years, more especially as that would enable us to localise people to help bear the burden hereafter. For these reasons I certainly feel somewhat nervous as to the result, though, as I have said, lam not by any means an alarmist. I supported Mr Vogel's immigration and public works policy from the first, because I believed it to be a wise and good one if carefully administered and if the borrowing powers were kept under; but I cannot disguise from myself the fact that the House will grant him all he asks. Though I believe him to be a man of great honesty of purpose, of too large a nature to stoop to the mean acts of duplicity of little minds, he is too facile, too apt to look on the brightest side, and when I remember that one of the brightest intellects of the past century met disaster at Moscow, I fear that the Premier will bring disaster upon us. [Cheers.] From what I know of the House, and if no change takes place in public opinion, I believe that five millions more would be parted as readily as the four were last session. Men are here from needy parts of the colony who think it to be their duty to get money, and it does not matter where from. Looking at these dangers, and giving every credit for honesty of intention to the Premier, I fear he will, if not checked, bring gloom and disaster upon us before many years. I will say, in conclusion, that I am not an Utra-Provincialist; I am in favour of modifications where they have been found to be necessary, but I am opposed, and that most strongly, to taking away what we have got until I know what we are going to put in its place. [Hear, hear.] I do not belong to the Provincialist party, but to the Constitutional party, holding, as I do, the opinion that no change such as this should be made until the people themselves shall have had an opportunity of expressing their opinion upon it in a constitutional manner. [Cheers.] I have no party and no leader, but if I had a leader, I should like to have served under Mr Vogel, but his pace is too fast for me, he is too dazzling in his ideas, too restless in his movements, for so small a colony as this. Therefore, as your representative, and also of constitutionalism, I could not support him without the imposition of some check on that restless action, which, if not restrained, may end in ruin. [Cheers.] I ask gentlemen who may Jhear me to-night, who may be impatient of provincial institutions, who may think that they have not done their work, I would ask them to consider that all progress in the work of colonization is due to provincial institutions. Through them we have made roads, founded schools, supported police, gaols, and hospitals, and provided funds for the relief of the sick and needy, and generally they have discharged the duties devolving upon them efficiently. If I could speak beyond the constituency I am now addressing, I would wish to remind persons that every municipality, every school committee, every Road Board, have objections made to them. Of course a man may misunderstand actions as regards personal matters or bodies, as objection is inseparable from human nature ; but I say it is our duty, alike to ourselves and to those who come after us, to be patient with the institutions which have hitherto worked well—patient by endeavoring to change them for the better, and soberly and wisely assisting to forward the progress of the country, without destroying those institutions which have done so well in the past. [Loud and continued cheering.] I thank you very kindly for the attentive manner in which you have listened to me, and shall be happy to answer any questions which may be asked. No questions being asked of Mr Montgomery, Mr Dawber rose and proposed—" That this meeting tenders a hearty vote of thanks to Mr Montgomery for the address just delivered." Mr McGregor seconded the motion, which was carried amid loud cheers. Mr Montgomery briefly acknowledged the compliment, and proposed a vote of thanks to the chairman, which concluded the proceedings.