THE NELSON EXAMINER. Saturday, December 8, 1855.

Nelson Examiner and New Zealand Chronicle, Volume XIV, Issue 73, 8 December 1855, Page 2

THE NELSON EXAMINER. Saturday, December 8, 1855.

Journals become more necessary as men become more equa and individualism more to be feared. It would lie to underrate tbstr importance to suppose that they serve only to secure liberty: tbey maintain civilization. 1)B ToCaDEVILLB. Of Democracy m America, vol. v., p. 230.

We are happy to announce that there is a prospect of the New Zealand Company's debt being arranged upon terms which we think will be beneficial to the colony. According to the 74th clause of the Constitution Act, this debt was fixed at £268,000, and one-fourth of the proceeds of the sales of land was to go towards the reduction of the debt, and the payment of the interest upon it, at the rate of 3-^ per cent. This mode of liquidation was not only unjust, pressing as it did unequally upon the provinces, but would also have required a long space of time to extinguish the debt altogether ; for though something like £40,000 or £50,000 has been already paid, the original debt has not been reduced, we believe, more than £12,000.

The New Zealand Company is willing to settle the debt on these terms : — That it shall receive the sum of £200,000 before April, 1857 ; and iv the meantime it is willing to take all sums which may be m its hands on the day of settlement, m excess of interest due, as part payment of further accruing interest ; and to take any sum which may be m its hands oh that day, over and above the interest so accruing on the £268,000, m part payment of the £200,000. But this arrangement is not to hold good, unless it be accepted before the time specified. If it should not meet with the sanction of the colon}', the. old system is to be continued. Now, if the colony should consent to this proposal, her Majesty's Government would propose to the Imperial Parliament to guarantee theprincipal of such sums as the colony may raise, and interest at a rate not exceeding 4 per cent. ; and' m return for this guarantee, her Majesty's Government would require that the principal and interest should be made by the Colonial Legislature a charge upon the import duties of the colony, and collaterally upon the land fund, besides making preparation for the maintenance of a sinking fund for the redemption of the debt m thirty years. Of the sum of £200,000, a portion not exceeding £13,000 is due to her Majesty's Government m consideration of its having taken certain contracts and liabilities of the New

Zealand Company upon itself. This sum the Government is willing to relinquish all claim to, provided the colony will consent to take upon itself, the said liabilities. This will reduce the debt to £1 87,000, and this will again be further reduced by the sums previously paid m excess of interest and towards the liquidation of the original debt of and which wjll probably amount to something like -£1 5,000 or 2620,000 more. Upon this sum, so reduced, the interest to be paid will be fairly divided among tbe provinces ; whilst, from the daily development of the resources of the colony, from the increase of population, and the natural increase of wealth consequent thereupon, the payment oi the principal at the end of thirty years will be but little felt.

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