No. 38. Despatch from Lord Stanley to Governor Downing-street. 27th October 1844.

New Zealand Spectator and Cook's Strait Guardian, Volume I, Issue 27, 12 April 1845, Page 4

No. 38. Despatch from Lord Stanl ey to Governor Downing-street. 27th October 1844.

HBHSir — I have received your despatch, No. 6, Hptfe 26th Itaifeh last, reporting that you had H^tW "bilW on the LoufM^mmissioners of ■£'. M. Treasury for theflH^f £945 15s, for Wjs& payment of salaries. l^ave also received : E}sftf despatch No. 11, of the 15th April, 1844, ■jjnitiug the circumstances under which these hills ■jgre»e r drawn, and Ac course which you had Ks6pted for raising funds, by the issue of notes Rtf different denominations, to be, redeemable in MtWo years. 1^ I have communicated with the Lords ComnuiAioners of the Treasury on the' subject referred ito in these despatches, and I have, now to icomppunicate to you the decision of Her Majesty's rßovernmeut with regard to them. ' It Under ordinary circumstances;" ' I should jniUTe felt it my duty to have expressed a i^decided ' disapprobation of the course which tVou pursued' -in issuing in violation of your r instructions, notes or debentures such as those f described in your despatch, with a view to i^ujung the funds necessary to defray the Expenditure of your Government, but adverting Do the peculiar situation in which you found TOourself|iac«d,' unable to raise money by' the \'&L» of bills on the Treasury of this country, jypUheui the" risk of ehorraou9 Ibs's, unable also Nq ißbrrDw from the Colonial Bank the sum rek^Hured for youT immediate exigencies; Her ilflijesty'B Governmentiß disposed to regard y6ur irednductin a more favorable point of view, and Pfc» make «[low"ances' for a' course of proceeding • wuioh, under "any Jess urgent circumstances, 'j would have been indefensible. H. M. Government however, deem it essenI |UkHy necessary, that measures should be taken JK the earliest possible period for the redemption . <jif Jhe notes which you have issued, the continued circulation of which must render hopeless gty -attempt to provide a sound circulating medium for the Colony, and must deeply affect its fyture growth an 4 prosperity. You will withdraw these notes from circulation by applying to their redemption, funds to be raised for that purpose, at the next meeting ■■ «f the Legislative Council, or if sufficient fundß 4Mumot be so raised, by substituting in the place Ijtt the notes which have been so issued, Colo- , nial Debentures for not less than 450 each, f bearing, if need be, a somewhat higher rate of •> interest than the notes, and payable ont of JpJolonial funds at any period, of which notice at any time be given. . t ln ytfur despatch, No. 1 1 , you make a press'lfig application for assistance from this country, |, fa. clearing off the existing debts of the Colony, jjirhieb. you estimate at £20,000, and jn4»fraynecessary annual expenditure. Tvt v The Government d New Zealand-tyis already Pfeea warned not to place any further reliance ton Urge and undefined assistance from the funds ?>«f this couatry, and "considering the more than tifrdin*)-? resources possessed by that Colony, in <±Jsj£ ex^nt and fertility of its soil, and in its nuummm'Ous population, H. M. Government feels {bavinced, that with proper management, the Jp»ole of the civil -jexpenditure may be provided ftt an early pe^jdd from its local revenue, t without any undue pressure upon local interests, /leaving the cost of Military and naval protection -^j^be defrayed at the charge of this country. ; H. M. Government will be prepared to consider tlie amouat of the grant for which appli;<atiou may properly be made in the ensuing session of Parliament, when they shall have before them the precise statement of proposed expenditure, and the ways and means promised J>y you in yonr concluding; paragraph of your despatch* and J will at preseut only observe: r- lbt. That in order to establish a claim to asrcgistence from Parliamejat, 4t will be necessary the Coloßiuftlovernment to shew, that every [practicable ineasve \ms been adopted to raise the requisite funds, either <by local assessment, ■4>r general taxation ; and, 2nd, That whatever .^ctiniary aid Parliament may be induced to •fctford, will be given for the purpose of assisting Colonial Government to meet the necessary |Jtarrent expenditure, and not for that of paying wF the debt which will remain charged on the «?olonial Revenues, H '*"Tbat portion of the Colonial debt, which is "owing to H. M. Goternme'nton acct)uat of p«yIqients made in this country" for the purpose of oetuimg Emigrants to New Zealand, will be find, according to the directions already given, #rom the first proceeds of-the Land Sales. '„ As inconvenience seems to be experienced Ifroin the want of a proper circulating medium, mni great difficulty exists in realizing the amouat iptthe Parliamentary Grant, by drawing Bills gapob the Board of Treasury, the Lords CommUbdonei 1^ have intimated to^ me, that they 4»ve [directed a «urn of 45,185 in »pecie to be remitBed to t]am Officer in charge^the Comrnisariat fSjwew.Xe&hind^ 4rho wiU,«pected to p&y to "^ti* -CoiomMJ^Goirernraeat ISch portion of the Wins grauted by Parliament foi: the I9rvioe of

New Xofend for ike yew 1644^5 BjtpttflAk to the jwyiaent of ttHarifte to Ifce* ciottftf Ckt quarter preoeeding tfrHhte'titftte receipt '^W* imtxuctkms, for which Bilb- may «ot Juift Met) - ■ drawn by upon the Board ' of Treasury, and on the let ApriJ 1845, the further sum of £1,741 5a., the reouuning quarterly b^ni» of tb£ grant, kttbjefctbf'ebuifee to the same condition of Bills not haying been previously negociatetl Wy you for the amount. The Commissariat Officer will also be instructed to issue to you. by equal quarterly instalments, the^amount of any future grant which may Vfe made by Parliament for the baine service. In conclusion, I have to impress upon you, ! that .this arrangement will afford no relief to the Colony, as regards the establishment of a proper circulating medium,' unless the Small Notes, which you have issued, be simultaneously with- < drawn from circulation. From the statement which I have received from the -Board of Treasury, it aj>pear6 that the sum remaining available up to the present date from the grant of last' session is as follows «— Grant 1844—5. . .' .'. . . . 47,560 0 0 Applied out of the Grant ( after appropriating the balance of the Grant of •the proceeding yew ) to the payment of Bills drawn . . £3,530 8 8 [ Bwhop's salary 600 0 0 4,130 8" 8 Balance of Grant <•■ £3.434 11 4 i. I hare &c. (Signed) Stanmst.