ENGLISH NEWS.

New Zealand Spectator and Cook's Strait Guardian, Volume II, Issue 66, 10 January 1846, Page 3

ENGLISH NEWS.

On Saturday the 9th August, the Queen prorogued Parliament in person. There was a full attendance of Peers, and the part of the house reserved for the Peeresses, their relatives arid friends was crowded. The Times which contains a long account of the ceremony, describes it as most brilliant and impressive. After the ceremony was over, " On the way from the house to the robing room" says the Times "an accident occurred which might well alarm the superstitious. The Duke of Argyll (whose office it was to bear the crown), by some clumsy mischance, stumbled in his short journey, and upset his precious charge. The ponderous crown rolled from its velvet cushion, and fell on the floor with such force, that several of the jewels were shaken from their setting: 1 , and the crown itself was much bent and injured. The stones, however, were soon picked up by" the ready assistance of several : among the peers who formed part of the pro- ] cession, and the crown was then delivered into the hands of its usual keepers, who, it is to be hoped, will be more careful of their charge than, the noble duke^whose unsteady footingoccasioned .the accident." |

Whitehall, June 1 -23," 1845. — The Queen has been pleased to grant to Rear Admiral Sir Edward Chetham, K.C.B. of Fortou Lodge, near Gosport, in the county of Southampton, her royal hcense and authority, that lie and his issue may, in compliance with an injunction contained in the last will and testament of his maternal uncle, John Strode, Esq., late of Southill House, Somersetshire, take and henceforth use the surname of Strode in addition to and after that of Chetham, and also bear the arms of Strode quarterly with those of Chetham, such arms being first duly exemplified accoiding to the law of arms, and recorded in the Herald's office, otherwise the said royal license and permission to be void and of none effect. And also to command that the said royal concession and declaration be recorded in her Majesty's College of Arms.

Thimblerigging. — The Times has invented a new title for Lord Stanley, which will stick as long as that of his barony, — "The New Zealand Thimblerigger." He has achieved, the honour by high desert and uncommon dexterity. In the face of the assembled Directors of the New Zealand Company, he undertook to play off his trick with cup and pea undetected. " Gentlemen," lie said, " here is an agreement ; here are the lauds you claim. Now I take the agreement in one hand and the lands in the other. I put down the lands, — so ; and the agreement atop of them, — so. Kow, gentlemen, you are convinced that the lands are under the agreement, and yon take them on my terms 1 Mr. Buller looked at Mr. Aglionby, and Mr. Aglionby at Mr. Mangles ; they said all was right, and agreed to the bargain, but Lord Stanley lifted up his cup (the agreement) but no, pea (the lands) were there! All allowed that the thimhlerigger who had taken in the New Zealand Company could not be detected. Encouraged by this success, he turned to thimblerigging the savages of New Zealand. " Here, good people is the treaty of Waitangi, — oh, 'tis a magnificent treaty ! You see all those settlers there, eager to get hold of your lands? Now I clap down the treaty of Waitangi on your lands, and they are safe under it. — see how disappointed the settlers look! Now you come and register your lands. Presto! pass! — I lift up the treaty, and your lands, where have they gone to ?" And Rauparaha grinned horribly. — Spectator.

Extensive Conflagration in the Citjt. — Shortly before 8 o'clock on Monday evening, August 18, a devastating fire, which illuminated the whole City, and destroyed property to a large amount, broke out in the warehouse, stocked with Scotch goods, in the midst of the establishment of Messrs. Bradbury and Greatorex, • Manchester, Scotch, and Irish warehousemen,' 6, Alderraanbury,' whence- it extended with* ungovernable fury to, the contiguous -premises of" Messrs. Coster' and Co., warehousemen, Mr; Stone, wholesale tea-dealer, and , other firms of the greatest importance as wholesale houses. The outbreak was first observed by some of the presons employed in a different • part of the premises, they being engaged at the time in taking in stock. In a few miuutes the conflagration was manifested throughout the metropolis, the dome of the cathedral of St. Paul's and the spires of the many churches being brilliantly illuminated, the whole of the building occupied by Messrs. Bradbury then exhibited one body of fire. The flames then extended to the vast body of building belonging to Messrs. Coster and Co., whose warehouses had been but last week replenished with an immense stock of autumn goods, only just purchased from the northern markets. Here the flames revelled with impetuous fury amidst the highly combustible materials piled floor over floor in the establishment, until the whole area from Aldermanbury on the north, by the Guildhall on the south, Fountain-court on the west, and Byer'si-conrt on the east — a solid i

square of great extent, exhibited oite mass of -flam?. Engines were immediately pro* cured, and the plugs drawn without delay. Thousands of persons having congregated, in a short time the engines were fully manned, and the supply of water being very abundant at (he outset, the hose was led through the adjoining houses and up the adjacent courts, but from the very firm hold obtained by the fire, but little impression appeared for some time to be made upon that vast mass of timber, stock, and other materials on fire. By half-past ten o'clock, however, the fire was got under, after having consumed everything in the warehouses, amounting, it is said, in all, to upwards of £100,000, only £85,000 of which, it is considered, is covered by insurance. During the progress of the fire great fears were entertained for the security of Guildhall. The beautiful stained glass of the eastern window was shattered by the intense heat, threatening the speedy destruction of Gog and Magog, that stand on each side, By ten o'clock the safety of the hall was secured, but not for many hours afterwards did the fitemen cease playing , on the walls which abutted join t!he ruins ; in fact, during the whole of the following day an engine was in full operation, throwing a vast body of water from the Controllers-office. The Religious movements in Germany — Serious Riots. — The religious movement in Germany, that originated and has been mainly carried on by John Ronge, a priest in an obscure town in Silesia, has now assumed a most formidable aspect. Ronge, it will be remembered, disgusted with the impious doings of Arnoldi, Bishop of Treve?, in exhibiting in the Cathedral a vestment which he pretended was the coat worn by Jesus Christ, and by the touch or even the sight of which miracles were wrought, addressed to him a letter of bold and fervent remonstrance. The effect of this address, copies of which were immediately circulated in great numbers throughout all Germany, was quite astonishing ; and following it up, aided by the co-operation of many influential parties, boih by lay and clerical, John Ronge has already made wonderful progress towards the attainment of the great object which he was induced to undertake, the establishment of a German Catholic Church. We deeply regret to have to record, however, that serious and fatal riots have arisen during his recent proceedings. The population of Liepsic, that had shown already great sympathies for the new German Catholic Church, took advantage of a review of the Rural Guards to make a violent manifestation, which led to deplorable tumults. His Royal Highness Duke John, only brother of the King of Saxony, Commandant-Gene-ral of the Rural Guards of the Kingdom, arrived at Leipsic on the 1 2th instant, to inspect this militia. When the Prince presented himself before the Rural Guard the commanding officer, according to usage, cried the first, "Prince John for ever!" (Vive le Prince Jean.) The cry was received by a general murmur; nevertheless, no other manifestation troubled the review. It was when the troops filed off that symptoms of violent animosity broke out against the person of the Prince in the ranks of the militia, and among the population assembled on the spot. The Commandant having repeated the cry, " Vive h Prince Jean!" there arose from ail parts confused cries of " Ronge for ever !" " Down with the Jesuits!" "Down with the hypocrites !" The Prince after the review went to the Hotel of Prussia, and was followed by the whole population, who did not cease to repeat the cries of " Down with the Jesuits!" " Ronge for ever !" The guard of honour of the Prince used their efforts to maintain order, and to clear the square, but they were forced back by the mass of the population that invaded all the adjacent streets. The Prince then gave orders to a battalion of infantry of the Hue to take up their position before his hotel.- During this time the population, continued their turbulent manifestations, and sang .first the celebrated chorus of Luther, " Eine festeburg ist unser Goth " (Our God is a fortress), and afterwards a strophe of a song from the Brigands of Schiller, "Em freies v leben fuhren wir" (We lead a free and charming life). The population growing more and more excited, began tcf throw stones at the windows of the apartments inhabited by the Prince, and broke several of them. The Commander of the troops (then about half-past 10 in the evening) not having been able to disperse the population, gave orders to fire upon the people. It is asserted that this discharge took place without any previous notice having been given to the people, or that it was given in such a manner as not to be heard but by those nearest the troops. The latest accounts from Leipsic are to the 15tb, upon which day the corpses of the fourteen persons killed by the troops during the recent riots were solemnly interred. Contrary to previous expectation, no disturbance took place on the occasion, and the peace of the town is no longer In danger of further

outbreaks. The funeral was atteuded by the whole of the communal guard, both cavalry and infantry, by the students of the university, and by the members of the corporation. — Atlas, August 22.

The following correspondence has taken place between the New Zealand Company and Lord Stanley, since the date of the last publication, by order of Parliament, New Zealand House, July 24, 1845. My Lord, — The assurances recently given of the desire of Her Majesty's Government to do whatever they can, consistently with their sense of duty, for co- operating with the directors of this company in a settlement of the affairs of New Zealand have induced us to think that no time should be lost on our part in bringing before your lordship some specific suggestions for a practical arrangement, Without abandoning our own views of the true policy to be adopted, we think that the only course that is likely, at the present moment, to lead to a practical result is to base our suggestions on the principles which we understand to have been laid down by your lordship, The points which it is of most immediate importance to settle are those of the institutions by which New Zealand is to be governed, and the titles to land. We do not mean to say' that the instructions, with respect to the former point, preclude the giving the people of the various settlements a real power of governing themselves. Admitting this, we complain that the instructions of June 27 are not sufficiently full and precise. It will be seen that their merely not precluding the doing what is right is not sxifficient to assure us that the colonists will bave that good government which is the sine gud non of all attempts to remedy the present disorder, To dispel apprehensions, and to set things right, it would be necessary to have positive and explicit instructions, of which the effect would be obvious and certain. It would not be difficult to do this. We are desirous of the establishment of municipal bodies at each of the settlements. What we object to in the instructions is, first, that they do not specify sufficiently large powers for j those municipal bodies. We want, at any rate, that those powers should be large enough to give the municipalities the making of all arrangements necessary for police, the administration of justice, the militia, and the imposition and expenditure of all taxes, except those of customs. We would of course leave to the general legislature of the colony a supreme and controlling authority. It appears to us that the best plan would be, that for the present, in every settlement containing 1,000 inhabitants, there should be a council, having powers to make any laws not extending to life or limb, subject to the authority of the Legislative Council of the colony. The municipal districts might include a considerable rural district about each town, and fortunately the natives, in the immediate neighbourhood of the towns, are so few that their presence need create no difficulty. Within the limits of the settlement, let all qualified natives vote like others. We will not now dispute the force of the objections which have been urged to a representative assembly for the whole of New Zealand, but we want the Council to have more of a representative character than it has at present. For this purpose we should be quite content if the instructions were specifically to direct the governor to constitute the Council of himself, three nominees, and one delegate from each municipality. With respect to the land titles. With respect to those lands for which the company have awards, the only alteration we want, in your lordship's instructions of the 6th July, is that the Government should put an end to the onty doubt that would remain, by undertaking itself to compensate the natives, and secure their assent. These lands would then be the company's unconditionally, the Government subjecting itself to a condition which no man can doubt that it would easily fulfil.* As regards the residue of the lands claimed by the company, bvt not awarded by Mr. Spain, it is quite clear that a conditional tide is utterly valueless now. We would propose that, in the first place, the Government should undertake to give the company an unconditional title to any lands selected by it in the Middle Island ; to which the treaty has been admitted not to extend, and where in truth there are hardly any resident natives. We would propose that, in the next place, the Government should make the company unconditonal grants of the 150,000 acres at Wairarapa, for which it appears that Captain Fitzroy has actually contracted with the company, the Government undertaking to settle the compensation to the natives, as in the case of the awarded lands. This would give the company a sufficiency of land for colonising operations for some considerable time With respect to any further lands which the company might wish to select, under Mr. Pennington's award, in the Northern Island, let it have the option of either waiting until the Government has acquired land to fulfil its engagements to us, or let the Government undertake, on the company's demand, at any time within five years, to make them an absolute grant of its own pre-emptive righr, thereby not intefering with native property, but simply putting the company in the position of being the sole possible purchaser of such lands from the natives. The effect of this arrangement would be that the company would get at once a warded lands about the company's present settlements, which would be got not for the company so much as the settler — Acres 355,000 AtOtago, as secured to us by the instruction of July 6 150,(00 A t Wairarapa 150,000 Total acres 655,000 On th 4 rough estimate which we have been in the habit of .making of the company's total claims at 1,200,000 acres, there would thus remain something like 550,0j0 acres. Of these, of any portion that the company might choose to select 'the Middle Island, the Government should

forthwith make tliem an absolute grant. Vf{ih respect to any portion the company might choose to select in the Northern Island, it would be entitled, either to an immediate grant of the pre-emptive right, or would be at liberty to postpone the selection-until the Government should have acquired the lands which it might desire. - There is another point of great importance in your lordship's instructions, which appears to U9 to require reconsideration. | We understand, that from your lordship's instructions to Governor Grey, that it is intended to allow all parties to continue to buy land di- | rectly from the natives, paying to the Government 10s. an acre ; and that all actual purchases under Governor Fit2roy'sproclamatiou,reducing the fee to Id. an acre, are to be sanctioned. But this arrangement, in both instances, appears to us to be inconsistent with justice to the parties who have purchased from the Crown at the minimum price of 1/. an acre, and no less so to the company. The real equity in all these cases would be to grant all these purchasers an acre for every 1/. paid, including the payments to the natives, together with the 10s. or the 'ld. > paid to the Government; and it should be peremptorily declared that henceforth no native should sell to any one but the Government. These are (he principal points to which we are now desirous of calling your lordship's attention. Should these suggestions afford means for a practical solution of them, as we sincerely hope they may, there would then be such an opening for the renewal of our colonising operations, that we have little doubt that your lordship aud your colleagues would not be unwilling to remove the only obstacle that would remain, by advancing such a loan as would be necessary to enable us to act. I have the honour to be,. my lord, ' Your lordship's most obedient servant, -INGESTRE. The Right Hon. Lord Stanley, Secretary of State for the Colonies, &c. New Zealand House, Broad-street-buildings, August 5. 1845 My Lord, — In the letter which the directors of the New Zealand Company had the honour to address to you on the 24th of last month, it was stated that if the measures were approved, which were therein submitted, based upon the principles laid down by yourlordship, we doubted not that you and your colleagues would be willing to remove the only remaining obstacle to a renewal of our colonising operations, by advancing such a loan of money as would be necessary to enable us to act. The measures which We thus advocated have not, in all respects, obtained approval in accordance with our wishes: but in the negociations which have been opened, and the manner In which they have been conducted, we have found reason to hope that tliey will at least lead practically to surh an arrangement as will permit us to engage anew in our plans of colonisation. In this belief, therefore, and in compliance with the wish that has been expressed, we have now to submit to your lordship particulars of the loan which we desire, and of the several circumstances which may be necessary to enable you and your colleagues to decide upon the application. We would- preliminarily remark, . that we are convinced that it is indispensable to the success of any scheme of colonisation to be now adopted that it should be carried into effect on a comprehensive scale. If feebly commenced, and inadequately executed, the result would inevitably be failure in the realisation of pecuniary return, and more signal failure in the prosperity and moral elevation of any future settlement. Colonistsof superior class and capitalists would be deterred from engaging in such an undertaking. Employment for labourers would not be provided, nor funds created for public objects. The means of mutual assistance and protection ' would be weak ened, and the new community would thus be lowered in its character ana crippled in its strength. The steps necessary for the successful establishment of any one settlement, and, by consequence, of all, appear to be these : — To obtain a tract of land sufficiently large to admit of selection, immediate occupation, and ultimate extension ; to survey it, and lay it out in sections, so that colonists may proceed to make' their selections and obtain possession of their lands without delay ; to open roads and remove at least such impediments as prevent access to the lands sold, orintended for sale; and to provide fcueh stores as may be necessary for the subsistence of the colonists till they may be enabled to obtain supplies upon the spot. The whole of these, it is evident, are measures involving much risk and great immediate outlay, with a prospect only of a gradual, and perhaps a distant return. It was to meet these, that on obtaining a charter, in February, 1841, the company was required to increase its subscribed capital from 100,000/. to 300, 00L7., wo- thirds of which, or 200.000/., were to be immediately paid up. The risks and uncertainty which are inseparable from every such undertaking, even when most successful, have been much increased, as your lordship is aware, by the peculiar circumstances in which New Zealand is at present placed. Not only are many, who would otherwise be desirous ofc proceeding thither, either induced to emigrate to other countries or deterred altogether from venturing on such a step : but considerable time must, we fear, elapse, and actual accounts be received, not only of restored general tranquillity, but of individual success actually realised, ere the effects can be allayed of reports of hostile aggression and* personal ruin. From these considerations it will be apparent that, without adequate pecuniary means at the disposal of the company, it would not be consistent with our personal honour, because irreconcileable with any well founded expectation of benefit to the colony or the public, that we should attempt a renewal of our colonising operations. From causes which, in the sincere desire to avoid a revival of controversy we abstain from recapitulating, these means are no longer in our possession. For nearly three years sales of land, our only source of income, have virtually ceased ; concurrently with this cessation of receipts, our expenditure has been increased in a manner and to an extent as unforseen as it has been ruinous. Our settlers, disappointed in the expectation of advantageous investment of the^ capital, have been prevented from giving em-

ployinentto the labouring emigrants located "by us in the cohmy, in fulfilment of the agreements . under which our lands were sold. To rescue these unfortunate individuals from destitution, and even to protect them from starvation, it was absolutely necessary that employment should be provided for them ; a large sum has consequently been expended, chiefly on public works, the execution of which i* strictly within the province of the Government. For the expenses thus incurred, as well as for the losses occasioned by the causes above referred to, we conceive that we have a valid claim against Her Majesty's Government; but 1 the extent of these have never been reduced to a distinct estimate; pending other controversies "we have been unwilling to bring forward afresh subject of possible difference, and the questions, theyefore?of the amount, and the time and mode of liquidation, have never come under discussion, nor need they now be introduced. Though during this long period our establishments were reduced, by a l-igid economy, to a condition scarcely compatible with justice to the many deserving individuals engaged in our service, they have necessarily occasioned a further heavy drain un our resources; and, as the result of this state of things, we now find ourselves in this condition — that having expended our 200,000/. of paid up capital, together witl the sums received for land sales, and 76,500/. borrowed on the security of our remaining unpaid capital, the whole, amounting to between 500,000/. and 600,000/., of which our proprietors have only received in dividends 44,697/., we are left with ascertained liabilities to the extent of upwards of 60,000/., which we have no present means of meeting, and still less have we any funds applicable to the renewal of colonisation. "From this statement it is obvious that, if it be expected that the expressed wishes of Sir Robert Peel for the useful employment of the > company, in harmony with Her Majesty's Government, are to be realised, it is only through the intervention of the Government, by the advance of a sufficient pecuniary loan, that this - desire can be practically realised. We are now led to the consideration of the amount required ; to determine which, we will briefly pass in leview the particular objects for which it will be requisite that provision should " be made. Among these may be first enumerated the - means of satisfying the existing claims of the natives, and of meeting the possibly heavy payments that may be necessary for future purchases. Secondly, — The reorganization of an efficient surveying staff, and pressing forward the surveys with sufficient vigour to obviate the recurrence of former evils resulting from the arrivnl of settlers before the lands were marked out for occu ! pation. Thirdly,— Thediseharge of outstanding claims in the colony, and in England, estimated v.\ -about 8,000/. Fourthly, — The completion of the engagements entered into with the settlers at Nelson for expenditure for religious and educational purposes, and for steam navigation. Fifthly,' — The adoption of all the -measures necessary, according to the plans previously described, for establishing the settlement of New - Ediuburgh atOtakou, and a Church of England settlement at Wairarapa, as arranged. Sixthly, — Placing our establishments in- a state of efficiency, and raising the salaries of our officeis to -that just amount, below which, under extreme pressure, they have been for some time uuavoidably reduced. To these may be added the restoration of the confidence of the public in the stability of th-e Company, and in the re-establishment of its amicable relations with the Executive Government, which maybe confidently expected as the of a punctual performance of its engagements, of the prompt discharge of its pecuniary obligations, and of the unequivocal manifestation of cordiality that would be exhibited iv a -liberal assistance from Her Majesty's Government. To effect these purposes in such a manner as may give reasonable hope of success, to enable the Company to fulfil its engagements during their progress, and to supply the means of rendering its real estate available for repayment of loan which we may now obtain, we calculate that, with the most exact economy, the sum of 150,000/. will be requisite. This loan we would propose should be guaranteed for a period of seveu years, if required by us, >be secured upon our lands in such manner as not to interfere with their sale, and be liquidated by our paying annually to the Government one-half the amount reserved to the Company from the proceeds of land sales. In conclusion, we think it right to draw your serious attention to the fact, that whatever importance may attach to the arrange,ments which have formed the_ subject of recent conferences, their whole practical value must be defended upon the reception of the present appeal. The adjustment, partial or entire, of long - pending differences was doubtless most desirable ; many of the contemplated arrangements are unquestionably beneficial, and in the admission of the principle of representative government into 3 the institutions of the colony, we recognise an important element of future prosperity ; but so far as the renewal of colonisation, through the agency of the company, is concerned, or may be deemed desirable, we consider it our duty unequivocally to state, that it is by a prompt pecuniary assistance alone that this object can be accomplished. From the.frankness and cordiality of the recent conferences we are induced to entertain a strong confidence that this one remaining condition for restoring us to activity and usefulness will not be with eld. < I have the honour &c. •< GEORGE FRED. YOUNG, Chairman. < The Sight Hon. Lord Stanley, Secretary of < State for the Colonies, &c. J The following is Lord Stanley's reply. j Downing street, August 7, 3845. i My Lord, — I am directed by Lord Stanley to j -state to your lordship, for the information otthe c New Zealand Company, that his lordship has s carefully considered your letter of the 24th ulti- j tno, and the suggestions which it contains, and v that although he does not feel himself able, con - f sistently with the principles to which you advert a as having been laid down by him, and upon ' c

which your suggestions are based, fiilly to acquiesce in (hose suggestions; Lord Stanley trusts, nevertheless, that in the arrangements which he now proposes, the New Zealand Company will recognise the sincere wish of himself and Her Majesty's Government to go as far as their duty will permit towards diminishing or remedying the difficulties under which the New Zealand Company, and those who have emigrated under their auspices, are now labouring. Addressing myself, in the first place, to that portion of your letter which relates to the land titles, I am to observe, that although Lord Stanley has already stated that he cannot on any account asree to guarantee to put the company (forcibly, if necessary) in possession of lands owned by others, or to compel the original possessors to surrender their acknowledged property, his lordship wishes to be understood that with respect to the lands awarded by Commissioner Spain, wherever those awards are snch as the commissioner has delivered in his judicial character, by virtue of his powers under the land claims' ordinance and are duly completed, or wherever they are such as he has delivered as an arbitrator, whose adjudication had been authorised by the representatives of both parties, Lord Stanley conceives that possession of the land included in such award or arbitrations should be given to the company. This is the utmostlimit to which Lord Stanley could sanction compulsory proceedings against the natives, and whatever is beyond that limit must be effected by their consent and acquiescence, in obtaining which, however, the company may rely on the cordial assistance of the Government. It would have been satisfactory to Lord Stanley if the information before him had enabled him to point out the effect of the application of the above principles to the several land purchasers of the company which have recently been under discussion. In the absence, however, of the full and authentic details which would be required for that purpose Lord Stanley \yill instruct the governor to proceed, in confoimity with those principles, according as they shall be applicable to the several cases before him, and when the circumstances are such that the acquiescence or consent of the natives is necessary to enable the New Zealand Company to obtain posssession of the lands comprised in these purchases, the governor will aid and co-operate with the company's agent in bringing to a prompt and satisfactory conclusion the negociation with the natives for the purchase or extinction of their rights. Lord Stanley is also gratfied to perceive, from j subsequent information &3 to the views of the j company, that it may be in his power to confer upon them some further definite advantages in reference to their proposed settlements at Otago and Wairarapa. With respect to the proposed settlement at Otago, Lord Stanley will at once instruct the governor to make to the company an unconditional grant of the 400,000 acres, purchased at Otago, excluding of course, the'land reserved to the natives; the company engaging, within a limited period, to select the '150,000 acres proposed, and also such further quantity '-thereo fas as they may desire, aad to reconvey the remainder to the Crown. Wilh respect to the purchase In the Wairarapa Valley, which is at present limited to 150,000 acres, Lord -Stanley consents to the extension of that-limited to 300,000 acres, and Lord Stanley will direct the governor to U3e his best exertions for securing the immediate consent of the natives to their removal fiom the land which ' may then be selected. I am further to remark, that as respects the arrangements with regard to the purchase in the Wairarapa Valley, sanctioned by Captain Fitzroy, Lord Stanley has in his despatch to Captain Fitzroy, of the 30ih of November 1844, pointed out the objections which he entertained to the entire removal of all restriction as to figure and continuity of blocks, which had been conceded to the Company as to the 150,000 acres to be selected in the Wairapa Valley, and as to a further quantity of 250,000 acres to be selected elsewhere within the limits of the Company's district. Lord Stanley staled in that despatch that he did not intend on that account to disallow the agreement entered into^by-Captain-Fitzroy with the Company; bothis lordship instructed Captain Fftzroy that in case of any similar accommodation being offered to the Company, such conditions should be attached to the waiver of the Crown's right of pre-emption, as should be sufficient to protect the interests of the Crown and of the public from theeviis which possibly might result from an injurious exercise of the right of selection. Lord Stanley is led to believe that the company are not unwilling to consent to some limit being now placed ou their right of selection in the lands in Wairarapa Valley, and that the company will undertake to make their selecticn in the Wairarapa Valley in one continuous block, or in as small a number of blocks as circumstances -will permit, and that no such block shall contain less than 20,000 acres. Lord Stanley trusts that, under the arrangements at Otago and Wairarapa, the company will soon find themselves in possession of as large an amount of available land as they will be likely for some time to require,; but with a view still further to increase the facilities of the company to acquire land, Lord Stanley is prepared to adopt the suggestion in your letter, that the company should be entitled to an im? mediate grant of the pre-emptive right of the Crown for a limited period in the land comprised in those portions of the Northern and Middle Island, usually termed the company's districts, as originally defined in the arrangement with Lord John Russell, with liberty, however, to postpone during that period their selecton. Lord Stanley conceives that the transfer of the pre-emptive rights of the Crown to the" company in the lands in question may tend to facilitate the purchases iromthe natives; looking, nevertheless, to the recent events in New Zealand, and to the possibility that" the natives may feel an increased unwillingness to part with their possessions and rights, and may demand a larger price or compensation; having regard, likewise, to the fact that the land thus purchased from the natives will go in -satisfaction of the amount of land claimed by the New Zealand company in resnect of their * expenditure,

Lord Stanley will waive in the company's f»vou any doubts which he may himself entertain as t< their strict right to a reimbursement in land a the rate of ss. an acre of the monies they shal advance in buying up the natives' claims in anj land which the company may select, subject t< the limitation that the company's agent and thi governor, or other proper officer of the Govern ment, shall concur in the reasonableness of th< terms of such purchase. It has been communicated to Lord Stanley tha the company are desirous that measures shoult be taken for examining in to the native title in th< Middle Island, and for distinguishing on a ma] lands which* are respectively subject or not subject to native claim. Upon this point lam directed to state to you that Lord Stanley has al ready pressed on Governor Grey's attention the necessity of ascertaining and registering native titles within a limited period; and, if desired bj the company, his lordship will further especial lj point out to him the expediency of commencing with as little delay as possible the necessary measures for this purpuse in the Middle Island ; in the first instance, where the scantiness of the population will render the task comparatively easy, and subsequently in the company's districts in the Northern Island ; and his lordship will also direct that such a map as you have suggested shnll be prepared. I am further* to advert to the desire expressed by the company' in your letter that it should be peremptorily declared that no native shall sell land to any one but the Government, and that as to the purchases which may have been made under Captain Fitzroy's proclamation, the purchasers should only be entitled to an acre fot every 1/. paid, including the payments to the natives, together with the 10s., or the Id. paid to the Government, and 1 am to state that Lord Stanley cannot disturb the purchases which may already have been made under the provision above alluded to, and which are understood to be but few in number; and that with regard to the proclamation in question Lord Stanley has addressed a further communication to Captain Grey, which in connection with the instructions already given, and having regard also to the grant of the Crown's right of pre-emption to the company in their own district, will be found sufficient to remove the apprehensions of the company on this subject. I have not hitherto adverted to the extent of the period which the company are to be allowed for the selection of their lands. Upon this point I am to observe that Lord Stanley considers it of importance that the company shall finally select their land with the least possible delay, and his lordship understands that the company concur in the expediency of this course. With a view, therefore, to facilitate thi3 object, Lord Stanley would (if the company were to desire it), despatch forthwith to the colony a properly qualified person whose duty it should be to give his best assistance to the company in their selection of land, to N aid in surveying the exterior boundaries of such- selections, and to judge of the reasonableness of the terms of any purchase which the company may make from the natives, with reference to the company's right to reimbursement in land in respect to monies paid for such purchase. As a further means of avoiding delay in the final adjustment of the company's claim to land, and with a view to give the company the advantage which may iesuit from their having a definite knowledge of the extent of their resources, Lord Stanley is prepared to entertain any proposal on the part of the company for simplifying the investigation of the amount of land to which they are entitled ; and for the recognition without further delay of the right of the company to a gross total quantity of land in respect of their expenditure up to the present time. Having thus expressed to you Lord Stanley's view on that part of the communication which relates to the land titles of .the company, I am to address you on the other important subject of your letter ; viz., the legislative and municipal institutions to be established in New Zealand. Upon these points I am to observe that Lord Stanlej' recognises in the peculiar circumstances of the settlements formed in New Zealand sufficient grounds for giving to each settlement a full measure of municipal authority, as well as respects the police and police regulations ; as also with respect to the administration of justice, and to the imposition and expenditure of the taxation necessary for the local affairs of such settlement. With respect to the militia, the arrangements for which you suggest as proper to be left to the municipalities, I am to enclose for your information an ordinance recently passed in the colony on that subject. With legard to the constitution of the general legislature of New Zealand, as the company are aware of the objections which exist to a representative assembly, it is unnecessary to enter upon them. I am to state, however, that Lord Stanley ac« quiesces in the view of the company that the council should have more of a representative character than at present, and Lord Stanley will not object to giving such instructions to the governor as may secure the presence in the Legislative' Council of a limited number of persons delegated from the respective municipalities, though not to such an extent as to give an absolute majority to such delegated portion of the Council. I am to add, that the constitution and powers of the proposed municipal bodies, and of the districts which they are to superintend, the mode in which delegates to the Council should be selected, the organization and functions of the Council itself, are subjects which will require much careful deliberation, and upon which Lord Stanley cannot form a definitive opinion until there shall have been ample time for preparing and considering the details requisite for arrangements of this nature. '' I have the honour to be, my lord, Your lordship's most obedient humble servant, The Viscount Ingestre, &c. G. W. HOPE.