(From the Government Gazette, July 20.)

New Zealand Spectator and Cook's Strait Guardian, Volume III, Issue 212, 11 August 1847, Page 3

(From the Government Gazette, July 20.)

(No. 32.) Copy of a Despatch from the Right Hon. Earl Grey to Lieut.-Gover-nor Grey. Downing-street, Ist February, 1847. Sir, — I have to acknowledge the receipt of your despatch, (No. 46) of the 12th May last, containing a report upon the general financial arrangement of New Zealand, and the principles on which you consider it will be proper that they should be conducted, and adverting likewise to the means of securing the future order and tranquillity of the settlement. It has been a source of satisfaction to me to receive in the clear and comprehensive fo:m in which it has been brought under my notice, — the favourable account you have ihere given, of the financial condition, present and prospective, of the colony committed to your government. In the views you have expressed on this subject generally, as well as the line of policy pointed out by you as the best calculated in your opinion for securing a permanent and progressive increase in the local revenue, I entirely concur, and you may depend upon my support in carrying out the measures by which this end is sought to be accomplished. I also approve of the proposed enlistment of the Natives as a Police Force, and of the immediate execution of those public works, which are necessary for the promotion of peace and order, and with them, of wealth and social improvement. I now proceed to advert to your statement respecting the probable amount of revenue and expenditure of the colony during the present year: and from the calculations on which that statement is made, I have inferred that the total amount of aid which will be required from the Imperial Treasury, to enable you to carry on the service of your government, for the year 1847, is £38,865 : 15 : Od., thereby covering your estimated deficiency of £36,000, and allowing you a probable surplus of £2,865 : 15 : Od. On this subject I have purposely delayed addressing you until I should have transmitted to. you the instruments by which the intended change in the form of Government of New Zealand will be effected, in order that I might at the same time explain to you the bearing of that measure upon your financial arrangements. .Those instruments were, conveyed to you in my despatch of the 23rd ultimo ; it now therefore remains for me to acquaint you that an estimate to the extent of £38,865 : 15 : Od., will be submitted to Parliament in the present session, for the service of New Zealand : and it is scarcely necessary to add, that I place a firm reliance on your availing yourself of every practicable opportunity which an augmentation of the colonial revenue may offer, for economising the application of that amount, you will moreover bear in mind that, except the small sum to be retained for the civil list, the revenue will, when the new constitution shall come into operation, be placed at the disposal of the Legislature ; but that no grants are to be made not recommended by yourself. It must likewise be explained to those bodies that they are expected to provide for the public service of the colony, to the full extent of their power, and that having the advantage of self-government, they must not calculate upon the continuance, for more than a very brief period, of the Par1 liamentary grant. With reference to your despatch (No. 34), of the 16th April last, relative to the present state of the southern settlements, and tbt

means of holding possession of the territory between Port Nicholson and Taranaki, I have to signify to you my approval of the steps you have taken for opening the land communication between Wellington and Porirua, and of the sanction of her Majesty's Government for the expenditure incurred for that purpose. — I have, &c, &c, Grey. To Governor Grey, &c, &c, New Zealand.