NELSON. [From the Nelson Examiner, May 12.]

New Zealand Spectator and Cook's Strait Guardian, Volume V, Issue 397, 23 May 1849, Page 4

NELSON. [From the Nelson Examiner, May 12.]

NeV Church. — A meeting was held on "Wednesday evening last, for the purpose of taking measures to erect a church in Nelson, as the temporary building hitherto used is fast becoming unserviceable. A subscription was commenced, which at once reached about £100, independent of £200 promised from the Endowment Fund \ y the Bishop, and a committee was appointed to canvass tor further subscriptions. Launch. — A vessel of seventy-two tons, new in asurement, named the Liberty, was launched yesterday frcm the yard of iMr. S. Strong, Auckland Point. It was intended that the launch should have taken place on Wednesday, but owing to some defect in the arrangements, the vessel did «iot go off until the time we have stated. We hope that the enterprising owner of the Liberty, will be recompensed for feis exertions.

The following correspondence between the Local Government and the Acting Principal Agent of the New Zealand Company, in reference to providing funds to meet the necessary expenses of the recent purchases of land from the natives, has been laid on the table of the Legislative Council : — No 1 6. Government House, Auckland, 26th March, 1849. Sib,— I have the honor to acknowledge the receipt of your despatch, No. 20, of the 10th instant, reporting that the New Zealand Company, through their Principal Agent,, refuse to pay the instalment falling due on the Ist of April next, for the Ponrua and Wairau purchases. - . • " 2.' Iri" reference to the* correspondence which you have enclosed to me upon this subject, I have to remark upon the letter of

the Agent of the New Zealand Company to you of the Bth March, in which he states "the New Zealand Company, or its Agents, not having been consulted {as I understand was the case) respecting the amount to be paid in these cases," &c, that the Inte Principal Agent of the New Zealand Company was consulted upon this subject before Lieut.-Col. M'Cleverty and myself had concluded the arrangement. 3. In reference to your letter to the Agent of the Company of March 9, I ought also to acquaint you, as there seems to be some doubt on your mind upon this subject, that I have not up to the present time received any instructions from the Government that lead me to think that any understanding or arrangement has been entered into in England between the Government and the New Zealand Company upon the subject of the "Wairau and Porirua purchases, of which you are not aware. 4. In reference to the general question which is raised in your despatch to which I am replying, the circumstances of the case appear to be simply these : — Had the Executive Government in the Province of New Munster been, as in all other British colonies, entrusted with the administration of the waste lands of the Crown, they could, J either from the rents or from the proceeds j of the sales of the lands acquired by the Crown, have liquidated the expenses incurred in the purchase of such lands from the natives. But in the Province of New Munster all the estate and right of her Majesty in such lands, and power and authority over the same, or any part thereof, are vested in the New Zealand Company, and the powers so vested in the New Zealand Company are administeied by their agents in the colony. Your Excellency has applied to the Principal Agent, requesting him to defray from the land fund certain expenses which appear legitimately to fall upon that source of revenue, and he lias declined to <lo so. 5. Upon examining the respective powers of the Government and the New Zealand Company, I find that neither yourself nor the legislature have any control whatever over the manner in which the New Zealand Company, through its agents, may expend the proceeds of the land fund, or administer the lands of the Crown. I think, therefore, that to prolong a correspondence with the Agent of the Company would simply lead to increased difficulties, und would further embarrass the public service. I shall, therefore, at once transmit the correspondence which has taken place to England for further instructions ; and until these are received your Excellency can take no further steps in the matter than to lay the papers connected with it before the Legislative Council of New Munster. 6. The only other question which remains to be considered, is from what source the funds requisite for the payment of the.natives are to be procured, as it is quite clear the Government cannot break through the engagements it has made with these people, or forfeit its word to them, as such an act would shake the confidence of the whole native population in the British Government. But as lam not at present able to determine from what source the necessary funds for the purpose should be procured, I will, in a few days, address to your Excellency another dispatch on this subject. 1 have the honor to be, Sir, Your Excellency's most obedient, Humble servant, (Signed) G. Grey. His Excellency The Lieut.-Governor of New Munster, &c, &c, &c.

No. 16. [Separate.] Government House, Wellington, Bth March, 1849. Sir, — 1 have the honor to enclose for your Excellency's consideration, copies of a correspondence which has taken place between myself and the Principal Agent of the New Zealand Company, od the subject of providing funds necessary to meet the expenses connected with the acquisition of laDd from the natives for that body. 2. From that correspondence your Excellency will gather that Mr. Fox repudiates the idea of the New Zealand Company being liable for the expenses necessarily attendant upon the acquisition of lands from the natives, and which are, in point of fact, as essentially a part' of the cost of such lands as the instalments paid to the natives are themselves, since it is quite clear ,that no available pui chases could be effected from the natives without the requisite arrangements being made to secure 'to suitable and sufficient reserves, and to see pointed out and defined the localities where those res'erVeY'a»V situated',' j arid their respective ( boundaries.

3. Recently, as your Excellency is aware, the Local Government have had no less than three separate officers exclusively engaged in different directions, in attempting to effect negotiations for the acquisition of certain districts for the New Zealand Company, and at their especial request ; the additional pay which it has heen found necessary to allow those officers for travelling expenses, and in consideration of the peculiar, difficult, and lahorious nature of the service, considerably exceeds the rate of £1000 per annum ;' there are also many collateral incidental expenses, as presents to natives, rations supplied to them, passages by sea from one place to another, and many others, all of which are exclusive of the ordinary salaries of the officers in question (excepting one) which still go on, and form a charge upon the Local Revenue, although their time and services are wholly devoted to the interests of the New Zealand Company. 4. For a Province where the revenue is so limited, and in the absence of any provision made by Parliament to meet an expenditure of "the kind alluded to above, I would respectfully submit, either that the I New Zealand Company should be required to provide the requisite funds, or that the Local Government should not be liable to be called upon to undertake negotiations from w hich, alter incurring very heavy expenses, they derive no corresponding advantages, * 5. It is true the Act of Parliament only contemplates the selection by the New Zealand Company of 1,300,000 acres from amongst the whole districts purchased from the natives, and that consequently large tracts may eventually revert to the Government ; but as the New Zealand Company are not called upon to exercise their right of selection within any given period, and as the. Act even contemplates the possibility of more extended arrangements being entered into with them upon the termination of the present one in April, 1850, it is quite clear that an practice the Local Government are unable to make any such surplus lands available, or in any way to reimburse themselves for the heavy outlay they are called upon to incur. 6. Moreover, in the despatches of the Right Honorable the Secretary of State for the Colonies, and in the correspondence which took place between his Lordship and the D.rectors of the New Zealand Company cm this subject (copies of which your Excellency supplied me with last December,) it is evident that Earl Grey contemplates throughout that the onus of providing funds to acquire lands for the purpose of enabling the New Zealand Company to carry on their colonising operations would appropriately and justly attach to that body. 1 would beg, therefore, to receive from your Excellency such instructions in reference to this question as may put me fully in possession of the course your Excellency wishes should be adopted, and as may point out the specific source from which the funds required are to be obtained. 7. To put before your Excellency at once all the information relating to the subject, I have caused to be prepared a statement shewing the expenditure incurred by the Government in arranging the different land questions : I have also added a statement shewing the sums expended in presents to natives, and on account cf the Special Commission under Lieut.- Colonel M'Cleverty; for although these, or at least the former of them, cannot perhaps be directly charged against any paiticular land purchase, they havearelative connection with those arrangements, and will at least shew that the Government are subjected to other contingent outlays, all tending to promote or facilitate the arrangement of the New Zealand Company, besides those which can be classified under particular and distinct purchases. 8. In concluding my despatch upon the subject, I would bring under your Excellency's notice, that by the arrangement entered into between Her Majesty's Government in England, and the Directors of the New Zealand Company, the last instalment of the loan to that body would become due after April, 1849 ; and that, as it is uncertain whether their existence as a chartered Company may not terminate at the expiration of the three years, for which the Crown waived in their favour its right over the demesne lands in the Southern Province, it may be necessary to bring under the notice of the Secretary of State for the Colonies, a statement shewing the expenditure which has been incurred in the colony on account of land purchases, with a view to its being taken into consideration should any new arrangements be entered into between the Crown and the New Zealand Company, or should they at the termination of the three years find* it necessary to wind up their affairs. 1 have, &c, (Signed) E. Etrb. Tp His Excellency the Goyernor-in- Chief, &c i &c.; &c.

[Enclosure No. 1, to despatch 16/} Copy. No. 4. Government House, Wellington, 15th February, 1849. Sir, — In accordance with the instructions of the Right Honorable the Secretary of State for the Colonies, (which provide that the money required to meet the expenses incurred in acquiring lands from the natives for the New .Zealand Company should be provided by that body,) and in compliance with your verbal intimation to me the other day, that you were prepared to repay the advances recently made by the Local Government on account of the purchase in the Middle Island, effected by Mr. Kemp in 1848, I have the honor to transmit to you an account, supported by certified copies of the vouchers kept at the Treasury, shewing r that a sum of £824 : 14 : 0 has heen brought to account, as having been paid on account of the Middle Island purchase up to the sth February last. From a minute' of the Auditor General accompanying the account, you will observe that some few items of trifling amount remain outstanding ; these, together with any other expenses, it may be necessary to incur (as sending Mr. Mantell down again to Akaroa to complete the payment of the 2nd instalment, making arrangements for a commissioner going down to superintend the payment of the third and fourth instalments when due, &c, &c.,) had probably better remain unadjusted until the whole purchase is finally completed. In looking over the account herewith forwarded, you will observe, that where officers have been employed who are in the permanent pay of the Government, no charge has been made against the Company for their ordinary salaries whilst so employed, but only for such additional allowance as it was found necessary to grant on account of travelling expenses connected with the service ; this is the case with regard to Mr. Kemp. Mr. Mantell's last report, and the documents connected with it, which I submitted to your inspection a few days ago, shall be copied and transmitted to you with the least possible delay ; in the meanwhile it may be sufficient for me to observe, that I have instructed Mr. Mantell to return to Akaroa in H. M. steeamer Acheron, and distribute the second instalment according to the plan and in the proportion recommended in his report, and which I was glad to find met your approval. I have, &c, (Signed) E. Eyre. W. Fox, Esq., Acting Principal Agent to the N. Z. Co., Wellington. A true copy — J. D. Ormond. (To be continued.)