OPENING OF PARLIAMENT.

New Zealand Times, Volume XXX, Issue 4483, 2 August 1875, Page 6

OPENING OF PARLIAMENT.

The fifth and final session of the fifth Parliament of the colony of New Zealand was .""* opened on July 20, with the usual ceremonies, •'■' hyhis Excellency the Governor, the Marquis r ' ofNornianby. The day was beautifully fine, the weather presenting a marked contrast to that which had prevailed for the few previous days. From an early hour it was apparent that an event of more than ordinary importance was to take place. Bunting floated in the breeze in all directions throughout the town, and part of the shipping in harbor, including the man-of-war Dido, was dressed from top to stem, whilst the streets were thronged with numbers of strangers from all parts, not to mention the troops of Maoris, specially got up for the occasion in their fanciful costumes. The "Wellington Volunteer Artillery and the City Rifles mustered strongly • at the drillshed in Willis-street, under the command of Captain Pearce and Captain Crowe, at half-past one o'clock, headed by their respective bands, and marched along Willisstreet and Lambton-quay towards the Parliament Houses. The Artillery, with their guns, took up a position on the reclaimed land, whilst the Rifles proceeded on to the Legislative Council Chamber, and formed a a guard of honor at the entrance. At the Government Buildings a large concourse had assembled, and the Council Chamber was quickly filled, and the elegant toilettes of the ladies rendered the scene exceedingly brilliant. Nearly all the members were present in their seats before two o'clock, at which hour the first gun of the salute announced that his Excellency had left Government House. Shortly afterwards the doors of the Legislative Council were thrown open, and his Excellency, who wore the gorgeous uniform of the Civil Service, accompanied by his private secretary, a couple of aides-de-camp, and Captain Chapman, commander of H.M.S.S. Dido, entered the hall, and was received by the Speaker, and conducted to the dais. The members of the House of Representatives, preceded by the Sergeant-at-arms, bearing the mace, and headed by the Speaker (Sir F. Dillon Bell), were speedily in attendance, and his Excellency then read the speech. This done, the viceregal party retired and drove away, the band performing the National Anthem. The members of the House of Representatives then retired to their, own chamber, and routine business in both Houses was proceeded with.

LEGISLATIVE COUNCIL. Toesday, July 20. The House assembled at 2 o'clock. Present: The Speaker (Sir J. L. C. Richardson), Hons. Dr. Pollen (Premier), Col. Kenny, Col. Brett, Menzies, Hart, Edwards, Rhodes, Wigley, Wi Tako, Ngatata, Chamberlin, Lahman, C. J. Pharazyn, Holme?, Capt. Baillie, Mantell, James Williamson, John Johnston, and Major Richmond. THE GOVERNOR'S SPEECH. Shortly after 2 o'clock his Excellency entered the House, and the members .of the House of Representatives having, in obedience to the usual message, appeared at the bar, his Excellency rose and read the opening Speech, as follows: Honorable Legislative Councillors, and GeJiTLEHES OF THE HOUSE OP "REPRESENTATIVES, — I have great pleasure in now for the first time meeting the Parliament of New Zealand, and I trust that your deliberations during the present session may tend to advance the wellbeing and good government of the colony. Since my assumption of the Government I have had the satisfaction of visiting the four great centres of the population, and of becoming personally acquainted with some portions of the Middle Island, and I must congratulate you upon the great energy which has been evinced, and the rapid strides which have been made towards the development of the resources of this rich and fertile country. The reception which I have everywhere received as her Majesty's representative has been most cordial and loyal; and it will, I can assure you, be my anxious desire to extend my visits with as little delay as possible to all portions of the. colony, in order that I may become personally acquainted with. the resources, the requirements, and, as far as possible, with the inhabitants, of the various districts. I observed with the utmost satisfaction the progress which is being made in the construction of those great public works which have been undertaken by the Government under your authority, and! trust that the time is not far distant when the industry of the country will receive a fresh impetus by their completion. The debt incurred in the formation ofrailways has indeed been large; but, at the same time, the returns received from those sections already opened are most encouraging, and tend greatly to prove the wisdom of the policy adopted by you. _ _ * ■ Our relations with that section of the native people of the colony which has been so long estranged from us continue to improve. The recent meeting of Tawhiao with the Native Minister—a meeting sought for and arranged by Tawhiao himself—gives promise that the isolation in which the immediate adherents of the Maori King have hitherto held themselves 13 about to terminate. The renewed desire of the natives to provide an English education for their children, as shown by the large increase in the number of schools in native districts, and the generaLgesumption of industrial pursuits, give assurance of the maintenance of peace, and of a desire on their part to participate with the European colonist in the general prosperity. A communication by telegraph has been received, intimating that a new contract for a mail steam service to and from San Francisco has been made by Sir Daniel Cooper, as representing the Government of New South Wales, and Mr. Russell, as representing the Government of New Zealand, subject to ratification by the Legislatures of the respective colonies. The contract and papers will be laid before you ■when received. You will be gratified to learn that a contract ha 3 been made by Sir Julius Vogel, acting on behalf of this Government, for the laying o£ a telegraph cable between New South Wales and New Zealand, upon terms much more advantageous than were believed , fco be attainable when the undertaking was first authorized, and that the Government of New South Wales has become a party to the contract, and has agreed to contribute onethird (£2300) of the annual subsidy (£7500). Gentlemen of the House of Representatives, — - .....

Estimates of expenditure for the current financial year will be laid before you. Whilst providing for the requirements of the public service, these Estimates have been so framed as 'to secure the utmost economy found to be consistent with the complete efficiency of the several departments.. The Immigration and Public Works Loan of four millions, authorised by Act in the last session, has been successfully negotiated. The papers relating to this operation will be laid before you without delay. It will afford you satisfaction to be informed that the public revenue continues to increase, and that the actual receipts.for the past financial year have been considerably in excess of the official estimate.

Hokoeablb Legislative Counctixobs and ■ GENTLEMHW OF THE HOUSE OF RePBESENTATIVES, In accordance with the resolutions adopted by the House of Representatives in the last session, the necessary measures for the abolition of the provincial form of government and for the establishment of a more thorough form of local government in this the North Island.haye been.prepared, and will be immediately laid before you. You will be invited to decide whether, talcing the circumstances of the colony into consideration, as well as the present financial condition and future prospects of some of the Provincial Governments in the Middle Island, the operation of the proposed measures may not at once, with general advantage, be so extended as to include the whole of the provinces. In. view of the proposed constitutional changes, and of the approaching termination of the existence of the present Parliament, a re-adjustment of the representation of the people to meet the altered circumstances of

electoral divisions has become necessary. Bills will accordingly be submitted for your consideration for amending the law relative to the qualification of electors and for a readjustment of representation. A Bill to consolidate and amend the laws relating to stamp duties, and a Bill to amend the laws relating to insolvency will also be laid before you. I confide to your earnest attention these and other measures to be brought before you, in the hope that the Divine Wisdom will guide your efforts faithfully to discharge your onerous duties. His Excellency and suite then left the House.

HOUSE OF BEPRESENTATIVES. Friday, July 23. adbrkss in rep-ly. The adjourned debate on the address in reply was resumed by Mr. MURRAY, who criticised the railway policy of the Government, and contended that the construction of cheap railways was not the best mode of introducing railways to the colony. With regard to the mail service contract, he could not see why the agency of Mr. Russell should have been necessary when they had an Agent-General and a PostmasterGeneral, Mr. Vogel, in England. He was dissatisfied with the arrangement made, believing it would be found very expensive, and was not pleased with the negotiations for a cable. He believed the £4,000,000 loan had been so negotiated that it would only yield 88 to 89 to the colony, and it was clear that the loan had either been grossly mismanaged, or the credit of New Zealand had vastly depreciated. In reference to the provincial question, he thought it should be deferred till the next Parliament; and if the Government would promise not to pass the measure through its final stage this session, he would give them his support. (A laugh). , . Mr. McGILLVRAY urged the adoption of the address without more hair-splitting, and deprecated the condemnation of measures before they were submitted. Mr. THOMSON supported the adoption of the address, and felt he could do so without committing himself to expressing approval of all the matters mentioned. It he felt otherwise, he should not vote for its adoption. The perusal of the four million loan correspondence had created an uneasy impression upon his mind, and he did not believe in the measure of abolition. He animadverted strongly upon the indecent haste with which the' late Premier had posted off to England after the close of last session, and expressed the opinion that the Government was well aware of the fact that he would not be back. He criticised the appointment to the office of the Minister of Justice, a gentleman who was unknown to the House and unknown to the country, and regretted that opposition was weakened by the conduct of certain gentlemen who had changed parties. He hoped that the Government would rigidly adhere to their programme, and not trim a 3 they did last session. Mr. WILLIAMS should vote for the adoption of the address, and expressed his intention of supporting the Government on the abolition question now that the;%had extended their proposals to the whole colony. Mr. PYKE was satisfied that the language of the reply was so couched that he could vote for it without feeling in any way fettered But on some of the questions he could not go with the Government. As to the Provincial question, he was satisfied that' the present system was a curse and a nuisance to the community, but if it was proposed to abolish provincial institutions this session, the measure ! would not find a more uncompromising opponent than himself, because he considered the people should first have an opportunity of expressing an opinion. Again, he was not satisfied wfth the manner in which the public works of the colony had been carried out, and he considered the Californian mail service of no value to the colony. He did not believe in the stability of the Pacific Mail Company, for in Harper's paper, one of the most respectable journals in New York, he saw that the company was alleged to be managed by a set of gamblers, one of whom had appropriated to his own use a large sum of the company's funds. Respecting the four million loan, he thought the arrangements made satisfactory, though he believed the Government would have been discreet not to have laid the papers upon the table of the House, for the recriminations con-tained-therein affected seriously the credit of the co ony. , . Mrl BUNNY noticed the silence of the Goverrnment, ana proceeded to criticise the parag aphs of the speech, premising his remarks by expressing the hope that the important session just commenced no sinister motives would be attributed, and that each side would give the other credit for sincerity. (Hear, hear.) He did not believe the question of constitutional reform the most important question—the people, whatever the form of the government, would progress by the sheer strength of their good sense—but of more importance was the proper administration of the government and the wise management of the finances. From what he had seen, he believed the public works policy was most wretchedly administered, and adverted to the conduct of the Government in respect to the stoppage of the capitation allowance, and also to the bad management of the Masterton line. And who were the railways managed by?—not the Gogernment, they knew nothing about it, but by a Mr Passmore, who had been imported from England to learn his business. A cartload of these gentlemen—sucking engineers and station managers—had been importedrecently, and the Masterton line instead of yielding a pront cost £I SOO a year to support it. In reference to the four million loan, he regretted that the correspondence laid upon the table had been written, and, being written, had ever been published, and that the House had been called upon to wash the dirty linen of the colony. With regard to the abolition question, he was totally opposed to it, as he could foresee the evil result; but if the people, after the matter had been thoroughly discussed, decided in favor of abolition, he would not raise an objection to it The people, when they found the bad effect would have to thank themselves for it. The Hon. Mr. REYNOLDS said it was not out of discourtesy that the Government had declined to take up the debate, but they preferred to wait till the measures were before the House, instead of wasting the time. The sooner the present discussion was brought to an end, and the House proceeded to the regular business, the better. ' _ Mr. MONTGOMERY considered the adjournment of the debate justified by the correspondence which had since been laid on the table. The wrangles of the .gentlemen entrusted with the money operations were disgraceful, and it was intolerable that the 'Treasurer should go Home and say the Government were in a mess, and must get out of it in the best way it could. In regard to the manner in which the loan had been raised,, he onolJorcd credit was due to tne -Treasurer, who had shown great capacity. However good the constitutional Bill might be, he hoped it would not pass this session. He should always vote against the measure if it was intended to have one Constitution for the North and the South. If a change were to be made, he should like them to consider also the desirableness of a change in the Upper House, and not allow that Chamber to be filled with nominees of a Government. He thought the session would be a long one, for leaving on one side other questions, that of finance would require looking into more closely than had been done during the past few years. Mr. McGLASHAN advocated the cessation of the discussion on the great subjects of the session till the Bills were brought down, but with regard to the provincial question, at most itwas a questionof time.. Thofeeling againstprovincialism was Increasing every day, and if the question was postponed till next session, the majority in favor of abolition would be largely increased. But he could not see why they should defer the matter and prolong the misery of those provinces which were struggling for Mr. Waed and Mr. Wales supported the motion, and the latter gentleman said if an amendment had been proposed he could have understood the debate, but as it was he could not. If they were to*fight let them commence at once and settle the matter, if not, let them go on with the business of the country. He should express no opinion as to the measure of

abolition just yet, but his impression was that the country should have a voice in the matter. Mr. BRANDON expressed dissatisfaction with the mail service negotiation, the public works policy, and other matters. Mr. DIGNAN could not vote for the Government. In reference to the question of abolition he expressed the opinion that the people should be consulted before the proposed changes were carried into effect. He considered the provincial system was never in a better or more satisfactory condition, in Auckland at any rate, than at present. Sir GEORGE GREY rose amidst enthusiastic cheering, and said it was with a sense of great responsibility that he proceeded to address the House, for a more momentous period than the present in the history of the country had never existed. There were matters contained in the address which it Was proposed they should adopt, which demanded their most serious consideration, because afflicting the welfare of the whole of New Zealand—(hear, hear) —and those matters demanded earnest consideration before any other measures were brought before the House—before they started on the momentuous course they were about to enter. He had. demanded, therefore, as a right, that they should obtain time to consider, and in demanding that right to look into the address before they adopted it, they had simply performed their duty to their constituents and the people of the country generally. He gathered from the address, or the proposed address, now that he had perused it, that the Government intended to pass a new Constitution, under which the people of New Zealand were in future to be governed, and he also understood that the Government intended to introduce a new Representation Act during the present session. He gathered that from the speech, but he wished to be under no mistake, and desired the Government to say distinctly whether that was their intention. Sir DONALD McLEAN said it was the intention of the Government so to do. Sir GEORGE GREY took that to be a distinct affirmation on the part of the Government that they considered the present Parliament did not represent the people of New Zealand. (Cheers from the Opposition benches.) That was the only inference to be drawn, and yet they sought to force upon the people a Constitution made by those who did not represent the inhabitants of New Zealand. Could it be possible that Ministers would force the measure upon the people with a House so constituted—a House which did not represent the people? (Cheers.) He pointed out that a more monstrous proposition had never been made. It was conceded that the inhabitants were not fairly represented. He challenged them to commit such a flagrant injustice. Before this measure was passed they must have each district equally represented ; they would have no pocket boroughs —-(cheers) —they would not have three members for one district, with but one for another district of equal size, and some with none at all. (Cheers.) He maintained they must give each district its proper share, and act justly and fairly towards the people of New Zealand, and allow them to return representatives proportionate to the population. In such circumstances as nowobtainedit would be monstrous to meddle with the Constitution that the people of New Zealand enjoyed. What was the result of this unequal representation?—that the gentlemen who occupied the Government benches did not represent the people of the country. The hon. member for Timaru had told them that it was impossible for the House to get a better Government. He understood him, to say so. Mr. STAFFORD said it would be impossible for him to get a Government who would more thoroughly express his views. Sir GEORGE GREY : More thoroughly to express his views. Was this what the Parliament had come to? The hon. member for Timaru told them that the whole object of the people should be to return men to give expression to his views and opinions. Was this to be the whole object of Parliamentary government? (Cheers.) What had they come to ? (Renewed cheering.) Was this for what they had tried for years ? Was this for what they had struggled to return Governments and Parliaments ?—to represent the views of one man. (Cheers.) He said it was not so, and he said that the gentlemen who occupied the Treasury benches did not in any way represent the inhabitants of the colony. Take the Premier, for ' example. He was placed in the Upper House by the nomination of the Ministry of" "which he was now the head, and it was done to serve ' a purpose, and such was the nature of the changes taking place that it was difficult to foretell what would be the next move. Perhaps they might have the hon. member for Timaru next to adorn the Ministry, and he would confess he should be glad to See such a change. But to return to the Premier. Who would pretend that a person so nominated could possibly represent the people, not being required to be a wealthy man, as in the Upper House at Home, not being required to give any pledge to assure the people that he would endeavor to hand down to posterity those institutions on the sustenance of which depended the welfare of the country. What interest could such a person have in the country? There was no provision by which he might be | impeached before his peers and might be tried l for mal-administration. There was no guarantee that to-morrow he might not retire from his office into some sinecure. He said that such a nomination to a House so constituted did not give a true representation to New Zealand for its Premier. (Cheers.) He was merely the representative of an absolute Minister now in London, whose return to this colony no man could vouch for. Then there was the hon. member for Taranaki, for whom • he had a great regard, who might be an able Minister. ■ Doubtless he was a gallant man ; but he in no way fairly represented New Zealand. Then there was the- appointment of the hon. member for Kaiapoi. For weekß he had wavered whether he would be a lord or whether he would take his seat in the House of Commons —(a laugh)—and though he was a member of the Executive Council, and occupied the position of a Minister of the Crown, yet he did not represent the people, and it was the game with all the Ministers of the Crown. The Upper House did not represent the people. 1 Powers had been placed in its hands, but the people had never been consulted, and the House of. Representatives, constituted as it was, did not represent the people. The Government was nominated in England by a body, and he believed for political reasons. With such representation as this, he said thi3 was no time to impose a Constitution on the people of New Zealand that was utterly abhorrent to them. The Parliament- was just about to expire, and at present did not, as admitted by Ministers in the address before the House, properly represent the people of New Zealand, and it would be faithless to its trust, faithless to the people, faithless to tne country, ir it imposed this Constitution upon them. If this Parliament did proceed to impose this Constitution upon the people, he would assert that it was not done by the people themselves, or their representatives. It would be done .by an external body, by the Parliament of Great Britain without the wishes of the people being consulted. The people would have no.choice if the House forced such a Constitution upon them, and most unfairly, unjustly, and improperly their rights would be denied them. It was one of the most wicked attempts that had ever been made to rob the people of their rights. The speaker then went on to refer to the alleged influence at Home of a banking institution, and said this measure was proposed at the instance of that institution, that additional security might be given for the money required to Bustain the policy of the Government, and passed on to suggest that the Assembly should pass such an Act as would delegate to the people the duty of choosing under what Constitution they would be governed. Let a new basis of representation be fixed, and let Ministers lay before the country their proposals, and, whatever the country chose, he and his party would assist to carry out the people's expressed wishes. If they would not accept his suggestion, and would persist, they would find that there were men who would nob submit to it; and he firmly believed they would bo right in resisting such an unlawful pro-, ceeding. It would be unlawful according ito constitutional law and Btatute law. Any-

one who read the speeches of eminent British statesmen would find this doctrine laid down, as a maxim of constitutional law -. that powers once granted to the people could not be taken away from them except by that Legislature which granted the powers. Then as to statutory law : the Act upon which the Government [were proceeding wa3 never intended to be wrested so as to be applied to the purposes it was proposed to be applied. Parliament had been deceived into passing the Act, and at the time it waspassed into lawit was never intended to use it for the purposes of robbing the people of the representative institutions which they now enjoyed. Had that been understood, instead of the Bill passing through in a few days, weeks of anxious consideration would have been devoted to it. The term " abolishing the provinces," as used in that Act, never contemplated interfering with representative institutions. The present Chief Justice had laid this down distinctly. He had told them that there were five provinces in New Zealand the boundaries of which had been fixed by proclamation, and the meaning of the term "abolition of the provinces," mentioned in that Act, simply meant the altering of those boundaries. This he had illustrated by instancing the case of Canterbury and Westland. The moment the Westland province had been proclaimed, the proviuce of Canterbury, previously in existence, had been abolished ; but it had not, however, been deprived of its representative institutions. If great and manifest privileges were granted in specific terms to the people, general words of obscure meaning could not take such rights from them. The hon. member for Timaru had used the word " revolutionary." He thanked him for that word, for it was evident that the Government intended a lawless proceeding, though the attempt partook more of the nature of a coup d'etat; but whether it would be successful remained to be seen. , Ho was Superintendent of the province of Auckland, and there were certain rights belonging by law to that office, which rights he would not allow the office to be deprived of. While there was a court in New Zealand, or a judicial committee in Great Britain, he would maintain those rights, and he would be upheld, not only in the present time, but by the shouts posterity would raise in all time to come. He appealed to those around him not to surrender those rights; he appealed to the hon member for Timaru, whom he had known under many circumstances, and whom he had never known to make propositions to sacrifice right or justice to expediency, to lend his aid to obtain for the people of New Zealand a fair and just consideration of the Constitution it was proposed to impose, before he forced it upon them. He appealed to the Native Minister to give the country time to consider what form of government it would have ; ho appealed to the Colonial Treasurer, who had done the country good service, not to go down to posterity with a bad name ; —(a laugh)—he appealed to the Minister for Public Works not to inflict upon the country a condition of which he knew nothing ; he appealed to every member of the Government not to kick away the ladder by which they had risen, and prevent their children and children's children from rising even higher than themselves. For himself he should resist it to the death. (Cheers.) Sir DONALD McLEAN opened his address by stating that the intention of the Government was to extend the powers of the people to a degree which they had never possessed before. That was the object which the Government had in view, and he could only say that whilst it was the determination of the Government to carry into effect those measures which they believed to be for the good of the country, they were supported by law, by the evidence of facts, and by the general feeling of the people both outside and inside of that House. It was all very well for the hon. gentlemen to speak of appealing to the people; but had they (the Government) not appealed to the people 1 [A voice : " No."] They had appealed to the people ever since the year 1858, and the result was, during the passage of the following years, that the feeling in favor of the abolition of the system of Provincial Government had became most powerful from end to end of the colony. That was the fixed and firm determination of the Government, and from which course while it existed it would not swerve in the slightest degree. He had travelled through the various out districts of tho ooimtrj", and thought no one who had done so could fail to see the vast centralising power of the provincial institutions, and to acknowledge that the time had come when a constitutional change was necessary, and when the people should be given greater powers and larger freedom than they had hitherto enjoyed. At present the interior portions of the country, which were the very backbone and sinew of the colony, were suffering, and required to be settled by a system of local self government. He would allude to the province of which his honorable friend (Sir George) was Superintendent, and ask him what had been done there for the outlying districts—the greater part of the provincial revenue had been expended within the large centres of population. With regard to another remark of his honorable friend, he denied the possibility of the proposed change being contrary to the desire of the people of New Zealand. Everywhere the people were paying increased attention to local affairs. They (the Government) were there as the representatives of the people, and he held that they had a right to decide on any measure which,'after careful consideration, they deemed to be conducive to the welfare of the country at large ; and that they had determined to do, whatever the Opposition say to the contrary.

The Hon. Mr. STAFFORD devoted the first part of an able address to replying to Sir George Grey's allusions to him as the hon. member for Timaru, and said that Sir George Grey had put a false interpretation on his action. He then proceeded to reiterate his reasons for supporting the Government, and he considered that on the Ministerial benches there were gentlemen as well qualified to conduct and administer the affairs of New Zealand as those of any colony of its age. As a precedent to the course which the Government at present proposed with regard to constitutional changes, and as opposing the argument of Sir George, the speaker next referred to the fact of representative institutions having been taken away from Jamaica by the Imperial Parliament in consequence of their having got into such a complete mess as to render a prolongation of their existence detrimental to the interest of the country. With regard to the people being slighted in the imposition of legislation, he asked the hon. member whether he had not slighted the people when he sat down, . without advice, (in a small cottage dignified by the name of "Government House") and framed the Constitution under which the country was for the future to be governed ; and how did he, as *her Majesty's representative, give effect to tt ? He,'-unwittingly no doubt, put a deadly stamp upon provincialism at that time. As he (Mr. Stafford) read it, the form of constitution meant that certain local and isolated centres of population should have a form of self-government without being subject to interference from any other governing body. The country was parcelled off into six small fishing villages. Both Hawke's Bay and Taranaki had been totally ignored, for the latter formed no part in the recommendation sent Home. He felt confident, ' however, of the' reply when he asked those people of Taranaki if they would prefer to be tied to the city of Auckland. He would ask whether they were likely to derive any strength from such a bondage. In the face of all this his honorable friend had got up and in effect had said that that House was not competent to give an opinion as to the most desirable Constitution. Thirty -years ago, when the hon. member had the administration of the Constitution Act, no provision whatever had been made for districts which were entitled to Government. Otago was at that time peopled by some 2800 inhabitants ; yet to this 2800 persons did he surrender the greater part of the South Island. Mr. Stafford went on to say that Sir George Grey at that time was deficient in knowledge of the* geography of the country—being so absolutely without material information that the districts were given false positions, and false names were given to places. With regard to the people not being able to exercise a_ proper freedom, the onus probandi lay with Sir George.

Sir GEORGE GREY explained that he did not draw up the Constitution, and was compelled to divide the colony into provinces. Mr. STAFFORD continued to criticise the address, and said Sir George was particularly unfortunate in imputing that that House was oblivious of the wishes of the people, as also in saying that it was in the power of certain persona to influence the appointment of the Governors of the colony. Sir GEORGE GBEY said he had been misunderstood. He did not allude to a gentleman who had been governing this colony, but to a director of the Bank of New Zealand, who had formerly occupied a position in the present Ministry. Mr. STAFFORD continued, saying that the power to consider large questions *«*ich as that under discus'sion was the right of that Assembly. He characterised the arguments of Sir George as illogical. He would defer the question to the people, yet that House represented the people, who entrusted it with the Government of the colony. As to what Sir George had said regarding an appeal to the Imperial Parliament, he looked upon it as futile and ridiculous. In conclusion, he asked the hon. gentleman to wait for a few days until the Government had clearly expressed their views. The Hon. Mr. FITZHERBERT, in a speech which caused much amusement, reviewed the addresses of Sir Donald McLean and Mr. Stafford. Imprimis, he expressed satisfaction at the increased freedom of speech which had obtained in the Assembly, which was owing to the presence amongst them of Sir George Grey. Sir Donald McLean had said "We have | determined to pass this Bill," and that bare : declaration constituted his argument. He (Sir | Donald) knew no better ; he was very good in his own department, but was very much wanting when he entered into general politics. With regard to Mr. Stafford's speech, the principal point in it was a reference to Jamaica. It was absurd to refer to Jamaica regarding Constitutional rights. Had he ever been in Jamaica ? He looked upon such an argument (into which their dark skinned brethren had been dragged) as being of a very different eolpr to that brought forward by the hon. member for 'Auckland City West. He saw nothing in what Sir George had said to call forth strictures from Mr. Stafford. It was right that they should speak of the danger which they conscientiously believed to be ahead of them , and he was glad to see a disposition to give free and honest expression to opinions—a change in the nature of their proceedings, which was owing to the advent of Sir George Grey, who had come amongst them and put pluck into them. They would not have dared to say a word had he not been there. They (the occupants of the Government benches) had about as much to do with the Government of New Zealand as he (Mr. Fitzherbert) had. They had their masters. The hon. member for Timaru was' making those gentlemen do his work, and his position was a very discreditable one. The member for Timaru was the Government of New Zealand. Mr. Fitzherbert then referred to the speech of Sir George Grey in detail. The Hon. Mr. BOWEN expressed astonishment that Sir George should have intimated that as Superintendent of Auckland he defied that house, and that he did not give a snap of his fingers for them. He took it that Sir George did not occupy a constitutional position. The Government would lay certain papers on the table, and would be prepared to say why they did so. They intended, in virtue of their position, to lead the House, and would stand or fall by what they said. With regard to the hon. member for Timaru having expressed his adherence to the Government, he might state that the declaration of that gentleman was as unexpected by the Government as it was by the House. He did not consider the debate a waste of time, inasmuch as it had effected a definition of parties. Mr. ROLLESTON concurred in the latter remarks of the Minister of Justice as to the advantage of the discussion. The address was strictly according to precedent, and he could not discover anything in it which should raise objection, or which would . pledge members to any particular course in adopting it. He thought that on one subject it might with most propriety be said that instead of Mr. Thomas Russell representing the Colonial Government it was the Colonial Government that represented Mr. Thomas RusselL He declined to think that this debate had been unnecessary. If tne'neW' light that'bad bcea ihrown upon matters by the papers laid upon the table since the adjournment were only the precursor of further light, it would not be unprofitable to adjourn still further. He was glad in respect to the reconstruction of the Ministry to see the anomalous position under which the late Premier carried on business without consultation with his colleagues changed, but he should have been glad to have heard something from Ministers in explanation of that anomalous position. The country could not but feel that the conflict between Sir Julius Vbgel and the Crown agents would be most detrimental to the interests of the country at large. There would be a further feeling very wide spread that the country had not been governed by those who were really responsible to them. As to his own views in connection with the Ministry, he would have' been glad to have heard that the technical change in the Ministry had involved a change of policy. He was pained by what Mr. Stafford had said —-it was impossible to avoid the conclusion that the Ministry was guided by a member who would take a seat in the Cabinet. There were interests, he thought, of greater importance than the one which had been made the chief subject of the debate. In his mind, he would be glad to see that question disposed of, and the House addressing itself to the great question of the public accounts. Coming from the isolated district which Sir Donald . McLean did, he was no judge of the present question. He (the speaker) came from the second province in the colony, and from the experience of that province, he feared' that under that worst form of centralisation which it was proposed to put in the place of provincial institutions, the great centres of population would be neglected for outlying districts. He reprehended the system which he saw creeping up of gentlemen joining a Ministry with the views of the chief of which they had previously been at variance. He expressly declined to associate himself with that part of the address which expressed satisfaction with the financial condition of the colony. The motion for the address in reply was then put, and carried on the voices, and a committee appointed to prepare the address. After a short adjournment, the address in reply was brought back from the committee by the mover (Mr. Ingles), read and agreed to.

FINANCIAL STATEMENT. « FIUDAY, JtJLY 80. The House having resolved itself into Committee of Supply, The Hon. Major ATKINSON rose and delivered the Financial Statement. He said that he did so xmder a strong sense of responsibility. There had been so many positive statements and intangible rumors discrediting the financial position of the colony, that he desired at the outset to give them an official, refutation. He thoiight a plain unvarnished statement of the true condition of our monetary position would be the best possible answer to unscrupulous slanderers ; while it would enable honest doubters to ascertain for themselves the truth or falsehood of what they had read or heard. His subject naturally divided itself into two parts—Loans and Revenue. LOANS. With regard to the raising of the four million loan, it mußt be remembered the Immigration and Public Works scheme when originally submitted by Sir Julius Vogel was intended to extend over a long period, but it had been impossible to resist the pressure to hurry on works. In obedience to the desire of the Assembly, immigration and public works were both pushed on vigorously, and as a necessary consequence loans had to be raised more rapidly than at first proposed. Out of the £7,750,000 authorised between Juno, 1870, and June, 1874 it was not generally understood that nearly £2,000,000 still remained unraised. This fact had an important bearing on the action lately

taken by Sir J. Vogel in placing the whole £4,000,000 in the market at one time. The expenditure out of loans during four years, 1870 to 1874, was £4,289,877, and it was last year estimated that during 1874-5 £3,300,000 would be required. In addition to the above there was at least the expenditure for current financial year to provide for, say £2,250,000. Out of this total expenditure of £9,839,877 to be provided for, only £5,795,200 had been raised, and it became necessary therefore to provide the balance of £4,044,677. Government decided to sell the whole £4,000,000 if possible, and appointed Sir J. Vogel, Sir P. G. Julyan, Dr. Featherston, and Mr. Sargeaunt agents for the purpose. Grave difference of opinion arose between Sir J. "Vogel and his coagents. The former wished to sell the whole amount at once through Rothschild's, while Julyan, Featherston, and Sergeaunt thought a better price could be obtained if the requirements of the Government permitted the loan, being sold by two instalments. They ultimately agreed, however, to adopt Sir J. Vogel's plan. The loan was to he by Rothschilds at ninety-four, out of which Rothschilds receive a commission of two per cent., they taking up three millions immediately, and the remaining one million within a year. The net price received by the colony is £9O 19s. Id. By this arrangement the colony were to obtain the necessary means to carry on public works and immigration, whether Rothschilds successfully floated the loan or not. This fact is particularly commended for consideration. The report received from Sir J. Vogel and that from the other three agents, although differing materially in opinion on some points, concur in the result as successful. Dr. Featherston and the Crown agents write, " that considering its magnitude, the terms upon which this transaction has been carried out appear to us exceptionally favorable." With these facts before them, the Government are decidedly of opinion that the course pursued was the right one, that the operation was marvellously good, and that to Sir J. Vogel is due the successful termination of the negotiation. Kothschilds placed the whole loan, and £3,167,571 had been paid to the credit of the public account at date of last advice (31st May). On comparing the loans, the average annual rate of interest of the previous loans since 1870 is £4 19s. 6d. per cent. The last is £5 2s. per cent., and the average of the whole £5 os. 7d..per cent., which is very satisfactory when it is considered that in the original estimate introducing the Immigration and Public Works policy, it was calculated the money might be obtained at 5i per cent. The balance at Bank of New Zealand, London, on 31st May, had been partly reduced by a repayment to the Bank of England of the £600,000 that had been borrowed on the £BOO,OOO of Imperial guaranteed debentures to £2,056,716, against which drafts had been discounted by the bank in the colony up to the 30th June of £1,050,000. The Bank of New Zealand now pays interest at the rate of | per cent, below current Bank of England rates, instead of 1 per cent, as formerly. The probable average balance for the year is estimated by Sir J. Vogel at £1,500,000, and he proposes to invest any sum in excess of that amount in Exchequer bills.

The history of the loan raised prior to 1870, and the unproductive nature of at least £3,000,000 of the amount, are too well known to require explanation. Only the loans raised under the Acts of 1870, 1873, and 1874, are reviewed. Out of the £790,000 authorised by the Defence Loan, 1870, to be spent within five years for purely defence purposes, only £681,703 has.been spent. There is also a balance out of the £210,000 authorised by same Act for other purposes. Out of the total of £1,000,000 authorised, there is still an available balance of £125,315, less expense of raising. The unraised portion of this loan amounts to £179,700, of which £52,700 has been hypothecated to the Bank of New Zealand for a nominal advance of £50,000.

Before remarking on the operations exhibited by the table showing the expenditure on the General Purposes Loan, 1873, reference is made to the extraordinary misapprehension which appears to exist even among well-in-formed people, with regard to the extent to which interest is paid out of borrowed money. This misapprehension arises probably from two causes, viz., from payments made in London apparently taken from loan, and from tlio Horn of £300,000 voted under this Loan Act for "repayment to Immigration and Public Words Loan for interest and sinking fund paid or to be paid therefrom." As this is a question closely affecting the credit of the colony, an explanation is given, showing, as regards the first mentioned cause, that out of the Consolidated Revenue raised in the colony there are charges payable in London for interest and sinking fund, while on the other hand, there are large sums raised by loans at credit of colony in London, of which a considerable amount is required to be expended in the colony. The practice is to pay in London such portion of the interest and sinking fund chargeable on revenue as is required to be paid there out of the funds raised by loan, and on the receipt of the Crown agents account in the colony, charge the interest and sinking fund so paid to the Consolidated Revenue. The whole transaction is merely a convenient mode _of avoiding the payment of exchange, and nothing more.

AVith regard to the second cause of misapprehension, the total sum ever asked for or granted for this purpose, was the £300,000 above mentioned; of this only £218,500 has been expended, and as no more interest will be paid out of loans, the balance of £81,500 will be otherwise appropriated. But against this payment of interest out of loan there haa been contributed to public works a sum of £179,303 out of stamp duties, and the contribution will be increased by the end of the year to £241,800, so that there will be contributed out of revenue towards loan purposes £23,300, over and above all interest paid out of loan, which contribution will be further augmented year by year. The absurdity of the assertion that Government has been paying interest out of loan, is shown by the fact of no less a sum than £2,384,942 having been paid from revenue since 1870 for interest on loans. Last year all interest was paid out of revenue, and this year the same course will he followed, notwithstanding provision has. to be made for interest upon the additional £4,000,000 raised. Out of the General Purposes Loan, 1873, for £750,000, a sum of £463,000 is yet unraised, but the Bank of New Zealand holds hypothecated debentures to the value of £210,500 against a nominal advance of £200,000. The available balance on this loan, less the charges of raising, is £106,500. In explanation of the hypothecation for the above advance of £200,000, and of the £50,000 under the Defence Loan, it is stated that it was proposed to sell in Sydney £300,000 of General Purposes Loan bonds at par, but only about £50,000 have been sold, and the remainder withdrawn. The hypothecated debentures have thus been unredeemed, for although the colony has large funds at its disposal, the wholesome restriction exists which forbids the ways and means provided by Parliament for one service from being applied to another. The liability for interest, however, has been annulled by depositing with the bank £250,000 of the Immigration and Public Works Loan, bearing same rate cf interest as the advances. The three Immigration and Public Works Loans 0f1870,1873,and1874, are, for the sake of clearness, tabulated together, with the following result :

Authorised £1 ?/°,?WExpended to 30th June, 1575 .. S.*! 4 '^ Liabilities 3,09»,992 Available balance .. .. 429,313 The items of expenditure will be explained in full detail by the various Ministers in the departmental statement shortly to be made. The summary of the loan tables shows as follow : Authorised £11,760,000 Expended to 30th June, 1875 .. 7,739,413 Liabilities 2,531,923 Available balance .. .. 1,478,66* Balance yet to.beraised.. .. 1,954,800 The public debt on June 30 was .£17,671,106, less accrued sinking fund, £1,074,647. The annual charge for interest, £835,150, and the sinking fund, £110,635: Of this debt the colony has a balance in hand of £2,167,896, being cash raised but not yet expended, although subject, of course, to outstanding

liabilities. Besides this the accumulated sinking fund, £1,074,647, really represents the extinction of so much indebtedness. When the amount still to be raised is obtained, the total indebtedness will be £19,380,906, and the totalannual charge thereon £1,035,775. But before this prospective debt is reached the whole of the balance now available, plus the proceeds of the portions of loans yet to be raised, in all £3,877,696, will have to be expended. Assuming this to be two years, the accumulated sinking fund will by that time have practically reduced the debt to £17,980,906. Some of the loans forming this debt are specially secured on the proceeds of land, which will accrue at intervals.

REVENGE. Turning now to the question of revenue, the estimate formed has been exceeded by £108,402, the revenue received being £1,605,000, or £184,785 in excess of previous year. Under every head there has been an increase over the revenue of the year previously, and only on two items has the estimate fallen short by the. small amount of £2441. The total Consolidated Revenue for the last year, including £96,357 assets yet to be realised, and £205,500 surplus from the previous year, amounted to £1,906,860, and the expenditure to £1,786,414, leaving a surplus of £120,446. Of the £500,000 Treasury bills outstanding last year, £IOO,OOO has been paid, and the power to borrow £SO,OOO. for advances to provinces has not been used, the advances having been provided out of revenue as well as an advance of £20,000 to the trust fund, against Treasury bills held by that i fund.

The total amount of Treasury bills now current is £400,000, which have been renewed during the year at a more favorable interest. This amount is less by £310,000 than the amounts outstanding in 1872. The total receipts from confiscated lands for the two years ended 30th Jnne last, amounted to £80,826, and the expenditure to £94,77°. The time has arrived when these lands should become subject to the ordinary land laws, and a proposition will be submitted thereon for approval. The ordinary land fund has amounted to showing a considerable falling off from the previous year, owing probably to the purchases in 1874 having been in excess of requirements. The Government are anxious that the public estate should be conserved, and in their opinion it has become the duty of the Legislature to consider carefully the matter, and insist that the public estate shall not be sacrificed or dissipated or the proceeds minapplied. The Savings Bank returns show for the first time a decreased balance, the withdrawals being £40,791 in excess of deposits. This does not arise from a diminution of the saving power of the colony, but to the high rates given by the Banks; the principal amounts withdrawn being for large sums. As the Banks have now resorted to more moderate rates, the deposits will probably again considerably increase. Thus far the statement has been a narrative of facts of the financial position to June last. The expenditure for the current year involves the great question of the abolition of the provinces, in obedience to what the Government conceive to be the desire of the Legislature and a large majority of the people of the colony.

THE BUDGET. The Budget has been prepared on the as> sumption that the provincial form of govern* ment will be abolished throughout New Zealand during the present session of Parliament. The proposed expenditure is as follows: Permanent charges .. £950,176 Public Departments.. 74,460 Postal and Telegraph ' 222,503 law and Justice .. 65,722 Customs .. 57,293 J Miscellaneous .. .. .. .". 43,893 Native .. .. .. 36,191 Militia and Volunteer 22,885 Public Domains and Buildings .. .. 23,351 Railways open for Traffic .. .. .. 244,318 Armed Constabulary 91,000 Grants to Municipalities and Koad Boards 80,000 Provincial Services for eight months, from Ist November, 1875, to 30th Jiuie, 1878 230,322 £2,142,125 To this must be added— Capitation and Special Allowances to ■* Provinces for four months .. .. 92,275 Advances under ProvincialPublic"Works Advances Act, 1574 48,500 Moiety of Stamp Duties to Public "Works Account .. .. .. .. .. 62,500 Local Public Works in Out-districts .. 60,000 Total Expenditure chargeable on Consolidated Fund £2,405,400

The above contains four new items. Railways.—This includes the expenses of railways under Government control for the year, and of those under provincial control for eight months. Armed Constabulary.—The five years appropriation under the Defence Loan Act having expired, the charge is uovr borne on Consolidated Revenue. The Native Minister will give particulars upon this subject when the Estimates come on for discussion.

Grant to Municipalities and Road Boards.— Under the provisions of the Abolition of Provinces Bill there will become payable to munipalities and road boards, out of the Consolidated Revenue, one pound for one collected upon general rates up to one shilling in the pound. These payments will be in addition to the amount payable to road boards from land revenue. For this year the Legislature is only asked to provide eight months' subsidy, i.e., from Ist November next. Provincial services for eight months are required in the anticipation that Parliament will decide this session to abolish the provinces, so that provision may be made for carrying on all necessary departments now under the control of the provinces. This could be done in several ways: Government might have submitted detailed estimates of all the provincial departments, but there are obvious objections to such a course before the provinces are abolished; or Parliament might be asked to permit the present Provincial Appropriation Acts to remain in force, and given authority to continue the services at the same rates for such period as might elapse between the date of expiring of the several Acts and the 30th June next. But looking to all the circumstances of the case, the- Government have thought it better to ask for the vote in its present shape. The expenditure for lands and surveys is, under the Abolition Bill, made a charge upon the land fund, and it is proposed to continue to charge against that fund the departmental services for local public works. The advantages of this mode of procedure are apparent. It brings under the notice and control of Parliament the total expenditure required for the services to be taken over, while it insures the continuance of the several departments until the Government have had an opportunity of seeing where and how they may be advantageously consolidated. The Government are anxious to consolidate offices and. reduce expenditure, but they will be very careful that no reductions shall be made which will at all impair the efficiency of the public service. The proposed vote of £60,000 for local public works in out-districts will enable the intentions of Provincial Governments to be carried out with regard to many necessary works in districts hitherto receiving scant justice ; ordinarily, these works will be charged on land fund, but this year, in consideration of the possible inequalities incident to the proposed changes, it is thought fair to charge it on revenue, and it will, therefore, be in addition to the expenditure provided out of land fund.

The Government recognise education to be of vital importance and colonial concern, and they therefore desire to feel their way inost carefully before moving in it. Education is now being carried on more or less successfully throughout the colony, and the Government do not desire to alter until they are satisfied they can improve. For the present year, it is proposed to let education matters remain practically as they are, seeing however that proper provision is made where it is now ■wanting. While education is properly a charge on Consolidated Revenue it is proposed this year to defray this charge, if necessary, out'of, land fund. A,vote for £50,000 will be taken out of General Purposes Loan for school buildings, to immediately satisfy the want existing in some parts of this colony. It is proposed to pay the capitation and special allowances to provinces for four months at same rate as now existing, except in the

case of the extraordinary allowances, amounting to £40,000, granted to the provinces of Auckland, Nelson, and Westlani

The capitation allowances amount to £92,275, and payments under the Public "Works Advances Act to £48,500, viz., Auckland, £16,000 ; Wellington, £5500 ; Nelson, £23,000 ; Marlborough, £4OOO. . ■ Loan expenditure.—lt is proposed to make the following appropriations out of Defence and other purposes loan :—Defence, £20,000 — outstanding liabilities ; New Zealand Settlements Act, £45,000. Also, ..out of General Purposes Loan, school buildings, £50,000 ; in aid of lighthouses, £3.0,000, Also, out of Immigration and Public "Works Loan, railways, £767,400 ; immigration, £392,348; telegraph extension, £29,700; public buildings, £75,779; lighthouses, £91,700 ; Public Works Department, £77,134. Making the following.totals:— Out of Defence Loan, £65,000; out of General Purposes Loan, £BO,OOO ; out of Immigration and Public Works Loans, £1,434,063. In most of the above cases the amounts are merely re-votes, and will appear in annual estimates. WAYS AND MEANS next claim attention. The estimated revenue for current year is £2,355,747; to which add surplus from last year, £120,466 ; total, £2,476,193; leaving a surplus over expenditure of £70,793. The total revenue as above includes £118,370 taken out of land fund to meet interest and sinking fund on permanent debts of provinces, after deducting from the debts of Canterbury and Otago £600,000 and £270,000 respectively, as the value of provincial railways to be taken over by the colony. It also includes £127,520 charged upon the land fund for interest payable by the provinces on the cost of railways completed and to be completed during the year. It includes likewise provincial revenue as estimated by Provincial Treasurers for eight months, deducting therefrom all receipts for auctioneers', publicans', spirit, and trading licenses, &c, &a, the whole of which will be handed to municipalities. The land fund is not, as in other colonies, included in revenue. This year the amount is estimated by Provincial Governments at £702,192, but returns already received show that the land revenue is much under-estimated.

Gold duty not to be abolished or reduced, but as roads and other means of communication in goldfields are large and imperative, the Government recognises the necessity of meeting these requirements, and proposes to apply the whole of the gold revenue to roads and public works on goldfields. .'Future finance as affecting immigration and public works has received careful consideration. It would be unwise to enter the Jjondon market with any nevv loan for sojae time to come. It is proposed to expend the considerable sums yet available, amounting to about ;£4,000,000, over a period of two years. This will enable the formation of main trunk lines, immigration, and other important works, such as lighthouses, telegraph, and public buildings to be gone on with.

FINANCIAL EFFECT OF ABOLITION. Below is stated the financial effect the proposed changes will have on the municipalities, road boards, and other public institutions in the provinces of Auckland and Canterbury. These provinces have been selected, the one as representing those provinces which are prac.ticatly unable to perform the duties of governing, and the other as being the most favorably affected by the proposed change. It will be admitted on all sides that the present financial position of the province of Auckland is a public scandal, and the continuance of such a state of things as now exists there ought not to be permitted. The necessity for a remedy is imperative and immediate. It is for the Parliament to determine what that remedy shall be, and how it can best be applied. The people of Auckland require to be placed in a position of financial independence, and. the proposals of the Government will satisfy that demand. The province, as a whole, will be provided with all necessary institutions of a provincial character its police, gaols, harbors, lunatic asylums, and educational establishments will be provided for out of the revenue of the colony, and its larger public works will also become matters of colonial concern. The cities will receive the revenues arising from auctioneers', publicans', and other licenses for trading, within its boundaries —together, with a contribution equivalent to the rates counted up to one shilling in the pound. The out-districts will receive the publicans' and trading licenses within their boundaries, the tolls on roads andliridges, and a contribution equivalent to two pounds for every one collected as rates. Under prudent local management each of these communities can secure its own independence, and it will have an income growing with its growth and adequate to its own wants. The Thames will no longer be governed by or dependent on the city of Auckland, but will have tie administration of its own funds. The out-districts, such as Tauranga, "Waikato, and the Bay of Islands, receiving, besides the items of income referred to above, an addition of two pounds for each pound collected by rates, will possess larger and more certain means for improving; their several districts than they have ever yet enjoyed. The Government have no doubt that the City Council of Auckland, with the aid of the license fees collected in their city, and a contribution equal in amount to their ordinary rate, could govern themselves without the aid of a' ; Superintendent and Provincial Council. They believe that the citizens of the Thames would accept the same obligation on the same terms, and, as an old country settler; I know well what the outlying districts will say to proposals which give them the means of real local self-government. ; The proposal explained above with regard to provincial debts when applied to Canterbury, will place that province in an extraordinarily favorable position. Speaking broadly, most of her public debt will be cancelled, leaving, her land fund free for public works within the districti.besides.haying all necessary departments of Government carried on as now. Christchurch will obtain .what she has so long contended for—the licenses and fees collected in the city,.besides the contribution of one pound for one collected by ordinary rates. It may be said the Government have proved too much. It.will be said that if_ there is money enough to carry on the provincial districts in so satisfactory a manner, there must be money to carry on the Provincial Government ; but this by no means follows, nor, if it did, would it be any answer to the proposal of ' the Government; for, in the first place, the proposed-method of- local-administration -being simpler, will.' be much: less, costly . much: less wasteful. Secondly, the statement of this evening has, the Government submit, conclusively proved that the revenues of the colony ase amply sufficient to meet all its liabilities, and provide efficient Government. Yet the experience of the last twenty years has shown that with the present provincial constitution it has been practically impossible for the General Assembly to distribute the revenue equitably so as to meet the requirements of the people. As the capabilities of the colony to bear the burden of its debt is a matter of grave uneasiness to some people, a detailed statement is entered into, showing how the" increase from immigration, railway receipts, and other means are' calculated to enlarge the revenue, and make it fully sufficient to enable the colony to meet its requirements. The House is reminded that a very considerable part of the debt has been incurred for railways, -which are now a realisable asset, and might be disposed of, if the country were foolish enough to desire it, for a very considerable sum, say at. least £8,000,000. It is impossible to deny or ignore the laws of necessitude which seein to govern human affairs, and after the unexampled prosperity of the last five .years, we- may have from ■ time to time periods of depression. There is no sign of that depression at present, but if it come, the facts and" figures adduced give abundant ground for confidence in our future. -The Financial Statement concluded as follows :—ln snaking this statement, I have kept two main objects in view: first, to give a full and intelligible account of our finance ; secondly, to show the bearing upon our finance of the proposed constitutional changes. I am fully aware that even the financial advantages of abolition—and I say nothing of others not

less important—are susceptible of far more complete and convincing treatment than they have received at my hands to-night. Indeed, I have assumed that it was my duty rather to indicate than to enlarge upon those advantages. The figures I have adduced do not need much comment. They show beyond doubt that our. financial condition is at once sound and exceedingly prosperous. But whoever reads these figures in the light of a knowledge of our political history must be well aware that there is in our finance a disturbing element which one day might—l had almost said, which, inevitably must, if not soon eliminated—land us in financial disaster. The continued existence of the provinces means the continued and constantly increasing pressure upon the Government and upon this House for money, in the interest of a locality, without any reference to the necessities of the colony as a whole. Ido not for a moment deny the public spirit of the gentlemen administering provincial affairs ; I only deplore that this public spirit should be circumscribed by the boundaries of the particular province within which they live. I could easily give instances forcibly illustrating what I have said, and which have occurred within the present month—l might say within the present week —but I am sure they are not needed. Itis not necessary that I should prove again what is obvious to every one who will only open his eyes. Last year this House' resolved that the .time had come when this great danger in our path should be removed. That resolve has been approved by the country; the Government have now given it form ; and it remains only for this committee and the Legislature to to give it effect. The hon. gentleman, who had occupied two hours and ten minutes in his delivery of the Statement, resumed his seat amid applause. After a few words from Mr. Sheehan, the Chaihman reported progress, and asked leave to sit again on Tuesday, which was formally granted. The remaining orders of the day were postponed, and the House adjourned at 9.55 p.m.