PARLIAMENT.

New Zealand Times, Volume XXX, Issue 4550, 20 October 1875, Page 2

PARLIAMENT.

LEGISLATIVE COUNCIL. Tuesday, October 19. The Hon. the Speaker took the chair at two ■ o’clock. Reports of select committees on Bills were brought up. PSITATE BUSINESS. The Dunedin Waterworks Extension Bill was read a third time and passed. DEAF, DUMB, AKD BLIND. The Hon. Colonel BRETT asked the Hon. Dr. Pollen whether any steps had been taken by tlm Government towards carrying out a resolution passed by the Council on the12th August, 1871, relative to the establishment of an asylum for the deaf, dumb, and blind. . . The Hon. Dr. POLLEN replied that the need for such an institution was not sufficiently pressing. THAT BODY. - The Hon. Mr. MANTELL moved that there be laid upon the table copies of any proceedings at any inquest held upon a body found, under suspicious circumstances, in a cave knownas the “ Moa Bone Point Cave,” at Sumner, in the Province of Canterbury, on Saturday, the 19th October, 1872, whose skeleton is reported to be in the Christchurch Museum, And, in the event of no such inquest having been held, that the Government lay upon the table a statement of the reasons why no inquest was held ; or assure the Council that instructions would be forthwith issued to the properauthorities to make such inquiry as might, if possible, lead to the identification of the individual whose body was so found, and set at rest any doubts as to the manner in which he came by his death. The Hon. Dr. POLLEN read a letter from the coroner, Christchurch, in answer to an inquiry from the Under-Secretary. The reply was to this effect—“ That the coroner had received no intimation of the bones in the Museum, and consequently no inquest had been held.” If the Hon. Mr. Mantell would undertake the duty of sitting on the body, he would probably do a service to his country, while he (the speaker) could assure him that he would stand in no danger of coming within the Disqualification Act thereby. The Hon. Mr. MANTELL having replied, the motion was carried. THE PIAKO LAND TITLE The Hon. Mr. MANTELL moved that the papers received and evidence taken before the select committee on the Piako land title be printed in the appendix to the journals. He read a number of telegrams from Major Green and others, in reply to requests for information on the part of the committee on the Piako land title. In Dr. Campbell’s letter to him (the speaker) he began by saying that they were strangers, which was perfectly the. case ; and he had received another telegram from that gentleman, which no one could read without being convinced that it came from an honorable gentleman, who accidentally found himself placed in a doubtful position, in which he was quite sure nothing but a little carelessness could be imputed to him.

The Hon. Mr. HOLMES said nothing but an official investigation would satisfy the public. Unless such were insisted on, it would be said that the affair was hushed up, owing to the position of the parties concerned. At the suggestion of the Hon. Mr. Hart, A letter from the Examiner of Titles, received and laid on the table by th® Hon. Mr. Waterhouse, was read. The Hon. Mr. MANTELL replied, and the motion was carried. SUSPENSION OF STANDING ORDERS. The Hon. Dr. POLLEN moved that the standing order relating to the passing of Public Bills through all their stages on the same day be suspended for the remainder of the session.—Carried. MESSAGES. The Registration of Electors Act,- Disqualification Amendment Act, Commissioners of Supreme Court Bill, and Confiscated Lands Act, were received with messages from the House of Representatives. They were read a first time, and ordered to be read a second time at the evening sitting. A message from the House of Representatives announced that that branch of the Legislature had agreed' to the amendments made by the Legislative Council in the Napier Harbor Board Bill and the Moeraki Harbor Board Bill. MUNICIPAL CORPORATIONS LOAN BILL On the Council going into committee on this Bill, The Hon. Mr. WATERHOUSE moved that the Chairman do report the Bill to the Council with amendments. The Hon. Mr. JOHNSTON moved as an amendment that the words “ with amendments” be left out. A division was taken, and resulted in the amendment being carried by 11 to 9. The Hon. Mr. ROBINSON moved that the Chairman leave the chair, which was carried by 11 to 10. QUEEN’S WHARF EXTENSION BILL. This Bill was committed. The Hon. Mr. HOLMES objected to the provisions of the Bill, because a large and expensive wharf would be constructed so soon as the railway was extended to the proposed' terminus. He moved that the Hon. Major Richmond leave the chair. The Hon. Mr. JOHNSTON said the new wharf might not be constructed for three years. They had no information on the subject, and in the meantime the present wharf accommodation was notoriously insufficient. •The Hon. the SPEAKER thought the request made in the Bill was a perfectly reasonable one. After some further discussion, The question of leaving the chair was put, and carried by 8 to 7. OTHER BILLS. The following Bills were read a third time and passed :—The Immigration and Public Works Bill, Immigrants Land Act Amendment Bill, Onehunga Reserves Bill. The following Bills were committed, and ordered to be read a third time at the evening sitting : —Auckland Waste Lands Bill, Goldmining District Bill, Lodgers Franchise Bill, Public Libraries Powers Bill. Tile Vincent Land Purchase Bill (second reading) was made an order of the day for next (this) day. OTAGO WASTE LANDS ACT. The report of the managers in the'conference on the amendments made in the above Bill was adopted. DUNEDIN BORROWING POWERS EXTENSION BILL. Dunedin Corporation Borrowing Powers Extension and Debentures Bill—consideration of reasons assigned by House of Representatives for disagreeing to the amendments by the Legislative Council: —(l.) The Corporation have already power (under the Provincial Ordinances partially recited in the preamble to the Bill) to borrow the sum of £200,000 (two hundred thousand pounds). The Bill, therefore, as passed by the Council, though intituled “ Borrowing Powers Extension Bill,” doss not, in fact, increase the borrowing powers of the Corporation, though it offers a better security to the creditors of the Corporation. (2.) Of the sum of £200,000 which the Corporation has power to borrow under the Provincial Ordinances, about £IOO,OOO (one hundred thousand pounds), has already been raised and expended. (3.) A further sum of £200,000, in addition to this sum of £IOO,OOO already expended, will be required in order to carry out the following necessary public works: (a.) Drainage of the outlying portions of the city, which in their present state are very dangerous to the health of the inhabitants, estimated cost, £40,000; (b ) Completion of the formation, kerbing, and channelling of the streets, estimated cost, £110,000; (c.) Widening of Princess-street, estimated coat, £30,000; showing that a sum of £IBO,OOO, in addition to

the sum of £IOO,OOO already raised and expended, is necessary for the above-mentioned works alone. (l.J.The general Bill intituled the Municipal Corporations Loan Bill, now before the Legislative Council, applies only to Corporations established under the Municipal Corporations-Act, 1867. Its provisions, therefore, are of no advantage to the Corporation of Dunedin, which is constituted under a special Act. .

The Hon. Mr. HOLMES moved, and it was carried, that the Hons. Messrs. AVaterhouse, Nurse, and Johnston, be appointed managers to confer with representatives from the House of Representatives.

THIRD READINGS. The Auckland Waste Lands Act, Goldmining Districts Act, Lodgers Franchise Bill, the Public Libraries Powers Bill, and the Employment of Females Amendment Act were read a third time and passed.

PUBLIC REVENUES BILL. The Hon. Dr. POLLEN moved the second readin o- of the above Bill. The Hon. Mr. WATERHOUSE approved of the Bill generally, but objected to the control which had been exercised on the financial agents at Home. The Hon. Mr. HOLMES spoke at some length, and in the course of his remarks took occasion to speak highly of Dr. Featherston, and the reverse of Sir Julius Vogel. It was as plain as noonday to his mind that had Sir Julius been alone in negotiating the loan it would undoubtedly have gone into the hands of Messrs. Rothschild at 88. The Hon. Dr. POLLEN replied to Mr. Holmes, and- thought that he would at some future time be of opinion that he had said more than he ought to have said. Nothing - could be more unfair, more unjust, and with less of truth than the insinuation he had made regarding Sir Julius 'Vogel. He absolutely and entirely repudiated the statement, which was utterly unworthy of a gentleman holding the position of Mr. Holmes. The Hon. Mr. , HOLMES : I have documents to back me up. The Hon. Dr. POLLEN said that there was no document that would support such an assertion for one single moment, and he was sorry his hon. friend had spoken so of an absent man. On the Council going into committee on the BiU, The Hon. the SPEAKER moved that the Chairman report progress, and protested against important Bills being brought up so late in the session. After some discussion, a division was taken, which resulted in the motion to report progress being negatived by 12 to 5. The consideration of the different clauses of the Bill was then proceeded with. The Hon. the SPEAKER moved that the following proviso be added to clause It : “ Provided that before the close of each financial year all such advances shall he finally renaid.” The motion was lost, and the other clauses were also passed without amendment. The Bill was read a third time. REGISTRATION OP ELECTORS BILL. This Bill was read a second time. In committee the Hon. the Speaker moved that the Chairman report progress. This was negatived by 9 to 7. The Hon. Mr. HART proposed that progress •be reported, giving his reason, which was that the Bill proposed to impose upon public officers a duty which should be performed by the public themselves. The result of a division was 10 to 6. The different clauses of the Bill were then passed. On the Bill being reported, it was read a third time. DISQUALIFICATION ACT. This Bill was read a second time. In committee. The Hon. the SPEAKER felt it his duty to take the same course with this as he had with the two former Bills, and he moved that progress be reported. It would not matter if he haupened to he in the minority, because he should have some satisfaction in the confidence that in future years the records of Parliament would bear testimony that a Speaker of the Legislative. Council had strenuously opposed the passage of Bills in the manner now proposed. The Hon. Mr. WATERHOUSE hoped the motion would not he carried, inasmuch as the Bill was of considerable importance, and was a great improvement on the existing Act. The: Hon. the SPEAKER adhered to his resolutions. He had not had an opportunity of reading the Bill, and that such should be the case he looked upon as a great indignity. At the suggestion of the Hon. Mr. Water - HOUSE, The Hon. the SPEAKER consented to ask leave to sit again to-morrow, when he could have time for the consideration of the Bill. This was carried. COMMISSIONERS op supreme court bill.

The Commissioners of Supreme Court Bill waa read a second time. Xn commitee, The Hon. the SPEAKER felt it incumbent upon him to oppose this Bill also, for the reason that no time had been allowed for its consideration. He moved that progress be reported. A division was taken, the result being:— Noes, 9 ; ayes, 7. The Bill then passed through committee without amendment, and was read a third time. CONFISCATED LANDS BILL. The above Bill was thrown out. REPRESENTATION ACT. The above Act was received from the House of Representatives, read a first time, and ordered to be read a second time next (this day). JOINT HOUSE COMMITTEE. The report of the Joint House Committee was read. The Hon. CoL BRETT gave notice that on next (this) day he would move that the report be adopted. ADJOUBSMENT. The Hon. Dr. POLLEN moved that the Council at its rising do adjourn until twelve o’clock next (this) day. Some discussion took place as to whether the Council should not meet one hour earlier. The original motion was carried, and the Council adjourned at 11.5p.m. HOUSE OF REPRESENTATIVES. Monday, October 18. The Public Revenues Act Amendment Bill was read a second time, Tire order of the 'lay for the second reading of the V/ab. ui'i Native Ora .its Bill was discharged, and tie Bill was. withdrawn. The f lota* went into vMW.oi.ttee on the Comxoiacloners of Supreme iy.il, which was read a third time, .and •pasoed. The BfetuaSfioatiou Act Aeiea.dm.ent Bill was considered in oviumitvje, amended, reported as amended; rei-d a third time, and passed. The Confiscatol Lands AdmfclstraUon Bill was committed, amended* lepoitvl with amendments, read a third time, and passed. The Public Revenues Act Amendment Bill was considered In committee, amended, reported as amended, read a third time, ami passed. The House then adjourned. Tuesday, Octosee 19. The Sebaeee took the chair at half-past two o’clock. PETITIONS AND NOTICES OF QUESTIONS. Petitions were presented. Mr. SHEPHERD asked the Government if they would take prompt measures to bring the rivers and streams at present being fouled by goldmining workings under the operations of clause 2 of the Goldmining Act (No. 1), 1875, known as the Fouling of Rivers and Streams Act ?

The Hon. Mr. RICHARDSON said the desired measures would be taken. Mr. SHEPHERD asked the Minister for Public "Works if the Government intended to take into their favorable consideration the extension of the Otago Central Main Trunk railway from Lawrence to Roxburgh, in compliance with the recommendation of the Public Works Committee on the petitions of the Mayors and Councillors of Roxburgh, Alexandra, Clyde, and Cromwell ?

The Hon. Mr. RICHARDSON replied that the continuation of the railway was desirable,

but a considerable delay must take place before it could be commenced. Mr. O’NEILL asked the Minister for Public Works to state when the Thames water-race would be completed 1 The Hon. Mr. RICHARDSON said the race would be completed about the end of next month or the beginning of the mouth after. Mr. O'NEILL asked the Commissioner of Customs to state when the lighthouses on Cape Maria Van Diemen, and on the Island of Mokohiuui, near Whangarei, would be completed and in full working order ? The Hon. Mr. REYNOLDS said he could not answer with certainty. The apparatus for lighting had been ordered for some time, but no advices of its shipment had been received. However, no time would he lost by Government.

Mr. WALES asked whether the _ Government would, during the recess, take into consideration the advisability of setting apart sufficient endowments to establish a chair of political economy in connection with the institutions affiliated to the New Zealand University ? Also, the advisability of employing a competent person to compile a series of simple textbooks of New Zealand law and history and the common law of England, for use in the common schools of this colony ? The Hon. Mr. BOWEN said the subject should receive the careful consideration of the Government.

- Mr. WALES asked whether the Government, in apportioning the money voted for roads in native districts, would set apart a sum in aid of roads in the Portobello district, adjoining which there are large native reserves now being leased for agricultural purposes, and from which reserves the district road boards received no rates ?

The Hon. Sir DONALD McLBAN said the Government could not divert a special vote ■to the purposes asked by the hon. member.

Mr. G. McLEAN asked the Colonial Treasurer if he would inform the House what was the opinion of the Solicitor-General as to the Crown having priority over other creditors? (See No. 124, Mr. Murdoch’s statement befox-e Public Accounts Committee.) Why that portion of the loan required for disbursement in the colony had not been transferred from the bank in London to the credit of the Government with the bank here ? When the Treasury furnishes the bank with schedules for money payable at its several branches, what account were such sums paid into, the average amount at credit of that account, and did the hank allow intex-est thereon ? The Hon. Major ATKINSON said thei'e was no opinion of the Solicitor-Genei'al on the subject. He would endeavor, however, to let the House have a full explanation of matters before the House broke xip. As to the second part of the question, it hinged altogether on a matter of opinion. For the third part, that no interest was paid on moneys placed to the public disbursement account; but the amount was nothing near so large as the hon. member imagined. Mr. WILLIAMS asked the Commissioner of Telegraphs if it was the intention of the Government to have a post-office in connection with the telegraph station at Ohaeawai, Ludbrook’s ?

The Hon. Mr. REYNOLDS replied in the affirmative.

Mr. T. KELLY asked the Native Minister whether any attempt had been made since the session of 1374 to connect New Plymouth by telegraph with the rest of the colony ; and whether it was probable that the break between Opunake and Stony River station of twenty-two miles would he filled up at at early date ?

Sir DONALD McLEAN replied that the Government were quite alive to the necessity of connecting New Plymouth by telegraph with the rest of the colony ; hut if the construction of the line were pushed, there was a great risk of a collision with the natives through whose lands the wires would pass over. The natives were now much more favorable, and he had no doubt during this summer arrangements could be made without commotion or disturbance.

Sir. T. KELLY asked the Minister for Public Works when tenders would be invited for the construction of the section of the Wai-tara-Wanganui railway from Sentry Hill to Inglewood ? The Hon. Mr. RICHARDSON said that the delay had occurred through it being found necessary to alter the plans, but the Engineer-in-Chief reported that the plans would be ready by the first week in November, when tenders would be called for, Mr. HARRISON asked the Defence Minister what steps had been taken to give effect to the New Zealand Cross Endowment Act. 1869 ? Sir DONALD MoLEAN replied that no steps had been taken, beyond laying off a block of land under the Act. Mr. HARRISON asked the Minister for Public Works what were the intentions of the Government with regard to the carrying out of the proposed harbor works at Greymouth, the plans for which had just been completed. The Hon. Mr. RICHARDSON replied that it was desirable a harbor board should be established at Greymouth, and that then it would be possible to carry out the necessary works. The Government did not see their way clear to taking any large vote this year until they saw how the works contemplated by the Engineer-in-Chief were to be carried out. Mr. VON DER HE YDE asked the Minister for Public Works whether, in view of the sum of £60,000 having been appropriated by that House, under the third schedule of the Immigration and Public Works Appropriation Bill, for the extension of the Kaipara railway to Auckland, it was the intention of the Government to proceed at once with the construction of that work, and when tenders for that purpose would be called for. The Hon. Mr. RICHARDSON said that £60,000 had been asked for to cover the cost of rolling stock for the line, which was to be proceeded with when a favorable opportunity offered, but at present it was more desirable to press forward the lines south of Auckland. Mr. J. C. BROWN asked the Government if they would cause a return to bo made of the correspondence between the Provincial Government of Otago, the Warden of Tuapeka, and the Waipori Channel Committee, relative tathe management of the Waipori drainage channel ?

The Hon. Mr. RICHARDSON said those were letters under provincial control. Mr. J. C. BROWN asked the PostmasterGeneral if he would arrange for a town delivery of letters at Dawrence ? The Hon. Mr. REYNOLDS said the matter would he taken into consideration, but no promise could be given. Mr. J. C. BROWN asked the PostmasterGeneral if he would make arrangements so as to give a twice-daily mail to Lawrence and Havelock to and from Dunedin ? The Hon. Mr. RICHARDSON said until the railway line was completed the request could not be complied with. Mr. O’RORKB asked the Commissioner of Customs whether the Government intended to erect a Customhouse at Onehunga, in contiguity with the wharf and railway, the former Customhouse at that port having been destroyed by fire ? %%> Hon. Mr. REYNOLDS saw no necessity for a Customhouse at Onehunga at present. Mr, HUNTER asked, without notice, whether the attention of the Government had been drawn to the necessity for some restrictions being placed on the carriage of gunpowder to and within the colony, which, from recent events that had been mode public, showed was earned on without care. The Hon. Mr, REYNOLDS said the Government were devoting their attention to the matter, but had no power to place restrictions on the shipment of gunpowder more than three miles outside the colony, ojirwgs nm day. On the consideration of the report of the cotmmUte pa the Representation Dill coming up, The Hon. Mr. BOWEN proposed several technical alterations, which were agreed to, and after a discussion, the Bill was read a third time on the voices and passed. The Auckland Harbor Foredune Grant Bill was read a second time, considered lu committee, reported, read ft third time, and passed,

The SPEAKER read a report from the managers appointed to confer with the managers of the Legislative Council re amendments made by the Council in the Otago Waste Lands Act Amendment Bill. Mr. REID having explained the operations of the amendments agreed to, the House ratified the arrangement come to. COMMITTEE OP SUPPLY. On the motion that the House go into Committee of Supply, Mr. O’RORKE moved that a gratuity of £6OO he granted to the widow of the late Mr. Williamson. He explained what had been done in Auckland, and said about £6OO was required to provide her with an annua! income. Sir DONALD McLEAN, in a speech in which he eulogised the late Mr. Williamson, supported the motion. Agreed to. The motion for going into Committee of Supply having been again read,

The Hon. Mr. FITZHERBERT rose to speak generally upon the question of the financial position of the colony, and said had he not felt it his duty, he would not have troubled the House on the present occasion, because of ill-health. He had been debarred from doing it before, owing to the very engrossing subjects before the House, because the report of the Committee on Public Accounts had not been presented. He then referred to the state of the colony, and said there was a total charge of twenty millions, and an annual charge of a million to pay to outside creditors, while there was only a population of three hundred thousand. A million was a large sum to go out of the colony to foreign creditors; and he compared our position with that of Turkey, which had to pay twelve millions a year to outside creditors, and had been negotiating its loans by contract. The opinion of the credit of Turkey •was not favorable, but Turkey would not be more deeply indebted than New Zealand if it had to pay eighty millions per year for iu-tex-est. He mentioned that to induce the House to appreciate the position of the colony. It had been said that to state facts was to impair the credit of the colony, hut he objected to that, for he believed the proper way to maintain the credit of the colony was to expose in all its-nakedness the real position of the colony. He said Sir Julius Yogel last year deceived the Parliament, and the House had a light to complain, for he had then said in effect that he had not required the £4,000,000, hut merely wished authority to borrow, in case he could sell the debentures at a large profit, and place the country above the exigencies of the money market. He had been cxiticised and questioned by him (Mr: Fitzherhert), yet would answer no questions, but the House was with him, anif authority was granted; though time had proved his prognostications were home out by the papers laid on the table respecting the Four Million Loan, and proved that before the late Treasurer reached the English shores negotiations had been opened up for the sale of the loan. The present Tx-easurer now told the House that every one hundred pound bond was sold at £9O 19s. 7d.—although the net price was less, the price realised was £9O 10s.—and how did such a sale tally with the promises of the late Colonial Treasurer ? Had the Treasurer told the House the real facts, the House would not have accorded the authority it did. The House had been deceived in respect to that loan. Again, the late Colonial Treasurer had said he was going to provide for a long time to come, hut how was that reconciled with the fact that a premium of 5 per cent, was given to pay up prompt, although he was investing the money at a loss ? There was another proof that the House had been deceived, viz., the money was urgently needed for the present, instead of being required for the future. He quoted from evidence given by the Colonial Treasurer before the Public Accounts Committee, in proof of the pressing need of money, for of the four millions only one remained, and that was loaded to a great extent. He then referred to the statement made by the Treasurer last year, that there had been nearly two millions of loan to he raised, and said when negotiating the Four Million Loan he had not said anything about that to those whom he negotiated with, and read portion of the evidence given by Mr. "Waterhouse before the Committee on Public Accounts in support of the assertion. The evidence contained details of conversation between Messrs. Waterhouse, Westgarth, Rothschild, and Julyan, and in which all had professed ignorance of any such power to borrow, and all had agreed that a new loan within two years would damn the credit of the colony. The promise had been given, but this year the Treasurer proposed to break the promise by issuing the remnants of some of the loans.

The Hon. Major ATKINSON said the Government had made no such promise. They had carefully abstained from making such a promise. The Hon. Mr. FITZHERBERT said then the statements of Rothschild and Westgarthwere at variance with that of the Treasurer, but if the House would look into the details of evidence given by witnesses before the committee, they could judge for themselves on this matter. He believed the credit of the colony had been irreparably damaged by the manner in which this forced loan had been negotiated, or rather foisted on the market. It could have been negotiated much better by the loan agents, who would have issued it in two parts, and not in the imprudent manner in which it had been done. If two millions had been issued, 94 would have been realised, and the colony by the use of this would have gained breathing time before it again went into the market. He then _ referred to matters of administration, and said the late Finance Minister had been guilty of negligence in allowing over two millions to be spent by the Agent-General without any_ safeguard. Regarding the presentposition,he said, assuming the balances brought out by the Colonial Treasurer in his Financial Statement, he should like for a short time to look at the general bearing of the position, for the country was now entering the beginning of the end of an era. He complained that there was no looking forward to the future, and said there was a great change in the proposed finance of the colony from the ideas promulgated before the constitutional changes were brought before the House. There ought to have been some indication as to the incidence of future taxation — an indication as to how the revenue was to be raised in cases of deficiencies, which seemed imminent. This was a serious omission, and ho Imped to see it supplied. Tho Hon. Major ATKINSON, after complimenting the last speaker upon his speech, because it had been so fair and reasonable, said be thought his statements not well founded, though lie should not accuse him of deceiving the House. Any hon. gentleman in the House who had taken tho slightest notice of finance last session, must have known that nearly the whole of tho four millions was A total loan of six millions had boon authorised. As stated by Sir Julius Vogel, nearly four millions were required, and tho hon. member for tho Hutt must have known that tho whole of the money previously raised had been spent, and that the four millions were required immediately. It was clear from the very speech quoted by the hon. member, that the whole financial position of the colony was put before the House, and the charge of deception must fall to tho ground. Last year, with an empty exchequer, the Government proposed to spend two and a half millions on public works, so that it must have been known that nearly the whole of the four million must necessarily have been raised. He contended that the money had been raised most advantageously, for supposing, as was probable at the time, a European war had broken out, what would the country then have had to pay for the money if raised in two instalments ? As matters had turned out it appeared the money would have been raised more cheaply, but it would not have been wise or prudent to run the risk for the sake of a little interest. As for tho 5 per cent., that was part of the original scheme and not an afterthought, as had been attempted to bo shown, though he admitted there were several charges not included in his estimate of tho cost of the loan. Ho contended that tho comparison with Turkey was worthless, for tho last loan Turkey put upon tho market realised 43i per cent., and the London money market must surely be taken as a guide. It was true that it was proper to state the

exact position of the colony, but it was a crime for hon. gentlemen to get up and for party; purposes distort the facts. One hon. gentleman occupying a high position in the colony had got up and accused him (the Colonial Treasurer) of gross carelessness for not having included £400,000 Treasury bills in the funded debt, but when his error was pointed out, what was hia excuse ?—that he had not had time to look at the papers. He bad been in such a hurry to accuse the Government of a great deal more than carelessness, that he could not look at the papers. It was such statements as these, not honest criticism, that damaged the credit of the colony, and it was such statements as these that everyone should discourage, He regretted that the statements of third parties should be taken before direct statements, for he was perfectly certain that Rothschilds would not be ignorant of the state of colonial affairs, and he was equally certain that Sir Julius Vogel was not the man to deceive the firm. He could not believe the statements of third parties. The Hon. Mr, EITZHERBERT said the statement to Mr. Waterhouse had been an authorised communication.

The Hon. Major ATKINSON said that was different, hut still he preferred direct statements to “authorised statements ’* from third parties. He denied that the estimates of income were too high, and did not believe there would be deficiencies. The Treasurer then proceeded to make a statement of the financial proposals of the Government additional to the Financial Statement, remarking that it was necessary for them to do so in consequence of the House having declined to entirely abolish the provinces this session, The provincial services were not now provided for, they were omitted, and the total expenditure proposed now was £2,103,664. The Government had proposed to spend £BO,OOO in subsidies, and £60,000 in local government works ; now they proposed to spend £BO,OOO only, and in this way : It had been proposed to give road boards £2 for every £1 raised, and £1 to rural municipalities for every pound raised ; now they proposed to give municipalities one-third of a pound per pound, and road boards onethird of £2 for every £2 raised, or 13s, 4d; and £BO,OOO was the total amount of the vote the Government proposed to take. The Government would lose revenue, but expected to have a surplus of £127,000. The Estimates, however, did not include the supplementary estimates, so that there would have to be added something like £IO,OOO or £12,000.; £92,000 also had to be provided for Auckland and Westland, and this, with £48,000, which the provinces were entitled .to under the Public Works Advances Act, would leave him unable, even if the revenue resulted as estimated, to meet expenditure without issuing Treasury bills. The extra expenditure would be £140,000, while the surplus revenue was but £127,000. To meet this he would employ Consolidated Revenue as much as possible, and would only issue Treasury bills where necessary. Sir GEORGE GREY defended the statements made by Mr. Pitzherbert, and Mr. Montgomery spoke at some length on the financial condition of the colony. After further discusion, the question for going into Committee of Supply was put, and carried on the voices.

The supplementary estimates were then con sidered.

[Left sitting.]