B-No. 3.

the total value of the entire block, £87,500, exclusive of what may be described as unavailable. This I consider to be a moderate estimate. Having thus placed the matter before you as clearly as circumstances will permit, I should be obliged by your informing me if the General Government would advise His Excellency the Governor to sanction a Loan Bill tor the amount required on the security offered. lam anxious to obtain this information before bringing the Loan Bill before the Provincial Council. I have, &c, Thomas Carter, Superintendent. The Hon. the Colonial Secretary. No. 9. THE COLONIAL SECRETARY TO THE SUPERINTENDENT, MARLBOROXJGU. Colonial Secretary's Office, Auckland, 23rd March, 1864. Sir,— I have to acknowledge the receipt of your Honor's letter, of the 11th instant, in which you propose to set apart as a security for a Loan of Sixty Thousand Pounds, sterling, for the Province of Marlborough, the whole of the Crowu Land which lies between the Wairau River and the Northern Boundary of that Province. Your Honor also encloses a tracing shewing the Land which has been alienated, in order to enable the Geueral Government the better to judge of the extent, position, aud value of the proposed security. In reply I have to inform your Honor that, after a careful consideration, the Government do not think that the security proposed is sufficient to warrant them in recommending His Excellency the Governor to assent to a Bill for raising the proposed Loan. I have, &c, Thomas B. Gillies, In the absence of Mr. Fox. His Houor the Superintendent, Marlbo rough. No. 10. THE SUPERINTENDENT, MARLBOROUGH, TO THE COLONIAL SECRETARY. Superintendent's Office, Picton, 29th March, 1864. Sir, — I have the honor to acknowledge the receipt of your letter of the 23rd March, No. 88, in reply to my previous letter concerning a Loan of £GO,OOO for this Province. Acting under the impression and on the information that the Government would advise His Excellency the Governor to assent to a Loan Bill for this Province, if drawn up in accordance with the provisions of a Bill lately introduced into the House of Representatives fi>r the purpose of regulating Provincial Loans, I gave instructions to hnve prepared a tracing of this Province in oider, as I before stated, the better to enable the Government to jndge of the extent, position, and value of tlie Block of Land offered as security ; I at the same instiucted the Chief Surveyor to furnish me with an estimate of the quantities of available and unavailable land comprised in that Block. A careful and, as near as possible, an accurate r< port was made of the available land, and a low estimate of the value of that available country was i>iven. On referring to my last letter, you will perceive that the estimated value of i lie available land comprised in the Block offered as security was £87,. rilK>, and the amount I proposed to borrow was £(!0,000. Referring to your reply I find that you state as follows : " After consideration the Government do "not think that thr proposed security is sufficient to warrant them in recommending His Excelii ncy " the Governor to assent to a Biil for raising the proposed Loan." You are doubtless aware that a Railway Pill and a Loan Bill, | assed by the Provincial Council of this Province, have been disallowed by the Government, before, therefore, again bringing this matter under the notice of the Provincial Council. I " i*h to he placed in a position to give them some positive information as to the amount of money tliaf we shall be allowed to borrow and the terms upon which a Loan '"ill will be granted. May I therefore beg of you to favour me with a more explicit reply as to the amount of Loan that we may be allowed to raise, and the terms upon which the Govrrnment would consider themselves justified in recommending His Excellency the Governor to assent to a Bill for raising such Loan. I am not aware that there is any fixed rule or law at to the proportionate amounts of Security and Loan. E

(No. 88.)

19

PROVINCIAL LOANS