B.-No. 3.

No. 18. THE COLONIAL SECRETARY, TO THE RECEIVER OF LAND REVENUES, SOUTHLAND. Colonial Secretary's Office, 24th March, 18G4. 1 am directed to acknowledge tlie receipt of your two letters, dated respectively the sth of February last and 4th instant, in which you report on the value of the land set apart by the Provincial Government of Southland as security for the loan authorised to be raised in the " Debentures Ordinance, No. 2, 1863," and to return to you the thanks of the Government for the trouble which you have taken in this matter. I have, &c, VV. Gisborne, Under Secretary. Receiver of Land Ttevenue, Invercargill.

No. 19. THE SUPERINTENDENT, SOUTHLAND, TO THE COLONIAL SECRETARY. Superintendent's Office, Southland, 16th April, 1864. Sir, — I have the honor to acknowledge the receipt of your letter of the 24th March, and, in reply, to inform you that I am much gratified to learn that the Receiver of Land Revenue for this Province considers the land set ap:irt as security for the Loan to be raised under the " Debentures Ordinance, No. 2, 1863," of the average value of arable land. I have, &c, J. A. R. Menzifs, Superintendent. The Hon. the Colonial Secretary, Auckland.

No. 20. THE SUPERINTENDENT, SOUTHLAND, TO THE COLONIAL SECRETARY. Superintendent's Office, Southland, 4th February, 1864. Sik, — On returning from Auckland in January, my attention was drawn to the apparently large expenditure on the Bluff and Invercargill Railway, in excess of the sum estimated as the probable cost before the work began. On enquiry I found to my surprise, from the reports of the Enginer connected with it, that the cost, when completed, will exceed the sum anticipated by above £35,000. This excess is in a great measure accounted for by the fact that the rapidly expanding trade of the place led the Engineer to enlarge the works to a very considerable extent in many places to relieve the worst gradients, to increase the order for rolling stock and permanent way ; for siding and double lines in places, and form the bridges for a double instead of a single line—works which at first were regarded as contingently but not immediately required. A further considerable expense is incurred by the necessity of forming a heavy embankment on the beach at the south end of Invercargill, in order to comply with the requirements of a clause introduced into the Act of Assembly in last session, on the report of the Hon. the Attorney-General, which altered the curve leading into Annan-street. On the propriety of making those alterations during the progress ot the work, the Engineers are agreed, and as the contracts have for the most part been entered into, it becomes necessary for the Provincial Government to make provision for meeting the expense; and it intends to propose that a further Loan of £40,000 should be raised for this specific purpose. The Provincial Council meets on the 10th instant, and if it should approve of the proposal, the Bill will be transmitted without delay. The fact of the increasing traffic of the Province will not be disputed, when it appears from the quarterly returns that the Customs Revenue paid in the Province in the quarter ending 31st December, 1863, amounted to within a fraction of £20,000. I am gratified to be able to assure you that the works on this railway proceed most satisfactorily, and that there is every reason to anticipate that before the winter has past it will be open for traffic. As the Provincial Government is prepared to set apart a tract of agricultural country of a value equivalent to the sum of the Loan, in security for its repayment, I trust that the proposal will meet with your favorable consideration, I have, &c., Jas. A. R. Menzies, Superintendent. The Hon. the Colonial Secretary, Auckland, X

39

PROVINCIAL LOANS.