B.—No. 3.

No. 80. THE SUPERINTENDENT, SOUTHLAND, TO THE COLONIAL SECRETARY. Superintendent's Office, Southland, 30th, August, 18G4. Sir, I have the honor to enclose herewith copy of a letter from the Manager of the Bank of New Zealand here, requesting payment of the sum of £855 (Eight hundred and fifty-five pounds) being balance due to the Bank of the sum of £2,500 (Two thousand five hundred pounds; guaranteed by private individuals on the 21st May, 1864, and which advance was to be a first charge on the Land Revenue. These advances were made by the Bank, on the guarantee of several gentlemen here, to enable Mr. Davies. the Eailway Contractor, to pay off a number of workmen ; a necessary preliminary to a partial suspension of the Railway works, and the repayment of these advances was to be one of the first charges on the Land Revenue. On the Bth June the Provincial Government entered into an agreement with the General Government, whereby the whole of the Land Revenue of the Province of Southland was to be handed over to the General Government until the sum of £45,000 (Forty-five thousand pounds) advanced for .Railway purposes had been repaid, and at the time the Sub-Treasurer here received his instructions from Auckland, the amount of £855 (Eight hundred and fifty-five pounds) still remained ixnpaid. I regret that those gentlemen who guaranteed the repayment of an advance by the Bank, at a time when such advance was an urgent necessity, should now be subjected to the proceeding indicated by the manager of the Bank as expressed in the enclosed communication, in consequence of the too rigid interpretation !>y the Sub-Treasurer of the agreement made between the Provincial Government of Southland and the General Government, and I trust that your Government will see the necessity of issuing instructions to the Sub-Treasurer to pay to the Bank of New Zealand the balance of the amount due on this account from the proceeds of the Land Sales. I have, &c, J, A. R. Menzies, Superintendent. The Hon. the Colonial Secretary, Auckland.

Enclosure in No. 80. THE MANAGER OF THE BANK OF NEW ZEALAND, INVERCARGILL, TO THE SUPERINTENDENT, SOUTHLAND. Bank of New Zealand, Invercargill, 30th August, 1864. Silt, — I beg to request payment of the Provincial Governments' overdraft in our Books amounting to £855 (eight hundred and fifty-five pounds) being the balance, with interest, of certain advances which it was agreed should be a first charge on the Land Revenue. These advances were also secured to the Bank by the bond of private individuals, against whom I shall be compelled to proceed, unless the advance is repaid within a month from this date. I have, &c, Thomas Watson, Manager. His Honor the Superintendent, Southland,

No. 81. THE COLONIAL SECRETARY TO THE SUPERINTENDENT, SOTTHLAND. Colonial Secretary's Office, Auckland, 6th September, 1864. Sir, — I have the honor to acknowledge the receipt of your letter of the date quoted in the margin, on the subject of the financial embarrassments of the Province of Southland, and in reply to refer your Honor to my letter of the 27 th ultimo. I have, &c, William Fox* His Honor the Superintendent, Southland,

20th August, 1864

76

PAPEKS RELATING TO