B. . No. 3

pounds (£5O 000) as Surplus Revenue, being cash expended ou behalf and in anticipation of the realization of the Debentures constituting the various loans been Imade DSeqUenCe °f non"sale of these Debellturcs this refund to the Revenue has not thats^thTlT fn l\ G PTi! nCl being hl itS Pre«ent financial difficulty the Treasurer states SLy nn 1? w "1 2t haS been necessai 7 to expend over and beyond our departmental TSfim\ f°lf K dJF°?V* tweiltyfe\en thousand seven hundred and tuenty pounds (£27,/20) on Harbor Works, tour thousand nine hundred and sixty-one pounds (€1901) and to the. Town Board on account of loan three thousand six hundred and seventy-one pounds (£3671) S °tal thlrtv-BIX thousand three hundred and fifty-two pounds (£36 352) With our present liabilities of say forty-five thousands pounds (£15,000) over and .bore ben^rean ire f° f ' °° ft* 2* "* °f ■*«" *»«* Pound"^ 000)! hatlf the bnl 1 / Jrt TS? *^F"1 expenditure before us bearing in mind Ittit t J»e naJf.miUion loan be sold at the same rate as that at which the last sales were effected, the most the loan will do will be to free us from our indebtedness to the Bank of JNew Zealand without advancing our monetary power to prosecute Public Works and thereby advance the interests and increase the permanent wealth of the Province. Regarding these facts the Treasurer shows the absolute and immediate necessity of the appointment^ the CivU Serv ice Commission, through whose labors our expenditure may be lessened, and that whilst on the SJrSwtSP"" T decreT d' lt "• thG int Of the Government at the same time to confr as In, U T ™T °i****»& our Avenue, and pending this increase to cause, as ia,^ 1 ft >CVel\ .t^f 01" d. ef' e°, thaU ha" >' et been done, the° cessation for a while of rl2 „» f° P™"011*!, tllol 'Sh useful still expensive, Public Works, until it is in the power of the b-o\ eminent to pay all accounts as they become due The Treasurer only has to add that, if the credit of the Province is to be sustained if the alarmmg consequences of a panic are to be avoided, it is absolutely necessary that the Goven" ment, keeping the good of the Province constantly before them, act with energy urmneW and ShSi'onteefe r*hTH / *«r™> A K-enue wldch Sall^" su.Hcu'a'. i , enable him to meet the liabilities of the Province, and preserve it from the stigma of bankruptcy. H. Clapcott, The Treasury, Dec. 20, 1864. Provincial Treasurer. No. 5. THE COLONIAL SECEETAET TO THE SUPEBIXTEXDEXT OF OTAGO. Colonial Secretary's Office, gIE _ Wellington, 28th March, 1860. I have the honor to acknowledge the receipt of your letter of the 15th instant, in reference to your Honor's Proclamation of the 20th December last. I forbear discussing with your Honor the various points raised by your letter I will only observe that the General Government is anxiously desirous to assist the Provincial' Government by all means m its power under its present difficult circumstances, and with this view will rive it 9 most favorable consideration to any measures which may be recommended by your Honor and the Provincial Council, to be reported to the General Assembly for altering the term of sale of Waste Jjands ot the Crown. In the meantime and until any such alteration has been sanctioned by the genera Assembly your Honor will lam sure agree with me, that it is the duty as well of the U-eneral, as of the Provincial Government to give effect to the law as it stands. I have, &c., His Honor the Superintendent, FeED A- WelD Otago.

No. 12G.

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