B.—No. 3a.

fixed at the lowest scale; and thus all public works are stopped, and there are no means whereby the interest on the public debt and the sinking fund for its extinction may be met. Of course the receipts from the sale of land, were sales effected, would materially improve the position of the Province, and enable the Government to meet its liabilities and resun:e the prosecution of public works. Territorial Estate and Revenue. "With reference to the sale of land there has been an almost entire cessation of all sales since the new Act, raising the price to £2 an acre, came into operation ; and intending purchasers may in addition to this be somewhat deterred by the prospect of the imposition of a tax to redeem the credit of the Province. Be that as it may, very little reliance can be placed on receiving any large proceeds from the sale of land under existing circumstances ; still it is evident that it is principally to her land that Southland must look for extrication from her embarrassments.

It may be said that the Banks and all the creditors of the Province are most urgent for an early settlement of their claims ; the former bringing that pressure to bear by intimating their intention to charge the ordinary rate of interest on advances, viz. : 12 percent., besides threatening a forced sale of Debentures. Mackenzie & Co's claim of about £15,000, for two Piers, has been urged with peculiar tenacity, and an execution was made, but the Sheriff withdrew from possession. There appeared to be a well substantiated claim for an immediate payment of £5000, which I met last month (19). Boss & Co., with whom are Messrs. Rattkay, are urgent for a settlement of their claim for about £16,000, under contract for Bluft' Harbour and Invercargill Kailway. Officebs of the Government had claims amounting, on the3lst January, to £3,128 4s. 9d., and as some of these gentlemen are about to be discharged, it appears expedient that their arrears of salary, amounting to £1300, should be paid as early as possible. Dalgettt, Eatteat & Co. have detained at the Bluft' Harbour a certain quantity of Kailway iron, against an account for freight, amounting to £1543 4s. Gd.

7

FINANCIAL CONDITION OF SOUTHLAND.

Acres. Acres. Acres. Tlie total area of the Province is about (15) 2,935,065 Deduct: "Within Iluudreds, sold Do. at present unsaleable, surveyed Do. " " unsurveyed Beyond Hundreds, barren and bush Agricultural land, available, good Do. " indifferent Do. " inferior Do. under pastoral license Pastoral land do Kcserves for Villages, Towns, Roads, Timber 291,423 30,341 128,840 277,393 189,568 269,335 345,270 383,360 957,120 59,415 730,997 1,187,533 I,01G,535 Total Area of the Province... 2,935,065 We may arrive at a rough guess of the value of the landed estate of the Province at £1 )er acre, viz.:—■ Agricultural land, £1,187,533 acres ...£1,187,633 Town and Villages 8,000 " 100,000 £1,587,688 To this sum we have to add the annual rental of 957,120 acres of Pastoral Land at iay Gd per acre, after existing licenses have expired .£24,000 Claims for Pa merit.