A.—No. 2 b.

Let us suppose the Provincial Governments acquire 1,200,000 acres of land from the General Government, one million they could sell by lottery for two million sterling. The balance of 200/>OO acres they could dispose of as follows :— Forty thousand acres divided into small grants to immigrants on deferred payments. Sixty thousand acres to be divided amongst 1,000 Volunteers, who would be ready in case of need to undertake defence duties. One hundred thousand acres for Town and Suburban lands, and which might be expected to yield at the rate of £5 an acre, or a total of half a million. The cost of the immigrants' passages would be £275,000. An amount of £150,000 might be put apart to pay the 1,000 Volunteers one pound per week per man for three years. The balance of the two millions, after defraying cost of negotiating lottery would be available for assisting the immigrants, for surveys, for public works, and for the 2s. 6d. an acre payment to the General Government. _ I have the honor to offer, as a condition of trying my plan, that its negotiation be left to me, in conjunction with any one named for the purpose by the General or Provincial Governments. In respect to the cost of negotiation, the expenses will be large. There will have to be a vast number of agencies and sub-agencies for the disposal of tickets, and an allowance of two and a-half to seven and a-half per cent, will have to be made to them. The advertising will be very costly, and the corresponence heavy. Taking these into consideration, I think that an allowance of ten per cent, to cover all charges will have to be made to the negotiators. I have, &c, The Hon. the Colonial Secretary. Julius Vookl. Prospectus Suggested. IMMIGRATION TO NEW ZEALAND SETTLEMENT AND COLONIZATION OF THE LANDS ACQUIRED FROM THE NATIVES. The Provincial Governments of and , sanctioned T>y the General Government of New Zealand, anxious to settle the magnificent lands acquired from the Natives, have resolved upon adojrting the following means of disposing of a portion of the same— the proceeds to be devoted to the purposes of immigration and settlement:— One million acres of the choicest of these lands will bo divided into *6121 lots, ranging in size from 50 acres to 100,000 acres, as described in the schedule. These will be disposed of for the sum of £2,000,000, represented by 2,000,000 shares of one pound each. The lots will be divided amongst the shareholders bjf lottery in lots as described in the schedule. On each prize ticket the Province in which the land is situated will be stated. The money realized by the Bale the Governments propose to devote to settling the lands, and as a first step in that direction, a considerable portion of the proceeds will be expended in providing free passages to immigrants. One hundred and seventy-five (175) free cabin passages, and eighteen thousand eight hundred and seventy f(18,870) free steerage passages will be provided to the winners of the land, or to those they nominate. The number of free passages attached to each lot is described in the schedule. The Governm°nt stipulate that the persons to whom free passages are granted must be of good character, able-bodied, and not entirely destitute. Agents will be appointed to rigorously investigate the qualifications of persons nominated to free passages. Winners of land not using their privilege of free passages within months, will forfeit the same, but the Governments undertake'to select immigrants and provide them with free passages to the same number as the passages forfeited. Singk^ immigrants will be required to satisfy the Government agents that, on landing in New Zealand, they will have not less than two pounds in their possession, and families of three not less than five pounds The proofs required will be drafts on some bank in New Zealand for the amounts. To meet the necessities of immigrants, not winners of land in the lottery, or representing winners, the Governments will offer liberal employment on public works, or will supply allotments of good land of thirty acres upon deferred payments running over ten years; tools and rations for a limited period (say nine months) will also be afforded upon the same terms, provided the immigrants industriously cultivate the land they occupy. The price of the land will be two pounds (£2) per acre, bearing interest at current rates. The winners of land in the lottery will be allowed priority of choice of the surveyed allotments, in the order of their arrival in the Province. Those arriving at the same time will have to ballot for choice. Crown Grants will not be issued for the allotments up to 100 acres until the winners,"or persons duly authorised by them, have resided upon and cultivated the allotments for twelve months. Owners of lots above 100 acres, not represented on the spot, will be allowed Crown Grants within a reasonable time, upon application to the agent. Pending the issue of the Grants, the owners of winning tickets can obtain certificates of the quantity of land to which they are entitled. The lots of 50 to 1,000 acres will be choice agricultural land ;, above that size the lots will consist of agricultural and pastoral land combined. Iv every feasible way the Government will aid the prize-holders who, themselves or their representatives, settle upon and cultivate the lands. Roads, bridges, and tramways will be liberally provided ; convenient towns will be constituted ; seeds and implements will be furnished to them on. deferred payments of years, bearing the current rate of interest. In special cases rations for a limited period will be granted upon the same terms or upon security • See note to Schedule.

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FURTHER PAPERS RELATIVE TO THE SETTLEMENT