A.—3.

66

or whereby any such paper currency may be made legal tender, without special permission from TJs in that behalf first obtained." (Parliamentary Papers, May, 1841, page 36, paragraph 14.) Such permission, it is admitted, can only be given by Letters Patent, or under the Sign-Manual, or bv Order in Council, of which there is no trace to be found in the Parliamentary Papers. But, supposing that such permission could be dispensed with, or can be discovered among official records, there is no doubt of Governor Grey's neglect to carry out the subsequent instructions received by him. The very important suggestions of the Lords of the Treasury, which Governor Grey is directed by Lord Grev to adopt as amendments of the ordinance passed by him, and which he has hitherto neglected to adopt, are: Ist, that the investment of the funds of the bank should be made in public securities of the Home country, for the express purpose of preventing the Governor from turning it, into a loan bank ; 2nd, the investment in such securities of one-half or at least one-third, instead of only one-fourth, of the capital; 3rd, certain provisions to prevent the irregular circulation of foreign coin, and the liquidation in sucii coin of the bank's liabilities ; and, 4th, greater security in the matter of sureties for officers of the bank. (See Parliamentary Papers in continuation of those of December, 1847, and February, 1848, page 182.) These important amendments had not been introduced by Governor Grey when I left the colony, though one session of his General Council had elapsed since their receipt by him. nor, as far as can be ascertained from the reports in the local papers of the session of Council since held, has this important matter been in any way adverted to. The confidence of the colonists in the local Government as a guardian of public money was not increased by a circumstance which had transpired respecting the Intestate Estates Fund, as stated in Resolution 6 of the Settlers' Constitutional Association, printed in Parliamentary Papers, August, 1851, page 80. A far from successful attempt to impugn the correctness of that statement is made by the local Government at page 78 of the same papers, but, when examined, it amounts to nothing. The Treasurer, being called upon, meets the charge by an a priori argument, "that the usual financial position of the Government is not such as to lead to the improper appropriation of such a sum of money ;" The Lieutenant-Governor says that he can only say " that no such appropriation was made by his authority or directions, or with his consent or knowledge;" while the Governor-in-Chief takes issue on a collateral and unimportant point. Not one of them denies the fact of the appropriation of the money ; nor could they, as I know that the statements in the resolution were substantially quite correct. ( 18) Without imputing to Governor Grey a deliberate intention to sow the seeds of dissension and jealousy between the races, it is beyond doubt that the tendency of many of his acts has been such. His ungenerous allusions to the colonists " as persons who entertain no regard for the Natives or their interests ;" his prediction (too likely perhaps to be the cause of its own fulfilment) that the colonists if intrusted with self-government would "arouse the Natives and bring on a war;" his continual appeals to Native testimonials in opposition to the censure of the colonists ; indicate strongly the bent of his mind in reference to the two races, the inclination to regard the one with friendly and the other with unfriendly feelings. (See his despatches in Parliamentary Papers, 1850, page 59 ; ibid, August, 1851, page 136; and passim, since the question of self-government has formed the subject of his despatches, beginning with that in Parliamentary Papers, December, 1847, page 42.) That the hints thrown out have not been lost on the Natives is evident, from repeated passages in the Parliamentary Papers, where it appears that the Natives have been taught to believe that their interests and those of Governor Grey are identical, and that to bestow powers of self-government on the colonists will be attended with injury to the Natives. (See particularly E Puni's letter and Governor Grey's comments, Parliamentary Papers, August, 1851, page 136, the memorial of the Waikanae Natives at page 141, and that of the Ngauranga Natives at page 142.) No one acquainted with the total ignorance of the Natives on all political subjects can believe for a moment (certainly no one in the colony believes) these documents to be the unprompted effusion of their own minds ; but, in whatever way they may have originated, the result is too evident to admit of a doubt, and the eagerness with which Governor Grey appeals to them is very significant. ( 19) See the colonists' repudiation of Governor Grey's insinuations on this head, in Parliamentary Paper, August, 1850, page 49 ; and Parliamentary Papers, August, 1851, pages 90 to 93. ( 20) See the particular complaint of Tomati Ngapora to this effect, Parliamentary Papers, 1849, page 19. ( sl) Governor Grey himself incautiously admits how little has been done (Parliamentary Papers, August, 1851, page 57), but the real evidence of the narrowness of the limits to which the efforts of the Government have been confined is to be found in the repeated parade of the same scanty materials of display. The reports of four small hospitals, exhibited from quarter to quarter, a few returns of cases referred by Natives to the Resident Magistrates, and frequent letters from Natives laudatory of Governor Grey, being nearly the sum total that is to be found in the Parliamentary Papers ; and even these documents, if examined, are less material than they look. Thus, in a report from the Resident Magistrate at Wellington, he parades the number of cases in which, as he says, Natives only were parties, as a proof of the esteem in which his Court is held by them. On looking at the ap ended return, which extends over three months, we find exactly one case (Parliamentary Paper on Colonial Possessions, 1845, page 435), and in another quarterly report we find exactly two cases (Parliamentary Papers, August, 1851, page 134). The letters of the Natives sometimes afford indications of the real quality of the material which is used to exhibit them in a favourable contrast to the Europeans. The letters of John Heke and his wife (Parliamentary Paper, August, 1861, page 30), followed by the explanation contained in that of Pene Tani, at page 33, are an amusing instance. ( s2) See the case of the Wairarapa, referred to in note( 14). ( 33) Resolution 6, Parliamentary Papers, August, 1850, page 47, and Resolution 12, page 51. In 1842 the amount of the Wellington revenue was £10,906, the population about 4,000, and the expenditure £3,476, the balance, it is believed, being expended in the Northern Province. In I*S4B the revenue was £12,472, the population 4,758, and the expenditure above £16,000. (See " Statistics of New Munster," published by the local Government, 1849.) In 1846 Governor Grey proposed the appointment of a Lieutenant-Governor for the Southern Province, and pledged himself if one were