A.—3

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establishment of British currency may reasonably be expected to render more free the course of trade, to enlarge its scope, and, I venture to hope, materially facilitate commercial intercourse with New Zealand. I have, &c, Feedeeick J. Moss, His Excellency the Earl of Glasgow, G.C.M.G., British Eesident. Governor of New Zealand, &c.

Enclosure. No. 1, 1894. —To Establish a Beitish Cueebncy. It is hereby enacted by the British Eesident and the Parliament of the Cook Islands :— 1. That no action under this law shall be taken by the Chief of the Government without the previous approval in writing of the British Eesident. 2. That the Chief of the Government shall, by Proclamation, fix a date from and after which the current gold and silver coinage of the United Kingdom of Great Britain and Ireland shall be the only coinage current as legal tender in the Cook Islands. 3. No person shall be obliged to accept as legal tender silver coins to an amount exceeding five pounds, nor copper coins exceeding one shilling, in any one payment. 4. The Chief of the Government is hereby authorised to issue, with the approval of the British Eesident, as hereinbefore provided, Government notes to an amount not exceeding in all the sum of two thousand pounds, in such form and of such separate amounts as may be found most suitable. 5. The said notes shall be numbered consecutively, and entered in a registry, so kept as to indicate the dates of issue and the amount in circulation at any one time. They shall be signed and countersigned by persons appointed by public notification by the Chief of the Government, and approved by the British Eesident. 6. Any person or persons may obtain Government notes as an advance secured upon the deposit of Chilian or other dollars now current; but such advance shall not exceed two shillings on each dollar. 7. The dollars upon which an advance has been made shall be exported for sale, and on receipt of the proceeds in British coin the advance shall be repaid therefrom. If there be a deficiency, the person or persons to whom the advance has been made shall make good such deficiency. If there be a surplus it shall be paid to the said person or persons. 8. The amount of the notes in circulation shall not at any time exceed the amount of the dollars held by the Government in security at the rates aforesaid, or the amount of British coin representing the full value of said notes. 9. The said notes shall be received for import duty, and all other dues payable to the Federal Government of the Cook Islands, or to the local Government in each of the Islands forming the Federation. They are hereby secured upon the federal revenues of the Cook Islands, and shall be all or any of them redeemable in British coin at such time or times as the Chief of the Government may by Proclamation direct. 10. All obligations of the Government for salaries or otherwise existing when the change to British currency is made shall be estimated at three shillings to the dollar, and all sums due to the Government may be compounded for British coin at the same rate. 11. The Chief of the Government is authorised to make all arrangements and appointments, and to incur all expenditure necessary to give effect to this Act. Dated at Earotonga, this 27th day of July, 1894. Approved. To come into operation forthwith. Feedeeick J. Moss, British Eesident.—7th August, 1894.

No. 3. Mr. F. J. Moss to His Excellency the Goveenoe. My Loed, — British Eesidency, Earotonga, 14th August, 1894. I have the honour to enclose the following Acts passed by the Federal Parliament during the present session, which is expected to close on the 17th instant: — (1.) Supreme Court Amendment Act. (2.) Passengers Act. (3.) " Appropriation Act, 1894." I also enclose :— (4.) A declaration of the Parliament as to land. (5.) Estimates of revenue and expenditure for the years 1894-95, showing also the expenditure of 1893-94. 2. The Supreme Court Amendment Act merely alters the name to that of the Federal Court, the original name having been found misleading as to the character and jurisdiction of the Court. 3. The Passengers Act is an attempt to prevent the overcrowding of small vessels, Native and others, as far as means permit. 4. The declaration as to land lays down the principle on which Maori tenure exists and has existed from time immemorial. It appeared to me desirable that this should be placed on official record, and the declaration from the Parliament afforded the most suitable means. The declaration received the unanimous concurrence of the Parliament as a correct statement of the case.