A.—3

26

This, also, the members promised to bring before their constituents. They pointed out that taxation was new, and they were told so much of the heavy taxation in Tahiti and other places that their people were easily frightened. Mr. Moss replied that he was glad to find them so careful. It was a healthy sign ; but they must not forget that they would have no taxes which they did not agree to themselves. No one could tax them without their consent. What they had to do was to see that the taxes were fair to all, and the money spent for the good of all; then Rarotonga would flourish, and the taxes come back to them many times over. It was like seed planted in the ground, which cost money, but came back manyfold. The Council then, after a long sitting, adjourned till Thursday, Ist October. The Council again discussed the finance. The Avarua members were in favour of the proposal of the British Resident, but the Arorangi and Takitumu members said that their constituents were much opposed to additional taxation. Mr. Moss was again asked to meet the Council, and told them he would be glad if any one could propose a more pleasant way of raising the requisite money. He could see no other, and felt sure that eventually they would agree with him, and swallow the pill with the best grace they could. The money was going to educate their children, and to what better use could they put it ? This brought out the Takitumu members, who said their people were offended because Mr. Moss had appointed an assistant teacher—Mr. Richard Donaldson—without consulting them. Mr. Moss said it was the first he had heard of it, and that there was evidently some mistake. It was for them, and not for him, to see to these things, and to the appointment of teachers by the Government. Finally he suggested that they should have meetings of their constituents and explain to them fully, and this was agreed to. The Council adjourned till Monday, the sth October.

[Extract from Te Torea, 10th October, 1896.] Monday, sth October, 1896. The Council met at 10 a.m. Present: Avarua —Taraare Katea, Tita; Arorangi —Pirangi, Puai; Takitumu —Vaikai, Tamarua, Rama. In the absence of Tepou-o-te-Rangi, Vaikai acted as Chairman. Prayers by Taraare. The financial question was again brought up. The members for Arorangi and Takitumu informed the Council that their constituents would not agree to any increase in the education or road taxes. A great deal of discussion ensued. A proposal was made to cancel the vote for maintenance of roads (£6O) or the fixed appropriation for Arikis and Mataiapos (£100), in order to meet the estimated deficit. Both of these proposals were opposed by the majority. The Avarua members were of opinion that the only feasible way of meeting the deficit was to increase the education rate from the present 2s. to 3s. per annum, more especially as were it not for the public schools there would not be this deficit. The decision of the members for Arorangi and Takitumu refusing to agree to the proposed increase of the education rate was reported to the British Resident. Mr. Moss therefore sent the following memorandum : "As the Council is resolved not to increase the revenue by adding to the small education tax, while the members for Avarua are willing that Avarua should provide its share, and as the Council also declines to reduce the expenditure by having only one Judge and one Clerk for the Arikis' Courts instead of three, I suggest that the fairest way will be to let the additional rate be paid by Avarua, and leave its present appropriations undisturbed. The difficulty is caused by the sum paid in excess of fines, and the proper course seems to me to make up the other £60 by striking out the votes for fixed payments to Arikis and Mataiapos in Arorangi and Takitumu—£3o each (vote 8). This will save an expenditure of £60, which, with the £35 to be paid by Avarua as additional education rate, will make good the sum required. The sum paid to Arorangi and Takitumu in place of the old fines is £150. The fines received for 1895-96 were —Arorangi, £15 6s. 10d., and Takitumu, £10 18s.; total. £26 4s. lOd. : leaving a deficiency of £123 15s. 2d. on this head. This deficiency is the cause of the present trouble. Avarua is willing to make its share good. If the other districts are not willing, the only resource is to strike the sums named off the estimates. While making the above suggestion, I wish it to be distinctly understood that I still think the best course is to add Is. to the education rate and to leave the estimates in other ways as they stand." This memorandum led to further discussion. The members decided to again confer with their constituents before coming to any decision. The meeting then adjourned till Thursday, the Bth instant.

[Extract from Te Torea, 17th October, 1896.] Thursday, Bth October. The financial question was again under discussion. The Council made a proposition to raise the required school funds by subscriptions in each district. The British Resident, who was again present, replied that the Government was responsible for the teachers' pay, and that it must come from the general revenue. They might, however, relieve that revenue by subscribing for the share of the old Court fines paid to the Arikis and Mataiapos, if they were bent on subscribing, instead of regular and fair taxation. The adjournment hour put a stop to the further debate, but it was continued on