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STATEMENT RELATIVE TO THE CASE OF SCOTT'S DEBENTURES. On the 17th February, 1851, Sir George Grey, then Governor of New Zealand, issued, in favor of one David Scott, Debentures to the amount of £3675 165., purporting to be charged on the Land Fund of the Province of New Munster in that Colony, at £8 per cent, interest; that interest has since been paid out of the general Revenue of the Colony. On the 13th December, 1851, Sir George Grey also paid £400 for the purchase of a Crown Grant, of land in the town of Wellington, issued to one Young. The colony of New Zealand seeks to be relieved from these charges, and to be reimbursed all sums and interest paid in respect thereof. The case will be understood best by reference, first to the case submitted to the Law Officers of the Crown, by the Land and Emigration Commissioners on the 19th March, 1850 (see Parliamentary Papers, New Zealand, Ist July, 1852, p. 591.) This case states briefly the outline of the original facts. Fuller and more complete details will be found in Mr. Fox's letter to the Secretary of the New Zealand Company of the 29th September, 1850 (ibid. p. 450) ; and in a memorandum of the Colonial Secretary, enclosed in a despatch from Sir George Grey to Earl Grey, 31st January, 1849 (ibid. p. ' 568.) It would be needless here to recapitulate the facts, appearing upon the foregoing Documents, which I shall consider as incorporated in this statement. I will add such supplementary facts as appear to me necessary to complete the case. I think this will be best done by a narrative of what has occurred since the issue to Scott of his Crown Grant. David Scott having in 1845 obtained his Crown Grant, the importance of his claim, hitherto undervalued, began to be recognised. It became clear that, if the Company purchasers were dispossessed, heavy claims would be made on the Company for compensation ; and great losses and much inconvenience would be suffered by individual settlers. The nature of the case and the numbers affected by it, made it in some degree, a matter of public concern ; and the local Government endeavoured, without success, to negotiate with Scott for the settlement of his claim. In 1846, Scott commenced proceedings in ejectment against the persons in possession, who derived Title under the New Zealand Company; whereupon the Company issued a scire facias to try the validity of Scott's Grant. The other parties (Fox and Macdonald) were in a like case with Scott. In June, 1847, the scire facias in Scott's case was tried; but the Jury would not agree in a verdict. In March, 1848, Scott proceeded with his ejectment, and obtained judgment ; and, after an ineffectual attempt by the Company to set aside the proceedings, Scott issued execution and obtained possession. The Company determined to appeal to the Privy Council, but (there being technical difficulties in Scott's case arising from the state of the pleadings) Macdonald's case was proceeded with. A scire facias was issued to try the validity of Macdonald's Grant, which was argued upon demurrer in January 1849, and judgment given for the Defendant. Meantime, and pending these proceedings, negotiations were opened with Scott, through the local Government, for buying up his claim. March 27, 1848, Lieutenant Governor Eyre, (through his Private Secretary,) addresses Scott, proposing "to recommend to the Governor-in-Chief that the sum of £1200 should be paid to him by the Crown, upon his surrendering his Grant." But he warns him, " not to draw inferences as to the grounds on which the Crown was induced to interfere," and adds, " that the Crown is not to be pledged to the offer, till the Governor-in-Chief has been communicated with." The Lieutenant Governor, he says, is willing to take upon himself the responsibility of advising that the Crown should, by taking an unusual step, endeavour at once to settle the dispute between him, (Scott) and the Company ; * and trust to being enabled thereafter to adjust the question in a satisfactory and amicable manner with that body in England." April 3, 1848, Scott declines the offer, demanding £7000, and intimating his intention to appeal to the Home Government. April 5, 1848, Lieutenant Governor Eyre's Private Secretary writes to Scott, regretting that his efforts at compromise had not been successful ; but pointing out that, "as the case in dispute is at present between him and the Company, he cannot conceive any proposals which may appear to make the Crown a party concerned, or may imply that he, (Scott) had in any way a claim against it." Same date, Lieutenant Governor Eyre forwards to Col. Wakefield, copies of the correspondence with Scott, expressing " regret that he had been unsuccessful in settling the question, but that, after what has already taken place, he does not see Crown can do anything further at present." April 7, 1848, Colonel Wakefield acknowledges the receipt of Lieutenant Governor Eyre's communication, " thanks him for his exertions, regrets that it is too late to feel sanguine that any arrangement can take pla,ce, but does not despair of reversing the decision of the Supreme Court on Appeal. April 8,1848, jColonel Wakefield transmits the correspondence to the Secretary of the New Zealand Company ; states his intention to prosecute further proceedings ; that although the Lieut. Governor repudiated " all liability of the Government to Scott, it cannot escape the obligations morally incurred by the wiong acts of its own servants, and the expenses must eventually be made to fall on the Crown." He concludes by stating, that he shall endeavour to thwart these experiments upon the Company's purse by all legal means in his power." August 23, 1848, the Secretary of the Company transmits the correspondence to Earl Grey, without comment.

Case for opinion of Law Officers, 19th March, 1850, Parl. Papers, July, 1852, p. 591. Mr.Fox's letter totheN.Z.Go., 29th Sept., 1850.— Ibid, p. 450. Memorandum of Colonial Secretary, 30th Jan., "1849 — Ibid, p. 568.

See Parl. Papers, July, 1852, p. 233.

Ibid. Ibid, p. 237. Ibid, p. 233. Ibid, p. 237.

Ibid, p. 226.

* This appears to me to show that the Lieutenant-Governor did not mean to pay £1200 on account of the Government, but as an advance to be repaid by the Company. f It is impossible not to observe that though Colonel Wakefield uses this language to the Company, bis laneuage to the Governor bears an opposite construction, and implies that he considered the Company the party liable.