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less than one gallon per head per annum in excess of the southern consumptions, the duty being then at the rate of Gs. per gallon. 65. During the four years, 1853 to 1856, it is probable that the annual rate of contribution per head to the Customs revenue in the northern island exceeded that in the southern island by 10s. per head. With the year 1857, however, a new era commences, and the development of the resources of the southern island, its wool report, and the Nelson gold field, appear to have raised its consumption about to a level with that of the other island. These circumstances, and the increase in the Customs duties made at the latter end of 185G, account for the large yield of the southern revenue of 1857— nearly, equal, on the net revenue, to £2 per head. Still, a comparison of the yield of the duties on spirits wine, and beer, in the two islands—which articles are consumed almost exclusively by Europeans, and produce more than 50 per cent, of the whole revenue —will induce the conviction that the northern European consumption must still be at least equal, per head, to the southern consumption. 66. The following table, shewing the estimated contribution of the Maori population to the Customs revenue, is based on the assumption that the average annual rate of contribution of tho European population of the north exceeded that of the southern population by 6s. Bd. per head, down to and including , the year 1856 —being at the annual average rate of about 335. per head on the net revenue—and that in 1857 the rate of contribution became equal in the two islands.

■ i * These numbers are assumed. 67. It should be explained that the European population of the northern island in 1854 and 1855 is taken from the Statistics lately published by the Colonial Government, but with the addition of 2500 souls to each year for the military population, and of a further amount of 2500 souls needed to correct a manifest error in the Auckland census for those years. There are no returns of population for 1853 and the returns of the population of the southern island for 1857 are not yet compiled, but the numbers given must in every case be very near the mark. The amount of Customs revenue is the net, after deducting cost of collection. 68. The figures in col. vii of the table purport to shew only the contributions of the Maories of the north island. These figures may, however, be taken as shewing the contributions of all the Maories, both of the north and south. For the small contributions of the latter would, as already stated, seem to be fully compensated for by the shipments coastwise from the northern to the southern island of duty-paid goods. 69. These figures, whilst they entirely dispel exaggerated notions respecting the magnitude of the Maori contributions to tho revenue, yet clearly evince to what an extent the aborigines have contracted the wants of civilized men. Their contributions are quite as large as could be expected when it is remembered that to the duties on spirits, wine, and beer, manufactured tobacco, coffee, and some other articles, yielding about four sevenths of the whole revenue, they contribute little or nothing. Even supposing that the sum of 10s. be taken, as above suggested, as the amount of the excess of the annual contribution to revenue of tho northern population up to the year 1857, it will still appear that the natives contributed to the revenue during the years 1853-54-55 a larger sum than did the settlements of the southern island—a fact which is sufficiently surprising. 70. It will be seen that a considerable advantage must occasionally—in years such as 1854 and 1855, when agricultural produce was at an extraordinarily high price—have been derived to the Colonial revenue by the balance of the Maori contributions remaining after defraying the expense of services for their special benefit. In consideration of that balance, the Maori population is free to participate in all tho advintage of civil government; and actually does already share in very many more particularly in the use of roads, bridges, jetties, and other public works. On the roads of the Provinces of Wellington and New Plymouth it is, for example, common to meet with a greater number of Maori bullock-cart 3 than of vehicles belonging to Europeans. The native produce of Waikato reaches the Auckland market by the Onehunga road; and it often happens that every second

Rimarka by the Governor— As these calculations are not assumed to be accurate, I make no remark on them. Ido not, however, see reason to think the mode of calculation here used mote correct than the estimate in my Despatch No. Sβ, of 31st May, [Bee ( which, I may also observe, approached far nearer to that made in Sydney, at the same time the tariffs being very limilar except that the duty on Spirits was higher in Sydney. The undermentioned return of goods supplied by four Merchants in Auckland to the East Coast alone, would shew that they and their cus-

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i. ii. in. rv. V. VI. VII. Year. European Population of Southern Island. Net Customs Revenue of Southern Island. European Population of Northern Island. Estimated Contribution to Customs Revenue of European Population of Northern Island. Net Customs Revenne of Northern Island. Estimated Contribution to Customs Revenue of Maori Population of Northern Island. £ £ £ £ 1853 10,500* 11,873 23,000* 33,673 52,416 18,743 1854 12,310 20,004 25,244 49,3;H 75,852 26,498 1855 14,864 19,556 27,328 45,063 73,353 28,290 1856 17,465 21,851 30,728 4f>,294 65,591 17,297 1857 19,500* 38,600 32,178 63,695 79.G89 15,994