E—No. 9 Sec. III.

and that was all; the Coromandel people might take care of their own gold. I do not believe that the soldiers are strong enough and disciplined enough to act as military police, even if their officers chose to employ them. When some of Patene's soldiers tried to take a man up at Rangiaowhia, the old men took their guns from them and turned them out of doors. This institution cannot be specially dangerous to the peace of the colony, for if there were to be war, every man, soldier or not, would fight; and so far as it brings the young men into order and discipline it is good for themselves. Of course as the pay fails and the youug men tire of it, the whole army is likely to come to an end; but at the present time it is in full vigour, aud shows no sigus of decay. (4.) The King's Revenue. That the King's Government is in want of money there is not the slightest doubt. It is a remark constantly made, that we get all our power by our money, and that if they had as much money as we, they would be equally able to carry out their laws. But their reserve on the subject of their expenditure and revenue is so great, and they regard me —who am supposed to have the power of dispensing large sums—with so much suspicion, that on this subject I am very much in the dark. It must therefore be understood that the following remarks are founded on conjecture, and that the facts are inferred from hints dropped when conversing on other subjects, and not derived from direct information. I am not sufficiently in the King's confidence to have seen his account books. (1.) The chief purpose for which the Runanga at Ngaruawahia professes to require money is for the pay and accoutrements of the drilled soldiers. There is a Ngaruawahia regiment paid directly by them, and I faucy the King gives pay to each of the others during the time that it acts as his body-guard. The local regiments are, as I have above stated, at present paid from local sources; but it is not impossible that the King may design to take them wholly or partially into his pay, if he could only find the funds. There are, besides, officers of the household, constables, and drill sergeants at Ngaruawahia, who must require some pay. (2.) A printing press has been lately set up, at which royal notices and gazettes are printed, aud a three-penny newspaper has been advertised, of which (according to Turnuhuia) some numbers have already appeared. This involves some expense, as the produce of the sale of the newspaper is not likely to cover the cost of ink, paper, and other outlay. (3.) The Runangas have constantly to employ messengers to carry letters and summonses, and I was told by Thompson that these men have to be paid. (4.) There must be some personal expense for the King himself and the members of his council, though there is little doubt of his being one of the least costly sovereigns in the world. It is very likely that there are other schemes for the promotion whereof money is required, which may never come to the knowledge of the Government. The sources from which money is derived for the King's exchequer are as follows:— (1.) A share of the money taken at ferries is paid to the King. From the ferry at Pukete, where Is. 6d. is charged for putting a man and horse across, £5 was paid to the King during the past year. There is a notice at Paetai requiring all passers by to pay Is. a piece to the King. (2.) The King has a share of the fees and fines taken by the local runangas. I have heard that Reihana, of Whataroa, very lately sent down as much as £10 to the King's treasury. (3.) Large sums are given as voluntary donations. £300 in sovereigns were brought back by Epiha from the Ahuriri Natives in November last, but this is by far the largest donation that was ever made. (4.) The Revenue derived from these sources is not very regularly paid; at any rate the Runanga cries out for more. A printed paper was circulated two or three months ago, calling upon the King's subjects to send larger and more regular sums of money, especially from the ferries, and there is no doubt that great anxiety is at this moment felt to devise some means of getting more. Several plans have been proposed. (5.) There was at one time a talk of putting a tax upon all wheat and potatoes sent down the river beyond Ngaruawahia. Thompson said it was to be the wheat of King's Natives only, that was to be thus taxed. This scheme has been given up as impracticable. (6.) An attempt was actually made by Reihana and his soldiers to take toll from the ships entering Kawhia harbour in the summer; it was resisted by the Natives living there, who were alive to their own interests, aud has failed. (7.) The favourite project of the day is to levy tribute from all Europeans resident within the King's dominions. Turnuhuia is the chief promoter of this scheme, and he says that tribute is to be imposed on all alike, Ministers or Magistrates, residents on Crown lands or not; and that whosoever will not pay will be driven out of the district. Some wish to postpone the measure, on the ground that it is unfair to expect Europeans to contribute until the King's Government can protect them from depredations. In one case, to my own knowledge, the tribute has been exacted. Mr. Oldfield, a trader living at Kahumatuku, which is nominally a loyal village, paid £1 to Turnuhuia in April last, under a threat that he would be stripped if ho refused. The Natives of Kahumatuku at first promised him protection, but when it came to the point they advised him to pay the money. (8.) I feel bound to add that I have heard reports that the King receives a share of the salaries paid by Government to Native Assessors, within what he considers his dominions, and that the King's supporters are in this way reconciled to the appointment of Assessors. I do not consider this improbable.

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UPPER WAIKATO.