E.—No. 13

I shall go on to Tamahere, where my messenger and possibly Thompson may be, thence next day to Taupari. Te Heu Heu told me that he had written a letter to His Excellency, asking him to come to Taupo. The old man seemed really affected when talking on the subject, and said, sotto voce, to another " Tes, that is what 1 want.1' His speech, which lasted for nearly two hours, was insufferably tedious, beginning with G-overnor Hobson and recording nearly eyerything that he had said himself, or anybody else had ever said to him, ever since. He was very emphatic in his demands for powder. I told him the Governor refused to let the Natives have powder lest they should burn their lingers, at which there was a very hearty and general laugh. I'rom what I can hear and learn their supplies are short and they are aware of it. They say they get it from Ahurrri. This ought to be enquired into. There is no licensed dealer there. The Colonial Treasurer refused a license very lately, and I believe none have been issued. I have heard the same statement before. William Fox. supflkm knta ut itotis. 2nd January.—Wet morning, nevertheless Poihipi and three other Taupo Natives came over according to appointment. Poihipi was in a state of great indignation with the Ngatimaniapotos and Te Heuheu, for the part they had taken at yesterday's meeting ; and he told me he had had an angry discussion with them over night, and had " broken them up," —that Honi Terei and the rest of hisjwrty had already gone back to Taupo, and that he would not go to any of the meetings of the king patty, but come into Auckland to see the Governor, and do some business about a mill he is building. He had read the paper circulated by the Government, on the proposed Native Institutions, and thought it very good. He wished for a Magistrate at once, and expressed his desire to receive a gentleman who was present (Mr. Law), who resided two years in the Taupo district as teacher at the Rev. Mr. Grace's school, and who 1 am glad to say seems very well qualified for the office. He said he would give him a piece of land to build a house on and to make paddocks. Mr. Law is willing to undertake the office, and I have arranged with him that he is to make a preliminary visit to Taupo, and as soon as he has made the necessary arrangements with Poihipi, he shall receive the appointment of Resident Magistrate. The result of this split between Poihipi and the others is likely to be very beneficial, and will give us a position at Taupo which will detach the greater part of the population there from the king movement; and as the district joins the Upper Waikato, it is of the utmost importance. Started in the afternoon for Tamahere, hoping to find W. Thompson, or at least our messenger returned. Unfortunately we found neither, and no certain account of Thompson's whereabouts, beyond a belief that he had returned to Peria, which afterwards proved not to be true. 3rd January.— Returned to Taupari. •4th January. —Heavy rain this day and the following. Unable to get out. In the evening of this day, Matutaera (the king) passed down the river in his canoe, accompanied by a few " soldiers " (some half dozen). He left a civil message for Mr. Ashwell, to the effect that "he was not to be alarmed, that he (Matutaera) was going down to quiet his people on the subject of the advance of the troops, and that there would be no aggression on the part of the Maoris." Monday, sth. —Started for Auckland in a down-pour of rain at 6 a.m., per canoe. Passed Rangiriri at 10 a.m., where the king's flag was flying, and we understood Matatuera was ; but as there were eery few Natives about, we did not laud. All seemed quiet, and no indications of excitement visible. Such Natives as we saw were either busy on their farms or paddling up the river ; and their greetings were friendly. The location of the troops on the very banks of the Waikftto is a great step, and the manner in which the war potty has submitted to'it is indicative of a great change of feeling. Six months ago it would almost to a certainty have been the signal for an immediate outbreak. They then regarded every movement of troops as an intended aggression. They now perfectly understand that they are only used for defensive purposes, and to prevent rather than invite war ; and they fee] that this forward movement has given the Government an effectual check upon the operations of the Wiiikatos. Even if a resort to force should occur at Taranaki or elsewhere. 1 think the Waikatos would scarcely dare to join in it, with the certainty that a few days would see our troops in occupation of the interior of the country, and in their strongholds. The impression which my visit to the war party has left on my mind is, that they are by no means so united as they were. The manner in which his Excellency has treated the king movement has completely baffled them, and deprived them of the only rallying cry which might have strengthened their position. They have at present no ground of quarrel, and it is certain that many of their adherents are getting tired of the movement, in particular the Ngatihauas, Thompson's tribe, one of the largest and most important of the Wnikatos. There is little doubt that the course now being pursued by the Government is the right one; and if patience, firmness, and activity, in pushing the proposed Institutions into such districts as will receive them, be exercised, we shall succeed in regaining that hold on the Native mind which the unhappy events of the last four or five years have at present almost entirely destroyed. The great difficulty I found in my discussions with the Natives, during my late visit, was their entire want of confidence in the Europeans. They do not believe a single promise we make. Their answer constantly was. " That is just what Governor Browne said, and then he went and fought at Taranaki;"" or " Governor

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