B.—No. 5

Enclosure to No. 5. MEMORANDUM foe his excellency the govebnob. Auckland, 27th December, 1862. Ministers recommend that His Excellency's assent be given to the accompanying Ordinance passed by the Provincial Council of Canterbury, intituled the "Canterbury Loan Ordinance 1862." As the object of the Ordinance is to enable the Superintendent of Canterbury to raise a large sum of money, Ministers think it right to add the following remarks in explanation of the above recommendation. The money to be raised is to be expended on Immigration and the construction of Railways through the great agricultural districts of the Province of Canterbury. The Provincial Government propose to introduce Immigrants at the rate of 5,000 souls per annum for the next five years. The Provincial Council has on the Estimates for the present year a vote of £40,000 for Immigration. If these Immigrants are introduced, it will be necessary to render the rich agricultural lands of the Province accessible by roads, in order that the Immigrants may be settled on them as they arrive, with a prospect of self-support. The cheapest roads if made in the first instance, are Railroads. The principal tract of agricultural land extends from Bank's Peninsula to Timaru, the Southern boundary of the Province, a tract of nearly 00 miles in length by about 12 in breadth. It is proposed to open up this tract, as well as the other Districts on the North of the Peninsula. The security for the repayment of the loan is ample. The amount of agricultural Crown land in the Province is variously estimated at from one to two million acres. This land sells at present for two pounds (£2) per acre, the fixed price under the Waste Land Regulations, and there can be little doubt that it will fetch more if opened up by Railroads. The encumbrances upon this Estate are veiy slight. The Canterbury proportion towards the original Colonial Debt and Sinking Fund for £500,000 amounts to only £4,000 per annum. No portion of the loan of £300,000 authorized by the " Lyttelton and Christchurch Railway Ordinance" to be raised for that Railway, has ever been raised except a sum of £50,000 of Debentures taken up by the Provincial Government itself and cancelled. Of the £30,000 raised under the " Loan Ordinance" Session 7, No. 3, for Immigration and Public Works, £7,000 has been paid off, £23,000 remaining due. These are the only debts of the Province, and the Revenue is in a very flourishing condition. By the last Canterbury Estimates it appears that a balance of £90,000 was in the Provincial Chest. The total Provincial Revenue for the last two years was, for 1861-2, £145,446; and for nine months ending 30th September, 1862 of 1862-3, £197,050, being at the rate of £262,730 for the year. A special clause in the Ordinance saves from prejudice the security for the Loan above alluded to, guaranteed by the Imperial Government. Alfred Domett.

NEW ZEALAND

No. 57.

No. 6. copy of DESPATCH from his grace the duke of Newcastle, k.g., to governor sir georgb GREY, K.C.B. Downing Street, Sir,— 12th June, 1863. I have received your Despatch No. 19, of the 20th of February, forwarding Copy of an Ordinance of the Provincial Council of Canterbury, authorising the raising of a Loan of £500,000 for local purposes, to which you have given your assent; and I have to acquaint you that the Lords Commissioners of the Treasury have stated, in reply to the reference which was made to them, that they see no objection to this Ordinance. I avail myself of the opportunity to remark that Copies of the Enactments passed by the different Provincial Governments in New Zealand have, with very few exceptions, not been received at this Department, and I should be glad if you would take such steps as may be necessary for procuring their regular transmission, as it is very desirable that the Secretary of State should be fully informed on a matter of so much importance. I have, &c, Newcastle.

£.500,000

No. 7. THE StTPEBINTENDENT, CANTERBUBY, TO THE HONOBABLE THE COLONIAL SECBETABY. Superintendent's Office, Christchurch, Canterbury, N.Z., 16th September, 1863. Sir,— I have the honor to forward two copies of an Ordinance, intituled the " Loan Ordinance

17

PROVINCIAL LOANS.