E.—No. 2.

all losses of cattle, horses, and other animals taken by the belligerent Natives. From the time that the Government undertook to grant £200,000 for the reinstatement of the settlement and its inhabitants, the claimants ceased to have any interest in the cattle ; for it surely never could be held by any one that the Colony was bound in addition to its grant of compensation, to get back for the settlers all the " loot" taken in the war. It then became a question not of recovering plunder, but of inflicting punishment. Whether this view is right or wrong, I consider the matter has really been settled already by a ■ decision while our predecessors were in office. I enclose the copy of a Keport by Mr. Parris, relating to a horse taken as " loot" by a settler from the Natives, and afterwards claimed by Matene Tupoki, in which case it was decided that as the horse belonged to a Native, who joined the rebels in arms against the Government, the horse should be returned to the European claiming under the original capture. This appears to be conclusive, that "looted" horses were treated as spoils of war. The greatest annoyance is constantly experienced by me from cases of ownership of cattle brought in by Southern Natives. The other day a herd of cattle was brought up from the South, exposed in accordance with the Provincial Ordinance, and bought by a settler. After the sale had been effected, and delivery taken, the purchaser refused to pay for one of the beasts, on the ground that it was his own property. It was in vain that I urged him to pay the purchase money, and in the end he had to be summoned in the Resident Magistrate's Court, when it was clearly proved that he had no right to the beast. Judgment being given for the Native, he objected to pay. Mr. Parris advanced the money out of his own pocket; and on my return from Auckland, I instructed Mr. Parris to take out execution unless the money was paid forthwith, upon which threat the money was at last paid. Since I have come here, I have got to know that the Commissioners for distributing the compensation have deducted in round numbers the sum of £3,000, as the value of live stock recovered since the time of Mr. Sewell's award, when £35,732 were granted as the value of stock lost during the war. lam not aware of what precautions are taken to verify the recovery of any cattle ; but I should think it was unlikely that the person to whom I have referred would have taken and caused all the trouble he did, only to go to the Commission era and ask them to reduce Ms claim by the value of the beast. I, therefore, earnestly recommend you to concur in any proposal which shall finally put an end to the plunder question here, and let everybody keep what he has now got, if taken as " loot" during the war. F. D. Bell. Taranaki, Ist May, 1863.

Vide Enclosures 2 and 3.

Enclosure 1. EXTRACTS FROM LETTERS WRITTEN BY MR. PARRIS. "May 4th, 1860. "A number of cattle and horses were brought back by a party of mounted civilians who accompanied the expedition to Warea, but I am afraid the poor settlers will suffer for this, for I fully expect retaliation." "October 3rd, 1860. "I am informed that advantage is taken of the movement of any force, by some of the parties attached thereto, to caj)ture either cattle or horses, which are afterwards sold or slaughtered for private benefit. In many instances they are claimed by the friendly Natives, and in other cases by Europeans, deriving or claiming to derive title to them, either through prior transactions with the rebels or with the friendly natives." "January 11th, 1861. " With reference to Captain Burton's letter respecting the cattle driven in from the South, on which I am directed to report, I have the honor to state that his assumption that the cattle were driven in by my directions is incorrect. Cattle have from time to time been driven in by the friendly Natives at the request of owners, the Natives applying to me as the officer in charge for pel-mission to employ themselves in this manner, because being in receipt of pay and rations their time belonged to the Government; and they are not allowed, without proper sanction, to employ themselves otherwise than they may be directed. "It is difficult for the Natives in every case to distinguish which should be driven in and which should be left; and it would be unjust to prevent those who are desirous to have their cattle driven into town from so doing, lest other cattle which are not required should also be driven in ; doubtless there is a liability that they may be improperly claimed, and I would therefore suggest that all the cattle to which no claim can be properly substantiated, should be branded with the Government brand and then be turned back again, lest they should be slaughtered without the owner's privity. This would be a protection to owners and prevent them unwittingly bein<' driven in." " May 25th 1861. " I have the honor to report for the information of the Colonel Commanding, that the Native Chief Haripa has preferred a charge against the soldiers and militia stationed at the Bell Block, for

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PAPEES RELATIVE TO