B.—No. 3.

No. 4. THE COLONIAL SECRETARY TO THE SUPERINTENDENT, MARLBOROUGH. Colonial Secretary's Office, Auckland, 7th November, 1863. Sir,— With reference to my predecessor's letter, No. 342, of the 6th ultimo, informing you that theTieton and Wairau Railway Loan Bill was under consideration, I have to inform your honor that, after carefully considering that Bill and the arguments adduced by your Honor in favour of it, the Government do not consider that there are, at all events at the present time, sufficient grounds to justify them in advising His Excellency the Governor to assent to that Bill. The following reasons have compelled the Government to arrive at this conclusion:—1. The debt which would thus be imposed upon Marlborough would be very greatly in excess, in proportion, of that which any other Province his to bear, and the whole Customs Revenue of the Province of Marlborough would not pay one half of the annual charge. 2. There is no sufficient evidence to show that the work could be performed for the estimated cost. 3. The amount of the probable returns is not satisfactorily shown. In consideration of Railway Loan Bills the Government have always considered this point as one of primary importance. 4. The Bill appears in some degree to be premature, as the line has not been yet determined. Two are suggested by Mr. Dobson, one, a new line altogether, the other, a modification of the old one. o. Though the Government are not prepared to say that it may not be shown to be a proper undertaking to justify the loan, they do not think that this sufficiently appears. Your Honor admits the absence of Engineering and other detailed evidence; and the surveys, &c, requisite to show the feasibility of the work, are not yet completed. I have, &c, William Fox. His Honor the Superintendent, Marlborough. No. 5. THE SUPERINTENDENT, MARLBOKOUGH, TO THE COLONIAL SECRETARY. Superintendent's Office, Picton, 28th November, 1863. Sir, — I have the honor to acknowledge the receipt of your communication of date quoted in the margin, by which I was informed that His Excellency's advisers had considered it incompatible with their duty to recommend His Excellency to give his assent to the Picton and Wairau Railway Loan Bill. It, however, gives me great satisfaction to find from the tenor of your despatch that His Excellency's advisers admit the propriety and justice of our claim to their consideration, and that a modification of our request, accompanied by more detailed and satisfaclory evidence, as to the feasibility of the undertaking, and the probable amount of returns, in receipts, and other advantages, would most probably induce them to reconsider the matter. For reasons assigned in mv previous communication on this subject, I believe it to be highly essential to the welfare of this Province that greater facility for communicating with the Port of Pictou should be given. With this view, I, with the unanimous advice of my Executive Council, request that His Excellency's advisers will be kind enough to signify their approbation of a Loan Bill, for £50,000 being submitted to their consideration. This sum, I am of opinion, will enable us to construct a substantial Tramway between this Port and the Wairau Plain, a work absolutely necessary to the further development of our resources. I have, &c, Thomas Carter, Superintendent. The Honorable the Colonial Secretary^ Auckland.

7th November, 1863.

17

PROVINCIAL LOANS.