B.—No. 3.

I imagined that property justly and fairly estimated to be worth at least £85,700 would be considered sufficient security for a Loan of £60,000. Your letter of the 23rd, while proving that such an idea was erroneous, does not give me any information for my guidance in future ; may I therefore beg you to be good enough to inform me what you consider sufficient security for the Loan herein before mentioned, and at the same time what amount you are prepared to grant by way of Loan ou the security of the Block of Land I have previously offered. I have, &c, Thomas Carter, Superintendent. The Hon. the Colonial Secretary, No. 11. THE COLONIAL SECRETARY TO THE SUPERINTENDENT, MARLBOROUGH. Colonial Secretary's Office, Auckland, 6th March, 18G4. Sm,I have to acknowledge the receipt of your Honor's letter, of the 29th ultimo, in answer to the letter from this Department, No 88, of ihe 23rd of that month, on the subject of a proposed Loan ot £60,000 for the Province of Marlborough. In reply I have to inform your Honor that the General Government cannot specify the particular amount of Loan which the Provincial Government of Marlborough will be allowed to raise. Tbat amount mu3t, :n a great degree, depend on the value of the security which the Province is prepared to offer. The Government is only able to say that,in the present instance, it is not satisfied with the security of the land offered, which they learn from undoubted authority is, generally speaking, exceedingly unavailable even, for pasture, and, for the most part, quite unsaleable at present. I have, &c, Wm. Fox. His Honor the Superintendent of Marlborough. No. 12. THE SUPERINTENDENT, MARLBOROUGH, TO THE COLONIAL SECRETARY. Superintendent's Office, Picton, 29th June, 1864. Sir, — With reference to "The Picton and Blenheim Tram or Railway Loan Bill," which I have the honor to transmit for the assent of His Excellency the Governor, the Council of this Province have passed a resolution setting apart as security for the loan the same block of land that I had the honor to submit to your consideration some time back as sufficient for the required purpose. The Council have been led to the adoption of the same block of land as security for the proposed loan (although heretofore refused as inadequate) on the following grounds :— That through the recent development of a Goldfield situated in the district proposed to be so set apart, the nature and value of the security have materially changed, although the acreage may remain, identical, for whilst formerly the principal, and perhaps almost only, revenue could be derived from the sale of the Crown Lands on that block, yet now a very considerable one will be obtained directly from the Goldfields themselves, immediately sufficient to meet all demands for interest and Sinking Fund, without trrspassing on other resources of the Province, in liquidation of the liabilities of the loan, That the population in that district is very rapidly increasing, and will in all probability continue to do so, it being the opinion of eminent geologists that the whole ot the country lying to the north of the Wairau River will be found to be highly auriferous, and that in consequence a large increase to our Customs revenue may be anticipated. I therefore trust that you, taking into consideration the above-mentioned circumstances, as well as the fact that Marlborough at present has incurred no Provincial debt whatever, may now feel justified in recommending His Excellency the Governor to give his assent to this measure. I have, &c, Thomas Carter, Superintendent. The Hon. the Colonial Secretary,

(No. 457.)

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