A.—No. 1.

Crosbic Ward went to England, he was authorised to settle these matters with them, and he found them as stiif as possible upon the first two points, but ultimately they agreed to a commuted charge of 300 /. a year instead of the claim of fourpence on iAtoreolonial letters." Now, sir, the total amount of these arrears is 26,300 1., half of which, or 13,300 ,'., I propose io charge upon the supplementary expenditure of this year, mid to make provision for the |):ivnicMi. .il' : ;; , , , ,■, . the current year. The surplus account will stand in this w:».y if this proposal is adopted :—■ Taking 76.010 I. as the surplus, we propo: ■ ■■'

Supplementary expenditure. 1861-1862 Ditto " ditto ' 1802-1863 Cost of Custom House. Dunedin - Half of postal arrears

in all 39,272 1., which being deducted from

£ *. d.

1,672 0 0 12,700 0 0 11,1500 0 0 13,300 0 O

76,016 I. leave- stiii .i surplus for distribution of 36,7

Sir, with reference to the supplementary expenditure !Vr.' ■ .; ~■ vial year ended 30th of June, 1563, amounting to 12,716/. as I have already stated, it is ! > n;.- n.> ■ '■'.• ~:,> i.-. ':■ ■>;'[., n\- oi'ihis !<!;, ■.[ : - First, there lias been a payment of 267 I. I s. (id. travelling expenses on account of the Governor's establishment; a clerk bus been supplied to the Chief Jusi ice. and the travelling expenses of the judges exceeded the estimate of 600 1. by 150 I; there are some !Vt Oilice contingenc-iex, and the amount voted for the Marine Board was not sufficient to pay lie expenses of that Board ; then there was an error of addition in the miscellaneous items on the estimates last year to the extent of 1000 /., which is also included in the supplementary expenditure; for print::., ! . . . .... : 1619 /. was required for military allowances in Otago : the iviim'; ;.. - , ■.■ i::.,!, -. m : 228 I. ; 273 I 10*. lOrf. was incurred in the relief of the crew of H.M Js.S. ■' Orpheus" at the time of the. wreck, on the 7th February last; then there is an item, which really amounts to something considerable year after year, for the apprehension of deserters. The Imperial iiuthoj ive.< are ;;.:■ . c using the Colonial authorities of not providing sufficient establishments ; I hey have accused us of not apprehending these deserters, not taking sufficient care to prevent desert i<.n, :>r ~■,.■.■■ , ~,....,:;,., 900 I. was paid last year for the apprehension of deserters. Tho military authorities regard it as a matter of police with us, and we regard it. Wf they should look after themselves ; and it appears in this case, as in many others, when the Colonial Bud Imperial authorities disagree, the Colony has to pay. Then, sir, for the Province of Auckland, tht' elect oral printing expenses were not sufficient by 250 7.; at Tarauaki a bailiff was wanted for the t\;'si'!en{ .M.'-isin;teV court, and there are a variety of other little matters of this kind. At Southland the extension of population had caused considerable increase of expenditure ; the Post Office alone requiring as much as 1,000 I. These, with other items of a similar description, mala' up the whole t-f. 12,716 1.; details of which will be laid on the table of the House in full. Now, .Sir, that ci t^ statement of revenue and expenditure for last year.

1 will now turn to a mailer which Tiast excited some little interest in this country, namely, a statement of the expenditure arising outjn the native insurrection, from the Ist July to "the 13th October, and supplement it up io tlie first oft!'' ■ 7< f STATEMENT 01 ;•: arising out of the native insurrkction, sat _._>.. Ls_ july to 13th OCTOBER, 1563.

£ s. ,L - £ .v. i. Saiidfly," &c. - - - 5471 o 0 First and second instalment for jjj^^ " Pioneer'" or" Waikato" - - 4,000 0 01 . — 9,171 3 0 Removal of settlers from Baglan and Wairoa - - - 548 18 0 Blockhouses ----.._ 2,398 12 G Native Forces, Guides and Interpreters - ... 40;> 1 5 Pay of Forces ....... 49.221 19 11 Pasaages of Volunteers, Cost of Stores, Arms, &c., &c. - - 42,590 13 0 Horses -------- 5,094 14 0 Miscellaneous ....... 2,350 4 ,'{ Soad clearing and Bridge at Maungatawhiri - - - 2,700 0 0 114,891. 6 1 Eeinittances for similar purposes to Sub-Treasurers at New Plymouth, Wellington, Whanganui, and Napier, and Agent in London - - - ... . . 31,300 0 0 £146,194 6 1

There ia a great point in this 13th October, because it happened to be exactly three months from the date when General Cameron crossed the Maungatawhiri, and thus it gives you the best way you can obtain tho expenditure running over a period of three months, and it enables you to calculate tho probable annual expenditure on account of the war more accurately than it can be done in any other way. Sir, from July Ist to the first of this month, including in the account all further expenditure, and including all liabilities, the sum of 200,000 1. will cover the whole (hear, hear), the whole expense for a period of four months. Now, Sir. considering all that has been written upon this question, the extra-

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