D.—No. 1.

No. 3. Copy of a Letter from the Hon. E. W. Stafford to His Honor the Superintendent, Otago. Sin, — Colonial Secretary's Office, Auckland, 4th January, 18G1. I have to acknowledge the receipt of your Honor's letter,* dated the 20th ultimo, and addressed to His Excellency the Governor, transmitting an Address signed by a majority of the Provincial Council of Otago, requesting His Excellency, for the reasons stated therein, to exercise the power vested in Her Majesty by the Constitution Act, and to remove you from the office of Superintendent of the Province of Otago. It appears from the documents, and from the enclosures which accompanied them, that the Provincial Council of Otago accuses the Superintendent of that Province of having had the use of a portion of the Public Funds for private purposes, while your Honor, in your letter referred to above, imputes to Mr. McGlashan, the Provincial Treasurer, deficiencies as to Public Moneys. The Government, therefore, considers it advisable that, with a view to the final action to be taken by His Excellency, an investigation into the transactions and circumstances in question should take place, and with that object, the Auditor of Public Accounts of New Zealand, Dr. Knight, has received a commission from the Governor to investigate and report on these matters. I have, &c, His Honor the Superintendent of Otago, Dunedin. E. "W. Stafford.

No. 4. Copy of a Letter from the Hon. E. "W. Stafford to the Speaker, Provincial Council, Otago. Sir, — Colonial Secretary's Office, Auckland, 4th January, 1861. I have the honor to acknowledge the receipt of an Address signed by a majority of the members of the Provincial Council of Otago, in which it is stated that from the facts disclosed by the Report of a Select Committee on the Public Accounts, Funds, &c, it appears that His Honor Mr. Macandrew, the Superintendent of Otago, has had the use of a portion of the public funds for private purposes, and was for a considerable time -aware that there was a deficiency in the public funds, without having made the members of the Executive acquainted therewith. The Provincial Council, therefore, requests His Excellency the Governor, in exercise of the powers vested in him to that effect by the Constitution Act, to remove Mr. Macandrew from' his office. The Government has also received from the Superintendent of Otago, communications which impute deficiencies with respect to public moneys, as having existed for some time on the part of Mr. McGlashan, the Provincial Treasurer. Under all the circumstances, it has been determined by the Government to institute an investigation into the matters in question, with a view to tho final action to bo taken thereon by His Excellency the Governor. Accordingly, the Auditor of the Public Accounts of New Zealand, Dr. Knight, has received a Commission from His Excellency to investigate and report on the subject referred to, and he has also been directed io investigate and report on the accounts and transactions generally of the Receiver of Land Revenue for the Province of Otago. Dr. Knight will proceed forthwith to Otago for these purposes. I have, &c, The Speaker of the Provincial Council, Otago. E. "W. Stafford.

No. 5. Copy of a Letter from Mr. Gisboene to Dr. Knigiit. (No. 1.) Sir, — Colonial Secretary's Office, Auckland, 4th January, 1861. Referring to the conversations which you have had with Mr. Stafford on the subject of the documents (in connection with Provincial Accounts) recently received from Otago, noted in the margin, I have the honor, by his direction, to enclose a Commission under the hand of His Excellency the Governor and Seal of the Colony, appointing you to investigate and report on the matters referred to in that Commission and in the documents attached thereto, and to request that you will be good enough to proceed to the South for this purpose with as little delay as possible. The papers attached to the commission being official records, are requested to be returned with your reports. I also enclose copies of the replies of this date sent from this office to the Superintendent of Otago and to the Speaker of tho Provincial Council, Otago, respectively. I have, &c, ~W\ Gisboene, Dr. Knight, Auditor of Public Accounts. . Under Secretary.

The Superintendent of Ot.'igo to His Excellency the Governor, Dec. 20, 1860, with enclosures. Tin- SjM'Mkcr Ot Provincial Council of Otago to His Excellency the Governor, Jan. 1, 1861, with enclosure. The Receiver of Land Revenue, Otago, to Hon. Col. Treasurer, Sept. 18, 1860, with enclosure.

Enclosure in No. 5. By His Excellency Colonel Thomas G-obe Browne, Companion of the Most Honorable Order of the Bath, Governor and Commander-in-Chief in and over Her Majesty's Colony of New Zealand and its Dependencies, and Vice-Admiral of the same, &c, &c, &c. * This letter was lost in the " White Swan." Mr. Macandrow has been requested to furnish a copy of it, but has not replied to this requeet.

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PAPEES EELATIVE TO TIIE