G—No. 40.

WELLINGTON AGAINST THE COLONY.

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No. 12. His Honor I. E. Featheeston to the Hon. W. Gisboene. Sib,— Superintendent's Office, Wellington, 14th March, 1871. I have the honor to acknowledge the receipt of your letter of the 13th instant, enclosing a statement of the account between the General Q overnment and the Province to the latest period of the account being made up, from which it would appear that the amount due from the Province is £18,437 16s. 7d. ; but in this statement the claims of the Province against the General Government are omitted. I append a statement showing that these claims amount to £15,300. I must also demur to the charge of £2,662 Bs. 2d. made against the Province on account of the Manawatu rents. A large portion of this amount would have been recovered had it not been for the action of the Hon. the Native Minister in giving away to the Natives the homesteads of the settlers in the Eangitikei-Manawatu Block. As I purpose sending in to-day the resignation of my office of Superintendent, I would suggest that the adjustment of the accounts should be deferred till after the election of my successor, who, I have no doubt, will be prepared at once to state the extent of the assistance which the Province will require between the present time and the next meeting of the General Assembly. I beg, however, to repeat my request (urged in my letter of the 6th instant) that the whole revenue of the Province may be released from the Ist ultimo, and that the General Government should, in accordance with the arrangement entered into with the Deputy Superintendent during my absence, advance an amount sufficient to pay the expenses of the Departments Judicial, Charitable, Land and Survey for the month of January. If this is done, then the revenue of the Province will be quite adequate to meet not only its current expenditure up to the 30th of June, but to repair the heavy damages recently done to public works by rain and floods. I append a copy of my Address to the Provincial Council, with the portion relating to the financial position of the Province marked. I have, &c, I. E. Eeatheeston, The Hon. the Colonial Secretary. uperintendent.

Enclosure in No. 12. Statement of Amounts claimed by the Province of Wellington from the General Government of New Zealand. £ s. d. Totara Eeserve, sold to the General Government ... ... ... ... 1,000 0 0 Payment for additional reserves in Manawatu Block, made by the Hon. the Native Minister, 14,300 acres, at £1 per acre ... ... ... ... ... 14,300 0 0 £15,300 0 0

No. 13. The Hon. W. Gisboene to Mr. W. W. Tayloe. Si B) — Colonial Secretary's Office, Wellington, 15th April, 1871. I have the honor to acknowledge the receipt of Dr. Eeatherston's letter of the 14th ultimo, upon the subject of the financial arrangement between the Government of the Colony and that of the Province of Wellington. The questions of account raised by the letter under reply have had the careful consideration of the Cabinet; and the Government regret that they are unable to deviate from the decision already arrived at, and cannot, therefore, admit His Honor's claim of a set-off. As regards the request that the General Government will allow the Province to retain the sums paid into the Provincial Treasury from the Land Eund, that it will release the accruing revenue of the Province, and will also make advances for the Judicial, Charitable, Land, and Survey Departments of the Province for the month of January, I have to express the regret of the Government that they are unable to depart from the principles laid down in the arrangement now existing between the Colonial and Provincial Governments. I have, &c, His Honor the Deputy Superintendent, Wellington. W. Gisboene.

No. 14. Mr. Woodwabd to His Honor W. Eitzheebeet. g IE Treasury, Wellington, 23rd March, 1872. I am instructed by the Colonial Treasurer to acknowledge your letter of yesterday on the subject of a notice given to the Eeceiver of Land Eevenue to pay to the Public Account the sum of £3,830 17s. 4d. In reply I have to state that Mr. Gisborne is aware that some part of the amount of £25,568 7s. 4d., shown in the Wellington Debts Act as due to the Colony, is in dispute, and that certain counter claims are urged on the part of the Province. He however thinks that these are questions that should be considered by themselves apart from the amount for which repayment is required from the Land Fund of the Province, which repayment must therefore be made according to law, in terms of the notice already given to the Eeceiver. 3