B-—27.

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No. 3. Memoeandtjm by Governor Sir G. Geet. The Governor, in pursuance of all powers enabling him in that behalf, directs his Eesponsible Advisers to lay before him, for his signature, the necessary document directing the payment of the expenses of the suit now pending, for testing the validity of the grant for the Princes Street Eeserve, in Dunedin, from the rents of other Native Eeserves in which the claimants of the Princes Street Eeserve, amongst other persons, are interested. 26th October, 1867. G-. Geet.

No. 4. Memobandttm by Mr. Eolleston. To make this Order in Council productive of good to the Natives, some one should watch the case in their interests, and prevent any opportunity being lost of settling this question if fair terms are offered. The amount of £400 might be placed in the Bank, with authority to authorize payment for it to such person as undertook to perform the duty. Probably Mr. Mantell would do this. 10th November, 1867. W. Eolleston.

No. 5. The Hon. Mr. Eichmond to the Hon. Mr. Mantell. Sib,— Native Secretary's Office, "Wellington, 26th November, 1867. His Excellency having, by Order in Council, directed that a sum of £400 should be advanced out of Native Eeserve funds for the purpose of enabling the Naitahu and Ngatimamoe to bring the case of the Princes Street Eeserve before the Supreme Court; that sum has been paid into the Bank of New Zealand, to the Princes Street Eeserve Account. lam led to believe you will continue to watch the case in the interest of the Natives. On learning from you that this is the case, I will give instructions that the account may be drawn upon only by cheque bearing your signature. I enclose a copy of the Order in Council to which I bear reference. I have, &c, . The Hon. W. B. D. Mantell, Wellington. J. C. Eichmond.

No. 6. Mr. A. Mackat to the TTndeb Seceetaet, Native Depaartment. Sib— Native Eeserve Office, Nelson, 20th February, 1869. I have the honor to forward herewith a statement of the receipts and expenditure of the Native Eeserve Fund, Greymouth, from the Ist of June, 1867, to the 31st December, 1868. A portion of this is a repetition of the statement forwarded under cover of my letter of July 14th last. The necessity for repeating this portion was owing to a sum of £113 7s. 6d., paid to Public Account on the Bth of May last, by the Collector at Hokitika, having been omitted from the previous statement by the accounts going astray; it was thought advisable, therefore, to prevent confusion in auditing the accounts, to go back to the Ist of June, 1876, the date on which the new system commenced. Eespecting the sums of £250 and £400, which appear in the present statement, I would beg to point out the disadvantage I am placed at in keeping the accounts, by moneys being appropriated out of the fund without passing through my hands, as it is quite impossible for me to furnish vouchers in support of such expenditure if the like course is to be continued. It was only by the merest chance that I was able to supply any information to Mr. Hill, the Auditor, in reply to his letter of February 4th, calling for an explanation respecting these accounts ; but fearing a question might be raised respecting these amounts, I had taken the precaution to secure such documents concerning them as I could obtain. I would therefore beg respectfully to request that for the future you will be pleased to recommend that all moneys to be expended out of the fund should pass through my hands. With further reference to the sum of £400 appropriated out of the fund to prosecute a suit in the Supreme Court, in re Princes Street Eeserve, Dunedin, I would beg to inquire if any interest has been paid for the use of the money, and if so, the rate of interest and the date upon which it was paid, so that I may carry the amount to the credit of the fund. It was understood, though nothing definite •was settled, that the amount should bear interest at the rate of 8 per cent, while it was in use. There is now over twelve months' interest due, as the amount was appropriated in November, 1867 (vide Bank receipt amongst papers in Native Office), which, at 8 per cent., would amount to £32 per annual. If no interest has been paid on the above-mentioned amount, I would beg to recommend that the Paymaster here might be instructed to pay me whatever is due on it for the past twelve months, as this would admit of my passing it through the accounts in the usual way. Concerning the sum of £3,185 standing to the credit of the fund at the end of the year, 1 have the honor to suggest that this amount should be invested for the benefit of the Natives interested in the estate, as the intention from the first was that all surplus revenues should be so dealt with from time to time. I have, &c, The Under Secretary, Alexander Mackat, Native Department, "Wellington. Commissioner, Native Eeserves.