A.—7

6

the power of dissolving Parliament is conferred upon him by the Constitution Act; and that this is, therefore, one of those questions on which, according to Constitutional Law, the Governor should act on the advice of his Ministers. 11. In one part of his Memorandum of the 15th instant, the Governor states that he will reconsider his determination to refuse a Dissolution, if Parliament will grant a Supply for even three months. To this, Ministers reply that they maintain that the people of New Zealand have the same rights as the people of Great Britain—that the House of Eepresentatives here represents the people of this colony, and their rights, in the same manner that the House of Commons represents the people of Great Britain and their rights; and that the New Zealand Ministers, selected from the General Assembly, have the same rights here that British Ministers have in England. 12. His Excellency's Advisers must, therefore, respectfully maintain their right to a Dissolution, unfettered by any condition of Supplies being granted ; and they very respectfully decline to enter into any compromise upon this subject for three months, or for any other period. They contend that they are constitutionally entitled to a Dissolution, and that, too, upon the same terms as it would be given to Ministers at Home. G. Geey. Wellington, November 19th, 1877.

Enclosure 1. Mkmobanda for the Hon. the Colonial Teeasueee. Treasury, 23rd October, 1877. On the 15th instant I had the honor to point out, that, after providing for all orders in favour of the Agent-General to the 13th instant, and for all Interest and Sinking Fund due in London to the 15th January inclusive, the whole of the moneys in London, including the proceeds of the £800,000 Imperial Guaranteed Debentures (taken at their par value) would be exhausted, and there would be a deficit of £6,883 15s. Id. on the last-named date to be provided for. The remittances for Public Works material made by the mail of the 20th will have the effect of enlarging this deficit to the sum of £33,271 13s. 9d.; and believing that the matter is becoming urgent, I again beg to call attention to the state of the account. The Treasury accounts at this date show a nominal overdraft of ... ... £195,933 16 8 This amount has been drawn against the balance of the Guaranteed Debentures in the hands of the Loan Agents, available for hypothecation ... 375,000 0 0 Balance ... ... ... ... ... £179,066 3 4 This balance represents the available funds in England after charging all Interest and Sinking Fund due in London to date, and all orders on the Bank transmitted to the Agent-General. The Interest and Sinking Fund falling due between this date and the 16th January, 1878, is as follows: — 31st October ... ... ... £5,485 7 1 Ist November ... ... ... 3,105 0 0 Ist November ... ... ... 12,500 0 0 Ist December ... ... ... 4,000 0 0 15th December ... ... ... 13,196 0 0 31st December ... ... ... 18,915 0 0 15tb January ... ... ... 155,136 10 0 212,337 17 1 Deficit ... ... ... £33,271 13 9 Funds will have to be provided to meet this deficit, and for any orders on the Bank in favour of the Agent-General which it may be necessary to transmit to England from this date. A further sum of £135,000 is due in London for interest on the Ist February. C. T. Batkin, Secretary to Treasury.

Treasury, 30th October, 1877. Eefebbing to my memorandum of the 23rd instant, relative to the position of the New Zealand Public Account, London, in which I pointed out that the amount remaining to be raised on the guaranteed debentures would be insufficient, by a sum of £33,271 13s. 9d., to provide for the interest falling due in London on the 15th January, and that a further sum of £135,000 will be payable on the Ist February following, I have again to call attention to the matter, and to point out that, if provision for these payments is to be made by remittance from the colony, such remittance must be made by the mail leaving on the 16th November proximo. C. T. Batkin, Secretary to Treasury.

Enclosure 2. Memoeandum for the Hon. the Colonial Teeasubkb. The Public Works Account now shows a nominal overdraft of ... ... ... £226,496 18 2 Against which there is available the amount of the Guaranteed Debentures yet in hand ... ... ... ... ... ... ... ... 375,000 0 0 Giving, as the available AVays and Means of the Public Works Account to-day ... 148,503 110