7

A.-7

The expenditure on Public Works Account for the past six weeks has been at the rate of about £27,000 a week; and at that rate, the balance of £148,000, above referred to, will be exhausted in five or six weeks. As you are aware, the Consolidated Fund is indebted to the Public AVorks Account for an advance of £300,000 ; but I see no probability of the Consolidated Fund being in a position to repay the amount at present. Treasury, Wellington, November 13th, 1877. C. T. Batkin.

No. 6. Memoeandum for His Excellency. Sib Geobge Gbey presents his respectful compliments to the Marquis of Normanby, and begs to call his attention to the following passage in his Memorandum of the 15th instant:—" The only desire " of the Governor is to secure a Government, no matter how constituted, which can command the " confidence of a majority of the representatives of the people of New Zealand." 2. Possibly the Governor has not perceived that the effect of the principle on which he proposes to act would be to destroy all well-defined lines of Party Government in New Zealand. 3. The design of the original trainers of the Constitution Act was to remove, as far as they could, all points of possible difference between the colony and the mother country; and, with that view, the power was left to the people of New Zealand of choosing the precise form under which their Executive Government should be carried on. The people, exercising the power thus granted to them, determined to adopt a Eesponsible and Party Government. 4. The effect of the principle upon which the Governor proposes to act would be, that there would no longer exist in the House of Eepresentatives two Parties, each bent upon carrying out certain great principles. The House might become split into several Parties, each under a leader able to command a small following; and at anytime a combination might take place between so many of those Parties as would secure a bare majority in the House of Eepresentatives. Each of sucn Parties would, in order to secure such a combination, have to sacrifice, more or less completely, some of the principles or views upon which it was formed. There would be a risk of all great principles being lost sight of; and a series of coalitions might be effected, by a wrong abandonment of principles, without, in all probability, anything like unity in support of measures calculated to promote the general interests of the community. The people of New Zealand would be virtually deprived of that Party Government which they deliberately adopted; aud they would practically, for long periods of time, lose the most valuable right of forcing the enactment of great measures they desired to obtain, because the necessity of an appeal to the constituencies in such cases would be in a large degree done away with. 5. In fact, in Sir George Grey's belief, a form of Government would, under such a system, be set up, which has never hitherto existed in any country occupied by an English-speaking race: and, with all possible respect for the Governor, Sir George Grey deems it his duty to submit these views for His Excellency's consideration. Wellington, November 20th, 1877. G. Gbey.

No. 7. Memoeandum for the Hon. Sir Geobge Gbey, X.C.8., &c. The Governor presents his compliments to Sir George Grey, and begs to acknowledge the receipt of his Memorandum dated the 19th instant. This Memorandum from Sir George Grey contains subjects for serious consideration, and the Governor must take time to consider it. He would, however, in the meantime, point out that the 44th section of the Constitution Act enacts, " and the Governor may at his pleasure prorogue or dissolve the General Assembly." The Constitution Act makes no mention whatever of an Executive Council. The power to appoint an Executive Council is given by Her Majesty's Commission, by which Commission, clause 9, it is also directed, " and we do further authorize and empower you to exercise " all powers lawfully belonging to us in respect of the summoning, proroguing, or dissolving any " Legislative Body now or hereafter established within our said colony." By the Eoyal Instructions, the Governor is further directed, in clause 8, " and we do authorize " you in your discretion, and if it shall in any case appear right, to act in the exercise of the power " committed to you by our said Commission, in opposition to the advice which may in any such case be " given to you by the members of our said Executive Council: provided, nevertheless, that in any such " case you do fully report to us by the first convenient opportunity any such proceeding, with the " grounds and reasons thereof." Under these circumstances, the Governor cannot admit that Ministers have an unqualified right to a Dissolution when the Governor may consider it undesirable or unnecessary. Government House, Wellington, 20th November, 1877. Nobmanby.

No. 8. Memoeandum for His Excellency. Ministebs present their respectful compliments to the Marquis of Normanby. They venture to think that the Governor is in error when he contends that power to dissolve the New Zealand Parliament is conferred upon him by the clause which he quotes from his Commission, namely, "And we do further