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1869, it is, amongst other things, enacted that it shall not be lawful for the said University to alienate, mortgage, charge, or demise any lands, tenements, or hereditaments of which it shall have become seised or to which it may become entitled by grant, purchase, or otherwise, unless with the approval of the Superintendent and Executive Council of the said province for the time being, except by way of lease, for any term not exceeding twenty-one years from the time when such lease shall be made; and in and by such lease there shall be reserved the best rent that can be reasonably obtained for the lands, tenements, and hereditaments expressed to be thereby demised without fine: And whereas by the operation of " The Abolition of Provinces Act, 1875," all the powers and authorities theretofore vested in Superintendents of provinces became and are now vested in the Governor: And whereas the said University are desirous of borrowing a sum or sums of money not exceeding fifteen thousand pounds, at interest, for the purpose of paying off existing mortgages and charges upon the rents and revenues of the said University, and for other purposes connected with the said University, and it will be necessary that security be given over the property of the University as is hereinafter mentioned: Now, therefore, I, Sir Arthur Hamilton Gordon, Governor of the Oolonv of New Zealand, in pursuance and exercise of every power and authority enabling me in this behalf, do hereby approve of the borrowing by the said University, for the purposes aforesaid, of a sum or sums not exceeding fifteen thousand pounds, to be repaid with interest at a rate not exceeding eight pounds per centum per annum, the repayment thereof to be secured in such manner as the Council of the said University may think fit, by a mortgage or mortgages of the rents or any part of the rents and other revenues derived from lands, tenements, or hereditaments vested in or held in trust for the said University, or by debentures under the seal of the said University charged upon such rents and revenues as aforesaid, or by such other instrument or instruments effecting a charge upon such rents and revenues as to the Council of the said University may seem best. As witness the hand of His Excellency the Governor, this sixteenth day of March, one thousand eight hundred and eighty-two. Thomas Dick.

No. 4. The Chancelloe to the Hon. the Ministee of Education. Sie, — University of Otago, 2nd June, 1882. I am instructed by the Council to bring under your notice the fact that the subsidy of £500 per annum —granted in June, 1877 for five years —towards the payment of the salary of the Director of the School of Mines expires this year. But the Hon. the Secretary for Crown Lands, in his letter announcing the subsidy, said, " The amount of subsidy to be given after that date to be open to be dealt with by the Legislature."* On receipt of this letter the Council of the University proceeded to establish a School of Mines by the election of Professor Ulrich, who was appointed its Director. Desirous of meeting the views of the Minister, who expressed the opinion " that great practical benefit would accrue to the mining interest if the Director could personally inspect the mines and give advice to persons engaged in mining pursuits," they attached as a condition to the appointment of the Director that the Government should be entitled to secure his services for these purposes during any portion of four months of the summer vacation. From its financial position the Council has as yet been unable to make all the appointments necessary to complete the school according to their own ideal; but I have much satisfaction in being able to say that in nearly all the necessary branches the students have had the benefit of most able and thorough teaching, and that even in the one or two branches for the teaching of which no direct provision has been made they have had all needful guidance in their studies. I respectfully request your attention to the fact that the Council of the University organized the School of Mines at the suggestion of the Government and on the faith of this subsidy. In consequence of the state of their finances they have hitherto not been able to complete it in every part in accordance with the scheme they submitted to the Government, nor for some time to come shall be able to do so without the continuance of the subsidy. But, knowing the very deep interest the Legislature takes in the development of the mineral resources of the colony, the Council trust you will bring the question of the continuance of the grant-in-aid before Parliament with a view to securing to the country the benefits of such an institution. I have, &c, D. ___. Stuaet, The Hon. the Minister of Education, Wellington. Chancellor.

No. 5. The Seceetaex for Education to the Chancelloe. Education Department, Wellington, Sie,— 14th June, 1882. I have the honor, by direction of the Minister of Education, to acknowledge the receipt of your letter of the 2nd instant, respecting the continuance of the subsidy to the School of Mines, and in reply to inform you that the sum of £500 will be-placed on the Estimates to provide for the school for another year. I have, &c, E. O. Gibbes, The Chancellor, University of Otago, Dunedin. For the Secretary.

[* Vide Appendix to Journals of House of Representatives, 1878, H.-lE.]

Authority : Geokge Dibsbuey, Government Printer, "Wellington.—lBB2.