Besides the very important question between the mother country and the colony of the future government of the natives, there is the question of payment for what has been and is being done in the colony in consequence of the outbreak of war.

What the colony has to set down as the cost of the war to itself may be stated in round numbers as follows:—

Destruction of property at Taranaki, to be made good by the whole colony, say	£200,000
Cost of militia and volunteers called out for active service	150,000
Cost of arms, stores, transport and works of defence	100,000
Contribution to pay and expenses of H.M.'s troops	150,000
Boads for military purposes	50,000
	£650,000

The total amount is that which the colony calls its war liability up to the middle of last year. If the settlers were altogether responsible for the war, the above account shows that they have already been severely punished. If they are, or, the other hand, not at all responsible, their offer to take on themselves this liability is generous in the extreme. Perhaps it would have shewn more worldly wisdom to promise much and pay nothing than to pay and remonstrate as they have done. The former course could not have brought upon them greater discredit than the latter has by some perversion been made to bring.

The only condition which the colony attaches to its promise to pay what the Imperial Government demands, a sum of about £200,000 out of the amount above stated, is that it shall not be obliged to go into the money market to raise a loan in its own name. It is willing to offer its revenues as security, and to charge them with the payment of interest and principal. The Imperial Government may make use of this offer instead of adding to the burden of the British tax-payer. But if it does, it must relieve the colony of that difference of interest which exists between an Imperial and a Colonial debt.

In other words the colony requests that the Imperial Government will guarantee the requisite loan, and so save to the colony one-third of the amount of interest each year. It is but a little matter to ask assistance which can be so easily rendered when page 72 the colony is endeavouring on its own side to do all that it can do without considering whether it might not avoid the claim. As the settlers of New Zealand call the war an Imperial one, they, not forgetting that they are a part of the Empire, have shown their willingness to bear at least their share of the cost and loss; and in the same way they ask for their share of the benefit of common citizenship.