6. Policy of Government.

As showing that the policy of the present Government is to encourage local authorities in carrying out undertakings similar to our railway, we quote from the Governor's speech, delivered on the 14nth. inst., the following remarks:—

"Whilst giving attention to the undertakings which it is desirable the Colony should carry out, it is not to be forgotten that the works constructed by local bodies are of essential importance towards promoting and extending the settlement of the lands. A measure will be placed before you dealing with the finance of local bodies, and enlarging their powers of directly managing their own affairs. My ministers view with satisfaction the disposition which is being shown to develop local resources in the Colony, including those of the mines, the forests, and the fisheries. It is of infinite importance to recognise and take advantage of the natural wealth of New Zealand, and to encourage the prosecution of industries of a varied character. My advisers place great faith in operation of a policy which embraces the points of prosecuting local industries, and thus affording abundant occupation to the population, promoting settlement by liberal land laws, constructing railways with a view to opening the country, aiding the progress of settlement, and speedily securing satisfactory economical results, placing local bodies in a position to open roads, and do other useful works, giving to the mining population liberal facilities, and the establishing of friendly relations with the Maoris."