Development of Canterbury.

During the next two years the Provincial Government was chiefly concerned in dealing with the Lyttelton and Christchurch page 38 railway, but when the third Provincial Council met for the first time on 22nd October, 1861, the Superintendent, Mr. W. S. Moorhouse, who had been elected for a second term, announced that nearly £30,000 had accumulated in the Treasury, and as there was reasonable prospect that the revenue would continue at the existing rate, he was prepared to authorise considerable outlay in improvement of the country.

At this time there was some dissatisfaction in the outlying districts, particularly in South Canterbury, regarding the expenditure of the land funds, which was the principal source of income available for public works. There was even a suggestion that, taking advantage of the Act of 1859 of the Imperial Parliament to provide for the establishment of new provinces in New Zealand, a separate province should be formed in the southern district of Canterbury. In order to remove any impulsive tendency to the dismemberment of the Province, the Superintendent asked that the Council establish a general principle that, in the ordinary course, the sums collected from the sale of land

As Seen From the Air.
(Courtesy, The Sun Newspaper, Ltd.)
A recent aeroplane photograph of the new Railway Workshops at Otahuhu, Auckland.

should be devoted to such works and outlays as were directly calculated to facilitate the beneficial use and occupation of the land whence the revenue was derived. He also proposed that the Council should be enlarged from twenty-six to thirty-three members, so as to give further representation to the outlying districts both north and south.

The Provincial Council Extension Ordinance was passed on 29th November, 1861, and submitted for the approval of His Excellency the Governor with the request that if his assent were given the existing Council be dissolved. After voting supplies the Council rose on 22nd January, 1862. On 9th January the Superintendent advised the Council that there was a large amount of money in the Treasury, and he proposed, as a gesture to would-be purchasers of the debentures of the Lytteiton and Christchurch Railway Loan, that the Province should purchase and cancel the first year's debenture issue of £50,000. To this the Council agreed.

(To be continued.)