Funds to be reserved for Native purposes.

71. But I should point out to your Lordship that under the form of government I now propose, the country is to be divided into electoral districts, which will only include those portions of it which are occupied by a large European population; the great mass of the native population, who contribute largely and increasingly to the revenue, which is at present almost entirely raised from duties of customs, would be thus wholly unrepresented. I beg, therefore, most earnestly to recommend that from the revenues of the northern province there should be reserved a further yearly sum of four thousand pounds (£4,000); from the revenues of the Wellington province a sum of two thousand pounds (£2000); and from the revenues of the three southern provinces a sum of one thousand pounds (£1,000), making in the whole an annual page 61 amount of seven thousand pounds (£7,000), which the Governor-in-Chief should he authorized to apply, together with any surplus that may accrue from the civil list, to any of the following purposes:—

The construction and maintenance of hospitals, to which Maories are admitted on equal terms with other subjects of Her Majesty:

The establishment and maintenance of schools, to which Maori children are admitted on the same terms as other scholars:

For the payment of Resident Magistrates, and of Native Magistrates, and for the maintenance of a Native Police:

For making presents to native chiefs in acknowledgment of services rendered by them:

And, generally, to such other purposes as may tend to promote the prosperity and happiness of the native race, and their advancement in Christianity and civilization.

72. I perhaps ought to explain that the resident magistrates I allude to are judicial officers, appointed under a local law, termed the " Resident Magistrates Ordinance," and who are intrusted with considerable and peculiar powers for the adjustment of criminal and civil cases in which Europeans, or Europeans and Maories, or Maories alone, are concerned. The law to which I am adverting was devised and framed with great care to meet the peculiar circumstances of a European race mingling with a population just emerging from barbarism. It is highly esteemed by the natives, who now resort freely to the courts of the Resident Magistrates; and if any cirumstance should occur which closed these courts, I fear that great discontent and renewed disturbances would take place amongst the native population.

73. I have recommended that for the present the Governor-in-Chief should be authorized to apply, at his discretion, the sums reserved for native purposes; but I think that a provision should be made that he should only exercise this power for a limited time, and that after that date such sums should be appropriated under the authority of Ordinances to be passed by the Governor-in-Chief and General Assembly, who I think would freely and cheerfully contribute such amounts as were required for the wants page 62 of the native population; whilst, as I have continued- as I have reported in several despatches-to make considerable endowments for Hospitals and Native Schools, the incomes yielded from which are rapidly increasing, the necessity of providing for the support of such establishments from the general revenue will constantly diminish.

74. In further explanation of the necessity which exists for providing ample funds for native purposes, I beg to refer your Lordship to paragraphs from No. 11 to 3-2 inclusive, of my despatch No. 93, of the 9th July, 1849, which is published at page 190 of the Parliamentary Papers relative to the Affairs of New Zealand, which were presented to Parliament in 1850; and I would farther request, that that portion of the despatch I allude to might, together with this despatch, be laid before any persons required to report on the plan now transmitted for your Lordship's approval. Because I believe that the present peace and prosperity of the colony, and the continued rapid advancement of the natives in civilization, are in a great degree to be attributed to a rigid and consistent adherence to the line of policy laid down in that despatch. It will also be found, that the powers I propose should be reserved to the Governor-in-Chief are such, as, if he has the requisite funds for native purposes placed at his disposal, will still enable him virtually to govern that portion of the native population who live beyond the limits of European settlements; whilst all requisite local Ordinances have been passed by the General Legislature for the purpose of investing him with the requisite legal powers for carrying out the contemplated system. In naming the sum that will be required for native purposes, I have supposed that, as under Lord John Russell's original instructions, the Governor-in-Chief would still, if a necessity for his doing so should arise, be authorised to apply 15 per cent, of the land fund to such purposes; and that the General Government alone would have the power of treating with the natives for the purchase of their lands. I do not consider it necessary to repeat here any arguments in support of what appears an evident truth,—that the question of the page 63 control and management of the large native population living beyond the limits of European settlement, who by being either left immersed in barbarism, or being roused to war, might entail great expense and loss of life and property, both upon Great Britain and every part of these islands—is a general question which possesses at present an interest for the whole Empire, and for the whole colony, rather than for any particular province.

75. Having now fully reported upon the form of constitution which I think should be given to these islands, and upon the nature of the Executive Governments which would best conduce to the effective working of such institutions, I have, in reference to these parts of the subject, only to report, that in order to admit of the immediate introduction of the institutions I have recommended, or of any other form of government which her Majesty's Government may be pleased to adopt, I shall only make any appointments under the Provincial Councils Ordinance, which I may find it necessary to make before I can receive your Lordship's reply to this despatch, subject to the condition that they are mere temporary appointments, the tenure of which is likely almost immediately to terminate.

76. I have farther to report that, in as far as depends upon me, all general laws necessary for the immediate introduction of such institutions have been already enacted by the General Legislature; that the revenues of the country are in a most satisfactory state; and that such economy has been exercised that each Provincial Legislature would enter upon its functions, not only free from debt, but with some surplus revenue at its disposal. The enclosed circular despatch,^* which I have had addressed to the principal officers of the Government at the respective settlements, will show that I have made the necessary financial arrangements to bring the proposed system of representative institutions into immediate operation. The whole of these islands are now in a state of complete tranquillity; every settlement is in a prosperous condition; the native race are loyal, contented, page 64 and daily increasing in wealth, and the Local Government now possesses very considerable influence over them. I also believe the proposed form of institutions could gradually be introduced in such a manner that not the slightest shock or change in the condition of the colony would be experienced. Probably, therefore, no more suitable moment could be chosen for giving a fitting constitution to this country; and I think that if the Queen is advised to avail herself of this opportunity, her Majesty will have the happiness of conferring upon her subjects in this country a boon which will be regarded by them with lasting gratitude.

77. In submitting the foregoing plan for your Lordship's consideration, I should state that I have no doubt, if it should be tried by the test of experience, it will from time to time be found capable of receiving considerable improvements; but I think it presents the advantage of being admirably adapted to the present state of New Zealand, and of at the same time containing those elements which will enable it, without any sudden or startling change being made, to be immediately brought into operation, and then after wards to be adapted to the changing circumstances of a young and rapidly increasing country.

78. Should her Majesty's Government determination introduce the proposed form of institutions into New Zealand, then I beg respectfully to state, that I think the best mode of effecting this would be, after obtaining such farther sanction as might be required from Parliament, to adopt the same course as was pursued in 1846, of conferring the proposed constitution on New Zealand in the form of a Charter, and Royal Instructions, divided into chapters, as the clean vision of subjects into chapters, and the plain and simple language, unembarrassed by technicalities, which could be so conveniently and appropriately used in Royal Instructions drawn on the model of those of 1846, would bring the whole subject entirely within .he comprehension of the numerous individuals upon whom the beneficial working of such a constitution would depend.