No. 7.
Copy of letter from Alexander McDonald, Esq., to His Honor the Superintendent of Nelson.

Sir,—

I have to acknowledge the receipt of your letter of 17th instant, enclosing copy of a correspondence relative to a balance at the credit of the Nelson Native Trust.

Having, previously to the receipt of the above letter, received notice of your application to the Nelson branch, I had written to Mr. Sweet to the following effect, viz.:—

"I have to acknowledge the receipt of a copy of your correspondence with Major Richmond, page 273relative to the Nelson Native Trust funds, and as these can only be drawn by the Trustees, or by the persons duly appointed by the Government under "The Trust Ordinance," we could not part with the funds without being satisfied on that point. I have written to the Bishop on the subject, and have since mentioned the circumstance to His Excellency Governor Grey, and I am led to understand that the matter will be shortly satisfactorily arranged; please mention these facts to Major Richmond."

While upon this subject, I may as well call your attention to the present position of the Trust, as I conceive that you are in error in supposing that there is any portion of the funds in hand available for the benefit of the Natives.

In the first place, there is the sum of £400, which was borrowed from the New Zealand Company for building the Native hostelries (bearing interest); also a sum owing to the representatives of the late H. A. Thompson, for selecting 100 town acres and 100 suburban sections, and managing the Trust until June, 1843, after that date the Trust was put under my charge by the Bishop (and although I was offered all moneys collected from the Trust to the amount of £100 per annum, and a percentage on all beyond that amount, I declined to receive any remuneration until all liabilities were paid off). I prevailed upon the New Zealand Company to reduce the interest on their amount from 10 to 5 per cent., and paid them one year's interest, and I should have continued to have applied all moneys collected (in the first place) towards the liquidation of this liability, but, in January, 1845, the Bishop informed me that he had resigned the Trust, when I handed over to him all papers and documents connected with the Estate, and which were placed by him in your hands. Since that Period, I am informed that these liabilities are still unsettled, and that not one shilling has been collected from the Estate, although a considerable amount might now be obtained upon application to the parties, some of whom are still in a position to pay.