His Honor the Superintendent, Auckland, to the Hon. the Colonial Secretary.

I have the honor to enclose copy of a letter addressed to me on 20th March last by Mr. James Mackay, jun., relative to his being provided with funds to enable him to complete on favourable terms the purchase of two large blocks in the Cape Colville Peninsula. Dr. Pollen being absent, and being personally aware that a very large sum might be saved to the colony and the province on this purchase by dealing with the Natives at the tangi at Ohinemuri, I felt myself justified in advancing to Mr. Mackay the sum of Two thousand pounds for that purpose. I proceeded with Mr. Mackay to Ohinemuri, and was present when he was negotiating with the Natives there assembled, and I feel convinced that a large saving, both in time and money, was effected by his being placed in funds promptly to conduct these negotiations. I trust that you will approve of my action in this matter, and that the amount advanced will be at once repaid.

Permit me further to suggest that provision should be made in future for providing funds by which advantage can be taken promptly of such circumstances as the above, which occasionally arise.