Pahaua.

On this block the accumulations to the 30th September, 1873, amounted to £484 10s. 10½d., and the payments to £350 only; but I found an item on a letter in Dr. Featherston's handwriting, showing that £60 was lent to the late chief Wereta, one of the sellers, in 1862, and I required that it should be regarded as a set-off. After some considerable discussion this was allowed, but great opposition was raised to the payment, in 1872, of £100 to Te Hei, who was not, they stated, authorized to receive it. This chief woman was at Hawke's Bay, and no one appeared to speak for her. With a great deal of difficulty I induced the Natives to agree to the sum of £45 out of the £100, the decision as to the remainder to stand over until they can have Te Hei face to face with them. There is a sum of £39 0s. 10¾d. recently accrued on "koha" that I have yet in hand, and I propose that it should be detained until the matter is satisfactorily settled.