1842 - Terry, Charles. New Zealand: its Advantages and Prospects as a British Colony - Part V. On the Future Prospects of the Colony - Chapter III

       
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  1842 - Terry, Charles. New Zealand: its Advantages and Prospects as a British Colony - Part V. On the Future Prospects of the Colony - Chapter III
 
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CHAPTER III

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CHAPTER III.

REVENUE AND EXPENDITURE---TAXES IN MAURITIUS AND CANADA---EXTENT OF COAST IN NEW ZEALAND---ESTIMATES FOR 1841-1842---CIVIL ESTABLISHMENT---CUSTOMS---MOUNTED POLICE---INSTANCE OF NATIVE TACT---ABSTRACT OF GOVERNMENT ESTIMATES.

The Revenue, to pay the expenses of Government, in Colonies appropriated to Emigration, such as the Australian, is derived from two sources, and termed Ordinary or Fixed Colonial Revenue, which is the produce from Customs and Excise Duties, and the other denominated Extraordinary or Incidental, which arises from the sales of Crown Lands.

If a Colony cannot raise sufficient from such sources, the colonists will be burdened, with internal taxation, on their property and domestic trade, like the Mauritius and Canada. In the Mauritius, there are taxes, on fixed or immoveable property, on every thing sold in the market or bazaars, on all boats and vehicles, besides many other imposts. In Upper Canada, there are local taxes, rated, at one penny in the pound, on the value of all property which is assessed, and fixed by law; as every acre of uncultivated land is valued at four shillings,---every acre of arable, pasture, or meadow land, at one pound. All stock, houses, mills, stores, shops, carriages, waggons, &c. are valued and assessed, in the same manner.

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TAXES IN UPPER CANADA.

In the formation of the Roads and Highways, in Upper Canada, it is law, that every person, so assessed, is held liable to work on the roads, &c. a certain number of days, in each year, in proportion to the value of his property. Thus, a person whose assessment is twenty-five pounds, must work two days, with an addition of one day, for every additional increase of twenty-five pounds, up to one hundred, and above that sum, an additional day, for every fifty pounds augmentation. All male inhabitants not assessed, are compelled to work, three days in each year, on the highways. But persons may be excused, by paying two shillings and sixpence for each day's assessment or duty; all waggons, carts, and teams of horses, or oxen, are liable to three days work, for the same purposes, but the owner can compound, by paying five shillings for each day's service. These fines are applied to the Road Fund.

If similar expedients are adopted in New Zealand, taxation will fall heavily on a small population, and be a certain preventive to emigration.

By deficiency of the revenue, the Government expenditure of the Colony will be an annual charge on the mother country; and should that charge become considerable, it will then be matter of consideration with the parent state, whether the Colony, from its geographical position, being too important to be in the possession of other powers; or, as a market for British manufacture, and employment of British shipping,---is of such value and conse-

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EXTENT OF COAST IN NEW ZEALAND.

quence, as to justify, and compensate for, such expense. There are no British colonies that are a charge on the Home Government, except Canada, St. Helena, and a few of the smaller West India Islands.

Unlike, as New Zealand is, in the circumstances of its formation into a British colony, to others, so it is, likewise, in the primary expenses that Government must necessarily incur,---disproportionate to the present population, and bearing no analogy to the early expenses of other colonies.

When New South Wales was first colonized,---and in other colonies it has been the same,---the early settlers were congregated at one spot, Sydney; the duties and expenses of the Government were limited, and only increased as other places became occupied, the direction and distance of which, from the chief settlement, were entirely under its controul.

The Colony of New Zealand is almost wholly coast; for the breadth, of both the North and Middle Island, is small in comparison to the length. The coast of the Islands, from their irregular form, and the sinuosities of the shores, cannot be computed at less than 4,000 miles. The whole of this distance abounds with innumerable harbours and bays, adapted for settlements, affording every facility for coasting trade, and, by the rivers and creeks running into them, communicating with the interior. It is in these situations, principally, that there are claims for land, which, as soon as they are decided, the proprietors will be endeavouring either to sell, or to form there establishments of their own. In

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ESTIMATES FOR 1841, 1842.

either case there will be a population scattered along the shores of the three Islands, distant from each other, entitled to the laws of British subjects, and requiring branches of customs and police for the protection of the revenue. Spirits are the greatest source of fixed colonial revenue; and the high duty of four shillings per gallon upon the cheap rum, arrack, and gin, that are imported into New Zealand, renders smuggling a most profitable trade; while the very great facility of the shores, abounding with sheltered havens, and secret creeks, will greatly induce all such contraband operations.

Thus a machinery of Local Government must, at once, be established on an extensive scale; and an analysis of the Estimates of the first year, 1841-1842, of the colony will elucidate the previous observations.

The Estimate of the probable expenditure and revenue of the Government of New Zealand, for one year, commencing 2nd May, 1841, was ordered, by the Legislative Council, to be printed in July, 1841.

The Abstract of the Expenditure is placed under nine branches of service, viz.: ---

£. s. d.

1.

His Excellency the Governor and Judge

2,200 0 0

2.

Civil Establishment

16,609 16 10

3.

Survey Department

6,164 12 6

4.

Department of Public Works

5,354 0 0

5.

Judicial Establishment

3,068 11 3

6.

Police and Gaols

7,957 9 3

7.

Ecclesiastical Establishment

450 0 0

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CIVIL ESTABLISHMENT.

8.

Schools Establishment.............................

..140 0 0

9.

Miscellaneous

8,977 13 6

£50,922 3 4

The Civil Establishment comprises various departments, the expenses of many of which, notwithstanding they are apparently large, for the very first year of a new colony, will be, most probably, very soon, and very much increased. The branch of service of the greatest importance in the Civil Establishment is the Customs, as on its efficiency will depend, in a great measure, the amount of revenue; and to render it effective, numerous local establishments must be immediately formed, and consequent expense incurred, without reference, in the first instance, to any revenue. The expense of the Customs is estimated for

Auckland---Collectors, &c.

£1,470

Russell---Sub-collector, &c.

830

Port Nicholson---Sub-collector, &c.

830

£3,130

It must be very evident that this branch of service will require very great additions, as well as that of the Colonial Treasury. "New Plymouth," and " Nelson" will demand the immediate attention of Government; and, in fact, every spot on the coasts, such as Hokianga, Kaipara, Manakao, and numerous other places, wherever emigrants and settlers may be established in any number.

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CUSTOMS.

The Customs---by the "Estimate (No. 2.) of the probable amount of revenue for the service of the Government of New Zealand for one year"---is regarded as the largest source of ordinary or fixed revenue; and the amount, anticipated during the ensuing year, is £13,000. On reference to the table of duties of Customs, it is very clear, that there cannot be any other great source of revenue, under the Customs, but the duties on spirits and tobacco, ---to evade the high imposts of which, previously mentioned, is great inducement to smuggling. The present establishments, at the three towns named, are inadequate to prevent and detect contraband transactions, except just within the towns. Therefore, if the Government intend to reckon on the Customs, chiefly, for its ordinary, or fixed revenue, the expenses must be anticipated at a far greater amount than that named in the estimates, particularly if every new settlement, in proportion to its numbers, is to have an establishment similar to Russell and Port Nicholson. In New South Wales the Customs Duties, in 1836, produced, on spirits and tobacco, the sum of £144,560, being three-fourths of the whole ordinary or fixed revenue, £193,871. The expense of the Customs for the same year was only £8,258; and the total population of New South Wales in 1830 was 77,096 of Europeans.

Sydney being the only place, comparatively speaking, to which spirits are imported or landed in New South Wales, the expense of the Customs is very

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CUSTOMS.

small, in comparison to the revenue and population; but, as previously observed, the peculiar features and coasts of New Zealand render all revenue laws easy of evasion and infringement, as well as all duties of customs, proportionately expensive and difficult in collection.

An instance of this occurred in 1841.---A schooner, the Look-in, left Sydney in August, clearing out for New Zealand. She was anticipated in Auckland for some time, and at length being out of date, was supposed to have been lost in the heavy gales at the end of August. However, in the "Wellington Spectator" of Port Nicholson, of the 4th September, 1841, the following paragraph appeared:---

"We have heard that the Look-in is at Kapiti (Cook's Straits) disposing of her cargo. She ought, if possible, at once to be seized, as prompt action at this early period would give a check to this illicit trade. Should she come in here, and her cargo not agree with her manifest, the collector of the Customs would be justified in seizing the smuggler. The merchants of this place can never compete with Sydney, if, on the one hand, they are to pay heavy duties, and on the other are deprived of their trade through means of this kind. The collector of the Sydney customs should know, that there is no such port of entry as New Zealand. To grant clearances of this kind is to mislead those interested in these vessels, or to aid and abet in the robbery of Her Majesty's Exchequer."

Under the head of Civil Establishment is an item,

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MOUNTED POLICE.

for "Commissioners for examining into titles to land £2450." This is a branch of service, although requiring addition of numbers, to insure immediate settlement of all claims, will not incur any increase of expense, as the fees payable on the registration and hearing of each claim, are sufficient to counterbalance the salaries of the Commissioners.

The third branch of service, Survey Department, being a charge on the proceeds from the sale of Crown Lands, should be charged under the head of Land Fund.

The Police and Gaols might well be included in the Judicial Establishment, which is the practice, in all Colonies that are not penal. Under this head, there must be also great increase, for the due administration of justice, and protection of persons and property, of the new additional settlements that will, from time to time, arise. Courts of Session and Requests are already established at Auckland, Russell and Port Nicholson. There are, likewise, Police Magistrates with constabulary force, at six places, viz., Auckland, Russell, Port Nicholson, Hokianga, Akaroa and Cook's Straits, at an annual expense of £5,698. 5s. exclusive of the additional sum of £1,347. 1s. 2d. for Mounted Police, consisting in number of one lieutenant, two non-commissioned officers and eight troopers. This force is quite unnecessary, where there are not any convicts, and in case of the escape of any prisoner or delinquent, its service, as a mounted force, would be of no avail in pursuit in the bush.

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INSTANCE OF NATIVE TACT.

In all such instances, the Natives are by far better pursuers than any European, both from their intuitive tact in discovering the least track, and their knowledge of every spot, likely to afford retreat and shelter in the bush. If the native chiefs were properly instructed on this subject, and adequately rewarded, they would fulfil the duties of a rural police force, most effectively; and the knowledge that they were so empowered, to detect and apprehend, would prevent the interior from being the retreat of runaway sailors and other offenders.

Of the intelligence and ability of the natives, in this respect, the following fact is a striking proof. In January 1841, a sawyer, in the employ of a settler between the Waitemata and Kaipara, had come to Auckland in a boat with his master; and was there arrested, on charge of being a runaway convict, and one of a gang who had shot one of the mounted police in New South Wales. The man was committed to the Government store, there being, at that time, no other place of confinement for prisoners, and while there, in custody of a constable, he was an object of curiosity to the natives who might happen to come to the town.

In a short time, the sawyer contrived to get out of the store in the night, and, stealing the boat of his master, made his escape. Diligent search was fruitlessly made for him. In about a fortnight afterwards, he was brought into Auckland, by the natives, headed by a young chief of Hokao, adjacent to Orakei, named Tautori, and the facts, which

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INSTANCE OF NATIVE TACT.

led to his apprehension, evince the acute intelligence of the natives.

It appears, that Tautori had been to Kaipara, on a visit to some of his relatives, previous to which, he had frequently seen the prisoner in the Government store. The man, on his escape, had returned to the station of his master, to collect his property, and then had started across the country, towards the river that runs into Kaipara, in order to reach the western coast. He had proceeded as far as the native village or Pa, in which Tautori was visiting, and endeavoured to persuade the natives to convey him, in their canoes, down to Kaipara.

Tautori immediately recognized him, and suspected, from his urgency to obtain the services of the natives, and the money he offered to them, that he had been robbing the Government store, at Auckland. He questioned him, and as he related a very improbable tale, Tautori told him, that he should take him back to Auckland, to ascertain the truth of his statement. The man was immediately put under the guard of two armed natives, and the following morning, Tautori started, with an escort of ten natives, armed with double barrelled guns, the prisoner in the centre, to prevent any rescue from white people. When they rested at night, in the open bush, he was fastened to a native by each arm, with flax, and after five days circuitous, long and rapid march, round by Manakao, to avoid his companions, he was brought into Auckland, almost exhausted with fatigue. The man

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INSTANCE OF NATIVE TACT.

himself, declared, that to escape from them was impossible, and the rapidity with which they obliged him to travel, with scarcely any food, in the height of summer, was most harassing. Their tact, in bringing him across the country, was equally evinced on their approach to Auckland. Tautori and his little band, armed to the teeth, had been seen ono morning, on one of the native paths between the Waitemata and Manakao, going towards Orakei, at a rapid pace; but, in the afternoon of the same day, the prisoner was accompanied into Auckland, by Tautori in his European dress, and a few natives, all unarmed, merely as his companions. They were quite aware he was secure, when they reached Auckland, and they had disarmed themselves, at Hokao, to prevent any excitement, which their formidable appearance might occasion, on approach to the residences of the Europeans. The reward that Tautori and his companions received was very small, and disproportionate to the service rendered. A pair of trowsers for Tautori, a waistcoat for another chief, and a few common check shirts among the rest, was the whole compensation,---and, naturally, they were not satisfied. It was urged, that it was sufficient for natives: but this is as unjust as it is impolitic. The question is, simply, what service did they actually perform? And if, at some future time, a similar occurrence takes place, and the natives let the delinquent escape, by not interfering, how false and short-sighted the economy! In this instance,

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MISCELLANEOUS.

ten natives had left their home and occupation, had travelled through the bush, five days, nearly fifty miles, and had to return. They were entitled to liberal reward, and it would have been good policy to have so rewarded them, that the liberality of Government, for such acts of the natives, should have been spread, far and wide, among them. The reward to any person, securing a runaway convict, and lodging him in custody, is, by the Government of New South Wales, fifty pounds; which, no doubt, was paid at Sydney for the apprehension of the man, who was sent there. The cost of the remuneration to the natives, was not above two pounds.

The last service, "Miscellaneous" contains many items, that could very properly be placed under the particular service, for which they are really expended; as, "Land front the Natives," £4000. and "Roads and Bridges," £2000. which, like the Survey Department, are a charge on the "Land Fund." The sum of £1000. for Churches, &c. should be charged under "Public Buildings." These sums would diminish an item, always objectionable, by its vague term of "Miscellaneous" to the sum of £1977. 13s 6d instead of £8977 13s 6d.

This Abstract of "the Estimated Expenditure of New Zealand," might, it is conceived, be simplified and rendered more intelligible by being placed under the heads of service, to which they actually belong, and more especially when there are different branches of revenue in which certain expenses are chargeable.

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GOVERNMENT ESTIMATES.

Instead of the Official Abstract (see Appendix H), as follows :-

Chargeable on Fixed or Ordinary Revenue.

1. His Excellency the Governor and Judge

£. s. d.
2,200 0 0

2. Civil Establishment, viz.

Establishment of his Excellency

£. s. d.
1187 7 0

Executive and Legislative Councils

545 0 0

Colonial Secretary Department

1885 0 0

Colonial Treasury, Ditto -

1125 0 0

Customs, Ditto

3130 0 0

Land Commissioners Ditto -

2450 0 0

Post Office, Ditto -

525 0 0

Colonial Store, Do.

450 15 0

Harbour Master, Do.

1076 0 0

Colonial Brig, Victoria, Ditto

1535 9 4

Colonial Surgeon, Do

364 12 6

14,274 4 4

3. Judicial Establishment, viz.
Law Officers of the Crown

525 0 0

Supreme Court

620 0 0

Courts of Session and Requests

1486 0 0

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GOVERNMENT ESTIMATES.

£. s. d.

£. s. d.

Coroners

135 0 0

Sheriff

302 11 3

Police

5698 5 0

Mounted Police

1347 1 9

Gaols

912 2 6

11,026 0 6

4.

Public Works

6,354 0 0

5.

Ecclesiastical Establishment

450 0 0

6.

School Ditto

140 0 0

7.

Miscellaneous

-

1,977 13 6

36,421 18 4

Chargeable on Extraordinary Revenue.

8.

Land Department, viz.
Survey Department

6,164 12 6

Protector of Aborigines

2,335 12 6

Land from Natives

4,000 0 0

Roads and Bridges

2,000 0 0

14,500 5 0

Total

50,922 3 4

The second table in the Government estimates is the "Probable amount of Revenue for the service of the Government for one year."

Ordinary.

Customs

13,000 0 0

Post Office

500 0 0

Licences

2,400 0 0

Auction Duties

1,000 0 O

Fees and Fines of Public Offices

2,500 0 0

19,400 0 0

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GOVERNMENT ESTIMATES.

Extraordinary.

£. s. d.

Probable amount of proceeds of
sales of Crown Lands, after
payment of charges for Immigration,
Survey and Land Purchase

18,917 13 9

38,317 IS 9

The third table is the "Statement shewing the appropriation of the Revenue arising from the sale of Crown Lands."

Probable proceeds from the sale of Crown Lands 50,000 0 0

Expenditure.

For Survey Department .............................................................6164 12 6

For purchase of Lands from Natives......................................... 4000 0 0

Works indispensable to give an
exchangeable value to the land,
viz. Roads and Bridges. ............................................................2000 0 0

12,164

12

6

Surplus of Land Fund

37,835

7

6

Fifty per cent, for charges of Immigration

18,917

13

9

Amount available for the general purpose of the Colony

18,917

13

9

These tables should have been transposed, for the second is the amount of the total revenue, and

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GOVERNMENT ESTIMATES.

takes some of its figures from the third table. In the latter will be observed the survey expenses charged under "Civil establishment," and the two largest items previously charged under the head of "Miscellaneous," in the estimates of expenditure.

Without discussing the grounds for such suppositious amount of the Ordinary revenue, or the probability of the proceeds of the sales of Crown lands, realizing in the ensuing year the sum of £50,000., the following extract from a letter from Mr. Vernon Smith to Mr. Somes, dated 2nd December, 1840, will show that both the foregoing estimates are erroneous, from the calculation of the sum to be available from the sale of Crown lands, for the general purposes of the Colony.

"It is purposed that at least 50 per cent, of the proceeds of such sales shall be applied towards the introduction of emigrants, the remaining 50 per cent, being regarded as chargeable with the expense of surveys, the protection of Aborigines, and with those indispensable expenses of the Local Government, for which it may be impossible otherwise to provide."

By this instruction, the accounts should be thus: "Statement shewing the appropriation of the Revenue arising from the sale of Crown Lands."

£. s. d.

Sale of Crown Lands

50,000 0 0

Fifty per cent, for Emigration

25,000 0 0

25,000 0 0

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GOVERNMENT ESTIMATES.

Expenditure.

£. s. d.

£. s. d.

Survey Department

6164 12 6

Protection Aborigines

2335 12 6

Land from Natives

4000 0 0

Roads and Bridges

2000 0 0

14,500 5 0

Amount available for the Colony

10,499 15 0


Probable amount of Revenue for one year.

Ordinary.---Customs, &c.

19,400 0 0

Extraordinary.--- Balance from proceeds from land sales -

10,499 15 0

Net Revenue of the Colony

29,899 15 0

The Official Estimates close with

Abstract Statement of the Revenue and Expenditure.

REVENUE.

Ordinary (No. 2)

19,400 0 0

Extraordinary

18,917 13 9

Excess of expenditure over revenue

439 17 1

38,757 10 10


EXPENDITURE.

Aggregate amount (No. 1)

50,922 3 4

Deduct (No. 2)

12,164 12 6

38,757 10 10

But the true and correct statement will be as follows:---

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GOVERNMENT ESTIMATES.

REVENUE.

£ s. d.

Ordinary

19,400 0 0

Extraordinary

10,499 15 0

29,899 15 0

Deficiency of Revenue

6,522 3 4

36,421 18 4

EXPENDITURE.

Total amount

50,922 3 4

Deduct, Land Department

14,500 5 0

36,421 18 4

By these estimates, it is evident that the expense of the Colony, for the first year, exclusive of the charges to be defrayed by the sales of Crown lands, is above thirty-six thousand pounds; and it may be reasonably anticipated, from the preceding observations, that it must very soon be increased, and if the Colony becomes more populated, such annual expenditure cannot be diminished.

On reflecting on the future expenses of the Colony, it must be remembered, that the present establishment of Customs, Justice, and Police, are for a few places only on the North Island. The Middle Island, which is larger than the Northern, already has settlers scattered along the coast, and in a short time they will require similar branches of the Government.

The Fixed, or Ordinary revenue anticipated this this year by the estimates, is £19,400.; but this must be considered over-rated, for a population of

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GOVERNMENT ESTIMATES.

Europeans, not exceeding in the whole Colony ten thousand.

Until within these few years, the proceeds of Crown lands in New South Wales were wholly appropriated to meet the current expenditure of the Colony, under the head of "Extraordinary or Incidental Revenue." If the Government determine, in consequence of the expense of the Colony, to return to such principles in New Zealand, sales of Crown lands will rapidly diminish, if not altogether cease, for unless there is a supply of labour pari passu with the sale of lands, emigrants will never direct their course to a colony in which, as every spot must be cultivated, abundance of labour is indispensable.

The charges on the Land Fund, for the current year 1841 to 1842, are nearly fifteen thousand pounds. The probable amount of sales of land, during the same period, is reckoned at £50,000. The sum of £29,302. 7s. 9d. has, already, been realized by the sales of April and September, 1841. The sales of Crown lands, however, for the future, to any extent, are very doubtful, on account of the immense quantity of land that will come into possession of Europeans by land claims, and, likewise, from the plans, regarding emigration to the Colony of the New Zealand Company. These circumstances will tend very much to diminish the power and resources of the Home Government, for emigration, as well as render it questionable, if the plan previously quoted of Mr. Vernon Smith, be pursued, whether there will, ever, be any balance to be appro-

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GOVERNMENT ESTIMATES.

priated, as "Extraordinary or Incidental Revenue" from Crown lands.

For instance: presuming, no further land sales take place during the current year, the account of the Land Fund would stand thus: according to Mr. Vernon Smith's instructions.

£. s. d.

Proceeds of sale of Crown lands.

29,302 7 9

Deduct fifty per cent, for emigration

14,651 3 1O 1/2

14,651 3 10 1/2


Charges on Land Fund.

Survey Department

6,164 12 6

Protection of Aborigines

2,335 12 6

Purchase of land from Natives

4,000 0 0

Roads and Bridges

2,000 0 0

14,500 5 0

Extraordinary or IncidentalRevenue.

150 18 10 1/2


This would leave the "Abstract of Revenue and Expenditure," in the estimates: thus,

Expenditure, (deducting charges on Land Fund)

36,421 17 4

Revenue, Fixed or Ordinary ......19,400 0 0

Extraordinary or Incidental ............150 I8 lO 1/2

19,550 18 10 1/2

Excess of Expenditure

16,870 18 5 1/2

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GOVERNMENT ESTIMATES.

With the instructions to Captain Hobson, on his appointment as Governor, on the separation of New Zealand from New South Wales, Lord John Russell forwarded a schedule for the civil establishment, &c. of New Zealand, as follows:

"Estimate of the charge of defraying the expense of the Colony of New Zealand for the first year, which will elapse after the receipt there of the Commission of Captain Hobson, the Governor of the New Zealand Islands."

NINETEEN THOUSAND THREE HUNDRED POUNDS.

SALARIES.

£. s. d

£. s. d.

Governor

1,200 0 0

Colonial Secretary

600 0 0

Chief Justice

1,000 0 0

Attorney General

400 0 0

Surveyor General

600 0 0

Colonial Treasurer

600 0 0

Collector of Customs

500 0 0

Protector of Aborigines

400 0 0

5,300 0 0

Expenses of the above Establishments

6,000 0 0

Public Buildings and Rents

5,000 0 0

Contingencies

3,000 0 0

19,300 0 0

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GOVERNMENT ESTIMATES.

Colonial Department, 1840.

"Estimate of the ways and means by which it is proposed to provide for the expense of the Colony of New Zealand for the first year, which will elapse after the receipt there of the Commission appointing Captain Hobson, the Governor of the New Zealand Islands."

TWENTY THOUSAND POUNDS.

£. s. d,

Duties to be levied in the Colony

10,000 0 0

Fund raised within the Colony

5,000 0 0

Proposed Vote from Parliament in aid of
other heads of Revenue, if required

5,000 0 0

20,000 0 0


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