time has come for effecting a bold reform of the chief part of the direct taxation as now levied, and Bills have beou prepared for this purpose. Iv these proposals, how ever, my advisers have studiously borne in mind that financial changes should, as a matter of expediency, be madegradually, so as neither to shake the public sense of security nor to run the risk of any loss of revenue. Honorable Gentlemen or the Legis lative Council and Gentlemen of the House of Hi- present ativijs, — A measure will be submitted to yj^ providing for tho reform of the LegH^^ tive Council in a manner which my ad visers believe will be found to be in accord with public expectations. It will be in your recollection that, some time since, the Imperial Government in vited this colony to enter in^o an arrauge ment by which the rate of postage to Europe would be reduced to 2id per letter. The Ute Parliament signilied its wish that this arrangement should be nvide, and this has accordingly been done with most satisfactory results. Following on this, you will be asked to assent to a still more important postal change which, it is thought, should be acceptable to all sections of the com munity. Returns will be laid before you contain ing information of the results of all branches of traffic upon the railways. These will present one or two features calling for your special attention. There are now ready for your consideration Bills for consolidating and amending the law relating to elections, and for complet ing the abolition of plural voting ; for classifying and improving the Civil Ser vice ; amending the law affecting gold mining, and the working of our coal fields ; altering and consolidating the law of bankruptcy ; defining the law of libel ; amending the laws relating to companies and to juries; fixing the liability of pro moters and directors of companies ; and consolidation and modifying of the criminal hw ; as well as other Billa dealing with matters of public interest. These Bills will shortly be placed before you. Mr advisers propose to prosecute, with vigor, the construction of public works out of such moneys as are, or may be come, available for the purpose. 