AVith the exception of putting apart certain land as a railway estate, the borrowing of the Commissioners should be authorised by | Act of Colonial Parliament, as borrowing of r companies in England, only the Acts should be public not private ones. These railway loaus should constitute a new era, and tliero should bo a first security in the nett railway receipts. It might be urged that the railways have already been assigned as security for existing debts, and so this would be a departure from an existing obli gation, but I do not think so, as the fresh liabilities incurred are merely for the pur pose of perfecting and extending the system with the view of enlarging the ultimate results, which results go in the con solidated revenue to surmount the technical difficulty of railways having been included in the consolidated revenue. In Acts relating to loans, provi sion should be inserted that the security given over railway receipts should not prejudice the claim of the consolidated revenue to any part of the receipts required to satisfy the liabilities. On the other hand;:to complete the security, the railway loans must be guaranteed by the Colony. One great advantage of this would be that although the loans would be Government loans, so tar as the security is concerned, they would not bo in that sense which so often injures New Zealand loans. They would not be a direct part of the public debt; to be quoted, as such. Two great advantages would accrue—first the opportunity would be gained of converting the present public debt aud sating immensely on the yearly costs; and secondly the railway loans would be made to suit the circumstances they have to serve—supposing arrangements were made for clearing off the present floating debt, New Zealand should not require to come into the market for years to comet Its railway extension otherwise provided for, its liabilities merged in its public debt, it should start fair and within its income except perhaps occasional borrowing for some great public ■works other than rail ways. By a judicious conversion, the present burden of public debt can be greatly lightened, and, especially if rail« way loans in future be severed from the public debt. 