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 almost every question that has arisen. The one great blunder that was made was that he and the Government started before they were ready. You know better than I do how slow the average English working man is, how he requires to be educated up to a reform to a much larger extent than we do in the colonies, and it was ignorance on the part of the masses that led to the defeat of the Government in respect to the preferential tariff. There is a warmth of feeling at Home towards the colonies, but when it comes to a small loaf without the corresponding advantages, as understood by the workers, the way the votes were cast does not in the slightest take me by surprise. It required, in my opinion, another three to five years before the people at Home could properly understand what closer union with the colonies really means, and what an important part trade and commerce play in maintaining the solidarity of the Empire, and in strengthening the unbreakable bond of union.

“I must thank you very much for the information given regarding the meat freezing companies and shipping rings, although I see no reason, so far as shipping combines are concerned, to alter the statements I have made, and to which you take exception. When at Home in 1897 I saw the danger there was of New Zealand produce being hemmed in and around London and the Midland Counties. I ascertained that the Argentine and America were at work. The only way to counteract them was to get in amongst the working and middle classes, and by introducing our meats ensure a larger and more extended market. I am satisfied now that a great mistake was made by the meat producers and meat companies here opposing my ‘mutton shops,’ and I still feel sure, and I am fully convinced, that the colony suffered. The same principle has now been adopted by private firms, who have done exceedingly well. The Argentine also has profited by what ought to have fallen to New Zealand. However, on the whole, things are now much better than they were before. My principal trouble is the consumers in the colony. They are complaining at having to pay Home prices for their meat, caused, so they allege, by the export of our meat to the Mother Country. There is something in this. But for this exporting the local market prices would be much lower, but they fail to realise there must be an export for the surplus products, and this causes a collateral advantage to the producer and to the worker. There is one thing that we must do, and that is to counteract the distance we are from the markets of the world. It is no use for us to give reduced freights on our railways if we find our efforts to lower freights checkmated by shipping companies. There is no doubt whatever, as compared with Australia, even making allowances for the vessels to have to go tramping round from one port to another in New Zealand collecting cargo, that the freights from our colony are much higher. Amongst our other ventures, I do not wish to start the colony with a mercantile fleet, but at the same time it is well for the shipping companies to realise that in these days they must be satisfied with moderate profits.

“I am just now on a visit to Australia, seeking a little rest before the session commences. The only large question is the national annuities. I am going to try my ’prentice hand, where other stronger and better men have failed. I think my scheme will take. It is practical and simple; summed up, it means that those people who assist themselves, exercise thrift, and pay a certain amount into a given fund, will have the amount so paid subsidised by the Government. The scheme will also assist friendly societies, and by this means a number who would otherwise probably come on the old age pension will be encouraged, by the