"I proceed to notice the various topics embraced in the address of the assembly to the King. I shall observe the order which they have followed; and, with a view to perspicuity, I shall preface each successive instruction, which I have his Majesty's commands to convey to your lordship, by the quotation of the statements made upon the same topic by the Assembly themselves.

"First, it is represented that the progress which has been made in the education of the people of the province, under the encouragement afforded by the recent acts of the legislature, has been greatly impeded by the diversion of the revenues of the Jesuits' estates, originally destined for this purpose.

"His Majesty's government do not deny that the Jesuits' estates were, on the dissolution of that order, appropriated to the education of the people; and I readily admit, that the revenue which may result from that property should be regarded as inviolably and exclusively applicable to that object.

"It is to be regretted, undoubtedly, that any part of those funds were ever applied to any other purpose; but although, in former times, your lordship's predecessors may have had to contend with difficulties which caused and ex

cused that mode of appropriation, I do not feel myself now called upon to enter into any consideration of that part of the subject.

"If, however, I may rely on the returns which have been made to this department, the rents of the Jesuits' estates have, during the few last years, been devoted exclusively to the purposes of education, and my despatch, dated 24th December last, marked' separate,' sufficiently indicates that his Majesty's ministers had resolved upon a strict adherence to that principle several months before the present address was adopted.

"The only practical question which remains for consideration is, whether the application of these funds for the purpose of education should be directed by his Majesty or by the provincial legislature. The King cheerfully and without reserve confides that duty to the legislature, in the full persuasion that they will make such a selection amongst the different plans which may be presented to their notice, as may most effectually advance the interests of religion and sound learning amongst his subjects; and I cannot doubt that the assembly will see the justice of continuing to maintain, under the new distributions of these funds, those scholastic establishments to which they are now applied.

"I understand that certain buildings on the Jesuits' estates which were formerly used for collegiate purposes, have since been uniformly employed as a barrack for the King's troops. It would obviously be highly inconvenient to attempt any immediate change in this respect, and I am convinced that the assembly would regret any measure which might diminish the comforts or endanger the health of the King's forces. If, however, the assembly should be disposed to provide adequate barracks so as permanently to secure those important objects, his Majesty will be prepared (upon the completion of such an arrangement in a manner satisfactory to your lordship) to acquiese in the appropriation of the buildings in question to the same purposes as those to which the general funds of the Jesuits' estates are now about to be restored.

"I should fear that ill-founded expectations may have been indulged respecting the value and productiveness of these estates; in this, as in most other cases, concealment appears to have been followed by exaggeration, as its natural consequence. Had the application of the assembly for an account of the proceeds of these estates been granted, much misapprehension would probably have been dispelled. My

regret for the effect of your decision to withhold these accounts, does not, however, render me insensible to the propriety and apparent weight of the motives by which your judgment was guided. Disavowing, however, every wish for concealment, I am to instruct your lordship to lay these accounts before the assembly in the most complete detail, at the commencement of their next session, and to supply the house with any further explanatory statements which they may require respecting them.

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It appearing that the sum of £7,154. 15s. 4 d. has been recovered from the property of the late Mr. Caldwell, in respect to the claims of the crown against him on account of the Jesuits' estates, your lordship will cause that sum to be placed at the disposal of the legislature for general purposes. The sum of £1,200. 3s. 4d., which was also recovered on account of the same property, must also be placed at the disposal of the legislature, but should, with reference to the principles already noticed, be considered as applicable to the purposes of education exclusively."

"Secondly. The house of assembly represent that the progress of education has been impeded by the withholding grants of land promised for schools in the year 1801.

"On reference to the speech delivered in that year by the then governor to the two houses of provincial legislature, I find that such an engagement as the address refers to was actually made; it of course therefore is binding on the crown, and must now be carried into effect, unless there be any circumstances of which I am not apprised, which may have cancelled the obligation contracted in 1801, or which may have rendered the fulfilment of it at the present time impracticable. If any such circumstances really exist, your lordship will report them to me immediately, in order that the fit course to be taken may be further considered.

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Thirdly.-The rejection by the legislative council of various bills in favour of education is noticed as the last of the impediments to the progress of education.

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Upon this subject it is obvious that his Majesty's government have no power of exercising any control, and that they could not interfere with the free exercise of the discretion of the legislative council, without the violation of the most undoubted maxims of the constitution. How far that body may have actually counteracted the wishes of the assembly on this subject I am not very exactly informed, nor