Not the least of poor Mr. Shortland's troubles were financial. He inherited debts from his predecessor. Indeed, the New Zealand Treasury may be said to have been cradled in deficits. In 1841 Hobson's expenditure had been £81,000 against a revenue of £37,000, most of which was the product of land sales. In 1842 the revenue was £50,000, of which only £11,000 came from land sales; and in 1843 this source of income fell to £1,600. The southern settlers complained, truly enough, that whilst they found much of the money, nearly all of it was spent in Auckland. In 1844—if I may anticipate—Mr. Shortland's successor had the melancholy duty of warning the Colonial Office that to meet an inevitable outlay of £35,000 he could at the best hope for a revenue of £20,000. Mr. Shortland himself, in 1843, tried to replenish the treasury chest by borrowing £15,000 in Sydney. But New Zealand, which has lately borrowed many times that sum at about three per cent. interest, could not then raise the money at fifteen per cent. Mr. Shortland next drew bills on the English treasury, which were dishonoured, though the mother country afterwards relented so far as to lend the sum, adding it to the public debt of the Colony. Finally, the Governor, who on arrival superseded Mr. Shortland, made a beginning by publicly insulting that gentleman. With proper spirit the Secretary at once resigned, and was sent by Downing Street to govern a small island in the West Indies.

If neither Captain Hobson nor Mr. Shortland found official life in New Zealand otherwise than thorny, their career was smooth and prosperous compared to that of the Governor who now appears on the scene. Admiral—then Captain—Robert Fitzroy will have a kind of immortality as the commander of the Beagle—Darwin's Beagle. His scientific work as a hydrographer at the Admiralty is still spoken of in high terms. He was unquestionably a well-meaning sailor. But his short career in New Zealand is an awful example of the evils which the Colonial Office can inflict on a distant part of the Empire by a bad appointment. It is true that, like his predecessors, Fitzroy was not fairly supported by the authorities at Home. They supplied him with neither men nor money, and on them therefore the chief responsibility of the Colony's troubles rest. But a study of his two years of rule fails to reveal any pitfall in his pathway into which he did not straightway stumble.

Captain Fitzroy was one of those fretful and excitable beings whose manner sets plain men against them, and who, when they are not in error, seem so. Often wrong, occasionally right, he possessed in perfection the unhappy art of doing the right thing in the wrong way. Restless and irascible, passing from self-confidence to gloom, he would find relief for nerve tension in a peevishness which was the last quality one in his difficult position should have shown. An autocratic official amid little rough, dissatisfied communities of hard-headed pioneers was a king with no divinity to hedge him round. Without pomp, almost without privacy, everything he said or did became the property of local gossips. A ruler so placed must have natural dignity, and requires self-command above all things. That was just the quality Captain Fitzroy had not. It was said that the blood of a Stuart king ran in his veins; and, indeed, there seemed to be about the tall, thin, melancholy man something of the bad luck, as well as the hopeless wrong-headedness, of that unteachable House.

For he landed at Auckland in November, 1843, to find an ample legacy of trouble awaiting him. The loyal and patriotic address with which the Aucklanders welcomed him was such as few viceroys have been condemned to receive at the outset of their term of office. It did not mince matters. It described the community as bankrupt, and ascribed its fate to the mistakes and errors of the Government. At New Plymouth a similar address declared that the settlers were menaced with irretrievable ruin. Kororáreka echoed the wail. Nor was the welcome of Wellington one whit more cheerful—a past of bungling, a present of stagnation, a future of danger: such was the picture it drew. It was not much exaggerated. On the coasts of New Zealand some twelve thousand colonists were divided into eight settlements, varying in population from 4,000 at Wellington to 200 at Akaroa. Not one of them was defensible in military eyes. There were no troops, no militia, no money. Neither at Wellington nor Nelson had more than one thousand acres of land been cleared and cultivated. Labourers were riotously clamouring for work or rations. Within fifty miles of Wellington was Rauparaha, who, had he appealed to his race, could probably have mustered a force strong enough to loot and burn the town. Some wondered why he did not; perhaps Hadfield's influence amongst his tribe supplied the answer.

Governor Fitzroy began at his first levee at Wellington by scolding the settlers, inveighing against the local newspaper, and grossly insulting Gibbon Wakefield's son when he was presented to him. At Nelson he rated the magistrates after such a fashion that they threw up their commissions. He then went to Rauparaha's pa at Waikanae near Kapiti. A dozen whites were with the Governor; five hundred Maoris surrounded the chief. After lecturing the latter for the slaughter of the captives at Wairau, Fitzroy informed him that, as the slain men had been the aggressors, he was to be freely forgiven. Only one utterly ignorant of the Maori character could have fancied that this exaggerated clemency would be put down to anything but weakness. Even some missionaries thought that compensation should have been demanded for the death of the prisoners. As for the settlers, their disgust was deep. Putting together the haste, violence, and want of dignity of his proceedings, they declared the new Governor could not be master of his own actions. That Gibbon Wakefield's brother should have been savagely butchered and not avenged was bad enough; that his fellow-settlers should be rated for their share in the disaster seemed a thing not to be endured. The Maoris grew insolent, the settlers sullen, and for years afterward a kind of petty warfare lingered on in the Wellington district.

Governor Fitzroy was no more successful in Taranaki. There the Company, after claiming the entire territory, had had their claim cut down by the Commissioners' award to 60,000 acres. But even this was now disputed, on the ground that it had been bought from a tribe—the Waikato—who had indeed conquered it, and carried away its owners as slaves, but had never taken possession of the soil by occupation. When Colonel Wakefield bought it, the land was virtually empty, and the few score of natives living at the Sugar-Loaves sold their interest to him readily enough. But when the enslaved Ngatiawa and Taranaki tribesmen were soon afterwards released through the influence of Christianity, they returned to the desolated land, and disputed the claim of the Company. Moreover, there were the Ngatiawas, who, led by Wiremu Kingi, had migrated to Cook's Straits in the days of devastation. They claimed not only their new possessions—much of which they sold to the Company—but their old tribal lands at Waitara, from which they had fled, but to which some of them now straggled back. On this nice point Captain Fitzroy had to adjudicate. He decided that the returned slaves and Ngatiawa fugitives were the true owners of the land. Instead of paying them fairly for the 60,000 acres—which they did not require—he handed the bulk of it back to them, penning the unhappy white settlers up in a miserable strip of 3,200 acres. The result was the temporary ruin of the Taranaki settlement, and the sowing of the seeds of an intense feeling of resentment and injustice which bore evil fruit in later days.

Nor did Captain Fitzroy do any better with finance than in his land transactions. His very insufficient revenue was largely derived from Customs duties. Trade at the Bay of Islands had, by this time, greatly fallen away. Whalers and timber vessels no longer resorted there as in the good old Alsatian days. Both natives and settlers grumbled at the change, which they chose to attribute to the Government Customs duties. To conciliate them, the Governor abolished Customs duties at Kororáreka. Naturally a cry at once went up from other parts of the Colony for a similar concession. The unhappy Governor, endeavouring to please them all, like the donkey-owner in Æsop's Fables, abolished Customs duties everywhere. To replace them he devised an astounding combination of an income-tax and property-tax. Under this, not only would the rich plainly pay less in proportion than the poor, but a Government official drawing £600 a year, but owning no land, would pay just half the sum exacted from a settler who, having invested £1,000 in a farm, was struggling to make £200 a year thereby. The mere prospect of this crudity caused such a feeling in the Colony that he was obliged to levy the Customs duties once more. His next error was the abandonment of the Government monopoly of land purchase from the Maoris. As might be expected, the pressure upon all rulers in New Zealand to do this, and to allow private bargaining with the natives for land, has always been very strong, especially in the Auckland district. Repeated experience has, however, shown that the results are baneful to all concerned—demoralizing to the natives, and by no means always profitable to the white negotiators. When Fitzroy proclaimed that settlers might purchase land from the natives, he imposed a duty of ten shillings an acre upon each sale. Then, when this was bitterly complained of, he reduced the fee to one penny. Finally, he fell back on the desperate expedient of issuing paper money, a thing which he had no right to do. All these mistakes and others he managed to commit within two short years. Fortunately for the Colony, he, in some of them, flatly disregarded his instructions. The issue of paper money was one of the few blunders the full force of which Downing Street could apprehend. Hence his providential recall.

Before this reached him he had drifted into the last and worst of his misfortunes, an unsuccessful war, the direct result of the defeat at the Wairau and the weakness shown thereafter. It was not that he and his missionary advisers did not try hard enough to avert any conflict with the Maoris. If conciliation pushed to the verge of submission could have kept the peace, it would have been kept. But conciliation, without firmness, will not impress barbarians. The Maoris were far too acute to be impressed by the well-meaning, vacillating Governor. They set to work, instead, to impress him. They invited him to a huge banquet near Auckland, and danced a war-dance before their guest with the deliberate intention of overawing him. Indeed, the spectacle of fifteen hundred warriors, stripped, smeared with red ochre, stamping, swaying, leaping, uttering deep guttural shouts, and brandishing their muskets, while their wild rhythmic songs rose up in perfect time, and their tattooed features worked convulsively, was calculated to affect even stronger nerves than the Governor's.

It was among the discontented tribes in the Bay of Islands, where Alsatia was now deserted by its roaring crews of whalers and cheated of its hoped-for capital, that the outbreak came.

In the winter of 1844, Honé Heké, son-in-law of the great Hongi, presuming on the weakness of the Government, swaggered into Kororáreka, plundered some of the houses, and cut down a flagstaff on the hill over the town on which the English flag was flying. Some White of the beach-comber species is said to have suggested the act to him by assuring him that the flag-staff represented the Queen's sovereignty—the evil influence which had drawn trade and money away to Auckland. Heké had no grievance whatever against the Government or colonists, but he and the younger braves of the Northern tribes had been heard to ask whether Rangihaeata was to do all the Pakeha-killing? At the moment Fitzroy had not two hundred soldiers in the country. He hurried up to the scene of disturbance. Luckily Heké's tribe—the Ngapuhi—were divided. Part, under Waka Nené, held with the English. Accepting Nené's advice Fitzroy allowed Heké to pay ten muskets in compensation for the flagstaff, and then foolishly gave back the fine as a present and departed. Nené and the friendly chiefs undertook to keep peace—but failed, for Heké again cut down the flagstaff. This, of course, brought war definitely on. The famous flagstaff was re-erected, guarded by a block-house, and a party of soldiers and sailors were sent to garrison Kororáreka. As H.M.S. Hazard lay off the beach in the Bay and guns were mounted in three block-houses, the place was expected to hold out. Heké, however, notified that he would take it—and did so. He marched against it with eight hundred men. One party attacked the flagstaff, another the town. The twenty defenders of the flag-staff were divided by a stratagem by which part were lured out to repel a feigned attack. In their absence the stockade was rushed, and, for the third time, the flagstaff hewn down. During the attack the defenders of the town, however, under Captain Robertson of the Hazard, stood their ground and repulsed a first attack. Even when Robertson fell, his thigh-bone shattered by a bullet, Lieutenant Philpotts, taking command, had the women and children sent safely on board the ships, and all was going well when the outnumbered garrison were paralysed by the blowing up of their powder magazine. The townsmen began to escape, and a council of war decided to abandon the place. This was done. Lovell, a gunner, would not leave his piece until he had spiked it, and was killed, but not before doing so. Bishop Selwyn, landing from his mission ship in the Bay, had been doing the work of ten in carrying off women and children and succouring the wounded, aided therein by Henry Williams. To Selwyn, as he toiled begrimed with smoke and sweat, came running a boy, young Nelson Hector, whose father, a lawyer, was in charge of a gun in position on one of the hillsides outside the town. The boy had stolen away unnoticed, and crept through the Maoris to find out for his father how things stood. The bishop offered to take him on board with the women, but the youngster scouted the notion of leaving his father. "God bless you, my boy!" said the big-hearted Selwyn; "I have nothing to say against it"; and the lad, running off, got back safely. Out in the Bay the American corvette St. Louis lay at anchor. Her men were keen to be allowed to "bear a hand" in the defence. Though this could not be, her captain sent boats through the fire while it was still hot to bring off the women and children, and gave them shelter on board. Anglo-Saxon brotherhood counted for something even in 1845. The scene became extraordinary. The victorious Maoris, streaming gleefully into the town, began to plunder in the best of good tempers. Some of the townspeople went about saving such of their goods as they could without molestation, indeed, with occasional help from the Maoris, who considered there was enough for all. Presently a house caught fire, the flames spread, and the glowing blaze, the volumes of smoke, and the roar of the burning under the red-lit sky, gave a touch of dignity to the end of wicked old Kororáreka.