the rapid travelling or straying of sheep from the Waimata to the Wainui river; and if it was certain that the Wainui boundary would be fenced, it would make assurance doubly sure, while the trustworthy character of the Messrs. Speedy would be a guarantee that the boundaries would be well looked after. On the other hand, the fact of Mr Herbert keeping sheep in his paddocks, and the possibility of them getting out and straying, might be a source of anxiety. This is an improbable contingency, but I think it only fair to give it a passing notice. This scheme would cost the Province £270 a year, commencing from the present year with a possible small loss on sale of the Wainui sheep; while on the one hand, the scab might spread across the few intervening clean runs into this province in an incredibly short space of time, it may again be years before it advances much nearer our frontier. The fencing scheme, if carefully shepherded, would, perhaps, prove quite as formidable an obstacle to the spread of scab as the first scheme, and presents the following advantages—that it could be erected at a few month’s notice if the necessity for so doing became imperative. The cost of this scheme would, at a rough calculation, be as follows:—Cost of fencing say double line with eight wires best stout galvanized strand wire, eight miles at £140 per mile, £1120; interest of which at 10 per cent. £112; shepherd’s wages and rations, £70; total, £182 per annum.

Such is a brief and impartial outline of the two schemes to which I invite the consideration of those settlers in this Province (and they are not few), who have practical knowledge of the insidious nature of this disease, and the ruinous consequences its presence entails. I do not presume, unaided, to express a preference for either of those schemes, the adoption or rejection of which will, I opine, rest with the settlers themselves. I cannot, however, close this subject without impressing upon the settlers that all our efforts may prove futile unless the utmost vigilance is exercised to guard against the chance introduction of scab in the clothes, &c., of shearers, and other station hands, from scabby districts.

There have been only 83 sheep imported since the date of my last report (Feb. 26, 1869.) The exports of fat sheep to the Auckland market during the same period have been about 15,000 as against 30,000 for the previous year; this falling off is mainly attributable to the large number of fat sheep exported to Auckland from Wanganui. The number of sheep slaughtered at the Hawke’s Bay Boiling-down establishment, from commencement of operations up to 1st October last, was 23,267. I am indebted to the manager of the company for the foregoing statement.

By the returns of last May, there were about 320,000 wethers and rams, and about 444,000 ewes, making a total of 764,000 sheep in the province at that date, which, with the addition of the last spring lambing, will raise the number to about 900,000 sheep in the province at the present time.

I have not for many years seen the sheep in such good condition as they are this season; indeed, it could not be otherwise, with such a favourable season for feed. The clip of wool is above the average and of unusually good quality, as there has been no scarcity of feed since last summer. It is gratifying in these depressed times to note the enterprise displayed by Mr. Gollan and Mr. Purvis Russell, in the erection of warm water and spouting apparatus on their stations, for washing their sheep this year. The arrangements appeared to me very complete, and will, I believe, produce results both satisfactory and remunerative to the spirited proprietors. I am pleased to hear that on many of the stations, some attention is being devoted to culling the flocks, in anticipation of getting them fattened for the melting pot. This is a step in the right direction, off with all the old ewes and other worthless animals which constitute a third or more of the majority of the flocks. From the present time up to the month of June, or later, we may safely calculate upon a large proportion of the sheep on every station in the province being fat, and, I hope, see the Boiling-down Establishment, at West Clive, in active operation during that time. I still adhere to the opinion expressed in my last report that boiling-down should be carried on on distant stations, on however small or primitive a scale. I can cite an instance of a gentleman occupying a small station on the coast, who, during last autumn, boiled down the most of his surplus stock in a large tri-pot, procured from an old whaling station. His plan was simple enough. He cut up as many sheep as his pot would hold; filled up the pot with water; put a cover on it, with a weight on top to prevent the escape of steam; firewood was plentiful, and he boiled the contents for 36 hours; skimmed the fat off into casks, melting the inside fat separately, and mixing it in a liquid state with that obtained from the carcase. The nett proceeds from this rather primitive method was 3s. 6d. per sheep, exclusive of skins. My informant says the sheep were not in prime condition, many of them being old ewes, only half fat. If the sheep thus operated upon had been driven to Napier to be boiled down, they would, owing to the long drive and rough barren road to be travelled, have arrived in poor store condition; and, what with driving expenses, cost of paddocking and boiling down, the proceeds to their owner would have been nil. I mention this (and I dare say those who have tried the experiment will endorse my opinion), that it will not pay to drive sheep a long distance to be boiled down; they may be tolerably fat when they leave the station, but they turn out very different sheep when they reach their destination, and are slaughtered. I think the stations within a reasonable distance of West Clive will have more than enough fat sheep this season to keep that establishment actively engaged. It would surely pay the settlers in the Waipukurau district to establish a boiling down place at or near Waipukurau, which presents unusual facilities for such an undertaking. It is the centre of many of the largest stations in the province, and has wood and water in abundance. Another, on a smaller scale, might with equal benefit be set up at Blackhead. These suggestions must