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is it, I believe, attributable to the almost uni-
versal possession of land, upwards of one-third
of the whole number of Crown Grants already
prepared being in favour of separate individuals,
comprising more than one-half of the adult
male population; while the great majority of
those not yet owners of land could, did they
so desire it, become so.

5. The consequent interest in the welfare of
   the Province of so large a proportion of its in-
   habitants cannot but exercise a permanent
   influence on the character of its population; it
   having been well observed that the tenure of
   land is the most stable link of attachment—the
   strongest bar against popular license—the most
   prolific source of peaceful social progress. A
   numerous and industrious rural population is
   at once the source and the safeguard of the
   prosperity of a colony.

6. I am happy to be able to inform you that
   after repeated requisitions to that effect, the
   agreement for the purchase from the natives of
   large blocks of land, well adapted for coloni-
   zation, will soon be concluded; the Commis-
   missioner, Mr. M'Lean, being now about to
   collect the natives interested in the sale; and
   the necessary steps will immediately be taken
   to survey reserves for the use of the natives,
   when ample provision will be made for the
   future requirements of themselves and their
   descendants.

7. While reviewing the sources of permanent
   success which the Province possesses, I must at
   the same time advert to the one great drawback
   to its present progress, arising from the scarcity
   of labour, available either for Public Works or
   the operations of private individuals: the
   presence of this essential element in the pros-
   perity of a community being alone wanting to
   enable the province to attain to that position
   which its fertility of soil, valuable minerals, and
   many other natural advantages, ought to ensure
   for it, but without which the individual energy
   of its inhabitants must remain cramped—its
   collective importance diminished.

8. The funds appropriated in the last Session
   to the introduction of immigrants have been
   transmitted to England, to provide passages
   to Nelson for persons whose friends here have
   applied to have them sent out under the system
   of assisted passages. The total number of ap-
   plications forwarded during the last seven
   months being 386. An immigration from
   Melbourne, where a want of employment has
   for some time been felt, may also be expected.
   In order efficiently to conduct a system of im-
   migration to Nelson at regular intervals, it is
   advisable that an Agent should be appointed in
   England, by whom a selection of immigrants,
   of the class and character most desirable to
   introduce, might be effected in a manner which
   would not otherwise be practicable.

9. By a recent Act of the General Assembly,
   the very important power of issuing Regulations
   for the sale and disposal of the waste lands of
   the Province, subject to the approval of the
   Governor, has been vested in the Superintendent
   and Provincial Council. An Act to authorize
   the Assembly to transfer all its powers on this

subject to the Provincial Council, has also been
passed, and reserved for her Majesty's con-
firmation. The inhabitants of the Province
have consequently an opportunity of declaring,
through their representatives in the local legis-
lature, in what manner they would desire that
the future colonization of the country should be
conducted.

10. Regarding the waste lands, principally,
    if not entirely, as a means for fixing a population
    in the country, it might be advisable that the
    "Remission System," which is now being acted
    upon in the neighbouring colonies, should form
    a part of any future system of disposing of the
    public lands of this Province. I have long
    believed that such a system would work well in
    the settlement of a new country, and I am
    prepared to coöperate zealously with you in any
    endeavour to give effect to such a modification
    of it as may, after careful consideration, appear
    most applicable to the circumstances of the
    Province. Some encouragement to persons to
    explore for valuable minerals might also be
    afforded, by permitting the discoverers of such
    minerals to obtain at a fixed price portions of
    the land containing them, or by granting to
    them long leases, with a right of preëmption at
    the end of the term, on the condition of the
    mines having been worked for a certain period.

11. But as the whole question of the disposal
    of the waste lands of the Crown is one which—
    while of the very greatest importance—was not
    contemplated as coming within the powers of
    the Provincial Council at the time of its election,
    the constituencies might reasonably desire to
    have the means of declaring by whom this power
    should be exercised. For other reasons, it has
    also appeared to me most desirable that the
    number of Members of the Council should be
    increased. This could be effected either by an
    enactment giving additional Members to some
    of the electoral districts, or by one which would
    re-apportion the whole representation in the
    Provincial Legislature, and a necessary feature
    of which would be a fresh election of all the
    Members of the Council, and of the Superin-
    tendent. The latter mode, although involving
    some delay, would be the most appropriate, as
    affording to the respective constituencies the
    fullest opportunity of selecting those to whom
    would be entrusted powers of the highest
    order.

12. In conformity with the terms of a reso-
    lution adopted by you in the last Session, I
    have been enabled to make an arrangement
    whereby Steam communication has been estab-
    lished between Nelson and other parts of the
    colony; the advantages resulting from which
    are very generally appreciated. The establish-
    ment of a steam vessel between Auckland and
    Australia has already been attended with so
    much benefit to that Province, as to demon-
    strate how desirable it is that this Province
    should possess a similar communication. On
    this subject I have conferred with the Superin-
    tendent of Wellington, by whose coöperation
    the former arrangement was mainly effected,
    and I believe that, should it meet with your
    approval, a regular communication with Aus-