30

The working, or rather, I believe, the intention of
working coal at Lake Macquarie, is another instance
of the bold way in which difficulties are met in order
to get a share in the coal trade: for here is a place
which cannot be dignified with the name of harbor,
having only from 4 to 8 feet of water at high tide,
and that on a shifting bar, exposed to the open ocean,
without the least shelter from any wind, boldly enter-
ing into competition with such a place as Newcastle;
and probably before long a large quantity of coal
will be sent from there, in spite of the great disad-
vantages in the field.

With regard to the mode of acquiring land for coal
mining in New South Wales, I will enclose with this
report "The Crown Lands Act of New South Wales
for 1861," from which it will be seen, that, under
certain regulations, mineral land can be purchased
for £2 per acre; or leased for 14 years for 5s. per acre
per annum, with power to renew the lease for 14 years.
No royalty is charged, but it is to be remembered,
that the most favorable places for working coal, have
long since been either purchased or leased, so that new
companies starting enter at once into competition
with old established firms, probably in more favorable
positions.

In conclusion, I have only a few remarks to make
on the prospect of our Nelson coal competing with
that of New South Wales, in the market of the world.

In the first place all that I have seen has not
changed my opinion as to the value of the Nelson
coal-field; but it has opened my eyes to the fact
that New South Wales is a more formidable rival
than I had anticipated, both as to its natural re-
sources, and also the facilities with which land for
mining purposes may be acquired in that colony. It
is quite evident that the Government of New South
Wales does not look for any direct pecuniary advan-
tage from the working of its coal-field, and on the
contrary, spends large sums of money in developing
its resources, with the hope of increased revenue
to be derived immediately from such expenditure.
But the indirect advantages are so enormous, as fully
to justify the sacrifice of royalty, &c.

If anything was needed to illustrate the wonderful
impetus which the working of coal gives to a com-
munity; the present state of only Newcastle and,
the other coal producing districts, but of Sydney it-
self, would be sufficient to demonstrate it fully. No
one who sees the rapid progress made in all kinds of
engineering work in that fine city, and the large
fleet of steam vessels of all classes, which crowd Port
Jackson, can fail to recognise the fact, that coal is
the great engine which has raised New South Wales
to its present state of prosperity, and will eventually
make it, one of the greatest, if not the greatest coun-
try in the southern hemisphere.

Seeing this ought to make us doubly anxious to
develope our coal, for though we cannot hope to
rival the vast and almost boundless resources of that
great country, we have a coal-field capable of doing
as much in proportion for this part of New Zealand,
as has been done for New South Wales, by the coal
deposits on the east coast of Australia.

If the requisite amount of capital was judiciously
expended on our coal-fields, I have very little doubt
that we could put an equally good, if not superior coal
on board ship at as low a price as is at present done
in Newcastle, viz: 9s. per ton; and even at that,
leave a very fair profit for the producer. See my re-
port of September 3rd, 1862, where the estimated
cost of putting coal on board ship at the Buller, is
8s. 2d. per ton; see also Mr. Blackett's report of
May 4th, 1863, his estimates from three different
quarters being as follows:—
*Buller railway, 12½ miles ... 7s. 11½d. per ton
" 9 miles ... 7s. 0½d. "
Grey " 7½ miles ... 6s. 8d. "

These estimates include interest of capital at 10
per cent, and a considerable margin for contingencies.
It must be remembered that when they were made,
coal was sold on board ship at Newcastle, at from
13s. 6d. to 14s. 6d. per ton.

Then again Newcastle has the great advantage over
us, in being able to employ larger vessels than our
harbors will admit; but I have shown, that in several
parts of New South Wales, coal is actually shipped
in the open roadstead, so that need not discourage us.

Now though there is no hope of competing with
Newcastle in the Sydney market, I think there is a
fair chance of getting some share of the Melbourne
trade (which in itself is upwards of £200,000 a year),
and also of that of Southern and Western Australia.
But setting the Australian market on one side alto-
gether, we could command the trade of New Zealand,
which is no small matter in itself, and would very
soon be doubled, if coal could be supplied to steamers
in our principal ports, at from 20s. to 25s. per ton,
which could at once be done if our coal-fields were
opened.

The probability that the Panama route will be es-
tablished in a few years, is in itself a guarantee that
our home market will shortly be a most important
one; and we may add, that if there was a certainty
of our coal-fields being opened, it would have more
effect in establishing that important line, than all the
acts of the New Zealand legislature can do in the
matter. The impetus which the Panama route will
give to commercial enterprise and steam navigation,
among the islands of the South Seas, and along the
western shores of South America, will open a new
market for coal, in which our geographical position,
gives us a great advantage over Australia; but
where doubtless we will come into competition with
the coal-fields of Vancouver's Island.

How far the coal which has lately been found near
the Bay of Islands, may be able to compete with
Nelson—either as to quality, quantity, or facility for
working I can form no opinion; one thing I believe
is certain, it is true coal, and from the newspaper ac-
counts appears to answer for steam purposes. Be-
fore leaving Nelson for Australia, Mr. Busby, of the
Bank of New South Wales, gave me a sample of it,
which was left for analysis with Dr. M'Adam, Pro-
fessor of Chemistry, in the University of Melbourne,
along with samples from the Grey and Buller.

I am more and more convinced, that the prosperity
of Nelson depends almost entirely on its coal-fields,
if they are judiciously and energetically worked, it
will become one of the most prosperous provinces in
New Zealand. If it not must sink into poverty and
insignificance.

I cannot help expressing how much I feel obliged
to many gentlemen, both in New South Wales and
Victoria, for the kind courtesy shown to us on all
occasions, and for the liberal spirit with which infor-
mation has been conveyed and assistance given to us,
in the prosecution of our inquiry; not only on the
coal-fields but on all matters connected with our ex-
pedition.

Note.—This is the same as is estimated by me at 8s. 2½d.
per ton.