904
THE NEW ZEALAND GAZETTE.
[No. 66

There can be no doubt that increased population and a more varied use of the soil would result in a large development of the vast natural resources of the Colony. Already new industries are springing up, with regard to which there is every reason to hope that the genial climate and the great fertility of New Zealand will enable the Colony to compete successfully with other countries in the markets of the world.

Having the fullest confidence that with a cessation of the causes that have led to temporary depression there will come a revival of trade and an increasing activity in all local industries, my Advisers have not hesitated steadily to prosecute the work of colonization, by assisting to introduce a class of immigrants acceptable to existing settlers, and nominated by them. They have also furthered the same work by disposing of the Crown Lands in such a manner as will, it is believed, promote their occupation by settlers who are able to aid in increasing the productive power of the country.

The plan of offering a proportion of the Crown lands for occupation on a system of perpetual lease, has met with considerable success. This result will be accepted with satisfaction generally; for the plan affords to the industrious settler all the permanency and security of freehold tenure, while it leaves his capital available for improvements and for stocking his land. You will be asked to extend the operation of this plan to other parts of the Colony besides its proclaimed Gold Fields.

You will be glad to find, from a return which will be presented to you, that during the past year there has been a considerable increase in the area of land taken up subject to residential conditions; and that, notwithstanding the difficulties under which the agricultural classes have been labouring, their engagements with the Crown have been met, on the whole, with creditable promptitude.

A proposal for dealing with pastoral lands in small areas will also be submitted to you.

It is a matter for congratulation, that while settlement within the Colony has been progressing, increased facilities for the disposal of its products in the Home market are being afforded through the establishment, by private enterprise, of Direct Steam communication with Great Britain.

Of special interest connected with the establishment of Direct Steam Service, and the general growth of Colonial Industries, is the fact that the great and rapidly-increasing consumption of Coal is being met by increased productiveness of the mines within the Colony, the annual importation of Coal having remained almost stationary for the last four years.

On the Gold Fields, much enterprise has been shown by the miners, during the year, in introducing machinery and opening quartz-mines, as well as in the application of new methods to the successful working of deep alluvial deposits. The yield of gold from quartz shows an increase over previous years; and although the total production for the Colony during the past year has not been equal to that of former years, there is satisfactory ground for believing that the average annual yield will in future be maintained.

The policy which has been pursued for some years, in dealing with the Native inhabitants of the Colony, is daily producing more friendly relations between the two races; and this satisfactory result is, I am assured, visible in almost every Native district.

Explorations for railway purposes, and surveys for ascertainment of title, over large areas of the North Island hitherto but little known to Europeans, have been carried on with such slight interruption as to show that the isolation until lately maintained by some of the tribes, no longer exists or is desired by them.

The progress which is being made in determining tribal boundaries in the North Island, will shortly leave little to be done beyond the work of subdividing and individualizing the Native tenure.

The time has arrived when a very material change in the mode of dealing with Native Lands is called for, in the interests alike of the Maori and the European population.

A Bill will accordingly be laid before you, to regulate the sale or other disposal of land belonging to aboriginal Natives. Experience has proved that the abandonment of the exclusive right of purchase by the Crown has not produced the beneficial results which were anticipated by the promoters of that policy; but that, on the