JULY 2.] THE NEW ZEALAND GAZETTE. 1419

The First, Second, and Third Contingents have returned to the colony. The Fourth and Fifth are on their way home, and on the 29th ultimo their safe arrival at Albany was reported.

The Sixth and Seventh Contingents were sent to relieve the contingents returned and returning, and the colony has now in South Africa about one thousand officers and men, and they are fully maintaining the high reputation for bravery, energy, and gallant bearing earned by the New Zealand troops that preceded them.

It is a pleasure to me to announce that the commencement of the construction of the Pacific cable is now an accomplished fact. The contract has been signed, a Board of Advice has been formed, and the work of laying the cable is progressing, and this Imperial work, advantageous alike to the colonies and the Mother-country, will, it is expected, be completed well within the next two years.

I regret to say that some friction has arisen owing to the Government of New South Wales—one of the contracting parties—having granted concessions to the Eastern Extension Telegraph Company, which are deemed inimical to the Pacific Cable scheme. The others of the contracting parties were approached with the same object in view, but steadily refused to be any parties to doing anything which would militate against the success of the Pacific cable. This course will, I feel sure, be appreciated. It is the first time that the Imperial authorities and Canada have, with the Australian Colonies and New Zealand, jointly undertaken a work of Imperial and Colonial importance, and nothing should be done which alters the situation until after consultation, and with the concurrence of all the contracting parties.

I regret to state that the bubonic plague still continues in some of the other colonies. It is pleasing, however, to know that New Zealand is free therefrom. The Health Act of last session is working well, and every precaution is taken to insure the health of the inhabitants of our colony, and to prevent the dreaded plague reaching our shores. In connection with health matters I am pleased to note that the Native race under the powers given by the Maori Councils Act of last session are using every precaution and are improving the sanitary condition of their kaingas. One of the Native race, who is duly qualified, has been appointed a Health Officer, and I have every reason to believe that the health of our brethren—the Native race—will be improved, and that the death-rate will be reduced.

During the recess, Royal Commissions have been appointed to inquire into and report on matters affecting the coal-mines of the colony, the disposal of mining debris into certain rivers, the Midland Railway, Federation with the Commonwealth of Australia, and the feasibility or otherwise of a colonial scale of salaries for the teachers of New Zealand.

On the 1st of January last the penny-postage scheme came into force in this colony, and has given universal satisfaction. I am happy to say it is a pronounced success, and it is more than probable that within two years, as the result of the increased business, the revenue will equal that preceding the reduction. My Ministers regret that up to the present several of the Australian Colonies have not seen their way to adopt the system, and are surcharging our letters. I sincerely hope the time is not far distant when the penny postage will be adopted by the Australian Commonwealth, and be universal within the British Empire. Many foreign nations that have not adopted the penny-postage system within their own countries have most willingly consented to admit our letters at the penny rate.

On the 31st March last the people of this colony were enumerated. The returns disclose a substantial increase as compared with the census of 1896, and a considerable increase as compared with the census of 1891. The increase on the whole is not unsatisfactory, yet in a young country like this, so favourably circumstanced, there is room for improvement, especially in respect to the natural increase, and the falling-off in the birth-rate gives ground for reflection and anxiety. The most pleasing feature in the late enumerating of the people is that there is a marked increase in the number of those of the Maori race, and the outlook in this respect is cheering in the extreme, and exceptional in regard to aboriginals when surrounded by and brought into close contact with other races, their customs, and environments.

The system of advances of cheap moneys to settlers continues popular and is working very satisfactorily, and during the last few months, when there was a