that, as a Legislature, we have sadly failed in what has been required of us in this matter, and that much of the depression which at present prevails is to be attributed to our neglect.

The one thing needful to secure the prosperity of every class, is a population in some measure adequate to the beneficial occupation of the country. At present the Province is comparatively a wilderness. During the past year the balance of Immigration over Emigration has been 1,530, a mere drop in the bucket.

Instead of 65,000—the present population of Otago and Southland—I believe that several millions of industrious people might find the means of comfort and independence within our borders. You will observe from the correspondence with the British agent, that anticipating your concurrence, Mr Auld has been empowered to make arrangements for granting passages to two hundred adults per month at £5 a head, the Government to pay the difference. This arrangement, if successful, will involve a vote of £17,000 a year, an amount which I should be glad to see doubled.

But it is assisted Immigration that should be looked to exclusively to develop the resources of this Province. There can be no doubt that there are in the overgrown countries of Europe thousands of industrious people, possessed, more or less, of means of their own, whose condition would be greatly bettered by coming here. In order, however, to get at this class, it is essential that there should be an agent at work, personally acquainted with the Province and its capabilities; a man who could both write and speak from his own personal knowledge, and one withal who could associate with, and feel himself at home in every sphere of society. I trust that before the Session closes suitable provision will be made for securing the services of such an agent.

Gentlemen,—perhaps the most effective means which could be adopted of attracting population to our shores would be the establishment of direct steam communication with Europe.

From enquiry upon this subject, I have reason to think that if, under the powers conferred by the “Immigration Act 1868,” we were to set apart £25,000 a-year for Immigration for three years, arrangements may be made whereby a direct steam line can be secured, and our immigrants brought out in 50 days at the same rates as are now being paid to sailing vessels. With this object in view, proposals will be submitted to you for approval.

The advantage which would result to the Province and to the Colony from such a line must be so obvious that it is needless to enlarge upon it. I may observe that but for the Graving Dock at Port Chalmers, now rapidly approaching completion, we never could have looked forward to a line of steamers such as is now in view at anything like the money.

While upon this subject of Immigration, it may be well to call your attention to the fact that, in all probability, an effort will be made to take the matter into the hands of the General Government. I feel persuaded that any action in this direction practically means the settlement of the Northern Island at the expense of the land revenue of Canterbury and Otago,—each of which Provinces is far more competent to conduct its own Immigration than the General Government can possibly be. It is to be hoped that your action this Session will be such as that, in as far as this Province is concerned, there will be no pretext for the General Government interfering in the matter of Immigration.

In the event of our succeeding in establishing a direct steam line from London, I think it not unlikely that Canterbury may be induced to participate in the benefits and to share the expense.

Last Session you requested me to take steps to obtain from the Colonial Parliament power to guarantee interest upon a sum not exceeding £100,000, to be expended on Water Supply on the Goldfields. While I shall spare no effort in endeavouring to obtain the sanction of the Assembly to this proposal, I would venture to suggest that the power sought should be alternative, so as to enable us either to guarantee interest to private enterprise, or, failing this, to raise the money on loan; and that, instead of £100,000, the power shall extend to £200,000.

Every day is rendering it more apparent that a larger amount than this might be advantageously expended in this direction, and, in fact, that with cheap and abundant water, there is no limit to the auriferous resources of the Province. There is good reason to believe that, with an adequate supply of water, our quartz reefs alone would afford profitable employment to thousands. I am in hope that the Assembly may be made to see that the Colony itself would be greatly benefited by permitting the Otago Goldfields to afford profitable occupation to 50,000 taxpayers, instead of 5000.

While on this subject, I may observe that in furtherance of your resolution last Session, respecting the appointment of a competent Mining Surveyor, to report upon the resources of the Goldfields and to make suggestions as to their development, I have placed myself in communication with the Government of Victoria. The correspondence will be laid before you, and an amount placed upon the Estimates to provide for this service.

In compliance with your resolution of last Session, blocks of pastoral land have been reserved as Endowments for Education, Hospitals, Benevolent Asylum, and Clutha River Trust. Plans and descriptions of these lands will be submitted for your approval, with the view to the necessary steps being taken to obtain Crown Grants.

Another very important subject which will have to be considered by you when the estimates are under consideration is the appointment of a duly qualified Inspector of Schools.

Our public educational system has now assumed a degree of magnitude which renders it absolutely necessary that it should be placed under thorough supervision. The officer who has hitherto occupied the position of Inspector has so many other duties devolving upon him, that it is impossible for him to overtake the duties of Inspectorship. I trust, therefore, that provision will be made for the payment of an Inspector whose whole time shall be devoted to the business of the office.

In compliance with the recommendation of the High School Commission, arrangements are now being made for the establishment of a High School for Girls, and also for the erection of a suitable building for boarders in connection with the High School.

There is a grave question now staring us in the face, with respect to which I should be glad to have your opinion and advice. I allude to the very serious results which sooner or later must accrue from the gradual elevation of the beds of the Taieri and Clutha rivers, consequent upon mining operations. It is difficult to realise the enormous magnitude of the interests involved in this question, and I am utterly at a loss as to the most practical means of dealing with it.

A very able and valuable report with respect to the Taieri river has been carefully prepared by Mr. Thomson, Chief Surveyor of the Province, which I commend to your earnest perusal.

You are, no doubt, aware that in consequence of the undue length of the voyage of the “Almora,” our second shipment of Salmon Ova turned out a total failure. Now that we have steam communication with San Francisco, I am inclined to think that, with absolute certainty of success, we might procure Ova from British Columbia. It is probable that the Acclimatisation Societies of Canterbury and Southland might unite with us, in which case our share of the cost of a shipment would be comparatively trifling. I trust you will consent to a small vote with this view.