150

The foregoing statement, although somewhat dry, perhaps, will serve to indicate the extent of settlement and the general progress of the Province since we last met.

I am happy to say generally that at no period since the commencement of the settlement has it been more prosperous than now. There is a life and a buoyancy throughout every department of industry which has never been exceeded, and at no time have commercial obligations been more regularly met. It is a striking feature in the history of the past year that the business of the Bankruptcy Court has been, comparatively speaking, nil.

It is in no spirit of self complacency that I call your attention to these facts. Under the circumstances, however, it appears to me that, whatever be our differences of opinion as to who are the best men to administer public affairs, we may fairly indulge in mutual congratulation and thankfulness.

Naseby Water Works

Referring to the Gold Fields, you will be glad to learn that your resolutions respecting the Race at Naseby are at length being complied with. An expenditure of some £40,000 is being incurred, which it is believed will amply recoup itself, and afford profitable employment to a large number of people who must otherwise have left the district.

Gold Fields

Gentlemen,—While on this subject, it affords me pleasure to call your attention to the fact that Otago has not experienced that diminution of its gold production which has unfortunately befallen the other gold producing Provinces of New Zealand. The increase for the year, small though it be, is the more satisfactory, seeing that a large number of miners have been induced to engage themselves on other works, and seeing that water for sluicing purposes during the past six months has been exceedingly scarce in many districts. We may fairly regard the increased yield of our gold workings under the circumstances as an evidence of the great vitality and permanence of this industry. An increased tendency is manifested among capitalists and others to look upon mining ventures as a legitimate means of investment, and several companies have been started under very favourable auspices. I cannot overrate the importance of facilitating as much as possible mutual co-operation of the investing and the mining interests, in order to the development of the many thousands of acres of rich auriferous deposits which are known to exist throughout the Province, deposits the development of which is beyond the reach of ordinary mining partnerships, and can only be advantageously attained by companies with large capital. With a view to the more complete development of the gold fields, and the mitigation of grievances to which the mining community are at present subjected, a new Gold Fields Bill has been very carefully prepared, which, it is hoped, will become law next Session of the General Assembly.

Dunedin and Port Chalmers Railway

I have to congratulate you on the completion of the Dunedin and Port Chalmers Railway, in a style which, as regards workmanship, will compare favourably with any other railway work in the Colony. As you are aware, the General Assembly last year authorised the purchase of the railway from the promoters, which purchase has recently been concluded, the line being now in the hands of the Province. It is estimated that the traffic receipts will amply recoup the Province, and that they are likely to increase yearly in amount as the lines into the interior are extended, and the requirements of the traffic are provided for by additional pier accommodation and warehouses.

Paper Manufactory

I am happy to say that the offered bonus for the establishment of a paper factory has at length so far had the desired effect, and that a bond has been entered into which, in due time, will result in a paper mill on the banks of the Mataura, where it is understood that a suitable site has been secured.

Sperm Whale Bonus

Some years ago a bonus was offered for the encouragement of sperm whaling, to which, however, there was no response. There is reason to believe that if the offer be renewed, there are parties in the Province now who are prepared to entertain the proposal. £500, or even double the sum, would be well spent if it should have the effect of turning to account by ourselves of the rich mine which surrounds our shores, and which is being so profitably worked by strangers.

There are several subjects of importance to which it is proposed to solicit your attention during the present Session.

School accommodation

First, perhaps, is the absolute necessity of providing adequate school accommodation throughout the Province. In many of the existing school buildings the children are so crowded that there is a choice of two evils—either to withdraw them from the school, or to educate their minds at the expense of their bodies. In some of the school-houses the accommodation is so limited that it is physically impossible to crowd the children into them. From a statement furnished by the Inspector of Schools, which will be submitted to you, it will be seen that at least £27,000 is required to provide adequate school accommodation, an amount which, in addition to the annual requirements in respect of teachers' salaries, repairing buildings, etc., involves a much larger drain upon the ordinary revenue of the Province than is either called for or warranted. It is proposed that, say £1,500 a year, out of the £11,000 which are now derived from rentals of property at the disposal of the Education Board should be set aside for 30 years for the purpose of providing school accommodation, in which the future is as much interested as the present. Should you concur in this proposal, there will be no difficulty, I apprehend, in getting the necessary Act passed by the Colonial Legislature, and a sum of £30,000 will be available for the objects in view. Upon the subject of Education generally, I have much pleasure in soliciting your attention to the very valuable and exhaustive report of Mr. Hislop, the Inspector of Schools; a report which embodies many most important practical suggestions—suggestions which are being given effect to by the Education Board, in so far as it is empowered to do so. Perhaps, however, the most valuable suggestions of all are those which cannot be