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occupied at the outset in preliminary operations, but the systematic survey of the Province is now being proceeded with.

In connection with the Geological Survey, Museum, and proposed School of Mines, you will be asked to vote a sum sufficient for the erection of a suitable building, the present accommodation in the University building being totally inadequate.

I desire to solicit your assent to a vote which will be submitted, with a view to providing for the Province a Reformatory School, for the reception of children and young criminals, under proper classification, who cannot be admitted into the Industrial School without contaminating the inmates of that institution, which as a rule consist more of neglected than of criminal children. Considerable difficulty has been experienced from the want of the means of separating the two classes. There is no portion of the public expenditure from which the Province will reap a greater return than that devoted to the Industrial School, and I am not without hope that very shortly the institution will be to a large extent self-supporting.

In pursuance of the provisions of the Southland Waste Lands Act Amendment Act, 1873, the land in the Southland district has been classified, under which classification the district comprises 204,211 acres, which may be acquired at 40s. an acre, and 695,000 acres, which may be acquired at the rate of 20s. an acre.

There is also power to set aside not exceeding 30,000 acres in any one year for sale on deferred payments, at 25s an acre. Out of the 204,211 acres of 40s. land, it is proposed to reserve from sale 102,800 acres, with the view of same being dealt with on the principle of deferred payment.

Last Session, on my recommendation, you agreed to request the Governor to Hundreds proclaim four additional Hundreds, situate on certain Runs. So soon as the boundaries were defined by survey, application was made to have the Hundreds proclaimed. I regret to say, however, that after the lapse of six months it was discovered that the proposed Hundreds could not be proclaimed in consequence of the precise boundaries not having been defined, either in my recommendation or in your resolution. I need not say that it was impossible to have defined the boundaries more exactly than was done at the time; as it is, the precise delineation will be at once submitted for your approval, when it is hoped the proclamation will issue forthwith. The correspondence and opinions on this subject will be laid before you.

Your concurrence will be solicited towards the proclamation of further Hundreds. The proposed new Hundreds, together with some 60,000 acres which it is hoped will be opened on deferred payment during the year, with the further addition of various agricultural lease blocks throughout Gold Fields, will, it is expected, fully meet the demands of settlement for the time being.

Last Session a Bill was passed by the House of Representatives extending the area of land which may be taken in any one year on deferred payment from 30,000 to 100,000 acres. This Bill was not passed by the Legislative Council. It is proposed to renew the application next Session, and also to provide that where there are more than one applicant for deferred-payment Sections, the selection will be submitted to auction.

I would strongly urge upon your consideration the expediency of raising the Price of Land, as contemplated under the provisions of the Waste Land Act. I feel persuaded that such a step would greatly curtail land speculation, would in no wise check bona fide settlement. I submit that, with main roads and railways penetrating the country in all directions, land is better worth £5 an acre now than it was worth 5s. when it was inaccessible. Certainly, if early settlers paid £2 an acre when there was not a road in the Province, that figure cannot fairly be considered too high now. It appears to me that if future immigrants into the country, and those who will be from year to year gradually emerging from the labor market, as well as our children, are to have the opportunity of acquiring land, we are in duty bound to husband the public estate by raising the price, as has been partially done in the case of the Southland District, and so as to assimilate our terms to those of the neighbouring Province of Canterbury.

Another question of vital importance to which I would solicit your attention is that of Water Rights on Gold Fields; a very serious conflict is impending between the mining and other interests in respect to this matter. The Executive Government has been appealed to, but does not see that it would be justified in allying itself with any one interest in the Province as against another.