the Province, comprised within the following boundaries:—On the south, the sea; east, Mataura River to its junction with the Tomogolot Creek; north, a line due west from the said junction to the foot of the Takatimo Mountains; west, the Waiau to its junction with the Wairaki, thence by the Wairaki to its source, and thence by a line running north-east along the foot of the Takatimos till it cuts the Northern boundary. Total acreage, about 761,000.

I have stated that this estimate is only an approximate one, the system of survey under which it is made—that of reconnaissance, necessitating a very rude approximation as to the actual area, though from the knowledge I have acquired by having ridden over the greater part of the country in question, I am inclined to think the quantity as rather under than over estimated.

Of this land, a large proportion is in the unsold parts of the Oteramika and Jacob’s River Hundreds and Block set aside for sale under the Land Sale and Leases Ordinance; that in the Hundreds is superior in quality, within easy access to the seaboard, and in the Oteramika having a forest of some 10,000 acres of superior timber to supply all the requisites which agricultural settlement demands; while the settlement and occupation of a large part of the sold portions of course enhances the value of the remaining part. Of the land in the 2,000 acre blocks, that abutting on the Main North Road I have reported on in my letter of 3rd instant; but, irrespective of this, there is a very considerable area to the east and west of the tract of country shown in the sketch enclosed in that report: on the east bank of Jacob’s River, from the Yellow Bluff to the south boundary of Run No. 136, there is a belt of very superior agricultural land, the soil being a rich black loam, several feet in depth, a perfectly level plain. This, although denuded of timber, has easy access to the Spar Bush, in the New River Hundred, of several thousand acres, the timber in which is superior to almost any other bush in the Province. To the east of Forest Hill, in what are called the Waiopai Plains, the land is undulating and in some places inferior in quality as regards agriculture, though admirably adapted for sheep farming on a large scale in paddocks. It is well watered by three or four large creeks, the Makerewa, Danesdale, Hedgehope, Linhurst. In this block of land, however, is included some of very superior quality for agriculture, such as part of the Mataura Plains, adjoining Mr. Holmes’ purchase, the country between the Waimumu and Charlton Creeks, the Mabel District (the small portion of which, when thrown into the market, was eagerly competed for, fetching from £1 3s. to £2 6s. per acre), the north-east and part of the southern frontage of the large Bush on the southern slopes of the Hokanui Hill. There are also some fine limestone valleys between the Forest Hill and the west side of the Hokanui Bush, referred to above, drained by the Makerewa. The Mabel District, and a considerable quantity of land to the east of the township of Gore will obtain timber from the large reserves in the Makerewa Bush,

while the country to the north of the Linhurst has the inexhaustible Hokanui Bush to look to for supplies: through this district in a north-easterly direction runs the main road to Dunedin.

Of the lands within licensed runs, I may state that I have included in my estimate only the plains lying at the foot of the various mountain ranges and along the banks of the Mataura, Oreti, Jacob’s, and Waiau Rivers. Of these, the nearest to the seaboard, on the Mataura Plains, is Run No. 97, the superior quality of which is too well-known to require mention; next, also, on the Mataura, are the Waimea Plains; of these, the greater portion is good dry land, that between the Charlton and Waimea Creeks very superior, the whole perfectly level, and the major part singularly free from swamps—land on which the steam plough might operate at once.

The large patches of bush on the eastern and north-eastern frontages of the Hokanui will furnish timber to this block. The greater part of the plains on either side of the Aparima are good land, that on Runs 135, 153, and the southern portion of 133, superior; they are well watered and bush is easily attainable, the Waiau Plain is a remarkably fine one, being perfectly level, with patches of bush scattered over it, and considerable quarries of limestone, with easy access to the seaboard. Approaching nearer still, the land on Runs 156, 142, and 128, is equal to any in the Province, particularly the two latter lying between Otautau and the Longwood Range Bush, and having a north-easterly frontage of some fifteen miles to the latter, it is peculiarly adapted for settlement, not only for the small farmer but for men of means desirous of making a home for themselves.

In this estimate I have excluded the numerous valleys of the Hokanui, Taringatura, &c., hills, many of which possess good soil, timber, and water, as also the slopes of the hill themselves. Where cultivation could be, and doubtless will, when the necessities of population require it, be carried on profitably, the whole north-east frontage of the Hokanui, for instance, would, I imagine, yield a good return to the agriculturist. When lately at Captain M’Callum’s station, at Otapira Bush, I saw a finer crop of oats on one of the slopes, entirely away from the bush than I have seen anywhere this year, in Southland.

I may state that all the land south of Block III, Invercargill Hundred, on to the Mokomoko and to the west of the proposed Railway, from the Bluff to Invercargill, lying between it and the estuary, is unsold; the greater part of it, though swampy, is capable of improvement by drainage, and as I presume, there will be frequent stations along the line of rail, its position will ensure its realizing a large price, it being admirably adapted for grazing paddocks or growing hay.

In conclusion, I have the honour to state, that although the Province has been not more than one-and-three-quarters years in existence, and the revenue considerable, only 53,731 2 38 acres of land had been escheated from the Crown up to the 31st December last; and looking at the large quantity of land still