ments for immediate settlement than any other part of the island. There is an excellent situation for a small township, and it seems probable that colonists would be induced to settle there if the land should be thrown open for sale. Here, as elsewhere, the land is thickly wooded, but many of the trees are suitable for sawing, and the scrub would not be very difficult to fell and burn. When once cleared there is no doubt the soil would be very fertile, and would produce excellent crops of potatoes and other vegetables; or if laid down in grass would afford very abundant pasture.

From all the enquiries I made with regard to climate, and from my observation, I am inclined to think that on the east side of Stewart’s Island, north of Port Pegasus, the temperature will be found to be considerably milder than at Invercargill and its immediate vicinity. Certainly, the westerly winds will be much less felt, from the shelter afforded by the mountains in the interior, and from the slopes of the land to the north-east; but it is undoubtedly very wet. It is not probable that the actual rainfall is greater than on the main land, but small drizzly rain is very frequent. The harbours on the east coast are certainly excellent, being both safe and convenient of access; and all the coast from Saddle Point to Port Pegasus, with its deep indentations, presents every facility for communication by boats or vessels of every kind, and the great abundance, and the excellent quality of the fish, will make that a considerable resource. The quality of the Stewart’s Island oysters has long been celebrated, and I carefully examined the condition of this fishery. These oysters occasionally adhere to the rocks a little above high-water mark, but they have for the most part been dredged up from certain limited banks, which were found far up the Harbours, in about three fathoms water. The few banks hitherto discovered are pretty nearly exhausted; no doubt numbers of other banks will be found, but it is hardly probable that the oysters on them will be found, when taken, to be in so good condition as they were on the old banks, for these last were just in the sort of positions in which oysters are artificially bedded, near the heads of bays at the mouths of small fresh-water streams. At all events, it is certain that this fishery can never be a considerable object of industry until the oysters are regularly bedded and tended here as at home. It is impossible that the facilities for doing this should be greater than at Stewart’s Island, and there is no doubt that with good management and some little capital, this may be made a profitable and considerable branch of industry.

Ship-building is another pursuit for which this island affords peculiar facilities. The Rata timber, which grows everywhere abundantly, of the most suitable sizes and forms for this purpose, makes the best possible frames for vessels. On the whole, it is impossible to resist the conclusion that the colonization of Stewart’s Island presents very great difficulties and drawbacks. It will, ultimately, I have no doubt, form a very important and valuable part of the colony, but so much labour will be required to be expended before any portion can be made available, that it would be quite idle to attempt to people it by the same means as are applicable to the level, accessible, and well-grassed plains of Southland. If Stewart’s Island is to be peopled at all, it must be done by offering special inducements to a suitable class of colonists to settle there. The Nova Scotian Highlanders are the only colonists likely to attempt, and to succeed in, such an enterprise. To these skilful axe-men the forests would present no difficulties, and the facilities for fishing and ship-building would be a great inducement to them. In comparison with the rocky surface, and the bitter winters of Nova Scotia, the soil and climate of Stewart’s Island would be genial and inviting; and, when once the great difficulties of clearing and settling were over, such a community could not fail to become prosperous, and the remainder of the Island would then acquire value.

The proximity of such settlers would be of the greatest possible advantage to Southland, both by the increase of trade which it would involve, and by the great supply of labour which it would provide. But to effect this it is clear that a special land law will be required, and as this cannot be done for some time, it would be premature to take any steps for topographical survey on an extensive scale.

The Admiralty survey gives a very fair outline of the Island, and as any surveys which will be required for many years will be on the east coast only, there can be no difficulty in connecting them, either by main traverse lines across the points, or by a minor triangulation according to circumstances; and the only steps that I conceive it will be necessary to take at an early period, will be the laying off of a small township, with a few 20 acre Sections immediately around Port William; and perhaps defining and marking the Reserves it may be necessary