SETTLEMENT ACTS, 1856* and 1858.** but, as it is the only site for a township at Port William, I trust the Government will, under any circumstances, secure it. I would also recommend a reserve of 30 acres for a Lighthouse on the East Head. Although it is probable that it will not be required for such a purpose for some years, yet, as it is the best position for one, it ought to be secured.

HORSESHOE BAY

Is a pretty little bay, sheltered from the worst and most prevalent winds. The available land in its immediate vicinity is circumscribed. What there is, however, is good, and would form a desirable purchase.

The LAND here, to judge from a small clearing which had been made is good, and there are some available sites for shipbuilding yards. I understand that there is a tolerable extent of open land up the North Arm of the inlet, or more correctly the North River, which runs into the North Arm; but I was unable for the reasons already explained, to judge of its extent or availability for settlement by personal inspection.

CHEWT OBACCO BAY.

Following down the coast, the next bay of any importance is one locally termed Chew Tobacco Bay. This is a tolerable harbor for small vessels in westerly winds.

The LAND is good, particularly at the south-east end, where the luxuriance of growth and superior description of the native grasses on some old clearings, attract attention.

Reserve.—As this is the only tolerably safe bay to run for shelter between Paterson Inlet and Port Adventure, there ought to be a village reserve of 80 acres at the south-east end.

HALF-MOON BAY

Is also a sheltered harbor. The land is superior in quality, not very thickly timbered, and a considerable area of it available. Some of it, on the south side, has been cultivated by Mr. Harrold, and some Germans who have been located for upwards of twelve months. The results of their labour testify to the productiveness of the soil, and the practicability of colonizing Stewart Island.

Reserve.—I would recommend a village reserve of 100 acres as per enclosed sketch. I understand that there is a tolerable island track to it from Kaipipi Bay, Paterson Inlet, by which settlers along the north shore of that Inlet might obtain supplies should the stress of weather obstruct the navigation, which, I should imagine, is of by no means infrequent occurrence.

PATERSON INLET.

Four miles to the south-eastward of Port William, is the largest of the harbors on Stewart Island, and may be more aptly termed an inland sea. Though the entrance is wide and deep, owing to its shape, the large surface of water affected by the prevalent and most powerful winds (those from the westward), and the level character of the interior between it and Mason's Bay, its navigation is more tedious and hazardous than any of the other harbors. The only tract of open country of any extent in the Island lies in a series of valleys connecting Mason's Bay with Paterson Inlet; thus the waters of the latter are exposed to the full violence of the westerly gales, the force of which is concentrated by their compression in the gorge through which they pass. I was unable to examine this harbor as minutely as I have done most of those on the Island, owing to the severity of the weather when I was there. I propose shortly to revisit it, when I will be in a better position to furnish a satisfactory report.

Reserve.—In the meanwhile, I would recommend a village reserve of 50 acres in Glory Cove, as per sketch. The land in the vicinity, though hilly, is good. It is a commodious and safe harbor for vessels drawing up to six fathoms. Also, a reserve of 100 acres at the south-west arm of Kaipipi Bay, locally called Half Moon Bay. This is a convenient place of call for supplies for settlers living on the upper parts of the north shore, and there is good and sheltered anchorage under the lee of the bold headland from the prevalent winds.

PORT ADVENTURE

Ten miles southward of Paterson Inlet, is a good harbor, easy of entrance, with any wind, for small craft,—there being room to beat, deep water, and safe anchorage.

The LAND on the shore is good, and not so hilly as at Paterson Inlet; more particularly along the banks of Heron River, the navigation up which is easy for boats drawing five feet water. The scenery is very picturesque: there is a series of small sandy beaches, with gentle slopes to them, affording beautiful sites for dwellings and cultivation.

Oyster Cove is also well adapted for settlement, the water being deep, and the land as well sheltered as in Heron River; indeed, small vessels could find shelter here from any wind. This cove has obtained its name from the fecundity and excellence of its oyster beds, which, I am sorry to say, have become almost depopulated, owing to the want of protection from abuse; though I have little doubt that, with judicious supervision, they will become, in a few years, as prolific as formerly.

Reserve.—I would recommend a reserve of 200 acres for a township at White Beach, between Red Sand Cove and Heron River, as per sketch. This site has an easterly aspect, is sheltered from the prevalent winds, and boats can land at any state of the tide.

TIMBER.—Principally black and red pines, and iron wood in great abundance.

LORD'S RIVER,

Three-and-a-half miles to the south-west of Shelter Point, the southern entrance of Port Adventure, is a well-sheltered harbor for small vessels or steamers, the entrance being contracted, and, though land-locked, is difficult of ingress or egress; the latter can only be effected in easterly or northerly weather. It is a narrow arm of the sea running in a westerly direction. Boats drawing from seven to eight feet can go up it at high water as far as the Rapids (which are about four miles from the anchorage ground), where the river becomes a rapid creek, which...