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voured to carry into effect the wishes of the Council with as much promptitude and care as if the course taken had been that recommended by myself.

I am glad to be able to speak of Mr. Balfour’s survey at the Sugar Loaves as a thing accomplished. This work is done, and once for all. The total cost of the survey, with report and plans and estimate for a harbour, will be within £1,050; and this will include a fresh and minute survey of the present anchorage.

Even should the report of Messrs. Balfour and Doyne show that the works required will be of such magnitude as to be entirely beyond our reach at this present time; I am satisfied that it will be found to have been right to make the survey. That a harbor will eventually be constructed at the Sugar Loaves appears to me almost a certainty. That situation is probably far preferable to any other on the coast of the Province for the purpose, and the large district of uniformly fertile country of which it would be the port will require, and will eventually be able to pay heavily for, a proper outlet for its produce. But if, after having obtained the most reliable information within reach, it should appear that some years must yet elapse before we have strength sufficient for the enterprise, it is better to know definitely that such is the case, in order that our farmers may in the mean while devote themselves systematically to the production of those articles of export, which are least injuriously affected by the present costly method of shipping goods.

The hopes which have been entertained of finding petroleum, of good quality, and in remunerative quantities in this district, are for the present somewhat abated; that such is the case is partly due to the slow progress of the boring operations, but, in a greater degree, to the somewhat unfavourable tone of the report of the Colonial Geologist, which has recently been published. In this matter again it is well that we should be prepared for failure and that not too much of the capital and energy so much needed for developing the agricultural capabilities of the Province should be employed in a very hazardous speculation.

At the same time I would observe that Dr. Hector, not having personally visited the district, has had to rely on very imperfect information; and also that whilst giving an unfavourable opinion of the quality of the oil hitherto obtained, he draws attention to the fact that great variations of quality are known to occur in some oil districts within the distance of a few miles. With reference to the probable quantities in which the oil exists, I cannot but believe that if Dr. Hector were personally to inspect the indications, he would come to the conclusion that their source, however deep seated, must be in some very considerable deposit.

To turn to the other mineral product to which we have long looked with hope—the iron sand—I am not able as yet to give you any further information with regard to it than is contained in letters which have been already sent down to the Council, but I expect to receive by the next mail from England a full scientific report on the subject, both as regards what has hitherto been effected in the way of smelting the ore, and generally as to the probability of its being profitably worked either for colonial use or for exportation to England.

The company to which, with your approval, I made a conditional offer of the beach from New Plymouth to the Waitara, has also, on my recommendation, taken scientific advice as to the value of Mr. C. Martin’s patent, having engaged Dr. Noad, a scientific man of long-established reputation, to investigate the subject. Dr. Noad’s report as to the quality of the samples of steel said to have been produced by Martin’s process is, I understand, very favorable, but in order to remove all doubt as to whether these samples were actually prepared in the manner stated, a quantity of sand is to be smelted under Dr. Noad’s personal inspection. The result of this experiment will also probably be heard by the next English mail.

Leaving the consideration of these more speculative sources of wealth, I observe with satisfaction that there is a continual, although rather too gradual, movement of the agricultural population from the neighbourhood of the town to the country districts.

After the long years of uncertainty and danger through which we have passed, it is not surprising that many should fail to perceive that the time has at last come when they may with prudence re-invest their capital in farming operations and build up on their farms. Many persons have been expecting a sudden change from a state of war to a state of peace. No such sudden change has taken place, and there is perhaps at this moment fighting going on in the southern part of the Province. Nevertheless, the chances of any fresh im-