OTAGO.

The following is the prospectus of the O'jdago Witness. The objects of the proprietors are, in the first place, to supply the settlement with the means of advertising, and with the news from home and other quarters, carefully selected and adapted to the demands of an intelligent public; and, secondly, to circulate such accurate statistics, and solid information in regard to the state and progress of the Settlement, as shall be useful to the Settlers themselves, and of abounding interest to their friends and well wishers in the Old Country. It is therefore proposed, on the arrival of mails, especially from England, to give a condensed summary of matters of prominent interest in every available department, and afterwards to devote a moiety of the columns, in way of expansion, by extracts from periodicals of the highest standing; and to dedicate the remainder of the columns to matters of local interest and discussion. The principles of the "Otago Witness" are to be in harmony with the Scheme of the Otago Settlement, as propounded by its originators, and set forth in the ' Terms of Purchase' and ' Institutes.' In Religion, evangelical ; and in Politics, adhering to the principles of the British Constitution—maintaining the rights and privileges of Local Self-Government, and of civil and religious liberty in the widest sense. These objects and principles being held in view, the colums of the " Witness," so far as space will admit, will be open to communications from all parties—full and free discussion being held to be vastly important, whether to detect error, or to call forth facts and arguments in support of truth— provided these subjects are handled with fairness and decorum, and an entire freedom of everything like personality, and that there be nothing repugnant to morality and religion, or derogatory to the sacredness of the Holy Scriptures. They also hold, that where there is but one Newspaper, the guardianship of these views and principles is too much to be intrusted to any one man, and it will therefore be placed in the hands of a Committee, responsible to themselves and the public for giving fair effect to this Prospectus. The "Witness," for the first Quarter, willjbe published but Once a-Fortnight, deliverable on Saturday Morning; but the demands of the public for a Weekly or more frequent issue, will be carefully watched and acceded to, as far as means and other appliances can be progressively, commanded. On Monday, the 3rd inst., we had the pleasure of witnessing the launch of the first vessel built in this Settlement, We have not been furnished with her tonnage or other particulars, which we hope to be able to give in our next. Though the weather was unpropitious, yet we observed a goodly sprinkling of company, and the whole affair went off very satisfactorily." The principal part of the journal is occupied by a well deserved attack upon a petition, got up to the Governor by a few persons calling themselves " The Settlers of Otago," desiring the "Sectarian'" Charter of the Settlement to be altered. We cordially agree with our contemporary in protesting against any breach of that public faith, under which the first Colonists were induced to settle at Otago.

LIST OP CABIN AND FORE-CABIN PASSENGERS BY THE " ISABELLA HERCUS." The Itev. J. Wilson, Mrs. Wilson, and family. Mr. and Mrs. John De Mole (for New Plymouth). Mr. and Mrs. Heath. Mr. Henry Sidebottom. Mr. Richard Wormald. Mr. Shand.'j Mr. Charles Shand. Mr. Thomas Shand. Mr. George H. Edgar. Mr. Burrel Parkerson. Mr. Knowles Parkerson.

Mr. I. S. Willis, Surgeon-Superintendant. Mrs. Willis and family. Mr. Humphrey Anderson. Mr. and Mrs. Willcox. Mr. Shears. Mr. Tate Platt. Mr. and Mrs. Stuart. Mr. Hayter. Miss Hayter. Mr. Hugh Bell. Mr. John Percy. Mr. Bruce. Mr. Batchford. Mr. Klipsch. THE FIRST SCHOOL HOLIDAY AT LYTTELTON. On Tuesday last, the 11th inst., the Bishop Designate delighted the children of the commercial school at Lyttelton, and some of his grown-up friends too, with a thoroughly English treat, previous to his intended departure. About half past three o'clock in the afternoon about 50 children, assembled in the schoolroom. A procession was formed by the girls first, walking two and two, the boys following, accompanied by the Bishop Designate, the clergy, in their academical robes, and the master, and .assistant master of the school. Two lads, bearing very handsome banners, brought out from England by the Bishop Designate, marched in front, two more walked between the girls and the boys, and two brought up the rear. The two foremost banners bore devices, representing the holy doctrines of the Trinity, and the Atonement, the latter of the two devices being the well known symbol of the Pelican tearing her breast with her beak to nourish her young with the blood, with the inscription, " Christ so loved us." The devices of the other four banners were the scriptural emblems of the four evangelists, derived from the visions of Ezekiel, and of St. John the Divine. After walking round the town, the little folks came to a halt upon the lawn in front of Mr. Godley's house, where they soon formed a very pretty group, seated upon the gi'ass, to view the ascent of a fire balloon. The wind, however, at this time, was too high, and the first balloon took fire. Another was reserved till after prayers. Accordingly, after a little rest, the procession formed again in the same order as before, and moved towards the church. The evening service over, the hymns having been chaunted by the children, they were taken back to Mr. Godley's lawn. The wind had by this time lulled, to which circumstance was in a great measure, owing the signal success of the second balloon, more than compensating for the failure of the previous attempt. It was amusing, from our elevated position, to see the good folks of Lyttelton attracted to their doors, and the inhabitants of" Charlotte Jane Square" to the entrances of their mansions, to witness th c novel sight of a balloon ascent; and scarcely did the hearty shout of the children testify more delight than the pleased looks of the older spectators, as this pretty and interesting object soared aloft through the clear bright atmosphere, and became almost invisible from the great height to which it rose. We could not but imagine the surprise of our friends at Christchurch, if they should'happen to be looking up at the time, for we doubted not that it would be vidble to them.

Not the least interesting part of the proceedings to our young friends consisted in the tea, bread and butter, and cake, which followed next, the Bishop Designate having first led them in singing the Grace before meat. One point at least was established beyond question, which we cannot doubt that the Bishop Designate, on his return, will impress upon his English auditors, namely, that the appetites of their young ones, and we may add the rosin ess of their cheeks, and the strength of their lungs, and the joyousuess of their spirits, are not likely to be impaired by their being transplanted to this congenial soil and climate. The proceedings of the day concluded with the exhibition of a Magic Lantern in the Schoolroom.