the reflection will not be upon us, for not cautioning them as to the extensive nature of their operations; and any loss they sustained would be fully repaid by their attentions being diverted from more precarious and dangerous pursuits; and directed to the cultivation of industrious habits, that will, together with the mild and conciliatory principles of Christianity, promote civilization, harmony, and peace; and if such is the happy result of the report of an anticipated drought of seven years, amongst them, we shall not regret being unable to trace its authenticity to any individual source; but rather congratulate ourselves on its having caused a more important feature in their improvement than we could have been led to believe, when first it circulated amongst them. Men of strong natural passions and propensities, as the New Zealanders, must, if lazily inclined, be stimulated to habits of industry; which, with some degree of prudence, may be easily accomplished; as they are naturally possessed of active and avaricious minds; which, if properly directed, will furnish us with more pleasing demonstrations of native character; than those qualities might lead us to expect; and the further developement of their physical powers and mental capacities, will always furnish an interesting study for our investigation and research. I must, however, suspend my opinion as to the erection of a Mill at the Orokohai, till I have had yours; and have informed the natives accordingly; but should you coincide with my views on the subject, the following are the terms which I shall propose for your consideration and the natives'. First that they lodge a sum of £60 or so as a deposit in advance; to ensure the services of a man to commence the undertaking; who would be paid a certain sum for going down to report on, and inspect, the site for the Mill, as well as to furnish a statement as to the most reasonable terms for its construction and completion; the work to be, when finished, inspected by a skilful mechanic; and the Mill to be a small, convenient size that could afterwards be managed by the natives. The further payments to be made at certain periods, to he hereafter fixed,- say a certain number of pigs, every two or three months, till the whole is paid; and the former sum of £60 to be kept in hand till the Mill is completed and inspected; that it may be finished according to agreement; and as the erection of a house forms an expensive part of the work, perhaps the natives would do that part themselves; and thereby facilitate the work, and moderate the expense attending it. I remain. my dear Sir, yours faithfully, (Signed) Don. McLean.