the compensation money, I caused it to be secretly conveyed on board the ''Victoria'' and prepared to follow upon the arrival of Messrs. McLean and Wills from Waingaihu, they reached me on the 4th Inst. and informed me that after much trouble they had been enabled to effect the object of their mission although the original block was much reduced. Previous to my departure I informed Te Mawai and the principal chiefs of my intention and of my reasons for taking this step, stating that I did not consider myself authorised to make the great concessions required, without first consulting your Excellency on the subject, they appeared much dissatisfied the more especially as they had heard a report of the intention of the settlers to remove. In conclusion I beg leave humbly to observe that the Natives of this district have from the ineffective state of the Police force (which consists of a Police Magistrate and one Constable) conceived a thorough contempt of our power and from the fact of many petty thefts having passed unpunished from the want of means of bringing the offenders to justice, they consider the authorities incapable of enforcing the laws, and look upon the settlers as wholly dependant upon