OTAGO.

Press, Volume II, Issue 51, 3 May 1862, Page 5

OTAGO.

(From our own Correspondent.) 1 hinedin, April 28th. I take advantage of the departure of tin- (u-elong, which is to sail to morrow, to forward you 1113' lirst communication as your "own correspondent" for Otago. In this, niv rirst letter, it may perhaps be advisable for mc not to conline myself with absolute strictness to mere news, but to allow myself rather more latitude than would be proper in regular weekly letters. The present state of the province of Otugo is peculiar. The province is in what may be called a state of suspense, it lias arrived at that poii.t in the march of progress where the iirst check is felt, and the anxiety of those interested in its continuance in the course upon which it has entered is naturally considerable. The tide of population, after flowing in for some time in a liberal stream has reached the " slack' , and the ebb has commenced. In like manner with the produce of the gold fields, which for some tune past has been falling oft" until now Jive or six thousand ounces is considered a tolerable escort for the week. The effect of these causes has been felt in trade which has latterly been decidedly dull, notwithstanding that the amount of work, in the way of building, road-making, &c. necessitated by tiie altered condition of the province, has a tendency to give an impetus to business of every kind. But although trade is dull, although escorts have fallen off, and population diminished, it ia nevertheless satisfactory to have to note that those best able* to form a correct opinion express themselvesaa being confident for the future. The experience of Victoria and of New South Wales has shown that all gold fields are liable to fluctuations in many instances of extra, ordinary extent, but that those fields which were thought to bo worked out years ago, have ever since been able to maintain large populations, and to keep up their returns of gold to an average rate that has completely falsified the predictions of those who prophesied a speedy termination to their productiveness. The fact appears to l>e, that every gold-field has to be worked over three or four times, before it can be said to be exhausted. In the first instance it is worked in a hasty and irregular manner, by the rushers eager to secure good claims on the "head" or "gutter," and despising small profits, in their anxiety to secure " pile claims." These men sink shafts and leave them unworked at the rumour of richer ground elsewhere, sometimes they will not wait to bottom their holes but take it for granted that the ground is no good because a few claims near them have yielded no prospect worth having. In many cases really rich ground is thus deserted without being rilled of its golden treasure, and future " fossiekers " reap the benclit of the e:;crtiou of those who sunk the shafJJs. But even under the most favorable circumstances, the first working of a head of gold i c never exhausted ; there is always something left for the fossicker, who by his wholesale system of washing is able to make a handsome tiling out of fctuflf that would not yield the barest subsUtance to the individual miner. Even after the puddler has done with the ground, there is usually enough gold left in it to pay for washing on •a more extended scale by steam machinery, or where water is very abundant by a system of sluicing. Moreover the development of quartz mining is usually found to commence as the other classes of mining get dull, and where properly conducted this is found to be a more certainly profitable business than alluvial working. Otago has only readied the conclusion of the iiiat of these stagey ' I speak of course- of the older and more productive gold-fields ! of Tuapika and Waitahuna, where the ground has been rushed and hurriedly worked, and whore now the miners arc beginning to bethink thcm-ii'lves of the advantagts of puddling and sluicing. I must however, tell you that it seems probable that another source <if wealth will soon be opened out, and that, therefore, the commencement of puddling on an extensive scale uiav be delayed i»r Rome time yd, 1 allude to the f;;c| that there i» a rush to a spit on the Tuap.ku river, soni L . miles from the ji;vvi«>uJy worked ground, and that the r.-p'irts respecting it, which .--omu reached iturn-din although l.ot very definite, arc .still oi such a nature «'t« to \iarrant tliL m .4 IjojH.'i'ul anticipations. It .ipju'ars that the new ground is in the immediate vicinity of a bush, and that the miin-rs will thus V>e aid" to niak<- .-mre of a supply of wood for fuel, and for propping and slabbi.-ij;. It is generally expected that there will be a steady population scttk.-d ther.-

luring the winter; and storekeepers and others nre establishing themselves then; already, with a view of taking advantage o* ,he w nter trade. Some news respecting the Wak.ittp was received lately in a v.undabout way, via Invercargdl. I say in a roundabout a-ay, for although within the Province of Southland, the Wacatip diggings are, as the crow flies, jis near to Punedin aa to Invercargill. It seems that the prospectors have abandoned :he deep sinking ami taken to working the surface, which |iaye them very well. Otaijo has lately luvn in the throes of a " ministerial crisis," but the paroxysm was hy no means severe. It was about as ({uiet an affair aa it ih well possible to conceive, and people "out of doors" took hardly any interest in it. The Executive gave in almost without a struggle. They knew that their case was hopeless, as the majority agaiut them was powerful and compact The whole, thing was done by the moving of an amendment to the reply to the address, to the effect that the House would be glad if his Honor would change his advisers. It was of course carried. The Executive resigned, and Mr. Dick the mover of the amendment was "sent lor. . The new Executive consists of Mr. Dick, who takes the ollicex of Treasurer and Secretary, Mr. McGlashan, Provincial Solicitor, and Messrs. Reynolds, Paterson and Kilgouv, without otiico. You will have observed by the local papers that an effort has been made to start a Ix'iievolent asylum. A subscription list was circulated, and I believe the subscriptions reached v respectable amount. With a view of assisting in this truly charitable object the Garrick Club were determined to make their first appearance for its benefit, and accordingly, on Friday last they made their deb tit. They played Money, and did it well; they had a full house and pleased their audience.; and to crown all they took nearly i'l7o; ao they have every reason to be satisfied By-the-bye, with regard to the theatre, 1 do not know whether your readers are aware thii the theatre by night is a horse bazaar by day. Such however is the case, and I may also add that it answers both purposes pivtty well. Those however who object to the smell of the stable, would be very glad if a regular theatre, were to be erected in Dunedin. This letter would be very incomplete were it to omit to tell you of the banquet given on Saturday night in. honor of Captain McLean, of the steamer Aldinga. The banquet took place at the Criterion Hotel, where about sixty gontleuii-n sat down to a magnificent spread, and all drank and made merry after the most approved English fashion. Tho chair was occupied by Mr Vincent Pyke, quomUun a member of the Victorian Parliament, but who, to use his own phrase, intends now to eschew politics and to nettle in Dunedin. There were also many other Victorians :it the dinner, and a fair sprinkling of old settlers, in fact it was the first public occasion of thy two classes meeting in a social manner. The object of the entertainment vvastue: presentation of a purse of 150 sovereigns to Captain McLean, together with an illuminated testimonial, setting forth the esteem and admiration of the subscribers. The presentation was accomplished in good style, and heartily acknowledged by tho recipient. The Omoo arrived at an early hour yesterday morning with the linglifh February maiL The Omeo loft Melbourne before ! the A ldinga, but the last named being much faster arrived first, and indeed is apjM>inted to start on the return voyatn? to-uiorrow. You will be pleased to learn that Mr. Crosbio Ward has made an arrangement, although oidy for a limited period (three mouths), for the conveyance of the mails between Otago and Melbourne. It is expected here that at he expiration of that period a more advantageous arrangement may be made by the Otago Provincial Government. The fundamental fault of the present plan is that there are two distinct contracts; one (Provincial; for the conveyance of mails from Melbourne to Otago, theotheJ (General Government) for their return. A memorial to the Provincial Council urging the consideration of this subject, is about to be circulated for signature. A t an early hour this morning n tire broke out in the Roya George Hotel, but was fortunately discovered iv time to prevent any serious mischief. P. S.—lnformation was received in Dunedin last evening of a supposed new rush to Maitnherikia, but its precise vicinity is not indicated. The Manuherikia is a tributary of the Molyneux, and Hows to the went end of the Raggedy flanges There were rumours shortly nft.tr Christmas of the discovery of gold in the same neighborhood, but they were not then confirmed. It is by no means improbable- that good diggings may now have bceu found Jn my next 1 hope to be able to furnish a more detailed account.