DUNSTAN.

Otago Witness, Issue 664, 20 August 1864, Page 22

DUNSTAN.

(FBOH THB DAILT TIMBS CORRESPONDENT.) Dunstan, 15th July. The late flood in the Molyneux has by no means tended to the improvement of business matters ; still, they are not quite so bad as anticipated, there being a slight reaction in favor of the river, which has gone down to within about a foot of its old low level. The news of the recent gold discoveries in the Canterbury district are creating much excitement, a number of miners having already left for that quarter. On Saturday, when the Dunedin coach arrived, there was a large demand for the Daily Times and Witness, people being very anxious for the latest particulars. As there are no newspapers now brought by the Tuapeka mail, Saturday's coach brings us a rare budget ; •which, by-the-bye, is a most inconvenient arrangement, especially for the mercantile classes. Why the Tuapeka mail does not bring newspapers along with our letters it is difficult to say, it surely cannot be in consequence of the bad state of the roads, as they are in capital order nearly the whole way. The mailman to Queenstown always succeeds in taking his bulky mail through in one day on horseback ; and if one horse is insufficient, he employs two. That, Jthen, surely cannot be any reason why Messrs Cobb and Co., in travelling a like distance over a no worse road, should not do the same. If we received papers by the mail arriving via Tuapeka, on Thursdays, we should have no cause to grumble, but to be from Tuesday to Saturday thoroughly ignorant of what is taking place around us, is by no means what we bargained for ; consequently, there is just cause for complaint.

The wholesale dealers in wines and spirits had a meeting on Saturday night last, at the Dunstan Hotel, for the purpose of memorialising the Government so as to procure a reduction in the license fee from twenty to ten pounds per annum. The dealers in those articles claiming the right to be put upon an equal footing with their brethren in Dunedin.

Mr George Brodie occupied the chair. It was agreed that a memorial be drawn ap and signed by the wholesale dealers in both townships, afterwards to be submitted to his Honor the Superintendent. A committee, to give effect to the resolutions of the meeting, was appointed, which terminated the proceedings, after the usual vote of thanks to the chairman.

A rumor was current during Friday that a "party of men had obtained a large amount of gold somewhere in the neighborhood of the Nevis, and had come in for a prospecting claim, but unfortunately the joyful intelligence proved a mere delusion, and was too " too good to be true."

The adjourned Auction Bazaar in aid of the Dunstan Hospital funds comes off this evening, and promises to be as great a snccess as the sale held a fortnight since. With the proceeds of the other two sales at Cromwell and Manuheriftia, it is confidently expected that the liabilities of the Institution will be wiped off, which, doubtless, will be a source of great relief (o the committee, who these last few months have had a very trying time of it.

Mr Holt, the lessee of the lignite pit, has his new water wheel and pumping machinery already fixed, and hopes to have everything in thorough working order in the course of the present week. The water wheel is an "overshot," measuring ten feet in diameter by two in breadth, built on the most approved principle, by Mr Adams of this town. The pumps are cast iron, six inches in diameter, having a two-feet stroke. This is the most perfect pumping machinery in the province, and which will doubtless perform all the work required of it.

At the Kawarau, mining matters are very brisk, and many large yields of gold are reported. At Poverty Point, a party of three men took out, the week before last 78 ounces. Last week, in consequence of having to contend with so much water, they amalgamated with the adjoining claimholders, also a party of three, and from the proceeds of two days' washing, obtained eighty-two ounces of gold. Not more than a month ago, the first party of men came to the river hard-up, having to go iv debt for the purchase of a cradie, and are now on the high road to fortune! The claims in which this large amount of gold was found, were previously worked upon a false bottom, and abandoned as wrought out. From the appearance of the ground there is every probability of this large yield continuing for a considerable length of time. Quartz-reef Point on the Clutha is rapidly becoming a place of considerable importance, while the machinery employed is of great extent At this part of the river there exists a long narrow island, which divides the stream into two, one of which has been diverted from its original channel, the bed of the river being worked to great profit. Mr Grant, of Cromwell, has just constructed a large overshot water wheel for the " Doctor's " party, who hold a very rich claim there. It is at present the largest

wheel of its kind in the district, and measures twelve feet in diameter by two feet five inches in breadth. To the shaft will be fitted a drum of considerable size, capable of driving, at one time, three large Californian pumps. The wheel is to be supplied with a strong head of water, having a considerable fall. The power of the wheel, when in motion, is calculated to be equal to that of ten horses. The demand at the present time, in Cromwell, for mining machinery is greatly in excess of the supply. The carpenters, although working night and day, are unable to execute their customers' orders. Both the Kawarau- and Clutha have fallen to within a short distance of their previous low level, and a large number of claims are being re-opened. The damage done to the road by the bursting of the Pioneer Mining Company's dam at Rocky Creek,' has been repaired. It appears that had the roadway, where it cro=ses the creek, been constructed as it should have been, with a culvert, the sudden rush of water would have passed harmlessly away ; but instead of that it backs it up the gully, and forms a complete dam, so that the water must either run over the top or find its way through the rough and badly placed stones, of which this pirt of the read is constructed. The inhabitants are making great exertions to collect goods for the forthcoming Hospital Bazaar, on Saturday next, which promises to be thoroughly successful.