B.—No. 3a

Sub-Enclosure No. 2 of Enclosure No. 10. Office of Keceiver of Laud Revenue, Invercargill, 10th May, 1864. Sir,— I have the honor to acknowledge receipt of your letter of 6th ultimo, enclosing a tracing of land set apart by the Provincial Government of Southland as security for a proposed loan of forty thousand pounds (£40,000), and requesting me to examine and report on the value of the said land. I have accordingly examined the land, and have the honor to report that, although not in my opinion of just-rale intrinsic value (the portions near the river particularly) being principally of a gravelly nature, and more adapted for pastoral than agricultural purposes, and, moreover, a portion of it being liable to be annually inundated, it will, nevertheless, from the advantages of its locality as a whole, lying as it does on each side of one of the most important highways of the Province, always maintain a fair commercial value. The portion subject to floods is that comprised between the Dipton and Oreti Rivers, and along the eastern bank of the Oreti from the confluence of the Dipton northward. I return the tracing as requested. I have, &c, A. J. Elles, Receiver of Land Revenue. The Honorable the Colonial Secretary, Auckland. Sub-Enclosure No. 3 of Enclosure No. 10. THE CHIEF SURVEYOR TO THE llO>'. MAJOE RICHARDSON. Chief Surveyor's Office, Southland, February 19, 1865. Sir, — I have the honor of submitting the following information respecting the block of laud, reserved under the " Bluff and Invercargill Railway Loan," No. 2, 1863, and the " Oreti Railway Loan," No. 1, 1864. The land reserved under the " Bluff and Invercargill Railway Loan," consists of 22,400 acres. One block, containing 4,160 acres, has been surveyed into sections, and the whole of the reserve is at present being triangulated. A small portion of the reserve is timbered, but the principal part consists of open plains (under Licence), the greater portion of which is good agricultural land. The land reserved under the " Oreti Railway Loan, No. 1, 1864," comprises 65,400 acres. Part of this, Blocks fifteen (xv.) aiid sixteen (xvi.), 8,000 acres in the Jacob's River Hundred and a portion of Block two (n.), Aparima Hundred 3,129 acres has been surveyed into sections, aud is excellent agricultural land. The whole of the reserve has been triangulated. It includes about 800 acres of the spar bush. The rest of the reserve, with the exception of a few swamps of no considerable area, consists of open plains, the greater portion of which can lie classified as good agricultural land. I have &c., Joins' H. Baker, Deputy Chief Surveyor. •J. L. C. Riciiaedsox, Esq., Postmaster-General.

19

FINANCIAL CONDITION OF SOUTHLAND.