D.—No. 23.

In placing before you the above particulars of the action taken by the late Novel Industry Board and the Hon. Mr. Francis, in regard to the application of the Victorian Woollen Company, I may be permitted to hope that the Government will favourably recognize the industry and perseverance which have so successfully surmounted difficulties of no ordinary description, and firmly established an industry so advantageous to Victoria. I have, &c, The Hon. the Commissioner of J. Gutheie, Trade and Customs. Inspector-General of Customs. Copy of Minute by the Hon. J. Q. Francis. « Without expressing an opinion binding on the Government, or even implying assent of the Legislature to any premium at this late date to the applicants, the Commissioner of Customs must decline instructing an official inspection of a quantity of woollen tweed or other cloth less than the 5,000 yards mentioned in the Board's final report, dated 19th June, 1866. " 16th April 1869. " " J. G. F."

Enclosure in No. 1. Department of Trade and Customs, Sib, — Melbourne, 22nd May, 1868. We have the honor to state that, in compliance with the request of your predecessor, the Hon. J. G. Francis, we visited the establishment of the Victorian Woollen and Cloth Manufacturing Company, at Geelong, on the 12th instant, for the purpose of inspecting certain cloths which the Company had manufactured, and reporting relative thereto for the information of the Government. It now affords us considerable pleasure to be able to state that, both in quality and colouring, the cloths submitted to us far exceeded our expectations, and are, in our opinion, well adapted for general use, and likely to be in great demand if produced at a moderate price. We measured 5,343 yards of various makes which the Company had ready for the market, and in addition there was a considerable quantity in course of manufacture. In furnishing particulars, we conceive from the tenor of our instructions that we have fulfilled the object of our mission; still it may not be considered out of place if we here give a few particulars connected with this highly interesting establishment. The works are situated on the banks of the Barwon, about a mile from Geelong, and at the time of our inspection were in operation. They appear to be in excellent order, well arranged and well managed. The operations of spinning and weaving are carried on by a beautifully-constructed engine ■of twenty-five horse power. The production of the factory at the present time is about 1,000 yards of tweed per week, but when in complete working order, and the persons employed have been accustomed to the work, a much larger quantity will be made. This establishment, it may be observed, gives employment to seventeen men, twenty-four women, nine boys, and two girls, who earn fair wages, viz., men, 355. ; women, 17s. 6d.; lads and girls, Bs., per week. The Company have incurred great expense in establishing this industry, and the outlay on factory buildings, machinery, &c, amounts to £15,717 13s. Having given the foregoing brief particulars, we now beg to record our opinion that the Victorian Woollen and Cloth Manufacturing Company are entitled to much commendation for the enterprise and perseverance evinced in establishing among us so important an industry, and we consider they are highly deserving of the sum of £1,500, conditionally awarded to them in June, 1866, by the late Novel Industry Board. We have, &c, R T. Sargood, Thomas Alston, The Hon. W. Bayles, J. Gutheie, Commissioner of Trade and Customs. Inspector-General of Customs.

No. 2. Mr. J. Gtjtheie to the Hon. the Chief Secretary. (C. 69-147.) Department of Trade and Customs, Sir,— Melbourne, 21st April, 1869. In returning to you the accompanying letter from the Hon. the Chief Secretary of New Zealand, requesting information respecting local industries in Victoria, I am directed by the Hon. the Commissioner of Trade and Customs to forward to you, for the information of the New Zealand Government, the enclosed copies of Eeports of Boards appointed to deal with applications for rewards for new manufactures and industries, which will show the course adopted by this Government, and the enterprises to which rewards were given. With respect to the last paragraph of Mr. Eolleston's letter, I am to request that reference may be made to the letter and report enclosed with respect to the Victorian Woollen and Cloth Company, by which it will be seen that the manufacture of tweed cloths has been successfully established. The Company has not yet commenced to make blankets, but intend to do so shortly, and another factory is now being erected at Geelong, the machinery for which has been ordered expressly for the purpose of blanket making. As regards beetroot sugar, though prizes have frequently been offered by Agricultural Societies, and large sums have been spent in the endeavour to establish the manufacture, it has not succeeded in this Colony. I have, &c, J. Giithbie, The Hon. the Chief Secretary. Inspector-General.

4

CORRESPONDENCE RELATIVE TO NEW