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labouring classes, which I confess lamat a loss to explain. For instance, His Honor states : —" These considerations account for the fact that a large quantity of mere labour cannot be rapidly absorbed— a few hundred could be at once in the settled districts extending from Auckland to and including the Waikato ; but it would take time ere the filtration to the out-districts could take place." But a little further down the following view is expressed:—" I have no doubt that the Province is capable of absorbing as great a number of labour immigrants as any other portion of the Colony of the same population;" and finally, "of first-class agricultural labourers also several hundreds would find immediate employment, as well as a steadily increasing number." I am thus explicit on the point in order that you may not be misled into the idea that this Government desires any reduction to be made in the 3,500 immigrants ordered for the Province of Auckland for the current year. I quite concur in His Honor's views that the greatest care is requisite in the selection of the immigrants. Those able and willing to work, and of good character, cannot fail to command employment at present in the Colony. In another Memorandum I have intimated to j'ou that you are no longer required to restrict emigration so that immigrants should only arrive in the spring and summer months. Immigration Office, Wellington, 14th April, 1873. G. Maubice O'Eoeke.

Enclosure 1 in No. 79. His Honor T. B. Gillies to the Hon. the Colonial Seceetaey. Sir, — Superintendent's Office, Auckland, 22nd February, 1873. In pursuance of the promise contained in my letter to you of the 30th December ultimo, I have now the honor to lay before you some remarks on the subject of immigration to this Province. I should have sooner done so, but considerations of health necessitated my absence from Auckland for a time, and since my return public duties prevented my indulging in the reduction of my views to writing. To explain my ideas fully and accurately would occupy too much of my time and yours ; aud I would therefore ask you to consider the following remarks rather as a summary than as a full exposition, and as applicable to immigration to the Province of Auckland specially. Each Province has its own peculiarities as to its capacities for receiving and absorbing immigrants, and it is only upon a thorough knowledge and appreciation of these peculiarities that any successful system of Colonial immigration can be carried on. The peculiarity of this Province (I speak from some little knowledge of all the Provinces) is its special adaptation for the location of small settlers, in contra-distinction to (on the one hand) the settler who has capital and the desire to acquire large estates, in order to amass wealth, and to (on the other hand) the mere labourer, whose sole capital is his muscle, and who for years must depend on the capitalist for employment. Not that either of these two classes would, in judicious numbers, fail to find successful outlets for their energies, especially the latter, but that the peculiarity of this Province as distinguished from all other portions of New Zealand, is its adaptability for the small settler—the man who, having sufficient capital to tide over the first year or two of a settler's life, aims not at making a fortune, but at creating by his own industry a comfortable home for himself and his children after him. This peculiarity arises from two causes: First, the geographical features of the country; and, secondly, from the position of its lands available for European settlement, as related to the lands still held by the aboriginal owners. Both of these causes have largely influenced the character of the settlement of this Province hitherto, and must continue to do so. The geographical features to which I refer are —(1.) The absence of large continuous tracts of really good lands for settlement. There exists a large quantity of good settlement land, but scattered in small patches, with very inferior land between; (2) the existence of these settlement lands in the neighbourhood of navigable streams, estuaries, bays, or harbours with which the Province abounds; (3) the great north and south length of the Province, compared with its width —extending as it does over nearly five degrees of latitude, more than one-third the length of the whole Colony; (4) the timbered character of the country, and the almost entire absence of naturally grassed lands. These features have caused, and will still necessitate, attempts to proceed in an irregular and isolated manner, rather than in a more systematic manner. Here again the acquirement of lands from the Natives has been as irregular as the natural features, and with similar consequences. A block of a few thousand acres here, and another of a few thousand there (and these interspersed by Native reserves), has been the rule, without any continuity of purchase. And these isolated blocks have seldom had more than a small proportion of good settlement land in each. These, and other almost as important causes, to which I cannot at present advert, have caused the settlement of the Province to take the form of scattered isolated settlements. I need only enumerate Ahipara, Kaitaia, Mongo, nui, Wangaroa, Hokianga, Waimate, Kawakawa, Russell, Wangarei, Waiau, Albertland, WaipuMangawai, Omaha, Matakana, Mahurangi, Puhoi, the Wade and several other settlements less isolated, ".11 north of the city of Auckland, whilst such isolated settlements are scarcely less numerous around the coast to the south, the interior being (except the Waikato) possessed by the Natives. These considerations account for the fact that a large quantity of mere labour cannot be rapidly absorbed. A small quantity — i.e. a few hundreds—could be at once absorbed in the settled districts, extending from Auckland to and including the Waikato ; but it would take time before the filtration to the out-districts could take place. On the other hand, these conditions are eminently favourable to the location of small settlers dependent on their own family exertions rather than on hired labour, and the formation of small special settlements of immigrants united together by common ties of local origin, or of social or religious views. The variety of climate, of scenery, of lands, and of water, is such as to present inducement to every variety of taste. Every encouragement should therefore be given to the small settler class in your immigration arrangements for this Province, especially such as are familiar with bush work aud fishing. As to labour immigration, I have no doubt that this Province is