G.—l.

4

Rakauwahi has since been disposed of to the Government, and about 150,000 acres of excellent land has been purchased, or is being negotiated for on behalf of the Government, at a moderate price. I can see little change in the Natives during the past year ; they still have the same love of spirits, though some of the leading chiefs have made and are making strong efforts to restrain the intemperate habits of their people. The numbers of cases brought before the Court in which Natives have been concerned are as follows: —Between Natives only, nine ; between Natives and Europeans, in which Natives were plaintiffs, two ; in which Natives were defendants, twenty-eight. During the year one Native was committed for trial for cattle-stealing, and found guilty in the Supreme Court; and one sent to gaol for two months with hard labour for an aggravated assault upon a European. In general the conduct of the people has been good. The principal public work performed by the Natives during the year has been clearing the line for the telegraph and erecting the poles. Several objections were raised by the various owners of the land through which the line has been carried, but they may justly be ascribed to the people not fully understanding the objects of the telegraph, as in every instance, on the matter being fully explained to them, the opposition was at once withdrawn, and now that it is in operation, they acknowledge it to be a most important and useful work, and constantly avail themselves of its services. A considerable number of the young men are constantly employed in the forests squaring timber; and owing to the high price of kauri gum, a large number have been engaged digging that article and preparing it for the market. The crops of potatoes, kumaras, maize, &c, have been very good, and a large extent of land has been under cultivation, but I believe there is likely to be a scarcity of provisions before the end of the season, owing to the quantity of visitors from other districts attending the Land Courts and the number of native " huis " held since the crops have been harvested. The health of the natives has not been so good as formerly, and several deaths have occurred. During the first three months of the year the measles visited every settlement—in fact, every house ; and though only a few children died at the time, since then several persons who had been weakened by the measles have been carried off by low fever. The district has suffered a severe loss in the death of our most important chief, Mohi Tawhai, of "Waima, which took place on the 14th of March last. The old chief (he was upwards of eighty years of age) had just left church, and was mounting his horse to return home, when he overbalanced himself, and fell over the horse to the ground. Assistance was immediately rendered, but without avail, as he never spoke again. His funeral, which took place on the 18th, was attended by large numbers of Natives and the whole of the respectable Europeans in the district, who sincerely regretted the death of a truly good man, who for the last forty years had been a firm friend to the Government, a staunch supporter, and a man of whom no one could say an evil word; brave in battle and wise in council. Ho distinguished himself as a companion in arms of the late Tamati Waka Nene during Heke's war (so well described in Judge Mailing's "War in the North "). For his services rendered to the British troops he received a pension, and also a medal for personal valour. For many years he was an assessor, and his opinions were always received with respect. It will be a long time before we can find another to fill his place. A medical man is much required in this district, but there are too few European settlers to support one unaided by Government. Though I am not able to report any great amount of progress amongst the people under my charge, I can safely say that they have in no way gone back. They still show the same eagerness for schools for the education of their children. Two new schools have been opened during the past year, towards the erection of which the Natives subscribed the sum of £100, and I am glad to say that the Native subscription in support of the teacher is in every instance paid up. Between 200 and 300 Native children are now receiving instruction in the English language in this district. At Waimamaku the Natives have erected at their own expense a handsome church, at a cost of about £300. It is proposed that two other schools shall be erected as soon as possible on the banks of the river, to meet the educational wants of the people. I have, &c, SpENCEE YON STiiEMEE, The Hon. the Native Minister, Wellington. liesident Magistrate.

No. 4. Mr. E. M. Williams, E.M., Bay of Islands, to the Hon. the Native Ministeb. Sie ,— Bay of Islands, 19th May, 1875. In forwarding my annual report of the state of the Natives in this district, there is but little change to communicate since my last report in May, 1874. The Natives, generally, are pursuing their usual avocations, and peace and quietness may be noticed throughout the district. During the month of June, 1874, apprehensions were for a time felt that a disturbance would take place in consequence of a hostile movement on the part of the late chief Moihi Tawhai, with reference to a disputed gum field called Eakau Waahi, in advancing an armed party to oppose certain Natives who were at the time digging gum on the land in question, and who immediately armed themselves and prepared to resist by force any attempt to interfere with their proceedings. Having at the time furnished the Government with full particulars of this case, I do not deem it necessary, in the present report, to cuter into any detailed account, merely stating that, after much time spent in negotiating between the parties, who had fortified themselves upon the ground, it was agreed that the question should be settled by arbitration, each party to name a certain number of arbitrators.