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ance with Maori custom being illegal according to our laws, the so-called husband has therefore no legal claim for redress : hence the frequent resorting to the old custom of " muru." As so many tribal feuds emanate through these illicit sexual connections, I may perhaps be permitted to suggest that a code of rules be framed which would give the Native assessors some limited power in settling these questions, providing their decisions were first approved of by the Resident Magistrate of the district. I believe, if it were feasible to establish such a system, a system which I cannot but think would be acceptable to the Natives generally, inasmuch as it would not only protect the weak, but tend to improve the moral condition of the Native race, and lead in the future to a more healthy morality amongst them. The Tainui still attend their church regularly, and the Ngatitahinga have had their church consecrated by the Eight Reverend the Bishop of Auckland; the Natives also resident at Aotea have prayers every morning and evening. The Native store here has been formed into a company, and duly registered as such in accordance with the provisions of the " Joint Stock Companies Act, 1860." The Ngatitahinga and Coast tribes, following in the footsteps of their Eaglan relatives, have opened a store at Port Waikato, under the management of Wirihana Te Ao-o-te rangi. The Natives appear to take great interest in the development of their company; they are, however, placed at a great disadvantage through their ignorance of the English language, and the absence of all knowledge of mercantile pursuits ; but the greatest barrier to the success of such undertakings amongst them is their own inertness. Their want of energy is so great, that although they have resources at their very doors, they fail to avail themselves of them and turn them to good account. Perhaps, in concluding this portion of my report, I shall not be deemed out of place if I draw your attention to one or two matters that have struck me as likely to prove beneficial to the native race and improve their social condition. Now that the Government are' purchasing so many large blocks of land, would it not be advisable to initiate some scheme by which those of the sellers who preferred to take an annuity might do so, instead of receiving full and direct payment for their interests ? This plan, if appreciated, would provide the Natives who embraced it with means of support in their old age. Could not also certain portions of land be reserved from the large tracts of country now being acquired by the Government, as endowments for Native schools, which, when their value increased, would help to support those institutions ? Educating the rising generation of the Native race will no doubt assist materially in lessening the present difficulties ; however, I cannot but think that a great deal more good would be obtained if some establishment were founded in conjunction with the schools, where the boys when sufficiently educated could be placed to acquire a knowledge of different trades, which would not only place them in a position of earning a livelihood, but also be the means of exciting a desire amongst them to excel in the trades adopted, in order that they might not be inferior workmen to the European tradesmen. Disposition. No change is perceptible in the disposition of the tribes residing in the vicinity of Eaglan or Aotea, all of which appear anxious to maintain their character for loyalty, which they so well earned in the days of their old chief, Te Awaitaia (William Naylor). Since I had the honor of accompanying you to Taranaki in the early part of 1872, upon which occasion the chief Wiremu Kingi Te Bangitake came with a following of some 300 to New Plymouth and made peace, I have not failed to notice the great change that has been gradually taking place amongst that section of the Natives designated Hauhaus (adherents of the King), the most influential chiefs of which, up to that time, had most persistently isolated themselves from our towns and villages, preferring rather to go without actual necessaries than hold any intercourse with our settlements; but the last three years have made a vast alteration, and Native matters generally present a very different aspect now to what they did then, more especially in the Waikato and this district. Tawhiao, the so-called Maori King, has made two visits to Hone te One's settlement at Aotea; on neither of these occasions was he accompanied by a large following. His first visit to Motakotako, Aotea, was made in company with Te Tapihana in the early part of December, 1874, at which time I was with you at the Thames ; consequently I did not see him. On his second visit, in March last, he was only accompanied by his three sons; on this occasion he spent a week at Aotea. I was also there with him several days. He appeared to attach a great deal of importance to your interview with him at Waitomo, as ever and anon he would narrate some portion of what was said on that occasion, saying "he would have met any other person in New Zealand with very little emotion, but you he could not. The sight of you called up so many remembrances of the past that he was quite overcome, and unable to control his feelings." He was a very different person on this occasion. When addressing the tribes assembled there was none of that nervousness perceptible. He spoke loud and distinctly. It is said amongst the friendly Natives that if Tawhiao had been asked he would have come on to Eaglan. They tell me he may come here any day. Te Tapihana, after Tawhiao's return to Kawhia, came on a visit to the Tainui tribe, his object being to invite them to an uhunga for his brother Te Remi. He stayed two days, and his speeches were most pacific. This is the first time he has visited these parts since the Waikato rebellion. Tour interview with Tawhiao at Waitomo is looked upon by the local and Kawhia tribes as the most important event of the year, and they concur with Te Tapihana in saying that they are merely lookers on, " Kei a Te Makarini raua ko Tawhiao nga mahi " (it is for you and Tawhiao to make terms). Hone te One has left Aotea for Kawhia, where he intends to reside for the future. It is generally believed that Tawhiao will also make Hone's new kainga, situated at the boundary of Aotea and Kawhia, his principal residence. Great preparations are being made by Hone for extensive cultivations at his new settlement. Tawhiao also is reported to have marked off large patches, many of which he has already cleared. Several of the Tainui natives talk of following Hone te One to Kawhia. There appears to be a desire on the part of Waikato to abandon Te Kuiti to Ngatimaniapoto, and take up their quarters in the vicinity of Pirongia, Oparau, and thence to Kawhia. The ostensible reason for these movements is said to be the differences of opinion now existing between the two tribes, Ngatimaniapoto and Waikato.