G.—lb

2

Many of the young men of the Tainui and Ngatimahanga tribes are at Hone te One's new settlement Torea, at Kawhia, clearing land for extensive cultivations. As soon as the ground is ready for the seed, many others will go there to assist in sowing. These people at present have no intention of making this settlement their permanent residence ; they will cultivate and reside as formerly at their old kaingas about the Whaingaroa Harbour and inland. At Tawhaio's request, Hone te One, upon resuming occupation of his Kawhia lands, told the Patupo (a section of Ngatimahuta generally looked down upon) to remove their cattle, &c, from Kawhia to their own land situated on this side of Aotea Harbour. The Patupo are reported as not approving of this order, and the Kawhia-Ngatimahuta are said to have written to Hone te One, requesting him not to insist upon this removal. Tawhiao is busy at his new settlement Hikurangi, situate on some part of Pirongia, about midway between Kawhia and Alexandra. He has been expected at Kawhia for some days, where probably he has arrived ere this. The Natives this year are obtaining a better price for their grain, viz. six shillings a bushel ; heretofore the price has seldom exceeded four and sixpence to five shillings. They have also raised the price of firewood, owing in a measure to the Native Store Company purchasing all they can procure for export to Onehunga by their cutter. lam much afraid that the Native Company will scarcely survive another year. What with their losses on their vessel in consequence of mismanagement, and their late law expenses, they are rather at their wits' end to carry on the concern. They had a splendid opportunity of making money, but the want of business experience and energy is ruining them fast; no such thing as a dividend" has been paid to any shareholder, nor does there appear any probability of any such occurrence taking place. The directors, however, are changing their manager and servants ; it is to be hoped this alteration will prove beneficial, and tide them over their present embarrassment. Several of the local chiefs are at Karakariki, for which place they left yesterday. The object of their visit is to attend a meeting called by Major Te Wheoro, for the purpose of discussing the present drunken habits of their race, and to form some plan by which the existing evil may be suppressed. Manuhiri is reported as writing Te Wheoro, urging him to prevent spirits being supplied to Hauhaus when visiting our settlements. The drunkenness hitherto so prevalent at Kuiti is said to have decreased wonderfully. The late epidemic (measles) appears to have abated. It has left this district without having caused any deaths, although some three or four are said to have died from the after effects. Generally the Natives resident here, and also those visiting from a distance, appear more friendly disposed, and the former reserve so perceptible, especially amongst the chiefs of the so-called King party, is gradually disappearing. I have, &c, E. S. Bush, The Hon. the Native Minister, Wellington. Government Interpreter.

No. 3. Mr. S. Deighton, E.M., to the Under Seceetaet, Native Department. Sib,— Waitangi, Chatham Island, 17th July, 1875. I have the honor to forward the enclosed annual Native report for the district of Chatham Islands. At the last census, taken in 1874, the population on the island consisted of—Maoris, 23 males, 29 females ; Morioris, 38 males, 25 females; since which time I have had arrivals from New Zealand, 13 males and 11 females, making a total of Maoris and Morioris, 139—a very small remnant of the population once residing here. lam given, however, to understand that we shall have some more from New Zealand, consisting principally of young people who were born on the island. I am glad to report that the Natives here are in a fairly prosperous condition, most of them owning small flocks of sheep, besides horses and cattle. Some of them own as many as 1,000 to 1,500 sheep; and as they are at very little expense as regards shepherding, &c, they manage to live very comfortably on the proceeds. A few own wooden houses, and the remainder are procuring timber for that purpose. Food also is plentiful, there being an endless supply of sea fish, besides fresh-water eels and game. The climate is very healthy, and, although rather wet during the winter months, not so cold as in many parts of New Zealand. In spare times the Natives have been very profitably engaged in gathering fungus, which now realizes a very good price. About ninety bales were exported to New Zealand last year, at an average of from £4 to £5 per bale ; and, as the price is now very much higher than at that time, I estimated the spring crop will realize nearly £1,000. I am sorry to say that for some years past there has been no minister of any denomination on the island ; but as the Europeans have opened negotiations for the purpose of procuring the services of a clergyman of the Church of England, I hope the Natives will be benefited by the same. There is still a lar<:e Native church standing at Waitangi, which might be repaired to be made available, but at present it is in a very dilapidated condition. I h?ive much pleasure in adverting to the very amicable feeling that exists between the settlers and the Natives. For a long time after my arrival there was an unpleasant feeling existing, owing to the absurd affair that look place in Mr. La Nauze's time, but it is never alluded to now, except in a joking manner. The only disagreement of importance that has occurred since I have been here, among the Names, was one about six months ago, relative to the right of running some sheep belonging to Apitia