H.—3

3

Rate op Wages and Pbices op Peovisions. Returns showing the rates of wages and prices of provisions in the several mining districts will be found in Tables 10 and 11. There is no important difference from last year. V Peospects op the Gold Fields. The resolution of the House of Representatives, in August 1869, expressly asks for a report upon the " probable prospects of the gold fields." This is a matter upon which, from the same data, very different opinions may be formed, and I am afraid it is one very difficult to deal with, unless the political element, from entering into which my position debars me, is introduced. I, however, take it for proven that undeveloped wealth to great amount exists in our present gold fields, and that the mineral resources of the colony outside the present proclaimed gold fields have not yet been prospected. That there exist undeveloped mines of wealth in the gold fields of New Zealand there is not the shadow of a doubt; and I have appended hereto the very able and exhaustive report of Mr. G. H. F. Ulrich, F.G.S., Consulting Mining Geologist and Engineer, of Melbourne, a gentleman well known for his scientific attainments, upon the Gold Fields of Otago, as proving beyond question the immensity of the auriferous resources of that portion of the colony. As I write, day by day most encouraging reports reach me of the newly-developed gold fields in the North; and the perusal of Mr. Warden Fraser's supplementary report, which will be found at the end of tho Appendix, enforces the conviction that the rich returns of the Thames in past years will sink into insignificance before the realization of the future.* It must however be admitted that gold mining, under existing circumstances, is not an attractive pursuit; that many leave it for other industries; and that the mining population is not recruited from outside, with the exception of the Chinese. It is a matter of consideration whether gold mining, when it ceases to be a mere lottery, as in rich newly-opened diggings it undoubtedly is, pays as a steady industry—whether, in fact, to raise an ounce of gold does not cost, in ordinary cases, very close upon its value. If this is the case—and the public opinion upon the gold fields seems very much to tend this way—it results that if the raising and export of gold is admitted to be benefieial to the colony, encouragement should be given to this industry, and some of the special burthens with which it is now weighted removed. C. E. Haughton, Under Secretary for Public Works, 26th July, 1875. (Gold Fields Branch). * The last official return received by me from Tairoa, dated July 19th ult., gives a yield of 86 oz. 15 dwts. melted gold from 2 tons 5 cwts. of quartz.