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widens and improves. The hopes of the company are raised, and with reason ; certainly their perseverance deserves success. The Aurora Company, who have the reef immediately to the south of the Lucknow, have resumed work, and it was a wonder to all why they ever suspended, seeing they never, lost the reef, and that the works always paid expenses. The Cromwell Company have been raising stone during the whole year, and their good fortune has been continuous. I think lam safe in saying that by far the greater portion of 14,000 oz., returned as the year's yield from quartz, has come from this company's ground. The ground seems not only to have one good main reef in it, but a number of rich leaders, and notably one that was struck about a month ago in their No. 2 lease. The stone crushed by this company throughout tho year may be said to have averaged 4 oz. to the ton. Another company that has done a great deal of work in their claim is the Reliance. Their ground is on the Cromwell Company's reef, and adjoins that company's richest claim, and it is to the astonishment of every one, as well as to the chagrin of the shareholders, that the reef has not already been struck. All are united in opinion that it is but a matter of time, unless some unaccountable break or disturbance has taken place to the reef as it leaves the Cromwell Company's ground. The prospects of Bendigo look at present very bright, and if the companies and claim-holders will only persevere, great results may be expected. The greatest want that will be experienced at Bendigo will be power to drive machinery ; the water supply is very limited, and coal for raising steam not nearer than Cromwell, a distance of fifteen miles ; none of the prospectors for coal on the Lindis have been successful, but they still persevere. Carrick Range. —The other reefing portion of the Cromwell division has also advanced during the year; one of the principal discoveries there was by Watson and Company, of the reef known as the Crown and Cross, the crushings of which have averaged about 1 oz. to tho ton. The most of the old companies have continued steadily at work during the year raising stone; others, and particularly the Heart of Oak, Caledonian, and Elizabeth, have been engaged tunnelling at low levels. A great deal of work has been done both by the public and private companies, but no yield that can be considered more than payable reported ; of the private companies it is a matter of great difficulty to obtain information. On the Carrick there seems to be a general determination to test the permanency of the reefs, which up to this time have been so provokingly broken and irregular, by deep level tunnelling, and a large company has been formed to undertake a work similar to that undertaken by the Deep Level Company at Bendigo. Settlement, or rather Band Taking-up. —During the year the following areas have been taken up under the Agricultural Lease Regulations : —ln Teviot, 948 acres ; in Alexandra, 808 acres ; in Cromwell, 331; making a total of 2,087 acres, and there are applications waiting to bo dealt with for about 1,000 acres more. I use the term " land taking-up " advisedly, for on looking over the names of those to whom the grants have been made I find, almost without exception, that they are old settlers who, having acquired their original holding in freehold, desire to extend their operations under the easy system offered by tho agricultural lease when coupled with the deferred-payment system. It is evidence, no doubt, of the prosperity of these settlers ; but to me, who have been told by some of those settlers that unless they could increase their holdings they must sell out, it is evidence, also, that the area allowed to be leased by one person is too small in a district like this, where the land is so inferior, or rather so light. The absence of strangers' names confirms this view, I think. The crops alone will not pay in this district, with such light land, and at such a distance from a good market cattle-growing must be combined, and this cannot be done on 200 acres, nor with profit even where there are Crown lands open for grazing in the neighbourhood, for on these lands the settlers say the cattle are so liable to be hounding about, to a mixture of breed and to stray, that very little profit can be made, and that they would far rather enclose rough ground unfit for cultivation under the agricultural lease system. In my opinion it is much to be regretted that the maximum has been fixed so low as 200 acres, which may be quite sufficient for the ends the Government have in view, viz., multitudinous settlement (if I may be allowed the expression), on the richer lands of the province ; but not in districts like this, where 1,000 acres even would not be too much. Certainly it would, I think, be found far better to enlarge the areas than to pursue the system of throwing open large tracts of country for miscellaneous depasturing, for, as a rule, these tracts are monopolised by a few; at any rate the smaller herd owner is always at the mercy of the larger. I may mention that I had several applications by settlers to be allowed to enclose a few hundred acres of these commons, as they are called, around their particular homesteads, the settler to get a right for a term at a reasonable rent, no compensation to be asked at the end of the term for the fencing. It is noteworthy also that a number of the smaller farmers are selling out, when they can, to the larger holders. Under the deferred-payment system there has been some 1,850 acres taken up during the year; of land under agricultural lease there has been purchased about 2,300 acres. W. Laueence Simpson, The Under Secretary for Gold Fields. Warden.

No. 15. Mr. Warden Beetham to the Undee Seceetaey for Gold Fields. Sie, — Warden's Office, Queenstown, 7th April, 1875. I have the honor to forward you my report upon the Queenstown District, for the year ending 31st March, 1875. I have no discoveries to report in either alluvial or quartz mining; the year has been characterized by a complete absence of excitement, as far as prospecting is concerned. Alluvial Mining. —Operations have been almost entirely confined to the development of claims bordering the terraces, on the banks of the Shotover River, and the more systematic working of the river bed. The two claims most worthy of notice belonging to the last-mentioned class are the New Channel and the Hibernian Companies' Claims. The Hibernian Company being now in course of registration, [the ground held by the company as a special claim comprises a large extent of the