H.—3.

The Chinese, who confine themselves entirely to alluvial mining, are spoken of in very favourable terms by the Wardens, and appear to a very great extent to have overcome the prejudices formerly existing against them. They set a valuable example by their industry and thrift to the European population. Their undoubted success in mining operations is mainly owing to their thoroughly understanding and carrying out the system of co-operative labour, and applying to its direction great intelligence and an almost instinctive knowledge of hydrodynamical laws, whic enable them to apply the water at their disposal in the most economical manner. It is a subject of regret that these inoffensive and industrious people are not likely to become permanent colonists ; and in judging of their character, the Chinese miners must not for a moment be confounded with that class of their countrymen who infest the Australian cities. Tables 10 and 11 give details with regard to the mining population. Rates of Wages and Prices of Provisions. There is no important difference between the rates of wages and prices of provisions given in Tables 12 and 13 appended hereto, aud those quoted last year; notwithstanding the large introduction of immigrants, very few would appear to have found their way to the gold fields. It will be observed also that the Wardens remark upon the scarcity of labour during the busy seasons, and the very great demand for female domestic servants. Water Races. The return of water-races, tail-races, dams, reservoirs and ground sluices, Table 14, which must be understood to be only approximate, differs little from that of last year. Mr. Warden Simpson, of the Dunstan, appends the following remarks to his return : —" The water supply in this district having been for years taken up, very little change takes place in the number of water-races. Within the last four years there have been only some three or four new water-races constructed to bring in fresh supplies, and there are two in course of construction. Several races have changed their course from one locality to another, and others have passed into disuse, but they are comparatively few. Tail-races, dams, and ground sluices are constructed every few months, and fall into disuse about as often as that. No correct estimate can be formed of number and value in the district." Mr. Warden Carew, of Mount Ida, notes : " The Government race and channel are not included in this return. (2.) The sluice heads quoted are those granted; in almost every instance the quantity mentioned in the licence is greatly in excess of the actual supply. (3.) Another source of error is that very many races are constructed only to take water from other races, or to use water a second or third time." Machinery. The value of the machinery used in gold mining is returned this year at £520,903, as againts .£508,072 last year, but both returns must be considered only approximate. Mining Companies. Table 17 shows the number, nominal capital, and paid-up capital of the gold mining companies registered under "The Mining Companies Limited Liability Act, 1865," "The Joint Stock Act," and " The Mining Companies Act, 1872," and the total gives a slight increase upon the return of last year. Gold Mining Leases and Licenses. Tables 18 and 20 show the particulars of the gold mining leases and licenses, under the Gold Mining District Acts, in force upon 31st March, 1876. These compared with the returns of last year are as follows :— Gold Mining Leases. Auckland. Marlborough. Nelson. Westland. Otago. March 31, 1875.. 32 .. 9 .. 229 .. 24 .. 197 March 31, 1876.. 17 .. 9 .. 166 .. 17 .. 170 Licenses wider Gold Mining Districts Acts. Auckland. March 31, 1875 .. .. .. .. .. 137 1876 .. .. .. .. .. 172 Agricultural Leases. The Return of Agricultural Leases is given in Table 19. The decrease in the number of leases in the Province of Otago is to be accounted for by the fact that a considerable number of the leaseholds have been purchased in freehold by the lessees under the provisions of "The Gold Fields Act, 1866," and a large number of leases have also been exchanged under " The Otago Waste Lands Act, 1872," for leases under the deferred-payment system ; in the Tuapeka District alone no less than 132 of these exchange leases have been issued for an area of 5635 acres, and the freeholds of 57 agricultural leases have been purchased. In the Province of Nelson it must also be observed that the number of agricultural leases by no means represents the whole extent of agricultural settlement, since the Nelson Waste Lands Act of 1874