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formed in the district for the purpose —and parties are out in various directions, but as yet with no results. I would here remark that the rewards offered by Government for the discovery of new gold fields, and the aid to prospecting, has had a very beneficial effect in the] Westland Gold Fields. It has been the means not only of forming the party above named, but also other parties in other districts. Waimea. —This district has in no way fallen off during the past year, but has maintained a population of 1,573 souls, which shows an increase of 73 over that of the previous year. The gold revenue is £710, and the yield of gold about £11,800 ounces. The diggings are widely spread over the district, all of an alluvial nature; and, considering that no new ground has been opened, it speaks well for its payable quality. At the commencement of the Kumara rush many left for that place, but during the last few months they have been gradually returning, and taking up, in many instances, the ground they had abandoned. There is no doubt the Government water-race has been of the greatest benefit to this district, and I ascribe its permanent condition entirely to the regular supply of water which it affords, enabling miners to open ground which otherwise could not be worked. Branch Bis now in course of construction, and will be completed in about two months. Its benefit has already been felt, for all along that portion of Tunnel Terrace which the part finished commands new claims have been taken up, and mining operations actively carried on. The whole of the water the race at present carries is being used, and the manager states that he could let more if he had a larger supply, which, when the Kawhaka head waterworks, now under construction, are completed, he will be enabled to do. There are about 50 sluicing claims, and the average number of miners using water during the past year has been eighty daily. With regard to the quartz reefs at the Taipo, although I cannot report that the holders of the mining lease granted about two years ago have done anything towards developing it, yet during the past few months considerable interest has been taken regarding that locality. And, with the view of having the place thoroughly prospected, twenty-six gentlemen in Hokitika subscribed each £50 to form a prospecting association. A manager and two men were sent out in February last to prospect the neighbourhood of the Taipo, and remained till the middle of April, when they had to return in consequence of the snow. The manager reports the discovery of reefs at a high level said to be auriferous, but nothing definite was ascertained as to their payable qualities. However, I believe that this led to four applications for leases which have lately been made in what is called the Bill Hill Range of the Taipo, lying between the river Taipo and Teremakau, situated at a mean elevation of 3,500 feet above the sea level. The surveyor, Mr. Smythe, who made the survey of the ground, reports favourably of what came under his observation. AVith reference to the Enterprise Company he reports: —"Through this lease I was able to trace the outcrop of five distinct quartz leaders, varying in thickness from 1 to 5 feet. In nine places, and at distances of 2 or 3 chains apart, I found gold distinctly visible in the stone broken from four of these leaders." Of the Morning Star he writes, —" During the progress of survey I traced precisely the same leaders which I have described in the Enterprise, and again obtained gold-bearing specimens from the surface of outcrop. I examined in all twenty-three specimens of quartz broken from the various leaders at random, and found gold in seventeen of these without the aid of a magnifying glass." Of Owen J. Parry and Co.'s lease he reports, —" A strong body of quartz nearly 6 feet thick can be traced down the almost vertical face of the mountain, and I was shown some handsome specimens of quartz, with gold visible, taken from this seam." Until the leases are fairly worked, and the stone crushed in large quantities, it is impossible to say what the result may be, but still the indications are such as to hold out fair prospects that in time quartz-mining will be successfully carried on in this part of the district. Kumara. —With respect to this gold field, I cannot say that during the past year it has made the progress it was expected; in fact, the reverse has been the case. The population has decreased by 1,994 souls. On the 31st May, 1877, it numbered 4,860; on the 31st ultimo, 2,866. I am not surprised at this decrease and declining state of affairs, which may be ascribed to various causes, viz., from the place being over-rushed at first; from all classes in general coming without any means, the miners having to live for a long time on credit; the business people building and commencing on credit; and all kinds of trades overdone; from the claims requiring a large outlay before any returns could be received ; from the ground generally turning out poor ; from the leads being found limited ; and from very little new ground being opened. This caused the floating population which always follow a rush gradually to leave. Miners, also, who came from adjoining districts, after giving the diggings seven or eight months' trial, returning to their old localities, as they found they had not bettered themselves. Overtrading has also had to find its level; but when the present depression is over it will bring about a more healthy state of things. Notwithstanding this, the diggings holds out fair prospects to those who are willing to work for ordinary wages, as from the commencement this has been the nature of the ground. There is no doubt that many are remaining until something better opens up elsewhere. Yet, on the whole, Ido not fear that for some time to come any very material change for the worse will take place, because, when sluicing commences on a large scale, and the sludge channel which Government propose making is formed, it will require less labour and expense to work the claims, and the returns will be more remunerative. Only two new leads have been opened during the past twelve months, Ist. The Scandinavian, leading from Baker's Flat towards Sandy Stewart's Hill, 28 chains in length, and from 30 to 50 feet in width, all occupied, and the men doing tolerably well. 2nd. The Ross Lead, leading from Dillman's Town towards Blake's saw-mills, 33 chains in length, and from 1 to 3 chains in width, has also proved payable. The gold revenue during the year amounted to £1,992 95.; the spirit licenses to £1,951 Is. The yield of gold has been considerable, I believe I am within the mark in estimating it at 33,154 oz. In the Resident Magistrate's Court in 1877 there have been 244 criminal cases, and 544 civil cases. Criminal fees, £26 16s. 6d.; fines, £284 155.; and civil fees, £315 17s. In the Warden's Court there were 43 cases, with costs amounting to £42 14s.