H.-9.

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incurring bucli an outlay as this has proved fatal to any further development of the timber trade. Whether the Arawata Settlement will be able to survive the extinction of all hope of a resuscitation of this industry is doubtful, but we trust this experiment will not be tried. Okuru. —The principal site of the fifty-acre sections is on the Turnbull, one of the three rivers which open into tlie common outlet or estuary known as the Okuru. In the desolation of its abandoned homesteads, this settlement, although not so entirely deserted as tho Smoothwater, yet to a considerable extent repeats on a larger scale the experience of that place, but the reasons of its desertion are not equally apparent. Floods have heen alleged as a cause ; and there can be little doubt that, during the almost unexampled continuance of wet weather that has prevailed on the Coast, the water would prove a serious difficulty upon some of the sections. A single visit could not enable us to express a decisive opinion upon this point, but from all wc are able to gather we are inclined to believe that floods could not of themselves prevent tho general occupation of the Okuru land. Somo of it is free from this danger, and some other parts seem to suffer very little damage from an occasional flood. AYe are informed —and appearances confirm it—that there is less scour and havoc with floods in this locality than in many others, and that they quickly subside, doing little harm. Upon this point wo may refer to tho remarks of Mr. Mueller in his report. A large number of tlie Okuru settlers wero Italians, and we think their unfitness for the work and the life was to some extent the cause of the abandonment of the place. There were no doubt some exceptions to this. AYe noticed ono or two clearings of Italians where so much good work had been done as to make it a matter for much regret that these homesteads should have become tenantless. But as a rule, from the appearances which we saw, and from tho information which wo were able to gather as to their disposition and habits, we do not think that the Italian settlers at Okuru were the class of men best fitted for the work of settlement in such a locality. We believe that British colonists would have been less easily discouraged, aud would have been far more likely to persevere with the undertaking. As an illustration of this, we wero pleased to observe the energy shown by Mr. Franklin, a settler who retains and desires to retain his holding in that settlement. Single-handed, he has done more in the way of clearing and cultivating with two months' work than many of the homesteads show as the result of twelve. If all the settlers had been of his style the Okuru Settlement would present a very different appearance from what it now does. The soil is of extraordinary richness, and grows surprising crops of grass, oats, potatoes, ami garden vegetables. Tho river is one of the best on the coast, aud, the entrance being well sheltered by an outlying reef, the bar presents far less obstacles than usual to vessels going in and out, so that produce could be readily shipped there. There can be but little doubt that the establishment of a timber trade would very soon make the Okuru a highly prosperous settlement. Both at the Okuru and the Haast we made it our business to penetrate the forest at various points with the view of satisfying ourselves of tho existence of timber for saw-mills, respecting wdiich somo conflicting statements havo been made. Without at present referring to the evidence and opinions of experts, we can ourselves testify to tho existence of an extensive belt of pine forest, which reaches for some miles in length, and containing what we should suppose to bo a very fair average of straight and well-grown trees of a suitable size for sawing. o tn Such being the general condition of the settlement as presented to us on our visit, we have now to express our opinion on the causes which have led to its wholesale abandonment. Pamphlet of Regulations, -fe. —Tho settlement has been carried on under certain conditions, printed in a pamphlet form, together with official reports on the district, and circulated amongst the settlers. These conditions have never been legally validated in any way. and consequently until some steps have been taken for this purpose no title can be given to any of tho settlers for their laud. But in practice these regulations have been adopted, and tho necessary legal confirmation can easily be obtained. Under these conditions tho settlers were to hold their land by annual payments of rent, extending over a period of seven years, such payments entitling them to the freehold at'the end of that time. The price of the rural land was fixed at 21s. per acre, and that of the so-called suburban lands 42s. —that is, 3s. per annum in the former case, and 6s. in tho latter. For the first two years also tho settlers were to get work at the road through tho block, or such other works as might be undertaken, for half their time —that is, three days in the week at Ss. a day. Temporary accommodation was to be provided them uutil tbey could get cottages erected ou their own ground. The most apparent objection to this scheme is the inadequacy of tho 21s. a week to maintain a family in that locality, and wo find that this point was not overlooked at tho time, for Mr. Macfarlane says in his evidence that he advised several persons who made application to him not to go to Jackson's Bay, on the ground that they could not maintain their families on the wages offered by the Government. It would seem, therefore, almost essential to the success of the settlement, under the conditions proposed, that the settlers should not be entirely without means. At all events, without the means of maintaining themselves for a time, none but the most resolute, energetic, and frugal could be expected to overcome the difficulties of the undertaking. But it appears to us that to introduce a population of foreigners, and of destitute foreigners, was to court failure. A careful selection of British and, perhaps, German settlers should have been made, and had this beeu done wo think the failure of tho scheme would have been far less signal. AVo do not intend to disparage the qualifications of Italian immigrants. AYe are aware that Signor Federli proposed a scheme for forming an Italian settlement at Jackson's Bay, and we do not say that such a scheme could not have succeeded. Much would have depended on the conditions of settlement and the assistance afforded to settlers, but we aro speaking of the conditions actually put in force at Jackson's Bay. Another injurious influence exercised by the foreign element is mentioned by the Hon. J. A. Bonar, who says in his evidence that the settlers were continually disheartened by rumours that the Government work\vas going to be discontinued. And not only in this way, but, we think, in many others, the foreigners wero liable to get wrong impressions, wdiich would be very difficult or impossible to remove. A number of needy and ignorant persons in tho circumstances in which they were placed would be peculiarly liable to be discouraged to a degree sufficient to insure failure, if there were any who made it a business to fill their ears with mischievous