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cattle, for which the settlers had to pay from £12 to £20 for very inferior asimals. They were compelled to purchase these cattle, or else work and food was stopped. 5. The total absence of roads. Notwithstanding the reports and lithographed plan furnished the General Government by the late Nelson Provincial Secretary, showing the roads " cleared and made," the first yard of road has yet to be made in the Karamea Settlement. The above, with other grievances, disheartened some of the settlers, and they left the district in disgust. At a more recent date, interested persons have busily circulated the report that the Government considered the settlement an utter failure; that no roads were to be made ; and that the subsidy to the mail steamer was going to be withdrawn. Some were actually frightened away by these reports. Notwithstanding all these drawbacks, there are still forty-four householders, thirty-six women, and seventy-three children who are determined to make Karamea their homes. There are thirteen gold-miners in the district, and, should the Government encourage them by making tracks, so that they can get provisions to the workings without risking their lives, a large addition to the number following this branch of industry could be confidently reckoned on, as some excellent gold has been won from the Karamea Eiver beaches. The present charges for conveying produce to Westport, and goods from Westport to Karamea (£2 10s. per ton), by the subsidized steamer, are exorbitant, and barely leave any return to the settler for his labour. The remedy for this would be the placing the beacons in trustworthy hands, so that the Anchor Line of boats could call weekly for a reasonable subsidy, thereby enabling tho settlers to profit by the advantage of having three markets for their produce, instead of, as at present, Westport alone, and that but once in six weeks. If the farming parts of the settlement were opened up by roads, so that the farmers could get their produce to port, and the issue of the leases for the land postponed for twelve months, it would insure a prosperous community, whose numbers would soon be augmented. It is worthy of remark that since the district has been under the management of the Buller County Council more real benefit has been conferred on the settlers in the way of useful tracks, by the expenditure of about £400 in their construction, than by the most mysterious disappearance of many thousands of pounds under the former management and horrid truck system.

No. 2. The Hon. J. Ballance to Mr. Bunny. Sir, — General Crown Lands Office, Wellington, 25th April, 1879. I have the honor to acknowledge the receipt of your letter of the 3rd instant, addressed to the Hon. the Colonial Secretary, and, in reply, to thank you for the information which you have afforded respecting the special settlement at Karamea. It is satisfactory to note that the settlers are pleased with their present position and future prospects. I have, &c, J. Ballance, H. Bunny, Esq., M.H.E., Wellington. (for the Minister of Lands.)

By Authority : Oeobqe Didsbitev, Government Printer, Wellington. —1879. Price Is.] 4—H. 9.