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and is now out on bail on the charge of manslaughter of a white man in a drunken fracas at a publichouse in AVanganui. The man (one Tawhana) had eluded pursuit, and had joined his people on their way in canoes up the river, when they, by the advice of their chief, brought him to town and handed him over to the police; and he now awaits his trial at the next session of the Supreme Court. A suspected accomplice has made off to the up-river districts, but will be given up if demanded. I mention this fact in proof of the disposition of the AVanganuis to abide by the laws, and hand over any criminals of the Maori race to be dealt with by our Courts of justice. As pointed out in my last report, the Natives of these districts have entirely reversed their land-holding policy, and the Native mind has become quite absorbed in, and unhinged by, landselling operations. In January last a Land Court was held in town, and the whole river population flocked thither to support their claims and watch their interests. For the summer they took up their quarters in town and neighbourhood, and have been continually engaged in offering block after block of land for sale to the Government Commissioner, Mr. Booth, who has been most successful in his negotiations, and has, by advances made, secured the pre-emptive right of purchase by the Government over hundreds of thousands of acres of the interior. As a consequence, large sums of money have passed to the Natives; a portion of which (some £4,000) 1 have got the owners to lodge in the Bank of New Zealand, as fixed deposits, bearing interest at d>\ per cent, per annum. Of course the greater portion of their money has been spent in town, in food, clothing, and, alas, drink! and a rich harvest has been reaped by the traders and publicans. The Maoris think it is the correct thing and quite in the fashion to frequent the hotels in which AVanganui abounds, and free access has been given to them to those houses contiguous to their quarters, where they spent their time from early morning to midnight in eating, drinking, and carousing. The effect has been most demoralizing, but I am in hopes that a reaction will take place: in fact, the Natives have become alarmed at the sad consequences resulting to the race from excessive and continuous drinking, and many of the most influential chiefs have signed a petition to the Government to bring the Native Licensing Act of last session into force in the up-river districts, so that no spirituous liquors may be introduced therein, and some check be put upon the drinking propensities of the people. They have further expressed a wish that some restriction should be placed upon the sale of spirits to the Natives in the town; otherwise the endeavours to stop the consumption of drink at the settlements will be neutralized by the Natives resorting more than ever to the town, where they can get as much as they like without let or hindrance. Reverting to the subject of land-selling, I would draw the attention of the Government to the necessity of extreme caution being used in carrying out the surveys of new blocks in the interior, so as to prevent strife amongst the owners thereof, as in some cases the title is much in dispute, and a collision will be sure to ensue if the surveyors attempt to push matters in the face of threats and manifest opposition on the part of those opposed to the sale of the laud, and counter-claimants thereto. A resort should always be made to the leading chiefs and assessors, so that the matter be discussed in runanga, where an amicable arrangement is often come to and a breach of the peace prevented. Further, those surveys which are likely to be opposed might be put off, as there are many that might be carried on without any opposition, and it will take years to complete the survey of all the land over which the Government have secured the right of purchase. Touching land-selling in general, the Maori mind is liable to fluctuate from a variety of causes; but, notwithstanding a few checks to some, the Natives are bound to sell their surplus lands, and it will yet become the duty of the Government to step in and prevent many of them from parting with every inch of soil, and thus becoming paupers and a burden to the country. An apprehension of this already engages the Maori mind, and applications will be made to the Government to constitute certain Maori reserves, where letting alone will be allowed, and measures will be sought to secure the descent of such locations to the descendants of the original owners, so that they may become possessed of ample means of support, and be able to maintain their positions as chiefs and landlords in the country of their ancestors, where they formerly held undivided sway and command. The Maori has now an opportunity, by discreet management, to secure ample estates for his posterity; and it is to be hoped the opportunity will not be lost, seeing there is an abundance of land for both races. I would further enlarge upon this subject by pointing out, in the interest of the Natives, the desirability of the Land Courts being held up the river—say at the Native schoolhouse, Parikino, twenty-eight miles from town —so as to keep the Natives as much as possible away from the publichouses. Said settlement is within riding distance from town, and very central, besides which it is situated within the boundaries of the district to be proclaimed under " The Native Licensing Act, 1878," and every effort will be made by self and Native assessors to prevent the introduction of any intoxicating drink within the boundaries of said district, which commences at Kaiwhaiki, twelve miles from town. A further exponent of Maori feeling in this neighbourhood was the action taken lately by the AVanganui and Ngarauru Tribes in response to the call of the Native Minister to pursue and take the miscreant Hiroki, and it was from no lack of energy or effort on their part that he was not captured, as a sharp look-out was kept on the AVanganui River, and the Ngarauru followed him up right to Te AA rhiti's settlement, from whence they had to retire owing to threats made by the Taranaki Natives, who gave them notice to clear out at once, or they would be shot. 2—G. 1.