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my expectations were not disappointed. In efficiency I would place the several corps in the following order: Scottish, Naval, Engineers, Rifle Rangers, and Native Company. The red coat and helmet of the Scottish adds much to the appearance of the men, and I would like to see all infantry corps adopt that colour and head-dress. I may mention that there is no parade ground or large central hall available for the Volunteers, each company having to pay rent for the use of a hall. With regard to the Cadet Companies I consider there is room for improvement. Much difficulty is experienced in enforcing regular attendance. I have further to report, on Easter Sunday, the Volunteers to the number of 430 all ranks, under command of Major Murray, and accompanied by Colonel Eraser, honorary colonel of the Scottish Volunteers, arrived at Hamilton by special train, to take part iv a review on Easter Monday, and were billeted in the township. On that day, at 9 a.m., the several companies fell in on their private parades, and at 9.30 marched to the place selected for the review. The Waikato Cavalry, numbering 133 all ranks, under command of Major Jackson, preceded them. I arrived on the ground at 10 a.m., and was received by a general salute, the brigade being formed m line at open order. The march past, both by cavalry and infantry, was performed in a very soldierlike manner; the subsequent manoeuvres were, upon the whole, conducted to my satisfaction; an advance in line was particularly steady. The skirmishing was the weak point, which is to be regretted; but it can scarcely be a matter of surprise, when it is taken into consideration what little opportunity there is of practising Volunteers in that most essential part of their drill. The theory may be taught iv a drill-shed, but constant practice in the open is required to make efficient skirmishers. The absence of continuous drill is an impediment to Volunteers attaining real efficiency in the field. If, however, the several corps iv a district could be brigaded for a week at a time twice in the year under canvas, I believe it would have a most satisfactory result. There is no want of intelligence among the men ; they showed great aptitude for instruction, and quickly conformed to the orders received ; and I was much pleased with their steadiness and discipline generally. Silence and good order were maintained in tho ranks, and there was little or no hurry and confusion, except when skirmishing. The Waikato Cavalry turned out with their usual promptness. There were but few absentees, and those unavoidable. The order and regularity with which the Volunteers conducted themselves from the time of leaving the Thames until their return have been reported upon in a most satisfactory manner by Major Murray aud officers commanding corps. No casualty occurred ; nor was a single complaint brought to my notice during their stay in Hamilton. Their conduct throughout was orderly aud soldierlike. I have, &c, The Under Secretary for Defence, William C. Lyon, Lieut.-Colonel, Wellington. Commanding Waikato District.

Annual Return' of Volunteers Inspected by Lieut.-Colonel Lyon.

Enclosure 2 in No. 1. Lieut-Colonel Packr to the Under Secretary for Defence. Sin, — Militia and Volunteer Office, Christchureh, 21st April, 1879. According to instructions contained in your letter No. 49, of the 6th March last-, I have the honor to state, for the information of the Hon. Colonel Wiiitmore, that, immediately after the conclusion of the meeting of the New Zealand Rifle Association, I commenced inspecting the Nelson Volunteers.

N « *teb fl P. h O e o "5 P. £ a H e s s fl fl fl O _ i 5 a o -5 bfl o fl 6 E o fi A Corps. - o 3 w en .3 "5 - _ fl fl v 3 9) fl C- --) 3 EC TO 01 fl O u g> 3 DD « P o bfl S fl °? fl fl M jj fl fl 5 *■* i 'zz "' U2 fl , «J - E d 8 •2 _ i I fl I to ?° I s 02 | _ s C3 a « _ fl 3 « "a O H 4fcO fl 5_ o H bo fl *n a 0> fl 0) R o fl H D "ff - a 1 1 1 I 6 1 20 77 107 lauraki Engineers ... Scottish Battalion — No. 1 Company No. 2 Company No. 3 Company 1 1 i 2 1 1 1 5 5 2 1 1 90 78 81 34 121 88 36 • Phames Rifle Ranjers „ Native Volunteers ... „ Naval Volunteers ... l i l 2 1 1 1 1 •1 5 5 7 1 15 61 36 124 89 41 151 1 15 bidets — Thames Scottish ... St. George's Navals 1 1 1 1 1 8 3 ■12 87 ■IS 42 Remarks. —The above shows U: [ajor. lo mi ;n ins iected hy Colonel Lyon as per the company parade states. —T. L. Mukbay,