H.—l7

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plication of conflicting rights, increasing as time goes on, is often the cause of much difficulty and trouble. A good deal of ground in this neighbourhood is now worked by Chinese, and when they have cases in Court the want of a trustworthy interpreter is much felt. Attention was called to this subject by Mr. Mackay, in his report of last year for the GJrey District, and there is no doubt that whatever pains may be taken, by visiting the ground in dispute, or by other means, to arrive at a correct understanding of tho case, the administration of justice cannot be satisfactory with such interpreting as is now available. Totara. —Prominent in the affairs of this district is the question of the Mikonui AVater-race. It is not necessary for me to dilate upon the importance of this work to the district, or the reasons why it should be proceeded with, these considerations being already well known to the Government, with whom the further prosecution of the undertaking is probably only a question of ways and means. Ross.— The most remarkable feature in the history of Ross and its neighbourhood during the past year has been the formation of the Ross G-old-Mining Company, who have obtained a special claim of 100 acres, for the purpose of working the deep ground at Ross Flat—long known, if united testimony is to be trusted, to be richly auriferous, but now for many years abandoned, owing to the difficulty of draining the workings at a depth of 300 feet, in ground so close to the sea level. At the time this company was projected the Ross Borough Council had a proposal on hand for bringing up a long tunnelled tail-race for drainage purposes, through the flat, which would enable the ground to be worked without difficulty to a depth of 90 feet. It is doubtful, however, whether the Borough Council could have found legal powers for such an undertaking, which will be carried out in a much more legitimate manner by a mining company The new company has now undertaken this work, and is at the present time carrying on the construction of the tail-race. The completion of this work, besides being of much benefit in itself, will materially diminish the difficulty of draining the lower levels by reducing about one-third the height to which the water must be lifted, and by this means, together with the improved mode of working the deeper ground which they propose to adopt, the managers of the company are sanguine that they will be able to get out the gold which everyone appears to believe is there. The area granted to this company as a special claim is unusually large, and may be, for anything I know, unprecedented in New Zealand. But in recommending the application to the Government I was influenced by the consideration that the time has come in the history of this coast when no further progress can be expected without the free introduction of capital—when the jealousy in disposing of lands supposed to be rich in gold or other minerals, which at an earlier period may have been justifiable, should give way to a more liberal system by which we may hope to attract the capital which is essential, but which will not consent to such restrictions of area and of tenure as have hitherto been customary There is no doubt that so large a grant might have been expected to raise some outer}', however unreasonable, on the score of locking up ground from the " working miner." But I have been gratified by the manner in which the proposals of this company have been received by the " working miner," who has been intelligent enough to see that by some such scheme as this alone can ground be opened which has been so locked up by nature from his operations. In arranging the terms and conditions of the grant of the special claim, I have taken all the precautions that I could think of to protect all the rights, present and future, of those concerned, and I hope the result of what has been done will be increased activity and prosperity in the district. Silver seems sufficiently akin to gold to justify my referring in this place to the Mount Rangitoto Silver Mining Company, who for the last five years have held a lease of 500 acres on the side of that mountain. Work has been done at intervals in this mine, but hitherto without much result. Lately, however, it appears that some specimens from the mine have been so far favourably reported on in London as to cause a renewed effort to work the ground. It is said that capital can now be obtained for this purpose if the freehold of the ground can be obtained, and with this object an application was made to the Land Board to offer for sale the land comprised in the lease under the provisions of the Westland Appendix to the Land Act of 1877 The Land Board, after some deliberation, decided in favour of tho application, influenced by reasons very similar to those which I have already mentioned in connection with the Ross special claim. A day has been fixed for the sale of this ground, and the applicants allege that if it is purchased by them, immediate steps will be taken towards the development of the mine.* Should their anticipations be realized another important factor in the prosperity of the Totara District will be at work, and every one such can scarcely fail to lead the way to others. The return of gold shipped at Hokitika for the 12 months ending 31st March, 1881, exclusive of that on which duty has been paid at any other port, is as follows : Gold, 47,377 oz. 11 dwt. 5 gr ; duty, £4,737 10s. I have, &c, J Giles, The Under-Secretary for Gold Fields, Wellington. Warden.

No. 12. Mr. Warden Bird to the Undeu-Secbetaey for Gold Fields. Sib,— Warden's Office, Okarito, April 2nd, 1881. I beg to forward herewith statistical returns respecting the Okarito District, for the year ending 31st March, 1881. In regard to mining matters generally I have nothing of importance to communicate. Since my last report there was a small rush in the neighborhood of Lake Mapourika, and there were at one time about 180 men on the ground, but out of these only a small number were practical minors possessing the requisite means for prospecting ; and, therefore, owing to the difficulty of working the ground, many were obliged to return without even taking up a claim. At present there are from 70 to 80 men in the vicinity of the Okarito River and Lake Mapourika, and the generality of

* The 500 acres ha.s been purchased by the company.