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exceptionally hard that the men could not make even small wages at the contract price. The new arrangement is, I believe, that each claim shall supply a man, the shareholders to make good the balance required in addition to the subsidy. This tail-race will open up for sluicing a large area of ground in the middle branch of the Waimea Creek, and there is very little doubt that the ground will pay handsomely, as it has been prospected with favourable results, consequently the starting of operations in connection with it should give a considerable impetus to mining in the Waimea district. The Government water-race still supplies the ground commanded by it from Goldsborough, along Tunnel Terrace, Liverpool Bill's, &c, and on to Gillam's Gully, where it ends. The same parties still use it. The results are poor, as most of the best ground is worked, but the water supply has been constant and good. The extension of this race to Italian's and Callaghan's is nearly completed, and water will be available there as soon as the deviation of the Waimea Bace at Kawhaka is completed. The deviation referred to will, when completed, do away with about a mile of high fluming, which in the past has been a considerable source of expense to maintain, beside the danger of its breaking down altogether, having been erected about twenty-three years ago. The latest effort to open new ground is the proposed drainage-tunnel into Gillam's Gully, Kelly's Terrace, &c. There is no doubt that a very large area of payable ground exists in this locality, but it has remained unworked for many years owing to the large quantity of water in the ground. The proposed drainagetunnel will drain all this ground, and I have every confidence that when it is completed a large number of miners will find profitable employment for many years. The work has not yet commenced, but the necessary surveys have been made. The main tail-race has been granted, and on receipt of the deed from the Government re subsidy, I understand that work will at once be commenced. The energetic prosecution of this work is anxiously looked forward to by the mining population of this locality, as many of them find it difficult to get employment. As for other industries, the sawmilling is the next best, so far as employment is concerned ; but I am sorry to say that the great competition has so reduced prices as to materially interfere with the earnings of the workers, and has compelled the two mills in the immediate neighbourhood to considerably reduce the number of hands. The supply of sleepers for Government railways continues to give employment to a considerable number; silver-pine is admitted to make the best sleepers, and the West Coast thus gets the monopoly of the supply, which is very large. Kumara. —During the past year the number of miners employed on this field was slightly less than during the preceding year, and the number of claims using water has decreased by one, while the goldfield has fallen off by some 700oz. or 800oz. It may, however, be said that the latter is gradually decreasing, as nearly the whole of the richest claims have been worked out. There is, however, a large extent of what may be considered poor ground, in which men will be able to earn small wages, and it will be many years before this class of ground is worked out. The new sludgechannel, known as No. 4 main tail-race, was completed during the year, and sluicing operations connected therewith were commenced in August last. It is about 42 chains in length, with boxing 3ft. wide and 3ft. deep. There are now three parties using this channel, and more are making preparations to do so. Considerable progress has been made in the construction of No. 5 Main Tailrace, nearly one-half of which has been completed ; the total length of the race being about 63 chains. The size of the tunnel, which is fully timbered throughout, is 7ft. by 4ft. 6in. in the clear; the boxing is of the same dimensions as in No. 4 main tail-race. This channel, when completed, will open up a large area of auriferous ground, which, though poor, will enable a large number of miners to earn small wages. Although there has been a decrease in the populatiou, a number having left for. the West Australian goldfields, the revenue has not suffered a great deal, as the appended figures will show :— 1895. £ s. d. Warden's department ... ... ... ... ... 590 14 5 Magistrate's department ... ... ... ... ... 70 12 0 Total ... ... ... ... ... £661 6 5 1896. • Warden's department ... ... ... ... ... 651 15 0 Magistrate's department ... ... ... ... ... 98 18 0 Total £750 13 0 Greenstone. —There is nothing of importance in mining matters to report from here. The population is about the same, and the miners plod away seemingly satisfied with their earnings. Return of cases disposed of in the Magistrate's and Warden's Courts, Kumara, for the year ending 31st March, 1896 : Civil, 200 ; criminal, 57 ; Warden's, 20. The revenue for the year, amounting to £750 135., collected in the Kumara Court, is made up as follows: Warden's department, £651 155.; Magistrate's department, £98 18s. : total, £750 13s. Particulars of revenue collected in the Warden's Court for the year ending 31st March, 1896. £ s. d, Miners'rights ... ... ... ~, ... ... 282 10 0 Business licenses ... ... ... ... ~. ... 7 10 0 Water-race licenses ... ... ... ... ... ... 336 Registrations ... ... ... ... ... ... 16 0 0 Rents ... ... ... ... ... ~. ... 97 2 0 Fees and fines ... ... ... ... ... ... 10 11 0 Miscellaneous (chiefly timber royalties) ... ... ... 234 18 6 Total £651 15 0 Number of mining applications lodged during the year ending 31st March, 1896, 147.