D.—No. 1.

start an artificial oyster-bed, which he can get stocked for next to nothing with the cultch and spat brought up by the fishermen while dredging for oysters, and which, instead of being thrown back into the sea, they would doubtless, if requested, carry free of charge to his " bed," in returning to their homes at night; and he will in three years' time be possessed of a good and certain income. Always on the spot, he will be the first to hear of any mineral discovery, and as a promoter obtain such a prize as he might wish for in vain, living on the main. Though at present, residence on the island means, in a great measure, isolation, if the success of the undertaking under discussion is at all commensurate with my expectations, there will be plenty of life shortly after it is fairly started —- healthy, vigorous, hopeful life. Once a population settled there, independent of the frequent communication with the main by means of the fishing smacks, it will pay to run a small steamer between the Bluff and the island, which could, in addition, undertake the trade to the Toi Tois, Waikawa, and Catlin's River, to the east of Campbelltown, and westward to Riverton, Orepuki, Preservation Inlet, or any other settlement which may be formed on the west coast of Otago. On the whole, I feel convinced that the status of a surveyor at Stewart Island, under this scheme, will compare favourably with that of his compeer on the main, either in the employ of tho Government or practising on his own account. Living amidst some of the finest scenery on the face of nature, varying from the grandeur of the west side, with its lofty cones of bare granite, its weird rocky coast, to the sunny clime of an inland lake, with wooded shores and golden beaches, he can vary the monotony of his professional life by fishing, shooting and boating —pleasures which men travel thousands of miles and spare no expense to compass. He can bring up his children hardy from the contact of sea air in a healthy, salubrious climate, milder than at Invercargill, and make sure of a provision for their future; a position it is impossible to attain on the main with the £300 or £400 a year, the usual remuneration of a professional surveyor of standing and ability. I have no fear of being able to got men on the conditions I propose: at any rate, tho first one I spoke to, an authorized surveyor of twelve years' standing, and one of the best in Otago, expressed his willingness to undertake the duty, without hesitation. General. I think, for the present, the localities I have indicated will suffice amply for immediate requirements. The island is not open for sale at present, and there is no occasion to declare it as such until every provision is made under "The Settlements Act, 1871," more particularly as it will not be lying waste, for the best description of settlement will be progressing, and its resources developed far better than by the land being alienated to speculators. I am getting the Admiralty survey of Stewart Island —which I found on my inspection, of that portion of the Province pretty correct as to outline —enlarged sufficiently to enable the blocks of land which I have recommended for immediate settlement to be defined on it, and will forward it on completion to your Honor; and, in the meanwhile, beg to forward by this mail a chart of the island, with the land available for settlement coloured pink, together with a copy of my report on it written in 1867, giving an account of the general features and capabilities of the various harbours. l" I purpose visiting the island towards the end of this summer, in connection with half-caste land claims and oyster-beds, and wiil endeavour to make arrangements with the settlers already located for the hospitable reception of the expected immigrants. In conclusion, I beg to state, if your Honor will be good enough to give me timely notice of the arrival of the first ship-load of immigrants, I will make arrangements to go over to the island, and afford them every assistance in my power to locate themselves satisfactorily. I have, &o, Walter H. Pearson, Commissioner of Crown Lands.

See Provincial Gazette of South January 1867 S

No. 17. Memorandum for the Agent-General, London. (No. 8, 1872.) Public Works Office, Wellington, 20th January, 1872 The Government have read with much interest the account of your immigration proceedings in Great Britain and Scandinavia, as detailed in various letters, and more particularly in that of 16th November. The small result of your efforts in Great Britain has not altogether been a matter of surprise, because the Government had previously been fully sensible of the evils that must ensue from the working of the varied Provincial regulations you were instructed to carry out, and which, until the legislation of last Session, the Government had no power to alter. By the first mail after the passing of " The Immigration and Public Works Act Amendment Act, 1871," you were informed that complete immigration powers had been conferred on the Government, and that one of the first defects they endeavoured to remedy was the putting of both classes of immigration, nominated and assisted, on respectively uniform systems. Of the regulations issued in reference to nominated immigration, or that immigration which originates in the Colony, I enclose a copy ; but, as you are already aware, the Government have, for the present, in the absence of the information necessary to guide them, devolved upon you the initiation of a uniform system of assisted immigration, or that immigration which originates in Europe. The Government approve of the system you have set on foot in relation to immigration from the Continent, and of the highly satisfactory shipping arrangements reported; and they await with anxiety information as to the prospect there is of securing from Great Britain a proportionate immigration of the classes ordered under similar regulations, or, if need be, under others of a character oven more favourable to them.

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CORRESPONDENCE WITH THE