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emigrates as a permanent settler—he always returns to India; and, in the second place, he always comes to do work which the European is unable, or rather which it would not pay him, to do. The prejudices of the Queenslanders have given way before the profits of black labour, and such would probably be the case in New Zealand. 10. It seems to me, however—if I may be permitted to make the suggestion, of which to obtain your consideration is the object of addressing this letter to you —that both black labour and the production of tobacco and other valuable products, to which I will presently refer, may with advantage be made Government monopolies for the benefit of the whole white population, by raising a fund to meet expenditure now defrayed by taxation. A large revenue might be raised in the North Island from the cultivation of special crops by black labour, and if the introduction of Indian coolies were to take this form, and the white population made to understand that it was undertaken solely for their benefit, without any chance of foreign labour being brought into competition with home labour, popular feeling might be favourable enough to the measure. 11. I could name more thau one Indian gentleman, whether of the military, civilian, or planter class, who would willingly undertake the management of estates worked by Indian coolies, on behalf of Government, for a very small remuneration, either in the form of land or money, for the sake of having something to do in a good climate. Indian officials like work and dread an idle life, and want occupation and a healthy atmosphere more than money. Indeed, as far as profit and personal advantages are concerned, they would rather be allowed to bring coolies and work them for their own benefit. I have, at any rate, met many who wish to go to New Zealand, who would willingly undertake, on their own behalf, this experiment. But lam not now writing for the benefit of intending colonists from India. My sole motive is to place before you a suggestion for the good and advantage of New Zealand, to which I have given much thought and consideration. 12. I myself have for some years decided to settle in New Zealand, if I live out my term of service, but for the next ten years lam tied to this country. I can, however, during that ten years, have three years' furlough, which I shall probably spend in New Zealand. The only personal ambition which I have is that of looking forward to congeuial occupation in as good a climate as possible, and I require no further pecuniary interest (any one who knows Indian officials will understand the feeling); and if you are of opinion that the idea to which I have given expression is capable of development I shall have as much pleasure in devoting my energies to assist in carrying it out, as I have in promoting very similar objects in this country. My suggestion is to act just as the Indian Government acted in pioneering the cultivation of tea, opium, &c, and now tobacco— i.e., try experiments on a small scale, and, if they show that material profits can be made, extend them indefinitely as Government monopolies ; only that the Indian Government, while extending cultivation, have reserved to themselves the monopoly of nothing but opium. 13. The "other products " to which I have referred, and which I am convinced cannot be profitably undertaken by white labour, are tea, sugar, opium, and coffee. Which of them would thrive in the New Zealand climate must be left to experiment, but, in my belief, opium and coffee certainly would. Tea does exceedingly well 3,000 feet above the level of the sea, north of the Punjaub, further from the equator than Auckland (in the Kangra Valley of Himalayas), and I am now staying at a large tea plantation in Kumaon, 6,000 feet above the sea level, where snow lies two or three mouths in the winter. It is true that the out-turn in a hotter region is larger, but the quality is better in the colder. New Zealand, however, in the North Island, has no such extreme cold, and would probably give both quality and out-turn. Showery weather is indispensable for tea, and New Zealand, therefore, would grow for the whole colonies, since Australia, where hot enough, is too dry. 14. I have lately read the number of the Statistical Society's Journal containing a discussion on New Zealand finance, which more than ever convinces me that the wealth of that country should be developed more quickly from its internal resources —a process which is retarded by the smallness of the population and by the very high price of labour. Is not the large proportion which wool-growing forms in New Zealand wealth owing to the fact that the labour of growing wool is performed by nature and sheep, and not by men ? What objection is there to making coolie labour (procurable at once in large quantities) supplement the resources provided by New Zealand grass, and develop wealth iv other directions, at any rate pending the growth of European population. 15. I have laid great stress upon tobacco cultivation, because I am convinced that the New Zealand climate is so eminently suited to its production that the leaf produced there would at once take a high position in competition with the produce of other parts of the world. The atmospheric conditions are precisely those under which it would acquire a perfect flavour, just as in the case of fruit. If I am right, a very large sale would be effected for other countries, and New Zealand would then challenge Virginia, where, since the emancipation of slaves, labourcost is increasing. India, of course, cau grow tobacco more cheaply still, but the climate is not good enough to allow the acquisition of the finest flavour. 16. Java is a country in which tobacco cultivation has within the last few years made great progress, and where, to use the words of Mr. Cameron, of Sydney, " planters are making rapid fortunes." There the price paid to a cultivator for a tobacco plant is twice what it is in India,