G.—No. 31.

PROVINCE OF AUCKLAND. The returns from the Thames and Coromandel Gold Fields accompanying this Report will be found on inspection much more complete than those laid before the House of Representatives last year. Considerable care has been taken to bring them as near as possible up to the close of the year ending 30th June. The year just closed promised at its commencement to be one of depression, especially on that portion of the Gold Fields situated at the Thames. A large area of ground had been abandoned, the results being the loss of employment to numbers of working miners, the cessation of crushing operations, and general slackness of trade in the townships. The number of miners' rights issued in the year 1870 was only (on the Thames) 3,296, while in 1869 there were issued 9,435, and in 186S there were 11,585. Tho population of the field also decreased. As near as could be ascertained, in January, 1870, the population on the gold fields was approaching 15,000, while the census taken in January, 1871, of the whole electoral district of Thames, does not much exceed 12,000. The cause of the depression thus briefly referred to is not far to seek. It is to be found in the wholesale taking up of supposed auriferous country, in the hope of selling it for large sums of money, and the formation of Companies based on value utterly fallacious, the country being entirely unproved, or rather unprospected. —The number of Companies in existence eighteen months ago, and the number now working and quoted on the share market, may also be for a moment glanced at. Companies with a nominal capital of about £7,000,000 were in existence at the beginning of the year 1870, while since then, through the action of the Official Agent in liquidation, 135 Companies have been or are in course of being wound up. The number of Companies is thereby reduced to 130, with a nominal capital of £3,030,719. Notwithstanding the depression, the old claims worked steadily on, and continued to pay handsome dividends. A large area of country was also being carefully prospected, as will be seen on reference to Table " C." As many as 194 Claims or Companies, not including small crushings, had crushings, with a total result, as far as can be ascertained, of 103,084 tons crushed, yielding 285,763 oz. gold, " melted" and " unmelted," or an average of about 2-J oz. to tho ton. —An alteration has been made in the form of the gold return. Work had been suspended for portions of the year on so many of the batteries, and some of them had changed owners, so that it was thought better to take the best published monthly returns available, and make a return from them. This has been done, and the result is as in Table " C." It may be said that the large yield of gold is the product of very few claims, but, as the return shows, the field is not idle. The money received from such claims is largely reinvested, and will result ultimately in a thorough prospecting of the field. These facts, thus briefly alluded to, show that the tone of the mining community is restored in a large degree, and, with the increase of confidence, combined with the increased investment of capital, such improvement will doubtless continue. There has not been any great addition to the crushing power during the year, although Coromandel has added seventy-four stamps to the return. The present crushing power is quite inadequate to the demand, especially for the claims lying round the celebrated auriferous ground in proximity to the Moanataiari and Kurunui Creeks. Many machines were erected in out-of-the-way places, and have not been in work at all. Such batteries, there can be no doubt, will ultimately be removed to the foreshore; in fact the anxious desire of batteryowners and capitalists is to concentrate crushing operations on the beach, the convenience in obtaining water, and the lessening of expense in the cartage and freight of fuel on the tramways, being results most desirable to be attained. It is to be hoped that the vexed question of the ownership of the foreshore will speedily be settled, as it is a matter of supreme importance, not only to the mining community at the Thames, but to the Colony generally. It would not be desirable to have it understood that no other portion of the gold field is progressing except that above referred to ;_ the Tararu District is advancing, many of the claims being a long distance from the beach, some of them as much as from four to five miles. The Karaka and Hape Creeks are also assuming a state of activity not seen for a year or two past. Coromandel, from the richness of its claims, will in next year's return doubtless stand second to no other section of the gold fields. During the year some progress has been made in the districts in respect of public works. The tramway system has been commenced at Coromandel, and found to work most successfully ; further extensions will be made as necessity may require. A wharf has also been erected at Coromandel, and some progress made in the formation of roads in the township. On the Thames it is intended to extend the Tararu Tramway, and concessions have been made to enable a public company to lay a rail or tramway from Tararu to the townships along the beach. Temporary water supply for the townships has been provided for, and surveys are in progress for a water supply to the townships and diggings, of a very extensive character. It is confidently expected that an ample supply of pure water for all purposes will be brought in from the Kaueranga Stream in the course of a few months. Private enterprise is now engaged on wharf extension at Grahamstown, a want greatly felt, not only by passengers to and from the gold fields, but also in the traffic in coals and general merchandise. The revenue received from Customs has steadily increased during the year; and were the harbour accommodation of a more convenient order, a large department would be required to meet the necessities of the district. A return is rendered of tho position of the townships. The townships of Shortland and Grahamstown are under the- control of three Highway Boards, and from the return of expenditure an estimate

FURTHER REPORTS ON THE GOLD FIELDS OF NEW ZEALAND.