H.—9

20

The special claim at Callaghan's is said to yield very fair returns, and the fact that another large party has set in to work on the adjoining ground, and obtained a similar grant on favourable terms, would tend to confirm me in the opinion that the ventures in which they have embarked will prove highly remunerative. The new applicants propose to keep 100 men employed on the ground when their workings are opened up. I would therefore be inclined to give every encouragement to similar undertakings. A few parties are employed in prospecting in the vicinity of the Taipo River, where payable reefs are said to exist; but up to the present time nothing of importance has been discovered, so far as I am aware, and the prospectors seem to display but little energy. In conclusion, I would beg to state that I have every faith in the permanence and prosperity of the district, which continues to hold its own in spite of the loud complaints to be heard in other localities. Full statistical information will be found in the returns forwarded herewith. I have, &c, Gr. G. FITzGEEALD, The Under Secretary for Gold Fields, Wellington. Warden.

No. 10. Mr. Warden FitzGebald to the Undee Seceetaby for Gold Fields. Sic, — "Warden's Office, Kanieri, 2nd May, 1874. I have the honor, in compliance with your circular memorandum, to forward the enclosed returns filled up. Upon the condition of the Kanieri "Warden's district for the year ending 31st March last there ia not much to report. The district (if anything) has slightly increased in prosperity, and this is mainly owing to the works of the Kanieri Lake "Water-Race Company being in active progress, and providing work for a large number of the poorer class of miners, who have taken advantage of better wages given than they could have made by mining. During the year a number of miners from other districts (principally from Ross) have settled in the district, and are engaged either at mining or at work on the race above referred to. The total population of the Kanieri Warden's district (as ascertained by the late census) is 2,051, of whom thirty-three are Chinese. These, for the sake of convenience, I shall divide into sub-districts and describe separately, commencing with the town of Kanieri and its vicinity. This sub-district contains a population of about 500 souls, 300 of whom reside in the town. Of the remainder about eighty-five are miners, and are engaged in working the old ground around the Kanieri, known as the Old Terrace; and although some of it has been turned over thrice before, it still pays small wages for working. It is being sluiced away bodily. Some are at Tucker Flat, where the workings consist of sinking: when at a depth of about twenty feet a rather poor wash-dirt of about five feet in depth is found. The average earnings of the miners employed at these two places would be about £2 10s. per week. They are supplied with water by the Pioneer and United Water-Race Companies, who charge £3 10s. per sluice-head per week. This district also gives employment to about forty men engaged in cutting timber for the saw-mills, three of which are in the district. They cut large quantities, which is exported, principally to Melbourne and Lyttelton. "Woodstock sub-district lies on the south bank of the Hokitika River, and is distant from the Kanieri about one and a half miles. This is an old-established and still prosperous district. It contains a population of about 300. Mining is the only industry carried on. The depth of the ground varies from fifteen to forty feet, and is worked, the shallow ground by sluicing and the deeper by tunnelling. The yield varies from about £8 per man per week to £2 10s. Water is supplied by three Companies, who have brought in water-races at a great expense. The charge for water is about £3 10s. per week per sluice-head, and there is a very good supply the greater part of the year. On the same side of the Hokitika River, and along the Ocean Beach, is what is called the South Beach sub-district. The population of this part I estimate at 145, about thirty-five of whom only are miners. These are principally engaged in working the black sand deposits which the heavy tides leave after them, the others a defined but poor lead of gold that runs parallel with the beach, and distant about fifty yards from high watermark. There are several small farmers in this sub-district, who supply the surrounding miners. The Hokitika Hospital is also in this sub-district. The Blue Spur sub-district is distant from the Kanieri about five miles. It is the largest and most important sub-division of the Kanieri district. The population of the Blue Spur and the surrounding gullies and workings I estimate at 450. It is altogether a mining district, and dates back to the earliest settlement of the coast, since which time it has carried a large population. There are three or four large water-races in this district, brought in by private enterprise, which pay good dividends to the shareholders. They do not sell any of the water, but work the ground themselves. The Kanieri Lake water-race is being brought in to this place, and the miners are looking forward anxiously to its completion, as it will prove of very great benefit to the district. A dray road is in course of construction, being the first made in this locality. It will be of great benefit, as it will be the means of considerably cheapening the necessaries of life. The number engaged in mining I estimate at 220. The earnings vary from £9 a man down to £2 10s. a week. The Hauhau, Big, and Little Paddock, sub-district is distant about two miles from the Kanieri. It was a very important place about five or six years ago, when it was first worked, but now it is almost deserted. It is expected, however, that it will soon revive, as it is the terminus of the Kanieri Lake water-race. It is thought, when the race is brought in, it will be the means of giving employment to a great many in working the old ground, and as the want of water in this sub-district was always the great drawback, this will then in a great measure be remedied. The total population of the sub-district I estimate at 150 souls, of whom sixty are miners. The average earnings are about £2 15s. per man. The Kanieri River sub-district is distant from the Kanieri about five miles. There are not many employed in this locality, as the extent of the workings is rather limited. The workings are principally on the banks of the Kanieri River and its tributaries. The total population I estimate at seventy, and