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As to the two systems in force for taking up land, that by agricultural lease seems to be most in favour, and naturally so, considering that residence is not a condition that it is possible to assign, that the improvement conditions are not so stringent, and that an agricultural leaseholder may take advantage of the deferred-payment system to acquire the freehold by exchanging his lease—67 have been exchanged in this way in this district. In my opinion, only one system should prevail; indeed, I think it is time to do away with any disposal of the land by the Gold-Fields Act; but before that is done, the deferred-payment system, under the Waste Lands Act, would require to be made less stringent, perhaps not as to residence and improvements, but certainly as to the power of assignment. As at present administered, it is not possible, even if a licensee dies, for his executors to assign. I have, &c, Maurice Simpson, The Under Secretary for Gold Fields, "Wellington. "Warden.

No. 6. Mr. "Warden Eobinson to the Uitdeb Secretary for Gold Fields. Sir, — "Warden's Office, Naseby, Ist April, 1876. I have the honor to report upon the Mount Ida District for the past year as follows: — 1. The year that has just gone by has, so far as the elements of nature have been concerned, been a particularly good season for gold mining. There has been more moisture than usual, and this has given the miners a supply of water for sluicing purposes such as is by no means to be reckoned on for every year. Bnt while natural causes have been favourable to mining, other influences have been at work which have been decidedly inimical. Among these, the most important has been the attraction of high wages and constant employment on public works. This attraction, which I had to notice in my report of last year as a cause of depression of the mining interest, has continued to operate in the same direction, and has in every part of the district prevented any increase of population, while in some localities it has seriously diminished the number of working gold miners. In the vicinity of Naseby, it was to have been expected that this depression would have been in a great measure counteracted by the benefit to be derived from the completion of tho Government water race and sludge channel. But I regret to have to report that those works are still uncompleted, and that several months will probably elapse before the public will begin to derive any benefit from them. 3. Notwithstanding the small number of miners actually at work, and the almost total lack of enterprise in mining affairs, the yield of gold has kept up remarkably well. The total quantity sent down by escort for the year has been 17,053 oz. 19 dwts., as against 17,142 oz. 12 dwts. for the year ending 31st March, 1875, showing thus a falling-ofl' of only 90 oz. 4. To encourage a more steady and systematic method of mining, and so to promote the settlement of miners, I have during this year exercised the powers conferred on me as "Warden under regulation 4 of the Otago Gold Fields Eulcs and Begulations, and have declared the whole of the Mount Ida District open for occupation in claims of one acre per man. The miners have not been slow to take advantage of the privilege, and a large number of such "extended claims" are now held. 5. I ha,ve already made allusion to the long delay in tho completion of the Government race and channel. About sixty-seven miles of the head race have been made, so far as the work of contractors is concerned; and the Government engineers are now about to staunch that portion of the race, so as to bring a supply of water in, without waiting until the actual head of the race is carried up to the main source of supply in the right-hand branch of the Biver Manuherikia. It is estimated that a considerable stream of water can be brought in from the small creeks that can be picked up along the course of the race. For this water a ready market could at once be found, and thus the Government might begin to reap some return for tho heavy outlay incurred. The sludge channel also is now to be brought up to within a mile of the point to which it was originally intended to carry it. This work is already let as a contract, and it is understood that it is to be pushed on with all convenient despatch. 6. The effect of these arrangements will, if successfully carried out, be to afford an opening for the employment of a number of additional miners iv Naseby and the neighbourhood. Already, in anticipation of the channel being soon made available for the purposes for which it was planned, nearly fifty acres of ground have been taken up by men who oondfide intend to work it; and it is certain that others will be ready to avail themselves of the advantage so soon as the channel is open for use, as a means of working the good ground now lying idle for want of fall to work it. 7. It is thus reasonable to expect that next year will witness a marked improvement in mining affairs in this part of the country. 8. At St Bathan's, a work of considerable importance is being steadily carried forward by private enterprise. I refer to the Muddy Creek Channel, of which I gave some account in my last report. The channel has now been constructed up Muddy Creek beyond the crossing of the road between Hill's Creek and St. Bathan's, and the road is taken over it by a substantial bridge, constructed partly at the expense of the owners of the channel, and partly at that of the Provincial Government. In the construction of this work, the party (Williams, Hanrohan, and Company) have not only shown great courage and determination, but also considerable engineering skill. The channel, when completed, is intended to be used as the means of working a large special claim. The claim has been granted for a period of twenty-one years ; but the men inform me that they expect it will take much more time than that to exhaust the ground that the race will command 9. Fullarton's Diggings, which for a long time were deserted, have recently been attracting a good deal of attention. The " deep sinking " there was very rich, but the ground has for years been abandoned, in consequence of the difficulty of working. For years past many miners have wistfully regarded the rich deep ground which they have confidently believed to be left there, but none have had the courage to attempt the work of getting it. The situation of the working is peculiar, the sinking being on the top of a fiat-capped hill, the sides of which are of hard schist rock. It seems as if the 2—H. 3.