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last month. The Chinese have also spread over the locality, working in the beds and on the low banks of the creeks, having a strong objection to tunnelling or working in any form underground. In the Arnold Subdistrict, the population is estimated at 317 Europeans and 103 Chinese, of whom 130 Europeans and 70 Chinese are engaged in mining operations, chiefly ground-sluicing and tunnelling, at Maori Gully, AVaimea, Still-water Creek, Brown's Terrace, and Italian and Reilly's Gullies. Water is very scarce in some of these localities, so much so that the Chinese may frequently be seen working with tho old cradle, and carefully saving every drop of water. In February last a very considerable amount of damage was done to several of the claims, water rights, and dams throughout the whole district. The Hibernian AVater-race was swept away in several places, and is now lying almost a complete wreck, and will require an outlay of over £800 to effect repairs. The New River Race was also seriously damaged, and the company have stopped all works for some time, owing to some misunderstanding with the Government regarding the subsidies. Two prospecting parties were formed, one in the Arnold District and one in the Clifton District, supported by the storekeepers, but after several weeks' prospecting were broken up, the result not proving satisfactory. The population of the town of Greymouth, now estimated at 2,630, shows a considerable decrease as compared with last year, but this is readily accounted for by the rush to the Kumara in August and September last. Good substantial buildings are being erected, principally residences and shops, but the uncertainty of the tenure of the Maori property is a great obstacle to the erection of stone and brick buildings ; but generally the town is prosperous and shows signs of advancement, and the contractors for the harbour works have begun operations. The State school, designed by Messrs. Young Brothers, was completed and opened in November last. It accommodates 400 children, and another wing, capable of accommodating 300 more children, can be added at any time if requisite. The Roman Catholic school (a school under the 40th clause of the Education Ordinance) will accommodate 200 children. Schools under the Central Board have also been opened at Paroa, Marsden, Dunganville, Maori Gully, and AVallsend. Sittings of the Resident Magistrate's and Warden's Courts have been regularly held at Greymouth, and once a month at Dunganville and Maori Gully, where the officers in charge of police act as receivers of gold revenue, to issue miners' rights, business licenses, and notices of application, and issue summonses for the Courts ; but litigation is very small, and there has been a total absence of any serious crime iv the district. The statistical returns already forwarded show that 173 head-races (capable of conveying 363 heads of water a distance of 233 miles), 123 tail-races, and 366 dams, of the value of £26,393, were registered during the year, which, added to the mining plant and machinery, estimated at £1,092, and the property of the Registered Water-race Company, estimated at £13,500, show the total value of all mining property to be £40,985. I append herewith a return showing the population, revenue, leases disposed of, and rights, licenses, and regulations issued during the year. I have, &c, W. H. Retell, The Under Secretary for Gold Fields, Wellington. Warden.

Enclosures in No. 10. THE population of the district is estimated at 4,208 souls, and is located as under: —

Europeans. Chinese. Totals. rreymouth, Town of 'aroa District L.rnold District !lif ton District 2,600 463 317 375 30 115 103 ■ 205 2,630 578 420 580 Total 3,755 453 4,208 ;etuen of Cases disposed of in the Resident Magistrate's and Warden's Courts during the Year, as follows:— Civil. Criminal. Wardens. Totals. Ireymouth llifton irnold 619 18 20 185 10 1 3 2 7 807 30 28 Total 657 196 12 865