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duty if we ventured to import them; and, if so, this would amount almost to prohibition. We notice among the decisions made by the Commissioner of Customs that " coloured yarns " for heading blankets are subject to duty. The reason for this is, no doubt, that these yarns might be used for making hosiery ; and we think it quite right that such yarns should be dutiable. The yarns we refer to, however, are not open to this objection. They can be used for no other purpose than weaving; and we think we can also assert that, unless admitted free, they cannot be imported into the colony at all: so that by their exemption the revenue would not suffer. We enclose a sample, and trust you will see that there is no danger of the exemption of these being made a loophole for other yarns, properly dutiable, to escape free. If you approve of our suggestion, we shall feel obliged by your seeing the Commissioner of Customs on the matter, and, if he has the power under the present tariff, getting him to place " all yarns for weaving purposes only " on the list of exemptions. If he has not the power, would you kindly bring the matter before the other members of the Government in due form and time, and, if possible, obtain the concession during this session ? Apologizing for thus troubling you when your hands must be very full of important business, We have, &c, EOSS AND G-LENDINING.

Memorandum from the Hon. Thomas Dick to the Chairman, Local Industries Commission. This seems to be a matter connected with your Commission, and I therefore take the liberty of forwarding the letter for your consideration. Thomas Dick.

No. 145. [ Mr. W. Seed to the Hon. Thomas Dick, M.H.E. (forwarded to Local Industries Commission). sth June, 1880. The accompanying sample of weaving-yarn comes under the denomination " Woollen manufactures," and is therefore liable to duty 15 per cent, ad valorem under the present tariff. If it be thought desirable to amend the tariff so as to admit these fine yarns duty-free, the degree of fineness should be particularly and definitely specified ; otherwise it might be found that the woollen factories would import all their yarns from Home, and simply weave them up here, and even give up making the coarser yarns from which they now make tweeds and blankets, &c. Probably there is some trade name by which fine yarns are known. Messrs. Ross and Grlendining could, perhaps, supply this information. Of course the admission of yarns duty-free would have the effect of reducing the receipts of duties on the imported woollens made at Home of these yarns. W. Seed.

No. 146. Mr. John H. Moeeison, Manager of the Mosgiel Woollen Factory, to the Chairman of the Local Industries Commission. Sib, — Dunedin, 9th June, 1880. I have the honor to acknowledge the receipt of your letter dated Wellington, 7th June, in which was enclosed Messrs. Eoss and Glendining's letter on the subject of " weaving-yarns." As requested by you, I have brought the matter before the directors of this Company, and am instructed to reply as follows : — 1. The Company oppose the application of Messrs. Eoss and Glendining, inasmuch as the exemption asked for is on an article (as per sample) which can only be used in very small quantities in the manufacture of tweeds, and the Company considers that the 15-per-cent. duty at present payable upon what would be required represents merely an infinitesimal charge on the value of the manufactured tweeds. 2. The Company are more, or quite as much, interested in the matter as Messrs. Eoss and Glendining, and they see no hardship in having- to pay 15 per cent, duty upon any yarns they may import. They contemplate importing these fine worsted yarns, and will make no objection to the payment of the duty. 3. The exemption of " all yarns for weaving purposes only " will make an opening for the introduction of almost any class of yarns. The Company considers that if this is granted it will mean ruination to the native woollen industry, instead of acting as a stimulus, as the making of tweeds could then be carried on by the establishment of weaving and finishing mills only, thus handicapping the present factories, who are producing entirely from the raw material. I have, &c, John H. Moeeison, Manager.

No. 147. Telegram from Mr. Isaac Wilson, Chairman, Kaiapoi Woollen Company, to Mr. Commissioner A. J. Burns, at Wellington. Kaiapoi, 11th June, 1880. Pine yarn for weaving could be used to advantage if duty-free, and also cotton warps for cheap blankets ; but we would not ask for either. We think "a, small additional duty would enable manufacturers to make all kinds of woollen goods by labour employed in New Zealand and of New Zealand wool. If weaving-yarn were free, hosiery-manufacturers would want their yarn free : this would be a great loss to us. Isaac Wilson, Chairman, Kaiapoi Woollen Company.