C 4-2

13

ing bodies in mining districts, which have to incur large expenditure in the construction and maintenance of roads, &c, which are of direct benefit to the companies engaged in mining. It might be inferred from some of the statements made that the legislation in question was specially brought into operation since the introduction of capital from, outside the colony for the development of mining. This, however, has not been the case, as the measures have been in existence for years past; and the land was occupied and companies were formed with full knowledge of the then existing laws and regulations, and of the obligations incumbent upon them. At the same time, due consideration has evidently not been given by investors to the general interest displayed by the Legislature in promoting the industry by large annual contributions from the Public Works Fund towards the construction of roads, bridges, and tracks, assistance towards prospecting, the development of deep levels, and other works. DEPARTMENTAL. " New Zealand Mines Eecoed." The publication of " The New Zealand Mines Eecord," which was commenced by the Mining Bureau in August, 1897, has been continued monthly. Judging by the inquiries received from Australia, Great Britain, the United States, and South Africa, the " Eecord " is scanned for information by those who have already invested, and by many persons who may have an idea of putting a portion of their spare capital into mining investments in New Zealand; while articles on improved gold-saving and milling appliances enable mining men in this colony to keep abreast of the times. The monthly publication of battery returns and statistics, initiated by the Bureau, has been followed in Western Australia, and is in contemplation by the Governments of other colonies. Geological reports and special articles have been reprinted from the " Eecord," and copies forwarded to the Agent-General; others have been put into pamphlet form for circulation amongst the miners. CONCLUSION. In conclusion, I would point out that the state of the mining industry is now on a more stable basis than was the case last year. A large number of claims that were taken up for purely speculative purposes have been abandoned, and it may now be assumed that the areas held will be developed by steady prospecting and intelligent conduct of operations, which, with careful and economical management, should, in the majority of cases, prove remunerative. The prosperity of the industry has, no doubt, received a check from the undue speculation which prevailed during the recent " boom " in the North, but the amount of capital already invested, and still being invested in the development of the more prominent mines will, it is anticipated, secure fair returns. I cannot, however, too strongly impress upon all persons who may be interested in gold-mining the advisableness of opening up and developing their mines before proceeding with the erection of expensive machinery and appliances for treatment of the ores. In the southern districts capital is being freely invested in the dredging industry, and if ordinary precautions are taken to avoid the errors fallen into elsewhere, there is little doubt that an increased yield of gold will result in the employment of a large number of men. Eenewed attention is being paid to hydraulic sluicing in the West Coast, Otago, and Southland Districts, where prospects appear favourable. The construction of roads and tracks for opening up new fields, and also for improving the means of communication in the older districts, is still of urgent necessity, and ample provision must again be made for the vigorous continuance of necessary works. In order to aid in the further development of the industry, substantial grants will also be required for prospecting, waterconservation, and deep-level mining.