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The total expenditure of this department for the year is 66,000l., leaving a large balance for new works to be carried out in 1858.

Magnetic Telegraph.

At the beginning of the past year there were only ten and a half miles of line open. At the close of 1857 there were ninety-four miles, with the line to the border rapidly approaching completion. The Gawler Line (twenty-nine and a half miles) was commenced in the middle of January, and was opened on the 14th of April 1857. The South-east Line was begun in April, and was opened to Goolwa in November. The working of these lines show encouraging results; they are not only capable of being self-supporting, but of yielding a good return on the outlay. The number of messages is more than double the number of those received in 1856, while the receipts have increased from 3661. to 1,1837. The telegraph department has been conducted satisfactorily, and the energy shown by Mr. Todd is most indefatigable.

Railways.

The operations on both lines during the latter end of 1857 were simply confined to the finishing of works in hand at the end of the first half year, and that from want of money for new works nothing was done beyond completing the line, then open to Smithfield, to its parliamentary terminus at Gawler Town.

The line to Levi's Wharf has not been laid down over the temporary bridge. This would have been finished some time back but for the non-arrival of some long timber from Melbourne. The expense of alteration and movement of the line will be thus avoided.

On the North Line the works for the completion of the railway to Gawler Town were so far advanced. in September as to allow of opening the whole length of line on October 5th, since which time it has continued in an efficient and safe state for working.

The gross profit on the working of the Port Line in 1857 was
Loss on North Line

£ S. d. 3,002 14 11

610 18 6

£2,491 16 5

The profit on the working of the railways during 1858 is expected to be about 6,000l.

Central Road Board.

The report furnished by the Road Board may be described as a list in extenso of all the contracts and different works let or undertaken by them, of which the particulars are subjoined.

The progress of the main road system during the period under review may be described as being as satisfactory as could be expected under present circumstances; although it is to be regretted that there are no means afforded of contrasting the works executed this year with those performed during preceding years.

The following is a condensed statement of the works performed during 1857.

North District.-Made new road 4 miles 14 roods 50 chains, at a total cost of 7,4187. 7s. 7d., or averaging 1,7741. per mile; and 35 miles 41 roods 50 chains repaired at a total cost of 10,335l. 38. 8d., or an average of 2914. per mile. Total expenditure, 17,7531. 11s. 3d. General condition of roads pretty good, except Port Road.

North-East District.-Made new road 5 miles 78 roods 75 chains, at an average cost of 1,848. per mile; repairs, 47 miles 60 chains at an average cost of 150l. per mile. Total expenditure, 26,0541. 8s. 8d.

per

South-Eastern District.-Made new road 7 miles 42 chains, at 15,0477. 8s. 10d. or 2,000 mile. Repairs, 20 miles at 3377. per mile. Total expenditure, 36,965l. 1s. 1d. State of roads good. South District.-Made new road 6 miles 20 yards, at an average cost of 1,672l. per mile. 170l. per mile for repairs. Total expenditure, 24,7877. 4s. 11d. State of roads generally good. The amount expended on public works in 1857 was 107,233l. 1s. 6d. Salaries, office, and incidental expenses and contingencies, 6,333l. 18s. 1d.

District Councils.

Although these institutions are not subordinate to nor under the direct control of this department, their connexion therewith as district road commissions affords reason for including some notice of them in this report.

As their operations are scattered over a very wide extent of country, and their works, although numerous, generally on a small scale, it would not be possible within reasonable limits to remark upon the operations of each. It will be observed that the amount expended in salaries and office expenses is equal to about one seventh of the sum spent on public improvement. This may to a great extent be attributed to the multiplication of district councils, the effect of whichis to increase only the expenses of management, without adding anything to the value or quantity of rateable property. It is hoped, however, that the year 1858 will show more satisfactory results, inasmuch as according to the resolution of the House of Assembly the measure of Government aid is the amount devoted exclusively to public improvements. I cannot, however, refrain from recording my conviction that it is generally undesirable to allow of the multiplication of small district councils. With respect to the table itself, I regret to state that I cannot place it before you as being absolutely correct. Every means has been taken in this department to verify the particulars relative to each council contained therein; but as out of forty-three district councils a large number of the returns furnished have been imperfect and occasionally contradictory, and have exhibited defects which it was not in my power to remedy or correct, the table cannot be looked upon as more than an approximation to the truth. There is no doubt that it is sufficiently correct for general purposes, but it cannot exhibit that minute accuracy which ought to characterise public statistics. While upon this subject I cannot

SOUTH

AUSTRALIA.

SOUTH

avoid remarking, that other transactions of district councils with this department are managed in a way AUSTRALIA. no less careless; and the large sum spent by the districts on salaries, &c. appears more disproportionate still when the loose way in which their business is managed is taken into account. I have entered somewhat fully into this matter in the hope that attention will be drawn to the subject, and proper remedies applied by the councils themselves.

The Honorable the Chief Secretary.

I have, &c.

ARTHUR BLYTH,

Commissioner of Public Works.

WESTERN AUSTRALIA.

No, 35,

WESTERN

AUSTRALIA.

No. 35.

Copy of DESPATCH from Governor KENNEDY to the Right Hon. H. LABOUCHERE, M. P.

(No. 56.)

Government House, Perth, May 13, 1858. (Received July 20, 1858.)

SIR,
I HAVE the honour to transmit the duplicate Blue Book for the year 1857, and to
offer the following remarks thereon.

REVENUE AND EXPENDITURE.

2. The actual revenue for 1857 amounted to 40,923l. 3s. 2d., against an expenditure of 45,0021. 18s. 4d. The estimated revenue amounted to 51,000l., and the estimated expenditure to 51,060l.

3. The actual revenue in 1856 amounted to 50,2271. 13s. 4d., and the actual expen diture for the same year amounted to 46,990.

4. It will thus appear that there was a falling off in the revenue of 1857, as compared with 1856, of 9,304l. 10s. 2d., while there was a decreased expenditure in 1857, as compared with 1856, of 1,9887.

5. It is necessary that I should offer some explanation of the deficiency of actual revenue received in 1857 as compared with that estimated.

6. Taking a comprehensive view of the transactions of the year, it will be observed that there is a gross deficiency of revenue as compared with the estimate of 10,000l., the whole of which may in general terms be attributed to the defalcation of the Customs receipts; 8,000 of this arose as follows:

Surplus quantity of spirits taken out of bond in 1856 beyond the require

ments of the year to evade the increased duty under new tariff; duty value £4,742 Tobacco in same manner

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2,142

150

£ 7,034

978

May 3, 1858.
Enclosure.

£8,012

The deficiency in the duties on tea, sugar, and ad valorem goods, will account for the remainder.

7. A careful consideration and comparison of the figures in the Blue Book for 1856 and 1857 will show that the deficiency in the latter year has not been caused by any decrease of consumption, but resulted from the measures adopted in 1856, when the tariff was raised on all imported goods, more especially upon spirits. This occasioned a complete clearance of the bonded stores of all imported goods, to evade the increased duties imposed by the new tariff, which came into operation in the month of August of that year.

8. It is unnecessary to comment upon the expenditure for 1857, which has been kept within the narrowest limits which the peculiar circumstances of the colony would permit, and has been as above shown 1,988/. less than that of 1856.

9. In corroboration of the views I have expressed as to the cause of the deficiency of revenue, and although it may not be strictly regular, I beg to append a comparative statement of the revenue received in the years 1857 and 1858 during the four months ending respectively on the 30th April 1857 and 30th April 1858. This Return shows indications of progress and prosperity, in every way most satisfactory, and exhibits an increase of revenue in the first four months of 1858 as compared with 1857 of 4,3081.

10. With the exception of harbour dues, which I am of opinion were over estimated WESTERN to the full amount of the deficiency, land sales affected by the discussion of the proposed Australia. new regulations to reduce the price of crown lands, and post office revenue somewhat decreased by alterations directed by the Postmaster General in England, the other heads of revenue afford favourable indications of prosperity, more particularly the land revenue, which exceeds the estimate by a sum of 7301. Whether a comparison of the revenue received in 1857 be made with the estimates or with the revenue received in 1856, I think it is evident, as before stated, that the revenue of 1856 was enhanced, and that of 1857 depreciated, by the quantity of goods taken out of bond in June and July 1856 to avoid the increased tariff.

11. I may, in connexion with this part of the subject, state that considerable depression to the trading interest in 1857 arose from the then existing uncertainty of the continuance or extent of transportation to this colony.

12. The public debt of the colony amounts to 11,043l. 15s. 7d., showing an increase upon the year 1856 of 2,3561. It must be remarked, however, that 1,2961. of this increase consists of sums due in the years 1855 and 1856 to Her Majesty's Government and to the Agent General, but not included in the amount of public debt in the Blue Book for the year 1856, in consequence of not having been at that time brought to account; and further, that an extraordinary expenditure which occurred in the year 1857 of 500l. for a printing press, and which will probably be covered by the saving on account of the public printing for the year 1858, prevented the application in the year 1857 of a like sum to the liquidation of the public debt. The deduction of these two sums (1,2967. and 5001.) will reduce the apparent increase from 2,3561. to 360l. I may perhaps be permitted to add that the increase in the revenue during the first four months of the year 1858, referred to in paragraph 9 of this Despatch, enabled me, in the month of April 1858, to remit a sum of 1,000l. to the Agent General, in reduction of the amount due to him, and that the debt of 1,3267. to the Western Australian Bank at the close of the year 1857 was paid off in January 1858, since which no further loan has been necessary.

PUBLIC WORKS.

13. No public work of importance has been undertaken during the year. The repairs of the immense extent of bad roads and temporary bridges throughout the colony have absorbed the sum of 2,2001. The Fremantle and Champion Bay landing jetties have been nearly completed. Large quantities of stone for metalling have been raised by convict labour, but funds are wanted to cart it out upon the roads.

POPULATION.

14. The returns show that the population is nearly stationary. Considerable numbers of the free population and conditionally pardoned convicts continue to leave the colony, and are replaced by free emigrants and probation prisoners from England. The comparative certainty which now exists as to the probable accession of both these classes has already produced most salutary results, and I am in a position to know that many emigrants who have foolishly left this colony, in the hope of bettering themselves elsewhere, would gladly return were the means at their disposal. While the temptation of gold-fields exists this migration must be expected to continue.

IMPORTS AND EXPORTS.

15. The value of imports in 1857 has decreased by the sum of 28,4061., which I attribute mainly to increased home protection, more especially in the articles of butter, cheese, bacon, hams, meat, fruit, wine, beer, and breadstuffs; while the exports have increased by a sum of 16,0381., principally lead, timber, wool, and potatoes. The exports are steadidly on the increase.

SHIPPING.

16. The amount of tonnage is largely increased, mainly by the mail steamers now calling at King George's Sound.

AGRICULTURE.

17. This important and principal interest is, I believe, in the soundest and most progressive state; horses, cattle, sheep, and pigs, steadily increasing, and the cultivators of land re-investing their profits in more extended operations. The increased production and consumption of breadstuffs is indicated by the erection of four new steam mills within the year, in one of which I am informed 17,000 bushels of wheat were ground within the year.

MINES AND FISHERIES.

WESTERN

AUSTRALIA. 18. The copper mines in the northern aistrict are most promising, the ore shipped to England realized 30l. per ton. Copper and lead abound in the northern district, and I have every hope of seeing ample capital ere long applied to the development of these valuable and natural resources.

Jan. 15, 1858.

Encl. 2.

19. The coast abounds in good fish, and whale fishing is highly remunerative.

20. I cannot ascertain, nor do I believe, that any specimens of gold have been found in the colony. Assertions to that effect have been made, but on no reliable authority that I can discover. I have no reason therefore to concur in the belief expressed that "gold will eventually be found in Western Australia to a large extent."

LAND SALES.

21. The amount received under this head during the year 1857 was 2,1997. against 3,4831. received in 1856. It cannot be expected that these sales will keep up without some accession of population and capital.

22. I am of opinion that the Land Sales for 1857 have been prejudiced to the extent of 1,000l. at least, by the anticipated reduction in the price of crown lands from 20s. per acre to 5s., the natural result of which has been to suspend the operations of intending cash purchasers. Mineral sections of land in the Victoria district have been purchased to some considerable extent.

23. Many tillage leases have been taken out instead of the land being purchased, to enable the lessees to take advantage of the pre-emptive right of purchasing in the event of the price of land being reduced.

LAND REVENUE.

24. The Land Revenue shows an increase of 7301. on the receipts of 1856. The increase under this head tends to decrease the land sales, and the advantages of preemptive right of purchase conferred upon the leaseholders, is in my opinion calculated to retard the permanent occupation and improvement of the country. The increase, however, indicates the growing requirements of the graziers.

POSTAGES.

25. The alterations established in the regulations in connection with the overland mail and other circumstances detailed in the accompanying letter from the Postmaster-General of this colony account for the apparent falling off.

ROTTNEST FARM.

26. This establishment is worked in the most satisfactory manner, and will I feel confident during the ensuing year prove more than entirely self-supporting. It affords. the only effective or humane means of checking native crime.

LEGISLATION.

27. There is nothing under this head calling for any remark, beyond the general explanations which accompanied the Ordinances when transmitted for approval.

EDUCATION.

28. The public schools to which Government aid is granted are conducted, as nearly as local circumstances will permit, on the system of the Irish National Board, superintended by a board of gentlemen appointed by the Governor. The system works well, and affords general satisfaction. The annual report of the Board is in the printer's hands, and will be transmitted.

JUDICIAL.

29. I think the constitution of the Courts is inadequate to the requirements of the colony.

POLICE.

30. The force for the whole of this extended territory consists at present of 1 acting superintendent, 8 serjeants, 2 corporals, 24 mounted, 26 foot constables, with 13 native assistants. It is sufficient to say of their efficiency that crime of any degree seldom goes undetected.

CLERGY.

31. The ready sanction of Her Majesty s Government for the employment and payment of chaplains, of whatever denomination, for the instruction and guidance of the convict population is a great boon to the whole community.

CRIME.

32. The returns of criminal prosecutions at the General Quarter Sessions during the year 1857 show the following results:

1 wounding with intent, &c.

1 arson of a dwelling house.

1 rape.

1 attempt at rape.

2 forgeries of bank cheques.
1 robbery from the person.
6 larcenies.

1 receiving stolen goods.

1 assault of the person.

15

33. Of the above, 14 were Europeans, and 1 a Chinaman. Of the 14 Europeans, 10 were conditionally pardoned convicts, 2 ticket-of-leave holders, and 2 free men.

34. Two of the number were executed, 6 adjudged penal servitude from 4 to 8 years, and seven to imprisonment from 6 months to 3 years.

35. A reference to my Annual Report for 1856 will show that in 1855 there were 56 criminals tried, and 7 executed; in 1856 there were 29 criminals of all grades tried before the General Quarter Sessions, while in the year 1857, now reported upon, there were but 15. When these facts are taken in connection with the increased number of convicts and the decreased number of re-convictions to the convict establishment and revoked licences, they afford unmistakeable proof of the success of the system pursued in the reformation of criminals in the establishment, and the efficiency of the means adopted to repress and detect crime when they are liberated. I can confidently reiterate my statement of last year, that "the general security for life and property in this colony equals that in any part of Her Majesty's dominions, and far exceeds that existing in communities of much higher pretensions." It is not only that such security exists, but the public enjoy a full sense of it. Though I have given my earnest attention to this important subject since I assumed the government, I confess the results have far exceeded my expectations, and place me under a substantial obligation to the officers to whose efforts they are attributable.

GENERAL REMARKS.

36. The doubts and uncertainty which existed as to the continuance of transportation to this colony in the early part of 1857, together with the depreciating tone of some leading English journals as to its resources and capabilities for a penal settlement, had an undoubtedly damaging effect upon the progress of the colony, unsettled the public mind, and impeded trade. The last six months of the year have witnessed the development of various resources since the doubt and uncertainty have been dispelled, and justify the belief that the colony has never before been in so sound or progressive a condition. A large quantity of the finest agricultural land has been taken up and occupied in the Victoria district, 500 tons of copper ore have been shipped from the same locality, some of which realized 331. per ton. There is an acknowledged improvement and extension of business of whatever kind. I am informed, on the best authority, that the bank deposits have largely increased, while overdue bills have been still more extensively decreased, and that the profits of the Western Australian Bank from discounts indicate a substantial improvement in the extent and character of mercantile transactions.

37. I have only, in conclusion, to hope that you will find the various contents of the Blue Book for 1857 accurate and satisfactory.

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I have, &c.
(Signed) A. E. KENNEDY,
Governor.

WESTERN AUSTRALIA.

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