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reasons, to attempt the formation of settlements of this kind to the southward of Port Macquarie, or on any part of the coast between that settlement and Bass's Straits. To the northward of Port Macquarie it would be comparatively easy to exclude ardent spirits from any settlement on the coast, but it would scarcely be possible to do so to the southward. Besides, the southern districts of the colony being the division of the territory to which the tide of voluntary emigration is now rapidly tending, while the open and pastoral character of the country in that direction would greatly facilitate the escape of convicts to the neighbouring colony of Southern Australia; it would be highly expedient to confine the experiment of employing convicts in preparing settlements for free emigrants to the northern parts of the territory.