33. I have reduced several police-stations on the recommendation of Captain Smith, the superintendent, which appeared to be no longer necessary; but, on the other hand, I have extended police protection into outlying districts, both for the benefit of European settlers and of the aboriginal inhabitants. These latter have gained little and lost much by the occupation of their country by settlement. I have fought their battle against cruel wrong and oppression, holding, I trust, the hand of justice with an even balance, and I rejoice to say not without effect and benefit to both races. Their services as stockmen, shepherds, and pearlers are invaluable; and when they die out, as shortly no doubt they will, their disappearance will be universally acknowledged as a great loss to the colonists.

34. The Legislature, I am happy to say, have latterly seconded my efforts by encouraging industrial inst.i.tutions for their benefit. Similarly they have in the last session turned their attention to the condition of the dest.i.tute and criminal children of our own race; and, in my own sphere, I have done what was possible for the encouragement of the (denominational) orphanages which have been long established and are in full working order. This colony is, for its size and means, well supplied with hospitals, asylums, and establishments for paupers, in which I have taken great personal interest.

35. In legislation I have endeavoured to avoid over-legislation and premature legislation. I have considered that free-trade principles are especially in place in a colony situated as this is. The ad valorem duty, and that on wines, spirits, and a few other articles, has been raised for revenue purposes; some others have been put on the free list. I successfully resisted the imposition of a duty on flour; I should have simplified the tariff still further than I have done, and admitted free many more articles--some of food, others used in our industries--had the Legislature not objected; the tariff as it stands is inconsistent. The English bankruptcy system has been introduced, and an Act pa.s.sed regarding fraudulent debtors; distillation has been permitted under proper safeguards; Sunday closing of public-houses has been rendered compulsory with good effect; a Lunacy Bill on the English model has become law; the Torrens Land Registration system has been adopted, and will shortly be put into force. Many equally important measures are alluded to in their places in the pages of this despatch, and I will not inflict upon your lordship a list of many minor Acts, some not unimportant, which have proved beneficial in their degree.

36. Among lesser but not unimportant matters, I may mention that I have extended the system of taking security from Government officers in receipt of public moneys.

The commencement of a law and parliamentary library has been made.

37. Immigration from England has, on a small scale, been set on foot lately, and families are now expected from neighbouring colonies, but our population from obvious causes has increased but slightly during the last five years; on my arrival it was said to be actually decreasing, and there were many reasons why such an opinion was not unreasonable--reduction of the convict establishment threw some out of employment, expirees also desired to quit a country which to them had been a land of bondage, and the prospects of the country were gloomy; now there is a great want of labour, any that comes is at once absorbed, and every effort should be made to attract a constant stream of immigrants.

38. It will be observed that when the whole authorized loan is raised, the colony will be only in debt to the extent of a little over one year"s income, or 5 pounds 16 shillings 5 1/4 pence a head, whilst Victoria is indebted 15 pounds 14 shillings 10 3/4 pence, New South Wales 19 pounds 7 shillings, South Australia 10 pounds 19 shillings 5 pence, Queensland 32 pounds 12 shillings 7 3/4 pence, Tasmania 14 pounds 3 shillings 6 3/4 pence, New Zealand 40 pounds 5 shillings 11 pence. I beg also to call your lordship"s attention to the fact that Western Australia has only yet spent the 35,000 pound loan, and has now only begun to spend that of 100,000 pounds. I also would point out that the last annual increase of revenue has about equalled the whole capital amount which has been expended out of loans.

39. I have caused the following statistics to be furnished me from the Treasury and Customs Departments for six years, ending on the 30th September of each year. The first year given, that ending on the 30th September, 1869, is the year immediately preceding my arrival, I having been sworn in on that very day.

TREASURY AND CUSTOMS DEPARTMENTS STATISTICS FOR SIX YEARS TO 1874 IN POUNDS/SHILLINGS/PENCE.

COLUMN 1: CATEGORY.

COLUMN 2: 1869.

COLUMN 3: 1870.

COLUMN 4: 1871.

COLUMN 5: 1872.

COLUMN 6: 1873.

COLUMN 7: 1874.

*Imports : 232,830/0/11 : 232,590/18/8 : 201,070/3/4 : 224,396/10/0 : 253,680/16/2 : 367,417/15/0.

**Exports : 178,860/15/2 : 204,447/2/2 : 194,934/9/3 : 228,807/12/9 : 278,502/16/0 : 398,900/8/6.

***Customs duties : 48,157/8/9 : 45,270/14/6 : 43,464/2/3 : 53,556/4/5 : 60,022/1/1 : 82,016/12/0.

****Revenue : 108,600/1/0 : 109,978/6/3 : 102,128/3/4 : 107,828/5/10 : 120,937/14/8 : 161,443/8/10.

****Expenditure : 107,213/1/10 : 119,478/8/4 : 112,285/10/7 : 103,205/16/0 : 120,259/11/9 : 131,334/18/5.

OBSERVATIONS.

*Ships now expected will greatly swell the items of Imports and Customs.

**This is exclusive of RE-exported articles, and the valuations are very moderate. In round numbers, the Exports may be said to be over 400,000 pounds.

***Part of the increase of Customs duties is owing to increase of duties on spirits, wines, and some other items; and ad valorem, on the other hand, credit should be given for some articles which have been admitted free. Taking the balance as the amount accruing from increase of duties, it may be put at 12,000 pounds on the last year.

****It will be observed that for some time, until better seasons returned and measures bore fruit, I had to a slight extent to rely on the surplus found in the chest to make Revenue and Expenditure meet. To have starved the Expenditure at that time would have been to have damaged the future progress of the colony, and the Legislative Council opposed several reductions that I thought might have been effected.

On the 30th September, 1874, there was a sum of 36,616 pounds 3 shillings 5 pence in the chest, and something like this sum will be at the disposal of the Legislature at their meeting, beyond current revenue.

40. I need hardly say that the commercial state of the colony is admittedly sound, and I am informed in a more prosperous condition than at any previous period of its existence. Landed property, especially about Perth, has lately risen immensely in value, and the rise is, I hope, spreading and will reach the outlying districts. Perth has lost its dilapidated appearance, and neat cottages and houses are springing up in all directions, and the same progress to some extent is noticeable in Fremantle and elsewhere.

41. I will not conclude this Report without recalling the success which attended the efforts made by the Government, to which my private secretary Mr. Henry Weld Blundell largely contributed, to represent the products of Western Australia at the Sydney Exhibition of 1873. Much of this success was attributable to the exertions of Mr. F.P. Barlee, Colonial Secretary, then representing at Sydney this colony in the intercolonial conference.

In that conference, the first to which a representative of this colony was admitted, and which therefore marked an epoch in its political existence, Mr. F.P. Barlee took a prominent part, ably upheld the trust I placed in him, and received a most marked and cordial reception from our colonists on his return.

41. I have further to express my obligations to that officer for the a.s.sistance he has ever given me; were it not for his fearless and loyal support, for the confidence which is placed in him by the very great majority of the colonists, and for his fidelity in following my instructions and carrying out my policy, it would have been impossible for me, under a form of government most difficult to work, to have carried to a successful issue the trust that has been imposed upon me, and to have left this colony prosperous and self-reliant.

42. Should your lordship, considering the position in which I found Western Australia--the reduction of imperial expenditure it has been my duty to effect, the failure of the wheat crop for four successive seasons and consequent depression, the inexperience of a new Legislature, the absence of any propositions for the benefit of the colony from the opposition, the obstacles thrown at first in the way of all measures which have eventuated in good--should you, considering these things and the present state of the colony, be of opinion that the administration of its affairs during the last five years has not been unsatisfactory or unfruitful, I beg that you will award a due share of credit to the Colonial Secretary, who, as my mouthpiece in the Legislature, has carried on single-handed all parliamentary business, and also to those gentlemen who are now, or have at various times been, members of my executive, and who have ever united to support me; to the nominated members of the Legislature who have steadily voted for all the measures which have led to the present progress of the colony, and whose merits the const.i.tuencies have fully recognized by electing them as representatives on vacancies in every case where they have stood; to the elected members, who every session have given me increased support, and who, forming two-thirds of the Legislature, had it in their power entirely to have reversed my policy; and lastly, to the people of Western Australia, who on each election have increased my strength, on whose ultimate good sense, I--knowing colonists, myself an old colonist--put my reliance, a reliance which has not been disappointed.

I have, etc.,

(Signed) FRED. A. WELD,

Governor.

The Earl of Carnarvon,

etc. etc. etc.

THE END.

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