No. VI.—Jan. 30th, 1869.

All around Clunes there are a number of holdings under the 42nd clause, most of which appear to be held by persons who highly value their allotments, and have made material improvements upon them; and this is not to be wondered at. Clunes at the present time is one of the most thriving inland townships of Victoria; and, although in existence for many years, it has apparently but just entered on what promises to be a long career of prosperity. As I mentioned in a former letter, all the land page 24 between here and Majorca has been taken up under mining leases, as well as under the 42nd clause; and it was perfectly refreshing—after some of the Sleepy Hollows through which I had previously passed—to witness the air of bustling activity which prevailed through the town. Nearly all the land selected under the clause is profitably occupied and cultivated, and there is little doubt but that the holders are doing, and will do, well. Climes itself is very prettily situated on the sides of two hills, the creek running through the centre. I was informed, however, that I saw it in its most favourable aspect, as in the winter season the low-lying streets are almost impassable for mud. This will, no doubt, be soon remedied, for the town is rapidly extending itself; and when the streets are properly made, the inconvenience now complained of will not be felt. Some of the forty-seconders have already obtained the fee-simple of their allotments, and others are anxious to do so. Great care should, however, be exercised in alienating land in this district, for it appears almost impossible to determine what is and what is not auriferous. Some few months ago land was sold here absolutely adjoining the township—that is, it came right up to the township buildings; how far the legal boundary extends I am unable to say—which certainly ought not to have been sold, and particularly in the manner in which it was disposed of. There were altogether ten allotments, containing about 420 acres. The land was offered at the upset price of £1 per acre; but, as is usual in such cases, the improvements were liberally valued, amounting in some cases to as much as £15 per acre, and averaging all round £4 per acre. Of course, under these circumstances, there was no competition, and the land fell into the hands of these who had effected the improvements. As a general rule, this is the most desirable result, even though the ground should be worth a trifle more than it actually realises; but some circumspection should be used where there is a probability of the land being required for the extension of the neighbouring township, and especially where there appears a likelihood of its subsequently proving auriferous. There can be no question that in this district no land should be sold except with the sanction of the Mining department, given after the locality has been visited by a competent and experienced mining surveyor. It is far easier to reserve the land in the first instance than it is to settle the complications which are sure to arise relative to the vexed question of mining upon or under purchased property. Of course, where there are no strong objections to the alienation of land, the very best course to adopt is to dispose of it to these who have already settled upon it, and are anxious to obtain a title, which cannot be invalidated, to that which they have become accustomed to regard as their home.

Having visited Clunes, I returned to Creswick, and then started viâ Burrumbeet for Beaufort. On the road there is comparatively but little settlement under the 42nd clause. Nearly all the land, including almost the whole of what is known as Bowling Forest, was sold years ago, and is now either held by the original proprietors or rented by farmers. The soil for the most part is remarkably good; and here we have an instance of what good agricultural land, near a market, is considered worth. Messrs. Morton, Kinnersley, and another, rent from Mr. W. J. T. Clarke some thousands of acres at an annual rental, which I heard variously stated at from 8s. to 10s. per acre. This land they sublet to the farmers in the district at prices varying from 10s. up to 25s. per acre, netting a very respectable income by the transaction. I admit that some of this land is page 25 perhaps as fine as any in the colony but there is just as good land now occupied under the 42nd clause, and for which the Government is getting less than 3s. per acre. It would be anything but desirable that the Government should play the part of the harsh landlord, but such fact as these serve to show what little ground there is for the cry which, in some quarters, has been so industriously raised for a reduction of the rent. Some of the crops in this locality have this year been very poor the c result to a great extent of bad fanning, the land being wretchedly duty in consequence of long-continued cropping without manure or dressing of any description. It is not until after crossing the Trewalla Creek some four or five miles from Beaufort that you again come amongst the settlers under the 42nd clause. Close to Simpson's Home Station, at Trewalla, there are some forty-seconders, who are doing extremely well. Their holdings are all fenced in, a considerable portion is under cultivation, and the crops generally are remarkably good as compared with other districts. I was told of one man who was threshing as much as sixty bushels of wheat to the acre. This certainly was an exceptional case, but thirty bushels was by no means an extraordinary occurrence. The land here is almost all taken up, and the pastoral tenant confined to his purchased land. There is a great difference in the quality of the land in the Beaufort district. In some places it is poor, cold, and sandy, whilst in others, such as the alluvial flats between Raglan and Mount Cole, it is very good and bears excellent crops. Taking the whole area in charge of the contract surveyor at Beaufort, which includes the parishes of Beaufort, Eurambeen, Raglan, Mount Cole, Trawalla, Woodnaggerak, Shirley, Nanimia, Wahkwallok, Buangor, Livingstone, and Longe Kal Kal there are 278 selectors, holding 14,308 acres, of which about 3,000 are under cultivation. A great portion of this land has been but recently taken up, and this in a great measure accounts for but a comparatively small portion being under cultivation. It is nearly all, however, fenced in, and, as a rule, there is but little doubt of the bona fides of the holders. Indeed, the manner in which the forty-seconders have gone to work and improved their selections affords a striking contrast to the operations of the selectors under the 12th section. Some of these latter have fenced in their allotments, but very few have done anything more, the land being apparently still used by the neighbouring squatter to graze his sheep. As soon as you enter the area occupied by the forty-seconders an entirely different scene presents itself. Here the holdings, varying from twenty up to eighty acres in extent, are fenced in, small patches are under cultivation, and in a number of instances residences of a more or less substantial nature have been erected. In the one case there are all the indications of settlement, progress, and cultivation; in the other there are none. The settlement near Mount Cole is generally very satisfactory. Here, and in the neighbourhood of Raglan, miners who have been long resident in the district have taken up eighteen or twenty acres, have fenced their allotments in, and have established for themselves comfortable homes. In Beaufort, a good many allotments have been taken up by residents in the township, who, as yet, have done nothing but fence them in. They, however, express their intention of cultivating them, although it is scarcely likely that whilst engaged at their places of business they will erect habitations on land at a distance which they could not conveniently use. Many of the selectors in this district are deserving of all praise for the manner in which they have resolutely struggled on and overcome the difficulties which they page 26 encountered when they first took up the land between two and three years ago. I was credibly informed that some of them, when they selected their holdings, had not even money enough to pay the surveyor's fees, and some of the land was very poor. They, however, never lost heart. By some means or other they managed to plough up a few acres and sow, some a little wheat, others a few potatoes, and some both. Whilst their crops were growing, they fenced in their land, the storekeepers gave them credit for the few necessaries of life upon which they existed, and from this small beginning they have steadily worked along, until now many of them have comfortable homes, and at the end of the present season will have to their credit snug little sums, varying from £50 up to £150, and in some cases £200 each. The crops in this district are generally good. The wheat may be averaged at from twenty to twenty-five bushels to the acre, and the oats, which are rather light, at about the same. Beaufort was at one time the centre of an extensive and prosperous mining district, but at present all the alluvial leads appear to be worked out, and, with the exception of a few diggers who remain fossicking about the old ground, there is literally nothing doing. The gullies and flats where, a few years ago, there were thousands of miners busily employed, are now all deserted, and the scrub is again making its appearance amongst the old holes, and on the ground which was once so valuable that every inch was disputed with that keenness which men seldom exemplify save when engaged in the search for gold. There may be plenty of good reefs in the district, but as yet little has been done towards their development. One has recently been opened from which a fair prospect has been obtained, and some are sanguine enough to hope that this is but the commencement of a revival which, to some extent at least, shall restore the glories of "old Fiery Creek." Whether these anticipations be realised or not, it appears pretty certain that Beaufort has seen its worst days. It is now almost entirely dependent upon the 42nd and other settlers in the district; and as cultivation becomes more extended, and settlement increases, the agricultural interest will advance in importance, and the township must share in its prosperity. Were it not for the settlers under the 42nd clause the storekeepers and others in Beaufort could not possible exist, and it may, therefore, be easily believed that they regard with considerable interest the operations and progress of these who take up land in this manner. At the next commission there will be about sixty new applications to be heard, the intending selections comprising some 2,800 acres of land.