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ciples is most helpful to tlie natives. We find the nalives 

 work well & happily \\'hen assured of adequate reward. They 

 shear our sheep, make fences, saw oul ])oards & planks oí' 

 all kinds, work well witli the pick & spade, are good boatmen 

 & pleasant companions. We ñnd their labor profitable, more 

 so I think, tlian we should find fliat of any imported labor. 



Our pjrospects are good, last year the increase of our 

 sheep was 80 %. In íour years our cattlc have incroased from 

 46 to 150, and our sheep from 140 to 020. The co\\'s yield 

 good milk, and we find dairy work pays very well. The pas- 

 ture of the country is good, but capable of indetinite impro- 

 vement, composed of over 20 varieties of grass, bul chiefly 

 composed of a hard dry grass, which the cattle avoid during 

 summer, ^^■hen they ünd abundance of the better kinds, but in 

 winter thrive Ion it, as it is then almost their solé sustenance, 

 & stands the winters frost & snow perfectly. By labor beau- 

 tiful pastures can be fornied, as the humid clima te greatly 

 favors its growth, & no new kinds need be imported. Under 

 feeding the natural grasses greatly improve. Begond all doubt 

 the induslries of the country will be 1^' Pastural, 2"'^ Wood- 

 culting , 3'^ Mineral, A^^ Fishcuring. Pastural y agricultural 

 pursuits will be extensive in the east & north, owing to the 

 immense extent of good camps, and a suitable climate. All 

 along since our introduction of cattle some 20 years ago they 

 have done exceedingly well, & require no aid during winter, 

 eilher in shelter or food. They show no signs of degeneraling 

 in size or quality, and the rate of increase is rapid, and the 

 health splendid. Sheep thrive equally well, as also do horses. 



As regards woodcutting. The supply of timber is inexhaus- 

 tible, and is good for all kinds of purposes. The townships of 

 Sandy Point is wholly built of it, as also the Farm buildings 

 in the Falklands. As fuel it is exccllent, und fences made of 

 it last for 20 years. Trees grow to diameters reaching even to G 

 feet, & attain a heiglit of 70 & 80 ft. They consist of 3 varie- 

 ties of American beech, one of which is an evergreen, and the 

 only other of consequence is the Winters bark, the wood of 

 which is soft, & when dry very light. As timber it is of very 

 little account. The finest timber is found some little distance 

 in, and on eastern slopes. For beams and framing for ship & 

 housebuilding it is better ñttled than for boards, as it is very 

 Hable when cut thin to warp & shrink unevenly. It iíi readily 

 sawn. 



As regards minerals, gold is found in an alluvial deposit 



