In the early stage of the colony the deficiency of a circulating medium was severely felt, and consequently few transactions could take place, except by means of barter. The Government regulations entitled settlers to claim land in consideration of the importation of servants, provisions, agricultural implements, live stock, &c.; but no claim could be made on account of capital in the shape of money. The settlers therefore invested almost the whole of their resources in such articles as would entitle them to claim land. If you required a team of horses, the person desirous of selling one did not want what you could offer in exchange, but wished for sheep. You then applied to an owner of sheep, who desired something you did not possess; and frequently two or three exchanges were necessary before you could procure the articles you wanted—generally losing something on each exchange. Under such circumstances, I proposed a scheme for the formation of a local bank, and was ably assisted by Mr. George Leake and a few other friends possessing influence and property—but no cash. We depended on the Commissariat issues for the Government expenditure for supplies of coin. The necessary nominal capital was subscribed, and the shareholders assembled to make the arrangements required for opening the bank. At their request, I undertook the management of it, with a Board of Directors. They issued their notes, and the benefits derived by the public became manifest immediately. The bank was very successful. A sufficient supply of coin was gradually obtained from the Government expenditure, and the shareholders for some time divided profits of forty per cent. on their _nominal_ capital, which was simply the credit of their names. The system which enabled settlers to obtain enormous grants of land was found in practice to be neither advantageous to those persons or to the colony. They could not make a profitable use of them; they became a drag upon their resources to meet necessary expenditure, and the lands were locked up from those who might have turned them to better account. One settler, Mr. Peel, obtained 250,000 acres, with a right under certain conditions to claim a like additional quantity of land. The early settlers introduced a large number of servants at their own expense, generally articled to serve for three years at moderate wages. Their employers were inexperienced, not knowing how to apply their labour to the best advantage. For a short time provisions reached famine prices, flour selling at two shillings and sixpence per pound. Servants would not then accept their discharges, but when prices fell they broke their engagements, and instances have occurred of masters having become the servants of their former ploughmen.