The fine Woolled Sheep imported here from the Cape of Good Hope in the Year 1797 were said to be of the Spanish Breed. The excellence of the fleece of these Sheep combined with the consideration of their peculiar form, bears strong evidence in favour of the Correctness of this Report, tho' it is impossible to say whether they originally sprung from the best kind of Sheep that is bred in Spain. Be this as it may nothing is better established than that the Wool of this Breed of Sheep has considerably improved in this Climate, and as Mr. MacArthur has had the good fortune to bring out from England Four Rams and one Ewe, purchased from His Majesty's Flock of Spanish Sheep, It is to be hoped that these valuable animals will be the cause of a still further Melioration in the Quality of our Wool. Indeed there appears no reason to fear but that the Wool of this Country may by care and judicious Management be placed on an equality with the very best that is grown in Spain. It has been Mr. MacArthur's invariable practice to keep the Spanish Breed apart from all others, and as fast as Spanish Rams have been reared they have been put among the coarse-woolled Ewes. The result of this system has proved extremely satisfactory, his Flocks now consist of more than Five Thousand, of these Sixty are of the pure Spanish kind, and the whole are much improved in the quality of the Wool; he is of Opinion the best judge will be unable to discover any material difference between the perfect and the mixed Breed in Seven years. With respect to Constitution, Size, and Aptitude to fatten, he has tried all the Breeds he could obtain in the Colony, and he has found the Spanish surpass them all in every one of these qualities. In the representations that Mr. MacArthur had the honour to make in England to His Majesty's Ministers, he stated that he thought a Flock of Sheep would double itself in Two Years and a half, longer experience induces him to think it may be done in rather less time; but in the Estimate he now proposes to make, he will govern himself by the same data on which his original Calculations were made, for he is desirous rather to repress too sanguine Expectations than to encourage such as may prove fallacious. Estimating the Sheep in New South Wales at Twenty Thousand, a plain Arithmetical progression will prove that the present Stock may increase in Twenty Years to Five Millions, and calculating two pounds and a half of clear washed Wool to each Sheep, they would produce almost twice as much Wool as England now purchases from Spain at an Annual expense of One Million Eight Hundred Thousand pounds. Should Great Britain still require a much larger supply, Sheep can be easily multiplied to any Extent in the immeasurable Forest which Surrounds us.