The governor had likewise entered into a contract with a merchant in India, to freight a ship with cattle and rice, after the arrival of which he was of opinion that further supplies of cattle might be unnecessary, the stock in the country, independent of the wild herd, being very considerable. That herd was grown very furious, and, having got among the mountains to the westward, rendered any attempts to take them dangerous and useless. The _Lady Nelson_ brig had been in Bass Strait, and surveyed Western port, where she found a very good harbour. She had also been, in company with the _Francis_ (colonial schooner), to Hunter river, where they took in between them 45 tons of coal, which were exchanged with the master of the _Cornwallis_, for a quantity of nails and iron, articles that were much wanted; thus, for the first time, making the natural produce of the country contribute to its wants. The _Francis_ being nearly worn out, the governor had purchased a vessel called the _Harbinger_, to be employed in going to and from Norfolk Island, the service of the _Porpoise_ being required for longer voyages. The _Supply_, which had been long since condemned, was fitting up as a hulk to receive such convicts as were incorrigible, in which capacity she might still be very useful. It was intended that the _Lady Nelson_ should, at the proper season, be employed in an accurate survey of Bass Strait. Accounts having been received of the Union between the Two Kingdoms, that event was celebrated on the 4th of June 1801, and on that occasion the new union flag was for the first time displayed in New South Wales. The governor took that opportunity of releasing several of the Irish insurgents who had been in confinement. It appeared, on examining the registers of the several terms of transportation of the convicts, that the clerks, who necessarily had had access to them, had altered the sentences of about two hundred prisoners, receiving a gratuity from each equal to ten or twelve pounds. This was a very serious evil; and proper steps to guard against it in future have been taken both at home and in the colony. That necessary institution, the Orphan School, had been carried into effect, and the house which had been purchased for the reception of the children was occupied by them. It appeared, upon collecting the accounts of the expenses attending the erecting of the county gaol, that that building had cost the sum of £3954 the greatest part of which had been paid by assessments upon individuals. Every encouragement was given to promote the growth of wool fit for the purpose of manufacturing, and three hundred and six yards of blanketing had been made from what had been produced in the year preceding the date of the dispatches, from the flocks belonging to government and to individuals. In five months four hundred and seventy-two yards of flax had been manufactured into linen.