A similar state of progressive improvement exists at Sydney, Geelong, Adelaide, and other towns. The population in them is becoming a more settled one; business goes on in more regular channels, and domestic comforts are more studied. Substantial stores for merchandise are also rising up on every side; and importers are now enabled to hold back their goods for a more profitable market than the previous system of selling them on landing, whatever might be the state of the demand, would admit of. The colony, too, is assuming more and more the character, which it is destined to possess, of an important mercantile community; and its commercial firms are actively preparing for extensive transactions with the rich countries with which they have communication in every direction. The first step towards forwarding such object has naturally been to connect with each other the various ports along the coast, and the towns on the principal rivers; and accordingly we find established lines of steamers running from Sydney to the leading ports in the other provinces, and to the interior at every point where river navigation is practicable, and a working community and trade exist. The same accommodation is provided from Melbourne, Geelong, and Adelaide, to other ports and towns. Several lines of sailing packets also offer themselves to the public between the principal ports. In fact, a large coasting-trade is carried on, both in passengers and merchandise, the route by sea being preferred to travelling by land over badly-formed, and frequently unsafe, roads. In the first instance, some difficulty existed in procuring vessels, especially for the navigation of the rivers, where a light draught of water was necessary, as such vessels could not be trusted to make the voyage out from Europe or America. They are now, however, being gradually supplied by builders in the colony. A somewhat larger class of vessels is regularly employed in the trade between New South Wales, Victoria, and South Australia, and New Zealand, Van Diemen’s Land, and the government settlement in West Australia, with a few for San Francisco, Callao, Manilla, and the near East Indian ports. The enterprise of the mercantile community in the colony is being gradually drawn towards this trade; and shipping of the class suitable for it is in active demand, both for purchase and charter. Attention is also being re-directed to the staple business of the colony—the export of its wool, tallow, hides, &c., which will be more cultivated as the fever for dealing in gold abates. At present, indeed, gold, as an article of merchandise, scarcely yields a profit, so numerous are the buyers of it, competing with each other, belonging to the Jewish persuasion. Employment for capital must be sought for in another direction, and it is to be hoped a legitimate one, otherwise the large sums now lying idle in the colony may be squandered in rash speculations. At the close of the last quarter, the Bank of Australia