The town of Melbourne is beautifully situated on the face of a hill, in the hollow of which runs the noble river called the _Yarra-Yarra_, words which signify in the native language, _"flowing constantly."_ It is distinguished by its title from the large majority of rivers, which are nearly _still_, and which, after extending only for a mile or two, form at length a species of swamp. Such rivers are generally styled _lagoons_. The _Yarra-Yarra_ is navigable up to the town of Melbourne for ships of a large size--say 400 tons; but the seven miles of distance being circuitous, and the banks of sand at the mouth of the river occasionally shifting, the larger class of ships generally remain at the anchorage ground in the bay, and discharge by common lighters. At the present moment, from twenty to thirty very large ships are riding in the bay. A pretty little steamer plies three times a-day between the towns of Melbourne and Williamstown--price five shillings, up and down. Another steamer, "The Sea Horse," plies between Melbourne and Sydney once a fortnight; the passage is made in three days, and the fares L12 for cabin, L6 for steerage. The communication is a vast accommodation to this district. The steamer is in private hands, and did not answer at first; she now carries the mail, and promises to turn out a profitable _spec_. The coast is very dangerous, and at _every_ season of the year liable to very violent gales. Even in the bay the squalls are sudden, violent, and dangerous, and many lives are lost for want of proper precaution and care, on board of small boats. Only yesterday, my friend, Mr G----, and three men, were out in a pleasure boat; in five minutes they were swept off to leeward, the boat was upset, and they were all drowned.