To return for a moment to the matter of fault-finding, it would be ridiculous to maintain that no mistakes have been made in launching British North Borneo on its career as a British Dependency, but then I do not suppose that any single Colony of the Crown has been, or will be inaugurated without similar mistakes occurring, such, for instance, as the withholding money where money was needed and could have been profitably expended, and a too lavish expenditure in other and less important directions. Examples will occur to every reader who has studied our Colonial history. If we take the case of the Colony of the Straits Settlements, now one of our most prosperous Crown Colonies and which was founded by the East India Company, it will be seen that in 1826-7 the "mistakes" of the administration were on such a scale that there was an annual deficit of £100,000, and the presence of the Governor-General of India was called for to abolish useless offices and effect retrenchments throughout the service. The British North Borneo Company possesses a valuable property, and one which is daily increasing in value, and if they continue to manage it with the care hitherto exhibited, and if, remembering that they are not yet quite out of the wood, they are careful to avoid, on the one hand, a too lavish expenditure and, on the other, an unwise parsimony, there cannot, I should say, be a doubt that a fair return will, at no very distant date, be made to them on the capital they have expended. As for the country _per se_, I consider that its success is now assured, whether it remains under the rule of the Company or is received into the fellowship of _bonâ fide_ Colonies of the Empire. In bringing to a conclusion my brief account of the Territory, some notice of its suitability as a residence for Europeans may not be out of place, as bearing on the question of "what are we to do with our boys?" I have my own experience of seventeen years' service in Northern Borneo, and the authority of Dr. WALKER, the able Medical Officer of the Government, for saying that in its general effect on the health of Europeans, the climate of British North Borneo, as a whole, compares not unfavourably with that of other tropical countries. There is no particular "unhealthy season," and Europeans who lead a temperate and active life have little to complain of, except the total absence of any cold season, to relieve the monotony of eternal summer. On the hills of the interior, no doubt, an almost perfect climate could be obtained. One great drawback to life for Europeans in all tropical places is the fact that it is unwise to keep children out after they have attained the age of seven or eight years, but up to that age the climate appears to agree very well with them and they enjoy an immunity from measles, whooping cough and other infantile diseases. This enforced separation from wife and family is one of the greatest disadvantages in a career in the tropics.