Newcastle, the second city of New South Wales, was reached at noon. The Prince, on alighting, was received by the Mayor and Corporation, supported by a smart guard-of-honour of naval cadets and an immense crowd of spectators. He crossed the harbour by launch and landed on the low marshy foreshore of Walsh Island. Here he shook hands with a long line of returned men, employed in the shipbuilding yards, who gave him a most cordial reception. Similar scenes were repeated, at least half a dozen times in the course of the day, at the entrance to each set of works. At Walsh Island, over which he was conducted by Mr. Estell, State Minister of Works, and Mr. Cutler, General Manager, New South Wales Shipbuilding, he launched a fine six-thousand-ton freight steamer, built by state enterprise on behalf of the Commonwealth Government. The launching was to have taken place at flood tide, but, owing to postponement of the Prince's visit, had to be done at the ebb. A strong west wind on the ship's quarter added to the difficulty of the undertaking which was entirely overcome, the ship taking the water beautifully. These vessels are an interesting example of state enterprise in New South Wales. They are designed to carry produce away from Australia, and to bring British emigrants back. There was at the time plenty of demand for their services, as thousands of would-be settlers were awaiting passages in the old country, and wheat was rotting in Australian granaries that was badly wanted to reduce prices of bread in Europe. The claim was made for them that they were being built at rates materially lower than those offering for the construction of similar vessels in any dockyard in the world at the time the contracts were given out. The cost, I was told, ranged from £31 per ton until the last rise in wages took place, which brought the rate up to about £35. At the time of the Prince's visit no workman employed in the yard was receiving less than fourteen shillings and fourpence daily, the average being very much higher than this figure. The vessel launched was the fifth of six uniform steamers under state construction. The four previously completed had been rated "A1" at Lloyds.