2. When I was appointed to the Government of Western Australia I was aware that from various causes the colony had made but little progress; and on my arrival in September, 1869, I found chronic despondency and discontent, heightened by failure of the wheat crop, by the prospect of the gradual reduction of convict expenditure and labour on which the settlers had been accustomed to depend, by the refusal of the Home Government to continue to send out free immigrants, and by that vague dread of being thrown on their own resources so natural to men who have been accustomed to take no part in their own affairs, and who have consequently learned to rely entirely upon the Government, and not at all upon themselves. One healthy symptom there was, and that was a desire, not very strong perhaps, or even generally founded upon a just appreciation of the past, or political foresight of the future; but still a very wide-spread desire, and to many a reasonable and intelligent desire, for a form of representative institutions which might give the colonists some real voice in the management of their own affairs. 3. At the earliest possible moment I commenced work by travelling over as much as possible of the settled and partially settled districts of the colony; an old colonist bushman and explorer myself, travelling on horseback and camping out were but natural to me, and I wished to judge for myself of the capabilities of the colony; and before I had been six months in the country I had ridden considerably over two thousand miles, some part of the distance unfortunately, owing to an accident, with a fractured rib and other injuries. I had made acquaintance with settlers of all classes, and was able to form an opinion so accurate, both of the people and of the country I have since had to deal with, and of their capabilities, that I have never altered that opinion, nor have my many subsequent journeys done more than supplement the knowledge I then gained. 4. My first political aim was to promote local self-government in local affairs by establishing or giving real power to road boards and municipalities (a policy I afterwards carried into effect with school boards also); and, so soon as I had obtained the sanction of her Majesty's Government, I introduced that modified form of representative institutions provided by 13 and 14 Vic., chap. 59, and then passed the Municipal Acts I have mentioned above. This policy has fulfilled not only my expectations but my hopes, and should the Council that is about to meet wish to take the ultimate step of entering into complete self-government by adopting the responsible system, the preparation afforded by the last five years will admittedly be of the greatest value.