19. To turn now to the more settled industries, first in importance is that of agriculture. It is chiefly in the hands of men of little capital, and is carried on in a very slovenly way by the greater part of them. Bad seasons, an over-great reliance on cereals, which have for several successive years been seriously affected by the red rust, and a neglect of other products suitable to the soil and climate, added in too many cases to careless and intemperate habits, have until lately rendered the position of many of the small farmers a very precarious one. Last year, however, was more favourable, and they to a great extent recovered themselves. The lesson of the past has not been altogether lost; they have also been much assisted by the new Land Regulations, and a few prosperous seasons will, I sincerely trust, put this class, which ought to be a mainstay of the colony, into a really prosperous condition. 20. The cultivation of the vine is a profitable pursuit, and the quantity of land fitted for that purpose is very great; both soil and climate are eminently favourable to the growth of the grape. Recent legislation has given some encouragement to wine-growers by facilitating the sale of home-grown pure wine. The quantity of land laid down in vineyards is slightly increased, but the class of settlers that are most numerous in Western Australia do not readily take to industries that are new to them, however profitable they may be, nor can they afford to wait for returns, nor have many of them the knowledge necessary to make good wine: still this industry will become one of the most important in the colony. 21. The pastoral interest is the pioneer interest of a new colony. Western Australia has been somewhat less favoured than some other parts of Australia in its pastoral lands, but it has, nevertheless, a good deal of very good pastoral country, and under the extremely liberal concessions lately offered to those who will devote capital to the eradication of poison plants much more may be made available, whilst fresh country is being largely occupied inland. The progress, however, of the pastoral interest, considering the age of the colony, though latterly great, is not SO great as might have been expected; the comparatively good prices obtainable and anticipated for meat have kept down the increase of stock, and consequently the yield of wool; and as yet very little or nothing has been done to supplement natural resources by growing artificial grasses and fodder plants. No country presents greater capabilities for horse breeding, and cattle do exceeding well and are very profitable.