33. I have reduced several police-stations on the recommendation of Captain Smith, the superintendent, which appeared to be no longer necessary; but, on the other hand, I have extended police protection into outlying districts, both for the benefit of European settlers and of the aboriginal inhabitants. These latter have gained little and lost much by the occupation of their country by settlement. I have fought their battle against cruel wrong and oppression, holding, I trust, the hand of justice with an even balance, and I rejoice to say not without effect and benefit to both races. Their services as stockmen, shepherds, and pearlers are invaluable; and when they die out, as shortly no doubt they will, their disappearance will be universally acknowledged as a great loss to the colonists. 34. The Legislature, I am happy to say, have latterly seconded my efforts by encouraging industrial institutions for their benefit. Similarly they have in the last session turned their attention to the condition of the destitute and criminal children of our own race; and, in my own sphere, I have done what was possible for the encouragement of the (denominational) orphanages which have been long established and are in full working order. This colony is, for its size and means, well supplied with hospitals, asylums, and establishments for paupers, in which I have taken great personal interest. 35. In legislation I have endeavoured to avoid over-legislation and premature legislation. I have considered that free-trade principles are especially in place in a colony situated as this is. The ad valorem duty, and that on wines, spirits, and a few other articles, has been raised for revenue purposes; some others have been put on the free list. I successfully resisted the imposition of a duty on flour; I should have simplified the tariff still further than I have done, and admitted free many more articles--some of food, others used in our industries--had the Legislature not objected; the tariff as it stands is inconsistent. The English bankruptcy system has been introduced, and an Act passed regarding fraudulent debtors; distillation has been permitted under proper safeguards; Sunday closing of public-houses has been rendered compulsory with good effect; a Lunacy Bill on the English model has become law; the Torrens Land Registration system has been adopted, and will shortly be put into force. Many equally important measures are alluded to in their places in the pages of this despatch, and I will not inflict upon your lordship a list of many minor Acts, some not unimportant, which have proved beneficial in their degree. 36. Among lesser but not unimportant matters, I may mention that I have extended the system of taking security from Government officers in receipt of public moneys. The commencement of a law and parliamentary library has been made.