Lastly, there is what I may call the commercial reason for failure, which is of course closely connected with the others. Officialism has strangled initiative, and crime has poisoned the sources of social prosperity; wherefore in New Caledonia the French govern, but they do not develop. Nine-tenths of the capital invested in the island is in the hands of British and Australian firms, or is owned by foreigners who have become naturalised French subjects. The French have had possession for half a century of one of the richest islands in the world, yet I am only telling the bare truth when I say that a withdrawal of foreign capital would promptly bring the colony to bankruptcy, and that the stoppage of the Australian carrying trade would starve it out in a month. This was clearly proved by the extremities to which nearly all the outlying camps were reduced by the interruption of the Coast Service during the plague epidemic. Here, for instance, is one example out of many which might be quoted of the extraordinary ineptitude of the French colonial official in matters of business. An Anglo-French firm located in Sydney obtained a concession for a term of years to import corn, grind it, and sell the flour at a given price, which was about eight shillings per sack higher than the average of Australian prices. The government objected to the price, but yielded on condition that the firm would buy and grind all the corn raised in the colonies. The firm knew perfectly well that all Caledonia would not raise fifty bushels of wheat in as many years, so, of course, they consented, and for the next ten years or so the astute partners will go on selling flour to the government and the citizens at a much higher price than they could import it for themselves from Australia. The whole trade of Noumea, which is the one trading centre of the island, is practically in English or Australian hands, although several large firms trade under French styles. The first essential of a commercial education in New Caledonia is a sojourn in Australia, and no French youth has a chance of a good start in a New Caledonian business house unless he can speak and write English. In fact the only people in the colony who do not speak English are the officials of the Administration and the military officers. During the whole of my wanderings through the convict camps from end to end of the island, I only found one official who could converse intelligently in English, and that was the Director himself; and yet you can go into almost any store or office in Noumea and get what you want by asking for it in English. New Caledonia may, in short, be fairly described as a French penal colony and a commercial dependency of Australia. I _SOME FIRST IMPRESSIONS_ After a flying visit to Auckland, our old steam-roller staggered through a southerly buster into Sydney Heads on Christmas Eve, and it was then that I began to make acquaintance with the Microbe of the Black Death.