Though no longer the capital or even the first city of Australia, Sydney is an important and increasing town. The more rapid growth of Melbourne has thrown it into the shade, and no doubt Melbourne will maintain its position, and, owing to its central situation, continue to be the commercial emporium of the other colonies. But it may be doubted whether Victoria will maintain its lead over New South Wales. The good land of Victoria extends to the very shores of Port Phillip, the country is small comparatively, and has been easily opened up. In New South Wales three trunk lines are in progress and are open for some distance, but hundreds of miles of railway must be made before many fertile districts can be even known, except by report, and before even the inhabitants—much more, possible emigrants at home—begin to realise the enormous resources of the country. Gold is found in all directions, though as yet in few places, compared with Victoria, in quantities which repay the digger. Iron is plentiful. There is an unlimited supply of coal close to the mouth of the Hunter. Kerosene is being procured in abundance. The English cereals flourish as well as maize and arrowroot. Almost any quantity of wine might be grown, and some of it is about as good as average light French claret. Light wine is a great addition to comfort in this climate; and as it becomes more plentiful, and cheaper, it will help more than anything to drive out the old colonial vice of excessive spirit-drinking, already on the decline. There are several varieties of climate, for climate depends more upon height above the sea-level than upon latitude. From the mountainous district of Kiandra the telegraph day after day even to the end of September reports ‘snow falling,’ while at Sydney we are broiling. In New England, close to the borders of Queensland, there is almost an English climate, and strawberries and other English fruits and vegetables grow in perfection; while a short distance off, on the Clarence, and on the vast plains to the westward, the heat, though dry and comparatively healthy, is intense, and men will put away their coats and waistcoats in a box, only to be taken out if they want to go to Sydney or to look specially respectable. To the number of sheep and cattle which may be kept there is practically no limit. Only there is a distance beyond which the expense of carting wool or driving cattle to a market eats up all the profit. For wool, railways will at once extend this distance. As for cattle, there is a new invention for freezing meat by means of ammonia, and thus preserving it entirely unchanged for any number of weeks or months. If this is successful, as there is every reason to hope, frozen meat may be brought down to the nearest port and kept frozen for a voyage of any length, and thus the English market may be supplied with fresh meat from the heart of Australia.