In January, 1847, the recently proposed colony of North Australia was established by a party from Sydney, under Lieutenant-Colonel Barney, R.E., with a suitable staff of public functionaries. The colonists encountered more than usual difficulties and hardships even at the commencement. The transport conveying the first portion of the party, consisting of eighty-eight persons, struck on the shoal off Gatcombe Head, and required to be hove down, a fit spot for which purpose was fortunately found in a narrow but deep mangrove creek further up the harbour, at a place indicated upon the Rattlesnake's chart. The party were at first encamped upon the south end of Facing Island, but afterwards removed to the mainland, upon a site for the new township of Gladstone having been chosen there. The settlement, however, was abandoned, after a short-lived existence of five months, in obedience to orders received from home, consequent upon a change in the plans of Government regarding the disposal of convicts, for North Australia had been originally intended to be a penal settlement, or one for the reception of exiles. The expenses incurred by this experiment amounted to upwards of 15,000 pounds. PORT CURTIS. The survey of the harbour and its approaches occupied a period of three weeks. Although this work had ceased to be one of immediate importance, yet it will eventually be of considerable benefit to the colony of New South Wales, as the gradual extension of the squatting stations to the northward from the Wide Bay district must, ere long, call Port Curtis into requisition as a harbour, and thus enable the settlers to obviate the necessity of a long and expensive land carriage to Wide Bay, the nearest place resorted to by the small coasting vessels, communicating with Brisbane and Sydney. In illustration of this important subject, I cannot do better than quote portions of a despatch from Colonel Barney to Sir Charles Fitzroy, dated Sydney, 20th July, 1847, published in a return ordered by the House of Commons: The extent of land fit for agriculture, within a few miles of the coast, far exceeds the expectations I had formed on my first visit. Timber for dwelling-houses and for shipbuilding is abundant, and of the best description, and within five miles of South Shore Head (the best site for a settlement) there is to be found pipeclay, brick-earth, ironstone, freestone, granite, trap, slate, indications of coal; and independent of a great supply of shells for lime on the immediate site, there is at the head of one of the navigable salt creeks a fine freshwater stream running over a bed of limestone; a second creek, in which the Lord Auckland of 600 tons, is hove down, also navigable for ten or twelve miles, terminates in extensive waterholes; indeed within the port there are four inlets or creeks, navigable from ten to fifteen miles for vessels drawing eight or nine feet of water, each terminating in fresh water.