The town of Liverpool is situated on the banks of Geoge's river, at the distance of eighteen miles from Sydney. It was founded by Governor Macquarie, and is now of about six years standing. Its population may amount to about two hundred souls, and is composed of a small detachment of military, of cultivators, and a few artificers, traders, publicans, and labourers. The public buildings are a church (not yet I believe completed) a school house and stores for the reception and issue of provisions to such of the settlers in the adjacent districts as are victualled at the expense of the government. These buildings, however, as might naturally be expected from the very recent establishment of this town, are but little superior in their appearance to the rude dwellings of its inhabitants. The river is about half the size of the Hawkesbury, and is navigable for boats of twenty tons burden as high up as the town. It empties itself into Botany Bay, which is about fourteen miles to the southward of the heads of Port Jackson. It is subject to the same sort of inundations as the Hawkesbury; but they are not in general of so violent and destructive a nature. The tide rises about the same height as in that river, and the current is, I believe, nearly of the same velocity. The position of this town is all that can be urged in support of the probability of its future progress; the land in its vicinity being in general of a very indifferent quality. It is in a central situation, between Sydney and the fertile districts of Bringelly, Arids, Appin, Bunpury Curran, Cabramatta, and the Seven Islands, to which last place the tide of colonization is at present principally directing itself. There can be no doubt, therefore, that the town of Liverpool will, in a few years, become a place of considerable size and importance. Land there is as yet of very trifling value; and a lease may be obtained by any free person from the government, on the simple condition of erecting a house on it. Society is upon a much better footing throughout the colony, in general than might naturally be imagined, considering the ingredients of which it is composed. In Sydney the civil and military officers with their families form a circle at once select and extended, without including the numerous highly respectable families of merchants and settlers who reside there. Unfortunately, however, this town is not free from those divisions which are so prevalent in all small communities. Scandal appears to be the favourite amusement to which idlers resort to kill time and prevent ennui; and consequently, the same families are eternally changing from friendship to hostility, and from hostility back again to friendship.