timber, and consequently prepared by the hand of nature for the immediate reception of the ploughshare. These advantages, combined with its proximity to Sydney, have already begun to attract the tide of colonization to it, and will no doubt render it in a few years one of the most populous, productive, and valuable of all the districts. The soil is in general a deep fat vegetable mould. The surface of the country is thinly timbered, with the exception of the mountain which boundsit to the Northward and Westward. This is covered with a thick brush, but is nevertheless extremely fertile up to the very summit, and peculiarly adapted both from its eastern aspect and mild climate for the cultivation of the vine. This large tract of country was only discovered about four years since, and has not yet been accurately surveyed. Its extent, therefore, is not precisely known; but it without doubt contains several hundred thousand acres, including the banks of the Shoal Haven river. These produce a great abundance of fine cedar, and other highly valuable timber, for which there is an extensive and increasing demand at Port Jackson. COAL RIVER. The next tract of unappropriated country which I shall describe, is the district of the Coal River. The town of Newcastle is situated at the mouth of this river, and is about sixty miles to the northward of Port Jackson. Its population by the last census forwarded to this country, was five hundred and fifty souls. These, with the exception of a few free settlers, established on the upper banks of this river, amounting with their families perhaps to thirty souls, and about fifty troops, are all incorrigible offenders, who have been convicted either before a bench of magistrates, or the Court of Criminal Judicature, and afterwards re-transported to this place, where they are worked in chains from sunrise to sunset, and profitably employed in burning lime and procuring coals and timber, as well for carrying on the public works at Port Jackson, as for the private purposes of individuals, who pay the government stipulated prices for these different articles. This settlement was, in fact, established with the two-fold view of supplying the public works with these necessary articles, and providing a separate place of punishment for all who might be convicted of crimes in the colonial courts.