We have yet to be informed of the first case of the loss or serious impairment of a convict's mental or bodily health from the judicious and faithful administration of the separate system of discipline; but whatever real or fancied dangers to body or mind attend it, one thing is made clear by the report before us, viz., that it is wonderfully efficacious. We infer from several passages in this document, what we have not seen more specifically stated elsewhere, that "the principle of the discipline now established in the English prisons, contemplates a confinement of the convict in strict separation twelve months, to prepare him for a term of labor in association;" and this latter stage, from its "exposing prisoners to many temptations, which they would have to encounter on their final release from penal restrictions in England, is to prepare them for that event." So that we have three grades or stages in the process; separation follows conviction and introduces to association, which is preparatory to transportation. The convict, having passed the appointed term in separate confinement, is removed to the establishment in Portland Island (or, it may be, when suitable arrangements are made, to one of our Dockyards), to labor in the formation of the harbor of refuge, or on some public work. There, although he is still under religious instruction and very judicious superintendence, his principles and the reality of his reformation are subjected to a severe test. He is associated with other convicts, and, as it cannot be supposed that all have been reclaimed, he meets with many temptations. The officer in charge of the Portland Island establishment, says: The subdued, improved, and disciplined state in which the convicts generally arrive at Portland, from the stage of separate confinement, appears to be an admirable preparative for their transfer to the greater degree of freedom unavoidable on public works. Those convicts who have been for a considerable time at Portland, have not usually indicated any falling off in morals or conduct, but, on the contrary, several instances have occurred in which men, on whose conduct the comparative degree of liberty here alluded to, appeared to have at first an unfavorable effect, have afterwards become orderly and industrious, and content to work their way cheerfully to the prospective advantages held out to convicts of that character. Such strong testimony to the efficiency and powerful reformatory influence of separation, is of great value. Some interesting items are furnished on the extent and expenses of transportation. The number of convicts sent to the Australian colonies from Great Britain in 1847, was 938, in 1851, 1568. The average number transported annually from Great Britain, is given at 1750--1300 males, and 450 females.