In this eventful period the colony of New South Wales is already far advanced. The conduct of its merchants is marked by the boldest speculations and the most gigantic projects. Their storehouses are built on the most magnificent scale, and with the best and most substantial materials. Few persons in England have even a remote idea of its present flourishing condition, or of the improvements that are daily taking place both in its commerce and in its agriculture. I am aware that many object to it as a place of residence, and I can easily enter into their feelings from the recollection of what my own were before I visited it. I cannot but remark, however, that I found my prejudices had arisen from a natural objection to the character of a part of its population; from the circumstance of its being a penal colony, and from my total ignorance of its actual state, and not from any substantial or permanent cause. On the contrary I speedily became convinced of the exaggerated nature of the reports I had heard in England, on some of the points just adverted to; nor did any thing fall under my observation during a residence in it of more than six years to justify the opinion I had been previously led to entertain of it. I embarked for New South Wales, with strong prejudices against it: I left it with strong feelings in its favour, and with a deep feeling of interest in its prosperity. It is a pleasing task to me, therefore, to write of it thus, and to have it in my power to contribute to the removal of any erroneous impressions with regard to its condition at the present moment. COMMERCIAL IMPORTANCE OF SYDNEY. I have already remarked, that I was not prepared for the scene that met my view when I first saw Sydney. The fact was, I had not pictured to myself; nor conceived from any thing that I had ever read or heard in England, that so extensive a town could have been reared in that remote region, in so brief a period as that which had elapsed since its foundation. It is not, however, a distant or cursory glance that will give the observer a just idea of the mercantile importance of this busy capital. In order to form an accurate estimate of it, he should take a boat and proceed from Sydney Cove to Darling Harbour. He would then be satisfied, that it is not upon the first alone that Australian commerce has raised its storehouse and wharfs, but that the whole extent of the eastern shore of the last more capacious basin, is equally crowded with warehouses, stores, dockyards, mills, and wharfs, the appearance and solidity of which would do credit even to Liverpool. Where, thirty years ago, the people flocked to the beach to hail an arrival, it is not now unusual to see from thirty to forty vessels riding at anchor at one time, collected there from every quarter of the globe. In 1832, one hundred and fifty vessels entered the harbour of Port Jackson, from foreign parts, the amount of their tonnage being 31,259 tons.