The increasing importance of Sydney must in some measure be attributed to the flourishing condition of the colony itself, to the industry of its farmers, to the successful enterprise of its merchants, and to particular local causes. It is foreign to my purpose, however, to enter largely into an investigation of these important points. To do so would require more space than I can afford for the purpose, and might justly be considered as irrelevant in a work of this kind. Without attempting any lengthened detail, it may be considered sufficient if I endeavour merely to point out the principal causes of the present prosperity (and, as they may very probably prove) of the eventual progress of our great southern colony to power and independence. STAPLE OF THE AUSTRALIAN COLONIES. The staple of our Australian colonies, but more particularly of New South Wales, the climate and the soil of which are peculiarly suited to its production,--is fine wool. There can be no doubt that the growth of this article has mainly contributed to the prosperity of the above mentioned colony and of Van Diemen's Land. At the close of the last century, wool was imported into England from Spain and Germany only, and but a few years previously from Spain alone. Indeed, long after its introduction from the latter country, German wool, obtained but little consideration in the London market; and in like manner, it may be presumed that many years will not have elapsed before the increased importation of wool from our own possessions in the southern hemisphere, will render us, in respect to this commodity, independent of every other part of the world. The great improvements in modern navigation are such, that the expense of sending the fleece to market from New South Wales is less than from any part of Europe. The charges for instance on Spanish and German wool, are from fourpence to fourpence three farthings per pound; whereas the entire charge, after shipment from New South Wales, and Van Diemen's Land, does not exceed threepence three farthings,--and in this the dock and landing charges, freight, insurance, brokerage, and commission, are included. GROWTH OF FINE WOOL. MR. M'ARTHUR'S EXERTIONS.