We again see a break in the sandy line of the coast at Broken Bay, at Newcastle, and still further north at Port Macquarie; at which places the Hawkesbury, the Hunter, and the Hastings severally debouche. Of Port Macquarie, as a place of settlement, I entertain a very high opinion, in consequence of its being situated under a most favourable parallel latitude. I am convinced it holds out many substantial advantages. One of the most important of these is the circumstance of its having been much improved when occupied as a penal settlement. And since the shores of the colony are how navigated by steam-boats, the facility of water communication would be proportionably great. I believe the Five Islands or Illawarr district is considered peculiarly eligible for small settlers. The great drawback to this place is the heavy character of its timber and the closeness of its thickets, which vie almost with the American woods in those respects. The return, however, is adequate to the labour required in clearing the ground. Between the Five Islands and Sydney, a constant intercourse is kept up by numerous small craft; and a communication with the interior, by branch roads from the great southern line to the coast, would necessarily be thrown open, if the more distant parts of it were sufficiently peopled. RICH TRACTS IN THE INTERIOR. Recent surveys have discovered to us rich and extensive tracts in the remote interior between Jervis Bay and Bateman's Bay, and southwards upon the western slope of the dividing range. The account given by Messrs. Hovel and Hume is sufficient to prove that every valley they crossed was worthy of notice, and that the several rivers they forded were flanked by rich and extensive flats. The distance of Moneroo Plains, and of the Doomot and Morumbidgee Rivers from Sydney, alarms the settler, who knows not the value of those localities; but men whose experience has taught them to set this obstacle at nought, have long depastured their herds on the banks of the last two. The fattest cattle that supply the Sydney market are fed upon the rich flats, and in the grassy valleys of the Morumbidgee; and there are several beautiful farms upon those of the Doomot. Generally speaking, the persons who reside in those distant parts, pay little attention to the comfort of their dwellings, or to the raising of more grain than their establishments may require; but there can be no doubt this part of the interior ought to be the granary of New South Wales; its climate and greater humidity being more favourable than that of Sydney for the production of wheat. PERIODICAL DROUGHTS; THE SEASONS AFFECTED BY THE MARSHES.