ombined 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.

The coal mines here are considerably elevated above the level
of the sea, and are of the richest description. The veins are
visible on the abrupt face of the cliff, which borders the
harbour, and are worked by adits or ope