that he has received the honour of
knighthood--a rank which none of her Majesty's servants will more fitly
adorn. I have suggested to the Legislature that a small increase of
salary should be given to uphold the dignity of the Supreme Court; and
the question, to which I have already drawn the attention of the
Legislature, of the appointment of two Puisne Judges and constitution of
a Court of Appeal ought to be taken into consideration at no distant
period. One new resident magistracy has been established in a district
where it was very much needed, and two Local Courts have been
constituted. There is some difficulty in finding a sufficiency of fit
persons for the commission of the peace who are willing to exert
themselves, and the pay of the resident magistrates is in too many cases
insufficient to enable them properly to support their position as
representatives of the Government in their districts.

8. In the Military Department I have enabled successive commandments to
make reductions in the enrolled Pensioner Force. By withdrawing the guard
from Rottnest Island, and by concurring in the reductions at
out-stations, a very considerable saving has thus been effected. I have
given all the encouragement in my power to the Volunteer movement, and I
may confidently state that the Volunteer Force was never before in so
good a state, either so far as regards numbers or efficiency. To this
result the efforts of successive commandants and liberality of the
Legislature have mainly contributed.

9. It has been for me to preside over the latter stages of the existence
of the Imperial convict establishment in Western Australia, as a large
and important department; henceforth it will be confined in narrow
limits, and I may state with confidence that the great reductions and
concentrations that it has been my duty to effect have not been attended
with those disastrous effects to the colony that were so confidently
predicted, and also that although the residue of convicts are, many of
them, men of the doubly reconvicted class and long-sentence men,
discipline is well kept, serious prison offences are rare, the health of
the men is excellent, whilst severe punishments are seldom needful. I
here beg leave to make favourable mention of Mr. W.R. Fauntleroy, Acting
Comptroller-General of Convicts, who has proved himself to be my most
valuable officer.

10. Much remains to be done in the Survey and Lands Department. When Mr.
Fraser in D