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.