Complaints having been made by the government of the expenses of the colony, which have accumulated, rather than diminished, with the increasing growth of the settlement, I shall first enter into a statement of the causes of this augmented expense, part of which, as I shall hope to demonstrate with clearness, has arisen out of the nature of things, and the other part may be attributed to various causes.

1st, As to the retarded progress of public buildings, and the diminution in the labour of the convicts.—­This decrease in the quantity of labour performed, is to be attributed to the natural falling-off in the strength of the convicts employed in government labour, from deaths, desertions, and their becoming free.  Those who were first sent to the colony, and had been originally transported for seven and fourteen years had served their times, the former in 1793, and the latter in 1800; numbers had been released from their servitude on account of their exemplary behaviour, or of services done to the colony; and all who became settlers being allowed one, two, or more convicts to assist in the cultivation of the tracts assigned to them, the reduction in those who laboured for the crown must necessarily have been very considerable, and must still continue in an increasing degree, owing to the great numbers of free settlers who have been allowed to go out from England, many of whom have only been a great expense to government, and an hindrance to the settlement.  From a correct estimation taken in the year 1800, it was ascertained that three-fourths of the convicts employed in the service of government at the close of 1792, had been subsequently discharged.  From that period to the year 1800, 1259 new male convicts arrived, effective and non-effective, a number which was insufficient to fill up the deficiencies occasioned by those who had obtained their liberations in consequence of having completed their terms of servitude, and the emancipations which had taken place, the number of which together amounted to 1264, without including the deaths, casualties, and escapes, which may be taken at an equal number; nor were there more employed by the crown than 710 when Governor King was succeeded in the command of the colony (although a great many had arrived between those periods), including the vast number allowed to officers, settlers, and others, and but few of the remainder were either mechanics or persons adapted to the improvement of the colony; therefore from these causes it must be evident to every rational mind, that the progress of the colony towards perfection and prosperity has, in fact, been as rapid as could be expected, considering the circumstances of the settlement; and an opinion of a contrary nature must have been grounded upon an exaggerated estimate of the means which existed, and an entire ignorance of the due proportion which they have borne to the labour required at their hands.