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 swallow up more in repairs than it would have cost to construct a substantial road in the first instance.

The politics of New South Wales are at present slightly confused, owing to the introduction of the Federal question, which has obliterated the line (formerly clearly drawn) between the Free-trade and the Protectionist camps. During the Federal fight the Free-trade party suffered slightly; and the Labour party are now generally masters of the situation, holding the balance of power. Formerly, Mr Reid, as leader of the Free-traders, had little difficulty in carrying the Labour party with him; but for some little time before his recent fall from power they not infrequently carried him with them. They have practically determined that the fiscal policy of the colony for the time being shall neither be one of absolute Protection nor one of Free-trade; but that revenue shall be drawn to the utmost extent possible from property, leaving the working classes free from taxation, except on such items as tobacco and alcohol.

With all its advantages of area, varied climate, and extensive resources, there can be little doubt but that New South Wales has a future second to that of no other colony of the Australian group; and the position her public men have been able to take in connection with Federation is simply an assertion of the fact that she knows and feels her future greatness. In addition to her vast grazing areas, the productiveness of which in wool and meat is being yearly increased by the establishment of artificial pastures and the improvement in water supplies, she has on her southern coast the same rich pastures and temperate climate which have done so much for the dairying industries in Victoria. In her northern provinces, in addition to magnificent forests of both hard and soft woods, there are tropical conditions of climate