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46 there would have been a direct ship two years before, as had been the case in Canterbury.

Shortly after the sailing of the "Strathallan," the "Strathfieldsay" was laid on by the same charterers to load for Melbourne, and sailed on the 16th June with 2757 bags of oats and 59 bales of wool. In this case, also, the charterers were unsupported and unfortunate, as on arrival at Melbourne prices for grain had fallen below the prices paid in Dunedin, so the cargo was stored on shipper's account.

Another wonder was, however, in store for the Dunedinites, through the enterprise of the same mercantile firm. On the 28th August, the screw steamer "Queen," of 182 tons, was seen gracefully steaming up the harbour and anchoring about half a mile from the jetty. The town was taken by surprise at finding a steamer of such dimensions coming up the bay so far, the possibility of which would have been ridiculed a short time before. Few occurrences since the formation of the settlement called for such hearty demonstrations of rejoicings. On heaving in sight of the town she was greeted with a salute of 21 guns from the cannon on Church Hill. This was responded to by a display of fireworks from the steamer. Of course everyone visited the steamer, and the universal testimony was that she was a perfect model, divided into four water-tight compartments, and fitted up with every comfort and convenience for the accomodation of a considerable number of passengers. The residents were in ecstacies, and claimed that no other Province in New Zealand could boast of such a vessel, and each congratulated his neighbour on the great addition to the shipping of the town, sincerely wishing that Mr Macandrew, to whom the Province was indebted in this matter as in others, would meet with such encouragement as would enable him to continue the vessel in the trade for which she was intended. It was expected that her ordinary passage from Melbourne to Otago via Foveaux Strait would be accomplished in six days, and the intention of her owner was to run her once every two months to Melbourne, the intervening time being occupied on the New Zealand coast from Auckland to the Bluff.

The success which attended the first venture in locally owned steam, together with the great favour shown by the