February.] The settlers who came out in the Bellona having fixed on a situation at the upper part of the harbour above the Flats, and on the south side, their different allotments were surveyed and marked out; and early in this month they took possession of their grounds. Being all free people, one convict excepted, who was allowed to settle with them, they gave the appellation of 'Liberty Plains' to the district in which their farms were situated. The most respectable of these people, and apparently the best calculated for a bona fide settler, was Thomas Rose, a farmer from Dorsetshire, who came out with his family, consisting of his wife and four children. An allotment of one hundred and twenty acres was marked out for him. With him came also Frederic Meredith, who formerly belonged to the Sirius, Thomas Webb, who also belonged to the Sirius, with his nephew, and Edward Powell, who had formerly been here in the Lady Juliana transport. Powell having since his arrival married a free woman, who came out with the farmer's family, and Webb having brought a wife with him, had allotments of eighty acres marked out for each; the others had sixty each. The conditions under which they engaged to settle were, 'To have their passages provided by government*; an assortment of tools and implements to be furnished them out of the public stores; to be supplied with two years' provisions; their lands to be granted free of expense; the service of convicts also to be assigned them free of expense; and those convicts whose services might be assigned them to be supplied with two years' rations and one year's clothing.' The convict who settled with them (Walter Rouse, an industrious quiet man) came out in the first fleet, and being a bricklayer by trade they thought he might be of some service to them in constructing their huts. He had an allotment of thirty acres marked out for him.

[* Government paid for each person above ten years of age the sum of eight pounds eight shillings; and allowed one shilling per diem for victualling them; and sixpence per diem for every one under that age.]

Many more officers availed themselves of the assent given by government to their occupying land, and fixed, some at Parramatta and others in different parts of the harbour, where they thought the ground most likely to turn out to their convenience and advantage. They began their settlements in high spirits; the necessary tools and implements of husbandry were furnished to them from the stores; and they were allowed each the use of ten convicts. From their exertions the lieutenant-governor was sanguine in his hopes of being enabled to increase considerably the cultivation of the country; they appeared indeed to enter vigorously into these views, and not being restrained from paying for labour with spirits, they got a great deal of work done at their several farms (on those days when the convicts did not work for the public) by hiring the different gangs; the great labour of burning the timber after it was cut down requiring some such extra aid.

On the 5th of the month the Bellona was discharged from government employ. Twenty-one days were allowed for the delivery of her cargo; but, by taking off the people from the brick carts, and from some other works, she was cleared within the time. This ship was of four hundred and fifty-four tons burden, and was paid by government at the rate of four pounds four shillings per ton per month. A clause was inserted in the charter-party, forbidding the master to receive any person from the colony, without the express consent and order of the governor. The governor was also empowered to take her up for the purposes of the colony should he want her; but as the Daedalus was expected, and the Kitty was already here, both in the service of government, it was not necessary to detain her, and she sailed on the 19th for Canton.

The master having been permitted to receive on board two convicts (the number he requested) whose terms of transportation had expired, consented to his ship being smoked, when four people were found secreted on board, two of whom had not yet served the full periods of their sentences.

To prevent this ship's coming on demurrage while her cargo was delivering, the convicts worked in their own hours, as well as those allotted to the public, under a promise of having the extra time allowed them at a future day. While this labour was in hand, the building of the barracks stood still for want of materials; it therefore became necessary, when the brick carts could again be manned, to lose no time in bringing in a sufficient number of bricks to employ the bricklayers. This having performed, they claimed their extra time, which now amounted to sixteen days. As it would have proved very inconvenient to have allowed them to remain unemployed for that number of days, the lieutenant-governor directed the commissary to issue to each person so employed half a pint of spirits per diem for sixteen days. Liquor given to them in this way operated as a benefit and a comfort to them: it was the intemperate use of spirits, procured at the expense of their clothing or their provisions, which was to be guarded against, and which operated as a serious evil.

For want of sufficient store-room, it was found necessary to stow a great part of the wet provisions and flour arrived by the Bellona in tiers before the provision-store. Care was taken to shelter them from the sun and from the weather; and when the pile was completed, it was, until the eye was accustomed to the sight, an object of novelty and wonder; it never having occurred to us since we first built a store, to have more provisions than our stores could contain.

Gray, who had recovered from his last punishment, being now again urged to discover what he had done with the drummer's money, trifled until he was again punished, and then declared he had buried it in the man's garden; but being taken to the spot he could not find it, and in fact did not seem to know where to look for it. It was supposed, that, being in liquor when he committed the robbery, he was ignorant how he had disposed of the property, or that it had fallen into the hands of some person too dishonest to give it to the right owner. He was afterwards sent to the hospital, whence he made his escape into the woods.

On the evening of Sunday the 24th the signal was made at the South Head, a short time before dark, but too late to be observed at the settlement; at nine o'clock, however, information was received by the boat belonging to the South Head, that a ship from Calcutta was at anchor in the lower part of the harbour. In the morning she worked up, and anchored just without the cove. She proved to be the Shah Hormuzear, of about four hundred tons burden, commanded by Mr. Matthew Wright Bampton, from Calcutta, who had embarked some property on a private speculation for this country. Mr. Bampton, in September last, had sailed from Bombay, with a cargo of provisions and stock for this settlement; but when near the Line, his ship springing a leak, he was obliged to return, and got to Bengal, where, with the sanction of Lord Cornwallis, he took on board a fresh cargo for the colony. At Bengal he had met with Captain Manning, who sailed from hence in the Pitt in April last, and who mentioned to him such articles as he thought were most wanted in these settlements.

Mr. Bampton had on board when he sailed, one bull, twenty-four cows, two hundred and twenty sheep, one hundred and thirty goats, five horses, and six asses; together with a quantity of beef, flour, rice, wheat, gram, paddy, and sugar; a few pipes of wine, some flat iron, and copper sufficient for the sloop's bottom which had been received in frame by the Pitt, and which Captain Manning remembered to have been sent out without that necessary article; a large quantity of spirits, and some canvas. In the article of stock, however, Mr. Bampton had been very unfortunate. His cattle died; of the sheep more than half perished; one horse and three asses died; and very few of the goats survived the voyage, a voyage by no means a long one, having been performed in eight weeks wanting three days, and in good weather. This mortality evidently did not proceed from any want of proper care, but was to be ascribed to their having been embarked immediately on being taken from the fields, and consequently wanting that stamina which a sea-voyage required.