Seven persons whose terms of transportation had expired, were permitted to quit the colony in these ships, and the master of the Sugar Cane had shipped Benjamin Williams, the last of the Kitty's people who remained undisposed of. One free woman, the wife of a convict, took her passage in the Sugar Cane.

Notwithstanding the facility with which passages from this place were procured (very little more being required by the masters than permission to receive them, and that the parties should find their own provisions) it was found after the departure of these ships that some convicts had, by being secreted on board, made their escape from the colony; and two men, whose terms as convicts had expired, were brought up from the Sugar Cane the day she sailed, having got on board without permission; for which the lieutenant-governor directed them to be punished with fifty lashes each, and sent up to Toongabbie.

Early in the month an alteration took place in the weekly ration, the four pounds of wheat served to the convicts were discontinued, and a substitution of one pint of rice, and two pints of gram (an East India grain resembling dholl) took place. The serving of wheat was discontinued for the purpose of issuing it as flour; to accomplish which a mill had been constructed by a convict of the name of James Wilkinson, who came to this country in the Neptune. His abilities as a millwright had hitherto lain dormant, and perhaps would longer have continued so, had they not been called forth by a desire of placing himself in competition with Thorpe the millwright sent out by government.

His machine was a walking mill, the principal wheel of which was fifteen feet in diameter, and was worked by two men; while this wheel was performing one revolution, the mill-stones performed twenty. As it was in opposition to the public millwright that he undertook to construct this mill, he of course derived no assistance whatever from Thorpe's knowledge of the business, and had to contend not only with his opinion, but the opinion of such as he could prejudice against him. The heavy part of the work, cutting and bringing in the timber, and afterwards preparing it, was performed by his fellow-prisoners, who gave him their labour voluntarily. He was three months and five days from taking it in hand to his offering it for the first trial. On this trial it was found defective in some of the machinery, which was all constructed of the timber of the country, and not properly seasoned. Its effects in grinding were various; at first it would grind no more than two bushels an hour; with some alteration, it ground more, and did for some time complete four bushels; it afterwards ground less, and at the end of the month produced not more than one bushel. Had the whole of the machinery been upon a larger scale, there was reason to suppose it would have answered every expectation of the most interested. The constructor, however, had a great deal of merit, and perceiving himself what the defects were in this, he undertook to make another upon a larger scale at Sydney, and on an improved plan. For this purpose, all the artificers and a gang of convicts were brought down from Parramatta, and were first employed in forming a timber-yard at Petersham, two hundred feet square.

At that place, a small district in the neighbourhood of Sydney so named by the lieutenant-governor, nine huts for labouring convicts were built, and sixty acres of government ground cleared of timber, twenty of which were sown with Indian corn. This was the only addition made to the public ground this season; and the sole difference that was observable in the progress of our cultivation consisted in sowing this year with wheat a large portion of that ground which last year grew Indian corn. The weather throughout the month continued extremely favourable for wheat.

The number of convicts which it was intended to receive for the present into the New South Wales corps being determined, a warrant of emancipation passed the seal of the territory, giving conditional freedom to twenty three persons of that description, seven of whom were transported for life, and three had between six and nine years to serve, having been sent out for fourteen. The condition of the pardon was, their continuing to serve in the corps into which they had enlisted until they should be regularly discharged therefrom.

Several instances of irregularity and villainy among the convicts occurred during this month. From Parramatta, information was received, that in the night of the 15th four people broke into the house of John Randall, a settler, where with large bludgeons they had beaten and nearly murdered two men who lived with him. The hands and faces of these miscreants were blackened; and it was observed, that they did not speak during the time they were in the hut. It was supposed, that they were some of the new-comers, and meant to rob the house; and this they would have effected, but for the activity of the two men whom they attacked, and for the resistance which they met with from them. At this time seven of the male convicts lately arrived from Ireland, with one woman, had absconded into the woods. Some of these people were afterwards brought in to Parramatta, where they confessed that they had planned the robbing of the millhouse, the governor's, and other houses; and that they were to be visited from time to time in their places of concealment by others of their associates who were to reside in the town, and to supply them with provisions, and such occasional information as might appear to be necessary to their safety. They also acknowledged that the assault at Randall's hut was committed by them and their companions.

About the same time the house of Mr. Atkins at Parramatta was broken into, and a large quantity of provisions, and a cask of wine, removed from his store-room to the garden fence, where they left them on being discovered and pursued. They, however, got clear off, though without their booty.

At Sydney, in the night of the 26th, a box belonging to John Sparrow (a convict) was broke open, and three watches stolen out, one of which with the seals had cost thirty-two guineas, and belonged to an officer. This theft was committed at the hospital, where Sparrow was at the time a patient, although able to work occasionally at his business; and being a young man of abilities as a watchmaker, and of good character, was employed by most of the gentlemen of the settlement. Suspicion fell upon a notorious thief who was in the same ward, and who had some time before proposed to another man to take the box. On his examination he accused two others of the theft, but with such equivocation in his tale as clearly proved the falsehood of it. As there was no evidence against him, except the proposal just mentioned, he was discharged, and during the month nothing was heard of the watches. An old man belonging to the hospital was robbed at the same time of eight guineas and some dollars, which he had got together for the purpose of paying for his passage and provisions in any ship that would take him home.

During a storm of rain and thunder which happened in the afternoon of Saturday the 26th, two convict lads Dennis Reardon and William Meredith, who were employed in cutting wood just by the town when the rain commenced, ran to a tree for shelter, where they were found the next morning lying dead, together with a dog which followed them. There was no doubt that the shelter which they sought had proved their destruction, having been struck dead by lightning, one or two flashes of which had been observed to be very vivid and near. One of them, when he received the stroke, had his hands in his bosom; the hands of the other were across his breast, and he seemed to have had something in them. The pupils of their eyes were considerably dilated, and the tongue of each, as well as that of the dog, was forced out between the teeth. Their faces were livid, and the same appearance was visible on several parts of their bodies. The tree at the foot of which they were found was barked at the top, and some of its branches torn off. In the evening they were decently buried in one grave, to which they were attended by many of their fellow-prisoners. Mr. Johnson, to a discourse which he afterwards preached on the subject, prefixed as a text these words from the first book of Samuel, chap xx verse 3. 'There is but a step between me and death.'