Carlshrue lies to the right, about three miles distant, on rather low land; this is the chief station of the Government escort; the barrack accommodation is first-rate, with stabling and paddocks for the horses, &c.

Kyneton is about sixty-one miles from Melbourne. There are two large inns, with ample accommodation for four hundred people between them, several stores, with almost every needful article. A neat little church, capable of holding nearly three hundred persons, with a school and parsonage. There is a resident magistrate and constabulary, with a police-court and gaol in progress of erection. The township is rather straggling, but what houses there are have a very picturesque appearance. The only draw-back to this little town is the badness of the streets. Although it is rather on an elevated spot, the streets and roads, from the loamy nature of the sod, are a perfect quagmire, even abominable in summer time. The charges here are high, but not extortionate, as, besides the two inns alluded to, there are several coffee-shops and lodging-houses; so competition has its effect even in the bush.

The Campaspe is a large river, and is crossed by a substantial timber bridge.

We still adhered to our original plan of camping out; a few necessaries were purchased in the town, and after continuing our journey to a little distance from it, we halted for the night.

TUESDAY 14.—This morning commenced with a colonial shower, which gave us all a good drenching. Started about eight o'clock; returned to Kyneton; crossed the bridge, and passed several farm-houses. The country here is very changeable, sometimes flat and boggy, at others, very hilly and stony. We were obliged to ford several small creeks, evidently tributaries to the Campaspe, and at about ten miles from Kyneton, entered the Coliban range, which is thickly wooded. The river itself is about fourteen miles from Kyneton. Here we camped, in the pouring rain. Some of our party walked to the town of Malmsbury, about a mile and a half from our camping place. The town consisted of about three tents, and an inn dignified by the appellation of the "Malmsbury Hotel". It is a two-storied, weather-board, and pale house, painted blue, with a lamp before it of many colours, large enough for half-a-dozen people to dine in. It (the inn, not the lamp,) is capable of accommodating two hundred people, independent of which there is a large tent, similar to the booths at a fair, about 100 feet long by 30 wide, for the convenience of those who prefer sleeping under cover when the house is full. Being hungry with their walk, our comrades dined here, for which they paid 3s. 6d. a-piece; ale was 1s. 6d. a glass; brandy 2s. per half glass, or "nobbler;" cheese, 4s. 6d. a pound; bread, 5s. the four-pound loaf; wine, 25s. a bottle. By the time they returned, we had struck our tents, intending to cross a muddy-banked creek that lay in our road that evening, as we were told that the waters might be too swollen to do it next day. The water reached above their waists, and as my usual post was very insecure, I was obliged to be carried over on their shoulders, which did not prevent my feet from being thoroughly soaked before reaching the other side, where we remained all night.

WEDNESDAY, 15.—Rainy day again, so much so, that we thought it advisable not to shift our quarters. In the afternoon, three returning diggers pitched their tents not far from ours. They were rather sociable, and gave us a good account of the diggings. They had themselves been very fortunate. On the same day that we had been idly resting on the borders of the Black Forest, they had succeeded in taking twenty-three pounds weight out of their claim, and two days after, two hundred and six ounces more, making, in all, gold to the value (in England) of about eighteen hundred pounds. They were returning to Melbourne for a spree, (which means to fling their gains away as quickly as possible,) and then as soon as the dry season was regularly set in, they meant to return to Bendigo for another spell at work. On representing to them the folly of not making better use of their hard-earned wages, the answer invariably was, "Plenty more to be got where this came from," an apt illustration of the proverb, "light come, light go." Two of these diggers had with them their licences for the current month, which they offered to sell for ten shillings each; two of our company purchased them. This, although a common proceeding, was quite illegal, and, of course, the two purchasers had to assume for the rest of the month the names of the parties to whom the licences had been issued. As evening approached, our new acquaintances became very sociable, and amused us with their account of the diggings; and the subject of licensing being naturally discussed, led to our being initiated into the various means of evading it, and the penalties incurred thereby. One story they related amused us at the time, and as it is true I will repeat it here, though I fancy the lack of oral communication will subtract from it what little interest it did possess.

Before I commence, I must give my readers some little insight into the nature of the licence tax itself. The licence, (for which thirty shillings, or half an ounce of gold, is paid per month) is in the following form:

VICTORIA GOLD LICENCE. No. 1710, Sept. 3, 1852.

The Bearer, Henry Clements, having paid to me the Sum of One Pound, Ten Shillings, on account of the Territorial Revenue, I hereby Licence him to dig, search for, and remove Gold on and from any such Crown Land within the Upper Lodden District, as I shall assign to him for that purpose during the month of September, 1852, not within half-a-mile of any Head station.

This Licence is not transferable, and to be produced whenever demanded by me or any other person acting under the Authority of the Government, and to be returned when another Licence is issued.