21 DECEMBER 1861, Page 3

Nag figabuili.—Sir G. Grey arrived at Auckland on the 26th

of September, and his plan has already oozed out. It is to break down the distinction between natives and Europeans, and "create an ad- ministration for native affairs, worked by natives themselves, with European help, and under the direct control of the responsible Mi- nisters." The details of this plan have not yet arrived, but the natives express complete confidence in Sir G. Grey. The local Government of Otago have issued a proclamation de- scribing the gold-digging,s : "The Government cannot doubt the existence of a valuable gold-field of considerable extent, capable of affording remunerative wages to a large population, but they desire that it should be known that, owing to a scarcity of wood for fuel and for slabbing purposes in many localities, considerable difficulties and expenses will have to be encountered in the prosecution of the miner's occupation. It should at the same time be remembered that the greater portion of the gold hitherto extracted has come from one or two gullies, which may shortly be exhausted, and though the amount brought by escort continues to increase, it must be con- sidered that the mining population, almost trebled within the last week or two, is spread over a much larger area than formerly, and that the diggings are mostly of a shallow alluvial character, very few nuggets exceeding an ounce in weight having been found, and but little gold embedded in quartz."