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Paterson was selling, in 1837, at 20s. per acre, in lots of six hundred and forty acres, of which not more than forty or fifty were arable land, the rest being what is called here, common bush land, thinly covered with trees, and affording tolerable pasture for cattle. Purchasers of land at the above-named rate, have, I believe, found their bargains profitable, notwithstanding the heavy expense they had to incur in clearing and fencing the arable portion of it, in addition to the outlay for a dwelling, out-offices, &c. The settler on a small farm of this description is almost sure to do well, if he is industrious, and provided that he keeps clear of that colonial pest, the public-house. He will have very hard work the first two years; but his returns will well repay him even in moderately favourable seasons, while, in good times, they will be very profitable. A neighbour of mine raised, in the season of 1837-38, on eighteen acres of fresh cleared land, a crop of tobacco, which he cured and manufactured into negro-head on the spot: it yielded one hundred and fifty kegs of 100lb. weight each; and the whole was sold at 1s. 4d. per pound, thus giving a total of 900l. This farmer had fifteen hands, who, in addition to the tobacco, enabled him to cultivate wheat and maize sufficient to supply the farm, and to leave 200l. worth for sale. The outlay for the twelve months, including every thing, did not exceed 350l.; and I have shewn the returns to have been 1100l. This slight sketch will afford an idea of what an industrious farmer may do in the Paterson district. As soon as he can collect a few pounds, they may be profitably invested in the purchase of some good cows, which will not only supply him and his family with butter and milk, but will pay well by their annual increase. In 1838, stock was worth, in this neighbourhood, as under:--Cows, 5l.; Fat Cattle, 7l. 10s.; Working Oxen, 10l.; Brood Mares, 40l.; good Roadsters, 40l.; Sheep,--Ewes, 2l., Wethers, 17s. 6d. Things have changed since that time: but more of this hereafter. During the three years I resided in Australia, I lived almost entirely on the banks of the Paterson, and the reader may therefore depend upon the correctness of my information regarding every thing in that neighbourhood. It bears a high character for the salubrity of its climate; and very justly so, according to my experience. Not a member of my establishment was ill the whole time we were there; nor
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