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of reported Prison offences; and, of the numbers reported, it seems probable that at least three fourths are owing to the living in association, necessitated by the limited Prison accommodation.

20. In concluding my observations on Gaol discipline, I desire to call attention to the large number of Prisoners who are old offenders. I annex a return (D) showing the number of convictions recorded against Prisoners in Gaol on 31st December 1885. It will be seen that out of a total of 573 Prisoners 198 or 35 per cent. have been previously convicted. This is probably to some extent attri- butable to light sentences passed on habitual criminals. Many of these return to Gaol, over and over again, a few weeks after discharge. It seems likely that if such criminals were sent to penal servitude for their second offence, such punishment would probably act as a deterrent (which short sentences do not), it would cost the Colony no more, and would save the community from many thefts and much vexation.

21. That short sentences passed in associated wards are not very deterrent, I have fair evidence. There are generally in Gaol from 20 to 30 Prisoners of the criminal class, confined for short periods for want of finding security (generally only a few dollars) for good behaviour. These persons are placed in associated wards, comfortably lodged and fed, and have no work to do. As a rule they declare themselves unable to find the required security, and remain in Gaol the appointed time. But, having some idea that many of these "Security Prisoners" could find security if they wished, indeed knowing that some of them had more money in their possession than the amount of security demanded, I tried the experiment of sending several of them to separate cells, the result being that very few stood more than 3 or 4 days of separate confinement but found the security required and left the Gaol. Had these men been allowed to remain together in an associated ward, it seems probable they would have pre- ferred a rest of a few months in Gaol at the cost of the Colony.

LABOR ON PUBLIC WORKS AND INDUSTRIAL LABOR.

22. A Chain-gang of Prisoners has been working during the year, under the orders of the Surveyor General on Public Works, and has generally consisted of about 90 men; though this number has lately been much reduced. The work of this Gang has not given satisfaction. The officers in charge of the Gangs receive an extra allowance for this duty. The Prisoners on Chain-gang receive extra allowances of rice, shinned beef for congee and tea, besides being credited and on discharge paid one cent a day as earnings. The cost of these extras is charged to the Surveyor General's Department.. The Surveyor General considers the work done by these Prisoners to be barely, if at all, worth the extra cost to his Department. I consider the extra food given to the Chain-gang to be excessive, but as this subject is now being considered by a special Committee ordered by Government, it appears unnecessary to enter into any details. I have every confidence that in re-organising Chain-gang labor, means will be found to carry out Public Works by Prison labor, in a manner more satisfactory to the Surveyor General and myself and more conducive to the interest of the Public than has hitherto been the case. But I should neglect my duty if I failed to bring to the notice of Government that in my opinion the Prison Authorities have in past times abused the powers given them of levying costs from the Surveyor General's Department. It bears the appearance as if it was wished to coax or bribe the Prisoners to go on Public Works without grumbling; for not only was an amount of extra food passed to them, which in the opinion of the present Medical Officer of the Prison is much in excess of the requirements of nature, but this extra food has from the beginning been given to them, not only on wet days, when they did not go out to work, but also on Sundays, in direct contradiction to the orders of Government (see Note to Diet Scale.) The cent per diem sanctioned as earnings, was also passed to these Prisoners on wet days and on Sundays. I did not interfere with the diet, as I had referred that question to Government, but I at once stopped crediting Prisoners with earnings paid by the Surveyor General, for days on which they did not work for his Department,

23. The other industrial work carried out in the Gaol during the year has been more satisfactory. I annex an Abstract (E) showing the actual profits or savings to Government in nine different indus- tries carried out in the Gaol, showing altogether a profit of $1,990. 74 cents during the year. Such abstracts have now been prepared for the first time; they do not quite accurately show the transactions of the year because, no industrial stock having been taken at the end of 1884.-I am dependent, for the account of stock on hand on 1st January 1885, on the statements of officers, who could only refer to their private note books, or to their memory. But in most cases, such as that of oakum, no person in the Gaol could tell me what stock of oakum or junk if any, was on hand on 1st January 1885. Some of the profits shown in 1885 may therefore be partly due to 1884. The practice in past years was somewhat unbusinesslike. All the money realised by sale of Prison labor was shewn as Prison earnings, while the cost of materials etc. remained concealed in the obscurity of incidental expenses. In future these accounts will be better kept.

24. The chief advantage of industrial labour is that an opportunity is afforded of instructing criminals in trades; the profits realised are incidental and of secondary importance. Reforming cri- minals to habits of industry is the main object. Industrial labour in Victoria Gaol would be capable of great expansion, were space for suitable workshops available. Each convict might be taught a trade before discharge and the profits might be increased so as greatly to reduce the cost of the Prison.