(Extract from a Letter, dated December 30, 1843.)

In sheep tallow, the great desideratum is colour. The best in this country is obtained by selecting the fat and making two qualities, but whether this can be done profitably or not you must be the best judges - the difference in price would be several shillings per cwt. The colour is frequently spoiled by want of care in boiling, and the application of too much fire ; much also depends on the slaughtering of the sheep - they ought to be perfectly cool and free from perspiration, otherwise when the tallow comes to be remelted it assumes a foxy appearance, and the body is injured. It is of very great importance that clean packages be selected - all casks that impart any colouring matter whatever, should be avoided - port wine and porter casks would be very prejudicial, they would injure the tallow 3s. to 4s. per cwt. From what we can learn, pale ale hogsheads, well cleaned, would be a good package : of white wine casks, we are not quite sure, as some acidity might be imparted and spoil the tallow for candle-makers' use. If the casks can be all of the same description, it would be desirable, as it would save expense and trouble in tareing. We enclose you a pro forma account sale, as nearly as we can make it up, but of course in a new article there may be some discrepancies. We cannot make any calculation for loss of weight or difference in tares, on the voyage home, of course, the casks will have imbibed a portion of tallow, and by want of care, there may be leakage in the hot latitudes. We have no data beyond the mere assertion, that a fat sheep would yield 26 lbs. of tallow, thus at the gross price of 42s. per cwt., it would give 7s. 6d. a sheep nett, leaving the wool and skin to pay for the expense of melting, casks, and shipping. The value of the skins, in this market, will depend upon care and management, and it is a matter of calculation for the farmer, whether it be or be not for his interest to wash and shear his sheep before slaughtering (thus sending the wool and pelt to market separately) or sending home the skin with the wool on ; in the latter case, the present price is 15s. to 30s. per dozen, according to the fineness of the wool, while the pelts are worth 10s. to 12s. per dozen. The bones will be of some value, particularly the shank, which are used in our manufactures at Birmingham, the other bones, for manure, are worth 60s. to 65s. per ton. We have just had a sale of Sydney ox tallow (191 casks) and the following is our Broker's Report:

" We beg to apprise you that the New South Wales tallow, put up at public sale, yesterday, was sold mostly at 41s. per cwt., a few lots only bringing 40s. to 40s. 9d. The quality of the tallow was intrinsically good, being hard and of a good body, but the colour was too dark or yellow to suit the tallow-chandlers generally, which arises from a bad mode of melting the rough fat. To produce a good white tallow, it ought to be picked over in the first instance and melted while quite fresh, care being taken not to give it too much fire, which would spoil the colour. New York melted tallow, sold at 43s. ; St. Petersburg, Y. C., 41s. 6d. to 41s. 9d. ; Town tallow, 44s. 6d., less 3s. per cwt, for cash.

The above tallow was imported in the Arachne. Our market, during the last twelve months, has been very flat, and the present prices are said to leave a loss to the a grazier. An importation of two to three thousand tons from your quarter, would scarcely affect our prices, though if forced off in large quantities at a time, might bring it down 1s. to 2s.

" Our importation of Foreign Tallow, amounts to about 60,000 tons on an average. We observe by the Sydney Herald, of 24th July, that the Fame had seventy tons on board, by other vessels considerable parcels of hides had been shipped. The present value of hides is 2¾.d. to 4d. per lb. ; horses 13s. to 21s. per 123 : hoofs, 12s. to 13s. per cwt. ; bones, 60s, to 65s. per ton; shank boner selected, 80s. to 84s. per ton.