The second report, dated January 2Gth, is as follows: — VICTORIAN BUTTER AND ITS SUCCESS. As week after week passes, it is becom ing more and more evident that the enor mous strides which Victoria is making with her butter this season in the eyes of English wholesale butter dealers is largely owing to two distinct causes. First, the enormous quantity of Victorian butter that is being imported, combined with the general level quality of the bulk of it, is largely owing to the wonderfully fertile season in the colony and the widespread and excellent factory system obtaining there. Secondly, the irregularity of quality in much of the New Zealand factory butter and the quantity of very inferior farmers' butter that has arrived this season has aided the Victorian product considerably. It appears as if a few merchants had scoured New Zealand and bought up any thing and everything in the shape of butter that was to be purchased, with the idea that owing to the drought in Europe butter would realise enormous prices. Some of these speculative merchants have paid no more than 3d and 4d per pound for the stuff they are sending hero to sell as "pastry" or "con fectioner's" butter j the result is disap pointing to their anticipations ; prices are not high, and though they may not lose money on this low grade stuff, they will be very much cleverer than ordinary persons if they do not make losses on most of the second grade quality they have sent. The speculators in this season's farmers' butter will be very cautious before they enter on another enterprise of the kind, and this will be a good thing for the Colony, for there is daily growing up amongst whole sale butter-buyars and grocers a feeling of favoiu-itism for Victorian butters and a coldness towards those from New Zealand. This feeling is so strong that several im porters are complaining of the difficulty they encounter in disposing of the secondary qualities of New Zealand butters consigned to them for sale. One of the best of the importing agents, and a man who is doing his utmost for the colonial butter trade, assures me that the quality of New Zealand buttei invoiced to him at 90s is fully five shillings less in value than Victorian in voiced at 80s. 