DEPARTMENT OF LANDS AND SURVEY. DISCHARGED SOLDIERS SETTLEMENT. REPORT FOR THE YEAR ENDED 31st MARCH, 1927.

Appendix to the Journals of the House of Representatives, 1927 Session I, C-09

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1927. NEW ZEALAND.

DEPARTMENT OF LANDS AND SURVEY. DISCHARGED SOLDIERS SETTLEMENT. REPORT FOR THE YEAR ENDED 31st MARCH, 1927.

Presented to both Houses of the General Assembly -pursuant to Section 14 of the Discharged Soldiers Settlement Act, 1915.

CONTENTS. General Report :— Page Appendix—continued. Page Dominion Revaluation Board (Report of Chairman) 2 Tables—continued. linancial Review .. .. .. 7 Table 2.—Statement of Mortgage Transactions 17 ■ jan( s proe aime .. .. .. 1 Land for Settlements Account (Discharged Soldiers Applications received and Lands allotted .. 10 Settlement Account)Appendix:- Balance-sheet 22 Reports of Commissioners of Crown Lands .. 11 .transactions for Year .. .. ..21 Tables Discharged Soldiers Settlement Account— Table I.—Total Lands acquired by Discharged Balance-sheet .. .. .. 20 Soldiers .. .. ..10 Transactions for Year .. .. ..19

Sir, — Department of Lands and Survey, Wellington, 30th June, 1927. In accordance with the provisions of the Discharged Soldiers Settlement Act, 1915, I have the honour to submit herewith the report of the operations under the Act for the year ended 31st. March, 1927. I have, &c., J. B. Thompson, The Hon. A. D. McLeod, Minister of Lands. Under-Secretary.

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THE DISCHARGED SOLDIERS SETTLEMENT AMENDMENT ACTS, 1923 AND 1924. REPORT OF CHAIRMAN OF THE DOMINION REVALUATION BOARD. Personnel: Messrs. J. B. Thompson (Chairman). Thos. Brook (Valuer-General), J. H. Richardson, C.M.G., John Gordon, and R. A. Rodger. Revaluation of Soldier Settlers Farms, and Investigation op Current Account Advancer. During this year the activities of the Board have centred mainly on the investigation of Current Account advances made to soldier settlers against stock and chattels and improvements on their holdings. The scrutiny of these accounts necessarily called for comprehensive reports regarding the position of each settler. The original work of the Board in reviewing land-values was necessarily brought under consideration again, as in every case the reports placed before the Board showed not only the position regarding the Current Accounts, but also recorded the complete charges under all headings against the land. It being the Board's earnest desire to meet every position fairly as between the Crown and the settler, it has been found necessary to resort to special methods to deal with difficult cases. There are man} 7 * factors having an important bearing on the success of the settler that have to be considered. Where the success of a settler could be assured bv an adjustment of the capital charges no difficulty existed. There are, however, other problems, such as the unsuitability of certain holdings for profitable occupation ; want of finance for development; temperamental or physical unfitness of certain settlers for farm-life ; reverses through various causes such as droughts, floods, loss of stock, reversion of pasture, &c. Apart from these difficulties there has been one common disability this year. The fall in the price of butterfat has been felt by all and sundry throughout the Dominion. It is true that most districts experienced good climatic conditions, and to some extent the fall in price was made up by increased yields. The success or failure of so many of our settlers depends so much on the market conditions that any material shrinkage in the normal "price of produce is necessarily reflected right through the community. The Board cannot stress too strongly the necessity for the application of up-to-date scientific methods in the handling of farm propositions. The best insurance against the effect of lower values of produce is the careful selection of animals, herd-testing and drastic culling, care of the milk-producer through proper feeding and the provision of shelter. It has to be recognized that farming of any kind cannot succeed through slipshod methods, and the time has arrived when the science of farming must be the constant study of those engaged on the land. Fortunately, the necessity for scientific propaganda, investigation, and tuition is becoming more and more widely recognized. The activities of the Agricultural Department have paved the way to a more general recognition of the value of science and research, while the recently appointed Council of Scientific and Industrial Research, and the proposed establishment of institutes and laboratories in connection with the New Zealand College of Agriculture, at Palmerston North, will, in conjunction with the Department of Agriculture, give opportunities for the fullest development of our national resources. The Board desires to acknowledge the assistance given by all District Offices in the work entailed through revision and adjustment. Consequent on adjustments and other concessions the position generally with regard to soldier settlement is now on a satisfactory footing. Given normal seasons and average prices for produce, there is every reason to believe that the position of soldier settlers to-day compares more than favourably with the average civilian settler. The feeling of depression which has been in evidence for some time has mainly been caused through economic conditions arising from the following causes :— (1) Realization by lenders and borrowers that it is just as necessary to-day to adjust private mortgages and borrowings as it was necessary four years ago for the Government to face adjustment of soldier settlers' liabilities. (2) In consequence of the above condition, mortgagees are faced with the position that in many cases their apparent equity for advances has disappeared : meaning that before renewing a mortgage they look for a repayment of part of the debt so as to re-establish a fair margin of security over advances. (?>) The mortgagor in consequence is at his wits' end to finance, and an impasse is reached which has to some extent destroyed the confidence of lenders in rural securities, and their withdrawal from the investing arena has left the mortgagor in the air regarding finance to carry on. ('!) Another factor is the inability of landowners to obtain the necessary farm labour at its economic value. (5) During boom years and seasons of high prices for produce many farmers considerably increased their personal expenditure. Often motor-cars costing (apart from purchase) £150 a year to run were added to the load the farm had to carry. It seems now that farmers will be compelled to readjust expenditure so as to come in line with revenue. (6) The decreasing value of the pound sterling in the purchase of all farm requisites, labour, &c., the effect of higher interest and rates, set against the uncertainty of'revenue through varying and at times adverse market conditions, are all factors affecting the stability of the farming industry. There is every hope that these matters are only a phase and will of necessity adjust themselves. It is realized that land did get credit for a value that was not justified on a productive basis, and it is now felt that when adjustments are effected consequent on this realization, confidence will be restored and finance made available in order that latent sources of wealth may be fully developed, and our lands made reproductive to the fullest extent.

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The Government lias given a lead in adjusting soldier settlers' lands to what is considered to be an economic level. It is felt that if the basis of this adjustment is applied to private lands, values will be stabilized and confidence restored. The whole question is bound up in finance, as without the means to get maximum results any land suffers in value through that disability. During the past year the Board has carried on its functions at a minimum of cost and staff. Meetings have only been held as circumstances warranted, and there is now little to do other than to clear up small matters of revision that come up for attention. The schedules here following show the operations of the Board on the Various accounts as at the 31st March, 1927. J. B. Thompson, Chairman. Summary of Operations as at 31st March, 1927. Applications for Revaluation. Number of applications for revaluation received .. .. .. .. .. 5,347 Number of cases dealt with and determinations issued by the Dominion Revaluation Board .. 5,284 Number of cases not dealt with, due to forfeiture or abandonment .. . . .. 63 The above result is very satisfactory as showing so few settlers having to drop out during practically twelve months subsequent to lodging of applications. Total capital invested (comprising capital values of Crown leaseholds, and advances under £ section 2, Discharged Soldiers Settlement Amendment Act, 1917) .. .. 17,333,495 Capital dealt with by Dominion Revaluation Board .. .. .. .. 12,528,835 Reduction in capital by Dominion Revaluation Board .. .. .. .. 2,584,296 Reduction in Land and Crown Mortgage Values. £ Reduction in capital value of leaseholds .. .. .. .. .. .. 1,808,812 Reduction in Crown's mortgage (under section 2) .. .. .. .. .. 775,484 Total £2,584,296 Private Mortgages and Debts. Mortgages and debts of various descriptions owing by soldier settlers to persons other £ than the Crown .. .. .. •• •• •• •• •• 159,958 Reduction obtained in the above by efforts of Dominion Board .. .. .. 120,702 Percentage of reduction to original debt .. .. .. .. .. .. 75-4 per cent. Private Mortgages and Debts purchased. £ Original value of mortgages and debts purchased by the Crown .. .. .. 56,531 Price paid by Crown after negotiation .. .. .. . . .. .. 28, 936 Discount obtained and which is credited to settlers .. .. .. .. 21,330 Percentage of discount .. .. .. •• .. 37-7 per cent. The difference represents the amount paid by the settlers themselves to successfully complete the negotiations. Remission of Instalment Interest and Rent. £ Granted by Dominion Revaluation Board in respect of arrears at 30fch June, 1923 . . 170,630 Granted by Land Boards on recommendation of Dominion Revaluation Board with respect to payments accruing subsequent to 30th June, 1923 .. .. .. .. 193,687 Total remissions .. .. .. .. .. .. £364,317 Mortgage instalments, rents, &c., automatically written off, due to reductions being retrospective to Ist July, 1921, or date of title, &c. .. .. .. .. .. £427,668 Postponement of Arrears as at 30th June, 1923, granted by Dominion Revaluation Board. £ Rent, principal, and instalment interest for periods up to ten years .. .. .. 326,118 Instalments to end of mortgage term .. .. .. •• •• •• 127,445 Total postponements granted by Dominion Revaluation Board .. £453,563 Postponements of payments accruing subsequent to 30th June, 1923, granted by Land Boards on recommendation of Dominion Revaluation Board .. .. .. £141,269 An extended schedule gives particulars for each land district under all headings. Investigation of Current Accounts wider the Discharged Soldiers Settlement Amendment Act, 1924. Number of accounts subject to investigation (approximate) .. .. .. .. 4,901 Number dealt with at 31st March, 1927 .. .. • • ■ ■ • • • • 4,-835 Remainder (which are practically completed at date of compilation of this report) 66 Manner of Disposal of Gases dealt with at 31st March, 1927. Current Accounts sustained .. • ■ • • • • • • • • • • 4,025 Reductions in Current Accounts (in some of these cases transfers were also made to Suspense Account) .. •• •• •• Transfers to Suspense Account (apart from those cases where reductions were also made) .. 60 4,835

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Revaluation of Solddiers Farms in Terms of the Discharged Soldiers Settlement Amendment Act, 1923.—Report as at the 31st March, 1927.

nff Postponements made Total Capital invested or consequent upon ' Eemissions eranted Postponements Instalment J? cWMonev, du e District. Total Capital Value Reduction of Capital. Evaluation dating Ctd. Recommendation of granted up to Ten Postponement i made 1923° under each Heading. back to 1st July 1921, Dominion Board. * lears - to End of Term. 0 n Recommendation ' «f Dominion Board, or other date. Discharged Soldiers Settlement Account. £ s. d. £ s. d. 1 £ s. d. £ s. d. I £ s. d. £ s. d. [ £ s. d. £ s. d. North Auckland .. .. .. 1,689,300 0 0 j 127,015 13 7 25,348 14 6 ! 12,309 9 8 ! 32,303 10 0 ; 34,587 0 5 I 26,718 4 7 25,222 1 7 Auckland .. .. .. .. 1,268,499 0 0 186,782 0 0 27,014 0 0 14,943 0 0 31,682 0 0 25,870 0 0 24,661 0 0 17,641 0 0 Gisborne .. .. .. .. 132,974 0 0 9.077 10 10 2,394 0 6 129 14 0 60 0 0 5,682 11 2 255 12 4 329 2 7 Hawke's Bay .. .. .. 358,773 8 9 19,672 15 10 8,202 18 7 1.166 11 6 3,409 6 10 11,821 3 8 8,358 1 10 5,082 7 6 Taranaki '.. .. .. .. 858,360 17 2 131,088 5 5 28,124 18 2 7,516 6 11 7,128 8 5 15,665 13 3 11,240 15 0 9,459 8 7 Wellington .. .. .. 1,781.002 0 0 143,981 0 0 23,507 8 7 9,902 9 5 16,949 19 11 30,339 18 3 20,523 16 10 4,432 9 1 Marlborough .. .. .. 231,869 16 6 22 518 17 4 5,139 0 2 1,512 19 5 3,793 3 11 5,540 8 5 2,702 18 4 3,444 1 3 Nelson .. .. .. .. 459,768 18 9 72,133 19 3 21,249 2 5 930 10 7 5,681 1 7 15,276 9 11 15,757 15 0 6,904 12 9 Westland .. .. .. ..I 51,631 0 0 j 6,073 11 5 1,035 18 3 ! 433 19 5 \ 1,011 1 8 1,039 2 9 3,537 10 11 1,480 3 9 Canterbury .. .. .. .. j 1,066,182 0 0 30,764 10 7 4,287 18 9 ! 1,835 19 9 5 2,126 9 2 j 18,882 16 7 6,758 12 0 11,650 14 1 Otago * .. .. .. .. i 314,108 15 2 , 9,916 15 10 1,208 16 8 I 1,012 15 4 2,779 1 2 . 4,960 15 6 2,569 1 0 2,893 15 6 Southland .. .. .. .. 1 432.720 0 0 16,459 0 6 7,050 5 9 2,213 19 9 3,121 19 2 9,979 3 2 4,361 4 0 2,915 7 11 Totals .. .. .. j 8,645,189 16 4 775,484 0 7 j 154,563 2 4 53,907 15 9 110,046 1 10 j 179,645 3 1 127,444 11 10 91,455 4 7 Land for Settlements Account. North Auckland .. .. .. 179,701 0 0 48,128 8 9 7,746 9 0 1,889 9 6 2,742 14 0 2,465 1 4; .. 1,398 16 3 Auckland .. .. .. .. I 358,321 0 0 94,408 0 0 16,184 0 0 11,923 0 0 9,117 0 0 8.143 0 0 .. 4,704 0 0 Gisborne .. .. .. .. 37,480 1 5 6,391 3 3 645 5 8 22 17 5 .. 1,256 10 10 I .. 352 3 4 Hawke's Bay .. .. .. 221,646 0 0 25,194 0 0 i 3,948 0 0 10,801 0 0 3,322 0 0 6,696 0 0 | .. 915 0 0 Taranaki .. .. .. .. 77,836 19 3 17,820 0 0 i 2,069 10 0 892 18 1 133 2 8 1,913 5 4 .. 97 13 0 Wellington .. .. .. .. 843,186 0 0 265,771 0 0 i 46,444 4 9 12,406 2 8 3,863 17 2 19,747 6 7! .. 5,288 9 1 Marlborough .. .. .. 54,151 13 9 600 0 0 1,599 15 0 271 16 0 37 2 6 2,130 0 7 .. 455 17 6 Nelson .. .. .. .. 66,135 16 9 10,140 0 0 1,671 3 4 121 13 1 442 16 5 1,255 11 7 .. 195 13 6 Westland .. .. .. .. 1,177 13 0 .. i .. i . • •• 112 5 11 .. 12 10 0 Canterbury .. .. .. .. 816,013 4 4 65,630 3 10 9,565 18 5 1 10,167 10 2 2,975 18 9 22,467 1 2 .. 9,467 11 10 Otago .. .. .. .. 218,149 0 0 51,251 0 7 ■ 3,829 7 8 i 2,162 17 8 1 1,930 4 6 3,908 4 0 .. 1,827 2 2 Southland .. .. .. .. 109,630 12 10 15,939 1 1 2,486 10 1 1,560 7 6 1,390 11 3 927 7 3 .. 1,333 9 5 Totals .. .. .. 2,983,429 1 4 601,272 17 6 | 96,190 3 11 52,219 12 1 25,955 7 3 71,021 14 7 .. 26,048 6 1 Land for Settlements (Discharged Soldiers Settlement Account). North Auckland .. .. .. 93,405 0 0 31,450 0 0 5,115 10 9 1,576 13 9 2,878 10 0 76 5 6 Auckland .. .. .. .. 265,285 0 0 116,293 0 0 18,126 0 0 2,537 0 0 3,317 0 0 673 0 0 .. 840 0 0 Gisborne .. .. .. .. 365,845 19 4 138,846 0 0 18,613 19 5 10,453 15 0 .. 6,709 19 7 .. 317 14 0 Hawke's Bay .. .. .. 303,227 0 0 107,112 0 0 18,044 0 0 4,290 0 0 .. 5,006 0 0 .. 4,640 0 0 Taranaki ".. .. .. .. 239,782 10 0 52,022 10 10 7,009 3 10 3,820 0 1 1,070 11 1 2,232 15 1 .. 445 6 2 Wellington .. .. .. .. 722,693 0 0 302,021 0 0 51,909 14 2 5,831 19 3 5,810 12 10 11,431 7 3 .. 2,832 8 11 Marlborough .. .. .. 89,251 0 0 16,996 0 0 2,455 6 6 2,534 19 8 318 7 5 1.747 14 10 .. 534 16 3 Nelson .. .. .. .. 98,815 0 0 4,550 0 0 658 15 5 60 19 6 .. 1,239 18 5 .. 204 6 1 Westland ........ Canterbury .. .. .. .. 333,000 0 0 76.401 18 2 10,310 14 7 6,891 13 7 1,707 16 9 5,682 6 6 .. 3.746 3 1 Otago .. .. .. .. 241,814 0 0 48.917 0 0 4,264 19 0 962 4 11 2.792 17 3 6,149 12 7 .. 1.618 4 5 Southland .. .. .. .. 38,055 0 0 7,045 0 0 1,109 11 9 379 15 9 459 0 0 162 16 5 i .. 48 10 8 i Totals .. .. .. 2,791,173 9 4 901,654 9 0 137,617 15 5 39,339 1 6 18,354 15 4 41,111 16 2 j .. 15,227 9 7 i ___l |__

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Native Land Settlement Account # £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. North Auckland .. .. .. 2,340 0 0 250 0 0 34 8 0 Auckland .. .. .. .. 103,550 0 0 23,377 0 0 1,561 0 0 243 0 0 4,076 0 0: 428 0 0 .. 385 0 0 Gisborne .. .. .. .. 124,865 0 0 15,005 0 0 1,701 18 4 .. .. 1,642 3 0 .. 67 10 0 Hawke's Bay .. .. •• 506,651 0 0 44,753 0 0 9,624 0 0 12,992 0 0 4,207 0 0 10,273 0 0 .. 2,004 0 0 Taranaki .. .. .. .. 43,394 8 2 7,835 0 0 224 3 6 177 4 9 233 3 8 123 12 0 Wellington .. .. .. .. 48,039 0 0 7,784 0 0 577 16 0 73 5 0 1,167 19 11 1,217 7 4 Marlborough ...... Nelson ........ Westland ........ .. .. .. . • ! Canterbury .. .. .. .. ■. • • • • • • ■ ■ • Otago ........ .. .. .. . ■ | Southland .. .. .. .. .. .. . - .. Totals .. .. .. 828,839 8 2 99,004 0 0 13,723 5 10 13,485 9 9 . 9,684 3 7 13,684 2 4 .. 2,456 10 0 National Endowment Account. North Auckland .. .. .. 80,185 0 0 17,455 16 0 2,089 4 11 281 10 8 3,266 4 4 408 19 4 Auckland .. .. .. .. 50,691 0 0 4,190 0 0 577 0 0 294 0 0 2,011 0 0 114 0 0 .. 88 0 0 Gisborne .. .. .. .. 3,978 00 .. .. .. •• 17122 Hawke's Bay .. .. .. 14,714 0 0- .. .. .. 48 0 0 229 0 0 Taranaki .'. .. .. .. 45,469 10 0 2,010 0 0 229 16 0 107 13 2 672 6 8 160 6 3 Wellington .. ... .. .. 15,276 0 0 4.497 0 0 453 16 0 .. 272 0 0 50.16 0 Marlborough .. !. .. 44,243 0 0 .. .. 315 10 0 5 18 0 474 19 2 .. ] 201 0 2 Nelson .. .. .. 157,054 19 0 5,279 15 6 556 11 2 325 9 10 120 1 10 349 7 4 .. ! 46 1 7 Westland .. .. .. .. 4,448 50 60 00 454 .. 73 42 37 36 .. ! 38 00 Canterbury .. .. .. .. 184,359 1 3 14,215 0 0 2,278 0 0 1,837 3 4 .. 4,338 16 3 .. 686 15 0 Otago .. .. .. .. 121.835 0 0 385 0 0 30 16 0 32 2 4 .. 621 3 6 Southland .. .. .. .. 14,194 17 6 250 0 0 45 0 0 8 16 0 275 4 0 .. .. 32 11 0 Totals .. .. .. 736,448 12 9 48,342 11 6 6,264 9 5 3,202 5 4 6,743 19 0 6,955 13 6 .. 1,092 7 9 Crown Lands. North Auckland .. .. .. 73,221 0 0 I 5,025 0 0 718 12 1 454 2 7 1,532 7 8 616 7 3 | .. 242 13 10 Auckland .. .. .. .. 106,170 0 0 27,647 0 0 4,029 0 0 2,037 0 0 8,314 0 0 1,506 0 0 .. 692 0 0 Gisborne .. .. .. .. 25,954 0 0 j 5,862 2 6 639 9 7 679 19 7 .. 325 14 3 Hawke's Bay .. .. .. 13,346 0 0 .. .. .. 18 0 0 214 0 0 Taranaki .. .. .. .. 75,682 11 11 14,047 6 4 1,191 0 1 1,039 3 7 948 10 2 1,295 5 2 .. 66 12 0 Wellington .. .. .. .. 110,213 0 0 45,216 0 0 3,311 15 6 2,194 1 8 4,587 1 4 2,816 8 3 .. 916 6 0 Marlborough .. .. .. 35,629 0 0 851 15 0 745 15 0 31 3 8 34 9 7 510 6 0 .. 60 10 0 Nelson .. .. .. .. 270,238 10 6 965 0 0 73 4 1 104 12 0 192 16 6 302 19 0 .. I 35 15 3 Westland .. .. .. .. 2,075 14 7 .. .. 43 18 0 86 8 0 23 2 11 .. Canterbury .. .. .. .. 18,035 3 1 280 0 0 37 16 0 .. .. 78 12 6 Otago .. .. .. .. 179,301 0 0 4,393 15 0 469 9 8 7 5 8 .. 241 1 8 j .. 215 9 2 Southland .. .. .. .. 31,178 4 1 2,150 0 0 313 2 0 77 18 3 1,302 0 6 107 11 0 .. j 73 0 0 Totals .. .. .. 941,044 4 2 106,437 18 10 11,529 4 0 6,669 5 0 17,015 13 9 8,037 8 0 .. j 2,302 6 3

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Revaluation of Soldiers Farms in Terms of the Discharged Soldiers Settlement Amendment Act, 1923.—Report as at the 31st March, 1927—continued.

Rent, Interest, or Postponements made Total ranital invMtPd or Instalment written off, Remissions granted Pnstoonpmpnt* TmtalmMit, by Land Board in District Total Canital Value Reduction of CaDital consequent upon Remissions granted by Land Board on granted uS to Ten Postnonemeats made rea P ect of Moneys due smau% - 'JaiSS E ' edU10n 0f Capita1, Revaluation dating by Dominion Board. Recommendation of Sranted up 16° ien made gince 30th j 1923) eacn Ueaclm g- back to 1st July, 1921, Dominion Board. Year8 ' ™ *** 01 lerm * on Recommendation or Date of Title. of Dominion Board. Any other Account. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ a. d. £ s. d. North Auckland .. .. .. 1,107 0 0 .. ... .. .. 250 5 0 Auckland .. .. .. .. 98,262 0 0 44,020 0 0 6,880 0 0 1,399 0 0 5,453 0 0 246 0 0 .. 243 0 0 Gisborne .. .. .. 47,555 0 0 3,400 0 0 416 0 0 328 0 0 .. 692 8 4 .. 546 16 0 Hawke's Bay .. .. .. 24,540 0 0 .. .. .. .. 542 0 0 .. 268 0 0 Taranaki .. .. .. .. 13,803 16 8 .. .. 62 18 1 .. 73 18 7 Wellington .. .. .. .. 29,901 0 0 1,505 0 0 40 1 4 .. 343 18 6 490 9 11 Marlborough .. .. .. .. .. .. Nelson ........ Westland .. .. .. .. 300 0 0 .. .. .. .. 30 0 0 Canterbury .. .. .. .. 119,654 3 5 1,310 0 0 183 0 0 .. .. 2,676 12 0 .. 1,371 12 4 Otago .. .. .. .. 39,264 0 0 .. .. .. .. 28 13 0 Southland .. .. .. .. 32,983 0 0 1,865 0 0 261 2 0 16 17 9 90 0 0 631 10 6 .. 256 17 10 Totals .. .. .. 407,370 0 1 52,100 0 0 7,780 3 4 1,806 15 10 5,886 18 6 5,661 17 4 .. 2,686 6 2 Grand totals.. .. .. 17,333,494 12 2 2,584,295 17 5 427,668 4 3 170,629 15 3 193,686 19 3 326.117 15 0 127,444 1110 141,268 10 5

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Adjustments by Dominion Revaluation Board in Terms of the Discharged Soldiers Settlement Amendment Act, 1924, as at 31st March, 1927.

FINANCIAL REVIEW. The two principal accounts controlled by the Lands Department for the repatriation of returned soldiers are the Discharged Soldiers Settlement Account, from which advances for various purposes secured by mortgages have been made, and the Land for Settlements Account (Discharged Soldiers Settlement Account), through which the purchase of private properties for subdivision and settlement has been made. The total capital now standing as a liability on these two accounts is as follows: — Discharged Soldiers Settlement Account — £ £ Loans raised by the issue of debentures and other securities .. 6,452,676 Redemptions of loans by Consolidated Fund.. .. .. 13,350 Redemptions of loans by Discharged Soldiers Settlement Depreciation Fund Account .. .. .. .. .. 40,660 Transfer from Consolidated Fund surpluses .. .. .. 13,500,000 Interest unpaid to Consolidated Fund .. .. .. 540,000 20,546,686 Land for Settlement Account (Discharged Soldiers Settlement Account) .. 3,222,050 £23,768,736 In addition to the above, certain other accounts contributed to the Settlement of discharged soldiers, in that land which had been purchased out of these accounts was settled by returned soldiers. These are — £ Land for Settlements Account .. .. .. .. 2,514,000 Native Land Settlement Account .. .. .. .. 750,000 3,264,000 Total capital £27,103,136 Discharged Soldiers Settlement Account. Advances authorized.--The following table indicates the loans authorized during the year for the purposes stated : —

The total loans authorized have not as yet been fully availed of, especially as regards advances authorized on Current Account to assist in the purchase of stock and effecting improvements. In these cases advances are only drawn upon as required by the settlers —i.e., when additional security is forthcoming in the shape of further stock purchased or improvements effected.

. . „ , . , Adjustments in Buildings under Adjustments in Current Account. foj . g ettlement e Act . Districts. Total Capital Reduction of Original Value, i Re duced by mves« . | api a . Account. £ s. d. £ s. d. 1 £ s. d. £ s. d. £ s. d. North Auckland .. 500,072 0 0 32,328 0 4 2,600 0 0 14,210 0 0 2,173 2 2 Auckland .. 802,751 0 0 27,587 0 0 3,180 0 0 16,959 0 0 1,321 0 0 Gisborne .. 115,510 0 0 350 0 0 .. 7,114 0 0 114 0 9 Hawke's Bay .. 216,371 16 6 4,437 7 6 250 0 0 9,990 0 0 1,507 11 2 Taranaki .. 297,530 12 9 21,372 18 2 650 0 0 5,030 0 0 1,941 10 2 Wellington .. 633,405 0 0 43,666 0 0 1,740 0 0 17,375 0 0 8,092 0 0 Marlborough .. 58,280 0 0 724 18 0 200 0 0 200 0 0 56 J10 7 Nelson .; .. 106,184 13 3 1,616 0 0 512 0 0 4,610 0 0 Westland .. 34,176 9 8 500 0 0 300 0 0 Canterbury .. 250,967 8 6 2,656 11 10 2,035 0 0 38,732 8 10 1,385 11 11 Otago .. .. 127,808 8 2 3,014 1 0 90 0 0 11,080 2 1 853 19 6 Southland .. 111,080 0 0 1,916 18 11 850 0 0 6,080 0 0 689 0 7 Totals .. 3,254,137 8 10 1140,169 15 9 12,407 0 0 |131,380 10 11 j 18,134 6 10

I t, f Num^ r ,°, f . | Amount authorized. Returned Soldiers. £ Section (>, Discharged Soldiers Settlement Act, 1915 —Advances 55 92,367 oil Current Account Section 2, Discharged Soldiers Settlement Amendment Act, 1917 (i 7,222 —Advances towards purchase of farms, market-gardens, orchards, and discharge of mortgages Section 2, Discharged Soldiers Settlement Amendment Act, 1917 41 37,972 — Erection of dwellings, &c. Totals .. .. .. .. .. 102 £137,561

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The extent to which the Department is committed in connection with loans authorized, but not fully drawn on, by settlers is shown by the following table. — Loans authorized but not yet availed of. £ Section 6, Discharged Soldiers Settlement Act, 1915 —Advances on Current Account .. .. .. .. .. .. .. 449,776 Section 2, Discharged Soldiers Settlement Amendment Act, 1917 —Advances towards purchase of farms, market-gardens, orchards, and discharge of mortgages .. .. .. .. .. .. 1,413 Section 2, Discharged Soldiers Settlement Amendment Act, 1917 —Erection of dwellings, &c. .. .. .. .. .. .. 8,215 £459,404 . Curtailment of Advances. —As in previous years, applications to assist in the purchase of farms and for the purchase and erection of dwellings have only been made in a few special cases of T.B. and other disabled men who did not have an opportunity of obtaining loans in the early stages of repatriation. The Department is still accepting applications for advances on Current Account to assist in the purchase of stock and for development purposes, in fulfilment of its duty to those discharged soldiers who have already been placed on the land on the understanding that loans would be forthcoming for these purposes. It will doubtless be realized that the privilege of obtaining loans under this heading cannot be summarily withdrawn. Current Account Advances. —As already indicated, loans under this heading are granted for the development of farms and stocking same. The balance outstanding at the end of the year was £2,801,152. Some progress has been made in the direction of converting development loans on Current Account to table mortgages in order to separate trading operations from development loans and provide for the gradual redemption of the advances for improvements. It is felt that the time has now arrived when many settlers should, in a greater degree than hitherto, co-operate with the Department in the development of their properties. There is ample evidence that many expect the Department to provide the whole of the finance necessary for this purpose, but this spirit of dependence cannot be fostered. Where farms have been developed to a paying-point with capital provided by the Department, settlers are expected to shoulder the burden of further development out of farm revenues and to create equities in their own interests. Advances on Current Account, both as regards loans authorized and actually pa-id out, show a decrease as compared with the previous year, indicating that a number of properties have reached a point that enables the settlers to carry out additional development work without further encumbering their properties. A matter which is causing some concern is the failure of many settlers to maintain pastures in a proper manner. The Department is continually being requested to provide finance for manures and top-dressing of pastures. While it is sometimes necessary to accede to such requests in order to preserve the securities for former advances and ensure more profitable farming, in the future the Department will not provide further capital of this nature unless it is fully satisfied that the revenues are not at present sufficient for the purpose, and the settler's business and farming methods ensure success. A condition will also .be made that the Department control wholly or partially the farm revenues from which subsequent payments are made for top-dressing. The growing of green crops for stock and fattening purposes should receive every attention. Settlers should recognize that, compared with the general run of farmers, they are being assisted at a very cheap rate. Dwellings. —Only a few additional loans are now being made under this heading to badlywounded or T.B. men, and the loans authorized during the year to forty-one applicants, amounted to £37,972. The amount provided for the housing of discharged soldiers from the inception of the Act is as follows:— Number. Amount. £ Erection of dwellings on farms, urban and suburban .. 4,867 1,498,787 Erection of dwellings .. .. .. .. 4,450 3,751,156 Purchase of dwellings ' .. .. .. 7,546 4,946,822 16,863 £10,196,765 Receipts and Payments. —The Receipts and Payments' Account shows that the total receipts for the year amounted to £1,653,684, which constitutes a record. Of this amount £934,374 represents repayments of principal by mortgagors and capital derived from the sale of abandoned properties and sales of stock, while £719,310 represents receipts on account of interest and sundries. The average monthly receipts amounted to £137,807, as against £135,813, during the previous year. The following statement shows the position as compared with previous years 1921-22. 1922-23. 1923-24. 1924-28. 1925-26. 1926-27. £ £ £ £ £ £ Principal .. .. .. 553,345 716,667 795,841 882,977 940,596 934,374 Interest, kc. .. .. 556,301 649,463 627,921 726,674 689,167 719,310 Cash advances on Current Account during the year show a decrease of approximately £86,826 over the previous year, which indicates a gradual tapering-off of advances as properties are reaching a more advanced stage of development,

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The following table furnishes a comparison of cash advances made for each of the past four years:—

Revenue Account. —The total income of tie account for the year was £844,261, which is mainly made up of accrued interest on advances and rent from properties. The net result of the operations for the year is a loss of £407,689 on the Revenue Account, while the total loss from the inception of the Act on the Revenue Account is £1,190,337, which includes losses on realization, remissions, and rebates amounting to £699,760. The accrued interest on advances is insufficient to meet the full charge for interest on capital, there being a deficit of approximately £28,000 on the year's working. The writing-down of capital by the Dominion Revaluation Board is largely responsible for the deficit in interest, as witness the fact that in the balance-sheet for the year the capital reductions by the Dominion Revaluation Board are shown at £913,553. This amount has not been debited to the Revenue Account, but it is an unproductive asset which will require to be written off Capital Account in the books. For this purpose legislation is now under consideration, and it is anticipated that when the account has been stabilized by the writing-off of the reductions in capital and interest due to the operations of the Dominion Revaluation Board, and by the writing-off of the adverse Revenue Account balance, that the interest earned will be approximately sufficient to meet the interest on the reduced capital. Arrears and Postponements.—The total amount of interest and instalments of principal in arrears at the end of the year was £345,300, while the sum of £184,184 is outstanding on the Postponement Account, representing instalments of principal and interest which have been postponed for varying periods. The bulk of the postponements have been granted on the recommendation of the Dominion Revaluation Board. Property Account and Realization Account. —The liability on properties which have been bought in and which are in course of realization, amount to £1,279,472, representing a decrease of £213,483 over the figures for the previous year. The Department has made a special effort to dispose of as many properties as possible, and this accounts for the reduction in the amount outstanding on account of abandoned properties. With a view to facilitating the disposal of farms that have deteriorated through bad management and other causes special inducements have been offered to the public by way of exemption of rent or interest on condition that the properties are improved each year to the amount of the annual concession. The following statement shows the farms disposed of by way of sale or lease :— Sale. Lease. Number of farms .. .. .. ■ • • • 187 172 Area (acres).. .. .. .. •• •• 40,256 38,312 Price realized for Discharged Soldiers Settlement equity £255,526 £115,629 At the close of the year the Department had on hand 428 freehold and leasehold farms comprising 189,415 acres, valued in all at £534,032. Lands for Settlement Account. The capital raised for the purposes of settlement under this heading is £3,222,050, while reductions in values and other concessions by way of remissions with costs of revaluation total £1,099,490. The value of properties under lease is £1,710,827, the unlet lands are valued at £270,511. Apart from the reductions made by the Revaluation Board a further reduction of £115,363 has been made on the reselection of forfeited leaseholds. After making allowances for the capital required to survey, road, fence, and develop subdivisions as well as to erect the necessary buildings, yards, &c., it has been found that although an estate may be well bought it will not stand the whole of the additional charges arising out of subdivision, the result being a much heavier writing-down than was anticipated. Following on reductions granted by the Revaluation Board it was anticipated that settlers would have kept pace with their annual rentals, and it is somewhat unsatisfactory to record that while accrued rents during the year amounted to £85,428, the rents actually received amounted to £71,273, while arrears including previous arrears total £39,156. The Revenue Account shows an accumulated loss of £289,352. This is exclusive of remissions and other concessions granted by the Revaluation Board, which will be dealt with by legislation. The loss in the Revenue Account largely arises through interest being charged on the full amount of loan capital, no allowance having as yet been made for the reductions granted by the Dominion Board ; and, as the money was borrowed at rates of interest exceeding rentals, there has at no time been a margin* to^coverjrebates*and administration expenses as well as remissions and other losses on properties lying unoccupied. It is obvious that unless interest is reduced to the net earning capacity of the'estates after making reasonable provision for losses, the Revenue Account will continue to show a loss annually.

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Year. j Current Account, j Farms. Dwellings. Total. £ £ £ £ 1922-23 .. .. .. 681,623 74,345 469,785 1,225,753 1923-24 .. .. .. 583,633 41,727 571,727 1,196,521 1924-25 .. .. .. 567,748 32,552 92,439 692,709 1925-26 .. .. .. 588,412 35,965 61,245 685.622 1926-27 .. .. .. 501,586 8,457 41,208 551,251

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GENERAL REMARKS. Notwithstanding the decline in the prices of farm-products—excluding wool—which has been experienced during the year, it is considered that in most cases the values determined upon by the Revaluation Board leave a sufficient margin that will enable settlers, with economy, to overcome the temporary set-back due to deflation in prices. Unfortunately, it is evident that areas which a few years ago were considered large enough to make a living off are now, through altered economic conditions, too small for this purpose, and in such cases the Department must grant some measure of relief until it is possible to enlarge the holdings. In some districts the prolonged drought, followed by a long winter and short spring, affected returns from sheep-farmers, and although good prices were obtained from wool, the clips were light and lambing percentage somewhat on the low side. The slump in prices was fortunately somewhat counteracted by the increased yield of produce for the season. LANDS PROCLAIMED. The lands set apart for selection by discharged soldiers during the year totalled 7,724 acres. From the inception of the scheme to the 31st March, 1927, a total area of 1,427,490 acres has been proclaimed for soldier settlement. This area is made up as follows : — Class of Land. Area (Acres). Ordinary Crown lands .. .. .. .. .. .. 596,047 Cheviot Estate land .. .. .. .. .. .. 3,356 Land for Settlements land .. .. .. .. .. 397,089 National-endowment land .. .. .. .. .. .. 430,998 1,427,490 Proclamations have been issued revoking the setting-apart of 210,172 acres of Crown lands, and 91,653 acres of land for settlements land. APPLICATIONS FOR LAND. Applications for land under the Discharged Soldiers Settlement Act to the number of seventyeight were received during the year. The following table gives the number of applications and the area allotted during each year from the inception of the soldier-settlement scheme : —

. ,. ,. Allotments made. Year ending Applications leecive . Number. Area (Acres). 31st March, 1916 .. .. .. .. 272 2 629 1917 .. .. .. .. 522 319 143,524 1918 .. .. .. .. 513 313 103,362 1919 .. .. .. .. 1,379 348 117,018 1920 .. .. .. .. 5,041 932 403,891 1921 .. .. .. .. 5,396 1,087 414,867 1922 .. .. .. .. 878 403 97,972 1923 .. .. .. .. 284 146 25,113 1924 .. .. .. .. 216 79 16,910 1925 .. .. .. .. 123 47 9,014 1926 .. .. .. .. 109 86 20,500 1927 .. .. .. .. 78 66 17,412 Totals for twelve years .. .. 14,811 3,828 1,370,212

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APPENDIX. REPORTS OF COMMISSIONERS OF CROWN LANDS. NORTH AUCKLAND. (0. N. Campbell, Commissioner of Crown Lands.) The condition of the soldier settlers is somewhat similar to that of the Crown tenant with the exception that, as a result of the operations of the Revaluation Board, the majority of them have been placed on a footing which under ordinary market conditions would ensure success. In view of the low payments for butterfat during the past year it has been found in the majority of those cases where the Department is receiving 33| per cent, of the settler's cream cheques that the proceeds have proved insufficient to meet interest and rental charges. This will probably result in postponements having to be granted to enable them to complete their requirements for the top-dressing manures essential to maintain their usual production for the ensuing year. A noticeable improvement exists in regard to the general tendency of soldier settlers to take the Board into their confidence in regard to their farming and financial affairs, a factor which has proved of great assistance in solving the difficulties of the individual cases. Great difficulty has been experienced in connection with small farmlets in or about the suburban areas, as in most cases they are not self-supporting propositions and the soldier is generally compelled to obtain outside casual employment to meet his obligations. Although these properties are not payable propositions as farmlets, their value is being enhanced on account of the improved transport facilities bringing them within easy range of the city. In the face of adverse conditions prevailing during the year it is not yet possible to gauge the effects of the revaluation. Applications under the Discharged Soldiers Settlement Act. —During the year the applications received numbered 851, which were made up of —postponements, 229 ; purchase of farms, 5 ; transfer of farms, 61 ; additional advances for erection of houses, 30 ; transfer of houses, 135 ; and letting houses, 24. Movement in connection with transfer of houses still continues, but not on such a large scale as in the previous year. The total amount recommended on Current Account was £16,674. -Up to date the number of dwellings abandoned was 115, of which 82 have been disposed of, and the majority of the balance have been let pending disposal. Farms. —222 farms have come into the hands of the Department since the inception of the scheme, and of this number 184 have been disposed of, and the balance remaining on hand are being revalued with a view to sale. AUCKLAND. (K. M. Graham, Commissioner of Crown Lands.) Steady development and progress continues to be made in the majority of cases coming within the administration of the Discharged Soldiers Settlement Act, and, despite adverse conditions which have in a number of cases still to be overcome by hard work and expenditure, the discharged-soldiers-settlement scheme may be said to be on the whole in a satisfactory and sound position. The investigation of Current Accounts has now been practically completed, and as far as possible adjustments and concessions have been made in a determined effort to place each settler in a position to successfully carry on, and at the same time meet his future interest payments to the Department as these become due. Owing to the copious rainfall experienced by this district throughout the year there has been an abundance of feed for stock of all classes, and though prices for farm-produce have not altogether come up to expectations, stock have been kept in good condition, and there is no danger of shortage of pasture during the remainder of the season. The cold and wet spring adversely affected dairy returns at ttie commencement of the season, but any loss has been more than made up by the vigorous growth of grass during the summer, and in point of production alone the indications are that the output of butter and cheese over the whole season will constitute a new record. This increase in actual production will, it is hoped, largely compensate the settlers for lower advances or payments by the factories, and should reflect favourably upon the Discharged Soldiers Settlement Account when the dairying season has come to a close. The several amounts of loans and advances outstanding at the end of this year are as follows : Farms, £898,555; dwellings, £402,874; Current Account, £668,726.

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GISBORNE. (E. H. Fabnie, Commissioner of Crown Lands.) The soldier settlers in this district have in the majority of cases done very well during the year. In two or three instances the Board found it necessary to go to the length of forfeiture. Rents were, as a rule, promptly paid. The settlers on Ardkeen, Ohuka, and other pastoral settlements have not done quite so well as last year as far as their surplus stock is concerned. This is accounted for by the great growth of grass early in the year, which put the hoggets and lambs back considerably. The general average price obtained for wool by soldier settlers was slightly in advance of the prices obtained last year. The position of Repongaere, Glencoe, and other dairying settlements shows a slight improvement on last year. The soldier dairy-farmer is now paying more attention to the question of growing supplementary feed. The season has been more or less ideal from a dairying point of view. The average soldier settler is not milking as many cows as usual: this is accounted for by the deaths that occurred in the early part of the season. Advances made for butterfat show a decrease of 3d. per pound from last year. Speaking generally, however, all soldier settlements are in quite a prosperous position. Soldiers have gained much experience, and there should be very few failures from now on. lIAWK ICS BAY. (J. D. Thomson, Commissioner of Crown Lands.) The efforts of the Dominion Revaluation Board, so far as this district is concerned, have been finalized by the practical completion of the Current Account adjustments whereby the soldier settler has been treated in such a manner that under normal conditions the fault lies entirely with the settler and not with the land if he is unable in the future to carry on. There will, of course, remain the few who will always be a source of trouble; they are, however, a small minority —indeed, all things considered, it is surprising to find how very few they are. The soldier settlers engaged in dairying have come through an exceedingly trying season. Stock went into the winter down in condition, and, with a marked scarcity of feed, disaster was inevitable for the improvident settler. The season has been very backward, and to add to their troubles the butter-market suffered a severe decline in prices. The severe drought conditions, however, were not entirely unprofitable, as farmers, being forced to sacrifice, naturally disposed of the poorest of their herd, with the result that the remaining cows have better feed and are producing better results than obtained from the larger number. While the sheep-farmer has no cause for complaint as regards price and firmness of the markets, the low condition of the ewes had a marked effect on the lambing percentages throughout the district, with the exception of coastal sections. The wool has been short in the staple and much lighter than usual, with the result that the total offerings for the season at the Napier wool-sales were nine thousand bales less than the previous season. The orchardist also has had his troubles : an unusually heavy hailstorm in November severely affected the prospects of a successful export return. It is stated that the returns will show a drop of nearly thirty thousand cases under last season. Autumn-sown crops made good growth and gave every indication of a heavy yield, but continuous warm rains during harvesting seriously damaged the oat crops while in the stook. The prospects for the sheep and dairy farmers for the coming season are distinctly bright. Stock of all descriptions are in good condition to face the winter, feed is fairly plentiful, and on the majority of farms ample supplies of good winter fodder have been secured. On two of the dairying settlements, Tiratu and Tukura, where the water-supply has been found to be deficient, special efforts are being made to install a supply sufficient for the requirements of each individual settler, and it is hoped to have the scheme in working-order for the coming season. During the year sixteen farms were abandoned or forfeited, and of these only one remains to be disposed of. The small improved type of farm appears to be in demand in this district. With this solitary exception, not the slightest difficulty has been experienced in selling these properties, and in some cases a considerable advance on the upset has been obtained. TARANAKI. (W. D. Armit, Commissioner of Crown Lands.) The outstanding feature in connection with soldier settlement as well as with ordinary settlement in this district during the past season has been the reduced advances by factories for butterfat, thereby entailing careful administration of accounts with a view to extending temporary assistance where warranted. The factory advances have been in the vicinity of Is. per pound of butterfat bo date, constituting a reduction of 33§ per cent, in comparison with last season. Unfortunately, the average soldier settler has little or no reserve capital to meet such a position, and the amount of final payment resulting from sales of season's produce in London is necessarily a subject of considerable interest. Returns from milk proceeds arising out of various orders on milk cheques decreased on an average 20 per cent, compared with last season, and this decrease in revenue is necessarily reflected in the mortgagors' accounts. An excellent milking season has been experienced, with an early spring, and indications point to a record production output for the season. The price of dairy cows has tended to decrease over the season, extra-good cows being available at £10 to £12. A number of mortgagors are giving more attention to pig-production, although inquiries show this branch of the industry still requires a great deal of fostering among soldier settlers.

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Graziers have experienced an improved year, although the effects of the 1926 drop in sheep-values is still evident. Settlers on dry stock areas have secured little or no revenue over the past two seasons, taking into account the depreciation in prices as an offset against wool proceeds and sales of forward wethers. Prices of breeding-ewes showed a decline during February, and appear to have stabilized on a somewhat lower level, compared with last season. The assistance of the Dominion Revaluation Board has been required in numerous cases to further review Crown charges on soldier holdings. Where good settlers are doing their utmost and still finding it difficult to meet charges the position has been again reviewed, and it cannot be said that the end is yet in sight. The fluctuations in prices render it an extremely difficult matter to stabilize land-values, and during the past two seasons the whole outlook on soldier settlement has changed. The problems confronting the Department in connection with deteriorating areas of backcountry land have a direct bearing on soldier-settlement administration. In numerous cases the farm revenue offers little margin over and above living-expenses, payment of rates, and maintenance of farm and stock, and the provisions of the Deteriorated Lands Act are being utilized whenever considered necessary. Every assistance is being given the trier, and most of the soldier settlers remaining can be now included in this classification. pjf Abandoned properties are difficult to dispose of in the back country, and the depreciation over even one season's unoccupancy is very great. In southern Taranaki there are practically no abandoned areas, the vacant sections being found in the grazing districts inland. During the year twenty-one soldier properties have been vacated, and fifty farms have been disposed of. There is a growing tendency on the part of soldier mortgagors to submit transfer proposals to the Land Board showing consideration over and above Crown charges. Invariably reductions in mortgages have previously been conceded by the Crown, and consent to the transfers is not readily available in these circumstances unless very adequate reasons are forthcoming. The speculative soldier farmer is not encouraged. There are 434 soldiers on farm properties who have received advances secured by mortgage under section 2 of the Discharged Soldiers Settlement Amendment Act, 1917, and 498 others have ■obtained assistance in the purchase or erection of house properties. The total amount outstanding on mortgage, including Current Account advances, is £1,300,741. The total revenue received during the year amounted to £173,134 9s. Bd., and the sum of £87,770 15s. 6d. was advanced. The position of arrears compares favourably with last year, but has been brought about mainly by concessions received through the Dominion Board and local Land Board. The amounts owing are as follows : Farm properties, £13,518 18s. lid. ; dwellings, £2,248 18s. 4d.; Current Account interest, £3,448 9s. Id. Applications for transfer or sublettings of house properties still continue to engage the attention of the Land Board, due in a great measure to movement of mortgagors to other centres. Owing to serious default on payments it has been necessary to exercise powers of sale in four cases, and twelve resales have been effected. WELLINGTON. (H. W. C. Mackintosh, Commissioner of Crown Lands.) In common with his colleague the Crown tenant, the soldier settler has experienced none too profitable a year. These men are for the most part on improved and highly-priced land, and although they have not had the pioneering experiences of the settlers on bush areas they have nevertheless to farm with greater intensity to pay their way and maintain their holdings to full capacity. The fall in prices of primary products, therefore, affects the soldier settler more than the man on the cheaper ordinary Crown lands. The wool-grower has had a fair year. Feed has been plentiful and prices for wool fair, but prices obtained for stock, especially cull stock, have been low, and reinstatement difficult. Those engaged in dairying have had a good year as far as abundance of feed and flow of milk are concerned. The price of butterfat has in many cases been disappointing and has prejudiced a promising season. The investigation of soldiers' Current Accounts by the Dominion Revaluation Board is now practically accomplished ; but the effects of the concessions granted or recommended will probably not be apparent for some time. The amount received for the year by way of payments of interest and principal was £304,930. The amounts of loans and advances outstanding at the 31st March, 1927, were as follows : Instalment mortgages on farms, £978,917 ; instalment mortgages on dwellings, £1,390,083 ; Current Account advances, £453,873. NELSON. (A. F. Waters, Commissioner of Crown Lands.) Dairy-farmers have been hard hit by the low prices ruling for the past season, as generally there was no reserve to enable them to stand a bad season. More attention is being paid to the use of fertilizers, with very satisfactory results. Sheep-farmers have had a fair season. The prices of wool have been good, but unfortunately there has been little demand for store sheep, and settlers have been compelled to dispose of their surplus stock at very low prices. Orchardists have experienced a profitable year, with every indication of better market prices for their produce in future.

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An increasing number of soldier settlers are devoting a small area to the cultivation of tobacco, which should prove a profitable sideline. It appears to grow well in the drier parts of the district, but will take experience to cure the leaf successfully. Many of the soldier settlers on Crown leaseholds, whose holdings came within the areas proclaimed under the Deteriorated Lands Act, have made application for relief. As many of the properties comprise poor land, considerable concessions have been made, which in most cases should place the settlers on a sound footing and enable them to carry on successfully. This applies particularly to several settlement areas which have been revalued under the Deteriorated Lands Act. There are still, of course, a few settlers who through lack of energy or experience are not likely to succeed. MARLBOROUGH. (J. Stevenson, Commissioner of Crown Lands.) Generally, the seasonal and market conditions mentioned in the general report covering the whole district affected the soldier settlers, and in many instances returns have not reached anticipations, accounted for by November floods, later frosts, and the low price of butterfat; but notwithstanding these factors the majority are improving their condition, the concessions granted by the Dominion Revaluation Board having materially assisted in this direction. The dairy-farmer has felt the drop in value of butter, and a number are valiantly struggling to make ends meet. With this class of settler a sympathetic consideration and directed effort to improve the herds by the introduction of proved butterfat-strain bulls and judicious culling will ultimately lead to the success of the industry. The sheep-farmer has passed through a more satisfactory season, and with a continuation of fair prices the prospect appears much brighter. The agriculturist, with a wet season right to Christmas mixed with floods and frost, has had an anxious time, and a number of settlers have not paid expenses, whilst others more favourably situated have had a good season. On account of staff changes and shortage, no progress has been made in the proposal to transfer Current Account mortgages for advances for improvements to instalment mortgages, but efforts will be directed towards this object during the ensuing year. The following is the position of accounts under the Discharged Soldiers Settlement Act:— Loans outstanding at the end of the year : Current Account advances, £51,899 13s. lid. ; instalment mortgage advances on farms, £221,042 17s. 5d.; instalment mortgage advances on dwellings, £93,351 Is. 2d. : total, £366,293. Receipts during year, £31,090 10s. sd. Arrears of interest on Current Account, £1,164 12s. 9d.; arrears of instalments on farms, £5,833 ss. 4d. ; arrears of instalments on dwellings, £220 Is. : total, £7,737 19s. Id. Postponements of principal and interest in force at the end of the year amounted to —farms, £7,214 os. 4d.; dwellings, £218 15s. 4d.; Current Account, £317 lis. 3d. : total, £7,750 6s. lid. YVESTLANIX (W. T. Morpeth, Commissioner of Crown Lands.) Generally speaking, the position of the discharged soldier settlers in this district is satisfactory, notwithstanding a bad winter and spring, and in spite of the fall in the price of butterfat. The position here is that the class of settler who almost courted failure has been eliminated ; and, although in two or three cases further postponements are indicated, and are, in fact, unavoidable, there is no doubt whatever that it is only a matter of time when the settlers will be in a good way and independent of further State assistance. CANTERBURY. (W. Stewabt, Commissioner of Crown Lands.) Owing to the concessions granted by the Dominion Revaluation Board, the position generally with regard to soldier settlement is much improved. Most of the settlers are now in a safer position, and it is hoped that in future only occasional postponements, to tide over temporary difficulties, will be sufficient to meet all except a few cases of special hardship. There are still a few men who are not fitted for farmers, and who under any circumstances could not make a success of their holdings ; these unsuitable settlers are gradually being eliminated. There are still a few cases where the liabilities to firms or to private mortgagees are too heavy to allow settlers to regain stability, but the number of these is gradually being reduced, mostly in the case of capable farmers, by the security-holders reducing their claims. During the past year some forty-three holdings were either abandoned or forfeited through the inability of the settlers to make good. Most of these areas have again been reallotted or, where the sections have been considered too small, divided amongst the adjoining settlers. Taken on the whole the present settlers are a good hard-working lot, and have had a fairly successful year. Crops have been remarkably good, though prices have been lower than in previous years. Pastoralists have done well, as the market for sheep has been steady and the price of wool has had an upward tendency. Dairy-farmers have perhaps been less fortunate owing to the drop in the price of butter, although the season itself has been a favourable one.

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OTAGO. (R. S. Galbraith, Commissioner of Crown Lands.) In my report of last year I ventured the opinion that failures on the land of discharged soldiers would become fewer as time wore on. The experience of the year has confirmed me in that opinion. Inexperienced men, many of them city dwellers all their lives, clamoured for land upon their return from the war, and went on it with a light heart, a light purse, and a complete ignorance of what was in store for them, but with a will and determination to succeed. Many failed from sheer inadaptability to changed conditions ; but a surprisingly large number stuck to their tasks and won through, if not to actual success, at any rate to within sight of it. The measure of success achieved by inexperienced men was due to hard work, eagerness to learn, and readiness to take and follow the advice tendered by the .Department's field officers and experienced friends. The time has now come when these men require very little supervision. They can be trusted to buy properly, sell properly, and cultivate properly. The low price ruling for dairy-produce has hit discharged soldiers harder probably than any other section of the community, and the Department will have to " nurse " some of these men a little longer than would otherwise have been necessary. There are only two abandoned farms in this district in the hands of the Department, and these will both be disposed of at an early date, applications for them being under consideration. There was not a single case during the year of a dwelling falling into the Department's hands through failure of the holder to keep up the payment of instalments on his mortgage. Of rural properties there were during the year five transfers from soldiers to civilians, eight from soldiers to other soldiers, and one from a civilian to a soldier ; of dwellings there were twenty-two transfers from soldiers to civilians, and fourteen from soldiers to other soldiers. SOUTHLAND. (N. C. Kensington, Commissioner of Crown Lands.) The soldier settlers, in common with other farmers, have had a rather trying time during the past year. This refers to those settlers who depended on a fair price for butterfat to meet their liabilities ; "but it is safe to say that had payments been made on the same scale as in the previous season many soldier settlers would be in a solid position. The main factor which assisted the settlers during the past season was the increased production of butterfat; and if prices next season are more on the lines of those received for the previous years the soldier settler has been on the land, then they should be able to pull up any arrears incurred during the past season. It has been an endeavour to get those soldier settlers who have derived the whole of their revenue from dairying to supplement this by running a few ewes and keeping some good breeding-sows and generally to go in for mixed farming. Those who have run on these lines have reaped the benefit during the past season. The settlements which were purchased under the Land for Settlements Act and set aside for discharged soldiers are, on the whole, proving a suitable proposition. Increased production by top-dressing pastures and the culling of the dairy herds is being given attention. Although in most settlements the settler is taking an interest in his work and endeavouring to better his position, the settlements of Strathvale and Allenby have so far showed the most progress. There are one or two holdings in these settlements on the small side, but the settlers as a whole have taken the dairying industry seriously, and are maintaining a high standard of production, an average of 250 lb. of butterfat per cow being the return from these settlements. Heavy crops have been experienced on different holdings ; but the broken weather experienced for harvesting makes it questionable as to what return soldier settlers will receive after paying harvesting and incidental expenses. As regards cases where the Department is mortgagee there are still a few whose financial position is precarious. This principally applies to those who are not honestly endeavouring to better their position but are just marking time ; also to some good settlers who, unfortunately, are on too small a holding, or the property has been previously so worked out that a heavy cost per acre is necessary to renew pasture. The past season has not been helpful for any expense incurred in this direction, and assistance to improve the pastures onjsuch properties becomes a necessity before sufficient can be taken off to meet liabilities. Fortunately there have been very few who abandoned their farms during the past year, and it may be said that the demand is such that, given reasonable terms, there is 110 difficulty in disposing of any farms in this district that come back 011 our hands.

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TABLE 1. Total Lands acquired from the Crown by Discharged Soldiers and held at the 31st March, 1927.

16

Sale (including Deferred Payment). Lease and License. Grand Totals. Number of Land District. DWJjjyd- „ Ku.be, Annual Purchasers Hol(lingB _ tidier HoldlngS- Rental. HoIdingSLicensees. Under the Discharged Soldiers Settlement Act, 1915, and Amendments. Acres £ Acres. £ Acres. North Auckland .. 15 14 2,625 2,314 291 289 53,107 13,304 306 303 55,732 Auckland.. .. 44 44 1,234 13,970 540 532 91,747 24,571 584 576 92,981 Gisborne .. .. .. .. .. . . 137 146 57,053 14,169 137 146 57,053 Hawke'sBay .. .. .. .. .. 255 261 100,483 35,674 255 261 100,483 Taranaki .. .. 2 2 94 870 146 148 33,329 9,258 148 150 33,423 Wellington .. 13 13 80 4,525 739 716 167,118 78,101 752 729 167,198 Nelson .. .. 3 3 1,216 1,292 28 28 17,356 1,785 31 31 18,572 Marlborough .. .. .. .. .. 57 55 17,676 5,260 57 55 17,676 Westland .. .. 1 1 148 150 20 20 20,594 228 21 21 20,742 Canterbury .. 11 11 206 452 328 324 551,724 48,006 339 335 551,930 Otago .. .. 2 2 102 1,100 142 140 214,644 14,495 144 142 214,746 Southland.. .. 14 14 2,001 8,515 94 94 19,281 4,655 108 108 21,282 Totals .. 105 j 104 7,706 33,188 2,777 2,753 1,344,112 249,506 2,882 2,857 1,351,818 Under other Acts. (This includes lands selected at ordinary ballots, leases and licenses purchased at auction, and holdings acquired by transfer or otherwise.) North Auckland .. 2 2 371 445 78 I 75 18,804 2,412 80 77 19,175 Auckland.. .. 49 47 22,754 20,503 337 | 309 149,785 8,360 386 356 172,539 Gisborne .. .. .. .. .. .. 48 j 44 37,332 4,429 48 44 37,332 Hawke'sBay .. .. .. .. .. 48 | 41 15,742 3,911 48 41 15,742 Taranaki.. .. 2 1 180 350 174 185 68,025 4,992 176 186 68,205 Wellington .. .. .. .. .. 149 144 55,550 33,470 149 144 55,550 Nelson .. .. 3 3 1,099 586 118 108 79,440 2,174 121 111 80,539 Marlborough .. .. .. .. .. 132 123 248,974 7,183 132 123 248,974 Westland.. .. 1 1 200 168 72 67 18,215 409 73 68 18,415 Canterbury .. 4 4 42 56 244 222 95,687 14,441 248 226 95,729 Otago .. .. .. .. .. .. 241 229 993,493 23,307 241 229 993,493 Southland .. 1 1 127 40 45 46 77,471 2,096 46 47 77,598 Totals .. 62 59 24,773 22,148 1,686 1,593 1,858,518 |107, 184 1,748 1,652 1,883,291 Grand totals 167 163 32,479 55,336 4,463 4,346 3,202,630 J356, 690 j 4,630 4,509 j 3,235,109

17

C.—9

3-C. 9

TABLE 2. Statement of Mortgage Transactions, Financial Year ended 31st March, 1927.

PRINCIPAL. INTEREST. DISTRICT i Tr , f t *rs tn Balance on Mortgage ' Losses,-Rebates, Balance at Balance at Advances Repayment | at 31st March, 1.927, Balance at | Charges Receipts j Commissions, 31stMarch, 1927, 31st March, 1926. during Year. during Year. including Instal- 31stMarch, 1926. during Year. during Year. and t ransfers to including ; ments postponed. j other Accounts. Postponements. North Auckland — j £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. Current Account .. .. 500,072 16 1 43,244 8 8 31,158 11 1 50,546 7 2 461,612 6 6 25,341 0 5 24,082 5 8 18,088 14 6 j 9,532 14 6 21,801 16 11 Farms, orchards, &c. .. .. jl,293, 595 10 0 2,705 0 0 ! 16,127 4 11 38,144 15 11 1,248,028 9 2 79,469 3 0 65,066 11 7 43,215 2 5 ! 30,715 8 11 70,605 3 3 Dwellings, business premises, &c. 2,025,511 0 5 10,025 0 0 62,945 15 4 12,281 12 10 1,960,308 12 3 11,151 0 0 101,597 6 2 94,562 18 6 10,032 15 7 8,152 12 1 Totals .. .. 3,819,179 6 6 55,974 8 8 110,231 11 4 100,972 15 11 3,669,949 7 11 115,961 3 5 190,746 3 5 155,866 15 5 : 50,280 19 0 100,559 12 3 Auckland — Current Account .. .. 724,244 3 6 59,303 5 2 i 47,579 9 0 67,242*8 2 668,725 11 6 45,553 19 11 34,865 16 3 29,514 2 10 26,712 10 3 24,193 3 1 Farms, orchards, &c. .. .. 942,727 11 10 1,010 5 4; 9,199 7 6 35,982 11 3 898,555 18 5 54,904 0 3 47,299 5 7 131,167 10 3 : 26,564 1 2 144,471 14 5 Dwellings, business premises, &c. 435,471 3 2 75 0 0 14,136 7 9 18,535 12 9 402,874 2 8 3,661 12 3 21,735 18 10 : 19,072 0 7 3,385 16 7 2,939 13 11 Totals .. .. 2,102,442 18 6 60,388 10 6 70,915 4 3 121,760 12 2 1,970,155 12 7 104,119 12 5 103,901 0 8 79,753 13 8 56,662 8 0 71,604 11 5 Hawke's Bay — Current Account .. .. 225,915 12 5 55,417 5 5 50,751 10 9 13,538 7 8 217,042 19 5 6,236 3 3 11,174 6 3 9,102 9 8 ! 1,982 3 7 6,325 16 3 Farms, orchards, &c. .. .. 311,479 5 3 752 3 9 3,110 4 10 15,071 16 1 294,049 8 1 17,877 13 7 14,933 13 0 9,030 10 3 110,546 9 6 13,234 6 10 Dwellings, business premises, &c. 386,270 9 2 650 0 0 15,636 6 5 4,559 15 lODr. 375,843 18 7 1,864 18 7 19,412 17 1 1.7,531 4 11 1,775 9 4 1,971 1 5 Totals .. .. 923,665 6 10 56,819 9 2 j 69,498 2 0 24,050 7 11 886,936 6 1 25,978 15 5 45,520 16 4 35,664 4 10 14,304 2 5 21,53.1 4 6 Gisborne — Current Account .. .. 114,028 4 5 20,117 9 6 115,559 15 7 92,621 15 5Dr. 111,207 13 9 2,718 8 4 5,803 6 9 5,310 3 9 690 5 3 2,521 6 1 Farms, orchards, &c. .. .. 111,949 17 0 .. 1.188 2 5 3,924 13 9Dr. 114,686 8 4 5,274 11 2 5,645 7 3 4,169 19 6 384 18 3 6,365 0 8 Dwellings, business premises, &c. 157,888 19 2 340 5 2 5,496 7 11 2,818 1 9Dr. 155,550 18 2 350 0 9 8,091 10 2 7,436 8 9 643 3 3 361 18 11 Totals .. .. 383,867 .0 7 20,457 14 8 122,244 5 11 99,364 11 WDr. 381,445 0 3 8,343 0 3 19,540 4 2 16,917 12 0 1,718 6 9I 9,248 5 8 Taranaki — Current Account .. .. 276,695 1 4 84,086 5 9 81,025 14 10 106,588 14 2 246,166 18 I 9,274 7 5 13,183 11 0 12,140 17 5 3,732 9 10 6,584 11 2 Farms, orchards, &c. .. .. 718,165 2 11 350 0 0 8,899 14 6 8,377 18 0Dr. 717,993 6 5 27,788 2 1 34,920 15 10 28,373 3 4 12,778 2 4 21,557 12 3 Dwellings, business premises, &c. 346,237 19 0 .. 11,902 15 6 2,246 7 4Dr. 336,581 10 10 1,101 13 11 17,343 12 1 15,668 9 7 1,560 17 10 1,215 18 7 Totals .. .. 1,341,098 3 3 84,436 5 9 101,828 4 10 95,964 8 10 1,300,741 15 4 38,164 3 5 65,447 18 11 56,182 10 4 18,071 10 0 29,358 2 0 Wellington — Current Account .. .. 534,886 2 9 64,489 2 5 71,134 5 10 74,367 3 4 453,873 16 0 32,668 19 10 23,809 14 1 22,074 0 11 16,455 4 0 17,949 9 0 Farms, orchards, &c. .. .. 1,007,440 12 8 2,100 0 0 16,106 13 7 14,516 0 5 978,917 18 8 48,803 11 8 50,752 19 3 40,710 3 5 21,549 9 6 37,296 8 0 Dwellings, business premises, &c. 1,441,087 15 9 10,463 15 11 58,666 19 7 2,801 2 2 1,390,083 9 11 2,258 5 2 72,271 15 11 65,896 18 11 6,547 10 3 2,085 11 11 Totals .. .. 2,983,414 11 2 66,052 18 4 145,907 19 0 91,684 5 11 2,822,875 4 7 83,730 16 8 146,834 9 3 1128,681 3 3 44,552 3 9 57,33118 11

C.—9.

Table 2—continued. Statement of Mortgage Transactions, Financial Year ended 31st March, 1927—continued.

18

PRINCIPAL. INTEREST. DISTRICT. Balance on Mortgage ' Losses, Rebates, Balance at Balance at Advances Repayments Transfers to at 81st March, 11)27, Balance at Charges Receipts Commissions, 31st March, 1927, 31st March, 1926. during Year. daring Year. Realization and including Instal- 31st March, 1926. during Year. during Year. and Transfers to including other Accounts. ments postponed. | ! other Accounts. Postponements. Marlborough —• £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. Current Account .. .. 53,742 5 10 | 7,461 7 5 i 7,916 12 0 1,387 7 4 51,8&9 13 11 1,626 10 8 2,666 17 3 1,881 9 7 67 17 6 2,344 0 10 Farms, orchards, &c. .. .. 224,468 16 10' .. ' 2,568 15 7 857 3 10 221,042 17 5 9,099 8 4 10,934 5 2 8,386 2 0 1,389 5 4 10,258 6 2 Dwellings, business premises, &c... 96,473 2 0 650 0 0 I 3,775 19 10 3 19 0Dr. . 93,351 1 2 35 4 11 4,794 11 11 4,389 2 9 400 19 6 39 14 7 Totals .. .. 374,684 4 8 8,111 7 5 ! 14,261 7 5 2,240 12 2 J 366,293 12 6 10,761 3 11 | 18,395 14 4 14,656 14 4 1,858 2 4 12,642 1 7 Nelson — Current Account .. .. 108,290 1 8 15,760 2 9 10,583 14 3 9,976 7 3 103,490 2 11 3,652 0 7 5,296 12 2 4,447 13 8 953 4 5 3,547 14 8 Farms, orchards, &c. .. .. 381,540 1? 8 .. 4,423 19 0 27,594 17 5 349,521 19 3 18,656 6 8 17,386 12 5 11,690 12 4 9,791 2 2 14,561 4 7 Dwellings, business premises, &c... 66,808 5 9 50 0 0 2,609 6 6 498 5 6 63,750 13 9 99 9 10 3,213 10 0 3,015 5 8 228 17 5 68 16 9 Totals .. .. 556,639 3 1 15,810 2 9:17,616 19 9 38,069 10 2 516,762 15 11 22,407 17 1 | 25,896 14 7 19,153 11 8 10,973 4 0 46,177 16 0 Westland —- Current Account .. .. 33,576 9 8 2,137 19 1 1,995 1 2 1,084 4 8 32,635 2 11 1,382 18 1 1,669 14 0 1,200 2 2 273 8 5 1,579 1 6 Farms, orchards, &c. .. .. 69,794 13 0 .. 821 19 4 1,651 17 4Dr. 70,624 11 0 2,307 2 3 3,711 0 9 2,208 0 0 598 10 10 3,211 12 2 Dwellings, business premises, &c... 20,175 9 2 .. 1,251 1 0 615 17 2Dr. 19,540 5 4 85 12 4 I 1,040 16 6 928 9 3 j 112 0 11 85 18 8 Totals .. .. 123.546 11 10 2,137 19 1 i 4,068 1 6 1,183 9 10X>»v 22.799 19 3 3,775 12 8 I 6,421 11 3 4,336 11 5 I 984 0 2 4,876 12 4 i i , ' 1 1 _ ' | ' : II Canterbury — ■ Current Account .. .. 242,290 14 8' 105,102 2 6 1102,486 16 0' 16,160 19 3 .228,745 111 9,914 13 8 ; 12,089 18 5 12,142 8 5 2,735 1 1 7,127 2 7 Farms, orchards, &c. .. .. 987,632 19 10 1,363 3 2 22,897 1 3 32,001 14 4 934,097 7 5 38,705 9 10 | 48,585 16 9 43,493 15 6 13,484 16 6 30,312 14 7 Dwellings, business premises, &c... 1,113,310 18 5 14,879 7 7 60,655 11 1 3,460 3 3Dr. 1,079, 994 18 2 1,572 8 7 55,276 5 7 51,125 4 2 4,001 10 7 1,721 19 5 Totals .. .. 2,343,234 12 11 121,344 13 3 186,039 8 4 j 44,702 10 4 12,233,837 7 6 50,192 12 1 115,952 0 9 106,761 8 1 20,221 8 2 | 39,161 16 7 Otago — Current Account .. .. 116,595 17 11 24,096 11 7 26,639 12 2 6,026 6 4 ! 108,026 11 0 4,767 6 7 1 5,716 14 10 5,217 7 5 1,718 0 9> 3,548 13 3 Farms, orchards, &c. .. .. 316,969 10 2 130 0 0 10,815 11 8 402 4 0 305,881 14 6 7,592 12 4 15,800 19 6 13,086 8 4 2,194 10 2 8,112 13 4 Dwellings, business premises, &c... 396,342 11 1 2,625 0 0 j 22,131 7 7 788 8 11Dr. 377,624 12 5 290 8 7 | 19,034 2 10 17,929 14 1 844 10 0 550 7 4 Totals .. .. 829,907 19 2 I 26,85111 7 59,586 11 5 5,640 1 5 791,532 17 11 12,650 7 6 j 40,551 17 2 36,233 9 10 4,757 0 11 12,21113 11 Southland — Current Account .. .. 111,293 1 0 26,528 4 10 18,355 18 10 1,739 10 9 117,725 16 3 4,072 1 0' 5,722 7 5 5,585 2 2 1,023 5 0 3,186 1 3 Farms, orchards, &c. .. .. 341,384 16 11 46 5 0 7,505 14 2 8,591 7 9Dr. 342,516 15 6 16,235 12 4 j 17,142 5 7 15,189 4 1 4.693 4 10 13,495 9 0 Dwellings, business premises, &c... 159,447 19 3 1,450 0 0 10,401 18 5 142 4 7 150,353 16 3 175 4 5 7,910 4 4 7,294 0 1 682 19 2 108 9 6 Totals .. .. 612,125 17 2 | 28,022 9 10 36,263 11 5 6,709 12 5Dr.l 610,596 8 0 20,482 17 9 j 30,774 17 4 28,068 6 4 6,399 9 0 16,789 19 9 Name of Account. Summary. Current Account .. .. 3,041,630 11 3 507,744 5 1 465,187 1 6 283,036 0 8 2,801,151 14 2 147,208 9 9 146,081 4 1 126,704 12 6 65,876 4 9 1100,708 16 7 Farms, orchards, &c. .. .. 6,707,149 12 1 8,456 17 3 97,664 8 9 142,025 6 5 6,475,916 14 2 326,713 13 6 332,179 12 8 250,720 11 5 134,689 19 6 273,482 15 3 Dwellings, business premises, &c. .. 6,645,025 12 4 41,208 8 8 269,609 16 11 19,766 4 7 6,396,857 19 6 22,645 19 4 331,722 11 5 304,849 17 3 30,216 10 5 19,302 3 1 Grand totals .. .. 16,393,805 15 8 557,409 11 0 832,461 7 2 445,827 11 8 15,673,926 7 10 496,568 2 7 809,983 8 2 692,275 1 2 230,782 14 8 |393,493 14 11

19

C.—9

DISCHARGED SOLDIERS SETTLEMENT ACCOUNT. Rkceepts and Payments Account for the Year ended 31st March, 1927. Receipts. Payments. To Balance, Ist April, 1926 — £ s. d. £ s. d. By Advances on mortgages, &c. — £ s. d. £ s. d. Cash in Public Account .. 15,169 19 4 Current Account .. 501,586 6 2 Imprests outstanding .. 11,284 12 4 Section 2, Farms Account 8,456 17 3 Cash on investment .. 99,819 0 9 Section 2, Dwellings Ac126,273 12 5 count .. .. 41,208 8 8 Repayment of advances— Miscellaneous advances .. 2,143 3 4 Current Account .. 465,187 1 6 553,394 15 5 Section 2, Farms Account 97,664 8 9 Plant Account—Purchase of motor-cars, &c... 202 10 2 Section 2, Dwellings Ac- Purchase of live and dead stock .. .. 433 5 7 count .. .. 269,609 16 11 Working-expenses of properties acquired by Buildings .. .. 201 16 9 ! power of sale .. .. .. .. 6,890 16 7 Miscellaneous advances .. 1,798 13 1 j Sundry estates .. .. .. .. 6,282 2 4 —— 834,461 17 0 Capital expenditure on farms Property Account — acquired by power of Freehold .. .. 28,718 17 1 sale— £ s. d. Leasehold .. .. 8,004 3 4 Property freehold .. 8,807 7 1 — 36,723 0 5 Property leasehold .. 1,936 16 4 Realization Account .. .. .. 33,000 16 5 — — 10,744 3 5 Sale of farm-produce .. .. .. 3,172 17 9 Realization Account—Expenses incidental to Sundry estates .. .. .. .. 7,271 1 7 acquisitions of properties .. .. 15,764 11 11 Sale of live and dead stock .. .. 5,948 5 4 Repayment of State Advances mortgages .. 457 3 7 Sale of plant .. .. .. .. 234 15 2 Sundry creditors—Accounts not cleared in Suspense Account .. .. .. 2,969 7 2 Treasury books in previous years .. 11,606 16 8 Fire Loss Suspense Account .. ... 24,005 3 4 Interest on debentures .. .. .. 162,721 0 0 Bills receivable .. .. .. .. 40 17 9 Interest on advances from Consolidated Fund 200,000 0 0 Sundry debtors (accounts not cleared in Stamp duty (transfers of consolidated stock).. 64 1 4 Treasury in previous years) .. .. 638 1 2 Management charges on stock .. .. 39 9 9 Interest on advances — £ s. d. Charges and expenses of raising loans .. 1,006 5 0 Current Account .. 126,704 12 6 Loans repaid .. .. .. .. 50,500 0 0 Section 2, Farms Account 250,720 11 5 | Vote " Expenses of manageSection 2, Dwellings Ac- j ment " —• count .. .. 304,849 17 3 j Supervision and manage- £ s. d. Miscellaneous .. .. 363 3 3 j ment of securities .. 39,785 0 0 — — 682,638 4 5 ; Expenses of Revaluation Interest on investments .. .. .. 6,074 17 10 j Board .. .. 1,368 6 3 Rent and grazing fees .. .. .. 15,416 17 11 j 41,153 6 3 Valuation fees .. .. .. .. 127 19 0 j Fire Loss Suspense Account .. .. 15,064 11 11 Production and transfer fees .. .. 657 4 0 Suspense Account .. . . .. 1,967 7 9 Sundries .. .. .. .. 302 17 4 | Valuation expenses .. .. .. 208 7 6 Printing and stationery .. .. .. 284 15 1 Travelling-expenses .. .. .. 511 14 7 Maintenance of plant .. .. .. 56 5 6 Working-expenses of tractor .. .. 587 19 3 Audit fees .. .. .. .. 500 0 0 Sundries .. .. .. .. 246 5 8 Balance, 31st March, 1927 —• £ s. d. Cash in Public Account .. 224,482 2 10 Imprest outstanding .. 7,404 4 8 Investment Account .. 467,383 13 3 699,270 0 9 £1,779,957 16 0 j £1,779,957 16 0 Revenue Account for the Year ended 31st March, 1927. Dr. £ s. d. Or. To Interest on debentures .. .. .. 332,071 010 By Interest on advances— £ s. d. £ s. d. Interest on advances from Consolidated Fund 540,000 0 0 Current .. .. 146,081 4 1 Charges and expenses of raising loans .. 11,006 5 0 Section 2, farms .. 332,179 12 8 Stamp duty on transfers of consolidated stock, Section 2, dwellings .. 331,722 11 5 &c. .. .. .. .. 64 I 4 Miscellaneous .. .. 1,215 2 8 Management charges of consolidated stock .. 39 9 9 811,198 10 10 Audit fees .. .. .. 500 0 0 Interest on surplus funds temporarily invested 7,875 8 0 Management expenses .. .. .. 39,791 14 0 Interest on purchase-price of stock, Mataikona Printing and stationery .. .. .. 388 10 3 Settlement .. .. .. 642 18 2 Incidental expenses in connection with pro- Rent from properties bought in by Crown .. 20,700 11 9 perties acquired by the Crown .. .. 5,001 9 10 Profit from sales of properties and stock .. 2,249 3 5 Maintenance of plant .. .. .. 56 5 6 Profit from sale of plant .. .. .. 44 7 7 Rebates of interest and rent .. .. 43,717 10 1 Transfer and production fees .. .. 658 6 6 Remissions of interest and rent .. .. 4,347 8 9 Valuation fees .. .. .. 105 9 6 Valuation expenses .. .. .. 207 8 6 Miscellaneous .. .. .. .. 786 8 5 Travelling-expenses of Inspectors of Securities, Net loss for year .. .. .. 407,689 3 1 &c. .. .. .. .. •• 507 18 9 Commission on sales of properties, &c. .. 407 0 5 Interest written off—Postponements under section 16, Discharged Soldiers Settlement Amendment Act, 1921 .. .. .. 699 2 1 Loss on realization of securities —Writings-off in Suspense .. .. .. •• 271,144 6 7 Depreciation Reserve—Plant, &c. .. .. 1,345 6 11 Reductions of mortgages under section 6(1), Deteriorated Lands Act, 1925 .. ■. 475 0 0 Remissions of interest and rent under section 6(1), Deteriorated Lands Act, 1925 .. 180 8 8 £1,251,950 7 3 £1,251,950 7 3 £ s. d. £ s. d. To Net loss for year brought down .. .. 407,689 3 1 By Balance—Net loss, 31st March, 1927 ..1,190,337 511 Loss forward from previous year .. .. 781,208 3 0 Adjustment on account previous years .. 1,439 19 10 £1,190,337 5 11 £1,190,337 5 11

4—C. 9.

20

C.—9

DISCHARGED SOLDIERS SETTLEMENT ACCOUNT— continued. Balance-sheet as at 31st March. 1927. Liabilities. Assets. Capital Account— £ s. d. £ s. d. Advances on mortgage— £ s. d. £ s. d. Securities issued .. 6,452,675 16 8 Current Account .. 2,801,151 14 2 Transferred from Con- Section 2, Farms Account 6,369,931 6 7 solidated Fund .. 13,500,000 0 0 Section 2, Dwellings AcSecurities redeemed from count .. .. 6,370,125 12 9 Consolidated Fund .. 13,350 0 0 — 15,541,208 13 6 Securities redeemed from Land leased under sections 4 and 5, Discharged Depreciation Fund Ac- Soldiers Settlement Amendment Act, 1921 .. 250,556 0 0 count .. .. 40,660 0 0 Unpaid purchase price, not yet payable, of 20,006,685 16 8 buildings on Crown properties .. .. 12,582 7 5 Consolidated Fund, for interest unpaid on Sundry advances merged with value of Crown amount transferred from Consolidated Fund 880,000 0 0 lands, &c., section 20 (3), Discharged Consolidated Fund, for interest paid on de- Soldiers Settlement Amendment Act, 1923 35,737 9 1 bentures, &c. .. .. .. .. 160,010 12 6 Property Account —Properties acquired by Consolidated Fund, for interest paid on Crown — £ s. d. redemptions from Consolidated Fund .. 496 2 1 Freehold .. .. 549,421 6 9 Interest on loans accrued to 31st March, 1927, Leasehold .. .. 264,803 7 8 but not payable on that date .. .. 103,630 11 7 814,224 14 5 Sundry creditors, for interest unpaid on Realization Account— debentures .. .. .. .. 1,932 10 0 Properties in course of Sundry creditors —Payments in advance .. 3,267 4 7 realization . . .. 444,244 8 4 Land for Settlements Account—Accrued in- Live stock on hand .. 18,580 5 6 terest on purchase-money, Mataikona Dead stock on hand .. 2,423 3 2 Estate .. .. .. .. 24,060 9 9 465,247 17 0 Sundry creditors for — £ s. d. Sundry estates—Live and dead stock .. 25,673 12 11 Miscellaneous services .. 7,683 10 8 Machinery and plant .. .. .. 5,584 17 11 Advances from State Ad- Office requisites .. .. .. .. 1577 vances Office on pro- Dominion Revaluation Board—Current Adperties acquired by vances Suspense, section 3 (3) (6), Discharged Crown .. .. 9,097 210 Soldiers Settlement Amendment Act, 1924 . 12,250 15 4 16,780 13 6 Postponements— £ s. d. Suspense Account (receipts not allocated) .. 1,397 15 8 Principal instalments .. 45,725 13 6 Realization Suspense .. .. .. 543 10 2 Interest .. .. 137,588 18 8 Writings-off in Suspense .. .. .. 216,121 19 3 Rent.. .. .. 869 8 11 Fire Loss Suspense Account .. .. 8,312 17 7 184,184 1 1 Rents charged in advance .. .. 3,046 6 0 Interest on advances accrued but not due .. 123,639 18 6 Interest charged in advance .. .. 67 0 0 Interest accrued but not due on surplus funds Depreciation Reserve Account .. .» 3,222 17 7 temporarily invested .. .. .. 3,757 5 8 Reserve Account .. .. .. 56,101 17 1 Sundry debtors for principal instalments— £ s. d. Section 2, Farms Account 60,259 14 1 Section 2, Dwellings Account .. .. 26,732 6 9 „ Buildings on properties.. 269 2 0 Merged interests under section 20 (3), Discharged Soldiers Settlement Amendment Act, 1923 .. .. 360 11 3 87,621 14 1 Sundry debtors for interest — Current Account .. 100,708 16 7 Secti on 2, Farms Account 135,893 16 7 Section 2, Dwellings Account .. .. 19,302 3 1 Buildings on properties.. 242 0 10 Merged interests under section 20 (3), Discharged Soldiers Settlement Amendment Act, 1923 .. .. 1,507 14 1 Miscellaneous advances.. 23 13 9 257,678 4 11 Sundry debtors for— Rent of properties .. 10,118 4 4 Sales of stock, implements, &c. .. .. 374 1 7 Working - expenses of tractor .. .. 973 9 2 Miscellaneous advances (insurance, rates, &c.) 919 9 5 Amounts owing by other accounts under section 20 (4), Discharged Soldiers Settlement Amendment Act, 1923 28,719 8 4 Miscellaneous (amounts being recovered from other Departments, &c.) 2,259 7 5 : 43,364 0 3 Carried forward.. .. .. £21,485,678 4 0 Carried forward .. .. .. £17,863,326 19 8

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0.—9

DISCHARGED SOLDIERS SETTLEMENT ACCOUNT —continued. Balance-sheet as at 31st March, 1927 —continued. L labilities—continued. Assets —continued. £ s. d. £ s. d. Brought forward .. .. 21,485,678 4 0 Brought forward .. .. 17,863,326 19 8 Charges and expenses raising loans .. 145,000 0 0 Losses in Suspense Account .. .. 216,121 19 3 Revaluation Board determinations — Reductions inmortgagc £ s. d. value .. .. 913,553 2 0 Interest written off .. 220,101 4 7 Remission of interest .. 161,292 8 0 Rents written off .. 199 3 4 Revaluation Committee expenses . . .. 29,633 8 5 Revaluation Board expenses .. .. 10,640 15 0 1,335,420 1 4 Revenue Account—Net loss, 31st March, 1927 1,190,337 511 Investments in Public Debt Redemption Account at 31st March, 1927 .. .. 36,201 17 1 Cash in Public Account, £ s. d. 31st March, 1927 .. 224,482 2 10 1 mprests outstanding .. 7,404 4 8 Investment Account .. 467,383 13 3 — 699,270 0 9 £21,485,678 4 0 £21,485,678 4 0 J. B. Thompson, Under-Secretary for Lands. J. H. O'Donnell, Controller of Accounts. I hereby certify that the Statement of Receipts and Payments, Revenue Account, and Balance-sheet have been duly examined and compared with the relative books and documents submitted for audit, and correctly state the position as disclosed thereby. The following comments are appended : (1) The accounts have been compiled from unaudited journal entries of the various Land Boards pending the completion of the local examinations by the Audit Inspectors. (2) The only assets verified are cash in Public Account, Imprests outstanding, and liabilities for loans and accrued interest thereon. (3) The accounts do not include a charge for any portion of Government subsidy to Superannuation Funds. (4) The interest charged in the account on the loans from Consolidated Fund (£13,500,000) is subject to adjustment when the necessary legislation is obtained to authorize the amount of certain losses to be written off.—G. F. C. Campbell, Controller and Auditor-General. LAND FOR SETTLEMENTS ACCOUNT (DISCHARGED SOLDIERS SETTLEMENT ACCOUNT). Receipts and Payments Account for the Year ended 31st March, 1927. Receipts. \ Payments. £ s. d To Balance at Ist April, 1926— £ s. d. £ s. d. j By Acquirement of estates .. .. .. 603 11 11 Cash in Public Account .. 20,414 14 8 I Administration expenses ... .. .. 1,710 13 3 Imprests outstanding .. ' 858 710 j Expenditure under section 20 (4), Discharged Investment Account .. 50,000 0 0 j Soldiers Settlement Amendment Act, 1923, — 71,273 2 6 j in respect of amount added to capital value 54 0 0 Receipts—- Land for settlement of discharged soldiers— Rents, &c. .. .. .. .. 71,835 12 6 ! Vote " Expenses" .. .. .. 2,658 1 I Sales.. .. .. .. .. 3,566 18 3 : Mount Pisa Estate .. .. .. 168 4 3 Interest on sales .. .. .. 431 1 11 Road access, &c., to settlements .. .. 5,468 9 1 Miscellaneous .. .. .. .. 238 01 j Refunds of revenue . . . . .. 573 7 9 Section 49 (2), (3), Land for Settlements Act, ] Public Revenues Act, 1926, section 40— 1925 —Amount received in respect of | Temporary transfers to other accounts .. 20,000 0 0 settlement land converted into national- i Balance at 31st March,l927 — £ s. d. endowment land .. .. .. 54 0 0 Cash in Public Account .. 23,273 11 6 Mount Pisa Estate .. .. .. 225 17 4 | Investment Account .. 95,000 0 0 Interest on securities and investments .. 1,885 6 3 — 118,273 11 6 £149,509 18 10 | £149,509 18 10 Revenue Account for the Year ended 31st March, 1927. Dr. £ s. d. Gr. £ s. d. To Administration expenses .. .. .. 1,759 4 8 By Accrued rents, &c. .. .. .. 85,428 9 2 Improvements to settlements (Vote Ex- Interest on sales.. .. .. .. 86 12 6 penses) .. .. .. .. 2,621 3 1 Interest on investments .. .. .. 2,894 4 4 Interest on loans .. .. .. 132,043 5 9 Balance carried down .. .. .. 64,261 1 7 Irrecoverable rents . . .. .. 5,597 I 1 Loss on working of estates .. . . 183 16 6 Losses under Deteriorated Lands Act, 1925— £ s. d. Reduction in value of land 1,988 11 2 Rents written off .. 226 15 6 2,215 6 8 Miscellaneous expenses .. .. .. 65 4 0 Rebates .. .. .. .. 4,648 19 8 Remissions of rents, &e. .. .. .. 3,536 6 2 £152,670 7 7 j £152,670 7 7 £ s. d. ; £ s. d. To Balance brought down .. .. .. 64,261 1 7 By Balance carried forward .. .". .. 289,351 17 1 Balance from previous years .. .. 225,090 15 6 £289,351 17 1 £289,351 17 I

C.—9,

LAND FOR SETTLEMENTS ACCOUNT (DISCHARGED SOLDIERS SETTLEMENT ACCOUNT) —continued. Balance-sheet as at 31st March, 1927. Liabilities. Assets. Capital Account — £ s. d. £ s. d. Estates— £ s. d. £ s. d. Debenture issue .. 3,222,050 0 0 Leased.. .. .. 1,7.10,827 1 9 Crown lands in estates .. 5,441 0 0 Unleased .. .. 270,511 0 6 — — 3,227,491 0 0 1,981,338 2 3 Sundry creditors— Unpaid purchase-price (not yet payable)— Interest due on loans — Land .. .. .. .. .. 9,229 6 2 Consolidated Fund .. 466,229 7 6 Buildings .. .. .. .. 75,637 19 8 Due and unpaid .. 357 9 4 Mount Pisa Estate —Chattels, machinery, &c... 287 2 0 —— 466,586 16 10 Sundry debtors — £ s. d. Interest accrued but not due on loans .. 11,067 19 7 Rents, &c. .. .. 39,155 15 4 ■ Miscellaneous .. .. .. .. 5,692 11 10 Less reserve for irreco verPayments in advance — able rents .. . . 1,500 0 0 Rents .. .. .. .. .. 886 0 9 37,655 15 4 Principal instalments on buildings .. 108 12 8 j Principal instalments on buildings .. .. 1,953 14 5 Principal instalments on sales of land .. 387 3 0 j Principal instalments on sales of lands .. 169 18 0 Amounts charged in advance — I Interest on sales of land .. .. .. 139 4 6 Rents .. .. .. .. .. 20,372 13 2 Interest on purchase-price, Mataikona Estate .. 24,060 9 9 Interest .. .. .. .. 70 0 0 Interest on investments .. .. .. 659 11 10 Reserve .. .. .. .. .. 27,175 1 8 Miscellaneous .. .. .. .. 236 18 2 Reserve for unexpended loading for roads, &c... 90,522 0 0 Bills receivable—Glencoe Settlement Drains Writings-off in Suspense Account .. .. 8,851 8 5 | Account .. .. .. .. 470 0 0 Postponements outstanding— Rent .. .. .. .. .. 46,593 10 1 Principal instalments on buildings.. .. 1,060 12 9 I nterest on sales.. .. .. .. 129 2 10 Buildings Suspense .. .. .. 550 0 0 j Sundry debtors outstanding (amounts accrued but not due) — Interest on sales of land .. .. .. 118 I 8 Interest on investments .. .. .. 417 2 5 | Losses in Suspense Account .. .. 8,851 8 5 Depreciation in land-values, &c. .. .. 115,362 14 11 I Revaluation Board determinations, &c. — £ s. d. j Reduction in value of land 889,687 4 1 Reductions in value of buildings .. .. 11,901 17 10 Rents written off .. 134,535 9 1 Remissions .. .. 57,393 10 8 Revaluation Committee expenses .. .. 5,972 0 10 1,099,490 2 6 Revenue Account .. .. .. .. 289,351 17 1 Investment Account— Tcmporaiy transfer in terms of Public Revenues Act, 1926, section 40 .. .. 20,000 0 0 Cash in Public Debt Redemption Fund .. 27,175 1 8 £ s. d. Cash in Public Account .. 23,273 11 6 i Investments Account .. 95,000 0 0 118,273 11 6 £3,859,211 7 11 £3,859,211 7 11 J. B. Thompson, Under-Secretary for Lands. J. H. O'Donnell, Controller of Accounts. 1 hereby certify that the Revenue Account and Balance-sheet have been duly examined and compared with the relative books and accounts submitted for audit, and found to agree. The following comments are appended : (1) The accounts have been compiled from unaudited journal entries of the various Land Boards pending the completion of the local examination by the Audit Inspectors. (2) The accounts do not include a charge for any portion of the Government subsidy to the Superannuation Fund. —G. F. C. Campbell, Controller and Auditor-General.

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