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About 74,000 acres will be in a state to offer for selection during the coming season. Already 16,436 acres have been surveyed into sections, and 12,000 acres are to be opened as unsurveyed land. The balance is to be made up of the Bawhitiroa Block, 35,300 acres, which will be offered in very large areas, as the country is extremely rough and difficult of access ; also a small block, about 3,000 acres, at the back of Midhirst, and the Ngaire Block, of 7,500 acres. The demands for land in this district are usually for small sections of 100 to 200 acres and upwards; the bulk of our remaining Crown lands are, however, unsuitable for subdivision into such small areas. John Steauohon, Commissioner of Crown Lands.

HAWKE'S BAY. There have been seventy-four selectors this year, who have taken up 24,355 acres under various tenures —lease in perpetuity taking the lead with 9,128 acres, and occupation with right of purchase next in order with 8,312 acres. In 1892-93 there were 49,831 acres selected by ninety persons, so that the average size of holdings this year is considerably less than last, being 329 acres as against 553 acres. The number of Crown tenants on the books is 665, in occupation of 474,233 acres, rather more than one-third of which, viz., 270, hold on perpetual lease, 156 on deferred payment, 27 on occupation with right of purchase, 100 on lease in perpetuity, the remainder being under other tenures. Gash Sales. —There have been twenty-one, and only throe of these for rural lands. The conditional cash purchase of " The Land Act, 1892," does not appear to have found favour here. Perpetual leases made freehold during the year were thirty-one in number, with a total of 14,855 acres, the amount realised being £12,406. Perpetual Leases. —The holdings have this year been reduced in number from 303 to 254, through freeholds being acquired, exchanges to lease in perpetuity, and forfeitures. Ten lessees have taken advantage of the opportunity afforded by the new Act of changing the tenure to lease in perpetuity, thereby getting their rent reduced by one-fifth, but surrendering the right they held to acquire the freehold of the land. Lease in Perpetuity. —This system of selection is gaining ground in this district, as there have been nineteen this year as against eighteen under occupation with right of purchase. It will be seen from the returns that the revenue received this year from these two sources is not more than about one-fifth of the annual rental of the land, which might, without explanation, be taken to be due to arrears, which is not the case, there being only three selectors in arrear, to the amount of £20 19s. The reason is that nearly the whole has been selected as unsurveyed land, and the survey fees paid by the selector are by law credited to them as rent, and the nine cases where tenure has been changed are getting the benefit of the reduction on the rent that has been paid as perpetual-lease lands. These credits will before long be worked off, and the full rent become payable. Village-settlement Lands. —There are only thirty-two holdings on deferred payment, and seven on perpetual lease, and at the rate the freeholds are being acquired holdings under these tenures will soon become things of the past. No village-settlement lands have been disposed of this year on occupation with right of purchase, but there have been ten selections under lease in perpetuity. Village Homestead Special Settlements. —No fresh selections have been made, and there having been no forfeitures or surrenders the numbers remain as last year—viz., thirty-one, with an average of acres. The two settlements continue prosperous, the total advances made to settlers being £876 15s. 9d., and the value of improvements effected by them £5,405. Special-settlement Associations. —The two old settlements of Waipawa and Danevirke, selected in 1886, have been an unqualified success, and the locality is well settled, with a butter-factory in full operation. Thirty-five of the original fifty-eight deferred-payment holdings have been made freehold, but there has been no tendency to the aggregation of larger areas, so often the case. The Liberal Association, with fourteen members, took up 4,800 acres last year on lease in perpetuity, but about half the members were residents of Napier, in mercantile houses and other settled occupations, and seven of the selections have been surrendered or forfeited. These sections will shortly be thrown open for selection on the optional system, and it is to be hoped will be taken up by bond fide settlers. The Euahine Association has selected 2,400 acres at the back of the Blackburn Settlement, and it is now in course of being surveyed. The members, twelve in number, are, as a rule, hard-working men residing in the adjacent district, and of a class likely to make the settlement a success. Small Grazing-runs. —Two selections have been made during the year, bringing up the number in occupation to forty-seven, with 122,994 acres. The land as a rule is good and the improvements extensive. The goodwill of these leases has greatly enhanced in value of late, on account of the means of communication having greatly improved since they were taken up, at which time they were much isolated, and the rents comparatively low. This is common to all pioneer settlements, but is especially marked in the case of these runs. There are none open for selection at the present time. Pastoral Licenses. —Those now held are twenty-two in number, comprising 161,845 acres, an average of about 7,356. During the year the term of one license has expired, part of which is now about to be thrown open for selection under the optional system in four sections, the balance being opened as a small grazing-run. Revenue. —The amount of cash received on account of sales and rents of Crown lands is £23,595 os. 2d., and scrip to the value of £701 12s. 3d. A further sum of £288 15s. Id. has been taken as rents of endowments. On the 31st March sixty-nine selectors were in arrear, with a total