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Bents and Arrears. —Taking into consideration the present state of the markets, and the consequent struggle that all classes of settlers have had, and are having, to hold their own, it appears to me a matter for congratulation that the rents have come in as well as they have done, and that the list of arrears is not greater than shown in the tables attached to this report. For the purpose of showing the state of the arrears in respect of Crown lands as at the 31st March in each year since the alteration of the land districts before referred to, I have had the subjoined statement prepared, which I venture to think will be found instructive and interesting. The drop shown in 1891 to £12,472 from £21,605 in 1890, and again in 1892 to £8,880, is no doubt significant of the effect of the Selectors' Lands Eevaluation Act before mentioned, while the gradual and slight increase since 1892 to the present time may be accounted for by the fact that the periods for which the revaluations placed many of the selectors in credit have expired, and that payments are again becoming due; also, by the increasing number of selectors on the books, and by the lower prices of produce before alluded to. But, although the amount of arrears is greater now than in 1892, when it was less than at any period during the seven years shown in the statement, it will be found that the average per selector in arrear is less, the respective amounts being, for 1892, £17 4s. lid., and, for 1895, £14 10s. sd. I may add that, out of 763 selectors in arrear on the 31st March last, only 101 were for more than the current half-year's rent, in the case of ordinary settlement due in advance on the Ist January, and in the case of small grazing-runs and pastoral licenses due in advance on the Ist March. The following is the statement to which reference has been made :—

Comparative Statement of Arrears of Rents in respect of Crown Lands as at 31st March in each Year since the Alteration of the Land District; also, Number of Holdings of all Kinds on the Books of the Office.

Progress of Settlement. —Notwithstanding the many drawbacks with which settlement has had to contend, the returns for the year, though they, for reasons already given, show a small diminution as compared with those of the immediately-preceding year, are sufficiently convincing of steady growth ; and, all things considered, the year's operations must be regarded as not altogether unsatisfactory. It will be seen from the attached comparative table of Crown lands taken up on settlement conditions during the seven years ended the 31st March last that the average per holding for 1894-95, exclusive of small grazing-runs, was only 137 acres, and, even with small grazingruns, only 382 acres, which, considering the classes of land dealt with, cannot be looked upon otherwise than with gratification. Assuming, however, a better state of things as regards prices of produce, and, as a natural consequence, a greater demand for farm lands, there can be no doubt that, as far as this district is concerned, the supply of good land in the hands of the Crown to meet that demand is becoming very limited, what is now available being more or less of a broken and rugged nature, of high altitudes, and suitable mainly for pastoral purposes. Herein comes the necessity for the acquisition of suitable land for small settlement under the Land for Settlements Act.

Comparative Table showing Crown Lands taken up on Settlement Conditions during the Seven Years since the Alteration of the Land District (exclusive of Cash Lands).

Note. —This Return does not include the lands provisionally allotted during the last two years under the improved-farm-settlement scheme.

Years. No. in Arrear. Area in Acres. Amount of Arrears. Holdings on Books. 31st March, 1889 1890 1891 1892 1893 1894 1895 850 1,009 764 519 675 675 763 454,732 505,275 763,116 392,610 442,116 609,926 806,317 £ s. 20,145 12 21,605 19 12,472 12 8,880 12 9,115 4 9,143 1 11,082 2 d. 1 6 6 2 9 2 3 1,864 1,987 2,006 2,170 2,196 2,239 2,503

Witho it Small Grazin; ;-runs. Includ: ing Small Grazi: ig-runs. Years. No. Area. Average per Holding. No. Area. Average per Holding. 1888-89 1889-90 1890-91 1891-92 1892-93 1893-94 1894-95 291 182 136 266 108 210 173 Acres. 38,947 34,297 28,498 57,692 19,035 41,173 23,795 Acres. 134 188 209 219 176 196 137 334 192 143 305 128 288 201 Acres. 137,518 50,978 43,215 136,813 85,500 158,099 76,915 Acres. 411 265 302 448 668 548 382 Totals 1,366 243,437 178 1,591 689,038 433