C.—l.

SOUTHLAND. The following table will show the transactions of the past year and the position generally of revenue and settlement in this district:—

Revenue.—The revenue reached a total of £22,853, the highest for a great many years past. The estimate of gross revenue was £16,740, so that it was increased by over £6,000. Last year the total revenue was £20,894, and this was considered to be large. The increase of nearly £2,000 is therefore all the more remarkable. The items which show the largest increases are cash lands and perpetual-lease purchases. An approximate estimate of revenue from these sources must necessarily be a matter of conjecture. Other sources show slight increases and decreases. Land open for Selection. —Under this heading the land open for selection is practically of the same area as last year. The selections made during the past year were chiefly reselections of forfeited land. The blocks which have been long open for selection are the poorest of the district, and are taken up for lack of better. Reduced values and scarcity of land will, however, gradually cause these older blocks to be selected. Cash Lands. —The transactions for cash form a feature in this year's work, the substantial sum of £2,632 from fifty-two applicants having been received. Several applicants whose leasehold interests had been forfeited or surrendered for non-fulfilment of the conditions, in their desire to obtain freehold, raised the necessary funds from the Government Advances to Settlers Office or some local institution, and on reselection made freeholds of their allotments. It appears to me that the Government under the leasehold systems was the most satisfactory landlord. Applicants, however, preferred to utilise portions of their savings in this way, and borrow a small amount to make freehold. The mere payment of a portion of the amount seemed to give them a greater interest in their selections. Deferred-payment Lands. —It will be seen that the settlers under this system are decreasing somewhat rapidly now. Last year the number shown was 122, against 98 holdings remaining this year, the completed purchases reducing the area held from 23,678 to 18,978 acres. Reference was made in my last annual report to these settlers, the bulk of whom have been in occupation fourteen years. Perpetual Lease. —The number of tenants on the books of the department has decreased from 302 to 286 during the year, owing to settlers making their leaseholds into freeholds. The opportunity for carrying this into effect will, with a number, shortly expire. Many lessees were unaware they would be deprived of the privilege after the lapse of twelve years, and consequently made no preparation for it. During the year I sent circulars to all perpetual lessees pointing out the

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System. Number of Selectors. Area. Gash paid during the Year. Arrears of Rents. Number of Tenants on Books. Area held by such Tenants. Cash — Town and suburban ... Rural Perpetual lease made freehold Occupation with right of purchase Lease in perpetuity Leases under " Mining Districts Land Occupation Act, 1894 " Deferred payment Perpetual lease Small grazing-runs Pastoral runs... Miscellaneous Improved farms Timber and State forests Other sources... Total Crown Endowments ... Total ... Land for settlements — Lease in perpetuity ... Miscellaneous Grand total 42 10 11 44 99 15 i 6 27 10 A. R. P. 84 3 7 2,441 3 15 2,601 1 16 18,152 3 7 34,956 2 21 334 0 9 4,904" 3 39 40,813 0 0 7,658 2 11 1,147 1 1 £ s. d. 724 4 11 1,907 17 0 1.786 12 11 851 3 0 1,795 6 6 22 8 4 1.787 1 11 1,542 2 11 840 15 2 3,920 5 8 718 6 6 2,896" 9 5 503 11 3 £ s. d. 50 8 3 123 19 2 12 011 59 16 2 133 7 6 12 0 0 153 427 33 123 286 20 91 264 49 A. B. P. 32,987 2 30 70,609 0 14 1,622 2 15 19,461 1 23 24,122 2 27 61,825 1 12 1,283,188 0 0 38,502 0 33 5,238 1 18 265 113,095 1 6 19,296 5 6 1,844- 17 9 391 12 0 1,446 80 1,537,557 1 12 52,641 2 5 265 5 1 113,095 1 6 1,063 3 21 1,292 2 1 21,141 3 3 1,648 1 10 64 6 1 391 12 0 312 12 5 1,526 56 3 1,590,198 3 17 15,174 0 19 1,317 2 10 271 115,451 2 28 22,853 11 2 704 4 5 1,585 1,606,690 2 6