G.—i

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Marlborough. (J. Stevenson, Commissioner of Crown Lands.) A small area of dairying-land near Kaikoura was acquired and opened to the public during the year. The successful applicants, except perhaps in one instance, are a good type of settler and have made sound progress in spite of the fact that they were handicapped to some extent through the land being put on the market somewhat late in the winter. The other existing settlements are now well established, and most of the settlers are 011 a sound footing and doing well. While there are undoubtedly some large estates in Marlborough suitable for closer settlement I am of the opinion that none would make successful settlements at anything like the prices asked. Westland. (W. T. Morpeth, Commissioner of Crown Lands.) The only settlements in this district are Kokatahi and Poerua, both of which have been very successful. No estates were acquired during the year. Canterbury. (W. Stewart, Commissioner of Crown Lands.) No new estates were acquired during the year. The older settlements are now well established, and the tenants have, with few exceptions, quite considerable goodwills (above their improvements) in their leases. Two exceptions are Finlay Downs and Teschemaker Settlements, which were settled in 1914. These were recently before the Land Board, who recommended that certain rental concessions be granted. Although several properties were offered to the Government during the year and inspected, none were found suitable, some being too dear and others not suitable for subdivision. Otago. (R. S. Galbraith, Commissioner of Crown Lands.) Altogether there are sixty-four settlements in Otago, some of which are of very long standing. These were purchased by the Crown at very low prices compared with present-day valuations. All the original settlers and their successors in title who bought in at reasonable prices have done well or should have done well. The Land Board refused two applications to transfer holdings on such settlements during the year on the ground of excessive consideration-money. The more recently acquired settlements have been taken up principally by discharged soldiers. In my report of last year I drew attention to the fact that successful settlement was made very difficult in many cases by the too-close c'utting-up of estates —i.e., by the holdings being made too small in area. Such cases arc gradually being adjusted by amalgamation through judicious transfers which have been encouraged by the Land Board. One or two of the least-successful settlements still need adjustment in this respect, but owing to the improvements effected in the way of buildings and to the lack of financial resources such adjustment is necessarily slow and difficult. No new estates in Otargo have been purchased during the year. Southland. (N. C. Kensington, Commissioner of Crown Lands.) During the past year no new lands have been purchased for opening up under the conditions of the Land for Settlements Act. The demand for improved lands has been generally met by the farms for disposal which have been purchased under the Discharged Soldiers Settlement Act and which from time to time come back 011 the Department's hands. The settlers 011 several settlements have found it difficult to carry on since the slump years, and, representation having been made, special legislation was passed giving power for a revaluation to be effected. The settlements granted this privilege were Knowsley Park, Waiarikiki, and Beaumont. 111 most cases the settlers received substantial reductions on the capital value. Settlers on some of the older settlements are also finding it diffcult to meet their obligations ; this principally does not refer to the original selectors, but to those who have obtained the holdings by transfer. In this respect heavy consideration-money has been paid, with the result that with the heavy cost of labour and material, the necessary heavy liming, and manuring (which was not a requirement when the virgin land was first broken up) have put these settlers in a position that only by careful farming are they able to carry on. In several of the settlements bought where the land is light difficulty has been experienced in getting English grasses to hold for any length of time. The heavy frosts to which most of this land is subject is probably the primary cause, and instead of constant resowing grasses which give no promise of becoming permanent it would seem more advisable to try harder grasses, which, even if not giving the carrying-capacity, would save the constant annual expense of laying down routine pastures with English grasses. On the older settlements where difficulty has been experienced in laying down a good permanent pasture with English grasses it has become apparent that close subdivision of this class of land is unsound, as the loading of buildings, cost of subdivision, and incidental expenses added to the market price makes it impossible for the settler to meet his obligations ; and only land of exceptional quality, handy of access, and which by intense farming is capable of a production to meet the additional charges can reasonably be considered for close subdivision.