C.—9

16

Since the revaluation of soldiers' holdings the soldier settlers generally have become more settled and are taking a good lively interest in bettering their position by close attention to good farming. The recent investigation of Current Accounts may be regarded as very satisfactory, showing in most cases that the advances on stock and chattels have been well secured. The position of soldier settlers in this district can be regarded as sound as a whole. There are still individual cases where either the holding is too small or the land, even with the best of farming, is of such quality that a reasonable living cannot be made off it. In these cases the settler is encouraged to endeavour to effect a transfer or sale to an adjoining owner. Cases also occur where the soldier settler has not had the incentive or required energy to make a success of his holding ; but these cases are now becoming the exception to the rule and can only be taken as the usual risk incurred by all mortgagees. The records here show that very few farms which have come back on to the Department's hands in this district have not been reselected, and in this respect I do not suffer any concern at not being able to pass on any reasonably priced farms which are bound to occasionally revert back. These farms when put on the market offer an inducement on account of the easy terms offered, equal to land acquired under the Land for Settlements Act, and which usually require a large initial outlay in buildings, fencing, &c. A large amount of money has still to be expended and will require to be advanced for improving holdings and bringing them up to their full carrying-capacity. It is very marked that soldier settlers, having now received the benefit of revaluation, are not anxious to load up their farms, and governed by this spirit the necessary advances now made can be viewed as good investments. In all settlements bought under the Land for Settlements Act and set apart for soldier settlement good progress is reported, and these settlements can now be considered as on a firm footing.