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consist of seven on the West Coast and three in the Otago-Southland area. The continuance of gold-production from dredging at the level of the 1949 output seems reasonably assured for some years as most dredges have relatively long lives, which have been prolonged in some cases by the acquisition of adjoining areas. Prospecting for new ventures has been at a standstill for some years, and the field is now limited after the comprehensive boring programmes of the " thirties," and accordingly it is difficult to see any very great expansion of dredging activity. Production from alluvial mines dropped to an all-time low figure, and it appears inevitable that it must progressively diminish. Despite the decline in production of recent years, gold-mining still plays an important part in the economy of New Zealand in providing a modicum of foreign exchange. It is accordingly a matter of some concern that in particular the dredging industry has been subjected to such continuous and hostile criticism, and it is apparent that many objectors would be satisfied with nothing less than its extinction. It is true that, particularly in the early years, some land of fair productive capacity was destroyed by mining operations, but even so it is questionable, in view of the great contribution that gold-mining has made to the early economic development of New Zealand, whether there was not a fair measure of justification for the policy adopted at the time. There is no doubt that the land despoiled by mining is a mere fraction of the total area destroyed directly and indirectly by other pursuits, and there is need for balanced judgment in dealing with the matter. However, be that as it may, there is no justification now for the destruction of land that has potential value for farming activity, and it has been the concern of the Mines Department these many years to ensure that this does not occur. The policy which was clearly stated in the Mines Statement for the year 1941 has been rigidly maintained, and since that date no significant area of land of agricultural value has been taken up for dredging purposes. It has been, of course, impossible to make this policy retrospective. Among other things, it would involve interference with existing title rights and would certainly lead to substantial compensation claims against the Government. Again, the jurisdiction of the Mines Department extends only to land where the mineral rights are reserved to the Crown. In the case of land owned in fee-simple without mineral reservation, the Mines Department has no jurisdiction and the owner or operating company is at liberty to carry out dredging operations without reference to the Department, other than comply with the safety provisiors of the Mining Act and the regulations thereunder. During 1949, 232,599 oz. of silver, valued at £54,587, were produced, as compared with 232,563 oz., valued at £53,587, in 1948. Practically the whole of this amount was obtained from the Martha Mine. The following table shows the production of the principal quartz-mines, dredges, and alluvial mines for the year ended 31st December, 1949. It will be noted that two quartz-mines and seven of the larger dredges were responsible for over 91 per cent, of the total production of gold.

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— Ore, in Tons. Development, in Feet. Men | Employed. Gold 1 (Ounces). Silver (Ounces). fiflT.Z.). Quartz-mines Martha Blackwater Callery Party, Macrae's Flat .. Sundry 81,388 22,115 380 3,502 445 394 118 3 16 26,604 9,541 106 181 232,449 i50 307,181 92,006 921 1,687 Totals I 531 | i 36,432 232,599 401,795