CROWN LANDS DEPARTMENT (REPORT UPON THE) FOR THE YEAR ENDED 31st MARCH, 1886.

Appendix to the Journals of the House of Representatives, 1886 Session I, C-01

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1886. NEW ZEALAND.

CROWN LANDS DEPARTMENT (REPORT UPON THE) FOR THE YEAR ENDED 31st MARCH, 1886.

Presented to both Houses of the General Assembly by Command of His Excellency.

The Secretary for Crown Lands to the Hon. the Minister of Lands. Sir, — General Crown Lands Office, Wellington, 25th June, 1886. I have the honour to forward the annual report and returns of the Crown Lands Department for the twelve months ended 31st March, 1886. I have, &c., James McKerrow, The Hon. John Ballance, Minister of Lands. Secretary for Crown Lands.

REPORT. Before dealing with the actual land transactions for the twelve months ended the 31st March; 1886, it is fit that allusion should be made to the passing of " The Land Act, 1885/' which consolidated into one statute twenty-six previously-existing Acts bearing on land administration. By the amendments relating to small grazing-runs and other modifications in respect of the occupation of Crown lands on settlement-conditions, the facilities for acquiring land on more advantageous terms than before have been very considerably increased, while the law has generally been brought well up to the existing requirements of the colony. As the Act only came into operation on the 22nd September last, no very great experience has yet been obtained of its working, but so far it seems to answer well. In the small grazing-runs a system has been inaugurated that is likely to be very successful in settling the hilly and back country, which is generally too rough for agriculture, and yet very suitable for mixed farming by a thrifty class, who, by clearing and surface-sowing, by subdivision, by the use of the hillside plough, and by planting, can greatly increase the carrying-capacity of their runs, the area of which must not exceed five thousand acres. With the view of making known the provisions of the Land Act it was published in pamphlet form, with an explanatory preface, in November last, and an issue of three thousand copies distributed in the colony and in the Home-country. The seventh number of the Crown Lands Guide was also issued in February of this year, and freely distributed. Coming to the actual transactions for the year, it is satisfactory to observe that, notwithstanding the continued low prices for agricultural and pastoral produce, there has been a greater area of Crown lands disposed of during the twelve months ended the 31st March, 1886, than during the previous year. The increase has been mainly on land taken up on settlement-conditions, and in this class the number of settlers is greater than last year or the average number of former years. The revenue from cash land sales has been steadily decreasing for several years, and it is matter for surprise that it has not diminished even to a greater degree than it has done, seeing that tacitly it has become the practice to dispose of the best land on settlement-conditions, selling for cash only inferior land or odd pieces to complete freehold properties. The following abstract of the tables in the Appendix gives, under a few headings, the principal dealings with the Crown lands for the- year : — I—C. 1.

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Lands sold on immediate payments — A. b. p. Purchases. Scrip. Cash received. Town ... ... 58 229 116] £ s. d. £ s. d. Village small farm , ... 294 317 78 Xl/) c n Kr7 o ™ -, Q •Suburban ... ... 532 3 6 85 f SM b ° bl' Alb 1 6 Eural ... ... 64,383 3 32 569) Lands sold on deferred payments— Acres. Selectors. Eural ... ... 58,451 581") Instalments from these and Four special settlements ... 16,820 1581 from former selections still Village settlements ... 527 69j current ... ... 79,523 12 8 Agricultural leases on goldfields — 4,491 acres, leased to 28 selectors—rents from these and former selections current from former years ... ... ... ... 2,369 12 4 Perpetual leases— 28,166 acres, leased to 138 selectors—rents received from these and from selections of former years ... ... ... ... 3,120 4 5 Homestead— 5,830 acres, selected by 35 persons ... ... ... ... Nil. Pastoral rents — From 11,092,714 acres, held in 1,246 leases ... ... ... 167,080 8 2 Miscellaneous— Coal and mineral leases, royalties, timber-licenses, &c, about ... 14,652 611 Total... ... ... ... ...£324,022 5 9 Reserves. For the twelve months ended the 31st March, 1886, 482 reserves, covering an aggregate area of 26,800 acres, were gazetted for the following public purposes : — A. E. P. 96 reserves for endowment of primary education ... ... 10,802 1 29 172 reserves for endowment of boroughs and town districts ... 702 0 2 64 reserves for recreation ... ... ... ... 1,140 331 24 reserves for forest ... ... ... ... 12,163 0 0 11 reserves for plantation ... ... ... ... 956 1 30 115 reserves for miscellaneous ... ... ... ... 1,035 1 4 Total ... ... ... ... 26,800 0 16 The education reserves were nearly all in the North Island, and made as required by sections 19 and 20 of " The Education Reserves Act, 1877." The borough and town district endowment reserves were made in terms of section 17 of " The Land Act, 1885." Under forest reserves there is, including what were gazetted in the three previous years, an aggregate area of 606,214 acres. As explained in former reports, much the greater part of this extensive area is on the mountains and hills and at the head-waters of streams, and was reserved for climatic purposes and the conservation of steep hill-sides. In the course of the current year very considerable areas of timber forest will be reserved, on the advice of the Chief Conservator of Forests, for the purpose of so regulating the cutting of trees that the natural and artificial restoration of the permanent State forests may not be hindered but promoted. The eleven plantation reserves are all on the open plains of Canterbury, making, with former reserves, a total area of 26,280 acres available for the planting of forest-trees in that provincial district. The 115 miscellaneous reserves comprise sites and areas for the various public purposes enumerated in section 227 of "The Land Act, 1885." Settlement Conditions. The disposal of the Crown lands on the systems of deferred-payment, perpetual-lease, special- and village-settlements is now developed to such an extent as to have become the principal work of the Land Department. During the year 1,009 selectors took up 115,257 acres, who, with the selectors of former years whose engagements are still current, make a total of about five thousand settlers in account with the department, and holding an area of over half a million acres on conditions of residence and the improvement of the soil. Under the West Coast Settlement Act (North Island), which is administered by the Public Trustee, seventy-three settlers took up, on thirty-year leases, 8,873 acres, at an average rental of 3s. Bd. per acre; so that, for the year, there is the grand total of 1,082 settlers and 124,130 acres. Up to the 31st March last there were on the West Coast Settlement Reserves

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227 lessees, holding 34,288 acres, on a rental of £6,696 Is. 6d., or an average of 3s. lid. per acre. The working of these systems is attended with a great deal of trouble and expense, but they have undoubtedly been the means of spreading the population over the face of the country to an extent which the system of settling the land on immediate payments and without any condition of improvement could never have effected. One drawback common to these systems of easy acquirement of land is, that they induce some persons to engage in farming before they have sufficient means or experience to successfully cope with the expense and difficulties inseparable from the first few years of establishing a farm. The settler's difficulties, both in the settlement and freehold systems, are frequently aggravated by his having so much more land than capital that his energies are often dissipated in the attempt to do too much, ending in total or partial failure. In the special settlements this evil is guarded by restricting the area for each settler within the limits of fifty to a hundred and fifty acres on deferred payment, and of one to two hundred acres on perpetual lease. There is the further advantage under the special settlements that the price of the land is fixed, and cannot be increased by competition, contested applications being decided by lot. Under this system four settlements have been recently established, two in the bush near Danevirke, and two in the Forty-mile Bush, on the Tiraumea River, comprising in all 16,820 acres among 158 settlers, or a little over 106 acres each. And there are now under survey in the Wellington, Hawke's Bay, and Auckland Land District ninety thousand acres for about eight hundred settlers. The greater part of these surveys are all but complete, and the allotment of sections should be made at an early date. Another provision acceptable in the special-settlement scheme to many persons is that of allowing the residence conditions to be fulfilled by registered substitute. This enables town residents to take up land and have it in preparation and improvement against the time when it will be convenient for them to remove to it. As a good deal of latitude has been allowed the various associations in selecting the best lands for special settlements, in addition to other encouragements, it will devolve on the department to see that all the residence and improvement conditions are faithfully fulfilled, and the country rendered productive, so that the settlement of the adjacent lands may not be hindered, but proceed in due course. The deferred-payment system has been, including the four special settlements just referred to, availed of during the year by 581 selectors, taking up 58,451 acres. The Land Act, by allowing capitalization of instalments after the first year, has conferred a great boon on deferred-payment settlers. During the year 345 settlers, holding 52,060 acres, capitalized £80,639 of deferred-payment instalments into a capital sum of £68,804, bearing interest at 5 per cent. This and the similar operations of former years materially diminishes the revenue for the time being. On the other hand, it is certain that but for capitalization many of the settlers would have had to succumb who, by this relief, will succeed in meeting their engagements. It is mair.ly due to this cause that the sum of the payments in arrear is less now than what it was twelve months ago, although the number of settlers is greater. An analysis of the arrears shows that they are by no means formidable : on the 31st March last 1,525 settlers were in arrear £32,130, or an average of £21 each; but, as the greater half were in arrear only one payment, and these payments are due six months in advance, it will be seen not to be a very serious matter. Perpetual Leases. During the year 138 settlers took up 28,166 acres, at a rental from Is. to 2s. 9d. per acre. In all, including former years,, there are now 328 settlers, holding 81,934 acres on perpetual lease. This system is gradually coming into favour as it becomes known, but the preference with the majority of settlers is still in favour of the deferred-payment system. Village and Small-farm Settlements. Sixty-nine settlers have during the year occupied 527 acres, or an average of seven acres and a half each, on conditions of residence and improvement; and seventy-eight settlers have bought for cash 295 acres, in sections varying from a quarter of an acre to thirty acres, the only restriction in these cash-purchases being that no one is allowed to purchase more than one section. The establishment of village settlements throughout the districts of the colony is of the greatest importance in the interest of a very numerous class, who, dependent on daily labour for subsistence, have seasons of no work, when their savings disappear.

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In the village and small-farm settlements a man by securing five, ten, or twenty acres need never be a day idle, for when he is not employed outside in the district he has the most delightful of all work in working with his family at home in improving their own place. These village communities ought to become the nurseries of a thrifty, industrious population. With the object of further encouraging this class of settlement and checking the too-great tendency to congregate in towns a set of regulations has been issued giving assistance in the form of loans to build a dwelling and clear the ground, the land and money advanced being capitalized, and an annual rent of 5 per cent, payable on the whole. About 10,120 acres in 556 sections, situated in groups throughout the settled districts of the colony, are now partly and very shortly will be wholly open for application on this system, which seems to have met a real want, for in the Pahiatua Village Special Settlement, opened for application on the 18th instant, for fifty-eight sections of about 670 acres offered there were seventysix applications covering forty-two sections. In the contested applications the married men had the preference. The forty-two successful applicants have taken up 580 acres, or an average of fourteen acres, the holdings ranging from five to twenty acres each. The Pahiatua Village Settlement is on a piece of excellent bush soil in the midst of a progressive district and close on the main road-line, about nine miles south from Woodville. These advantages no doubt have given this system a very good start, but it is also worthy of note that in the Seaward Bush, about two miles from Invercargill, fourteen applicants have taken up ten acres each, although the land has only been open for a few days. It will be the object of the department to keep up a supply of land on this system throughout the various districts of the colony. Homestead System. Thirty-five settlers on this system of free land have taken up 5,830 acres in the Land District of Auckland. A block of 2,988 acres has been open for application for some months in Southland, but as yet none eligible as selectors have made application. The Land Act permits of three thousand acres in each land district every year being set aside on the homestead system. Effect is about to be given to this in the Otago and Hawke's Bay Districts, and, with what is now open in Auckland, Westland, and Southland, an area of about 50,000 acres will be open for selection. Small Grazing-runs. In the Land Act Amendment Act of 1884 provision was made for small grazing-runs,. but, owing to certain defects in the Act, nothing was done until these were remedied in the Act of 1885. The main principle of the system as it now stands is an absolute lease for twenty-one years, with right of renewal for another twenty-one years, of an area not exceeding five thousand acres, the other terms being residence, and the effecting of improvements equal in value to four annual rents of the run during the first six years of the lease. After that there is no condition save the payment of the rent half-yearly. The tenancy gives full power to the lessee over the soil for crop or grazing as he may wish. At the end of the first term of twenty-one years two valuations are made, one of the land and one of the improvements, by two valuers, one selected by the tenant and one by the Government. The tenant has the offer of the run for the second twenty-one years at the rent of 2\ per cent, on the value of the land fixed by the valuers. Should he elect to retire from the run, the lease will then be offered for sale by public auction, burdened with the full valuation of improvements, which the incoming tenant must pay to the outgoing before being let into possession. In January last, the first land on this system was offered, when 65,250 acres, in runs in the Nenthorn and Strath-taieri Districts, Otago, were offered, when twenty-four runs, comprising 55,739 acres, were leased at Bjd. per acre, the upset price being 6d. Since then, more country has been offered on this system, not only in Otago, but in the Wellington and Hawke's Bay Districts, with the result for the colony of sixty-two small grazing-runs, covering 104,172 acres, being held on an aggregate rental of .£3,522 18s. lid., as follows : — No. of Total Total Annual Average Rent Runs. Area. Rent. per Acre. Hawke's Bay ... ... 6 ... 8,871 .-.. £147 7 3 ... 4d. Wellington ... ... 14 ... 11,637 ... 437 1 6 ... 9d. Otago ... ... 42 ... 83,664 ... 2,939 10 2 ... B|d. Total ... ... 62 104,172 ... £3,523 18 11 And there are now 127 runs, covering 241,414 acres, open for application. It is> believed that the small run-system will prove very suitable for the settlement of broken, hilly

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country, where, although the soil may be good, only certain portions are arable, the hillsides and gullies being only suitable for pasture. Crown Lands held on Pastoral Lease or License. By way of distinction from the small grazing-runs, it may be as well to explain that on pastoral lease the tenant has the right to the pasture only—the lease gives no right to crop the soil; but there is no restriction as to the area of a run or the number of runs one lessee may hold. An area of over eleven million acres is held in 1,246 leases, at an average rental of 3|d. an acre. The rents, with the exception of a few hundred pounds, have all been paid to date. But the low price of wool, the rabbit-pest, and the weight of monetary engagements entered into in more prosperous times are now telling very adversely on some of the lessees. Applications have been made for remission of rents, which it is impossible to grant, for the State cannot act as a private landlord might do in such an emergency. An area of 354,763 acres was let during the year in forty runs. It was mostly high back-lying country, and let at rents under the average. More recently a few runs in the better country of Otago have been relet at a very considerable advance on the upset price. This, however, can hardly be taken as an indication of the paying nature of runholding at present, for there were exceptional circumstances in the cases referred to which induced competition at the auction sales. Thermal Springs. A few years ago the difficulties of travel and the lack of accommodation prevented all but the more adventurous travellers from visiting the hot springs, and the blessings of their curative properties were only experienced by a few. The extension of the railway-system during the year has done a great deal to render them more accessible; thus the Te Aroha Springs, which only four or five years ago were not accessible even by road, and whose existence was only known to a few, are now reached from Auckland by railway in a few hours. The opening of the last section of railway on the Ist March has caused a very marked increase in the number of visitors. Similarly the opening of the railway to Oxford has reduced the coaching distance from Auckland to Rotorua to 34 miles ;* and the completion of the line the whole distance will bring the wonders of that region within the easy reach of the multitudes who will flock thither for health and recreation, and to view the scenes of the recent volcanic eruptions. It is very satisfactory to note that, in the great eruptions of Tarawera and Rotomahana on the 10th June, 1886, no apparent injury has been done to the springs around Rotorua. Dr. Ginders reports regarding them : " Springs here increased in temperature and volume since eruption. Blue Bath Cauldron, average mean temperature before eruption, 165° Fah.; since, 180°. Rachel Cauldron, before, 175°; since, 192°. Priest, mean temperature for March, 90°; April, 99°; May, 97°; June Ist to 10th, 98°; 10th to 30th, 98°. Lake, 8 inches over highest winter level, preventing free outflow from Priest. On fall of Lake,, expect Priest's temperature to rise. Outflow from all three springs doubled in amount. On the whole, consider eruption has benefited springs." Contracts have been entered into for a cold-water supply for Rotorua sufficient to supply public baths and fountains and a town of ten thousand inhabitants. The hot springs at Hanmer Plain, in the Middle Island, have also been brought more within reach by the opening of the railway to Culverden, reducing the coaching-distance to twenty-four miles on a ninety-mile journey from Christchurch. These springs, which were practically unknown to the public only a year or two ago, are rapidly becoming known, and to meet the public demands it will be necessary to increase the number of baths. The existing accommodation for lodging visitors is inconvenient and not equal to the present and prospective requirements of the place. This is likely soon to be remedied by the erection close to the springs of extensive accommodation : proposals are now before the department for a sixty-three-years' lease of a site of seven acres under section 2 of the Land Act of 1885. The Te Aroha and Hanmer Springs are on Crown lands, and the Rotorua are on Native land managed by the Government. The hot springs are looked upon not only as a priceless boon which nature has conferred on the inhabitants of New Zealand, but also as the healingwaters —the Bethesda —for all who may come from distant lands to seek restoration of health. The erection of bathhouses and other equipment of these Saritoria have therefore been

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made a public matter. The outlay at Eotorua since 1882 has been about £11,727, and the water-supply and other liabilities entered into will cost a further sum of £8,000. At Te Aroha the total outlay has been £1,900, and the Local Domain Board, which manages for the department, requisition for a further sum to extend bathhouses and ornament the grounds. At Hanmer the total outlay has been £2,255, and if more baths are erected this will be increased by several hundred pounds. The number of baths taken at the several places are as follow : — No. of Baths. Receipts. £ s. a Eotorua, six months ended the 30th September, 1885 ... 2,137 64 5 0 Eotorua, six months ended the 31st March, 1886 ... 4,113 132 14 0 Eotorua, Ist April to the 23rd June, 1886 ... ... 1,201 4115 0 Te Aroha, twelve months ended the 31st December, 1885 23,224 381 17 6 Te Aroha, five months ended the 31st May, 1886 ... 18,686 324 8 10 Hanmer, twelve months ended the 31st May, 1886 ... 1,794 80 0 0 Forest-trees Plantations. In terms of the regulations under the Forest Trees Planting Encouragement Acts of 1871 and 1872 land-orders to the value of £945 were issued during the year to seven landowners. This and former issues make a total of eighty-four land-orders, of a value of £18,161, up to the 31st March, 1886, representing an area planted of 1,540 acres. There arc still before the department 177 unsatisfied claims, representing 8,086 acres planted, to satisfy which, supposing all are approved, will require a further issue of land-orders of a value of £32,344. The operations of the Planting Board of Canterbury are given in the report of Mr. E. Gr. Wright, Chairman (see Appendix No. 1). The Board has clone some very valuable work, as noted in the annual Crown lands reports since 1881. The Board was constituted in 3879, and up to date has planted about 2,100 acres. As it is proposed to transfer the functions of the Board to the several County Councils, the most cordial acknowledgments of the department are due the members of the Planting Board for their onerous and skilful services, freely and gratuitously rendered. The report from Mr. McCullough, Chairman of' Maniototo County, Appendix No. 2, is a record of satisfactory progress in the county nursery : 141,806 tree-plants, in a healthy state, growing at an altitude of .about 1,700 ft. above sea-line, in a district naturally treeless, is the prelude to many clumps arising around the homesteads on the Maniototo Plains. The report, Appendix No. 3, of Mr. Robert McDougall, Chairman of the Lake County Forest Committee, on the Cardrona Nursery, is a record of satisfactory progress for the year, and is valuable as giving some of the results of his observations as to the kind of trees best able to withstand heat and drought, and the superiority in hardiness of plants reared at high altitudes over those brought up from the coast. Agriculture. It has been one of the aims of the department for several years to further successful settlement of the country by disseminating information bearing on rural economy both in respect of increasing the number of products from the soil and the better management of those already more commonly produced. This has hitherto been done principally by engaging experts to lecture and write on particular subjects, such as dairy management, silk, olive, and orange culture. In addition to this method, which is still pursued in the employment of Mr. Thos. Mackay on the preparation of a work on grasses, and Mr. Gr. A. Schock, of Auckland, in furthering silk-culture, the department has had, since May last, the advantage of an officer specially appointed to the charge of agriculture in Mr. W. de Gr. Reeves, whose attention was first directed to reporting on the agricultural machinery of the New Zealand Exhibition, Wellington, and, subsequently, to the stock and implement shows at Christchurch, Dunedin, and Oamaru. These reports are printed—H.—s, 1886—and are well worthy of the perusal of settlers for their practical observations. More recently Mr. Reeves has been engaged in making investigations according to the following instructions : " It would be well if you would take up the statistics of the colony for the years 1884 and 1885, and extract in tabular form the imports and exports of alimentary substances, with the view more particularly of showing, in a succinct form, what articles are being imported that might, or indeed should, be produced in the colony, such as green fruits, jams, tinned fruits, and olive and linseed oils, also fish, bacon, hams, cheese, flour, honey, biscuits,

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confectionery, and other articles which you will see on reference to the items in the Customs return. With this information before us we shall then see in what direction the efforts of the Agricultural Department should tend towards making the colony self-supporting in the gi'een fruits and other articles it can produce so well. The return of exports will show in what articles the colony has become more than self-supporting, such as in wheat, oats, and barley, potatoes, and dairy produce. Endeavour also to give the markets to which the surplus was sent, so that we might see if there is a likelihood of the markets being increased, and generally as to their permanence, and what affects them. Thus, the farmers of New Zealand for the last few years have had an excellent market in New South Wales for wheat, oats, butter, preserved meats, corned beef, and horses (draught), also to a considerable degree in dairy cattle, owing to the drought there. Again, as New Zealand is very well adapted to breeding horses, the question of sending cavalry horses to India might be inquired into, to see if it would be likely to pay our breeders to turn their attention to that market. This also involves the question of the course of trade in the matter of shipping, return freights, &c." The result shows that the agriculture of New Zealand is very much dependent on the Australian Colonies for a market. Thus in 1885 the export of agricultural produce, including horses, was valued at £766,580 ; while the imports were £119,558, or a balance in favour of New Zealand of £647,022. Oats is much the largest article of export to the Australian Colonies, the value being £247,030. Of this, Victoria took £71,577, notwithstanding the heavy import duty of that colony. Butter comes next in value, being £102,387 ; of this,. New South Wales took £88,812. With the exception of the United Kingdom, New South Wales is much the best market, the exports to it being of a total value of £512,812 for the year 1885. The imports to New Zealand bring out very clearly the lines on which the colony should seek to be self-supporting. Thus, New Zealand imported— In 1884. In 1885. Candles, of a value of ... ... ... £74,959 ... £71,673 Fish, of a value of ... ... ... 51,086 ... 35,173 Fresh Fruits, of a value of ... ... ... 68,189 ... 81,977 Preserved Milk, of a value of ... ... 12,823 ... 15,425 Jams, of a value of ... ... ... 10,552 ... 11,354 Seeds (principally grasses and clovers), of a value of 70,993 ... 91,915 Totals ... ... ... £288,602 ... £307,517 On these six articles, all of which, with the exception of preserved milk, are produced toa considerable extent in the colony, there is still a large market within New Zealand for the local producer to overtake. The most gratifying feature in the return of exports is the very marked and rapid development in the export of frozen mutton and dairy produce. It was only in February, 1882, that the first trial shipment of frozen mutton left Port Chalmrr-\, in the ship " Dunedin," for London, and the amount of export since is as follows : — Owfr. £ 1882 ... ... ... ... 15,244, valued at 19,339 1883 ' .. ' ... ... ... 87,975, valued at 118,328 1884 ... ... ... ... 254,069, valued at 345,090 1885 ... ... ... ... 296,473, valued at 373,857 It would be difficult to assign the limit of New Zealand's capabilities in the supply of frozen mutton. It has already outgrown the available shipping, and for that reason further expansion is likely to be held in check for a time. In the export of butter and cheese there has also been a very great expansion since 1882. In that year the value of butter exported was £52,088; in 1885, £102,387; and of cheese, £10,130 and £35,712 for these years respectively. There are now about thirty dairy factories in the colony. The first was established in ]882, at Edendale, Southland, by Mr. Thomas Brydone, the General Manager of the New Zealand and Australian Land Company. The colony is further indebted to Mr. Brydone's enterprise for the commencement of the frozen-meat industry, in the first shipment by the ship " Dunedin " already mentioned. The importance of these two new industries to the colony cannot very well be overstated. The frozen-meat trade is the backbone of the direct-steam service : Avithout it a large subsidy would have to be paid, or the service would collapse. The future of this trade is well assured j for, although there have been and still are difficulties in the way, the broad facts

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remain that the millions in the British Isles have to be fed, and must rely largely on other countries for meat supply. New Zealand in climate and soil has advantages for the production of animal food which no other country can outrival. The refrigerating process enables that to be placed on the market in carcase, the most acceptable form to the consumer. Therefore the colony may look forward with confidence to this outlet for that class of produce. The agricultural branch of the department can hardly hope to further this industry, for it is already in the hands of several well-organized companies, which arc on the alert ready to adopt any improvement which experience or invention may suggest. With the dairy industry it is different, for, necessarily, it is a manual industry, engaged in by settlers who farm their eighty or two hundred acres, and who, comparatively speaking, have in many cases very little chance of knowing what improvements are being made in other places. Many of these, in their out-turn of butter and cheese, do credit to their training in the Mother-country; but a great number, from no training, or bad training, or want of appliances, produce an inferior article, which may be bartered in the district, but never could be marketed elsewhere. Now, between the inferior and the prime article there are very many gradations, and this uncertainty of brand has hitherto very much marred the efforts to establish an export trade in dairy produce. Until the factory system was established the export of cheese was insignificant; now it is rapidly growing, owing to the dependence which can be placed on uniformity of quality. The butter export, as yet, is almost entirely the produce of private dairies. The consequence is that, in the foreign market, the bad degrades the price of even the good to a low average. Were the factory system more extended the uniformity of quality thereby obtained would raise the price of the whole. In Sydney—which received last year nine-tenths of the butter exported from New Zealand —factory butter made in New South Wales fetches several pence per pound more than the produce of the best private dairies. It is therefore of the greatest importance that information should be diffused among the smaller settlers, both as to the management of private dairies and the advantages of the factory system. There is literally an inexhaustible mine of wealth for the colony in the improvement and extension of dairy-farming. The Agricultural Branch may hope to further this desirable object by convening meetings of settlers in districts, and explaining the principles and processes of cheese- and butter-making. There is no doubt whatever that Mr. Bowron, while travelling about three years ago employed in this manner, did a good deal to advance the industry. His report on Dairy Factories —H.-9, Sess. 11., 1884 —is well worthy of perusal. The great, body of settlers will have, in future, to rely more on dairy produce, for, with the apparently inexhaustible supplies of wheat poured into the London market from America and India, there is not much encouragement to the New Zealand farmer to rely on grain as an export. Again, the wool and mutton that a settler of one hundred or two hundred acres can produce is not sufficient to pay. But, taking fair average land, with present prices, the dairy farmer's gross receipts will be about three times what they would be on the same land under sheep. Of course there is more labour in the one than the other, but it is labour which the members of a family can well undertake. Special attention should therefore be given by the Agricultural Branch to further the knowledge of dairy management and the factory system among the smaller class of settlers. And also to the question of finding out new markets. Departmental. The Land Act of 1885, by increasing the modes and facilities of acquiring land on settle-ment-conditions, has correspondingly increased office-work, both in the district and head oflices. The amount of correspondence and bookkeeping is very large, having regard to the comparatively small areas and revenue dealt with. There are ten Principal Land Offices in the colony, corresponding to the ten land districts, besides a number of local district land offices. The expense of establishment could be considerably reduced were the number of these offices curtailed : the railway and telegraph systems should aid in this direction. But, the convenience of a land office, with its equipment of maps, having once been experienced in a district, it is a very difficult matter to close an office, even although doing so would place the district in no worse position than other districts which never have had that convenience. The tendency is to increase the number of offices, and attendant expenses. The department, while endeavouring rather to limit than extend the number of permanent offices, recognizes the expediency of sending an officer into a district to assist intending settlers through the formalities of application-forms whenever it seems necessary to do so. In this and other ways the land office is brought very much to every man's doorway.

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The forest and agricultural branches of the department, which are respectively under the especial care of Mr. Kirk and Mr. Reeves, conduct all business correspondence through the Under-Secretary of the department, Mr. Eliott, who, having a complete knowledge of all that is transpiring in the Land Department proper, as well, is enabled to prevent any clashing in matters that are akin. In conclusion, I have but to express my obligations to Mr. Eliott and all the officers of the department with -whom I come in contact for their frank and cordial co-operation. J. McKerrow.

APPENDICES.

APPENDIX No. 1. Cantebbuby Planting Boaed Eepoet. Sik,— Windermere, 6th July, 1886. I have the honour to enclose a memorandum giving particulars of the work executed by the Canterbury Plantation Board during the season of 1885. From this it will be seen that the total area dealt with amounted to 621 acres, of which 167 acres were sown with blue-gum-seed, 100 acres with wattle-seed, and 258 acres were planted with trees of various kinds and in various proportions, according to soil and climate ; whilst ninety-five acres were fenced only and but partially broken up, the work being stopped by the dry weather. The eighty-five acres at Hororata were planted with one-half larch, one-fourth insignis, and one-twelfth each of Abies excelsa, P. austriaca, and P. laricio ; the insignis being planted as nurses for the others. With the exception of the wattle-sowings, all the work has been successful. The planting-out of the pines has, for the most part, been done by contract, under guarantee from the several nurserymen to replace all the plants that should die ; and, considering the excep-tionally-dry season, a very small percentage of the plants required renewal. The 127 acres at North Eakaia and Bankside which were sown with gum-seed show a much larger number of young plants than usual. Whether this is attributable to the extra warmth of the season favouring the germination of the seed, or to the seed being of better quality, I am unable to determine; perhaps it is due, in part, to both causes; and it is satisfactory to know that a large part of the seed, was collected from trees growing around. Christchurch. It is matter for regret to find that P. silvestris, P. pinaster, and P. austriaca are all subject to a blight for which there appears to be no remedy short of cutting down the trees. The Board planted considerable quantities of P. austriaca in the season of 1884, under the impression that it was free from the disease which had attacked the other two. From personal observation it is clear that the three pines above named are badly blighted, and should be struck out of all lists for planting in this district. During the last season the Board have planted insignis only as nurses for the more valuable pines, for which its rapid growth commends it. In order to protect from fire the plantations adjacent to the railway-line, I had a strip of land, about 20ft. wide, ploughed round each plantation between Chertsey and Ashburton. Although this ploughing extended a few yards beyond the limits of the plantations, I regret to have to report that two of the blocks were much damaged by fire; but the trees, being all gum-trees, have since made a strong growth from the roots. Owing to the exceptional dryness of the season, the fire, after burning the tussocks up to the ploughed land, appears to have crept along the hedge-row, burning straw by straw until reaching the fences surrounding the plantations. To prevent similar destruction in future, greater care must be observed to surround the plantations by strips of land to be kept fallow or sown with white clover only. As this is the last report which I shall have the pleasure of sending you, I desire to express my entire concurrence with the proposal to vest all the plantation reserves in the Councils of the several counties within which they are situated. This step should secure a larger amount of interest in the work, which has hitherto been carried on by only three or four enthusiasts. It will, perhaps, also bring more eyes to bear upon the public plantations to protect them from injury. I have, &c, Edwaed G. Weight, J. McKerrow, Esq., Surveyor-General, Wellington. Chairman.

WOEK EXECUTED, SEASON 1885. Eakaia, fifty-seven acres fenced and sown with gum-seed; Bankside, seventy acres fenced, and sown with gum-seed ; Eeserve No. 1742, fifteen acres fenced, and sown with gum-seed ; Eeserve No. 1741, twenty-five acres fenced, and sown with gum-seed ; Eeserve No. 1770 (Ashburton), forty acres ploughed, and sown with wattle; Eeserve No. 2589 (Mayfield), forty acres ploughed, and sown with wattle ; Eeserve No. 2591 (Mayfield), ninety-six acres fenced, thirty-seven acres broken up only ; Eeserve No. 2564, twenty acres ploughed, and re-sown with wattle; Hororata, eighty-five acres, planted with 30,600 pines; Bluff', Coalgate, ten and a half acres, planted with 3,780 pines; Eeserve No. 1767 (Wakanui), twenty-five acres, planted with 7,500 pines; Eeserve No. 1782 (Winslow), twenty acres, planted with 7,000 pines; Eeserve No. 1770 (Ashburton), twenty acres planted with 7,000 pines; Eeserve No. 2565 (Valetta), forty acres, planted with 10,000 pines (filled) ; Eeserve No. 2564 (Anama), forty acres planted with 10,000 acres (filled) ; Eeserve No. 1905 (Tinwald), four acres, 2—C. 1.

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planted with 1,200 pines ; Eeserve No. 1782 (Winslow), thirteen and a half acres, planted with 5,000 pines : total acreage dealt with, six hundred and twenty-one acres.

APPENDIX No. 2. Maniototo County Foeest Nueseey Eepoet. Sib,— I have the honour to report that during the year ending the 31st March last the receipts from the sale of trees amounted to £30 4s. 2d., exclusive of an amount about equal to the above which is outstanding. A grant of £200 had also during the year been received from Government. The Council expended during the same period the sum of £332 lls. lid., which includes the nurseryman's wages (£l5O per annum), extra occasional assistance, ploughing, fencing, purchase of seeds, &c. The demand for trees is increasing, especially for the older transplanted varieties. Nearly eighty acres of the reserve have been fenced, the Council intending to let the grazing right for a short term of years. During the last twelve months two small parcels of seeds have been forwarded from the Museum, Wellington, the receipt of which I acknowledge with thanks. The excellent supply of water brought into the nursery preserved the plants last summer from being lost through the extraordinary drought which prevailed. More interest is being evinced by the settlers in the purchase of trees this season, as at the present time (June) nearly all the three-year olds are either sold or bespoke. The Council is desirous that the settlers should avail themselves of the opportunities afforded by the nursery in the acquirement of trees adapted for either useful, ornamental, or sheltering purposes, and the Forest-tree Planting Committee have recommended that the attached reduced prices should be charged. The fencing is strong and in good repair, and the buildings are compact and substantial. I have, &c, Samuel McCullough, The Under-Secretary, General Crown Lands, Wellington. Chairman.

List of Trees in Maniototo County Nursery on 31st March, 1886. Poplaes, 1,540 of sorts ; 3,000 oaks, two years old; 2,000 oaks, one year old ; 600 common ash, one year old; 4,800 Pinnsu douglassii, two years old; 3,000 Pinus douglassii, one year old; 500 larch, one year old; 5,400 Scotch fir, one year old; 1,050 Cupressus macrocarpa, three years old ; 2,300 Gupressus macrocarpa, two years old; 14,000 Gupressus macrocarpa, one year old; 5,620 Pinus insignis, three years old; 3,500 Pinus insignis, two years old; 14,500 Pinus insignis, one year old ; 500 red and black currants, three years old ; 210 Wellingtonia gigantea, three years old; 1,000 Wellingtonia gigantea, one year old; 90 Gupressus lawsoniana, three years old; 2,500 Cupressus lawsoniana, one year old ; 900 Biota aurea, two years old ; 60 cedars, two years old ; 300 Cupressus macnabiana, two years old; 50 weeping ash, one year old ; 50 Linus, one year old; 800 Gupressus torulosa, two years old ; 1,000 laburnums, one year old ; 3,000 Pinus austriaca, one year old; 3,750 Pinus austriaca, three years old; 10,546 Pinus maritima, three years old; 19,540 Pinus maritima, two years old ; 8,700 Pinus maritima, one year old ; 8,400 spruce, one year old; 5,600 spruce, two years old; 3,000 spruce, three years old; 10,000 thorn quicks, two years old : making, altogether, a total of 141,806 tree plants from lin. to 3ft. in height. The whole are in a healthy, forward condition.

List of Prices. Gupressus macrocarpa, seedlings, ss. per 100; two years, transplanted, 10s. per 100 ; three years, transplanted, 15s. per 100. Pinus insignis, seedlings, 2s. 6d. per 100 ; two years, transplanted, 7s. 6d. per 100; three years, transplanted, 12s. 6d. per 100. Pinus maritima, seedlings, 2s. per 100 ; two years, transplanted, ss. per 100 ; three years, transplanted, Bs. per 100. Gupressus lawsoniana, one year, transplanted, from 15s. per 100; three years, transplanted, from 3s. per dozen. Pinus austriaca, transplanted, ss. to Bs. per 100; oaks, ss. per 100; hedge hawthorn, 10s. per 1,000 ; poplars, 2s. 6d. per 100; Wellingtonia gigantea, transplanted, 4s. to Bs. per dozen ; Thuja gigantea 3s. to 6s. per dozen; Gupressus macnabiana, 2s. 6d. to ss. per dozen; Cupressus torulosa, 2s. 6d. per dozen; golden arborvita (very rare), ss. per dozen; spruce, one, two, and three years, 2s. 6d., 45., and ss. per 100. A small additional charge is made for plants packed in cloth or boxes.

APPENDIX No. 3. Lake County Fobest Nueseey Eepoet. Sib,— Pembroke, 14th June, 1886. I have the honour to submit for your consideration my report on the County Forest Nursery for the year 1885-86. During the year 1885 seven acres were permanently planted within the reserve, thus completing the planting of the block (25 acres) originally fenced. The trees therein are in a thriving state, growing both rapidly and robust. No better proof could bo given of the fitness of both soil and climate in this section of the colony for the growth of those trees indigenous to the hill country of California and the Pacific coast extending northward—which, in point of beauty and commercial worth, are so justly esteemed—than the display now afforded at the County Forest Eeserve. During the period above-mentioned about ten thousand plants have been sent out. Those to public bodies, civil, educational, and ecclesiastical, whether within or outside the county, have been given gratis ; and to private individuals the very nominal charge of from ss. to 15s. only per hundred has been made. This liberality on the part of your Council is gradually, although slowly, cultivating public taste in the direction of tree-planting, without which the most costly and elaborate

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homestead is naked and incomplete. The lengthened drought and intense heat of the past summer, although fatal to many newly-planted trees, has afforded a lesson of infinite value. It brought out the weakness and the enduring powers respectively of the different species planted. In the reserve the loss was about 2 per cent., and on private holdings about 10 per cent. Where the Abies species, such as douglassii, menziesii, excelsa, &c, had been planted on light soil or abrupt northern slopes, the loss was confined chiefly to them. The Pinus insignis, muricata, maritime/,, pinaster, and macrocarpa occupying similar positions were but slightly affected. It is also worthy of note that the Pinus insignis, a tree which has been universally lauded, has here displayed a faultinesss in the tendency of its leader or top branches to burn. So much is this the case that I have no hesitation in recommending those who admire and intend planting it to substitute largely the Pinus muricata. The latter is very similar in appearance to the insignis, grows almost as quick, and so far has not exhibited any defect whatever. As affording an excellent proof of the great value of the Forest Nursery, and as a further lesson to those who contemplate plantitf, I may mention that one of our foremost settlers, the owner of the Bendermere Estate, near Lake Hayes, planted some two or three thousand trees last spring, which had been procured from the Dunedin nurseries, the result being that, instead of a loss of 10 per cent., his loss has been a total one, as scarcely a single plant survived. What a grievous loss is this, both to the gentleman concerned and to the district. Some twelve hundred tree plants were sent from the nursery to this gentleman's estate about a month ago. I have little doubt but that the record regarding them will be very different from that pertaining to the imported lot. We have on hand, for sale or distribution, twenty-five thousand tree-plants, consisting of Pinus insignis, Pinus muricata, Pinus maritima, Pinus pinea, Pinus ponderosa, Pinus tuberculata, Gupressus jnacrocarpa, Cupressus laivsoniana, Abies (Norway spruce), Abies douglassii, Abies menziesii, Sequoia gigantea, Sequoia scinpervirens, deciduous larch, deciduous ash, deciduous sycamore, deciduous Betula lauta, &c. Also sixty thousand hawthorn quicks, for which from 3s. to ss. only per thousand is charged. The seed-beds contain about fifty thousand tree-plants of a character very similar to the above. One thousand fruit-stocks are also ready for grafting. Tor the want of details not yet received from your office I am unable at present to furnish a finance statement. The nursery, in a practical sense, has been a thorough success, much of which is due to the zeal and ability displayed by the curator (Mr. Studholme), who, I regret to state, retires from his position shortly. The refusal of the Otago Land Board to recognize our claim under the recently-repealed Forest Tree Planting Act, and of the Government during the past season to subsidize our expenditure incurred, is somewhat discouraging. Our efforts to clothe the nakedness of the country is a large scheme, and, when considered in conjunction with the absolute treeless character of Central Otago, should certainly earn for us the sympathy of those who are custodians of the public estate. I have, &c, EOBEET McDoUGALL, The Chairman, Lake County Council. Chairman, Lake County Forest Committee.

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No. 2.-Summary of Extent of Crown Lands absolutely disposed of for Cash, Scrip, or in any other Manner, during the Year ending 31st March, 1886.

No. 1.—Summary of Lands disposed of from Foundation of the Colony, with Total Cash received, &c., for the Year ending 31st March, 1886.

Land Districts. Total Area sold. Total Area granted or reserved under Acts. Total Area sold or otherwise disposed of from trie Foundation of the Colony. Total Cash received. Total Area remaining m , t , i, for Future Disposal, Total Area open for exolusive of l rea beiection. in preced j ng Column and of Native Lands. Auckland Hawke's Bay Taranaki Wellington Nelson Marlborough Canterbury Westland Otago Southland A. b. p. 1,656,873 0 27 1,011,145 0 30 176,766 0 34 1,663,703 0 24 1,047,264 0 34 783,629 2 33 2,997,841 2 36 52,161 2 32 2,225,547 3 19 1,044,383 2 4 A. H. P. 2,490,485 2 1 156,145 3 1 414,737 1 38 515,293 1 4 132,255 0 11 155,587 2 3 570,975 1 10 73,298 3 38 807,713 0 12 288,476 2 24 A. B. P. 4,147,358 2 28 1,167,290 3 31 591,503 2 32 2,178,996 1 28 1,179,519 1 5 939,217 0 36 3,568,817 0 6 125,460 2 30 3,033,260 3 31 1,332,860 0 28 £ s. d. 567,244 9 1 489,318 14 1 512,234 10 6 859,772 7 7 376,423 1 0 276,749 1 11 6,004,968 0 9 61,288 2 5 2,390,100 18 10 1,180,070 12 3 A. B. P. 145,808 2 30 9,412 3 23 25,992 3 31 29,652 0 27 5,802,741 2 35 540,100 0 0 3,609,344 0 6 252,165 2 8 229,804 3 28 1,447,732 0 12 A. b. p. 2,705,349 2 30 212,431 3 16 664,440 2 38 1,320,656 3 22 1,075,291 0 0 1,468,967 2 3 2,667,813 1 2 9,688,463 0 0 Totals .. 12,659,316 1 33 5,604,968 2 22 18,264,285 0 15 12,718,169 18 5 12,092,755 0 0 19,803,413 3 31

Lands sold. Land Districts. Number of Acres. Bate per Acre. Consideration. Lands disposed of without sale, by Grants, or in any other Manner. Town. Number of Purchases. a, i,,-, -K n Number of buburban. -p, n Purchases. Country. Number of Purchases. I Town. Suburban. Country. Cash. Scrip. Auckland Hawke's Bay ., Taranaki ,, Wellington ,, Nelson ., Marlborougti ,. Canterbury ,. Westland i Otago Southland A. E. P. 13 1 37 0 3 0 16 3 26 2 2 21 1 1 39 4 2 14 17 1 23 16 17 A. B. P. 43 1 17 26 1 26 3 3 A. E. P. 18,491 0 19 1,514 3 8 770 0 31 2,352 3 38 2,468 3 11 4,255 1 17 10,404 0 9 10 0 0 23,234 3 22 881 2 37 210 10 13 17 27 5 75 1 190 21 £ s. d. 95 5 0 40 0 0 30 14 2 45 19 8 30 2 6 48 0 0 £ s. d. 3 4 4 3 8 2 £ s. d. 0 13 41 1 17 0 2 0 10 0 13 5 0 13 10 0 10 6J 2 1 10 10 0 16 7 1 11 3 £ s. a. 14,102 11 6 2,316 2 2 1,687 19 5 2,097 8 3 1,830 10 0 2,289 12 3 21,994 6 3 10 0 0 32,041 10 G 2,787 4 3 £ s. d. A. B. P. 300,323 1 7 1,319 1 36 762 0 2 27,098 1 8 95,531 0 11 148 0 20 2,258 3 35 654 2 26 1,165 3 8 4 2 16 i 4 '6 0 7 '2 32 11 0 20 14 26 279*'3 6 178 2 21 33 43 31 12 0 36 2 1 5 '6 6 5 2 7 514 6 0 Totals 58 2 29 116 532 3 6 85 64,383 3 32 569 81,160 4 514 6 0 s.2: 261

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No. 3.—Land selected up to 31st March, 1885.

Number of Applications made. Average Total to each Selector. Land in Occupation under Previous Transactions. Total Land granted for Conditions fulfilled. Total Land forfeited for Breach of Conditions up to Date. Land District. Nature of Selection. Number approved. Area selected. Fees payable Number of Acres. Rents paid. A. E. P. 25,985 0 36 74,771 0 0 5,726 3 2 60,760 3 0 84,118 0 35 89,980 1 34 35,395 3 15 64,000 3 29 1,478 2 1 14,601 2 3 2,781 0 14 A. E. P. 179 0 33 165 0 9 49 1 24 88 1 30 96 0 4 187 0 0 170 0 27 101 3 26 31 1 33 339 2 11 95 3 23 £ s. d. 2,513 15 8 A. E. p. £ s. d. A. H. P. 2,092 3 7 10,823 2 29 A. E. p. 3,067 0 2C 3,435 2 C 1,250 0 C 4,803 2 3£ 7,606 1 27 1,974 2 38 29,404 2 26 4,968 1 4 1 2 3C 6,265 0 C 316 3 t Auckland Hawke's Bay .. Taranaki Wellington Nelson Deferred payment Homestead Agricultural lease Deferred payment 220 453 225 784 1,311 534 ( 145 453 116 687 876 480 208 628 47 43 29 287 0 0 15,453 2 2 7,202 0 1 875 17 6 4,654 17 4 650 18 6 2,687 16 6 246 0 6 33,425' 0 17 33,135 13 3 84,249 3 3 72,477 5 6 22,531 3 24 13,111 0 28 59,453 0 39 28,334 1 27 1,988 1 9 Leasing Acts 10-per-cent. clauses .. Reserves Mineral Deferred payment .. \ 2,895 Marlborough .. Canterbury 29 „ suburban „ village Homestead Deferred payment Special settlement .. Agricultural lease Perpetual lease Deferred payment „ pastoral „ exchange „ suburban „ village Agricultural lease Deferred payment ) 563 563 38,505 1 1 68 0 5 10,498 6 2 34,822 3 17 23,651 19 8 448 3 37 868 3 1\ Westland 44 24 75 5 7 39 24 75 5 7 1,480 0 0 2,188 3 7 2,449 2 12 180 3 32 910 1 5 38 0 0 91 0 32 32 2 25 36 0 30 130 0 0 328 5 6 276 6 3 22 12 6 49 18 125 0 0 605 0 0 280 1 27 230 0 ( 159 3 31 23 3 2( » • • Otago 6,073 1,977 383,220 0 18 193 3 14 31,551 17 4 206,821 3 1 244,346 2 11 98,439 2 3 77,958 3 U Southland 6,041 1,654 4,097 1,111 274,104 1 39 136,358 2 10 66 3 24 122 2 37 2,644 12 6 21,182 0 1 119,798 0 0 162,144 2 19 49,664 0 5 90,856 3 S 12,024 2 32 Totals 577,658 4 7 450,043 0 14 245,217 0 20,937 11,610 1,298,998 1 13 79,942 10 2

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No. 3— continued.— Land selected during the Year ended 31st March, 1886.

Land District. Nature of Selection. Number of Applications made. Number approved. Area selected. Average to each Selector. Pees payable Yearly. Land in Occupation under previous Transactions. Total Land granted Total Land forfeited Number of Acres. Bents paid. fulfiled. Conditions up to Date. Auckland Deferred payment Homestead Agricultural lease Village settlement Deferred payment Village settlement Deferred payment Village settlement Deferred pavrnent Village .. Leasing Acts 10-per-cent. clauses Eeserves .. Mineral Deferred payment „ rural „ village Homestead Deferred payment Special settlement Agricultural lease Deferred payment pastoral „ exchange .. „ suburban .. „ village Agricultural lease Interest on capitalization Deferred payment .. „ village 20 35 20 35 A. B. P. 2,563 3 16 5,830 0 0 A. E. P. 128 0 32 166 2 1 S s. d. 307 9 10 A. E. P. £ s. d. 2,242 5 10 A. B. p. 924 2 16 729 0 0 A. E.P 835 0 ( Havvke's Bay Taranaki •• 1 165 137 2 43 24 ■• 1 132 106 2 43 24 8 2 4 10,207 2 22 3 2 5 12,333 2 23 24 3 9 7,4U 2 30 208 0 28 8 2 4 77 1 12 3 2 5 116 1 17 12 1 24 186 0 0 8 2 28 1,314 5 6 1,785 13 0 32,440' 0 37 57,115 1 19 2,351 0 5 2,365 0 24 16 3 6,067 7 9 138 8 1 12,454 4 8 2,223 8 8 5,641 2 6 89 8 9 729 18 3 4,934 0 10 435 14 6 1,984 16 0 217 14 6 8,485 6 6 797' 0 0 4,298 1 1 1,081 0 30 1,497 1 20 187 3 2( 987 0 < 169 3 1< 234 0 ( Wellington 902 7 6 Nelson 1,660 3 35 895 0 4 169 0 ( 1,117 3 11 70 3 ( 279 1 2i 466 3 { 2,074 1 1! Marlborough Canterbury "38 86 46 10 2 13 29 7,459 2 25 221 2 27 4,721 1 31 191 1 10 2,603 1 36 179 3 38 86 2 38 4 3 1 429 0 35 95 2 25 200 1 3 6 0 33 521 10 6 65 6 0 178 10 0 19 4 0 959 4 2 2,314 1 9 2 13 29 11 280 1 11 Westland Otago 3 43 "33 6,132 3 35 J | 185 S 15 1,042 3 6 830 0 0 2,188 3 7 2,439 2 12 180 3 32 86,272 3 5 92,938 2 32 9,199 2 6 210 1 31 344 0 8 15,828 2 5 120 14 5 58 13 7 22 12 6 10,934 19 6 3,654 19 10 1,089 7 8 230 16 9 207 11 0 2,369 12 4 1,357 15 2 12,901 11 9 329 14 7 650 0 0 615 0 0 9,400 1 39 159 3 3: 2,340 3 3' 3 4 8 33 3 4 8 28 497 1 17 49 1 7 82 1 36 4,491 0 20 165 3 5 12 1 12 10 1 9 167 2 12 74 14 0 53 15 3 43 1 0 550 5 0 69 3 34 11 2 19 2,895 0 14 3,933 0 l r 2,379 3 3( Southland "96 4 83 4 4,054 1 18 19 1 35 48 3 15 4 3 19 810 19 6 62,470 3 8 3,964 1 9 8,190 2 38 733 0 21 4,008 1 ' 556 0 2( Totals, 31st March, 1886 Totals up to 31st March, 1885 715 20,937 713 11,610 69,299 1 32 1,298,998 1 13 8,628 8 9 ■ 79,942 10 2 79,523 12 8 577,658 4 7 33,729 3 2 450,043 0 14 19,970 0 31 245,217 0 1 •• Grand Totals 88,570 18 11 I 265,187 0 3< 21,652 12,323 1,368,297 3 5 •• •• 657,181 17 3 483,772 3 16

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No. 4.—Particulars of Applications to exchange Agricultural Leases for Leases on Deferred Payments, and to convert Leaseholds into Freeholds, during the Twelve Months ending 31st March, 1886.

No. 5.—Number and Area of Pastoral Licenses issued during the Year ending 31st March, 1886.

No. 6. —Lands held under Pastoral License or Lease on 31st March, 1886.

To exchange Agricultural ] Leases on Deferred Pay: ceases for lents. To convert Leasi iholds into F: :eeholds. 'and Districts- AppHcatfons. Extent. Land Districts. No. of Applications. Extent. Value of Improvements. Extent cultivated. A. E. p, A. B. P. 4,554 2 10 14,044 3 8 8,190 2 38 3,865 3 37 £ s. d. A. B. P, •felson )tago ioutliland .. ■larlborough 3 432 1 24 Nelson .. Otago Southland Maryborough 37 96 63 1 10,119' 0 0 307 10 0 2,023 0 C Totals .. ! 432 1 24 Totals 197 20,658 0 18 10,420 10 0 2,023 0

Land Districts. o . m Date of License. Area. Date when J o License 3 -" expires. | w Rent (annual). License Fees (if any). Total, and Rent per Acre. mckland lawke's Bay.. ?aranaki Wellington kelson rlarlborough .. Janterbury Vestland )tago Southland 1 1 Dec. 7,1885 Mar. 1,1886 A. E. P. 14,000 0 0 9,000 0 0 Year to year Feb.28,1907 £ s. a. 50 0 0 40 0 0 £ s. a. 3 3 0 £ s. d. 50 0 0 |d. 43 3 0 1^-d. 2 1 3 1 31 July,'' 1885 Deo. 7,1885 2,500 0 0 560 0 0 4,413 0 0 12,000 0 0 312,290 0 24 Yearly Mar. 1,1896 240 12 10 0 7 0 0 64 18 0 26 0 0 1,462 6 6 2 0 0 3 0 0 14 10 0 Id., 2d. 10 0 0 3d. 64 18 0 3Jd. 37 1 0 -52d. 1,515 4 6 l-123d. Aug., 1885 Aug. 31,1895 11 'i 0 52 18 0 Totals .. 40 354,763 0 24 1,662 14 6 72 2 0 1,734 16 6

Land Districts. ° A <D CD Area Average Area Stock approximately. to each. depastured. Rent paid. License Total Fees. Payments. Average per Acre. 141,316 0 0 61,009 1 0 325 0 0 6,889 0 0 779,285 0 0 1,070,660 2 37 2,784,292 0 0 ! 649,620 0 0 5,271,397 1 17 427,920 0 0 A. E. P. 5,652 0 0 6,100 3 28 325 0 0 689 0 0 6,957 0 0 10,496 0 0 6,566 0 0 11,948 1 1 11,712 1 2 7,132 0 0 £ s. d. 290 0 0 479 12 4 52 0 0 194 19 7 8,822 0 0 7,396 8 6 50,491 15 10 411 4 3 94,679 18 10 3,400 14 4 £ s. a. s s. a. 975 14 0 482 15 4 52 0 0 194 19 7 8,824 0 0 7.399 8 6 50,564 10 4 422 5 3 94,764 0 10 3.400 14 4 s. d. 0 C% 0 2 3 2| 0 6| 0 2| 0 1-6 0 4-36 0 -27 0 4-3 0 1-9 lUckland lawke's Bay Vellington 24 10 1 10 112 102 424' 46| 457 60 1,131 3 *3 0 felson .. larlborough lanterbury Vestland Hago* louthland 128,000 2 0 0 3 0 0 72 14 6 11 1 0 84 2 0 1,620,000 Totals 1,246 11,092,714 1 14 166,218 13 8 176 0 6 167,080 8 2 * Includes 24 si tall [razini runs. coin" irisini 55,739 acres. let at an averai ;e rent of 8: f d. ier acre.

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No. 7. —Number and Area of Leases and Licenses, other than Agricultural and Pastoral, issued during the Year ending 31st March, 1886, and Revenue therefrom.

No. 8. —Number of Licenses revoked during the Year ending 31st March, 1886.

Land Districts. Object for which leased. Area leased. Rent. Auckland .. Jawke's Bay ?aranaki .. Wellington kelson ilarlborough Canterbury Timber, tramway, timber-floating, and miscellaneous Miscellaneous Grazing, timber, and prospecting licenses Copper leases Coal leases, royalties, and survey fees Mineral leases Reserves Timber-cutting Grazing Gold-mining leases (7) Miscellaneous Dobson Town sections Timber leases Timber licenses Cattle licenses and miscellaneous Timber, lignite, quarry, mineral, and other leases Miscellaneous Timber, lignite, quarry, mineral, and other leases Miscellaneous A. B. p. 489' 2 23 19,772 3 18 580 0 0 4,141 1 31 1,692 2 32 110 3,221 0 32 597 1 28 115 2 0 £ s. a. 2,081 12 6 32 15 11 303 14 7 1,347 2 11 124 13 9 14 10 0 3,728 19 5 44 6 2 10 0 69 1 8 82 18 2 59-10 0 404 18 7 261 2 6* 15 0 0 24 15 0 29 2 6 135 5 7 2,052 3 11 3,003 5 2 899 8 7 Vestland .. 8l" 1 35 15 0 0 )tago 4,877' 2 20 iouthland.. 9,055 .1 32 Totals 14,715 6 11

Land Districts. Description of License forfeited or revoked. At Licensee's Bequest. For Nonpayment of Pees. Noncompliance with, and Violation of Conditions. Total Number. Extent. A. B. p. Luckland lawke's Bay 'aranaki Vellingfcon lelson .. farlborough Deferred payment and pastoral 3 4 4 "i 2 4 11 3 2 2 9,405 3 20 1,037 0 0 234 0 2 70 3 0 18,150 0 0 !anterbury Licenses to occupy reserves .. Deferred payment and license to occupy a reserve Deferred payment Deferred payment and pastoral Euns 1 7 11 18 1 19 530 1 13 1,543 0 0 111,127 0 0 'l9 Yestland )tago Southland Various Deferred payment and perpetual lease] 26 1 '51* 25 77 26 320,193' 0 24 4,321 1 13 Totals 38 38 87 163 466,612 1 32 * Twent; '-seven of these b; ex] jiration of term,

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No. 9.—Statement of Amounts due to the Crown on the 31st March, 1886, on account of Crown Lands held under any System of Deferred Payments.

No. 10. —Capitalization.

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Selecto: ■s still Holding. Scled jors in Arrear, Z. .st March, 1»«. Districts, and Nature Holding. 3 S5 Acreage held. Amount to accrue inFuture Instalments. Total Payments made to 31st March, 1880. I a Area held. Amount o.! Arrears. Auckland — Eural Pastoral Suburban .. Hawke's Bay— Deferred payment Village settlement Special settlement Taranaki — Deferred payment Village settlement Wellington— Deferred payment Nelson— Agricultural lease, deferred payment Marl boro u gh— Deferred payment Canterbury— Rural Pastoral Westland— Deferred payment Otago— Deferred payment Agricultural lease Perpetual lease Southland— Rural .. .. '.. Suburban Village A. B. V. 18,102 2 1 6,217 1 3 8 2 4 £ s. a. 16,001 5 9 5,650 11 8 11 16. 3 £ s. d. 8,648 10 1 1,599 10 10 16 3 A. it. P, £ s. a. 112 6 1 153,140 1 22 1,872 0 4 248 21 58 23,495 0 23 166 3 4 5,120 3 31 27,653 17 5 319 15 V 4,834 12 ll! 8,011 17 4 241 16 9 523 14 9 42 4 5,071 0 24 13 2 0 453 7 1 fi 2 0 7^20 61 70,448 3 32 1,125 0 16 92,131 5 9 3,879 3 6 96,591 5 11 8,445 1L 10 58 9 5,318 3 29 127 2 31 550 6 3 48 8 11 232 33,783 2 2 42,585 10 5 23,310 11 2 26 3,222 1 28 294 18 3 094 69,277 3 23! I 48,663 16 9 21,946 1 2 27 2,522 2 19 1,656 9 2 1,091 0 0 710 3 34 51 6 0 374 13 8,930 1 11 28,676 0 0 28,495 2 4 40,924 11 10 14,360 11 9 11,005 0 2 I 194 5,876 0 0 2,004 18 9 92 3,7S5 3 0 2,938 9 5 1,542 12 3! 65 | 2,935 1 35 917 18 3 720 188 150 195,727 2 17 20,319 2 25 28,081 3 31 201,133 6 10 27,792 16 6 102,239 1 3 4,963 10 8 3,101 13 9 • 500 116 83 151,334 1 9 13,809 1 13 18,468 3 7 17,317 18 5 I 2,118 0 0 1,980 13 4 331 118 183 02,883 1 8 947 1 15 2,094 2 3 66,900 7 6 4,045 2 2 4,714 14 2 34,903 0 7 2,054 17 2 2,943 5 10 216 4G 105 41,449 2 20 393 0 12 1,538 2 0 3,725 13 1 290 12 1 498 19 1 Totals 4,349 562,315 2 28 ,700,332 12 1 348,125 11 0 l,52o! 262,919 0 30' '32,130 11 10 i ■

Nunx ier of Application! Board. made to the Number of Applications granted by the Board. Land Districts. Number. Area.. Amount duo under the Deferred-pay-ment System. Amount duo Number. Area. D X£$Syment System. Amount due under Capitalization System. Auckland Hawke's Bay Faranaki Wellington Sfelson Marlborough Canterbury Westland Dfcago Southland 14 A. It. P, 1,324 0 18 £ s. d. 2,134 8 G 14 a. a. r. ': £ s. d. 1,324 0 18 i 2,134 8 G £ S. d. 1,794 C 1 108 23 10,358 3 18 2,935 0 2 ■20,885'l4 6 3,852 16 2 108 23 10,358 3 18 ] 20,885 14 6 2,935 0 2 ! 3,852 16 2 17,512 10 2 3,327 3 0 "2 8 340 3 21 433 1 33 234 16 0 1,080 13 3 1 8 50 0 0 45 0 0 433 1 33 1,080 13 3 40 9 2 933 11 7 '93 98 18,980 0 22 23,757 16 4 93 98 18,986 0 22 | 28, 757 16 4 17,972 0 28 ! 23,882 5 0 25,105 10 8 20,150 11 4 \J Totals 345 34,378 1 34 345 52,059 3 1 \ 80,038 13 9 56,946 4 9 68,864 2 0

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No. 11. —Return of the Number of Perpetual Leases taken up during the Year ended 31st March, 1886.

No. 12.—Return of Homestead Lands selected, &c., during the Year ending 31st March, 1886.

No. 13.—Return of Grants, Schedules, Certificates of Titles, &c., issued from 1st April, 1885, to 31st March, 1886.

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Kental. Area taken up previous Year. Total Area nov in Occupation under Perpetual-leaBi System. Land Districts. Number of Holdings. Area. Eents paid. Number of Holdings. Area. Upsot. Obtained. A. K. P. 2,437 1 15 5,653 1 32 6,770 3 6 6,830 1 17 £ s. d. 0 1 8 £ s. a. 0 18 0 0 11 0 14 0 1 2J: £ s. d. 172 9 4 271 10 7 • 468 6 1 000 1 9 A. B. P. A. B. P. 2,437 1 15 7,868 1 2 10,134 0 37 10,840 2 37 Auckland Uawke's Bay Faranaki Wellington Nelson Maryborough Canterbury Westland Dfcago Southland 20 15 43 32 2 1 54 2 223 0 0 150 0 0 5,080 0 9 421 0 0 Oil 0 1 If 14 24 25 2,546 3 10 3,828 3 29 4,010 1 20 223 0 0 1,060 1 5 28,081 3 31 1,318 0 24 0 1 6 0 1 9 0 2 911 0 10! 0 1 11 0 19 42 7 0 1,342 4 8 59 0 0 7 57 4 910 1 5 14,885 2 36 897 0 24 Totals 28,165 3 39 131 27,079 1 4 61,903 3 31 169 3,015 19 11

FreehoL Is acquired. Wo: rfeitures. Land Districts. Number • of Selectors. Area. Number of Selectors. Area. Number of Selectors. Area. Auckland Hawko's Bay Taranaki Wellington Nelson Marlborough Canterbury Westland Otago Southland A. E. p. 5,830 0 0 A. B. P. 72<J 0 0 A. B. P. 835 0 0 35 G 11 17 650 0 0 Totals 835 0 0 35 5,830 0 0 23 1,379 0 0 11

praviricial" Districts. Number of Grants. Number ' of Acres in Grants. O CQ , CD ' Pi QJ I Area in Schedules. Total Area in Grants and Schedules. =4-1 CO O O |1 3 JM M & 3° n3 S 6 ■a I ■I 6 13 <D +3 CO to Auckland' Hawko's Bay .. Taranaki Wellington Nelson Marl borough Oantcrbury Westland Otago Southland 141 2 39 28 31 1 118 Acres. 239,545 7 2,420 9,071 88,467 236 20,166 106 1 21 11 8 3 85 2 43 5 Acres. 57,827 4,679 24,941 24,375 6,014 4,550 161,588 2,169 46,057 25,529 Acres. 297,372 4,686 37,361 33,446 95,081 4,780 181,754 2,109 47,757 27,500 449 95 173 80 51 15 974 58 300 216 3 "3 2 2 ' 2 4 4 3 "2 "3 32 G7 1,700 1,977 1 1 1 Totals .. 459 303,589 28") 358,329 731,918 2,411 12 12 4

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No. 14.—Return of Village-settlement Lands disposed of for Cash and on Deferred Payments during the Year ending 31st March, 1886.

{Approximate Cost of Paper.— Preparation, nil; printing (2,350 copies), £21].

Authority: Geobge Didsbubt, Government Printer, Wellington.—lBBG,

Cash. Deferred Payments. Small-farm Sections. Freehold acquired. Forfeitures. Village Sections. Small-farm Sections. Village Sections. Village. Small Farm. Village. Small Farm. District. CD •§■§ So I _, a Area. 3 13 Amount realized during tlie Year. Ho Area. -I" Area. ° f-8-Area. IS Area. Amount realized. Area. Amount realized. Area. Area. I ! I Auckland 5 A. E. P. G 2 10 £ e. a. 33 0 0 A. E. P. £ s. el. A. P.. P. 1 A. B. p. £ 8. d. 8-2 4 16 3 A. B. P. | A. E. P. A. B. P. j A. B. P. 1 3 2 5 2 i 81 2 36 Hawke's Bay .. 25 11 2 11 1C5 10 0 | 5 32 1 7 129 0 0 1 3 2 5 , 138 8 1 1 26 0 12 42 10 0 1 10 0 0 25 0 0 I 2 660 1 2 Taranaki 5 ! , 3 2 31 24 3 9 2,223 8 8 i 5 ! 1 1 0 i 24 I Wellington 17 8 19 444 0 0 6 8 2 17 75 0 0 24 208 0 28 : 89 8 9 : I •■■ Nelson i ■ ' " | ; •• .. v i Marlfcorough .. i i ] I .. | .. ' ' ' i Canterbury 6 234 2 17 708 8 5 10 3 1 11 19 ! 176 2 27 2,941 18 9 19 ! „ 14 3 22 i 38 73 1 28 15 1 6 0 8 2 22 2 26 ■ Westland ] •• •• s j .. .. •• •■ Otago 1 1 0 22 5 0 0 1 10 2 3 0 9 ! 8 ■ 82 1 36 207 11 0 1 11 2 19 I .. i Southland 2 10 0 10 0 0 j I I I 4 18 1 14 72 5 0 .. ! .. 4 19 1 35 . 329 14 7 7 130 3 8 I 6 1 159 0 20 Totals I I I i j 10 3 1 11 i j 523 2 24 5,931 16 1 24 I i | i 00 32 1 3 700 0 0 23 294 3 17 1,012 14 2 59 16 0 22 71 892 0 29 15 6 0 8 11 267 0 7 267 0