DEPARTMENT OF LANDS AND SURVEY. DISCHARGED SOLDIERS SETTLEMENT. REPORT FOR THE YEAR ENDED 31st MARCH, 1921.

Appendix to the Journals of the House of Representatives, 1921 Session I-II, C-09

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Session 11. 1921. NEW ZEALAND.

DEPARTMENT OF LANDS AND SURVEY. DISCHARGED SOLDIERS SETTLEMENT. REPORT FOR THE YEAR ENDED 31st MARCH, 1921.

Presented In both Houses of the General Assembly pursuant to Section 14 of the Discharged Soldiers Settlement Ad, 1915.

CONTENTS.

General Rkpokt: — pact Appendix— continued. p a g e Review of Position .. .. .. ..1 Table I Land proclaimed for Settlement during Reallotment of Forfeited Holdings .. ..2 Year .. .. .. .. ..10 Responsibilities of Administration .. .. :i Table 2. Applications reoeived and Land allotted 17 Reinvestment of Funds .. .. ..I! Table :i. Total Lands acquired by Discharged Legislation .. .. .. •• ..4 Soldiers .. .. .. .. ..18 Regulations .. .. .. .4 Statement of Mortgage Transactions .. ..19 Land opened and available .. .. ..4 Discharged Soldiers Settlement Aooount — Financial Assistance .. .. .. .. 5 Transactions I'm- fear .. .. 21 Appendix:— Balance-sheet .. .. .. ..22 Reports of Commissioners of Crown Lands .. 7

Sir, — Department of Lands and Survey, Wellington, 10th June, 1921. In accordance with the provisions of the Discharged Soldiers Settlement Act, 1915, I have the honour to submit herewith the report of the operations under the Act for the year ended 31st March, 1921. I have, &c, T. N. Brodrick, The Hon. D. H. Guthrie, Minister of Lands. Under-Secretary.

KEPOKT.

Review of Position. At the close of the year ended 31st March, 1920, oommitmenta to the amount of £12,610,254 had been made out of a total loan authority of £14,000,000, leaving £1,390,000 available for further advances. The Discharged Soldiers Settlement Loan Act passed during the year gave authority to borrow an additional £6,000,000, and under the Appropriation Acta further £1,000,000 was provided, making a, total of £8,390,000 available for advances in the past twelve months. Daring this period the sum of £5,331..726 was authorized to be advanced, which, with the amounts previously authorized, made a total of £17,941,980 of commitments, leaving an unexpended authority of about £1,297,324 for advances after the 31st March, 1921 The advances made up to the end of the year had benefited 17,853 discharged soldiers, comprising 5,331 who had been assisted to

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acquire rural holdings, 3,326 who had been assisted to improve their farms, erect houses (hereon, or purchase machinery and stock, and 9,196 who had been assisted to acquire residential properties or erect houses in towns. By the 31st May last the figures had increased, and were as follows ■ — Number. Acres, (a.) Settled on Crown properties .. .. .. 3,638 1,946,475 {!>.) Private lands acquired by soldiers with Government advances .. .. .. .. .. 5,403 1,227,092 Total number settled on rural land .. .. 9,041 3,173,567 (c) Assisted to purchase or erect town dwellings .. .. 9,921 Total repatriated by Lands Department .. 18,962 At the same time, under the provisions of the Repatriation Act, 5,646 returned soldiers had been financed to assist them to establish businesses ; 11,980 had obtained Loans to purchase household furniture, tools of trade, &c, and 2,559 had been granted transportation to assist them in securing work. Quite outside all this it may be mentioned that some B,OOQ ex-soldiers are employed in different capacities by the State including the Railway, Postal, and Telegraph Departments, and the general branches of the Public Service, as well as teachers in State schools. All the foregoing groups comprise a gross total of 47,000. It must not be overlooked, however, that some of the soldiers settled on the land or in residential properties were also assisted to purchase furniture by the Repatriation Department, whilst some public servants secured advances to purchase or erect houses and therefore appeal' more than once in.the figures quoted ; but it is safe to assume that at least 43,000 soldiers have been assisted, whilst the report of the Repatriation Department shows that an additional 31,000 ex-soldiers had been aided in various other directions to obtain employment. The total number of troops and nurses provided by New Zealand for foreign service was I 10,368, whilst 9,924 were in training at the time of the Armistice, and 3,370 are known to have left this Dominion to serve in British and Australian Forces, or a total of about 124,000. Of these, 16,781 were killed or died, and some 3,000 were in hospital last year, so that probably 100,000 have been eligible to apply for the benefits of the Acts. Roughly speaking, therefore, it would appear that about 43 per cent, of the Expeditionary Force have been assisted by the Government to establish themselves on the land or to start in business, or else are in the service of the State, whilst another 31 per cent, have been aided in a minor degree. The unfortunate drop in the prices of wool and frozen meat, and the difficulty of disposing of same in the Home ma ike!. caused a widespread depression in the farming community of New Zealand, and adversely affected many soldier settlers who were just beginning to make their farms pay. Fortunately a, large proportion of soldier settlers are dairy-farmers, and were consequently not so much affected as those who depended on the pastoral industry, but an unusual number of postponements of rent were necessitated, and the most sympathetic consideration has been given by the Government to the recommendations of the various Land Boards to whom the individual settlers have applied for concessions. It is, however, a subject of regret that in some cases the settlers do not appear to have shown the necessary spirit of self-reliance and energy that should, and does to a large measure, characterize the settlers of this Dominion, and have applied for concessions or manifested a reluctance to pay interest on advances or rent on their holdings when sufficient justification therefor does not seem to have existed. Such conduct is detrimental to ultimate success, and tends to weaken a man's moral fibre and power to overcome the periodical difficulties and hardships that, are met with in every branch of life. When making these remarks, which, as stated, only apply to a comparatively small portion of the Crown's soldier settlers, it is pleasing to be able to add that a large number evince no desire to shirk their responsibilities and just claims, but by hard work, perseverance, and every endeavour to utilize their land to the best advantage, manage to pay their way and steadily improve their position, whilst other settlers under similar circumstances apply for remission and postponement of rent. All the more credit attaches to the bulk of our settlers, who face the ups and downs of a farmer's life with courage and self-reliance, and add so greatly to the productiveness and good name of this Dominion. Reallotment of Forfeited Holdings. A certain number of soldier settlers fail to meet their obligations and either abandon their farms or have their leases forfeited. When it happens that the selector relinquishes the holding allotted to him, on which advances have been made under the Act, it is necessary to place a. new tenant, in possession as soon as possible, in order that the buildings and improvements may not deteriorate, that returns may be obtained from the holdings, and that accruing rent and interest on advances may be duly met. It is sometimes the case that an eligible discharged soldier cannot be found to take over his predecessor's liabilities, although a civilian may be willing and able to take the property, and would probably " make good "if permitted to do so. This is prohibited by the terms of the Discharged Soldiers Settlement Act and mortgage thereunder; but, as it is of primary importance that all land should be kept in a productive condition and that the Crown's advances should be protected, it is in contemplation to amend the Act so as to provide that when land subject to the Discharged Soldiers Settlement Act has reverted to the Crown, it may be disposed of to a suitable applicant in the open market, subject to the mortgage at an increased rate of interest, when it is impracticable to obtain a, discharged soldier for that purpose. Every care would, however, be taken to dispose of the land under

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the present provisions of the Act before steps were taken under the proposed amendment. It may be mentioned that a recent conference of Commissioners of Crown Lands was unanimously in favour of action being taken as indicated above. Responsibilities of Administration. The administration of the Act has largely added to the duties and responsibilities of the Commissioners of Crown Lands in the eleven land districts into which the Dominion is divided. Prior to 1915 the functions of the Commissioners of Crown Lands and the Land Boards were confined to preparing Crown lands in their districts for selection, receiving revenue therefrom after selection, and carrying out the provisions of the Land Act and other enactments relating to lands under their administration. The passing of the Discharged Soldiers Settlement Act of 1915, and the consequent advancement of £18,000,000 within five years to some 18,000 ex-soldiers for the purchase of land, houses, stock, implements, &c, has given them new and onerous functions. It is now their duty to see that the securities upon which the money is loaned arc sufficient and maintained in good condition, that the settlers utilize their properties in a satisfactory manner, that the stock upon which money has been advanced is purchased and sold to the best advantage, that the mortgages, bills of sale, and insurances which cover the Crown's titles to the loans made have been promptly prepared and registered, and generally that the granting of advances under the Act has been and is conducted on business lines and in a capable maimer. The, responsibilities now devolving on Commissioners are in many respects similar to those carried by managers of mercantile firms, and very full and accurate knowledge of the current prices of land, stock, produce, &c, is needed to enable officers to carry out their duties satisfactorily. In fact, they should possess the requisite financial and business experience to enable them to sum up the working position of a farm and see that it is conducted on good lines. There is, however, one distinct difference between loans by commercial and financial institutions and those granted under the Discharged Soldiers Settlement Act, and it is this: When money is lent in the ordinary course of business the lender is careful to see that there is a sufficient margin between the value of the security and the amount he is advancing, so that in the event of anything untoward occurring he has a certain amount of protection. Under the Act no such margin is required, and when advancing money on mortgage all that is necessary is that the amount of the loan shall not exceed the amount of the departmental valuation. In other words, when a discharged soldier was penniless money has been advanced up to 100 per cent, of the value of the security in order to give him a start in life. Such financing requires extreme care to avoid a loss, and in many cases it depends on the man himself as to whether or not the transaction turns out satisfactorily. If the ex-soldier is a hardworking man of good principles the result is generally good, but if there is any slackness in the borrower it is inevitable that there should be a loss. The personal equation is the great thing. To aid the Commissioners in their arduous work there is a Supervisor of Soldier Settlements in each district, who visits and reports on soldier settlers and assists them with advice regarding farming their land and purchase, of stock, &c, whilst the Crown Lands Rangers render what assistance they can. In the four centres a Collector of Rents and Inspector of Securities has been appointed, whose duty it is to keep an eye on all houses on which money has been advanced under the Act and see that the securities are in a good condition. In addition the Inspector of Offices periodically visits each land office, inspects the various titles which have been given for moneys advanced, and satisfies himself that the mortgages, bills of sale, &c, are in proper form and that the Crown's interests are protected. Reinvestment of Funds. A matter for determination by the Government and Parliament of New Zealand is the investment or other disposal of principal moneys that have been or will be repaid by the discharged soldiers to whom they have been advanced. The funds that have hitherto been provided by the Government are of two kinds—namely, appropriations from the Consolidated Fund and loan-moneys. The latter have to be repaid by means of sinking funds and otherwise in accordance with the provisions of the Acts under which they were raised, but the money provided out of accumulated surpluses of the consolidated revenue can be disposed of as is directed by the Government and Parliament. Roughly speaking, it may be said that £6,000,000 has been raised from, loans and will require to be repaid in order to reduce and defray the liability now resting on the taxpayers, whilst some £13,000,000 is available for reinvestment. One method of reinvestment is to follow on the lines authorized to the Public Trust Office, the Government Life Insurance Department, or other State Department with accumulated funds. Another way is to follow on the lines of the State Advances Office, but with modifications suited to the developmental needs of the country. The money has been advanced not only on first mortgage (as by the State Advances Office), but also in some cases on second mortgage, and in a large number of cases on bills of sale. Moreover, the State Advances Office has a statutory limit fixed in the way of margin, the loan not being permitted to exceed three-fifths of the value of the land and one-half the value of buildings on the land. Under the Discharged Soldiers Settlement Act no margin is prescribed, and to enable discharged soldiers witli funds to settle themselves on the. land advances have been frequently made up to the full value of the land purchased, and additional funds provided for the purchase of stock, implements, &c. Now that the needs of the greater part of the large body of returned soldiers have been met it may be advisable, to establish a new system of advances to meet the requirements of the coming generation of farmers, and for this purpose it may be deemed advisable to pass legislation to enable moneys that have been repaid under the Discharged Soldiers Settlement Act to be readvanced to eligible applicants taking up Crown lands for development purposes, and under conditions that satisfactorily safeguard the funds.

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Legislation. Section 34 of the Land Laws Amendment Act, 1920, amended section 3 of the Discharged Soldiers Settlement Amendment Act, 1916, and has the effect of making eligible for any concessions obtainable under the Discharged Soldiers Settlement Act those discharged soldiers who served abroad in some portion of his Majesty's Naval or Military Forces not raised in New Zealand. The Discharged Soldiers Settlement Loan Act, 1920, empowered the Minister of Finance to borrow money not exceeding £6,000,000 to be placed to the credit of the Discharged Soldiers Settlement Account, and under section 5 of the Imprest Supply Act, 1920, and section 5 of the Imprest Supply Act, 1920 (No. 2), authority was obtained to transfer sums amounting in the aggregate to £1,000,000 from the Consolidated Fund or other account to the Discharged Soldiers Settlement Account. IvWJULATIONS. Various amendments to the regulations issued under the Discharged Soldiers Settlement Act have been made during the past year by Orders in Council. The principal amendments arc as follows :— Mortgages given in security for advances made for the purchase or election of dwellings must contain a provision that the mortgagor shall reside continuously in such dwelling so long as any portion of the money so advanced remains unpaid. The provisions of section 15 of the Land Laws Amendment Act, 1915, which enable a lessee or licensee of rural land selected under Part 111 of the Land Act, 1908, or under the Land for Settlements Act, 1908, to apply for a revaluation of his holding, are extended to lands disposed of under the Discharged Soldiers Settlement Eegulations. Authorit)' is given for making an advance not exceeding £500, and in exceptional cases not exceeding £750, for buildings on rural holdings not exceeding 21 acres in area. The maximum advance that can be made for the erection of dwellings on other than rural land has been increased from £750 to £900. Provision has been made for granting to discharged soldiers a rebate of 10 per cent on the interest portion of instalments payable for advances made under section 2 of the Discharged Soldiers Settlement Amendment Act, 1917. Authority is also given for the granting of loans for shorter terms than originally prescribed in regulations ; in such special cases as may be approved advances can be made for a term of ten, fifteen, or twenty years. Lands opened and available. Dining the year an approximate area of 463,504 acres, subdivided into 999 holdings, was offered for selection by discharged soldiers, and balloted for, the bulk of the sections being taken up. Some of the principal blocks which were offered during the year were— North Auckland : Koremoa and Puni Settlements, containing 4,019 acres ; in addition to which 9,549 acres of Crown lands, in fifty-two sections, were offered to soldiers. Auckland : Rangitaiki, Reparoa, Otamarakau, Orongo, and Pukemapou Settlements, comprising 7,917 acres ; in addition to which 58,881 acres of Crown land, in 123 sections, were opened for discharged soldiers. Hawke's Bay : Repongaere, Ohuku, Omana, Ardkeen, Te Kaihi, Wilder, Paremata, Glengarry, Crowntliorpe, and Homebush Settlements, containing altogether 46,468 acres ; in addition to which 6,873 acres of Crown land were opened for discharged soldiers. During the year the George Hunter Gift Block was also balloted for and allotted. Taranaki : Ratapiko, Taitama, Aroheke, Tawhiwhi, Kohura, Marco, Huatoki, Karu, and Huia Settlements, containing altogether 12,309 acres, were opened ; and in addition 7,846 acres of Crown land, in forty-five sections, were opened. Wellington: Akitio and Tuturumuri Settlements, comprising 9,685 acres; whilst approximately 3,755 acres of Crown Land were also offered. Marlborough : Alberton, Moorlands, Linkwater Dale, Goat Hills, and Bomford Settlements, containing 6,842 acres ; whilst 1,482 acres of Crown land were also opened. Nelson : Blue Glen, Tutaki, and Maruia, containing altogether 18,382 acres ; and in addition thirteen sections of Crown land, containing 11,150 acres, were opened. Canterbury : Riverina, Brooksdale, Springwell, Waitohi, Peaks, Bankfield, Lambrook, Oakwood, Hawthorne, Isleworth, Grange, Broadfields, Dromore, Morten, Lauriston, and Hei Hei Settlements, containing 20,656 acres; some miscellaneous acres of Crown lands were also offered. Otago : Glenn, Pukenui, Arnmore, Wairuna, Tilverstowe, Poplar Grove, Teviot, containing, with the runs attached to the Teviot Settlement, 83,310 acres; in addition 105,349 acres of Crown land, in forty-three holdings, were offered for discharged soldiers, not including the Teviot Runs. Southland : Strath vale, containing 837 acres, was offered, and in addition thirty-two miscellaneous, Crown land, and settlement sections, containing 2,674 acres, were opened. There has been a considerable falling-off in the demand by discharged soldiers for farming lands, and a number of blocks recently offered which were acqviired and regarded as being very suitable for soldier-settlement have met with little or no demand on being offered. This lias been much more noticeable in the South Island than in the North, where there is still a fairly good demand for first-class dairying-lands. A large area has been proclaimed as set aside for selection by discharged soldiers, and has been lying open for some considerable time without inquiry, and the Government has therefore decided that the bulk of these lands for which apparently there is no demand is now to be withdrawn from reservation for discharged soldiers only, and opened for application by the general public—preference,

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of course, being given to any discharged soldier who may care to apply when the lands are again opened. It is expected that the bulk of these lands will be offered for general application within the next few months. As set out in Table 2, it will be seen that the lands allotted under the Discharged Soldiers Settlement Act, 1915, during the year totalled 414,867 acres, subdivided into 1,087 holdings, of which 237,746 acres were selected under the special tenures provided by section 4of the Act. The total area proclaimed under the Discharged Soldiers Settlement Act up to the 31st March, 1921, is 1,321,091 acres, of which no less than 437,790 acres were proclaimed during the year, and during the same period seventeen estates, comprising 171,898 acres, subdivided into 643 holdings, were offered by ballot. Owing to the adverse conditions which have been railing lately with regard to some of the primary farming products, a large number of the tenants have been considerably financially embarrassed, and in order to tide them over the present depression the Government has found it necessary to grant postponements of rent where asked for and where sufficient reason could be, shown lor this action. Subject to certain conditions it has also released last season's wool-clip from the lien held over it, in all cases where, the owner wished to obtain advances from the banks or mercantile firms. This has enabled the soldiers to carry on, and it is hoped they will be able to meet their liabilities with the advent of better prices for stock, &c. At the present time there are only six acquired estates, totalling 1,724 acres, being prepared for application by discharged soldiers, and the bulk of this will be offered within the next few months. Financial Assistance. Under the provisions of the Discharged Soldiers Settlement Act, 1915, the sum of £1,500,000 was raised, and under the Discharged Soldiers Settlement Loans Act, 1920, £13,500,000 was trans feared from the Consolidated Fund. The Discharged Soldiers Settlement Loans Act, 1920, also authorized the raising of a further loan of £6,000,000. At the 31st March, 1921, this loan had been subscribed to the extent of £4,239,304. The advances authorized to discharged soldiers at the close of the financial year totalled £17,941,980, against which advances were actually made to the extent of £16,256,786, leaving a balance of £1,685,196 still to be advanced before commitments are equalized. The following statement illustrates the position of commitments in relation to the borrowing authority : — Loan authority— £ Discharged Soldiers Settlement Act, 1915 .. .. 1,500,000 Discharged Soldiers Settlement Loans Act, 1920 .. .. 13,500,000 15,000,000 Discharged Soldiers Settlement Loans Act, 1920 (on account of £6,000,000 loan) .. .. .. .. .. 4,239,304 19,239,304 Commitments.. .. .. .. .. .. ..17,941,980 Balance available for further authorization on Ist April, 1921 .. .. .. .. .. .. 1,297,324 The Discharged Soldiers Settlement Loans Act, 1920, section 8, authorized the transfer of £12,500,000 from the Consolidated Fund and the cancellation of debentures issued in respect of moneys borrowed from this fund. The transfer, however, remains a liability to the Consolidated Fund as if borrowed under the provisions of the Discharged Soldiers Settlement Act, 1915. In addition, section 31 of the Appropriation Act, 1920, authorized the transfer of £1,000,000 from the Consolidated Fund as an investment in the Discharged Soldiers Settlement Account. The expenses of the transfer and of the raising of the amount subscribed to the additional loan of £6,000,000 totalled £212,805 os. 7d. Section 30 of the Appropriation Act, 1920, authorizes the transfer from the War Expenses Account of such sums as may be deemed fit for purposes of investment in the Discharged Soldiers Settlement Account with interest at 4 per cent. So far no transfer has been made. Advances made, on current Account to assist settlers in the purchase of stock and in effecting improvements to their lands during the year under review amounted to £1,374,691, which, together with advances during previous years, makes a total of £2,390,740 advanced under this heading. The balance outstanding at the 31st March, 1921, was £2,134,309. Advances made on the security of farms, market gardens, orchards, &c, on freehold Crown or Native leasehold lands during the year amounted to £3,424,580, which together with £4,855,457 advanced during previous years makes the total under this authority £8,280,(37. The balance outstanding at the 31st March was £8,061,464. With reference to advances for the purchase and erection of dwellings in urban and suburban areas £2,598,341 was advanced during the year, which, together with £2,987,668 advanced during previous years, makes the total under this authority £5,586,009. The balance outstanding at the 31st March was £5,140,703. It is still noticeable that a number of soldiers have applied for and have received advances for the purchase of suburban properties, which they utilize in their spare time as small market-gardens, poultry-farms, &c, to supplement their incomes. During the year under review it was seen that if commitments continued at the then rate the financial authority would be exhausted in a very short time. Cabinet then decided that loans to assist

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in the purchase of completed dwellings and single farms would be discontinued. This had the twofold effect of conserving the funds available for the purpose of subdivision, improving, stocking, &c, and of relieving the housing problem in the main centres. Advances arc still made for the erection of town dwellings, and in many cases for the purchase of building-sites. The decision to restrict advances to finance the subdivision of farms rather than aid soldiers in purchasing single farms has resulted in increasing settlement. In very special cases of hardship, however, advances are still made for the purchase of completed dwellings. In the case of farms, some loans have been authorized for the discharge of mortgages where soldiers were embarrassed by exorbitant rates of interest charged by private lending institutions. With regard to the importation of fencing-wire referred to in previous reports the Department indented a further quantity of 150 tons of wire during the year, but in consequence of the fall in juice of steel products the demand for this wire has been very disappointing. Settlers who had placed orders with the Department in many cases cancelled them before the wire was landed, and the price has been steadily falling since then, and sales have been at a minimum. Provision has been made in the Revenue Account for this year for the writing - off of £3,066 19s. Id., representing loss on live and dead stock purchased by the Department. In the case of some estates offered to the Government, live and dead stock were taken over therewith at reasonable prices at the date on which the estates were acquired. On account of the general fall in price of stock and wool, it is probable that upon allocation to the subsequent selectors it will be necessary to make provision for further losses. The sum involved in the purchase of live and dead stock on estates taken over as going concerns was £57,071 135., of which the sum of £31,956 3s. Bd. was realized iti cash, during the year. Farming operations were carried on by the Department on the Mataikona and Tuturumuri Estates, in the Wellington District. After the properties had been purchased the arrangements entered into were that these operations should continue until the estates were subdivided and settled. The properties were placed under the care of capable managers, and although the businesses were not wound up at the end of the year it is probable that, on account of the fall in the price of stock and wool referred to above, losses will result from these transactions. During the year the sum of £602,189 13s. 6d. was paid out of the Discharged Soldiers Settlement Account to the Consolidated Fund as interest on loans. In last year's report I had occasion to draw attention to the difficulties under which the staff were working, and the consequent complaints of delay in the settlement of accounts for the purchase of stock, chattels, &c. lam pleased to be able to report that complaints such as were received in the past are now very few. The financial stringency has, however, thrown a considerable amount of work on the staff in dealing with the applications for postponement of payment of rent, interest, and instalments, which are particularly numerous. The following statement indicates the number of returned soldiers to whom advances have been authorized, showing under each heading the total amount authorized and advanced from the inception of the Act until the 31st March, 1921 : — Numbor of Advances Advances Returned authorized. made. Soldiers. £ £ Current Account .. .. .. .. .. 3,326 3,206,674 2,390,740 Section 2, Amendment Act, 1917 — Farms, market-gardens, &c. . . .. .. .. 5,331 , 8,512,874 8,280,037 Dwellings, business premises, &c. .. .. .. 9,196 6,222,432 5,586,009 17,853 17,941,980 16,256,786 Repayments of advances .. .. .. .. .. 904,313 Transfers to Realization and other Accounts —Securities in course of realization .. .. .. ... .. 15,996 920,309 Balance outstanding on mortgage .. .. •• £15,336,477 Statement of accounts attached to this report discloses the extent of the financial authorities issued and the actual transactions on the Discharged Soldiers Settlement Account.

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APPENDIX.

REPORTS OF COMMISSIONERS OF CROWN LANDS. North Auckland. (R. P. GREVLLLE, Commissioner of Crown Lands.) The following settlements were opened during the year : — The Koremoa Settlement:, situated on the Northern Wairoa, containing 2908 acres, and sub divided into fourteen sections, of which thirteen have been selected. The land in this settlement was of two classes—flat and highly improved land, purchased from Mr. O'Connor, and cut into areas of from 30 to 40 acres, and an area, of Crown land, formerly a kauri-gum reserve, consisting of swamp and poor hill country. Most of the holdings were arranged so that the settler had a portion of rich flat and a portion of the hills, which would eventually be useful as a run-off for his dry stock. Four of the sections had no areas of cultivated land, but had areas of swamp land, which will become valuable when drained and brought into cultivation, besides which, the land contains deposits of kaurigum of considerable value. Most of the settlers on the block are doing very well, and up to the end of the year had nearly all fulfilled their obligations. The members of the Land Board have visited this settlement, and I have visited it on two or three occasions. It was decided to recommend a remission of rent on the Crown-land sections for two years, until such time as the land can be brought into use. The drainage of the swamp has been taken in hand by the Land Drainage Department, and it is proposed to offer the work to some of the settlers on the block. Considering the short, time the settlement has been in existence the soldiers have made a very good showing, and I feel sure that in most cases they will " make good." The Puni Settlement, situated in West Pukekohe, covers an area of 1301 acres, and is divided into twelve sections. All tha sections were readily selected, and the settlers, after the first year or two, should do fairly well. Waari Hamlet, situated within eleven miles of Auckland City, abutting on the railway-line, is cut up into sixteen small sections suitable for fruit and poultry farms, and was opened for selection last, October. There are several of these sections not yet selected. In order to assist men taking up this land, which is of a refractory nature, a remission of the first two years' rent is granted. It is proposed to have the balance of the sections withdrawn from soldier-settlement and opened for general application. Of the other settlements, the soldiers on Remuera are doing fairly well, and most of them will "make good." Tin; land is of good quality, and most, of it well adapted for dairying. Some of the settlers with lands abutting on the Oniapere Lake have had to receive assistance owing to the flooding of their sections by the rise of the lake-waters during the wet season. However, works arc now in progress for lowering the lake-level, which will lelieve these men of the disabilities under which they are now labouring. During the year good progress has been made with I he formation of the internal roads on this estate, a fair proportion of the work being done by the soldier settlers themselves. Other work is being done by contract. This season, with mere labour available, it is hoped to get the road-formation completed. The settlers on the Pakaraka Block have done better during the past year than previously, and altogether their prospects are very much brighter. Most of the men are working very hard, and will, I feel sure, " make good." The To Pua, Upokonui, and Puketi Settlements are comparatively new. The settlers, however, are slurping well, and have reasonable prospects of "making good." The Waimata Settlement, of 8,000 acres, being the property purchased from Crawford Bros., has proved very successful. The men who have taken up this land are proving very satisfactory settlers, and in the course of the next year or two should be successfully established. The settlers were badly off for road access last winter, but as the result of substantial repairs this winter this road is in much better condition. There is also a new road in course of construction which will very much improve the access. The new road will be completed by the end of this summer. The settlers on the Strcamlands and Waiteitei Settlements have had a fairly hard struggle. Both settlements were recently inspected by the members of the Land Board, and the case of every settler was given careful consideration. In one or two instances it will probably be found necessary to have a revaluation of the land, but in most eases, with a little help and assistance, the settlers will make a success of their farms. The Motutara Settlement, situated on the west coast near Waimauku, on the Helensville line, recently acquired from Sir B. Mitchelson, will be available for selection about, July. The block contains 3,215 acres, divided into eighteen sections, sevi re! of which are suitable for dairying. Applications under section 2 of Discharged Soldiers Settlement Amendment Act, 1917. Up to September, 1920, applications for financial assistance for the purchase of farms and houses were very numerous, but after that date applications for the purchase of houses were not received excepting under exceptional cases of hardship, and the same applied to applications for one-man-farm propositions. Since that date no applications have been received to purchase a farm unless the granting of such would lead to subdivision and the placing of two or more men on a property formerly

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held by one person. The discontinuance of the purchase of houses led to a considerable increase in the number of applications received from soldiers to assist them in the building of new houses. During the year the Land Board considered, under all headings, 2,224 applications from soldiers for financial assistance. Of this number 1,820 were recommended, 282 being for farms, 474 for purchase of dwellings, 361 for the erection of dwellings, and 704 for the purchase of stock, implements, &c, and advances for improvements, the total amount authorized being £1,430,175. Of this sum £248,118 represented advances for stock, implements, manures, improvements, &c. Many applications by soldiers to transfer their house properties to other soldiers have been received. The Board does everything possible to discourage the soldier fiom selling his home, but in most cases there are some special circumstances which make the sale necessary. Every care is taken to ensure that the building of the new houses is well carried out. In the first place, with every application handed in proper plans and specifications are received. These are submitted to a competent builder for examination, and, if necessary, amendments are made. In the event of an advance being authorized the work of erection is carried out under the direction of our own builder, who makes inspections prior to each progress-payment. Generally, four or five inspections are made during the course of erection, the result being that a satisfactory job is generally obtained and the soldier receives good value for the money expended, and the Government security is rendered safe. With the largo amount of advances made in this district under section 2 it has become necessary that there should be frequent inspection and supervision of securities, and it is proposed during the year to strengthen the staff in this respect. The Birdwood Estate. The Birdwood Estate, formerly a kauri-gum reserve, containing 1,100 acies of hilly and undulating gum land, is situated about two miles and a half from Swanson, a small railway-station on the Helensville line, seventeen miles from Auckland City. The area was in past years a famous gumfield, and a first, resort for men stranded in Auckland without money or employment. Since the early " eighties " the field has been dug over and redug, and as a consequence the land was intensely potholed. It became practically exhausted as a gumfield ten years ago, and the, kauri-gum reservation was removed from the land. It was then decided to have the land prepared for settlement. Surveys were made, and the formation of the necessary internal roads was taken in band and successfully carried through. In May, 1919, a start was made with the breaking-in of the area. About 900 acres of the block was then covered with a dense, tangled growth of manuka and hakea, with occasional Pinus insignis interspersed over the area. The thick growth of scrub and the abundance of deep gum-holes on the land made the work preparatory to ploughing slow and costly. Up to the end of the year 865 acres was cleared, 250 acres ploughed and harrowed, a cottage built for the caretaker, and also stables and fencing erected, and a horse-paddock of about 20 acres laid down in grass. Most of the ploughing was done with a tractor, but owing to the broken nature of the ground, the generally rough surface, and the prevalence of deep potholes, which have been filled, the best results from the use of the tractor were not obtained. However, where the surface was at all smooth, good progress was made, and the ground turned over to a great depth in a satisfactory manner. Wherever possible the development-work has been let by contract, with the exception of the ploughing, which was done by men specially employed for the work. The whole of the clearing was let by contract, the work being performed by returned soldiers. Works now in hand are being carried out by contract, more labour being available. Reasonable and satisfactory contracts have been entered into foj.' carting, ploughing, cross-ploughing, and harrowing, fencing, and putting-in of crops. The expenditure in development-work up to the end of the year amounted to £2,792. This year the ploughed area is being fenced, a portion of it cropped, and by the end of the year it, will be ready foi disposal in areas of from 25 to 50 acres as suburban farms suitable for fruit, poultry, pigs, and a few cows. The, land which has been broken in looks in first-class condition. As soon as the sections are open for settlement they will be readily taken up, and the whole of the expenditure on the block in development-work will be recouped. Auckland. (H. M. Skeet, Commissioner of Crown Lands.) Lands opened for Selection. The aggregate area opened for selection during the, year under the Discharged Soldiers Settlement Act was 82,815 acres. Included in these are eight new settlements of land purchased under the Land for Settlements Act. These are — (1.) Hereford Park Settlement (opened 12th April, 1920), situated near Te Puke, in the Bay of Plenty, and consisting of 1,409 acres of mixed grazing and dairying land, in four sections. All of these have been taken up, but two of the settlers who were not sufficiently qualified to handle the land arc giving up their sections. The others are making progress, and the settlement should develop into a success for the right men. (2.) Rangitaiki Settlement (opened 24th May, 1920), is situated on the banks of the Rangitaiki River, in the Bay of Plenty, the land forming part of an area acquired to facilitate the carrying-out of operations by the Drainage Branch. The area available for occupation was 150 acres, in six sections, the land being of excellent quality, and the locality suitable for small holdings, the

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occupiers of which could, if necessary, supplement their living by outside employment. All the sections were taken up, and the settlers are making good progress. (3.) Reporoa Settlement, about twenty-five miles from Rotorua, on the road towards Taupo : Two blocks of this settlement were opened during the year, as the road and drainage operations progressed sufficiently to enable the land to be occupied. Nineteen sections, comprising 3,065 acres, were occupied at the close of the year, and good work has been done by most of the settlers in building, fencing, and otherwise improving their holdings. The cost of conveyance of materials from Rotorua to the settlement has been somewhat of a handicap, but arrangements are being made which will, it is hoped, improve matters in this respect. (4.) Otamarakau Settlement (opened 9th August, 1920), situated on the line of the East Coast Railway, between Matata and Te Puke, in the Bay of Plenty : This consists of about 570 acres of level land of good quality for dairying, with a railway-siding adjoining, so that the settlers have good facilities. There are eight settlers on the estate, three of them being members of Native contingents, for whom some of the sections were specially set aside. Good progress is being made, and some of the settlers have already commenced dairying. (5.) Orongo Settlement, situated at the mouth of the Waihou River, close to Thames, the land being level alluvial land of the same quality as the Hauraki Plains, of which, in fact, it forms part. The whole area of the estate is about 2,082 acres, but a considerable portion requires drainage and other works before it is ready for occupation, and the only portion offered up to the present has been 449 acres, opened on the 17th September, 1920, in eleven sections, which were readily taken up. The difficulty of obtaining building-material delayed these settlers, but several of them commenced dairying during the season, and the whole should get a good start in the coming season and should then make satisfactory progress. (6.) Pukemapou Settlement, situated about fifteen miles from Te Awamutu, and comprising 1,122 acres, in twelve sections, was opened on the 21st February, 1921. It consists of undulating land of good quality, and good swamp, the whole being suitable for dairying. There was a fair demand for the sections, eight of which were occupied at the close of the year, and the disposal of the others were practically arranged. (7.) Kopuku and Kopuku No. 2 Settlements are situated near Mercer, and were acquired under section 3 of the Discharged Soldiers Settlement Act, on the application of the settlers who have taken up the sections. They comprise a total area of 1,576 acres, and provide holdings for fourteen settlers. Building, fencing, and other works have occupied the settlers up to the present, but they should be in a position to start dairying during the coming season. In addition to the foregoing there are the Whatawhata Settlement, of 270 acres, near Frankton Junction, occupied by three settlers ; and the Rotomanuka Settlement, of one holding (82 acres) in the same locality, both of which were acquired under section 3, in the same way as the preceding blocks. Both of these small settlements comprise level dairying-land of first-class quality, and the success of the occupiers is assured. The whole of the foregoing blocks comprised land more or less improved and, with the erection of necessary buildings, fencing, &c, in a condition to yield an early return. The principal blocks of undeveloped Crown land which have been offered during the year are as follows : — (1.) Matamata North Block, of 360 acres, in five sections, opened 22nd October, 1920. This is very good agricultural and dairying land, and, as it is situated close to the railway and midway between two dairy factories, the holdings should, when broken in and grassed, give a good living to the settlers. (2.) Moerangi Block, of which twenty-two sections, comprising 15,255 acres, were opened on the 27th April, 1920, is land of a very different character, being rough and broken hill country, in bush, although it is good grazing-country when properly broken in. Eighteen sections, comprising 10,879 acres, have been taken up, and the settlers have made a good beginning with clearing and grassing operations. (3.) Manawahe Block, consisting of twenty-three sections, comprising 7,976 acres, was opened on the 24th May, 1920 ; it is situated on the north side of Lake Rotoma, between Rotorua, and Matata, and includes partly open fern and scrub land and partly bush. Nineteen sections, totalling 6,020 acres, have been taken up, and good work is being done by the settlers in clearing, grassing, fencing, &c. (4.) A block of twenty sections, containing in all 1,775 acres, on the Hauraki Plains, was opened for selection on the 12th July, 1920, and attracted considerable competition. Some of these sections carried a certain amount of rough feed, but all required a considerable amount of work in clearing rushes, draining, fencing, and erection of buildings. A few of the settlers should be able to dairy next season, but some of the deeper peat sections will be suitable mainly for running young stock until the peat is consolidated. (5.) Ongarue Block, comprising twenty-five sections, containing 15,960 acres, situated eastward from Waimiha, between Te Kuiti and Taumarunui, was opened for selection on the 23rd August, 1920. This block consists of hilly to broken open and bush country, of fairly good quality for grazing. Some of the settlers have been able to make advantageous arrangements for disposing of the milling-timber on their sections, and are commencing to clear and grass. A number of scattered areas of unimproved land in various parts of the district have also been offered, but have not generally attracted much demand, and there are still unselccted about, seventythree sections, comprising 53,000 acres, which have been neglected by soldier applicants, and can

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best be reopened for ordinary civilian selection, and thus do something to meet the unsatisfied demand from others than discharged soldiers. Condition of Established Settlements. Most of the established settlements have experienced a fairly successful year, although the Mangateparu Settlement, near Morrinsville, and the Pakaiau Settlement, in the same locality, have been somewhat severely affected by the unusually dry season at the beginning of the present year, which not only seriously reduced the dairy returns, but also destroyed much of the provision for winter feed. Both of these settlements are, however, beginning to experience the benefit of the renewal of the older pastures, and notwithstanding temporary difficulties their position is materially improved, and if next season is a good one they should recoup their present losses. The Taniwha Settlement, near Te Kauwhata, and Tapapa Settlement, near Hinuera, have been more favourably situated, and are making veryigood progress. The Te Miro Settlement, near Cambridge, cannot be said to be in a satisfactory condition. It consists of fair farming-land, which can be successfully handled by men with some experience and energy, but a number of the original settlers have proved themselves unsuited to the development of holdings of this class. With settlers of the right type there will be every prospect of this settlement ultimately proving as successful as some of the others. In the Bay of Plenty, the Hukutaia Settlement, near Opotiki, where twenty-four settlers are established, is making good progress, and will soon prove its success. The Waiare and Matuku Settlements, between Whakatane and Tauranga, with four and eleven settlers respectively, consist of good dairying-land ; the settlers are making satisfactory progress, and have, good prospects. In the Apata Settlement, near Tauranga, the eight settlers have made good progress with the erection of buildings and other .improvements, and some of them have commenced dairying; this block is in a fair way to prosperous development. The Horahia Settlement, which is practically part of the Hauraki Plains, is in a good position; the holdings average 64 acres in area, and each settler is milking from twenty-five to thirty cows, and carrying a few dry stock, and they are doing well. The Puahue Settlement, near Te Awamutu, which carries twenty settlers, is making very good headway, and has every prospect of success ; the land is of good quality and well situated, and the settlement owes much of its present position to the assistance which the former owner, Mr. W. G. Park, has given to the soldier settlers. The Tahaia Settlement, near Otorohanga, experienced some difficulties at the beginning, but is gaining ground, and there is every reason to anticipate its success in the near future. The smaller settlements, Kaipaki, Mangaotama, Ngahinepouri, and Tainui, in the Waikato, are developing satisfactorily, and will soon be in a prosperous condition. The soldier settlers generally have, of course, suffered from the same disabilities as those which have affected all other farmers in the districts in which they are situated. Although the Department, in placing their orders for materials, has obtained the best possible market quotations, the uniformly heavy cost of such materials has been a serious burden to the undertaking of developing new farms ; while even in the case of improved properties the high cost of manures and seeds during recent years had caused necessary top-dressing or renewal of pastures to be deferred, with the .result that this work has had to be done by the new settlers in order to get the best out of their holdings. The depletion of young stock, which is deplored by all sound authorities, has, of course, caused the price of dairy stock to be very high, and, as the majority of the soldier settlers are going in for dairying, and a good herd cannot be built up without time and expense, some time must elapse before returns reach a satisfactory position. The very dry season experienced in parts of the district has materially decreased the dairy returns, and most of the dairy companies will not make their final payments on the season's output for some time. In the meantime the position of many of the settlers is one of some temporary difficulty, and reasonable consideration must be extended to them until such time as they can meet their liabilities. The majority of them are working well, and, while there are cases in which expenditure has been undertaken out of their returns, which might have been better deferred until their position was more assured, it has in most instances been in the direction of increasing the productive quality of the properties. The numerical inadequacy of the ranging and supervising staff to cope with the volume of work resulting from this development of settlement has made it impossible to exercise the close supervision necessary, or to give the new settlers the direction and advice desirable as to work to be undertaken or expenditure to be incurred. Purchases under Section 2 of Discharged Soldiers Settlement Amendment Ad, 1917. The above remarks will apply equally to the condition of the soldiers settled by private purchase of individual farms, which are scattered over all parts of the district, this fact rendering adequate supervision a matter of extreme difficulty, although in all cases the requirements of the settlers have received attention with as much promptitude as has been possible under the circumstances. The number of soldiers who have thus been assisted to acquire farms in this district totals 692, occupying an area of 213,518 acres, the aggregate amount of advances made to them on instalment mortgage being £1,213,928 18s. Bd., while the majority of them have also received assistance for improving and stocking their holdings. Dwellings. Advances for the purchase or erection of dwellings have been approved in favour of 593 soldiers, the amounts paid out up to the. close of the year being £325,843 ss. 3d. The difficulty of obtaining supplies of building-materials has hampered the applicants, but the inspections which are made by the Rangers during the progress of the work indicate that satisfactory value is being obtained.

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Current Account Advances. The amount of advances made under this head for the year was £297,791 65., bringing the total amount of such advances made since the inception of the scheme to £526,429 2s. 6d. General. The number of applications now being received for purchases under section 2 (now limited to cases which involve subdivision and thus increase settlement) has, of course, decreased considerably, and it is difficult in many cases to reconcile vendors' prices with the valuations obtained, especially at the present time, when, conditions emphasize the necessity for a safe margin of security. Applications for assistance to build are still being received in fair numbers. The demand for Crown lands opened by application and ballot has become strictly limited, except in the case of lands such as the Hauraki Plains, for which there would still be plenty of inquiry ; and the time is evidently arriving when the normal method of opening lands for application by all suitable classes of applicants will have to be resumed, with considerable advantage to the development of the district. Experience and observation have shown that civilian farmers, on holdings adjacent and of similar character to that occupied by returned soldiers, are making good headway with very much less capital than that which the State is granting to the soldiers, and I consider, therefore, that it will be advantageous that civilians should be admitted to all ballots. Hawke's Bay. (W. F. Marsh, Commissioner of Crown Lands.) Twelve new estates, comprising 51,356 acres, and providing 133 holdings, also the George Hunter Gift Block, of 2,785 acres, providing six holdings, were settled by discharged soldiers during the year. Included in the foregoing are two settlements (Rissington and Parinui) acquired under section 3 of the Discharged Soldiers Settlement Amendment Act, 1917, and disposed of, without ballot, to nine soldier selectors who had applied for the purchase as provided by the statute. The gift block referred to of Sir George Hunter, M.P., was generously conveyed to the Crown by the donor as an absolute; gift, to aid the country in solving the problem of settling returned men on the land. In addition to the foregoing, various scattered areas, representing 11,144 acres, were offered. The total area thus made available for settlement by discharged soldiers during the year was 65,285 acres, comprising 143 holdings, the whole of which, except two sections, were immediately taken up. The total area acquired by discharged soldiers and'still held at the close of the year was 199,398 acres, representing 473 separate holdings. The total amount of advances paid out to or on account of settlers for stock and improvements during the year was £93,149. Owing to the curtailment of advances under section 2 of the 1917 Act, operations during the year under that heading, so far as rural lands are concerned, have been almost wholly confined to the financing for the purchase of small areas for intensive cultivation, or for orchards, bee-farms, &c, and a large number of these applications, chiefly from men suffering from war injuries, also tubercular cases, as well as men experienced in that special work, have been dealt with by the Land Board. The chief difficulty experienced, and one too often encountered by the Land Board in dealing with applications under this head, has been to convince applicants that the Board was really studying their interests and safeguarding them against future failure when refusing to countenance prices that were not justified by circumstances or borne out by expert valuation. There has been a steady stream of applications throughout the year for advances under section 2 to acquire small lots and build homes, in preference to obtaining advances to purchase ready-erected houses, which was previously discontinued, and this phase of assistance to establish the men with moderate incomes, especially artisans, in centres has met with no small success, due to the close and careful supervision exercised over each transaction from its inception to the completion of the house and the final payment involved. The successful progress of soldier-settlement on pastoral and agricultural lands received a rude shock during the latter part of the year, and the depression, besides seriously affecting the position of those who had taken up land during the first half of the year, had a marked effect on the large proportion of men who had just begun to weather the strain of the first three or four strenuous years of a settler's life. Fortunately, with very few exceptions, the men are of a, fine type, ready and anxious to undertake all the hard work necessary to firmly establish themselves on their holdings, and, though it may mean rental postponements and judicious nursing, there is no serious cause for anxiety as to the future. There have been a few cases where, from health reasons arising out of war services, or out of unfitness for the life, selectors have had to relinquish their holdings, but the tendency now is for applicants to have been closely identified with farming-work and be physically able to continue the life. Those engaged in breaking in dairying-country have not had such a good year as those on proved lands, and the dry weather and shortage of grass having been largely instrumental for the lack of success. At the same time the improvements effected on these properties have been far in excess of statutory requirements, and this in itself is a sufficient proof of the confidence of the men. Where trouble may be expected is in some cases where undue optimism lead men of comparatively limited means to acquire grazing properties with Government assistance under section 2 of the Act of 1917, and who, in addition to the Government advance, are burdened with a second mortgage in favour of the vendor. It does not seem possible in such instances to extend the same assistance that may be easily granted to Crown tenants, and failures in this class are bound to occur. Inspections of holdings and securities are being carried out as frequently as possible,' and the Supervisor, who takes a very keen interest in his duties, is doing excellent work.

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Taranaki. (H. J. Lowe, Commissioner of Crown Lands.) Lands available under sections 3 and 4 of the Discharged Soldiers Act total 11,270 acres, the number of holdings being forty-eight. The applications received for the year were 249, made up of eight under section 3 and 241 under section 4of the 1915 Act. The lands allotted during the; year were eight under the deferred-payment, conditions and ninety under lease or license, the total area being 21,018 acres. The total lands acquired from the Crown by discharged soldiers and held under deferred payment, cash, or license at the 31st March, 1921, totalled 403, with a total acreage of 146,031 acres. Some 550 soldiers have been assisted to acquire lands or to discharge mortgages over land they already hold, 470 were granted assistance to acquire or erect buildings, and 480 were advanced money to purchase stock or do improvements. Wellington. (G. H. M. McClure, Commissioner of Crown Lands.) Two estates, aggregating 1,017 acres, which were acquired under the Discharged Soldiers Settlement Act, 1915, during the year have been subdivided into sixteen dairy farms, and they will be offered in May and Juno of this year. Twenty-one sections, comprising estates acquired during previous years, containing a total area of 10,841 acres, were balloted for amongst 156 applicants, two being dairy farms and nineteen sheep-farms. An education reserve lying between Palmerston North and Longburn, comprising 34 acres, was subdivided into six sections for workers, who thus could supplement their earnings by dairying in a small way. There were twenty-two applicants for these sections. An area of 6,227 acres, consisting of forest-clad Crown lands where the timber had no marketable value, and milled-out sawmill areas, was subdivided into twenty-four sections and taken up, there being 179 applicants. Ten of these sections, in the vicinity of Owhango and Ohakune, will be suitable for dairying when the bush has been felled and the land grassed. Twenty-four estates, comprising 17,543 acres, were acquired under section 3 of the Discharged Soldiers Settlement Amendment Act, 1917 ; erf these, twenty-two, comprising 16,234 acres, were subdivided and allotted to eighty-six applicants, and six, of an area of 16,738 acres, acquired during the previous year, were allotted to forty-one applicants. The twelve applicants for the two remaining properties will take possession of their holdings in April and May of this year. Eighty-four of the holdings under this section will be dairy-farms, thirty-six will carry sheep, and the remaining seven will be used for mixed farming. Under the provisions of section 2 of the 1917 Act, 195 persons have received financial assistance to purchase farms or discharge mortgages thereon, the area comprised being 21,988 acres ; and 769 persons have been assisted to purchase or erect dwellings, the total number so assisted to date being 770 for farm properties, of an area of 110,711 acres, and 2,096 for purchase or erection of dwellings. Eighteen allotments, comprising 1,759 acres, were surrendered and reallottcd, but two of these were amalgamated with adjoining holdings. In the bush districts in the Retaruke, Whirinaki, Kaiticke, Hunua, Manganui, and Makotuku Survey Districts, situate in the most northern part of this land district, there are 106 settlers that have made selections during the past five years, and as an indication of their progress they have an area, of 16,363 acres in grass, and other improvements, such as fencing and buildings, making a, total value of £98,7f0. The whole of the country that has been put into grass is well stocked with sheep and cattle, and in some instances the settlers have commenced dairying operations. The prospects of these settlers were undoubtedly bright, but, owing to the extreme drop in the value of sheep and cattle and the price of wool, they will not in the near future obtain the returns that were expected. There are 741 settlers engaged in dairy-farming, and owing to the remunerative price that has been paid this season for butterfat the bulk of the dairy-farmers have had good returns, although the season was not too favourable for dairy operations, due to the wet spring and very dry summer and autumn. It is doubtful if the same price for butterfat will be paid next season ; but, even if there should be a reduction, I am of the opinion that most of the men who have been settled under the main Act and section 3of the Amendment Act of 1917 will do quite, well. I cannot, however, say this as regards some of the men who have selected farms under section 2 of the latter Act. As to the men whose farms are wholly devoted to carrying sheep and cattle, they have had anything but a prosperous year, owing to the unforeseen and unprecedented fall in the values of sheep, cattle, and wool, and their prospects for the ensuing year, so far as present values are concerned, are far from encouraging. Since the inception of the Discharged Soldiers Settlement Act and up to the 31st March, 1921, 1,495 discharged soldiers have either been settled on farms or have been assisted to buy farms, the total area involved being 293,352 acres ; in addition to this 2,096 discharged men have been assisted to purchase or build dwellings, making a total number of 3,591 men who have been assisted, at a total cost, of £5,322,338.

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Marlborough. (J. Cook, Commissioner of Crown Lands.) New Selections. Five new estates were subdivided during the year and opened for selection by discharged soldiers, the number of soldiers settled being twenty-two. Two discharged soldiers were settled on small sections in the Flaxbourne Settlement, while a further area in the Opouri Valley was disposed of to an adjoining discharged-soldier tenant. These new settlements are Moorlands, Alberton, Neville, Linkwaterdale, and Goat Hills. Moorlands : This settlement is divided into six holdings, all used exclusively for cropping. The tenants are of a particularly good type, and will, no doubt, " make good." Alberton is divided into four allotments, and is chiefly used for cropping. The tenants are all " making good." Neville : This settlement was allotted to three brothers, and adjoins Alberton, and is yet another agricultural proposition. These three settlers should do well. Linkwaterdale : This settlement is divided into seven allotments, six being dairy farms, and a small area of 5 acres is let as a residential site to a discharged soldier holding adjacent land. These settlers are all doing as well as can be expected. Goat Hills settlement is divided into four allotments. As it is pastoral country, selected in November last, the tenants have had the advantage of being able to stock up at small cost, and should do well when prices are again stable. Established Settlements. Erin a : This settlement has been particularly hard hit by the present slump in the prices of wool and stock. Warnock Settlement contains one settler, who is utilizing the property for dairying ; his prospects appear good. Wither : Sections in this settlement, with one exception, are small holdings for workmen employed as casual labourers in and around the district. The exception is an area of 450 acres, occupied by a good type of discharged soldier, who is cropping the lower portion of the section and is grazing sheep on the balance. This settler will do well. General. Speaking generally, a large percentage of the soldier settlers financed to purchase farms are shaping well, and will " make good." Two only have abandoned their holdings, leaving no trace of their whereabouts ; however, there are several others who are " shaky," requiring careful handling, particularly now that prices for most products are so low. These particular cases are chiefly the inexperienced, who have been assisted to purchase farms, and with a little coaching will " win out " eventually. Frequent visits and encouragement at times like the present are a big help, and if a better means of getting about from place to place were provided less failures would result. With very few exceptions the soldiers who have been assisted to purchase or erect dwellings are fulfilling their obligations satisfactorily. Nelson. (H. D. McKellar, Commissioner of Crown Lands.) Speaking generally, the discharged soldiers who have been settled in this district appear, with a few exceptions, to be making an honest attempt to achieve success. As times improve and markets for various classes of produce become normal the bulk of the settlers should become permanently and successfully established. In this district the chief sources from which the soldiers derive their incomes are marketgardening, dairying, fruitgrowing, and sheep-farming. Those settlers who follow market-gardening are situated for the most part in and around Nelson, and the majority of them are doing well raising tomatoes and vegetables for the early markets. This class of work is very profitable, and the soldiers who have taken it up are for the most part doing well. The soldier settlers who are following dairying for their living have had a good year, and have received the benefits of the high prices which have been paid for butterfat by the various dairy factories. With a year or two such as has just been experienced these men should become firmly established. Those soldiers who have gone on to orchards have not had such a good year. The fruit industry cannot be said, at the present time, to be wholly successful. Shipments of fruit, however, which were, sent Home this season realized good prices, and if a, market can be established in the Old Country and present prices maintained the soldier settlers on orchards may look forward to much better times. Settlers engaged in sheep-farming are experiencing a very trying time, and in most cases will require relief. Their wool is still in the sheds and their surplus stock unsold. As this is their only source of income, they would be courting disaster by selling at the present low prices. The Land Board has dealt with a number of applications from sheep-farmers for postponement of their payments, and where it has been found that the settlers are doing their best to make a success the Board has invariably recommended that relief be granted, being of the opinion that with a little assistance in this direction they will be enabled to carry on notwithstanding the difficulties now being encountered. Generally the settlers are working hard and are keen to get on, and with temporary relief in cases of genuine hardship they should become permanent and successful settlers, able to discharge all their obligations.

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Discharged soldiers who have been financed into dwellings are practically all meeting their payments as they fall due. It is regretted that a few who purchased before prices had risen to their present level have been tempted to sell their properties for the sake of the profit they were able to secure. The majority, however, seem well satisfied with the comfortable homes they have been able to obtain under the scheme. Westland. (R. S. Galbraith, Commissioner of Crown Lands.) During the year eleven discharged soldiers took up Crown land sections, twenty-one were assisted under section 2 of the Discharged Soldiers Settlement Amendment Act to acquire properties, and thirty-two to purchase dwellings. Four instalment mortgages were paid off in full (£4,975), and four current account (£724). At the 31st March there were 100 soldiers with farms and fifty-seven with dwellings on the books. No estates have so far been purchased under the Lands for Settlement Act for discharged soldiers in this district, and the transactions have been chiefly advances to assist, soldiers to acquire individual properties under section 2 of the Act, and to finance them for stock, improvements, &c. The curtailment of advances for purchase of farms except in cases involving a subdivision, and restrictions as to purchase of existing dwellings, have had the effect in this district of practically precluding advances except for stock, chattels, and. improvements, as it is seldom the returned men can arrange with a vendor to subdivide, and the cost of building a new house at the present time is greater than most of the soldiers are willing to burden themselves with. The more recent advances have therefore been almost entirely for stock and improvements to those already on the land. With few exceptions the mortgagors have met their obligations to date;, and the position as to postponements and arrears is, I consider, very satisfactory. The Crown Lands Rangers' inspections and reports on the properties held by the soldier settlers show that practically all are doing well. A few are finding it a hard struggle to meet their obligations, but it is considered that they will eventually overcome their initial difficulties. Those engaged in dairying are generally doing well and seem well satisfied with their prospects, especially those who have been some, time on their farms, who should certainly succeed. With the men more recently established it is perhaps too soon to form a definite opinion, but on the whole there is every reason to be satisfied with the present condition of soldier-settlement in this district. Canterbury. (G. H. Bollard, Commissioner of Crown Lands.) The settlement of discharged soldiers on the land has continued to proceed actively in this district during the past year. During the year fifteen, estates were acquired for soldier-settlement, comprising 117 lots, with an area of 20,636 acres, for which a sum of £321,000 was paid. In addition to the above, six miscellaneous Crown and national-endowment sections were opened for selection, comprising 4,205 acres, at a value of £8,370. Of these, twenty-four lots have not been selected ; twenty-two of these were specially acquired for T.B. soldiers, but the men were not satisfied with the situation. There will be no difficulty in disposing of them when the reservation is lifted. One pastoral run was subdivided, and allocated to two discharged soldiers and one civilian, during the year. Despite the unfavourable season and slump in stock, &c, the soldier settlers in this district, are showing an indomitable spirit and are in most cases optimistic regarding their future prospects. The postponement of payment of rent in genuine cases of hardship has been a blessing to settlers, and is an incentive to future work. With a few exceptions the soldier settlers in this district are practical farmers, hardworking and industrious young men, and I feel certain most of them will make a success of their undertaking. The fact that improvements far exceed requirements testifies to the industry and energy of the settlers. A noticeable feature is the substantial and up-to-date improvements being effected by the soldier settlers. There is evidence of splendid progress being made in all settlements, but particularly in dairying districts. Although the prices of many products have declined a good deal, the selectors of first-class land are still doing fairly well, they being in a position to produce a variety of saleable products. The selectors of grazing-land have been less fortunate, the prices of sheep and wool having declined enormously. On Ben Ohau and Rhoboro Downs, for instance, the settlers were obliged to pay high prices for stock, and so far very few of them have disposed of their lambs and wool, preferring to hold them over until prices advance somewhat. Settlers relying on purely pastoral farming will require lenient treatment for the time being. It is to be noted that, judging from the manner in which payments are coming in, settlers who purchased their holdings with the aid of advances under section 2 of the Discharged Soldiers Settlement Amendment Act, 1917, appear to be doing much better so far than those who took up sections in the various blocks purchased and cut up for soldiers. This, of course, is to be expected at the present stage, as the former in most cases took up improved farms in going order, and in addition many of them were started off with advances for stock, implements, &c. In the case of a good many of the blocks purchased and subdivided, indications are that the rents will press heavily on the soldiers until their holdings are more developed, partly owing to the present excessive cost of implements, materials, and labour for building and fencing. The cost of these latter items, however, is now tending to fall.

14

15

C—9.

The Land Board dealt with a very large number of applications under section 2 of the Discharged Soldiers Settlement Act, 1917, the amount applied for being nearly £1,000,000 over an area of approximately 66,000 acres. The amount recommended by the Board for approval was £589,000. The work in this connection has increased, as so many applications are now received for erection of dwellings, necessitating very careful supervision of plans and specifications, and inspections for progress-payments. Otago. (R. T. Sadd, Commissioner of Crown Lands.) The following subdivisions of pastoral runs and estates purchased have been dealt with during the past year : Kyeburn Run (nine subdivisions) with an area of 32,776 acres, has all been selected, and the selectors have erected fencing and are gradually getting the country stocked up. Puketoi Run (six subdivisions), total area 34,340 acres, all selected. Ida Valley Run (one subdivision) area 20,900 acres, selected. Moutere Run (one subdivision) 7,100 acres, selected. Moa Flat Downs (three subdivisions) allotted to the soldiers with insufficient areas on Westcott Settlement. The Pukenui, Tilverstowe, Glenn, and Arnmore Settlements, in North Otago, have all been offered and selected. Wairuna Settlement, 9,372 acres, was not all selected at the ballot, but is gradually being taken up. Poplar Grove, 1,363 acres, has nearly all been selected. Dalmain was all selected at the ballot, but one of the sections has since been surrendered. Kelso Settlement, near Heriot, area 723 acres, of rich dairying-land, was offered in April, but failed to attract any applicants ; four out of the five sections have since; been selected. Pukeawa Settlement, near Balclutha, area 2,700 acres, was offered in May, but only half the area was selected. The prospects of the soldiers recently settled on pastoral lands only suitable for sheep are not good, and will require careful treatment to tide them over a time of difficulty ; those placed on land suitable for dairying or cropping have a much better chance of making good. The advances made under section 2 of the 1917 Act have a good margin of security, and as most of them are on medium-sized farms suitable for mixed farming they should have no difficulty in making a success of their holdings. The Inspector of Securities is carefully inspecting and looking after the houses on which advances have been made, and generally this class of business is on a good safe footing ; a few have failed to make good," and in a few cases it has been necessary to have the property transferred or realized. Taken as a whole the securities are very good, notwithstanding the present depression —inflated values of other parts not applying to this district, where even at the present time ready-built houses can be purchased for better value than the price for which a new residence can be built. The Supervisor has had a very busy year, and finds it difficult to give sufficient attention to all the settlers scattered over such a large area ; he reports favourably on the whole with regard to the settlers' prospects, especially those engaged in dairying and grain-growing. He has assisted the dairy-farmers in culling out useless cows, and advisory work in connection with care of herd and selection of bulls. The other stock has also been considerably improved by culling, and, although the market value is now very low, the quality is of a higher standard, and will still improve. Southland. (T. Brook, Commissioner of Crown Lands.) The purchase of private land with Government financial assistance was the method of selection most favoured by discharged soldiers in this district, and when advances for this purpose were restricted to cases of subdivision there was an immediate reduction in the number of applications received. All the land acquired for soldier settlement under the Land for Settlements Act has been disposed of, but fewer applications were received than were expected, and it, is difficult to account for the marked preference for private purchases otherwise than as being the result of persuasion on the part of vendors and their agents. Two settlements, Strathvale and Crichton Park, were made available for selection during the year. The former, comprising nine dairy farms, was disposed of by ballot, and the lessees will be fully prepared for milking when next season opens. Crichton Park, containing 2,152 acres, was acquired under section 3 of the Discharged Soldiers Settlement Amendment Act, 1917, and disposed of in six allotments suitable for mixed farming. Two of the selectors purchased for cash, and one on deferred payment, while the other three took special-tenure leases. On the earlier soldier settlements the initial difficulties which confront all new selectors are being overcome, the energetic manner in which the renewing of pastures and other improvement works have been taken in hand being most encouraging. Drought prevailed in a few localities last year, and affected the prospects of a small number of our lessees. Those who suffered most in this respect are engaged in mixed farming, and they have had the additional burden of a poor market for their produce. Lessees and mortgagors generally are making their payments in a satisfactory manner. Most of the defaulters an; owners of residential properties under mortgage to the Government, and a small number of these seem determined not to pay except under pressure. Leniency is wasted upon them, and the only reasonable course to pursue is to safeguard the country's interests by taking early action under the powers of mortgage.

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16

TABLE 1. Area of Land proclaimed for Settlement under the Discharged Soldiers Settlement Act, 1915.

Note.— During the year the Proclamations setting aside 10,488 acres of Crown land and 5,502 acres of settlement land were revoked

Under Section 3 of the Act. (Ordinary Tenures.) Under Section 4 of the Act. (Special Tenures.) Total Area iroclaimed. District. For the Year ended 31st March, 1921. Total to 31st March, 1921. For the Year ended 31st March, 1921. Total to 31st March, 1921. For the Year ended 31st March, 1921. Total to 31st March, 1921. Ordinary Crown Lands — North Auckland Auckland Hawke's Bay Taranaki Wellington Nelson .., Marlborough Westland Canterbury Otago Southland Acres. 103 6,873 4,095 7,107 Acres. 1,575 29,916 23,531 12,831 884 20,728 Acres. 12,778 41,676 3,505 4,940 3,762 169 Acres. 15,008 89,897 92,481 18,403 02,182 4,058 5,268 480 798 30,199 8,429 Acres. 12,778 41,779 10,378 9,035 3,762 7,107 169 15,900 545 60,506 1,744 Acres. 17,183 119,813 110,012 31,291 03,000 24,786 5,268 22,345 798 118,111 10.125 15,900 21,865 545 5,602 1,390 54,904 354 87,912 1,696 Totals 89,342 200,938 74,367 327,803 163,709 528,801 'heviot Estate, Canterbury.. 3,350 3,356 t and for Settlements — North Auckland Auckland Hawke's Bay Taranaki Wellington Nelson Marlborough Westland Canterbury Otago Southland 1,187 707 1,187 4,204 0,412 43,790 15,011 8,717 18,382 6,754 14,894 43,482 56,183 18,456 36,750 22,461 14,585 4,204 6,412 43,790 15,011 8,717 19,509 6,754 14,894 43,482 50,183 18,450 37,468 23,648 14,585 10,241 44,661 17,652 2,535 18,678 29,930 1,088 42,193 41,783 5,674 18,678 40,171 1,088 86,854 59,435 8,209 Totals .. 11,428 66,742 152,960 296,467 164,394 363,209 National Endowment — North Auckland Auckland Hawke's Bay Taranaki Wellington Nelson Marlborough Westland Canterbury Otago Southland 5,746 19,802 3,732 899 1,000 17,880 30,060 3,732 2,826 899 13,465 5,746 19,862 3,732 899 1,000 17,880 30,000 3.732 2,826 899 13,463 660 21,200 50,258 330 5,887 209,567 134,216 6,593 000 21,200 56,258 330 3,887 209,507 134,216 0.593 Totals .. 109,087 425,725 109,687 125,725 Orand totals 093,105 227,333 627,686 437,790 1,321,091 210,457

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3—C. 9

TABLE 2. Applications received and Land allotted during the Year ended 31st March, 1921, under the Discharged Soldiers Settlement Act.

Lands allotted during the Year. Number of Applications received during the Year. Under Sectli ! Under Section 3 of Act (Ordinary Tenures). Under Section 4 of Act (Special Tenures). Totals. District. Sale (including _ . _ , Deferred Pavment). Under Under Section 3 Section 4 . : of Act of Act m , „ , (Ordinary (Special Total - J ",". m , b f ■ Tenures). Tenures). of Allot- Area, ments. \ Lease and License. Total. Sale (including Deferred Payment). Lease and License. Total. I Sale (including Deferred Payment). Lease and License. Total. Area. Number of Allotments. Area. Number of Allotments. Number Number Area. of Allot- Area. of Allot- Area. ments. I ments. Number : Number Number! Number of Allot- Area, of Allot- Area, of Allot- Area, uf Allotments, ments. nient--. ments. Area . Ordinary Crown Lands — North Auckland Auckland .. . . Hawke's Bay Taranaki Wellington .. Nelson .. Marlborough Westland Canterbury Otago Southland 4 4 20 8 8 42 "34 8 25 559 120 85 120 j 49 S 9 1 33 s 29 563 140 93 120 8 49 42 43 41 3 Acres. 1,062 3 4 2 5 Acres. 1,150 958 1,138 2,114 4,339 Acres. 6 2,212 4 958 2 1.138 5 2,114 6 4,339 4 14,741 Acres. 2 383 18 2,233 3 265 1 3 Acres. 20 5,491 97 30,895 6 2,283 35 6,956 28 5,380 ■ ! Acres. 22 5,874' 115 33,128 6 2,283 38 7,22l| 29 5,383 : 5 18 3 1 2 Acres. 1,445 2,233 265 3 200 j I Acres. 23 6,641 101 31,853 8 3,421 40 I 9,070 28 j 5,380' 6 ! 4,339 3 j 1,651 4 I 14,741 1 252 13 16,418 7 I 986 Acres. 28 8,086 119 34,086 8 3,421 43 9,335 29 5,383 6 4,339 3 I 1,651 4 14,741 1 I 252 13 16,418 9 1,186 6 3 1,651 3 1,651| 4 14,741 1 252 6 3,006 7 986 1 252: 6 3,006 9 1,186 7 13,412 7 13.412 2 200 Totals 128 128 1,000 |l,128 1,000 ll 1,128 1,062 31 37,852 34 38,914 26 3,084 203 56,900 229 59,984 29 4,146 ; 234 94,752 2H3 98,89! Cheviot Estate, Canterbury Settlement Lands — North Auckland Auckland Hawke's Bay Taranaki Wellington Nelson Marlborough Westland Canterbury Otago Southland 4 4 84 84 483 483 430 430 156 156 292 292 4 8 1,112 1,112 84 483 430 156 292 4 1,112 1 703 236 47 84 483 430 156 292 8 1,112 703 236 j 47 .. .. 4 1.393 4 •• 1,393 2 4 5 1 11 149 137 668 44 6,904 123 15,346 123 44,523 50 11,144 166 45,572 3 3,792 24 7,329 46 6,915 127 15,495 123 44,523 55 11,281 166 45,572 4 4,460 24 7,329 2 4 5 1 11 149 137 668 44 6,904 123 15,346 123 44,523 50 11,144 166 45.572 7 5,185 24 7,329 46 6,915 127 15,495 123 44,523 55 ' 11,281 166 45,572 8 I 5,853 24 7,329 .. 703 703 236 236 j 47 47 9 3,223; 9 3,223 1 I 1 7 4 107 1,240 96 20,632 51 13,853, 15 2,070 97 j 20,636 52 13,960 22 I 3,310 1 1 7 4 107 1,240 96 20,632 60 17,076 15 2,070 97 20,636 61 17,183 22 3,310 .. Totals 4 3,547 3,551 4 3,547 3 3,551 13 4,616 13 4,616 VI 2,316 695 171,165; 716 173,481 21 2,316 708 175,781 729 178,097 i National-endowment Lands North Auckland Auckland Hawke's Bay Taranaki Wellington Nelson Marlborough Westland Canterbury Otago Southland 48 ! 48 15 .. 15 45 15 7 .. 7 I 48 15 7 7 583 5 45 7 48 15 45 7 7 7 583 5 40 I 6,219 15 3,477 .. 7 5,989; 40 6,219 15 3,477 7 5,989 .. 878 ■ - .. ■■ 1 878 40 6,219 15 3,477 1 878 7 5,989 6 2,747 1 3,403, 22 114,683 3 476J 411 6,21! 15 3,47' 1 87c 7 5,98! li 2,74' 1 ; 3,40; 22 114,68; 3 471 .„ .. ■• ... 7 .. 7 7 7 583 . . : 583 5 5 li 2,747 6 2,747 1 ; 3,403 1 3,403 22 114,683 3 476 22 114,683 3 476 Totals 665 665 52 52 717 717 93 133,591 93 133,5911 2 4,281 2 4,281 95 137,872 95 137,87: Grand totals .. ' 797 4,599 a 4,599 5.396 ! 5.396 i 140 177,12l' 47 i 5,400 900 232,346 947 237,746 50 ' 6,462 i 1,037 408. 405 1 1,087 '414,86' 797 3 1,062 137 176.059

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18

TABLE 3. Total Lands acquired from the Crown by Discharged Soldiers, and held at the 31st March, 1921.

Statement of Advances authorized from Inception of Act to 31st March, 1921.

NOTE. The numbers above represent the number of loans authorized. A larijc proportion of soldiers who received advances to assist in the purchase of farms and discharge of mortgages also received advances on ('iiricnl \croim( tor stork &<; The actual number of soldiers to whom advances had been authorized at 31st March was 17,853.

Land District. Sah; (ir ucluding Deferred T ... p *. Lease and Lusensc Area. Price. Number. Area. Lease and License. e. Annual Rental. Totals. Number. Area. Number. Unde er the Disi charged Soldiers Settlement Ad, 1915, and Acres. | £ Acres. 2,021 2,230 276 55,762 2,575 12,740 558 102.585 I 195 334 133,390 998 10.080 152 38,149 60 2,460 ' 582 139,379 1,2:15 .'!S0 ' 31 23,843 58 19,812 118 100 29 25.175 201 8,120 303 559,919 807 14,440 189 249,658 2,755 5,640 108 27,233 Amendme'. £ 13,409 •".1.028 50. 12.'; 12,355 82.207 1,808 0.550 355 17,048 20,206 6,202 I*. North Auckland . . Auckland Hawke's Hay Taranaki Wellington Nelson Marl borough Westland Canterbury Otago Southland 9 33 3 12 8 3 I 10 11 16 285 591 337 164 590 34 58 30 313 203 124 Acres. 57,783 105.160 133.391 39,117 139,439 25,078 19,812 25,323 560.120 250,525 29,988 Totals 109 10,861 57,045 2,620 1,374,905 5 1,374,905 280,357 280,357 2,729 1,385,766 Under other Acts. (This in* at audio eludes lands selected at ordinary ballots, lea m, and holdings acquired by transfer or oth ary ballots, h transfer or 0 eases and li otherwise.) ises and li herwise.) Icenses pu\ rchased North Auckland . . Auckland Hawke's Bay Taranaki Wellington Nelson Marlborough Westland Canterbury Otago Southland I 9 2 I I 51 260 30 6,261 1,082 1,440 196 99,193 119 57,185 298 700 237 106,586 I 128 39,870 45 38,672 138 94,343 54 13,837 ■243 238,711 6,264 99. 193 57,185 106,586 39,870 38,672 94,343 13,837 238,711 345 1.777 J1,135 6,215 30,916 1,686 4,789 479 25,886 345 1.777 11,135 6,215 30,916 1,686 4,789 479 25,886 31 205 119 239 129 45 138 54 243 6,315 100,275 57.185 106,884 39,871 38,672 94,343 13,837 238,741 I 127 8 21,354 21,354 664 664 9 21, LSI Totals 14 14 1,559 2,400 1,198 716,045 716,045 80,892 86,892 1,212 717,604 Grand totals . . I2.'i I2.'i 12,420 59,445 3,818 2,090,950 ! 2,090,950 367,249 367,249 3,941 2,103,370

Curroi A ill it Account ;horities. Amount. Fai Aui No. rms, Ac, Dwellings, &C, ,., thoritles. Authorities. Amount. No. Amount. No. >tals. No. Amount. North Auckland Auckland .. Hawke's Bay Taranaki .. Wellington Marlboroagh Nelson VVostland . . Canterbury Otago Southland. . 1,017 1,186 453 640 989 121 245 82 435 :S7O 228 £ 473,790 694,765 269,153 450,984 646,202 54,712 140,181 31,688 203,439 138,077 108,788 1,055 780 240 559 744 159 423 78 689 838 266 £ £ 1,621,961 2,139 1,569,334 4,211 1,246,973 558 393,881 2,524 439,812 739 532,698 1,432 1,014,903 426 309,303 1,625 1,358,048 1,980 1,434,690 3,713 287,705 L33 88,936 413 554,344 171 106.173 839 84,801 52 25,080 212 1,111,309 1,641 1.035,832 2,765 376,083 893 I 497,895 1,601 416,935 464 228,610 958 J 3,665,085 2,335,619 1,241,663 1,775,190 3,438,940 431,353 800,698 141,464 2,350,580 1,007,055 754,333 5,766 3,206,674 5,331 8,512.871 9,196 6,222,432 20,293 17.941,980

19

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4—C. 9

Statement of Mortgage Transactions.

PRINCIPAL. INTEREST. • DISTRICT. Balance at 31st March, 1920. Advances during Year. Repayments 1 .. during Year. Transfers to Realization and other Accounts. Balance on Mortgage at 31st .March, 1921, including InstalI ments postponed. Balance at 31st March, 1920. Charges during Year. Losses, Rebates Receipts and Remissions, Balance at during Year. and Transfers to 31st March, 1921. other Accounts. „ North Auckland — £ s. d. Current Account .. .. 89,936 2 7 Farms, orchards, &c. .. .. 837,497 9 2 Dwellings, business premises, &c... 703,410 18 2 £ s. d. i 89,936 2 7 837,497 9 2 703,410 18 2 £ s. d. I £ s. d. 216,307 18 6 19,216 14 5 737,110 9 1 23,941 19 0 656,122 13 5 77,636 14 10 £ s. d. £ s. d. 287,027 6 8 1,550,665 19 3 1,281,896 16 9 £ s. d. £ s. d. £ s. d. 2,698 5 9 9,435 16 9 3,921 10 0 8,287 5 7 45,205 12 7 34,040 7 10 4,325 19 2 , 47.439 2 8 46.015 6 6 £ s. cl. 2,009 0 6 3.561 19 2 £ s. d. 8,212 12 6 17,443 9 10 2,187 16 2 Total .. .. 1,630,844 9 11 1,630,844 9 11 1,609,541 1 0 120,795 8 3 3,119,590 2 8 15.311 10 6 102.080 12 0 83,977 4 4 5,570 19 8 27,843 18 6 Auckland — Current Account .. .. 182,840 2 6 Farms, orchards, &c. .. .. 731,927 12 5 Dwellings, business premises, Sc. .. 122,182 3 8 182,840 2 0 731,927 12 5 122,182 3 8 303,844 10 8 28,471 19 9 475,592 12 9 23,876 1 5 202,925 4 7 17.593 17 1 5,937 2 7 452,275 10 10 1,183,644 3 9 307,513 11 2 6,488 10 4 16,323 8 4 12.830 11 1 36,629 10 2 1.479 12 0 7,948 16 4 9.314 7 10 34,821 0 7 7,864 1 1 776 12 11 12,720 17 11 2,009 15 1 12,629 5 7 494 13 9 1,069 13 6 Total .. 1,036,949 18 7 1,036,949 18 7 ; 982,362 8 0 69,941 18 3 5,937 2 7 1,943,433 5 9 20,798 13 5 60,901 14 10 51,999 9 6 3,281 1 9 26.419 17 Hawke's BayCurrent Account .. .. 78,266 7 7 Farms, orchards, &o. .. .. 271,436 6 0 Dwellings, business premises, &c. .. 246,347 18 0 78,266 7 7 271,436 6 0 246,347 18 0 96,377 19 8 9,805 7 7 164,525 10 0 20,251 5 2 230,370 19 5 31,660 0 1 900 15 6 163,938 4 2 415,710 10 10 445,058 17 4 1,128 11 9 2,926 19 7 2.754 11 5 5,989 1 0 13,631 5 4 12,724 16 0 4,3S8 3 7 13,458 19 10 13.865 12 4 66 1 1 2,663 8 1 923 15 5 2,175 9 8 979 7 0 634 8 1 Total .. .. 596,050 11 7 596,050 11 7 491,274 9 1 61,716 12 10 1,969 3 6 5.473 5 10 900 15 6 |1,024, 707 12 4 6,810 2 9 32,345 2 4 31,712 15 9 .\ i Taranaki — Current Account .. . . 88,120 1 9 Farms, orchards, &c. .. .. 540,614 1 9 Dwellings, business premises, &c. .. 129,138 15 7 88,120 1 9 219,389 9 10 23,060 18 11 540,614 1 9 ! 468,774 6 8 12,371 13 2 129,138 15 7 i 155,534 7 5 18,367 1 10 284,448 12 8 997,016 15 3 266,306 1 2 1,088 19 7 5,845 16 6 1,464 18 7 9,619 3 4 28,580 17 2 6,727 18 2 4.363 18 2 23.106 6 5 7,201 15 8 6,344 4 9 1,504 17 4 ; 9,815 9 11 488 10 5 502 10 8 Total .. .. 757,872 19 1 757,872 19 1 843,698 3 11 53,799 13 11 1,547,771 9 1 8,399 14 8 44,927 18 8 34,672 0 3 1,993 7 9 16,662 5 Wellington - Current Account .. .. 233,326 15 9 Farms, orchards, &e. .. .. 776,972 1 2 Dwellings, business premises, &c. . . 667,467 0 3 284,218 7 11 26,882 5 11 523,685 10 0 24,867 19 0 584,343 3 4 70,472 0 3 1,695 16 3 488,967 1 6 1.275,789 12 2 1,181,338 3 4 7,919 1 4 10,684 19 3 917 5 5 18,425 10 10 36,154 4 4 45.348 15 2 10,146 14 3 31,895 15 0 40,699 3 1 2 1 9 2,472 1 11 4,273 13 2 16,195 16 2 12,471 6 8 1,293 4 4 Total .. .. 1,677,765 17 2 1,392,247 1 3 122,222 5 2 1,695 16 3 2,946,094 17 0 99,928 10 4 ! 82,741 12 4 6,747 16 10 29,960 7 2 19,521 6 0 Marlborough — Current Account .. .. 22,299 13 0 Farms, orchards, &c. .. .. 198,691 19 3 Dwellings, business premises. &e. .. 49,755 7 10 17,404 6 7 84,344 8 5 26,991 6 10 j 1,513 14 4 1,564 0 1 9,023 18 0 A 18 7 0 j 38,171 18 3 -281,472 7 7 67.722 16 8 265 0 8 4,285 19 7 10 9 5 1,496 3 4 7,278 6 4 2,860 1 0 1,130 11 7 9,033 5 11 2,445 9 9 2 1 3 772 1 1 288 16 0 628 11 2 1,758 18 11 136 4 8 Total .. .. j 270,747 0 1 128,740 1 10 12,101 12 5 18 7 0 387,367 2 6 4,561 9 8 11,634 10 8 12,609 7 3 1,062 18 4 2,523 14

C. 9.

20

Statement of Mortgage Transactions— continued.

PRINCIPAL. INTEREST. DISTRICT. Balance at 3lst March, 192(1. Advances during Year. -Repayments during Year. Transfers tn Balance on Mortgage other Accounts. ments postponed . Balance at 31st March, 1920. Charges during Year. Eeeeipts during Year. Losses, Rebates, and Remissisns, Balance at and Transfers toj 1st March, 1921. other Accounts. Nelson — £ s. d. £ s. d. Current Account .. .. | 56,010 2 0 53,487 4 5 Farms, orchards, &c. .. .. 325,110 2 5 223,43116 8 Dwellings, business premises, &c. .. 58,427 5 10 39,510 18 0 £ s. d. 53,487 4 5 223,431 16 8 39,510 18 0 £ s. d. 6,953 17 2 14,438 4 0 10,971 13 6 £ s. d. £ s. d. 682 19 11 101.860 9 4 1,650 0 0 532,453 15 1 86,966 10 4 £ s. d. £ s. d. £ s. d. 845 4 5 4,09S 5 1 2,630 12 4 3,896 0 4 16,630 13 2 14,923 1 8 692 15 7 2,692 2 0 2.862 2 10 £ s. d. £ s. d. 23 4 4 2,289 12 10 1,622 18 3 3,980 13 7 324 17 2 197 17 7 Total .. .. 439,547 10 3 316,429 19 1 316,429 19 1 32,363 14 8 2,332 19 11 721,280 14 9 5,434 0 4 23,421 0 3 20,415 16 10 1,970 19 9 6,468 4 0 Westland— Current Account .. .. 10,442 11 3 I 14,724 12 11 Farms, orchards, &c. .. .. 59,003 5 6| 24,659 14 6 Dwellings, business premises, &c. .. 7,404 10 0 15,810 0 0 14,724 12 11 24,659 14 6 15.810 0 0 2,695 1 8 5,534 7 8 200 10 10 22,472 2 6 78,128 12 4 23,013 19 2 99 18 10 723 5 2 67 18 3 i 850 1 3 2,668 1 11 501 18 10 665 18 8 2,639 6 2 444 13 6 237 15 2 39 10 0 284 1 5 514 5 9 85 13 7 Total .. .. 76,850 6 9: 55,194 7 5 8,430 0 2 123,614 14 0 891 2 3 4,020 2 0 3.749 18 4 277 5 2 884 0 9 Canterbury — Current Account .. .. I 62,924 14 3 81,386 17 8 Farms, orchards, &c. .. .. 618,047 11 3 443,261 3 5 . Dwellings, business premises, &c. .. 527,649 17 9 391,373 17 5 6,490 3 2 38,995 16 0 88,269 18 2 507 4 6 : 137,314 4 3 266 18 7 ,1.022,046 0 1 . . I 830.753 17 0 828 19 0 I 4,979 3 0 6,322 18 4 I 31,131 15 5 6,989 18 4 23,805 18 6 3,327 15 0 61,15 5 30,893 3 5 2,264 15 4 27,851 15 1 2,115 16 3 2,418 11 7 4,296 15 0 828 5 6 ' Total .. .. 1,208,622 3 3| 916,021 18 6 133,755 17 4 774 3 1 jl,990, 114 1 4 14,141 15 8 59,916 16 11 62,072 13 6 4,442 7 0 I 7,543 12 1 4,442 7 0 Otago — Current Account .. .. 56,075 18 3 46,683 14 5 Farms, orchards, &c. .. .. 186,940 1 1 153,709 17 6 Dwellings, business premises, Ac. .. 289,243 19 0 208,486 1 6 12,909 11 10 6,406 15 3 38,747 4 1 89,850 0 10 j 334,243 3 4 458,982 16 5 1,075 9 1 3,617 0 3 2,104 15 11 2.494 16 2 8.688 5 6 9,489 18 10 4,620 5 0 13,207 10 5 15,907 4 1 8 19 3 j 2,578 14 2 637 10 4 ! 1,055 12 6 1,717 15 0 , 202 16 4 Total .. . 532,259 18 4 408,879 13 5 58,063 11 2 883,076 0 7 8,190 10 3 25,512 16 2 27,501 18 10 2,364 4 7 3,837 3 0 Southland — Current Account .. .. 38,919 18 3 40,865 18 6 Farms, orchards, &c. .. .. 1284,056 2 8 125,484 5 6 Dwellings, business premises, &c. .. 126,209 15 10 : 86,871 17 4 11.802 11 11 19.247 5 1 21,931 13 10 67,983 4 10 390.293 3 1 191,149 19 4 512 16 0 2,690 0 5 -'.219 17 4 3,380 2 11 12,668 10 11 14,046 11 10 641 4 1 7.192 2 9 7,083 9 5 0 10 7 1,245 12 2 627 17 2 982 8 6 756 9 10 122 0 3 Total .. .. I 449,185 16 9 253,222 1 4 52,981 10 10 649,426 7 3 4,534 3 0 22,550 14 1 23,349 IS 7 1,873 19 11 1,860 18 7 • Summari 22,950 16 P 77,523 13 7 44,214 4 8 61,678 14 6 239,267 2 10 218.347 17 6 23,964 17 3 170,449 1 10 172,240 13 4 /• Current Account .. .. .. 919,162 7 2 1,374,691 1 1 Farms, orchards, &c. .. .. 4,830,296 12 8 3,424,579 14 6 Dwellings, business premises, &e. .. 2,927,237 11 11 2,598,340 9 3 1,374,691 3,424,579 '. 2,598,340 7,397,611 1 1 149,802 6 8 I 14 6 191,495 5 10 9 3 384,874 12 6 4 10 726,172 5 0 i 9,742 5 9 1,916 18 7 12,134,308 15 10 18,061,464 2 9 5,140,703 8 8 941 6 7 55,318 19 1 15,700 2 7 66,897 17 3 14,912 15 1 7,260 10 8 Grand totals .. .. 8,676,696 11 9 7,397,611 4 10 1,659 4 4 |15,336,476 7 3 108,594 8 6 487,239 18 3 434,802 15 6 31,554 4 3 129,477 7 0

21

C—9.

DISCHAEGED SOLDIERS SETTLEMENT ACCOUNT. Statement op Transactions for the Year ended 31st March, 1921. Receipts and Payment Account. Dr. £ s. d. Or. Cash in hand, Ist April, 1920 .. .. 975,254 6 9 Advances on mortgage. £e. d. Debentures issued .. .. .. 9,894,804 0 0 Current Account .. 1,341,053 5 3 Repayments of Advanoes — £ s. d. Section 2, Farms, &c. 3,425,055 0 5 Current Account .. 149,802 6 8 Section 2,l)wellings,&c. 2,599,005 18 5 £ s. d. Section 2, Farms, &c. 191,495 5 10 7,306,374 4 1 Section 2, Dwellings, &c. 384,874 12 (i Plant Account .. .. .. 1,197 13 2 720,172 5 0 Dead-stock Account—Purchases and charges 17,872 18 3 Plant Account—Sale of two ears .. 324 11 0 Live-stock Account—Purchases and charges 12,005 7 1 Doiwl-stook Account—Sales of wire, &c. .. 1,700 5 5 Sundry Estate Accounts—Purchases of live Live-stock Account —Sales .. .. 32 19 9 and dead stock .. .. .. 57,071 13 0 Sundry Estate Accounts — Sales live and Realization Account .. .. .. 131 13 1 deadstock .. .. .. 31,950 3 8 Sundry Creditors Account—Accounts not Realization Account .. .. .. 3,054 1 0 cleared in previous year .. .. 300,590 2 9 Interest on Advances — £ s. d. Interest on debentures .. .. 002,189 13 0 Current Account .. 44,214 4 8 Expenditure under socSection 2, Farms, &c. 218,347 17 0 tion 32, Appropriation Section 2, Dwellings, &c. 172,240 13 4 Act, 1920 — Exchange 434,802 15 0 and other charges on Interest on investments .. .. 13,427 14 3 the realization of reserve £ s. d. Valuation fees .. .. .. 10,555 5 0 fund securities in London 201,110 13 1 Suspense Account .. .. .. 10] ,998 5 9 Charges and expenses— Fire Loss Suspense Account .. .. 3,202 14 0 Advertising, brokerage Production fees .. .. .. 28 5 0 charges, &c., raising Sundries .. .. .. .. 149 17 0 loans in Now Zealand 11,688 7 6 ■ 212,805 0 7 Management expenses—Supervision and management of securities .. .. 25,009 10 0 Travelling-expenses of Supervisors and Inspectors .. .. .. .. 1,993 10 9 Valuation expenses .. .. .. 23,788 10 5 Maintenance and upkeep of plant .. 933 14 5 Suspense Account .. .. .. 111,840 5 6 Five Loss Suspense Account .. .. 1,444 18 0 Refunds of instalments overpaid .. 61 13 0 Sundries .. .. .. .. 312 2 9 Balance vide Treasury Accounts, 31st March, £ s. d. 1921 .. .. 3,478,454 8 2 Less accounts paid by imprestees but not cleared in Treasury at 31st March, 1921 .. 17,773 15 5 3,460,680 12 9 £12,196,963 9 1 £12,196,963 9 1 Revenue Account. Dr. £ s. d. Or. To Interest on loans .. .. .. 567,774 11 3 By Interest on advances — £ s. d. Expenses of raising loans—Proportion Current Account mortwritten off .. .. .. 10,805 0 7 gages .. .. 77,555 17 0 Management expenses .. .. 25,069 10 0 Instalment mortgages — Maintenance and upkeep of plant .. 924 15 4 Farms, orohards, &o. 351,583 17 7 Depreciation of plant .. .. 537 7 1 Dwellings, business pro-Travelling-expenses of Supervisors and mises, &c. .. 215,075 14 0 Inspectors .. .. .. 1,990 5 0 644,815 9 1 Valuation expenses .. .. .. 13,262 6 5 Interest on surplus funds temporarily in - Loss on forfeited holdings .. .. 1,527 8 3 vested .. .. .. .. 28,394 7 0 Loss on live and dead stock .. .. 3,066 19 1 Production fees .. .. .. 55 10 0 Rebate of interest .. .. .. 30,366 7 9 Remission of interest.. .. . . 90 0 5 Interest written off as irrecoverable .. 834 4 7 Miscellaneous . . . . .. 13 14 6 Balance .. .. .. .. 16,996 15 4 673,265 6 1 073,265 6 1 Balance from previous year .. .. 4,770 8 1 Net profit for year .. .. .. 16,990 15 4 Balance .. ".. . . .. 12,226 7 3 £16,996 15 4 £16,996 15 4

C.-9

DISCHARGED SOLDIERS SETTLEMENT ACCOUNT— continued. Statement of Transactions for the Year ended 3]st March, 1921 — continued. Balance-sheet. Liabilities. £ s. d. Assets. £ s. d, Loan Account .. .. .. 19,239,304 0 0 Advances on mortgages — £ 8. d. Unpaid interest on loans .. .. 101,820 5 7 Current Account .. 2,134,308 Lβ 10 Sundry creditors .. .. .. 51 17 2 Farms, orchards, &o. 8,050,018 0 10 Suspense Account .._ .. .. 13,201 19 10 Dwellings, business Realization Suspense Account.. .. 450 7 0 premises, &o, .. 0,137,600 2 10 Fire Loss Suspense Account .. .. 2,007 16 0 15,322,520 1!) B Revenue Acoount .. .. .. 12,220 7 3 Instalments of prinoipal outstanding — Farms, &c. .. 10,383 8 8 Dwellings, &c. .. 3.088 10 10 115,472 5 (i Instalments of principal postponed .. 477 2 :( Interest outstanding — £ s. d. Current Account .. 55,245 18 2 Farms, &c. .. 03,954 18 2 Dwellings, &c. .. 7,225 19 8 120,420 Iβ o Interest accrued but not due .. .. 157,777 16 1 Interest postponed .. 3,050 11 0 100,828 6 1 Interest accrued and unpaid on surplus funds temporarily invested .. .. 14,052 12 !) Forfeited holdings not vet liquidated .. 8,607 410 Sundry debtors for stook, &0., supplied .. 10,202 17 2 Expenses of raising loans .. .. 204,500 0 0 Machinery and plant .. .. .. 2,142 13 1 Dead-stock .. .. .. .. 7,470 17 10 Live-stock .. .. .. . . 272 9 3 Sundry estates —Live and dead stock .. 86,274 0 1 Land improvement— Birdwood Estate .. 527 10 3 Cash in hand —Balance as per Treasury Ac- £ s. d. counts .. .. 3,478,454 8 2 Less accounts paid by imprestees but not cleared in Treasury 17,773 15 5 3,400,080 12 9 £19,369,062 13 4 £19,369,002 13 4 T. N. Brodrtck, Under-Secretary for Lands. J. H. O'Donnell, Chief Accountant.

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