8.—6

XVI

31st March last, and the value from £1,240,097 to £1,898,163. During the same period the capital funds have increased from £493,861 to £858,638 ; the amount of investments on the mortgage of freehold lands in the colony from £215,909 to £482,206 ; the amount of the investments in Government securities of the colony from £199,208 to £354,108. The estates and funds which, subject to wills or trusts, were in the office at the close of the year, and for the administration of which the office is voluntarily selected by the persons interested, had increased in number from 447 to 466, and in value from £673,478 to £744,742. The reserves subject to " The West Coast Settlement Keserves Act, 1892," yielded during the year a sum of £21,318. The income had, at the close of the year, risen to the annual rate of £16,932 ; the number of lessees had increased to 579 ; and the aggregate area of the leaseholds had increased to 101,602 acres. With respect to the Native reserves vested in the Public Trustee by " The Native Eeserves Act, 1882," these were at the close of the year subject to 981 leases, of an aggregate area of 19,100 acres, and yielded during the year an income of £7,811 for the benefit of or for distribution among the Natives interested. Under an Act of the General Assembly of 1895, the Native beneficiaries of the Arahura Native Reserves secured the distribution of a capital sum of £1,593, being the balance received by way of compensation for damages, past and prospective, of the lands at Arahura, in consequence of the river of that name having been proclaimed a watercourse for the deposit of tailings. The office has disbursed the whole sum, under a satisfactory scheme of distribution. The administration of both the West Coast Settlement and the Native reserves continues to be carried on without it being found necessary to seek assistance from the Consolidated Fund. DEPAETMENT OF AGEICULTDEE. I am glad to be able to state that the returns from the soil during the past year have shown improvement. The yields of grain have not been so great as last year, but prices have been somewhat higher. The principal wheat-growing districts have suffered from an unusual drought, which has reduced the yield and consequently the average. Dairy produce has shown much better returns, and a larger output. This industry is likely to continue to increase. For the period ended 31st March last there were exported 75,287 cwt. of butter, valued at £297,518, and 71,663 cwt. of cheese, valued at £135,711; making a total of £433,229 in value : the increase over the previous period being 15,221 cwt. of butter and 189 cwt. of cheese. A marked improvement is observable in the quality of our dairy produce. There has been a falling-off in the total export of mutton and lamb. This is partly accounted for by the losses sustained during the unprecedented winter of 1895. The number of carcases of mutton exported was 1,428,430, valued at £772,588, and 781,539 carcases of lamb, valued at £369,724 : making a total value of £1,142,312. The number of sheep in the colony is estimated at 19,629,602, or an increase of 491,109 for the year. I regret to mention that the prices for our frozen mutton are still very low. There is also another matter that I wish to draw particular attention to —namely, the wholesale slaughter and export of ewe lambs, which must have a detrimental effect upon the flocks of the colony. It is well known that the best ewe lambs are selected, as they mature quicker than the wethers, consequently a better price is obtained; but, in view of the consequent deterioration and lessening of increase, it is manifest that a continuance of this policy must be suicidal. The fruit industry continues to expand, and since the import duty on certain fruits was imposed quite an impetus has been given to the culture of fruit. Considerable areas are being planted with vines. The several experts have been kept busy imparting information to settlers. Conferences in connection with agriculture and fruit-growing have been held in Queensland and Melbourne, at which this colony was represented, and with beneficial results. The reports and papers will be laid upon the table.