8.—6.

XXXVIII

the factories of the colony for the past year. The following are the number of operatives registered as employed in the factories of the colony : — Males. Females. Total. January, 1896 ... ... 23,807 8,580 32,387 1897 ... ... 27,429 9,489 36,918 Such a development speaks well for the present position and future progress of the colony from an industrial point of view. Referring to the progress made in agricultural and pastoral pursuits : I find that the wool exported has increased from 102,522,185 lb. in the year ended September, 1890, to 128,309,673 lb. in the year ended September, 1896 ; while the quantity purchased by local mills has also increased from 2,979,293 lb. in 1890 to 3,989,934 lb. in 1896 : the total increase in production aggregating 26,798,129 lb. Nor has this increase been on account of the abnormal growth of large flocks. In 1890 there were 11,309 flocks, in 1896 there were 17,703, representing an increase of 6,394, but of that number there was an increase of 4,366 in the flocks of under 500 sheep, proving that the progress which has been made is rather that of the small farmers, who form the base of the pyramid, than of the large farmers and runholders. The number of sheep increased from 16,116,113 in 1890 to 19,138,493 in 1896, representing a total increase of over three millions in six years. Turning now to our second great industry—frozen meat —the tables show that in 1890 the export was 100,934,7561b., while in 1896 it was 123,576,5441b., an increase of 22,641,7881b. Equally satisfactory has been the progress of the dairying industry. In 1890 the combined butter and cheese exports were valued at =£207,687; in 1896 they were valued at .£411,882. This proof of the development of the industry is most gratifying to the Government, and will doubtless prove so to the colony. The dairying industry is one especially adapted to the small farmer, as it provides employment for his family; and I attribute largely the progress of small settlement throughout the colony to the development of this industry. In 1890 there were 38,178 holdings over one acre in extent occupied and cultivated in the colony. In 1895 the number had increased to 46,676. Finally, the total area of land farmed, cultivated, surface-sown in grass, or in garden and orchard, was in 1890 8,039,765 acres ; in 1896 it was 10,735,980, showing an increase of 2,696,215. Such progress as I have sketched was bound to show itself on the valuations of the local bodies of the colony; and I may fitly close this part of my Statement by referring to the increase in the value of the rateable property in the colony during the last six years. In 1890, judging from information in. the returns furnished by the local bodies for that year, the total rating-value for the whole colony was £103,116,564, excluding Crown and unoccupied Native lands, also outlying lands in counties where the Act was not in force. In March, 1896, the value had risen to £114,385,605, and, if the figures quoted be only approximately true, there is still sufficient evidence of considerable progress. Inasmuch a.s the same returns showed that the value of the property in the municipalities remained stationary during the period referred to, the increase shown above must necessarily have been confined to the property belonging to rural districts. The mineral resources of the colony have shown equal development and expansion during the past six years. The value of the gold exported in 1890 was £751,360, and in 1896 £1,041,4.28, showing an increase of £290,068. Second in value amongst the minerals of the colony conies coal, which is inseparably connected with the development of all our industries. The quantity raised in 1890 was 637,397 tons ; in 1896 it was 792,851 tons, showing an increase of 155,454 tons. Side by side with this large increase of the coal raised in the colony must be placed the fact that the import of coal has decreased, being, in 1890, 110,939 tons, and in 1896 101,756 tons, a difference of 9,183 tons by wav of reduction.