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Canterbury. 12 companies mounted rifles and 1 hono- 1 engineer corps. rary corps. 17 companies infantry. 1 field battery. 1 cycle corps. 1 company naval artillery. 1 bearer corps. 1 company garrison. Otago. 7 companies mounted rifles. 1 engineer corps. 1 field battery. 20 companies infantry. 2 companies naval artillery, including a 1 cycle corps. section of submarine-miners. , ; 1 bearer corps. Nelson. 3 companies mounted rifles. 9 infantry corps. 1 field battery (four guns). Making a total for the colony of— 46 companies mounted rifles and 1 hono- 2 companies submarine-miners. rary corps. 4 companies field engineers. 5 batteries field artillery. 84 companies infantry. 8 companies naval artillery. 3 cycle corps. 2 companies garrison artillery. 4 bearer companies. With all corps fully up to strength, this would mean a Volunteer Force of 537 officers and 10,907 non-commissioned officers and men, exclusive of the permanent staff. I regret that, owing to press of work in connection with the despatch of troops to South Africa, I have been unable to carry out much inspection work this year, and, as a matter of fact, with a total of over 150 corps scattered all over the colony, it is impossible to inspect each corps annually. I have no hesitation in saying that our system of training Volunteers requires complete change, and if the colony is to benefit by the money it expends on its Defence Forces, a great deal more time must be devoted to outdoor training and field work. At present Volunteers earn their capitation largely in the drill halls, and sufficient attention is not paid to the outdoor work which is necessary for them to become efficient soldiers. Every corps in the colony has to put in a certain amount of time in camp during the year, but in all cases except that of the mounted corps the men only sleep in camp, and put in morning and evening parades, going to their usual civilian work during the day. What is wanted is an extended course of out-door instruction. It is impossible in a drill-shed to teach men how to take every advantage of cover, to familiarise them with the different varieties of ground they would have to work over on service, to teach them how to entrench themselves, all of which, in these days of smokeless powder and arms of precision, are essential parts of a soldier's training. I have tried in every way to encourage the Volunteers to come out as often as possible for daylight drills in the open, but hitherto I have met with little success. Sanction has been given for Volunteers to hold six daylight parades annually, each parade carrying a personal payment of 2s. 6d. per head to the men. The amount earned for these parades last year was only £538 18s. This year the time of the Easter camp was extended to seven days for every man who wished to stay in camp, full allowances being paid for each day. It was only in the Wellington District that any advantage was taken of this, and out of the whole Force only 420 men remained in camp for the seven days. Unless we can devise some means of getting men to come out and carry out field work by daylight, and learn the real part of a soldier's work, we cannot consider our Volnnteer Forces efficient. I have often heard it stated that the great obstacle to getting the Volunteers out in the daytime was the unwillingness of the employers of labour to let their men go; but unhappily I must come t6 the conclusion that a, great deal of the fault lies with the Volunteers themselves, and that many men who could come out have other attractions which appeal to them more than soldiering does. Mounted Cobps. Owing to the doings of our contingents in South Africa much interest has been taken throughout the colony in mounted corps, and we have had offers to form new corps from all parts of the country. So far, the services of twenty-eight new corps of this branch have Been accepted. It is an arm which is particularly suited for use in the colony. A mounted infantryman should be more than an infantry soldier on a horse—he should be a good horseman and accustomed to horses, and know how to find his way about a country, and each corps should have a certain number of men specially trained as scouts. We have plenty of both men and horses of the proper stamp, and when our men return from Africa I anticipate great benefit to accrue to the mounted branch by having men in the ranks who have so much actual practical training in war, and this will undoubtedly have a marked effect on the efficiency of this branch of the service. It will, I hope, also enable us to get a stamp of non-commissioned officers who know and understand the importance of the duties of their position. To obtain the proper efficiency, however, we must have more out-door work and, above all, a longer period of training in camp. The Government have decided to increase the capitation of this branch from £2 10s. to £3 10s., and I should like to see this extra £1 earned by men who would put in an extra week in camp, and not given indiscriminately to men who would capitate under present regulations. As it is almost impossible for mounted corps to assemble for the paid daylight parades, I would recommend that in the future, in addition to the payment of the extra £1 for