C.—l.

The operations where applicants have had choice of tenure under the cash, occupation-with-right-of-purchase, and lease-in-perpetuity systems for the last ten years are recorded in Table E, emphasizing the fact that where the selectors have had a choice the occupation-with-right-of-purchase system is the one most favoured.

Table E. Lands opened on "Optional" System.—Table showing Preference of Tenure.

Inspections. The Crown Land Bangers throughout the colony made inspections of 7,464 holdings of an aggregate area of 1,980,586 acres. The improvements effected amount to £1,147,495, the amount required by statute being £623,498. There were 826 selectors whose holdings were found deficient in improvements, 910 were not complying with the conditions of residence, and there were 146 defaulters from other causes, chiefly overdue rent, which necessitated special visits to ascertain the tenants' circumstances and requirements. The following is a summary of the number of inspections made by the Bangers for three years from the Ist April, 1899, and demonstrates that the work of the Bangers last year was more general and comprehensive than formerly, and that the progress of the settlements has on the whole been substantial and satisfactory : —

Return of Number of Inspections made by the Rangers for three Years from the 1st April, 1899.

Condition and Progress of Settlement. Cash Purchases. There are no obligations attendant upon holders under this system as regards occupation and improvements except selections under Part 111. of " The Land Act, 1892," termed the " Optional System," which necessitates that certain prescribed improvements shall be effected within seven years from the date of purchase and before the issue of a certificate of title. The holdings thus affected comprise ninety-nine. In consequence of the failure of several of the purchasers to comply within the prescribed period, a question has arisen as to the relative rights of the Crown and selectors, which appears to require further consideration and possibly legislation. Perpetual-lease and Deferred-payment Selections. The holdings under these systems, which originated in the Land Acts prior to 1892, have been augmented to a slight extent by additional selections under the provisions of section 114 of " The Land Act, 1892." It may be said that, generally speaking, the holders under these old systems have complied with all the conditions of residence and improvements, and are now principally concerned in the payment of their annual instalments of rent and interest. Taking advantage of the right to purchase the fee-simple, these tenures are rapidly disappearing from the departmental ledgers.

V

Occupation with Right of Purchase. Lease in Perpetuity. Gash. Year. Number. Ana. I Number. Area. Number. Area. .892-93 893-94 .894-95 .895-96 .896-97 .897-98 .898-99 .899-1900 .900-1901 .901-1902 ... J 161 461 398 431 277 380 458 395 673 447 Acres. 54,271 108,133 75,477 84,967 59,647 81,414 109,949 117,771 262,729 128,893 126 447 336 415 278 299 362 348 295 241 Acres. 55,320 151,324 87,374 89,144 62,229 76,953 99,262 111,108 97,138 65,468 325 249 174 169 90 65 114 95 127 237 Acres. 35,785 33,200 33,323 26,030 9,835 6,680 17,824 16,510 37,862 26,739 Totals ... ... 4 4,081 4,081 1,083,251 I 3,147 895,320 1,645 243,788

Year. Number of Properties, visited. Value of Improvements. imber of Defaulters. Area. Required. Actually made. For Improvements. For Nonresidence. For other Eeasons. Total. 899-1900 .900-1901 .901-1902 5,926 6,028 7,464 Acres. 1,159,202 1,173,093 1,980,586 £ M 369,627 I 887,998 368,474 876,363 623,498 1,147,495 447 363 826 695 449 910 54 64 146 1,196 876 1,882