c—l.

MARLBOROUGH. The following summary of land transactions for the year shows that a total area of 55,883 acres was dealt with, of which 45,354 acres represents the Flaxbourne Estate. In addition to the former area, 6,623 acres were>xchanged to lease in perpetuity, mostly from small grazing-runs and pastoral runs. s There is a very|limited area of Crown lands in this district, but the progress of settlement and the class of settlers, taken as a whole, are exceedingly satisfactory.

Lands disposed of. The following table shows the particulars of the lands disposed of during the year, number of new selectors, and area taken up from the Ist April, 1905, to the 31st March, 1906, and total amount of revenue received during the year:—

Position and Progress of Settlement. During the past year the progress of settlement has been well maintained, and has been further improved by the settlement of the Flaxbourne Estate, which was taken up in June last, by which the number of holdings was increased by the settlement of 123 additional tenants, and, in spite of the exceptionally wet winter, which proved a heavy handicap to the work of fencing, building, &c, the amount of improvements already effected has been the subject of much favourable comment. Two small grazingruns—Ben More and Napoleon—were also let, the fortunate applicants being both Kaikoura residents. Owing to the continued high values of sheep and wool, the pastoral community are still thriving, and the future prospects may fairly be considered as highly satisfactory. The old-established settlements are, of course, similarly in a healthy condition. There are 594 holdings, comprising 1,303,499 acres, in this district held by tenants under the various tenures, exclusive of the land-for-settlements blocks, which are dealt with in another portion of this report. Sounds County.—lt can now be said that all the land within this district, having water frontage and access, with the exception of the reserves, is occupied under one or another form of tenure. The Crown tenants have nearly all been in possession of their holdings for ten years and over, and have complied with the conditions of their leases. The new leases in perpetuity are chiefly conversions from the small-grazing-run tenure ; and in cases where they are not the lessees have so far complied with the requirements of the law, except three and these will shortly do so. The value of the land, especially level land, has increased quite fifty per cent, during the past three years ; and there are several instances of Crown tenants having sold out, receiving a substantial bonus over and above a good price for the improvements effected. Approximately 2,600 acres of bush lands have been cleared for grassing during the year. The quality of the sheep in all points has also improved, and sheep command greater attention from buyers of both wool and mutton. Danthonia grass has taken kindly to the Sounds hills and valleys, and is gradually creeping over all; its presence will materially assist in the destruction of that troublesome shrub tauhinu. The Sounds settlers, after many years of vicissitudes, may now be considered comfortable, with the prospect of their land continuing to rise in value—not altogether from its productive power, but from the desire of retired people and caterers for the tourists to become possessed of land in this exceptionally beautiful district. Pelorus and Wairau Districts (comprising all land within the Marlborough County north of the Wairau River).—lt is in some of the blocks in this district that the settlers have the hardest struggle to bring their lands into a profitable condition ; much of it lies cold and high, and is infested with sweetbriar and blackberry. Exotic grasses do not hold their own except on the flats and in a few favourite

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Nature and Tenure of Lands selected. Number of Selectors. Area. Gash received on Past and Current Transactions. Eural lands sold for cash Perpetual lease made freehold Occupation with right of purchase made freehold Perpetual leases Occupation with right of purchase Lease in perpetuity Village settlement — Perpetual lease ... Lease in perpetuity Village-homestead special settlement Occupation lease, Mining Districts Land Occupation Act Small grazing-runs... Pastoral runs ... •. ■ ■ • • t • • Miscellaneous leases and licenses Miscellaneous Land for Settlements Acts — Lease in perpetuity Small grazing-runs Miscellaneous 2 1 1 A. B. *P. 41 0 20 51 1 20 400 0 0 a s. d. 251 2 6 52 0 0 200 0 0 34 5 0 405 12 9 2,427 9 10 "i 955 0 0 12 6 16 6 8 18 17 6 31 13 9 4 '.8 8,291 0 0 1,028* 0 0 2,959 15 5 4,151 16 10 134 0 1 2,288 14 6 120 18 16 14,013 0 36 30,731 0 0 3,889 2 12 10,803 9 9 6,691 2 1 514 16 8 Totals - ... 174 59,400 1 8 30,982 5 10