c—i.

spots. Settlers are now trying danthonias, crested dog's-tail, Chewing's fescue, and other sorts of hardier grasses, in the hope that if these grasses thrive they will eventually overcome the fern trouble. A rose-blight is attacking the sweetbriar ; in some of the valleys where sweetbriar obtains it has decidedly given it a shaking. The flax-mills, sawmills, creameries, and road-construction afford susidiary means to the Crown tenants during their campaign with the adverse conditions to successful settlement. There were seventeen defaulters who had not as yet complied with the conditions of their leases regarding improvements, and five not residing at the time of inspection. The road along the north bank of the Wairau River is still unavailable for traffic at times of flood —another impediment to the settlers located west of Langley Dale. A certain amount of prospecting for gold is always being done in this locality, and some claims are working and getting gold. It occasionally happens that there is friction between the settlers and miners, the former thinking that their grazing-rights are encroached upon. Taking all things into consideration —the difficulties, the poorness of land, and noxious weeds —the settlers, in spite of all, are making headway, and in some cases can be considered prospering. Central Marlborough {i.e., the district situated between the Wairau and Clarence Rivers). —The Crown lands here are in most cases held under pastoral license, and consist of mountains and valleys only suitable for depasturing merino sheep. The acquired lands held under the Land for Settlements Act are situated within this district, but are treated under a separate heading. There are five small grazing-runs, all of which are in a satisfactory condition. One was disposed of during the year to new tenants, the old tenant receiving a good price as well as bonus. Any of these five runs would bring the present occupiers more money than has been expended in improvements. Kaikoura County. —The success which has attended the settlement of Crown lands in this district has created a land-hunger here which is not easily satisfied. All the Crown lands have been disposed of under one or another form of tenure, and there only remains the Clarence country, which is occupied under pastoral license. There are eleven Crown tenants who have not yet made sufficient improvements, but work on each, section is still progressing, and all in time will comply. There are three who have so far failed in residence requirements. The Seaward Valley and Puhipuhi Roads are so frequently blocked and the Hapuku Rivei is so often dangerous to ford, that the Land Board has determined to continue the remission of the residential conditions to the tenants on the lands whose access is by the roads mentioned. About 800 acres of bush land has been cleared during the year, preparatory to grassing. The values obtained for sheep and wool have been satisfactory, but cattle have receded in price. Very little cropping is done on the Crown lands, and settlers depend solely on the proceeds of their pastures. Lease in Perpetuity. —This is undoubtedly the popular tenure in this district, 256 tenants holding 130,052 acres. The lessees appear to be fairly prosperous, and there were no surrenders or forfeitures during the year. A very large percentage of the above area is of a mountainous nature, only adapted for grazing. Occupation with Right of Purchase. —This tenure has never taken on here, and there are only thirty-eight tenants, occupying 10,541 acres, while last year there waj not a single transaction ; otherwise the same remarks hold good as in the case of the lease in perpetuity. Small Grazing-runs. —The area held under this tenure is 209,889 acres, representing 100 runs, which for the most part consist of the higher slopes of the hills, and consequently are somewhat rough and broken. The annual rent of these runs is £2,841, and the arrears amount to £269, which, comparatively large percentage is due to the fact of this tenure not being subject to the Crown Tenants' Rent Rebate Act. Revenue. —The total revenue collected during the year was £30,982 ss. 10d., an increase of £9,118, which was owing to the acquisition of Flaxbourne Estate. Rebate of Rent. —Rebates amounting to £1,601 18s. Bd. were granted to Crown tenants last year, and there is no doubt that this Act is a distinct incentive to those tenants to whom its benefits apply to pay up their rents promptly. Arrears of Rent. —These amount to £781 13s. 10d., out of a total annual rent-roll of £31,491 15s. Id. Surrenders. —There were no surrenders on the part of the Crown lands tenants, but four lease-in-perpetuity holders on Flaxbourne Estate, occupying 237 acres altogether, surrendered during the year. These four sections were, however, immediately taken up again by the respective lessees of the adjoining land. Forests. —The output of sawn timber from the sawmills of the district has been less than the previous year, through the stoppage of three of the mills permanently and four temporarily. The deficiency of about 1,500,000 ft. of marketable timber was not caused in any way by the slackness of demand, some builders in the south end having to import from Wellington. Two of the mills which ceased working have again resumed operations, and a new mill has been established at the mouth of the Pupipuhi River ; another is about to be erected on the coast north of the Hapuku. Approximately, 8,000,000 superficial feet were turned out, employing, one way and another, two hundred hands. Scenic Reserves. —During the last month of the year Mr. Matthews, as representing the Scenery Commission, made an inspection of the proposed areas, and will submit his recommendation for consideration. Starborough Nursery. —During the year the services of Mr. Craig, who so ably conducted the work in this nursery, were transferred elsewhere, but the management appears to be continued in a satisfactory manner by his temporary successor.

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