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Land Teansactions. The new selections during the year have consisted of thirty allotments, totalling 6,093 acres 1 rood 22 perches, under the lease-in-perpetuity system ; one small grazing-run of 3,684 acres ; and five temporary occupation licenses of 46 acres 3 roods ; the total annual rental realised being £3,626 Bs. 2d. Two allotments of 4 acres and 19 perches were sold for. cash for the purposes sanctioned by the Land for Settlements Act. The total number of lessees on the 31st March, 1907, was 1,230, the area occupied being 259,946 acres and 28 perches, at an annual rental of £77,241 15s. lOd. Payment of Rent. The total amount of rents and other payments collected during the year on all land-for-settlement estates was £68,345 lis. 3d., and the total receipts for the district since the commencement of the system now amount to £427,591 18s. lOd. The arrears of rent due on the 31st March, 1907, exclusive of current payments, amounted to £780 4s. Bd., owing by thirty-six tenants holding an area of 5,973 acres 3 roods 26 perches. These represent barely 3 per cent, of the total number of tenants, and the amount owing is just over 1 per cent, of the total annual rent-roll. Teansfees, Foefeitures, and Sueeendees. Transfers have been effected during the year of ninety-seven lease-in-perpetuity holdings, comprising an area of 11,865 acres and 24 perches; three farm-homestead leases, comprising 515 acres 3 roods 35 perches ; and three small grazing-runs, with an area of 4,630 acres 2 roods 30 perches : making a total of 103 holdings, representing 17,011 acres 3 roods 9 perches. Six leases, comprising an area of 32 acres 1 rood 38 perches, were forfeited for non-fulfilment of conditions, and a surrender of one allotment of 594 acres 3 roods was accepted at the request of the lessee. Condition of Established Settlements. The reports which have been received from the Crown Lands Rangers at the close of the year show that the satisfactory results recorded in previous years have not only been fully maintained, but that in nearly all cases excellent progress has been achieved both in the increase of permanent improvements effected and also in the general.condition of the holdings, the cleanness and working of the land, and the prosperity of the tenants. The exceedingly dry season experienced caused the general yields of grain-crops to fall considerably below the average, and also in some cases seriously affected the rootcrops, besides subjecting the tenants to the prevailing shortness of feed ; the pastures, however, recovered rapidly after a welcome rainfall at the end of the season. In the northern settlements, where tenants depend more on grazing than on cropping, there was a good average lambing percentage, and throughout the district the tenants are doing well, and are in a prosperous and contented condition. There are a few cases where the requirements of the leases have not been completely fulfilled, these being principally where the lessees have not yet been able to bring their improvements up to the value required for the sixth year of occupation ; but they are taking the necessary steps to remedy such deficiencies, and will no doubt effect full compliance before long. In the more recently established settlements, especially Kinloch and Mills, dwellinghouses have not been erected by some of the lessees, but in the former settlement this is due to difficulties of access which have not yet been obviated, and in nearly all cases the tenants are camped on or adjacent to their holdings. Taken all round, the year's reports disclose a splendid achievement in the settlement upon the land of bona fide, hardworking, and capable farmers, and amply vindicate the operations of the Land for Settlements Acts within the district. I may mention that during the year Mr. H. L. Anderson, the New South Wales Commissioner to the New Zealand International Exhibition, visited some of the settlements in South Canterbury, and expressed surprise at the number of good homesteads, buildings, and planting, &c, to be seen, and considered that the colony was to be congratulated on the class of its tenants and the good methods of farming displayed. There is a steady inquiry for farms under the Land for Settlements Act, but at present we have no lands available to satisfy the demand. The Ranger for South Canterbury also reports inquiries for 5-acre lots close to Timaru. Appended are detail notes respecting the separate settlements, the following being a summary of the results : Number of settlements, 48 ; homestead-sites, &c, 10 : total 58. Area leased in settlements, 259,946 acres and 28 perches ; adjoining Crown land leased with purchased land, 17,792 acres : total, 277,738 acres 28 perches. Number of settlers, 1,193 ; total population, 4,600. Total value of improvements required, £194,961 6s. 7d. ; total value effected, £401,666 6s. 7d. The area sown in white crops last season was 33,540 acres ; area in green or root crops, 17,540 acres ; area sown in cultivated grasses, 134,188 acres ; area in native pasture, plantations, orchards, &c, 92,470 acres. Number of stock on the settlements : 255,521 sheep, 8,730 head of cattle, 4,585 horses, and 1,722 pigs. Pareora N0.% 1 Settlement, (near St. Andrew's, Waimate County). —Established January, 1894. Area purchased, 620 acres 2 roods 13 perches. Number of sections occupied, 28 ; number of souls, 104, residing in twenty-five houses. The settlement carries 190 head of cattle, 41 horses, and 60 pigs ; and last season there were 201 acres in grain-crops, 71 acres in green and root crops, and 316 acres in cultivated grasses. The total value of imbrovements required is £1,144 ss. 2d., and the value effected £2,933 os. 6d. The crops have been light, but many of the tenants supply milk to the local creamery, and employment is readily obtainable at the adjacent freezing-works and on farms in the district. The holdings are small and are kept in good order, and the tenants appear to be comfortable and contented.