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the State taking over the whole control of the kauri-gum industry. It may be noted that it was then pointed out to the diggers that the time was not considered opportune for tliscussing such a proposition, and that all that could be reasonably expected from Parliament was an undertaking to relieve any distress existing among the gum-diggers during the continuance of the war. The report went on to say that, while there were several gum-diggers who had saved a little money during the good times, and who were in a position to hold their gum until the prospectr improved, there were a great many married men, and practically the whole of the Maori popu lation, who in the past had been living from hand to mouth, and who would soon be in distress unless assistance was given to them. It was suggested that if it were decided to assist the industry at the time such assistance should be given, only in necessitous cases, and that two methods of procedure likely to meet the circumstances of. the case might be adopted. The first proposition was to put on men to dig "on a face" particular areas of kauri-gum reserves; the second was to make advances to the gum-digger on the security of his gum. It was suggested that, workers should be started face digging on selected areas on the kauri-gum reserves at Waiharara and Mangawai, and that in other localities advances should be made up to, say, 35 per cent, of the value of the gum on the basis of prices ruling before the war. It was not anticipated that, provided the matter of finance could be arranged, any difficulty would be experienced in carrying the project to a successful issue. It was further explained that, in regard to the gum industry, the position might be stated as presenting the alternatives, either the gum-digger had to be assisted to carry on during the war, or very large numbers of men would be thrown out of employment and become more or less a, burden on the State. The ordinary methods of providing for unemployment in the past had been to employ the men either on roadworks and railway-construction or bushfelling on Crown lands. All such works were, of course, regarded as reproductive, but the returns from such expenditure were often a long time becoming apparent. On the other hand, it was suggested that if men were employed in gum-digging they would produce a commodity which, as soon as the gum-market became normal, would be convertible into cash, and that all the money expended in labour and administration would be recouped by the State. Reference was made to the fact that in the report of the Kauri-gum Lands Commission it had been pointed out that the development of the gum lands of the Crown under judicious management presented a practicable solution of the " unemployed " difficulty, and it was suggested that the time was then opportune to give effect to the proposal not only as a means of relieving distress among the gum-digging population, but also among workers in other parts of the Dominion. It was suggested that the workers should form themselves into parties of five or six men and work on the co-operative system, on the selected areas, digging the land on a fact;, all the gum being recovered in the operation, and all timber met with thrown up on the surface of the land, and the land left in a suitable condition for future farming operations. It was predicted that such works on carefully selected areas would prove largely self-supporting, and in some cases would result in a profit to the State. In addition there would be a great improvement to the land, which would then be left in a high state of cultivation at practically no cost. The report went on to say that if the recommendations were given effect to it would be necessary to build depots to store the gum. It was proposed that the depots should be erected on the gumfields as near to the port of shipment as was found practicable. The alternative was to have the gum transported to Auckland and stored there. The latter method was considered the more costly, besides necessitating the immediate payment of freight from the gumfields to Auckland, and it was thought that such expense might well be postponed until such time as the gum-markets became active. in regard to the recommendation to make advances to the diggers on the value of the gum, it was explained that some of the storekeepers on the gumfields at that time were making an advance on account of gum, but only for stores. One storekeeper had stated that he was advancing up to 35 per cent, on last, year's prices, but lie was not paying out in cash. He said that he would probably be able to continue making such advances for two or three months, but after that time he would require assistance, lie (hen had nearly two hundred diggers (mostly Maoris) on his books. It was suggested that it might bo found expedient, in the event, of assistance being given to the industry, to make advances to reputable storekeepers in particular cases. It would be necessary that all advances should be made on careful valuations. It was not considered advisable to make any advances at all on the " gum dust " —that is, on the lowest grade of gum, which it may be explained is used in the manufacture of linoleums, and much of which was exported to Germany and to (lie Continent. It was necessary, owing to the expense of storage, that this grade should be retained by (lie gum-digger until such time as it should become marketable. The report concluded by suggesting that a sum of £50,000 would be required to give full effect to the recommendations contained therein. As an outcome of the report, of which the foregoing is a synopsis, the question of giving relief to the industry came before Parliament for consideration last session, and the Kauri-gum Industry Amendment Act, 1914, was passed and became law on the 6th November, 1914. This Act authorized the working of the kauri-gum lands, the purchase and sale of gum by the State, and contained authority for the raising of the sum of ,£50,000 for the purpose of the Act. In regard to the purchase of gum, in order to meet the special circumstances of the case the Act authorized the making of an advance to the vendor of 50 per cent, of the value of the gum on the basis of prices current on the Ist July, 1914.