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adverse seasons. The high cost of fencing and building material and other calls upon the settlers' resources have retarded complete compliance with the improvement conditions. The dry spring and late frosts affected the cereal crops except on those settlements especially favoured by position, and the diamond-back moth again made 'ravages with the turnip crops. The rape was only a partial success, but showers in January and February improved it so that a good percentage of lambs was made fit for market. The enhanced values for wool and stock more than balanced losses sustained in cropping. Oats, Emerald rye, &c, as winter and early spring feed, will have to be largely provided, reducing land-cultivation for cereal crops. Autumn rains have improved the outlook. There are forty estates in South Canterbury, four of which have not reached a satisfactory position. The season just passed has been the most successful for some years, and even the poorest settlements in the district show a marked improvement. This, of course, is to be accounted for by the abnormal prices ruling for wool, stock, and cereals of all descriptions. Unfortunately the outlook for- the successful wintering of stock is not good, as the district has been suffering from want of rain to keep pasture land in good heart and bring on the rape and turnip crops. At the time of writing, however, we are experiencing rain at last, and if the frosts keep off, the situation,, as far as grass goes, may yet be saved, although I am afraid it is too late to benefit the rape and turnips. The large amount of improvements over statutory requirements is sufficient evidence of the continued prosperity of the district as a whole. The plantations throughout the whole district are looking exceedingly well.

OTAGO. (Robert T. Sadd, Commissioner of Crown Lands.) Two new settlements were opened during the year—viz., Hilderthorpe, in North Otago, divided into two farms and a number of small sections for workers' homes. The farms were selected, but most of the small sections were not taken up. Clifton Settlement, out from Balclutha, was opened for discharged soldiers only. Five applicants were examined by the Board, but only three sections out of twenty-two were allotted. The older-established settlements are doing fairly well, with the exception of Waitahuna Nos. 1 and 2, near Havelock; two of the settlers on these settlements have abandoned their holdings, not being able to make a living. Revaluations were made of the three sections forming Te Puke Settlement, near Oamaru, and two on Otanomomo. In both cases a substantial reduction was made in the values, it being considered that the rents were too high. As the, values of the Committee are reckoned on a 5-per-cent. rental basis and the tenants pay only a, 4-i-per-cent. rental with the right to a 10-per-cent. rebate of rent for prompt payment, any reduction made by the Committee means a considerable loss to the Crown.

SOUTHLAND. (H. D. M. Haszard, Commissioner of Crown Lands.) Including Lamont Settlement, which is being administered under the Discharged Soldiers Settlement Act, there are now fifteen settlements in this district, being an increase of three during the year. Aided by the excellent conditions at present prevailing, the majority are in a prosperous Waiarikiki, Knowsley Park, and Ardlussa are the exceptions. ' With regard to the first-mentioned two settlements, the tenants were handicapped at the outset on account of difficulty in arranging financial matters, and insufficient farming experience added to their troubles. The three settlements added during the year are Lamont, Merrivale No. 1, and Merrivale No. 2. Lamont is very conveniently situated, within two miles from railway-station, school, dairy factory, &c._, and is only thirteen miles from Invercargill. It was subdivided into five holdings, four of which have been selected, by discharged soldiers. These selectors are competent and industrious men, and as the land is capable of being highly improved there is every prospect of success ahead. Merrivale Nos. 1 and 2 were originally held under the conditions of the Land Settlement Finance Act, and during the first two years the settlers made no headway, the principal handicap being the unfavourable climatic conditions. Pursuant to legislation enacted these settlements were taken over by the Government, and are now administered under the Land for Settlements Act. The result has been that prospective failure for the settlers has been changed to a fair chance of success, and already the majority have passed the critical stage. Three are dairying and the others are sheep-farming. Only sufficient grain for their own "requirements is grown on these settlements. When the Orawia Railway is completed the value of these lands will be enhanced and the proximity of the railway to the settlements will be a decided advantage to the settlers Edendale still holds pride of place amongst Southland settlements, and it is worthy of mention that it supplies six dairy factories. Taken as a whole, the position of the settlements in this district must be regarded as satisfactory.