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I have before pointed out that in regard to kauri-gum New Zealand possesses an absolute and unique monopoly, and that the State is by far the largest shareholder in this monopoly, for the reason that more than half the gum-producing lands still belong to the Crown. It is well known that the gum lands have been in a measure laid waste owing to the methods practised in digging for gum. Besides having a large interest in this monopoly I am thoroughly convinced that in the gum lands the State possesses an asset of very high value. It is now well established that there is not one product of the kauri-peat swamp which cannot be profitably utilized. But in order to get the best results machinery must be used in all stages in the process of production, saving, cleaning, and in the preparation of the gum for export. Kauri-bum exported. Up to the 31st March, 1917, the value of kauri-gum exported was £17,919,255, and of this large sum perhaps fifteen millions would represent money expended in labour. The average quantity exported for the twenty years 1895 to 1914 was 8,493 tons, and the average value £499,013. The following table gives particulars of the export for the last eleven years : —

Particulars of Kauri-gum exported from New Zealand from 1907 to 31st March, 1917, inclusive.

It will be noticed that the quantity of gum exported for the year 1915 was only 4,575 tons, of the value of £279,133, being a little more than one-half the normal output. A good recovery has taken place for the past financial year, the quantity exported being 4,862 tons, of a value of £300,271. The Number op Men employed in Gum-digging. It was estimated by the Royal Commission before referred to that in 1914 there were 6,000 men employed in gum-digging, the majority of whom devoted the greater part of their time to the work. In that year the number of gum-diggers' licenses taken out was 3,538, of which 534 were taken out by aliens. The Commission, explaining the disparity between the number of licenses—viz., 3,538 —and their estimate of 6,000 men engaged in gum-digging, said, "It is well known that in the northern districts there are a good many diggers on the Crown lands who do not take out any license, so that the number of licenses issued does not give the actual number of diggers on the Crown lands alone. In addition to the men digging on the Crown lands there are those working on privately owned gum lands the number of whom it is estimated amount to about 3,000." (C.-12, 1914, p. 18.)

Country to which exported. 1! 107. 1! 108. 1 (09. 1! no. 1! 111. 1912. United States of America Unitod Kingdom Germany Canada Australia Belgium France Austria-Hungary Russia Netherlands Swedon Italy Japan. . Fiji .. Argentina Tons. 5,171 £ 381,566 Tons. 2,855 £ 215,291 Tons. 5,127 £ 375,126 Tons. 4,149 £ 263,375 Tons. 3,514 £ 209,216 Tons. 3,894 £ 232,566 2,468 936 53 42 21 9 162,121 27,473 4,512 2,216 821 918 1,799 667 21 155 22 10 1 123,011 23,841 1,646 6,458 1,572 875 104 2,290 639 24 149 17 1 1 140,235 24,111 2,555 8,576 1,770 85 68 3,253 913 66 60 29 19 124 15 6 30 23 151,319 28,016 7,687 4,465 1,899 1,656 3,011 1,976 133 720 779 2,378 1,142 9 75 78 75 131 80 55 35 15 130,767 34,062 1,061 2,559 3,990 5,774 3,968 1,859 1,206 803 417 25 2,468 1,053 40 39 123 3'; 159 2 42 35 15 1 114,640 32,964 3,370 2,487 5,088 3,037 4,611 184 974 952 410 22 1 7 114 147 172 2 8 Totals .. 8,7081 579,888 5,5301 372,798 ,250 552,698 8, 193 465,044 7,587 395,707! 7,9i 401,305 Country to whi( exported. 118, in. ■15. 1st ,7ani 31st Man lary to h, 1916. ti 1st A 31st) nil, 1910, larch, 1917. United States of America United Kingdom Germany Canada Australia Belgium Franco Austria-Hungary Russia Netherlands Sweden Italy Japan Hong Kong Argentina Tons. 3,995 3,390 833 62 80 126 45 112 53 00 15 9 £ 308,456 187,547 27,880 4,618 3,933 5,120 3,995 2,617 1,725 2,495 420 300 Tons. 4,531 3,335 373 70 19 34 42 14 3 8 20 23 1 £ 316,200 148,370 21,193 2,114 1,720 1,519 3,599 329 225 664 560 855 96 Tons. 3,312 1,172 56 9 £ 222,856 48,585 4J550 594 430 Tons. 974 336 iis 5 £ 60,010 13,548 314 Tons. 3,158 1 ,484 133 29 £ 218,214 68,378 7,718 1,982 5 21 2,118 50 3,440 8 539 Totals 8,780 549,106 8,473 497,444 4,575 279,133 1,433 82,844 4,862 300,271