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Puhipuhi Plantation, from 1904 to 31st March, 1919 — Fifteen Years. Dr. £ s. d. £ s. d. 1 Or. £ s. d. £ 8. d. Actual expenditure .. 13,695 14 K) - Actual receipts—Sundries .. 18 0 0 Interest, compound, at 4 Interest, compound, at 4 percent. .. .. 6,095 4 1 percent. .. .. 014 5 19,790 18 II 18 14 5 Trees from nursory .. 3,404 4 8 Present value of— Interest, compound, at 4 Buildings, fencing, &e. .. 321 17 11 percent. .. .. 1,303 13 3 Departmental property .. 39 19 2 4,767 17 11 — 361 17 1 Land rental — Balance, being debt on 1,200 acres at Accumulated rental compounded for average of £20 7s. 4d. por acre .. 24,439 15 4 fifteen years at 4 por cent, of cost .. 261 10 0 £24,820 6 10 £24,820 0 10 Rotorua Nursery. The trees in stock at the 31st March numbered 3,627,075, and of this number 1,903,575 were raised from seed during the year. The output of trees last winter totalled 2,856,070, while the output to date is 59,321,244, of which 57,522,574 went to the State plantations and the balance, 1,798,670, to public bodies and farmers. Tree-growth has been on the whole very satisfactory ; the crop of Pinus radiata is particularly good, as are also the several kinds of Eucalyptus grown. The Corsican pine, whilst being good, is not especially so. Owing to the American tree-seeds arriving too late to be sown it is estimated that the shortage of trees caused thereby amounts to 3,000,000. These seeds are being carefully stored and will be sown next spring. Sale of Trees and Tree-seeds to Farmers. —The system of sending out eucalypts in trays has proved satisfactory on the whole. The hardier species do splendidly, but the half-hardy, and in most cases more valuable, kinds make poor growth after being pricked off into the trays. As is the case with all trees raised in this nursery, the eucalypts are raised in seed-beds outside. The plants are lifted from the seed-beds in February and pricked off into trays, which are afterwards " plunged " out of doors and shaded and watered for a time. The usual dry and hot conditions common at this time of year causes a cessation of growth, from which the less hardy kinds have not recovered before the colder weather sets in. To grow these kinds satisfactorily it would be necessary to put them under glass after they are transplanted into trays. A good many farmers are showing an intelligent interest in tree-planting, and as a consequence there is a demand for an increasing number of species of Eucalyptus. The demand for tree-seeds has increased during the year, and to meet this considerable quantities have been collected under proper supervision. Buildings. —A new wagon-shed was erected, and the old shed was altered and converted into a store-room for manures and other bulky materials. Attached hereto are schedules of trees in the nursery, and trees transferred to plantations and sold during the year. The average daily number of workmen employed during the year was 28-73. Following is a record of rainfall and temperature for the year : —

Rainfall, Temperature, &c.

Month. Rainfall. Number of Days Rain fell. Tempi irature. Number of Days Frosts ooourred. Minimum. Maximum. 1918. In. April .. .. .. 6-880 May .. .. .. 1-675 June ..' .. .. i 5-890 July .. .. ■• 3-705 August .. .. .-. 2-580 September .. .. .. 4-410 October .. .. .. 9-890 November .. .. .. 4-960 December .. .. .. 3-775 16 11 22 19 14 13 20 14 10 Deg. F. 38 30 27 25 25 27 32 33 32 Deg. F. 73 67 61 53 62 67 70 78 80 6 12 20 11 9 2 2 1 1919 January .. .. .. 3-160 February .. .. .. 2-025 March .. .. .. 3-640 11 8 8 36 49 32 82 84 81 1 Totals .. .. 52-590 166 04