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Forest Reconnaissance of the Huirarau-Raukumara Ramies. A general forest reconnaissance was made of this mountainous backbone during the year. The purpose was to ascertain the economic relation of the forests of this important massif to the prosperous and populous Hawke's Bay, Gisborne, and Bay of Plenty districts. The investigators report: " In this region the effects of the removal of the forest cover are so apparent that the value of the forests as protective agents is stressed, and in order to prevent further irremediable damage the remaining areas under forest cover should be maintained as permanent State forests." The prevention of slips and landslides, silting and blocking-up of rivers and harbours, the washing-away of fertile plains, if nothing else, demand the conservation in perpetuity of these widespread protection forests. Your Director seriously recommends the dedication without delay of 600,000 acres of protection and commercial forest to permanent Forest control, in and through the counties of Whakatane (including 250,000 acres in the Urewera), Opotiki, Waiapu, Waikohu, and Wairoa primarily in Hie interest of the depending agricultural communities,- as well as in the interest of subordinate timbersupplies. Kauri Park — a National Souvenir. During the year negotiations were practically completed for the acquisition of 908 acres of kauri forest near Dargaville from Mr. James Trounson. The grateful appreciation of the people of New Zealand is due to this gentleman for the exceptional terms upon which he has sold this magnificent forest to the Crown. It will stand for centuries as a glorious but vestigial souvenir of what was once a great example of Nature's handiwork —the unequalled kauri forests of the North. Gone for ever is this great heritage of the people, sold and destroyed for a mess of pottage. Let this remnant stand as a reminder of how not to use our remaining forest wealth. 2. Finance. State Forests Account. —Receipts and Payments Account at 31st March, 1921. £ s. d. £ s. d. £ s. d. To Cash in hand, Ist April, 1920 .. .. .s,i>l(> 18 7 By Interest on debenture! .. .. 6,126 (> 7 Loan Account — Debentures issued .. 70,000 0 0 Afforestation: Nurseries Revenue from State forests, provisional and plantations— State forests—Rents, royalties, &o. .. 16,816 8 r> Materials, buildings, plantRevenue from nurseries and plantations - ing, &c. .. .. 49,320 II 7 £ s. d. Fxtension of nurseries and Trees .. .. .. 913 7 II plantations .. .. 167 (i 0 Firewood and poles .. 1118 2 2 Expenses of survey .. 250 0 o Seeds .. .. .. 150 8 7 49,733 17 7 Sheep, wool, skins, and State forests— grazing .. .. (559 4 9 Management expenses .. 2,701 II 11 Rental of departmental Forest reconnaissance .. 317 19 4 houses .. .. 052 15 8 Kauri-gum, expenses of Sundries .. .. 8 17 ti collection .. .. 100 0 10 2,702 10 7 Collection of tree-seeds.. 9 17 4 Nurseries and plantations— Survey of Trounion's Prooeeds of sale of horses .. .. 179 0 0 kauri forest.. .. 81 17 4 3,210 18 9 Administration and sundries— Salaries and allowances 17,594 18 .'! Temporary clerical assistance .. .. 4o<> 19 0 Travelling-expenses .. 2,174 13 3 (Iffioe furniture, technical instruments . . 3,852 19 li Typewriters, p " to h ase and maintenance ■. 21ti 14 6 I lent .. .. 700 12 9 Hooks, advertising, light, and cartage.. .. 297 17 8 Telephones, teleg t a in s, and postages .. 409 8 7 Motor-vehicles, purchase ami maintenance .. 121 9 2 Specimens of New Zealand timber.. .. 55 0 li Cost of printing Sir- I). II iltcllins's report, less sales .. .. 481 12 1 Silvicultural and ecological Investigations .. 108 5 l 20,(>01> 10 li Cash at 31st March, 1921 , In Public Aooounl . . 9,484 12 5 imprests outstanding .. 51 17 9 9,636 Id 2 £95,214 3 7 £95,214 3 7 L. Maclntosii Ellis, Director of Forestry. A. \Y. Gyles, Accountant. The statement has been examined and agrees with the total receipts and expenditure as disclosed by the Treasury accounts. —Robert J. Collins, Controller and Auditor-General. sth October, 1921.

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