5

C—9

of Crown Lands directing that in every case at least two independent valuations of the land must be obtained. One valuation is to be made by an officer of the Department and the other by a competent and reliable outside valuer. These valuations arc considered by the Land Boards, who make recommendations regarding the price, terms and conditions, &c, for disposal of the land. Every effort is made to dispose of properties at the earliest opportunity and in the best interests of the Crown. If any doubt exists as to the actual value of a property additional valuations are obtained. Realization Account. —Tho sum of £150,242 standing to the debit of Realization Account represents the book charge in respect of properties under realization. It is probable that a number of these will be purchased by the Department through the usual legal channels, and offered for disposal at a later date at prices fixed by valuation, as referred to in the preceding paragraph. The remarks as to the condition of properties under " Property Account " apply with equal lorce to those properties being realized upon. Settlers , Present Difficulties. —Many of the settlers are well established and are satisfied with their properties. Others, again, for various reasons, cannot be classed as successful, and some assistance must be afforded if these settlers are to be given an opportunity. The principal cause of failure was the slump, with the consequent fall in the prices of farming-produce, and many soldier settlers, as well as civilian farmers, will take some time to recover from the effects of the low prices. The form of assistance to be afforded in cases of non-success will receive consideration when the reports of the various Inquiry Boards (hereinafter referred to) are received. It is, however, apparent, after a careful review of the whole position, that assistance must be given, and the form of assistance should be uniform throughout the Dominion. Fuller information will be available when the. work of the Inquiry Boards is complete, but in the meantime it is considered that revaluation is necessary in a large number of cases. If revaluations are allowed, a remission of rent or interest, fro rata with the amount of overvaluation, should be made ; also a postponement of the remaining arrears for fairly long periods. Assistance somewhat on these lines should place settlers in a sound position, and if they are not then able to carry on the fault will not lie with the Department. While returns were low there was not sufficient margin over ordinary farm expenses to allow for improvements by draining, cultivation, manuring, &c, nor for the development of unimproved areas. Settlers were therefore hampered in their operations owing to limited finances. With the prices at present ruling the settlers should be better able, from now on, to pay more attention to improvement of their farms, so as to carry more stock, and thus obtain increased returns. The demand for good dairy cows far exceeds the supply, and. it should be the aim of every settler who desires to improve his position to build up in course of time a good herd. Sufficient attention does not appear to have been given to the culling of unprofitable herds. The fact that some lands are alleged, to be overvalued cannot be entirely accepted as an excuse for failure, for the reason that very little income has been derived by the Department from these farms. With stable markets, thrift and energy, and a determination to surmount difficulties, there is every reasonable chance of the majority of the settlers being successful ; but it must be realized that success in any branch of farming in the past was not immediate, but resulted from patient toil and carefully planned methods of handling farms, stock, &c. Illegal Sale of Stock. —It is regretted that a number of men had no scruples whatever in disposing of stock, &c, under lien to the Department, and have used the proceeds for their personal use and then abandoned their farms. Where it is clear that there has been collusion between soldiers and others in stock-trafficking to the disadvantage of the Department the law will be put into full force ; and,, on the other hand, where innocent people have been made the victims by misrepresentations as to ownership of stock the settler illegally disposing of his stock will find prosecution follow. Comparison with Previous Year's Advances. — The total amount advanced during the year is approximately one-third of that advanced during the year ended 31st March, 1922, and certainly much less than for the previous two years. Repatriation, so far as land-settlement is concerned, may be regarded as being nearly completed. Future operations will consist principally of making advances and readvancos on current accounts, loans to T. 8., wounded, and other disabled men to enable them to acquire suitable farms, and the overtaking of loans in respect of recommendations for dwellings now on hand. The following schedule enables a comparison to be made between the past year's operations and the previous three years, under the main headings affecting the account: —

1919-20. 1920-21. 1921-22. 1922-23. £ 9,345,000 £ £ £ 19,777,680 £ joan liabilities 9,345,000 19,239,304 20,036,905 Advances made during year Idvances on mortgage at end of year Receipts .. Arrears Postponements securities acquired by Crown Securities in course of realization .nterest paid to Consolidated Fund .. 7,832,513 8,676,697 1,180,157 108,594 7,366,374 15,322,527 1,327,605 139,899 3,528 3,473,163 18,113,156 1,258,611 385,845 26,470 32,669 80,122 858,557 Loss. 55,381 1,225,753 18,100,371 1,470,638 541,125 67,164 523,783 150,242 869,158 Loss. 78,893 2,284 30,000 Loss. 5,805 8,607 602,190 Profit. 16,997 J rofits or losses