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Auckland. (H. M. Skeet, Commissioner of Crown Lands.) General. The past year, with its general improvement of conditions, its favourable season, and the return of more normal prices both for the revenue and expenditure of the farming community, has brought considerable relief to soldier settlers, the majority of whom in this district are engaged in dairying. It must, of course, necessarily be some time before the effects of the slump, and the preceding period of high prices for materials, will have been overcome, but the large returns obtained this season, and the satisfactory prices paid for butterfat, with the prospect of a good bonus to come, has encouraged the settlers. In some cases, where failing health, lack of aptitude for farming, or too heavy a burden of indebtedness (usually incurred through lack of experience or proper business capacity) has rendered it impossible for settlers to carry on, they have been able to arrange transfers at prices which, as the lands had been, well bought, have yielded a small margin of profit. Such an arrangement must necessarily be in the interests of both the settler and the holding itself, and the sooner settlers who are unable or unwilling to reasonably meet their liabilities, or to make the best use of their holdings, give way to others who will do so the better it will be for themselves, for their holdings, and for the State. It is probable that, considering all the circumstances, the proportion of failures amongst our soldier settlers will be very little, if any, larger than amongst average civilian settlement ; but the fact that they are being so largely financed by the State, and that they have had exceptionally difficult circumstances to contend against, brings the failures more prominently under notice. The genuine trier is sure of careful consideration and sympathetic treatment from the Land Board, but there is a minority —fortunately a small one —which is still inclined to use patriotism as a cloak for slothfulness, wastefulness, and disregard of obligations ; and settlers of this type, having been given their opportunity, deserve no further special consideration. The special Board of Inquiry appointed by the Hon. Minister of Lands to investigate the position of the soldier settlers has been actively engaged since November, and has completed a considerable portion of its work, but will probably be engaged for another two months, after which its report and recommendations will be discussed with the Land Board. Lands selected and, held. The demand for land by soldiers has been limited during the year, the number of holdings selected being only thirty-three, comprising an area of 3,967 acres. At the close of the year the number of soldier settlers on the books of the district was 1,013, occupying a total area of 271,840 acres at a rental of £47,543 per annum. In addition to these, assistance had been given to 867 settlers occupying 164,519 acres of freehold and other leasehold land subject to mortgages to the Crown, and 778 soldiers who had been provided with houses. Bevenue. The amount of loans outstanding at the close of the year was as follows : Current account advances, £718,942 ; instalment mortgage advances—on farms, £1,206,352 ; on dwellings, £469,965 : total, £2,395,259. The receipts during the year amounted to £141,966. There are substantial arrears, both in interest and instalments, the latter of which will probably have to be relieved by postponement until the end of the mortgage, although this course has not yet been adopted by the Land Board, which desired to ascertain the maximum concessions that circumstances might render necessary before applying this form of relief. In the case of dwellings, inquiries into the cause of arrears usually disclose sickness or loss of regular employment. A difficulty in many of these cases is that it ib not easy at the present time to dispose of houses built at the time when much higher building-costs were ruling. In the majority of cases the properties are being maintained in good condition. General Condition of Settlements. In my last report I gave a general review of the established settlements, and it only needs to be added now that the year has been one of fairly steady progress, and that, with few exceptions, holdings are now in better condition, and more on the way to yield their occupiers a good living than before. Good work has been done in renewing and improving pastures, and also to some extent in improving the quality of the dairy stock, though a good deal remains to bo done in this direction. Many settlers are, however, purchasing pedigree bulls so as to gradually improve their herds by breeding. In the case of two or three settlements there have been complaints —of which too much has been made —of sickness amongst dairy stock : this on inquiry has been found to be due to the lack of suitable pasture. Difficulties of this kind may necessarily happen where large properties which have been used for grazing sheep are being converted into dairy farms, but they could be very largely minimized, if not obviated altogether, by more judicious methods of farming, and proper provision of fodder crops, instead of relying too exclusively on grass pasture. In a very large number of cases settlers are now running sufficient cows to necessitate the installation of milking-machines, the periodical payments on which have proved a heavy drain on their resources ; these, however, are nearing completion, and if a favourable season is experienced next year there is every reason to anticipate that the majority of the settlers will have substantially reduced their arrears and be in a sound financial position.