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by the Government on account of high rate of interest being paid to commercial firms. Remissions and reductions to be recovered in cases of sales in future at profits. Suggest that certain inexperienced settlers be represented by trustees. Adjustment of rebates to correspond with period of receipt of returns from farms. Partnerships generally considered to be failures and should be discouraged. Government to guarantee, fruitgrowers in regard to export of fruit. Inadequate supervision. Testing and culling of dairy cows recommended. Butterfat returns disappointing. Stress the necessity of proper inventory of stock and chattels being made before soldiers take over farms. Recommend that when power of sale is exercised preference be given to discharged soldiers where properties are suitable; other properties to bo thrown open to the public. Congratulate Land Board and staff on patience and consideration shown to settlers during the period of the slump and subsequently. Consider with average prices of all products prevailing settlers should do well. Extended Report. We have made tt thorough inspection of the settlements and farms in the Marlborough District, and, generally 'speaking, the class of settler is good- although in cases it is quite apparent that many would have done better had they possessed more initiative and more perseverance. In very few cases we have found the settler a " waster." Quite a number of settlers have gone into their places with little or no money of their own, and in some cases little or no experience, with the result that they have had nothing to lose, and everything to gain. In most, cases, shortly after taking possession they were confronted with the slump, when they lost heart and seemed to have given up all hope of making a success of their undertaking. Apart from those settlers who have made good, we, find a large percentage of the holdings extremely uninviting, and in some' cases we have been somewhat surprised tit the. Land Board allowing men to take such places up. Want of capital has in many cases been the cause of failure, and yet we consider the Department has been very liberal with their financial assistance, but through want of supervision the money in many cases has not been used economically and to the best advantage. Finance. —In dealing with, the position of the, settlers who are in a bad financial position we, have carefully considered the, question of recommending any further assistance on current account realizing at the present time that the Government is not desirous of spending any more money in litis direction than it can possibly help. In some cases we have found that to enable some settlers to carry on more successfully it is necessary that they should erect subdivision fences, fell bush, burn, and surface-sow. This we consider tint best and most useful ways that money can be advanced to enable the settler to produce more, and a better chance of being successful. As will be seen by the respective reports, we have recommended that stock accounts be taken over. We do this because we consider that, the high rate of interest charged by the mercantile firms concerned is a heavy drain on the settler and, moreover, the Government in most cases has to go without its rent and interest. We think in all eases the Government will be able to come to satisfactory arrangements with the firms concerned, as we feel quite sure they are, prepared to drop a fair amount so as to clear up the now very unsatisfactory state of affairs in several cases. In casts of amounts concerning reduction of loans, postponement or remission of rents and interest, and postponement of instalments, we recommend that upon any sale, transfer, assignment, or deposition of the settler's interest in the property, any moneys or part thereof remitted, postponed, or reduced be deducted from any profit accruing from the sale, &c. (Note. —All the amounts as shown in the various reports are those supplied to us by the Lands Department, Blenheim, and are approximate only : these may vary from time to time as settlers pay off amounts.) Trustees. —We have gone into this matter very carefully, and, if several settlers (who have been mentioned in their respective reports) who have not displayed judicial management of their holdings, financially or otherwise, arc to carry on successfully, we are of opinion and we recommend that they should be subject to the superintendence of a competent trustee. Rebates.- It has been our experience during our round of inspections to learn that a large number of settlers complain that the rebate on rents and instalments for the January payments come at a bad time : this particularly refers to the agricultural farmer, who does not get his returns from his harvest till usually February and March. In many cases it is very awkward and sometimes impossible for settlers to find tint amount due, and therefore lose their rebates. We would recommend that the Department consider this question and see what can be done in the direction of having the period extended. Partnerships. —These have in nearly every instance proved failures, and in most of the cases one of the partners has left the property owing to the slump, finding there was not enough to be made for both to live on. Then, in some cases the settler remaining has not, been able to carry on successfully—chiefly owing to want of capital and the undertaking proving too much for him. We recommend in future that partnerships be discourage!. Fruit-farms. —We desire to express the views of many of the soldier fruitgrowers that the Government should continue the guarantee to fruitgrowers in regard to the exporting of fruit. This industry has had a very bad time, and many of the settlers have had a hard struggle, but with average, markets these men should come through all right. Supervision. —We desire to state, that we consider (here has not been sufficient supervision over the soldier settlers. In some cases there has not been a Ranger or Supervisor on the property for upwards of two years, and we came across many cases where the settlers stated that they had not received a visit from a Ranger for a considerable time.