17

C—9 a

General. —In oases of second private mortgages the Board considers the Crown should make no reduction unless the second mortgagee allows a concession equal to that made by the Crown. The present position is not altogether due to inexperience, but principally owing to the heavy losses in stock, wool, and dairy-produce. The soldier settlers have not been singular in this respect, for the losses sustained by them and other financial embarrassments have been felt by old and experienced farmers in similar financial positions, and even by those in much better circumstances. The Board considers that if its recommendations in each case are given effect to settlers generally will be successful, but stricter supervision is essential. Extended Report. There are still about a hundred soldier settlers to be interviewed and their farms inspected, many of these being in outlying and isolated positions ; but the recommendations in these cases will be made the subject of a supplementary report, as you have intimated that it is desirable that recommendations in the cases already dealt with to date should be made available. Out of a total number of 963 soldier settlers in this district, 447 have replied on the prescribed forms, setting out a statement of their receipts and expenditure, together with the reasons for their straitened financial position. In the Board's opinion, probably 95 per cent, of the 516 settlers to whom papers were sent but who did not reply could be considered as being successful settlers. Small-grazing-run Farms. —In the inspection of these farms held by soldier settlers the Board has found that many of the different subdivisions have not been made in conformity with the varying configuration of the country, some soldiers in consequence obtaining all the summer country and no winter country, and others vice versa. By reason of this the Board has been compelled to recommend many reductions in rent. The soldier settlers who have the summer country only suffer great losses through the rigour of the snowfall and the ravages of the kea, and have to endure a death-rate almost equal to the natural increase of the flock, while those who have winter country only are quite unable in dry seasons to carry and graze their sheep and lambs to the best advantage. It will readily be admitted that this is a serious drawback to settlers really striving to make a success of their holdings, and constitutes a difficult matter to adjust satisfactorily. In some cases there is no proper road access, which necessitates the packing of the wool, or driving the sheep long distances for shearing. Of the runs in South Canterbury, it has been observed that the losses in sheep are very great between shearing and autumn mustering, due to the impossibility of fencing the back boundaries, which are on rugged and difficult high country. These boundaries are from 6,000 ft. to 7,000 ft. in altitude. The heavy fall of snow practically throughout the year also presents another serious obstacle to the erection of fencing. When these soldiers selected their holdings they had to purchase their sheep at the prevailing enhanced prices, and through the sudden and severe drop in values in sheep and wool that took place in the following year they became financially embarrassed, and their available capital was then quite insufficient. This was the main cause of their difficulties. Since the substantial rise in the price of stock and wool the Board is confident that with the assistance it has recommended these soldiers will be enabled to work their farms successfully. The granting to every soldier settler the maximum advance of £750 to effect improvements and to purchase stock on agricultural and dairy farms was no doubt sufficient to enable profitable occupation of the farms, but this amount was quite inadequate to the needs of the soldier settlers on these runs. Through their inability to obtain more than the maximum advance of £750 from the Government they have been compelled to procure financial assistance from outside firms as well, and have had to meet a higher rate of interest. This has had the effect of complicating their accounts, and in a large measure has been the cause of many being in financial difficulties. On one of the North Canterbury settlements where the subdivisions have been made without any regard to the natural features of the country it is the Board's opinion that a great mistake has been made in providing homestead-sites miles away from the runs. The necessary homestead-sites, whore possible, should be on the different holdings, or in close proximity thereto. Had this been so the stock would not have suffered so much, and the ewes in lambing-time would have received proper attention, and the average percentage of lambs would .most probably have been very much higher. Some of the areas of these runs are too small for grazing purposes only, and the Board recommends that should occasion arise through leases being surrendered the areas of such leases should be divided among adjoining lessees. Agricultural Farms. —The largest number of soldier settlers occupy these farms. The quality of the land varies considerably in the different parts of the district, some of it being of good quality, but the larger proportion being of light, stony, and inferior soils, and not suitable for cropping purposes. The areas held are. not large enough for grazing purposes only. The land has in many cases been overcropped, with the result that it has become choked with twitch and weeds, thereby to a'considerable extent reducing tin; value of the farm. It is now necessary to summer fallow the land and continually work it to eradicate the twitch, if the settlers are to be able to obtain a payable crop in the following year. This means that they become liable for two years' rent, as well as for the working-expenses, with only the produce of one year's crop to meet the payments. It is essential that the soldier settlers on these farms should have a wide and varied knowledge of farming operations to enable them to make a success. This knowledge many of them did not possess when taking up the farms, especially the requisite knowledge of buying and selling of stock. The experience can only be gained by practice, and although, unfortunately, many of the soldier settlers have paid dearly for this experience, it should be of great value to them for their future guidance.

3—o. 9a.