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C—9 a

Both Boards were of opinion that reduction in rate of interest, rent, and stock mortgages in many cases were advisable, and without such, failure could be looked for on numerous holdings : but in the opinion of the Land Board to accept the Inquiry Board's opinions en bloc did not savour of good policy, and the resolution sent was the result. I realize that much will depend on reports from separate districts as to the action taken, but several matters cropped up here in discussion which I should like you to specially consider. Reduction of Mortgages. —The generally accepted method in a matter of this nature would be to reduce a mortgage of £5,000 to, say, £4,000 to lessen a man's payments. The Board's opinion is it is preferable to reduce the rate of interest based upon the suggested capital reduction, and this received unanimous approval. For instance, instead of the capital account of a mortgage being reduced from £5,000 to £4,000, the interest would be reduced on the £5,000 from 5 per cent, to 4 per cent., and other oases similarly. Further Advances. —All discussions on the report seemed to come back to the question — But, Mr. Chairman, can you obtain further moneys to hold up this property, as it is considered unless this settler, who has already drawn his quota, can receive additional finance, it is useless making a reduction in the mortgage, as he must have further stock to run his farm at a profit." I can understand the Government being in a position to write off expended money, but the gist of most reports, I feel convinced, will bo asking for further moneys, and until this phase of the question is considered, cases requiring such treatment must remain in abeyance pending the Government's intentions regarding further advances. Revaluations. —This phase may also crop up where leaseholds are concerned, and, as you may deem section 15 of the Land Laws Amendment Act, 1915, should be utilized in these cases, I would prefer to withhold an opinion on the Inquiry Board's valuations. I am retaining the written reports on individual sections in the meantime, as I have to obtain particulars therefrom to lay before the Land Board at a special meeting at the end of the month. There have been several points raised in the report which were only partially discussed, and these may bo further treated at the end of the month —one in particular re appointment of farmers to help the Department by advice, &c. ; but the payment of such was suggested, and this, if conceded, would be a Dominion rather than merely a provincial arrangement, and as such pronounced upon by you. I should appreciate any comments on the points raised if the Department is yet in a position to officially advise me thereon. H. J. Lowe, Commissioner of Crown Lands. The Under-Secretary for Lands, Wellington. • Wellington. 3rd July, 1923. Enclosed herewith is the report of the Inquiry Board for the Wellington Land District. Messrs. Stuart and Cameron worked together for some time round about Feilding and then separated, Mr. Stuart completing the inspection on the west side of the main range from Mangaweka and Wanganui to Wellington, and Mr. Cameron taking the whole of the district to the east of the main range. Mr. David Craig inspected the bush district northward from Mangaweka. The Land Board has considered the report, and, while agreeing with it in the main, desires to to express its views on certain matters referred to. Paragraph 8 refers to bush sections that were selected subject to existing timber-cutting rights. There are very few such cases -probably not more than three or four in the whole district. In clause 10 reference is made to certain complaints regarding purchase of stock, statements of accounts and correspondence. These arc administrative matters that the Board thinks may be left to the Department. The Land Board recognizes that in many cases the price of the land must be reduced if the settlers are to be kept on their holdings, but it cannot go as far as the Inquiry Board, has gone in recommending that a revaluation be made of all. soldiers' settlements and farms, and that in no case should the rentals or instalments be increased. The adoption of this recommendation would be an invitation to all settlers to press for the maximum concessions, knowing that they had all to gain and nothing to lose by so doing. No land should be revalued except on the application of the lessee or mortgagor, and he should be compelled to accept the new value if it is higher than the old one. It is not likely that there would be many increases, but the possibility of having to accept an increase would deter those who are well placed from making frivolous appeals. If some other way of satisfying the settlers for the time being could be found the Board would welcome it. There has been a want of confidence amongst the farming community ever since the financial depression, and although matters have improved to some extent, few private owners are willing to accept the prices now offering for land. This feeling is bound to have an effect on a new valuation, and the Board is afraid that under a valuation made now or in the near future, the Government will have to accpt less than the true value of the land. If revaluation is decided upon the method of carrying it into effect will have to be most carefully considered. The settlers are for ever watching for opportunities to make comparisons, and in order to illustrate one, of many difficulties it may be useful to make a comparison now. Two dis-

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