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he has insufficient capital at command to supplement the Government aelvance : in these cases it seems to me that, however regrettable it may be, it would be useless to allow the soldier to continue in occupation of the farm, and a waste of his time and the country's money. Usually 7 he has chosen the land himself and should not blame the Government. I have met cases where, in spite of the hopeless position, the soldier still, wished to continue on with the same place, but if he die! not he thought he should be given a chance with a smaller place. In one instance the soldier said he could not work satisfactorily for another man, as his service left his health so that at times he had, however willing he might be, being unable to work a full day continuously. ' Another question that I can see will arise is that if soldiers who apply get concessions, the greater proportion of the rest will, press for similar treatment, and the man who has managed to pay, either by being more thrifty, experienced, or by having some one else to pay for him, will want to know where he comes in. The Land Board itself is of the opinion that to a large extent in settlement lands the subdivisions have been made into areas too small to afforel a sufficient return, owing to much of the class of land settled being unsuited for continued cropping, and being such that cultivation should be. directed more in the direction of providing roots and green feed for sheep in the intervals between standing in pasture, which does not last profitably on much of it for more than three years. I notice that the Board of Inquiry attributes much of the weedy condition to overcropping in the; past. Tn reference to the remarks of the Boarei about the, price of suburban land, the position is that if a soldier wants suburban lanel so as te) be handy to his markets and supplies he will have to pay for it, and the cultivation must be of the intensive order, with avoidance of sloppy methods : any of our suburban lanel could, I think, be sold for more than it costs the soldier. The financial statement relative to the matter is enclosed herewith. There still remain about ninety-eight cases to be investigated, representing, say, one-fifth of the total applications made, and the supplementary financial statement, &c, concerning these will be forwarded as early as possible. G. H. Bullard, Commissioner of Crown Lands. The Under-Secretary for Lands, Wellington.

Otago. 18th June, 1923. Forwarded herewith is the report of the Board of Inquiry set up to investigate the position of soldier settlements in Otago. This report consists of a general report on this class of settlement, giving the difficulties in subdividing land for settlement, and particularly in the case of soldier-settle-ment, which took place at a time when so many factors militated against its success : these, briefly, were on account of the inflated prices of land, stock, implemients, and all material. In Otago the inflated price of land was not sufficient in itself to cause failure except in a few oases, but the combination of this and the high prices for everything needed by the settler made land-settlement particularly difficult. From the Inquiry Board's report it is stated that a property bought at its market value and capable of being successfully worked as a whole proved on subdivision, owing to the amount to be spent on each subdivision in the way of improvements, so increased in capital value that success is made almost impossible. As it was impossible to purchase a property below its market value, this appears to be an insurmountable obstacle to the subdivision of estates. The properties purchased were valued by expert valuers, and were generally obtained at a lower price than the valuation. The method of subdivision was carefully considered, and the advice of the former owner and local residents obtained. The first two or three years on the subdivisions of settlement land is always a most crucial test before the settler can get fully established and have his separate allotment in good working-order, and unless he is able to pay the rent out of his own capital it is almost inevitable that great difficulty is experienced in finding the rent; if the property is not sufficient for more than a living, it is impossible for a settler with limited capital to pay off these arrears. The percentage of failures in Otago, permanent and temporary, is given as 21 \ per cent. ; about half are permanent, and it is considered that the balance of temporary failures can by judicious relief and further assistance be helped into a satisfactory position. The failures are not from any one of the causes (a) to (/), but all these causes except (c) (inexperience, &c), contributed in an equal proportion to failure ; it is therefore quite impossible to give; the percentages of failure under the different headings. Although the percentage of farms at present unprofitably eiceupied is given as 21_i- per cent, it is considered that at least 50 per cent, of these; would be successful with some measure of relief and gooel management. The schedules supplied give the recommendation of the Inquiry Board, and also of the Land Board. It is considered by the Land Board that the measures of relief recommended by them will, uneler present conditions, enable a large percentage of the settlers to remain on their farms and become successful. The suggestion of altering the present system with regard to current-account advances is approved, by the Land Board. As it will be some considerable time before the settlers are able to pay off these advances, it would be a great relief to the Crown if the advances for stock, chattels, and farm requisites were taken over by stock and station agents. The advances for permanent improve-