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HAWKE'I BAY. (J. F. Quinn, Commissioner of Crown Lands.) Like the ordinary lessees, the soldier settlers have been badly hit by the prevailing depression, which in this district was aggravated by the earthquake and the drought conditions. This phase is dealt with more particularly in the report on the settlement of Crown lands. There have been a few revaluations during the year, and the effect of these should be to put the lessees concerned into a sound position under normal circumstances, A few applications for reductions are still being received, but it is considered that in most cases no revaluation can be given, as the position is due primarily to the general slump and would be met by a concession in rent or interest. Numerous applications for postponements and remissions of rent and interest are being received, and where it is clear that the lessee cannot pay owing to poor returns he is being treated generously by the Department. House Properties.—Over one hundred applications for advances to repair earthquake damages were received, mostly in connection with houses in Napier. Reports on these were obtained and in sixty cases the cost of repairs was advanced by the Department. In most other cases the mortgagors had their repairs effected out of funds provided by the Earthquake Committee. In many cases mortgagors have been unable to pay owing to being out of work, and the Department has treated these in a very lenient manner. In a number of cases where present charges are considered rather high, causing arrears to mount up, relief has been given by capitalization of arrears and extension of the term of mortgage, thus making the monthly payment easier. Hunter Soldiers Assistance Trust Board. —The Board held four meetings during the year and approved of advances totalling £1,110. Two applications by widows for grants to their orphan children were received, but it was found that the regulations did not permit of grants being made owing to the applicants being in receipt of pensions. Representations to amend the regulations have been made by the Board. The trust funds should prove of assistance to discharged soldiers requiring small amounts for improvements, &c., in cases where, owing to various reasons, it is not possible for further advances under the Discharged Soldiers Settlement Acts to be made. TARANAKĪ. (W. D. Armit, Commissioner of Crown Lands.) The general condition of soldier settlement cannot be regarded as satisfactory, owing to causes outside the control of the farmer or the Department. In common with all primary producers, the soldier settler has experienced a severe set-back, particularly so in grazing districts. Dairy-farmers have made strenuous efforts to meet obligations by curtailing personal expenditure, and the Department has assisted in every possible manner to carry the settler on and maintain production. Small-holding farmers have not been able to meet their obligations so well as the farm with butterfat production of 10,000 lb. or over. The smaller farm is required to provide the same overhead charges of living-costs, interest on buildings, &c., as the larger farm, leaving a much smaller margin for interest or rents, when compared with the property maintaining larger production. Top-dressing has been assisted in many cases at the expense of interest on mortgages, and a great amount of careful farm costing and detail is required of the staff to provide that only reasonable allocations of revenue are provided for out of milk moneys accruing to the soldier accounts. Sheep-farmers have experienced another unfortunate year, with particularly low prices for wool, sheep, and cattle. It is unfortunate that carefully built up margins of formers years have been lost, and the fullest assistance must be given in all cases where soldier settlers are dependent on these sources of revenue. Temporary concessions are being granted and a careful check maintained on all expenditure. Essential living-expenses are provided, and in numerous instances this item absorbs the major portion of any revenue from wool, surplus sheep, and cattle. The Department is carrying on farming operations on seven soldier properties pending a favourable market for realization of securities. In two cases these operations will cease by the end of June, in view of other arrangements having been made. During the year ten properties reverted to the Department and fourteen were disposed of. Dairying areas are in great demand. House property mortgages are being reviewed by way of recapitalization or relief under Regulation 28a, wherever this action is required. A number of mortgagors who have never missed earning rebates now find it difficult to carry on through loss of employment or reductions in wages. House properties are not readily saleable, except at a considerable sacrifice, and tenancies have been arranged for fourteen dwellings now on hand for sale. During the year the exercise of power of sale was acted upon in ten cases of house properties, and five resales were effected. WELLINGTON. (H. W. C. Mackintosh, Commissioner of Crown Lands.) Soldier settlers are feeling the effects of the present depression in common with all other members of the farming community. The poor prices obtained for stock and farm-produce have had the effect of forcing settlers to approach the Department for refunds or advances against existing securities to pay for living-expenses and to meet obligations. It is gratifying to note that, with all their troubles, settlers are not giving way to despair, but are determined to battle through. In many cases by dint of more skilful farming they have increased their production by large percentages, but the full recompense for their work has been marred by poor markets.

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