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twelve months ago, though the amount in cash has increased considerably. On the 31st March, 1889, there were 3,862 selectors behindhand with their payments, to the amount of £44,533, whilst on the 31st March, 1890, the figures stand at 3,755 selectors, owing £52,891, nearly half of this sum being due from'deferred-payment settlers. As frequently pointed out, many of these are only technically in arrear, for, as most of the payments are due either in January or July, and some on the Ist April, few payments are made on those dates; the selectors generally consider themselves not to be in arrear if their payments are made within the six months during which the payment is due. The operation of " The Selectors' Lands Revaluation Act, 1889," has naturally retarded payments to a considerable extent during the year. Looking to the large number of properties which had to be revalued, and the late period of the financial year at which the Act came into operation, it was, with the limited number of valuers available, impossible to get the whole of the lands revalued, and the adjustment of the accounts completed this year; but the work is expected to be finished during the current season. This has naturally delayed the annual payments in many cases, pending the readjustment of values. There should not be many arrears when the revaluations are completed, for it is a rule of the department that these are not approved until all payments on the new basis are made up to date. Under the provisions of this Act, and up to the 31st March last, the following revaluations had been approved by the Minister under section 5 of the Act: — Deferred-payment selections : Number, 243 ; area, 34,986 acres ; loss, £24,911 by revaluation. Perpetual-lease selections : Number, 10; area, 1,970 acres ; loss, £1,152 by revaluation. It will be seen that the average reduction on deferred-payment selections is 16s. 3d. per acre, whilst that on perpetual-le.ase selections is lis. 6d. It has been found in many cases that the reductions made in capital value have equalled, or exceeded, the total payments to be made in the case of deferred-payment selectors, in which case such selectors are entitled to their grants forthwith. The revaluations both in the field and in the consequent computations in the office has thrown a considerable amount of extra work on the officers of the department during the year, somewhat to the detriment, it is feared, of the regular work of inspection by the Crown Lands Rangers, on whose shoulders the field valuations fall. In many cases the members of the Land Boards themselves have made personal inspections of the properties to be revalued, and have thus aided materially in solving the difficult questions involved. Theemal Speings, etc. The work of administration of the department in this respect is practically confined to that of the hot springs at Hanmer Plains, which have, as in the previous year, attracted a considerable number of visitors, either from curiosity or from a desire to avail themselves of the curative properties of the waters, which have been proved to be efficacious in cases of rheumatism, sciatica, eczema, gout, or scrofulous complaints. The bath-keeper reports that the number of baths taken during the twelve months was 4,279, and the fees received amounted to £218 Bs. There is a married couple in charge of the establishment now ; so that lady visitors can have female attendance. Tempo Hot Springs. —Near the north end of the lake there are two establishments, where valuable sites containing hot springs, &c, have been let on long and improving leases to private individuals, who are, by terms of their leases, obliged to furnish stated accommodation, and to improve and adorn the grounds near the springs. Great improvements have been and continue to be made ; so that these places now offer considerable attractions to the tourist and those suffering from certain complaints. Waiotapn Valley. —In this locality, situated twenty miles from Rotorua, the State owns a most valuable property, which, in the future, will be the resort of large numbers of people. Thermal wonders of all kinds are to be met with, and healing springs of many varieties. As yet, no steps have been taken to utilise this place, beyond the opening of a carriage-road from Rotorua. Nuhaka Hot Springs. —During the last year some hot saline springs have been discovered in the northern part of Hawke's Bay, and an appropriate area will be reserved round them. The following is the report from the Colonial Laboratory on the character of the water: '-'This is a clear, colourless, and highly saline water, containing 1,723 grains of fixed salts per gallon, only 22 grains of which is silica. The remaining portion is principally composed of. alkaline chloride, with a fair proportion of alkaline carbonates. The water is rich in iodine. This water belongs to the group of mineral waters known as the alkaline chlorinated group. It should prove a valuable mineral water, as it resembles that of Wiesbaden, also that of Harrowgate and Cheltenham, but is much more highly charged with salts than they are, its specific gravity being that of common sea-water." Waitomo Caves. —These caves, which were discovered in 1889, and fully described in the Survey report for that year, have been during the period under consideration in charge of a caretaker appointed by Government, whose duty it is to guide visitors through the caves, and to prevent destruction or injury of their beauty, which is so common to all places of interest left to themselves. The land on which the caves are situated at present belongs to the Maoris ; but it is to be hoped that places like these will eventually become national property, and, by being under proper care and management, serve as an additional attraction to the many others that New Zealand offers to the tourist. During the year 325 people visited the caves, but there will probably be many more as soon as the road which is in course of construction, is completed, which will be shortly. The train from Auckland passes within six miles of the caves. State Foeests. At the date of last report an area of 1,385,104 acres had been reserved specially under the New Zealand State Forests Act, or became so reserved by being brought under the provisions of the Act. Since then five reserves, containing an area of 19,288 acres, have been withdrawn from reservation,