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System. Number. A p Perpetual lease ... ... ... ... 11 ... 3,888 2 0 Village homestead special settlement ... ... 3 ... 30 0 0 Small grazing-runs ... ... ... ... 1 ... 1,035 2 0 Special settlement ... ... ... ... 5 ... 508 233 Total 20 ... 5,462 2 33 Farm Homestead Associations. —Twenty-two ballots for sections in these associations have taken place. I attended and personally conducted seventeen of them. One was held under the supervision of the Commissioner at Christchurch, two under the Postmasters in, the places where they were held, and in the other two cases the sections were schemed out and allotted at the time the blocks were granted. When conducting the ballots I saw a large number of the members, and was glad to find the members in those associations formed in the country were, as a rule, a good stamp of men, and likely to prove as genuine settlers as one could expect to get. I, however, noticed those formed in the larger centres of population consisted to a certain extent of people following trades and occupations, who would probably not make such good settlers as the others for want of experience. It is yet too early for the Eangers to report on what bushfalling has taken place, but I hear from the surveyors that in some of the associations a good deal of bush will be felled this winter, as in the Salisbury Association, although the ballot was only held in October last, several members went on to the ground immediately, and have already felled and grassed sufficient areas on their sections for homestead sites, and to give them feed for their horses whilst felling this winter. Three hundred claims under "The Naval and Military Settlers' and Volunteers' Land Act, 1891," were received and examined, and evidence taken in 190 cases. Courts of inquiry were held at Wellington, Palmerston North, Marton, Wanganui, and Masterton. The correspondence in connection with these claims has entailed a considerable amount of work upon myself and the office. John H. Baker, Commissioner of Crown Lands.

4—a i.

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