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every month at Jackson's Bay. I have no doubt but in time this will become a thriving settlement. I believe there are several thousand acres of as fine land-as is to be found in New Zealand, which could be easily cleared, and which is specially adapted for grass-growing. There are places where sawmills could be erected, any quantity of timber —white- and red-pins, totara, red-birch, &, c , —being procurable. The lake and river scenery is beautiful, and, from careful inquiries, I believe that steamers of two or three hundred tons could come in over the bar at any time without any danger, and this must be the outlet for the district. It is something to know that some of the best land in Otago is still open for selection. J. P. Maitland, Commissioner of Crown Lands.

SOUTHLAND. The subjoined table will show in a brief but comprehensive manner the result of the year's transactions and the several sources from which the revenue has been obtained: —

It will be seen by the above return that the revenue is greatly in excess of my last year's estimate, and fully equal to that of the previous year. Another satisfactory feature is the small percentage of arrears. . Land for Selection.— There are several blocks in this district which might be placed in the market for selection, but as these are nearly all covered with bush the Land Board is not anxious to push settlement in this class of land, where it is recognised that the future, if not the present, value of the milling timber is more than the prairie value of the land. This is applicable to nearly all the Waikawa and Otara Blocks where sawmills have not yet been cutting. Of course it is recognised that the present value of the bush is not much so long as the more easily accessible timber is sufficient to supply the market. The time, however, is fast approaching when the back blocks will have to be drawn on for supplies. It appears, therefore, well to conserve them for future disposal. This question, however, affects second-class lands only, as land fairly good, and with only a limited amount of milling timber, would pay better if utilised for immediate settlement. In the latter class I include that lying on the east side of the Waiau Eiver, in Longwood and Waiau districts. This land carries only sufficient timber for fencing and building purposes, and would consequently pay better were it felled and grassed ; in the meantime it is either State forest or forest-preservation reserve, and therefore will require parliamentary approval for the removal of the reservation. The Land Board will recommend that a block in the locality referred to be thrown open for settlement. Land open for Selection.— The land open for selection consists principally of that shown in the Land Guide, the greater part of which is inferior bush, swampy, cold, clay land. During_ the ensuing year I propose asking one of the members of the Land Board to accompany me in a thorough inspection of all the surveyed land for the purpose of reclassifying, valuing, and grouping these sections, and if possible place the lands at such a value as may secure their occupation in some way. The same remarks may also apply to township lands, the sections of which bulk largely in the Land Guide. Many of these were laid out anticipating a greater distribution of towns

System. u w JO floo 3 2 S 03 Area. Cash paid during the Year. Arrears of Bents. Number of Tenants on Books. , Area held by such Tenants. Cash— Town, suburban, and village Eural Occupation with right of purchase - Lease in perpetuity Deferred payment Perpetual lease Perpetual lease made freehold Small grazing-runs Pastoral runs... Miscellaneous* Improved farms Timber and State forests Other sources... 31 8 14 47 4 A. B. P. 49 3 12 968 2 26 1,551 2 18 5,574 0 32 1,257 3 29 £ s. d. 462 4 3 637 13 7 809 9 10 2,240 12 5 2,165 3 11 1,421 9 2 804 5 0 £ s. d. 31 6 6 234 14 3 33 8 0 84 16 8 127 413 154 302 A. R. P. 22,287 3 10 66,709 1 26 24,284 3 5 27,636 1 38 2 6 38 12 6,651 2 33 71,102 0 0 9,279 2 6 1,225 2 10 768 15 8 3,745 3 10 731 3 8 155 16 7 28 19 7 20 88 282 52 61,906 1 13 1,250 795 0 0 45,355 2 13 4,977 2 14 2,826 15 1 527 13 8 Total Crown Endowments ... 162 97,661 0 6 17,140 10 2,219 1 1 9 569 1 7 1,438 82 1,503,952 3 39 54,085 3 37 Total ... Land for settlements — Lease in perpetuity ... Miscellaneous 162 8 1 97,661 4,486 5 0 2 0 6 6 9 19,359 11 10 1,426 16 4 107 16 0 569 1 7 147 7 9 1,520 55 2 1,558,038 3 36 15,504 2 20 25 0 9 Grand total 171 102,152 2 21 20,894 4 2 716 9 4 1,577 1,573,568 2 25 * Includes licenses under Mining Districts Land Occupation Act.