3

C—1.

On the Coromandel Peninsula land is still being selected fairly freely under the Hauraki pastoral leases and mining district land occupation license tenures. These lands are almost entirely pastoral in character, although of good quality as such, and the present tenures are, notwithstanding much that has been said and written to the contrary, well adapted for their settlement. The lack of road-access is being remedied as rapidly as possible, several surveyors being engaged on the work of surveying and laying out roads. Improved-farm Settlements. The three improved-farm settlements, Rangitoto Nos. 1 and 2, and Korakonui, which are still in the initial stages of their development, have made satisfactory progress during the year. In these three settlements there are now seventy-four holders, and the number of souls residing is 284. The area occupied is 10,889 acres, of which 3,530 acres have been grassed, and are now carrying 796 head of cattle; the value of improvements effected, including those paid for by Government, is £13,968. A number of the settlers have commenced dairying during the past season, and where necessary the Government has supplied young dairy stock upon guaranteed terms of payment. The settlers are generally well satisfied with their holdings, and there seem to be good grounds for anticipating that the settlements will be self-supporting next year. Transfers. The total number of applications for transfer dealt with during the year was 805, of which 762 were, after careful scrutiny and consideration, approved, and forty-three were refused. Noticeable amongst the applications received were a number of transfers by way of exchange for other properties, an inflated value being often fixed by both parties, while in many cases also it is found that a very small proportion of the purchase-money passes in cash. The Land Board has in all cases set its face steadily against transactions of a speculative character, and has endeavoured, as far as possible, to ensure that the prospective tenant, when approved, shall enter the property with reasonable chances of success, notwithstanding the large amount often paid by way of goodwill. These amounts are, however, it must be admitted, often justified, so far as the incoming tenant is concerned, by the general increase of values, improved facilities of communication, and other advantages. It is satisfactory to notice that the tendency to subdivide larger holdings continues, as settlers find that smaller areas can be more successfully worked and brought to a higher level of productivity. Forfeitures. During the year 123 leases, covering an area of 115,009 acres, were forfeited; these, however, included three pastoral runs totalling 86,411 acres, so that the remaining area is only 28,598 acres. It is again necessary to point out that a large number of these forfeitures arise from the ill-advised practice of many persons in applying for lands which they have not personally inspected, and which, after selection, they find unsuited to their requirements. It cannot be too often repeated that such a practice is in the highest degree injudicious, and more calculated to lead to disappointment and loss to the applicant than would be the expenditure of a comparatively small amount in inspecting the land before lodging an application. Kauri-gum Districts Settlement. The provisions introduced by legislation last session for the settlement of lands in kaurigum districts have been the subject of numerous inquiries. No lands have yet been offered under this system, as it is necessary to effect surveys before the land can be proclaimed, since the indiscriminate selection permitted under the Kauri-gum Industry Act for residence and business sites is not adapted to a proper scheme of settlement providing for freehold tenure, with the attendant necessity for making adequate provision for road-access and well-considered methods of subdivision. Preliminary surveys of suitable areas are now in hand. The residencesites under the Kauri-gum Industry Act have been very successful, and neat whares and small gardens are common. Set:h;ement of Pumice Lands. With the shortening supply of Crown lands available for settlement in more favoured localities, the question of settlement of the vast areas of pumice lands in the southern parts of the district is coming into prominence. Pioneer settlers have shown that these hitherto-despised lands are nevertheless capable of taking their place among the productive areas of the Dominion, and suitable proposals for their utilization are now under consideration. Meanwhile there appears to be no doubt that these lands are not " poor man's country," nor adaptable for subdivision into small areas. To bring them into fertility and maintain them in a condition of productiveness requires the expenditure of capital, as well as the provision of means for landing artificial manures on the ground as cheaply as possible, lest the cost of production be rendered prohibitive. Kauri-gum. The past dry season has been a favourable one for diggers, enabling them to work swamp areas which have hitherto remained untouched, while the high prices obtained have caused areas which were supposed to be worked out to be again dug over to a greater depth. Generally speaking, however, the greater portion of the gum obtained during the season has been taken from private lands, the resources of the gum reserves being husbanded for some future time. The surface gum in many localities is becoming exhausted, but this is only the recent deposit, for the older forests lower down have left larger deposits, which will last for very many years to come.