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gravel. Exchanges are now made with the owners of adjoining freehold lands in order to furnish better access to the main roads, and now that the provisions with regard to pastoral runs.have been improved by recent legislation, these areas should be cut up into suitable runs. Tenures. Owing to the great number of holdings made freehold during the year there is only a small increase in the number of tenants on the books. The total is now 1,953. The tenures are divided into four distinct classes— i.e., ordinary Crown lands (including Native-land settlement), 898 tenants, holding an area of 492,387 acres, and paying an annual rental of £41,452 : lands for settlement, 704 tenants, holding an area, of 223,102 acres, and paying an annual rental of £73,606 : national-endowment lands, 116 tenants, holding an area of 222,218 acres; annual rental, £7,308: education and other endowments, 235 tenants, holding an area of 87,543 acres, and paying an annual rental of £9,951. Inspections and Ranger's Reports. In the northern or Gisborne portion of the district the Crown Lands Ranger during the year made 285 inspections of leasehold sections held on different tenures, covering an area of 216,922 acres; and 151 miscellaneous inspections. The value of improvements required to be done by the tenants was £161,136, and, according to the Ranger, the improvements actually effected are valued at £429,426, and there were only ten defaulters for residence, principally on account of no schools being near enough to send children to. In the southern or Napier portion of the district the Crown Lands Ranger inspected and furnished reports on 348 holdings, covering an area of 199,315 acres, and made 188 miscellaneous inspections, including valuation of Springhill Settlement, in. conjunction with a special valuer, and revaluations of education endowments. The value of improvements required to be effected amounted to £202,911, and improvements actually effected £370,561. There were ninetydefaulters —fifty-two for improvements, thirty-four for residence, and four for other reasons. In fairness to some of the defaulting settlers, especially those in AVaihau Settlement, Manawaangiangi, and Ilokai Blocks, I may say that it was mainly duo to the non-construction of the roads that they were unable to comply with the full condition of their leases. Bush felled and Area grassed. Of the holding's inspected by the Crown Lands Rangers, only 6,377 acres of bush was felled and the area grassed —the lowest on. record. The settlers in more settled districts are now turning their attention to stumping and making ready for cultivation. Purchase of Fee-simple during the Yeap.. In the last annual return I made mention that in all probability more tenants would take advantage this year of the opportunity of making their holdings freehold than was the case last year. This has been realized. The favourable season, combined with good prices for sale of stock and wool, has induced settlers to invest their savings in the land, and to make it their own. The number of tenants who have made their holdings freehold is forty-eight, comprising an area of 24,954 acres; besides these there are fourteen tenants, holding an area of 6,018 acres, acquiring the freehold under the deferred-payment system, which takes twenty years to complete. The number of tenants who have acquired and are acquiring the freehold during the past year comprises 5 per cent, of all those who are eligible to purchase, which is a very satisfactory percentage when one considers the amount of money expended in effecting the necessary improvements to add to the carrying-capacity of the land. Forfeitures and Surrenders. Ten transactions on land held under permanent tenures came under this heading, comprising an area of 2,975 acres. Four of these tenants abandoned their holdings owing to the land not being equal to their expectations. It is, of course, always to the advantage of intending applicants to view the land before lodging an application; they will then only apply for the land that meets their requirements, and by this act of caution ensure to a certain degree the success that, they want; otherwise they but imped© the progress of a new settlement. Transfers. < The total number of applications to transfer submitted to the Land Board during the year was 151, of which thirteen were declined. As the detailed information with regard to transfers furnished last year met with marked approval, I am supplying below a schedule on similar lines. Owing to the increased facilities given to Crown tenants to acquire the fee-simple of their holdings, the Land Board have, in cases where the consideration appeared abnormally high and where the lessee had the right to acquire the freehold, invariably declined such applications, thereby refusing to accept new tenants on such terms, and absolving themselves from any future responsibility with regard to the success or failure of the proposed transferee. In most cases where such applications have been refused the lessees have taken advantage of their right to acquire the freehold, and dealt directly with the proposed transferee. The only restriction, therefore, with regard to future dealings in these lands is the limitation of area prescribed by Part XIII of the Land Act, 1908, and its amendments. It is still my opinion that the education-endowment leases, some of which are very valuable, should come under this limitation.

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