8.—6

VII

The total area proclaimed as available for selection by discharged soldiers to date, 31st March, 1917, is 337,961 acres, comprising 712 holdings. Up to the 31st March, 1917, 384 discharged soldiers and members of the Expeditionary Force have been placed on holdings, the total area allotted being 309,092 acres. Where necessary, arrangements will be made to temporarily relet large areas of pastoral runs in the South Island suitable for subdivision, the licenses of which expire in March, 1918, in order that the soldiers may compete for them on their return at the conclusion of the war. The question of extending the licenses will be finally decided in September, by which time it will be apparent if such extension is required. The majority of the soldier-settlers readily adapt themselves to their new occupation —in fact, the success of some of the settlements is already assured. The settlers are doing well, and improving their holdings with the aid of Government advances. Owing to the comparatively small number of discharged men who desire to take up land there has been so far no difficulty in meeting the demand; and, in anticipation of the return of a large number of soldiers in the near future, efforts are being made to have suitable land available to meet the demand as it arises. Financial Assistance to Soldiers. Up to the 31st March last advances amounting to £62,421 were authorized to 199 soldier-settlers. Of this sum, £30,168 was advanced to 143 men. The advances were made under the Discharged Soldiers Settlement Act, 1915, for the purpose of enabling buildings to be erected and bushfelling, fencing, and ploughing to be done; in addition, assistance has been given to purchase stock, comprising cattle, sheep, horses, and pigs, also seed oats, wheat, and potatoes. Grass-seed and fencing-wire have been, purchased in bulk and distributed to many of these settlers in accordance with their requirements, and the value thereof secured by mortgage. All advances are secured by first mortgage, and bills of sale given against chattels as collateral security. Great care is exercised to see that sufficient security is provided before the money is advanced. Under the Act authority is given to raise £100,000 for the purpose of making advances to discharged soldiers; but as £62,421 was committed at the 31st March, and further heavy requests are likely to be made during the year, the borrowingpowers under the Act will have to be substantially increased. To relieve the financial strain upon men serving with the Expeditionary Forces, or who have been discharged from active service, remissions of rent, amounting to £5,311, have been provided, and to meet cases arising during the current year I estimate that about £10,500 will be required. LAND FOR ORDINARY SETTLERS. Owing to large areas of suitable lands being set aside for disposal to discharged soldiers the total area offered for general application during the year was restricted to small, rough, or isolated areas, and education and other reserves. In addition, considerable areas of land opened in previous years and remaining unselected are available for public selection. AGRICULTDEE. The agricultural industry, covering pastoral, dairying, and horticultural operations, has continued to maintain its position as an important factor in the prosperity of the Dominion. Agricultural products have again proved the leading feature of our exports, notwithstanding the fact that a large amount of produce, which would under normal conditions have been exported during the year, still remains in store owing to lack of shipping-facilities. The majority of the items of agricultural exports, it is true, show decreases when compared with the extraordinarily large figures for the previous year, although