payment being made, and is exchanged for a Crown grant so soon as the Board is satisfied that the improvements have been completed.

After notification, lands may be selected for occupation, with right of purchase, under a license for twenty-five years. At any time subsequent to the first ten years, and after having resided on the land and made the improvements hereafter described, the licensee can, on payment of the upset price, acquire the freehold. If not purchased after the first ten and before the expiry of the twenty-five years of the term, the license may be exchanged for a lease in perpetuity. The rent is 5 per cent. on the cash price of the land. A half-year's rent must be deposited with the application, if for surveyed land, and this sum represents the six months' rent due in advance on the 1st day of January or July following the selection. If the land is unsurveyed, the cost of survey is to be deposited, and is credited to the selector as so much rent paid in advance, counted from the 1st day of January or July following thirty days' notice of the completion of survey. Residence on and improvement of the land are compulsory, as hereafter described. Land held on deferred payment may be mortgaged under the Government Advances to Settlers Act of 1894.

Perpetual Leases.

Lands notified under the optional system may be selected on a lease for 999 years (or in perpetuity), subject to the undernoted conditions of residence and improvements. The rental is 4 per cent. on the cash price of the land. In the case of surveyed lands, the application must be accompanied by half a year's rent, which represents that due on the 1st day of January or July following the date of selection. In the case of unsurveyed lands, the cost of survey must be deposited, and is credited to the selector as so much rent paid in advance, dating from the 1st day of January or July after thirty days' notice of completion of survey. Two or more persons may make a joint application to hold as tenants in common under either of the two last-named tenures. Crown lands may be leased to any society for the establishment of industrial, rescue, or reformatory homes, for a period of twenty-one years, with perpetual right of renewal at an annual rental of 5 per cent. on the capital value, subject to such conditions as the Minister may deem fit to prescribe. In the event of default, the land, with any improvements thereon, reverts to the Crown.

Conditions of Tenure.

Under all systems-excepting cash purchases or pastoral and small grazing-run leases-residence and improvements are the same. Residence is compulsory (with a few exceptions mentioned in the Act), and must commence on bush or swamp lands within four years, and on open or partly open lands within one year from the date of selection. On lands occupied with a right of purchase, residence must be continuous for six

years in the case of bush or swamp lands, and for seven years in the case of open or partly open lands; on lease-in-perpetuity lands it must be continuous for a term of ten years. The Board has power to dispense with residence in certain cases, such as where the selector resides on adjacent lands, or is a youth or an unmarried woman living with his or her parents. The term "residence" includes the erection of a habitable house to be approved of by the Board.

Improvements are the same for all classes of land-excepting cash purchases or pastoral and small grazing-run leases-and are as follow:Within one year from the date of the license or lease the land nust be improved to an amount equal to 10 per cent. of its value; within two years, to the amount of another 10 per cent.; within six years, to the amount of another 10 per cent., making 30 per cent. in all within the six years; and in addition to the foregoing, it must be further improved to the amount of £1 an acre for first-class land, and for second-class to an amount equal to the net price of the land, but not more than 10s. an acre. Improvements comprise the reclamation of swamps, the clearing of bush, cultivation, the planting of trees, the making of hedges, the cultivation of gardens, fencing, draining, the making of roads, wells, water-tanks, water-races, sheep-dips, embankments or protective works, or the effecting of any improvement in the character or fertility of the soil, or the erection of any building, etc.; and cultivation includes the clearing of land for cropping, or clearing and ploughing for laying down artificial grasses, etc.

Under the existing regulations, any group of persons numbering not less than twelve may apply for a block of land of not less than 1,000 acres nor more than 11,000 acres in extent; but the number of members must be such that there shall be one for every 200 acres in the block, and no one may hold more than 320 acres, except of swamp lands, of which the area may be 500 acres. The price of lands within a special settlement is fixed by special valuation, but it cannot be less than 10s. an acre. The rental may not be less than 4 per cent. on the capital value of the land; the tenure is lease in perpetuity. Residence, occupation, and improvements are generally the same as already described, and applications have to be made in the manner prescribed by the regulations.

Improved Farm Settlements.

Special regulations are in force for this class of settlement, and those who form settlements are selected from the applicants by the Commissioner, preference being given to married men. The area of the farms may vary from 10 to 200 acres, according to locality, and no settler can select more than one farm. The land is leased for 999 years at a rental of 4 per cent. on the capital value, to which is added 5 per cent. on the amount advanced by Government for clearing, grassing, etc. Residence for the first ten years is compulsory, and the improvements to be effected are similar to those on perpetual leases.

Village Settlements.

Village settlements are disposed of under regulations made from time to time by the Governor, but the main features are as follow:Such settlements may be divided into-(1) Village allotments not exceeding 1 acre each, which are disposed of either at auction or upon application as already described, with option of tenure, the cash price being not less than £3 per allotment; and (2) homestead allotments not exceeding 100 acres each, which are leased in perpetuity at a 4-per-cent. rental on a capital value of not less than 10s. per acre. Where a villagesettlement selector has taken up less than the maximum area prescribed, he may obtain an additional area in certain cases without competition on the same tenure and terms as the original holding. Residence, improvements, and applications are the same as already described. The leases are exempt from liability to be seized or sold for debt or bankruptcy. The Governor is empowered in certain cases to advance small sums for the purpose of enabling selectors to profitably occupy their allotments.

Grazing Areas.

Small grazing runs are divided into two classes: first-class, in which they cannot exceed 5,000 acres; and second-class, in which they cannot exceed 20,000 acres in area. These runs are leased for terms of twenty-one years, with right of renewal for a like term, at a rent of 2 per cent. on the capital value of the land, but such capital value cannot be less than 5s. per acre. The runs are declared open for selection, and applications and declarations on the forms provided have to be filled in and left at the Lands Office, together with a deposit of six months' rent, representing that due on the 1st day of March or September following selection. A selector may not hold more than one small grazing run, nor may he hold any freehold or leasehold land of any kind whatsoever over 1,000 acres, exclusive of the area for which he applies under this system. The lease entitles the holder to the grazing rights and to the cultivation of any part of the run, and to the reservation of 150 acres around his homestead through which no road may be taken; but the runs are subject to the mining laws. Residence is compulsory on bush or swamp land within three years, and on open land within one year; and it must be continuous to the end of the term, though this latter condition may in certain cases be relaxed. Improvements are necessary as follow:-Within the first year, to the amount of one year's rent; within the second year, to the amount of another year's rent; and within the next four years, to the value of two years' rent ;-making a sum equal to four years' rental to be spent on the run in six years. In addition to this, a first-class run must be improved to an amount of 10s. an acre, and a second-class run to an amount of 5s., if the land be under bush. After three years' compliance with these conditions, the run may be divided among the members of the selector's family who

are of the age of 17 years and upwards, and new leases may be issued to them on the terms and subject to the conditions of residence and improvements contained in the original lease.

Pastoral Leases.

Purely pastoral country is let by auction for a term not exceeding twenty-one years; but, except in extraordinary circumstances, no run can be of a carrying capacity greater than 20,000 sheep or 4,000 cattle. Runs are classified from time to time into those which are suitable for carrying more than 5,000 sheep (let as above), and into pastoral-agricultural country, which may either be let as pastoral runs, generally for short terms, or be cut up for settlement in some form. Leases of pastoralagricultural lands may be resumed without compensation at any time after twelve months' notice has been given. No one can hold more than one run unless it possesses a smaller carrying capacity than 10,000 sheep or 2,000 cattle, in which case the lessee may hold additional country up to that limit. Runs are offered at auction from time to time, and half. a year's rent must be paid down at the time of sale, representing that due in advance on the 1st March or September following; and the purchaser has to make the declaration required by the Act. All leases begin on the 1st March; they entitle the holder to the grazing rights, but not to the soil, timber, or minerals. A lease terminates over any part of the run which may be leased for another purpose, purchased, or reserved. The tenant must prevent the burning of timber or bush, and the growth of gorse, broom or sweet-briar, and destroy the rabbits on his run. With the consent of the Land Board, the interest in a run may be transferred or mortgaged, but power of sale under a mortgage must be exercised within two years. In case it is determined again to lease any run, it must be offered at auction twelve months before expiry of the term, and if, on leasing, it is purchased by some person other than the previous lessee, valuation for improvements, to be made by an appraiser, must be paid by the incoming tenant, to an amount not greater than three times the annual rent, except in the case of a rabbit-proof fence, which is valued separately. Runs may also be divided with the approval of the Land Board. Where a lessce seeks relief, and the application is favourably reported on by the Board, the whole or part of one year's rent payable or paid may be remitted or refunded, or the lease may be extended, or a new lease or license issued in lieu thereof. The Minister may also postpone payment of rent or sheep rate where a tenant has applied or signified his intention of applying for relief.

Acquisition of Land for Settlement.

The administration of the law in respect of the acquisition of land for settlement is vested in a Board styled the Board of Land Purchase Commissioners, and consisting of the Surveyor-General, the Commissioner of Taxes, and the Commissioner of Crown Lands for any district

in which it is proposed to acquire land, the Land Purchase Inspector, and a member of the Land Board of the district. The duties devolving upon the Board are to ascertain the value of any lands proposed to be acquired, and to report to the Minister as to their character and suitableness for settlement, and as to the demand for settlement in the locality. Land may be compulsorily taken for the purposes of the Act. The rent of land acquired and disposed of under the Act is at the rate of 5 per cent. on the capital value of the land, and the capital value is to be fixed at a rate sufficient to cover the cost of the original acquisition, together with the cost of survey, subdivision, and making due provision for roads. Where land acquired contains a homestead, a lease in perpetuity of the homestead and land surrounding it, not exceeding 640 acres, may be granted to the person from whom it was acquired, on conditions prescribed, at a yearly rental of 5 per cent. on the capital value of the land, such capital value to be determined in the manner set forth above. A large area, principally in the North Island, remains in the hands of the native race, and this land may be acquired for settlement after a report upon its character, suitableness for settlement, and value, has been made by a Board specifically appointed for the purpose. On notification, the land becomes Crown land, subject to trust for native owners.

AUSTRALASIAN SETTLEMENT.

The particulars given in the foregoing pages will have made the fact abundantly clear that the main object of the land legislation, however variously expressed, has been to secure the settlement of the public estate by an industrious class, who, confining their efforts to areas of moderate extent, would thoroughly develop the resources of the land; but where the character of the country does not favour agricultural occupation or mixed farming, the laws contemplated that the State lands should be leased in blocks of considerable size for pastoral occupation, and it was hoped that by this form of settlement vast tracts which, when first opened up, seemed ill-adapted even for the sustenance of live-stock, might ultimately be made available for industrial settlement. To how small an extent the express determination of the legislators to settle an industrious peasantry on the soil was accomplished will presently be illustrated from the records of several of the provinces; but in regard to pastoral settlement the purpose was fully achieved--large areas, which were pronounced even by experienced explorers to be uninhabitable wilds, have since been occupied by thriving flocks, and every year sees the great Australian desert of the early explorers receding step by step. The following statement shows the arca of land alienated by each province, the area leased, and the area neither alienated nor leased at the close of 1901. The term "alienated" is used for the purpose of denoting that the figures include lands granted