The difficulties encountered by the settlers had been such as would have discouraged most men, but, in spite of them, the total number had only fallen in eighteen months from 598 to 440, and the majority of witnesses expressed themselves satisfied with their lot. They admitted the necessity of further advances, but pleaded that they had a heavy burden to bear in the cost of machinery, and that their labour, especially in the planting of fruit trees, could not yield an immediate return. The financial position was thus summarised:--The Government had advanced L26,000, the unpaid accounts amounted to about L11,000, and the improvements were valued by the Commissioner of Crown Lands at L41,000. During 1896 the further advances had been expended, but the settlements had not become self-supporting, and the increased burden of debt and uncertainty as to the future had caused many of the settlers to become disheartened and others to leave in despair. On the other hand, the appointment of an expert to exercise the additional powers conferred upon the Commissioner and to give advice to the settlers, had led to the diminution of quarrels and disagreements among them and to a better direction of their work. In view of these facts the Government decided to close four of the settlements which had been formed upon land unsuitable to the purpose, owing to the poorness of the soil or the absence of facilities for profitable irrigation. It has been {11} estimated that the remainder have sufficient irrigable land to maintain a population of about three hundred families, and that they require an average of about L25 per settler to make them self-supporting. A few enthusiasts alone believe that any portion of the principal of the loans will ever be repaid; but the Government will have no cause to complain if they receive regular interest on the money. Some difficulty is likely to arise in the disposal of the produce. There is a considerable market for vegetables on the river, but it will soon be overtaken by the supply. The settlers will probably devote most of their land to fruit growing and dairying, and will be able to take advantage of the Export Department.