in lease, if he has reduced to cultivation 25 per cent of his leased premises and has substantially performed all other conditions of his lease.

CASH FREEHOLDS.

Cash Freehold Lots are sold at auction, to the highest qualified bidder, at appraised value as upset price.

The qualification of applicants for Cash Freeholds and the areas of land which may be acquired are the same as those under Right of Purchase Lease system.

APPLICATIONS.

Applications must be made to Sub-Agent of District in writing, with sworn declaration as to qualifications, and a fee of 10 per cent of appraised value of lot, which fee is forfeited if applicant declines to take the premises at the appraised value, and is credited to him if he becomes the purchaser of the lot. If such applicant however is outbid, his fee is returned to him.

If two or more applications are made and there is no bid above the upset price, the first applicant takes precedence.

The purchaser at auction sale must pay immediately thereafter one-fourth of purchase price, and thereupon receive a "Freehold Agreement."

CONDITIONS OF FREEHOLD AGREEMENT.

The freeholder shall pay the balance of purchase price in equal installments in one, two, and three years, with interest at 6 per cent, but may pay any installment before it is due and stop corresponding interest.

Twenty-five per cent of agricultural land must be cultivated and pastoral land fenced before the end of third year.

Freeholder must maintain his home on the premises from end of first to end of third year.

He may not assign or sublet without consent of Agent of Public Lands.
He must allow agents of the Government to enter and examine the premises.
He must pay all taxes that may be due upon the premises.

If all conditions are fulfilled, he is entitled at end of three years to Patent giving fee-simple title.

In case of forfeiture or surrender, the land and permanent improvements are reappraised separately, and the value of such improvements when received by Government from new tenant or freeholder will be paid to surrendering freeholder.

SETTLEMENT

Six or more qualified persons may for holdings in one block.

ASSOCIATIONS.

form a 66

Settlement Association" and apply

The provisions for cash freehold apply to the settlement of such blocks, but first auction sale is confined to members of such Settlement Association.

Any lot in such block which may be forfeited or surrendered, or which is not taken up by any member of the Settlement Association within three months, shall be open to any qualified applicants.

Disputes, disagreements, or misunderstandings between the parties to certificate of occupation, homestead lease, right of purchase lease, or cash freehold, and relating thereto, which can not be amicably settled, shall be submitted to the Circuit Judge in whose jurisdiction the premises are situated, and his decision shall be final, subject only to appeal to Supreme Court.

CASH SALES AND SPECIAL AGREEMENTS.

With consent of Executive Council, public lands not under lease may be sold in parcels of not over 1,000 acres, at public auction, for cash, and upon such sale and payment of full consideration a land patent will issue.

Parcels of land of not over 600 acres may, with consent of executive council, be sold at public auction upon part credit and part cash, and upon such terms and conditions of improvement, residence, etc., as may be imposed.

Upon fulfillment of all conditions, a Land Patent will issue.

GENERAL LEASES.

General leases of public lands may be made for a term not exceeding twentyone years.

Such leases are sold at public auction, and require rent in advance quarterly, semiannually, or annually.

The conditions of general leases are made at discretion of the Commissioners, and may be made for any class of public lands.

METHODS OF ACQUIRING LAND.

In addition to the foregoing, the pamphlet says:

Land can be obtained from the Government by two methods, viz, the cash freehold system and the right of purchase leases. Under the first system, the land is The purchaser pays one-quarter in cash and the rest in equal

sold at auction.

installments of one, two, and three years, interest being charged at the rate of 6 per cent upon the unpaid balance. Under this system, the purchaser is bound to maintain a home on the land from the commencement of the second year to the end of the third. The right of purchase leases are drawn for twenty-one years at a rental of 8 per cent on the appraised value of the land. The lessee has the privilege of purchasing the land after the third year at the original appraised value, provided 25 per cent of the land is reduced to cultivation and other conditions of the lease filled. In this case, a home must be maintained from the end of the first year to the end of the fifth year. The limit of firstclass agricultural land obtainable is 100 acres. This amount is increased on lands of inferior quality. Under the above conditions, the applicant must be 18 years of age and obtain special letters of denization. Land can also be obtained from the various land and investment companies and from private parties.

VI.

Foreign Commerce.

The United States practically monopolizes the trade of Hawaii. According to reports of United States Consul-General Mills, dated Honolulu, August 31, 1896, and March 10, 1897, printed in Volume I, Commercial Relations of the United States, 1895–96, pages 999-1017, inclusive, of the total exports from these Islands, the United States received in 1894, 98.42 per cent, and in 1895, 99.04 per cent. Of the imports, in 1894, 76.23 per cent and in 1895, 79.04 per cent were from the United States.

The total exports from the Hawaiian Islands, according to the books of the collector of customs, adds Consul-General Mills, were $9,140,794.56, and $8,474,138.15, for the years 1894 and 1895, respectively, a decrease of $666,656.41. The imports for 1894 were $5,713,181.43, and for 1895, $5,714,017.54, an increase of $836.11.

The following tables show the exports and imports for 1894 and 1895, together with the increase and decrease in values by