The arrest in 1916 of prophet Rua Kenana followed the last instance of armed Maori resistance to Pakeha. Rua established a community at Maungapohatu in the Ureweras that attracted Maori disgruntled with the Pakeha system. Rua had discouraged recruitment for the First World War and broke prohibition laws by selling alcohol. An expedition made its way into the Ureweras and, after a gunfight in which Rua's son died, the prophet was arrested. The judge at Rua's trial for sedition told Rua his 18-month sentence for resisting arrest was 'the lesson your people should learn from this trial'.
In November 1918 Tahupotiki Wiremu Ratana experienced visions that led him to found the Ratana Church. The Ratana movement had a strong focus on largely Christian religion and healing. Its leaders had economic and modernisation goals, and they demanded that the Treaty of Waitangi be ratified. In the 1920s Ratana formed a political arm, and from the mid-1930s it entered into an alliance with the Labour party: Labour nominated Ratana leaders as its candidates in the Maori electorates. By 1943, Ratana Labour candidates had won all four Maori seats, which gained Ratana a much stronger voice in governing circles.
Turangawaewae marae in Ngaruawahia was made the traditional home of the Maori King, on land regained in the aftermath of the wars and confiscation of the 1860s.
In 1926 a royal commission began to inquire into the land confiscations of the 1860s. It found some confiscations to have been excessive and recommended compensation. Taranaki Maori accepted an annual payment of £5000 from 1931, but negotiations for the other settlements were delayed until 1944. In that year, compensation was made to several major iwi for land taken in the 19th century. The three major settlements were: Ngai Tahu (£10,000 per annum for 30 years), Waikato–Maniapoto (£6000 per annum) and Taranaki (£6000 per annum for 50 years and £5000 thereafter).
Native Minister Apirana Ngata set up the first Maori land development scheme in 1929. The government provided funds and sometimes contributed small areas of Crown land. The tenure of the farmers on the schemes, who were commonly chosen from among the landowners, was not always satisfactory. Inadequate Crown management of some schemes resulted in large accumulating debts, which had to be borne solely by iwi; debt on the Ngati Manawa Development Scheme has only recently been paid off.
Waitangi Day was formally celebrated for the first time in 1934. Two years earlier Governor-General Lord Bledisloe gifted to the nation James Busby's former house at Waitangi, where the Treaty was signed. Busby's home became known as the Treaty House, and construction of a whare runanga beside it began. This was finished in time for the 1940 Centennial.
The 1940 Centennial celebrated the signing of the Treaty of Waitangi as the nation's founding moment. Copies of the Treaty of Waitangi were hung in every school and marae in 1945.
In 1947 the government replaced all official references to Native with Maori. This included the Native Land Court, which became the Maori Land Court.
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