CORRESPONDENCE RELATIVE TO THE CUSTODY AND INVESTMENT OF SUPREME COURT FUNDS

Appendix to the Journals of the House of Representatives, 1865 Session I, D-06

CORRESPONDENCE RELATIVE TO THE CUSTODY AND INVESTMENT OF SUPREME COURT FUNDS

D. -No. 6.

PBESENTED TO BOTH HOUSES OP THE GENERAL ASSEMBLY BY COMMAND OF HIS EXCELLENCY

WELLINGTON. 1866.

B.r—Nft. .£.

No. 1. THE ATTOBNET-GENEBAL TO THE JUDGES OP THE SUFBEME COUETS.-Attorney-General's Office,. Wellington, Bth March, 1865. Sib,— I have to draw your Honor's attention to the subject of various funds arising from money payable into the Supreme Court or the Registrars thereof in respect of matters coming under the jurisdiction of the Court particularly in reference to 1. Funds belonging to Intestate Estates or received under the Real Estates Administration Act. 2. Funds belonging to Suitors. 3. Funds belonging to Insolvent Estates under the Debtors and Creditors Act. The attention of the Government has been forcibly drawn to this subject by recent instances of default on the part of the public officers, in consequence of which, demands for indemnity have been made on the Public Treasury by private individuals who have sustained losses by reason of such defaults. . . In the opinion of the Government, measures should be adopted without delay to dimmish, if' not altogether to obviate risks of this nature. It has also occurred that large sums of money have lately come to the hands of the Treasury by way of deposit, pending some action of the Supreme Court as to the final disposition thereof. For the sake of avoiding risks by the default of public officers charged with the custody of public funds, distinct provision should, in the opinion of the Government, be made for their management. I respectfully invite your Honor's attention to this subject with the view of eliciting your Honor's opinion as to the most advisable mode of dealing with this subject. At the same time I respectfully venture to submit for your Honor's consideration the following suggestions, First.—As to the Intestate Estates I suggest that forthwith steps should be taken for auditing all oustanding accounts. Such audit to be made through an inspector or auditor appointed by the Government. _ , Whatever balances may upon the result of such audit be found to be in the hands of Registrars should be paid immediately to the credit of the Colonial Treasurer. Such accounts should be kept distinct from the Treasurer's ordinary accounts and should be specially entitled " Intestate Estates Account" and should not be operated upon except upon the warrant or order of the Judge. All monies hereafter received on account of Intestate Estates should be paid into the Colonial Treasury immediately after their receipt. All disbursements out of such account should be made by the Registrar by direction of the Judge who should obtain the necessary funds for such disbursements by warrant on the Colonial Treasurer, week by week, or otherwise, as he may require, and the Registrars should submit to the Judge weekly or oftener as occasion may require an estimate of the amount required to be so drawn. An accountant should be attached to the Court, who may also be the clerk, whose duty it should be to keep the accounts and submit the same to the Judge weekly or oftener as the case may require. The accounts should be subjected to inspection from time to time by the Judge or his'order, as well as by the Colonial Treasurer, or by any person appointed by him, and should be audited by some officer appointed by the Government. Second. —As to funds belonging to suitors, I respectfully submit for your Honor's consideration the expediency of adopting regulations similar to the foregoing. Generally, as regards the funds when the special circumstances of the case require or make it expedient that monies should be retained for a lengthened period they should be invested and the Judge should have power to order such investment to be made upon securities of the Colonial Government, or where it shall appear expedient, in the security of the British Government. I shall be glad to know whether in your Honor's opinion the powers of the Supreme Court are already sufficient for the above purposes or whether fresh legislation is required. Third.—As regards funds arising from estates coming under the operation of " The Debtors and Creditors Act" the same general objects are required to be kept in view. I shall feel obliged by your Honor's favouring me with suggestions as to the best plan for the realization, safe keeping, and administration of these last mentioned estates, with a view to legislation on the subject by the General Assembly in connection with contemplated amendments of " The Debtors and Creditors Act 1862." I have, &c, Heney Sewell.

Circular, K;>. ■'■».

CORRESPONDENCE RELATIVE TO THE CUSTODY AND INVESTMENT OE SUPREME COURT FUNDS.

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No. 2. MB. JUSTICE JOHNSTON TO THE ATTOHNET-GENEEAL. Judge's Chambers, Wellington, 13th March, 1865. Sir,— I have the honor to acknowledge tho receipt of your Circular (No. 36) respecting the various funds paid into the Supreme Court, or under its control, and to assure you that I shall give this important matter as well as ihat referred to in your Circular (No. 8) respecting Insolvent Debtors my prompt and careful attention. I have, &c, The Hon. the Attorney General, Alexander J. Johnston. "Wellington. No. 3. MR. JUSTICE JOnNSTON TO THE ATTOBNEY-GENEBAL. Judge's Chambers, Wellington, 23rd June, 1865. Sib,— I have now the honor of enclosing according to promise my observations on the subject of funds administered under the authority of the Supreme Court. I have, &c, The Hon. the Attorney-General, Alexandeb J. Johnston. Wellington. Observations on the subject of Funds administered under the authority of the Supreme Court. 1. My attention has frequently been called to the necessity for some such measures as are alluded to by the Honorable the Attorney-General in his circular of the Bth March, 1865, respecting Intestates' and Insolvents' Estates, and money paid into Court in the course of ordinary litigation. 2. It seems to me that it may be assumed on the one hand, that the persons interested in such funds have a right to look to the State to provide for their safe custody, and on the other, that they ought to make some compensation to the State for the security thus afforded to them. 3. Estates to be administered by authority of the Supreme Court, such as Intestate's and Insolvent's estates, and estates administered in the course of actions for specific relief may stand, in some respects, on a different footing from monies merely paid into Court for security in the course of ordinary litigation—the Court having something of the character of a trustee in the former casea, and being merely a stakeholder in the latter. But I think that, in a system such as I am about to suggest, there would be no necessity for making any practical difference in thia respect. 4. It has always appeared to me a very reasonable thing that sums of money, under the control of the Supreme Court, should bo allowed to remain improductive either to the parties interested in them, or to the State which undertakes, through its supreme tribunal, to protect their interests. The parties have surely a right to expect that such funds will be dealt with so as to produce as much accumulation as may be consistent with security. 5. Several modes have occurred to mo for disposing of such funds, but whatever the mode, adopted, I think it would be desirable, for the sake of convenience and economy, that all the kind of funds above mentioned should be dealt with in the same manner. 6. (1.) The first mode of disposal, and it seems to me the best which I have thought of, is to pay all such moneys into the General Treasury, but to a separate fund, to be called " The Supreme Court .bund," and through an officer of the Treasury, to be called " The Receiver of the Supreme Court Fund," treating the funds as moneys borrowed by the Government at a fixed rate of interest, whereof a certain proportion should be stopped towards the defraying the costs of administration ; the operations on the fund being conducted in the manner which I shall presently indicate. (2.) A second mode of dealing with such funds would be to enter into an arrangement with a bank of sufficient standing to afford reasonable security to the Government for conducting, at its variours branches, the business of the Supreme Court Fund —the bank paying an interest agreed upon, and substraetmg a fixed commission for management. 2T.8. —It may be asssumed that there would always be a considerable floating capital in the hands of the bank throughout the Colony. (3.) A third method would be to have an Accountant-General's department, with local representatives ; the funds to be invested by them from time to time by the direction

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either of the Supreme Court, or the Executive Government, which would be responsible for their safety. 7. The last course above indicated seems to me far from a desirable, if it be not an impracticable one in the existing state of the Colony, and I belive the first course would be by far the simplest and most economical. 8. The fund might be secured either by Debentures or other securities of the Government, or by direct charge on the revenue. N.B. —In Intestate's and Insolvent's estates, a special per centage charge should be given for administration. 9. At the Seat of Government, and in populous places, a Clerk in the Treasury Department might act as " Receiver of the Supreme Court Fund," and at less important places the SubTreasurer might be the Eeceiver. But in all cases there should be a separate account for the fund, aud documents should be in the name of the officers by description as " Eeceiver of the Supreme Court Fund." 10. I speak with great diffidence on this portion of the subject, having but very little experience in financial aifairs, but it appears to me that the following practical suggestions will probably be found equally applicable should any of the above mentioned modes of investment be adopted, and that an analogous practice might be introduced even if some other mode of investment should be formally determined upon. 11. The first practical suggestion I have to make is, that the Eegistrars and Deputy-Eegis-trars of the Supreme Court should no longer have the custody or administration of the funds over which the Court has control. Those officers are the proper persons to examine and certify to the Court the accounts of all persons liable to account to the Court. It is through them only that the Court can, with propriety or convenience, investigate accounts at all; and the position of a Eegistrar as Official Administrator of Intestate Estates under the old rules, or that of Sequestrator or Trustee of Insolvent Estates in which it has often been found necessary to place him, under the " Debtor and Creditors Act, 1862," for want of some other responsible person ready to undertake the duties, is quite anomalous, and not to be justified in the present state of the Colony. The old rule —supposed (and I dare say rightly) to have been justified /by the circumstances of the Colony in its earlier days, by which the Eegistrar who was made ex officio official administrator of Intestate Estates was directed to pass certain accounts before a Judge once a month, had fallen into desuetude before I came to the Colony, it being in fact practically impossible to comply with it. A new or altered system which should continue to make the Eegistrar, the officer to receive such monies and account for them, and cast on the Judge the duty to receive and check such accounts at short intervals, would, in my opinion, be not only wrong in principle as disturbing and confounding the relations of the Court to its officers and of both to public, but also practically unworkable. The only way in which a Judge can at present, in part, comply with one of the old rules about accounts, in cases of official administration, is by seeing that the Eegistrar has vouchers for all the disbursements which he has charged against the Estate, and this seems scarcely proper business for a Judge to be called upon to perform personally, even if it were not as it is, merely delusive for any purpose of testing the probity and regularity of the Eegistrar, since the Judge has no means of checking the accuracy of his representations as to the monies he has received. 12. It is clear, therefore, to my mind that the Eegistrars ought to be exonerated from the duties which they now have to perform in respect of these Estates, and that they ought to be cast .upon a new and distinct kind of officer. The Eegistrars being remitted to their proper position as representing the Court in examining, checking and certifying the accounts of such officers. And in passing I ought to remark that as the allowances made to Eegistrars in respect of official administrations have been considered as in some measure justifying the smallness of the salaries awarded to those gentlemen for the performance of difficult, harassing, and responsible duties, and as they will still have important duties to discharge in respect of Estates administered under the authority of the Court. The insolvency business having also added greatly to their labours, it would seem but justice to give the existing Eegistrars some compensation by increase of salary and consideration in respect of superannuation. 13. It seems to me that a financial officer of the Supreme Court should be appointed at each place in the Colony in which there is a Eegistrar or Deputy Eegistrar; and I think it ought to be his duty to act as an Official Administrator of Intestate Estates, Official Sequestrator and Trustee of Insolvents Estates, and as ad interim Official Trustee of other Estates in the course of Administration in the Court. 14. I think that such an officer, whom I shall call " Official Trustee of the Supreme Court" ought to be a person of either professional or commercial experience, and of approved character. He ought to be well remunerated for his work ; being made liable for the conduct and default of .subordinates; and giving security (by sureties or otherwise) to the Government, I think it advisable that he should have both a salary (or retaining fee) and a per centage on the amount of Estates realised by him. 15. At some places in the Colony, the duties of such an office would, even now, occupy the whole time of the Official Trustee; but in places where they would not yet be sufficient to do so, a competent person might be appointed who would undertake to perform the duties of the Office when, and as they should arise, being remunerated according to circumstances by salary (or retaining fee) and a per centage. B

See observations on the " Debtors and Creditors Act."

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IG. In all or most cases, the Official Trustee would require tlie services of an inferior officer, to be called say "Messenger." I think it desirable that such officer should bo a constable, and liable (as well aa his superior the Trustee) to the summary jurisdiction of the Court, but I think the Official Trustee ought to have power to appoint and remove such officer and employ subordinates and pay them, he being responsible for their acts and omissions. 17. The practical mode of operating on " The Supreme Court Fund" ought to be such as to afford the fewest opportunities for, and the fewest temptations to the commission of frauds, and in order to effect this, the Trustee and his Officers ought never, save where it is unavoidable, to receive any of the proceeds of Estates into their own hands, but all monies should be paid to and by the " Receiver of the Supreme Court Fund" under warrants issued by the " Official Trustee." N.B. —Notices might be posted in Official Trustee's and Registrar's Offices, that no payments on account of estates or " moneys in Court" will be available, unless made to the Receiver of the Supreme Court, pursuant to a warrant from the Official Trustee or Registrar. IS. After mature consideration, I am unable to suggest a mode of operation more simple and likely to be efficient than the following, which I snail illustrate by a case of official administration of an intestate estate, but which will be equally applicable to insolvent's estates, and to estates administered by directions of the Court in actions for specific relief. (1.) Supposing the Official Trustee to have been clothed with the powers and duties of official administrator by application to the Court (or rather, in ordinary cases, to the Registrar) his first step would be to cause his messenger to take an inventory of the estate, and pay over any ready money into the Supremo Court Fund. This ought to be done by virtue of a warrant (Form A annexed) directed to the Receiver of the Supreme Court Fund, in pursuance of which the Receiver would issue a receipt, (Form B). N.B. —Where messenger or other officer pays in the money by virtue of his office, he ought to be officially described in those documents. (2.) Should there be any money in a bank belonging to the estate, the Official Trustee ought to send a warrant to the bank (A), giving the manager notice to pay in the amount to the Supreme Court Fund, and get a receipt (B). N.B. —If the money had been lodged in the bank for a definite period, the bank would not be obliged to pay till the expiration of that period, and then, if interest were payable, the warrant ought to be for both principal and interest. (3.) In cases where it might be advantageous to the estate that the business of the intestate should be carried on for a time, the Official Trustee might procure the sanction of a Judge, or, in places where no Judge resides, an order nisi from the Registrar, to be forwarded for approval to the Judge for the carrying on the business under the Official Trustees' inspection, proceeds and disbursements being dealt with by the same documents, as in other cases. (4.) In cases also where it might seem desirable and advantageous to the estate that the property or any part of it should be disposed of by private sale, the same might be done with the sanction of the Registrar on application, either by the Official Trustee or parties interested. If the Official Trustee and Registrar should not agree on the subject, reference might bo made to the Judge. In case of private sale, the purchase money would be paid under a warrant (A), and the purchaser would get the receipt (B). (5.) So where an Auctioneer was employed by the Official Trustee, the Auctioneer should pay the proceeds, deducting the charges of sale, to be allowed by the Registrar under a warrant (A), receiving a receipt (B), specifying the moneys as "proceeds of sale by auction." N.B. —Notice to this effect might be posted provisionally in the offices. (6.) So also with respect to moneys payable by debtors of the estate, the Official Trustee ought not to be at liberty to receive them personally, or bo empowered to give a valid receipt for them, but when it has been settled between him and a debtor what is the sum due to the estate ho ought to give the debtor a warrant (A) to entitle him to a receipt (B). (7.) Coming now to the payment of moneys out of the. estate, that ought to be done by virtue of the warrant to pay (C), issued by the Official Trustee, and directed to the Receiver of the Supremo Court Fund, who would demand and retain the receipt (D). When the Trustee was satisfied by affidavit of a claimant against the estate, and such enquiries as he might deem necessary of the justice of the claim, he would issue the warrant (C) to the claimants, who would give the receiver the receipt (D). When the Trustee entertained doubt as to the validity or amount of the claim, he should refer to the registrar, and, if necessary, to the Judge for directions ; and semble that a Judge might be empowered to refer questions of fact raised incidentally in such cases to a minor jury, to be summoned for the purpose. In the case of ordinary insolvent's estates and of intestate's estates, which are or probably may prove insolvent, the Trustee would not be bound to grant to claimants, warrants for payment till the whole estate was realized, except by the direction of the Court, which would exonerate him from future responsibility. The same documents would be used in the payment of necessary expenses incurred in

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realizing the estate and fees of Court. Ordinary expenses should be authorised by rules of Court-—extraordinary, by sanction of the Registrar or Judge. (S.) Tor the purpose of checking the operations of the official Trustee and the Receiver they, or a clerk from the office of each, should attend at the Registrar's Chambers at a fixed hour on a fixed day (say once a week). Each of those officers should bring with him books separately intituled Intestates Estates, Insolvents Estates, &c, and which should contain a transcript (of the material parts of warrants and receipts for the week). The Official Trustee should produce for the inspection of the Registrar the counterfoils of the "Warrants for receipts (A) and the Warrants for payments (C) for the week, and the Receiver should produce the counterfoils of the receipts for monies paid in (B) and the receipts and counterfoils for monies paid out (D) the Receiver should retain the receipts (D) as his vouchers, but should hand the counterfoils to the Official Trustee to help him in the making up of his final accounts. The Registrar might then annex his signature (or initials) to each of the books produced, or make any note of discrepancies for further inquiry. At the same time and in a similar manner the Registrar and Receiver should produce and check documents respecting " Monies in Court" if any operations should have taken place under that head. (9.) With regard to the calculation of interest I am not able to offer suggestions which are very satisfactory to myself, but perhaps the following method might be found practicable. In the case of Solvent Estates the interest would of course be available for the persons entitled to the residue—(the next of kin in the case of Intestates Estates) while in Insolvent Estates it would go to increase the dividends. The time therefore for settling the amount of intorest to be paid out of the fund would in the case of Solvent Estates be the time of closing the accounts, and in cases of Insolvent Estates the time of paying the dividends or the final dividend. (10.) For the purpose of calculating the interest it might be convenient that once (a month) on the weekly production of books and vouchers before the Registrar, the balance in the Supreme Court Fund to the credit of each Estate should be stated in the Receiver's books at the settlement of interest it should be calculated on such balances. The amount of interest allowed to the Estate, as above suggested —would be Government interest minus a portion deducted towards defraying the costs of administration. (11) When all the transactions regarding the Estate are concluded, except the payment of the fees of the Court, and the per centage to the Official Trustee, (in Insolvent Estates to him and the Creditors Trustees). The Official Trustee should pass his accounts, on oath, before the Registrar, who should give the Trustee a Warrant (C.*) he giving receipts (Df) to the Receiver. (12.) On a report by the Registrar that the Trustee had closed and passed his Accounts the Court might give the Official Trustee a discharge, which he might use as a proof on a a plea of plene Administravit, or for the purpose of procuring a stay or discontinuance of proceedings from the Court, in case of any action being afterwards brought against him in respect of claims of the Estate. (13.) The accounts as passed before the Registrar might bo published in the Gazette, at all events in the case of Intestate Estates. (14.) The residue of any Estate would be payable only under order of the Court, or a Judge at Chambers to the parties entitled, on proper application ; the Registrar issuing a Warrant (C) signed by him as Registrar and the payees giving receipts (D) to the Receiver. 19. It will be very easy to adopt the above suggested course of proceedings to Insolvents Estate and Estates administered in the course of an action. 20. As regards " monies merely paid into Court" the forms (W X T Z) appended hereto wil sufficiently indicate all the arrangements which seem necessary, the documents being produced and checked at the weekly meetings of the Registrar and Receiver, or his Representatives, the Receiver ought to have a separate book for " Monies in Court." In the case of such monies interest at the established rate, with the established deduction, might be allowable in respect of sums which had been lying in the fund for (3) months or more ; and might be calculated by the Registrar at a weekly meeting, in presence of the Receiver before the Registrar should issue a warrant on the Supreme Court Fund pursuant to an order of the Court. 21. The intervention of the Legislature would be necessary in order to carry out some of the above suggestions, as for instance those relating to the appointment of Officers ; and the Rules of the Supreme Court, for cases of official administration, and the Debtors and Creditors Act would require amendment. The details of practice might be provided for by Rules of Court made by Judges, on an understanding with the Executive Government, as to the Financial arrangements. It seems very desirable that the Statutory provisions should not be made by amendment merely, but by total repeal and consolidated and amended provisions, and that a series of rules of practice should be suggested in conformity with the proposed enactments, before the Bill should be submitted to the Assembly. 22. As regards fees of Court, it is easy enough to arrange checks against fraud, at places, where there is a Registrar, with clerks in his Department; but where there is only a Registrar, and no clerk, it is less easy to provide a check without practical inconvenience to the public. It seems to me probable that a system of paying fees by stamps or coupons of different denoroi.

'Signed as Eegistrar of the Supreme Court. tSigued as Official Trustee,

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nations to be purchased from one officer, and paid to and obliterated by another, —the officer who receives the money accounting frequently to the Registrar, or Treasury Officer for the stamps, &c, supplied by production of the residue and payment of the value of those not produced,—might be practicable—and might bo adopted with necessary modifications from the modern practice of - the Court of Chancery, and the Court of Probate in England. 23. In concluding these observations, somewhat hastily arranged and expressed in anticipation of the speedy meeting of the Legislature ; 1 should wish it to be clearly understood that I .am by no means confident that the suggestions I have made will bear close scrutiny or would be found in all respects satisfactory in practice ; but 1 have thought that my remarks, would be more useful, if offered in the shape of practical illustrations than in that of criticisms on the faults of the existing system, and general indications of what would seem to be desirable in a new or amended mode of proceedings. (See Forms annexed.) Alexaxdeb Johnston. Wellington, N.Z., 20th June, 1865. A. To the Receiver of the Supreme Court Fund, Wellington. Intestates Estates. Estate of John Nokes, No. 52. No. 64. Wellington, N". Z., 10th June, 1865. On payment by Thomas Styles of the sum of twenty pounds seven and sixpence. Please to grant receipt for the same. A. B. C, £20 7s. 6d. Official Trustee S. C. B. Supreme Court Fund Wellington. Intestates Estates. Estate of John Nokes, No. 52. "No. 64. Wellington, N. Z., 10th June, 1865. Eeceived of Thomas Styles the sum of twenty pounds seven shillings and sixpence on account of the above Estate, under an order dated 10th June, 18C5, No. (64). D. E. I\, £20 7s. 6d. Receiver S. C. F. C. To the Receiver of the Supreme Court Fund, Wellington. Intestates Estates. Estate of John Nokes, No. 52. No. 73. Wellington, N. Z., 10th June, 1865. Please to pay to Richard Roe on account of this Estate the sum of seven pounds two skillings and twopence on his signing a receipt for the same. A. B. C, £7 2s. 2d. Official Trustee S. C. D. Supreme Court Fund, Wellington. Intestates Estates. Estate of John Nokes, No. 52. No. 64. Wellington, N. Z., 12th June, 1865. Received from the Supreme Court Fund on account of this Estate the sum of seven pounds two shillings and twopence, under an order dated 10th June, 1865, No. (73.) Richaed Roe. £7 2s. 2d.

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w. To the Receiver of the Supreme Court Fund, Wellington. Monies in Court. Title of cause or proceeding. Jokes, Plaintiff, v. Thompson, Defendant Wellington, N. Z., 15th January, 1865. On payment by James Thompson of the sum of one hundred and seven pounds twelve shillings and threepence. Please to grant a receipt for the same. E. R. 8., £107 12s. 3d. Registrar Supreme Court. X. Supreme Court Fund. Monies in Court. Title of course of proceeding. Jones, Plaintiff v. Thompson, Defendant. Wellington, IN". Z., 16th January, 1865. Received of James Thompson the sum of one hundred and seven pounds twelve shillings and (threepence, under an Order of the Registrar of the Supreme Court, dated 15th January, 1865. A. B. C, £107 12s. 3d. Receiver S. C. F. T. To the Receiver of the Supreme Court Fund, Wellington. Monies in Court. Title of course of proceedings. Jones, Plaintiff t. Thompson, Defendant. Wellington, N. Z., 25th January, 1865. Please to pay to Thomas Jones on his signing a receipt for the same the sum of one hundred and seven pounds twelve shillings and threepence, being the sum paid into the fund by James Thompson under an order dated 15th January, 18G5. R. R, 8., £107 12s. 3d. Registrar of the Supreme Court. Z. The Supreme Court Fund, Wellington. 3lonies in Court. Title of cause or proceeding. Jones, Plaintiff t. Thompson, Defendant. Wellington, N. Z., 25th January, 1865. Received from the Supreme Court Fund the sum of one hundred and seven pounds twelve shillings and threepence, under an Order of the Court dated 25th January, 1865. £107 12s. 3d. Thomas Jones. No. 4. THE ATTOBNEY GENEBAL TO ME. JUSTICE JOHNSTON. JS To 171 Attorney General's Office, Wellington, June 25, 1865. Sib — I have the honor to acknowledge the reeept of your Honor's very valuable suggestions in reference to the subject of my Circular Letter of the Bth March, 1865, and I have to convey to you the very sincere thanks of the Government for the same. It will, I can assure you, be the anxious wish of the Government to co-operate with the Judges in effectuating the object which they mutually have in view. I have, &c, His Honor Mr. Justice Johnston, Henbt Seweli. Wellington. C

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No. 5. ME. JUSTICE GEESSON TO THE ATTOENET GEXEBAL. Judge's Chambers, Christchurch, 23rd March, ISGS. Sir,— Referring to your letter of the Bth instant upon the subject of the investment and secarity of First. —Funds belonging to Intestate Estates ; or received under " The Real Estate Administration Act." Secondly.—Funds belonging to suitors. Thirdly.—Funds belonging to Insolvent Estates, under " The Debtors and Creditors Act." I have been so fully occupied with the business of the Circuit Court as to be unable sooner to consider the important subjects suggested by your letter for consideration ; and even now, leaving home as I am for the vacation, I feel unable to give the various) subjects all the consideration they deserve. First. — With regard to the personal estates of persons deceased, administered by the Registrar of the Supreme Court acting as Official Administrator, it appears to me that although the Rules of 1844 and 1845, may have been applicable to the then state of the Colony, it has now advanced to such a stage as renders it impossible for the Registrar, compatibly with his other duties, to act as Official Administrator strictly according to those Rules. For example, Rule 1 of 1845 contemplates the auditing by the Judge, once a month, of the account in every estate under administration, and that in the absence of the parties interested, who alone could call his attention to any incorrectness, and therefore without any practical result. This Rule has never been acted on in this District (as I am informed) and could not be at present compatibly with the other duties of the Judge and Registrar. In the present state of this District it appears to me that the duties of the Registrar independently of administrations are such as fully to occupy his time; and that by adding other onerous duties would of necessity impair his efficiency. Under these circumstances I think it is worth the consideration of the Legislature whether the time has not arrived for the appointment of a District Officer of the Court as Administrator, or Curator, which person might also act as Receiver of the Court, and might, on occasion, be appointed by the Court a Trustee when such was required. One great advantage of the appointment of such an officer would bo that it would leave to the Registrar what appeals to me his legitimate and useful duty, the assistance of the Court in matters of enquiry, taxation of costs,, and taking accounts when so directed. It is probable that the ordinary commission would not afford an adequate income for such an officer, who, if appointed Receiver, would be called upon to give security, and ought to be liberally paid. It seems to me that the advantages to be gained by the appointment of such an officer would much more than compensate for the expense ; and Section IX, of " The Supreme Court Act, 1S60" would seem to authorise the appointment of such an officer of the Court. As to monies received under " The Real Estate Administration Act, I860." The seventh Section of the Act provides that monies received by the Registrar shall by him be paid quarterly into the Colonial Treasury, by order of the Judge, and provides similarly for payments out of necessary disbursements; thereby involving, in each case, the necessity of considerable costs.. The advantage of this quarterly payment is not apparent, as Section IX, of Act (Like the Court Rule 552) contemplates an annual audit. The Officers whose appointment is suggested above might with advantage discharge the duties now devolved upon the Registrar under the last-men-tioned Act. "With regard to your suggestion for auditing all outstanding accounts through an Inspector or Auditor appointed by the Governor, it appears to me that there are serious objections to such a course. In the first place the Official Administrator is accountable to the Court and to it only ; and it may be necessary for him to retain balances in his hands for the purpose of duly administering the Estate. And the effect of paying such balances into the Colonial Treasury at once previously to passing his accounts, would be to cause further costs and complication of the accounts. Your next suggestion of weekly applications to the Judge seems to me to illustrate strongly the impracticability of such a proceeding. Possibly the object you have iv view of preventing, so far as possible, the retention of large balances by administrators for want of enquiry, might be attained sufficienly for all practical purposes by a return, yearly or half-yearly, of all balances in hand exceeding say £100 in any one estate. With regard to funds belonging to suitors, by which I understood you to mean money paid into Court to abide the event of an action, the practice here is that of the Common Law Courts at Westminster. It is true that it is in the power of the Registrar alone, but the sums so paid in are, generally speaking, small, and the time they remain in is short and uncertain. To make a Judge's order necessary for payment in and out would be to reduce the fund greatly by the costs, which would bo considerable. To invest sums so small in amount, and for such short periods would be impossible. There are cases, which I need not specify, of sums paid into Court, as into the Court of

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Chancery, or under certain Acts which provide for this investment. The mode of investment in such cases is determined by the Court. For example ; take the Trustee Eelief Act, 1862, after providing for payment into the Treasury at first, leaves the Court to direct subsequent disposal. As regards the Debtors' and Creditors' Act, until the order to cede and deliver to the Trustees appointed by the Court, the property remains in the hands of the receiver under the order of sequestration, and if the Court ordains a sale (as it does in the cases of perishable property), such order goes on to direct the payment into Court of the net proceeds, to be verified by affidavit. After the trust property has been conveyed to the Trustees, they become, ike any other Trustees, responsible to the Court for the due execution of the trusts. In this district for a short time the Sheriff was appointed Sequestrator, but it was found, as it was expected, inconvenient; and having been informed by the Registrar, as indeed I can well understand, that it would be impossible for him to take the office compatibly with his other duties, I was under the necessity of appointing Mr. Seager, who was recommended to me, and has been approved of by the profession generally. But it was found quite impossible to measure the amount of security, even supposing he were in a condition to give it in each case. He has therefore of necessity been appointed, and has acted as Sequestrator without giving any security; and he has further been appointed Trustee at the instance of the parties in several cases where the creditors failed to recommend any person as Trustee. No orders have been made by the Court as to the remuneration, nor has any formal application for such remuneration ever been, made. The sums paid into Court to the credit of the Insolvent Estates' Fund, under section 39, are only altogether £10 14s. 9d., and are in the Bank of New Zealand ; and no order on this Fund or on the Colonial Treasurer has ever been made or applied for in this district. It might be convenient that the Registrar should have an order of the Court to pay into the Treasury such sums monthly as he does with respect to fees, &c. I have at his instance directed him so to do; but perhaps the Sub-Treasurer should be instructed to receive the same. I have, <£c, The Honorable the Attorney-General, 11. B. Geesson. "Wellington. No. 6. CHIEF JUSTICE SIB G. ABXEY TO THE ATTOEXEY-GEKERAL. Auckland, 19th May, 1865. Sib, — I have delayed from time to time the replying to your letter of the Bth March last, on the subject of the various funds paid into and out of the Supremo Court, and the method of keeping the accounts and disposing thereof, because I hoped to be able to deal with the subject more fully, more so than even now I have either time or ability to do. I am myself so little versed in the business of au accountant, that I do not feel myself competent to render the Government assistance in the devising of any comprehensive scheme for setting up and managing an " Accountant General's " department in connection with the Supreme Court. I have, however, no difficulty in dealing with the two important questions of—1. Whether some such official should be ultimately provided and 2. What is the relation in which he and his department should stand towards the Court. Of the necessity that some such department should be constituted, I have long been made painfully conscious. When requested some time back to ofl'er suggestions as to the accommodation to be provided in the new Supreme Court Buildings then contemplated for Auckland, I wrote a long Memorandum by way of letters to the Superintendent of Auckland, and forwarded copies to the then Colonial Treasurer on the 26th June and the 28th September, 1863, and then warned those officials, that before long, accommodation would be required for a Treasurer or Accountant's Department. I beg to refer you to portions of those letters as explaining some of the practical duties of the Official Administrator and Assignee of Insolvents Estates respectively, for I cannot but think that any one acquainted with such details will acknowledge that the official administration must come to a dead lock if it be interfered with in the manner which is indicated by your letter. Indeed, I confess that my convictions as to the propriety of erecting an accountant's department are based upon reasons not only different from, but in one material respect opposed to what I gather to be your views upon this subject. Perhaps I shall "best serve the purposes of the Government, and render myself more intelligible by dealing with the questions and interests involved in the same order as yourself. And it may be well first to explain what the action of the Supreme Court in such matters really is, and thereafter consider what it should be. I. FU>'DS BELONGING TO INTESTATE ESTATES, OH. EECEITED rXDEE THE REAL ESTATE ADMIXISTBATIOK' ACT, 1860, A>"D HEEEUXDEB. (A.) As to personality, the Registrar at Auckland (and throughout this letter I beg to be understood as writing of my own experience and opinions only), lays before me monthly

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balance sheets of all estates under his administration. Here accounts are audited and certified by me, atd the balance is paid under order of Court to the Colonial Treasury. On closing each estate, the like process is gone through, and the final balance is paid in like manner under like order to a-wait the claims of the legal personal representatives of the intestate. (B.) As to real estate—Under section 9 of the Real Estate Administration Act, 1860, the Registrar is required to account in the fullest manner, as thereby is enacted; his accounts being examined and certified by the Judge annually, and this is all that a Court of Equity would in the first instance require of an executor acting under a will, who is allowed twelve months to gather in the personality at all events. But the 7th Section of that Act requires that " Rents and other moneys received by the Registrar shall be paid by him," (not as received but) " after the deduction of such sums as may be expended under the powers" of the Act, and be paid not immediately as received, but quarterly, by order of the Judge, into the Colonial Treasury. Thus, although he is bound to pass his accounts only once a year, his balances must be paid in quarterly. I therefore always examine and pass the Registrar's accounts of Real Administration quarterly. In passing these different accounts, nothing is taken for granted that can be made the subject of proof. I allow not the smallest payment, save upon voucher; the commission I always calculate myself, and check all the castings to the best of my ability, which is but slight, in matters of account especially. There will be discovered, I believe, only one class of error in any of these accounts, viz., an occasional half-penny, penny, or at most, a three-pence in the estimate of commission charged by the Registrar ; but I undertake to say this error will never be found in the Registrar's favor, but invariably in favour of the estate; at all events, it is always so intended. 11. FUNDS BELONGING TO SUITOES. The only funds under this head to which your letter can refer, as having been paid into the Colonial Treasury must be money paid into Court to abide the event of a suit. I will allude to them presently. in. insolvent's estates. The manner which these estates have been dealt with at Auckland is of public notoriety. As to any Insolvents' Estates' Fund, I regret to say it has proved a myth in consequence of creditors making no response to calls upon them to meet, and almost invariably failing to propose any one to act as Assignee or Trustee. I have in the majority of cases availed myself of the assistance of the late Deputy-Registrar, who before his valuable but ill-salaried services were withdrawn from the Supreme Court, consented to act as a quasi-official Assignee. To the best of ability I have checked the Schedules and Accounts in every case brought before the Court. The Debtors and Creditors Act assumed to create an Insolvent Estates Fund by a commission of £5 per cent., but I felt it to be my duty to allow the Official Assignee £8 per cent., viz., the higher scale allowed by the Supreme Court Rules to Official Administrators. Consequently there never could be any Insolvents Estates Fund. Even thus, the duty became so burdensome to the Deputy Registrar, that I have found it impossible to continue this practice and have succeeded in some cases in persuading some Creditors to become Assignees of an Estate, while in others where the Estate was very small or even nominal, the Deputy Registrar has obliged me by accepting an assignment to himself. In one case only I have sanctioned the employment of a professional Accountant. That Balance Sheet covers 44 pages of foolscap ; deals with about 80 sets of creditors, and disposes of an Estate of tradings to the extent of more than £23,000 (on the other hand in another case the Debtors to the Estate numbered if I recollect rightly about 400, each requiring a separate account of Bill of parcels.) In the former large estate Mr. Anderton the late Deputy Registrar has already recovered about £3500 in an omnium gatherum of items. In one other Estate the same gentleman collected some £1200 of Assets and doubtless in other cases some small sums have passed through his hands which may together make up an appreciable sum. I have however felt less anxiety in these estates because when there has been any estate at all, the creditors have always been represented at the final hearing and the assignees account has been checked and tested by those directly interested in the balance. At the same time when explanations have been required he has been examined upon oath in open Court. Now an accountant might perhaps relieve the Registrar of some trouble if he continues to act as official administrator and at all events additional clerks must be supplied to the Registrar's office. But beyond all doubt the Estates of Insolvents cannot be wound up under the suspervision of the Court without the aid of an Accountant either professional or official. These being the subjects to which your letter directly refers I proceed to offer the best suggestions I can in answer seriatim to the proposed innovations. 1 and 2. I have described the present practice in dealing with the funds coming under " Intestate Estates and funds belonging to suitors." That practice is regulated by law by the old Supreme Court Rules Ordinance, A 2, Sept. 4, No. 1. Rules touching estates and effects of persons deceased Rules 11, 13 and 14, and A 3 Sept. 7, No. 12, General Rules of the Supreme Court Rules 1, 2, and 3. Being thus fixed by law the Government cannot add to, take from, or otherwise alter that practice. And if a new law be introduced embodying the innovations which I proceed to notice I believe that official administration will become impracticable. Some however of the

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suggestions appear as though they were made without considering what the present practice really is. Thus it is suggested— (A.) That "An Auditor be appointed to audit all outstanding accounts." lam not aware of any outstanding accounts other than those audited by myself every month, they cannot outstand beyond two or three weeks. (B.) " All balances to be paid immediately to the credit of the Colonial Treasurer." I believe all balances are paid in as alone they are by law payable viz., monthly. But possibly if in the course of next week an auditor were sitting in one room over the accounts of one Estate, I should myself have audited and the Registrar have paid in the balance from the adjoining room and so his official audit would come too late. Tor, by law, the Order of the Judge concludes the audit. (C.) " All monies hereafter received to be paid into the Colonial Treasury immediately on receipt by the Eegistrar." Again this would be beside the law. But further to explain the bearing of sach a practice would require a graphic description of a succession of processes which when read might expose me to the imputation of seeking to make the subject ridiculous. I would only advance the propriety (if it were practicable) of the Ministers, Colonial Secretary, Colonial Treasurer, Attorney General, Native and Defence Ministers, each taking his turn at Auckland for six months as Official Administrator dealing with the receipts and payments in small estates upon such a practice, and at the same time discharging the duties of Registrar. I have ever felt and so has Mr. Outhwaite that moneys received by him should, as soon as practicable after the receipt thereof, be paid in and deposited in safe custody, there to remain until disposed of by order of Court, and already indeed, some time since, we have taken action accordingly in cases in which the independent action of the Court was not and is not fettered by local laws and an out-of-date practice. But if every minute sum be paid to a separate account immediately at the Colonial Treasury, under order of a Judge with the counter checks of an accountant, I believe such a practice will be found impracticable by the Registrar, and intolerable to the Colonial Treasurer. Further, the working of such a practice will bo better understood when considered in connection with the suggestion to meet disbursements, viz., that — (D.) " The Registrar to submit to the Judge weekly, or oftener, an estimate of the amounts which he may require for disbursements during the next current week." But no Registrar can tell what funds he may be called upon to pay to either creditors or other claimants on this or that estate in any given week in the year, and certainly the Judge cannot enlighten him, much less check his estimate. As well might we demand that a banker should tell by anticipation what cheques will be presented over his bank counter in any given week, from what customers, upon what account, by what holder, for what amount in each case, and in what notes or coin payment will in each case be demanded. Creditors, claimants, and suitors, whose money may be under control of the Court, must not, when they demand their own, be met with the response II Call again next week." Having seen and heard what I have seen and heard of the difficulties which the Official Administrator often encounters in such cases, I venture to pledge my belief that even in the course of dealing with one estate Mr. Oathwaite would have found himself involved in more than one action at law if he had not been able to meet the claims upon demand. (E.) " The accountant to be attached to the Court (who may also be the clerk) to keep the accounts and submit the same to the Judge weekly, or oftener as the case may require." I will notice this proposal in connection with that which follows. But by the way I would remark that lam not acquainted with any official in the Supreme Court here known as " The Clerk." At Auckland, lam not aware that "the Supreme Court," or any one therein, ever had a clerk. The Judge has no clerk; the Registrar (I believe) never has had a clerk, except such as he has found and even paid out of his private purse —thus letting the Colony get its work done for nothing. I am even told that when application has been made to the General Government for a clerk to help the Deputy Registrar in the work of copying depositions, &c, the utmost concession promised (and it wont no further than a promise), was that if (forsooth) the Registrar of the Supreme Court would go and apply at the Government Offices, and some copying clerk might at the time happen to be unoccupied, that clerk might render the occasional aid. The Sheriff just appointed (it is rumoured) is denied a, clerk, and the Only symptom that I see of any clerk is a young lad in the shop, who looks as if he had his business to learn rather than his services to give. If this lad be coming under articles to the new Registrar, which may be the case, I should strongly advise the Registrar not to allow him to copy one line of a Supreme Court document or process, unless paid by the folio for every word he writes. In such a case, judging by the price that I have myself paid for copies of official correspondence, running up to £5 or £7 at a time, I trust this lad may earn several hundred pounds per annum. At all events, I hardly suppose thia lad is the clerk, who may also be the accountant. However, it is proposed, after the Accountant's work is done. Lastly, the accounts of the Supreme Court — (A A.) Be submitted to the Judge weekly or oftener ; (BB.) Be subject to inspection by the Judge from time to time; (CC.) Be subject to the like inspection by the Judge's order; (DD.) Be subject to the like inspection by the Colonial Treasurer ; (EE.) Be subject to the like inspection by any person from time to time to be appointed by the Colonial Treasurer; (FF.) Be audited by some officer appointed by the Government. Certainly these questions suggest themselves as to the practical utility of such a proposal, e.g.: 1. After so much accounting, auditing, and inspection of the Registrar's accounts, what is the use of the Judge ? D

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2. After the accounting by Registrar and Accountant, and auditing by the Judge, and inspection by the Colonial Treasurer and his officials, what is the use of the auditor ? 3. After the Registrar, Judge, Accountant, and Auditor have severally compiled, accounted, inspected, audited, of what use is the inspection by the Colonial Treasurer and his officials ? To these I must add the question, Is there a Supreme Court responsible to the suitors and claimants, and exercising its jurisdiction for the good of the people ? At all events, it is desirable that before the Colonial Treasurer accepts this office of " Inspector of Supreme Court accounts," at (already) eight different registries, he should know what ho undertakes to do. For the funds alluded to in your letter, and above noticed, do not comprise nearly all, the disposition 'whereof would be brought under his review. These are for example —■ 1. Fees and Fines. —In order to inspect these accounts to any profitable purpose, he must review, and for that purpose examine all the different writs, affidavits, orders, rules, and other processes (a vast array), and will probably require a special Act to enable him to summon before him on some kind of novel Subpoena " Biccis Tecum" all the solicitors and solicitor's clerks in New Zealand to produce the processes taken out by them respectively (if not burnt or destroyed) to confront the array with the Eegistrars and Deputy-Eegistrars, and then decide, (if the evidence conflict), whether the lawyers or the officials are to be believed, and so whether the latter have accounted for all the fees and fines which they have received. If the inspection by the Colonial Treasurer fall short of this, his mission will end in merely checking the castings, which are supposed to have been already checked and passed by the Deputy-Registrar, Registrar, Judge, Accountant, and Auditor, besides being weekly reviewed by the Judge after all, and inspected oftener still. Then he must deal with 2. The Estates of Lunatics. —In-my letter above mentioned of the 25th September, 1863, forwarded to the Colonial Secretary, two estates are adverted to as worth respectively about £1,000 and £12,000 (the latter estate in consequence of the course of events will probably soon rise greatly in value.) Of these estates, the smaller has been carefully nursed by Mr. Outhwaite. A mortgage, principal and interest, is nearly paid off, and the matter awaits taxation of costs in order that the estate may be dealt with for the benefit of the lunatic and his infant daughter, by lease or otherwise. In the larger estate, Mr. Outhwaite, acting as committee of the estate, secured the same, and has now taxed the various costs ; a new committee of the estate has been appointed (the proper bonds having been entered into) various calls have been met and anticipated, including the maintenance and care of the lunatic, with an annual allowance for the support of his wife and family, and lastly, an order has been made for investing the balance on real security, such security and the deeds to be approved by the Registrar on reference to him for that purpose bythe Court. One of the daughters of the lunatic has also been married under my consent, after a close enquiry into the desirability of the marriage, and after obtaining the best guarantees practicable for her welfare. 3. Infants. —The remarks which I may presently make in connection with the accounts, &c, arising out of the management under the Supreme Court of the estates of lunatics, will apply to those of infants under the like control. But besides these and other matters of account which may come within the working of the Registrar's office (such as wards, guardians, trusts within the Trustees Act, &c. &c.) The Supreme Court especially while the Provincial Governments continue, is liable to extraordinary visitations through some folly or wickedness of the G-eneral Assembly — e.g., the large fund thrown down upon the floor of the Courts under the " Auckland Harbor Debentures Act, 1860," and the " Auckland Harbor Debentures Amendment Act, 1863." Probably if I had acted with proper firmness, I should have absolutely refused to make any order under the latter Act. But perceiving what the Legislature and the Provincial authorities had in view, I have endeavoured to carry out their wishes as I interpreted them. Accordingly, the Supreme Court entered the market as a moneylender and broker. £30,000 has been passed, under orders of the Court, through bankers' hands from the Provincial Treasury to a select number of mortgages on securities which were chosen with extreme care, and the Registrar has already received more than £1,000, and handed (say) £1,000 over to the Province by way of the first half-year's interest to pay the interest on the Debentures. Questions of account and of monied-diseretions still arise. Thus the Province pays (I rather think) £7 per cent, interest on £25,000, and £2 per cent, per annum sinking fund, making £9 per cent, on £25,000. The Supreme Court is getting eight per cent, (and a little more possibly,) but say £3 per cent, on £30,000, and I have hitherto consented to pay over the interest at £8 per cent, on £25,000 —thus providing for one half only of the sinking fund, in addition to the full half-year's interest on the Debentures until the Court should have a fair accumulated balance of ready cash to meet any contingency, and make the Debenture holders sure of their interest on the days when it shall fall due. These form materials for some of the accounts which the Colonial Treasurer would undertake to inspect and I suppose to regulate. All these I presume I am to understand are to be weekly gone through by the Judge. It will be readily understood why both the Judge and Registrar would be relieved of much trouble by a competent person attached to the Court who might assist in making up and keeping the different accounts. It must be also evident to any one who will endeavor to work out in detail the conduct of business such as I have outlined above, why I said at the outset that some sort of Accountant General's Department would at last and might soon become essential.

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But unless I misapprehend the object and the grounds of the suggestions of the Government they spring from very different views of the subject. If the Colonial Treasurer is to inspect I suppose' he must claim to supervise these accounts. ]N vow, all such accounts as those in lunacy, infancy, trusts, insolvency, &c, must be framed upon, and must represent the rulings of the Supreme Court in the disposition of the items. If the Colonial Treasurer is to supervise them or do aught more than recast the columns, at least he cannot alter or adjust them unless by over-ruling the decisions of the Court. Or is it assumed that all balances on these accounts are properly payable into the Colonial Treasury, and therefore that the Executive Government have a right to send their auditors, treasurers, and treasurer's appointees into the Supreme Court and demand air inspection of the accounts ? The emphatic stipulations that the'inspecting persons shall be appointed by the Government and have access ad libitum to the accounts, points in this direction. Indeed I cannot but I think that the suggestions are based upon an entire misconception as well of law and practice in such matters as of the relations herein that subsist between the Supreme Court and the Executive Government. It appears to be assumed, as hinted above, that all funds controlled by the Supreme Court are the moneys of the Government, and nmst be paid into the Colonial Treasury : also, that because officers of the Supreme Court are appointed by the General Government to the Registrar's Office, therefore they are to take their superior orders from and hold themselves responsible to the Government of the hour, instead of to the Supreme Court of Judicature in which their duties lie: also, that where balances are payable from the Court into the Treasury the Court must be accountable to the Government, and thereupon, that the Government having by law the custody of the balances, may call for, inspect, and supervise the accounts. But the moneys are the moneys of the suitors, personal representatives, creditors, lunatics, infants, guardians, or other claimants, as the case may be : some only of the balances under the various heads of accounts are payable into the Treasury ; those which the law does not direct to beso paid in, the law means shall not be paid in ; and all moneys or funds in Court, the Court is bound to guard with extremest jealousy. The General Government cannot —I must be forgiven for saying it shall not —hold the officers of the Court under its direction in matters which the law and Constitution place under the judicial rule of the Court, and which the Judge is sworn faithfully to administer. And lam led so to express myself because recently in my questioning the Eegistrar of Taranaki respecting a certain balance of account, he informed me that he had paid it into the Treasury under orders from the Government, if I recollect right, from the Attorney-General. I was compelled to inform that gentleman that if he ventured again to pay such money out of Court into the Treasury without my order I should be under the necessity of committing him to prison for contempt of the jurisdiction of the Court, and further informed him that I held him personally responsible for the amount from his private funds. It may indeed be very desirable that an exceptional system should be adopted in the case of Begistrars receivingmoney of intestates at places where the Judge is not resident, and the accounts cannot be readilypassed, but still I consider the intrusion of the Executive Government should be resisted in limine,. And so I must, with all respect, say of a scheme which in effect tends to the practice of making the Supreme Court accountable to the Government through the Colonial Treasurer. In regard indeed to money made payable into the Colonial Treasury by Statute, I am open to conviction, if I look at the question with a partial eye and am mistaken in supposing that the passing of the Official Administrators' accounts by the Judge is so far final that such account once passed can only be re-opened before the Court and not before the Executive Government. But I confess that even in these accounts I have always considered the Colonial Treasurer as a mere depository, like a. banker, of the money so payable to him. Indeed I have often consulted as to the propriety of directing some suit to be instituted to make the Colonial Treasurer account to the Court, but I always deem this very different from the Supreme Court accounting to that official. And still it seems to me that it would look more like " law and order," to see that Officer or Minister on the floor of the Court accounting to the Court, than to see him get up on the bench and order the Judge and Eegistrar into the body of the Court to account to him. And I say most unfeignedly, that after reading the Ministerial Memoranda published recently, instead of resting apprehensive of deialcations in the official administrators, I have trembled for the straits in which the Court, its suitors, and the relatives of some intestates deceased might be placed by the all but bankrupt position of the Government. At all events as regards moneys not payable into the Colonial Treasury by statute, I cannot recognise the authority of the Executive Government to interfere with the accounts of the Court. Practically, the best check upon the Court and its offcers in such matters will be found in the self-interest and consequent watchfulness of those interested in the funds ; appearing as they do> personally or by professional advisers at Judges Chambers or in open Court themselves, thus revising or pleading to the accounts, acquainting themselves with their contents, and taking part at every stage in the administration of the Estates by the Court. With such views, it is impassible that I can agree with the proposed scheme touching the accounts of the Supreme Court. If indeed the General Assembly would pass laws relieving the Supreme Court of official administration of Insolvent Estates and of all practical management of' the estates of lunatics and others. Such a measure could only be acceptable to myself, and I shall gladly hand over all those duties which I indeed feel myself ill able to fulfil, to the Colonial Treasurer, or any other lawful substitute. And meanwhile I, in common, I presume, with all the Judges of the Supreme Court, shall only be too grateful for that assistance without which I sincerely believe the Registrar's office in Auckland must soon be in great measure closed against applicants..

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Two specific questions are propounded to me, viz: Ist. " What is the best plan for the realization, safe keeping, and administration of funds arising out of the Debtors and Creditors Act?" The only answer to such a question must involve lengthy details, which, I believe you could yourself suggest far better than I can do. But I am of opinion that that no system will prove effective which is not supplemented by one of official administration by an assignee with the aid of an official accountant. The estate once got in. thus, its safe keeping until distribution can be eifected as easily as that of any other estate under control of the Court, of which more presently. 2nd. " Are the powers of the Supreme Court already sufficient to provide for investment of moneys in the ways mentioned?" I should feel it absolutely necessary to undertake and order the investment of money belonging to any infant or lunatic in like manner as I have ordered the leasing of real property belonging to such persons and under the direction of the Court. But I should, not venture to invest such money in securities resting beyond the jurisdiction of the Court. At the same time the Court could only feel reassured by any Statute which declared its powers and enlarged them if thought politic so to do. It oiuy remains for me to bring to the notice of the Government my own experience of the difficulties of the Supreme Court in dealing with its accounts and the property to which they relate, and to suggest what appears to me requisite. 1. The first embarrassment arises from the inexcusable and persistent neglect by the executive government and the General Assembly towards the Supreme Court; and worse than neglect, the continued refusal to provide the Court with the means absolutely necessary to its functions. The first safe guard in the matter of accounts and the first provision required, is a proper staff of well paid officials. The Government undertake to know what officials are required, and to appoint and pay them; but I believe that ever since I have been in New Zealand, every Government has declined to know what staff was requisite, and when the information was forced upon them, they have merely turned their backs upon the Court and its officers. The first requirement then is (say) for the present, — two experienced clerks, one of whom has had experience in keeping public accounts, and that one, if the Court is to continue to work the "Debtors and Creditors Act, 18C2," should be a professional accountant. To this addition, must be added full authority to the Registrar to employ an additional clerk occasionally if he finds it necessary. But even thus, if these clerks are to be paid as meanly as the practice now is, they will be of no permanent service to the Court. They ought to be so paid, that they may be induced to.continue to hold their offices as life appointments, and not remain in the Eegistrars office just till they have established a character, and acquired habits of business and then leave the office for other and more remunerative employment. It will soon become impossible for the Court to work its varied jurisdictions upon such a system. 2. The next step in the development of the practice of the Court I should think must be the opening of a system of bank accounts with some one of the leading banks. I say "system" because I suppose thet.e accounts should be kept at the various seats of the Supreme Court upon one uniform plan, and that we should not have different plans at Auckland, Wellington, &c. respectively. Hitherto at Auckland the " Union Bank of Australia" has, in fact, been the depository of all moneys belonging to the Supreme Court, but those moneys have been operated upon by the Eegistrar, who has himself controlled them as between the Court and the Bank. Sometime back Mr. Outhwaite, with my assent, communicated with the Manager of that Bank on the subject, who consented to undertake the opening and keeping as many branches of account (in reason) as the practice of the Court might require. As to the method of keeping accounts in the Eegistrar's Office, of course, for the present, it must run more into detail than any banker's account would require to do, for no banker could be expected to act as an Accountant-General to the Court. But lam very desirous of consulting the wishes of the Government on this subject. I feel also that if moneys belonging to a lunatic (for example) should be lost through the failure of a bank in which they might be deposited by order of Court, the heir or next of kin might look to the Legislature for relief and reimbursement. If so, the Government ought to be consulted and say what Bank it would prefer. I should not remove moneys from the Union Bank of Australia elsewhere until the Government signify officially its wishes on the subject, but I shall feel it my duty to meet the wishes of the Government when they are officially exjjressed. 3. A system of Bank Accounts being once set on foot, probably some additional counterchecks may be applied to guard against any fraud in operating upon them. Moneys might be promptly paid in, lodgement notes receipted and filed, and all such precautions exacted in the Eegistrars Office as Dr. Knight might advise. In this, as in all the other parts of the Supreme Court practice, printed forms would become necessary, and the Eegistrar ought to have full authority of his own motion, or at the request of the Judge, to get the Government printers to print forms for summonses, rules, orders, &c, &c. 4. The Colonial Treasurer should at once pay into a Bank (to be approved by the Government) all monies which he now holds belonging to the Supreme Court to their respective accounts, e.g., " Official Administration Account," " Keal Estate Administration Account," " Suitor's Fund Account," and should henceforth pay into their appropriate accounts all moneys which he may receive, immediately on his receipt thereof. These last mentioned Bank accounts shall be open to inspection, at all times, by, and the respective pass books rendered upon demand, to any Judge of the Supreme Court, or any person whom he may appoint; the Eegistrar or Deputy-Begistrar of the Supreme Court of the District from which the monies were paid in,

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CORRESPONDENCE RELATIVE TO THE CUSTODY AND

D.—No. G

as also by the Supreme Court Accountant, or Accountant Clerk of the District, when so ordered by the Court or a Judge. I beg to assure you that I have felt long and great anxiety lor these moneys, the property (in general) of the absent and the poor ; and I feel an abiding conviction that the monies of these helpless people ought no longer to be held under a " domino noir," whether the figure veiled be a Registrar or a Treasurer at Auckland or at Wellington. If after inspecting these later accounts the Court should at any time deem it proper, for the protection of the parties interested, the Courb should summon the Colonial Treasurer forthwith, to account m a summary way, and at all events, that official, if he continue to act, either wholly or in part, <is a quasi banker, or depository of monies, under the orders of the Supreme Court, as he now acts, should render his accounts to the Court, in each Judicial District quarterly. 5. Or, if the Government and Legislature prefer it, the Colonial Treasurer may be made " Accountant General of the Supreme Court," and all monies of the Court, or under its management, may pass through his hands into the Bank accounts, provided he be made at all times accountable to that one Supreme Tribunal to which alone the law intrusts the power of the Court of Chancery, with full jurisdiction, aud corresponding responsibility in the care, control and management of estates brought within its jurisdiction, whether it bo in the interests of, or in accordance with the wishes of the living or the dead. The Supreme Court ought not to part with the moneys of its suitors to any one whom it does not compel at all times to account, and produce the balances of all descrijitions on hand. 6. In regard to outlying registries like Taranaki and Hawke's Bay, an exceptional practice must still prevail. AVhile their accounts are so limited they will scarcely pay the expenses of a visit by an auditor; at least so I should suppose. When their business grows and their accounts multiply, still the same difficulty will remain upon which my views of this matter are based, viz., that the judicial officer is absent, and he alone can decide what items of account shall be admitted, what charges allowed, and upon what principles the receipts aud payments shall be adjusted in accounts that aft'ect the propertyof suitors, more especialy as between conflicting claimants. Any Accountant or Auditor must act either under the directions of the Court, or he must supersede the Court. If in any particular case, a Registrar be ordered to take the accounts between certain parties, say a lunatic, the committee of his person, the committee of his- estate, the next of kin, and the heir at law, the Registrar must take his directions from the Court; and no Government Auditor can readjust the accounts so taken, unless he is to overrule the decisions of the Court. In these outlying Registries I should fear an exceptional mode of dealing with the accounts must continue to prevail so long as we have localized official administrators, without local administration Courts. But this opens a wide subject, viz., the present distribution of the Supreme Court and its Judges working so varied a jurisdiction. In conclusion I have to express my regret that I have not been able to deal with this subject in a more concise and less rambling manner. The above letter may contain suggestions or opinions which I might wish in some degree either to modify, or to express with greater reservation. But my time is too fully engrossed to admit of this, and yet 1 have felt it to be a duty before any radical change is introduced into the Registrars Office, calculated to impair its efficiency, and even to provoke a conflict of jurisdiction, to express, as I could, my objections to the change proposed. I nave, &c, The Hon. the Attorney-General, Geoege Alfeed Aexey, Auckland. Chief Justice. No. 7. THE ATTOEXET-GEXEEAL TO THE CHIEF JUSTICE. Attorney General's Office, Wellington, 15th June, 1865. Sir, — With reference to the following passage in your Honor's letter of the 19th May last, viz.— " On my questioning the Registrar at Taranaki respecting a certain balance of account, he informed me that he had paid into the Treasury under orders from the Government, if I recollect right, from the Attorney-General. I was compelled to inform that gentleman, that if he ventured again to pay such money out of Court into the Treasury without my order, I should be under the necessity of committing him to prison for contempt of the Jurisdiction of the Court, and further informed him that I held him personally responsible for the amount from his private funds." I have to request your Honor will be good enough to favor me with the particulars of the case in question, and to state for my guidance whether the Registrar at Taranaki was acting under the authority of a Circular issued by me on the 14th February last, a copy of which I transmit. E

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INVESTMENT OF SUPREME COUIIT FUNDS.

£>.—No. 6

Tour Honor will perceive that it is indispensably necessary that the Colonial Treasury (which is responsible to the public) should exercise a control over officers who are bound by law to account to it. I have, &c, His Honor Sir G. A. Arney, Henry Sewsll. Chief Justice. Enclosure in No. 7. Circular. Attorney General's Office, Wellington, 1-lth February, 1865. Sib — I have to request that you will pay over to the Sub-Treasurer the balances in your hands on account of Intestate Estates and inform me accordingly, and that you will continue to make such payments monthly as required by the rules of the Supreme Court. Payments on account of the Estate will be made by the Treasury under the direction of the Court in manner pointed out by the rules. I have, &c, Heoy Sewell. No. 8. THE ATTORNEY-GENERAL TO THE CHIEF JUSTICE. Attorney-General's Office, Wellington, 15th June, 13G5. Sin,— With reference to the following passage in your Honor's letter of the 19th May last, viz.:— "I am not aware that the Supreme Court or any one therein ever had a clerk. The Judge has no clerk, the Registrar (I believe) never has had a clerk, except such as he has found and even paid out of his private purse —thus letting the Colony get its work done for nothing." I have to express my regret that your Honor should have thought it right to make a statement of this nature. Your Honor must have forgotten the correspondence which passed between the Government and yourself in ISG2-G3 on the subject of the appointment of a clerk to yourself. As it appears to have escaped your Honor's recollection, 1 transmit herewith copies of the correspondence. Specific provision has since been made upon the estimates for a clerk to the Chief Justice, who has been appointed by yoxirself, and paid by the General Government. Mr. Kenny has, I understand, lately resigned the office, but of this I have no official intimation. It rests with your Honor to appoint his successor. I further transmit an extract from the estimates for the last financial period for the establishment of the Supreme Court at Auckland, shewing that provision is made therein for a clerk to the Registrar at £225 per annum. I must add that, in the month of March last, authority was given by me for employing an additional clerk, at 10s. per diem. ' I have had no intimation from the Registrar of the Supreme Court that this provision for clerical assistance was insufficient. I have, &c, His Honor Sir G. A. Amey, Henry Sewell. Chief Justice. Enclosure 1. in No. 8. THE COLONIAL SECRETARY TO THE CHIEF JUSTICE. New Plymouth, 23th April, 18G3. Sir — I regret to perceive that a voluminous report, with evidence, lately forwarded by your Honor to the Governor on the case of a criminal under sentence of death, was written in your Honor's own hand. This sort of labor evidently should not be imposed upon a Chief Justice of the Supreme Court. Instructions have accordingly been issued for the payment of any person whom your Honor may appoint as permanent clerk to your Honor. I have, &c, His Honor the Chief Justice. Alfred Domett.

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CORRESPONDENCE RELATIVE TO THE CUSTODY AND

D.—No. 6

Enclosure No. 2 in No. 8. THE CHIEF Jt'STICE TO THE COLONIAL SECEETAEY. Auckland, 14th May, 1863. Sm,— I Leg to thank yourself and the Government for your kind consideration in authorising mo to appoint a clerk. I have delayed asking this assistance from the Government, because although there has been at times severe pressure weighing upon myself, and paused by the clerical details of official duty; I have been conscious that there have been intervals when the " Judge's Clerk," had there been such an official, would have had some idle time. I must however assure you, that as the business of the judicial office increases, it becomes more difficult to conduct that business without the aid of a clerk or secretary, and it has occurred to myself, even when presiding at complex trials, that I have failed to discharge my own duty in a manner satisfactory to myself or (as I fear) to the public, from the want of that kind of assistance which a clerk or secretary at my side would have afforded mo. I shall thankfully avail myself of your kind sanction by appointing some gentleman before the June sittings of the Supreme Court. I have, &c, Geobge Alfeed Abney, The Hon. the Colonial Secretary. • Chief Justice. Enclosure No. 3 in No. 8. THE CHIEF JUSTICE TO THE COLONIAL SECEETAET. Supreme Court, Auckland, 10th June, 1863. Sib, — I have the honor to inform you that I have appointed Mr. Kenny (son of LieuteiiantColonel Kenny, M.L.C.) to act as clerk or secretary to myself as Chief Justice. He entered upon his duties on the first instant. I have agreed with him to recommend to the Government that his present salary be £150 per annum, payable monthly ; but I deem it right to add, that I cannot expect, having regard to the habits and expenses of life in the Colony, to secure the permanent services of such a roan as I should like to trust with confidential correspondence and the duties attendant upon Mr. Kenny's office, without guaranteeing him a much larger salary. Mr. Kenny is contented, and already I have to thank you for the great comfort and convenience which I derive from his services. As the office of Judge's Clerk or Secretary is now introduced for the first time in this Colony, I take the opportunity of alluding to, with a view to settle the question —J?y whom is that official to be appointed in future ? Ton were pleased, in signifying the willingness of the Government to sanction such an office, to intimate that you had given orders for the payment of such person as I should appoint, considering the relation which ought to subsist between a Judge of the Supreme Court and his Secretary. I trust that you will agree with me that in this instance the official, although paid by the State, should be appointed and removable by the Judge. I have, &c., GrKORCiE AIFBEB AeNEY, The Honorable the Colonial Secretary. Chief Justice. Enclosure No. 4 in No. 8. PROVINCIAL EXPENDITURE. PROVINCE OF AUCKLAND. JUDICIAL. St'PEEME COVET. ■ Registrar ... ... ... ... ... £500 0 0 Sheriff (without fees) ... ... ... ... ... 150 0 0 Clerical assistance ... ... ... • ■ • 75 0 0 Clerk to Registrar ... ... ... ... ... 225 0 0 Crier ... ... ... ... ... 100 0 0 Contingencies ... ... . ... ... ■■• 50 0 0 £1,100 0 0

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INVESTMENT OF SUPEEME COURT FUNDS.

m—No. 6,

No. 9. THE ATTOENET-GESTEBAL TO THE CHIEF JUSTICE. Attorney-General's Office, Wellington, 15th June, 1885. Bft,-r With reference to the following passage in your Honor's letter of the 19th May last, viz.:— " The Debtors and Creditors Act assumed to create an Insolvent Estates Fund by a commission of five per cent., but I felt it to be my duty to allow the Official Assignee eight per cent, by the higher i r.i.l allowed by the Supreme Court Bules to Official Administrators. Consequently, there never could be any Insolvent Estates Fund." The Debtors and Creditors Act directs that a commission of five per cent, shall be paid to the Insolvent Estates Fund to provide for the expenses of working the Act. This appears to me a commission independent of that which would be allowed to a Trustee whose duty it is to collect and realise the Estate, and which would come under the head of '; costs, charges, and expenses incurred under order of the Court." The amount of per centage to be allowed to a Trustee for collecting and realising the Estate would be a matter for the direction of the Court, and it may be; would vary in different cases. The five per cent, commission for the Insolvent Estates Fund is evidently intended to cover tlis general expenses of working the Estate through the Court. I venture to draw your Honor's i bo this point jn order that the commission payable out of Insolvent Estates, to form a Fund may be duly provided and accounted for. I have, &c, I!.. ll.inor Sir G-. A. Arney, llexey Sewell. Chief Justice. No. 10. THE ATTOJttItET-GEmeaAX TO THE CHIEF JUSTICE. Attorney-General's Office, Wellington, 15th June, 18G5. v:ili, — I have the honor to acknowledge the receipt of your Honor's letter of the 19th ultimo (received yesterday) in reply to mine of the Bth March last, on the best means of improving the Ld linistration of Intestate Estates. Your Honor has favored me with some practical suggestion corresponding substantially with those made by me in my letter of the above date, and I i re to fcha ;; you for the consideration you have given to the subject. At the same time the Government cannot refrain from expressing its deep regret that your Honor should have made the consideration of this important question, an occasion for conveying both in direct terms and indireel y, a variety of imputations of culpable indifference to a neglect of their duties against the present and former Executive Governments in this Colony, and for accusing the General Assembly, of which you are a member, of "folly or wickedness." Your Honor's observations in this respect do not appear, so far as the Government is able to collect their meaning, relevant to the point in question. Their tone is extremely offensive, and calculated to be seriously prejudicial to the public service. I shall feel it my duty to address your Honor separately upon some points referred to in your letter, but respect for your high office induces me to abstain from entering further into controversy with your Honor, even'for the sake of rebutting groundless imputations. I have, &c, His Honor Sir G. A. Arney, Hexet Sewell. Chief Justice. No. 11. THE ATTOBNEY-GEHEBAL TO THE CHIEF JUSTICE. No. 190. Attorney-General's Office, Wellington, 10th July, 1865. Sic, — _ With reference to your Honor's letter of the 19th May last, I have the honor to forward herewith a copy of a letter addressed by me to the Honorable' the Colonial Treasurer and of his answer thereto. I have, &c, His Honor Sir G. A. Arney, He:*by Sewell. Chief Justice.

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CORRESPONDENCE RELATIVE TO THE CUSTODY AND

D.—No. 6

Enclosure lin ]S To. 11. THE ATTORNEY-GENERAL TO THE COLONIAL TREASURER. No. 248. Attorney-General's Office, Wellington, 19tli June, 1865. Str, — I beg to call your attention to the annexed extract from a letter received by me from his Honor the Chief Justice. The imputations cast by His Honor on the integrity and credit of the General Government appear to me to demand the gravest consideration. It has been one of the great objects of the Government to place the Intestate Estr.+es and Funds belonging to suitors in the Supreme Court beyond risk, under a sjiecial system of account. I have to request that you will be good enough to furnish me, officially, with a statement of the action taken by you in reference to the above funds, and with your views as to their future care and arrangement. I have, &c, The Honorable the Colonial Treasurer, Henry Sewsll. "Wellington. " I confess that even in these accounts I have always considered the Colonial Treasurer as a mere depositor, like a banker, of the money so payable to him. Indeed I have often consulted as to the propriety of directing some suit to be instituted to make the Colonial Treasurer account to the Court, but I always deemed this very different from the Supreme Court accounting to that official; and still it seems to me that it would look more like 'lawand order' to see that officer or Minister on the floor of the Court, than to see him get up on the bench and order the Judge and Registrar into the body of the Court to account to him. And I say most unfeignedly that after reading the Ministerial memoranda published recently, instead of resting apprehensive of defalcations in the official administrators, I have trembled for the straits in which the Court, its Suitors. and the relatives of some Intestates deceased might be placed by the all but bankrupt position of the Government." Enclosure 2 in No. 11. THE COLONIAL TREASURER TO THE ATTORNEY-GENERAL. No. 489. Treasury, Wellington, 29th June, 1865. Sir, — In acknowledging the receipt of your letter of the 19th instant enclosing extracts from a letter addressed to you by his Honor the Chief Justice, I may observe, that you correctly state the views of the Government when you say, that the great object has been to place the Intestate Estates funds beyond risks, under a special system of accounts. Under regulations hitherto existing for the guidance of official administrators, defalcations have occurred which might probably, under different regulations, have been avoided. In order to establish an improved system, several proposals have been entertained, amongst which I advert to the two following which may be regarded as essential. Ist. That Eeeeivers of Intestate Estates be constituted accountants to the Treasury. 2nd. That the Colonial Treasurer be required to exclude the proceeds of Intestate Estates from his general working balance and place them in deposit, so that they may be always ready to meet the orders of Judges of the Supreme Court. With reference to the first point the enclosed memorandum by the Treasury Accountant, with my minute thereon, will afford a sufficient explanation of the views entertained by this department: and it will rest with the Honorable the Attorney-General to take action thereon if he should think fit. With regard to the second, I annex a return showing the steps by which I have practically attained the proposed object. To these explanations I will only add that the following strictures of his Honor the Chief Justice, viz. ■. —" And. I say most unfeignedly that after reading the Ministerial memorandum published recently, instead of resting apprehensive of defalcations in the Official Administrators, I have trembled for the striats in which the Court, its Suitors, and the relatives of some Intestates deceased, might bo placed by the all but bankrupt position of the Government," are of so grave a character, considering the high functionary from whom they proceed, that I must request you to apply officially to his Honor for an explanation. I have, &c, The Honorable the Attorney-General, William Eitzherbebt. Wellington. F

21

INVESTMENT OF SUPREME COURT FUNDS.

J> . 6.

Sub-Enclosure in Enclosure 2 in No. 11. MEMORANDUM FOE THE HONORABLE THE COLONIAL TREASUREH. (No. 241.) Eeferring to the transactions of the Receivers of Intestate and Real Estates which involve the receipt and expenditure of, in some cases, considerable sums of money, and to the fact that the Groveniment (which through- its officers is responsible for the security of the funds) has no cognizance whatever of these transactions until an order of the Supreme Court is made, directing the payment of a Balance into the Colonial Treasury. It is submitted that the Receivers of Intestate Estates throughout the Colony should be required to furnish to the Colonial Treasurer, quarterly statements of all sums received and expended by them in the official administration of these Funds and of the Balances in their hands. C. T. Batkin, Treasury, June 15th, ISGS. Accountant to the Treasury. MEMORANDUM FOB THE HON. THE ATTOENEY-GENERAL. Whatever may be the legal liability of the Colony as to re-payment in case of defalcations I have no doubt as to its moral obligations. If this be a correct view, the Colonial Treasurer ought to be kept officially informed of the dimensions of the account. I entirely approve therefore of Mr. Batkin':: suggestions, and request the Honorable the AttorneyGreneral, if he concurs, to issue the necessary instructions. lGtli June, 1865. William Fitziierbert. STATEMENT OF THE TOTAL SUMS HECEIVED INTO THE COLONIAL TREASURY ON ACCOUNT OF INTESTATE ESTATES TO THE 31ST MARCH, 18G5. Real. Intestate. £ ». d. £ s, d. At Auckland ... ... ... ... 180 IS 4 4310 2 2 " Taranaki ... ... ... ... 137 6 7 " Wellington .. ... ... ... 4 7 6 709 4 9 " Napier ... ... ... .. " Nelson ... ... ... ... 179 19 4 " Marlborough .. ... ... ... " Canterbury ... ... ... ... 65G 6 1 " Otago ... ... ... ... 25367 11 6 " Southland ... ... ... ... 58 0 0 Total Intestate ... ... ... ... 31427 10 5 " Real ... ... ... ... 185 5 10 Total ... ..., ... £31,612 16 3 C. T. Batkin, ~" Accountant. I hereby certify that the sums included in the above statement have from time to time been deposited by direction of the Colonial Treasurer to the credit of the " Intestate Estates Fund Account " with the Bank of New Zealand at Wellington, and that the balance standing to credit of that account this day amounts to the sum of twenty-two thousand one hundred and seven pounds 19s. Id. J. Woodward, Treasury, Wellington, 30th June, 1865. Assistant Treasurer. I hereby certify that the balance of the several sums deposited by direction of the Colonial Treasurer to credit of the "Intestate Estates Fund Account" with the Bank of New Zealand, AVellington, amounts this day to Thirty-two thousand one hundred and seven pounds 19s. Id. sterling. N. Boddington, Bank of New Zealand, Accountant Wellington, 4th July, 1865.

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CORRESPONDENCE RELATIVE TO THE CUSTODY AND

D-No. 6

No. 12. TIIE CHIEF JUSTICE TO THE ATTORXEr-GENEEAC. Supreme Court, Auckland, 13th July, ISGS. Sir — Considerable sums of money are from day to day, or from week to week, paid to and remaining in the hands of the Registrar and Deputy-Registrar of the Supreme Court at this place. These sums are of two classes, viz., moneys which are paid at stated intervals into the Colonial Treasury, and moneys which, in the present state of the law and practice are not so payable, or at all events have not been so paid. Of the first class, fees and fines and balances of official administration of real or personal estate, are examples ; of the second class, any moneys paid into Court to the credit of the estate of a lunatic, &c. The Insolvent Estates Fund is also about to become a somewhat important amount, in respect of which opinions probably differ to which of the above classes it belongs, having regard to the construction which may be put upon the "Debtors and Creditors Act 1862." Probably some uniform system will ere long, be established for the deposit, and the process of operating upon all such funds. But meanwhile, the Registrar pnyposes (as to those moneys which at present are not paid into the Colonial Treasury at all events) to open accounts at one of the leading Banks, which accounts shall only be operated upon by Order of Court. Hitherto, and up to the present time, these moneys have rested, until finally disposed of, at the Union Bank of Australia ; but I should not think it right to open separate accounts there or at any other Bank in the name of the Supreme Court without the sanction of the Government. Will you therefore be pleased to inform me whether the Government desire that, for the present, and until some system is determined upon for the keeping of these moneys, the Court should deposit them with the Union Bank of Australia, with the Bank of New Zealand, or elsewhere ? The matter is becoming urgent. The Pees and Pines alone, I believe, amounted for the past month to some £142. The Insolvent Estates Fund is now becoming productive, and the fund " In Lunacy " is likely to be of some importance. I have, &c, George Alfred Arney, The Honorable the Attorney-General, Chief Justice. Wellington. No. 13. THE CHIEF JUSTICE TO THE ATTOfiXEY-GEXERAL. Supreme Court, Auckland, July 21, 1365. Sir,— I beg to acknowledge the receipt of your letter of the 10th instant, enclosing copy of correspondence between yourself and the Colonial Treasurer, and certain information respecting the accounts of Intestate Estates, which, you inform me, is forwarded to me with reference to my letter of 19th May last. As to the correspondence, I am not aware of having cast imputations on the integrity and credit of the General Government. Certainly I had no such intention. My comments were directed to a series of proposals, upon which 1 was invited to comment (and which I certainly felt it humiliating to receive from the Attorney-General) proposals embracing, among other matters, the system adopted in this Colony for the management of Intestate Estates. In regard to the information above mentioned, I observe, it is incidental to the correspondence, but I beg to thank you for it. I can see no possible objection to the carrying into effect of Mr. Batkin's Memorandum, if the Government really think that the public interest will be served by a republication once every quarter, of accounts which, if I am rightly informed, are already published in monthly Gazettes. I have only to add that whatever be the system from time to time established by law, it will }je my duty to endeavour to give it effect. I have, &c,, George Alfred Abxet, The Hon. the Attorney-General, Chief Justice. Wellington. No. 14. THE ATTOBNEY-GEXERAL TO THE CHIEF JUSTICE. Attorney-General's Office, Wellington, July 31, 1865. Sic, — I have the honor to acknowledge the receipt of your letter of the 21st instant, respecting the accounts of Intestate Estates. I have, &c, His Honor Sir G. A. Arney, Hexrt Sewell. Chief Justice.

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INVESTMENT OP SUPREME COURT FUNDS.