NEW ZEALAND DEFENCE FORCES. ANNUAL REPORT OF THE GENERAL OFFICER COMMANDING, FOR THE PERIOD 1st JULY, 1922, TO 30th JUNE, 1923.

Appendix to the Journals of the House of Representatives, 1923 Session I-II, H-19

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Session 11. 1923. NEW ZEALAND.

NEW ZEALAND DEFENCE FORCES. ANNUAL REPORT OF THE GENERAL OFFICER COMMANDING, FOR THE PERIOD 1st JULY, 1922, TO 30th JUNE, 1923.

Presented to both Houses of the General Assembly by Command of His Excellency.

EEPOKT. Sir, — Headquarters, New Zealand Defence Forces, Wellington, 11th August, 1923. I have the tumour to submit herewith the annual report on the Defence Forces covering the period Ist July, 1922, to 30th June, 1923. E. W. C. Chaytor, Major-General, The Hon. the Minister of Defence. Commanding N.Z. Military Forces. GBNEEAL. The three main features of the year under review were — (1.) The constant pressure of economy, which prevented the holding of training-camps for Territorial units, or the re-opening of the School of Instruction (which reduced the training to a minimum), and also caused the postponement of the purchase of much of the annual supply of clothing, &c. (2.) The Turkish crisis in September, 1922, which clearly emphasized the necessity for maintaining the Military Forces in an efficient state and with sufficient available reserves of clothing and equipment to allow of a small Expeditionary Force being mobilized and despatched without the undue delay and cost that would be incurred if clothing and equipment had to be obtained hurriedly. Though no call for volunteers was made, and though registration was limited to men between twenty and forty-five years of age, and (except in the case of officers and non-commissioned officers who were unmarried), 790 officers, 11,187 other ranks, and 300 nurses offered their services within four days. The staff had great difficulty in coping with the extra work entailed, but rose nobly to the occasion ; the result showed that the present staff organization could have dealt efficiently with the mobilization and despatch of a force had such a course been necessary. An analysis of the registrations, however, shows the necessity for training the young men who are coming of age for service, since over 60 per cent, of those who registered were too young to have served in the late war. (3.) The purchase of the Sockburn aerodrome from the Canterbury Aviation Company. This aerodrome will form one of the " key " aerodromes required for either defence or communication serivces in New Zealand. Others required in the immediate future are one at or near Auckland for both land and sea planes and, later on, one near Wellington, also for land and sea planes. The Sockburn aerodrome has been renamed the " Wigram " aerodrome, in recognition of Mr. H. F. Wigram's services in support of aviation in New Zealand, and of his generous donation of £10,000 towards its purchase. Permanent Forces. The Permanent Forces, though much reduced in numbers, have worked loyally and without regard to hours in endeavouring to carry out the provisions of the Defence Act. Almost all, but more particularly those engaged in instructional duties, are overworked, and have to turn out on a large proportion of holdays and evenings ; so much so that no one, unless keen on the work, would remain for long under the present conditions.

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The following table shows the comparative strength, of the Permanent Forces in 1909 (previous to the institution of compulsory training), in 1914 (previous to the outbreak of war), in 1920 (end of war), and the present:—

Comparative Strength of N.Z. Permanent Forces.

Note.—.The figures for 1923 excludo 73 temporary personnel employed in War Expenses, sale of surplus stores, and medical store, all of which will shortly be closed. During the year one Army Service Corps officer has been transferred from the War Expenses Branch to the Staff Corps ; one officer—Major-General G. S. Richardson, C.8., C.M.G., C.B.E., —has been seconded for service as Administrator of Western Samoa ; and five officers have retired. The uncertainty regarding their future prospects in the Permanent Forces is causing much dissatisfaction, and some of the best of the younger officers are preparing themselves for outside employment in preference to studying for their promotion examinations. Unless their prospects are improved many of the more able and enterprising officers may be expected to resign as soon as they can obtain suitable employment elsewhere. In view of the shortage of officers it is hoped that three Cadets may be sent next year for training at Sandhurst, Woolwich, or Cranwell, and that three more will follow each year thereafter. The question of exchanging New Zealand Service Cadet officers with officers of British units has not yet been settled, but such exchanges offer the only opportunity for New Zealand officers to obtain necessary experience in regimental duties or in handling men in the field. Two officers qualified for admission to the Staff College at Camberley; one will join the College in January, 1924, and the other a year later. It is intended to send one each year in future. The pay of the other ranks of the Permanent Forces compares favourably with that of their officers, but each branch has a different scale. Proposals for a uniform scale of pay and allowances are being drawn up. Courses of instruction for Royal N.Z. Artillery officers and non-commissioned officers on the 6 in. howitzer and on the 3-7 in. (pack) howitzer were held, so that training could bo commenced as soon as the new equipment was issued to Territorial batteries. In order that the Permanent Staff Instructors may be kept thoroughly up to date it is necessary that they bo sent Home to attend courses of instruction and to obtain regimental experience. With an establishment of 112 it is considered that three should be sent each year. Citizen Forces. The strength of the Citizen Forces on the 30th June, 1923, was :— Officers. Other Ranks. Total. Air Force Reserve .. .. .. .. 72 .. 72 Territorial Force .. .. .. .. 592 14,353 14,945 Senior Cadets .. .. .. .. 378 23,219 23,579 Totals .. .. .. 1,042 37,572 38,614 Rifle clubs .. .. .. .. .. .. .. .. 5,420 Non-effective List .. .. .. .. .. .. .. 16,816 Total .. .. .. .. .. .. .. 22,236 The following are the details in regard to posting of trainees for the current training-year : — Senior Cadets. Registered for training .. .. .. .. .. .. 10,567 Posted to Cadet units .. .. .. .. .. .. 8,261 Not posted .. .. .. .. .. .. .. 2,306.

30th Jui 10, 1909. 30th June. 1914. 30th June, 1920. 30th Jui lo, 1923. Officers. Other Ranks. <**«•■ [SK. 0ffi —|Rank r s. Officers. Other Ranks. N.Z. Stafi Corps N.Z. Permanent Stafi Royal N.Z. Artillery N.Z. Aviation Corps 35 35 256 121 211 298 138 208 231 70* 115 100 2 10 17 27 15 2f N.Z. Army Ordnance Corps N.Z. Army Pay Corps .. N.Z. Army Service Corps Range-wardens, &c. Civil Stafi Civil n Civil )J 14 16 . i 83 14 11 3 377 33 92 594 7 6 102 11 •• : ' 11 60 Totals 291 46 138 622 193 1,535 100 401 * Hono: ■ary Capt; bin attached. f Tempo: iry.

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Reasons for non-posting of above : — (a.) Placed on Non-effective List owing to distance from training-centre .. 1,549 (£>.) Registrations held over (boys still attending primary schools) .. 660 (c.) Obviously medically unfit .. .. . . .. . . 4.1. (ti.) Permanently medically unfit .. .. .. .. .. 35 (c.) Unfit for current year . . .. . . .. .. .. 1 (/'.) Exempted on grounds of religions belief . . . . .. .. 7 (</.) Undesirable .. .. .. .. .. .. .. 13 2,306 Territorial Force. Liable for posting to Territorial Force .. .. .. .. 9,395 Actually posted to units of Territorial Force . . .. .. .. 4,831 Not posted .. .. .. .. .. .. .. 4,564 Reasons for non-posting of above : — (a.) Placed on Non-effective List owing to distance from training-centre .. 3,952 (li.) Permanently medically unfit .. . . . . .. .. 237 (c.) Temporarily medically unfit .. .. .. .. .. 210 (d.) Posting deferred owing to pending transfer .. . . .. 24 (c.) Retained as non-commissioned officers with Cadets.. .. .. 139 (/.) Immigrants over twenty-five years transferred to Reserve . . . . 2 4,564 During the year ten seaplane and twenty-four landplane pilots underwent refresher courses involving six hours dual and solo flying. On an average it required one hour twenty minutes dual flying before going solo, and pilots unanimously expressed the opinion that the course should be longer, and that an annual course was essential to enable them to retain their flying " touch." Seventy-two officers, all of whom served and received training in the Royal Air Force, have enrolled on the N.Z. Air Force Reserve, which at present consists of commissioned officers only. Later on all ranks of all branches will be enrolled, and when technical stores become available will be given an annual refresher training in their respective duties. With a Defence aerodrome and a small permanent staff it will be possible to carry out refresher courses for the Reserve and to train additional personnel at a reasonable cost. Remunerative civil flying can also be carried out. Territorial Force. The Territorial Force, though it received a fillip in September, 1922, as a result of the Turkish crisis, has suffered through the curtailment of training and the failure to reopen the School of Instruction, as well as from general lack of encouragement. The number of officers has decreased during the year, and it is becoming increasingly difficult to induce men to extend their service beyond the compulsory stage or to give the extra time required to qualify for promotion. Many are willing to devote time and energy towards the maintenance of an efficient force, but consider that opportunities for qualifying for promotion and for carrying out collective training are essential. At present it is a matter for great regret that many efficient officers, warrant officers, and non-commissioned officers who served in the war have retired from the Active List. The training for the year 1922-23 was reduced to twenty drills and twelve half-day parades, but many units decided to concentrate the bulk of these into six consecutive whole-day parades, for which, however, no pay or even lunch was provided by the public. These concentrated parades allowed of much better training, and proved to be less irksome to the trainee and his employer, than the periodical drills and half-day parades. The result shows clearly that camps are essential for both efficiency and economy. It is suggested that the training for the year 1923-24 should be as follows : (i) Eleven days' annual training in camp (exclusive of the days of arrival and departure) ; (ii) four half-day parades. Units drawn from cities or centres where home training can be satisfactorily carried out, will substitute five half-day parades and twelve drills for the first five days in camp. Until the financial position improves pay will not be given for the period in camp or for wholeday parades, but free rations and quarters will be provided. The musketry training of the Territorial Force for the year has resulted in a general all-round improvement with the rifle (see Appendix I). In addition, considerable progress has been made with machine-gun and light automatic-rifle training. With the short term of service now required of the men in the ranks, and also the reduction in the amount of annual training, it is next to impossible to proceed beyond advanced elementary individual instruction. The new 6 in. howitzer equipment wHi issued to batteries during the year, and the 3-7 in. howitzer is now being issued. All batteries, with the exception of two just formed, have carried out instructional practice. Cadets. Training for the year was reduced to twenty drills and twelve half-day parades, but, as in the case of Territorial units, concentrated training was tried with good results. In some country drill-centres where the services of an instructor could not be supplied regularly the whole year's training was concentrated into six consecutive whole-day parades. This system should be made compulsory, as it enables the instructor to work more drill-centres, besides largely reducing the loss of time and the expense incurred in travelling.

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With the object of stimulating interest in Cadet training, Colonel G. F. C. Campbell, C.M.G., V.D., of Wellington City, and Mr. Eric Riddiford, J.P., of Orongorongo, each donated a handsome trophy. These were competed for during the year, and after very exhaustive tests and keen competition, in which all the larger Cadet units in the Dominion took part, Colonel Campbell's trophy was awarded to C Company, 9th (Cadet) Battalion, Canterbury Regiment (Nelson City Cadets), and Mr. Riddiford's trophy to A Company, 9th (Cadet) Battalion, Canterbury Regiment (Nelson College Cadets). As in the case of the Territorial Force, the musketry training of the Cadets also shows considerable improvement on former years (see Appendix I). This is largely due to the various musketry competitions which during the past two years have created a healthy spirit of rivalry throughout the whole of the Cadet Force. Last year the entries in the Imperial Challenge Shield competition, in which Cadets from all parts of the British Empire take part, were double those of any previous year, there being some 3,500 competitors from New Zealand Cadets. His Excellency the Governor-General very kindly donated a special trophy to be awarded to the New Zealand unit making the best effort in this competition, and this undoubtedly accounted for the great interest displayed. Other competitions of a similar nature are the Islington Challenge Cup competition and the Weekly Press Challenge Shield competition, both of which draw much larger entries than heretofore. During the year 600 new match rifles were purchased for the Cadets, and these will be used in next year's competitions, and, although the scores have been good in the past, it is anticipated that even better results will be obtained in the future. New Zealand Army Rifle Association. During the year the N.Z. Army Rifle Association was formed with the object of promoting interest in rifle shooting for service purposes by means of individual and collective competitions — framed, as far as possible, to induce practice in methods, which will lead to increased efficiency on the battlefield. The association's inaugural meeting was held at Trentham on the 13th March, 1923, and succeeding days, and was an unqualified success. The programme was based on the experience gained in the Great War, and was the, subject of very favourable comment by the Commandant of the Small-arms School at Hythe, England ; it included individual and teams rifle matches for both the Territorial Force and Cadets, besides competitions for Vickers, Lewis, and Hotchkiss gun teams. Considering the short time that the machine and light guns have been on issue to units, and the scarcity of qualified instructors, the handling of these weapons by the teams was distinctly good. Rifle meetings on similar lines have also been held in areas and commands, and have greatly assisted in keeping the Territorial Force together during a difficult period, as well as in increasing the musketry standard. Rifle Clubs. Rifle Clubs may be of great value for defence provided they encourage men who would be liable for service in the event of war to improve themselves in the use of the service rifle under activeservice conditions. To this end regulations have prescribed that only men who are of military age and who are fit for service may become members, and also that members must fire an annual musketry course. In spite of these regulations, however, rifle shooting appears to bo taken up mainly by men who are beyond the military age or who do not take part in more strenuous sports. It is now proposed that effective members — i.e., those who are of military age and fit for service— should be encouraged to fire a musketry course by granting a free issue of 100 rounds small-arms ammunition to those who qualify, with an extra 100 rounds to those who qualify as marksmen ; also that any privileges, except the right to buy small-arms ammunition at reduced rates, shall be limited to effective members who fire the musketry course, and to other members who served in the war. The National Rifle Association. During the year a National Rifle Association was formed, mainly at the instigation of some members of past Dominion. Rifle Association committees, who did not approve of the Defence Department's policy, and who had declined to accept the advice of the Department's musketry experts to bring the military events up to date. Though formed under such circumstances the National Rifle Association was given all the Dominion Rifle Association trophies, and also assistance towards its inaugural meeting to the amount of £1,129. Defence Works, Mobilization Stores, Equipment, etc. A site for the Northern Command Mobilization Depot has been obtained from, the Railway Department in exchange for land at Frankton Junction, but, owing to the necessity for economy, the work of construction has not yet been commenced. For the same reason construction work which it was proposed to carry out at Trentham and Burnham depots has been delayed. The provision of proper mobilization depots at all three places is now an urgent matter, and it is proposed to incur certain expenditure this year for that purpose. Apart from strategical and tactical considerations, which would be important in the event of mobilization, the completion of these depots is essential to avoid the high cost of maintenance of the temporary buildings in which the equipment is now stored, and the higher freight charges involved distribution of stores for peace requirements from unduly distant Ordnance depots. Further, the lack of substantial weatherproof and fireproof mobilization and depot storehouses causes the stocks of clothing and stores to be subject to a greater degree of deterioration than would normally be the case, and also exposes them to the risk of total loss by fire.

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The plans for the Ngaruawahia depot provide for magazines which are urgently required to relieve the present congested magazines, and to enable a number of the existing magazines to be utilized for naval purposes. The Military Supplies Purchase Board, through which all Defence Department's requirements, in addition to requirements of many other State Departments, were purchased at considerable saving to the State, has been abolished on the inauguration of the Stores Control Board, through which all stores are now purchased. The system of accounting for stores introduced in 1921 has proved very successful, and losses are now comparatively negligible. The inauguration of the now system, combined with the changes of staff consequent upon reorganization, involved very considerable work, and the disposal of outstanding deficiencies in stores caused largely through unrecorded issues to the Expeditionary Force or faulty book-keeping by the ever-changing temporary staff was a work of some magnitude, but has not been completed. The sale of surplus stores through a central depot in Wellington has been continuous since the establishment of the depot in December, 1920, and has proved successful in every way. The sales now average approximately £1,000 per week, and the prices obtained are much higher than could be obtained by any other method. To enable a considerable surplus of khaki service uniform jackets to be sold a dyeing contract has been arranged, and supplies of these garments, dyed dark blue, are now on the market. Khaki trousers are being, similarly dyed to provide complete suits. The contract is very advantageous to the Department, since faded garments of little sale value arc thereby restored to excellent condition and are saleable at very satisfactory prices. On completion of each training-year large quantities of uniform clothing arc withdrawn from Territorials who have completed their service. To enable this clothing to be reissued it is thoroughly cleaned and. renovated by a dry-cleaning process, under contract, and the resultant saving is very considerable. For the period of six months ended 31st March, 1923, the figures are as follows : Number of garments dry-cleaned, 43,263 ; number of garments renovated, 16,598. Total cost of dry-cleaning and renovation, £3,510. Prior to the present system, clothing was laundered and renovated. For the above period the cost of laundering and renovating the garments indicated would amount to £8,423, so that the present system resulted in a saving of £4,913 for six months. Finance. The amount voted out of the Consolidated Fund to defray the cost of defence was £328,630, of which sum £285,113 was expended, leaving a credit balance of £43,51.7. The total receipts from the sale of surplus stores, including those from War Expenses stocks, for the year amounted to £71,387 10s. 10d., making a grand total received since sales were inaugurated in 1920 of £371,594 10s. lOd. War Accounts, Records, Medals, etc. The staff, War Accounts and Records Office, which at the date of last year's report numbered forty-one, has been gradually reduced throughout the year and now number twenty-six. The total net expenditure from vote " War expenses " for the year ended 31st March, 1923, was £106,798 17s. Id., while imprest advances outstanding on the 31st March brought the total to £190,389 17s. 6d. A detailed statement of expenditure from the beginning of the war to the 31st March, 1923, is attached (sec Appendix IV). Claims for war gratuities by V.A.D.s of British domicile, under section 15, Finance Act, 1922, are now being dealt with. The adjustment of outstanding transport accounts with the Imperial shipping liquidation, which has been somewhat protracted, is being expedited. During the year 16,640 illuminated certificates recording the services of soldiers who died while on active service have been inscribed, and issued to the soldiers' next-of-kin. 211 of these have been returned through the Dead-letter Office, and are being held pending receipt of postal, addresses. The writing of the whole of the certificates for living soldiers, approximately 83,000 has been completed, and 9,600 of "these are at present being held awaiting despatch on account of men whose present addresses are unknown. There were 99,260 members of the New Zealand Expeditionary Force who embarked for service from New Zealand and became entitled to war medals. Some were entitled to three medals —namely, 1914-15 Star, British. War Medal, and Victory Medal ; others were entitled to two, and others to one only. The Department has issued to date 25,642 1914-15 Stars, 90,205 British War Medals, and 80,605 Victory Medals. Of these, 2,800 packages have been returned through the Dead-letter Office as unclaimed, while there are in addition 9,600 men to whom medals cannot be delivered owing to lack of addresses. There is still a large amount of current, work and. correspondence of various descriptions being dealt with by this branch of the Department. Summary. The present state of tin; N.Z. Defence Forces is not satisfactory, except that they now have an organization based on war experience, that a large number of officers and non-commissioned officers who served in the late war would be available on mobilization, and that,"unlike the position in 1914,

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the necessary guns and equipment are available. The officers and non-commissioned officers with war service are, however, an asset that is rapidly decreasing b\ r reason of age and of increasing family responsibilities, and it is essential that others should be trained to replace them. Equipment does not waste so rapidly, but requires a number of men to maintain it in good order. New Zealand is now going through the usual after-war stage, when the public, forgetting that lack of preparation has already proved very costly, is am-dous to reduce the burden left by the war by cutting down its national insurance. Economy is undoubtedly essential, but savings at the expense of efficiency do not constitute economy, but the reverse. New Zealand is not able to stand alone, anil Great Britain, with her crushing war burden, cannot be expected to continue to provide almost the whole of the defence of the. Empire. It is evident that all parts of the Empire must stand together ; therefore the problem of the defence of any Dominion cannot be separated from that of the Empire. The only sound solution of the defence problem—-and one which would give the maximum of efficiency at the minimum of expense- is an agreement for mutual co-operation in which the liability undertaken by each State is clearly defined. No such agreement can, however, be expected until it is realized that the defence problem is not simply a question of the strength of one or other of the services, but of the co-ordinated use of the Empire's resources, and also that no State can expect, assistance from another unless it accepts an equivalent obligation.

APPENDICES. APPENDIX I.—SUMMARY OF MUSKETRY TRAINING. Territorial Force. No Percentage .Strength. Strength on 31st Ma.y, 1923, of units required to fire musketry course .. .. 10,603 Number who fired full course .. .. .. .. .. .. 8,908 83 Number who fired part course .. .. .. . . .. . . 291 4 Number who did not fire .. .. .. .. .. .. .. 1,4-04 13 Number who qualified .. .. .. .. .. .. .. 8,360 79 Number who did not qualify .. .. .. .. .. 2,243 21 CADETS. No. Percentage .Strength. Strength on 31st May, 1923 .. .. .. .. .. ..25,219 Number who fired full course .. '.. .. .. .. ..22,128 87 Number who fire part course .. .. .. .. .. .. 1,120 6 Number who did not fire .. .. .. .. . . .. 1,971 7 Number who qualified .. .. .. .. .. .. ..21,332 85 Number who did not qualify .. .. .. .. .. .. 3,887 ] 5 APPENDIX lI.—REPORT ON CIVIL AVIATION. Government Subsidies. On 15th September a conference of representatives of civil companies and Defence Department was held in Wellington to discuss details of the scheme of subsidy which had come into operation on the Ist April, 1922. As a result of the conference the rates of subsidy were extensively increased ; in some cases they were doubled. In addition the Department undertook to give work to the companies by commissioning them to carry out the flying portion of the refresher courses. The alteration to scale of subsidy was made retrospective to date from the Ist April, 1922.

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For the financial year ending 31st March, 1923, subsidies, based on relative efficiency of aerodromes, machines, workshops, and staff maintained, were paid to companies as under : — £ s. d. N.Z. Flying School .. .. .. .. .. .. 1,626 0 0 Canterbury Aviation Company .. .. .. .. .. 669 12 8 N.Z. Aero Transport Company .. .. .. .. .. 679 18 7 £2,975 11 3 In addition the following payments were made for refresher courses : — £ s. d. N.Z. Flying School—ton seaplane pilots at £90 .. .. .. 900 0 0 Canterbury Aviation Company and N.Z. Aero Transport Company— Twenty-four landplane pilots at £75 .. .. .. 1,800 0 0 £2,700 0 0 Licenses and Certificates. Licenses and certificates at present in force are as under: Commercial pilots, 1 ; ground engineers, 5 ; registration of aircraft, 5 ; aerodrome licenses, 2. Activities op Civil Aviation Companies. The N.Z. Flying School (Walsh Bros, and Dexter (Limited) ), Auckland, has been the most active company during the period under review, but its flying returns show a falling-off from those of the previous year. Its machines have visited many centres, including the following : Dargaville, Thames, Paeroa, Tauranga, Hamilton, Rotorua, Wellington, and Nelson, where flights were carried out. This is now the only company operating. The Canterbury Aviation Company has conducted very few tours, and, with the exception of one machine which visited the Bay of Plenty and Hawke's Bay and Wairarapa, has confined its operations chiefly to Canterbury. During the period Juno to November inclusive no flying was carried out. The company's property and equipment was taken over by the Department on the 21st June. The N.Z. Aero Transport Company carried out a small amount of flying during April and May only, and finally went into liquidation on the 27th March, 1923. During February and March the companies carried out refresher courses for ex Royal Air Force pilots under arrangements with the Defence Department. The Canterbury Aviation Company and the N.Z. Aero Transport Company arranged to combine their respective classes, and. conducted all the training with one staff at Sockburn. There have been no accidents or mishaps involving injury to pilots, passengers, or third parties.

Table showing Civil Flying for Year ended 31st March, 1923.

Table showing Civil Flying for Quarter ended 30th June, 1923.

Company. Passengers earried. Total Duration of Flights. Approximate Machine Mileage. Number of Flights. Avorage Mileage per Flight. N.Z. Flying School Canterbury Aviation Company N".Z. Aero Transport Company 1,687 415 87 Hrs. Min. 133 2 53 38 13 37 10,116 3,835 1,032 893 220 52 11-3 174 19-8 Totals 2,1.89 200 17 14,983 1,165 12-8 NOTE. —Pilots undergoing refroshei 12 minutes flying, and those at Canterl ire not included in above. training mry Aviatii at N.Z. PI on Company 'ing School did 144 ho carried out 63 hours irs flying. These times

Company. Passengers carried. Total Duration of Flights. Approximate Machine Mileage. Number of Flights. Average Mileage per Flight. r.Z, Flying-school .. 109 Hrs. mm. 7 43 573 57 10-0

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APPENDIX III.—COMPARISON OF NUMBERS TRAINED AND COST OF TRAINING.

APPENDIX IV. WAR EXPENSES ACCOUNT. Detailed Statement of Expenditure from the Beginning of the War to the 31st March, 1923.

Note. —The three periods chosen give a comparison o: the post-war compulsory training system. f the Volunte* er system, th< i pre-war and 1908 9. 1913-14. 1922-23. (1.) Training Staff, N.Z. Permanent Forces (2.) Strength of Forces (3.) Cost of training (expenditure less cost of stores, &c, and of non-effective services) Ratio (1) to (2) Ratio (2) to (3) (cost per man trained) .. 336 16,365* £149,712 647 51,561 £335,695 314 40,246 £188,845 48-8 £9 3 0 79-7 £6 10 2 128-1 £4 13 10 * Of these 13,420 qualified for capitation, but only 7,55 >3 attended tho a ,nnual inspectior i. V

Particulars. Expenditure. Expenditure under Section 8 of the Public Revenues Amendment Act, 1914 (War Purposes), and Section 4, Finance Act, 1918, No. 2 (War Purposes). idvertising, printing, office equipment, &c.— Office expenses — Samoa Egypt .. United Kingdom New Zealand £ s. d. 35 11 3 980 17 3 23,075 6 11 91,385 15 9 £ s. d. £ s. d. Advertising— Samoa Egypt .. Unitod Kingdom New Zealand 115,477 11 2 132 13 8 17 14 8 1,152 18 7 11,464 12 8 12,767 19 7 Printing and stationery — Samoa Egypt .. United Kingdom New Zealand 72 11 7 2,881 16 9 17,934 15 9 91,294 0 2 112,183 4 3 Office equipment— Samoa Egypt .. Unitod Kingdom New Zealand Cost of services rendered by Postal Department in connection with payment of allotments and pay-warrants in New Zealand Half cost of expenses in connection with the raising and distribution of relief funds Preparation of war records and history Amount required to recoup Imprest Accounts for vouchers lost in transit 71 10 6 104 8 11 1,465 17 0 9,240 0 0 10,881 16 11 31,712 1 8 7,287 3 7 281,783 12 5 22 10 0 1.1,187 10 0 50 9 0 301,547 16 2 19,764 3 9 Less credits unount fraudulently obtained from High Commissioner's Office by unknown person representing himself to be a member of N.Z. Expeditionary Force !amps, expenses of (including concentration) — Main Body and Reinforcements — Expenses of Now Zealand Forces abroad — Unitod Kingdom, Egypt, &e. Samoa 298,011 1 2 11,128 4 8 309,139 5 10 Camps in New Zealand — Narrow Neck Trentham Featherston Tunnelling Corps 24,315 15 2 393,158 3 9 351,024 4 0 583 19 2 769,082 2 1 239,778 9 4 Other general expenses, including Main Body camps, Awapuni, Rangiotu, Waikanae, and other temporary camps 1,212,711 13 2 Less credits 1,317,999 17 3 105,288 4 1

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Detailed Statement of Expenditure from the Beginning of the War to the 31st March, 1923— continued.

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Particulars. Expenditure. Expenditure under Public Revenues Amendment Act, 1914, and' Finance Act, 1918 —continued. Clerical assistance — New Zealand Expeditionary Force War Accounts, Pay, and Records Branches Headquarters and District Headquarters Overtime United Kingdom Audit Office Samoa £ s. d. 435,838 14 2 227,897 11 7 8,805 13 10 45,326 10 4 42,374 17 2 111 13 4 £ s. d. £ s. d. 700,355 0 5 12,400 6 11 747,894 13 6 Less credits Commissions of Inquiry— Defence Stores Trentham Camp Lieutenant A. H. Grierson Thacker inquiry Motuihi Alien Servico Branch (Jugo-Slav) Defence Expenditure Commission Somes Island Wanganui Detention Barracks Lieutenant Crampton's court-martial Influenza—Narrow Neck Disappearance of Rifleman J. Russell H. H. Thompson Commission 18 14 6 1,150 13 10 24 2 3 99 0 8 369 13 2 1,907 18 3 3,671 10 8 35 9 6 130 6 4 513 18 10 27 8 1 26 15 4 300 8 0 8,116 13 2 Less credits 8,275 19 5 159 6 3 Compassionate allowances— F. Annear (illness contracted on duty) A. T. Griffin (illness contracted on duty) L. M. Trendle (wrongful discharge of husband).. M. A. Hunter (refund, deductions husband's pay) 90 0 0 273 6 0 50 0 0 45 0 0 458 6 0 458 6 0 15 0 0 Cost of preparing article on Veterinary Services for inclusion in Official History Compensation to E. Morgan for lost kit.. Discharged Soldiers' Information Department — Expenses and grants (this covers expenditure up to date of coming into operation of Repatriation Act, 1918 ; expenditure after that date comes under the heading of " Repatriation ") — Fares of men travelling to employment Salaries Office expenses Postage, telegrams, &o. Printing and stationery Motor-hire Office equipment Tuition and lodging-allowances Subsidized wages . 906 15 7 7,818 10 5 3,093 5 2 878 16 3 796 17 2 221 7 7 97 0 0 4,870 6 3 2,228 6 2 i ! 60 0 0 Less'credits 20,911 4 7 50 17 0 20,860 7 7 423,188 0 0 3,274 13 9 Distribution of war news and casualty lists in New Zealand Donations refunded and transferred Equipment (including purchase of boots, clothing, G.S. wagons, ammunition-carts, ordnance, &c.) — Samoa Egypt .... United Kingdom New Zealand Other places, &c Post-war equipment 12,947 0 6 160,704 11 0 2,293,001 19 4 3,249,771 9 7 2,935 10 7 483,140 15 8 Less credits 6,202,501 6 8 540,160 8 8 V 6,656,340 18 0 287 10 8 Expenses in connection with riots at Rarotonga ForageSamoa Egypt New Zealand United Kingdom ,6. 111,215 5 7 379,115 11 2 215,687 11 4 40,397 13 7 746,416 4 8 160,: 63 17 :. Less credits .. .. .. Freight on Great Britain and Belgian relief produce Grants to regimental funds — 3rd New Zealand Rifle Brigade .. .. ., 2nd New Zealand Infantry Brigade 4th New Zealand Infantry Brigade .. .. .. New Zealand Medical Corps Divisional Signal Corps Army Service Corps Field Troop Engineers Field Artillery Brigade Mounted Signal Troop 586,252 7 < ! 656 16 11 1,000 0 0 1,000 0 0 1,000 0 0 141 0 0 60 0 0 109 0 0 41 0 0 329 10 0 18 10 0 3,699 0 0 3,699 0 0

H.—l9

10

Detailed Statement of Expenditure from the Beginning of the War to the 31st March, 1923 — continued.

Particulars. Expenditure. Expenditure under Public Revenues Amendment Act, 1914, and Finance Act, 1918 —continued. Grants to soldiers' hostels— New Zealand England £ s. d. £ s. d. £ s. d. 1,397 13 10 19,430 0 0 20,827 13 10 7,668 17 10 Less credits* 13,158 16 0 Grants to New Zealand War Contingent Association for assistance to fit men on leave in England Less credits 6,500 0 0 756 9 9 5,743 10 3 20 0 0 Grant to replace contents of registered letter lost in transit between Chalmers and Timaru Military Hospitals Grant to E. C. Wood for expenses (obtaining crews for transports and hospital ships) Grant of half value financial assistance warrants remitted to 14454 C. P. Marshall, but stolen Grant to regimental funds, military hospitals in New Zealand (provided from proceeds of sale of fat and waste) Grant to M. Okeby for loss of contents of box Half cost of reinsurance of death benefits of members of friendly societies serving with the Expeditionary Force Hanmer Farm —General expenses Less credits 100 0 0 33 15 10 150 0 0 25 0 0 7,422 9 5 2,843 2 0 1,774 17 4 1,00S 4 8 1,068 4 8 Home defence (forts, harbour patrols, examination of steamers, guarding cables, wireless stations, railway picquets, &c.) — Auckland District Wellington District Canterbury District Otago District Censors Cost of guarding wharves— Auckland Wellington Lyttelton Dunedin Mine-sweeping Fitting guns on " Iris " and " Tutanekai " 103,642 6 7 165,562 4 1 48,308 12 9 44,265 3 2 21,484 9 6 1,723 2 4 1,072 11 4 742 16 7 865 4 2 34,603 15 5 240 13 6 Less credits 422,510 19 5 20,362 3 2 Hospital Ship " Maheno " — Charter hire Conditioning, fitting, &c. Equipment—General Equipment—Medical and surgical Medical comforts Wages of crew Rations, ship's stores, and other miscellaneous expenditure 402,148 16 3 178,513 3 5 204,505 13 3 2,517 1 6 994 10 0 2,772 2 2 66,612 13 1 .122,495 5 7 Less credits 578,410 9 0 6,855 13 7 571,554 15 5 Hospital Ship " Marama " — Charter hire .. .... Conditioning, fitting, &c. .. Equipment—General Equipment—Medical and surgical Medical comforts Wages of crew Rations, ship's stores, and other miscellaneous expenditure 293,442 4 3 192,433 19 6 3,059 18 8 1,115 13 8 1,787 17 7 61,240 12 9 114,496 18 1 Less credits 607,577 4 6 10,530 14 4 657,046 10 2 League of Nations — New Zealand's proportion Secretariat expenses Maintenance of indigent enemy subjects in New Zealand .. Mechanical transport, including motor-cars, bicycles, oil for motors, &c. — Samoa Egypt United Kingdom New Zealand 1,822 0 7 9,477 8 9 65,962 15 8 69,387 4 6 17,. 14 17 7 102 10 0 146,649 9 6 34,719 17 6 Less credits Medals and decorations Less credits 111,929 12 0 55,821 13 5 622 8 7 55,199 4 10 * For realizations on closing ell lbs in the United Klni lom.

H.—l9

11

Detailed Statement of Expenditure from the Beginning of the War to the 31st March, 1923— continued.

Particulars. Expenditure. Expenditure under Public Revenues Amendment Act, 1914, and Finance Act, 1918 —continued, tfilitary Service Act: Expenses of administration, including recruiting, military service, and Medical Boards— Auckland District— Salaries, &c. Travelling expenses and allowances Office expenses £ s. d. 22,750 1 8 10,199 14 7 2,593 18 5 £ s. d. £ s. d. 35,543 14 8 Wellington Head Office and District— Salaries, &c. Travelling expenses and allowances Office expenses 66,729 5 10 14,541 18 4 16,531 12 6 97,802 16 8 Canterbury District — Salaries, &c. .. .. .. Travelling-expenses expenses 23,756 15 8 11,016 18 7 2,829 10 5 37,603 4 8 Otago District— Salaries, &c. Travelling-expenses Office expenses 17,011 17 3 7,735 19 2 1,601 12 9 26,349 9 2 53,249 18 2 50,456 5 3 Ballot Branch Government Statistician's Office—Expenses Less credits .. .. 301,005 8 7 1,875 16 10 tledieal (including expenses and equipment of hospitals, field hospitals, and ambulances; surgical instruments; fees ; dental treatment; comforts ; cost of funerals, &e.) — Hospitals— Trentham Military Camp—Expenses Trentham Military Camp—Cost of building Featherston Military Camp Berhampore Temporary Hospital, Wellington Oriental Bay Kiosk, Wellington Kaiwarawara Temporary Hospital, Wellington Izard's Convalescent Home, Upper Hutt Taumaru Convalescent Home, Lowry Bay Rannerdale Home Lahmann Home, Miramar Victoria Military Ward, Wellington Hospital Otaki Sanatorium Wanganui Convalescent Home King George V Military Hospital, Rotorua .. Auckland Military Annexe Epsom Convalescent Home, Auckland Point Chevalier Hospital, Auckland Devonport Convalescent Home, Auckland Te Waikato Sanatorium, Cambridge Evelyn Firth Convalescent Home, Auckland Whangarei Hospital Napier Hospital Hatuma Sanatorium Hanmer—Queen Mary Military Hospital Cashmere Hills Sanatorium, Christchurch Anzac Convalescent Home, Karitane King Edward Pavilion, Dunedin Chalmers Orthopaedic Hospital, Christchurch Timaru Orthopaedic Hospital Invercargill Convalescent Hospital Wairarapa Hospital, Masterton Palmerston North Hospital Aotea Convalescent Home, Egypt Lady Godley's Convalescent Home, Egypt Pont-de-Koubbeh New Zealand General Hospital, Egypt Brockenhurst Hospital, England .. Walton-on-Thames Hospital, England Hornchureh Hospital, England Codford Hospital, England .. Brighton Convalescent Home New Zealand Nurses' Rest Home (Barnstaple) All other hospitals (including maintenance in public hospitals) Hedical— Equipment— Samoa .. .. .. .. ■ ■ Egypt .. .. .... .. ' " .. United Kingdom.. New Zealand Maori Other places 299,129 12 n 163,673 13 6 7,195 10 8 11,936 1 9 624 12 8 313 16 0 916 5 6 1,269 4 0 4,121 1 7 4,049 14 3 2,341 17 8 1,061 8 10 978 9 2 2,497 5 7 244,614 2 4 35,980 1 4 4,649 10 8 433 13 10 2,989 16 5 13,032 9 3 4,422 7 10 2,000 0 0 4,150 0 1 140,327 9 6 114,249 2 3 65,687 10 0 2,454 8 8 10,828 11 5 37,936 2 11 16,783 19 2 2,247 13 6 3,000 0 0 1,500 0 0 11,698 8 5 1,027 2 7 22,294 16 5 161,164 5 3 240,318 6 5 73,305 18 3 31,442 15 0 8,709 3 1 177 15 7 734,274 13 4 2,192,679 5 0 6,497 1 6 23,047 3 6 126,902 11 10 274,924 14 4 1,362 1 9 4,126 1 5 436,859 14 4 Carried forward 2,629,538 19 4

H.—l9.

12

Detailed Statement of Expenditure from the Beginning of the War to the 31st March, 1923 — continued.

Particulars. Expenditure. Expenditure under Public Revenues Amendment Act, 1914, and Finance Act, 1918 —continued. Brought forward Vledical— continued-. Fees for examination of recruits — New Zealand Maori Contingent £ s. d. £ s. d. 2,629,538 19 4 £ s. d. 68,616 4 11 570 18 4 69,187 3 3 62,365 3 0 19,285 6 9 41,368 15 11 12,786 12 8 8,969 15 6 2,025 18 9 81,955 14 11 3,000 0 0 Dental treatment Funerals and upkeep of graves Artificial-limb manufacturing Sunnyside Laundry, United Kingdom—Expenses Training of massage students Motor-hire ; .. Salaries of administrative officers Purchase of site for medical headquarters at Dunedin Less credits 2,930,483 10 214,605 4 1 1 National Efficiency Board : Administrative expenses — Auckland District — Salaries Travelling expenses and allowances Printing and stationery .. .. .. ... Office expenses Wellington Head Office and District— Salaries Travelling expenses and allowances Printing and stationery Office expenses 794 3 7 668 6 7 73 4 8 893 7 10 2,429 2 8 2,715,878 6 0 2,907 19 9 869 11 8 771 12 3 2,168 1 5 6,717 5 1 Canterbury District— Salaries Travelling expenses and allowances Printing and stationery Office expenses 1,577 13 4 1,643 19 0 445 5 4 1,096 2 5 4,763 0 1 16,421 19 8 Otago District — Salaries Travelling expenses and allowances Printing and stationery Office expenses .. .. 1,106 2 9 909 19 2 138 2 11 1,096 3 8 3,250 8 0 Less credits 17,159 16 4 737 16 8 Military-supplies Purchase Office — Salaries Office equipment Postage, telegrams, &c. Office expenses Travelling-expenses Printing and stationery Experiments 16,556 10 4 538 15 1 1,803 16 8 2,714 16 8 531 8 10 2,067 15 1 612 6 2 Less credits 24,825 8 10 1,214 9 10 23,610 19 0 <ew Zealand Expeditionary Force Educational and Vocational Training— New Zealand Abroad 77,521 12 2 89,199 18 3 Less credits 166,721 10 5 15,286 6 8 151,435 3 9 Pay and allowancesSamoa— Allotted Pay Hospital Ship No. 1 : " Maheno " — Allotted Pay Hospital Ship " Marama " — Allotted Pay Main Body and Reinforcements — Allotted Pay Pay (camps)—allotted and pay 115,621 2 6 119,814 19 0 32,889 17 7 28,275 4 1 41,610 18 3 22,076 14 0 14,407,868 13 8 10,065,034 12 3 4,671,153 8 0 Retrospective married allowance Retrospective children's allowance Retrospective widowed mothers' and other dependants' allowances 29,504,344 9 4 553,875 18 4 313,555 3 7 125,767 19 5 Carried forward '30,497,533 10 8

H. 19

13

Detailed Statement of Expenditure from the Beginning of the War to the 31st March, 1923 — continued.

Particulars. Expenditure. Expenditure under Public Revenues Amendment Act, 1914, and Finance Act, 1918 —continued. Brought forward Pay and allowances— continued. Allowances to wives of Imperial Roservists and difference between N.Z. Expeditionary Force pay and Imperial pay to members of Imperial Forces resident in New Zealand Payments to London General Post Office for allotments paid through post-offices in the United Kingdom £ s. d. £ s. d. 30,497,533 10 8 286,235 17 0 £ s. d. 576,100 0 0 Less credits .. ... 31,359,869 7 8 333,214 17 11 Per capita payments to War Office for maintenance of New Zealand troops in the field—Ammunition, extra transport, etc. 15,735,000 0 0 31,026,654 9 !) 1,365,279 9 9 14,369,720 10 3 Less credits* Postage, telegrams, telephones, &c, and preparing war-news cables for despatch to New Zealand from the United Kingdom, and cable charges thereon— Postage, &c.— Samoa Egypt .. United Kingdom New Zealand Other places Preparing war-news cables in High Commissioner's Office and cable charges thereon Less credits 2,084 6 10 26,663 18 11 85,434 11 1 168,799 5 9 618 5 11 7,363 1 2 290,963 9 8 18,571 19 2 Prisoners of war— Expenses at— Motuihi Island .. .. .. .. Narrow Neck Somes Island Featherston Samoa Ripa Island Escapo and capture Escorting and other expenses, including repatriation of aliens Payment to General Post Office to reimburse stamp credit, Somes Island Less credits 272,391 10 ( 42,539 16 4 7,867 19 11 54,067 16 9 11,639 8 9 760 15 3 1,451 15 10 4,429 0 11 8,563 1 5 2 10 0 131,322 5 2 2,652 18 11 Pukeora Farm Less credits 128,669 6 6,039 18 6 2,109 3 1 Proportion damages by New Zealand troops during riots at Ismailia, Egypt Purchase of horses — Remounts.. .. .. .. .. Artillery Transport and undeseribed Wages of grooms Travelling and other expenses Motor-hire Cost of horses, mules, &c, issued by Imperial authorities in France and Egypt Less credits 3,930 15 6,589 3 78,213 18 10 63,775 10 6 46,877 11 2 16,369 6 10 11,435 9 0 191 17 1 238,488 3 5 455,351 16 10 217,641 1 11 Rations— Samoa Egypt United Kingdom New Zealand 64,712 1 5 207,172 11 6 1,056,026 14 5 1.563,228 2 2 237,710 14 11 Less credits 2,891,139 9 6 487,564 19 8 2,403,574 9 10 262 7 0 Refund to Wairarapa Patriotic Association, proportion proceeds of sale, Officers' Club building, Featherston Sale of surplus military stores — Credits for cash received with orders Less refunds where goods could not be supplied 232,331 8 6 41,590 11 7 Expenses in connection with sale of surplus stores Superannuation paid by Government on behalf of Civil servants serving with the Expeditionary Force— Public Service Fund Government Railways Fund Teachers' Fund Ir. 190,740 16 11 19,713 14 9 69,816 2 0 48,344 5 7 13,630 3 2 131,790 10 9 984 19 2 Less credits 130,805 11 7 * Eor amount refunded by War Office and remitted to New Zealani in excess of actual cost of maintenance of troops in field, £815,279 9s. 9i I, £750,000; and amoui 1. it redebited to War O: Ice account advances

H.—l9

14

Detailed Statement of Expenditure from the Beginning of the War to the 31st March, 1923 — continued.

Particulars. Expenditure. Expenditure under Public Revenues Amendment Act, 1914, and Finance Act, 1918 —continued. Soldiers' Financial Assistance Board — Assistance granted— Rent .. .. .. .. Mortgages, interest Rates Insurance Management of businesses Friendly societies Medical Instalments .. .. .. Miscellaneous assistance £ s. d. 117,897 2 2 50,798 8 2 10,477 16 1 76,368 9 7 290 8 4 647 6 3 3,045 17 1 2,262 5 8 1,937 13 4 £ s. d. £ s. d. Administrative expensesSalaries and travelling-expenses Office expenses Postage 263,725 6 8 17,351 5 1 4,933 5 1 964 10 0 23,249 0 2 Less credits 286,974 6 10 10,316 6 6 Transport of troops (including charter of steamers, meals, and fares of men travelling to join, freight, cartage, &c.) — Samoa Egypt United Kingdom Now Zealand Other places Motor-hire 276,658 0 4 19,998 19 5 71,110 14 6 554,141 2 4 1,693,833 10 3 6,735 0 6 4,827 12 0 Charter hire, conditioning, reconditioning, Sao., of transports under charter to New Zealand Government Passage-money for troops ex miscellaneous steamers Cost of transport of New Zealand Expeditionary Force horses from United Kingdom Assisted passages of wives and fiancees 2,350,637 19 0 5,299,927 3 6 1,508,122 1 1 739 3 6 18,873 2 9 9,178,299 9 10 629,234 3 0 Less credits 8,549,065 6 10 Travelling expenses and allowances — Samoa Egypt United Kingdom New Zealand Motor-hire .. .. 149 10 0 639 5 6 502 15 10 15,246 10 4 828 10 11 Less credits 17,366 12 7 248 2 7 War bonus to clerical staff to 31st March, 1920 — Military staff Civil staff Oost-of-living bonus, 1st January to 31st March, 1920 .. 17,118 10 0 24,523 12 1 17,333 12 1 15,521 8 4 Less credits .. .. .. Wanganui Detention Barracks— Pay of staff Rations Miscellaneous expenses 57,378 12 6 629 9 11 56,749 2 7 2,039 9 11 576 8 11 603 18 3 Less credits 3,219 17 1 36 8 0 3,183 9 1 War graves and memorials—New Zealand's proportion of expenses of Imperial War Graves Commission War memorials and travelling-expenses re memorial-sites, &c, in battle areas Miscellaneous expenses, salaries, &c. Head-stones for war graves in New Zealand 62,414 0 0 8,896 5 1 1,749 0 9 1,050 0 0 Less credits 74,109 5 10 72 15 6 74,036 10 4 Total expenditure for war purposes under section 8 of Public Revenues Amendment Act, 1914, and section 4 of Finance Act, 1918 (No. 2) 71,381,209 2 6 Relief Purposes. Under Appropriation Act, 1914, section 25 Under section 6, Public Revenues Amendment Act, 1915— Belgium .. .. New Zealand Comforts for wounded soldiers, Mediterranean area ' Comforts for prisoners of war (Turkey) Contributions towards Etrambrieres Hospital, France .. Total expenditure for relief purposes 20,000 0 0 239,785 5 0 160 16 0 992 14 8 500 0 0 7,000 0 0 268,438 15 8

15

H.—l9

Detailed Statement of Expenditure from the Beginning of the War to the 31st March, 1923— continued.

Approximate Cost of Paper. —Preparation, not given ; printing (575 copies), £20,

Authority: W. A. G. Skinner, Government Printer, Wellington.—l 923.

Price, 6d.]

Particulars. Expenditure. War Gratuities. £ s. d. £ s. d. 5,648,157 18 8 69,418 0 10 £ s. d. Under section 7, Expeditionary Forces Amendment Act, 1918 Under section 24, Finance Act, 1919—Imperial and Naval.. 5,717,575 19 6 Charges and expenses of raising loans 710,915 7 5 Expenditure under Repatriation Act, 1918 1,306,956 4 2 Imprests outstanding — In New Zealand In London 3,809 16 2 19,781 4 3 79,385,095 9 3 23,591 0 5 Grand total of expenditure from beginning of war to 31st March, 1923 !£79,408,686 9 8 D. 39/19/23.