POST AND TELEGRAPH DEPARTMENT (REPORT OF THE) FOR THE YEAR 1949-50

Appendix to the Journals of the House of Representatives, 1950 Session I, F-01

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'_. ** rt. 0950 NEW ZEALAND

POST AND TELEGRAPH DEPARTMENT (REPORT OF THE) FOR THE YEAR 1949-50

Presented to Both Houses of the General Assembly by Command of His Excellency

To His Excellency Lieutenant-General Sir Bernard Cyril Freyberg, V.C., G.C.M.G., K.C.8., K.8.E., D.S.O. May it Please Your Excellency,— I have the honour to submit to Your Excellency the report of the Post and Telegraph Department for the year ended the 31st March, 1950. I have the honour to be, Your Excellency's most obedient servant, W. J. BKOADFOOT. General Post Office, Wellington C. 1. 11th August, 1950.

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FINANCIAL The history of the New Zealand Post Office is throughout one of expanding activity, and this trend has been particularly marked in the past few years. Post Office revenue for the year ended 31st March, 1950, was £9,647,950. This represents an increase of 106 per cent, over the 1938-39 year when revenue was £4,687,564. Most of this increase is a reflection of the growth in the volume of business handled, as the only large increase in rates in the past decade has been the introduction of 2d. letter postage. A similar trend is evident in the figures for working-expenses, which last year amounted to £10,491,851 (including certain capital and renewal items which in the final analysis are not chargeable to revenue). This growth in expenses has been caused by the greatly increased salary and wage bill consequent principally upon increased rates of pay, and the greatly increased cost of all the various goods, equipment, and services for which the Post Office has to pay. This year, despite the continued buoyancy of revenue, annual costs have exceeded income to the extent that a fairly substantial loss will be sustained on the year's operations. The accounts are not yet complete in final form. A detailed Statement of Receipts and Payments in respect of the working of the Post Office is shown in the Appendix, Table No. 1. Capital expenditure from vote " Telegraph Extension " is shown in Table No. 2. STAFF STAFFING POSITION At no time since the end of the war has the staff of the Post Office been fully adequate for current needs. Although the numerical strength of the staff has grown, the Department has at the same time had to cope with a steadily expanding volume of business, with a resulting need for more staff. This staff need has been made more difficult to meet by the acute man-power problem which the war and post-war years have involved for the country generally. The higher rate of staff turnover experienced in the comparatively unsettled post-war years has meant, too, that many employees are not fully experienced, and this inevitably makes full efficiency difficult to achieve. Vigorous recruiting measures have been maintained throughout the year and, although affected by the high general demand for labour and the smaller number of juniors becoming available for employment, have resulted in an overall increase of 1,050 in the number of employees, including temporary and casual employees. Growth has taken place in almost all branches of the Service, but, in particular, additional staff has been required for installation, maintenance, and operation of the constantly expanding telephone system. Shortage of staff is one of the difficulties in carrying through the telephone-expansion programme. Provided materials and finance are available, additional workmen could well be employed on telephone construction. Additional staff is also needed for full efficiency in other branches, particularly at a few centres —notably Wellington—where difficulty is experienced in maintaining staffs at a level sufficient to provide reasonably satisfactory service to the public.

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PERSONNEL Comparative Return of Persons Employed in the Department 31st March, 31st March, Permanent staff— 1949 ' 1950 * Administrative .. . • • • - • 15 First Division .. • • • • 5,432 5,553 Second Division • ■ • • • • • • 6,298 6,944 11,745 12,512 Temporary and casual staff .. . • ■ • 4,532 4,815 16,277 17,327 Non-classified staff— Postmistresses and assistants .. .. .. 226 257 Non-permanent staff— Country postmasters and telephonists .. .. 1,187 1,140 Railway officers .. .. •. • • 72 69 17,762 18,793 POST AND TELEGRAPH STAFF TRIBUNAL Salaries and Wages A sitting of the Post and Telegraph Staff Tribunal was held in July, 1949, under the chairmanship of Judge W. F. Stilwell, to consider further wage and salary claims lodged by the Service organization on behalf of Post Office employees. The Tribunal did not grant the claims in full but approved the following general increases with effect from the Ist June, 1949 : (a) £l3 per annum to those in receipt of a salary of £412 per annum and over. (b) £8 per annum to those whose salaries exceeded £297 per annum but did not exceed £4ll per annum. (c) £5 per annum to those whose salaries did not exceed £297 per annum. (<Z) lfd., Id., or |d. an hour ; 55., 3s. 4d., or Is. Bd. a week (as the case might be) to employees paid at hourly or weekly rates which, when computed on an annual basis, fell within the salary ranges set out in the preceding subparagraphs (a), (6), and (c). (e) Id. an hour to temporary female office-cleaners based pro rata on the number of hours worked of the full working-week of forty hours. As a result of these decisions the salary of the basic clerk was raised to £460 per annum, that of the tradesman to £425 per annum, and that of the semi-skilled group such as postmen, exchange operators, &c., to £390 per annum. The maximum salary rate for rank and file shorthand-writers and machinists was raised to £355 per annum for those with the Junior Examination and £3BO per annum for those with the Senior Examination. The maximum salary rate for other rank and file female employees was raised to £330 per annum. APPEAL BOARD Two sittings of the Appeal Board were held during the year, one in May-June and the other in October-December. At the two sittings 1,061 appeals lodged by 247 appellants were adjudicated upon, and the following decisions made : allowed, 15 ; conceded equal grading, 2 ; withdrawn, 336 ; did not lie, 23 ; disallowed, 685. In 14 of the disallowed appeals the Board made recommendations concerning the grading of the appellants.

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STAFF TRAINING Training Schools Recruits to the Post Office receive their main training on the job, but this is supplemented by a fairly complete scheme of training at established schools. For many years, school training was restricted to instruction in Morse operating, but during recent years the schools have been extended and now provide complete courses in : Morse operating and sub-office work : Machine-printing operating: Radio operating: Radio mechanicians' work: Electrical and general mechanical work : Telephone-exchange mechanicians' work: Telegraph mechanics' work : Line construction and cable-jointing work : Typing. The schools are fitted with up-to-date apparatus conforming to that in actual use. The courses vary from eight to twenty weeks of full-time intensive training under competent instructors. Refresher courses are also provided as required. Correspondence School The Post Office Correspondence School now provides sixteen non-technical courses and seventeen technical courses. A small charge is made for each course. Modern methods of teaching by correspondence are employed, and every effort is made to establish good teacher-student relations so that students feel encouraged to ask for further comment on any point not clear to them. The courses are revised frequently both for material content and for improved exposition from a teaching viewpoint. The school facilities are widely used by Post Office employees, who speak highly of the tuition. By arrangement with the Education Department Correspondence School, courses are also available in English, arithmetic, and geography for those officers wishing to qualify by examination for promotion from the Second to the First Division. HEALTH OF STAFF The following table shows the average number of days on which employees were absent on sick-leave during the years ended the 31st March, 1949 and 1950 :

Average Absences

The death of 42 officers occurred during the year.

Year Ended 31st March, Each Sick Employee. Each Sick Employee, Excluding Long-term Absences of Over Eighty Days. Each Person Employed. Each Person Employed, Excluding Long-term Absences of Oyer Eighty Days. 1949 Days. Days. Days. Days. Men 11-87 8-25 6-21 4-26 Women 13-44 10-08 8-28 6-15 1950 Men 11-49 7-88 6-21 4-21 Women 12-77 9-41 7-62 5-57

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Industrial Nurse An Industrial Nurse was appointed at Wellington in January, 1949. Although the accident hazard in most Post Office branches is not high, experience during the past year has shown that the professional status of a qualified nurse, and the establishment of a recognized clinic, does much to inspire the confidence of the staff, with the result that many cases not strictly necessitating medical attention are handled by the nurse. In cases of minor illness many officers who would normally take a brief period of sick-leave now receive treatment from the nurse without unnecessary loss of working-time. POST OFFICE HOSTELS The Post Office operates several hostels providing accommodation for departmental employees. The ruling factor in their establishment has in each case been the Department's extremity in the matter of staff. At Wellington there is a large aggregation of staff not only for the Head Office organization but also because Wellington is such a large transit centre for the traffic branches. The Wellington branches are in the main staffed by transferring young officers from all over the country. Increasing reluctance on the part of young people to accept transfer to Wellington where board became increasingly difficult to obtain (and for shift-workers, virtually impossible) led to a real danger of breakdown in service which was averted only by providing suitable accommodation. The same factors operated, though to a lesser extent, at Auckland, particularly in respect of shift-workers. One additional hostel was provided during the year at Wellington (Kensington House) to provide accommodation for 26 female shift-workers. There are now seven departmental hostels providing accommodation for approximately 700 employees. They are : Trentham Accommodation and Training Centre .. 350 (male and female). Johnsonville Hostel .. .. .. .. 104 male shift-workers. Molesworth Hostel (Wellington) .. .. 55 male shift-workers. Tinakori Hostel (Wellington Radio) .. .. 20 male shift-workers. Berkeley House (Wellington) .. .. .. 65 female shift-workers. Kensington House (Wellington) .. .. 26 female shift-workers. Mechanics Bay (Auckland) .. .. 62 males. These hostels are operated on a private-contract basis covering catering and domestic services, except that at Trentham the matrons and domestic staff are employed by the Department. Three other hostels conducted wholly by departmental employees are in being at Musick Radio, Makara Radio, and Awarua Radio, at each of which from 12 to 20 officers are in residence. STAFF WELFARE ORGANIZATION Activities of Departmental Staff Welfare Officers Staff welfare is important not only to employees, but also to the Department, because of the increased efficiency which results from contentment on the job. The establishment of a Staff Welfare Scheme was under consideration pre-war but was delayed for some years by war conditions. Staff Welfare Officers now operate in all districts, full or part time as warranted, with effective liaison with all offices and branches, and it is their function to deal with problems of individual officers which can best be dealt with on a personal basis. The scheme has made satisfactory progress during the year. The number of inquiries and interviews is increasing, and the general effect is better understanding between the Department and its officers, fewer resignations, and greater contentment on the job.

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Post Office Welfare Fund The Post Office Welfare Fund, a co-operative enterprise on the part of the staff, distinct from the departmental Staff Welfare Scheme mentioned above, is now firmly established. Membership is voluntary. Over 13,0 CX) employees belong to the Fund, and membership subscriptions — a week —provide an annual income of over £12,000. Much good has been accomplished in an unobtrusive way, particularly in cases of sickness, and it is evident that members appreciate the worth-while objects of their Fund. The provision of holiday cottage accommodation continues to be a very popular feature of the scheme. SUGGESTIONS SYSTEM During the year ended 31st March, 1950, 255 suggestions were received from officers and 149 were finally disposed of by the Suggestions Board. Of these, 40 were adopted or partly adopted, 11 were forestalled, and the remaining 98, although many were of a commendable nature, were unsuitable for adoption. Over the same period awards totalling £lB6 10s. were paid to 34 officers for suggestions of more than ordinary merit. JOINT ADVISORY SYSTEM The Joint Advisory System, which was established in 1940 to provide a means of staff consultation in matters affecting the efficient working of the Department, principles governing conditions of service, improvements in office organization, and generally to co-opt the ideas and experience of the staff, has continued to function effectively during the year. Since the inception of the scheme, some 2,000 proposals originating with Branch and District Advisory Committees, bearing on all phases of Post Office work, have been forwarded to the central Council for consideration. Many of them have resulted in improved service to the public. The Department, too, has not hesitated to refer to the Council a number of important questions for deliberation and report. PUBLIC RELATIONS During the year the Post Office has continued to develop its Public Relations functions. By the use of posters, general advertising, and press publicity the cooperation of the users of Post Office services has been sought in the interests of greater efficiency and improved service, and as a result there has been a valued increase in public understanding of Post Office problems. The staff, too, appreciate the efforts made to secure the co-operation of users of Post Office services, and in this way Public Relations functions have had an important bearing on general staff morale. POSTAL SERVICES Postal business expanded appreciably throughout the year. Compared with the previous year, approximately 7,000,000 more letters, 17,000,000 more articles of secondclass mail, and 500,000 more inland parcels were sent through the post. The handling of this extra load in the face of the continued shortage of trained staffs has thrown a burden on the experienced officers of the postal branches ; and although it was possible to deal with letter-mails expeditiously, these staffing difficulties were responsible on occasions for slight delays to second-class mail and parcels. Moreover, the increased quantity of second-class and parcel mail passing between the main centres frequently strained the mail space available in express trains, with the result that the overflow had sometimes to be sent by goods-trains.

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For quick communication, air-mail services continue to benefit the business community and public alike, and it is pleasing to record a considerable growth in the number of letters sent by this means, particularly for overseas. Whereas a few years ago the number of letters posted for surface despatch to overseas destinations greatly outnumbered those posted by air mail, the position to-day is reversed. This is indicative of the growing popularity of the air service, since the quicker transmission provided has greatly facilitated trade and commercial dealings, and has led also to a more frequent exchange of domestic correspondence. Advantage was taken during the year to effect improvements m mail exchanges and other postal services. Evidence of this is to be found in the increased frequency of despatch of inland air mails, the use of additional road services for mail despatches, the expansion of the rural-mail-delivery service, and the restoration of the night clearance of mail at Auckland. ii x T For the number of letters and other articles posted during the year, see lable No. 6 in the Appendix. INLAND AIR MAILS The total weight of letters carried by air within New Zealand during the twelve months ended the 31st March, 1950, was 345,9901b. Of this weight approximately half consisted of outgoing or incoming overseas air-mail. No additional centres were served during the year, but existing frequencies were improved and provision was also made for late afternoon services from Wellington to Christchurch, Blenheim, and Nelson, and from southern centres and Wellington to Auckland. The number of air parcels carried throughout the year was 91,226. INLAND SURFACE MAILS Extension of Facilities Improvements to existing mail-services continued to be made throughout the year. The restoration of a number of express-train services which were discontinued in past years enabled more frequent exchanges of mails to be arranged in certain cases. Increased use was also made of railway road services, which, in general, provide an excellent means of despatch for letter-mails. The more bulky parcel and second-class mails (newspapers, prmted papers, commercial papers, packets, &c.) are, in general, despatched by rail. Postings have been maintained at a high level throughout the year, and between Auckland and Wellington the space available on passenger and goods express trains has not been sufficient to meet all requirements. As a consequence, regular use has also been necessary of ordinary goods-trains, which frequently take thirty-six or more hours in transit. The evening clearance of street posting-boxes in the Auckland metropolitan area was restored on the 14th August, 1949. All pre-war clearances have now been resumed, and some have been extended. New postmen's deliveries were established during the year at Waikanae, Titahi Bay, Trentham Camp, and Takapau. In addition, numerous extensions to existing deliveries, to serve new housing-areas, were made. Mail-service Contracts The contracts for the performance of inland mail-services in the South Island expired on the 30th September, 1949, and were relet during the year for a further term of three years from the Ist October, 1949.

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Rural Boxholders The rural-delivery system was considerably extended during the year, 56 new deliveries being established and 342 extensions to existing deliveries being arranged. The number of boxholders on the 31st December, 1949, totalled 51,523, an increase of 4,293 on the figures for the previous year. This is the largest annual increase in the number of boxholders since the inception of the rural-delivery system in 1922. MISSING POSTAL PACKETS During the year 8,192 complaints regarding the non-delivery of postal packets were investigated by the Department. In 4,230 cases, or more than half the total, the articles were traced or accounted for satisfactorily as follows : Sender responsible for delay .. .. .. .. 1,192 Addressee responsible for delay .. .. .. ..1,117 Post Office responsible for delay .. .. .. .. 534 No delay, or responsibility not fixed .. .. .. 1,387 In 3,962 cases, representing 0-001 per cent, of the total number of articles posted, the manner of disposal could not be determined. POSTAGE-STAMPS The 1949 Health stamps were placed on sale on the 3rd October and were of the usual two denominations (Id. plus |d. and 2d. plus Id.). The design, which depicted a nurse in uniform holding a child, was prepared by Mr. J. Berry, of Wellington. As this was the twenty-first anniversary of the Health stamp issue it was appropriate that the design should feature a nurse as in the case of the first issue. Messrs Harrison and Sons, Ltd., London, printed the stamps by the photogravure process. The withdrawal date for the issue was to have been the 31st January, 1950, but, in most cases, stocks held at post-offices were exhausted well before that date. The total sales amounted to £113,053. One-third of this sum, plus donations received by the Post Office amounting to £92, has been paid to the New Zealand Federation of Health Camps. As from the Ist January, 1950, certain stamps and postal stationery of New Zealand and its island dependencies were demonetized. The issues concerned were as follows : New Zealand 1935 pictorials and any stamp of this series overprinted, together with any postal stationery bearing a stamp of this series. Air-mail stamps (1935). Air-mail letter-cards issued for the exclusive use of prisoners of war. Health stamps from 1937 to 1945, inclusive. " Coronation " series, issued in 1937, to commemorate the coronation of Their Majesties King George YI and Queen Elizabeth. " Centennial of New Zealand " series and any stamp of this issue overprinted. Express Delivery stamp. Government Life Insurance original issue (1905). Island Dependencies " Coronation " set overprinted for use in the Cook Islands and Niue. King George V Is. denomination for Cook Islands and Niue. Western Samoa series commemorating the twenty-fifth anniversary of New Zealand Administration.

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A new pictorial series of stamps for the Cook Islands was placed on sale on the Ist August, 1949, replacing the previous issue which had been in use since 1932. The new set comprises ten denominations ranging from Jd. to 35., the total value being Bs. l|d. It depicts various historical and other aspects of the Cook Islands. The designs were the work of Mr. J. Berry, and the stamps were printed by Messrs Waterlow and Sons, Ltd., London. A stamp with the denomination of 5d., representing the initial air-mail fee on correspondence for New Zealand, was added to the current set of Western Samoa, on the Bth June, 1949. The stamp, which features a view of the Apia Post-office, was designed by Mr. L. C. Mitchell, of Wellington, and was printed by Messrs Bradbury, Wilkinson, and Co., Ltd., New Maiden, Surrey, England. OVERSEAS POSTAGE-RATES: INCREASES CONSEQUENT UPON DEVALUATION OF STERLING Following the devaluation of sterling in relation to the dollar, the postage-rates for certain overseas air-mail and parcel-post services in respect of which transport costs are paid in dollars, were increased with effect from the 4th January, 1950. The principal increases were — (i) Air-mail correspondence for United States of America and Canada for despatch by Pan-American Service : Letters increased from Is. 6d. to 2s. each | oz. and letter-cards increased from 6d. to Bd. (ii) Parcels for United States of America : (a) Direct route—Rates increased from 7d. to 9d. a pound ; (b) Route via Canada —Rates increased from 9d. to Is. a pound. OVERSEAS AIR MAILS Air-mail Service for Transmission Overseas op Second-class Articles A service for the transmission overseas by air mail of second-class articles (newspapers, printed papers, commercial papers, samples, and " small packets ") was introduced on the Ist February, 1950. The postage-rates are approximately two-thirds of those for letters. The new service extends to Australia, United Kingdom, Canada, U.S.A., and to the majority of countries to which air-letter services are available. The question of providing an air parcel-post service to certain overseas countries is now under examination. Trans-Tasman Service The air mail to Australia provides a very fast service. A letter posted in Auckland early in the day can be sorted into a private box in Sydney the same afternoon, or delivered by postman the next day. The service was inaugurated in 1940 and has grown continuously in popularity. Last year, with daily Trans-Tasman despatches, 70 per cent, of letters for Australia were sent by air. During the year the weight of mail despatched from New Zealand by the Tasman service was : letters, 161,154 lb.; second-class matter (two months' traffic). 1,751 lb. In the reverse direction, the weight of mail was : letters, 228,350 lb.; second-class matter (two months' traffic), 5,219 lb.

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Empire Service The Empire service, too, continues to grow in popularity, arid last year 55 per cent, of letter-mail for the United Kingdom was sent by air. The frequency of the air-mail service between Sydney and London, which for some time had been thrice-weekly, was increased in June, 1949, to four times weekly. In consequence air mails for the United Kingdom are now closed at Auckland four times each week, but mails for intermediate countries between Australia and the United Kingdom to which only a small volume of correspondence is sent, continue to be closed thrice-weekly. The average transmission time from Auckland to London for New Zealand air mails is still about seven days. The weight of air-mail correspondence from New Zealand despatched by the Empire air service during the year was : letters, 68,031 lb.; second-class mail (two months' traffic), 691 lb. Of this 61,541 lb. of letters and all of the second-class mails were for the United Kingdom. The total weight of inward mail for New Zealand was 108,062 lb. of letters and 4,621 lb. of second-class mail (two months' traffic). Trans-Pacific Services British Commonwealth Pacific Airways (Auckland - San Francisco - Vancouver) and Pan-American World Airways (Auckland - San Francisco) maintained throughout the year direct weekly services between New Zealand and North America. In addition, advantage was taken to fly mails across the Tasman to connect once weekly with B.C.P.A. planes departing from Sydney to Vancouver. By this means it was possible to provide three closings weekly for air mails for America. Mails containing second-class matter (newspapers, commercial papers, packets, &c.) have been received inward by the Pan-American Airways Service since the 9th June, 1949. A similar service in the reverse direction by B.C.P.A. planes was commenced on the Ist February, 1950. . „ . The weight of mail matter despatched by the Trans-Pacific services for the year ended the 31st March was : letters, 15,228 lb. ; second-class matter, 190 lb. Services to Pacific Islands Regular air schedules to Norfolk Island, Fiji, Tonga, Samoa, and the Cook Islands continue to be operated by the regional services of National Airways Corporation. Fiji is also served by the direct Auckland-Vancouver service of the British Commonwealth Pacific Airways which calls at Nadi. On the 18th October the first regular air mail for Papeete (French oi Oceania) was despatched. A regular monthly connection is available by using the B.C.P.A. service from Auckland to Nadi (Fiji), where connection is made with a French service (TRAPAS) operating between New Caledonia, Fiji, and Papeete. The weights of air mails for the places mentioned, despatched during the year ended the 31st March, were as follows : Norfolk Island, 1,072 lb. ; Fiji, 5,312 lb.; Tonga, 598 lb.; Samoa, 1,710 lb. ; Cook Islands, 1,587 lb.; French Settlements of Oceania, 36 lb. OVERSEAS SURFACE MAILS Outward Mails Little difficulty was experienced in disposing of mails to the United Kingdom, Australia, and the South-west Pacific. To the United Kingdom mails have been despatched on the average at weekly intervals. To Australia a frequent service has been maintained, full use being made of the weekly sailings of the intercolonial passenger-vessels as well as other vessels, as occasion arose. The service to the South-west Pacific, Fiji, Tonga, Samoa, &c., was maintained at least once monthly.

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With mails for North America, however, it has been necessary in the intervals between the regular sailings of the " Aorangi " —which leaves Auckland at two-monthly intervals, and is the only passenger-vessel in the North American service—to rely on cargo-vessels departing at irregular intervals to Pacific Coast ports and, on occasions, vessels passing through the Panama Canal to New York and other Atlantic Coast ports. At all times, however, an endeavour was made to despatch mails at least once in every two weeks, and on only three occasions was this interval exceeded. Twenty-eight despatches of mails were made during the year. Letters for all overseas destinations posted for despatch by surface transport continue to show a decrease. On the other hand, parcels (except gift parcels for the United Kingdom) and newspapers, &c., have shown a marked increase. Inward Mails Inward surface mails have been received at about the same frequency as outward mails have been despatched. Mails from the United States are often despatched to Australia for trans-shipment to New Zealand, and this adds to the transit time. In addition, some delays have been caused by berthing and unloading difficulties in New Zealand ports. Gift Parcels The postage on gift parcels addressed to individuals in the United Kingdom was reduced during the year to Is. 6d., 2s. 9d., 45., and 6s. 3d. for 3, 7,11, and 22 lb. parcels, respectively. This was made possible by the reduction by the British Post Office of its share of the postage on bona fide unsolicited gift parcels of food, worn clothing, medical supplies, or soap. Notwithstanding the reduced postage-rates, however, postings of gift parcels for the United Kingdom have continued to decline. For the year ended 31st March, 1950, the number of parcels posted was 788,343, compared with 1,203,052 for the previous year. Mails Conveyed by Naval Vessels In disposing of mails for many of the outlying Pacific Islands the Post Office has received ready co-operation from the New Zealand naval authorities. During the year it was possible to forward mails by naval vessels to Eaoul Island, Niue, the Cook Islands, Samoa, Tonga, Fanning Island, Funafuti, and other islands in the South-west Pacific, and also to Campbell and Macquarrie Islands in the Antarctic. In the ordinary course of events some of these islands receive mails only at very irregular and infrequent intervals, and consequently, the receipt of additional mails by naval vessels is very much appreciated. The Post Office, for its part, keeps in close touch with the movements of New Zealand naval vessels when they are away from New Zealand waters, and every opportunity is taken to ensure that the ships' personnel receive mails, both surface and air, as frequently as circumstances permit. Postal Services to China During the year it became necessary to restrict postal services to China to the acceptance of unregistered letters and post-cards, which can be sent forward only as far as Hong Kong for onward despatch at sender's risk. Increase in Parcel-post Weight-limit to Canada The weight-limit for parcels from New Zealand to Canada was increased from 11 lb. to 20 lb., with effect from the Ist August, 1949. This makes the weight-limit more uniform in both directions.

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TELEGRAPH SERVICES (INLAND) The volume of work handled by the inland telegraph service, although slightlyshort of its wartime peak, remains at a high level, approximately 40 per cent, above pre-war. During the year the number of telegrams lodged for transmission was 7,928,999 an increase of 253,150 or 3-3 per cent, on the number handled in the previous year. The grade of telegraph service continues to show a steady improvement. Extended use has been made of machine-printing equipment, and eighteen smaller offices have been provided with Morse equipment. There has been greater stability in the telegraph staffing position, but recruitment of telegram delivery staff continues to present serious difficulty. In some centres, it has been necessary to use adults for this duty, and light cars are also in use for the purpose. Trials are in progress to test the suitability of power-bicycles and motorscooters for telegram delivery work. The delivery difficulty is partly overcome by extending the practice of telephoning telegrams to addressees, but it is still a real problem in many places. Despite these difficulties, and in view of the housing development which is taking place in urban areas throughout New Zealand a review was made recently of the telegram free-delivery areas at all of the larger offices, and wherever practicable, new residential areas have been included in the free-delivery areas. As a consequence of these extensions, a much improved telegram delivery service is being given to a large number of householders. IMPROVEMENTS IN TRANSMISSION FACILITIES Multi-channel Voice-frequency Systems The development of the multi-channel voice-frequency system has effected a very marked advance in telegraphy. This system of using carrier-speech channels for telegraphic communication makes it possible to operate up to eighteen two-way teleprinter or Morse telegraph channels over one carrier-speech channel. The use of this equipment also ensures a much greater stability of operation and a greater degree of flexibility than is possible with physical circuits. During recent years multi-channel voice-frequency circuits have been brought into operation between Christchurch-Dunedin, Christchurch-Greymouth, WellingtonChristchurch, Wellington-Blenheim, Wellington-Nelson, Wellington - New Plymouth, Wellington-Wanganui, Wellington-Palmerston North, Wellington-Auckland, Welling-ton-Napier, Auckland-Hamilton, and Auckland-Whangarei, while it is planned to establish several additional voice-frequency circuits in the near future. Machine-printing Telegraphs There are now thirty-six offices in New Zealand where machine-printing telegraph apparatus is installed. The last office to be so equipped was Dargaville, where the equipment was brought into operation in November, 1949. Conversion to Morse Working at Smaller Offices During the year, Morse equipment was installed in eighteen offices which previously disposed of their telegraph traffic by telephone. This has reduced the delay in exchanging telegrams with these offices. It is planned to convert additional offices to Morse operation as conditions permit. TELEGRAPH ATTENDANCES ON HOLIDAYS AT TOURIST RESORTS There are many places in New Zealand which experience an influx of visitors at holiday periods. At such places the Post Office augments the normal telegraph facilities as may be necessary, and such arrangements were made in a number of cases during the year. At three places, Picton, Queenstown, and Tauranga, a telegraph attendance on holidays has been introduced as a standing arrangement.

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GENERAL ELECTION AND LICENSING AND MILITARY TRAINING POLLS, 1949 The general election and licensing poll held on the 30th November, 1949, and the Maori election held the previous day resulted in the usual large volume of telegraph traffic. The communications organization worked very smoothly throughout, and a new record was established in the handling time of telegrams containing particulars of the voting in each electorate. The average transmission time for such messages from lodgment until receipt in Wellington was 3.15 minutes where one transmission was involved and 6.1 minutes in the case of two transmissions. The communication arrangements also worked smoothly on the occasion of the Compulsory Military Training Poll held on the 3rd August, 1949, the extra volume of traffic being handled expeditiously. EMPIRE GAMES The telegraph facilities provided in connection with the Empire Games held at Auckland in February earned enthusiastic praise from overseas and local newspaper representatives and Games officials. The provision of adequate facilities for handling both internal and overseas telegraph traffic was a major undertaking. Offices were opened at Eden Park, Western Springs, Olympic Pool, and at Lake Karapiro for the acceptance and transmission of telegrams, teleprinter circuits being provided from these points direct into the Auckland and Wellington Telegraph Offices. Approximately a million and a half words of press traffic were handled over these circuits ; approximately a million words being transmitted to New Zealand newspapers, and a half million being for newspapers overseas. All traffic was handled with a minimum of delay. SPECIAL TELEGRAPH FACILITIES PROVIDED DURING TOURS BY OVERSEAS SPORTS TEAMS Prompt handling of overseas press traffic relating to the matches played by the Australian Cricket Team, the Australian Rugby Union Team, and the Australian Rugby League Football Team, which toured New Zealand during the year was secured by providing machine-printing facilities at sports-grounds for direct communication with the overseas cable terminal at Wellington or Auckland. TELEPHONE-EXCHANGE SERVICES Each year since the end of the war has been one of record achievement in the provision of telephone service ; nevertheless, the Dominion waiting list has continued to grow. The following table shows the trend since the Ist April, 1946

Telephone Statistics Since 1st April, 1946

Total net gain in subscribers since 31st March, 1945 : 65,845, or 34-4 per cent.

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Year Ended 31st March, Number of Subscribers' Increase Over Previous Year. Number Installed During the Year. Number of Waiting Applicants Stations. Number. Percentage. at End of Year. 1945 1946 .. 1947 1948 1949 1950 191,189 197,513 209,505 222,504 238,292 257,034 J 11,992 12,999 15,788 18,742 3-3 6-7 6-2 71 7-9 10j 573 17,002 17,883 21,067 24,806 34,800 41,292 48,378 55,309

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The Elements of the Telephone Problem The telephone problem is a direct outcome of the war which was a period of standstill as far as the expansion of telephone exchanges is concerned. Extension equipment was not available, and in any case staff was not available to install it. As a result, service was given to as many as possible by loading existing plant to capacity and by installing temporary manual exchanges in automatic areas. But there were many more applicants than could be satisfied by make-shift expedients : the need was for new equipment in large quantities. Accordingly, towards the end of the war the Post Office negotiated an agreement with five British telephone-manufacturing companies which assured to New Zealand the best deliveries possible on a market short of raw materials and faced with a very heavy post-war demand. However, visible results could not be expected quickly. In the manufacturing countries it took time to reorganize industry previously geared to meet the requirements of war. In addition, the provision of a telephone exchange involves unavoidably a long time from the planning and ordering stage until it is received, installed, and working. The new automatic exchanges at Lower Hutt and New Plymouth are the first major automatic installations arising from the post-war agreement. Much more equipment has now arrived or is arriving this year and next, and it is hoped to provide long-awaited relief at Auckland, Wellington, and Christchurch, to install an automatic exchange at Nelson, and to provide relief at a number of provincial centres. Exchange equipment is now coming off the production-line freely, and is no longer the most pressing difficulty. Other types of equipment are also required in large quantities. The shortage of poles in particular is seriously retarding development, particularly in country districts. Australian hardwood, New Zealand silver-pine and creosoted larch and locally manufactured concrete poles are not available in sufficient quantities to meet requirements, and during the year, 12,000 poles were ordered from Sweden to ease the position. Within the money allocation provided, all sources of supply will continue to be exploited to the full in an endeavour to secure an adequate supply. Staffing is also a problem. As many workmen as possible are being recruited and trained in installation and reticulation work. In addition, it is proposed temporarily to reduce technical maintenance staff throughout the country to a bare minimum and concentrate every available skilled man on installation work. To achieve quick results, additional staff could be employed most usefully on this work. Man-power and equipment of all sorts are the material elements of the problem. In addition, there is the overruling factor of financial provision. The liquidation of all telephone waiting lists cannot be achieved without large capital investment in exchange equipment and reticulation. While it is not possible to predict when the situation will be completely overcome, it can be said that every effort is being made to meet the unprecedented demand for telephone service following the wartime cessation of telephone development. NEW ZEALAND TELEPHONE EQUIPMENT SUPPLY AGREEMENT A bulk-supply agreement was negotiated with five British telephone manufacturers in 1946, under which the major part of the telephone equipment required in this country was to be obtained from the United Kingdom. This agreement has now been renewed for an indefinite period, terminable at three years' notice by either party. The agreement followed a decision to standardize in New Zealand on the British line of development in the telephone sphere, and has the important advantage that orders for telephone equipment are spread over the five firms concerned according to their ability to supply. This ensures the best deliveries possible and secures, in addition, important advantages from patent-sharing agreements between the contracting manufacturers, and improvements resulting from their continuous joint research activities.

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EXTENSION OF TELEPHONE-EXCHANGE SERVICES New and Pending Installations in Automatic Areas The following schedule indicates the new exchange equipment installed during the year and that at present under installation to provide relief at the larger automatic exchanges: —

The new building for the Nelson automatic exchange is in course of erection, and the work of installing the automatic switching equipment to replace the existing inadequate manual exchange will commence as soon as the building is ready. It is also expected that during the next twelve months or so the Upper Hutt manual exchange and the temporary manual exchanges at Island Bay, Karori, and Kilbirnie ("Wellington), and Naenae (Lower Hutt) will be replaced with automatic systems and that a new automatic exchange will be installed at Hataitai (Wellington), and the equipment in the Wellington central exchange extended. Extension of Existing Manual Exchanges Additional switchboard equipment providing exchange facilities for hundreds of additional subscribers was installed at fifty-nine manually-operated exchanges. At Timaru work is now under way which will provide switchboard accommodation for 900 additional subscribers.

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Place. Capacity of Equipment Capacity of Equipment Provided During Year. Under Installation. Auckland area— Subscribers. Subscribers. *Tamaki .. 200 Christchurch area — 600 ♦Christchurch *Lyttelton 150 600 ♦Riccarton 900 ♦Sumner 500 Dunedin area— Andersons Bay 60 ♦Dunedin Central .. 1,500 ♦Ravensbourne 225 Wellington area— 1,125 *Kilbirnie .. .. Lower Hutt .. .. • • 5,000 *Lower Hutt 1,000 ♦Naenae 1,125 Other centres — 600 ♦Blenheim Gisborne 400 ♦Hamilton 450 600 ♦Hamilton East ♦Masterton 1,000 Napier .. 400 "{"New Plymouth 4,800 ♦New Plymouth 1,400 400 ♦Oamaru Whangarei i,ioo * This equipment is of a temporary nature and will later be replaced with new automatic switching equipment. •f New exchange replacing manual exchange.

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New Exchanges Established During the year the undermentioned new rural automatic-telephone exchanges were opened :

In addition, the Orini manual exchange in the Raglan County serving 123 subscribers was converted to rural automatic working. Special efforts have been made during the year to meet the requirements of rural areas, and 12,802 new connections have been made at manual exchanges, a high proportion of them being for rural subscribers. A trial automatic exchange switching unit of 130 subscribers' lines was installed during the year at Rotorua in order to test the operation of automatic switching equipment in the atmospheric conditions peculiar to thermal regions. Proposed New Exchanges Authority has been given for the establishment of new telephone exchanges at the following places. In some instances construction work is already in hand and in others is about to commence, but the completion of the programme will, of course, depend upon the considerations of man-power, materials, and financial provision already mentioned.

It is also intended to convert the Waipahi manual exchange (Clutha County) to rural automatic working. Ultimately, all the exchanges named in the foregoing list will be automatic, but some will at the outset be established on a manual basis. In addition, proposals to establish new exchanges at a number of other places, mostly in rural areas, are under consideration. TOLL SERVICE Growth in the volume of toll traffic is rapid and continuous ; this is a reflection of the increasing number of subscribers and the growing telephone consciousness of people generally. The ultimate aim of the Post Office is to provide a no-delay toll service. For this to be possible, there must be adequate circuits and toll-operating facilities.

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Place. County. ! Date Opened. Number of Subscribers as at 31st March, 1950. Awhitu Franklin 16th January, 1950 137 Harihari Westland 9th November, 1949 79 Te Palm Raglan 27th June, 1949 80

Place. County. Place. County. 1 Alton Donnellys Crossing .. Five Forks Herbert Maheno Mount Maunganui .. Murupara .. Ohai Otira Patea. Hobson. Waitaki. Waitaki. Waitaki. Tauranga Whakatane. Wallace. Westland. Panetapu South Hillend.. Tawa Flat Titirangi Wairau Yalley Wataroa Whangamata Whitianga 1 i Otorohanga. Southland, j Makara. Waitemata. Marlborough. Westland. Thames. Coromandel.

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Expansion op Toll Circuit Network On many routes the toll circuits are now being worked to capacity, and additional circuits must be provided to achieve major improvements in service. This involves the erection of additional wire, the reconstruction of pole-line in some cases, or the installation of carrier-telephone equipment —all of which are costly in terms of man-power and materials. Carrier-telephone equipment enables up to twelve speech channels to be obtained from a single pair of wires, and installation of this equipment has done much to ease the position over the longer distances. This equipment is, however, too costly to be a satisfactory answer to the problem over short distances. On the Auckland-Hamilton and Wellington - Palmerston North routes all existing physical circuits have been exploited to the full by the use of carrier systems, and further relief can be given only by the provision of underground toll cables, a development which would be necessary in any case co-incident with any railway electrification scheme over these routes. Underground coaxial telephone cables of the modern type are each capable of providing up to one thousand speech circuits. During the year, sixty-eight additional toll circuits were brought into use. Nineteen were on main routes (including six additional Wellington-Auckland circuits), and the rest on secondary routes. Thirty-nine of the new circuits were provided by means of carrier-telephone systems superimposed on existing wires. The installation of another four three-channel carrier systems is now in hand, and it is proposed to install a further eight three-channel systems during the forthcoming year. Carrier-telephone equipment equivalent to fifteen twelve-channel systems is now in course of manufacture, delivery to commence in September, 1950. Six of the systems are to include high-grade programme channels for broadcasting purposes. When these new twelve-channel carrier-telephone systems are brought into commission approximately one hundred and twenty additional long-distance toll circuits will be made available throughout New Zealand. Laying of Submarine Telephone Cable to Waiheke Island In August, 1949, a twenty-five-pair submarine cable, nine miles long, was laid between Waiheke Island and the mainland. This cable was urgently needed to improve the communication facilities with this increasingly popular holiday resort. The work of laying the cable, apart from loading-time, was carried out in two days' operations. Toll-exchange Equipment In order to provide adequate exchange-operating facilities for handling the evermounting number of toll calls a new toll exchange of twenty-two operating positions was installed at Palmerston North, and extensions were provided at Dunedin (ten positions), Invercargill (six positions), Marton (two positions), Oamaru (four positions), and Whangarei (two positions). A new twelve-position toll exchange is now being installed at Blenheim and an extension is being provided at Timaru (five positions). Extensions are about to be installed at Napier (three positions) and at Stratford (two positions). Public Call Offices At the 31st March there were 1,726 public call offices (coin-in-slot telephones) installed in New Zealand. The total collections for the year amounted to £111,939. (See also Table No. 6 in Appendix.) Advertisements in Telephone Directories Commercial advertisements in telephone directories, which were discontinued during the war, have been progressively reintroduced since 1946. The advertisements are now carried in fifteen of the twenty-one directories. Revenue from this source amounted to £9,178 for the year, against £4,351 for the previous year.

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RADIO SERVICES (INLAND) Radio is increasingly important in the modern world, and in New Zealand development is continuously taking place in the use of radio-communication services, internal as well as overseas. Approximately seven hundred frequencies are now in use by a wide variety of users (Post Office, Armed Forces, Forestry Department, Police, Broadcasting Service, private commercial users, &c.) for such purposes as broadcasting, point-to-point telephony and telegraphy, maritime mobile (including distress), aeronautical radio (including distress), navigational aids for shipping and aircraft, meteorological services, &c. The past year has seen continued development in the Post Office internal radio services, notably in the very-high-frequency radio-telephone service for mobile units, and in the number of licences of various kinds issued by the Post Office as the Department responsible for the administration of the Radio Regulations. POST OFFICE SERVICE FOR MOBILE VEHICLES The Department's very-high-frequency radio-telephone service for mobile units mentioned in last year's report is expanding rapidly, and service is now available at eight centres. Various difficulties which were to have been expected in the development stages have been overcome and good service is being given to the users of the service. Twenty-three channels are now in operation, serving forty-two subscribers with a total of 297 mobile units. RECEPTION OF PUBLIC TELEGRAMS FROM OVERSEAS AIRCRAFT On the Ist April, 1949, a service was introduced to provide for the handling of telegrams from passengers in aircraft to addressees in New Zealand and beyond New Zealand. British Commonwealth Pacific Airlines is the only airways company using the facility at present. CHATHAM ISLANDS RADIO Extra equipment has been installed at the Chatham Islands Radio Station to provide adequate radio-communication facilities for aircraft flying to and from the islands in the service inaugurated during the year. In addition, the services of a wireless operator are made available on " flight " days to operate the radio-telephone equipment on the airtraffic control launch. This facilitates communication with aircraft on arrival and departure. RADIO-COMMUNICATION FOR SHIPS AT APIA AND RAROTONGA The Post Office is collaborating with the Department of Island Territories in the provision of radio-telephone facilities at Apia and Rarotonga to enable ships in the roadstead to communicate with the shipping agency ashore. It is hoped later to extend this service to some of the smaller islands in the Cook Group. NUMBER OF LICENCES CURRENT FOR VARIOUS SERVICES Private Radio-telephone Shore Stations : Services for Small Marine Craft In areas not served by Post Office coast radio stations the owners of small marine craft are permitted to form associations to establish and operate private shore radio stations to provide radio-telephone communication with their boats. Twenty-eight such stations (compared with sixteen a year ago) are in operation, serving the needs of 140 fishing-trawlers, launches, and the like. Post Office Radio-telephone Service for Ships Two hundred and eighty-eight ships are licensed to carry radio-telephone installations for communication with coast radio stations controlled by the New Zealand Post Office, compared with 206 ships so licensed a year ago.

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Private Experimental (Amateur) Stations The number of amateur radio operators, who do much good work in providing radio communication in connection with emergencies such as river floods, mountain rescues, searching for missing aircraft, &c., continues to grow. At the 31st March the number of private experimental (amateur) stations licensed was 1,985, compared with 1,853 at the end of March the previous year. Radio-dealers' Licences Radio-dealers' licences in force at the 31st March numbered 1,871, an increase of 112 over the previous year. Broadcast-receiving Licences At the 31st March there were 449,453 broadcast-receiving licences current in New Zealand, an increase of 17,278 or 3-99 per cent, for the year. TELECOMMUNICATION SERVICES (OVERSEAS) Because of geographic isolation, New Zealand is particularly dependent upon good overseas communications. The overseas cables continued to give good service during the year, but the radio-telephone and radio photo-telegram services outward from New Zealand suffered from the lack of a high-powered radio-transmitting station with a sufficiency of aerial arrays. The need was well illustrated during interruption to the overseas cables, when radio was used to handle traffic. Also, during the Empire Games radio channels were opened to assist in handling the extra volume. On each of these occasions the existing facilities handled inward traffic satisfactorily, but proved insufficient for outward traffic. The projected new transmitting-station at Himatangi is needed to correct the position. INTERNATIONAL TELECOMMUNICATION CONFERENCES International agreement in the telecommunication sphere is negotiated within the framework of the International Telecommunication Union which was founded in 1865 and has a record of eighty-five years successful international negotiation. The Union's original concern was with telegraph services, and later telephone and radio services. No difficulty has been encountered in maintaining world co-operation in the telegraph and telephone spheres, but the position with radio is different. Radio has gradually assumed a preponderating importance, particularly with the impetus given by the war to the development of many radio services. These include not only utility services—for example, maritime, aeronautical, and correspondence services—but also broadcasting services which may be used as a medium of expression of national consciousness. Many nations are only newly awakened to such possibilities. As a result, the radio spectrum space has become overcrowded, and international agreement is urgently needed to prevent the development of a chaotic state of mutual interference among radio stations. Plenipotentiary Conferences of the International Telecommunication Union are normally held every five years, the last being held at Atlantic City in 1947. However, such a long time had elapsed since the previous Conference (on account of the war), with so much development in the meantime, that a number of special Conferences outside the regular five-yearly sequences have been necessary, particularly in the radio sphere where the process of reaching world agreement concerning frequency allocations is not yet complete. The following international telecommunication Conferences held overseas during the year were attended by delegates from New Zealand.

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International Telegraph and Telephone Conference, Paris, May to August, 1949 This conference revised the World Telegraph and Telephone Regulations enacted at Cairo in 1938. The New Zealand delegation was led by Mr. H. W. Curtis, Second Deputy Director-General, who was assisted by Messrs F. C. Gentry and T. N. Morrison, of the General Post Office staff. The Conference made some outstanding changes to the International Telegraph Regulations, notably in respect of the method of charging for international telegrams and the number of categories of messages available to the public. The new regulations come into force on the Ist July, 1950, the more important of the changes being as follows : (a) Telegrams written in either plain language or secret language (code and cipher) will be charged for at a unified rate which, unless special arrangements apply, will be 75 per cent, of the ordinary rate existing on the Ist February, 1950, and there will be a five-word minimum charge for these telegrams. The special reduced rate for code telegrams (CDE) will be abolished. (b) The service of deferred telegrams (LC) will be abolished. (c) The rate per word for letter-telegrams will be half of the new unified rate, and an improved delivery service will be provided. The one-third limitation regarding numbers written in figures, abbreviated expressions, commercial marks, &c., will be removed, and the minimum number of chargeable words will be reduced from twenty-five to twenty-two. (d) The rules for the counting of words have been simplified, the main change being in the counting of plain-language words in what are now known as " mixed " telegrams —i.e., those containing plain-language words and code words. Plain-language words will be counted at the rate of fifteen letters to the word instead of five letters to the word as previously. From the Ist July, 1950, there will be only two categories of overseas telegrams—viz., " ordinary " and " letter." Urgent telegrams at double the new ordinary rate will still be available by special arrangement with countries which agree to this optional service. United States of America and British Commonwealth Telecommunications Conference, London, August, 1949 This Conference at which New Zealand was represented by Messrs H. W. Curtis (already overseas attending the Paris conference) and J. G. Young, New Zealand representative on the Commonwealth Telecommunications Board, London, was held at the request of the United States Government for the purpose of revising the telecommunication agreement reached between the Governments concerned, at Bermuda in 1945. The revised agreement, which was approved in February, 1950, clarified the position in respect of direct wireless circuits, and to meet United States requirements provided for increased ceiling-rates for telegrams exchanged between the United States of America and Commonwealth points. International Administrative Aeronautical Radio Conference (Second Session), Geneva, August to October, 1949 The New Zealand representatives were Messrs G. Searle (Post Office) and F. W Andrews (Air Department). The Conference was successful in preparing a world plan covering the use of frequencies and the general conduct of radio communication in the Aeronautical Mobile Service.

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Region 3 Administrative Radio Conference, Geneva, May to November, 1949 The New Zealand delegates were Messrs G. Searle and J. M. Power (Post Office) and F. W. Andrews (Air Department). The Conference prepared a plan for the assignment of radio frequencies for all types of use between 150 and 3,900 kilocycles to stations in Region 3, which covers South and East Asia and the Pacific areas, including New Zealand and Australia. Technical Plan Committee of the High-frequency Broadcasting Conference, Paris, June to December, 1949 This Committee, on which New Zealand was represented by Messrs E. W. de Lisle (Post Office) and N. B. Johnston (New Zealand Broadcasting Service), was appointed by the High-frequency Broadcasting Conference of Mexico City to prepare the additional phases of the basic plan agreed upon at Mexico City, 1948, in connection with the assignment of world-wide short-wave broadcasting frequencies. Provisional Frequency Board, Geneva The function of this Board is to regulate the use of radio frequencies in radio services not falling within the sphere of specialized Conferences. These are chiefly those in the fixed service and the maritime mobile service. The Board was in session from January, 1948, to February, 1950, but New Zealand was represented directly (by Messrs Searle and Power) only from March to December, 1949. Prior and subsequent to this period New Zealand's interests were watched by the Australian delegation. The radio Conferences are particularly important to New Zealand. Overseas shipping and air services depend upon radio for efficient operation, as also do many important internal services. And radio is increasingly important for overseas communication, a factor which could assume very grave importance in emergency, or if cable outlets were interrupted. Although considerable progress has been made in international negotiation, it is unfortunate that complete agreement is delayed by the political aspirations of some groups within the Union. So far as agreement has gone, New Zealand representation at the Conferences has been an essential safeguard to New Zealand's interests, and must continue to be. SUBMARINE CABLES Interruptions to and Repair of Cables On the 26th March, 1949, traffic over the Auckland-Suva telegraph cable was interrupted. Tests showed that the cable was broken approximately twenty-five miles from Auckland. The steamer " Matai " was chartered from the Marine Department and rapidly fitted out at Auckland as a cable ship. The vessel sailed from Auckland on the 11th April, and repairs to the fault which had been caused by a fishing-trawler were completed on the 13th April. During the progress of the above repairs, a high-resistance fault developed in the Norfolk Island - Suva telegraph cable at a point close to Norfolk Island. Traffic could still be passed but it was decided to take advantage of the " Matai " being already fitted out and to proceed immediately with the removal of the fault. Repairs were completed on the 6th May, On the 26th September, 1949, the Auckland - Norfolk Island telegraph cable was damaged in the section across Auckland Harbour. The trouble arose through a barge dragging her anchors across the line of the telegraph cables. Repairs were carried out with the co-operation of the Auckland Harbour Board, using a punt. Telegraph traffic was maintained during the repair operations by temporarily diverting the circuit to a telephone cable crossing Auckland Harbour.

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During the periods that the cables were interrupted a radio-telegraph circuit was established between Wellington and London to assist with the prompt handling of the day-to-day telegraph traffic. This circuit was, however, not completely satisfactory in the outward direction because of the lack of a sufficiently high-powered transmittingstation and aerial array. RADIO-TRANSMITTING STATION FOR OVERSEAS SERVICES As indicated in last year's report, it was hoped to commence before the end of 1949 the erection near Himatangi of a high-power overseas transmitting-station. Unfortunately, the project has been delayed by building difficulties, and the necessity to revise the requirements consequent upon additional space demands. It is now estimated that it will be at least three years before the new station can be brought into service to provide the desired high-grade radio-telephone and radio-telegraph services to Australia, the United Kingdom, and the United States of America. RADIO-TELEPHONE SERVICE Increased use is being made of this service which was extended during the year to Hungary and Newfoundland, and is now available also to His Majesty's Australian and New Zealand warships when operating in the Tasman Sea or in the area between Wellington, Nelson, Picton, and Lyttelton. RADIO PHOTO-TELEGRAM SERVICE The radio photo-telegram service was extended during the year to South Africa and Southern Rhodesia. TRAFFIC HANDLED DURING EMPIRE GAMES WEEK The heavy volume of telegraph traffic for overseas countries brought about by the Empire Games was handled most expeditiously. Special teleprinter circuits from the sports venues were used for cable traffic, and a high-speed radio-telegraph circuit to supplement the cables was opened between Wellington and Sydney. Nearly 500,000 words of Empire Games press traffic were despatched over the cables, and approximately 1,500 messages were sent on the Wellington-Sydney radio-telegraph circuit. The radio photo-telegram service was extensively used, a total of 124 pictures being transmitted to Australia and 23 to the United Kingdom and South Africa. The overseas radio-telephone service to Australia and the United Kingdom was used for relaying broadcast commentaries on the progress of the Games. REDUCTION IN TELEGRAPH CHARGES On the Ist November the rates for telegrams from New Zealand to countries in Central and South America were reduced by amounts varying from 3|d. to 6d. per full rate word. NATIONALIZATION OF THE TELECOMMUNICATIONS SYSTEMS OF THE COMMONWEALTH AND EMPIRE Full control of the activities of Cable and Wireless, Ltd., in New Zealand passes to the Post Office on the Ist April, 1950, on which date the staff of the company in New Zealand transfers to the Post Office.

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MONEY-ORDER AND SAVINGS-BANK SERVICES The financial services operated by the Post Office make it not inappropriate to refer to it as " The People's Bank." The past year shows another advance in the volume of savings entrusted to the custody of the Post Office and in the use made of its money-order and postal-note services. SAYINGS IN THE CUSTODY OF THE POST OFFICE The total savings in the custody of the Post Office at the 31st March, 1950, amounted to £215,427,578, as follows : £ Post Office Savings-bank accounts (including school 171,280,680 savings-bank accounts) National savings investments .. .. .. 41,556,533 National savings bonds .. .. .. .. 2,504,261 Post Office Investment Certificates .. .. 86,104 £215,427,578 SAVINGS-BANK DEPOSITS, WITHDRAWALS AND INTEREST Excluding special war gratuity savings-bank account transactions, deposits to Post Office Savings-bank accounts during the year amounted to £77,963,430 and withdrawals to £73,306,181, an excess of normal deposits over normal withdrawals of £4,657^249. Under the War Service Gratuity Regulations 1945, war gratuity savings-bank accounts which matured on the 31st March, 1949, were deemed to be Post Office Savingsbank accounts on that date, and the total balance of the war gratuity accounts was amalgamated with the ordinary savings-bank figures as at the 31st March, 1949. The amount so transferred was £11,447,754, of which £7,654,908, at the option of the holders during the year, was left in the savings-bank and £3,792,846 withdrawn. £1,843,071 of the amount withdrawn went to national savings investment accounts. The withdrawal of the £3,792,846 from war gratuity savings-bank accounts after their amalgamation with the ordinary savings-bank figures had the effect of reducing the over-all excess of savings-bank deposits over withdrawals to £864,403. The amount at the credit of depositors at the close of the year was £170,982,452, including £3,821,285 interest accruing to depositors for the year. The average amount at credit of each depositor rose from £ll7 at the 31st March, 1949, to £125 at the 31st March, 1950. No doubt this increase was caused by the incorporation of the war gratuity savings-bank account balances with the ordinary savingsbank accounts, many of the former being fairly large. (See also Tables Nos. 8 and 9 in Appendix.) National Savings The promotion of national savings, in co-operation with the National Savings Committee, continues to be an important Post Office function. Investments in national savings accounts through the Post Office during the year amounted to £9,522,705 (including £1,843,071 transferred from matured war gratuity accounts), compared with £6,133,241 for the previous year. Id addition, £1,054,002 was invested through trustee savings-banks, compared with £898,878 the previous year.

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New accounts were opened as follows : With the Post Office— Individual accounts .. .. .. 18,873 Group accounts .. .. .. .. .. 13,187 With trustee savings-banks— Individual accounts .. .. .. .. 932 Group accounts .. .. .. .. .. 522 Total new accounts .. .. .. 33,514 New group accounts opened include accounts in 338 new savings groups established during the year. Tables showing the extent of deposits to and withdrawals from national savings accounts for the years 1949 and 1950, and the value of national savings bonds issued and redeemed, appear in the Appendix, Tables Nos. 10 and 11. Savings-bank Facilities Branches of the Post Office Savings-bank are in operation at 967 offices. Of these, 161 provide ledger facilities whereby depositors whose accounts are kept at those offices can make withdrawals on demand. The number of ledger offices has been greatly increased in recent years, and with the programme of extension now almost complete about 97 per cent, of the savings-bank's 1,372,672 depositors enjoy demand withdrawal service. A free telegraphic withdrawal service is available to the rest who can thus obtain withdrawals with a minimum of delay. Machine Accounting During the year ledger-posting machines were installed at Ashburton, Feilding, Hawera, Petone, Tauranga, and Te Awamutu. The 30 largest savings-bank offices now have mechanized ledgers. Ledger-posting machines make for greater efficiency in the working of the Savingsbank. Where they are installed, the overtime previously associated with periodical balances is virtually eliminated and there is a gain in convenience to depositors who may have interest inserted in their pass-books within a few days of the end of the year. Acknowledgment of Savings-bank Deposits No savings-bank deposits are now acknowledged by post. In recent years receipts have been issued from Wellington for all deposits of £lOO or more. Prior to 1942 all amounts of £2O and over were acknowledged in this way. The practice was discontinued altogether from the Ist August, 1949, following an amendment to the Savings-bank Regulations, 1944. Properly authenticated entries in depositors' pass-books are prima facie proof of the making of a deposit. War Gratuity Accounts Of the original 227,474 war gratuity accounts opened, to a total value of £20,356,866, 8,441 unmatured accounts, totalling £446,332, remained current on the 31st March, 1950. War Service Allotment Accounts The total number of allotment accounts opened with the Post Office Savings-bank by service men and women was 43,003. At the 31st March, 1950, 460 accounts remained current with a total credit balance of £9,242.

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Accounts with individual balances of over £lOO total 23. Most of these will be closed during the current year as they refer to deceased depositors whose estates are in the course of being wound up. The remainder, most of which have only small amounts at credit, belong to depositors whose present whereabouts, despite searching inquiries, are unknown to the Post Office. School Savings-bank The School Savings-bank scheme, operated in conjunction with the Post Office Savings-bank, has the socially important objective of encouraging the thrift habit among school children. Regularity of banking is aimed at, rather than the occasional banking of substantial sums, and it is still better if the regular deposits come from the depositors' own earnings. Upon leaving school more than half of the depositors transfer their accounts to the Post Office Savings-bank. Satisfactory progress has been made during the year. The pre-war practice of arranging visits to schools by an organizer has been revived and this has stimulated interest in school banking. The continued goodwill of the teachers has also been invaluable in furthering the objects of the scheme. There are now 1,350 schools participating in the scheme, and during the year there were 672,489 deposits of a total value of £119,586. Money-orders, Postal Notes, and British Postal Orders The number and value of money-orders issued, postal notes sold, and British postal orders sold and paid during the year are shown in the following table : Number. Value. £ Money-orders .. .. .. 952,214 10,855,648 Postal notes .. .. .. 2,460,762 1,119,667 British postal orders sold .. .. 37,857 17,904 British postal orders paid .. .. 36,875 28,272 Suspension of Overseas Money-order Services Consequent on the devaluation of sterling in relation to the dollar, money-order services with overseas administrations were temporarily suspended on the 20th September, 1949. Generally, the suspension was for a single day, but in some cases a longer interval elapsed before the new conversion rate could be ascertained and service restored. MISCELLANEOUS BUILDINGS AND LAND The Post Office has on hand a large programme of building works. The buildings required include new post-offices (at several Wairarapa towns, for example, Post Office activities have been conducted in make-shift premises since the 1942 earthquake), telephone-exchange buildings, workshops buildings, line depots, &c., many of them urgently needed to provide accommodation without which the efficiency of essential services inevitably suffers. What can be done to satisfy this need depends, of course, upon conditions in the building industry generally and the resources in money available to the Post Office for building purposes.

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During the year, despite retarded activity, some progress has been made with items on the Department's building programme, notably some large and urgently needed postoffice buildings and buildings for telephone-exchange purposes. The new post-office erected at Feilding, a particularly fine acquisition to the town, was completed during the year, the one at Balclutha has advanced to the final stages, and a commencement has been made with new post-office buildings at Hokitika and Otahuhu. Eight buildings for telephone-exchange purposes, including four of the small rural automatic type, were completed during the year and five more were under construction at the end of the year. Surplus war purposes buildings have been utilized for the temporary relief of departmental accommodation in a number of urgent cases where the erection of permanent buildings at the moment is impracticable. This applies also on a small scale to accommodation for the relief of the housing difficulties of departmental officers. Good progress was also made in providing residences for postmasters, a total of fifteen having been completed during the year. Details of the Department's building and land transactions during the year are as follows : New buildings completed : a post-office at Feilding ; automatic exchanges at Kilbirnie, Naenae, and Ravensbourne; a temporary exchange at Matamata ; rural automatic exchanges at Harihari, Orini, Te Pahu, and Waipahi; a carrier-telephone-equipment building at Cheviot; line store and garage buildings at Fairlie, Opotiki, and Te Aroha (the latter is being used temporarily to accommodate the money-order and savings-bank branch and telephone exchange); residences at Auckland (6), Forbury, Greytown, Huntly, Karamea, Opunake, Otahuhu, South Dunedin, Wanganui East, and Whangarei; staff residences at Awarua Radio (6); and garages for departmental residences at Auckland, Huntly, Kimbolton, Levin, Mamaku, Onehunga, and Whangarei. Additions and/or alterations were made to the chief post-office buildings at Palmerston North and Timaru and to the post-office buildings at Karori, Okaihau, St. Andrews, Tirau, Tokoroa, and Tuakau. In Wellington additional office accommodation was provided at the Main Store, the Customs Parcel Branch (Whitmore Street), and the Herd Street office building. Existing buildings were converted as follows : Wharepoa, post-office (for rural automatic exchange at Awhitu); Christchurch, portion of existing premises on new workshops site (for temporary electrical workshops); and Wellington, portion of a wartime store in Aotea Quay (for a temporary parcels branch). Surplus war purposes buildings were utilized to provide temporary post-offices at Greenwoods Corner, Maketu, Milford Sound, Pukeatua, Stokes Valley, and Te Anau (with quarters); a base station at Christchurch for the Y.H.F. mobile radio service; a line store and garage building at Cheviot; an arm-boring depot at Dunedin; additional workshops accommodation at Greymouth ; a post-office and quarters at Ward ; transit flats for departmental employees at Musick Radio, Auckland (four additional flats); and Wilton Road, Wellington (two flats). Land was acquired at Auckland (with buildings, for Parcels Branch, Albert Street) ; Blenheim (for residence); Brighton (for rural automatic exchange); Christchurch (for radio station); Glen Murray (for rural automatic exchange) ; Johnsonville (for extension of hostel site); Kohukohu (for post-office); Linden (for post-office); Mamaku (for extension of post-office site); Mangere East (for post-office); Morrinsville (for postoffice) ; Mt. Albert (for residence) ; Mt. Roskill (for automatic exchange); Muriwai (for cable terminal); Naenae (for automatic exchange) ; Newton (for residence); Newton (for post-office); Ngakawau (with building, for post-office); Oneroa (for post-office); Orewa (for post-office) ; Opotiki (for residence); Paihia (for post-office); Papatoetoe

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(for residence) ; Port Ahuriri (for residence); Ravensbourne (for automatic-telephone exchange) ; Remuera (for extension of automatic exchange site); Richmond (for residence) ; Rotorua (for residence); Shirley (for automatic exchange); South Hillend (for rural automatic exchange) ; Stoke (for automatic exchange) ; Te Kauwhata (for residence) ; Thornbury (for addition to post-office site) ; Wainui-o-mata (for postoffice and telephone exchange); Wanganui (for transit housing) ; and Winton (for residence.) The difficulty of obtaining suitable living-accommodation for departmental employees on transfer is still a serious problem. In order to obviate this in some degree six additional transit flats were, as already mentioned, completed during the year. This makes the total number of flats provided to date 263. In addition, Graham's Private Hotel, offered for sale in Wellington, was purchased for use as a hostel for female shift-workers. The establishment has been renamed Kensington House. Redundant properties disposed of during the year were the post-office and site at Makuri, and sites at Browns Bay, Dannevirke, Drury (2), Frasertown, Kaitieke, Newton, Northcote, Pukepoto, Roxburgh, and Waiotemarama. At the end of the year the following works were in progress : Balclutha (erection of post-office building); Bdendale (post-office addition and alterations); Ellerslie (erection of automatic-telephone-exchange building) ; Hamilton East (erection of automatic-telephone-exchange building); Hataitai (erection of post-office and automatic-telephone-exchange building); Hokitika (erection of post-office building); Methven (post-office addition) ; Nelson (erection of automatic-telephone-exchange building) ; Nelson (erection of additional garages and staff lunch-room—using surplus steel huts) ; Ohakune Junction (erection of residence); Opotiki (erection of residence); Opotiki (erection of line store and garage building) ; Otahuhu (erection of post-office building) ; Taupo (erection of carrier-telephone-equipment building); Temuka (erection of residence); Timaru (conversion of premises purchased for line store and garage and workshops purposes); Upper Hutt (erection of automatic-telephone-exchange building) ; Waiau (erection of line store and garage); Wellington (alterations to central exchange building); Wellington (alterations to Berkeley House Hostel); Whakatane (erection of four transit flats—using a surplus defence building); and Whangarei (alterations to Telegraph Engineer's Office). STORES The value of stores and equipment ordered during the year was as follows, the figures for the previous year being given for comparative purposes 1948-49. 1949-50. For Post and Telegraph Department— £ £ From suppliers in New Zealand .. .. 1,322,870 1,034,850 Ordered for supply from overseas .. .. 4,106,358 2,956,453 For other Departments— From suppliers in New Zealand .. .. 627,476 619,187 Ordered for supply from overseas .. .. 62,204 93,360 £6,118,908 £4,703,850 The above amounts represent actual or estimated costs, including freight, Customsduty, and sales tax, where applicable.

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The value of the stocks, including stores on-cost, held in the Auckland, Christchurch, Dunedin, and Wellington storekeeping districts at the end of the year, as compared with that of the stocks held twelve months earlier, is shown hereunder. The increase is, in part, a reflection of the rising trend in market prices and costs, and the greatly improved deliveries from British manufacturers which have been experienced during the year. 31st March, 31st March, 1949. 1950. District. £ £ Auckland .. .. .. •• 828,426 1,289,348 Christchurch .. .. • • 398,600 524,143 Dunedin 240,273 301,680 Wellington.. .. .. •• 2,310,360 2,855,212 £3,777,659 £4,970,383 DEPARTMENTAL MOTOR-VEHICLES The Post Office motor-vehicle fleet totals 1,583 units—l,oB3 trucks, vans, and miscellaneous, and 500 cars. The total mileage travelled last year was 12,678,127. Cars averaged 11,159 miles each, and trucks and vans 6,555 miles each, for the year. This fleet is not adequate to meet all requirements. A number of new vehicles were placed in service during the year, and a number of others were disposed of, having reached the end of their useful life. Because of the shortage many vehicles ready for replacement remain in service. Post Office engineering works employ 957 vehicles, the remaining 626 being used on mail conveyance and other Post Office work and on hire to other Government Departments. Further additions to both groups are needed for full efficiency. Because of the shortage, a good deal of hiring from sources outside the Department was necessary during the year, particularly at the four main centres. WORKSHOPS Post Office workshops at the four main centres serve the general purposes of the Department, a good proportion of the work done consisting of maintenance and repairs to motor-vehicles of the Post Office and other Departments. Workshops at other centres are employed predominantly on motor-vehicle work. As circumstances permit, work of various classes, particularly motor-vehicle repair work, is undertaken for other Departments. During the year workshops activities continued at high tempo. The total value of work performed amounted to £666,479, of which £146,175 represents the value of services performed for other Departments. REGISTRATION OF MOTOR-VEHICLES AND ASSOCIATED WORK At the 31st March, 1950, there were 411,632 licensed motor-vehicles in New Zealand. New registrations during the year totalled 38,337. The amount collected in motor-registration fees was £745,031. The premiums collected on behalf of the thirty-seven insurance companies authorized to underwrite business in terms of Part V of the Transport Act, 1949, totalled £608,544. Mileage-tax amounting to £50,662 was collected in respect of 657 vehicles.

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APPENDIX FINANCIAL Table No. I—Statement of Receipts and Payments (Post Office Account) for the Year Ended 31st March, 1950 Receipts Payments £ £ £ Postages 3,022,819 Salaries 4,371 042 Money-order and postal-note com- Conveyance of mails—minion •• •• •• 67,244 OverseasPrivate box and bag rents and rural Air .. 194 398 delivery fees .. .. .. 94,064 Surface " 173'235 £ e fS rams 673,870 367,633 Tolls .. .. .. .. 1,990,131 Inland—-lelephone-exchange rentals .. 2,399,479 Air .. .. 44 602 Miscellaneous receipts .. .. 1,400,343 Ship .. " 82'523 Excess of payments over receipts* .. 843,901 Rail .. .. 213 [ 780 Road .. .. 277^230 618,115 Maintenance and renewal of telecommunication system .. .. 917,998 Motor services and workshops .. .. 520,911 Post-office buildings .. 375,005 Miscellaneous .. 2,411,564 Interest on capital liability .. .. 704,000 Sick Benefit Fund .. 12,978 Government Superannuation Fund subsidy 192,605 5,135,061 £10,491,851 £10,491,851 ~ * Tbe excess payments include payments made for certain capital items and for renewals. After allowing for opSationswiHbf S^^&tta^ 68 ° f th ® yeM adjustments ' 14 ls P robable that the loss on the year's Table No. 2—Statement of Payments on Account of Telegraph Extension for the Year Ended 31st March, 1950 £ Materials .. .. .. 2,480,930 Freight .. .. .. 178,199 Travelling .. .. .. 2,593 Camp allowances .. .. 7,267 Labour .. .. .. 751,513 £3,420,502

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POSTAL SERVICES Table No. 3 —Postings

TELEGRAPH SERVICES Table No. 4— Telegrams and Cablegrams

Table No. 5—Radio Telegrams

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Year Ended 31st March, Number posted. Letters, Letter-cards, Post-cards. Accounts, Packets, Newspapers. Parcels. Total Articles posted. 1949 1950 162,131,000 169,798,000 148,959,000 165,041,000 8,139,000 8,185,000 319,229,000 343,024,000

Year Ended 31st March, Inland Telegrams. Cablegrams. Ordinary. Press. Forwarded. Received. Number. Revenue. Number. Revenue. Number. Revenue (New Zealand Portion). Number. Revenue j(New Zealand Portion). 1949.. 1950.. 6,741,087 6,924,102 £ 472,490 482,745 497,262 485,343 £ 98,119 102,048 411,856 490,658 £ 27,324 29,782 1 386,675 451,586 £ | 25,256 | 26,590

Year Ended 31st March, Forwarded. Received. Number. Revenue (New Zealand Portion). Number. Revenue (New Zealand Portion). 1949 1950 25,644 28,896 £ 7,106 7,643 61,634 73,366 £ 14,309 16,416

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TELEPHONE SERVICES Table No. 6—Number of Telephones, and Revenue

Table No. 7 —Toll Calls

SAVINGS-BANK SERVICES Table No. 8—Deposits and Withdrawals

Table No. 9 —Accounts Opened and Closed, etc.

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Year Ended 31st March, Subscribers' Main Stations (a). Service Main Stations (6). Extension Stations, all Classes (c). Public Call Offices (d). Revenue from («), (o), and (d). PrivatelyOwned Phones connected with Public Telephoneoffices. Toll Stations. Total Telephonestations. Telephones per 1,000 of Population. 1949 1950 234,874 253,458 3,418 3,576 76,832 83,804 1,640* 1,802f £ 2,270,213 2,399,479 4,166 4,115 1,827 1,784 322,757 348,539 172-8 182 * Includes 46 multi-coin telephones for effecting local and toll calls, f Includes 76 multi-coin telephones for effecting local and toll calls.

Year Ended 31st March, Inland Toll Service. Radio-telephone Service. Number of Calls. Revenue from Paid Tolls. Forwarded. Received. Number of Calls. Revenue (New Zealand Portion). Number of Calls. Revenue (New Zealand Portion). 1949 1950 f 25,279,330* 27,054,336f £ 1,854,111 1,990,131 5,086 5,793 £ 4,795 I 4,400 5,290 6,330 £ 3,983 4,245 * Includes 5,086 forwarded overseas calls, t Includes 5,793 forwarded overseas calls.

Year Ended 31st March, Number of Deposits. Total Amount of Deposits. Average Amount of Each Deposit. Number of Withdrawals. Total Amount of Withdrawals. Average Amount of each Withdrawal. Excess of Deposits over Withdrawals. Interest Credited. 1949.. 1950.. 3,310,543 3,751,232 £ 70,690,640 77,963,430 £ 21 21 2,392,027 2,550,983 £ 67,722,724 73,306,181 £ 28 29 £ 2,967,916 4,657,249* £ 3,438,790 3,821,285 * War gratuity savings-bank account transactions have been excluded to show the normal position. The inclusion •of these would have shown the excess of deposits over withdrawals as £864,403 (see page 23).

Year Ended 31st March, Number of Accounts Opened. Number of Accounts Closed. Number of Open Accounts as at 31st March. Total Amount of all Accounts, Inclusive of Interest, as at 31st March. Average Amount of Each Account as at 31st March. Number of Branches of the Post Office Savings-bank Open at the Close of the Year. 1949 1950 149,789 161,663 115,762 211,569 1,422,578* 1,372,672 £ 166,296,764t 170,982,452 £ 117 125 957 967 * Includes J 11,286 war gratuity savings-bank accounts transferred on 31st March, 1949. t Includes £11,447,754 war gratuity deposits transferred to savings-bank on 31st March, 1949.

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NATIONAL SAVINGS Table No. 10—Deposits, etc., Years Ended 31st March, 1949 and 1950

NATIONAL SAVINGS BONDS Table No. 11—Bonds Sold and Redeemed, Years Ended 31st March, 1949 and 1950

Approximate Cost of Paper.—Preparation, not given; printing (1,724 copies), £ll5.

By Authority: R. E'. Owen, Government Printer, Wellington. —1950.

Price 9d. J

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Post Office. Trustee Savings-banks. Total Amount Year Ended 31st March, Deposits. Withdrawals. Interest to 30th June, Previous Year. Amount at Credit of Depositors. Deposits. Withdrawals. Interest to 30th June, Previous Year. Amount at Credit of Depositors. at Credit of Post Office and Trustee Savings-banks. 1949 1950 £ 6,133,241 9,522,705* £ 3,289,640 3,681,038 £ 890,610 1,018,303 £ 34,696,563 41,556,533 £ 898,878 1,054,002 £ 653,439 600,550 £ 147,311 160,507 £ 5,500,655 6,114,614 £ 40,197,218 47,671,147 * Includes £1,843,071 war gratuity transfers from Post Office Savings-bank.

Year Ended 31st March, Value of Bouds Sold.* Value of Bonds Redeemed. 1949 1950 £ 434,687 457,767 £ 3,169,870 2,420,800 » Redeemable five years from date of issue.