B.r—Nft. .£.

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

Circular, K;>. ■'■».

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