F.—No. 5.

may be made sufficiently stringent to accomplish its purpose, and yet to leave that degree of elasticity and freedom of action which is indispensable in administering the finance of any country, and more especially of a new one, that every Appropriation Act should give some power to issue Treasury Bills. With some such provisions for their being made and issued as are now proposed, the check of the Comptroller would remain as perfect as the present Act seeks to make it, in respect to actual revenue and loans authorized by la\j\

Bi/ Mr. llmir/hton~\ "Will you explain the Reserve Fund Account (73 B. No. 2,) and state how the balance of £48,325 Is. 7d., appears to stand to the credit of that fund ? Mr. Woodward.] I lav upon the table, in answer to thai question, a copy of a Memorandum that I have already prepared for the information of the Colonial Treasurer. Mr. "Woodward then read the document (which is marked A. and annexed) and was thanked by the committee for his attendance and for the information afforded. The committee resumed their inquiry into the items of unauthorized expenditure-, in accordance with their resolution passed at their meeting held 19th. July. Secretary for Crown Lands Department. Mr. Masters attended and explained thnt the item of £101 7s. 7d. of unauthorized expenditure had arisen out of the employment of an assistant draughtsman to prepare Crown Grants issued under the Native Lands Act. Colonial Treasurers Department. Mr. Batkin attended and explained that the item of £201 19s. of unauthorized expenditure had arisen out of the employment of an additional clerk, in consequence of the transfer of the payment of the Colonial Forces from the Paymaster's Department to the Colonial Treasury, and of other additional work in connection with the war being thrown on the office. The committee then adjourned to Friday, 3rd August, at 1030 a.m.

DFTHE rESERVER FUND IS KJ

£ s. d. £ b. d. Or. July,lst. Contribution to Main Lino 17,050 P 0 Dr. „ Amount paid 17,050 0 0 Cr. „ Native Purposes $6,424 1 3 „ Arrears received ... ... ... ... 630 6 7 27,054 7 10 Dr. „ Amounts paid 10,675 12 11 1C,37S 1! 11 Cr. „ Native Schools Act 4,551 0 4 Dr. „ Amounts paid 912 7 11 3,G38 12 5 Cr. „ Manual New Zealand Botany 300 0.0. Amount received ... ... ... ... 110 0 ■ 301 10 0 £20.318 17 4

8

REPORT OP THE SELECT COMMITTEE