F.—No. 9,

the revenue, and that the addition of a penny on Inter-provincial letters will not act prejudicially. The Committee are also satisfied that a careful examination into the various Post Offices, especially those at a distance from the Seat of Government, would lead to changes which would promote both the efficiency and economy of the Service. They recommend that such should be made at an early date. The Committee are of opinion that the sale of Postage Stamps by licensed vendors is of great convenience to the public, and that such conveniences is cheaply purchased by a commission of 2^ per cent, on the amount of such sale, which they accordingly recommend should be allowed; and they further suggest that in all cases Postmasters should have authority to sell stamps, and be allowed an open account for the same with the Postmaster-General under due securities. The proposed contract between the Panama, New Zealand, and Austrab'an Eoyal Mail Company, and the Postmaster-General, subsequently referred to the Committee, has been examined by them, and they have no alteration or addition to suggest, with one exception : They think, in reference to clause eight of the contract, that it should be made clear that the Postmaster-General should have the power of altering the port of arrival or departure in New Zealand, in the event of experience showing that such alterations would be of advantage to the Colony at large. The question of the detention of the mail steamers at Lyttclton for at least twenty-four hours after arrival, is one so completely dependent upon the adjustment of the entire Inter-provincial Service that the Committee rest satisfied with calh'ng the attention of the Government to it, and urging the propriety of its being carried into effect, if found practicable. W. Waring Taylok, Chairman.

4

REPORT OF SELECT COMMITTEE ON POSTAL SERVICE.