I).—No. 7a.

We suggest that the office of the Postmaster-General, the Wellington Post Office, and the Telegraph Office, should be placed under one roof, so that on occasions of pressure in any of these offices, the staff of the others could afford assistance. If this were accomplished, the offices of Secretary and Chief Postmaster at the seat of Government might be combined. The constant inspection we have already proposed will materially reduce the business of the Head Office. The printing of stamps we recommend should be transferred to the Government Printer. The machine used should have an effective " tell tale" attached to it, and no stamps be printed except under the check of the " tell tale." The paper as imported from England should be counted and given in charge to the Colonial Treasurer by a Board of Survey. The Government Printer should make requisitions for the paper as he requires it, and account in stamps to the Colonial Treasurer ; thus treating the paper as money. The Colonial Treasurer should issue the stamps to the Postmasters, and account for them to the Auditor as hitherto. The copper-plates should be in custody of the Postmaster-General, and, issued to the Printer, when they should be locked into the presses so that they could only be used under the check of the " tell tale." Damaged sheets of stamp paper should be surveyed and destroyed by a Board of Survey. Copies of the Reports of such Boards, and of Boards on paper received, should be sent in every case to the Auditor of Public Accounts. AYe think that the examination of Dead Letters should be by at least two persons, both always present; the Examiner of Dead Letters, and a junior officer; the latter to be changed as frequently as possible. The custody and distribution of the paper, stationery, small stores, and Money Order Books, should be transferred to the Storekeeper already recommended to be attached to the Printing Office. We suggest that where there is not sufficient competition to reduce the cost for the carriage of Inland Mails to a reasonable sum, the Government should temporarily carry such mails by such means, horse or vehicle, as may be necessary. In illustration of this we refer to the following lines, some of the particulars of which may bo found in the Table of Revenue and Expenditure attached to the Honourable the Postmaster-General's Report for the year 1865:— Wellington to Wanganui, cost in 1865, £349, is now carried at the greatly increased cost of £1387 per annum. Christchurch to AVaitaki, and Christchurch to Hokitika, cost respectively £3500 and £4450 for 1866, whilst the revenues were, for 1865, £99S 2s. and £278 respectively (the latter, for six months only). These mails are not of such bulk as to necessitate the employment of a coach. The very short service of eight miles between Christchurch and Lyttelton costs £1200 per annum, being made up by these sums:—Ordinary Mails twice daily, £600; Seaborne Mails, £300; Express Mails, £300. We think these services should be included under one contract, which need not cost half the sum now paid. The cost of the following lines is disproportioned to the revenue returned. Northern Dunedin and Waitaki, £I,66o—revenue, £098 13s. 2d. for 1865. AVaitaki, Oamaru, to Malvern Hills, £450 for one service per week on horseback, yielding a revenue for 1805 of £19 os. lid. AVaikouaiti to Clyde, ' £1,950; Clyde to Queenstown, £400; revenue, including both lines, for 1805, £831 7s. 4d. Tokomairiro to Tuapeka, £600; Tuapeka to Clyde, £365 ; revenue for both lines for 1865, £581 Is. 4d. All these services are of course necessary, but we think that the cost is excessive in proportion to the service, and so great as to justify the Government in carrying, by its own servants, such mails as local competition by public tender does not provide transport for at reasonable rates, until the terms of the Government are met. Telegraphic communication not having as yet been extended to Wellington, the business has hitherto been done by the Head of that Department at Christchurch, and the work falling upon the Ministerial Office has been light. The business occasioned to this office by the Marine Board is almost nominal. Wellington. The Staff consists of— A Chief Postmaster, £500. A Chief Clerk, £240; and three clerks, £200, £120, and £120. Two Letter Carriers, £110 and £100. Messenger, £100. The Chief Postmaster has the superintendence of all the Branch and country Post Offices throughout the Province of Wellington. Stores are obtained from the Secretary, and distributed to the Post Offices throughout tho Province, and the payment for stamps collected and paid into the revenue. Small cash collections are also made on unpaid letters and for private boxes. The Chief Postmaster gives security by bond for £750, and all clerks paid over £150 per annum, and all Money Order Clerks give security. The amount of security required should be proportioned to the amount of money passing through each officer's hands. Money Order Collections are paid into the Treasury. The times for paying into Bank and the Treasury have lately been regulated since our examination of this office. The Chief Postmaster keeps for daily use in payment of Money Orders about £40 out of receipts. He keeps a Cash Book, and makes out Monthly Account Current for Treasury. He holds an advance of £40 for gratuities to vessels carrying mails, which is vouched for by receipts of Captains or Pursers, checked against number of letters despatched. Keeps Public Bank Account upon which he can draw by his own signature. Conducts and writes correspondence. Chief Clerk, £240. Assists generally. In charge of Money Orders, Accounts, and Returns. A clerk, £200. Assists generally. A clerk, £120. Keeps record of Registered Letters, and despatches them; assists generally. A clerk, £120. Assists generally.

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REPORT OP THE CIVIL