B.—No. 18.

No. 1. Mr. J. E. FitzGeeald to the Hon. the Colonial Teeasueee. Sic,— Controller's Office, 25th August, 1867. Pursuing the subject of my letters of the 17th and 23rd instant, I have now the honor to explain how the balances in the Public Account will stand upon the adjustment I propose to carry out. Those balances were, on the 30th June —■ £ s. d. Consolidated Fund ... ... ... ... ... 113,109 9 8 Special Fund ... ... ... ... ... Dr. 49,046 12 0 Land Fund ... ... ... ... ... Dr. 2,745 6 8 Public Trust Fund ... ... ... ... ... 62,502 7 7 After the adjustment they will stand as follows : — In the Colony. In England. £ s. d. £ s. d. Consolidated Fund ... ... ... Dr. 32,296 16 4 Special Fund ... ... ... 160,059 19 0 112,483 13 9 Land Fund ... ... ... Dr. 2,745 6 8 Trust Fund „. ... ...Dr. 1,197 17 5 50,118 2 0 And, taking into account the operations on the Public Account which have taken place since the 30th June, the balances will stand as follows in the Colony : — £ s. d. Consolidated Fund ... ... ... ... ...Dr. 99,800 10 4 Special Fund ... ... ... ... ... Or. 161,732 1 8 Land Fund ... ... ... ... ...Dr. 677 2 10 Trust Fund ... ... ... ... ... Cr. 1,932 19 6 It will, perhaps, be convenient that I should once more state, what has frequently been stated in my communications with the Treasury, the view taken by the Controller of the differences between the balances in the accounts of this Office and of the Treasury. When the four funds were divided the balance in the Chest was divided, and all moneys were subsequently paid into the four accounts. I need not enter upon the question, upon what principle such division was made. The Controller deals only with the money as it is placed in his custody. The Controller's balances are therefore those resulting from the actual payments into and issues out of the Public Account. But if the Treasury were to make a statement showing that the payments made in 1867-8 were erroneous, and will show what moneys ought to have been placed to the credit of each fund, I have always held that it would be the duty of the Controller to make an adjustment to rectify transactions which were made upon insufficient information. But such a statement must of course refer only to the balances in the Wellington Bank, because, for the purpose of issue, that only is money in the Public Account-—that is to say, money upon which the Government can draw. It seems to me that some one period should be taken, and that the Ist July, 1868, would be the best for this purpose. At that date the balances were as follows: — Treasury. Controller. £ s. d. £ s. d. Consolidated Fund ... ... ... 46,979 15 11 35,145 8 0 Special Fund ... ... ... 7,183 14 11 25,043 6 0 Land Fund ... ... ... 36,856 13 2 12,446 19 6 Trust Fund ... ... ... 36,782 3 6 1,045 2 8 127,802 7 6 73,680 16 2 The sum of £54,121 lis. 4d., by which these balances differ, was money in transitu in the Colony, and perhaps some small sums in suspense. But it is the total of £73,680 16s. 2d. which requires to be redivided, so as to make the balances in the Control and the Treasury agree. It is obvious that this is a transaction which must never be repeated; and I have always represented that I could not make the alteration unless upon a statement of account showing that the adjustment would be final. These balances being once adjusted, would always coincide in future at the end of the year, by the refund of the Paymaster's unexpended balances to the proper account. I would therefore respectfully urge upon the Treasury the desirability of making this adjustment of the balances on the 30th June, 1868, with as little delay as possible. I have, &c, The Hon. the Colonial Treasurer. James Edwaed FitzGeeald.

CORRESPONDENCE RELATIVE TO BALANCES AT THE CREDIT OE THE PUBLIC ACCOUNT.