B.—No. 4.

Notes on these Returns. The following memorandum, which was affixed to the Returns for 1869, is reprinted with a slight alteration, as being equally applicable to the Returns annexed: — These Returns have been prepared from the Reports of the Provincial Auditors, so far as relates to the money that jiasses through the Provincial Accounts. The amounts of interest and sinking fund paid by the General Government, and deducted from payments to Provinces, in terms of the 44th section of " The Public Revenues Act, 18G7," have been added to both sides of the Account, and also any sums that may have been charged to the " Separate Account" of the Provinces, and afterwards transferred to the Consolidated Fund Account. The Returns therefore show (as far as practicable) all the revenue that has been received by or credited to each Province, and all charges made upon that revenue. The expenditure of the Provinces of Wellington and Hawke's Bay is not correct as between those Provinces, their respective portions of the permanent debts of the original Province not having been fixed in time for the adjustment to be made in 1870. An adjustment will also have to be made between the Provinces of Nelson and Marlborough, as their respective proportions of the interest and sinking fund on the Loan of 1856 cannot be ascertained until after the close of the financial year of the Colony. Additional Notes. Wellington.—Tho Provincial Auditor's Report shows that there was due by this Province for current expenditure, at the close of the year 1870, a sum of £4,577 15s. 4d. This is in addition to the Bank overdraft, the advances made by the General Government, and the sum of £11,832 4s. Bd. held by the Province as deposits. Nelson.—ln addition to the sum charged as Gold Fields Expenditure (which includes the cost of Warden's Courts, Police, and Gaols), there is a sum of £3,071 13s. 6d. included under the head " Hospitals," which was expended in Hospitals on Gold Fields. Otago.—The receipts and expenditure of this Province include those of the former Province of Southland from the 6th of October. Southland.—The account of this Province only includes the period from the Ist of January to the sth of October inclusive. At that date the Province owred to various creditors (including the General Government and the Bank of New Zealand) the sum of £50,803 17s. 6d. J. Woodwaed, Treasury, 12th June, 1871. Assistant Treasurer.

NOTES IN EXPLANATION OF THE ANNEXED RETURNS.