8.—3

1873. NEW ZEALAND.

THE BANKING ACCOUNT. (CORRESPONDENCE BETWEEN THE GOVERNMENT AND THE BANK OF NEW ZEALAND.)

Return to an Order of the Souse of Representatives, dated 22nd July, 1873. "That there be laid upon the Table, Copy of all Correspondence that has taken place during the recess, between the Government and the Bank of New Zealand, on the subject of the Banking Account."— {Mr. Swanson.) No. 1. Memobandijm No. 7, by Mr. Batkin. Treasury, Wellington, 15th January, 1873. The attention of the Manager of the Bank of New Zealand is called to the delay which takes place in the transfers of balances from the local branches of the Public Account to the Public Account at Wellington. The subjoined statement of the sums credited to the Public Account on the 11th instant, showa likewise the date at which the relative returns of the several branches were received in the Treasury; and assuming that the transfer advices reached the Bank at the same time (as, unless through the negligence of the Bank officers they should have done), it will be observed that the sums transferred have not been credited to the Public Account until, in the majority of cases, three days, in many four, in some five, and in one case, twelve days after the receipt of the advice; while, out of the whole number of sums transferred on the 11th (forty-six in all), only four are credited on the same, or, in other words, on the proper date. I may point out that in the majority of cases the sums are for lodgments made at the local branches up to the 28th December, and had the several transfers been credited at the proper date, the Bank would have had the advantage of some ten days' interest, represented by the course of post. On sums so considerable as those which are constantly in transitu, this course of post occasions a sufficient loss of interest to the Colony, while a corresponding advantage accrues to the Bank. These circumstances are, however, the result of specific arrangement; and so long as that arrangement is adhered to, its result affords no cause of complaint. But in the instance under notice, it is evident that the ordinary loss of interest has been aggravated by a want of punctuality on the part of the Bank, and I have called your attention to the point, not only on that ground, but because it imposes great labour on this department to reconcile the discrepancies, arising from this cause, between the revenue accounts as prepared in this office from the local returns, with the cash receipts as credited by the Bank at Wellington. C. T. Batkin, The Manager, Bank of New Zealand, Wellington. Secretary to Treasury. #

No. 2. Memobandtjm by Mr. Bbidges. Bank of New Zealand, "Wellington, 16th January, 1873. The Manager of the Bank of New Zealand, in reply to Mr. Batkin's Memorandum of yesterday's date No. 7, begs to say that a departure in the way indicated in the Memorandum from the practice hitherto adopted, of passing the entries in question once a week instead of from day to day, as advice is received, and which is now for the first time objected to by the Treasury, will so seriously inconvenience the Bank that he cannot accede to it without the sanction of the Inspector of the Bank, to whom copies of the correspondence will be sent should Mr. Batkin persist in his request. J. Beidges, Manager. The Secretary to the Treasury.

No. 3. Mr. Batkin to Mr. Woodwabd. Mb. "Woodwaed, — 21st January, 1873. Will you be good enough to state whether the habit into which the Bank appears recently to have fallen, of crediting the transfers from local branches weekly instead of daily, has ever been sanctioned by the Treasury. C. T. Batkin. I—B. 3.