B—3

No. 4. Mr. Woodwaed to Mr. Batkin. Me. Batkin, 21st January, 1873. So far from acquiescing or even knowing of such an arrangement as that referred to herein, it occurred only recently that I called the attention of Mr. Bridges to the fact that returns arriving on Saturday were sometimes not credited till Monday, when he at once admitted it was an irregularity, and it did not occur again. If the credit has' only been given weekly, it has escaped notice through amounts lodged by local receivers having appeared in the pass book after the entries of transfers from other branches. J. WOODWABD.

No. 5. Mr. Batkin to the Hon. the Colonial Teeasueeb. Treasury, 21st January, 1873. I submit that the bank should be required forthwith to credit to the Public Account all sums transferred to that account from the local branches. I am quite unable to see the necessity for the sanction of the Inspector being obtained by the Local Manager before fulfilling an obligation so obvious. C. T. Batkin. The Hon. Colonial Treasurer.

No. 6. The Hon. Mr. Watekhouse to the Manager, Bank of New Zealand. Sib, — Treasury, Wellington, 23rd January, 1873. My attention has been directed to a Memorandum from yourself to the Secretary of the Treasury, dated 16th inst., in which you state that the passing to the credit of the Government of remittances as daily received will so inconvenience the Bank that, without the sanction of the Inspector, you cannot accede to the requirement of the Treasury. On inquiry, I find that the existing practice is a recent departure from the mode in which the Government account was originally and for many years kept; that it is not contemplated by the agreement which regulates the keeping of the account; and that it has never been sanctioned by the Government. I need scarcely add that it is in direct opposition to the mode in which the accounts of private individuals are kept at the Banks, and that it acts adversely to the Government. I feel it, therefore, my duty to inform you that the Government will be forced to regard your failing to comply with the requirement of the Treasury, as a breach Jof that agreement under which its banking account is kept with your Bank. I have, &c, G. M. Wateehouse, The Manager, Bank of New Zealand, Wellington. (in the absence of Mr. Vogel).

No. 7. Mr. S. S. Eevans to the Hon. the Colonial Teeasubee. Sib,— Bank of New Zealand, Wellington, 24th January, 1873. I have the honor to acknowledge the receipt of your letter No. 103, dated 23rd instant, on the subject of passing remittances to the credit of the Public Account, and in reply, to inform you that the Bank will, for the future, carry out the wishes of the Government, and pass the amounts to credit as the advices are received. I have, &c, Samuel S. Eevans, The Hon. the Colonial Treasurer. Acting Manager.

No. 8. The Hon. Mr. "Watekhouse to the Manages, Bank of New Zealand. Sib,— Treasury, "Wellington, 10th February, 1873. I have the honor to call your attention to the manner in which the banking account of the Government is being conducted, in the hope that my representations may lead to a removal of existing causes of complaint. I will briefly refer to the various matters that, in the course of the few days during which I have had the conduct of the Treasury, have come under my notice, — 1. Without drawing the attention of the Government to the change, an alteration was made in the mode of crediting the Government with the moneys received on its behalf, of a most exceptional and objectionable character, whereby the Government was liable to be deprived of interest to which it would otherwise be entitled.

2