I.—2b,

30

Mr. Batkin.

The Wellington branch of the Bank receives, by registered letters, all remittances made by Receivers at places where there is no branch of the Bank, and furnishes two receipts for each such remittance, one being sent to the Receiver-General, and the duplicate to the remitting officer. There are about sixty officers so placed. The Wellington office supplies daily, pass-books of the Public Account and the Receiver-General's Deposit Account, made up to the close of the previous day; and it also sends in, weekly, a detailed statement of the lodgments made by the local Receivers, and of all remittances received by post. It also receives and forwards to the Treasury all orders on the Public Account from officers authorized to retain fees in lieu of salary. It supplies to the Commissioners of Audit, every Monday morning, a balanced statement of the receipts into, and withdrawals from, the Public Account during the previous week; and it supplies, half-yearly, a detailed statement of the daily balances at credit of the Public Account and of the Receiver-General's Deposit Account. The Bank issues all drafts on Government account, for remittances within the colony, free of charge. These drafts represent remittances to and from the Receiver-General's Deposit Account, the Postmaster-General's and Chief Postmasters' Accounts, &c.; and of late years these remittances have largely increased in number. In the disbursement of the Public Funds, the Bank receives daily from the Treasury one, and sometimes two or three, schedules of sums for which the Bank is required to provide coin at its several branches for cheques drawn thereon, as set forth in a sub-schedule for each bank, giving the number and amount of each cheque, and the name and office of the person on whose countersignature it is payable. Each of these cheques is practically a draft, requiring that the Bank should see before paying it, that the number, amount, and countersignature correspond with the advice received from the Wellington office. The number of cheques drawn in this manner on the Public Account is from 55,000 to 60,000 per annum. During the month of September last, the number drawn was 5,257. At the close of business on Saturday, each branch of the Bank forwards to the Paymaster-General a statement of the cheques paid by it during the week, and of the balance in its hands to cover cheques outstanding. Remittances by telegraph are made by the Bank, whenever required, at a charge of one shilling per cent.; and it also, when required, makes payment of sums so remitted, taking receipts from the payee in the form prescribed in each case, and forwarding the receipts for such payments to the Treasury. The Bank pays all dividends on Government securities, payable at its branches in the colony, free of charge. The Bank is required to keep an account in its books with all persons receiving imprest advances; receiving sums lodged to credit, and paying cheques drawn thereon, by the imprestees. The number of imprest accounts opened by the Bank each year would probably be 300. I feel bound to state that, in its conduct of the Government business, the Bank of New Zealand fulfils the duties it has undertaken with the most satisfactory promptitude and regularity, and that, in all its intercourse with the Treasury, it has of late years manifested the strongest desire to assist the department by every means in its power. I have perused the minutes of evidence placed in my hands by the Committee, but I see no points therein which call for remark except those which are hereunder referred to : — I observe that Mr. Bridges, in his evidence (page 6), appears to state, in answer to the question No. 121, —"At present, in London, the ordinary banking rate for the sale of drafts on the colony— which amounts to the same thing —is sixty days' sight, at par, and on demand, li per cent, premium. The money would be paid here on demand at par; and if at sixty days' sight, the Government would obtain 11 per cent, premium. Of course they would lose the interest for the time, but that would not be an equivalent. The 2f per cent, interest is not so good as the the lij per cent, premium for sixty days." There appears to be some error here. What is, I suppose, intended to be said is, that at present the banks in London are selling demand drafts on New Zealand at 1-J- discount, and sixty-days' drafts at par. Mr. Bridges states that the selling price in New Zealand of drafts on London, and the selling price in London of drafts on New Zealand, amounts to the same thing. Assuming this to be the case, the mode of remittance suggested by Mr. Bridges, as compared with the mode now adopted, and the terms recently acted on, will result as follows: —- A remittance of £100 to New Zealand on the terms stated by Mr. Bridges would cost— Discount at 1-j per cent, on demand draft ... ... ... £1 10 0 Interest on £100 for 2 months at, say, 3 per cent. ... ... 0 10 0 Total loss ... £2 0 0 A draft of £100 on London on the terms obtained by the Government gives— Interest received in colony on proceeds of draft for £100, at 3 per cent, for 4 months ... ... ... ... ... £1 0 0 Interest on £100 at credit in London till maturity of draft, say 3 per cent, for 4 months ... ... ... ... ... 10 0 £2 0 0 Less i per cent, discount on draft ... ... ... ... 026 Total profit ... ... ... ... ... £1 17 6 Thus it will be seen that, under the plan suggested by Mr. Bridges, the Government would lose 2 per cent., instead of gaining, as it now does, If. In other words, the existing arrangements with the Bank of New Zealand is 3f per cent, on the transaction better than that suggested by Mr. Bridges-

4th Oct., 1875,