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always made the most liberal allowance for the difficulties and delays incidental to bad roads and flooded rivers ; but it has become apparent that many of the delays are attributable to other causes, over which contractors or their servants have control. The department has determined to insist upon contractors observing schedule time ; and failing this, the penalty clauses will be enforced in every case of needless delay. The Government have decided that contracts for inland mail services shall for the future extend over two years, instead of one, as is the general rule at present. By accepting tenders for two years the department will be relieved of a considerable amount of labour, while it is considered the change will tend to encourage greater competition than there has been hitherto. Depabtmental. 41 additional Post Offices were opened, 6 re-opened, and 15 closed during the year. The number of Post Offices open on the 31st December, 1875, was 647; and the total number of officers employed, 783. The following Eeturn of Officers of the Postal Department for the Tears 1874 and 1875 shows to what extent the staff was increased during the year: — Officers. 1875. 1874. | Officers. 1875. 1874. Postmaster-General ... ... 1 1 Postmasters ... ... ... 13 13 Secretary ... ... ... 1 1 Clerks ... ... ... 82 70 Inspector of Post Offices... ... 1 1 Sub-Postmasters ... ... 620 598 Accountant, Money Order, and Say- Letter Carriers... ... ... 33 29 ings Bank Department ... 1 1 Messengers ... ... ... 6 6 Clerks in General Post Office ... 4 4 Mail-cart Drivers ... ... 2 1 Clerks in Money Order and Savings Shipping Officers ... ... 1 1 Bank Department ... ... 4 4 Chief and Head Postmasters ... 14 14 , Totals ... ... 783 744

The following schedule shows the number of Post Offices open on the 31st December last, compared with the number open in 1874: —

A new office has been opened at Mosgiel, and placed in charge of a permanent officer. Seven additional pillar and receiving boxes have been established, and two closed. An additional letter carrier has been appointed to Auckland, enabling the deliveries to be extended. It is also proposed to extend the deliveries in Napier, Christchurch, and Invercargill, and to appoint an additional letter carrier to each office. The postage on book packets and patterns posted for delivery within the colony has been reduced. The postage now is Id. not exceeding 2 ounces, 2d. for four ounces, and 2d. for every additional 4 ounces. The postage on letters for the United Kingdom, for transmission via Brindisi, has been reduced from 9d. to Sd. per half-ounce, and on newspapers from 3d. to 2d. per 4 ounces. This reduction applies generally to letters and newspapers for other places when sent in mails via Brindisi. The letter postage for India has been reduced from Is. to 6d. per half-ounce. Letters for the South Sea Islands are now forwarded at a postage rate of 2d. per half-ounce. The business of the Insurance Department at Dunedin, formerly conducted at the Chief Post Office, was separated from that of the Post Office on the 2nd January. It is the intention to make similar changes throughout the colony at the larger offices. Kegistebed Letters. 48,130 letters of all classes were registered, being an increase of 4,164 over the number registered during the previous year.

fit. is; •1. Postal Districts. Chief and Head Post Offices. SecondClass Post Offices. Sub-Post Offices. Totals. Chief and SecondHead Post Class Post Offices. | Offices. Sub-Post Offices. Totals. Auckland Chames L'araiiaki lawke's Bay ... Wellington kelson Westport itarlborough ... Canterbury lokitika Jrey mouth )tago Southland Chatham Islands 1 1 1 1 1 1 1 1 1 1 1 I 1 1 ■1 l 2 3 126 8 11 36 51 25 15 14 119 26 17 136 35 1 129 9 12 39 53 26 16 17 123 27 18 139 37 2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 1 2 3 2 1 124 4 10 36 51 25 13 14 115 24 17 136 28 1 127 5 11 39 53 26 14 17 119 25 18 139 30 2 2 1 Totals 647 14 18 620 14 18 598 625