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No. 68. Mr. Geay to Messrs. Gilcheist, Watt, and Co. Gentlemen, — General Post Office, Wellington, 6th October, 1876. I have been directed to acknowledge the receipt of your communication of the Bth ultimo, having reference to an apparent discrepancy between the amounts advised in my telegram to you of the 21st August, as having been passed to your credit with the Bank of New Zealand at Wellington, and the sum actually credited you by that bank. In reply, I have to inform you that the respective sums advised in my telegram previously referred to amount in the aggregate to £3,649 12s. 4d., and not £3,759 12s. 4d., an error having to all appearances been made in the transmission of my telegram. In addition to this sum an amount of £155 was also placed to your credit on the 15th of August, being the bonus earned by the "City of San Francisco " for delivering the mails at Port Chalmers on the 21st of June, 1876, thirty-one hours under the contract time. The attached statement and copy of telegram will more fully explain the matter. I have, &c, W. Geay, Messrs. Gilchrist, Watt, and Co., Sydney. Secretary.

Enclosure in No. 68. Statement showing the several Amounts passed to the Credit of Messrs. Gilchrist, Watt, and Co., Sydney, at the Bank of New Zealand, Wellington, by the Government of New Zealand, between 15th and 22nd of August, 1876. £ s. d. £ s. d. August 15th.—Subsidy for San Francisco Mail Services performed by s.s. "Australia" from Port Chalmers to San Francisco, from 31st May to 28th June, 1876 ... 1,729 16 2 Time allowed by contract ... 722 hours Time occupied... ... ... 692 ~ Bonus at £5 per hour .. ... 30 ... 150 0 0 1,879 16 2 „ Service performed by steamers s.s. " Australia " and " Zealandia" from San Francisco to Auckland, from 19th July to 13th August, 1876 ... ... 1,729 16 2 Time allowed by contract ... 591 hours Time occupied... ... ... 583 „ Bonus at £5 per hour ... ... 8 ... 40 0 0 1,769 16 2 „ Bonus earned by s.s. City of San Francisco for delivering 'Frisco mails at Port Chalmers, on 21st June, 1876, 31 hours under contract time ... ... ... 155 0 0 £3,804 12 4 General Post Office, Wellington, 6th October, 1876. W. Geay.

No. 69. Messrs. Gilcheist, Watt, and Co., to the Hon. the Postmasteb-Geneeal, Wellington. Sic,— Sydney, 17th October, 1876. We have the honor to acknowledge the receipt of your letter of 6th instant, and to state that the amount of £3,804 12s. 4d. has been duly credited to us by the Bank of New Zealand. We have, &c, Gilcheist, Watt, and Co., General Agents for the Contractors; San Francisco Mail Service. The Hon. the Postmaster-General, Wellington.

No. 70. Mr. Geay to Messrs. Gilcheist, Watt, and Co. Gentlemen, — General Post Office, Wellington, 7th October, 1876. I beg to forward herewith, for your information, statement showing the several amounts which have been passed to your credit with the Bank of New Zealand, in Wellington, by this department, in connection with the San Francisco Mail Service, from the Ist June last to date. I shall be glad to know whether the sums enumerated in the statement agree in the aggregate with the advices which you have received from the Bank of New Zealand for the same period. To prevent confusion, I might add that the payment immediately preceding the one first mentioned in the statement was one for £3,197 12s. 4d., particulars of which accompanied my letter to you of the 7th June last. For the future you will be supplied, in addition to the usual telegraphic advices, with a monthly statement, in similar form to the one now sent and it is hoped that the arrangement will keep the accounts in regular adjustment. I have, &c, W. Gray, Messrs. Gilchrist, AVatt, and Co., Sydney. Secretary.