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Nine additional inland-mail services were established. The total mileage increased from 2,308,827 in 1878 to 2,589,114. The total number of inland services in operation was 474. These cost £33,719 lls. Id. per annum, or at the rate of 3^-d. per mile. The net cost of the San Erancisco service for the year was £7,227 3s. Id., against £12,432 16s. for 1878, while the net cost of the Brindisi service increased from £7,391 12s. Id. in 1878 to. £7,526 4s. Id. Fortnightly communication between Melbourne and London via Brindisi was established in February last. The Southampton route has been abandoned, and the whole of the mails by the Eastern service are now sent via Brindisi and Calais. The colony's share of Imperial postages has, in consequence of recent changes, been reduced by a sum exceeding £2,700 a year. The postage on official correspondence for the year amounted to £62,437 18s. lid. The weight of this correspondence was over 200 tons. The question of the colony entering the General Postal Union is in stain quo. It has been decided, for the present, at least, not to take any further action in the matter, seeing that our postage receipts would be seriously diminished whenever the colony became a member of the Union. The several postal districts have been visited by the Inspector during the year, and the work of inspection has been vigorously prosecuted both in the North and South Islands. In the principal postal districts the more important offices have also been visited by Chief Postmasters as an aid to the Inspector ; but for many reasons it is not desirable that Chief Postmasters should frequently be absent from their offices. The growth of the department has, however, rendered the existing provision for postal inspection inadequate for the thorough administration of the service. Some assistance has been received from the Audit and Telegraph Inspectors, who occasionally visited post offices in the charge of permanent officers; but their inspection of postal matters did not extend beyond the accounts. It will, therefore, be seen that the practical work of inspecting the several post offices really devolved upon the Inspector of Post Offices. The work of inspection to be carried out thoroughly is too much for one officer, and the time has arrived when the Inspector should receive some assistance to enable him to complete his work in a thoroughly efficient manner. It is a matter for regret that the efforts of the department to assist in establishing penny savings banks in the public schools of the colony have not been attended with any degree of success. Only in one school has the system been brought into operation. In many cases the Education Boards and School Committees have opposed the introduction of the system on the ground that the work connected with penny banks could not advantageously be added to the present duties of the teachers. On the other hand, where the Education Boards or School Committees were favourable the teachers refused their co-operation. It is apparent that until such time as the Education Boards interfere actively on behalf of these institutions, and the teachers are required to regard the duties connected with penny banks as part of their school labour, the system will.meet with but little favour at their hands. Its success entirely depends upon the co-operation of the teachers, and it is very desirable they should be urged to afford the system a fair trial. The total strength of the department on the 31st December last, compared with the number of officers in the service the previous year, may be gathered from this return : —■ Eetuhh" of Officers of the Postal Department for the Tears 1878 and 1879. Officers. 1879. 1878. Officers. 1879. 1878. Postmaster-General ... ... 1 1 Postmasters ... ... ... 11 - 14 Secretary ... ... ... 1 1 Clerks and Cadeta ... ... 121 101 Inspector of Post Offices ... ... 1 1 Sub-Postmasters... ... ... 819 786 Accountant, Money Order and Savings Letter-carriers ... ... ... 55 42 Banks Department ... ... 1 1 Messengers ... ... ... 13 12 Clerks in General Post Office ... 5 6 Mail-cart drivers ... ... ... 1 2 Clerks in Money Order and Sayings Shipping officers ... ... ... 2 2 Bank Department ... ... 6 4 Mail Agents ... ... ... 3 ... Totals ... ...1,056 987 Chief Postmasters ... ... 16 14 Of the 1,056 officers, 242 were on the permanent staff of the department, 168 postal and telegraph officials, and 646 non-permanent sub-postmasters. 59 post offices were established, 3 reopened, and 30 offices were closed, during the year, as follows: — Offices Opened and Closed dttking 1879. Opened. Appleby, Invercargill Kuri Bush, Dunedin Eae's Junction, Dunedin Ashhurst, Wellington Kerry Town, Timaru Rangitata Island, Timaru Bishop's, Dunedin Kowai Bush, Christchurch Spreydon, Christchurch Bulmer, Timaru Loburn, Christchurch Stanton's, Hokitika Blackwater, Greymouth Lowther (reopened), Invercargill Stony Creek, Dunedin Bainesse, Wellington Makino Road, Wellington Swift Creek, Dunedin Big Bay (reopened), Hokitika Midhirst, New Plymouth Sherwood, Napier Cheltenham, Wellington Milford, Timaru South Malvern, Christchurch Dunback, Dunedin Miranda, Thames Taheke, Auckland Elderslie, Invereargill Manaia, Auckland Te Aro (Branch Office), Wellington Fern Plat, Westport Mangakahia, Auckland Taratahi, Wellington Georgetown, Oamaru Mayfield, Christchurch Te Teko, Auckland GHenham, Inrercargill Middle Kyeburn, Dunedin Treutham, Wellington Goodwood, Dunedin Motupiko, Nelson Upper Nevis, Dunedin Hakateramea, Timaru Owharo, Thames View Hill, Christchurch Hobsonville, Auckland Omata, New Plymouth Waiho Forks, Timaru Hunua, Auckland Paroa (reopened), Greymouth Waima, Auckland Huirangi, New Plymouth Pokeno Valley, Auckland Waitangi, Hokitika Kaihoke, Auckland Pinnacle, Dunedin Warepa, Dunedin Kohekohe, Auckland Eazorback, Auckland Weka Pass, Christchurch. Kaituna, Blenheim Eedcliffe, Timaru - ■. . ■