A.—sb

2

Mr. Clayden's engagement terminates at the end of June, and Mr. Bathgate leaves for New Zealand in about a fortnight. As regards Mr. Holloway, he has since August last been receiving a reduced rate of pay, as I advised you in my monthly report of Ist September. I have thus retained him, as, from the letters from the Hon. the Minister for Immigration, there appeared still a prospect of Government emigration being renewed to an extent which would render Mr. Holloway's services useful. But, judging from the latest advices, I think I shall be right in dispensing with his services ; and I have therefore given him three months' notice of the termination of his engagement, as provided for in his agreement. With reference to your suggestion, that a second Emigration Officer might be dispensed with, I think some misunderstanding has arisen from the fact that Mr. Shortt, as well as Mr. E. A. Smith, are described in the salary vouchers as "Emigration Officers." Mr. Shortt has always acted as " head clerk "in all emigration matters. He would no doubt be the officer called on to act in Mr. Smith's place in case of the latter's temporary absence; but, as a rule, he performs duties apart and additional to those of Mr. Smith, who acts as Despatching Officer ; and both are officers experienced in emigration matters, and who, if there is any prospect of resumption of emigration, should be the last to be dispensed with. The officers whose services are still retained in this office are those who are either required for the ordinary work of the department, or those who will be required, atid whose experience will be specially useful in case it is decided to send out "a limited number of nominated emigrants and single women some time during the year; but, if I receive instructions which will further limit the likelihood of emigration operations being resumed, I will make further reductions. I may add that the arrears of work caused by the exceptional pressure of last year, and the increasing amount of miscellaneous work intrusted to the department, have kept all officers, so far, well employed. I have, &c, Julius Vogel, The Hon. the Colonial Secretary, Wellington. Agent-General. P.S.—Since writing the above I have received the Hon. the Premier's telegram instructing me not to renew nominated emigration, and to send out only a limited number of single women. Under these circumstances, I shall probably see my way to dispensing with the services of two more clerks. I may, however, express the opinion that, with the increased price of wool and favourable harvest, there will be a renewal of prosperity in the colony.

No. 3. The Hon. the Peemiee to the Agent-Geneeal. (Telegram.) Wellington, 26th May, 1880. Disappointed no reply regarding reductions. Current year's vote £1,500 below last. Hall.

No. 4. (No. 93.) The Hon. the Colonial Seceetaet to the Agent-Geneeal. Sie, — Colonial Secretary's Office, Wellington, 11th June, 1880. I have the honor to inform you that the vote for the Agent-General's Office, which includes your salary and that of your staff, together with office-rent and contingencies, has been reduced to £4,000 for the year ending 31st March, 1881. I have therefore to request that you will take such steps, by making reductions in your staff, and by exercising economy in the expenditure on contingencies, as will bring the cost of the department within the amount appropriated for it. I have, &c, The Agent-General for New Zealand, London. Thomas Dick.

No. 5. The Hon. the Colonial Seceetaet to the Agent-Geneeal. Sie, — Colonial Secretary's Office, Wellington, 10th September, 1880. Adverting to my letter, No. 93, of 11th June, 1880, in which I informed you that the vote for vour department, including the salaries of yourself and staff, rent, and contingencies, had been reduced to £1,000, I regret now to have to state that that amount was further reduced in Committee of Supply to £3,000, for the year ending the 31st March, 1881, as you will have gathered from the Premier's telegram of the 7th instant, a copy of which I herewith enclose. That message will have given you a general outline of the reductions which it becomes necessary to effect in the expenditure of your department. I proceed to address you more fully on the subject. You are probably already aware that, in consequence of a resolution of the House of Eepresentatives, a deduction of 10 per cent has been made as from the Ist August, 1880, and until the 30th June, 1881, from all salaries, pay, and wages paid to the Civil servants of New Zealand, with the exception of the Governor and Judges. In compliance with this resolution, a deduction to the same extent, commencing from the Ist of October, will have to be made from your own salary and from those of the officers of your department, except when, in pursuance of these instructions, either a larger reduction is made, or you have seen your way to make a complete revision of salaries, effecting a larger saving than 10 per cent. It will be necessary that for the future the expenditure of your department should be brought within the following amount: Agent-General, £1,350; secretary, £600; accountant, £300; clerks, £350; messenger, £40; rent, &c, £360; total, £3,000.