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Treasurer has control, to the Bank of New Zealand, without security, for a term of years, in a manner not contemplated by the law, thereby giving undue advantages to one banking establishment closely allied with the present Administration. Further, that Parliament has not yet been informed of the transaction." Mr. C. Godfrey Knight, Actuary of the Insurance Department; Mr. Forster Goring, Clerk of the Executive Council; and Mr. Luckie, Insurance Commissioner, were called and examined as witnesses by Mr. Dargaville, and he and the Treasurer made statements. Mr. Dargaville, having been asked whether the charge already made was the only one to be brought forward, replied that he would rest his accusation of political corruption upon that charge. The Treasurer then called Mr. Luckie, and also examined Mr. Gavin, Secretary to the Treasury, and Mr. Gray, Secretary to the Post Office. The Premier and the Colonial Treasurer offered themselves for examination by the Committee or by Mr. Dargaville, but neither the Committee nor Mr. Dargaville thought it necessary to examine either of them. The transaction upon which the charge of political corruption was based was fully investigated by the Committee. The facts are as follows : — Some difficulty seems to have been experienced, by those having the control and management of certain trust funds, in finding suitable investments for them; and. in 1878 the then Postmaster-General first commenced the system of making fixed deposits at interest of surplus Post Office funds in the Bank of New Zealand; and Mr. Knight, Acting Insurance Commissioner, shortly afterwards adopted the same course, sanctioned by minute of the then Colonial Treasurer. This has since become the practice with these and other Government departments when suitable investments were not otherwise aA^ailable, and has continued to the present time. In March, 1879, the-total amount of these fixed deposits had reached £262,000. On the 16th March, 1883, there was £225,000 on deposit for two years, bearing 6 per cent, interest for the first year and 5| per cent, for the second year ; and this formed the subject of the charge against the Treasurer. The appended documents show that, except as to "investments," as denned in the Act, the Insurance Commissioner is, in the opinion of the SolicitorGeneral, by law independent of the Treasurer ; it is further shown that he keeps a separate banking account, and operates on that account subject to the control of the Controller-General. The deposit of £225,000 was made by cheques, signed by the Commissioner and countersigned by the Controller-General. The Treasurer appears to have been consulted by Mr. Luckie as to whether there were any Treasury bills available for purchase. There being none, the deposit was made with the bank with the consent of the Treasurer, although such consent was not considered necessary to enable the transaction to be carried out. No proof was offered in reference to the transaction of 1867, nor any other special charge made ; but it appears that the accusations which occur in the speech with regard to the Public Debts and Consolidated Loans Act must have been made under some misapprehension, as the Premier was not a member of the Government or of the General Assembly at the time these Acts were passed; and, although the Treasurer was a member of the House of Eepresentatives, he was not a member of the Ministry, and voted against the Acts referred to. The Committee therefore find— That, Mr. Dargaville having disavowed any intention to impute personal dishonour or dishonesty to the Premier or Colonial Treasurer, any such charge contained in or deducible from his speech is wholly withdrawn. That Mr. Dargaville adhered to the charge of political corruption, and has called evidence in support of the same, resting his case upon one particular transaction. That the evidence with regard to that transaction wholly fails to substantiate the charge, and that the allegation of political corruption based upon it is therefore entirely unfounded. For the Committee. Thomas Mason, 4th September, 1883. Chairman.

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