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MSMOBAHDUM. Referring to the apparent excessive expenditure for the half-year ended 31st March, 1888, namely, £1,105,430, as against £973,897 expended the first half-year ended 30th September, 1887, I may remark generally that the last half of the financial year has always more expenditure charged and revenue brought into account than the first half, owing to the effort made at the end of the year to pay off outstanding accounts as closely as possible, while, on the other hand, the revenue is brought to account by telegraph on the last day of the year. In the special cases under the head of " Minister for Public Works " and " Minister of Defence " the expenditure for the first half-year represented only five months' payments, while the second half contained seven months' expenditure, increased, in the case of the defence vote, by payment of the whole of the capitation allowances, £18,000, and some £10,000 for arms and ammunition (ordered from England during previous year) in excess of the amount paid during tho first half of the year. Jas. B. Heywood, The Treasury, 10th July, 1888. Accountant to the Treasury.

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