8.—6

XXI

The average balance to the credit of each open account at the end of 1896 was ,£29 3s. 7d., as compared with £28 ss. 10d. at the end of 1895. The expenses of management last year were estimated to have amounted to £7,000, representing an average cost of 4"lid. per transaction, which is considerably less than the cost in the United Kingdom. Arrangements have been made to admit of withdrawals by telegraph, and it is anticipated that this concession will be much appreciated by depositors. GOVERNMENT INSUEANCE DEPAETMENT. The annual Eeport of the Government Insurance Commissioner, which has been laid upon the table in accordance with statutory requirements, together with the valuation report upon the liabilities and surplus profits of the department, contains full information as to the continued progress of this institution. At the end of the year the freehold and mortgage securities were subjected to a close scrutiny, and a further amount of £10,500 was carried to the reserve constituted on account of these investments. The triennial valuation has again been carried out upon principles approved by the eminent consulting actuaries to the department, Messrs. Ralph P. Hardy and George King, and has resulted in a gross surplus of £225,000. Of this amount £81,000 was specially reserved in accordance with the advice of the actuaries, in order that the effective rate of interest in the valuation should be equivalent to £3 12s. 6d. per cent.; and the balance of £144,000 was divided among the participating policy-holders. The outcome of the course of action adopted in making the foregoing reserves has been to make the financial position of the department even stronger than heretofore, and to still further improve its prospects of future prosperity. The new business for the year under review amounted to £606,000, and the funds of the department increased during the year by £173,597, of which amount £10,500 was carried to reserve, as before stated. The total addition to the funds exceeded that of any previous year by over £7,000, which is an exceedingly satisfactory state of affairs, especially when it is considered, as pointed out by the Commissioner in his report, that the overdue interest on all accounts only amounted to £760, or a little over \ per cent, of the interest receipts. Further details will be found in great fulness in the report itself, and the accounts and statements appended thereto. VALUATION DEPAETMENT. It will be remembered that during the session of 1896 an Act was passed providing for the valuation of all the land in the colony. The valuation under this measure, " The Government Valuation of Land Act, 1896," is now proceeding, and every care is being taken to insure a thoroughly reliable and trustworthy assessment of the value of landed property. The Act provides that the general valuation-roll, when made, shall be the standard roll from which the valuation-rolls of all local authorities having rating-powers, and rating on the capital or on the unimproved value, shall be framed; and, further, if and in so far as the Governor in Council from time to time directs, the general valuation may be used for any of the following purposes: Land-tax, assessment of duties under the Stamp Act and Deceased Persons' Estates Duties Act, loans on mortgage of land by Government departments, and loans on security of special rates by the Treasury under " The Government Loans to Local Bodies Act, 1886." In addition to these purposes, the Valuation Department is authorised, on payment of a fee, to furnish any person with a certified copy of any valuation as it appears on the general roll. It is expected that this last provision will be extensively made use of by trustees and other persons lending money. on mortgage, and for other purposes. On reference to the estimates, honourable members will see there is an item set down of £39,440 for defraying the cost under the head of "Valuation Department." It is proposed that the expenditure shall be borne by— (a) the Land- and Incometax Department, (b) the principal local authorities, (c) the Government Valuation of Land Department. The apportionment of the same is proposed as follows : In