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The practice of limiting the currency of the postal orders to three months from the last day of the month of issue, after which extra poundage was payable by the holder equal to the original poundage for every three months or fraction thereof beyond the first three months, has been modified in so far that in future only one rate of poundage will be charged after three months' currency, no matter what period may have elapsed since the order was issued. - It has been arranged with the London Post Office that New Zealand stamps not exceeding sd. in value may be affixed to British postal orders issued in New Zealand, and such stamps will be recognised in the United Kingdom as an extension of value of the - particular orders to which they are affixed. In like manner British postage-stamps affixed to orders issued in the United Kingdom will be recognised in New Zealand. During the ten months ended the 31st March last there were 17,776 British postal orders sold, representing £8,821 155., and in the same period 3,912 orders, for £2,768 4s. 6d., were paid. A communication recently received from the Postmaster-General, Cape Town, covered copy of a proposal submitted to the British postal authorities relative to the issue of an Imperial postal order, which, it was suggested, should be used for the reciprocal interchange of remittances of small amounts throughout the Empire, in lieu of the existing arrangement, to which various objections were urged. The objections of the Cape office seem to some extent apparently based upon a mistaken apprehension of the relative proportion of the issues of postal orders and money-orders. Our experience so far has been that there was a very trifling loss in the shape of commission, and that quite a new class of business was created in the remittance of small amounts, which would not have been sent by money-orders, owing to the higher commission. The British postal order has been found to answer admirably the purpose for which it was introduced, and it is not believed that any practical advantage would be gained by substituting an almost similar note under a different name.

Statement showing the Number and Value of British Postal Orders sold in New Zealand from 1st June, 1904, to 31st March, 1905.

Statement showing the Number and Value of British Postal Orders paid in New Zealand from 1st May, 1904, to 31st March, 1905.

Increase of Maximum Amount of Post-office Money-orders. In pursuance of proposals submitted by the General Post Office, London, in 1904, and outlined in last report, authority was given by Order in Council of the 3rd October, 1904, to extend the maximum amount for which a single money-order could be issued in New Zealand for payment within the colony from £20 to £40 ; also authorising the extension of the limit to £40 for money-orders issued in New Zealand for payment in the United Kingdom, British colonies, and foreign countries, provided that the consent in writing of the postal authority of the country concerned is first obtained. Money-orders are now issued for payment in New Zealand up to the increased limit, and the following countries have agreed to the extension as from the dates given below : —

United Kingdom, Ist October, 1904. Fiji, Ist October, 1904. Hongkong, Ist October, 1904. Natal, Ist October, 1904. Transvaal, Ist October, 1904. Australia, Ist December, 1904.

Canada, Ist January, 1905. Ceylon, Ist January, 1905. Germany, Ist February, 1905. Samoa, Ist February, 1905. India, Ist February, 1905. Cape of Good Hope, Ist March, 1905

Money-orders may also be issued for the maximum sum for payment in most of the foreign countries with which this colony has only an indirect exchange. The maximum amount for which a single money-order may be drawn for payment in the United States of America will remain for the present at £20, as the postal laws of that country do not permit of any extension of the existing limit until sanctioned by Congress.

/6 1 1/ 1/6 2/ 2/6 ! 3/ 3/6 4/ 4/6 5/ I 5/6 6/ 6/6 I 7/ 7/6 8/ 8/6 9/ 9/6 10/ 10/6 11/ 358 989 652 713 995 597 310 476 231 1,681 187 368 186 451 290 224 165 151 95 2,095 198 145 11/6 12/ 12/6' 13/ i 13/6 14/ : 14/6 15, : 15/6 16/ I 16/6 17/ 17/6 : 18/ 18/6 19/ 20/ Total. Number. Amount. 67 173 139 129 90 67 38 324 31 84 34 70 65 84 45 169 4,610 17,776 £ s. d. 8,821 15 0

6 1/ 1/6 I 2/ 2/6 i 3/ 3/6 4/ 4/3 5/ 3/6 6/ 6/6 7/ 7/6 8/ 8/6 9/ 9/6 10/ 10/6 11/ 18 83 44 89 170 56 25 39 16 11/6 12/ 12/6 13 13/6 14/ 14/6 15/ 15/6 8 16 13 7 5 8 5 54 'J 359 16/ 10 7 25 11 13 30 15 6 12 5 540 16 8 Total. 16/6 17/ 17/6 18/ 18/6 19/ 20/ 21/ Number. Amount. I i £ sTd. 2 6 10 5 5 10 2,007 145 3,912 2,768 4 6