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Influenza. —This is a disease that recognizes no national frontiers, and reduces quarantine systems to expensive absurdities. Our only line of defence at present appears to be to raise the standard of life by strict observance to the fundamental laws of health. Not only must it be raised in our own country, but through the international work of such organizations as the Health Committee of the League of Nations there must be created a higher standard of sanitation and social conditions in other countries, for the conditions that exist elsewhere have a direct bearing on the health of the people of this Dominion. No country can live to itself. Non-notifiable Diseases. —Of these, cancer still claims a high death-rate, there being 8-7.5 deaths per 10,000 persons living, in comparison with 8-52 for the previous year. The Office International d'Hygiene Publique and the Health Committee of the League of Nations have started special investigation into the cause of national differences in the mortality from cancer of certain regions of the body, which should throw some light on this problem. The Department have supplied them with certain data as to New Zealand incidence. The Empire cancer campaign inaugurated in London appears an excellent movement that promises to do much in the fight against this disease. We have circulated to all working medical practitioners a leaflet " Cancer—ls it curable ? " for distribution among their patients and the general public. With the vast amount of research that is going on we should expect in the near future some further enlightenment as to its origin and treatment. The Department is fully alive to the seriousness of the matter, and is keeping in close touch with the Imperial Cancer Research Fund Committee in London, and other research bodies in various parts of the world. The use of radium is still in the experimental stage, and just yet does not justify any definite statement as to its curative value. Goitre. —ln reference to goitre, special mention must be made of the excellent work being carried out by the School Medical Officers, and by Professor Hercus, of the Medical School, Dunedin. The organized work of the Department in this direction has proved particularly valuable. The Health Committee of the League of Nations have been supplied with special information in regard to the incidence of this disease in New Zealand in answer to their questionnaire. Venereal Diseases. —Those preventable diseases are far too common. The V.D. clinics which have been placed under the control of the public hospitals continue to do good work. It is to be regretted that the Department and the medical profession have not more direct control over those who have contracted these diseases who can and do at present spread them with impunity. Legislation on the lines suggested by the V.D. Commission is long overdue, but is proposed for this session. Deaths under Ancesthetics. —Thirteen deaths occurred in 1.923, in comparison with twenty-two for the previous year, representing a satisfactory decrease. The majority were cases in which the expectation of life would, have been short. However, three deaths took place during dental operations, and it is evident that the administration of general anaesthetics in such cases is accompanied by a certain amount of risk. This matter has been brought under the notice of the British Medical Association. On instruction from the Department, the Dominion Laboratory has carried Out a number of analyses of standard anaesthetics on the market. Except in a few cases where there was no serious defect the result showed that the recognized standards are being observed. A proper Ansesthethics Register, prepared by the Department, has been introduced into the majority of our public hospitals, so that reliable records as to the administration of anaesthetics should in the future be available to the medical staffs and the Department. SECTION 2.—FINANCE. Departmental. The position as regards the Department's appropriations from the Consolidated Fund is as follows : — 1923-24. 1022-23. Voted. Expended. Expended. £ £ £ Payments .. .. .. ..347,972 305,445 360,894 Credits ... .. .. .. 78,005 113,379 127,168 Net expenditure .. .. .. £269,967 £192,066 £2.33,726 Considerable further savings were effected in the administrative cost of the institutions taken over from the Defence Department, apart from the saving effected by the closing of the Trentham Hospital, and the recoveries considerably exceeded the estimates, particularly in regard to the collection of patients' fees. Hospital Boards' Finance. In regard to the subsidies paid to Hospital Boards under the permanent appropriations, the amount of subsidies paid during the year was £407,447, or £12,553 less than that estimated and appropriated, but the amount of subsidies outstanding at the close of the year was £5,000 more than estimated. The expenditure on account of subsidies was £21,997 less than the previous year, which in turn was £42,267 less than the year preceding. The amount required for the current year will probably show an increase of about £120,000, some £60,000 of which will be due to the new maintenance subsidy rates, and some £30,000 will be represented by increased capital expenditure, many Boards showing a laudable desire to finance their capital undertakings by means of levy and subsidy instead of by lengthy loans. The increase in the maintenance subsidy rates permits them to do this without