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for a longer period than twenty years and to persuade Boards to meet their capital requirements, as far as possible, by shorter loans and, wherever practicable, by levy and subsidy, providing such does not impose too great a burden all at once on the rates. The following is a summary of the loans approved during the iinaneial year :— Term. " Amount. Under ten years .. .. .. .. .. .. 69,908 Ten years .. ~ .. .. .. .. 125,000 Twelve years . .. ~ .. .. .. .. 100,000 36J years .. ~ .. .. .. .. 4,500 Total .. .. .. .. .. .. £299,408 The £4,500 for which approval was given for 36| years represented one loan only for the purpose of providing an additional amount to a previous loan of £45,000 for a new hospital, and was the only exception to the Department's policy regarding short-dated loans. The Department's reasons for its policy have been given at length in previous reports, and it is pleasing to note that such policy is in accordance with the views expressed in a leading article in a recent issue of the New Zealand publication "Accounting, Commerce, and Insurance," which states :— " Many local bodies have raised large loans in recent years at very high rates of interest, and in some cases as high as 61 per cent., but it is unfortunate for ratepayers that most of the loans arranged at high rates of interest have been for long terms extending up to 36 J years, and in consequence decidedly in favour of the financial institutions and private lenders who have advanced money. When rates of interest are high, oidy the most essentia] and urgent loans should be raised, and then only on short-dated terms with a small sinking fund instalment, so that a redemption loan can be raised on more favourable terms when the loan expires. " It is amazing the ignorance of most members of local authorities as to the rules of finance and the fundamental principles of the Local Bodies' Loans Act. If the average member of a local authority had even a working knowledge of the law in relation to the raising of loans, and the responsibility it entails on ratepayers, members of local bodies would not have rushed so lightly into loan obligations which will entail a heavy burden on the ratepayers for the next twenty or thirty years." The Department's policy in regard to loans was endorsed by the recent Conference of Hospital Boards, which passed a resolution that loans for hospital-construction should not be for a longer period than twenty years. The Increasing Burden of Hospital Expenditure. The increasing burden of hospital and charitable relief upon the ratepayers and the Consolidated Fund is, of course, a matter for concern, even if such amounts have been wisely and necessarily expended, and as a natural consequence the Department lias examined various suggested methods for relieving the burden. So far, however, no method has been devised which possesses features superior to the present method of meeting the deficit by an equal burden on the local rates and the Consolidated Fund. As a matter of fact, although it must be expected that there will always be a slight increase in our hospital expenditure, yet as the health of the people tends to improve as a result of preventive medicine and the better understanding and practice of the laws of hygiene the cost of hospitals should tend to decrease in comparison with the increase in the population. The advance made during recent years in medical science, however, and the consequent necessity for modern equipment and special departments has prevented any appreciable diminution in the increase of expenditure. Patients' Payments. As a result of the Bryce Inquiry at Palmerston North the principle has been clearly indicated that the public hospitals are, or should be, available to all who seek admission. Two other principles are correlated thereto, the one that those able to do so should pay for the full cost of their treatment, and the other that such cost should include a sufficient and reasonable remuneration to the medical officers of the institution. In regard to the first, this matter has been discussed at two Conferences of Hospital Boards held recently, the one in October last and the other in May. At the former Conference the Boards agreed that a uniform charge was desirable, and that 9s. per diem should be the fee charged. At the latter Conference the Boards negatived a proposal that the fees should be raised to approximate the full cost of treatment. It seemed to be felt that it would impose a hardship on patients conscientiously doing their best to meet their hospital accounts, and might, indeed, act as a deterrent to people seeking treatment where such is necessary, whilst at the same time the increase in the amount of fees collected might be negligible. The fact remains, however, that the average cost of our hospitals, including all overhead charges, is between 15s. and £1 per diem, and of the 9s. per diem charged by the majority of the Boards under 4s. per diem is collected. A considerable amount can still be done in the direction of educating people to recognize their obligations in regard to their hospital accounts. There are still people to be found who consider that because they are ratepayers they should be entitled to free treatment. Controversial Questions. In regard to the question of the medical staffing of hospitals, it is generally stated by every one concerned that the time has come when those members of the medical stall of a hospital at present giving their in an honorary capacity can no longer be expected to do so. Whether, however,