B.—l [Pt. Ilj.

accounts for the following year. The Treasury, however, in an endeavour to reduce as far as possible the amount of imprests shown as outstanding, although contrary to the statutory requirement already quoted, keeps its books open for a considerable period after the 31st March, and brings into account imprestees' vouchers received after that date. Were it to close its books on the 31st March in accordance with the Act the accounts could be finalized at an earlier date. Another factor which causes undue delay is the fact that transfers and other transactions which could be dealt with earlier in the year are held over by Departments until near or after the end of the year. The consequent rush of work in Treasury and Audit at the end of a year causes delay which could largely be avoided by more timely action on the part of other Departments. It is impossible for the Departments of Treasury and Audit, through which all transactions must pass, to deal expeditiously with the extra flow of vouchers coming in from the various Executive Departments. It not infrequently happens that the transactions so held over are those which are doubtful and open to question, and to which more time must be devoted by Treasury and Audit, and this tends to add to the delay caused by the extra volume of work. Generally speaking, it can be stated that, apart from the ascertainment of the approximate surplus or deficit for the year, the public accounts in New Zealand are made available for publica tion at least as expeditiously as in the United Kingdom. New Zealand Silver Coinage. During the year steps were taken to replace the British silver coin which has for many years been recognized as legal currency in New Zealand, and the Australian silver coin which has in recent years also been in circulation in New Zealand though apparently it was not legal tender in the Dominion. Under the authority of section 8 of the Finance Act, 1932-33 (No. 2), and of the Coinage Act, 1933, arrangements were made under which the Royal Mint agreed to re-mint free of charge the Imperial and Australian coin circulating in the Dominion, replacing it with New Zealand coin of distinctive design, and to allow the New Zealand Government the bullion value of the coin not used in making such replacement. The transactions have been recorded in the Silver and Bronze Coin Account, which was formerly used to record the importation by the Government of British silver and bronze coin on behalf of the banks. In recording the transactions the Treasury has shown the nominal value as well as the cash transactions. This has afforded valuable information, which would not have been available had only the cash entries been shown owing to the fact that the bulk of the transactions are being carried out on a bullion or barter basis. The transactions were not complete at the end of the year, and the result of the replacement will not be disclosed until all the relative entries have been brought into account. It was at one time estimated that the profit arising to the New Zealand Government from the reeoinage on this basis would be in the neighbourhood of £180,000, but this will depend on the amount of coin actually replaced, and the relative fineness of such coin. The profit arises from the fact that the Australian coinage and a proportion of the British coinage hitherto in circulation in New Zealand contained a larger proportion of silver than is required in the new coin under the standard set out in the Schedule to the Coinage Act, 1933, which is also the standard governing the present production of Imperial silver coin. A much larger profit would have been obtained had the New Zealand Government been able to arrange to repatriate the whole of the Imperial and Australian coin circulating in New Zealand at its face value (which was the value at which New Zealand actually purchased such coin) instead of receiving merely the recoined silver without cost, plus the bullion value of the surplus not required for such reeoinage, as actually arranged. The cost of producing new silver coin of the standard fineness depends largely on the price of silver, but at the average price ruling at the present time would be about 4s. for each £1 of silver coin minted. This would have given a profit in the neighbourhood of £750,000 for each £1,000,000 of new coin, after allowing for freight and other costs. If arrangements could have been made to repatriate at its face value, the surplus coin over and above what was required for re-minting, a much greater profit would have accrued to New Zealand than will actually be obtained under the arrangement with the Royal Mint. The Commonwealth Government has, I understand, however, agreed to repatriate a small proportion of the Australian coin circulating in New Zealand at its face value, thus giving New Zealand the full benefit of that repatriated portion. The profit on the original coinage now withdrawn accrued to the Royal Mint and the Commonwealth Government, so that the New Zealand Government now receives only the difference between the value of the silver content in the new and old coins, but in the case of any additional coinage being necessary to cover future increases in silver currency in the Dominion it is understood the New Zealand Government will receive the profit. In the case of Imperial coinage the Mint undertakes the replacement of the coin when worn, and this must be set off against the immediate profit to the Mint in minting that coin. In the case of New Zealand coinage the immediate profit which will be obtained by the Dominion from the reeoinage is comparatively small, and if the renewal of this coin from time to time when worn is undertaken by the Dominion, it seems possible that an eventual loss and not a profit may arise in relation thereto. In this connection it is to be noted that the Royal Mint and the Commonwealth Government have been relieved of any liability for the further replacements of the Imperial and Australian coin which has circulated in New Zealand, and which has been re-minted for the New Zealand Government, and nearly the full profit arising from the original minting of this coin has thus been assured to them. Reports from other countries which have replaced Imperial silver coinage with a domestic silver currency —for example, South Africa —indicate that the whole or a considerable proportion of the Imperial coin was repatriated at its face value, thus ensuring a large profit to the country making the change.

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