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The encouragement of thrift among children has always been an aim of the Post Office Savings-bank, which lias long made available money-boxes for saving, and slips on which children, may save in penny stamps. A new scheme has now been adopted, to operate in conjunction with other facilities for saving, * and, with the consent of the local Education Board, is being introduced first in the Wellington Education District. The scheme provides for the sale to the children by the teacher of Id. " Thrift " stamps. When six stamps have been attached to a form made available for the purpose, the form is handed to the teacher, who credits the child's account in a pass-book suitable in size for children. Deposits in cash in sums of Is., and Is. 6d. and over, will also be accepted by the teacher. At schools in the Wellington District at which teachers are prepared to co-operate the scheme is being explained and introduced by a teacher made available on loan to the Post Office. STAFF. Once more Ī desire to pay tribute to the good work of the staff. Increasingly I hear favourable comment by the public on the efficiency of officers and on the versatility with which they undertake their multifarious duties and answer the numerous questions that arise not only on the activities associated with the Department's post, telegraph, and telephone services, but on unemployment and motor-registration work and duties undertaken for other Departments. I realize that the good reputation of the Service has been enhanced in recent years only at the expense of hard work and., in many cases, long hours of duty on the part of officers ; and it is therefore all the more pleasing to record that the staff generally has lived up to its reputation for loyalty to the Department and service to the public. POSTAL CONGRESS. Mr. G. McNamara, C.8.E., the Director-General of the Department, was appointed by Government to represent New Zealand at the International Postal Union Congress held at Cairo, commencing on the Ist February. From New Zealand's point of view one of the most important questions discussed at the Congress was that of transit charges. I am pleased to report that a 20-per-cent. reduction in these charges was approved by the Congress. As a result, it is estimated that New Zealand will save £5,000, expressed in local currency, on the cost incurred annually in the forwarding of mails to destinations oversea. On the conclusion of the Postal Congress Mr. McNamara proceeded to London to discuss with authorities there a number of questions affecting the Department. He is also taking the opportunity of studying at first hand the reorganization that has been recently effected in the control of the British Post Office. COMMERCIAL BRANCH. The Commercial Branch (which came into being in 1930 to provide closer contact m the larger centres between the Department and its customers) could hardly have had a more difficult period in which to establish its usefulness. It lias been proved that activities of the kind should be stimulated rather than withdrawn in difficult times. Although the Department lost business, as most other enterprises did in the years just past, relinquishments of telephones and loss of business generally were kept at a minimum by the operations of the commercial officers. In addition, they have materially assisted in creating goodwill and in establishing contacts that are proving effective in obtaining new business. Judged by the success that has recently attended the efforts of the Department's salesmen of the Commercial Branch and by the general improvement in departmental business that is now evident throughout the country, I am happy to say that trading conditions, which reflect the condition of the community generally, are definitely showing improvement. BUILDINGS. During the year the erection was commenced of new post-office buildings at Dunedin and Taumarunui.

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