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AVERAGE NUMBER OF LETTERS POSTED PER UNIT OF POPULATION. 1935, 86-53. DEAD LETTER OFFICE. 1935. 1934. Letters returned to senders in New Zealand .. .. 603,192* 378,877f Other articles returned to senders in New Zealand .. 284,259 213,605 Letters returned to other Administrations . . . . 38,344f 38,655§ Other articles returned to other Administrations . . 43,256 37,501 Letters destroyed (senders unknown and contents of no value) .. .. .. .. .. 24,823 22,382 Letters and letter-cards posted without addresses .. 10,568 10,059 Letters imperfectly or insufficiently addressed .. .. 19,138 17,885 Letters intercepted addressed to persons and firms on prohibited list .. .. .. .. .. 2,431 8,978 Letters intercepted on account of libellous addresses .. 115 43 Newspapers received without addresses .. .. 1,660 2,247 Other articles received without addresses .. .. 2,192 1,795 Newspapers returned to publishers as undeliverable .. 41,310 40,849 Articles bearing previously used stamps .. . . 145 83 The proportion of undeliverable letters to the total number of letters delivered was 0-49 per cent. MISSING POSTAL PACKETS. Complaints concerning the non-delivery of postal packets of all kinds received and investigated by the Department during the year 1935 numbered 5,542. In 2,981 cases the inquiries resulted in the missing articles being traced or accounted for, as follows : — Sender responsible for delay . . . . .. .. .. .. 989 Addressee responsible for delay .. .. .. .. .. 1,099 Post Office responsible for delay .. .. .. .. .. 275 No delay, or responsibility not fixed .. .. .. .. . . 618 In 2,561 cases the manner of disposal of the missing postal packets could not be determined. This figure represents 0-001 per cent, of the total number of articles posted during the year. MONEY-ORDERS. An appreciable increase was recorded in money-order business during the year, 673,057 orders, of a value of £3,374,029, being issued. This represents an increase compared with the previous year of 18,436 in number and £164,316 in value. POSTAL NOTES. There was a marked increase in postal-note business. The sales were 3,827,417 postal notes, of a value of £1,293,955, against 3,325,561, of a value of £1,140,695, during the previous year. The commission totalled £33,145 16s. 7d., an increase of £4,068 16s. 6d. on the commission earned in 1934-35. BRITISH POSTAL ORDERS. British postal-order transactions also increased, 77,422 orders, of a value of £36,318 145., being sold, as against 72,971, of a value of £33,977 145., for the previous year. The number of orders paid was 29,210, of a value of £14,800 18s. 6d., compared with 27,978 orders, of a value of £14,651 55., paid during the previous year. SAYINGS-BANK. Deposits lodged in the Post Office Savings-bank during the year amounted to £25,619,775, and the withdrawals to £23,533,596, an excess of deposits of £2,086,179. The interest credited to depositors was £1,406,459, and the amount at the credit of depositors at the end of the year reached the record total of £52,916,352. A savings-bank ledger office was established at Morrinsville on the Ist March last. SCHOOL SAVINGS BRANCH. Inaugurated in 1934 with the object of encouraging the practice of thrift among children, the school savings-bank scheme is now well established and its success is assured. At the end of the year the scheme was in operation in 236 schools, the number of accounts was 46,823, and the total amount at credit £13,780. During the year 29,116 new accounts were opened and 154 additional schools joined the scheme. The deposits amounted to £14,543 and the withdrawals £3,162. Scholars to the number of 888, on leaving school, transferred their accounts to the Post-office Savings-bank. From the outset the adoption of the scheme at schools has been facilitated by the support of the various Education Boards and by the co-operation of headmasters. So that the scheme may be introduced into each school as smoothly as possible, the Education Department has made available to the Savings-bank Branch the services of a teacher, who, with the permission of the headmaster, explains the system to the children. The preparation of pass-books and other clerical work is done by a savings-bank officer, who also assists the headmaster with the first day's banking.

* Increase due mainly to heavy postings of electoral notices prior to general election. The total included 104,734 registered. t Including 15,126 registered. J Including 394 registered. § Including 391 registered.

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