E.—No. I

General Post Office, Silt— Wellington, July 30th, 1870. I have the honor to submit to your Excellency the Eeport on the Postal Service of New Zealand ; this being the eleventh Eeport respecting the progress of the Department. I have, &c, Julius Vogel, To His Excellency Sir George Perguson Bowen, K.C.M.G., Postmaster-General. Governor of New Zealand.

EEPOET. The most noticeable features in connection with the working of the Post Office Department during the past year are—The establishment of a monthly service between the Colony and Great Britain, via San Erancisco; the discontinuance of the subsidized monthly service between Wellington and Melbourne, via Hokitaka, and two Interprovincial services ; and the establishment of a new Interprovincial service, between the Manukau and the Bluff, for the purpose of collecting and distributing mails in connection with the direct English route. Some important reductions in charges have been made —partly by a change in the rate of progression as affecting Inland Letters, and letters addressed to the United Kingdom. At the end of 1869, there were in existence fifteen offices more than existed at the end of 1868 ; and the sub-postmasters in charge of the new offices represent three-fourths of the increase during the year in the number of the staff. A satisfactory increase in the business of the department has taken place, especially as regards the Money Order and Savings Bank branches. The revenue has gained, as compared with the previous year, and the general efficiency of the department has been maintained. Depaktmental. During the year, twenty-four new Offices have been opened, and six Offices have been closed > making a total of 413 Offices opened at the end of 1869, of which 9 were chief Offices, 20 Offices of the second class, and 384 Sub-Offices. New Offices have been built at the Hutt and Timaru; and preparations are being made for new Offices at Wanganui and Queenstown. At Dunedin, the business of the Post Office is now conducted in a portion of the Provincial Government Buildings, the necessary alterations having been completed several months ago. There having been frequent complaints respecting the management of the Auckland office, Mr. Gray, the Inspector, was sent up during October last. He remained in Auckland until he had completed a re-organisation of the office, and its working has since then been satisfactory. The Post Office at the Thames has been removed to a central position between Shortland and Grahamstown, so as most conveniently to serve both townships ; and to meet their general requirements three letter carriers have been added to the staff of the Office. The scale of postage on Inland letters, and letters addressed to the United Kingdom, or to any British Colony, has been altered from a progression by one ounce and the charge for an ounce to a progression by half an ounce and the charge for half an ounce. By this alteration, a letter over loz., and not exceeding Ij-oz. in weight, is liable to three rates of postage only, instead of four, as was the case under the old scale ; and, in the same way, a letter weighing over 20z., and not exceeding 2ioz., is liable to five rates only, instead of six. The previous minimum rate of 4d. on Book Packets and Pattern Parcels, when not exceeding 40z., has been reduced to Id. when the packet does not exceed loz., and to 2d. when above loz. and not exceeding 2oz. The fee for Late Letters has been altered to a single rate of postage on each letter ; the uniform fee of 6d. having been found too high for late letters from one part of the Colony to another. Alterations have also been made in the charges for Private Boxes. To those who wished to have a box for a short period only, the charge of £2 for the first year was considered too high; and it has been reduced to 10s. for three months, and £1 for six months, the charge for a longer period, remaining as before. Mail Services have been established in several parts of the Colony which had previously been without such accommodation ; and some of the previously-established services have been extended and improved. In the Province of Nelson, postal communication has been extended from Poxhill to Wangapeka ; and services have been established between Napoleon Hill and Greymouth, and between Westport and Lyell.

ELEVENTH EEPOET OK THE POSTAL SERVICE OF NEW ZEALAND, BY THE POSTMASTEE-GENEEAL.