A.—4,

4

each district. This plan was adopted at a time when there were few branch Banks in the colony, and it was thought undesirable to leave moneys in the hands of local Collectors longer than was necessary. The colony was therefore divided into districts, in each of which a more responsible office was created, to which all Collectors should account, and into which all collections should be paid before being passed into the Public Account. The office of Receiver had indeed, before the passing of the Audit Act, been, to some extent, called into existence for the collection of the Gold Revenue on the several gold fields. Collectors of Imposts pay their collections to the Receiver of the district weekly, and the Receiver pays his receipts into the Public Account daily. The system thus established by the Audit Act has become somewhat modified in practice, so far that the distinction between the Collector and Receiver is gradually disappearing. There are still Collectors of Imposts who are not Receivers, but all Receivers are now Collectors, and indeed Paymasters as well, in their districts; and a great part of the Inland Revenue comes into the Receivers' hands directly. In account, however, he has, as Collector, to account to himself as Receiver. Where Registrars of Births, Deaths, and Marriages are allowed to keep their fees as remuneration for their services, they render no account, and the fees are not brought on charge as revenue. In Victoria the Government deals with ten Banks, called the Associated Banks, amongst which the public moneys are divided as equally as is found to be possible. In Melbourne all the Banks receive and pay moneys on the Public Account; but in country towns it is the custom to deal with only one Bank as the Government Bank. As returns are made daily from all the branch Banks to the Bank at the seat of Government, and so to the Treasury, the Treasury is in a position to instruct the Receiver and Paymaster in Melbourne, day by day to pay in his collections to, and to draw his cheques upon, such of the Banks in Melbourne as will maintain, on the whole, a fair equality of the balances of the Public Moneys in each banking establishment: and this is the practice observed. By the last agreement with the Associated Banks, the latter allow interest at the rate of 3 per cent, per annum on the daily current balance of the Consolidated Fund, so long as such balance in the aggregate is not less than fifty thousand pounds; but when such aggregate balance is below the sum named no interest is to be allowed thereon. No interest is to be allowed upon any of the departmental accounts. The Banks are to receive and transmit moneys on the public and departmental accounts between their branches in Victoria free of exchange; and the agreement is terminable by twelve months' notice on either side, dating from January, 1880. There is besides a special agreement with the Associated Banks in respect to the Loan of Five Millions to be raised on behalf of the Government. This agreement provides for the drafts which the Government may draw against the loan prior to its being floated; that the proceeds of the Government drafts shall be lodged with each of the Banks in equal shares to the credit of the Railway Loan Account, and shall bear interest at the rate of 4 per cent, per annum, and shall not be withdrawn except for the purposes for which the loan is raised. The proceeds of the loan are to be divided equally between the Banks, and to bear interest at 1 per cent, under the Bank of England minimum rate of discount, but not to exceed 4 per cent. Overdrafts in London to bear interest at 1 per cent, above the Bank of England minimum rate of discount, but not less than 4 per cent. In negotiating the loan the Banks to be paid ten shillings per cent., together with customary brokerage, postage, advertising, and other incidental expenses. For payment of debentures, five shillings per cent, commission, together with exchange and brokerage. For payment of coupons, ten shillings per cent., and exchange on drafts. Drafts on London at sixty days' sight to be issued to the Government at the Banks' selling rate of exchange to the public, together with stamp duty.