7

A.—4,

The receipts from the only Government railway, the Launceston and Western line, are paid to the Manager at Launceston, and drawn for by the Treasury, as in the case of the Customs. The Treasury pays all its collections daily into the Bank in gross, excepting only in the case of refunds of over-collections, commissions on sales, and share of penalties paid to informers. The Colonial Treasurer is considered to be the Collector of Internal Revenue. The Government of Tasmania deals with three Banks; but the accounts in two are very small: the principal account is with the Commercial Bank. The Customs are paid into the Commercial Bank and the Bank of Van Diemen's Land month and month about. The dealings with the Union Bank are confined to those of one district only, the account being replenished by periodical cheques on the other Banks. There is no regular agreement with the Banks; and no interest is paid on the current balance. In the case of advances, a special agreement is made in each case.

Since the Public Revenues Act of 1867, and by that of 1878, now in force, all public moneys in New Zealand are payable into the Public Account in the Government Bank by the officer receiving them, day by day; and only in cases where this .cannot conveniently be done, the Treasury is empowered to direct in what manner the Collector shall pay his collections into the Public Account. In practice, nearly the whole of the public moneys are lodged in the several branches of the Government Bank —the Bank of New Zealand—daily; and are transmitted, as required by the Act, weekly to the Bank at the seat of Government. The Railway receipts are dealt with in the same manner, except where there is no local Bank, in which case the money is transmitted in bags to the nearest branch Bank. Where an officer is allowed to retain fees in lieu of salary, a voucher to the amount of the fees is periodically passed to credit of the officer as salary, and paid into the Public Account as revenue. The exceptions to this rule are as follows : — The Postal revenue is accounted for by the Postmasters, along with their Money Order and Savings Bank receipts, to the Postmaster-General, who pays in the estimated revenue collected in his department, every week, to the Public Account, and the correct balance at the end of the month. The Telegraph Department having been recently united with that of the Post Office, the Telegraph receipts are now dealt with in the same manner; and certain other small branches of revenue, such as license fees, which are collected by Postmasters, are subjected to the same rule. What are called "trust moneys " in other colonies, are in New Zealand paid into the Public Trust Office, and not into the Public Account; and the Public Trustee accounts separately to Parliament. The Government Insurance moneys, similarly, are not paid into the Public Account, but to the account of the Commissioner of Government Insurance, who accounts separately to Parliament. The same is the case with the Sinking Funds which are paid to the Commissioners of the Public Debt Sinking Funds. By agreement with the Bank of New Zealand made last April, the Government is to deposit all moneys with that Bank, having the right to place any sum in excess of a balance of £300,000 on fixed deposit with other Banks or in other securities. For remittances within the colony the Bank is to be paid one shilling for every hundred pounds, and to make all payments within the colony, including those of debentures and coupons, without other charge. The Bank allows interest on the daily balance, when on the whole less than £80,000, 4 per cent.; when above that amount, 3 per cent.; —on the daily balances in London, \\ per cent. under the Bank of England rate, but not exceeding 5 per cent., and on no deposits in excess of £400,000; —on fixed deposits in the colony, at rates to be agreed on; and on fixed deposits in England, at 3 per cent, for six months and 4 per cent, for twelve months, up to £300,000. The Bank is to make advances on securities

New Zealand.