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declined to allow the money to be allocated as the Treasury wished to allocate it. A deadlock has occurred, and the consequence is that a large amount of public revenue is hung up. There is this £8,000 hung up, and a very much larger sum which is in the same requisition. 69. Has that arisen after what took place in this Committee on the first day ?—The action has taken place after the first meeting of the Committee. 70. Mr. W. Fraser.] You say that the money has been paid to you during this month ? — During last month. 71. I understood from the Public Trustee that the cheque from his department had been countersigned by the Audit Office : has that been done ?—I do not think so. The Controller and Auditor-General : The Public Trustee's books are audited after the payments have been made. The Public Trustee : Every item has to be approved. 72. Mr. W. Fraser.] Has this been approved ?—The Auditor-General reports not. 73. You told us you could not allocate the money ? —Yes, we have received the money, but we cannot allocate it.

Approximate Cost of Paper. —Preparation, nob giveu ; printing (1,375 copies), £5 10s.

By Authority: John Mackay, Government Printer, Wellington.—:l9ol.

Price 6<i.

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