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-what sums are due to the Nativos on account of purchases completed; full information on these points can only be obtained from the Chief Commissioner, Mr. M Lean. _ T ~ ~ 63. What is your view with regard to the claims of the Cape of Good Hope, Isew South Wales, the Home Government, for pensioners, immigration, &c. ?—The New South W aies debt is paid. The claim of the Cape of Good Hope, about £2000,. I consider a doubtful claim, and no application lias been made on the subicct since 1812. The claim of the Home Government for immigration, about £10 000 I do not think is one likely to be pressed on the Colony, though I think it is a good chum. With regard to the claim on account of the pensioner force, that portion which I consider chargeable to the Colony namely, £6300, on account of passages ot pensioners, has been liquidated, the rem^ndm - I do'nS thiidc is a fair'claim -gainst the Colony. There * also the principal of Scott s Tlehpntiirps ismipd at amounting to £3070. .. 64. Would you be good enough to give the Committee a general view of the capital account of the Bank of Issue ? —I will prepare it for the Committee. zt_ • 4. 65. What do you conceive is the fair working balance necessary to be in hand for the requirements of the General Government? —Abont £6000. „ . , [The Auditor-General then handed in a statement, marked A, explanatory of certain apparent discrepancies between the totals of amounts as shown in the financial statements of 1855, and the ..financial statements sent down by the Governor m Message No. 5 of the present session.] Wednesday, 4th June. Examination of the Auditor-General resumed. TThe witness handed in to the Committee a copy of certain Instructions from the Lords Commis■sioncrs of Her Majesty's Treasury, on the subject of the Customs Accounts, lor these Instructions see Appendix B.] 66 Jia Mr Fitzh-rbcri.—Will you be so good as to state to the Committee what lias been done under the instructions just readr-Under the instructions of 1852, orders were received from England, the effect of which is, that subsequently to the sth July, 1853, the Customs accounts are all finally audited by myself, and arc not sent home to England. . . ~ 67 In your opinion does the audit of the Customs accounts in the Colony require any final approval in England, subsequent to the date of July, 1853 ?—ln my opinion it does not. 68.' Has then the audit of Customs accounts by the Colonial authorities been complete . les has. 69 131, the Chairman.— Then in your opinion has the Colonial Government the power now ot practically regulating the Customs accounts ?—The Committee seem to wish me to state whether i» my Son the Lords Commissioners of Her Majesty's Treasury have issued directions for the regulation of the Customs department in New Zealand and for the audit of the Customs accounts as requned by the 63rd Section of the Constitution Act. It will be seen from the correspondence I have just read that the Lords of the Treasury transferred the management of the Customs Department in Isew Zea a to Colonial Governmenf a short time before the passing of the Act and the. Lordships have o* two or three occasions, in the case of seizures since the passing of the Act, positively refused, in con sequence of such transfer, to interfere in the management of the Customs Department. frmser were legal at the time it was made, and has been recognised as complete by the Lords_ °± Ithe I c y subsequently to the passing of the Constitution Act, I am strongly of opinion that the Crown has institutionally no power except -by Act of Parliament to resume its delegated authority. 70 How were the Colonial Treasurer's accounts audited previous to the Constitution Act. I mean by audited, finally examined and allowed ? —I will first state, there are two heads under which the fiual examination of the accounts is divided: first, as to the liability of accountants in the o ony > secondly the liability of the Governor. The Commissioners of Audit in England have always raise their queries under the above heads. Those referring to the liability of the accountants only we sent either to the Accountant or to myself; those relating to the liability of the Governor were sen to him With respect to the first, U was understood generally, that if the Accountant adhere the reflations and instructions furnished for his guidance, he was relieved from liability; and wit rcspect to the Governor, he was held liable for all expenses in excess of the appropriations and. other W authoritylncurred under his written directions and warrant. Practically it forked in this wfv • 1 that if'the Governor's expenditure were in excess of the estimates, and he failed to obtain a suOTjlemmtary vote fm. the excess, it would have been necessary to obtain some Parliamentary authority for such excess, or he would be surcharged with it. Then, with respect to the accountants in tV,e Col onv I audited under the instructions of the Lords of the Treasury, the whole of their accounts ; but this audit'was strictly a preliminary one. The final audit was made by the Commi • rioners of Audit in England.