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on the Head of Land Sales.

The examination of the Revenue was conducted by the Local Auditor and was practicable in detail.

The adoption of new Books greatly facilitated the collection of the Revenue and it takes place at the Harbour Office instead of at the Treasury as heretofore, and it is found that few, if any, arrears occur under this system.

I am informed that a Commission has lately been deliberating in the Colony upon the subject of the arrears of Squatter Licences with a view of introducing a better system of collection, but I have not yet been aware of the conclusions arrived at.

I am informed by the Local Auditor that great care and attention are exercised by the Collectors of Revenue in the collection and auditing of the accounts.

Owing to a change advocated by this Department, the collection of Hospital fees now takes place at the Harbour Office.

I have caused the Colonial Government to be informed of the system in force in this Country for destroying spoiled stamps and I learn with satisfaction that the Imperial

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