2.
51
measure while the vouchers were turned back for detailed examination The incompletely signed cheques were, therefore, mere-
ly evidence of the extreme caution practised in the Treasury.
With reference to paragraph 24, the Auditor has
previously stated that he would be completely satisfied if the cheques were posted to the payees on the last working day of the
year.
Exactly what this involves will be apparent when it is explained that the system of paying out at the Treasury requires the personal appearance of the payee or his authorised representa- tive. This has been the custom within living memory, and in deal-
ing with Chinese individuals and firms every precaution must be
taken to ensure that the money reaches the proper persons.
The
difficulties in the way of identifying payees in this Colony can-
not be appreciated without actual experience. Firms are created
and dissolved overnight, and office addresses are not always
reliable in some cases merely a place to hang a signboard, or
a shop which will receive letters. Further the ease with which bank accounts are opened and crossed cheques negotiated, due largely to the native banks and the compradore system, robs the crossed cheque of the security which it possesses in other
countries and constitues a further reason for avoiding trans-
mission by mail.
For these reasons the Treasury has always insisted that payees shall call in person for their cheques and no payment is made until payees are identified and duly authenticated receipts
obtained.
No Treasurer has so far had the temerity to ignore
the peculiarities of local conditions and institute a routine
which is suitable and satisfactory in places like London. It would be entirely reprehensible for the Treasury to follow its present practice throughout the year and on the last day adventure some $400,000 worth of cheques through the local mails.