The number of bags and packets sent in transit through the Post Office amounted to 72,955, viz., 560 less than in 1913. The parcel receptacles handled showed an increase over the previous year, the figure being 11,998 as compared with 10,602. Full details appear in Table I.

3.-REGISTRATION AND PARCEL BRANCH.

Registered articles and parcels handled in Hongkong amounted to 910,496 as compared with 1,026,558 in 1913. The decrease of 116,062 articles and parcels handled is mainly due to the war but the entry of China into the Postal Union in September and the consequent transmission of closed mails to various ports in South China direct to some extent account for the decrease.

Registered articles despatched and received viâ Siberia totalled 58,995 as compared with 74,323 in 1913, 70,002 in 1912 and 54,207 in 1911. The decrease of 15,328 articles as compared with 1913 is accounted for by the less frequent arrival of steamers owing to the absorption of a large number as transports and merchant cruisers. A detailed statement is given in Table II.

4. REVENUE AND EXPENDITURE.

Table III contains a statement of Revenue and Expenditure for the year. Revenue amounted to $398,426.38, a decrease of $40,762.99 as compared with the year 1913. The decrease in the sale of Postage Stamps amounted to $42,065.35 due to the war, and the increase under the head Boxholders' Fees was brought about by the introduction of Private Letter Boxes in the Chinese Branch, which new source of revenue yielded $1,092. The expenditure amounted to $371,646.06, a decrease of $250,941.45; but it must be borne in mind that large claims in respect of the Hongkong share of the Peninsular and Oriental contract and the Siberian mail service had to be met in 1913. The balance of revenue over expenditure amounted to $26,780.32.

5.-MONEY ORDERS.

The expansion of business in the Money Order Department, reported from year to year, has this year been unfortunately arrested on account not only of the war in Europe but also of the Revolution in Mexico. The decrease of £17,104 consists mainly of the cessation of Chinese remittances from the United Kingdom, Mexico (through the intermediary of Japan which has a direct line of steam communication with that country), the Straits, Burmah and the German Possessions in the Pacific; and it likewise accounts for the decrease in the payment of British Postal Orders (£1,278) which, as stated in last year's report, are extensively made use of by Chinese in the various British possessions.

There is also a decrease of £1,856 on the sale of British Postal Orders, due no doubt to the many calls on the people on account of the war, but also in a lesser degree to the absence of the Fleet and

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