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the vote disappear more rapidly than it otherwise would have done. I would recommend that for the future, should the Council place large sums on the Estimates for works requiring such purchases, a vote for this purpose should be specially made, as well as a vote for tools, tents, and other articles constantly required to be purchased for the use of the various public works in the outlying districts. A better account could be thus kept and given of the same.

In order to facilitate the payments for Public Works now actually in progress or contracted for, and to meet the requirements of the Audit Act, it has been found necessary to carry to the account of a Reserve Fund all such surplus funds as still remained to the credit of any vote at the end of the Financial Year, in any way compromised by a contract, or out of which payments would have to be made before any vote could be passed by the Council. The necessity for this will at once be seen. A separate account will be kept of such fund, and forwarded to the Council at its next sitting. The amount is £6,945 1s. 6d., and consists of the following items:—

The amount to the credit of the Provincial Government after the above sum has been deducted is £23,754 12s. 3d. The balance at the end of the previous Financial Year was £4,662 18s. 5d.

In the department of "Crown Lands" the salary of the Commissioner still remains to be paid for the months of December, January, and February. The gentleman who holds the office, I understand, wishes the Council to fix the remuneration for those months. The office of Provincial Secretary was vacant during this period.

In the Department of "Medical," the amount voted proved insufficient, and two months' expenditure had to be charged to the account of "General Contingencies." The Hospital Attendant received for fees, &c., from various patients during the Financial Year, the sum of £141 9s.

The sum of £1,800 was voted for "General Contingencies," the amount has barely proved sufficient. Three and a quarter per cent. I consider not a sufficient margin for amounts that are merely aggregate.

"Interest on Debentures." In going over this calculation, I find the General Government has not charged the province of Marlborough with its share of the exchange consequent on the transmission of the Interest to the holders of Debentures in Sydney. It amounts to £5 17s. 1d. per annum, and the amount in arrear consequent on this omission is £12 13s. 7d. to the 31st December, 1861. The particulars of this were given more fully in my report on the first quarterly balance sheet.

"Education Loan, £150." This makes the fifth instalment paid towards the liquidation of the sum of £3,000 borrowed from the Nelson Trust Funds.

"Explorations, £500." This amount has been expended, partly in exploring for roads to the West Coast, for Gold in various districts, and in searching for Coal.

"Riwaka Swamp Drain," and "Maitai River Banks." Both these items were voted in consideration of equivalent sums being raised. In the first instance the Road Board has undertaken the collection of the required sum, and with respect to the Maitai River, the sum is still being collected and expended.

"Provincial Steam Service, £1,500." Of this sum £333 6s. 8d., was paid to the owners of the "Tasmanian Maid," £333 6s, 8d., to the owners of the "Lyttelton" for four months' service, and £166 13s. 4d., which has been carried to the Reserve Fund account, will have to be paid in May next to the owners of the same vessel.

In no instance have any of the votes been exceeded.