205

in the Treasurer's balance to an equivalent
amount. This system has been lately discon-
tinued, and no payment is now made at the
Treasury without an order from the Superin-
tendent.

Q. The Provincial Treasurer states, in re-
ference to the sums paid to you on the 29th
and 31st March, 1860, amounting to £1100,
that he does not receive credit for them in
your statement of deficient balances?

A. The payments alluded to were duly
passed to the credit of the Treasurer before
the close of the quarter ended 31st March,
1860, and are taken into account in making
up my statement of deficient balances which I
now hand in.

No deficiency prior to 31st December, 1859.
Apparent deficiency 31st December, 1859,
£365 7 2
Do. 31st March, 1860...1324 11 10
Do. 30th June, 1860...1251 0 3
Do. 30th Sept., 1860, no deficiency.
Q. State the apparent deficiency on the
28th February, 1860.

A. £1010 9s. 5d.

Q. Do the balances which you state to be
deficient include those of the Road and Edu-
cation Boards?

A. They do not.

Q. I observe that your statement of deficient
balances is guarded by the term "apparent de-
ficiency." Do I understand from your expla-
nations that the books in the Treasury were
kept in such a manner that you cannot posi-
tively determine the correct cash balance?

A. I have used the term "apparent" in re-
ference to deficiencies, to express that the
money was not in the Bank, and it was not
possible to ascertain the correct cash balance
as the books were then kept. I would state
that each day's cash transactions are now
shewn, and the correct balance can at once be
seen.

Q. According to the statement furnished by
Mr. W. B. Morris, one of the Auditors of
Public Accounts, the apparent deficiency of
the Provincial balance on the 15th May, 1860,
was £1877 16s. 11d. Will you state the ap-
parent deficiency after deducting from the ba-
l
balance of the Treasurer's Cash book, the several
issues of money, for which the Treasurer had
not at the time been credited.

A. £1215 14s. 7d.

Q. How were the deficiencies in the balances
made good?

A. By paying the parties named in the Su-
perintendent's warrants in cash.

Q. Furnish a statement of the cash pay-
ments to which you allude; to which any
funds given to you by the Provincial Trea-
surer in cash, without cheques having been
drawn on the Bank account?

A. Furnished accordingly, viz.:—
Cash Payments.......................£365 19 8
Petty Cash............................. 650 0 0

£1015 19 8

Q. By whom were these cash payments
made?

A. By me out of cash given by the Provin-
cial Treasurer.

Q. Did you bring this cash to charge in
your Petty cash account?

A. No, with the exception of the sum of
£650 at the foot of the statement of cash pay-
ments.

Q. Where then did you shew the transac-
tions?

A. In the Treasurer's Cash Book.

Q. Did Mr. M'Glashan give you no expla-
nation as to what these monies were?

A. He gave no explanation.

Q. Did you not enquire of the Treasurer as
to what account these receipts were to be
placed, whether to revenue account or other-
wise?

A. No, because he gave them expressly to
make payments.

Q. If he had drawn them from the Bank,
could you not have discovered this on reference
to the Bank Pass-book?

A. At that time the Bank pass-book was
not in my charge, and I seldom saw it.

Q. Did you think these monies were paid
to you in order gradually to make up the de-
ficient balances?

A. I did think they were.

Q. Did you keep a memorandum of them,
or give Mr. M'Glashan a receipt for them;
and can you state the several amounts?

A. I kept no memorandum of them, nor
gave any receipt for them. The cash given
me by Mr. M'Glashan was in small sums, with
the exception of the sum of £650.

Q. In your Petty cash-book there is a sum
of £70 16s. 8d. brought to charge on 30th
October, 1860; from whom did you receive
the money?

A. From Mr. M'Glashan.

Q. On the 3d October, 1860, it appears by
the Bank book that you received £300; where
will this be found to charge in your petty cash
account?

A. This money was not for petty cash. It
was an advance for wages; the previous
practice had been to show it in the Bank book
as a payment on account of "Wages, Public
Works."

Q. Mr. M'Glashan states, that on the 24th
October, 1860, he had made good the deficiency
of the public balance partly out of the petty
cash; did you pay over to Mr. M'Glashan
any portion of the petty cash which he could
have used about the date referred to for the
purpose stated?

A. I think not.

MR. JACKSON, Manager of the Union Bank
of Australia—Examined.

Q. Has the Union Bank discounted for Mr.
James Macandrew an accommodation bill of
Mr. John M'Glashan, which bill was retired
by the acceptor, Mr. John M'Glashan, and
when?

A. An acceptance of John M'Glashan to
James Macandrew & Co. at four months, £500,
was discounted in June, 1859, and renewed at
three months' date, discounted in Novr. 1859,
which latter bill was retired in cash—paid in
cash on account of acceptor four days after
maturity, namely, on 11th February, 1860. I
was informed by Mr. Macandrew that these
bills were discounted for the accommodation
of Mr. M'Glashan, pending the disposal of
cattle, which Mr. Macandrew stated had been
placed in his hands for sale by Mr. M'Glashan.

Q. Did Mr. Macandrew exhibit to you docu-
ments showing that he held stock of Mr.
M'Glashan as collateral security?

A. I have no recollection of having seen
any document showing that Mr. Macandrew
held stock belonging to Mr. M'Glashan as
collateral security.