D.—No. 1A.

General Post Office, Auckland New Zealand, 21st November, 1864. 8 ie, — I have the honor to present to your Excellency, the Fifth Report on the Postal Servioe of New Zealand. I have, &c, _. _ _ Thomas B. Gillies. His Excellency Sir George Grey, K.C.8., Postmaster GcneraL Governor of New Zealand, &c, &c.

REPORT. The general progress of the Colony during the past year has been fully shared by the Post Office Department. To meet the public requirements 89 new offices have been opened, and 25 closed, leaving an increase of 64 Post Offices, being about 25 percent, on the total number. The correspondence has, however, increased in a much larger ratio, 3405.380 letters having passed through the various Post Offices during the year ended 31st December, 1863, against 2120, LS3 for the year ended 31st December, 1862, being an increase of about 60 per cent. The number of newspapers conveyed by post lias also increased during the same period from 2064,123 to 3307,669, being an increase of 6i per cent.- The revenue has likewise increased from £22,710 14s. 3d in 1862, 10 £32,32;) Is. lid. in 1863, being an increase of 42 per cent. The increased amount of correspondence has, however, caused more than a corresponding increase in the departmental expenditure, exclusive of conveyance of mails, the departmental expenditure having been £25,001 12s. Id. in 1863, against £15.217 14s. Id in 1862, being an increase of 64 per cent. The current year will, however, show a considerable increase of revenue without a corresponding increase of expenditure. The cosh of the conveyance of mails baa largely increased, both as regards the cost of inland conveyance and steam services, although in both res] ects the cost per mile has been reduced. The expenditure forinlind carriage for 1868 has been £19,138 Od. 9d., against £6,864 ss. 4d. for the year 1862. The expenditure for ste.itn services for the year 1863 has"been £47,080 17s. 4d., against £32,040 Is. 3d.* for the year 1862, whilst for the current your the expenditure under this head will amount to about £ 60,000. Inland Communication. The Mail Contracts at present existing in the various provinces arc giveu in the Appendix hereto. Depaetmental Arrangements. , In accordance with the recommendation of the late Postmaster-General, and the resolution of frie House of Representatives last session, an Inspector of Post Offices has been appointed, the honorable J. C. Crawford, Esq., who has been engaged travelling through the several Provinces, inspecting the various Offices, since sth January last, with the exception of three months during which he was detached as Resident Magistrate at the Pelorus Gold-fields. Sufficient lime has not yet elapsed to enable the beneficial results ofsneb inspections to become very marked, but there is no doubt that the periodical visits of that officer will tend to promote increased efficiency in the various Offices. It having been found that the advantages connected with the appointment of a Secretary in the Dunedin Office, and also in the Auckland Office, were by no means equivalent to the expendi ure, these Secretaryships have been abolished. The Secretary of the Dunedin Office, Mr. Gray, a gentleman of long experience in the Post Office Department in the Home Country, as well as"in the Colony, lias been appointed SubInspector. He has been removed at present to the Auckland Office, lo I us'ist in getting that < Iffice into a thorough state of efficiency, a duty for which his intimate knowledge of the practical working and details of the Post Office system peculiarly qualifies him. The Secretary of th< Auckland Office has been appointed Chief Postmaster at Taranaki, on the resignation of the late en ei< nt Postmaster,Mr. 8. "mith. During the pastyear considerable additional postal facilities ha\ e I c en afforded to the public by the

FIFTH REPORT ON TIIE POSTAL SERVICE OF NEW ZEALAND, BY THE POSTMASTER-GENERAL.