F.—l

increase was at the rate of 15-98 per cent, per annum. It had been estimated that the reduction would involve a loss to the department of £10,374 for the first year, assuming the letters increased 10 per cent. Of the number of letters received from the United Kingdom during the four months ended April there was an increase at the rate of 9-68 per cent, per annum. The special letter rate via Brindisi and Naples was reduced to 6d. per half-ounce, and this will be further reduced to the universal postal union rate of 2fd. on the Ist October next. Concurrently with the reduction of the letter postage an exchange of twopenny post-cards with the United Kingdom was established. A special post-card has not as yet been issued in the colony ; the Inland-Australian card, having a penny stamp affixed, is accepted in the meantime. To provide for the altered rate of postage to the United Kingdom stamps of the denominations of 2-Jd. and sd. were issued. The following is a description of the stamps : — Twopence halfpenny. — Queen's head in profile, enclosed in an oval, on line groundwork, encircled by the words "Postage and Revenue." At the base the words "New Zealand," and immediately below, the words "Twopence halfpenny," with the figures and letter "2Jd.," in white letters, dividing them. On each of the upper corners of the stamp a representation of an ocean-steamer. Printed in light blue. Fivepence.—Queen's head in profile, in relief, enclosed in a tablet, the figure and letter "5d." printed in side tablets on white ground; and on a ribbon design the words " New Zealand Postage and Revenue." The border of the stamp of filigree pattern. Printed in silver-grey. The 2-J-d. stamp was issued on the 27th December last, and the sd. one on the Ist February. The 2|d. stamp is from a design by Mr. Cousins, of Wellington, and the sd. stamp from a design by Mr. A. W. Jones, of Christchurch. Both stamps were engraved by Mr. Cousins, and the electrotypes were manufactured in the Government Printing Office. A series of special stamps for prepaying the correspondence of the Government Life Insurance Department have been permitted to be brought into use in lieu of the ordinary postage- and revenue-stamps. The stamps are six in number, of the respective denominations of -Jd., Id., 2d., 3d., 6d., and Is. They are all of the same design—a lighthouse in the centre on lined groundwork, and on the rays of light from the lantern the words "State security." The letters " V.E." flank the tower. Above the lighthouse are the words " Government Life Insurance," flanked by the initials " N.Z.," and below, the word " Department." " Postage " and the value in words appear on the sides of the stamp, and the value in figures in the lower corners. The colours are—-J-d., mauve ; Id., dark blue; 2d., Indian red; 3d., brown ; 6d., light-green ; and Is., carmine. The prepayment of insurance correspondence by special stamps is the outcome of a difference of opinion between the Insurance Department and the Post Office as to the annual postage, calculated on periodical countings, to be paid the Post Office. The matter in dispute was referred to an arbitrator, but the Insurance Department declined to recognise the award, and decided to prepay its correspondence by stamps. The acceptance of alien stamps by the Post Office is unique. It was urged that stamps of a distinctive character would be less likely to be fraudulently used, while they would also afford a means for advertising the Insurance Department. Parcel-post. The increase of business was not equal to that of the previous year. The increase, however, gives promise of a continued and satisfactory expansion of the parcel-post system. The minimum rate on inland parcels has been reduced from 7d. to 6d., with a correspondingreduction in each successive rate. The rate for a parcel of the maximum weight of eleven pounds is now 35., in the place of 3s. Id. The following table shows the number and weight of parcels posted and the number delivered during the years 1888, 1889, and 1890 :—

VI

1888. 1889. 1890. Postal Districts. Pos Number. Posted. sted. Weight. — Delivered. Pc Number. isted. Pos Number. Posted. sted. Weight. j ~ Delivered. Weight. Auckland .. Thames .. New Plymouth Gisborne .. Napier Wanganui Wellington Nelson Westport .. Greymouth Hokitika .. Blenheim Christchureh Timaru Oam'aru .. Dunedin .. Invercargill 15,267 886 722 694 3,810 2,794 16,591 3,058 674 1,496 922 1,165 10,893 1,267 650 16,594 2,295 lb. oz. 39,276 0 2,091 11 1,744 0 1,731 11 9,787 6 6,044 0 42,627 8 8,405 14 1,497 2 3,840 13 2,517 12 2,603 10 29,534 3 2,740 8 1,417 7 44,115 4J 4,748 0 204,722 13J 8,343 1,776 1,644 1,508 5,000 5,229 10,500 2,286 1,474 2,699 1,698 2,711 5,692 2,049 1,434 9,709 2,911 19,468 1,199 878 770 5,354 3,344 20,856 3,767 868 1,630 1,182 1,785 17,370 1,760 854 20,363 3,138 lb. oz. 53,351 11 3,053 1J 2,341 14 1,909 0 13,802 2 7,862 8 55,910 9 11,013 13A 1,859 14 4,024 Hi 3,394 5 4,008 15 48,403 14 3,807 1 1,873 14 57,366 11 7,722 12| 13,186 2,651 2,131 1,991 6,747 7,111 14,088 3,295 2,091 3,449 2,007 3,903 8,524 2,899 2,100 11,439 3,932 21,882 1,491 1,007 938 0,265 4,035 25,893 4,723 1,077 2,509 1,413 1,846 19,383 2,018 859 22,500 3,458 lb. oz. 57,912 10 3,661 8 2,674 3 2,570 6 17,075 14 9,503 8 74,544 2 13,370 7 2,332 4 6,243 13 3,924 5 4,357 11 58,703 4 4,774 8 2,123 3 65,329 13 7,477 5 17,100 3,147 2,748 2,307 7,659 9,195 17,110 3,723 2,701 4,244 2,173 4,574 10,422 2,742 1,701 13,271 3,88S Totals 79,778 104,586 J281,766 13 66,723 91,544 1121,292 336,043 12 108,765 The table ine The number ( .udes in! if inlanc and, Uniti I parcels p< id Kingdi ;sted anc im, and Australia! delivered was—pi i parcels. Dsted, 11 ,613; [elivered, 9.' :,730,