F.—l.

The amount payable to the Eailway Department for the conveyance of mails was £42,457 12s, against which the sum of £30,426 6s. was recovered for the postage on railway correspondence, for private-box rents, transmission of railway telegrams, telephone-exchange subscriptions, and maintenance of railway telegraph-wires. £9,836 was also paid by the Post Office on account of the salaries of railway officers who also act as Postmasters and telegraphists or telephonists at combined offices. There was a balance in favour of the Eailway Department of £21,867 6s. 53,278,875 letters were posted, equal to 66-78 letters to each head of the population, an increase of 4,908,059. The total increase on all letters dealt with was 5,144,991. The number of forwarded telegrams of all codes was 4,559,304, an increase of 391,323. 80 post-offices were established (including 7 re-opened). The number of post-offices open at the close of the year was 1807. 367,207 money-orders, for £1,277,059 2s. 3d., were issued ; and 286,642 orders, representing £1,117,137 12s. Bd., paid. 616,264 postal notes, of the value of £191,904 135., were sold. £5,069,619 6s. 2d. was deposited in the Post-Office Savings-Bank, and £4,708,771 lis. 2d. withdrawn. The total amount to credit of depositors on the 31st December last was £6,883,787 ss. 9d., as compared with £6,350,013 9s. 2d. at the close of the previous year. 1,137 inland mail-services (excluding services by railway) were in operation during the year. At the close of the year there were 7,749 miles of telegraph-line, and 22,672 miles of wire. The net expenditure on telegraph construction was £68,578 7s. Bd. There were 10,633 telephone-exchange connections on 31st March last. The subscriptions received amounted to £62,151 Bs. lid. A comparison of the revenue and expenditure year by year for the past ten years is shown in the table below. The figures for 1881-82—the first year after the amalgamation of the Post-Office and Telegraph services—and 1891-92 are also given. Statement showing Bevenue and Expenditure of the Post and Telegbaph Depaetment for the Ten Years ended 31st March, 1903, and for the Years 1881-82 and 1891-92.

The balance of revenue over expenditure for last year was £37,284 7s. 3d., as compared with £22,816 12s. 6d. for 1901-1902. Adding the value of the free official correspondence and Government telegrams, there is a credit balance on the year's transactions of £135,670 10s. Id.

II

Item. Postal. Telegraph. Total. Expenditure. Salaries (classified officers) Salaries (country Postmasters and telephonists and contributions to railway officers) Conveyance of mails by sea Conveyance of inland mails Conveyance of mails by railway Money-order commission credited to foreign offices Maintenance of telegraph-lines Miscellaneous Telegraph-cable subsidies £ s. d. 92,512 4 0 18,400 4 1 53,283 17 5 47,386 17 7 18,351 13 0 1,954 4 0 £ s. d. 164,337 7 0 15,400 6 0 £ s. d. 256,849 11 0 33,800 10 1 53,283 17 5 47,386 17 7 18,351 13 0 1,954 4 0 22,898 14 1 53,107 12 10 181 10 0 27,558' 9 4 22,898 14 1 25,549 3 6 181 10 0 Balance of revenue over expenditure (Postal) .. „ „ (combined Department) 259,447 9 5 43,156 11 4j 228,367 0 7 487,814 10 0 37,284 7 3J Totals £302,604 0 9J £228,367 0 7 £525,098 17 3J

Year. Revenue. Expenditure. Balance of Revenue over Expenditure. £ 234,529 s. 8 d. 0 £ s. 233,291 10 d. 4 £ s. d. 1,237 17 8 .881-82 891-92 320,058 1 3 268,343 1 1 51,715 0 2 .893-94 .894-95 .895-96 .896-97 .897-98 898-99 .899-1900 900-1901 .901-1902 .902-1903 344,676 12 3 357,449 14 9 365,727 6 5 392,117 1 0 408,383 15 3 445,770 7 1 488,245 16 4 503,835 19 5* 488,573 1 111 525,098 17 3£ 293,704 7 3 299,971 1 4 332,325 4 8 353,699 14 5 364,403 3 1 390,197 8 6 390,448 1 7 418,271 16 11 465,756 9 5 487,814 10 0 50,972 5 57,478 13 33,402 1 38,417 6 43,980 12 55,572 18 97,797 14 85,564 2 22,816 12 37,284 7 0 5 9 7 2 7 9 6i 3* Total for ten years £523,286 14 71 ' 2