I.—ll

1905. NEW ZEALAND.

PUBLIC ACCOUNTS COMMITTEE (REPORT OF) ON THE PAPER B.-19, 1904 (CORRESPONDENCE IN A CASE UNDER SECTION 9 OF "THE PUBLIC REVENUES ACT AMENDMENT ACT, 1900," RELATIVE TO THE PAYMENT OF INTEREST ON DEBENTURES ISSUED UNDER "THE AID TO PUBLIC WORKS AND LAND SETTLEMENT ACT, 1900 "); TOGETHER WITH MINUTES OF EVIDENCE. (Mr. McNAB, Chairman.)

Beport brought up on the 22nd August, 1905, and ordered to be printed.

ORDERS OF REFERENCE.

Extracts from the Journals of the House of Representative!. Thursday, the 30th Day of June, 1905. Ordered, " That Standing Order No. 218 be suspended, and that a Committee, consisting of twelve members, be appointed to examine into and report upon such questions relating to the Public Accounts as they may think desirable, or that may be referred to them by the House or the Government, and also into all matters relating to the finances of the colony which the Government may refer to them; five to be a quorum: the Committee to consist of Mr. J. Allen, Mr. Colvin, Mr. E. G. Allen, Mr. Flatman, Mr. W. Fraser, Mr. Graham, Mr. T. Mackenzie, Mr. McNab, Sir W. R. Russell, Hon. Sir J. G. Ward, Mr. Wood, and the mover."—(Right Hon. R. J. Seddon.)

Wednesday, the 6th Day op July, 1904. Ordered, " That Paper No. 70.-B (Correspondence between the Audit and Treasury in connection with the Payment of Interest on Debentures issued under ' The Aid to Public Works and Land Settlement Act, 1900') be referred to tbe Public Accounts Committee."—(Right Hon. R. J. Seddon.)

REPOET.

Your.Committee has the honour to report on the above-mentioned paDer that the debentures fell due on the lst April, 1904, the banks being closed until the sth April. The debenture-holders claimed interest for the five days, and the Treasurer paid the same. This was questioned by the Audit Department, and the Solicitor-General gave his opinion that the payment was a proper and legal charge, and the payment was determined by the Governor. Seeing that a similar circumstance and position may again arise, your Committee therefore recommend that an amendment of the law be made, to the effect that when the day of payment is on a bank holiday under "The Banks and Bankers Act, 1880," payment of the debenture may be made on the succeeding business day, and interest to such day shall be deemed to be interest payable in respect to such debenture. 22nd August, 1905. Robert McNab, Chairman.