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To produce the statistics on proper lines will mean increased cost, but the increased value and usefulness imparted to them should more than compensate their cost. Every one will readily admit these statistics are absolutely necessary, and it is false economy not to produce them in the form in which they are most valuable and useful. I most strongly recommend that the defects in our trade statistics should be corrected, and the tables brought more into line with those of Australia as early as possible. Half of the current year 1913 is, however, past, and no alteration can very well be made for this year. As, however, the change recommended will involve a very considerable amount of initial work and organization, I suggest that the time between now and the end of the year be utilized in making the necessary preparations to put the statistics on a proper footing as from the Ist January, 1914. To this end I make the following suggestions : — (1.) That the Government immediately notify all importers that on and after the Ist January, 1914, they will be required to declare, on the Customs entry form, the country of origin of all goods imported into New Zealand. (2.) That the Secretary of Customs and the Government Statistician confer and — (a.) Compile the standard classification of imports and exports to be adopted; (b.) Draw up all the forms, instructions, &c, necessary to give effect to the rearrangement ; (c.) Arrange the methods as to where and how the statistics can be most economically compiled and dealt with ; (d.) Recommend the frequency of publication, the matter and manner of each publication, which it is considered will best meet the needs of the community; (c.) Consider and deal with any other matter necessary for bringing the new arrangement into operation on the date specified, and furnish a report on the whole matter, with their recommendations, in sufficient time to allow of their adoption before the end of the year. 6. Industrial and Economic Inquiries. The Commonwealth Statistician has recently created a branch —which is conducting inquiries into the industrial conditions generally —prices, wages, cost of living, unionism, employment and non-employment, strikes, &c. —of a kind not hitherto attempted in Australia. The field is a new one, but the statistics and facts sought are most important to the welfare of the country, especially in view of the development and trend of modern legislation. I recommend that the Government Statistician should, as early as possible, institute similar inquiries in New Zealand, and that the Labour Department here should be asked to co-operate and assist in the collection of the data required for such investigations. To assist in the work the Commonwealth Statistician has a special correspondent in each of the principal towns in Australia, but this should not be necessary in New Zealand if the Labour Department co-operates and their permanent officers in the various districts are utilized. 7. Statistical Publications. Our principal publications are the Official Year-book and Statistics volume. Both of these publications can be improved if our production and trade statistics are put on a better footing a3 previously recommended. In addition to the above the New South Wales and Commonwealth offices issue a monthly summary of statistics, which is very useful and much appreciated. If our statistics of production and trade are put on an improved footing I recommend that a similar summary for New Zealand be issued from this office. The cost of such a publication would probably be about £300 per annum, but, as it would give publicity to all statistics as soon as they were available, some saving could be effected to meet the extra cost by discontinuing the issue of Year-book advance sheets. 8. Anthropometric Statistics. Statistics as to height, weight, and chest-measurement, &c., are being compiled by the Commonwealth Statistician from data obtained in the medical examination of those registering under the compulsory military -training system. As all our youths will be passing through the New Zealand Territorials under our Defence Act, similar statistics as to their physique could also be obtained in this way, which should be of great value and interest in future. I should be glad to have your authority for inquiring into the matter and ascertaining the cost, &c, with a view of taking the work up providing the expense was not too great. 9. Library. I found that the Statistical Offices in Australia have well-equipped libraries of economic, social, and technical works. The Commonwealth Statistician has a particularly fine library, and spends annually £100 in the purchase of new books. I am obtaining a list of some of the most useful works, and as soon as I have ascertained the cost, I propose to ask for authority to obtain these as a nucleus of a library for our Statistical Office here. 10. Statistical Staff. As already stated, the Statistical Offices in Australia are well organized, and staffed considerably in excess of the New Zealand Office. The importance attached to the strength and efficiency of the Statistical staffs can be well illustrated by quoting the salaries of the senior officers in the Commonwealth Office: Statistician, £1,000 per annum; sub-heads of branches—First, £460 per annum; second, £432 per annum; third, £400 per annum; fourth, £400 per annum;