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By comparing the figures for the periods under review it will be seen that expenditure has been reduced by £8,579 Bs. 9d., and that stock on hand at the termination of period ending 1917-18 is £5,108 Bs. 3d. Therefore it will be seen that a direct saving of £13,687 17s. has been effected during the past year, notwithstanding the increased prices of supplies. Against this saving, working-expenses have increased £300, such increase being caused through promotions and additional staff. In addition, a saving of £120 13s. lid. has been effected by the manufacture of ointments, &c, as shown in attached schedule. During the period under review a system was inaugurated whereby all prescriptions for military patients in Wellington have been dispensed. The patients include returned soldiers under treatment, soldiers on sick-leave from the respective camps, and soldh rs stationed in Wellington. This method of di pensing has proved most satisfactory, and during the period 1917-18 2,822 prescriptions have been dispensed, with an approximate saving of £423 6s. A garrison dispensary was established in Auckland on the Ist January, and is working most satisfactorily. The estimated monthly saving in this direction is £25. Garrison dispensaries were also established at Christchurch and Dunedin during last month, and it is considered that a further saving will be effected. The system of obtaining our supplies through the Army Contractor in England is not only economical, but it has enabled us to meet all the requirements of the various hospitals, transports, &c. At present there are sufficient stocks on hand to meet our requirements until the end of the year 1918-19, and requisitions have been submitted for next year's supply, delivery being promised by December next. List of Goods manufactured in the Medical Stores, Year ending 31st March, 1918. (Showing the comparison in cost of manufacture between the said stores and local wholesale houses.) . .; , Store Price. Local Price. Article. „ , „ , £ s. d. £ s. d. 41 lb. Ung. gallae co. .. .. . . 16 19 3 17 8 6 167 lb. Ung. acid boric . . .. .. 10 3 2 14 12 3 1,3311b. Ung. sulphuris .. .. .. .. 830 13 70 18 lb. Ung. antiseptic .. .. .. .. 450 610 0 241b. Ung. zinci oxid. .. .. .. 504 811 0 28 lb. Sps. chloroform .". .. .. .. 440 46 10 638 lb. Tinct. iodi. .. .. .. 21 3 9 103 13 6 531 lb. Tinct. quin. ammon. .. .. .. 683 10 00 12 doz. Suppos. acid tannic .. .. .. 066 0 18 0 12 doz. Suppos. plumbi co. .. .. . . 0 6 6 018 0 24 doz. Suppos. morph. .. .. .. .. 0 13 0 1 16 0 4 lb. Syr. tolut. .. .. .. .. 014 040 701b. Lin. saponis .. .. .. .. 111 7 4 7 6 5 lb. Glycer. acid tannic .. .. .. 014 6 100 5 lb. Ung. hyd. ammon. .. .. .. 063 015 0 1 lb. Ung. acid chrysophanic .. .. .. 029 036 1 lb. Ung. capsici .. .. .. .. 020 030 1 lb. Ung. iodi. .. ~ .. .. 0 2 6 0 3 6 1J lb. Glycerine bellandon .. 074 0 15 0 2 lb. Collodion salicylas .. .. .. 010 0 015 0 12| doz. Triangular bandages .. .. .. 1119 310 7 6 lb. Emulsio 01. morrhuae .. .. .. 010 0 012 0 4 gal. Syr. simp. .. .. .. .. 0 7 6 016 10 500 ' Bougies, protargol .. .. .. 087 220 1 lb. Pigment, Mandl. .. .. .. 019 036 24 W.Q. stock mists. .. .. 15 13 6 22 13 6 2 gal. Lin. A, B, C .. .. .. .. 2 0 6 212 6 102 4 7 222 18 6 102 4 7 Amount saved .. .. .. .. £120 13 11 25. Officers' Training Corps. Otago University. This unit was established in August, 1916, on the advice of the Director-General of Medical Services, Surgeon-General R. S. F. Henderson, C.8., M.8., K.H.P., A.M.S., and the Director of Military Training, Lieut.-Colonel J. L. Sleeman, 1.G.5., whose experience as a founder of the Officers' Training Corps in England proved of great value. The corps is commanded by Major J. Malcolm, and since its formation has performed very valuable work. The corps was inspected during the past year by His Excellency the Governor-General, the Commandant of the Forces, the Director-General of Medical Services, and the Director of Military Training. Thirty-six members of the corps have gained certificate "A" and forty-three certificates "A" and " B," which qualified these candidates for commissioned rank and for certain other advantages to the holders.

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