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would attach to him if anything went wrong. He would be prone to gradually gather a staff about him to do a lot of redundant minuting and recording, and, in short, he would be a fifth wheel to the coach." All that he could do is now done by the capable and courteous gentlemen who act as Private Secretaries to the Minister at much less cost, and the services of one of whom, anyhow, the Minister would have to retain. We have mentioned this at some length to show that we have carefully viewed the matter 1 from various angles, and we kept steadily in view the important future lying ahead of the Department of Defence. When this war is over some countries will fortunately be able to practically disband their armies and think of defence in the past tense, but not so New Zealand. From now onward defence is going to to be a costly business, and it is for that reason that for every pound spent the country must feel assured that it is getting twenty shillings' worth. in no perfunctory way we desire to record our cordial appreciation of the excellent services of Mr. A. E. Briggs, who has acted as Secretary to the Commission, and to Mr. W. 11. Russell and Mr. J. A. Smyth, who have so efficiently recorded the evidence and proceedings. These gentlemen have gone far' outside their prescribed duties to facilitate and assist our labours. We received valuable aid also from Major' C. E. Andrews, of Defence Headquarters Staff, who accompanied us in the districts to assist us in technical difficulties, and who saved our time and temper in many ways. Finally, we wish to emphasize that we were commissioned by Your Excellency to seek out faults and not extol virtues. We have looked for failings and recorded them herein ; but on the way we found admirable work of much greater quantity. Therefore, when its strong points are weighed against its weaknesses, especially bearing in mind how scarce competent and experienced assistance was, the Department may well comport itself proudly. In all essentials the Administration has succeeded. A few instances : — £40,000,000 spent and no frauds. An Army of 100,000 men excellently and fully equipped, and carried to the other end of the world. A declaration by the most responsible public man four years ago that this could be done by New Zealand would have been described as " rhetoric "—or worse. Supplies have been purchased well, and, although the actual purchasing has been done outside the Department, military officer's have been responsible that quantities have been sufficient and not excessive. The bargain for transport vessels is the most favourable that can be learnt of anywhere. Your sick and wounded have been tended with efficient and tender' care both here and abroad. At Gallipoli your hospital ships won such a name that the wounded of other Eorces counted themselves most fortunate to be transported on them. As to the Minister of Defence, for reasons that will occur to Your Excellency we shall refrain from expressing herein our opinion further than to say that we envy him in the years to come his memories and his reflections on the work he has done. Criticism will, during the war, specially rage about the Minister of Defence, and he may gather grim comfort from the knowledge that " Censure is the tax that a man pays to the public for being eminent." With respectful compliments we surrender' our commission into Your Excellency's hands. Robt. McC. Anderson. sth June, 1918. Chas. Rhodes. APPENDIX. REPORT OK COMMITTEE ON VARIOUS BRANCHES Oh' ADJUTANT-GENERAL'S DEPARTMENT. The Chairman, Defence Expenditure Commission. Wellington, Ist June, 1918. As requested in your memorandum of the 13th ultimo, we visited the various branches of the Defence Department dealing with members of the New Zealand Expeditionary Force, having in view the, criticisms made by Lieut.-Colonel T. W. McDonald, of the Wellington Military District, Mr. B. 0. Warnes, of the Base Records Office, and Lieutenant Macdonald, of the Office of the Director of Recruiting.