H.—3B

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exporting factories would be placed in a, much better position than those which continued to supply the local market, and it was accordingly decided by a number of factories throughout the Dominion to withdraw from the local market and export their output. To meet the position created butter was supplied to retailers and others concerned in the retail butter business from Imperial stocks held in cool stores, and under these arrangements 15,473 boxes were sold, with a total value of £61,598 17s. lOd. A similar position has not arisen in connection with the purchase for the 1918-19 season, in view of the fact that the arrangements in connection with that season provide for the establishment of an Equalization Fund and obviate the possibility of any exporting factory obtaining a better return than the factory which supplies local requirements. Butter and Cheese cor Defence Department. In co-operation with the Dairy Division of the Department of Agriculture the Department: has arranged for the supply of butter to the New Zealand Munitions and Supplies Department from stocks held on Imperial Government account, and to the 31st March, 1919, 10,109 boxes of butter, valued at £38,626 15s. 10d., and 10,454 crates of cheese, valued at £64,983 16s. 7d., have been supplied under these arrangements. PURCHASE OF WHEAT FROM AUSTRALIA. The original contract in connection with the purchase of 1,150,000 bushels of wheat from Australia was completed early in 1918, and the total amount expended on these purchases was £356,139. Delivery and distribution of the wheat was undertaken by the Board of Trade, the Department rendering all invoices on receipt of an advice from the officer supervising the discharge of the various steamers, and keeping the accounts in connection with the whole transaction. TOTAL DISBURSEMENTS. The total disbursements by the Department from the 3rd March, 1915, to the 31st March, 1919, were as follows:— £ Frozen meat .. .. .. .. .. 32,869,318 Cheese, 1915-16 season . . .. .. .. 917,748 Cheese, 1916-17 season . . . . . . .. 3,295,557 Cheese, 1917-18 season . . .. .. .. 4,948,367 Cheese, 1918-19 season . . .. .. .. 3,576,380 Butter, 1917-18 season . . .. .. .. 2,931,529 Butter, 1918-19 season . . .. .. .. 2,720,090 Scheelite .. .. .. .. . . 135,213 Wool.. .. .. .. .. .. 36,814,755 Freezing companies'slipe wool .. .. .. 3,660,957 Sheep-skins .. .. .. .. .. 1,581,413 Hides .. .. .. .. .. 725,339 "Glaxo" .. .. .. .. .. 660,769 Butter-fat levy .. .. .. .. 256,549 Purchase of wheat in Australia .. .. .. 356,139 Miscellaneous .. .. .. .. .. 459,477 £95,909,600 The salaries, expenses, and stationery, and all other incidental charges connected with the internal administration of the Department since its inception to the 31st March, 1919, have amounted to £41,863 4s. lOd.