B.— 9

26

In reference to the staple products the satisfactory position which was recorded in my previous report, unfortunately, has not continued to exist. The principal fall was in regard to wool, but the other primary products have also to some extent suffered. The fall in the return from our staple products may be only a passing result of the operation of the economic laws of supply and demand, or it may, on the other hand, exemplify a gradual return to lower prices and conditions more closely approximating those of pre-war days. Viewing the matter in relation to the trend of produce-values generally throughout the world the latter statement probably represents the true position. Whatever may be the position it is necessary that the greatest attention should be paid immediately to the remedies which lie within the powers of the citizens of the Dominion. They are, in the main, the restriction by traders of importations, particularly of luxuries, and the expansion of production by the primary producers. The increasing tendency which is observed on the part of farmers to recognize the importance of more scientific methods of farming may be confidently expected to assist in the latter respect in the restoration of a proper equilibrium. In this direction the Office is paying strict attention in the leasing, working, and general management of farm properties under its control. Up to the end of the period under review -the Office did not feel to any appreciable degree the effects of the somewhat unfavourable conditions which have been prevailing for some time. Indeed, at the end of this period the position of the Office investments was quite satisfactory when compared with the position at the end of the previous year, when admittedly very favourable conditions prevailed. Within the Office the policy of economy is being conducted, all waste being prevented, and all unnecessary expenditure eliminated. New Business. 39. The greatest tribute to the quality of the service rendered by the Office is contained in the ever-increasing amount of business reported to it from year to year. The past year has been a particularly satisfactory period in this respect, the increases reported over previous years being well sustained, both as to the number, quality, and value of the new estates reported for administration. It is pleasing to see that the new business alone reported during the past year was practically equal in amount to the whole of the estates and funds under administration by the Public Trustee on the 31st March, 1907, a comparison which shows in a striking manner the rapid growth of the Office. While an essential feature of the Office is rightly the administration of estates of small value at the minimum cost to the beneficiaries concerned, it nevertheless continues to attract the notice of well-to-do members of the community, who are favourably impressed with the efficient service rendered and the security provided. This is evidenced by the increasing number of valuable estates which are reported for administration, and by the large number of wills held on deposit for wealthy citizens of prominence in all phases of activity—farming, professional, commercial, manufacturing, and otherwise. The numerous cases where beneficiaries of estates which have been administered by the Office have subsequently appointed the Public Trustee executor and trustee of their own wills are also pleasing testimony to the manner in which itperforms the work entrusted to it. As time passes the Office is building up a large personal connection, and with it a very valuable goodwill founded upon satisfaction with the services rendered on previous occasions. This augurs well for the ruture, and the healthy development of Office activities may be confidently expected. It is urged by some of the competitors of the Office that its administration is official, and that it lacks " the personal touch." In my report for last year I stressed the importance of the human element in trust and administration work, and briefly referred to the methods adopted by the Office to establish and maintain close personal contact with the beneficiaries and other interested parties. This is done not only in the interviews with them, but in the carrying-on of the correspondence generally. In training its junior officers these special features are kept constantly before them.