H.—2o,

and the balance were from Britain and the sister dominions. Crime among New-Zealand-born has shown practically no increase during the past few years, and in relation to population there is an actual decrease. It is also noticed, in connection with crime registered against the New-Zealand-born, offences against property and minor offences predominate. The statistics, in common with those for several years past, again show that the incidence of crime is most heavy between the ages of thirty and fifty years. The Statistician's figures indicate that the proportion of prisoners to every 10,000 of population has increased from 17-78 in 1924 to 20-88 in '1925. The latter figure, however, includes 4-74 seamen prisoners, and if these are deducted the net proportion of offenders to every 10,000 of population is 16-14, which is 1*64 per 10,000 less than the figures for the previous year. 'Although the ratio of prisoners to population thus arrived at represents the lowest recorded during the past five years, and represents a considerable diminution in the ratio of pre-war years, the actual number of offenders which the Department is called upon to deal with is steadily increasing. Local experience in this respect does not coincide with that of the Prison Commissioners in England, where there is a tendency to a slow decline, as the following comparative figures for the past five years disclose:— Daily Average Prison Population. New Zealand. England. New Zealand. England. 1920-21 .. .. 1,067 11,000 1923-24 .. ..1,196 11,148 1921-22 .. .. 1,113 12,179 1924-25 .. .. 1,263 10,750 1922-23 .. .. 1,127 11,766 In regard to the falling-off in committals to prisons in England, the Prison Commissioners make the following observation in their last report: " The slow decrease is attributable to no single cause. Probation, which is used to an increasing extent, and the allowance of time in which to pay fines are probably the largest contributing factors ; but another important factor is the operation of the Mental Deficiency Act, by which, as our medical colleague pointed out, during the past four years nearly a thousand mental defectives who had come into conflict with the law have been withdrawn from the army of habitual offenders and placed in institutions." A summary of the particulars of the nature of the sentences administered is shown in Table A 1 in the appendix. It is satisfactory to be able to record no instance of capital punishment during the year. Reviewing the details briefly, it is to be noted that one flogging was administered, 17 persons were declared habitual criminals, and 14 cases were transferred to mental hospitals under the Mental Defectives Act, 1911. There were 3 suicides, and 4 prisoners absconded and were not recaptured. Tt is also interesting to note that 76 per cent, of the total admissions during the year were for sentences of under three months' duration. In this connection the following comment from the last report of the English Commissioners is apropos : " Every Governor confirms our views that prison is most deterrent to those who have never been there, and that the short sentences can do nothing but lessen the deterrent effect. The terror of the unknown has gone, the disgrace of imprisonment has been incurred. A second conviction will bring nothing new. And so the man leaves prison with less fear of breaking the law than before. The time has been too short to train him, and he has merely hindered the training of others." Borstal Institutions. The Prevention of Crime Act, 1924, now commonly known as the Borstal Institutions Act, came into operation late in 1924, and 62 lads and 16 girls were committed direct to Borstal institutions by the Courts during 1925. Under the provisions of the Act, 161 youths and 39 young women were transferred from other penal institutions to the Borstal institutions for reformatory detention. The Point Halswell Institution for girls has not been going sufficiently long to enable any definite data of results to be stated, but of the 1,363 youths who passed through the Invercargill Borstal Institution during the five years ended December, 1925, only 95, or 6-96 per cent., have been reconvicted after discharge. Equally satisfactory results have been achieved at Waikeria, and, judging from local experience as well as from experience in England, it is evident that in connection with the work of the Borstal institution the prospects of judicious treatment of crime in the incipient stage are most hopeful. The fact of separating youthful offenders from the more hardened criminals alone should have beneficial results ; but the system of Borstal training aims at the all-round intellectual, physical, and moral development of each inmate, and by such means it. is hoped to arrest criminal tendencies and to instil in each youthful delinquent a proper sense of social responsibility. Expenditure and Receipts. The figures quoted hereafter, dealing only with actual receipts and payments, do not give for the periods reviewed an absolutely accurate index of expenditure and revenue, or profits and losses on the various undertakings, which figures will duly appear in the departmental annual accounts. They give, however, a reliable index of the cost of maintenance of prisoners for comparative purposes with other years. As shown by the following table, the net cost of maintaining prisoners for the past year is satisfactory. Not only was the net cost per head of prison population lower than the previous year, but the net aggregate cost, excluding-capital expenditure, was also lower, the position being that the gross expenditure increased by £8,310 (although on a per capita basis this shows a reduction of £3-67), the receipts increased by £10,981 (an increase of £3-46 per head), leaving the net aggregate cost reduced by £2,671, or a decrease of £7-13 per head,

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