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• 8 : . Q ~^ hen a Purchase is made requiring a large sum of money is it issued m full or for a part? A-The authority is necessarily oive/io Mr McLean to draw in full, leaving it to his discretion whether to draw the whole or only parts as required. * n'i Q 7 D ° eS the Audit ° r debit the whole amount, or only the amount issued > A —Only the amount issued. 1'• 9r 1)o Mr * McLean ' s receipts to the account discharge them for the money paid over to him ? A—Not finally. 11. Q—ln case of any mis-appropriation of the money by Mr. McLean would the accountant be treated as liable? Mr. McLean would certainly be fullv liable; andlit would be the accountants duty, as it is also that of the Auditor to call on i he sub-accountant to render his accounts at fixed periods. 12. Q—Putting an extreme case, supposing Mr. McLean, in virtue of an authority, had drawn a specific sum and disappeared with it, who would be liable ? A—Mr. McLean and his sureties. 13. Q—Would you, in auditing the accounts, treat the accountant as discharged by the production of Mr. Mcl ean's receipt, coupled with the Government authority 1 I should make a special report, and report that certain moneys were out of the chest for which no accounts had been rendered. lam aware that the Constitution Act requires that all money should be issued under the Governor's warrant, Hut moneys may be transferred from one accountant to another by the Governor's authority. 14. Q Are there any instructions to you not to pass any disbursements except under some particular form of warrant. A—There are. 15. Q —ls the mode in which you keep the public accounts one of your own devising, or are they kept in accordance with any instructions ; A—No; they are left to me. They are kept by double entry, in the same manner as I believe a paymaster's account at home. 16. Q—Will you state the particular object with which the published accounts are made up ? A —'lhey are inteuded to show the final transactions of the Treasurer. The accounts published in the " Government Gazette" are not intended to show the debtor and creditor account of the Treasurer nor the appropriation nor distribution of the revenue; but they are prepared in the usual manner in the colonies. I have prepared, however, for the information of the House statements showing the final and temporary transactions of the whole of the accountants of New Zealand, showing the balances in hand on January 1, 1853, and the balances in hand on the termination of the accounts up to the latest period at which accounts have been received. 17- Q-a re separate accounts kept by the Post Office 1 A—Yes. 18. Q —Have you published the accounts of the Post Office? A—The particulars of the Post Office receipts and disbursements, as shown in the public statements were not complete in consequence of nearly the whole of the Post Office accounts being in the hands of the Postmaster-General. 19. Q —Did you audit the Post Office accounts? A—They have been audited since. 20. Q—Up to what time were those accounts in his hands? A—l cannot say. 21. Has any account been rendered of monies issued to Mr. Kemp? A— No, they are all outstanding. 22. Q— Do the sub-commissioners give security? A—No, it was not thought necessary. If any officer wee often in receipt of public money I should consider it my duty to call on him for security. 23. Q_ Do not the several accountants make up their accounts monthly ? A —No, quarterly. At the close of Dr. Knight's evidence the following resolution was moved by Mr. Forsaith —■ " Resolved that the first business of the Committee on meeting next day be an enquiry into the Land Fund question of Nelson and Canterbury, and that Dr. Knight be again requested to attend."