AUDITORS' REPORT

Your Auditors, in making this their thirty-seventh Report, are gratified to observe that the Deposits in the Bank have been somewhat larger than during any former year, £153,386. 2s. 1d. having been received. The repayments have also been larger, reaching £154,897. 9s. 9d.; there has been, however, received as interest from the National Debt Commissioners, £18,859. 7s. 5d., so that the amount to the credit of the Bank, on the 20th of November, was £587,798. 12s. 7d., more by £13,644. 0s. 7d. than at the corresponding period of 1862.

The increase in the number of open Accounts was from 31,833 to 33,102 during the year.

Of Government Annuities, one has been granted, two transferred to and two transferred from other Banks, one Annuitant has died, and thirty-four will have to pass to the Post Office Bank Authorities.

The duty of your Auditors would, under ordinary circumstances, have been confined to the transactions ending with the financial year, but events of so much importance have subsequently taken place that they cannot be passed over in silence.

During the last Session a Bill was introduced into Parliament, one clause of which increased the liability of Trustees; at its first introduction the onerous nature of the change escaped notice; and it was not until the Act had passed that its objectionable character was discovered. Many of the Trustees declined to take upon themselves the liability, and a Special General Meeting of Trustees having been called to hear their report, it was determined that the business of the Bank should be transferred to the Post-Office Bank, such transfer to commence on the 1st of December.

Facilities having been offered by the Post Office Authorities, the transfer commenced on the day named, and (with a very short interval at Christmas), continued daily under the superintendence of the Trustees, who, with the entire staff of officers, were constantly occupied until the 18th inst.

During that period £557,000 has been so transferred or paid to Depositors in money, and there now remains somewhat less than £26,000 for which the Post Office Bank will account to Depositors.

That the Accounts have been kept with perfect accuracy, and reflect great credit upon all the Officers engaged, will be admitted, when it is stated that the large sum named represents the balances that were due to 22,738 Depositors, and that not a shilling has been received without being duly accounted for.

On the 4th January, the General Committee appointed a Sub-Committee, consisting of Messrs. Lucas, Campbell, and Cadbury, to offer to the Postmaster-General the Freehold Buildings of the Bank at the cost price of £4,525, and the Fixtures at a valuation, subject to the confirmation of the Annual General Meeting. They have not yet received any official acceptance of their offer, but they have reason to believe that it will be accepted; and it will, therefore, be desirable that such Sub-Committee be re-appointed to carry out such Sale, and to complete the arrangements that may be necessary, and that the present Meeting should approve of such offer.

It now becomes the duty of the Trustees to convert the Building and other Property of the Bank into Money, and that done, and every claim on the Bank satisfied, there will remain a surplus of about £8,000, which a recent Act of Parliament has empowered the Trustees, with the consent of the Commissioners of the National Debt, to devote as compensation to the Officers of the Bank for loss of their respective offices.

In conclusion, your Auditors would express their hope that your late Depositors, who have not yet done so, will avail themselves of the facilities offered them by the Post Office Bank, which is open during the principal hours of every day, and, by its numerous Branches, is brought near to the door of each individual.

EDWARD LUCAS

J T HORTON

Auditors

In addition, the printed report contained a Statement of Accounts, an Analysis of Deposits; and a receipt from the Comptroller-General: