"Propositions."

The "Post office Saving Bank," to be converted into a "State Bank" or rather could he utilized as such to the advantage of both depositors and State without any expense or radical change. The Chief Post Qffices and First. and Second Class Office could be made receiving and paying branches: all payments to be made in "State Notes"; the notes issued not to exceed the amount of deposits. All Third and Fourth Class Offices to be receiving offices only, and to pay out on the warrant of the nearest paying branch. All Government monies could be transferred, and payment made, without the aid of any other branch. This would save the Treasury a considerable amount of work, as all vouchers could be paid on authority, thereby saving the issue of cheques. Even if the duties of such a bank were restricted to cash transactions, the amount of business would he enormous, as a small interest on current accounts would be sufficient to secure all desirable accounts, and the amount of "State Notes" in circulation would give the Goverment a large amount of suplus cash. If the deposits were limited to say £500 as at "present, there would be no fear of page 12 a "run" at any time, and thus allow the Government to sink monies in a payable manner. I have not entered into minute particulars, but all I he neeessary apparatus is now in vogue.

I have laken the I thirty, sir, to direct this proposition to you privately, as on other questions 1 have dono myself the honour to suggest to the Government of the day I have had some reason to infer they have been delayed to a convenient season before reaching the principal for whom they were specially intended.