Memorandum by the Assistant Treasurer.

No requisition was made upon the Comptroller in respect of the £6,031 18s. 9d. paid for the Dunedin Disputed Reserves. The money had been placed in deposit with the Bank of New Zealand by the Colonial Treasurer, and was withdrawn from such deposit when required for payment. This was before the coming into operation of "The Public Revenues Act, 1867."

The amount appears in the published Accounts under the heading "Trust Fund," because, although the Public Revenues Act was not in existence at the time of the payment, the operation of the Act was made retrospective, and therefore the accounts of a large portion of the year have had to be reconstructed in accordance with its provisions.

Annexed are copies of the voucher and guarantee under which the money was paid.