As regards the cost of the carriage of goods on New Zealand railways, as compared with British, the claim is made by the New Zealand railway authorities that their rates are the lower. I was unable to obtain any conclusive evidence upon this point, during the short time available, owing to the difficulty of extracting average figures capable of being fairly compared. As regards passenger rates, I understand that the present New Zealand flat-rate is twopence per mile for "upper class" passengers, and one and one-third pence per mile for "lower class," rates which certainly compare not unfavourably with those obtaining in England. The gross annual revenue of New Zealand railways is now about five and three-quarter million sterling per annum. Of this sum two million is allotted to payment of interest at four per cent. upon the forty million sterling of capital cost. The balance of three and three-quarter million goes to working expenses, which before the war averaged sixty-four per cent. of gross revenue, and are now sixty-six per cent. Government goods consignments are carried at full rates, and troops at a concession rate of one penny per mile return. There is no paper inflation, therefore, in the figures. I have given the above particulars at some length, as the management of so big a business organization as the entire railway system of the country is obviously a good criterion of the nature of the political administration as a whole. I may add two further instances of New Zealand methods. The first is that the Government has embarked upon a seven-million-sterling scheme for the development of hydro-electric power for industrial purposes, the country being remarkably provided with facilities for this class of enterprise. The installations, several of which are already well advanced, are situated in widely separated localities spread over both of the islands, so that a large proportion of the country will benefit. The total power which this scheme is expected ultimately to develop amounts to something like half a million horse-power. The work was to be proceeded with as fast as labour, which was very scarce at the time of the Prince's visit, became available. The second point concerns the resettlement of returned soldiers upon the land and their restarting in business. Upon this object the New Zealand Government had expended a million sterling, of which the bulk consisted of loans on easy terms. The feature that seems significant of the general situation of New Zealand, was that practically all the fifty thousand men demobilized had been found employment, and that the loans were being rapidly repaid, one-eighth (£117,000) having already been refunded, while less than six per cent. of the ten thousand men who had received advances were reported as irregular with their instalments.