vhich are also directors of the Bank of New Zealand. After dealing with tha circumstances connected with the appoint ment 'of Mr Watson aa president of the Bank 'of New' Zealand, the report goes on to state that in the opinion of the committee it is essential for the success of tbe Bank of Now Zealand, and to in spire and maintain confidence in that institution, that important alterations in management should be made. The com mittee therefore recommend that re organisation should take place. The office of president should be abolished, a new general manager should be appointed, the directors Bhould be increased to eight and shonld consist of three representing shareholders, three to be appointed by the Governor in Council, one to be elected by the Hcuaa of Kepresentatives and one by the legislative Council, tbo chairman to have power of veto and to be selected by the 3overnor in Council ; that sw far as practicable the ohief commercial centres of the colony should be represented on such board of directors, The investi gations made by tbe 'committee have shown that a large percentage of balance sheets of public companies have failed to show bills under discount as liabilities and in some cases even as contingent liabilities. They are of opinion that the present law is sufficient to provide toi B»d&s or companies stowing the exact position of theii affairs in their balance sheets, and that legislation should be introducad to further protect shareholders and the public, shortly after the ap pointment of president and Government auditor the salary of tho former was secured by deed during the term of bis engagement, and agreement was made with the lattor that in the event of his losing his position as auditor he wonldbe reinstated in the service of the Bank. These agreements were entered into with out the knowledge of the Government. The committee are of opinion that they should not have been made without to approval of the Government and that Mr Baits' agreement should be cancelled. In conclusion the committee oonsider that in New Zealand the business of the TSanK of New Zealand is now Bound, but recom mend that it should be confined as far aa possible to this colony, except for tbe pur pose of exchange. 