E.—No. 3A.

All things remained on this footing until the session of 1858. In that session, August, 1858, an Act was passed to grant the annual sum of seven thousand pounds for a term of seven years, from the 30th June, 1858, in aid of schools for the education of the Aboriginal Native Race. This Act expressly required that instruction in the English language, and in the ordinary subjects of primary English education and industrial training, should form a necessary part of the system in every school to be aided under the Act; also every such school was to be in connection with some religious body, and to be managed in such wise as the Governor, in concert with the head or governing body of such religious body, should from time to time determine, and in the mean time should continue to be managed in such wise as at the passing of the Act. No alteration in the management of the Church of England Native Schools has been made since the passing of the Act of 1858, except in the coustitution of the Native Education Board. That Board formerly consisted of two persons nominated by the Governor, and two elected by the managers of schools acting together under the presidency of the Bishop. It now consists of persons appointed under the authority of the General Synod, which change was made with the approval and concurrence of the Governor. In December, 1860, Archdeacon Kissling, the principal of St. Stephen's School, was attacked by a serious illness. In the following May the Archdeacon and Mrs. Kissling announced to the Board that they were compelled to give up the domestic charge of St. Stephen's School, but were desirous of remaining in a measure connected with the institution by taking part in the tuition, and by way of advice when required. The Rev. T. Chapman was then requested to undertake the domestic charge of the school, which he consented to do ;in fact he expressly declined to undertake anything more than that. The Board then made the best arrangements it could, its funds being strictly limited by the Act to head money for the scholars, in order to supply such part of the instruction as the Archdeacon was no longer able to give. Shortly after the return of Sir George Grey, His Excellency proposed that young men of the Native race should be received into St. Stephen's School, who should be instructed in the business of the Survey Department, should receive regular secular instruction in a night school at St. Stephen's (which is now conducted by Mr. Glanfield, who was formerly schoolmaster at Awamutu, under Mr. Gorst), and be under the religious instruction of the Rev. T. Chapman. To this proposal the Board agreed. Other young men had already been placed by the Board on a like footing, except that the industrial employments were carpentering and printing. In respect of both classes of industrial associates, it was arranged that the cost to be incurred by the Board should be repaid by the young men, and that a certain portion of their earnings should be kept back by their employers for that purpose. This we presume is what the Inspector refers to when he speaks of St. Stephen's as partaking somewhat of the nature of a boarding house. But neither as to this, nor as to other similar matters of detail, do the Board think it seemly to comment on the Inspector's report, much less to enter into any argument respecting the lawfulness of the use which the trustees have made of the premises of St. Stephens, or respecting the application of the funds which they have received, either under the Acts of Assembly, or by way of special grants from the Government. For in fact all the funds administered by the Board arise not under the trust deed but solely from one or other of the two last-named resources. The trust property at present yields no income. Such questions, if they shall ever be raised again, may well be left to a tribunal really possessing that competency which the Inspector assumes to himself. The Board prefer to meet all misconceptions by a simple statement of facts. They have only to say that throughout the whole period from 1853 to this time, they have never lost sight of the original plan of Sir George Grey. They have endeavoured to raise up teachers properly qualified to teach the Native youth. This is all that has been professed or promised. Some are at this time teachers, others have so approved themselves as to have been selected by the Bishops of their dioceses for ordination, a result which was contemplated and expressly referred to in the original plan. The whole yearly cost to the Government has been on an average little more than £350. If it happens that young men who are sent up to this institution are already married, it is obvious that their wives cannot be properly left in the Native villages whilst their husbands are resident here. They are of necessity brought here, not as chosen pupils, but as being the wives of persons intended to be teachers, persons therefore whom it is desirable to raise as far as possible. But it has been impracticable to place these married women, some of whom had very young children, on the class of the recognized and salaried male teachers of the institution: and no better system than that which is noticed in the report has been as yet found practicable. Young children have been as far as possible, removed from the institution, and sent to the country schools ; where the elementary instruction which alone they were capable of receiving could be given equally well, and where the cost of keeping the children was about one-half of the cost in Auckland, Prom year to year the managers of St. Stephen's have gone on steadily endeavouring to attain the original objects of the institution. Throughout they have been labouring to carry out plans, not of their own making but proposed by the Government. With much difficulty and small encouragement they have patiently and hopefully worked on : Their own standard of a Public Educational Establishment is not below that of the Inspector of Schools. But if that Inspector had first made himself acquainted with the facts of the case he would probably have shared in their satisfaction at seeing that under all the circumstances the institution has been kept afloat, and some little good done. If the Inspector had conferred with any of the trustees before commenting on their administration, he would have found that they are not less desirous than ho of letting the land advantageously, so as to yield a good income for the school; that the subject has been much considered, and that with that view, a sum of more than £300 has been laid out, of which all beyond the sum of £25 has been derived from funds not supplied by the Government. I have, &c, The Hon. W. Pox, Native Secretary. ¥m. Martin.

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