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necessary to retain is the Librarian; but we have not made any recommendation for the continuance of the salary of this officer, either in this or in other provinces, as the books will probably be handed over to local public libraries, or otherwise disposed of. Gaol, Hospital, Lunatic Asylum. —For these and some other departments, we have adopted the estimates furnished by the officers thereof. In most cases there is an excess beyond the expenditure of the past year, consequent on the increase of population; and in that of the Industrial School extensive operations in the way of building and fencing are contemplated. All expenditure for Hospitals has been provided for by vote of the Provincial Council, in reduction of which £498 18s. was received from patients during the past year. In pursuance of our instructions, we simply indicate the cost for the present year. The completed portion of the projected building occupied by female patients in the Lunatic Asylum is very good; but the males are still inhabiting the old building, which is over-crowded, and in such a state of decay as not to admit of repair. The designed accommodation for male patients is urgently necessary; but as it is a " public work," we have not included any amount for it in the accompanying estimates. " Charitable Aid " is voted by the Provincial Council, and provides in a very liberal manner for all kinds of alleged destitution, including the support of the families of criminals and debtors, and we are informed has had the effect of almost totally drying up private benevolence. The amount expended is excessive in proportion to the population, and to expenditure on similar objects in other provinces. The expenditure during the past year has been £9,000. The Industrial School is at Burnham, eighteen miles from Christchurch, on the South line. It is for the relief of neglected criminal children, and is maintained by vote of the Provincial Council. The dormitories are over-crowded, and improvements about the grounds and buildings much to be desired. The Lyttelton Orphanage is maintained by vote of the Provincial Council, and intended for neglected and destitute children unconvicted of crime. A small sum is occasionally received from parents or guardians in reduction of the vote. We think it would tend to economy, as well as the interests of the children, if one or two persons were employed to teach them the trades of carpentering and shoemaking. Sheep Inspection. —As, after full inquiry, we are of opinion that the duties of Chief Sheep Inspector and Inspector of Central District can be efficiently performed by the same person, we have reduced the estimate accordingly. Public Works. —There being many Provincial Works still uncompleted, and it being desirable to retain the services of an officer fully acquainted with the details of the arrangements connected with the Public Works Department, the retention of the Assistant-Secretary is recommended. As the duties of the Provincial Engineer, who is resident in Christchurch, will devolve on Local Boards and on the District Engineer of the Public Works Department of the General Government, the office will, it is presumed, eventually be discontinued. But, as some time must elapse before the amalgamation can be effected, and as there are numerous works in progress, we have meanwhile retained the salary. The Clerk of Works has also been retained, for the same reasons. Miscellaneous. —For the bonus of £2,000 for Wool Manufactory, authorized by the Provincial Council, a claim has been sent in, and we were informed that the claimant would become entitled to the amount when certain conditions were fulfilled. Provision for Public Plantations has been retained on the Estimates, pending arrangements for its allocation, locally or otherwise, as may be determined. The duties of the Steward of Reserves should, we think, be attached to those of the Commissioner of Crown Lands, and extra travelling expenses involved thereby paid out of the departmental contingencies. Provincial Government Works, Harbour Works, and Railway Works. —With reference thereto, we have enclosed, in accordance with your telegram above

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