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requirements of established Boards, with comparatively few schools and large attendances, Boards like this with a number of small schools to provide for aro unable to meet the demands made upon them. The very inadequate remuneration offered to teachers of small country schools, consequent upon this state of things, results in frequent changes and much disappointment to the Committees. The Board would therefore beg to bring these matters forcibly under your consideration, to the end that some means may be devised to relieve it of the serious responsibility which they entail. Inspector's Report.—The accompanying report of the Inspector should furnish you with a full statement of the condition of the schools, as well as with a comprehensive account of the state of education throughout the district, and the Board trusts that it will be in accordance with your wishes. I have, &c, The Hon. the Minister of Education, "Welllington. ' W". H. Watt, Chairman.

The Rees Bequest Fund. —(Memorandum by Secretary of Education.) Under a decree of the Supreme Court of New Zealand, the Education Board of Wanganui, as representing the former Board of the Education District of Wellington, now holds in trust a sum of money, being the proceeds of a bequest by the late Dr. Rees. The following is an extract from the decree of the Court: " That the plaintiff, Henry Shafto Harrison, do convey and assign and assure all such portions of the personal estate which, at the time of the death of the survivor of the testator's wife and sister remained unsold, and do transfer and pay over such portions of his the said testator's said estate as shall consist of Government debentures, or other Government securities, or other securities whatsoever, or money or other effects whatsoever, subject to the deduction before mentioned, unto the Board of the Education District of Wellington, upon trust, to be appropriated by the said Board to the education of European children being the descendants of Europeans, in some school to be established under the authority and control of the said Board in the Town of Wanganui, in the Provincial District of Wellington ; and this Court doth further order and decree that the said Board shall keep a separate account of the annual rents, profits, and income arising from the said trust property," &c. The following is a statement of the moneys received under the decree : —■ £ s. d. Received by Wellington Board from Registrar of Supreme Court... 2,591 4 3 Less legal expenses paid to Messrs. Izard and Bell ... ... 47 7 0 Balance as per "Wellington Board's General Statement ... 2,543 17 3 Legal expenses to Messrs. Brandon and Quick ... ... 148 8 8 Balance received by Wanganui Board ... ... ... £2,395 8 7 The Board has furnished the following statement of the Rees Bequest Account, as at 31st December, 1878. It has been resolved by the Board to appropriate the annual proceeds of the bequest towards the support of the District High School established in the Town of Wanganui.

Statement of the Rees Bequest Account for the Year ending 31st December, 1878.

General Statement of Income and Expenditure for the Year ended 31st December, 1878.

Departmental Expenditure : Office rent, £27 10s.; furniture, £53 19s. Bd.; printing, £03 2s. 6d.; advertising, £81 Is. 3d.; stationery, £35 16s. 3d.; cheque-books, stamps, office-cleaning, &c, £14 165.; not specified, £4 16s. 6d.: total as above, £281 2s. 2d. Details of School-building Expenditure i New schools, £2,670 16s. 9d.; new residences, £716 Bs. lOd.; enlargements and improvements, £872 13s. 6d.; purchase of sites, £276 25.: total as above, £4,536 Is. Id. Grand total as above, £11,667 17s. 6d.; add bank deposit, £4,000; Public Library Account, £185 95.; Rees Bequest, £500 ; total as per Board's audited statement £16 353 6s. 6d. 7-H. 2. (App.)

£ s. d. ':o amount of bequest received from the estate of the late Dr. Rees ... ... 2,395 8 7 Mortgage paid off... ... ... 70 0 0 Interest on mortgage ... ... 1 15 0 Interest on deposit ... ... 26 18 11 Loan, Education Fund ... ... 500 0 0 By Loan returned (Education Fund) Investments —Loans on interest. Interest account ... Balance at the Bank £ s. ... 500 0 ... 2,100 0 0 19 ... 393 3 £2,994 2 £2,994 2 6

Income. £ s. d. 'o Grants from Government—General ... 6,334 10 6 „ Buildings ... 5,000 0 0 Donations ... ... ... 50 0 0 Incidental Receipts —Refunds paid in error G3 19 11 „ From Patea Board... 2 19 8 Balance ... ... ... 216 7 5 Expenditure. £ e. d. By Office and Board — Secretary ... ... ... 170 16 8 Allowance to members of Board ... 113 16 6 Departmental contingencies ... 281 2 2 Inspection —Salary, eight months at £400 266 13 4 „ Travelling expenses ... 33 6 8 Pupil-teachers' examinations ... ... 8 10 0 Teachers' salaries and allowances ... 5,616 8 9 Committees for educational purposes ... 354 10 0 Insurance of buildings ... ... 11150 School Buildings —Works ... ... 4,536 1 1 „ Plans, supervision, &c. 146 1 11 Sundries—Interest, &e. ... ... 12 10 6 „ On account of Wellington Board 46 4 11 Refund to Patea Board ... 70 0 0 £11,667 17 6 £11,667 17 6