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The Government pays at a fixed rate of 7s. a week for every child placed in St. Joseph's, Wellington, and St. Mary's, Nelson. The agreement made with the authorities of St. Stephen's, Parnell, and St. Mary's, Ponsonby, is to the effect that £10 a year shall be paid for every child sent to them by the Government; and also a subsidy of £1 for £1 on the subscriptions and donations received from the supporters of the institutions. The average cost to the Government of the children in St. Mary's, Ponsonby, was 6s. 9d. a week. The average number of children in- St. Stephen's Orphanage for the year was 56, but only fifteen of them were there at the instance of the Government. In the Motueka Orphanage there were five children at 7s. a week, and fifteen at Bs. The amount paid by the Government to the authorities of these institutions is on account of board, lodging, clothing, attendance, education, medical aid, and all other charges. The average cost of the children belonging to the Government Industrial Schools at Auckland, Burnham, and Caversham, shown in Table No. 4, is on account of resident and boarded-out children taken together ; the corresponding tables in former reports gave the average cost of resident children only. It is impossible to show with accuracy the average cost of the two classes of children separately, because a large number of them were resident in the schools for a longer or shorter portion of the year, and boarded out during another portion; and, in regard to clothing and some other matters, it is very difficult to distinguish between the expenditure upon them as residents and the expenditure upon them as foster-children. Arrangements have now been made with the Boards of the education districts in which the several industrial schools and orphanages are situated for the regular inspection, by the Boards' Inspectors of Schools, of the day-schools connected with all of them. John Hislop.

No. 3. Dr. Puechas's Eepoet on the Auckland Schools. Sic, — Auckland, 3rd August, 1885. I have to report the result of my quarterly inspections of the industrial schools at Howe Street and Kohimarama during the year ending the 30th June, 1885. The introduction of the boarding-out system has very much diminished the number of children at both schools, and has practically reduced the one in the city to a receiving-house for new cases, pending the appointment of suitable persons to board them. The Howe Street Home has, therefore, been given up as no longer suitable, and the matron and children have been transferred to a site near the junction of Karangahape and Ponsonby Roads, where convenient premises, called " Walmsley House," have been leased and fitted up for their reception. The matron, Miss Jackson, reports favourably of the change. The house is always thoroughly clean and tidy, and the health df the inmates is good. During the year I have been called to attend some of the foster-children, who have all done well. I wish to take this opportunity of stating that, as far as I have had the means of observing, the boarding-out system seems to work well for the children, who, in most cases, seem to be happy and thriving, and a credit to those who have charge of them. The Kohimarama school—or some establishment of a similar kind—will, I think, always be required for boys who have been guilty of petty crimes, and therefore would not, as a rule, be willingly taken into private houses on any terms. The number of boys in that school at my last inspection on the 30th June was sixty-four, and there was one absconder, who had not been traced. The general health was good; but there were one or two cases of scabies, from which the school had been free for a long period. There was an absence of comfort and contentment in the appearance of the boys which one could not help noticing, and which is probably mainly due to the unhappy conditions in which they have been brought up. The building was clean and in fair order, but the cooking apparatus was defective. I recommend that a new Leamington range be provided and fixed, in place of the present wasteful and inefficient arrangement.* I have, &c, A. G. Puechas, M.R.C.S. Eng., Medical Officer in charge of Auckland Industrial Schools. The Secretary, Education Department, Wellington.

No. 4. Dr. Peins's Report on Buenham School. Sib,— Christchurch, Ist May, 1885. I have the honor to forward my report on the industrial school at Burnham for the year ending the 31st March last. 1 am glad to be in a position to inform you that, although there have been a few trifling cases of illness, the inmates have generally enjoyed good health. Appended to this report you will find a list of those who were removed to the Christchurch Hospital for treatment. I also append a list of those who have been vaccinated and revaccinated.

* This has already been done. — Sec. fob Education,

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