E.—l.

The income of the schools for 1885 (exclusive of Christ's College, which has not furnished accounts) was .£62,373 Bs., derived from several sources as follows: Current revenue from endowments, =£19,650 12s. 3d.; parliamentary grants, .£4,250 ; fees for tuition, £18,826 4s. lid.; fees for board, £3,819 14s. 6d.; sundries, £2,077 4s. lOd.; sale of reserves, £13,749 11s. 6d. The expenditure for the year amounted to £67,121 7s. lid., including £6,283 13s. sd. reinvested. Miscellaneous. There are some education reserves that occupy a special position under an Act to provide for the Endowment of a Colonial University, passed in 1868. The University of New Zealand has nothing to do with the reserves made under this Act. Some of these reserves have by other Acts been bestowed on the University of Otago and Auckland University College. Those that remain under the operation of the Act are as follows: 10,000 acres in the District of Taranaki, 4,000 acres in the Waitotara Block in the District of Wellington, 1,500 acres in Ashburton County, and 30 acres in Westland. Section 9 of the Act of 1868 directs that " the net rents, issues, profits, and proceeds arising from such lands . . . . shall be paid .... into the branch of the Public Account called ' The Special Fund ' to the credit of an account to be called ' The Colonial University Account,'" and section 10 makes it " lawful for the Governor, with the advice and consent of the Executive Council, to appoint three fit and proper persons to be be Trustees of the Colonial University Fund." Under section 30 of " The New Zealand University Act, 1874," the proceeds are to be " dealt with for promoting higher education in the respective provinces in which such reserves are situate, in such manner as the General Assembly may from time to time determine." The fund amounted to £817 18s. lOd. on the 31st March, 1886. No trustees have been appointed, nor has the General Assembly given any direction as to the use of the proceeds. The penny savings-bank scheme set forth in the Order in Council of March, 1879, has come to nothing. It has been rendered unnecessary by the newer scheme, originated in 1881, of deposits of postage-stamps in the post office savings banks. At the end of 1885 the number of accounts that had been opened by deposits of stamps and remained open was 3,296 : for 1884 the corresponding number was 4,284, and for 1883 it was 5,586. In January, 1886, the Department issued to schools 4,000 notices to School Committees and teachers inviting their attention to the subject (see Appendix, page 101), and at the same time 40,000 copies of the post office notice* explaining the scheme were sent out. On the 12th May the Secretary to the Post Office writes : " There has been a decided revival since December last. There had been almost a cessation of stamp deposits prior to December; but now the cards are coming in at the rate of about 200 weekly." On behalf of an undergraduate of the London University, who passed the intermediate examination in Arts before leaving England, arrangements have been made with the authorities of that University for the holding of the final examination for the degree of B.A. in this colony in the month of October next. The papers are to be sent out in good time, so that the candidates may be examined simultaneously here and in London.

* " [Please read and hand to your neighbour.]— Notice to the Public. —Postage-stamps for Deposit in Post Office Savings Banks by School Children. —With the object of encouraging habits of thrift among school children, the Post-master-General nas decided to receive for lodgment in any post office savings bank deposits of penny postage-stamps of the value of one shilling when affixed to the cards provided by the department for this purpose. Every pupil attending any school, who may wish to save one shilling by penny contributions for ultimate deposit in the post office savings bank, may do so by purchasing with every penny so saved a penny postage-stamp and affixing it to the card. When the squares are filled the card may be taken to any post office savings bank, where it will be received by the postmaster, who will accept it either as the first deposit in a new account then to be opened, or as a subsequent deposit if the depositor has already opened an account. If any stamps affixed to the cards are defaced or otherwise damaged it will result in the rejection of the entire number. The cards for the collection of postage-stamps, and intended for distribution either to schools or to the children attending schools, may be obtained at every post office savings bank, where further information will be afforded.—W. Gbay, Secretary. Post Office and Telegraph Department, Wellington, 2nd March, 1881. "

XXVII