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on at the time of my visit. My impression is that the work that was being done while I was there will be somewhat disappointing to the masters; but I understand that the papers were set with the view of sifting out the prize-winners. The staff has been strengthened during the year by the addition of a third master and a visiting master. The programme of the highest class is as follows : iEneid, 11., 300 to 804 ; V., 1 to 480; repetition, 350 lines : Bradley's Arnold, 112 pages : Simpson's Cassarian Prose, eight pieces. Lazare Hoche, pages 60 to 113 ; Le Bourgeois Gentilhomrne, 1., II.; Chardenal's First Course. Otto's German Grammar, pages 1 to 199; Grimm's Kinder und Haus Marchen. Milton's Lycidas, &c, for paraphrase. Euclid, to Book XI., 6. Trigonometry, to ratios of sum of two angles. Algebra, to problems on simple equations. The Physics Primer. Petrie's Geography. Blight's History, 111., pages 806 to 1,018. Mrs. Fawcett's Political Economy. In the lowest division : Via Latina, Exercises Ito 20, and the active verb; Chardenal's First French Course, exercises 1 to 40; arithmetic, including fractions, stocks, and interest; algebra, to multiplication ; Euclid, to 1., 12; Gardiner's History, pages 195 to 336; Petrie's Geography, pages 1 to 50; Hall's Primary Grammar, pages Itoso ; composition ; drawing; botany.

OTAGO HIGH SCHOOLS. 1. Eepoet of the Boaed of Govebnoes. Sib,— Dunedin, 30th April, 1886. In accordance with section 8 of " The Otago Boys' and Girls' High Schools Act, 1877," and in terms of your circular dated Wellington, 20th November, 1885, I have the honour to forward herewith report of the Board of Governors of the Otago Boys' and Girls' High Schools for the year ended 31st December, 1885. The Board reports that, owing to continued ill-health, Dr. Macdonald, the rector of the Boys' High School, was compelled to send in his resignation, which the Board received with the greatest regret. With a view to the appointment of a successor, the Board availed itself of the invaluable services of Sir F. D. Bell, the Agent-General for New Zealand in London, who, in conjunction with Dr. James Macdonald, of Kelvinside Academy, Glasgow, selected the Eev. Henry Belcher, M.A., LL.D., who held a responsible position in King's College School, London, from a large number of candidates. Dr. Belcher arrived in Dunedin in March of the present year, arid entered at once on his duties. The Board, with a view of providing more thorough instruction in arithmetic in the Lower School, arranged to place this important subject under the care of a highly-qualified master, who is responsible, under the rector, for its efficiency. The Board is sorry to state that, in consequence of the serious depreciation in the value of wool and all descriptions of farm produce, its tenants, both agricultural and pastoral, have experienced the greatest difficulty in paying their rents and instalments of purchase-money ; while a number are in arrear. Owing to these circumstances the. Board has been forced to make a considerable reduction in the salaries of the teaching staff. The Board has received numerous applications from its tenants for reduction of rents ; but, having no power under its Act to take them into consideration, it is of opinion that the Government should amend the said Act in the direction of giving the Board a power similar to that conferred on the Church Board of Property by section 21 of " The Presbyterian Church of Otago Land Act, 1866." With reference to technical education, the Board fully recognises its importance, and the advisability of its introduction into the High School curriculum. With this end in view it appointed a committee to make inquiries on the matter ; but, owing to its financial state, it has been precluded from taking any definite action. The matter, however, has not been lost sight of. The following tables [not printed] give the information asked for in circular of date 20th November, 1885. Annexed hereto are reports from the acting rector of the Boys' School and the principal of the Girls' School, showing the work done in the schools during the year; also reports of the examiners, as well as particulars of scholarships held at the schools. The audited statement of receipts and expenditure was forwarded to the Education Department on the 22nd instant. I have, &c, The Hon. the Minister of Education, Wellington. D. M. Stuaet, D.D., Chairman.

2. Statement of Eeceipts and Expendituee for the Tear ending 31st December, 1885. Receipts. £ s. d. Expenditure. £ s. d. To Price of reserves sold .. .. 6,275 19 9 By Balance at beginning of year .. .. 1,202 10 9 Rents .. .. .. .. 3,188 8 8 Office—Salary .. .. .. 170 0 0 Interest .. .. .. .. 569 17 0 Other office expenses .. .. 8 6 5 School fees .. .. .. .. 2,565 15 0 Other expenses of management .. 102 6 8 Boarding-school fees .. .. .. 1,875 0 0 Teachers'salaries and allowances .. 7,961 10 7 Eefund from Gray Bussell School Fund 40 0 0 Boarding-school account— Proceeds of building materials sold .. 45 19 6 Disbursements .. .. .. 1,564 11 10 Balance at end of year .. .. 2,833 7 0 Furnishing .. .. .. 623 4 4 Prizes .. .. .. .. 33 11 3 Printing, stationery, and advertising .. 109 16 7 Cleaning, fuel, light, &c. .. .. 87 3 9 Janitors' wages, &c. .. .. .. 200 18 11 Bents, insurance, and taxes .. .. 198 11 5 Interest on current account .. .. 125 15 2 Expended on buildings .. .. 4,684 4 2 Destroying rabbits .. .. .. 81 10 0 Discount on promissory notes.. .. 149 2 7 Refund, Receiver, Land Revenue .. 25 2 6 £17,394 6 11 £17,394 6 11 D. M. Stuart, D.D., Chairman. C. Macandeew, Secretary. I have compared this abstract with the treasurer's books and vouchers, and I certify it to be correct.— H. Livingston, Auditor.