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was removed to and re-erected on a suitable site given by them in that district. At the opening the promised attendance was forthcoming, and I am now able to report this school as one of the best attended. Much interest is taken by the children's parents, who show a considerable desire to maintain the school's position in this respect. The new school at Bell Block is in every respect a model one : not only carefully and thoughtfully planned, but erected at a minimum of cost, it compares favourably with any I have yet seen in the colony. The cost of its maintenance should be trifling, as all useless detail has been avoided in construction. Fortunately the majority of the school buildings is well adapted for enlargement; consequently, at Frankley Boad and Stratford no great difficulty has been experienced in arranging for the increased attendance. Both buildings are improved by the change, while the discomfort and injury to eyesight by the cross lights from the gables—somebody's hobby in the past—have been very much lessened. The stability of the school building at Opunake has been assured by the recent alterations. Throughout the year applications for schools were received from the settlers in the Tariki Boad, Kina Boad, Bltham Boad, and Waihi Districts. Doubtless, in course of the present year the Board will be in a position to erect schools in the most necessitous and pressing of these localities. The decisions of the Waitara and the New Plymouth Committees will, I hope, also receive attention, as their recommendations would economize teaching power and money, as well as give greater efficiency. I anticipate applications from Norfolk Boad, Waipuku, and Bgmont Village District Committees for extension of their schools, the attendance at all being in excess of the accommodation. The number of schools open during the year was thirty-five. In addition to the visits of inspection and examination now required by the new regulations, I have been able to pay special visits to a number of the schools for the purpose of suggesting or criticising methods, and reporting on information required by the Board in respect to buildings or appointments. At the midwinter vacation the pupil-teachers' examination was held, when eleven attended. . As several complete their terms of engagement during the present year, the practice of aiding some of these to attend one of the normal training schools should be followed. The Department has given assistance for this purpose elsewhere, so that I apprehend no difficulty is likely to interfere with what will be a benefit to the teachers in preparing for the certificate examinations and qualifying them to fill their office with success. Twenty-one candidates competed for the six scholarships offered by the Board at the examination at the Central School, New Plymouth, on the Ist and 2nd December Ten of the competitors failed to make 25 per cent, of the marks in all subjects: indeed, several, whose nominations had been made without or against the consent of their teachers, were quite unfit for the competition. To bring out the ablest it is necessary to give work that will test the intelligence and teaching of the candidates ; consequently those that are unable to take a good position in their own schools need not expect to fare even honourably in a competition where merit only can gain reward. In the schedule of marks the names of those retired are withheld; the candidates' numbers will sufficiently acquaint those concerned or interested. In connection with this examination I remark that one candidate failed to obtain any marks in arithmetic. The time for some change in the regulations affecting scholarships has now come, and it would be well to consider the raising of the standard required to the Fifth, along with an increase of age to fourteen ; the value also of one or two scholarships should certainly be increased to meet the difficulties of country competitors. lam certain that the present low rate shuts out many country scholars whose parents cannot afford the expense of providing residence in town. The increase on the attendance for the year shows about the same advance as on the preceding. At the close of 1885 the register number was 2,261, against 2,368 for December, 1886. An improvement is, however, seen in the average attendance, which has risen from 1,632 to 1,814. This is certainly owing to the greater and more active interest now generally taken in most of the school districts. Another hopeful sign is the increased percentage of attendance on the examination day. Bast year it stood at 83 per cent., but has now mounted to 88 per cent. Beturns Nos. 1 and 2 are prepared as required by Begulation 13. No. 1 summarizes the results for the whole district. It will be sufficient here to explain that the age classification, which is far too high, and necessarily must be so for some years to come, does not compare favourably with past returns, especially as the ages of pupils are now computed from the examination month, instead of, as formerly, from a date usually three or four months preceding the examination ; also as the return requires the average ages of those that had passed only. When examining the detailed results for each school, as shown in No. 2, it must be borne in mind that the " percentage of passes" is calculated on the roll number of each school, instead of, as formerly, on the number presented, or the number examined in standards. In the following table the pass percentages for the district are given : those of last year are taken from the departmental report for comparison : —

Pen lentage of Pai ;ses. Passes as Pi presented ii ircentages o. l the several Numbers itandards. Standard I. Standard II. Standard III. Standard IV. Standard V. Standard VI. 1884. 13-7 3-3 3-3 1-9 0-4 0-1 1885. 13-2 11-9 6-0 4-1 1-1 0-4 1886. 10-9 12-6 6-6 2-3 1-6 0-2 1884. 79-3 37-8 34-2 38-1 28-1 30-0 1885. 72-6 56-6 46-5 60-2 43-8 83-3 1886. 68-3 61-6 40-9 36-0 39-3 35-7 Totals 2: 14-2 53-3 59-3 53-7

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