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one exception the scholarships are tenable for two years. Of the twelve who competed for the senior scholarships, seven were girls ; and of the ten for the junior, one was a girl. Eeduction in the Govrnment Grant. —Upon receipt of intelligence that the Government grant would bo reduced to the statutory capitation of £3 155., and that the amount would be paid upon the strict average attendance only, the Board gave immediate notice to all School Committees and teachers that there would be a revision of the school fund allowance and of the scale of teachers' salaries. Subsequently a committee of the Board was appointed to deal with the matter, and it is still under consideration. Parliamentary Committee on Education. —In reply to certain questions contained in a circular from the Parliamentary Committee on Education, the Board pointed out the necessity for a differential capitation payment for town and country schools, upon the ground that a Board with a large number of schools scattered over a sparsely settled district is at a great disadvantage as compared with Boards having several large schools in densely populated cities. Finance. —The several returns required by the department were forwarded in due course. The general statement of receipts and expenditure shows a credit balance of £2,585 11s. in the General Account; and the statement of assets and liabilities shows assets amounting to £504 3s. 4d., and liabilities £1,086 los., leaving a net credit balance of £2,002 19s. 4d. The £500 in the assets is due from the Building Account, being a loan from the Eees bequest for the purpose of erecting St. John's Infant School, Wanganui. This amount is again included in the sum of £588 Is., shown as a liability, that sum being due to the Eees Bequest Suspense Account. The other liabilities were for amounts due to teachers for instruction of pupil-teachers, and to Committees for school fund. The Building Account is overdrawn to the extent of £1,691 14s. Bd., with liabilities amounting to £687 2s. Id. The £350 shown in the abstract of accounts as paid from the General Account on the one side, and received by the Building Account on the other, is a portion of the loan of £500 above referred to, the balance of £150 having been accounted for in last year's statement. It is necessary to explain that this money is borrowed from the accumulated interest only of the Eees bequest, and not from the capital account. For information respecting the state and progress of education in this district, I have the honour to refer you to the Inspector's report. I have, &c, The Hon. the Minister of Education, Wellington. Gilbert Carson, Chairman.

General Statement of Eeceipts and Expenditure for the Year ending 31st December, 1887. Receipts. £ s. d. Expenditure. & s. d. To Balance at beginning o£ year —General By Balance at beginning of year —Building Account .. .. .. 2,601 18 10 Account .. .. .. 991 12 10 Government grant for buildings .. 2,979 11 0 Office staff—Salaries .. .. 425 0 0 Other receipts for buildings— Building Account, loan from Rees beSchool sites, leases .. .. 511 5 quest .. .. .. .. S5O 0 0 Old buildings .. .. .. 17 10 0 Departmental contingencies.. .. 98 0 2 Eees bequest loan .. .. S5O 0 0 Members' expenses .. .. .. 148 14 10 Government capitation .. .. 18,899 15 2 Inspector's salary .. .. .. 400 0 0 Scholarship grant .. .. .. 314 5 0 Inspector's travelling expenses .. 150 0 0 Inspection subsidy .. .. .. 300 0 0 Inspector's examination expenses .. 34 7 11 Grant for training of teachers .. 62 10 0 Examination of pupil-teachers .. 43 17 3 Payments by School Commissioners .. 412 3 4 Teachers' salaries and allowances (inRees bequest, Interest Account .. 175 15 0 eluding rent, bonus, &c.) .. 1G,75d 8 5 Departmental refund .. .. 313 6 Incidental expenses of schools .. 1,464 15 4 Refund school fund, Kaitoki (closed) 5 12 5 Training of teachers .. .. 66 13 i Balance at end of year—Building Ac- Scholarships— count .. .. .. .. 1,691 14 8 Paid to scholars .. .. .. 305 0 0 Examination expenses .. .. 9 5 0 School-buildings— New buildings .. .. .. 1,769 16 7 Improvements of buildings .. 1,931 15 10 Furniture and appliances .. .. 64 15 2 Plans, supervision, and fees .. 199 11 0 Balance of contractors' deposits .. 86 15 8 Balance at end of year—On General Account .. ... .. 2,585 11 0 £27,880 0 4 £27,880 0 4 Gilbert Carson, Chairman. A. A. Beowne, Secretary.

WELLINGTON. Sir,— Education Office, 31st March, 1888. In accordance with section 102 of " The Education Act, 1877," I have the honour to furnish you with the annual report of this Board on educational matters of the district for the year ending the 31st December, 1887. Board. —The constitution of the Board at the commencement of the year was as follows : Mr. J. E. Blair (Chairman), Mr. Henry Bunny, Mr. George Beetham, M.H.E., Mr. Walter Clarke Buchanan, M.H.E., Mr. Arthur Winton Brown, Dr. Newman, M.H.E., Mr. John Young, Mr. George Vance Shannon, and the Eev. James Paterson. In March Messrs. Buchanan, Bunny, and Shannon retired. Mr. Shannon decided not to stand for re-election. Ten candidates were nominated, and Mr. W. C. Buchanan, Mr. H. Bunny, and Mr. P. H. Eraser were elected. Meetings.—During the year the Board has held, fifteen meetings, made up as follows : Twelve