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throughout the district. It is gratifying to find that they concur in reporting a general state of progress. The average of passes is higher in every standard than it was last year, and the general, average for the whole district is 4-11 per cent, higher than in 1887, and 8-45 per cent, higher than in 1886. Normal School.—The arrangements for the management of the Normal School mentioned above are in accordance with recommendations made by the Inspectors and adopted by the Board's Betrenchment Committee. Mr. Colborne Veel, the Secretary of the Board, was constituted the official head, and, in effect, principal of the school; and his experience and special knowledge of educational matters have greatly assisted the Board to turn to good account the slender- resources left available for the training department. The staff of the Bractising School consists of the three principal teachers—the head master, head mistress, and infant mistress—with two assistant teachers in the boys' and girls' schools and one in the infant school. The school is divided into classes of convenient size, and two students are assigned to each class, who teach it—one in the morning, the other in the afternoon—under the supervision of a member of the permanent staff. At suitable intervals the distribution of the students is re-arranged, in order to give them the opportunity of becoming acquainted with the work of the several standards, and, in the case of female students, of the infants' as well as of the girls' school. During the half-day not employed in teaching, those students who have matriculated attend lectures at Canterbury College, and the rest are instructed by Mr. Watkins, formerly senior tutor, who has been re-engaged for the purpose. Mr. Wilson, the head master, undertakes the duty of giving instruction in school management. So far as can be judged from the first year's experience the new system has proved a success. It is undoubtedly economical, as the total cost of the Normal School has been reduced by 30 per cent., while the results of the Inspectors' examination, and of the examination held by the Department for teachers' certificates, give satisfactory assurance that the saving in cost has not been accomplished at any sacrifice of efficiency. Scholarships.—The annual examination for scholarships was held in April. The number of candidates examined was 130, of whom sixty-eight (forty-five boys and twenty-three girls) were in Class A, forty-six (twenty-five boys and twenty-one girls) were in Class B, eight (six boys and two girls) in Class C, and eight (five boys and three girls) in Class D. Eight scholarships were awarded in Class A; five in Class B ; two in Class C ; and two in Class D. I have, &c, The Hon. the Minister of Education. W. Cheystall, Chairman. General Statement of Eeceipts and Expenditure for the Year ending 31st December, 1888. Receipts. £ s. d. Expenditure. £ s. d. To Balance at beginning of Year —On By Balance at beginning of year —On BuildGeneral Account .. .. 9,340 910 ing Account .. .. .. 100 9 7 Government grant for buildings .. 7,530 13 6 Office staff—Salaries .. .. 1,022 10 0 Other receipts for buildings— Departmental contingencies .. .. 368 3 8 Sale of old gas-engine .. .. 8 0 0 Inspectors' salaries .. .. .. 1,350 0 0 Contractors' deposits .. .. 230 9 0 Inspectors' travelling expenses .. 253 11 7 Government statutory capitation .. 47,176 15 3 Examination of pupil-teachers .. 172 11 6 Scholarship grant .. .. .. 933 4 9 Teachers' salaries and allowances (iiiInspection subsidy .. .. 500 0 0 eluding rent, bonus, &c.).. .. 50,749 18 10 Grant for training of teachers, on ac- Incidental expenses of schools .. 6,400 7 5 count of liabilities .. .. 200 0 0 Training of teachers.. .. .. 1,695 11 10 Payments by School Commissioners — Scholarships— North Canterbury .. .. .. 11,553 1110 Paid to scholars .. .. .. 805 16 4 Nelson .. .. .. .. 19 6 8 Examination expenses .. .. 97 1 7 Interest .. .. .. .. 260 0 0 School buildings— Rent of site, Mandeville Plains .. 3 0 0 New buildings .. .. .. 2,398 12 7 Rent of gymnasium.. .. .. 34 13 9 Improvements of buildings .. 1,401 9 5 Training fee .. .. .. 10 0 0 Furniture and appliances .. 383 4 8 Sites .. .. .. .. 88 1 6 Plans, supervision, and fees .. 308 6 4 Refund of contractors' deposits .. 128 17 6 Drill instruction .. .. .. 69 7 5 Interest on overdraft .. .. 2 9 6 Balance at end of year — On Building Account .. .. 2,960 011 On General Account .. .. 7,043 12 5 £77,800 4 7 £77,800 4 7 W. Cheystall, Chairman. J. V. Colborne-Veel, Secretary. Examined and found correct.—James Edward FitzGerald, Controller and Auditor-General.

SOUTH CANTEEBUEY. g IB) . Education Office, Timaru, 31st March, 1889. In accordance with the 102 nd clause of "The Education Act, 1877," the Education Board of the District of South Canterbury has the honour to present the following report of its proceedings for the year ending the 31st December, 1888. Board.—At the commencement of the year the Board consisted of the following members: The Bey. George Barclay, J. 8., the Bey. T. Jasper Smyth, Messrs. Melville Gray, J. 8., Bichard Alfred Barker, John Talbot, J. 8., John Jackson, J. 8., W. Barker Howell, J. 8., B. H Bearpoint,