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the long-disused buildings at Te Ngaere (near Whangaroa) to a site where a school is wanted. It is intended to build at Eao Eao (Aotea) and at Nuhaka (Hawke's Bay) as soon as titles can be secured. At Waiotapu (Thermal Springs District) arrangements are being made for the survey of a site for a school. Correspondence is in progress with the Natives, of several other places who are seeking educational advantages for their children. A school and residence are in course of erection at Taiharuru (near Whangarei Heads), and plans are being prepared for similar buildings at Kawhia. Schools have been carried on at these places for some time in temporary buildings. The 74 schools were under the charge of 62 masters and 12 mistresses, whose salaries range between £87 and £232 ; and there were 62 assistants and 16 sewing-mistresses, with salaries between £5 and £50. The expenditure on Native schools for 1896 was as follows : Teachers' salaries and allowances, £11,744 7s. ; books and school requisites, £548 os. 3d.; repairs and small works, £394 18s. 7d.; inspection, £910 18s. Id.; boardingschools and scholarships, £1,892 4s. 3d.; buildings, fencing, furniture, &c, £3,039 4s. Bd. ; sundries, £73 os. 2d. : total, £18,602 13s.

No. 2. The Inspector of Native Schools to the Inspector-General of Schools. Sir— Wellington, 31st March, 1897. In accordance with the terms of your standing instructions, I have the honour to lay before you my report on the general condition of the Native schools of New Zealand, and on the work done in them during the year 1896. Number of Schools. At the end of the year 1895 there were seventy-three schools in full working order. In the course of 1896 six schools were opened, one was reopened, and two were closed. During the year, therefore, or some portion of it, eighty schools were in operation, and at the end of the year seventy-eight schools were open— viz., seventy-four village schools (including one half-time school) and four boarding-schools. These numbers do not include the denominational schools that the Department has been asked to inspect and examine—viz., those at Matata Convent, Waerenga-a-hika, and Otaki. Changes: New Schools opened and Schools reopened or closed. In February an experimental school was opened at Hapua, on the northern shore of Parengarenga Harbour. This is further north than any other school in New Zealand. It has in some ways been very promising, and if it can only be made to fall into line with our other schools it will be of considerable value.—-In June operations were commenced at Ruatoki, in the Urewera country. This is likely to be one of our most important centres. The attendance is large and steady. An account of the opening will be given later on in this report. —Ranana School, at Te Ngae, Lake Rotorua, was opened in August, and will probably be a capital school also ; an excellent start has been made there. It is hoped that the distance between Ohinemutu, with its allurements, and Ranana is sufficiently great to safeguard this school from the kind of failure that has overtaken Native schools nearer to Rotorua and its numerous visitors. —Rakaumanga lies across the Waikato River from Huntly. It was opened experimentally in September. Its success so far has not been great; although very near to a considerable European population, and possibly for that reason, the Rakaumanga Maoris, with one or two notable exceptions, are taking but feeble interest in the efforts made to educate their children.—Pipiriki is about fifty-seven miles up the Wanganui River. Schoolwork was begun there in suitable buildings in October last. The prospects are very decidedly encouraging.—Te Whaiti is on the Whirinaki River in the Urewera country, some twenty miles from Galatea. There should be a pretty good school there by-and-by, but as yet a really fair start has hardly been made. The school was opened in November last. The Wharekahika School, Hicks Bay, Bast Coast, was reopened in March, after having been closed for a few months. The Wharekahika people have set an example that might well be followed elsewhere. They endeavour by self-sacrifice and earnestness to overcome the difficulties arising from their isolated position, and thus they manage to keep up a respectable attendance at their school. The Puketi and Makora half-time schools, on Whangape Harbour, had to be closed for want of sufficient attendance. There would be, however, scope there for a really good school if the Whangape Maoris could only be got to take more interest in their children's education. New Schools and New Buildings asked for or in Progress, and Proposals for reopening Schools that have been closed. Karioi, near Mount Buapehu. —Karioi is between Wanganui and Taupo. The climate of this place is pretty severe in the winter time, and it is possible that the attendance will sometimes be