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of Palmerston North collected and remitted to the Board the sum of £200 towards the cost of a technical school for that town. The Board promised £1 for £1 on this sum, and they understood that the Minister of Education would have subsidised this £400 by a grant of £1 for £1. That such has not been done is a great disappointment to the Palmerston people. The art classes are still conducted at Palmerston North by one of the assistant masters from the Wanganui Technical School, and it is now contemplated to establish classes upon the same basis at Hawera.* In connection with the Technical School, cooking classes have been held at the Wanganui Girls' School during the year. Teachees.—At the close of the year there were 288 teachers in the Board's employ, 148 being male and 140 female teachers. There are also thirty-four cadets, who are not counted on the staff of the schools, and do not receive any pay. ScHolaeships.—The annual competition for scholarships was held in December. In the senior division thirty-four candidates competed, twelve of whom qualified and twenty-two failed. Four scholarships were awarded to one girl and three boys. In the junior division thirty-eight candidates competed, and of these six qualified and thirty-two failed/ Four scholarships were awarded to one girl and three boys. The Trustees of the Wanganui Collegiate School and the Board of Governors of the Wanganui High School continue to give free tuition to all who qualify, but for whom scholarships are not available within the limits of the grant, as mentioned in last year's report. Pupil-teachebs.—The annual examination was held in the month of June. In the first class twenty-four candidates presented themselves, and of these seventeen passed (a girl heading the list) and seven failed. In the second class twenty-eight candidates were present, of whom twenty-two passed and six failed. In the third class forty candidates were present, of whom thirty-one passed and nine failed. The result of the examination, upon the whole, was deemed satisfactory. Finance.—The state of the Board's finances is far from being satisfactory as far as the Building Account is concerned. The General Account shows a credit balance of £1,783 195., with an asset of £158 due from the Bees bequest on account of the Technical School. The liabilities amount to £408 Bs. 6d., leaving a net credit balance of £1,533 10s. 6d. as at 31st December, 1898. In the balance-sheet the Building Account shows a credit balance of £3,718 3s. 6d., but of this sum £1,658 4s. is money especially granted by the department for schools in newly settled districts which have yet to be built, leaving a net available balance of £2,059 19s. 6d. But the return of assets and liabilities shows the following liabilities: Balance of amount due under contracts let, £2,564 Bs. Bd.; due on account of tenders ready and about to be advertised!-, £2,500 ; deposits on contracts, £142 2s. 6d.; balance required for Feilding School over and above the £900 insurance, £1,080 : making a total of £6,276 lis. 2d., thus leaving a balance of liabilities over assets of £4,216 lis. Bd. As the greatest economy has been observed by the Board in its expenditure, it would beg to direct the special attention of the Hon. the Minister of Education to the above statement. I have, &c, The Hon. the Minister of Education, Wellington. G. S. Beidge, Chairman.

Geneeal Statement of Beceipts and Expenditube for the Year ending 31st December, 1898. Receipts. Expenditure. £ s. d. To Balance— £ a. d. £ s. d. By Office staff—salaries .. .. .. 476 5 0 On Building Account Dr. 1,258 13 6 Departmental contingencies .. .. 215 8 0 On General Account Or. 2,570 9 5 Members'expenses .. .. .. 162 5 8 1,31115 11 Inspectors'salaries .. .. .. 700 0 0 Government grant for buildings .. 7,658 5 Inspectors'travelling-expenses .. 270 0 0 Subscriptions and donations for build- Examination of pupil-teachers .. 91 6 2 ings .. .. .. .. 34 10 0 Teachers' salaries and allowances (inOther receipts for buildings— eluding rent, bonus, &c.) .. .. 28,957 13 5 School sites leases .. .. 40 15 10 Incidental expenses of schools .. 1,823 18 1 Old material .. .. .. 3 0 0 Training of teaohers .. .. .. 58 17 6 Refund .. .. .. .. 12 6 Standard examination expenses .. 59 6 6 Contractors'deposits.. .. .. 143 18 6 Scholarships— Government statutory capitation .. 30,616 15 4 Paid to scholars .. .. .. 521 13 4 Scholarship grant .. .. ... 551 13 11 Examination expenses .. .. 30 17 3 Inspection subsidy .. .. .*. 300 0 0 Technioal School .. .. .. 235 18 0 Payments by School Commissioners .. 1,534 18 7 School buildings— Truant fines .. .. .. 23 6 0 New buildings .. .. .. 757 12 5 Teachers'olasses .. .. .. 21 11 6 Improvements of buildings .. .. 1,335 4 5 Donations for Palmerston North Tech- Furniture and appliances .. .. 266 10 11 nical School building .. .. 200 0 0 Sites .. .... .. 338 1 9 Technical School— Plans, supervision, and fees .. 150 19 10 Rees bequest .. .. .. 300 0 0 Contractors'deposits.. .. .. 56 5 6 Government grant, speoial .. .. 100 0 0 Truant inspection .. .. .. 337 9 1 Government grant, capitation .. 123 18 6 Hawera School inquiry .. .. 34 10 9 School fees, Board.. .. .. 235 18 Technical School— School fees, general .. .. 431 13 6 Teachers' salaries .. .. .. 841 11 8 Cooking fees .. .. .. 13 1 9 Scholarships .. .. .. 11 13 4 Building .. .. .. .. 150 5 6 Furniture.. .. .. .. 201 0 8 Apparatus .. .. .. 13 5 2 Plans and supervision .. .. 15 15 0 Expenses .. .. .. .. 223 10 5 Contractors' deposits .. .. 617 0 Balance— On Building Account .. .. 3,718 3 6 On General Account .. .. 1,783 19 0 £43,646 4 10 £43,646 4 10 Geobge S. Beidge, Chairman. A. A. Beowne, Secretary. Examined and found correct —J. K. Waebubton, Controller and Auditor-General.

* These classes have since been started. t And since let.