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sitated the replacement of the old pan system with one more in accordance with modern requirements; but, unfortunately, there was no provision for such extensive expenditure as this involved — in four schools alone this work involving a cost of fully £800. The first school, Campbell Street, Palmerston North, was equipped at a cost of .£230, but, although the Board has been served with legal notice to equip the schools at Eltham, Feildiag, and College Street, Palmerston North, similarly, the finances do not justify such an expenditure, except out of an overdraft obtained on the personal guarantee of the members. An appeal was made to the Minister for assistance, and it is still hoped that the magnitude and importance of the work will be sufficient reason for compliance with the desire of the Board. Method of Payment ov Teachers' Salaries. —Since the introduction of the colonial scale, teachers have been compelled to pay the exchange on cheques for salaries. The Board decided, from the beginning of this year, to pay teachers' salaries and School Committees' allowances free of exchange. It is intended for the future to pay teachers' salaries, as far as possible, through the bank, instead of, as hitherto, by cheque. PosTAUE. —The Board has minimised to some extent the cost of having to pay for postage and telegrams, by only providing for outgoing expense of this sort; but it has been considered unfair to mulct teachers and Committees in the cost of official correspondence, and from the beginning of 1908 the Board -will provide for this, the expenditure being estimated at £300 a year —a burden on the finances which hardly accords with the idea of improving them, especially when it is remembered that free postage did not add a penny to the Dominion's expenditure, while it-savours of a farce to pay capitation to the Hoard and then,to take £300 a year out of it for postage. Note to Teachers.—The Board has again to refer in the highest terms to the capability, industry, and enthusiasm of the general body of teachers, for, with hardly an exception, they have proved their fitness for the very important work intrusted to them Inspectorial Staff.— The district is fortunate in its staff of Inspectors, all three carrying on its work most ably, whilst the Chief Inspector, Mr. G. D. Braik, has proved the mainspring of many new and useful movements for the improvement of the education of the district, and a perfect genius for organizing systematic methods, and inculcating the best principles to be utilised. I have, &0., The Hon. the Minister of Education. Fred. Pihani, Chairman.

General Statement of Receipts and Expenditure for the Year ending 31st December, 1907. Receipts. £ s. d. Expenditure. £ s. d. Grants from Government for— Balance at beginning of year .. .. 1,844 910 Teachers' and pupil-teachers' salaries, and Staff salaries and clerical assistance .. 1,783 9 6 allowances to pupil-teachers .. 43,005 17 5 Office contingencies .. .. .. 1,356 19 7 Reserves revenue for primary education 2,725 3 2 Taaohers' and pupil-teachers' salaries, and Capitation at 6d. for relieving-teachers 274 6 0 allowances to pupil-teachers .. .. 45,668 0 6 Capitat ; on at 11s. 3d., and grant of £250 6,421 12 3 Believing-teachers'salaries .. .. 283 4 7 Special capitation at 9J. for School Truant inspaction .. .. .. 260 10 0 Committees .. .. .. 416 8 0 Conveyance and board of school children .. 83 0 0 Conveyance and board of school-chillren 81 4 0 Special capitation to School Committees .. 416 8 0 Receipts from other sources— Incidental expenses of schools .. .. 2,648 1 11 House allowance refunded .. .. 4 3 4 Special training of teachers, £253 19s. Truant inspection, fines .. .. 55 17 6 10d. ; teachers' salaries (primary), £298 Unprepented cheques written on .. 51 17 1 10s. lid. ; teiehers' salaries (-ieoondary), Grants from Government for— £43 17a. 3d.; teachers' bonus, £12; Scholarships— house allowance, £47 10s. 3d.; teachers' Education Board .. .. .. 816 11 1 travelling expenses, £28 4s. 2d. .. 684 2 5 National .. .. .. .. 256 2 6 Allowance to scholarship-holders, and exDistrict high schools— pensfls of examination— Salaries of teachers .. .. 1,767 18 8 Board scholarships .. .. .. 829 13 10 Subsidies on voluntary contributions, &c. 105 0 8 National Scholarships .. .. 261 15 0 Receipts from other sources— Salaries of teachers and additions to Pees .. .. .. .. 17 0 0 salaries of head teachers on staffs of disVoluntary contributions .. .. 260 10 9 trict high schools .. .. .. 1,682 18 8 Voluntary contribution, S. J. Gibbons, Other expenses—Subsidies and voluntary Gibbons Scholarship .. .. 20 0 0 contributions paid to School Committee 254 2 6 Grants from Government for manual and i Manual and technical— technical instruction — School classes .. .. .. 2,113 14 2 Capitation— Special classes .. .. .. 4,007 4 8 On all classes .. .. .. 1,791 10 4 Other expenses—Office salaries, £142 13s. On account of free places .. .. 474 17 2 4d. ; fees refunded, £1; examination Material for class-work .. .. 58 611 expenses, £7 12s.'; telephone, £5 sa. 3d. ; Subsidies on voluntary contributions scholarships, £84; library and prizes, and bequests .. .. .. 442 2 9 ] £96 Bs. 7d. .. .. .. .. 336 19 2 Reoeipts from other sources— Maintenance of school buildings— Foes .. • .. .. .. 1,662 2 9 Alterations, small additions, repairs, Voluntary contributions .. .. 1,296 1 8 repainting, &c. .. .. .. 1,935 18 7 Transfer from Ree3 Bequest Fund Ac- Rebuilding .. .. .. .. 522 18 11 count for apparatus, S l5 18s. 7d.; Un- Rent .. .. ~ .. 112 9 1 presented cheque written on, £1 10s.; House allowances .. .. .. 1,427 0 7 material, &c, sold, £59 19s. ; interest New school buildings, additional clisson deposit, 12s. 6d. .. .. .. 78 0 1 rooms, furniture, sites, &c. .. .. 2,918 5 0 Grants from Government for— Buildings, class rooms, furniture, &c, for Maintenance of school buildings, rebuild- manual and technical purposes — ing schools, &c. .. .. .. 3,174 6 8 School classes .. .. .. 794 9 9 House allowances .. .. ..- 1,391 14 5 Special classes .. .. .. 4,526 7 11 New school buildings, additions, furni- Other expenses—Purchase of sites (Laud ture, sites, &o. .. .. .. 3,333 9 6 Sales Account) .. .. .. 72 17 3 Technical-school buildings, furniture, &c. 1,614 7 0 Other receipts—Rents of sites, £75 13s. 6d.; material sold, £3 125.; donations and refunds, £17 11s. 3d. .. .. .. 96 16 9 Balance at ena of year .. .. .. 5,13113 0 £76,825 1 5 £76,825 1 5 18th February, 1903. Peed. Pirani, Chairman. W. J. Carson, Secretary.