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110 male and 176 female—of all ranks. Of these, thirty-nine are classed as pupil-teachers. The proportion of male to female teachers, as has been noted in previous reports, has been steadily decreasing for many years past. In the year 1901 the sexes were reported as " being about equally represented." The Board notes with satisfaction that an honest effort to secure classification has been made by quite a number of those previously uncertificated, but regrets that a more earnest and general response to the Board's injunction to secure classification, expressed by special circulars from time to time, has not been made. In some cases the unclassified teachers in the service are in receipt of fairly good salaries, and it becomes a question for serious consideration whether the Board will not in the immediate future so rearrange the staffs that an exchange in the positions held by uncertificated teachers witli those who, by application and diligence in study, have passed the prescribed examination will not be brought about. Pupil-teachers.—The number of pupil-teachers in the service is decreasing year by year. This is accounted for partly by the fact that in schools of Grade IV, where previously a pupilteacher was employed, a mistress is now the first addition made to the staff. In some schools also of higher grade the head teachers prefer the appointment of a fully qualified assistant in lieu of two pupil-teachers. This is in accordance with regulation, and there are several schools where such an alteration in the staffing has been given effect to. Again, our high and district high schools are turning out fairly large numbers of students who have passed the Matriculation or Junior Civil Service Examinations, and these (when appointed to the pupil-teacher staff) require to serve only a limited apprenticeship, and are so set sooner to occupy more responsible positions in the service. At the examination of pupil-teachers held in December last only two candidates presented themselves in certain complementary subjects necessary to fully qualify for a higher grade, the others in this branch of the service having otherwise qualified for their respective positions. All these facts point to the gradual elimination of the pupil-teacher as a factor in our educational system. In this district only thirty-nine pupil-teachers —fifteen male and twenty-four female— are now employed. Scholarships.— National Scholarships. —Scholarships under the Act and regulations were in December last held by three girls and four boys. The period of tenure of the three first named expired with the close of the year. These scholarships are all tenable at the Southland high schools, with the exception of that held by a boy who was, by request, granted a transfer to Christchurch. As the result of the recent examination held in December the Board, with the approval of the Department, awarded three additional scholarships—two non-resident of the value of £40, and one resident of the value of £10, all tenable for a period of three years. The total amount paid to National Scholarship holders for the year was £250. Board Scholarships —The annual examination for Board's Scholarships was held, as in past years, in the month of December, when seventythree candidates presented themselves. Of this number, forty-one qualified for scholarships or for Junior Free Places at a secondary school; the others failed to satisfy the requirements of the examiners. After making provision for current scholarships, the Board allocated the surplus funds available as follows : (1) in awarding two Senior Scholarships, one (non-resident) of the value of £30, and one (resident) of the value of £5, both tenable for a period of three years; (2) in awarding six Junior non-resident scholarships of the value of £30 each, and thirteen resident scholarships of the value of £5 each, tenable for a period of two years. In consequence of the establishment of a High School at Gore, it is more than probable that an alteration will be made in the regulations during the coming year to make scholarships tenable at the nearest high school, instead of, as in the past, exclusively at the Southland high schools. There were on the books of the Board at the end of the year the names of nineteen holders of Junior Scholarships—ten boys and nine girls—and nine holders of Senior Scholarships—six boys and three girls—and to these a sum of £640 was paid during the year. Of course, the possession of a scholarship—either Board's or National—carries with it the right to a free place at a secondary school. Inspection of Schools.—On this topic it is here unnecessary to comment at any length. A perusal of the exhaustive report submitted by the Inspectors will afford ample information as to the condition of our schools and the progress of education generally throughout the district. Physical Culture.—The services of Mr. I. G. Galloway as physical instructor during the year have been attended with excellent results. The time-table of instruction, as in the previous year, has been adhered to. Mr. Galloway, who is also instructor to the pupils attending the Boys' and Girls' High Schools, devotes all his spare time during the term vacations to a visitation of the Board's country schools. Training of Teachers. —During the past winter months regular Saturday classes for the instruction and training of teachers have been successfully carried on. Prominence has been given this year to the instruction of uncertificated teachers in some at least of the subjects necessary to enable them to qualify for a certificate. As a consequence, less attention to the study of purely manual and technical subjects has been possible, and so the special grant made by the Department for the training of teachers has not this year been fully absorbed. In view of the fact that so many of our teachers are as yet uncertificated, and that so few comparatively have had the advantages lo be derived by attendance at a properly equipped normal school or training college, it seems to the Board imperative that special attention should be paid to the more essential subjects necessary to obtain for the rank and file that hall mark of efficiency—a teacher's certificate. The Board suggests that the conditions under which the special annual grant for the training of teachers is made should be so modified that Boards might, under certain restrictions, be permitted to allocate at least a portion of the funds available to cover the cost of instruction necessary to the equipment of teachers in subjects not purely manual or technical, but a knowledge of which is none the less essential to success in their profession. Teachers' Superannuation.—The Board notes with pleasure the more satisfactory basis on which the superannuation of teachers, after long and honourable service, has been placed by the

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