E.—2

tenance and rebuilding. If Boards had since the date of this circular regularly transferred sums amounting to 7 per cent, of their maintenance grants, such sums would have totalled only £28,000 by the end of 1911, and there would still be £28,000 unaccounted for. It is of the utmost importance that this depreciation fund be •kept as far as possible intact, and Boards are urged to expend their school-building maintenance grants solely on the purposes for which the moneys were appropriated by Parliament—viz., maintenance and rebuilding of schools and small additions, &c, the cost of which latter item should not exceed in the total 7 per cent, of the maintenance grant. . These calculations and remarks are based on all the building transactions undertaken by all Boards, and must not be taken to refer especially to any individual Board. Chatham Islands. During the year 1911 there were four schools in operation in the Chatham those at Te One, Te Boto, and Makarakau on the main island, and the school on Pitt Island. Towards the end of the'year most of the pupils from Pitt Island crossed over to Owenga—the headquarters of the Chatham Island Fisheries Company—and in the early part of the present year the Department decided to close the Pitt Island School and open one at Owenga under the headmastership of Mr. Hutchinson of the Pitt Island School. There are now four schools on the mainland. The total number of pupils on the roll at the end of 1911 was 87, the average attendance being 80. . The total expenditure on the schools for the year under review was £734 ss. 5a., made up as follows: Salaries and allowances to teachers, £654 12s. 6d. ; repairs &c, £10 Is. ; scholarships, £40 ; inspection, £13 9s. Bd. ; other expenses, £16 2s. Id. The schools at Te One and Te Roto were examined m the month of January of the present year in accordance with the regulations for the inspection and examination of public schools in New Zealand. The results were very satisfactory. It was not found possible to visit Matarakau and Pitt Island, where there were 7 and 3 children respectively, and the classification of the pupils was accordingly left in the hands of the.teachers. Three candidates presented themselves for the examination held m connection with the Chatham Island Scholarship in November, and a scholarship was awarded to Frances Lilian Guest, a pupil of the Te One School.

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Attendance. School. Names of Teachers. Salaries at End of 1911. Allowance for Conveyance of Mean of Average ! Mean of Weekly Goods. Attendance for Roll Number for Four Quarters of * Four Quarters of 1911. 1911. Te One Guest, J. J. .. H.M. Guest, Mrs. L. R. .. S. Seymour, Miss E. .. Pt. 3 Lanauze, Miss G. .. Pt. 3 Hutchinson, J. .. M. Silcock, H. S. .: M. Russell, Mrs. E. A. .. F. £ s. d. 210 0 0 8 10 0 45 0 0 45 0 0 94 10 0 112 10 0 90 0 0 £ 25 38 45 Pitt Island Te Roto ., Matarakau 15 io ii 15 24 28 7 8 55 79 92 605 10 0