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plete in the printer's hands, 1 was enabled on my return to revise the letterpress and bring it up to date. I have received from medical men in all parts of the world numerous requests for definite information about the New Zealand springs. This information can now be supplied, at any rate in large measure, and I believe that a growing interest in the unique waters of this country will be excited. At the same time, medical men practicing in New Zealand will have brought to their notice a valuable therapeutic weapon for coping with chronic disease, of which many of them are at present hardly sufficiently aware. The Sanatorium. —The demand for beds at the Sanatorium, especially on the women's side, has for some years past been steadily outgrowing the accommodation. During the past twelve years the facilities for treatment and the number and variety of treatments have been steadily extended; also the number of beds on the male side has been considerably increased; but what may be termed the social or domestic side of the institution has remained absolutely at a standstill. The dining-room is now hardly large enough to accommodate the patients, and will certainly need extension at no distant date, while the sitting-rooms are wholly inadequate in size, especially on the men's side, and are depressingly poorlj , furnished and dingy. In a separate report I have formulated a scheme to provide bright, sunny, cheerful sitting-rooms, including two " openair rooms," together with more beds and more modern and sanitary lavatory-accommodation. With every year I have become more impressed with the importance of fresh air and sunshine in the treatment of disease, and especially of chronic disease, and the site and aspect of the Sanatorium invite an extension of treatment on these lines. The domestic servants' quarters, too, are wholly inadequate for the increased household of patients and nurses. In the scheme already mentioned provision is made for extra servants' bedrooms. The Hospital. —The Rotorua Cottage Hospital was opened soon after I left for England. It was exceedingly badly needed, and, although larger than originally designed, the accommodation is already proving unequal to the demands made upon it. The Isolation Hospital, though under my care, is in charge of the Hospitals Department. It, together with the operative work at the Cottage Hospital, entails a considerable amount of extra work on the staff. I may say that my responsibilities in connection with the three hospitals have been more than doubled during the last few years. The Nurses' Home, built about the time I left, has already proved to be too small for the greatly increased staff, and will certainly need enlarging in the near future if it is to provide both for the Hospital and the Sanatorium. I would suggest a bungalow annexe to afford a quiet sleeping-place during the daytime for the night nurses. The Maori Epidemic. —Of this I can only speak at second-hand, but the amount of work devolving thereby on the Acting-Balneologist may be gauged by the fact that he performed 2,800 vaccinations, a large proportion of which necessitated long journeys into the back country. The Baths. —Work is proceeding steadily and with a minimum of friction, and my thanks are due to the staff for the manner in which they have carried out their duties. The sphere of action of the new and old baths is now clearly defined, and one is a necessary complement of the other. At the new baths are carried out all treatments requiring skilled attendants or special apparatus; the old baths are suitable for many cases which would receive little benefit at the new. I find both establishments invaluable, and use both for appropriate cases. The old pavilion baths, however, are growing very dilapidated, and I fear that their reconstruction cannot be put off much longer. The Laundry. —The additional hospital, and the consequent additional staff and patients, have increased the work at the laundry also. The improved machinery now being installed should, however, lighten the labour of the workers here. Other Spas. —l have been unable since my return to visit any springs outside Rotorua, but will inspect Hanmer and Te Aroha during the coming winter, when I hope also to make a special physical examination of several other springs, especially in the North Auckland district. Statistics. —The following figures will give some indication of the amount of work put through during the year. The receipts, owing to a diminished income at the baths and from private patients, are considerably below previous years, but this I believe to be due wholly to temporary causes, as already explained; the Sanatorium receipts are higher than ever. The association of Rotorua witji tourist traffic is so firmly rooted in the public mind that 1 think that, in many quarters, it is hardly realized even yet to what an extent it is not merely a tourist resort but a hospital, and a great hospital, for the cure of disease which would otherwise have to go untreated. And I would record here my deliberate opinion, after visiting many spas in many lands, that I have seen no spa where more downright honest balneological work is put through, or where the patient of moderate means is better catered for.

In-patients treated in the Sanatorium during llic tear ending 31st March, 191} h Better ••• •■• ■•• ■•■ • 36 Much better ... ■ •• ■ • ... ■•■ ... 36 Very much better, or cured ... .. .. ... ... 83 No better ... ... ... •■■ •■ •■ ... 13 Died ... •■• ■•■ ••• ••■ ••• • Remaining in ... ... .. ... ... ... 22 Total ... . ... ... ... ... 190