E.—l.

at the age of eleven or twelve from the environment of the primary school and place them in separate schools or in departments attached to post-primary schools where they will be given the opportunity of displaying their natural aptitudes, inclinations, and interests, and of indicating whether they should continue their education at a secondary school for academic or professional courses, or at a technical school for vocational courses in industry, commerce, or the domestic arts. While the financial depression continues it will not be possible to establish intermediate schools freely throughout the Dominion, but where the conditions are suitable schools of this new type will be established. Owing to the financial stringency it was necessary early in the year to abandon the practice of awarding University bursaries to all holders of higher leaving certificates issued by the Department. A system of University National Bursaries has been established. These are of the same value and are held under the same conditions as the former bursaries, but are awarded on the results of the University Entrance Scholarship Examination in either a full or a partial range of subjects. It was decided to increase somewhat the number of bursaries for engineering, agriculture, architecture, and home science. A survey of the system of accrediting for senior free places in secondary, technical, and district high schools was carried out by means of the Intermediate Examination. The marking of most of the candidates' papers was done by the teachers, whose assessments were checked by the Department. The results of the examination were very satisfactory, a high percentage of candidates qualifying for free places and much valuable information being obtained by both the Department and the teachers. For the purpose of assessing the value of the system which was in operation prior to 1931 of awarding certificates of proficiency largely on the recommendation of the head teacher all candidates were required to sit for the examination, the papers for which are prepared by the Department. Except in the case of small country schools, where a synchronous examination was held on the Ist December, all candidates were examined personally by an Inspector. The results showed a higher percentage of passes than in 1931, the figures being 79-5 and 67 respectively. Under the No. 5 Scheme considerable improvements have been made in the grounds of many schools in all parts of the Dominion, with the result that sites which were once far from attractive are now beauty spots. 2. TYPES OF SCHOOL. In the previous section of this report reference is made to the passing of legislation and the making of regulations for intermediate schools and departments. The schools affected were the junior high schools and departments. They remain as previously, except for the change of name and the restriction of the courses to two years. Although in the following table the highest class is stated as Form 11, in one school permission was given to retain a Form 111. The present position in regard to our school system is outlined below. The Native schools and the Correspondence School are under the direct control of the Department; the other schools given in Table A are controlled by the various Boards in accordance with departmental regulations. In addition to the types given in that table there exist a number of private primary schools, private secondary schools, and Native schools (both primary and secondary). These are under the control- of various private bodies, but the range of classes is substantially the same as that given for corresponding schools in the table. Some of these private secondary schools are " endowed " —i.e., are maintained partly by revenues derived from grants of land made by the State. There are no private technical schools. Apart from certain special schools for the mentally backward (three) and for the deaf (one) —the following are the types of State schools that are at present in operation. The New Zealand Institute for the Blind is privately controlled.

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