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Industrial Operations. At present the land given to the Turanga School for cultivation is so limited in extent that the requisite quantity of food cannot be produced from it, but it is hoped that an extensive block of land which the Native proprietors have given up for this purpose at Waeringa Hilca may be made to yield food for a much greater number of schokrs, and that the cereal crops and potatoes from the soil, " lcrease . fr° m a flock of sheep now at pasture, and the produce of an orchard, may ultimately provide for the support of a gcod educational establishment in that locality. ST. STEPHEN'S SCHOOL, AUCKLAND. During the past year the average number in this school has been 4 males and 18 females. For particulars see the report of the Board, forwarded to the Honorable the Coloniai Secretary May, 20, 1855, It may be desirable to note, that it is contemplated to reorganize this school on a new principle, viz., to admit proficient scholars from other establishments, with a view to qualify them to become Native Teachers and Native Ministers in the country. One so trained has already gone forth from it as a Deacon in the ministry of the Church. TAURANGA SCHOOL, BAY OF PLENTY. By a recent account this school has increased its scholars to forty, but the Board has not yet seen an opportunity to have it regularly inspected. The preceding statement shows that upwards of 250 Natives are under a course of religious training and general instruction, and are being fed, clothed, and brought up in civilized habits in schools connected with the Church of England Board for the Northern Division, and this at the rate of £6. Bs. per head, a sum that would be found utterly inadequate for the purpose, if the schools were under any other management than they are at present, to say nothing of the much greater influence that the Missionaries are likely to have than any other teachers that could he found.

When therefore the Board considers the various influences that have combined to unsettle the minds of the Natives of late, it is of opinion that they have availed themselves of the education oftered as much as could have been expected. And the best proof that they value this mode of appropriating "the Native Reserve Fund" is given by the fact that they still continue to offer considerable tracts of land for the support of schools to be established in their neighbourhood, the benefit of "which they know they will receive one day or other, even though at present they have not the power or moral influence with the young men and children to induce a greater number of them to attend the schools. The Board is not aware of their (the natives) having offered similar grants for Resident Magistrates, or medical attendants, and such like purposes, to which some have wished to divert the funds, and in which case large jiortions of " the Native Reserve Fund" would pass into English hands, instead of being spent (as now) entirely upon the Natives themselves. Believing then, as the Board does, that the present appropriation of the Fund to the purposes of education is most just, it believes also that it is most acceptable to the Native people, and that a greater amount of benefit is conferred on them by this than any other mode of expenditure, calling out as it does the the gratuitous services and resources of Missionaries who have their heart in the work, instead of absorbing the funds in the salaries of those who might be otherwise appointed. The Board further desires to draw the attention of his Excellency to the civil influence and salutary effects which will be produced by the present mode of appropriating " the Native Remrve Fund." It has been one great object with the Government as well as the Missionaries to make these schools " moral garrisons," and the teachers trained therein " moral policemen" to keep the peace throughout the country. Not to speak of the children of hostile tribes thus brought together to form the strongest bonds of harmony and friendship with each other, and so spreading a spirit of conciliation where formerly malice and revenge prevailed, we may refer to some recent occurrences between the two races themselves respectively. When two Europeans were put on their trial in the Criminal Court for the murder of natives, the greatest excitement would have taken place had it not been for the Native teachers connected with those schools, who, by explaining, as far as they were instructed, the British law, and by using moral u-guments, restrained and quieted their relatives and tribes, who had assembled in great numbers. No force of arms was requisite to preserve order and maintain the peace on those occasions, because moral power had its hidden sway over their minds. Again, when Native youths plundered and ill-treated a European at Papakura, and the Government sent a summons to demand the culprits, the Natives refused, and some even threathened to fight, sending agents over the country to muster forces. This was prevented by the quiet reasoning and