E.—No. 3B.

branch of St. John's College, at the end of the same year, was recognized as the diocesan college for the training of Native teachers and Native candidates for holy orders. In the Session of the General Assembly, August, 1858, an Act was passed to grant the annual sum of £7000 for a term of seven years from the 30th of June, 1858, in aid of schools for the education of the Aboriginal Native Eace. This Act requires that instruction in the English language, and in the ordinary subjects of a primary English education, and industrial training should form a necessary part of the system in every school to be aided under this Act; also every such school was to be in connection with some religious body, and to be managed in such wise as the Governor in concert with the head or governing body should from time to time determine, and in the meantime should continue to be managed in such wise as at the passing of the Act. No alteration in the management of the Church of England Native Schools has been made since the passing of the Act of 1858, except in the constitution of the Native Education Board. That Board formerly consisted of two persons nominated by the Governor, and two elected by the managers of schools under the presidency of the Bishop. It now consists of persons appointed under the authority of the Diocesan Synod. At present the Board is composed of the following members : — Diocesan Board of Native Education: —The Bishop of New Zealand, ex officio; the Venerable Archdeacon Kissling, His Honor the Chief Justice, Sir William Martin, Knight, D.C.L.; Colonel Haultain. This change in the constitution of the Board was made with the written approval of Governor Gore Browne. Shortly after the return of Sir George Grey, His Excellency proposed that young men of the Native or half-caste race should be received into St. Stephen's School, Taurarua, who should be instructed in the business of the Survey Department —should receive secular instruction in a night school at St. Stephen's, and be under the religious instruction and domestic care of the Rev. Thomas Chapman. To this proposal the Board agreed, and, in order to meet the requirements of the new class of inmates, raised the whole scale of living in the institution, the Native Minister undertaking to provide for the extra charge of the scholars at St. Stephen's over and above the maximum of (£10) ten pounds per head allowed by the Act of 1858. On the removal of Mr. Gorst's school from Te Awamuta several of scholars were received into St. Stephen's, and employed in carpentering and printing. Throughout the whole period, from 1853 to this time, the trustees have never lost sight of the original plan of Sir George Grey—they have endeavoured to raise up teachers properly qualified to conduct Native Schools, and to present to the Bishops of New Zealand and Waiapu those whom they could recommend as candidates for holy orders. In the midst of much discouragement in other branches of their operations, they can look with much thankfulness upon the body of Native teachers and clergymen who have passed through St. Stephen's School. It will be sufficient to mention some of their names:—Rev. Daniel Kawhia, Rev. Moses Turei, Rev. Hare Tawhaa, Rev. T. Huata, Rev. Ihaia Te Ahu, Rev. Levi Te Ahu, Rev. Joshua Te Moanaroa, Rev. Seth Tarawiti. Diocese of New Zealand —Rev. Matthew Taupake, Rev. Philip Patiki. Teachers —John Williams Hipango, Wanganui; Hohaia Ngahiwi, Te Awamutu. The names of several of the above scholars of St. Stephen's have been publicly known by their steadfast adherence to their duty during the late war. Rev. Seth Tarawiti remained in charge of Mr. Ash well's station till the troops advauced to it, and then handed over all the property uninjured to the Bishop. Hohaia Ngahiwi was found in charge of the Mission Station at Te Awamutu when the General reached the place by a night march. John Williams Hipango lost his life in attacking the fanatics at Wanganui. Rev. Mohio Turei and other Native clergymen at Waiapu have steadily resisted the delusion which has led away many of their people. It seems then to be evident that the system of education begun in 1853 has not been without fruit. The annexed tables will show the number of scholars received into the schools under the Act of 1858, and the expenditure for each year. It will not be wondered at that all the schools except the Central Diocesan Institutions should have come to an end; but it will be seen that they were in a prosperous state till the country began to be disturbed by those causes which led eventually to war. There is reason to hope that whenever peace shall have been restored a great desire for education will revive among the Native youth, and that the schools will then be more efficient than before. The Native School Estates are now open for lease, as there is no longer any probability that they can be made productive by the industry of the scholars. St. Stephen's School Estate has been surveyed and divided into suitable allotments to be let for buildings of a superior class. Kohanga School Estate has been much improved under the care of the Rev. Dr. Maunsell. Hopuhopu has been 1 also partially cleared and cultivated by the Rev. B. G. Ashwell, and from its proximity to Ngaruawahia is likely to let to some advantage. From these sources the trustees hope to be able in time to draw an income sufficient to make the schools independent of public support; but the schools whicli still exist must be broken up if the grants by which they are now maintained be immediately withdrawn. I have, &c, G. A. New Zeahkd, The Hon. the Native Minister, Wellington. Bishop, &c.

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