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The departmental regulations respecting scholarships are of a very general character, each Board being left to make its own rules, subject to the approval of the Minister. It is required, however, that the Boards' regulations shall set forth —" (1) Whether the scholarships are open to all children of school age, or are to be competed for by pupils attending public schools only; (2) any other conditions of candidature (for example, as to age); (3) the annual value of each scholarship, the term for which it is to be held, and the condition of tenure (as to good conduct and diligence); (4) the subjects of examination; and (5) the minimum proportion of marks in each subject, and of total possible marks, which will be necessary to qualify for a scholarship." Training of Teachers. Training-schools on a comparatively large scale have been established at Christchurch and Dunedin by the Education Boards. The Christchurch institution has been in full operation since the beginning of 1877; that of Dunedin was established in January, 1876. Information relating to these institutions is furnished by the Principals' reports, printed in the Appendix. The Auckland Board, in the absence of a training institution, has maintained classes or departments for the instruction and training of probationers. Information respecting these classes is contained in the Inspector's report. The Board has selected Wellesley Street school as the practising school to be employed in connection with the proposed training college, and an addition to the building is now in course of erection. The arrangements for the future management of the institution are not yet completed. The Board has been in communication with Mr. E. J. Gladman, 8.A., Principal of the Melbourne Training College, from whom valuable information and suggestions have been received. By an arrangement with the department, the Wellington Board has erected, on a site adjoining the Thorndon Public School, a building containing accommodation for a training department, a school of art, and a colonial educational museum. It is intended that the Thorndon Public School shall serve the purposes of a practising school in connection with the training institution. When the four training colleges at Auckland, Wellington, Christchurch, and Dunedin are in full operation, they will undoubtedly prove of much service, not only to the districts in which they are respectively situated, but also tq the adjoining smaller districts, in which it would be impossible to establish fullyequipped institutions of this character at the present time. Public Libraries. Eor the first time claims have been made by municipalities for subsidies under " The Public Libraries Act, 1869." These have been made by the boroughs of Auckland, Masterton, and Palmerston North. The amount of the library rates levied by them is £414 6s. 9d., and a -sum equal to this has been necessarily taken out of the vote of £5,000 granted by the General Assembly last year. The balance has been distributed amongst the several Education Boards according to the population of their respective districts, as prescribed by " The Public Libraries Subsidies Act, 1877." The following are the payments out of the vote : Auckland Borough, £309 ; Palmerston North Borough, £30 Bs. 5c1.; Masterton Borough, £74 18s. 4d.; Auckland Education Board, £877 ss. 6d.; Taranaki, £81 15s. 6d.; Wanganui, £207 16s. 9d.; Wellington, £381 6s. 3d.; Hawke's Bay, £199 145.; Marlborough, £75 2s. 3d.; Nelson, £244 6s. 9d.; North Canterbury, £840 75.; South Canterbury, £193 135.; Westland, £215 Bs. 6d.; Otago, £1,008 16s. 9d ; Southland, £260 Is.: total, £5,000. The reports of the Boards furnish information respecting the public libraries in their respective districts. School Penny Banks. It was stated in last year's report that the several Education Boards had received a supply of rules for the management of school penny banks, and also sets of deposit books, ledgers, and journals for distribution free of charge amongst the School Committees of their respective districts. A copy of the rules was

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