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the assistance of these valuable institutions should be so small. It is difficult to over estimate the good done by Public Libraries, especially in the remoter districts, when no other means exist of supplementing the work of the elementary school, or of gratifying whatever literary tastes may have been formed there. The Board has nothing to report on the subject of Penny Banks, beyond stating that it has noreason for rescinding its former resolution, to take no steps towards introducing these institutions intothe schools under its control. No District High Schools have as yet been established in Nelson, although an application from the' Board for permission to open two High Schools in the City of Nelson, for boys and girls respectively, has been for some time in the hands of the Minister of Education, who has deferred his reply until the report of the Commission on higher education has been received. Full information as to scholarships will be found in Appendix No. 5. Although the Board has found it inexpedient to adhere strictly to any rule as to " the number and quality of teachers in proportion to the size of a school, " the teaching staff in the larger schools in towns where the division of labour can be carried out effectually, is usually on a scale of one teacher to every 45 scholars in average attendance. Thus a school with a daily attendance of 130 would be allowed a head teacher and two assistants. In the country schools, where the classes assigned to each teacher are necessarily more numerous, an assistant is generally allowed when the number in daily attendance reaches 40. Although such a staff, when compared with that allowed in town schools, seems disproportionately large, the work of an assistant, in the absence of a Normal School or Training College, affords, at present, the only available means of training young teachers in school duties, and thus justifies, to some extent, their employment in cases where the numbers to be taught are comparatively small. The difficulty experienced in getting boys to enter themselves as pupil teachers, or to complete their course of training after entering, induced the Board to discontinue the system some years ago, but it is in contemplation to make a second attempt to supply the deficiency of masters who have had any experience in school work, by training a few pupil teachers under new regulations. I have, &c, The Hon. the Minister of Education. J. W. Barnicoat, Chairman.

List of members of the Nelson Education Board for 1879 : —J. W. Barnicoat, Esq., (Chairman) ; J. Shephard, Esq., W. Rout, Esq., 0. Dencker, Esq., M. Campbell, Esq., E. Malcolm, Esq., W. Wastney, Esq., H. D. Jackson, Esq., (resigned June, 1879) ; the Bishop of Nelson.

General Statement of Receipts and Expenditure for Year ending 31st December, 1879. Receipts. £ s. d. Expenditure. £ s. d. To Balances Ist January, 1879— By Office and BoardMaintenance Account .. .. 2,278 19 7 Salaries .. .. .. 100 0 0 Special Buildings Grants .. .. 2,147 17 2 Departmental contingencies .. 357 12 2 Grants from Government. — School Inspection— Statutory Capitation, (£3 155.) .. 10,101 7 0 Salaries .. .. .. 375 0 0 Grants to Committees (10s) .. 1,385 7 6 Travelling expenses .. .. 14] 14 6 Scholarships (Is. 6d.) .. .. 133 5 6 Teachers' salaries and allowances .. 9,306 8 1 Inspection subsidy .. .. 300 0 0 School Committees for educational Specially for Buildings .. .. 4,925 10 2 purposes .. .. .. 610 0 0 Payments by School Commissioners from Scholarships— Education Eeserves .. .. 292 12 3 Paid to holders.. .. .. 170 0 0 From Public Libraries vote .. .. 266 8 3 Expenses of examinations.. .. 2 2 0 Bank interest .. .. .. 138 14 9 School Buildings— New buildings .. .. .. 4,510 711 Enlargement, improvements and repairs 604 6 3 School furniture and appliances not included in preceding .. .. 466 15 9 Purchase of sites .. .. 180 0 0 Plans, supervision, &o. .. .. 137 11 9 Library Committees, out of Public Libraries vote .. .. .. 266 8 3 Eents of buildings .. .. 143 1 0 School material .. .. .. 923 3 4 Balances to next year— Building .. .. .. 1,174 5 8 Maintenance .. .. .. 2,501 5 6 £21,970 2 2 £21,970 2 2 J. W. Barnicoat, Chairman. W. C. Hodgson, Secretary. The above accounts examined and found correct. H. E. Curtis, Auditor.