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boys. The boys and girls of Class 111. only were expected to answer the whole paper, and the marks obtained by them averaged 57 per cent, for the boys, and 45 per cent, for the girls. A more difficult paper was set for Classes IV. and V., and it was well answered by a good proportion both of the boys and girls. The average marks obtained were 55| per cent, for the boys, and 54 per cent, for the girls. It gives me pleasure to add that, notwithstanding the two or three weak points noted above, the general impression produced on my mind by the whole course of the examination is a highly favourable One, The discipline and tone of the school, which almost surely go hand in hand with efficiency, seemed to me to be all that could be desired. With regard to the two highest classes, to the condition of which one naturally attaches the greatest importance, I was happy to find them, on both sides of the school, a good deal stronger in all their subjects than I had ventured to expect, and it reflects credit alike on the governing body, the Sector, and the teaching staff, that so high a standard slsottld already have been reached in a' school so recently established. The Chairman, Board of Governors. John Shand.

WAITAKI HIGH SCHOOL. 1. GoVEBNOES' RePOBT. fkiij— Oamaru, 6th May, 1884. I have the honour to forward herewith the annual balance-sheet duly audited, and also to report as to the' progress of the school. The Eector arrived from England on the 19th April, 1883, and school work was commenced on the 15th May. The school opened with nineteen boys, whose number was increased to twenty-four by the end of the term. Next term the attendance rose to twenty-eight, and in the third term to forty-one. There is good reason to suppose that the numbers will be much higher shortly. The school year has been divided into three terms of a little more than thirteen weeks each. The fee is £10 10s. per annum, £8 Bs. for brothers. There are already llide boarders in the Rector's house, and there is every probability of a rapid increase. It was found necessary soon after the opening of the school to provide a mathematical master. A suitable one was found in Mr. Algernon C. Gifford, who gained the very distinguished position of thirteenth wrangler of the Cambridge Mathematical Tripos of 1883. He arrived in the colony last October, and commenced work immediately. Proper provision has now been made for the teaching of Latin, Greek, French, German, mathematics, English, and certain branches of physical science. When more boys are in attendance it will be necessary to provide for the teaching of drawing, chemistry, and physics. Drill instruction has been already arranged for. It was mentioned in last year's report that £3,500 had been borrowed on mortgage for the erection of school buildings. It has been found necessary to increase this sum to £4,000. This amount did not cover the whole expenditure, the Board having to take out of its funds a yet further sum for the completion of the present building and the improvement of the grounds. The Board was driven to this step, as it was unable to dispose of the sections which had been set apart for sale to cover building expenses, owing to the great commercial depression and consequent stoppage of the sale of land. The present expenditure exceeds the revenue by about £400 per annum. There will therefore be a great strain on the Board's resources for some little time; but this will be in some measure lessened as the number of pupils increases, and as greater revenue is derived from higher rentals of the Board's property as the leases fall in. Unfortunately, the majority of the leases have a long term to run, and it is only in a few cases that the Board will reap the benefit that may accrue in this direction. The Board has great pleasure in stating that the general result of the school work is verysatisfactory. . I have, &c, The Secretary, Education Department. Geobge Sumptee, Secretary.

2. Statement of Eeoeipts and Expendituee for Year ending 31st December, 1883. Receipts. £ s. d. Expenditure. £ s. d. Balance from 31st December, 1882, petty cash 4 10 0 Balance from 31st December, 1882, bank Eents collected .. .. .. 330 010 overdraft .. .. .. .. 3,414 19 6 Deferred-payment Account, reserves sold .. 420 0 0 Payments on account of school buildings .. 176 17 2 Fees received .. .. .. .. 86 14 0 Fencing, ploughing, labour, &0., at site .. 193 611 Loan on school buildings .. .. .. 4,000 0 0 Surveys and valuations.. .. .. 9 2 6 Home commissioners, and passage-money of Headmaster .. .. 100 6 8 Salary, Headmaster .. .. .. 300 0 0 Interest.. .. .. .. .. 94 5 3 Auctioneer's commission on sales .. .. 8 15 0 Costs, brokerage, &c.,on £4,000 loan .. 53 5 3 Wages of caretaker .. .. .. 44 6 8 Insurance of buildings .. .. .. 8 0 0 Bates .. .. .. .. .. 10 8 4 School appliances .. .. .. 88 14 8 School books (£lO3 14s. 2d., less £34 2s. 7d. sold) .. .. .. .. 69 11 7 Fuel and cleaning .. .. .. 9 13 0 Printing, advertising, and stationery .. 27 11 3 Clerk's salary .. .. .. .. 15 0 0 Incidental expenses .. .. .. 3 3 4 Balance forward, bank open account .. 212 9 0 Balance forward, petty cash .. .. 18 9 £4,841 4 10 £4,841 4 10 I have compared this abstract with the Treasurer's books and vouchers, and I certify it_ to be correct. —H. Livingston, Auditor.

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