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When the building is opened the Board hopes to see a steady increase in the attendance at the different classes. Finance. —The balance-sheet herewith will show that the administration of the year's revenue has been carried out on a sound basis. With the strictest economy in every department, the Board closes the year's operations with a satisfactory balance on Maintenance Account, and a debit on buildings which the Government grant will more than cover. Committees. —The valuable assistance rendered by the School Committees has done much to assist the Board in its administration of the Education Act, and well deserves placing on record. I have only further to add, from the point of view of the Board, that education in this district is making steady and sensible progress in our best schools, and we have not a few which may be classed as such. The standard reached will compare with the best in any other district. Our schoolhouses, of the latest style and construction, are almost in every respect excellent. The Board has in its service a considerable and growing body of trained, competent teachers, many of them highly so, animated by enthusiasm and a high sense of duty in the discharge of their very arduous and responsible functions, to whom the best thanks of the Board are due, and are now tendered. The country is making great sacrifices in the cause of education, and it is a duty laid on all connected therewith to see, so far as they are concerned, that the best results are obtained. There are a number of questions connected with the system agitating the minds of educationists, on which considerable diversity of opinion exists, such as the centralisation of the inspectorial staff, the passing by inspectors or the classing by the teachers of pupils, the subjects to be taught and their relative value and place in the curriculum, uniformity of class-books, &c. These questions should be grappled with and settled ; but before settlement they should be fully discussed in the light of day. Discussions and resolutions formulated on the side of the teachers only may lead to a one-sided settlement, for, with the very best intentions, the feeling is apt to grow that the schools exist for the teachers more than for the pupils. In the interest of the system, and for the better settlement of these questions, I have to suggest that the Minister of Education take the necessary steps to call together at the end of the year a congress of the Inspectors and representatives of teachers from all the education districts to meet himself and the Inspector-General for the purpose of openly discussing these matters. I have only further to suggest that the questions to be discussed should be prepared and circulated in time to enable those interested to come prepared to discuss them with the fullest knowledge. I have, &c, The Hon. the Minister of Education. J. B. Blair, Chairman.

General Statement of Beceipts and Expenditure for the Year ending 31st December, 1890. Receipts. £ s. d. Expenditure. £ s. d. To Balance at beginning of year— By Office staff—Salaries .. .. 505 5 0 Dr. on Building Account £18 4 11 Departmental contingencies.. .. 351 14 2 Cr. on General Account 1,277 15 8 Inspectors'salaries .. .. .. 650 0 0 1,259 10 9 Inspectors' travelling-expenses .. 196 0 0 Government grant for buildings .. 2,406 10 9 Examination of pupil-teachers .. 41 19 0 Newtown Committee refund .. 14 0 Teachers' salaries and allowances (inGovernment statutory capitation .. 30,769 10 5 eluding rent, bonus, &c.) .. 25,026 9 7 Scholarship grant .. .. .. 609 13 7 Incidental expenses of schools .. 2,145 19 5 Inspection subsidy .. .. .. 300 0■ 0 Rents of schools .. .. .. 434 10 8 Payments by School Commissioners .. 780 3 4 Scholarships— Pupil-teacher entrance-fees .. .. 915 0 Paid to scholars .. .. .. 594 9 0 Terrace School donation for scholar- Examination expenses .. .. 31 12 5 ships .. .. .. .. 9 9 0 School buildings— Students' fees, Technical School .. 357 14 3 New buildings .. .. .. 1,779 14 4 Improvements of buildings .. 1,702 19 0 Furniture and appliances .. .. 416 7 7 Sites .. .. .. .. 163 5 0 Plans, supervision, and fees .. 191 6 2 Technical School .. .. .. 1,087 0 7 Balance at end of year— Dr. on Building Account £1,864 2 3 Cr. on General Account 3,048 15 5 1,184 13 2 £36,503 11 1 £36,503 11 1 A. Dorset, Secretary. Examined and found correct. —James Edward FitzGerald, Auditor and Controller-General.

Annual Beport of the Art Director. Sir,— Wellington, 17th March, 1891. I have the honour to submit my report for 1890. 1. Primary Drawing has made considerable progress during the past year. The teachers have in the majority of cases shown commendable aptitude in their working, and good results are shown generally. Model drawing has made considerable advance, notably in the Newtown and Thorndon Schools, and, as a number of the assistant teachers have now studied the subject, I hope to report its introduction into the majority of city and large schools during the year 1891. During the earlier part of the year difficulty was^ experienced in obtaining the'materials required for drawing. This has been met by a recommendation to the chief city stationers as to the" nature of the requirements. Models are necessary to the successful working of drawing in primary schools, and sets have been obtained to meet this requirement, and are offered to schools at half-price. There appears, however, to be considerable difficulty in having the models supplied, owing to want of funds by the various Committees. The scholars holding full first-grade certificates have received