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junior scholarships. Four boys and three girls qualified for the senior and seven boys and eight girls qualified for the junior scholarships. The Board's scholarships are of the annual value of £l 5 for pupils who can reside at home whilst attending a secondary school, and £40 for pupils who are obliged to board away from home, and they are tenable for two years. To qualify for a scholarship pupils must obtain at least 60 per cent, of the total marks obtainable, and 25 per cent, of the possible marks in each subject. Six scholarships were awarded by the Board—three in the senior and three in the junior division. The senior award was made to two boys and one girl, and the junior award to three boys. The total number of marks obtainable for the senior was 800, and the marks obtained by the successful candidates were 583, 579*5, and 558. The total number of marks obtainable for the junior was 750, and the successful candidates obtained respectively 578, 574, and 550. By a resolution of the Board of Governors of the Wanganui Girls' College, the two girls in the senior competition who qualified, but did not obtain scholarships, were awarded free education for two years at the Girls' College. The whole of the pupils who qualified for junior scholarships were from the Board's schools, and of the seven who qualified for the senior four were from the Board's schools, one from the Wanganui Girls' College, one from the Wanganui Convent School, and one from the Wanganui Collegiate School. Pupil-teachers.—At the annual examination of pupil-teachers, held in June, the following are the number of candidates who presented themselves in each class : Third Class—l 3 males and 17 females; total, 30. Second Class—s males and 16 females ; total, 21. First Class—6 males and 9 females; total, 15. Of the Third Class, 20 passed and 10 failed; of the Second Class, 11 passed and 10 failed; of the First Class, 12 passed and 3 failed. The whole of the candidates who took up secondary subjects and passed the First Class examination belong to the Board's schools. Finance.--—The Board's statement of receipts and expenditure shows a credit balance of £2,677 13s. 10d. in the General Account, and a credit of £2,064 16s. 4d. in the Building Account. The statement of assets and liabilities, however, shows that there are liabilities amounting to £349 6s. in the General Account, leaving a net credit balance of £2,328 7s. lOd. In the Building Account there is an asset of £110 due on account of insurance on the Mount View residence, lately burnt, and liabilities amounting to £1,678 7s. 5d., leaving a net balance of £512 Bs. lid. to meet the pressing demands of the whole educational district for the current year. The Board has already shown, in a detailed statement forwarded to the department, that it required the sum of £8,500 to meet the claims for urgent works, and that, if the residences already referred to were erected, and the remainder of the buildings painted and repaired, the amount would total up to over £17,000. In the face of this statement, the Board is practically without funds. As a matter of fact, the Board has, since the end of the year, been obliged to trench upon the General Account to the extent of £1,000 for building purposes; but even that will not meet onefifth part of the urgent requirements of the district. The Board has already shown that the rapid settlement on this coast, and the number of small schools which it is obliged to maintain, practically costing more than the capitation grant, entitles it to special consideration in the allocation of the Government grant for buildings; and unless its representations on this point receive speedy and careful consideration its functions as an administrative body will become to a great extent neutralised. For further information respecting the state and progress of education in this district 1 have the honour to refer you to the report of the Inspector of Schools. I have, &c, The Hon. the Minister of Education. Gilbert Carson, Chairman.

General Statement of Receipts and Expenditure for the Tear ending 31st December, 1895. Receipts. £ s. d. Expenditure. £ s. d. To Balance at beginning of year— By Office staff —Salaries .. .. 406 6 8 On Building Account .. .. 2,963 17 6 Standard examination expenses .. 50 16 9 On General Account .. .. 2,111 12 11 Departmental contingencies .. 223 2 7 Technical School .. .. .. 18 18 6 j Members' expenses .. .. .. 193 1 6 Government grant for buildings .. 4,118 8 4 Inspectors'salaries .. .. 731 1 8 Other receipts for buildings— Inspectors'travelling-expenses .. 318 17 7 Sites and old buildings sold .. 140 10 6 Examination of pupil-teachers .. 69 1 7 Sites leased .. .. .. 26 13 8 Teachers' salaries and allowances (inLoans .. .. .. .. 170 0 0 eluding rent, bonus, &c.) .. 24,415 12 7 Refund .. .. .. .. 0 6 3 Incidental expenses of schools .. 1,402 9 6 Contractors'deposits .. .. 186 8 9 Training of teachers .. .. 56 12 3 Government statutory capitation .. 27,390 17 4 Scholarships — Scholarship grant .. .. .. 446 16 6 Paid to scholars .. .. .. 440 0 0 Inspection subsidy .. .. .. 300 0 0 Examination expenses .. .. 616 6 Training of teachers — Fees from Transfer to Technical School for teachers .. .. .. 31 0 0 teachers' fees .. .. .. 180 0 0 Payments by School Commissioners .. 827 16 8 School buildings— Donations.. .. .. .. 12 0 2 New buildings .. .. .. 1,492 010 Rent of buildings .. .. .. 5 0 0 Improvements of buildings .. 2,951 14 5 School fund refunded .. .. 9 18 1 Furniture and appliances .. .. 514 4 1 . Technical School— Sites .. .. .. .. 121 10 3 School fees .. .. .. 96 8 0 Plans, supervision, and fees .. 229 12 10 Education Board—Teachers'fees .. 180 0 0 Contractors'deposits refunded .. 216 6 3 Government grant .. .. 200 0 0 Technical School — Rees bequest refund .. .. 18 18 6 Teachers' salaries and fees .. 260 0 0 Science apparatus .. .. 75 0 0 Furniture and stationery .. .. 24 17 11 Working and other expenses .. 79 18 9 Balance at end of year— On Building Account .. .. 2,080 16 4 On General Account .. .. 2,641 2 6 Technical School .. .. 36 11 4 £39,236 13 2 £39,236 13 2 A. A. Browne, Secretary. Examined and found correct.—James Edward FitzGerald, Controller and Auditor-General,