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of the scheme, and to render it an institution for promoting education both for Maoris and Europeans. The only difficulty of carrying it out at present is the insufficiency of funds. At presenc efficient teaching is secured for the Maoris ; unless the funds be supplied from the Native Department there is no probability of the school becoming a boarding establishment, though I should be glad if the Commissioners were to .see their way to recommending that a higher capitation grant should be made, and that it should be unaccompanied by conditions which prevent our availing ourselves of it. My present plan in carrying out the trust is to continue the existing arrangement which I have made with Mr. Ronaldson to the end of his term agreed upon, of three years from June, 1868; and if, at the expiration of that period, the rental is sufficiently increased, to extend the benefits of the trust to those who are not Maoris, but come under the definition of the trust as " children of the Queen's subjects of all races, and of children of other poor and destitute persons, being inhabitants of islands in the Pacific Ocean," and to endeavour still to carry out the defined purposes of the trust for giving " religious education, industrial training, and instruction in the English language to the youth educated therein or maintained thereat." In carrying out these objects I should be guided by the means at my disposal, and provide that, while religious instruction should be given, it should be under a conscience clause, of which I heartily approve, provided it is not so worded or enforced as to prevent the imparting religious instruction as part of the school lessons, giving at the same time liberty and opportunity to parents who wished to withdraw their children at such times. With a conscience clause so administered I do not anticipate any so-called " religious difficulty." Provided that the Maoris, so long as they were in the neighbourhood, had the first benefit of the trust, I should be glad to see the institution extend its operations, and it might form the nucleus of a large industrial school, not for its own vicinity, but for the country altogether—an area which is mentioned in the original trust deed, viz., islands in the Pacific Ocean. I venture to suggest that some clause enabling a revision of such trusts, to be made at distant intervals, might be inserted in making any such appropriations in future, as it would act as a stimulus to existing applications, and prevent accumulated abuses or funds lying wholly idle. I have, &c, To the Commissioners for inquiring into Andrew Bubn Nelson. School Trusts, &c. Native School, Wakaeewa. evening school. 1868. May ... Number on book ... .20 ... Average attendance ... 838, June ... „ ... 17 ... „ ... 7& July ... „ ... 27 ... „ ... 13 T 6 T August ... „ ... 28 ... „ ... 10iJ DAY SCHOOL. 1868. July ... Number on book ... 24 ... Average attendance ... 10J „ , August ... „ ... 27 .-.. „ ... 8| The attendance for 1869, for the worst months in the year, when there is much money in the hands of the Natives :— Morning. Evening. 1869. January... ... ... 7 ... ... .. 4 February ... ... 5 ... ... ... 3 March ... ... ... 6 ... ... ... 6 April ... ... ... 8 ... ... ... 6 „ May ... ... ... 4 ... ... ... 4 The Natives are often away at different parts of the Bay for weeks together, during which time the teacher must of course still be at his post, unless he be a migratory teacher following them up wherever they go. Rental of the Wakaeewa Estate. £ s. d. Income from rents, 1859 to 1863 ... ... ... ... 212 14 8 1863 to 1873 ... ... ... ... 329 0 6 1873 to 1880 ... ... ... ... 353 14 4 at which time, and in 1881, the leases will expire. I had thought two or three years ago of keeping Saxon's land open for the purpose of industrial training, but it would have been unproductive, and I certainly thought it would be more beneficial to the trust to lease it, and it was leased accordingly. I think it would be highly beneficial if some person were appointed or constituted to make annual reports of the administration of trust estates, which might be published for general information . Nelson : Church Hill, 1 acre.—The objects of the trusts are carried oat. Waimea South ; No. 5, 10 acres 37 perches.—A church, in accordance with the trust, is on this section, and service is performed. A Sunday school is also carried on there. There is a Provincial Government school close by, which gives daily instruction.