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while statistics prove that in other parts of the British Empire the change is in the opposite direction. In support of the latter statement we quote the report of the Board of Education, England, for the year 1900 : " The average salary of a certificated master has risen, since 1874, 35 per cent., and of a certificated mistress nearly 48 per cent." In New Zealand, on the other hand, it is shown in the annual report of the Minister of Education for the same year that the average salaries paid to teachers have fallen. We are convinced that discontent exists among the great majority of teachers, but whether the adoption of a colonial scale of staff and salaries will completely remove this feeling remains to be seen. Among the reasons urged in favour of a colonial scale are the following : — (1.) The great inequalities existing in the payment of salaries in schools of the same class; (2.) The disproportionate allotment of salaries in individual districts ; (3.) The frequent reductions in salaries ; (4.) The increasing cost of maintenance of small schools. Although the Government has paid the same capitation allowance to Boards, it does not follow that equal justice has been meted to them. Thus, in the Westland District there are thirty-six schools with a combined average attendance of 1,139, or an average of 3T6 pupils in each school. On the existing capitation of £3 15s. the amount payable to the Board is £4,271 55., which for each school averages £118 13s. In the adjoining district of North Canterbury the average number of pupils to each school is 8375, representing on the same basis an income of ,£324 Is. 3d. The scale of staff and salaries submitted herewith shows that a small school costs relatively much more than a large one. This enables certain Boards to pay higher salaries to their teachers than can be paid in districts where the average number of pupils in each school is small. In order to make this point clear we give the range of salaries at rates paid in 1899. This is quoted from the statement that forms part of Exhibit 2 : — Average Attendance. Range of Salary. 20 ... ... ... ... £70 to £115 100 ... ... ... ... £160 to £225 250 ... ... ... ... £203 to £275 600 ... ... ... ... £258 to £375 In order to equalise the salaries of teachers that are in charge of schools with the same average attendance, it is necessary either to give higher capitation to small districts such as Westland, Grey, and Marlborough, or, for salary purposes, to regard the schools of the colony as belonging to a single district. In the latter case the income by way of capitation must be so allotted to the teachers that the same salary will be paid to every teacher in schools of the same size. Any further attempt to secure equality is impracticable, although much evidence was given respecting the varying cost of living in different parts of the colony, and even in different parts of the same education district. On the whole, the members of the Commission consider that, though in the past this difference was very considerable, it is not sufficient to require at the present time special recognition, and the rapid improvement in the means of transit will still further reduce whatever inequality may at present exist. It is generally conceded that the Boards have used the funds placed at their disposal to the best advantage. The grant of £3 15s. for each pupil in average attendance being found to be inadequate, the Boards received from 1878 to 1887, inclusive, " special capitation allowances" of from 4s. to 10s. towards the expenses of School Committees. Since the latter year no capitation beyond the £3 15s. has been paid. Notwithstanding that the commercial, economic, and social conditions of New Zealand have compelled Boards to extend their work in various directions, the capitation grant for teachers' salaries and allowances to School Committees, &c, remains practically the same as in 1878. The insufficiency of the grant of £3 15s. is conceded by your Excellency's Commission, which requires us to prepare a colonial scale of salaries based on a payment of £4 per annum for each child in average daily attendance.

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