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The roll-number for the third term of 1906 was 189: the numbers for 1907 were—first term, 213; second term, 216; third term, 217. During the third term 39 pupils paid fees, 4 held school free places, 33 held senior free places, and 142 junior free places. There was no lower department. Three teachers were absent on sick-leave during the year —one for two terms, one for a term and a half, and the third for two months. The health of the pupils during the first two terms was particularly good, but an epidemic of influenza has made the average attendance low for the third term. The school was visited during the third term by Mr. T. H. Gill, M.A., LL.B., on behalf of the Inspector-General of Schools, and by Mr. Isaac, Inspector of Technical Classes. The pupils of the school were unusually successful in the University examinations of December, 1906. Six sat for the Junior University Scholarship, and four were placed in the original Scholarship List, taking third, fourth, eleventh, and thirteenth places, while a fifth girl was third on the original Credit List. As the four winners of Junior University Scholarships were also the winners of the four Senior National Scholarships for the Province of Canterbury, a choice had to be made, and, two electing to take Senior National Scholarships, a vacant Junior University Scholarship was awarded to-the pupil on the Credit List. This constitutes a record result for anj μ-irls' school in New Zealand. Two pupils sat for Medical Preliminary, and both passed; II for Matriculation, and 10 passed; 17 for Junior Civil Service, and 12 passed, 10 being , placed in the Credit List. Thirtynine pupils entered for Senior Free Place Examination, and 16 passed, one heading the list for North Canterbury Board of Education scholarships. The results of the Senior Free Place Examination, compared with the results of the University examinations, seem to show that the two-years course is not sufficient for the average child to thoroughly cover the work of the programme for the examination. This is particularly the case with the cleverer children taking the classical and mathematical course. When a modern language is studied in addition to Latin and mathematics and the compulsory subjects (arithmetic, English, and one subject out of the science group), three years is certainly required to do the work well. A bright pupil at a secondary school taking the above full course has less chance of passing the examination for Senior Free Place than a child of ordinary ability at a secondary or district high school who devotes the whole school-time to subjects for examination only. As both the Matriculation and University Degree Examinations require a wider range of subjects than the Senior Free Place Examination allows, the pupils looking forward to a University career are seriously handicapped during their first two years at school. The evil would be remedied entirely were the Junior Free Place, in the case of pupils taking classics and mathematics in addition to a modern language, extended to three years instead of two. M. V. Gibson. 2. Work of the Highest and Lowest Classes. Highest. —Form VI, Upper —All work as for Junior University Scholarship Examination. Subjects—Mathematics, English, French, Latin, science (elementary botany), and physics (heat). Lowest, —Form IV, Junior —The large majority of pupils in this form hold proficiency certificates for Standard VI. The work includes higher work than that of Standard VI in primary subjects and a first" year's course in secondary subjects. Subjects—English (grammar, composition, literature); arithmetic; French; natural science (botany or physiology); history of England, or geography; geometry or shorthand, or extra spelling and writing; Latin, or bookkeeping, or letter-writing ; drawing (elementary design and colour-work); plain sewing or dresscutting or cooking. 3. General Statement of Accounts for the Year ended 31st December, 1907. Receipts. £ s. d. Expenditure. £ a. d. Government grants for sites, building, fur- Balance at beginning of year .. .. 137 011 niture, &o. .. .. .. .. 3,000 0 0 ! Management—Office salaries .. .. 60 0 0 Government capitation— Teachers' salaries .. .. .. 1,984 16 2 For free places .. .. .. 1,645 16 8 : Grant in aid to boardinghouse .. .. 50 0 0 Under Manual and Technical Instruction , f Examiners' fees .. .. .. 3 3 0 Regulations .. .. .. 45 17 2 j Other examination expenses .. .'. 811 6 Current income from reserves .. .. 288 7 2 j Scholarships .. .. .. .. 75 0 0 Interest on moneys invested and on unpaid j Prizes .. .. .. .. .. 23 16 3 purchase-money .. .. .. 220 15 2 Printing, stationery, advertising, and books 48 6 9 School fees .. .. .. .. 418 8 6 Cleaning, fuel, light, &c. .. .. .. 21 9 4 Pees for gymnastic class .. .. .. 510 0 Government grants for site, buildings. furVoluntary contributions on account of niture, &c. .. .. .. .. 3,156 13 6 general purposes of the school .. .. 12 18 0 : Purchases and new works .. .. 29 14 11 Other receipts—Proceeds from oooking class 811 1 Fencing, repairs, &o. .. .. .. 912 8 Balance at end of year .. .. .. 18 3 6 Miscellaneous—lnsurance .. .. 8 18 5 Other expenditure— Inspection of reserves .. .. .. 6 12 0 Expenses of oooking class .. .. 114 0 Rent of sports-ground .. .. .. 2 0 0 Rent of temporary class-rooms .. .. 11 5 0 j Sundries .. .. .. .. 16 210 £5,664 7 3 £5,664 7 3 G. W. Russell, Chairman. A. Cracroft Wilson, Eegistrar. Examined and found correct. —J. K. Warburton, Controller and Auditor-General.