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The work in design is now devoted to designing for practical purposes, such as jewellery, repousse-work, leather-work, carving, stained glass, lithography, furniture, needlework, &c, and in every case the student has carried out his design in the finished material. The study of plant and animal forms has been continued during the year, students as far as possible making their studies from plants and trees in the Botanical Gardens. The work of the artistic crafts department comprised executing in material the designs made in the design classes. lam anxious to add to the number of crafts taught, and next year I hope to include pottery and hand-loom weaving. The etching class lias made steady progress, and some very creditable work was shown at the exhibition of students' work. The work of the modelling department lias greatly improved, one study from life showing exceptional technical ability. During the year several students carried out work in marble, and also soft stone. A large furnace for firing terra-cotta would be a great help to the modelling classes. I find considerable difficulty in obtaining suitable i Ids tor the modelling and painting life classes. The absence of the professional model in New Zealand is a distinct drawback to advanced figure-work. If it were possible for the Education Department to obtain the services of, say, two professional models, a male and female, and divide their time between the four principal schools, the figurework would greatly benefit thereby. Excellent models are available in Australia. The architecture department has done good work and has been well attended. I look forward to the time when the registration of architects becomes compulsory in the Dominion : then a emu prehensive course of study will be possible At present only a small number of architects' pupils can be persuaded to go outside their daily requirements, which in many cases are very narrow. Good work has been done in the classes for signwriting and poster-work. Classes for teachers and pupil-teachers have been held on Saturday mornings and Monday evenings in elementary drawing, modelling, and design. Tin' time given by teachers to this work is too small to give the best results. The teaching of drawing lias been continued at the Training College by the staff of the School of Art with good results. Next year more time will be available, and better work should be obtained in consequence. The school obtained five honourable mentions for drawing and painting from life, still-life, and anatomy in the National Competitions amongst schools of art in Great Britain. Some fifteen students passed the Advanced Art Examinations held by the Board of Education in London. 1 regret that next year the changed conditions made by the Board of Education will prevent colonial students from sitting for the English examinations. The time has arrived when a New Zealand set of art examinations are necessary, and unless some arrangements can be made the advanced work of our Art School will suffer. Local examinations are not sufficiently important, and, however high the standard may be, there are no means of comparison with other centres in the Dominion. Two scholarships of £25 and eleven scholarships carrying free tuition were awarded to students of the day and evening classes. A travelling scholarship is very necessary to enable a brilliant student to visit Europe, and I trust that the Government will see its way to maul one in the near future. It is gratifying to hear that four past students of this school- have competed with success in competitions held by European art academies, and that one student lias obtained an important position on the art staff of a large engraving company in England. No changes have occurred in the staff during the year. Thanks are due to Messrs. Gibb, ami Hammond and Co., for special prizes, and also to W. H. Montgomery, Esq., for a valuable prize for landscape-painting, and to the executors of the late Mr. William Sey for prizes in connexion with the signwriting class. In conclusion, I have to thank the Board for the support given to mc in my efforts to further the benefits and growth of the school. R. Hbbdman-Smith, A.M.. K.S.A.M.. Ate., Director. Statement of Receipts and Expenditure for the Year ending 31st December, 1912. Receipts. £ s. d. Expenditure. £ s. d. Balance, Ist January, 1912 .. .. 743 1 8 Salaries .. .. .. .. 1,666 13 4 Students' fees .. .. .. 411 17 0 Instructing pupils of Boys' High School in Grant from North Canterbury Board of woodwork and drawing .. .. 100 0 0 Education for instruction in drawing .. 90 0 0 Contribution towards expenses of Registrar's Government capitation— office .. .. .. .. 80 0 0 For technical classes .. .. .. 1,190 17 7 i Contribution towards travelling-expenses of For free places .. .. .. 151 9 9 [ members of Board .. .. 4 16 5 Government grants— ! Insurance .. .. .. .. 16 8 0 For material .. .. .. .. 53 17 2 Gas .. .. .. .. .. 72 211 For furniture, fittings, and apparatus .. 37 4 4 Repairs.. .. .. .. ~ 14129 Grant from Museum, Library, and School of Advertising .. .. .. 21 16 8 Technical Science Endowment .. .. 400 0 0 Printing, stationery, &o. .. .. 37 19 6 Contributions from Boys' High School for Fuel .. .. .. .. .. 17 5 9 instructing pupils in drawing and wood- Expenses of Speech Night and exhibition .. 5 6 11 work .. .. .. .. 120 0 0 Requisites for classes .. .. 8 6 0 Contributions from students of life classes Washing, cleaning, and appliances .. 215 3 towards cost of model .. .. .. 613 4 Grant to sports fund .. .. 3 3 0 Interest .. •• •• .. 16 15 4 Fittings .. .. 9 7 0 Concrete bridge .. .. .. .. 2 7 0 Sundries .. .. .. ~ 8 6 10 Apparatus .. .. .. .. 18 2 0 Subsidy to life classes .. .. .. 75 0 0 Books ifor school library .. .. .. 34 15 6 Material .. .. .. .. 33 6 4 Grant to still-life classes .. .. 21 14 7 Telephone .. .. .. .. 5 5 0 Official postage-stamps .. .. .. 5 0 0 Scholarships .. .. .. .. 50 0 0 Grant for prizes.. .. .. .. 14 8 2 Alteration to gas fittings.. .. .. 66 14 2 Typewriter .. .. .. .. 15 0 0 Painting exterior of buildings .. .. 14 0 0 Half-share of cost of exhibit at Art Gallery 6 8 9 Balance .. .. .. .. 790 14 4 £3,221 16 2 ! £3,221 16 2 Geo. G. Mason, Registrar.

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