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The Teaching Staff. —Changes, too, have occurred on the teaching staff, and first I must refer to the death of Professor Salmond. Dr. Salmond retired from active work at the end of 1914, but in consideration of his distinguished career as a professor he remained till his death Professor Emeritus of Mental and Moral Philosophy. His death removes from our midst a most notable personality, for Dr. Salmond combined some of the rarest gifts : he was a distinguished scholar, a writer of clear and elegant English, and a teacher who had the happy faculty of presenting difficult subjects in an interesting and inspiring manner. His memory will long be cherished by a large body of students. A further change has been occasioned on the staff by the resignation of Dr. Marshall, Professor of Geology, who has been appointed to the post of headmaster of the Wanganui Boys' College. Though deeply regretting his departure, the Council congratulates Dr. Marshall on attaining so responsible a position, in the educational life of New Zealand. The vacancy thus occasioned has been filled by the appointment of Dr. W. N. Benson, formerly Lecturer on Geology in the University of Sydney. During the period under review, too, the Council has found it desirable to make the appointment of a Professor of Modern Languages. This Chair has been filled by the appointment of Mr. George Edward Thompson, M.A., who since the year 1902 has been Lecturer on French in this University, and has proved himself eminently worthy of professorial status. Medical Bursaries. —l take this opportunity of expressing the Council's appreciation of the action of the Hon. Minister of Public Health in instituting bursaries for fifth-year students of medicine. Such bursaries will certainly be a means of encouraging worthy students, and they should assist the Public Health Department to secure suitable house surgeons for the various hospitals. The number of bursaries granted this year is five, and the Council trusts that it may be possible to grant a greater number in future years. University Extensions. —Despite the war, the past year has been a notable one in the development of the University. On the Ist June, 1916, the foundation-stone of the new Medical School building was laid, and on the 2nd April in the present year the building was declared open by the Acting Prime Minister, Sir James Allen, K.C.B. The Council feels confident that with this splendid addition to its Medical School the teaching of medicine in the University of Otago has been brought to a high level of efficiency. Another notable extension has been in the home-science department. The number of homescience students has so increased that the Council was obliged to enlarge the hostel accommodation. In order to do this an. adjoining property comprising two dwellinghouses was purchased, and one of these houses was adapted to give extra sleeping-accommodation. I desire here to place on record the Council's appreciation of the generous action of the Vice-Chancellor, Mr. John Roberts, C.M.G., whose donation of £450, together with the Government subsidy, made it possible for this work to be completed. Finance. —Your Excellency will no doubt appreciate the fact that so many important developments in the University's activities could not be carried out without incurring additional financial obligations, and the Council, in view of the national character of its enterprises, feels justified in asking for further financial assistance from the Government. With this end in view I would draw Your Excellenc.y's attention to the position as affecting the University's reserves. By the Otago University Reserves Act, 1904, the Government, on account of the Council's financial difficulties, undertook to make good any shrinkages that might occur in the rents, thus guaranteeing uniform revenue from the reserves. For some years the rents of the various reserves diminished, but at the present time they are some £2,500 in excess of the amount which is paid to the Council. Considering the fact that the Government has now more than recovered the amount of the deficiencies which from time to time occurred, the Council respectfully trusts that Your Excellency may cause an. amendment of the Act to be submitted to Parliament providing for payment to the Council of the whole of the rents of the Council's reserves. Whilst such an amendment would undoubtedly improve the Council's financial position, may I remind Your Excellency that the Council is still under a heavy debenture debt of .£7,000. The Council is grateful for the grant of £1,000 received during the past year for the reduction of this debt, and trusts that the Government may liquidate the balance remaining. The War. —This report would be incomplete without some reference to the war. At present, as nearly as can be ascertained, some 325 Otago University students, past and present, have left these shores to take part in the great conflict. The teaching staff has also been weakened by enlistments: Professor Waters, from the Mining School; Professor Pickerill, from the Dental School; Messrs. J. M. Paterson and A. C. Stephens, Lecturers on Law, have also joined the colours. Drs. O'Neill, Fergus, and Julian are still doing good work at the front, whilst we have been able to welcome back Dr. Barnett and Dr. Maodonald. Some of our students have won coveted distinctions, and have thereby brought honour to their University; others have achieved the highest of all honours by the sacrifice of their lives. It will be the University's saored duty to perpetuate the memory of these fallen soldiers, that their names may ever be honoured, and that future generations of students may be inspired by their bright example to do their duty, counting not the cost. I have, &c, Andrew Cameron, Chancellor. Note. —Reports of the Deans of Faculties not published this year.