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Object, of Probation System. The object of the probation system is not only the reformation of the delinquent child in the natural surroundings of his own home, for in many instances it also assists in the amelioration of the home conditions and is the means of bringing the parents to realize more fully their obligations in respect of their children. Economies effected by Reforms. In addition to the benefit derived by the child from the application of the probationary system, the changes have also been the means of effecting considerable economies. By the closing of certain schools and the reduction in the numbers main- £ tamed in other schools the annual saving is .. .. .. 0,300 The increase in the annual revenue derived from farming operations due to niore practical and systematic working is .. .. .. .. 2,500 The annual saving through the establishment of a central store and the standardization of materials used, and the adoption of more businesslike methods of purchasing is .. .. .. .. .. 4,500 The saving effected in maintenance by the application of the probation system during the past twelve months was .. .. . . 0, 050 Estimated total saving for the year .. .. .. £19,350 Since the end of the financial year substantial additional savings, amounting to approximately £3,500, have been effected by the further reduction of the numbers in residence at two of the industrial schools. Number of Children belonging to Industrial Schools. The total roll number of children belonging to industrial schools and receivinghomes at the 31st December, 1917, was 3,252. Of these, 1,934 were boys and 1,318 girls. The children are classified as follows :— In residence — In Government industrial schools . . . . .. .. 305 In private industrial schools .. .. .. .. .. 331 Total .. .. .. .. .. .. 699 Boarded out — Prom Government schools (including receiving-homes) .. .. 1,210 From private industrial schools .. .. . . . . . . 9 Total .. .. .. .. .. .. 1,219 Placed out in situations .. .. .. .. .. .. 040 With friends on probation .. .. .. .. .. .. 390 In private institutions, hospitals, absent without leave, in prison, &c. . . 298 Grand total .. .. .. .. .. .. 3,252 Expenditure on Industrial Schools and Probation System. The net expenditure for the last financial year, including expenditure under the probation system but exclusive of capital charges for additional buildings, works, &c, was £42,580, showing an increase of £1,276 on that of the preceding year. The number maintained at the end of the year was 2,054. It should be mentioned, however, that the increase during the year of the rate of payment for boarded-out children from Bs. to 10s. a week, necessitated by the increased cost of living, involved an expenditure of £5,000 in excess of the previous year's figures. The contributions from parents under orders of Court, agreements, &c, amounted to £14,359, being at the rate of £7 per head of those maintained. This is an increase of £2 7s. per head over the rate of the preceding year.

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