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for which they have to be maintained is eight years. The cost to the Department can be estimated somewhat as follows : — £ Ist year- - 61 children at £1 a week for one year .. .. .. 3,172 2nd ~ 61 plus 50=111 children at £1 a week for one year .. .. 5,772 3rd „ 111 „ 50=161 „ .. .. 8,372 4th „ 161 „ 50=211 „ .. .. 10,972 sth „ 211 „ 50=261 „ .. .. 13,572 6th „ 261 „ 50=311 „ .... 16,172 7th „ 311 „ 50=361 „ .. .. 18,772 Bth „ 361 „ 50=411 „ .. .. 21,372 98,176 Loss estimated recoveries from parents at £7 per head per annum .. 13,216 Total for eight years .. .. .. .. ..84,960 Approximate average annual cost .. .. .. £10,620 Children admitted during 1919 on account of Mental Deficiency of Parents. Mentally deficient mother .. .. .. .. .. 30 Mentally deficient father .. .. .. .. .. .. 2 Both parents defective mentally .. .. .. .. .. .. 5 Total number of children .. .. .. .. .. 37 In 8 cases out of 30 not only were the mothers mentally deficient but, the fathers were habitual drunkards. Of these 37 children 18 were brought under the operation of the Industrial Schools Act as destitute children, 17 as being not under proper control, and 2 were guilty of petty offences against the law. In the majority of cases these children are also mentally deficient to a greater degree than the parents, and as such constitute a lifelong burden on the State. Presuming that of the 37 children referred to above 30 are cases for permanent care and control, and that this number will be increased annually by 30, the cost to the Government in maintaining them either in foster-homes or in special schools or mental hospitals during their lifetime, or for, say, a period of thirty years, will be, on an average, £8,268 per annum for the first ten years, £18,824 per annum for the next ten years, and £26,488 per annum for the third period of ten years. I will refer to this matter again at a later stage of the report under the paragraph headed " Care of the Feeble-minded." The numbers of epidemic orphans classified according to ages and districts are as follows : —

Purchase of Supplies. Prior to the year 1915 the managers of the various institutions purchased locally, and largely at their own discretion, the stores and supplies (clothing &c.) required for the institutions. In order to purchase these supplies more economically a Central Store was established, from which the bulk of the supplies of such items as clothing, household linen, bedding, hardware, crockery, cutlery, &c, are now supplied. By purchasing in bulk direct from the manufacturers it was found possible to standardize in all the leading articles either used or consumed. So far as the supply of clothing was concerned, the adoption of anything resembling a uniform was strictly avoided, for it was felt that as the majority of the children are. placed out in families it was desirable that they should be dressed as much like ordinary children as possible. In fact, in dealing with small children it has been found easier to place them if they are nicely dressed. An arrangement was also made for the supply direct from the manufacturers of certain staple articles of diet, and either for contracts or purchase in bulk of items suoh as tea, coffee, cocoa,, flour, sugar, oatmeal, soap, &c. At the same time a complete scheme for the working of the farms, gardens, orchards, &c, attached to the various institutions was instituted. As a result the institutions under the Department are now largely supplied from our own farms with such provisions as vegetables, fruit, jam, bacon, &c. The

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District. Under 5 Years of Age. [ IBetween 5 Years and 10 Years. Over 111 Years. Total. Auckland Wellington Hawkers Bay Taranaki Nelson and West Coast Canterbury Otago Southland 52 10 1 1 2 2 5 5 86 7 :i 2 4 1 6 6 75 8 5 2 7 4 6 4 213 25 9 5 13 7 17 15 All districts 78 115 111 304