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to the introduction of the system. The great difficulties inherent in producing an accurately graded list are acknowledged, but credit must be taken for the success with which the system has so far been carried out. Recently amended regulations impress upon Inspectors of Schools the necessity of making their investigation of a teacher's merits on the broadest lines possible, and of guarding against estimating the efficiency of a school or a teacher solely in accordance with measurable results, irrespective of both the manner in which the results have been produced and the effect the production may have had on the mental and spiritual development of the child as evidenced by his intelligence, spontaneity, and his interest in his work. It is hoped by proceeding on lines such as these to obtain the most accurate estimate possible of the fitness and ability of every certificated teacher in the service. Organizing Teachers. The employment by Education Boards of organizing teachers, begun in 19.19, was continued with success in 1921, twenty-four such teachers working in the various education districts. Their duty is to supervise closely the work of , mall groups of country schools placed under their charge, assisting the teachers in matters of organization, schemes of work, and method of teaching, and directing uncertificated teachers in their courses of study. Inspectors of Schools report very favourably on the success of the scheme, commenting on the marked improvement in the efficiency of small schools brought under this supervision. The salaries of organizing teachers range from £370 to £430 per annum, in addition to which a house allowance of £60 per annum is payable. Finances of Education Boards. (Tables Fl-F3 inE.-2.) The following figures show the receipts and payments of Education Boards for the years 1920 and 1921, under the various headings : —

The payments in 1921 exceeded the receipts by £5,077, the Board's cash balances being less by that amount at the end of the year than they were at the beginning. The total payments for administration from the General Fund were slightly less than in the previous year. In the case of six Boards the payments exceeded the receipts from the Government for the purpose, part of the balance being made up by receipts from local sources. In this connection attention is drawn to the fact that in the case of at least two of the Boards the expenditure on administration is greater than the total revenue available for the purpose, and that sooner or later

I 120. 1921. Receipts. Payments. Receipts. Payments. General Fund, expended on administration Teachers' salaries and allowances School and class libraries .. Conveyance and board of school-children Incidental expenses of schools . . Training of teachers Manual instruction Technical instruction Public-school buildings (including rebuilding) and sites Maintenance and rent of school buildings Subsidies and voluntary contributions, scholarships, refunds, &c. Receipts from lecal sources £ 41,842 1,525,892 810 20,147 87,454 103,537 69,251 133,372 266,760 £ 47.626 1,530,561 2,028 19,306 87,824 107.968 81,573 147,864 300,350 £ 43,289 1,646,627 1,698 23,491 92,337 138,402 99,643 206.122 368,436 £ 46,765 1,642,940 1,984 22,367 94,112 136,441 104,474 207,810 .391,794 106,114 25,588 130,240 34,667 108,090 21,324 123,796 50,442 49,357 68,389 Totals .. 2,430,124 2,490,007 2,817,848 2,822,925