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Wellington, June] Bth 1856. Sir, —I have the honor to acknowledge the receipt of your communication dated the 26th ultimo, requiring by order of his Excellency, a detailed account of the distribution of the sum of .£7OO, provided annually from the public funds for the Wesleyan Church at Wellington, towards educational purposes. In reply, I beg to inform his Excellency that only a portion of the sums hitherto received has been appropriated, and that, more in preparatory measures than in actual education. In explanation, I beg to observe, for the information of his Excellency, that after some preliminary steps had been taken towards the establishment of an Industrial School at Wellington, it was decided in November 1854 that the situation of Kai-iwi was more eligible for our first experiment of that kind, as it is nearer to the principal settlements of those tribes which are under our missionary teaching. The Rev. G Stannard was accordingly appointed to establish such an institution. From that time he has been eogaged in that department, but from the peculiar circumstances of the times, and particularly the difficulty of commanding labour, unexpected interruptions were occasioned. His attention was directed in the first place, to the necessary farm preparations, which are now so forward that we cherish the hope that when the crops in the ground shall have been gathered in, he will be in a condition to receive a considerable number of the Native youths and children belonging to the tribes connected with the Wesleyan Mission in this District. Our object is to place the farm in a condition to contribute at once towards the support of the Institution, and to make it ultimately a self-supporting one, when another and similar Institution will be formed. In accordance with this design, the monies expended have been devoted more to agricultural purposes than to the erection of buildings, which can be increased as the enlargement of the school most demand. I have the honor to enclose an account of the amount expended to the present time; the balance is available for the anticipated extension of the Institution. I have, &c., (Signed) James Buller. /

AN ACCOUNT OF MONIES EXPENDED FROM GRANTS RECEIVED FROM THE PUBLIC FUNDS BY THE WESLEYAN CHURCH AT WELLINGTON, TOWARDS EDUCATIONAL PURPOSES, TO THIS DATE JUNE 18th, 1856.

1. Wellington— £ s. d. Clearing and fencing school land .. .. .. 247 16 11 2. Kai-iwi — Erection of buildings .. .. .. .. 300 15 5 Fencing, clearing, and cropping.. .. .. .. .. 359 2 0 implements anil carriage .. .. .. .. .. 11l 13 0 Stock •• ■ .. .. 147 10 0 1,160 17 4