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and more especially when, from his having been engaged in the service of the Board, the Examiners have ample means or judging on these points. This system has worked well, and has not onlysucceeded in securing promotion to many deserving teachers, but has excluded, in the least invidious manner, some whom it would have been most undesirable to admit into the teaching staff", but who would have found no difficulty in passing the literary examination. Beyond the minute above referred to, the Board of Examiners is fettered by no rules or regulations whatever, the Board feeling that, to enable such a body to act efficiently, the fullest discretionary power is necessary. SCHOLARSHIPS. The following provision for higher education is at present made in the Nelson Education District:— 1. A free education at Nelson College for two years has been offered annually since 1868 by the Governors of Nelson College to two boys, between the ages of twelve and fifteen, who have attended a public school within the City of Nelson for a period of not less than two years. The boys entitled to hold these exhibitions are selected by an annual competitive examination. 2. Two scholarships, tenable for two years, and of the value of £40 a year each, have been annually offered from December, 1870, until the abolition of provincial institutions, by the Nelson Provincial Council, to boys between the ages of twelve and fifteen, who had been in attendance at some public school within the country districts of the Province of Nelson for a period of not less than two years. The Governors of Nelson College also gave a free education at the College for two years, of the value of £12 10s. yearly, to the winners of these scholarships, w-hich were awarded according to the results of an annual competitive examination. The examiners have hitherto been one of the masters of Nelson College, and the Inspector of Schools for Nelson. Since the abolition of provincial institutions, the Education Board has continued to grant scholarships on the same conditions as were laid down by the Provincial Council. Residence within the College walls is not insisted on as a condition of holding scholarships, but the recipients are required to reside within such distance from the College (to be approved of by the Board) as will enable them to attend with regularity, and otherwise to secure the full benefits derivable from that institution. Regularity of attendance, good behaviour, and due diligence in the prosecution of studies, are essential to the continued holding of a scholarship, and the certificate of the Headmaster to that effect is required from quarter to quarter. Suggestions for the Establishment of Scholarships. The Board think that, with respect to boys, no better plan can be adopted than to continue to offer, as hitherto, exhibitions to Nelson College for two years, of the value of £40 per annum each, to be competed for by any boys who have attended schools, under the control of the Board, in the country districts, for two years previous to the examination, which should be conducted by one of the College masters, and the Inspector of Schools. In consideration, however, of the increasing good effect that has been produced by such scholarships in Nelson, and the widening circle of schools that take part in the annual competitions, the Board would strongly recommend that the number of scholarships offered annually be increased from two to four. The Governors of Nelson College, on being applied to, have expressed their willingness to allow such inspection of the College by the Board's Inspector as may be necessary to satisfy the Board that the terms of the Act in reference to such scholarships are complied with. Although no bigh school for girls is at present established in Nelson, the Board deem it a part of the scheme of scholarships, and one without which it would be manifestly incomplete, to make a provision for the higher education of girls attending Nelson public schools, in all respects similar to that proposed for boys, so soon as an institution is established in Nelson that can be fairly said to fulfil the requirements of the Education Act. The knowledge that scholarships to such an institution would be given would probably go far towards hastening its establishment. Pupil-teachers. There are, at present, no pupil-teachers in the employment of the Board. Some years ago a system of training pupil-teachers, who might in time become qualified to fill up vacancies in, at least, the smaller schools, was initiated. After a trial of several years, the plan was abandoned, assistant teachers being then substituted for pupil-teachers. Not only was great difficulty experienced in getting suitable candidates, or, indeed, any candidates, to come forward, but few of those who entered the service, and actually completed their three years' course, cared to follow the teaching profession. Inspection. Each of the Nelson schools has hitherto been visited twice a year by the Inspector. On one of these occasions he confines himself to watching how the ordinary work of the school is being carried on by the teachers, in conformity with the time-table, and to recording, at the same time, such peculiarities in the method of teaching, whether excellences or defects, as may seem to him noteworthy. At the close of the inspection, suggestions for tho future conduct of the school are usually made. On the Inspector's second visit, the attainments of every scholar in every subject taught are tested, in accordance with a programme prepared by the head teacher, the result being recorded on a tabulated form, in such a manner as to show the number of passes and failures in each branch. The principles upon which these examinations are conducted differ considerably, in several respects, from that usually adopted where the system of examining under standards, and recording results, is in vogue. Instead of rejecting or passing a 'scholar on the aggregate number of marks obtained from the different subjects taken up, it has been thought fairer to give passes for each subject, so that both teacher and scholar may get full credit for all good work done, while deficiencies in any subject cannot fail to be noticed. There are also advantages in allowing the teacher to suggest how" B—H. 1.