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The report of the Lady Principal of the Girls' High School is hereunto appended. The largest number of pupils on the roll for the year has been 173, and for the last quarter 148. The arrangement adopted last year, whereby the boarding establishment was put under Mrs. Martin's charge, while the Lady Principal lived apart in a private residence, has been continued during the year. In consequence of the tenor of certain anonymous letters and other statements which appeared in the public newspapers, the Lady Principal and nearly all the members of the school staff placed their resignations in the hands of the Board about the end of August. The immediate appointment of the Eoyal Commission of Inquiry, above referred to, induced the Lady Principal and her assistants, at the Board's earnest request, to hold the tender of their resignations in abeyance ; and matters remained in this position up to the close of the year. Extract from Prospectus of the Boys' High School, February, 1878. The Board of Governors has taken steps to obtain from Home a Eector for the Boys' School, and has intrusted the duty of selecting a properly-qualified gentleman to a committee, consisting of the Eev. Dr. Abbott, Headmaster of the City of London School; Dr. Morrison, Eector of the Glasgow Academy; and Sir Julius Vogel, K.C.M.G., the Agent-General for New Zealand. It is hoped that the new- Eector will be able to assume his office at the commencement of the third quarter of the session.* In the meantime the school will be conducted by Mr. Daniel Brent, M.A. (Cantab.), as Acting-Eector. The classical department will be placed under the charge of Mr. Alex. WilsoD, M.A., the English Master, who will be assisted in this department by Mr. E. Peattie, M.A., and Mr. G. Montgomery. The other departments —mathematics, English, science, the commercial branches, modern languages —remain under the same masters as formerly, the Board having full confidence in the zeal and efficiency of the staff of the school. The Board has resolved to spare no effort to elevate tho moral tone of the school and the character of the education afforded. It will also be its endeavour, by enforcing a strict examination at the entrance of the Upper School, and by providing the best means of instruction, to make this department really a high school, not merely for Dunedin, but for the whole educational district of Otago. The Boys' Boarding House (formerly known as the Bectory) has been placed under the care of Mr. G. M. Thomson, the Science Master, who receives for his services in this respect a salary from the Board. In consequence of this arrangement boarders are assured of a comfortable home and most liberal treatment, at a much lower rate than it has been found practicable to charge under the system usually adopted of making the master dependent for his emoluments upon the profits to be derived from the boarding fees. It is expected that country settlers will avail themselves largely of the advantages thus offered them. Extract from Prospectus of the Girls' High School. Tho ordinary course of instruction comprises a thorough English education —viz., reading, grammar, composition, geograpl^, history, arithmetic, algebra, geometry, natural science, writing; also French, German, class singing, drawing, and needlework. The classes are all conducted by teachers thoroughly efficient in their several departments, while the Lady Principal, in addition to her own special classes, exercises a general supervision over the whole school. Competent visiting teachers are engaged for music, singing (private lessons), dancing, gymnastics, dressmaking, and ornamental work. The school is divided into an Upper and Lower Department, each comprising two classes; these classes are again subdivided when necessary. No examination is required for admission to the Lower School; but it is expected tbat those entering shall be able to read and spell fairly, and shall ow the four simple rules of arithmetic. The aim in the Lower School is to lay the foundation of a sound English education, the studies being reading, spelling, grammar, composition, arithmetic, geography, object-lessons, writing, and class singing. Very simple lessons in history are also given. When the pupils reach the second class they begin French, unless the parents desire otherwise. The studies become gradually more difficult as the pupils are ready to be moved upward. When the C Class is reached, simple science lessons take the place of object-lessons. Botany and physiography form the science course of the two lower divisions of tho Upper School. In the highest division, chemistry will be added to botany. No pupil will be allowed to enter the Upper School without having passed a satisfactory examination in all the subjects taught in the Lower School. Latin will form a subject of study for any girls who intend to compete at the New Zealand University examinations. This language will be commenced when the pupils enter the Upper School. Lessons on the laws of health and on social economy are given as time and opportunity can be found for them. In the Upper School, mathematics form an important part of the school work, as a means of training the girls to habits of steady and accurate thought. The pupils of the A Class are also introduced to the study of English classics, a book of " Paradise Lost " and one of Shakespeare's plays being read critically each session. The aim of the educational course given in the Girls' High School is to make of the girls thoughtful young women, who will, when they leave school, continue to add to the knowledge acquired during their attendance there, and thus fit themselves for being useful members of society. Needlework is taught in all classes in the school except the highest. The girls who reach it are supposed to be able to sew well, and the subjects of study in that class are so numerous that the school time does not admit of instruction being given in that branch. The Lady Principal desires to draw the attention of parents to the importance of class singing. This is valuable, not only as a healthy exercise, but as a means of cultivating the voice, giving facility in reading music, and thus preparing the pupils for taking private singing lessons. * The Committee have selected, aa Rector of the school, Mr. A. Macdonald, M.A., late Classical Master of the Edinburgh High School.