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reduction of the Government grant, that the existing checks upon extravagant applications on the part of teachers, and wastefulness on the part of scholars, wrere wholly insufficient. From the beginning of 1880, therefore, copy- and exercise-books only have been supplied by the Board gratuitously, all other books having been charged to scholars at cost price. Scholarships.—The system of scholarships for boys attending Nelson primary schools, which has now been in operation for many years, without any substantial modification having been found necessary, has worked so well that it is to be hoped that no attempt will be made to tamper with its proved efficiency by the introduction of any material alterations. According to the present scheme, two scholarships of the value of £40 per annum each, and tenable for two jears, are annually offered for competition to boys attending country schools. The Governors of Nelson College, who have throughout cordially co-operated with the Board in this matter, supplement the foregoing grant by giving a free education at Nelson College for two years to the winners of the two scholarships. A similar offer of free education is also made by the Governors to the two town boys who stand first in an annual competition. It may be mentioned that the Marlborough Education Board also offers annually a scholarship, of like value and to be competed for in like manner with the Nelson scholarships, to a boy attending the public schools in that district. The examinations for both districts are conducted by the second master of Nelson College and the Inspector of Schools for Nelson and Marlborough districts. The good effects of the stimulus thus given upon both teachers and scholars in the primary schools can hardly bo over-estimated. Nelson College is also a gainer from the constant influx of the brightest and most promising scholars from the primary schools, and it is matter of record that the ranks of those who have most highly distinguished themselves for some years past at the College have been largely recruited from former winners of scholarships. The Board, however, regrets its inability to speak in similar terms of approval, or even of hopefulness, with respect to the provision for the higher education of girls. Nothing definite has yet resulted from the application made by the Board in 1879 for permission to establish a high school for girls in the City of Nelson ; and the Board, seeing little likelihood of its wishes in this direction being complied with, has offered a scholarship of the annual value of £50, tenable for two years, to girls attending Nelson primary schools, whether in town or country. This sum is intended to enable the winner of the scholarship to get two years' education at a high school for girls, within the meaning of the Education Act, clause 51. General Remarks. —It is unnecessary to repeat what was stated in the Board's report for 1879 as to " the separation of the sexes," or as to the " number and quality of teachers in proportion to the size of a school," the opinion and practice of the Board remaining unaltered in both of these respects. I have, &c, The Hon. the Minister of Education. J. W. Barnicoat, Chairman.

General Statement of Receipts and Expendituee for the Year ending 31st December, 1880. Receipts. £ s. d. Expenditure. £ s. d. To Balance, Ist January, 1880— By Office and BoardMaintenance Account ~. ... 2,501 5 6 Office staff, salaries ... ~, 206 18 10 Special Buildings Grant ... ... 1,174 5 8 Clerical assistance ... ... 10 0 0 Grants from Government— Departmental contingencies ... 222 19 5 Statutory capitation (£3 155.) ... 10,615 17 4 School Inspection— Grants to Committees (10s.) ... 861 4 2 Salaries... ... ... ... 387 10 0 Scholarships (Is. 6d.) ... ... 212 4 6 Travelling expenses ... ... 125 18 6 Inspection subsidy ... ... 300 0 0 Teachers'salaries and allowances ... 10,168 2 5 Specially for buildings ... ... 5,470 17 10 School Committees, for educational purPayments by School Commissioners from poses ... ... ... 718 10 0 education reserves ... ... 579 15 2 Scholarships— From Public Libraries Vote ... 244 6 9 Paid to holders ... ... 200 0 0 Befund from Bank, exchange on cheques 1 18 0 Expenses of examinations ... 12 4 6 From sale of books to scholars ... 196 6 0 School-Buildings— Bent of disused teacher's house ... 3 0 0 New buildings ... ... ... 4,284 9 2 Enlargement, improvement, andrepairs 1,122 15 8 Purchase of sites ... ... 350 10 0 Plans, supervision, &c. ... ... 391 15 6 Library Committees, out of Public Libraries Vote ... ... ... 244 6 9 Bents of school-buildings ... ... 106 13 0 School material ... ... ... 1,184 2 4 Balance —■ Maintenance Account ... ... 1,925 11 9 Building Account ... ... 498 13 1 £22,161 011 £22,161 0 11 Stead Ellis, Secretary. Auditoe's Certificate. —The above accounts examined and found correct. —H. E. Curtis, Auditor.

NORTH CANTERBURY. Sic,— Christchurch, 31st March, 1881. In accordance with section 102 of the Education Act, I have the honor to submit the following report of the proceedings of this Board during the year ended December 31st, 1880. The Boaed. —The constitution of the Board has undergone some change since the last report was presented. The members who retired by rotation on March 31st, 1880, were Mr. Tancred, Mr. Webb, and Mr. Saunders. Mr. Tancred and Mr. Webb were re-elected, and Mr. A. 11. Cunningham was returned in the place of Mr. Saunders. In December an extraordinary yacancy occurred through the