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W. H. Wabeen, Secretary. Examined and passed.—E. Macalisteb, Provincial District Auditor. 17th April, 1886.

HAWKE'S BAY. Sib,— Napier, 4th May, 1886. In accordance with Circular No. 84/17, of 12th December last, I have the honour to forward the report of the School Commissioners for the Provincial District of Hawke's Bay for the year ended the 31st December, 1885. The reserve of 9,700 acres referred to in my last report was not offered for sale during the year, as anticipated; but 3,410 acres thereof were advertised in November to be disposed of in January of the current year under the perpetual-leasing system. The whole of this block is to be dealt with by the Crown Lands Department. Thirteen rural sections of bush land in the Woodville and Kumeroa Districts were offered by the Commissioners during the year, each for lease for a term of twenty-one years; but only three were taken up, and these, too, at the upset rentals. The settlers do not care to lease such lands for so short a period. I may here remark that the Commissioners have in former reports expressed their desire to lease such lands for a longer term than twenty-one years; and if their power in this direction is not extended they think many of the unleased reserves of bush lands cannot be beneficially leased under ordinary conditions. I forward herewith the general statement of receipts, expenditure, &c, for the year. The Commissioners made no alterations in their regulations during the year. I have, &c., The Hon. the Minister of Education, Wellington. Hobace Bakeb, Chairman.

iXpSTU litun By Salaries and allowances to officers Printing, stationery, &c. Expenses of leasing—advertising, &c. ... Expenditure on reserves— Surveying Fencing, &c. Bates Payments to Wellington Education Board Payments to Wanganui Education Board Land-transfer fees Exchange on remittances Balances on 31st December, 1885 (in bank, £416 15s. Id.; in hand, petty cash, 10s.) £ s. 47 14 13 5 0 11 d. 6 6 6 £ s. a. 2 5 6 0 13 1 £ s. d. 50 0 0 13 18 7 0 11 6 10 5 16 5 383 17 216 2 3 3 0 9 2 6 9 3 0 0 52 "ll 3 10 5 2 52 11 3 16 5 6 383 17 9 216 2 3 3 3 0 0 10 6 0 4 6 416 12 8 0 12 5 417 5 1 Total expenditure ... 1,108 6 10 56 3 9 1,164 10 7 Assets. Balance of cash on 31st December, 1885 Arrears of rents for period prior to 1883 Arrears of rents for 1883 Arrears of rents for 1884 Arrears of rents for 1885 £ s. 416 12 22 10 30 10 68 2 215 9 a. 8 | 0 I 0 ! I £ s. 0 12 19 d. 5 0 £ s. 417 5 22 10 30 10 68 2 216 18 d. 1 0 0 8 8 Total assets 753 5 0 I 2 1 5 755 6 6 Liabilities. ! £ s. a. £ s. a. 50 0 0 ... 70 "o 0 i £ s. 50 0 22 10 70 0 d. 0 0 0 Under "The Babbit Nuisance Act, 1882'" ... Fencing Rates 22 10 0 Total liabilities 22 10 0 120 0 0 142 10 0 I