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The pupils whose attendance justifies a claim to subsidy are: Earners of weekly wages and their dependent children; primary school teachers and their dependent children ; pupils (or expupils) of primary schools; persons with less than £500 of income, and their dependent children; pupils of evening classes for " industrial " education. . A pupil who has not attended twenty times in a year is not counted. Unless the inspector expressly dispenses with their attendance, the local committee must meet on the day of inspection. The grants depend on the results of the examinations. 2. The Local Committees. —A school must be under a committee. The local authority, or a committee to which that authority has delegated its powers, may act as a local committee, as also may a School Board, or the committee of a school (not being simply a primary school) dependent on the Charity Commission. A local committee established especially for the purpose must consist of five persons at least, and at least two-fifths must be persons occupying some public position. The composition of the committee must have been approved of by the department, and the members must be of independent standing, and must have no pecuniary interest in the school. One committee may have several schools under its direction. 3. National Examinations. —rThere are two kinds of examinations according to the nature of the subjects: (a) Individual and personal examination of the student; (b) examination of works done by the students in the course of the year. Two members of committee, or a special local secretary with assistants, must supervise the examination. Where there are more than fifty candidates there must be one more supervisor for every fifty or fraction of fifty. Outside candidates must be admitted on paying a fee of about ss. a subject. In populous places a special local secretary is paid to make all necessary local arrangements. He is appointed by the Government and can have paid assistants. Half the cost of these arrangements is borne by the locality and half by the department. A trustworthy person, who may be a member of committee or the special secretary, but not a teacher or an interested party, is made responsible for the custody of the papers. If any suspicion as to the conduct or result of a local examination arises, a new examination is held at the place. In the year 1892-1893, the cost of the examinations was £21,635. There are twenty-five science subjects, as follows : Practical plane and solid geometry ; machine construction and drawing ; building construction ; naval architecture ; mathematics; theoretical mechanics (solids, fluids); applied mechanics ; sound, light, and heat; magnetism and electricity ; inorganic chemistry (theoretical and practical); organic chemistry (theoretical and practical); geology ; mineralogy ; human physiology ; general biology ; zoology ; botany ; principles of mining; metallurgy (theoretical and practical) ; navigation; nautical astronomy; steam; physiography; principles of agriculture; hygiene. For each subject there are three stages —elementary, advanced, and honours—and in each of the last two stages there is a first class and a second class. The grants made to the schools, according to the results of the examinations, are as follows : £2 for every pass in the elementary stage; £5 for a first-class pass in the advanced stage; £8 for each student in the first class in honours. For a second class the grant is one-half of the £5 or of the £8, and the other half is paid when the student gains the first class. A school cannot receive more than two grants for the same pupil in the same year. The regulations are very similar for the art subjects, which are even more numerous than the science subjects. There is only one county that does not render direct or indirect aid to the classes affiliated to the Science and Art Department. 2. Scholarships founded by the Science and Art Department. 1. The department helps local institutions to found scholarships, on condition that these are offered to competition, and that a fair part of the expense is met by the voluntary contributions of living persons. 2. The department itself institutes scholarships to enable children to go from the elementary schools to more advanced schools. There must be competition, and there cannot be more than one scholarship for every fifty pupils. The competitors must not be above the age of sixteen. The successful candidates must attend school regularly, and go up for the national examinations year by year. The local managers decide whether a scholarship is tenable for one year, or two years, or three years, and must contribute £5 a year towards the scholarship, the department adding £4 for the first year, £7 for the second, and £10 for the third. 3. If the directors of a local fund contribute one-half of the amount, the department grants a local exhibition of £50 a year, tenable for one, two, or three years. These exhibitions must be competed for at the national examinations by members of subsidised classes, and the exhibitioners must devote their whole time to study at some college or school where instruction of an advanced order in science or art may be obtained. 4. Seven Boyal exhibitions, twenty-two national exhibitions, and six free studentships, all tenable for three years, are awarded in competition every year. A Boyal exhibition is of the value of £50, with free admission to a Boyal college; a national exhibition is worth £60 a year, with free admission; a free studentship entitles the holder to free admission only. 5. Sir Joseph Whitworth's four exhibitions of the value of £250 each, and thirty scholarships of £50, are tenable for one year. The candidates must have been engaged in some manual or mechanical trade for three years and a half, and must devote the whole year of the exhibition or scholarship to scientific studies. 3. Beioards to Students. Certificates are given to all who pass examinations. A small number of prizes—books, instruments, &c. —are given to the best candidates in the advanced stage. Every successful candidate for first-class honours receives a bronze medal.