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students (who also teach) being considered as modifications of the staff, by virtue of the discretion given to the Minister under the second proviso to section 3 of the Act. This arrangement must, however, come to an end in December, 1903, so that itwill be necessary before that time ai*rives to make some definite provision for the training of teachers. Meanwhile, however, as far as manual subjects are concerned, the most urgent needs have been met for the present by special grants to the Boards referred to under the heading of " Manual and Technical Instruction," by grants of apparatus and material for teachers' classes, and by the concession of free railway passes to teachers attending any training classes approved by the Education Board of their district. MILITAET AND PHYSICAL DRILL. The Education Act provides that "in public schools provision shall be made for the instruction in military drill of all boys " ; and under " The Physical Drill in Public and Native Schools Act, 1901," which came into force on the Ist January, 1902, it is declared to be the duty of the Board in each district " to cause physical drill to be taught to all boys and girls over the age of eight years attending the public schools in the district." The number of children returned as receiving instruction in drill at the end of the year was 94,116. The term " drill " here must be taken to include physical and disciplinary exercises. There were 101 cadet companies, with a strength of 4,851 members. Some of them had carbines or similar arms obtained from the Defence Department, but generally they were equipped with the model rifles which have been imported by the Department for purposes of drill. The number of cadet companies in the several districts was as follows : Auckland, 27 ; Taranaki, 2; Wanganui, 11 ; Wellington, 18; Hawke'sßay, 15; Marlborough, 2; Nelson, 3; Grey, 1; Westland, 4; North Canterbury, 2; South Canterbury, 1; Otago, 14; Southland, 1. The number of model rifles on issue to the Boards at the end of the year was 3,850. The Department has in hand 500 Westley-Eichards '310 miniature MartiniHenry rifles and 100,000 rounds of ammunition, which will be issued at the rate of ten rifles per company, or less, according to strength, with a proportionate allowance of ammunition for practice in shooting. It is to be remembered that the amount of firing that can be done by these cadets is limited by the amount of range accommodation available. The number of rifles indicated will probably afford as much practice as could be obtained with a larger number. In all the principal centres the Defence Department has during the year continued to give the services of drill-instructors, who have visited the schools and themselves taken charge of the company or squad in each during the drillhours. A system such as this, satisfactory though it may be as far as it can be applied, is not capable of extension without great expense, and the only satisfactory method of making permanent provision for the requirements in this subject is to train the teachers to carry on the work themselves. For the past two years facilities have been given to teachers to 'attend classes for instruction in drill, the Department paying rail fares. Classes have been held at Auckland and the Thames, with average attendances of 35 and 9 for 31 and 25 meetings respectively ; at Wellington, with an average attendance of 54 for 41 meetings; and at Christchurch, with an average attendance of about 47. The expenditure for the year on railway fares of teachers and instructors was 56781. Under the provision in " The Defence Act Amendment Act, 1900," that " the Governor may make regulations for the formation, equipment, and training of cadet corps in connection with public schools," and " may give the control of the aforesaid cadet corps to the Education Boards or the Education Department, in such manner and to such extent as he thinks fit," regulations were gazetted on the 15th May of the current year by which such cadet corps were placed under the control of the Education Department. An officer has been appointed to command the corps and generally to organize and attend to matters relating to the movement. His report forms an appendix (E.-1d) to this report. The number of companies recognised up to date is 95. iii—E. 1,

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