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The expenditure for the year 1907 was £9,779 13s. Id., made up as follows :— £ s. d. £ s. d. Salary of Commanding Officer ... ... 310 0 0 Clerical assistance ... ... ... ... 154 3 4 Travelling-expenses of Commanding Officer 258 16 10 — 723 0 2 Capitation ... ... ... ... ... 1,607 0 0 Arms,accoutrements,ammunition,&c. £3,934 2 8 Less recoveries ... ... 679 10 0 3,254 12 8 Rent, <feo., of rifle ranges ... ... ... 139 19 7 Railway fares of cadet corps ... ... ... 292 1 8 Training camps ... ... £4,095 17 9 Less recoveries ... ... 416 1 3 3,679 16 6 Contingencies ... ... .. ... 83 2 6 9,056 12 11 Total ... ... ... ... ... 9,779 13 1 An illustrated manual of physical exercises is being supplied for general use in schools.

No. 2. The Officer Commanding the New Zealand Public-school Cadets to the Hon. the Minister of Education. Sir,— . . Wellington, Ist May, 1908. I have the honour to submit my annual report on the condition and efficiency of the cadet corps belonging to the various public schools. Organization. —The public-school cadet battalions now number thirty-one, the Ohinemuri Battalion in the Auckland District having been organized during the year. The strength of the corps in the several Education Districts on the 31st March, 1908, was 15,183, an increase of 335 on that of the preceding year. Inspection of Corps. —At the close of the camp at Christchurch in April, 1907, an inspection of the various corps in those districts unrepresented at that camp was taken in hand. These districts comprised Auckland, North Canterbury, South Canterbury, and Otago. Time, however, permitted, before the close of the year, the inspection of the Auckland and North Canterbury Districts only. The inspection of the corps in the remaining districts was undertaken during the early part of the present year. The general smartness, both in drill and appearance, displayed by the rank and file in past years is still a prominent feature. Equipment. —lt is proposed to supply in future a model rifle, the mechanism of which is of a kind superior to that of the models at present on issue. A small supply of the new models has been ordered, for the purpose of replacing the old pattern of models first issued to the corps. Ammunition. —The quality of the ammunition supplied continues to be of a very satisfactory nature. The supply for the current year has been ordered, and is now in the course of manufacture. Results of the Shields Competitions. — The results of the competitions for 1907 are given in Table I. Compared with those for 1906 they show very considerable improvement. Class Firing. —ln this department of cadet work the best results since the inception of the movement were obtained during the past year. The Dannevirke North Cadets, with a strength of 113 cadets, produced no fewer than thirty-four marksmen, with scores ranging from sixty-four to eighty-one out of a possible eighty-four. A large number of badges was secured by other corps as well. This improvement in what is practically the most important feature of the movement is exceedingly gratif3'ing. Colonial Ammunition Company's Prizes. —The names of the winners are given in Table I. The " Weekly Press " Prizes. —These prizes were competed for in December. In the North Island competition, which was inaugurated during the 3'ear, the winners were the Woodville District High School Cadets; while in the South Island on this occasion the Waimate District High School Cadets proved victorious. The original intention of the donors was that these prizes should be com-