8.—6

XV

Special Schools. The extensive work connected with the industrial and special schools branch has been carefully overhauled, and improved methods have been introduced, which will limit waste and secure better results for the money expended. The number of children dealt with in industrial schools at the end of the year was 3,283, while the expenditure was £40,000. The system of probation inaugurated at Auckland, some three years ago has proved successful, and is about to be extended to the other three centres of population. As a result of a new classification of inmates, together with a more extensive system of boarding out or licensing out inmates, there will be a considerable saving in both capital and annual expenditure. The annual saving in maintenance ultimately resulting from, the new policy is estimated at £15,000. This economy will be effected not only without detriment to the welfare of the children, concerned, but in. some respects with a decided benefit to the present inmates. As a matter of national well-being it is important that the Government should deal comprehensively with the question of the care of all feeble-minded children in the Dominion. At present the Education Department has about a hundred and fifty cases in its care, and the Mental Hospitals Department about a hundred, but it appears that there are at least six hundred other cases of feeble-minded young people who should be taken charge of by the State. The whole question should be dealt with before the number of cases has an opportunity of multiplying. School Buildings. Since the outbreak of war the increased cost of material and labour has seriously affected all building proposals. Only works which were absolutely essential have been authorized ; but as a result of this action the Department will, when normal conditions prevail, be faced with heavy demands involving large sums to replace school buildings which, are at present unsuitable. Efforts have been made to standardize school buildings with a- view to greater economy in. future. In the accounts of Education Boards the recent amalgamation of districts has brought into prominence the position of Boards with respect to the annual allowances made for the maintenance and. replacement of schools, and the methods of dealing therewith. The position disclosed, is more or less unsatisfactory, and proposals have been lxade for the establishment of a better system of providing funds for replacements. Teachers' Superannuation Fund. The income during the year ended the 31st December, 1916, was £90,481, madeup as follows : Contributions of members, £56,038 ; interest on outstanding contributions, £255 ; interest from Public Trustee, £16,466 ; contributions transferred from other funds, £722 : Government subsidy, £17,000. The expenditure for the year was £49,905. The value of the fund on the 3.lst December, 1916, was £381,158, as against £340,582 on. the 3.lst December, 1915, an increase of £40,576. The number of contributors increased, from 4,444 on the 31st December, 1915, to 4,653 at the end of 19.16, an increase of 209. The annual allowances payable as at the end of .1916 were £44,666, as against £39,000 at the end of 19.15. Provision has been made for the payment by the Government of the contributions of members of the fund who have enlisted with the Expeditionary Force, until the release of the contributors from military duties. The number of contributors who have joined the Force is approximately 350. BOARD OF TRADE. The Board of Trade, constituted under the Cost of Living Act, 19.15, has carried out important duties during the year. Its operations have resulted in a considerable saving of expense to the consumers of commodities which are in common use. Where it appeared necessary and the common interest demanded it, maximum prices have been fixed by regulations under the Regulation of Trade and Commerce Act. It