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In former reports I have emphasized the difficulties which have existed for some time in finding suitable employment for the young mm discharged from the Institution, and have stressed the great value of the work of organizations and individuals who endeavour to secure them jobs. The year under review was probably the most difficult yet experienced, employment for tradesmen being practically unattainable. However, there was a fair amount of work available on farms, and it was to these tasks that the majority of the discharged inmates were placed. It is very pleasing to note that the farmers in the surrounding districts are always willing to give the inmates a trial. During the year there was ample work of a useful and productive nature available to keep all inmates fully employed on the farm property. Reference is being made later to the various activities cm the farm. As a means of economy as well as an aid to character, the value of work of an educative and productive nature cannot be too highly stressed. Discipline was maintained at a very high standard during the year. No very serious offences occurred during the year, the majority being minor breaches of regulations concerning damage to clothing and equipment resulting from want of reasonable care. The Department is indebted to the Visiting Justice, Mr. W. Jeffrey, and to the members of the Visiting Committee, Mr. F. Quin (Chairman), Mr. F. W. Bevin, Mr. G. A. Empson, and Mr. F. Gilbert, for their helpful assistance to the activities of the institution and for the sound judgment they displayed in dealing with disciplinary matters. The usual facilities were provided for recreation. Although adequate recreation is advisable, it is important to ensure that it is kept within reasonable bounds, so that conditions are not made too pleasant. Work and recreation must be maintained in reasonable proportions. Mr. F. Findlav, of Hamilton, is to be thanked for bringing to the Institution several parties who provided excellent concerts and interesting lectures, which were greatly appreciated by the inmates. A concert party was organized amongst the inmates, and a very fine programme was drawn up. The concert, which was presented twice at Waikeria before a large number of visitors, was considered to be of such a high standard that the party were invited to repeat the performances at Hamilton and at Te Awamutu. At Hamilton the proceeds were devoted to the relief of distress through the St. John's Ambulance Association, and at Te Awamutu to augment the funds of the District High School Committee. Several other requests were received to present the concert in various localities to assist deserving objects, but owing to the discharge of a number of inmate performers it was not found possible to accede to the requests. The night-school class was conducted on 102 evenings, the average attendance being thirty-four. The class oaturally requires splitting up in suitable divisions to facilitate work. The course is a commonsense one, which should prove of some use in general life. Lectures were given on dairying, agriculture, and general subjects. Drill classes were also conducted in the usual manner with good results. In the field of sport the inmates were able to maintain their reputation for sportmanslike play. Although the team did not win any trophies, iit was successful in winning several matches in the senior-grade competitions under the control of the Waipa Rugby Union. In addition to matches played by the first fifteen in the Rugby competitions, a local competition between three Institution teams was staged, a shield for the winning team being donated by Mr. Clarke, of Te Awamutu. Several cricket matches were played during the season and the Institution team was fairly successful. All the games were played in the best of spirit and were thoroughly enjoyed by all concerned. The generosity of outside clubs in coming to the Institution and providing games with the local teams is greatly appreciated. Good conduct and industry enables inmates to qualify for membership of the special class which is permitted to indulge in appropriate games during the evenings. Religious services were again provided during the year by visiting chaplains from Te Awamutu and Kihikihi. A new cell house was erected during the year to permit of additional accommodation for thirty inmates in the reformatory section. The administration building, cell range and kitchen block, and reformatory-cell house were painted during the year, and all other Institution buildings received adequate maintenance and are in good condition. The machinery was removed from the old powerhouse building, and preliminary work towards converting the building to a cottage commenced. A fourth dairy was erected on the homestead block to provide for a herd of one hundred cows. Milking operations at this dairy commenced on the Ist August last. The additional revenue accruing as the result of the erection of this dairy will soon repay the Department for the expenditure involved. A disturbing feature during the year was the very low prices ruling for all classes of farmproduce. Although there has been a marked increase in production from the farm, the decline in market prices has been so severe that it has been impossible to maintain revenue at the level of former years. This has naturally had its effect upon the funds available for the conduct of the farming activities, and expenditure had to be curtailed considerably. Notwithstanding these adverse factors, very satisfactory progress has been made, and the property is looking very well. A considerable amount of labour and money in spraying-materials has been expended in the destruction of ragwort, which is fast becoming a serious menace in the district. During the year a portion of the farm property of about 472 acres in area, being part of the Block B taken over from the Mental Hospital Department some years ago, was offered by the Lands Department for public selection by ballot. The loss of this valuable area of land necessitated a reduction of the sheep flocks and the disposal of a number of dry stock during the period of adverse prices. As indicated previously, there are now four separate dairies on the property, each of which is equipped to handle more than one hundred cows. All the milking is done by hand, thus providing

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