due to the increase on account of the erection of new buildings. This item amounted in 1865 to £1153 4s. for 1817 children, or at the rate of 17s. 6d. per child; while in 1866 the expenditure for this purpose was £1534, or at the rate of 19s. 9d. per child.

Thus, if the cost of erecting buildings be left out of the account in both years, it will appear that the current expenditure was greater during the year 1865 than during 1866. The average cost per child being in the former year £2 18s 7d., and in the latter £2 16s. 9d.

So far as regards the expenditure on the actual maintenance of the schools it appears that the rate per child during 1866 was slightly in excess of that for the previous year. In 1865 this item amounted to £2980 5s. for 1317 children, or at the rate of £2 4s. 6d. per child. In 1866 it was £3519 1s. 8d. for 1549 children, or at the rate of £2 5s. 5d., being an increase of 11d. per child.

This is to be accounted for in the following manner: the new Schools established in 1865, having come into operation towards the close of the year, received grants, with one exception only, for one quarter of that period; while the children attending them were included in the total for the year. The effect of this of course was to make the expenditure appear less in proportion to the number of children. On the other hand these schools on which only one quarter’s expenditure had been incurred during 1865, received during 1866 the grant for the whole year, and, in addition to this, the schools established during 1866 began to receive aid at a much earlier period of the year; the result being that the expense of their maintenance extended over a longer time than that incurred on account of the schools established in the year 1865.

It is necessary to bring to your Honor’s notice the fact that the annual grant of £750 on account of the Superior Schools, namely Christ’s College Grammar School, the High School, Christchurch, and the High School, Lyttelton, will, after the 30th June of the present year be no longer payable under the terms of the Ordinance.

The constitution of these institutions and the system of management adopted in them, as well as the subjects taught, have the effect of impressing upon them a character totally distinct from that of the ordinary District Schools in connection with the Board. The machinery at the disposal of the Board, though well adapted for controlling and supervising the latter, is ineffective when applied to the Superior Schools.

For this reason the Board ventures to suggest in case the Government should see fit to propose a vote in aid of these Schools, that some arrangement for the supervision and control of them should be made, different from the present, and better suited to the circumstances of the case.

SCHOLARSHIPS.

THE introduction of Scholarships as a regular feature in the Educational system of the Province has been as successful in this instance as such institutions have invariably been found to be when thrown open to public competition, and still more satisfactory results may be anticipated when the increased powers given to the Board by the Provincial Council, both for the extension of the term of the present Scholarships, and for the foundation of new ones, is taken into consideration.

The Scholarships in 1866 were six in number, of the value of £40 each. Two of these were open to all boys below twelve years of age attending school in the Province, whether public or private.

The remaining four were open only to boys below eleven years of age attending District Schools aided by the Board.

The candidates had to undergo a preliminary examination with the view of ascertaining how far they were qualified to compete.

The subjects in which the candidates were examined were as follows:—

1. For the two Open Scholarships.
   • Classics.
   • Mathematics.
   • History, sacred and profane.
   • Geography.
   • English Composition.