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in operation in the course of a week or two. It is proposed to work this machine in connection with the School of Mines in the Otago University. While upon this subject, I may remind you that the Gold Mining Commission, called together last year to take into consideration the general question of the legislation affecting Gold Fields, amongst other valuable suggestions, recommended to the favourable consideration of the Colonial Legislature the establishment in this Colony of a branch of the Imperial Mint, by which means the miner would obtain the exact and full value of his gold. A mint, however, is a matter involving great pecuniary outlay, and much time, before it could be made available.

Pending the establishment of a mint, I am of opinion that an assay and melting department in connection with the School of Mines under Professor Black would be a great boon. The cost of a very efficient plant would not exceed £300. To this place miners and others might bring their gold for the purpose of being melted and assayed, and arrangements could be made by the Government for having the gold coined at the Sydney or Melbourne Mint,—the owner of the gold in the meantime receiving a deposit receipt which would be as good to him as cash...

I would recommend this matter to your favorable consideration, and, whether you concur in the recommendation or not, I am persuaded you will agree with me in thinking that an assay-office would be not the least valuable part of Professor Black’s department, in connection with the other branches of chemistry taught by him.

During the year there have been established throughout the Province nine public schools, making in all at the present time 119 schools (including the male and female High Schools, and School of Art), with a teaching staff of 184 teachers. In addition to these there have been sanctioned and are in the course of being established other nine schools in various parts of the Province. There are moreover fifteen applications for schools which the Government has not yet its way to grant, but which I trust may be provided for in due time... The total amount for the year expended by the Government on Education has been £23,059. Although it is hoped that the Province will be able to continue the existing scale of school allowances for years to come, I am disposed to think that District School Committees should have power to levy rates. Should you be of the same opinion, a short Ordinance may be passed during the present Session to this effect.

Gentlemen,—I need scarcely say that the question of education is at present exciting considerable interest throughout the Colony. You are doubtless aware that a measure has been framed, and will be introduced into the Colonial Legislature next session, having for its object the removal of the control of the education of the people from the Provinces to the Colony.

While fully admitting that the means of education should be brought within the reach of—and, if need be, enforced upon—all, and that in the case of those portions of the Colony in which this is neglected, it is the duty of the Supreme Legislature to make the necessary provision, I am at the same time of opinion that, as regards this Province at least, no Colonial action is likely either to improve or extend the means of education more than we ourselves can do, and are actually endeavoring to accomplish.

Seeing, therefore, that no transfer of the Educational functions of the Province to the Colony is likely to be for the better—and may, perchance, turn out to be very much for the worse—I venture to hope that you will concur with me in deprecating and resisting any interference from without with our Educational arrangements.

I am far from saying that these arrangements are perfect; they would not be human if they were so, but I do maintain that we have in Otago the most perfect—the nearest approach to a national non-sectarian system in these colonies—a system which in practice has worked well and has been participated in by all religious denominations, for twenty years. I maintain, moreover, that we ourselves are best qualified to deal with whatever imperfections there may be in our Educational system.

Gentlemen,—Let us by all means improve the administration, by going in for a thorough inspection—let us elevate the qualifications and status of the teachers, let us eliminate from our Class Books whatever may be contrary to truth, or calculated to give reasonable offence to any particular section of the community, but don’t let us countenance any system of education by which our children will be taught to stand aloof from each other—each on its own sectarian pedestal. You will, I am sure, be glad to know that these are points which have been occupying much attention on the part of the Education Board, and that henceforth the inspection will be much more regular and effective than it has been, also, that all public school teachers will require to possess certain scholastic acquirement, and produce certificates of competency. Moreover, the Government has ordered a complete set of all Class Books in use throughout Great Britain, Ireland and America, with a view to selecting the most cosmopolitan for the public schools of the Province.

Gentlemen,—I have to congratulate you upon various important public undertakings which have been brought to an issue during the past year, I would allude especially to the successful establishment of the Otago University, the completion of the Otago Graving Dock, and the Californian Steam Service.

As regards the University, it is curriculum in the meantime may be said to be so far complete. While ample provision has been made for literary, mental and moral training, the School of Mines and of Chemistry cannot fail to exercise an important influence upon the development of the material resources of the Province. The chief thing that is wanting now is a suitable library of references for students. This is the cope stone which is required to complete the edifice; and I trust that your substantial concurrence will not be wanting towards such completion.

It is much to be regretted that the Colony as a whole has prematurely set up a rival university—supported to a large extent out of the revenue of this Province. I trust our representatives in the General Assembly will be unanimous in their endeavors to secure that that portion of the Colonial revenue which is derived from Otago, and applied to University purposes, shall be devoted to the Otago University.

A Bill will be submitted to you for the purpose of constituting the Professors ex-officio members of the University Council, which proposal will, it is hoped, meet with your approval.

As regards the Otago Graving Dock, you will be glad to learn that since the date of its opening, the revenue shows an excess over the working expenses to an extent which warrants the anticipation that the Province will be fully recouped in respect of the cost of construction... It will be advisable, in order to the more effective and economical working of the dock, to incur a further expenditure towards procuring necessary working plant. Upon this subject a report from the Dock Board will be laid before you.

With respect to the Californian steam service, although the terms which have been arranged between New Zealand and the Colony of Victoria have not yet transpired, I believe I am correct in stating that, under that arrangement the proportion of subsidy payable by New Zealand will be very much less than it would otherwise have been; also, that this Port will be the New Zealand terminus of the line. Our outward-bound