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the hongkong government gAZETTE, 7TH MARCH, 1874.

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signing. There was much difficulty in persuading him to stay. The reason given for withdrawing the boys was that, as they had failed to learn to speak English in six months, there was no hope of their ever being able to do so. It was thus the immediate prospect of turning a knowledge of English to practical account that induced the parents to send their children. Mere mental im- provement was an element in the calculation which it never occurred to them to include. Not- withstanding this, the number of scholars rose to 18 again in December, and 17 were present on the examination day. Nothing startling was ever expected from the change, and years may elapse before much good is done, but in its ultimate success there need be no want of confidence. Prejudices are not removed in a year, and Chinese prejudice in favour of their own system of education is too firmly rooted to be uptorn by any sudden effort.

14. The Central School has reached its culmination as regards numbers and efficiency if the building and the teaching staff remain as the are. It might have been nearer the truth to have said that it had already begun to decline, for it is impossible that only three English masters can do justice to so many scholars. During the year, 502 were enrolled. The highest attendance was 364, the lowest 308. The average number enrolled during the twelve months was 349, and the average attendance for the same period was 329. This is very much in advance of previous years, but here advancement must stop for the present, simply from want of room.

5. There is no reason to suppose that any difficulty will be made about the appointment of an additional master, and that in itself will be of the greatest possible advantage to the school. A new building is a very different matter; but, as the Government is fully alive to the inadequacy of the present accommodation and to the desirability of having as early as possible a school worthy of the name, it is sufficient to record the want here, that there may be no chance of its being lost sight of. On these two points, that of a new master and a new school, a special report was made in July last. It is not necessary, therefore, to go into the details again.

16. In the month of May last, the sum of $3,000 was handed over to Trustees by the members of the late Morrison Education Society to found a Scholarship at this school/ Up to the present time, the fund has been lying idle, as the Government has been obliged to decline the scholarship on the terms offered by the majority of the Trustees. Whether the school will ultimately enjoy the benefit of the scholarship, unfettered by conditions inconsistent with the system on which it is con- ducted, is a question which cannot be much longer delayed. A legal decision on the point at issue seems to be the only practical solution of the difficulty, and such a decision will have to be obtained soon, if no arrangement can be made in the meantime.

17. The difficulty which has arisen in this matter points to recent discussions on the constitution of the school and to the dissatisfaction which has been expressed by some at what they are pleased to call its "godless" character. Were any good likely to accrue from a re-opening of the discussion, or were it at all likely that a statement of the case would carry conviction to the minds of those who object to the school, the question would be discussed here, at the risk of much repetition; but the position which has been taken up with regard to religious teaching has been so often reviewed in these annual reports, and as often challenged by fresh critics, that it would be a futile task to go over the ground again. Theoretically right or theoretically wrong, the position of the Government with regard to education is perfectly intelligible, and has been found to be eminently practical. It is simply an endeavour to meet, as far as can possibly be done, every denomination, Christian and Pagan, on common ground; and a determination to refrain from wounding the susceptibilities of any one on the point of all points on which men are most susceptible. If a precise statement cannot be given of the exact spot on which all are thus met, it does not follow that no such meeting-place has been found. To wait till a theory has been perfected, before action is taken in a matter of vital importance to the well being of the colony as well as of individuals, is to follow the example of Rusticus in making no effort to wade or swim the stream, but contenting himself with waiting on the bank until all the water shall have run down.

18. In the month of April last, the Legislative Council approved of a scheme for the better promotion of elementary education by assisting denominational and other schools on the well-known system of Grants-in-aid. The scheme as applied to the Colony differs in no essential particular from that in operation elsewhere. Certain modifications had, of course, to be made to suit the peculiar necessities of the place, but, beyond that, the scheme contains nothing new or unusual. Its purport may be given in a single sentence. All schools which devote four hours a day to secular instruction may devote the other school hours to religious instruction; and for the actual results of the secular instruction, as ascertained by examination, Government allows a certain fixed sum for each scholar who reaches a certain standard of scholarship. That is virtually the whole scheme; and it has met with the approval of all denominations, Catholic and Protestant alike.

19. During the past year, the following schools applied for Grants:-St. Saviour's Day School (Catholic), St. Stephen's School (Church of England), Victoria Boys' School (Undenominational), Wántsai Chapel School (London Mission), T'ái-p'ing Shán Chapel School (London Mission), and the Baxter Vernacular Girls' Schools (Church of England). St. Saviour's School, being the first to make application, had to comply with the provisions of the scheme in their entirety. The others applied later and, with the exception of the last, were allowed half the values of the standards for those scholars who had attended 100 times. The Baxter Vernacular Schools, not having applied till

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