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Head Master and Inspector Mr. Stewart that this mea sure has had the desired effect of awakening a spirit of heal thy emulation among the Natives School Masters and of casing a more general appreciation of the advantages of free education among the Chinese parents.

The Central school under the new system of manage- ment was growing in favour with the most respectable classes of Chinese. The system of payment introduced into the English department was working well.

The number of scholars enrolled in the Government school amounted in 1863 only to 495, but the attendance improved in regularity,

In the Report of the Board for the year 1864 they dwell on the obstacles to be met with in regard to the village-schools. One of the objections, they say, is that the Sacred Scriptures are read in the schools which however was not compulsory; but, they continue, that this objection is more ostensive thau real may be gathered from the fact that in a school supported by one of the Missions, where the Bible must be read, there is a regular attendance of forty children while there are only some ten or twelve at the Governinent school in the neighbourhood."

The Board have to report a decrease in the nam "ber eurolled for the year" but they find that, the atten. dance is much more regular. The total number of scholars amounted in 1864 to 469.

"The Central school continued to grow in favour with the Chinese. It is attended principally by a class of boys superior to those of the village-schools, and for this rea- son, the Board have resolved that, for the future fees shall be charged against all the pupils. The school was now more efficiently conducted from the appointment of an additional English Master. The Bible is not used as a text-book in English, but it is tanght by the Chinese Masters in their own language to those pupils, whose parents offer no objection."

Nothing is said in the Reports, for 1862, 63, 64, as to how much had been expended. The passage of the two English Masters, the erection and enlargement of the Central school and the salary paid to the European Masters must have entailed larger expenses than in the preceeding years.

With 1805 the Board of Education ceased to exist and Mr. Stewart remained as Head Master and Inspector of schools.

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The private schools 'kept by the Protestant Mission- aries for Chinese where the reading of the Iloly Scripture was obligatory were going on well, and among them St. Paul's College was always prominent till the misfor- thue came of losing its funds on the occasion of a severe bankruptry which happened in Hongkong to one of the principal Mercantile Firms.

The R. Catholic schools have been enlarging their sphere. A Catholic Reformatory was opened in 1868 in a small honse at West Point. Sir Hercules Robinson granted to the R. Catholic Mission in Hongkong a large piece of ground in West Point for the Reformatory, The foreign Community very liberally subscribed to the erec- tion of the building and in 1865 the inmates from the Chinese house were transferred into the new building, and their number increased. They were not toany, from 12 who had beou received at the first starting of the institution they increased till near 30; no larger number was received on account of want of funds. The allowance of $2 each for 12 boys was inade out of the poor box from the Magistracy and this aid enabled the Directors to start in the same building shops where the inmates were taught carpentery, shoemakering and tailoring. The Establish- ment grew in favour with the Community.

The schools for girls at the Italian Convent were pros- poring. An orphanage was started attached to the schools and the building enlarged.

The roost prominent among the Catholic Educational Establishments was St. Saviour's College. In 1868 a large building was in course of erection in Wellington Street, which was continued and finished in 1864 along Pottinger Street. The cost of the building amounted $14,000 which was mostly collected in the Philippine Islands by one of the Mis- sionaries. An English Teacher from Europe was got and the small school in Staunton Street, which only numbered 20 pupile was transferred to the new building where they in- creased rapidly. A day and boarding school were kept there and a good number of youth came from the neighbouring Catholic Spanish Colony the Philippines to partake of the benefit of Éducation. The tuition was strictly commer- ciul.

In 1865 the first public Examination was held, which proved a success. A long description of it appeared in the press and H. Excellency Mr. Mercer the acting Governor noured the Institution by distributing the prizes. A

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