time, the fund has been lying idle, as the Government has been obliged to decline the scholarship on the terins 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 pint 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 stateinent 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 lust, the Legislative Council approved of a scheme for the better promotion of elementary education by assisting denominational and other schools on the well-known systern of Grants-in-nid. The scheme as applied to the Colony differs in no essential particular from that in operation elsewhere. Certain modifications hud, 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 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 inet with the approval of all denominations, Catliolic and Protestant alike.
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19. During the past year, the following schools upplied 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'ai-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 September, were allowed two-fifths of the values of the standards for 80 attendances. These ar- rangements were made to enable the scheme to be brought into operation at once, and to get the returns made up at the end of the year.
20. St. Saviour's School, under the Management of the Revd. Father PALMER, was attended during the year by 110 scholars, principally Portuguese, but including English and other nation- alities as well. The average monthly enrolment was 64, and the daily attendance varied from 44 to 62. The number presented for examination, that is, all who had attended 200 times and upwards, Was 25. Of these 16 passed and 9 failed. The grant to the school armounted $64. This must not be taken as a ineasure of what the school can do, and will do in the future; although, even as a first examination, it is not by any means satisfactory, and no one feels this more than the manager and teacher. Two points need careful looking to in this school. There must be a stricter discipline in the way
of attendance, and the teaching power must be increased, before the school can take a high runk among the educational institutions of the Colony. In ull other points it leaves little to be de- sired. The teacher is able and energetic, but he cannot possibly do justice to such a large school single- handed. A very favourable change hins recently been made in the school books, which were formerly by far too difficult. All the other appliances are ample and in excellent order.
21. St. Stephen's School under the Management of the Revd. A B. HUTCHINSON was only recently established and is solely for Chinese boys. The number of scholars for the year was 75, the Average monthly enrolinent being 61, and the daily attendance varying from 40 to 53. On the examination day 29 scholars were examined, of whom only four failed. A larger number would have been presented, if the examination had taken place earlier. Many of the boys had left for their This difficulty will be obviated in future native villages on the approach of the Chinese New Year. either by holding the examination earlier, or by insisting on the boys remaining until within a fort- night of the new year. The school is doing inuch good in a very poor locality of the city. The teacher has his work ut heart and labours fauthfully. The sum gained by the school was $33. This will be very much improved upon next year, when the full number of attendances is made up, and full values given for passes. It is also to be noted that the third was the highest standard under which scholars were presented. As the school advances, higher standards will be reached, and a inore liberal sum will thus be at the manager's disposal for its support and extension.