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English. On my arrival, in 1882, I found the subject, colloquial English, set down on the time table for one hour a week on Saturdays. I looked forward to it with interest, but discovered that even in the able hands of Mr. FALCONER the so-called conversation was a lecture, occasionally varied by the interjection on the part of the pupils of affirmative or negative monosyllables. When the Time Table was remodelled this hour was allotted to other subjects, as the object intended did not appear to be attained. This year, however, I hope I have discovered the needed stimulus both for scholar and master, in making colloquial English a subject of examination for prize purposes. When a boy finds himself, say fifth, in a class where but for loss of marks in conversation he would have been first, there can be no doubt that all ambitious boys will awake to the necessity of speaking English. The sixth class is the lowest in which boys can attempt making spoken English sentences; here then we begin, and each boy is required after reading a passage to reply to questions and suggestions upon what he has been reading. This custom, previously in vogue as an exercise of intelligence, is now definitely employed as a channel for leading to conversation. High marks are only given where rarer intelligence is displayed in the form and nature of the replies. In the higher classes the questions roam widely over any field within the range of thought of the scholars. As evidence of the thoroughness of the examination it is well to state that ten days are absorbed in assigning marks to this subject jointly with Reading.

12. CHINESE EXAMINATIONS.-Chinese essay-writing may be compared to Latin or Greek verse at English schools. Neither of them is in itself of real service in daily after-life, the exercise is mecha- nical, and the pupils who develop talent over it are few; it still remains a test of scholarship and of knowledge of rules of composition, and as such is considered part of a gentleman's training. There would, however, appear to be no searching test of the bulk of the work done in the year. I therefore enquired of my Chinese assistants whether there were nothing in Chinese examinations corresponding to a literature or Shakespeare paper. at the local examinations. The result of my enquiry has been the introduction of a few test questions (King Ku) on the classical Chinese which they have read in the course of the year, but which has hitherto remained untested.

13. DISCIPLINE.---The discipline in English school continues exemplary; the cane is but rarely requisitioned, and that chiefly in the Preparatory school, where newcomers are unaccustomed to laws of sudordination. The cheerful happy spirit that pervades the classrooms is made subject of congra- tulation by every casual visitor. In Chinese school, too, the maintenance of discipline seems to have as nearly reached perfection as can be expected. Any old master, who can with me remember the old days at the Central School, when an audible "hush," often initiated by the Chinese master, announced the approach of the English master in charge suddenly checking the murmur of conversation and laughter in the classroom, would be astonished at the decorum and orderliness now prevalent, whenever a surprise visit is made.

14. COMMERCIAL EDUCATION.-Victoria College has not ignored the modern tendency in this direction. For three years Bookkeeping, with lessons on commercial phraseology, has formed a part of the annual work, in addition to commercial arithmetic (discount, interest, exchange, shares, &c.) which has never been neglected. Last March over 120 boys were attending lessons in bookkeeping, and last July a Chinese boy from this College was one of the few, out of all England, that passed in this subject at the Oxford Local Senior Examinations. As regards Shorthand, I am opposed to its introduction simply on the ground that the phonetic principle involved would cause irreparable confusion in the minds of boys to whom the eccentricities of English spelling are still a sufficient difficulty. Typewriting can from the nature of the case never become a class subject.

15. Oxford LOCAL EXAMINATIONS.-Six out of the eight candidates from this College passed last July. As the three Chinese candidates all passed, I hope that larger numbers will offer in the future; the chief hindrance is the entrance fee, $7.50, which is a serious consideration to most of our aspirants.

16. RECREATION.--A considerable improvement is noticeable in the drill this year. Understanding the great interest His Excellency the Governor takes in this matter, the senior boys (or rather men) have to some extent overcome their national prejudice to physical exercise, which they view as undig- nified. The juniors have, however, taken to it con amore; and in two or three years' time, drill may be expected to have become universally popular throughout the College. Through Mr. MACHELL'S energy the former spasmodic efforts at cricket and football have been systematised. Mr. BARLOW organised some excursions by land and water, including a visit to the City Hall Museum.

The advantages derived by this lively interest in scholars out of school-hours cannot be over-estimated, both for its effect on developing intelligence, and for its moral influence.

17. ANNUAL EXAMINATION.--In accordance with the suggestion of the Inspector of Schools in his report of last year, his annual inspection of the College has been transferred to the month of July. The annual examination, thus left under the sole control of the Head Master, has been conducted strictly on the same lines as in the past ten years. Half marks constitute a pass in any single subject; a class pass consists of passing in at least half the subjects offered by the class. The number of class subjects thus offered is as follows:-Preparatory School, six; Lower School, ten; Upper School,