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Section 2c.—In view of the greater efficiency now required from masters, more especially from those of Anglo-Chinese and Vernacular Schools, great care should be taken by the Education Department that none but fully qualified men obtain appointments.

Section 3.—It will be more convenient to adopt an opposite principle, and instead of making a reduction from the maximum Grant the exception, to limit the maxi- mum Grant to cases of exceptional efficiency.

Section 8.—The payment of a portion of a Grant directly to the teacher should be discontinued.

Sections 10 & 11.--The system of payment by the result of an individual examin- ation of each scholar should be discontinued. It is recommended that the system in vogue at Home be introduced, and that the Grant shall not directly depend on the

success or failure of any individual scholar.

One effect of the present system is to strengthen the hands of the parents and weaken those of the teachers. This is especially true of the Chinese Adventure Schools. The teacher is in the unpleasant position of having his year's remuneration dependent on the good-will of the scholars, whether they choose or do not choose to present themselves on the day of examination.

Another effect of the system is that the best Grant is earned by the Master who having brought his best pupils up to the passing point leaves them there, and devotes himself exclusively to the stupid and backward. He has no inducement to teach more than the minimum imposed by the Code.

auces.

Section 13.-Schools eligible to earn Grants should be-

1. Inglish Schools.

2. Anglo-Chinese Schools.

3. Vernacular Schools.

Section 14.-The basis of examination should be as now -a hundred attend- But it should be made impossible for a school to obtain a full year's Grant for a scholar who has entered within four or five months of the end of the year, as happens frequently under the present system.

Section 16.-The course of instruction for Vernacular Schools requires com- plete revision. The following points are important:-

(a.) Mental Arithmetic and the Multiplication Table should be taught. (b.) The explanation of Chinese characters should keep pace with the

reading of them.

(c.) The History first taught should be that of China, viewed in its relation to other countries. The Geography should be political and commercial rather than physical.

(d.) The only special subjects taught should be (1.) English in the Sixth and Seventh Standards, and (2.) Needlework in the Girl Schools as at present.

Section 18.-In the Anglo-Chinese Schools, it will probably be found possible to teach Algebra (or Euclid) and Physical Geography (or Elementary Natural Philosophy), but in the two highest Standards only. They should form part of the ordinary course.

It is impossible to formulate one course of study for English Schools and Anglo-Chinese Schools alike. In the case of the English Schools advantage should be taken of the latest experience gained at Home.