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18 collections which are offered as exchanges. The suggestions made in the last report of the Governors, at the request of Government, with a view to adapting the Museum and Laboratory for the purpose of instruction in technical science, have been carried out so far as to allow of eight or ten students being instructed in the Laboratory. This was done by taking advantage of the alterations required for the introduction of gas into the establishment; but as provision has not been made for lecture-rooms and apparatus, full effect cannot yet be given to the proposed scheme for a regular course of lectures on practical science.

The Governors, therefore, venture to express a hope that the Legislature will see fit to sanction an expenditure adequate to carry out the objects of the New Zealand Institute.

The appended statement of accounts shows the manner in which the endowment to the Institute has been applied during last year; and it will be observed that the receipts include a sum of £49 16s. 9d. for copies of the Transactions sold to persons not members of the Societies. It is proposed to devote the funds received in this manner to the illustration of hand-books on the various branches of the Natural History of the Colony.

The Proceedings of the Societies were issued to members in a separate form in July, 1870, and January, 1871; and the volume of Transactions for the year was in the hands of members early in May 1871. The latter consists of 351 pages devoted to original articles, as against 348 in Volume II., the total number of pages in the volume, including the Proceedings, being 499. Sixty-eight original articles have been published at length, and it has been found necessary to defer twelve articles for future publication.

Notwithstanding that in several cases illustrations sent with papers have been omitted, when not absolutely necessary to explain the author's views, the number of plates has been increased in this volume to thirty, there being in last year's volume only twenty-three.

There were 750 copies of Volume III. printed, 524 of which have been issued to the affiliated Societies, and 146 presented to Public Libraries in England and other places. The volumes remaining on hand at this date are—of Volume III., 80; of Volume II., 75; and of Volume I., 9 copies.

Under these circumstances the Governors cannot make the same distribution to the affiliated Societies of extra copies to be sold in aid of their funds as they did last year; and in future the spare volumes will be sold for £1 1s. each, which is the annual subscription paid by members of affiliated Societies. , President. Wellington, 28th August, 1871.