"The Permanent Collection of Art had been greatly enriched by the pictures purchased and also by pictures presented to the city. The wall space in the galleries was so limited that the work of the committee was carried on under great difficulty. An enlargement of the Art Gallery was urgently needed. Under the active chairmanship of Mr. Lea, assisted by Mr. Dibdin, the curator, the Autumn Exhibition of pictures continued to grow in excellence; but, notwithstanding this, it was remarkable that the interest of the public in pictorial art appeared to be on the decline. Whereas in 1891 the total receipts of their exhibition reached £4,138, and in 1892 £3,609, last year they were only £3,068; and while in 1891 pictures were sold of the value of £7,603, last year the sales only reached £4,446. This falling off was, however, not peculiar to Liverpool. The art exhibitions in London had the same experiences. It was no doubt attributable largely to the beautiful art processes by which pictures were reproduced, which appeared to satisfy the public taste and destroyed the desire to see the originals. Another cause might be attributed to the changes which had taken place in the art decoration of houses, which did not admit of the display of pictures. No doubt in time a reaction will take place. Art might sleep but it could never die. It was not thinkable that a love for pictures could for long be dormant; but in the meantime they must appeal to the Liverpool public for a generous support to the efforts made by the Art Committee to bring to their doors every year the very best pictures produced in this country. "In looking back over the past eighteen years," remarked Sir William in conclusion, "I feel very proud of the excellent work done by these institutions. We have ministered largely to the education and entertainment of the people. We have carried brightness and sweetness into many a home, and have done not a little, I hope, to refine and elevate the masses of our fellow-citizens, and I think we can also claim to have been faithful stewards of the funds placed at our disposal. In taking leave of you I thank you all for your kindness and consideration. To Mr. Holt, our senior member, who has occupied the vice-chair all these years, I tender my grateful thanks for his help always so cheerfully given. I am also greatly indebted to our staff for the assistance they have invariably extended to me, and I wish to especially record my obligations to our veteran chief librarian (Mr. Cowell), who has rendered to me the greatest service in many ways, and especially in keeping a careful oversight upon our finances. If I might take the liberty of leaving behind me a word of counsel and advice, I would say--strive always to popularise these institutions; they belong to the people, and the more they are brought into close contact with the people the more generous will be their appreciation and support, and greater will be the amount of real good accomplished.