The year just brought to a close has been one of unusual pecuniary embarrassment to all the schools of the South. While every branch of the department of education has been affected by it, that relating to the employment of teachers has suffered most. Notwithstanding these discouraging circumstances, the schools in most of the States, instead of deteriorating, have advanced in almost every respect. The attendance was never so great; the interest of the people never so general. An approximation, near or remote, in the great mass of teachers, to the standard of those professionally educated, has been effected, sometimes by county organizations, under State supervision; sometimes by bringing together teachers from all the counties of a Congressional district; and, in one instance, by assembling the teachers of a whole State to receive instruction for a period of six weeks. This is a new feature in the school operations of the Southern States, and is now more rapidly revolutionizing modes of instruction than any other measure that has been tried. No part of the funds at our disposal has produced greater or better results than that contributed to this object. The scholarships established last year have had an excellent effect. Those given to the New Orleans Normal School, in amounts of $150 each, were used for the benefit of pupils from the country parishes. They were ten in number. Those of the Nashville Normal College, of $200 each, were for pupils from beyond the limits of Tennessee. The number of white children in Virginia, December 1, 1877, between five and twenty-one years of age, was 280,149; that of colored children, 202,640, making in all, 482,789. Of these, 139,931 white children and 65,043 colored were enrolled in the public schools, amounting to 204,974, or somewhat less than one-half. The average daily attendance was only 117,843. The current expenses for the public schools and school officers were $949,721; and for permanent improvements in real estate, houses and furniture, $100,625. Although the current expenses were reduced $36,000, the school work was increased, and the number of pupils was 5,000 greater than the year before. It is well known that the State is largely in debt; and the courts have decided that the school fund may be used for the benefit of the creditors. In North Carolina the provisions for education are altogether inadequate. There is a great lack of funds, and also of proper organs to execute the law. So long as a meagre State tax is the sole reliance for the support of schools, they will inevitably languish. Double the amount of money now raised would be a scanty supply. The organization of boards of education, and of the other branches of school administration, is radically defective.