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The provisions of the Homestead Act have not applied to this State.  Circulars upon the subject have been promulgated through the different Districts, but there have been no cases where the freedpeople have availed themselves of its provisions.  As a general thing they do not seem inclined to have their homes in this State.  In a few cases there seemed some inclination to do so, but the uncertainty of the movement and a lack of means, prevented its consummation.  Here recently a move has been made by those residing on Roanoke Island, with a view to removing to localities where inducements are offered by the Act, and it is proposed to send an agent for the purpose of examination.

[[underlined]] Contracts. [[/underlined]]

The average rates of wages under contracts made or witnessed by officers of the Bureau have been Ten dollars per month for men, and six dollars per month for women.

In many cases the system of sharing the crops, is in vogue.  This system has operated badly, and the freedmen have been advised against it.  They appear however to prefer it, although much complaint has been made by them in consequence of it, and more is anticipated.

Farmers in some cases, have as the crops matured, discharged their hands under frivolous pretexts, in this way depriving the laborers of their share, and rendering it necessary for the Bureau to interfere to protect their rights.  In other cases they find little or nothing due them in consequence of exhorbitant charges for provisions and clothing by the planter.

I shall recommend that all contracts hereafter made shall be for a stipulated amount in money, settlement to be made every month.

Schools.

The most gratifying results have attended this important branch of the Bureau, and it is arguing against stubbuor facts to say, that colored people are not susceptible of intilectual improvement.  It has neither been an idle nor useless experiment;  on the contrary, examinations and comparisons, show results that would be commendable in any schools for white children, with the same 

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opportunities.  The benefits of education are opened to old and young and it is no unfrequent occurence to witness in the same rooms and persuing the same studies, the child and parent, youth and grey hairs, all eagerly grasping for that which obtained they are intelectually regenerated, and are then prepared to enter the new career of life, so long a sealed path to them.

As an evidence of the great interest manifested for acquiring knowledge, an instance probably never before equalled in the history of education, is to be found in one of the schools of this State, where side by side, sat representatives of four generations in a direct line, viz:  a child six years old, her mother, grandmother and great grandmother, the latter over 75 years of age.  All commenced their alphabet together and now each can read the Bible fluently.

Night Schools have met with gratifying success, and are eagerly sought for by those whose labors are of such a character, as to prevent their attendance during the day.  The importance of these schools can be hardly over estimated, when it is considered how many are thus given the opportunity of intelectual improvement who would otherwise remain in deplorable ignorance.

Sunday Schools have been established at many points where teachers reside.  As the records of them, have not been incorporated in the education branch of the Bureau, no statistics can be given, but it is evident much good has been accomplished by their establishment, and no estimate can be made of the beneficial results of their full development.
On the 1st of November 1865, there were in the State 61 schools, 97 teachers and 5172 scholars;  during the ensuing four months, (the most favorable months for schools) the number increased very rapidly and the close of February there were 115 schools, 151 teachers, and 11,314 pupils.  As Spring advanced the demand for labor, withdrew many from their studies which in connection with an epidemic prevailing in many parts, materially lessened the number and the school year ended June 30th 1866, with 119 Schools, 135 teachers, and 9084 pupils.  From the 30th of June until Oct. 1st was the vacation season, and many of the schools were entirely closed during that time.  The new school year commenced Oct 1st with 68 schools, 62 teachers and 3493 pupils.  There have probably been