MUNICIPAL REPORT. The charge of the affairs of the Municipality was handed over to the present Council at a Meeting on the 1st March, when Mr. Pcrdon, as Chairman of the outgoing Council, said that as eight of the Members had served with him during the previous year it was unnecessary for him now to refer to the business of 1891 left outstanding. The Members then proceeded to inspect the Police force, which was drawn up in the Municipal Compound, owing to the ground adjoining the Central Station, the usual place of assembly, being no longer available for this purpose, having been selected as the site for the New Police Station now in course of construction. After going through the ranks Mr. Purdon expressed to Captain McEuejt the satisfaction of the Members at the smart appearance of the men, and then addressing them said :" Last year there was no inspection of the Policej but I am very glad to have this opportunity to express to the officers and men of the force the satisfaction of the Council and, I am sure, of the Community, at the able and efficient manner in which all the duties have been performed, particularly as last summer was a very anxious time and called for a great deal of extra work which was well carried out. The force may rest assured that the Community appreciates their labours and is desirous for the promotion of the welfare and comfort of all the men. When the new Central Station is finished the quarters for all will be as good as can be found anywhere, and although there are those before me who, like the most of us, have to live away from friends and home, they must do, as we all have to, make the best of it. This inspection has proved, if more proof were needed, by the large number and fine appearance of the men, that Shanghai has a Police force that she may well be proud of." 2