indebtedness in process of liquidation or engagements in building a rectory or church, we have not thought it opportune to canvass. These in due time will all be reached, and all will be allowed the privilege of doing their full and fair share. To this date it has not cost the Diocese or the fund one penny for postage, printing, or traveling expenses. Every dollar contributed has gone directly to the fund. From the sale of the North Meridian street lots, authorized by the Convention, the Trustees of the Diocese have been enabled to pay off the entire indebtedness of the Diocese, with a sufficient remainder to restore to the Episcopal Fund the $2,000 paid for this object some years ago by Mr. Charles Viele, of Evansville, and a good portion of the $5,000 paid by Mr. John B. Howe, of Lima, and used in payment for the building of our Episcopal residence, and arrearage of salary due my predecessor. For the first time in many years, it is a pleasure to report the Diocese free from debt with a permanent fund invested of $15,000. May it be a long time before we get into debt again. The Treasurer of the Diocese is greatly embarrassed by the failure of parishes to pay their assessments quarterly, as required. A little attention to business methods. in our parish finances would remedy this.

LAY READERS.

We have a body of thirty-one licensed lay readers. They are rendering valuable assistance in their several parishes in aiding their rectors in maintaining services during vacancies of rectorship— in mission chapels and Sunday schools. There is much room for increasing usefulness to the Church in detailing them for the establishment of mission Sunday-schools and reading service in places where the Church is not known; in seeking out neglected districts in the country and establishing services in school-houses and private houses, or taking the services in the home Church whilst the rector goes out to do mission duty.

Many of the clergy have given attention to extra parochial mission work outside of their regular cures, and generally with good results. The full story of this work we shall have in the report of the Board of Missions to morrow evening, and I need not stop at this time to dwell upon it.

WOMAN'S WORK.

The work of the Woman's Auxiliary is increasing each year in importance and interest. Several new Auxiliaries have been organized. The Diocesan Secretary has been present at several meetings of our convocations, and addresed the women's meetings held in connection with them. We hope the day is not far distant when we shall have a branch of the Auxiliary organized and at work in every parish in the Diocese.

The statistics as gathered by our Diocesan Secretary, and presented in her annual report to-day, is an interesting study, and shows how much of the Church's work in this busy age devolves upon the women.

a delight to observe.

PARISH IMPROVEMENTS.

The care bestowed upon the House of God and the decent, orderly rendering of the service throughout the Diocese, it has been There has been a marked improvement during the past years. Nearly every one of our older churches have been repaired outside and in, and put in the best of condition. The weekly celebration of the Holy Eucharist is almost the rule in the Diocese, as is also the observance of the Saints' days. These testify to a spiritual advance that is most encouraging and hopeful. Old St. John's, Lafayette, has perhaps made the greatest and most costly improvements by the addition of a new chancel, organ chamber and sacristy. They have now a complete and beautiful church. The improvements cost about $3,500. St. James's Vincennes, has added a new pipe organ at a cost of $2,500; St. Mark's, Aurora, has paid a debt of $400 on their rectory, and painted and papered the interior; St. Andrew's, Warsaw, has paid one half their indebtedness of $500; Trinity Church, Logansport, for the first time in many years, is freed from all indebtedness; St. Luke's, Frankfort, has paid $400 on their debt, leaving but $350 to provide for. Emmanuel, Garrett, has been greatly improved by interior decorations and stained glass windows, and is now building a rectory; St. John's, Elkhart, has built a new rectory at a cost of $2,000, and have it paid for; St. Paul's, Columbus, has been decorated in the interior, re-carpeted, and new chancel furniture added; St.

Stephen's, New Harmony, has been re-shingled, painted and carpeted, and other improvements made; Holy Innocents', Indianapolis, has also had its interior greatly improved and decorated, and is soon to be re-painted; they have also paid an installment of their rectory indebtedness; the chancel of Christ Church, Indianapolis, has been decorated and new tiling laid in the vestibule; the rectory at Plymouth, has been newly painted; St. Matthew's, Worthington, has been greatly improved by interior decoration, and rectory and church put in good order; Grace Church, Muncie, has added new chancel furniture, a memorial of Mrs. Mary Kirby.

St. Paul's, Jeffersonville, has purchased eligible lots for the site of their new church.

Trinity, Michigan City, has a large subscription toward a new stone church to be erected at no distant day. Grace Church, Indianapolis, the Bishop's church, has been greatly improved in interior, new stained glass windows put in, the exterior painted and new chancel furniture added. The growth of this congregation from nothing the past three years has been quite remarkable, and their pastor, Mr. Swan, has great reason to be encouraged. The liberal offerings of the congregations for all Diocesan work have been most gratifying. It is a great comfort to the Bishop to have such a Diocesan church where he can feel perfectly free to appoint all needed special services, and to meet his clergy for retreats, quiet days, convocations, etc. Already it is in the mind of a liberal member of the congregation to set apart a valuable property for its endowment; for this we are devoutly grateful.

NEW CHURCHES.

On Friday, Nov. 18, 1887, I consecrated the beautiful St. Paul's Chapel, Evansville, built of stone and brick by Mr. and Mrs. Charles Viele, "in remembrance of many mercies vouchsafed them by Almighty God." It is next the comfortable rectory, their gift to the parish, and beside the beautiful stone parish church. In the rear of it is the convenient parish house. Few parishes in the land are better equipped than St. Paul's, Evansville, for effective work for Christ and the Church. I mention this simply as an example worthy of imitation, that the entire salary of the rector of Holy Innocents' is provided by Mr. and Mrs. Viele. The Church

in Evansville owes them a deep debt of gratitude for their liberal aid in the advancement of the work of the Church there. As Bishop of the Diocese I here place on record my own grateful appreciation of what they have done and are doing for the Church. January 20 I held a benediction service for St. Mary's, Wilkinson, assisted by several of the brethren and a large congregation. It is a neat village church, buiit at the small cost of $900, with sittings for 150 persons. Rev. Mr. Engle deserves great praise for his faithful labors, and has reason to be greatly encouraged with the result. Four churches have been secured to the Diocese through his efforts in three years, and he has it in mind to build as many more in the next three years if he is spared.

Through the personal efforts and generosity of Mrs. Reginald Hall, a communicant of Christ Church, Indianapolis, a neat chapel has been erected in a locality accessible to a large colored population in Indianapolis, for St. Philip's Colored Mission. The lot cost $1,050 and the chapel $900. It will accommodate 150. The corner stone was laid February 7, 1888, and the benediction service on Trinity Sunday evening. We are glad to report this first effort to reach the colored population of our Diocese, and are thankful to report, also, that Judge Stotsenburgh, of St. Paul's Parish, New Albany, is making arrangements to purchase a lot and build a similar chapel for the colored people there.

On All Saints' Day, 1887, a mission was organized at Brightwood, a growing suburb of Indianapolis, by Rev. Mr. Engle. He found thirteen communicants of the Church residing there, and desirous of the ministrations of the Church. The opportunity offered soon after to purchase a valuable property, consisting of two lots and a comfortable church building that had been erected as a union church. The property had cost $1,500, and was secured for the Church at a cost of $400, which the people themselves will provide for with $250 from the Diocesan Church Building Fund.

Dr. Kemp, of Plymouth, in addition to the care of his important parish, has been doing mission work in several towns adjacent to him, among them Rochester, the county seat of Fulton county. Here, in February last, he had the opportunity of securing a valuable church property, on an eligible corner lot, that had belonged to the Lutherans, at a cost of $800. With some needed repairs it will make a suitable mission church in this important town.

.

At Albion, county seat of Noble county, under the care of Rev. Mr. Jephson, of Garrett, a lot has been secured at a cost of $350, and the means are in hand for the erection of a neat mission church.

A lot has also been offered at Auburn, county seat of De Kalb county, where in another year or two we shall hope to erect a church.

The old church property in Bloomington has been sold at an advantageous price, and a new lot purchased in a central location A neat church will be erected the present year at a cost of $2,500.

Gethsemane Mission, Marion, has taken steps for the erection of a substantial parish church at an early day, and Christ Church Mission, Huntington, under the care of Rev. Mr. Adams, of Marion, have taken steps to purchase a lot and secure a church building. At Mount Vernon, a band of faithful ladies are at work securing a fund for building a church the coming year. The Ladies' Guild, of Knightstown, have money in hand for the purchase of a lot, and have purchased an organ. They hope to build the coming year. All these records of Church progress within our beloved Diocese is a token to me, brethren beloved, of God's blessing upon our work and encouragement to faithful missionary effort. I hope they may prove incentives to us all to be up and doing in this great missionary field, where our lot is cast. Let us not despise the day of small things; in due time we shall reap a harvest if we faint not by the way.

CONVOCATIONS.

I have attended and presided at three meetings of the Northern Convocation, three of the Central, and two of the Southern, eight in all. These convocational meetings have proven of very great advantage in bringing the Bishop in closer affiliation with his clergy, and enabling them to discuss questions of great importance to our work, and to consult especially in behalf of the missionary interests of the Diocese. I am quite sure we have all felt that it was good to be there, and returned to our respective work encouraged and stimulated by our mutual consultations and instructions. I have been greatly strengthened and encouraged by the generous help given me by a few Eastern friends and parishes; without this aid, we could not have made the progress we have. They have my