The Indians of the Kualt or Little Shuswap Lake Band on account of the high water of two years ago, which undermined a number of their houses, have removed the village from the end of the Little Lake to higher and more suitable ground a half mile up the Little River, as it is called, which connects the large and small Shuswap Lakes. They are clearing some of the best land, which was heavily timbered. This will be a great benefit to them, as they have had but little cultivable land.

The Spallumcheen Band had a very good crop of wheat last year, which was largely due to some of the white settlers, who gave the Indians some assistance in the shape seed, & c., with a little advice which gave good results.

The Okanagan Indians, as a whole, had good crops for the acreage and seed planted. For a year or two past, their crops were poor, and many had no seed nor the means to buy for a large acreage. This was especially the case with the N-kam-aplix Band, but with the past crop and the prospects of another good crop this year, they will be in a different position before long.

The Nicola Bands continue to progress. They have had the usual amount of freighting to do at seasons when they do not require to work their lands, which is a great assistance in giving them some ready money to buy seeds and necessaries.

Kamloops Industrial-school. - The pupils in this school are making rapid strides. They have, during the past year, completed their carpenter shop, where there is room for from six to eight boys to work. They have turned out some very creditable work, many of the boys showing considerable mechanical ability. There has also been a shoe shop added, where five or six boys work. They have been making all the shoes required for the pupils, as well as the repairs. They had an excellent crop in their garden, though they are still short of water for irrigating, but the reverend principal hopes by another year to have a much larger ditch, which will give ample supply.

Lytton Hospital. - The Sisters in this hospital continue their good work amongst the Indians. A number of cases, which were admitted to the institution and successfully treated, would have been fatal without the good nursing thus procured, which, of course, they could not have obtained in their own homes.

I have, & c.,
WENTWORTH F. WOOD,
Indian Agent.
BRITISH COLUMBIA,
KOOTENAY AGENCY,
FORT STEELE, 22nd July, 1896.

The Honourable
The Superintendent General of Indian Affairs,
Ottawa.

SIR, - I have the honour to submit my report for the year ended the 30th June. I also inclose herewith my tabular statement as required by the department, an inventory of the Government property having already been forwarded.

Agency. - What is known as the Kootenay Indian Agency, comprises the following bands, viz.: the St. Mary's, the Columbia Lake, the Tobacco Plains and the Lower Kootenays or Flatbows, and the Shuswaps or Kinbaskets.

St. Mary's or principal band is located on the St. Mary's reserve, between the Kootenay and St. Mary's River. The land lying along the Kootenay River is where the Indians have their little farms, and cut hay for their cattle. The bench or bunch grass lands is used for grazing. They cultivate about seventy acres and raise wheat,