The rents, profits, and annual income of all real and personal estate which may be vested in the Board, together with all funds which may from time to time be derived from fees or payments made in respect of scholars or students attending the said high school or schools, together with any annual allowance that may be made by the General Assembly of New Zealand or the Government of such colony, shall be applied by them for the maintenance of the said high school or schools, and the payment of salaries and expenses connected therewith, and for prizes, exhibitions, and scholarships for the students therein:
Provided that the Board shall have power to set apart, if it shall see fit, out of the said rent, profits, and annual income, such part as it shall consider advisable, either as addition to the capital fund, which shall then be invested in manner as hereinafter mentioned and dealt with as part of such capital fund, or as a reserve fund to meet extraordinary expenses, which shall be invested and dealt with in such manner as the Board shall direct.