Their Relation to Higher Educational Finance 
27 
necessary requirements for maintaining a progressive Institution and 
without reliance on an uncertainty. This can only be secured by the 
allocaticm of costs with relation to the purpose and motives back of higher 
education and the building of a budget for many years ahead upon this 
cost schedule. The sources of income must then be sought in the channels 
that are parallel to the purposes for which higher education exists. The 
need of economy and of a more definite financial program in higher edu 
cation is urgent if it is to receive the proper financial support. 
Philanthropie Sources in 1924-25 
Taking the 1921-22 figures as shown in Tables 1 and 2, it may be 
Seen that the income from property and productive funds of private 
institutions figured at four per cent. amounted to $42,917,864. Allowing 
for a reasonable increase estimated at the rate of increase in the income 
for higher education during the past twenty years, the income from phi- 
lanthropy should reach approximately $50,000,000 in 1924-25. Adding 
to this an estimate of the gifts of philanthropy in 1924-25, amounting 
probably to $150,000,000, it makes a total contribution of $200,000,000 by 
philanthropy to higher education in 1924-25. 
Public Sources 
The public sources of income for higher education made their appear- 
ance with the advent of the desire for training in better citizenship. If 
higher education served such a purpose, it was therefore imperative that 
the state contribute toward its support. Land grants were made to private 
institutions already in existence and land set aside for state institutions 
to be established. Support to both state and private institutions was also 
rendered through funds derived from taxation. Later, city institutions 
for higher learning were founded which means that there are now both 
city and state taxes levied for the support of higher learning together 
with certain funds coming from the Federal government. 
Incidence of Public Revenue for Higher Education 
In discussing the public phase of support of higher education it is 
necessary to inquire into the equity of the incidence of such revenues. 
As economic conditions change, injustices are likely to arise and if they 
persist without remedy, the financial support of these state institutions 
of higher learning will be greatly hampered. It is necessary, therefore, 
that those who have the financial policies of such institutions in hand 
should study the social import of the sources of revenue and make an