28 
A Study of Student Loans and 
effort to shift the incidence of such revenue to make it conform with the 
new economic conditions and the changing purposes back of higher edu- 
cation. It can hardly be said that the general property tax is still a just 
source of funds for higher education. It has been found to be an inade 
quate form of taxation; so other forms have been resorted to, but always 
only to secure the required revenue and without regard to whether the 
incidence was equitable. It is urgent that adjustments be made if the 
necessary revenues are to come from this source, for the Capital needs 
for higher education are increasing almost proportionately with commodity 
and wage prices whereas growth of assessment values, on the basis of 
which these must largely be met, has decidedly lagged. 17 18 19 Such being the 
case, there must be a readjustment in the means of support for higher edu 
cation. The mill tax which is still used as a foundation gradually became 
inadequate and new sources of revenue were sought, generally with the 
idea of securing money with the least resistance and not with any policy 
of forcing those persons who receive the benefit of university training to 
pay for it. In 1919-20 the per capita share of public contributions to 
higher education in the different States ranged from $3.12 to $0.11. 1S It 
is reasonable to conclude that these contributions bear no relaticm to the 
benefits received. The University of Nevada with its income of $3.12 
per capita in the state undoubtedly is not serving the public any better or 
more extensively than the University of Wisconsin which is in a state 
where the per capita tax is $1.21; or in Ohio with its $0.44 per capita 
tax during the year 1919-20. To carry out a policy which would provide 
for taxation in accordance with benefits received would be a difificult task, 
but the present is an opportune time for the introduction of such a plan, 
for we are now at the outset of that state of government activity that might 
be called the constructive functions of government. We do not simply build 
upon the actually existing Situation and improve it, but we now seek to create 
entirely new conditions and to make something exist which never existed 
before.“ 
There is, then, but one alternative in this matter. The state expenses 
for higher education must be allocated in accordance with and at the point 
where such institutions market their waves; or the sources must be left 
as they are now and, to those who are bearing the financial bürden, should 
be given a full return on money invested, as some of the state universities 
are attempting to do. It is difificult to see any other alternative. 
11 For full discussion of this subject see: D. Snedden, “Capital Needs for Education in the 
United States,” Annals of the American Academy of Political Science, Jan., 1920, pp. 71-82. 
18 Including Normal Schools. Taken from the “Report of a Survey of State Institutions 
of Higher Uearning in Kansas,” U. S. Bureau of Education Bulletin, 1923, No. 20, p. 143. 
19 E. R. A. Seligman, “The Financing of Education,” Educational Administration and 
Supervision, Nov., 1922, p. 450.