26

A  Study  of  Student  Loans  and

for  higher  education  during  the  last  year  by  three  inviduals  and  does  not
include  the  many  other  gifts  and  commitments  which  will  be  found  to
amount  to  several  million.  If  the  amounts  donated  for  research  and  the
advancement  of  knowledge  to  institutes  and  foundations,  other  than  universities
  and  Colleges  (and  such  research  should  be  classed  as  part  of
higher  education),  were  added,  the  gifts  and  bequests  in  the  United  States
in  the  year  1924-25  may  be  well  over  $150,000,000.
Reliability  of  Philanthropie  Sources  in  the  Future
In  speaking  on  this  subject,  Lord  Bryce  said  that  the  people  of
England  who  usually  endow  Colleges  can  no  longer  give  in  the  generous
sums  to  which  they  have  been  accustomed;  that  the  taxation  of  incomes
and  inheritances  is  taking  half  the  property  of  the  rieh;  that  the  same
conditions  prevail  in  America  where  income  taxes  and  other  forms  of
taxation  are  lessening  the  available  income  of  many  people  by  one-half;
and  that  only  the  possessors  of  very  great  fortunes  can  still  give  in  large
amounts. 14  As  against  this,  Dr.  C.  F.  Thwing,  President  Emeritus  of
Western  Reserve  University,  maintains  that  the  fear  among  certain  College
people  in  America  that  the  race  of  rieh  men  will  die  out  and  so  be  unable
to  give  in  large  sums  is  not  well  founded,  because  new  sources  of  revenue
are  continually  being  discovered.
It  is  difficult  to  reconcile  these  two  views.  The  facts  in  the  case
support  neither  one  as  stated.  An  increasing  amount  of  money  has  been
set  aside  each  year  by  philanthropy  for  higher  education,  but  while  these
amounts  received  from  private  sources  have  increased,  and  there  is  no
reason  to  suppose  that  they  will  not  continue  to  do  so  for  some  time,  still
the  needs  have  outrun  the  sources  by  leaps  and  bounds  and  accomplishment
  seems  to  be  lagging  far  behind  opportunity. 15  It  is  not  a  question
of  how  much  is  nerw  being  received  and  is  to  be  received,  in  an  absolute
way,  but  what  proportion  the  receipts  bear  to  the  expenditures  necessary
to  move  forward  at  a  pace  commensurate  with  opportunity  and  need  for
the  development  of  higher  learning.  This  Situation  demands  more  than
just  increased  endowments  or  appropriations.  It  is  doubtful  if  it
could  be  met  in  this  way.  Although  more  money  is  essential,  alone
and  unaided  by  farseeing  management,  it  will  scarcely  serve  to  meet  present ­
  and  future  needs. 10  What  is  necessary  in  higher  education  is  a  proper
financial  as  well  as  an  educational  program.  Such  a  program  must  not
only  budget  the  income  available,  but  should  budget  according  to  the
14  Quoted  by  C.  F.  Thwing  in  “Support  of  Higher  Education,”  School  and  Society,  March
19,  1921,  p.  356.
15  Editorial,  “Cost  of  Higher  Education,”  Educational  Review,  Sept.  1920,  p.  173.
10  Ibid.,  p.  173.