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  education ­
  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  philanthropy
  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  appearance
  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