Their Relation to Higher Educational Finance 
89 
A scholarship, on the other hand, should indicate less than a fellow 
ship. The person holding it need not have proved his ability so 
conclusively, but should have shown signs of promised scholastic ability. 
The award should be made in the same way as the fellowship, first as an 
honor and then as a financial aid. The financial consideration should be 
the same as with fellowships, that is, it should be secondary to other con- 
siderations and brought in only when the recipient of the award needs 
monetary assistance. 
In both cases the performance of something specific should be 
required. Actual performance as well as potentialities should be deciding 
factors in the granting of these awards. However, actual performance 
should weigh more heavily than potentialities in the question of renewing 
the funds. 
There may be established certain guiding principles for the admin- 
istration of scholarships and fellowships: 
1. A fellowship should be an honor awarded for proved scholastic 
ability with a promise of greater development of that ability. 
2. A scholarship should be an honor awarded for promised scholastic 
ability. 
3. The financial consideration should be of secondary importance. 
Money should be given only to those fellows and scholars who 
need it in Order to do their best work. 
4. If the training received and the work done has an economic value, 
the financial assistance should be in the form of a loan; if not, it 
should be in the form of a periodical allowance. 
5. The fellowship and scholarship should be retained only so long as 
the holder produces something specific in the way of advancing 
or of organizing knowledge.