JAN 5 1927 DDH TEE GGETG SAAT TTT TTOGOTGSSO| a Ie a VOL. IV, NO. 5 NOVEMBER, 1926 ce z a AI . 17) a 4 Research Bulletin Se - a ~ is 3 us OF THE al e i ational Education Association “ RS oh a ———— 7 x ' et hem 4 4 cs == ae vs ‘x ee -_ 7) GB a (4) 2 z F) eB Nd Nd 7] a on . « . io 4 x oe Major Issues in School Finance es SB Part I i) cB ray ra pS (Part II of this study dealing with problems of state school finance will appear in Se 4) the January, 1927 issue of the Research Bulletin) cS a Gg a So | The Nation’s Economic Ability to Meet School Costs ... ... 239 'F bd hs S , 2 Ay ™ Fi School Costs and Economy in Public Expenditures rf 249 ia ‘eS —. I & 4) 4 Z a KS) 4) ra om SB 1% \% 17) g a Ss 4) tr 14) 4) PUBLISHED BY THE RESEARCH DIVISION GS ie; { i Pr OF THE NATIONAL EDUCATION ASSOCIATION tee x ft) ane 1201 SIXTEENTH STREET NORTHWEST, WASHINGTON, D. C. te 14) 7) os = it} ix ~) Entered as second-class matter February 10, 1923, at the Post Office. at ad f°] Washington, D. C., under Act of August 24, 1912. Acceptance for 7) rod mailing at special rate of postage provided for in Section 1103, Co 17] Act of October 3, 1917, authorized February 10, 1923. 17) ; zi FIIZIZIZIZIZIS Research Bulletin of the National Education Association Published five times each year in January, March, May, September, and Novembe: by the Research Division of the National Education Association of the United States. President, Francis G. BLair Secretary, J. W. Cranrret The payment of the $5.00 membership fee of the National Education Association entitles one to receive the Research Bulletin, the Journal, the Annual Volume of Ad- dresses and Proceedings, and certain other publications of the National Education Asso- ciation for one year. One dollar of each $5.00 membership fee is for a year’s subscription to the Research Bulletin. The Research Bulletin may be subscribed for separately at a subscription price of $1.00 per year. 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An An Inc Pur Per Inc: Inc Anz Per Per TABLE OF CONTENTS PAGES ee REE a ee ee fie eae ad alee 238 The Nation’s Economic Ability to Meet School Costs 239 Ratio of School Costs to Income and Wealth........... are Te eee , nae . 239 Value of Education Versus Its Costs...... 240 Economic Effect of Increase in School Costs OE EP A EEE Ee ip eae eee 242 School Costs and Increase in Capital..... See oe eee bs ecb han ictal 246 Continued Business Expansion....... 248 School Costs and Economy in Public Expenditures 249 Causes of the Growth in School Costs....... pe er) er poe ae CRA MWR ae 249 Economy in Federal Expenditures and School Costs .......... ere ee 255 Comparison of Effect of War on National and School Expenditures .............. 255 Ns again ko od Ni bua eka seer OSE Oe Va inense PPC re er 256 ND BG bc a Sis dddew a dnnde$ ies ace eeviecadd eGeeeereese 261 — LIST OF TABLES Wealth, Income, and School Costs in the United States, 1890 to 1924 (Table 1)............ 242 ey RO OD COE ED iiois so cid ee ised Vinee s ci Reaw ERE edd dete devains sy ae Analysis of Factors Causing Increase in Public School Costs, 1914 to 1924 (Table 3).......... ia a Analysis of Increases or Decreases in Public School Expenditures per Unit of Service Rendered 252 TO EE RT, ORE ie the On ae en ee eee 2 Increase in Ordinary Expenditures of Federal Government and School Costs, 1914 to 1924 (Table 5) 256 LIST OF CHARTS Wealth, Income, and School Support in the United States in 1924 (Chart 1)........... ree 240 Is Too Much of Our Economic Power Going for School Support (Chart II)........... ee 241 Can a Nation Continue to Increase the Percentage of Its Income Allotted to School Support (Chart III) 243 Amount and Percent of Current Income of the United States Allotted to School Support and Percent ee eee eee, Ce mrmgeee PCRS EV) oo ccais isc cicc civics cn viessladis sane natesdeicrnceee . 244 Purchasing Power in 1890 Dollars of the Part of the Nation’s Income Used for Purposes Other than Dy ee Setar ada inesbhe ARG aCe kc oa 245 Percentage Increases in Volume of Production in the United States (Chart VI)........ ee 246 Increase in the Nation’s Tangible Wealth—1890 to 1924 (Chart VII)............. fine vies 247 Increase in Amount in Nation’s Savings Accounts (Chart VIII) .............. ; aa 248 Analysis of Factors Causing Increase in Public School Costs 1914 to 1924 (Chart IX) 251 Percentage Increase by Decades in Number of Dollars Expended for Public Elementary and High EE Se oe chs biases sccvotacie os abe ces te OE LEE nee ee eee a ee Percentage Increase by Decades in Purchasing Power of School Expenditures Per Child Attending EE ee ere Pe ree eee fa s-osst axslkacs os GAL eats »» ae Trends of Public School Costs in the United States (Chart XII) ee senses 254 FOREWORD The recent growth in school costs has been accompanied by misgivings in certain quarters. Some have stated that school costs are larger than the economic resources of the nation justify. They have contended that a reduction in school costs is de- manded by proper economy in public expenditures. Others have challenged these con- clusions. They have maintained that the economic power of the nation is more than enough to justify existing school costs. They have stated that the expenditures for education can be justified under a policy of economy and efficiency in public expendi- tures. If school costs are greater than they should be the fact should be squarely faced. No public service has a right to claim more than can be justified by its importance to the general welfare and the nation’s ability to pay. No enterprise, either public or private, should be allotted a larger share of the nation’s income than is necessary for its effective operation. On the other hand, if present expenditures for education can be readily justified when measured against the criteria of the nation’s ability to pay and the exercise of constructive economy in public outlays, the fact should be made known. Otherwise great harm may be done to the schools and the children of the nation. The facts necessary for an intelligent consideration of these questions, as they effect the nation as a whole, will be found in this issue of the Bulletin. The next issue wil! present similar facts for the individual states. These two Research Bulletins, pub- lished as parts I and II of a study entitled, Major Issues in School Finance, present the results of one of the most significant investigations yet completed by the Associa- tion’s Research Division. They deserve the thoughtful study of public school people and public spirited citizens throughout the country. J. W. Crastree, Secretary, National Education Association. [238] In recent years many questions have been raised concerning the relationship of school costs to the nation’s economic development. Some have stated that the nation’s economic resources are insufficient to support the amounts being spent for education. The schools have been warned that the cost of public education must be brought within a limit of expense which the public can bear. Others have contended the nation can easily meet existing and even larger school expendi- tures if efficiency demands, and that there is no basis for the fear that increasing expendi- tures for education will result in undesirable economic developments. This is one of the major issues in the field of school finance. The following pages pre- sent data pertinent to its intelligent consider- ation. Ratio of School Costs to Income and Wealth How much of its economic power is the United States devoting to education? ‘To an- swer this question it is necessary to have esti- mates of the economic power of the nation and of the amount expended for schools. Wealth and income have been widely accepted as the two best indications of the economic power of a nation. By wealth is meant the value of all tangible property accumulated over an extended period of years. By income 1See page 13 of article by Ernest Minor Patterson, of The New Republic, November 4, 1925, Part Two. *That this is a conservative estimate is indicated by Wealth and Income, 1926. zations which might be termed schools. See footnotes to Table 2. The Nation’s Economic Ability to Meet School Costs the aggregate of all individual in- comes in a single year. The wealth of the United States was $320, 803,862,000 in 1922 according to the Federal Census. David Friday recently estimated that we added $12,000,000,000 to our na- tional wealth through savings in 1923. There was doubtless a further increase in our wealth in 1924. mate that the value of tangible property in the United States in 1924 was probably not less than $335,000,000,000.? The most recent scientific estimates of the current income of the nation are those of the National Bureau of Economic Research for 1919 to 1921. ‘The average current income of the United States in these years was $68,- 049,558,000. Some estimates of current in- come for 1923 run as high as $70,000,000.- 000.* It is probable that the nation’s income in 1924 was not less than $66,000,000,000. The latest school costs in the United States are for the school year 1923-24. In this year approxi- mately $2,336,073,018* was expended for all types of schools, both public and private, 78 percent of which, or $1,818,743,917, was ex- pended for public elementary and secondary schools. The estimated value of all property, sites, buildings, etc., used for school purposes was $5,438,252,562 in 1924. The value of public elementary and secondary school prop- is meant It is, therefore, conservative to esti- comprehensive figures as to Wharton School of Finance, University of Pennsylvania, in Federal Trade Commission’s recent Report on National *Report of Federal Trade Commission, on National Wealth and Income, 1926. ‘The figures given as to the cost of education omit, because of lack of available data, expenditures by a few organi- ? numbers, at 60 billions of dollars. income of the people rose rapidly. and nearly 75 billions in 1920. sion, Washington, D. C., pp. 12-13. HE TOTAL INCOME of the people of the United States in 1918 is estimated, in round This was a war year. rising prices and wage rates that immediately followed the close of the war, the total money It is estimated at more than 67 billions of dollars in 1919 When depression paralyzed a large portion of industry and prices and wage rates fell the total money income declined also. According to the Commission's estimates, it was less than 53 billions of dollars in 1921, but increased rapidly as business recovered, It is estimated at nearly 62 billions in 1922 and nearly 70 billions in 1923.—Summary of Federal Trade Commission Report on National Wealth and Income, Federal Trade Commis- During the two years of rapidly [239] erty was $3,744,780,714. These statements may be based on the preceding figures: (1) In 1924, the value of property used by public elementary and secondary schools was 1.12 percent of the value of all tan- gible property in the United States. The value of property used by all types of schools, both public and private, was 1.62 percent of total property values of the United States. In 1924, 2.76 percent of current income was expended for public elementary and secondary schools. The cost of schools of all types, both public and private, re- quired 3.54 percent of the nation’s in- come. (2) Chart I presents these facts in graphic form. It is clear school support at present requires but a minor fraction of the nation’s economic power. It has been contended, however, that even the small percentage of our economic energy alloted to education is larger than it should be. Value of Education Versus Its Cost Are the percentages of our wealth and in- come devoted to school maintenance too large? 1 Census of Manufactures, U. S. 2 Agricultural Yearbook, 1924, U. S. cars and accessories, upkeep and repairs, Department of Commerce. Department of Agriculture, p. 114 * Estimate of Bureau of Industrial Technology, New York City, March, tires, garaging, gasoline and oil. No dogmatic answer can be given to question. Every man may answer fo: self. To arrive at an intelligent answe: will need to do two things. First, assivn place to education in the scale of human ues. He must decide whether education j more important or less important than ot! major services society provides for. Second he will need to compare the percentages our income used by these services with tha: expended for schools. He will then be in 4 position to answer the next question. Is the percentage of the nation’s economi power devoted to education greater than it importance justifies? Reliable indications are available as to the amount of economic energ, consumed by a number of our major interests In 1923 the total value of the nation’s manu- factured products was $60,555,998,000.! The value of agricultural products in 1924 was $12,404,000,000.2, The annual national ex penditure for the purchase and upkeep of automobiles according to the latest data avail able is $8,768,000,000.° In 1924, the total governmental expenditures for all purposes other than schools, was $7,915,926,982.* The total value of building construction in the United States was not less than $6,000,000 000 in 1924.5 In 1924 the people of the ” 1926, including these items: cost of new * Estimate based on data in Cost of Government in the United States, National Industrial Conference Board, | p. 86. 5 Commerce Yearbook, 1924, U. CHART I S. Department of Commerce, p. 259. WEALTH INCOME,&.SCHOOL SUPPORT ~” UNITED STATES IN 1024 Estimated. value of? all = $335 Value of all rty used fae school purposes § 5.438,252,562 Estimated Current Income $66,000,000 ,000 Total Expenditures fde gsc 2,336 073,018 For wealth.estumate based on data of U.S. Bureau of Census data, ational Bureau of Economic Sesearch eb oaks: Grated pay nk eae [240] United States expended $5,522,000,000 for certain articles in the luxury class, namely: soft drinks and ice cream, theaters, candy, chewing gum, tobacco, jewelry, perfumes and cosmetics.* The figures just given as to value of prod cond ucts and expenditures for certain major ser\ es of ices cannot be directly compared with the ex So penditures for education as a basis for an exact estimate of the percentage of the nation’s in All of the items given that in a come going to each. are not mutually exclusive. ‘This and other C { 7 reasons make it undesirable to use the figures given for this purpose. “They can be accepted, however, as evidence that school claiming a much smaller fraction of the total supply of economic energy than a considerable number of other great national interests. We may agree or disagree with the statement: “Education is the most important business of a nation.” The fact is, however, that there are a number of yearly claims several times as much of our economic power as the schools. n its S are ; lergy support is rests, 1anu- The was l ex- p of ivail- total OSES, The the 00, - “businesses” each of which ‘Estimated Expenditures of United States for Certain of the nation’s economic to education Is the percentage power devoted greater than its importance justifies? If a person believes the advanced 3018 general welfare would have been had the school expenditures of $2 in 1924 been reduced slightly >? = 30,0; so that we could have increased the: Value of manufactured products which was approximately $60,000,000,000 ; Value of agricultural products which was $12,.404,000,000 : Expenditures for automobiles which $8,768,000,000 ; were tor tivities which were other governmental ac $7,915,926,982 ; Expenditures Value of building construction which was $6,000,000,000 ; Expenditures for certain luxuries which were $5,522,000,000 ; then he will answer “‘yes’’ to this question. Otherwise, his answer will be “no.” irticles, 1920-24 U. S. Treasury Department, April CHART II the Cost of all schools , public and private 4924 2,336,073, 018 Value of all products,- 1923 $60,655,998, 000 Value of all icuitural products, ~ #12, 404,000,000 Cost. of automobile transport- 1925 IS Too MUCH OF OUR ECONOMIC POWER GOING FOR SCHOOL SUPPORT ? Aescarch Dansiwn Athonal Slucation ash S. Bureau of Education; J U.S. De; accessories and, other items included in the cost of automobile Sources of deta: U Goarbocts epartme New York. City; Naboal Industral Condecence Board, New Tork City, and U.S. Treasury Depactment ; The items given are not mutually exclusive, for example , products. Some of’ the luxury costs are also included, in this item. etc mtsof Commerce and te nae Bureau of Industrial Technolgsy pact of the value of new automobiles and ctation are also included, in the value of all manufactured 241] 12 y dividing page 70; Column 12 is ob- The data on wealth and income for 1924 are esti- purposes other at ag support in dollars 11, 892,315,935 17,674,797, 766 24,502 ,993, 209 34,378,520, 580 available for Amount of income umn 6 is obtained Index number of whole- | all sale Prices, il 1913—100 ome ; Column 9 is obtained b available for all ~ other than school support 10 11,892, 315,935 17,674,797, 766 29,948,102 .829 63 ,663 ,926, 982 ep rtment of Commerce, 4 and 5, U.S. Bureau of Education Col ng column 5 by column 2 ,U.S.D f olumn 11. cost of all | Amount of inc Income e relation- schools, both pub- lic and private and Percen Wealth esearch; Columns Income e relation- Pe — public ele- Wealth Column 11, 1924 Commerce Yearbook er of 1890 by using index numbers of c 189 , 684,065 290 , 202 , 234 651,897,171 2, 336,073,018 dividing column 4 by column 3; Column 8 is obtaine1 by dividi sus; Column 3, National Bureau of Economic Ri 214,964,618 482 , 886,793 1,820, 743,936 _by subtracting column 5 from column 3; 140,506,715 Bureau of the Cen umn 10 to dollars having the same purchasing pow obtained by y column 2; Column 7 is obtained b Column 10 is ng the amounts of col mated independently. TABLE 1—WEALTH, INCOME AND SCHOOL COSTS IN THE UNITED STATES, 1890 TO 1924 Column 2, from U. S. lumn 4 b | by column 3; ng co Sources of data: by dividi column 5 tained by reduci [242] Economic Effect of Increase in Schoo! Costs Estimates as to the nation’s wealth, in and school expenditures are available {o; considerable period of years. ‘These are give; in Table 1. This table clearly shows tha; the percentage of the nation’s economic powe; going for school support is increasing. Cay this tendency continue? Is it possible furthe; to increase the share of the nation’s econom resources allotted to school support ? Provided the educational product of the school is sound it is possbile to increase the portion of a nation’s income going to educa tion indefinitely. Chart III shows why this is possible. This chart represents hypothetical amounts of yearly current income in a nation at three widely separated periods, and the amount and percentage of total income al- lotted for school support in each of these periods. During the first period the yearly income of the nation is $1,000,000 and of this amount $50,000 or five percent is devoted to school support, leaving $950,000 or @® percent for all other purposes. In the second period, the nation’s income has increased to $2,500,000. Of this amount $250,000 or 10 percent is expended for schools, leaving $2,250,000 or 90 percent for all other activities. In the third period the nation’s income has reached $5,000,000 and it expends $1,000,000 or 20 percent of this amount for its schools and has $4,006,000 or 80 percent left for other things. The nation in the third period is spending four times as great a percentage of its income for education as in the first, but has more than four times as much to spend for purposes other than school support in the third as in the first period. This is the tendency one should expect in a civilized nation which maintains facilities for the effective education of its people. ‘The amount expended for schools today returns tomorrow in the form of increased productiv- ity. Russia has the people, the natural re- sources, everything that makes the United States economically the strongest nation in the world, except the product of the school—an educated populace. In the United States the school, for generations, has been building up a high level of educational attainment. ‘The majority of our population reads with facility, and therefore, has the keys to the experience 4 of unt ool for the 00. is or the hed 20 has igs. ing mie ore ses In of others. Education has created that flexi- bility of mind in the masses of our people that makes change comparatively easy. ‘The introduction of new machinery and methods of production is readily accomplished. Co- operation on a voluntary basis and on an ex- tensive scale is readily gained. Witness the success with which farm cooperatives have been organized and the ready response of in dustry to the campaign of the Department of Commerce for waste reduction. Such things are impossible in a nation still in the grip of ignorance. Has the tendency to increase the percentage of income of the United States devoted to edu cation been accompanied by decreases or in- creases in the economic power available for other purposes? In the United States in- creases in school costs have been accompanied by steady and substantial increases in the amount of income available for other purposes. This fact is supported by the data in Table 1, and graphically represented in Chart IV. Between 1890 and 1924 the percentage of our income going to education increased from 1.57 to 3.54. In 1890 the amount of national income used for other purposes than school support was $11,892,315,935. In 1924 the corresponding figure was $63,663,926,982. Part of this increase is due to the depreciation in the value of the dollar. Chart V shows, however, that the economic power of the na tion available for purposes other than school support, stated in dollars of 1890 purchasing power, was approximately three times as great in 1924 as in 1890. While our population in creased 80 percent our resources over and above those used for school support increased 189 percent. Large increases have taken place in the na- tion’s economic output in practically all impor tant forms of production, whether the situation is studied over a long period or in recent years. The net value of all farm products in 1913 was approximately $7,199,000,000. In 1924 the corresponding figure was $12,404,000,000. The value of all manufactured products in 1914 was $24,246,434,724, in 1924 $60,555 998,000. States (as measured by the aggregate amount The banking power of the United CHART III.—(A HYPOTHETICAL EXAMPLE) | CANA NATION CONTINUE TO INCREASE THE PERCENTAGE » e Amount and percent of income S allotted: to school support Amount and percent, of income § mF available for support ot all other acuvities % 4,000,000 \) or 80% - e 3 S SS 9. OU, COOL = | — $2.250,000 § or 90% Lt #50,000 or 5% = Division of yearly income Ouvision of yearly income Division of’ yearly income of "1,000,000 during one period. of'*2.500,000 during a second. period of %5,000,000 during a third period. Fesearah Danson, Aatonal Pittiwal dae! Interpretation of data: At the same time that the percentage of’ the nations income expended for education, in ti hypothetical example. 1¢ quadrupling (fhom 5% to209 the amount of income available for other than educational purposes also more than. quadrupled. This is what should normally be expected in a nation with an effectively operating school system [243] Ss A of capital, surplus, and individual profits, de- posits, and circulation) in 1913 was $23,360,- 000,000, in 1924, $56,447,000,000.t Build- ing and other construction in 1924, showed the largest volume in our history—the value of all construction reaching a figure of not less than $6,000,000,000.? Part of these increases is due to deprecia- tion in purchasing power of the dollar. Chart VI shows, however, that when correction is made for this factor there is stilk evidence of substantial increases all along the line in the amount and volume as well as in the value of production. This conclusion is supported by the following statements quoted from the 1924 Yearbook of the United States Department of Commerce : Farm Productivity. The aggregate (agricul- tural) production of 1924 has been exceeded in only two years in our history—1920 and 1915. Factory Productivity. The figures for 1923 when reduced to a quantitative basis (in order to avoid the effect of decreased purchasing power of the dollar) show that our manufacturing output has Ibid, p. 261. CHART IV 11924 Commerce Yearbook, U. S. Department of Commerce, p. 437. increased by fully 60 percent over that of It also shows a very substantial gain over | Manufacturing output reached its highest in our history in 1923. The Department of ( merce index for that year averaged 119, on 1919 as 100. The 1924 index was 5 px less than this peak, but higher than in any year since the end of the war. Banking Power. In any comparison of pre and post-war banking resources allowances ; be made for the rise in the general price leve! for the important changes in banking practices to the establishment of the Federal reserve sys: Account must also be taken of the heavy inf of gold from abroad since 1914 and particula in the past three years. With all due allowa: however, the fact that the banking power of th country rose from an average of $23,360,000 for the five years 1911 to 1915 to $56,447,000, 1924 represents a large expansion in the real ume of American business. Building Construction. A higher volume of con struction activity was maintained in 1924 tha: in any other year covered by statistics. Exports and imports. Exports in 1924 were 86.2 percent greater in value than in 1913; 94.2 per cent greater than in 1914; and 112 percent greate: than the 1910-1914 average. The increase in va le cao Mis oi. Amount ana. percent, of income as available fe ail othar activ ities ge fe \ Income /n Billions of Dollars |s a 1900 AMOUNT and PERCENTf CURRENT INCOME of the UNITED STATES ALLOTTED toSCHOOL SUPPORT PERCENT AVAILABLE forALL OTHER. PURPOSES > $2336,073,018( or 3.54% Diente, Maen, Ao DM ew of FOG Dating. “1 1924 esearch Duxswn, Natural Fawoatian Assorrln” Interpretation of data The from Lett in 800 to S.ebin ioe than. school support increased. from Sources of data . National Bureau of Economic Research and U.S. Bureau of Education. Income fir 1994 estimated of current. income the same time 1,692,315,935 to %63,663, 926,982. in the United States increased of he y~ available for purposes other [244] of imports has been more marked, the 1924 figures exceeding that of 1913 by 99.1 percent, of 1914 by 90.6 percent, and the average 1910-1914 by 113.9 percent. While these increases have been in con- siderable part due to higher prices there has been , definite growth in the physical volume of trade in both directions. Electrical Energy. During 1924 the public serv- ice central stations produced 59,013,590,000 kilowatt hours of electric energy, about 5'4percent than in 1923. This is the highest output ever at- tained. Favorable interest rates resulted in many extensions and improvements. Though only a little more than 40 years old, the electric light and power industry is now one of the largest industries of the country. Security Issues. The capital flotations, includ- ing both stocks and bonds, in 1924 far exceed those of any previous year. more These statements are in agreement with the figures for total national income which show a substantial increase after proper correction has been made for depreciation in the purchas- ing power of the dollar. stated in dollars of the purchasing power of 1913 was 38 percent greater in 1924 than in 1913 and 35 percent greater in 1924 than in 1919, The nation’s income Such data as are available concerning eco- 1925 and 1926 a continuance of the rapid industrial develop- ment which foregoing facts 1924. The 1925 Yearbook of the U Department of Commerce, nomic conditions in indicate reveal for issued as this bulletin goes to press, contains this statement: Considered as an entirety, the industry and com merce of the United States during 1925 reached the history, not highest levels ever attained in our even excepting the years of abnormal war activity The school has played a major role in in- The cumulative effect of its contribution over sev- creasing the nation’s economic power. eral generations in putting large masses of the population in possession of fundamental skills, such as reading ability, which makes the ex- perience of all available to the individual, and in creating that flexibility of mind upon which improvements in methods of production is de- pendent, is probably greater than is generally realized. Estimates may vary as to just how influen tial the schools contribution has been to eco chal- A steady and substantial increase in nomic growth. But one fact cannot be lenged. CHART V Fa Purchasing Power in Billions tA 1890 Dollars 1890 1900 PURCHASING POWER” 1890 DOLLARS me PART ome NATIONS INCOME USED~ PURPOSES OTHER THAN SCHQGDL SUPPORT 1912 fesearch Dunswn 1924 f fatatal Ldumtio: Lesh Nathonal Bureau of Economic sale prices, ea Chaunerce Gearccok U.S Department The purchasing’ power of the pert | statedin | dollars: increased. from #11.892,315935 to $34.2 linac Research. | LL.S 3 Bureau of Education of Commerce p70 used of ‘7 nahonal income Index numl of whole in reducing’ current dollece t to 1890 dollars used. for purposes other than school support 20.680 or 189% between 1890 and 1924 [245] the percentage of our economic power going to school support has not been accompanied by decreases in the amount available for other purposes. The opposite is the case. Today the United States is in the strongest economic position ever occupied by a nation in the world’s history. There is abundant evi- dence to support the statements of Herbert Hoover in his recent annual report that: While wages are higher than in 1920, wholesale prices are lower. We have thus the highest real wage in our history—the standard of living of the country as a whole was the highest in our history, and therefore the highest in all history.’ It is true that our farm population has had a difficult period of post-war readjustments. However, this is not the result of inability to produce. The American farmer was never able to produce more effectively than today. The farmers’ difficulty is inability to realize a proper return for the abundant product which results from his labor. The farmer’s uneviable economic plight is not due to a shortage of the amount of nomic energy available for agricultural duction as the World’s Work recently p; out: Congress is not hounded by men who wa know how to raise larger crops, but by men want help in selling the too large crops they have already raised.’ School Costs and Increase in Capita! Has the growth of school costs prevent increases in the amount of the nation’s sav; and capital? ‘The preceding section pres evidence that the United States is rapid], creasing its economic productivity. Is nation’s growing ability to produce w! the result of more effective use of the capit at the command of industry or has there | a growth in available capital ? Chart VII shows that the value of tangible wealth in the United States increased from $65,037,091,000 in 1890 to $335,0) 1See pp. 4 and 30, Thirteenth Annual Report of the Secretary of Commerce—Fiscal Year Ended June Washington, D. C., Government Printing Office. * World’s Work, September, 1926, p. 506. CHART VI Volume of’ Factory 1914 ©1923 1919 to1924 Mess of Crop Production, 1913 tol1924 1919 w1924 Banking Power in 1915 Dollars: 1913 to 1924 1919 to 1924 National Income inDollers of 1913 Purchasing Power: 1913 to 1924 1919 t 1924 PERCENTAGE INCREASES VOLUME - PRODUCTION: UNITED STATES esearch Duxswer ANational Education Interpretation. ot data : Sources of data; 1994 Commerce Yearbook, US. Department, of Conumerce, and National Bureau of Econonuc Resear 4 ; These increases ceprecent, 2rowth in quantity or volume, not value, whuch tluctuates with the purchy ing’ powec of the dollar. “Banking: Power “is the aggregate amount of capital, surplus, induvidual profite, deposits, ar circulation of al! classes of banks in the Uruted States [246] tal ented ViIngs 000,000 in 1924. stated in dollars of the value of 1890 is $180,- 900,000,000, or an increase of 178 percent in the amount of tangible wealth in the United States between 1890 and 1924. Does this substantial increase in the nation’s wealth This latter figure when represent gains on the part of a favored few or does it also reflect the ability of the average citizen to increase his capital ? One of the best answers to this question is found in the growth in the amount deposited in the savings accounts of the nation’s people. By “savings accounts” is meant money in ac- counts of the type that the depositor may be required to give thirty days’ notice of intended withdrawal. Money deposited in commercial or checking accounts is not included. In the last decade there has been an increase in the number of savings accounts from one for every eight persons to one for every three. At present there are approximately 25,000,000 families in the United States as compared with 39,000,000 individual savings accounts. In 1912 there was $8,425,275,000 in the nation’s savings deposits. The corresponding figure for This fund constitutes one of the important bases for the creation of new capital. Its existence is clear evidence that the rank and file of the nation’s people are able to live well within their income, otherwise these accounts would not exist. Another important form of national savings is represented by investment in life insurance. In 1924 the amount of life insurance out- standing in the United States was $61,332,- 058,237. Premiums were paid for life insur- ance in the same year to the amount of $2,- 082,815,282. Figures as to savings deposits and payments on life insurance premiums indicate most peo- ple live well within their income and are able to devote substantial amounts to the building up of new capital. There is also evidence, that industry has steadily increased its capital in recent years. The following table gives the amount of cor poration surplus for the years following 1910. TABLE 2. CORPORATION SURPLUS 1910 TO 1921 1924 was $20,873,562,000. The latter figure ‘ani . o12 stated in 1912 dollars has a purchasing power et ah soos 100 of $13,776,550,920. This is an increase of 64 1913 . ' 1,000,000,000 percent in the purchasing power of the sav- 191 1,600,000,000 ings deposits of the nation’s people between 1917 400,000,000 1912 and 1924. During the same period 1919 + Benes population increased approximately 18 per- coos a a + cent. (See Chart VIII, page 248.) CHART VII INCREASE”™ NATIONS TANGIBLE WPALTH~189071924 Actual Wealth in Dollars 1912 §§186,299, 664,000 1924 9§355,000,000.000) Wealth in 1890 Dollars | Sources of data: Sstumated: National Waaltsa, 022 U.S numbers Department. of’ Commerce wholeeale prices, used. in reducing’ dollars to i890 value. from 1924 The significance of these figures is increased when one understands the definition of surplus, taken from the study in which they appear: The surplus of a corporation is that amount of its net earnings which remains after the pay- ment of all expenses, including the various classes of reserves, maintenance charges, taxes, and divi- dends.’ Evidently, the payment of taxes including those paid for schools has not prevented the nation’s corporations from saving a substantial proportion of their net income. ‘The study referred to concludes that the savings or sur- plus of corporations “are far more than stabil- izers of dividends in that they largely increase the power of the managements of corporations in guiding the growth of industries in this country.” Data comparable to those in the preceding table are not available as to the amount of cor- poration surplus for years following 1921. The figures of the United States Bureau of Internal Revenue based upon the income tax returns of all corporations in the United States in 1923, however, seem to indicate that the tendency shown in the preceding table was not peculiar to the pre-war period. The corpora- tions of the United States in 1923 earned 9.12 percent upon their capital investments after payment of all taxes—federal, state and |; The net incomes of the corporations of United States in this year, with assets of $7 422,791,000, was $6,697,156,000 after ducting taxes. Continued Business Expansion The latest reports available offer no sig of any slowing up in our economic develo; ment. The November, 1926, issue of the Fez eral Reserve Bulletin states: the physical volume of industrial p duction . . . has been higher this year than in either 1924 or 1925 and for t past two months has been at a record level.’ The December, 1926, Atlantic Month: prints an article which states: every mont The United States, with over half th: available gold supply, has a plethora of capita which is constantly on the increase. Wall Street has become the world’s banker, loaning to nations first according to their ability to repay and then according to their needs. In spite of vast amounts already given, the surplus of capital still exists In the light of the above facts it cannot lb contended that industry is finding it difficult to increase the capital at its command and t provide for substantial business growth. 1 Knaugh, Oswald W., “The Place of Corporate Surplus in the National Income,” Journal of the’ American Statis tical Association, June 1922, Volume XVIII, No. 2 Page 759. ® Page 823. 138, p. 156. CHART VIII Actual Amount in Dollars # 8.425,275.000 | | 9478 068 000 | | 14.672,1'78, O00 | 90.875, 562, 000 | INCREASE ~AMOUNT”NATIONS SAVINGS ACCOUNTS Purchasing Power in19]2 Dollars 7 506 415. 213 1S 2'76, 550.920 osearet, DAs oe, ational Education as work data. S and. Qeasdars IHL through 24, led by American Bankes Assooabor. ay A used in feduaing ourcert dollars to iia dol ‘ Boo Bambee Ceardook., U $” Department Commerce — | [248] School Costs and Economy In Public Expenditures Causes of the Growth in School Costs School expenditures require but a minor fraction of the nation’s income. interests, probably of less importance to the general welfare than education, are being al- lotted much larger portions of the total income Other majo1 than goes for school maintenance. Increases in school costs have been accompanied by sub- stantial growth in the productivity and in the amount of its work- ing capital. These facts offer no support for the claim that school costs are greater than the economic resources of the nation can bear. These facts, however, do not offer a com- plete justification of present school expendi- tures. No service that the country supports, no matter how important to the general wel- fare it may be, has a right to claim a larger share of the nation’s income than is necessary for its effective operation. be squarely faced as it relates to school costs. is the percentage of the nation’s economic power allotted for the support of the schools greater than is necessary for their effective op- eration? When one contemplates the un- usually rapid increases in the number of dollars spent for education in the last decade the inclination is to answer this question in the affirmative. Some would conclude after considering the figures of Chart X, on p. 253, that education is being extravagantly financed. An increase in ten years of 228 percent in the number of dollars expended for education seems large. But let us analyze the causes of this increase. The principal factors contributing to the rapid growth of school costs since 1914 are: 1. The rapid increase in school attendance, particularly in the upper and more expensive grades 2. The depreciation in power of the dollar 3. The increase in the amount, the kinds, and the quality of service demanded by society. It is possible to measure the influence of these three factors in bringing about the nation’s economic This issue should the purchasing 1 Figures from U. S. Bureau of Education. 2 Swift, Fletcher Harper. Biennial Survey of Public School Finance in the United States i. Se (Bulletin 7 U. S. Bureau of Education, 1923, p. 5. growth in school costs. Consider the increase in the cost of public elementary and secondary schools, which constitute approximately 80 percent of the expenditures for all schools. Public elementary and secondary school ex penditures mounted from $555,077,146 in 1914 to $1,820,743,936 in 1924, or an in- $1,265,666,790.1. How this increase is chargeable to each of much of the crease of factors enumerated above ? Cost of 1914 schooling Increased Attendance. Between 1924 the total number of prov ided in from and days’ public elementary .2,112,197,000 to 2,768,420,000, while the days’ schooling pro- schools increased vided in public high schools increased from 143,460,000 to 450,673,000. ‘The growth in attendance was approximately eight times as rapid in high as in elementary schools. This fact has an important effect on the burden placed upon the schools by increasing attendance. Every additional day’s attend- ance in high schools costs approximately two and one-half times as much as an additional day’s attendance in elementary Therefore, in arriving at a true indication of schools.? the financial burden placed upon the schools by attendance, a day’s schooling provided in high school should count two and one-half times as much as one in elementary school. When this principle is accepted, and the calculations are made, one obtains the num- ber of weighted days’ attendance in the public schools over a series of years. ‘The figures as to weighted days’ attendance are the same as days’ attendance, as ordinarily understood, ex- cept that a day’s schooling provided in high school is given two and one-half times as much weight as one provided in elementary school. Table 5 the weighted days’ attendance increased 2,470,847,000 to 3,895,103,000 1914 and 1924. This is a 58 percent increase. Growth in attendance, therefore, justified an increase in school costs in this decade of 58 percent. Fifty-eight percent of $555,077,146, According to number of from between 1920-22 Washingtoa 1923. No. 47.) [249] the cost of schools in 1914, is $321,944,745. This is the part of the increase in school costs, between 1914 and 1924, chargeable to grow- ing attendance. If this amount is added to the cost of education in 1914, the resulting sum is $877,021,891. Effect of Loss in Purchasing Power of Dollar. Between 1914 and 1924 the dollar depreciated in purchasing power until it would buy only as much as 61 cents purchased in 1914. In 1924 it required $164 to buy as much as $100 bought in 1914. Therefore, in in the decade following 1914, an increase of 64 percent in the number of dollars expended for schools was justified because of the de- preciation of the dollar in purchasing power. This is in addition to the increase justified by growing attendance. Sixty-four percent of $877,021,891, the figure given at the end of the last paragraph, is $561,294,010. This is the increase in school costs justified by the depreciation of the dollar between 1914 and 1924. Cost of Increase in Amount and Quality of Service. Between 1914 and 1924 increased attendance added $321,944,745, and the de- preciation of the dollar added $561,294,010 to school costs. These sums plus the cost of public education in 1914 give a total of $1,438,315,901. The difference between this amount and $1,820,743,936, actually spent in 1924 for public elementary and secondary schools, or $382,428,035, is chargeable to such factors, as the increase in the character and quality of service demanded from the schools. See Chart IX and Table 3. It is evident that much of the increase of 228 percent in school costs between 1914 and 1924 is apparent rather than real. School 1 Norton, John K. tional Research, January, 1926. costs increased 228 percent only when me, ured by the discredited dollars-spent meth by which dollars which fluctuate in value 4 assumed to be stable in value. There js better method of measuring changes in sc| costs. By this method, school expenditures succeeding years are compared as to thy purchasing power per unit of service r, dered. By this method the size of the which a school system has to perform an the purchasing power of the dollars expended are accurately measured and kept on a com parable basis. It would obviously be ridiculous to compar: the expenditures of a school system having 2000 children with one having 4000 children without considering the difference in attend ance. A similar thing is done in comparing 1924 school costs with those of 1914 without considering the difference in attendance. It is illogical to compare expenditures stated in dollars with a purchasing power of 100 cents with expenditures stated in dollars with a pur chasing power of 61 cents. This is done when 1914 and 1924 school costs are compared without taking into account the depreciation in value of the dollar during this decade. Errors such as these are avoided when one compares school expenditures in different years according to their purchasing power per unit of service rendered. This method is used in the calculations of Table 4. ‘The last figure of column 9 of this table shows that between 1914 and 1924 school expenditures increased 27 percent in purchasing power per unit of service rendered. School boards had 27 per- cent more ability to buy services and materials necessary for the education of each school child in attendance in 1924 than in 1914. “Standard of Living and Standard of Education—Have They Kept Pace?” Journal of Educa TABLE 3—ANALYSIS OF FACTORS CAUSING INCREASE IN PUBLIC SCHOOL COSTS, 1914 TO 1924 Cost of public education—ele- =~ Amount of increase chargeable to Increased Other 2 $ 555,077,146 1,820, 743,936 $1, 265 ,666, 790 $382 428,035 $321,944, 745 $561 , 294,010 For interpretation for this table see notes at bottom of Chart IX, p. 257. This increase of 27 percent is very different from the 228 percent increase indicated in Chart X. A comparison of the decade increases in school costs calculated by both methods is given in Charts X and XI. In the first chart percentage increases in school costs are measured by the familiar but comparatively meaningless dollars-spent method. In _ the other chart the percentage increases in school costs are measured by their purchasing power per unit of service rendered. In Chart XII the trend of school costs from 1914 to 1924 is traced. ‘The upper line in this chart shows the trend of these costs by the dollars-spent method, the lower line in- dicates the trend according to their purchasing power per unit of service rendered. It will come as a surprise to many that an increase in school expenditures from half a billion dollars in 1914 to nearly two billion dollars in 1924, a 228 percent increase in the number of dollars spent, has meant an increase of but 27 percent in the economic ability of school boards to provide school facilities for the children in attendance. The apparent large increases indicated by gross school ex- N N N S 2 Expended, for Public Schools in 1914 power of’ dollar CHART IX ANALYSIS of FACTORS CAUSING INCREASE IN PUBLIC SCHOOL COSTS 1914 1924 ELLOS RAR DY Sy Q = ANNA ANNAN ARABS ENE cs Lncrease over 1914 chacgeable to increased, efficiency penditures are largely accounted for by the rapid increase in school attendance, and by the depreciating power of the dollar to command human services and material goods. Ability to Buy Versus Dollars Spent School efficiency is largely dependent upon the ability of school boards to purchase the things necessary to school maintenance. The num ber of children to be educated and the pur chasing power of the tax money appropriated should both be considered in comparing the School boards have no power to reduce school attend ance. When children report at a school door in America, state law requires their admit tance. School boards have no power to re- store to the 1924 dollar its prewar purchasing power. ‘They must go into the open market and bid against other well-financed interests sums expended by school officials. in purchasing the essentials for school main tenance. An intelligent comparison of the school ex penditures of today with those of preceding periods must, therefore, be based upon a meas urement of the economic power of these ex- penditures to purchase in the open market those things essential to school maintenance. § Increase over 1914 changeable to increased attendance Lnocease over 1914 charaeable to depreciation in purcchasingg | Rascacch Diuusiwor National. &tucattot Ass/: in 1914 ($555,077,146) is $321,944,745. $164 purchased the same amount as $100 in 1914 chargeable to increased efficiency. 1. Increased attendance—$321,944,745. Attendance increased 58 percent during this decade 2. Depreciation of the dollar—$561,294,010. Growing attendance justified an increase of $877,021,891, ($555,077,146 plus $321,944,745) Increasing $877,021,891 by 64 per cent gives $561,294,010. 3. Increased efficiency—$382,428,035. Increased attendance and depreciation of the dollar added $883,238,755, making a total of $1,438,315,901 The difference between this and $1,820,743,936, actually spent in 1924 for public elementary and high schoo! education, or $382,428,035, is Read chart as follows: The increase in the cost of public elementary and high schools between 1914 and 1924 is chargeable to these factors An increase of 58 percent over the cost of education In 1924 Based on figures of U. S. Bureau of Education and the National Industrial Conference Board [251] When such a measurement is made we see that the economic ability of school boards to maintain school facilities of a given quality was 27 percent higher in 1924 than in 1914. Increasing Support for Schools a Consist- ent Policy. Chart XI indicates each decade since 1880 has shown an increase in the economic power of school boards to provide children with good school facilities. The money at the command of school boards had 51 percent more purchasing power per child to be educated in 1890 than in 1880. The percentage increases during the four subse- quent decades are seven, eighteen, twenty-four, and twenty-seven. The 27 percent increase, between 1914 and 1924, in the ability of school boards to provide for school maintenance is the continuance of a consistent policy on the part of the American people. Each succeeding decade has brought an increase in the facilities with which to edu- cate each American child. This tendency will probably continue so long as the burdens placed upon the school continue to increase. At one time in our his- tory, the schools enrolled selected children who learned readily. Now the schools enro! dren of varying mental and physical eqy ment. Democracy demands that the pars; ular kind of training be given each which will best develop his talents. Th quires the organization of the relative! pensive classes for the mentally and phys handicapped, and other special groups, t! velopment of differentiated courses of s: and the training of special teachers. At one time in our history the school’s y was done when a few of the brighter childre; were placed in possession of a few sim skills, principally the three Rs. Now the mand is made that all children shall come into effective use of these tools. In addition the school is expected to fit the child effective citizenship, to inculcate the habits of thought and conduct that constitute good cha: acter, and to lay the foundations for success in the vocations. The realization of these objectives calls better equipped schools than those of the past. Untrained, transient teachers, and equipment will not suffice. ‘Teaching must enlist people of first rate ability and training I meagre TABLE 4—ANALYSIS OF INCREASES OR DECREASES IN PUBLIC SCHOOL Ex. PENDITURES PER UNIT OF SERVICE RENDERED 1914 TO 1924 es for “ary and high vided Weighted aggre- te days public schools Expenditures for public elementary high schools Percent in- crease or de- crease follow ing 1914 in purchasing power per unit of service rendered Percent increase following 1914 in amount expended 2 3 4 1914 1916 1918 1920 1922 1924 $555,077 ,000 640,717,000 763,678,000 1,036,151,000 1, 580,671,000 1,820, 744,000 2,255,657 ,000 2,461,407 ,000 2,498, 424,000 2,615,161 ,000 3,034, 907 ,000 3, 219,093,000 2,470,847 ,000 2,725, 393,000 2,794,112,000 3,014, 888,000 3,597,579,000 3, 895,103,000 22.4 23.5 27.3 34.4 44.0 46.7 100 92 63 51 64 61 22.4 21.6 17.2 17.5 28.2 28.5 228 4 decrease 23 decrease 22 decrease 26 increase 27 increase Read table as follows: The aggregate days The weighted umn 3, except as the days of schooling pro was high school attendance, is elementary and column 5 eration t cents (column 7). the purchasing power Calculations base pm In 1916 $640,717,000 was = ys’ schooling provided in this year in te days schooling provided was t the number of days Shodlies provided i in high in elementary schools. estimated on the basis of the enrolment schools are not available. ithe dollar in 1916 purchased unit of service decreased 4 on figures of U. S. Bureau of blic elemen: 725, 393,000 cokemn 4). 15 percent. Similarly read data for other cation and the National Industrial Conference nded for me elementary and high schools (column 2) nd high schools was 2,461,407,000 (column 3 This figure is the same as that in col ools is given two and one half times as much value The percent of aggregate days attended by all pupils, which figures, since attendance There was 23.5 cents expended in 1916 for each weighted day's attend- the same as 92 cents purchased i in 1914. en this factor is taken int power of expenditures per weighted day's attendance is 92 percent of 23.5 cents or 21.6 "em 1914 to 1916 school Cw 9 ee stated in dollars in greene (column 9). Over this oe period figures segregated for wry CHARTS X AND XI —_—_— PERCENTAGE INCREASE » DECADES » NUMBER °r DOLLARS EXPENDED =PUBLIC ELEMENTARY & HIGH SCHOOLS 1900 to LOLO 1905 to LOLS 1914 to 1924 past, eagre Read: chact: as tollows: Between the vears of 1&80O and must elementary and: fugh schools increased G0 percent. Sumilarly c ining decades. ; i Calculationé based: on data of ULS. Bu EX- — _ PERCENTAGE INCREASE sx DECADES IN PURCHASING | POWER OF SCHOOL EXPENDITURES PER CHILD ATTENDING | 1880 to L890 L890 to L900 1900 to LOLO L905 to LOLS LOLA to L9QA Aascarch Duveioh National tucation Assh ——<§€§* Read chart as follows: Between the years of 1880 and 1890 ‘the pur chasings power of school expenditures per child attending increased, 51% Similarly read data for other decades. Calowlation based om flguces of WS. Bureau of’ Education, WS. Depart - ment of Labor and. National Industrial Conference Board. —— [253] who look upon their work as something more than a transient calling. If the school is to offer a chance to practice life under condi- tions that are ideal for acquiring habits and attitudes that make for individual and social efficiency, the school plant must provide all the equipment demanded by civilized life on a high level. All of these things cost money. So long as the public continues to demand increases in the amount and quality of service rendered by the schools, it must be willing to pay the cost. An increase of 27 percent in school expenditures between 1914 and 1924 for the purpose of increasing school efficiency is none too much when one considers the higher and higher type of product the public and develop- ing civilization demand that the school shall turn out. It is none too much when the revelations of the war as to the e) low level of efficiency upon schools were operating. One man four in the draft was unable to read Eno with reasonable facility. On top of ¢! came the figures of the 1920 census en ing millions of native-born American citi, who had had “no schooling what Nearly a million and a half children seven and under fourteen years of age counted who had not attended schoo! during the school year in which the census y taken. Standards for physical examinat the army draft were lowered, yet one ma: six was rejected as unfit for any type of m tary service. Illiteracy, non-attendance ical deficiency—these are not the product adequately financed schools. one whic! CHART XII L914 1916 1918 TREND & PUBLIC SCHOOL COSTS inthe UNITED STATES ' L920 250 5 } n ° Percent -50 1924 sen Percentage increase, following’ LI of raumber of dollars expended for public elementary and. high schools. “=== Percentage increase or decrease , following 1914 of purchasing power of expendi t pec Unite service cenderced for —— hools 152 cin rt ing power of School ex Read chact as on er: thenumber of dollacs. ee | L9i4 ater than in ete. ae —— pec Unit > perv’ ice neacered, was 4% less in Bue tha then 2 in fol, 23% less in abet teats than, fe. A Sy “5 [254] figures of U.S. Bureau & Education and of the Natonal esate | eascealch Division National Educataa Asst | ish tint cou und cati Cit1Zens hatever. ren over age Were ol a da NSUS Wa hation jy > Man ot mil; ce, phys duc ts & ws Sb aly A proper consideration of the facts justifies the conclusion that the increases in school costs of the last decade have been none too large. Present fully justified under a policy of economy and eficienccy in public expenditures. school expenditures can be Economy in Federal Expenditures and School Costs Since the war there has been a rapid reduc- tion in the expenditures of the federal gov- Some have demanded similar de- It has been ernment. creases in school expenditures. contended that since the President’s economy campaign has resulted in reductions in fed- eral expenditures, school expenditures should be reduced. This attitude assumes that the only way to exercise economy is to reduce expenditures. This assumption is shortsighted. rather than decreases in some instances are the This was pointed out Increases wisest sort of economy. by President Coolidge in a recent address to the Business Organization of the Federal Gov- ernment when he said: . . the greatest emphasis should be placed on constructive economy. Merely to reduce the expenses of the Government might not in itself be beneficial. Such action might be only the dis- continuance of a wholly necessary activity. No civilized community would close its schools, abol- ish its courts, disband its police force, or discon- tinue its fire department. Such action could not be counted as gain, but as irreparable loss. The underlying spirit of economy is to secure better edu- cation, wider administration of justice, more pub- lic order, and greater security of conflagration, all through a superior organization which will de crease the unit of cost. ‘The spirit of this statement offers little sup port for the penny-wise and pound-foolish atti tude of those who have insisted that absolute reductions in total school expenditures and economy are synonymous. Such reductions in many communities would result in serious! crippling the schools—wastefulness of the worst order. Comparison of Effect of War on National and School Expenditures a reduction in federal ex It is natural to ask why school expenditures cannot be similarly There has been penditures since the war. reduced. ‘The answer is that during the war period the expenditures of the national govern ment were necessarily far in excess of ordi nary peace time demands. ‘The opposite was true of school costs. Federal* expenditures have been reduced principally by eliminating war activities. “The schools have had no wat costs to eliminate. The total expenditures of the federal gov- ernment chargeable against ordinary jumped from $735,081,431 in 1914 to $18,- 952,141,180 in 1919.1 This was a 2478 per- cent increase in four years. receipts Such an increase was unprecedented, but necessary if the war was to be successfully prosecuted. As soon as the war was over federal ex penditures were rapidly reduced from $18,- 952,141,180 in 1919 to $3,404,295,067 in 1924. 1 Figures from Receipts and Expenditures of the United States Governmer »y Fiscal Years from 1791 to Division of Bookkeeping and Warrants, U. S. Treasury Department normal EDERAL EXPENDITURES for expenses. tures ought to increase. the community. but wisdom, is the true test. functions of On the contrary, they have grown in the last five years. has come about through the cleaning up of war-time finances and extraordinary war-time Only a scandalous disregard of ordinary financial prudence could have prevented an inevitable reduction in Federal taxes upon the resumption of peace. The states, on the other hand, had relatively few unusual expenses as a result of war. tically none, beyond local aid to disabled veterans. with the passing years, as population increases and life grows more complex. Not all additions to local expenses are wise, but by and large they reflect the growth of prosperity and an intelligent widening of local interest in the welfare of They spell better roads, better schools, better hospitals, better care of children and of the public health, more parks, more libraries, more museums of art. Not size of expenditures, then—not even, necessarily the relative tax rate year by year World’s Work, December, 1926, p. 119. government have not declined The reduction in Federal taxes Most of them had pra But state expenditures naturally grow State expendi [255] The effect of the war on school costs was very different. During the war period school expenditures were considerably less than they would have been had peace prevailed. In 1918 and the years following, thousands of children attended school on half-time, the number of children per teacher was increased beyond the desirable maximum, and school building programs were reduced to the lowest possible minimum. Expenditures were reduced until school efficiency was seriously threatened.t Hun- dreds of schools actually closed their doors because no teachers were obtainable. In the case of the federal government it has been constructive economy to reduce expendi- tures rapidly by eliminating war activities. In the case of the schools it has been construc- tive economy to increase costs so pre-war standards of efficiency could be restored. Table 5 giyes data as to total ordinary ex- penditures of the federal government in 1914 and 1924. The sums given do not include payments on the public debt. School costs were 3.28 times as great in 1924 as in 1914. The ordinary expenditures of the federal government were 4.63 times as great in 1924 as in 1914. This as well as the additional fact that school population increased considerably more rapidly than general popula- tion between 1914 and 1924, indicates that, if economy has marked the control of federal ex- penditures since the war, it has also been a characteristic of school expenditures. 1 Norton, John K. tional Research, January, 1926, p. 28. “Standard of Living and Standard of Education—Have They Kept The decrease in federal expenditu; which the elimination of war activit been principally responsible, supplies of economic energy which may be used for school support and othe: ductive enterprises. In 1919 the federal » ernment expended nearly nineteen | dollars largely for war purpose. ‘Thes: penditures were paid for by the same p: who support the schools in state and communities. It should not be difficult { people capable of spending such a tremend sum for war to provide two billion dollars fo; education. releases Putting First Values First School costs are not greater than the « nomic power of the nation will Recent increases in school costs are not out of harmony with a policy of constructive econom in public expenditures. The existence of these facts may simplif; but they do not solve the problem of securing adequate school revenue. Human desires are never fully satisfied. ‘The more we have the more we want. We cannot have everything we want and still have plenty left for the schools. justify If we provide for everything else be fore we think of the children, there will be nothing left for education. If the sums essen- tial for the effective operation of the schools are to be provided, choices must be made. The mere existence of tremendous stores of economic energy is no guarantee that the Pace?’’ Journal of | TABLE 5—INCREASE IN ORDINARY EXPENDITURES OF FEDERAL GOVERN. MENT AND SCHOOL COSTS, 1914 TO 1924 Item | 1 iT ———————__,__ _ ~ Percentage 1924 ; increase 1914 i Expenditures of Federal Government..................+. $735 081,431 $3 , 404, 295 ,067 363 | Public Elementary and High School Expenditures ....... 228 | 2 3 4 $555 ,077, 146 $1,820, 743,936 Years from 1791 to 1925. Figures for expenditures of Federal Government are total expenditures of Federal Government chargeable against ordinary receipts as given in Receipts and Expenditures of the United States Government by Fiscal Division of Bookkeeping and Warrants, U. S. Treasury Department, These figures are exclusive of expenditures to retire the public debt. Figures for expenditures for education are from U. S. Bureau of Education and include costs for current expense and capital outlay, but exclude payments for debt service. ee Form 778. [256] he €CO- justify, Out ot onomy chools will be adequately supported. If we vant more education, we must be content vith something less in the way of luxuries and necessities than we would consume if there were no economic limitations. Few will challenge these truths as long as chevy are kept on a theoretical basis. Protests are heard, however, as soon as the practical applications begin. The purveyors of luxuries, he manufacturers of automobiles, the build- ng contractors and other commercial interests want to increase the size of their profits as rapidly as possible. ‘The fact that we may al- ready be consuming as many luxuries and automobiles as we need is a minor considera- tion. “Another record year in building con- struction” is the slogan whether we need a record year of building or not. Here is the basis of the opposition to the development of a modern program of taxation, which is essential to adequate school support. The fact that a tax on the net profits of busi- More and more of our enlightened business concerns are looking upon taxes paid for school support as a contribution to a deprecia tion fund which it is disastrous to neglect Without the high level of intelligence which results from the work of the school, our pres ent industrial organization would be impos sible, both from the point of view of produ tion and of consumption. LIlliterates are poor producers as well as poor buyers. The amount spent for education is really a minor issue. It is important only as it affects a major issue—the efficiency of the schools whose product is education. If schools are so organized that their products are sound, we need not worry about their cost. Every dollar spent will return many fold in increased economic productivity and in other more im portant values. Scientific discovery, machine production, and growth in general level of educational attain ment should result in constant decreases in the nplify, ness concerns is generally recommended by curing taxation authorities as an essential feature of percentage of our economic energy devoted to es are a modern taxation system is given scant con- the production of material goods. Education ve the ything r the se be- ill be essen- hools nade. es of the sideration. It might reduce immediate busi- ness profits. Hence it is opposed. It is perfectly natural that the individual owners of business concerns should be anxious to increase their dividends and surpluses as rapidly as possible. ‘This is merely another way of saying that the more wealth a person has the more he wants. This natural human de- sire, however, is insufficient basis for claiming the general economic welfare of the nation de- mands a reduction in school costs that private industry may have more surplus at its disposal. The interference with immediate business profits involved in setting aside the deprecia- tion fund which we call school costs is very small. No one can doubt this after studying the data on page 241. in all its ramifications should become our chief industry—the one which contributes most to the production of human happiness. We should rejoice at every decrease in the per- centage of the nation’s energy required by the field and shop and take satisfaction from the resulting increases in the amount of energy available for education. Now that the people of the United States have mastered the art of production, is it not time they began to acquire the art of consump- tion? Should we best part of our energy to the production continue to devote the of the material goods of life when we are already producing more than we can worthily consume ? iy THE LIGHT of the facts regarding the elasticity of human wants and capacity for consumption, there can be no denial of the reality of the limitations upon expenditures The community simply cannot produce all it would like to consume and it cannot continue, over an extended period, to consume more than It may desire an educational product which involves larger expenditures, but it imposed by the relative scarcity of resources. it produces. also desires more automobiles, more motor roads, better houses and clothing, and many other things. A selection is necessary—a selection based upon the value which the community at taches to each of these various products.—Strayer and Haig, The Financing of Education in the State of New York, page 146. Conclusions Drawn From Facts Presented This bulletin has presented figures as to the ability of the United States as a whole to sup- port its schools. Facts were presented from which these conclusions may be drawn: 1. A minor fraction of the economic power of the United States is devoted to school sup- port. 2. A number of important national interests are allotted portions of the nation’s economic power considerably larger than that used for school support. 3. There has been a tendency extending over a long period of years to increase the per- centage of the nation’s economic power allotted for school support. 4. The tendency of the nation to increase the percentage of its economic power allotted for school support has been accompanied by substantial increases in economic productivity and in the total amount of capital. 5. There is no basis for the contention that increasing school expenditures have prevented rapid economic expansion in the United States. The volume of production and the amount of capital available have both substantially in- creased during the last decade. 6. Most of the increases in school costs in the last decade were due to the rapid growth in school attendance and to the loss in pur- chasing power of the dollar. 7. The increase during the last decade in the purchasing power of school expenditures per child to be educated was not unusual. Comparable or larger increases have occurred during every decade for which records are available. 8. Present expenditures for education are no larger than is necessary for the effective operation of the schools. Present school costs are not out of harmony with a policy of econ- omy and efficiency in public expendiutres. p. 83. Treasury Department, November, 1926. ITH EVERY ADVANCE in the state of “civilization,” collective activities rise with it, as one is in large measure a reflection of the other. spent on education in its broadest sense, on good roads, recreation, improved methods of public protection and sanitation, ete., are in themselves the criteria of relative progress and welfare. . . . —National Industrial Conference Board, Cost of Government in the United States, 1926, AT EVERY great war abnormal expenditures can be reduced, but at the same time there is an opposing tendency of normal expenditures to increase due to the growth of the country and the increase in governmental activities—Excerpt from statement of Secretary Mellon, U. 8. Increasing amounts [258] Research Bulletin OF THE National Education Association Title Page for VOLUME IV January to November, 1926 (For index see page 261) The Research Bulletin is issued by the Research Division, a part of the headquarters staff of the National Education Association. This division was organized in February, 1922, for the purpose of conducting scientific studies of special interest to members of the teaching profession. Bulletin One was issued by the Research Division in June, 1922, and Bulletin Two in November, 1922. ‘The first issue of the Research Bulletin is Volume I, No. 1, January, 1923, entitled Facts on State Edu cational Needs. With Volume I, No. 1, the Research Bulletin became a regular publication, issued five times each year——-January, March, May, September and November. The Research Bulletins composing Volumes I, II, III, and IV are listed on page 260. RESEARCH DIVISION THE NATIONAL EDUCATION ASSOCIATION OF THE UNITED STATES 1201 Sixteenth Street Northwest, Washington, D. C. 1926 [259] Research Bulletins Previously Issued Facts on the Cost of Public Education and What They Mean. Bulletin 1, June, 1922. 68 pp. (Out of print.) Facts for American Education Week. Bulletin 2, November, 1922. 40 pp. Price per copy, 25 cents. Facts on State Educational Needs. Vol. 1, No. 1, January, 1923. 64 pp. (Out of print.) Can the Nation Afford to Educate Its Children? Vol. 1, No. 2, March, 1923. 72 pp. Price per copy, 25 cents. Teachers’ Salaries and Salary Trends in 1923. Vol. 1, No. 3, May, 1923. 116 pp. Price per single copy, $1.00. Five Questions for American Education Week. Vol. I, No. 4, September, 1923. 56 pp. (Out of print.) Facts on the Public School Curriculum. Vol. I, No. 5, November, 1923. 48 pp. (Out of print.) Current Facts on City School Costs. Vol. Il, Nos. 1 and 2, January and March, 1924. 64 pp. (Out of print.) Teachers’ Retirement Allowances. Vol. 11, No. 3, May, 1924. 32 pp. Price per copy, 25 cents. Facts on the Public School for American Education Week. Vol. Il, No. 4, September, 1924. 40 pp. (Out of print.) The Problem of Teacher Tenure. Vol. Il, No. 5, November, 1924. 40 pp. Price per copy, 25 cents. Public School Salaries in 1924-1925. Vol. Ul, Nos. 1 and 2, January and March, 1925. 72 pp.. Price per copy, 50 cents. Taking Stock of the Schools. Vol. Il, No. 3, May, 1925. 32 pp. (Out of print.) Keeping Pace With the Advancing Curriculum. Vol. Ill, Nos. 4 and 5, September and November, 1925. 96 pp. Price per copy, 50 cents. The Ability of the States to Support Education. Vol. TV, Nos. 1 and 2, January and March, 1926. 96 pp. Price per copy, 50 cents. Efficient Teaching and Retirement Legislation. Vol. TV, No. 3, May, 1926. 72 pp. Price per copy, 25 cents. A Handbook of Major Educational Issues. Vol. IV, No. 4, September, 1926. 72 pp. Price per copy, 25 cents. Major Issues in School Finance—Part I. Vol. IV, No. 5, November, 1926. 32 pp. Price per copy, 25 cents. [260] ae Ability to support education: and Clark’s formula, 60, 62, and density of population, 67 effort, 48, 49, 50, 51, 52 anc and school costs, 239 and school efficiency, 45, 46 and support given education, cost of living, 68, 69 definition of, 29, 61, 70 INDEX TO VOLUME IV 4 ricu \ 64, 65 bibliog 8 7 characterist ar 1 content of ft ne , 54 contributions of research to, 197 limitat f by legal enactment, 1 teachers’ part in construction of, 198 39, 40, 41, 42, 44, 71 Density of population see P pulation effect of percent of children in population, 41 Department of Education and hearings on, 1 factors affecting, 61, 66, 69 inequalities in, 35, 209, 210 Dollar: depreciation in purchasing power of $4 in 1880 and 1922, 58, 59 253 in 1900 and 1922, 57 measures of, 29 Economic ability to support education: see Ability to s of states, 29, 30, 36, 37, 64, 65, 67 port icat of the nation, 239 - permanency of differences in, 55, 60, 70, 71 Economic power rank of states in, 29, 30 und effort to support education, 48, 54 also see School support as indicated by index of economic resource competition for share of, 61 Administration: factors influencing use of, 3 organization for, of a modern school system, 192, 193 income n index of, 3, 5, 11, 12 state vs. local, of teachers’ retirement systems, 14¢ increase in, 243 of states pared, 3, 20 Agricultural depression: 240 proportior f devoted to education, 239 { +1 Agricultural products: real estate as a measure of, 4 ; ' s ‘ ‘ wealth an ncome as measures of, 1 l increase in volume of, 246 wealth as an index of, 3, 4, 6, 12 value of 240, 241, 243 also see Income, Wealth, Index of econor § es Attendance: Economic resources: see Economic power bibliography, 208 compulsory: see Compulsory increase in, 171, 201, 256 attendance Economy in expenditures: see Sch increase in and school costs, 250 Education: non-attendance, figures of Federal census 1920, 209, as civilization’s life insurance, 169 rin 254 cost of see School costs ¥ ; quotations advocating restriction, 170 Automobiles: expenditures for, 240, 241 productivity of, 17 Banking power of United States: sibliogranhy: 77, 157-60, 190, 191, 221, 224-6 Boards of education: bibliography, 22 business managers of, 219 election at large ws. ward election, 219 elective ws. appointive, 218 independence of. 219, 220 personnel of, 221 Building construction: (also see 241, 244 responsibility of state for, 209 itutional provisions for, 209 Rank f States, Schools, et 1924, 244 state or also see 194, 198, 201, 208. 217, Educational attainment: and ability to support schools, 4 higher in rich states, 48 in the United States, 242 of states, 47 and ability to support schools, 45 and retirement systems, 115, 117 School buildings), 240, indicatior f, 45, 46 of states, 4¢ superiorit nm. of rich states. 45 Carregie Foundation, twentieth report quoted: 117, 146 Certification, principles of: 189 Children: effect of percent of, in population, on ability to sup- port education, 41 number of, aged 6 to 13, 24 number of, by states, 24, 64 also see Population Compulsory attendance: laws effecting employed children laws effecting employment of also see Attendance Congressional hearings on: education, 1, 82 Coolidge, President: quoted, 169 and Corporations: amount and definition of surplus net income of, 248 Costs: see School costs, School support, Retirement costs, Government expenditures Current income: see Income Fducational obligation ize groups as meastires of, 23 4 effect on school costs of, 23, 2¢ of states, 23, 24, 25, 26 population as a measure of, 2 4 Effort to support schools: and al ty, 48, 49, 50, 54 nd private and parochial schools, ] definit f, 48 204-205 in rich and poor states, 48, 49, 52, 54 children, 204 also see Ability to support educatior Enrolment increase n, 171, 201 percentage of in average ly atte ur f 955 ‘ . « Expe litures ce School costs Exports and imy ts, increase in value of +4 »f, 247, 248 Federal: see A Federal aid for education: 1, 71 [261] Government expenditures, 240, 241, 255, 256 Illiteracy figures of 1920 census on, 209, 254 Income: accuracy of estimates of, 5, 7, 17 and wealth, 12, 14, 15 as measure of economic power, 5, 10 average, 8, 10, 14, 239 current, 5, 7, 8, 11, 13, 239, 242, 244 cyclic factors influencing, 7, 10 earned, 12 from investments, 13 in agricultural and industrial states, 17 meaning of, method of estimating by states, 7 national, proportion of paid for insurance, 118 of states, 11, 19, 74 percent of to education, 49, 53 per child, 29, 30, 33, 36 ratio of current to total, 7, 8, 9 ratio of to school costs, 240, 241, 244 ratio of wealth to, 13, 14, 15, 16, 17, 18 total, 5, 7, 8, 12 also see Wealth, Economic power Income and outgo of representative teacher retirement funds: 144, 145 Index of: cost of living, 69 wholesale prices, 242 Index of economic power: formula for, 17 of states, 19 percent to education, 49, 53 per child, by states, 34, 36 also see Economic power Inequalities in: ability to support education, 209, 210 state aid, 211 Insurance: in force, 1924, 118, 247 premiums in 1924, 118, 247 proportion of national income paid for, 118 Jenyns, Samuel, quoted, 170 King, Willford: quoted, 169 Luxury expenditures, 241 Mandeville, Bernard: quoted, 169 Manufactured products: increase in volume of, 246 value of, 240, 241, 243 National Bureau of Economic Research, 5, 12 accuracy of income estimates of, 5, 7 economic position, 60 quoted on permanency of states’ economic position, 60 National Council of Teachers Retirement Systems: report of February, 1926, on reciprocal relations, 149- National Education Association: plan of for the “entire profession at work on its problems,” 231-2 National government: and public education, 1, 71 and school support, 1, 71 property of, 4, 5, 72 National Tax Association: model plan of state and local taxation, 4, 17 New York City Retirement Fund, 153 Ordinance of 1789, 1 Organization: administrative, of modern school system, 192, 193 INDEX TO VOLUME IV (Continued) Parents: suggestions for, from a city superintendent, 224 Parents and Teachers, Congress of: growth in membership in, 1912-26, 223, 225 Parochial schools: effect of on measurement of effort to support schools $1, 52 estimated cost, 51 Pensions: see Retirement Physical deficiency of drafted men, 254 Population: and ability to support education, 61 as measure of educational load, 23, 24, 26 by states, 64 density of, and ability to support schools, 28, 66, 63 effect of varying percentages of children in, 26, 27 increase in, 247, 252 ratio of adults to children in, 64 also see Educational obligations Private schools: effect on measurement of effort, 51, 52 estimated cost of, Production: increase in volume, 246 Property: increase in value of tangible, 246, 247 total tangible and school, 240 valuation per pupil of real, 210 value of tangible in United States, 239 also see School property Rank of states according to: ability to support education, 36 deviation in rank, economic resources (average annual current income plus 1/10 of wealth), 20 expenditures per child of school age, 1922, 1918 and 1919, 40, 42, 43 expenditure (non-salary) per pupil in average daily attendance, 1922, 1918, 1919, 40, 42, 43 high school attendance, percentage of total in 1922, 46 income, current, 11 income, current per child, 30, 33 income (average current 1919-21), plus 1/3, and 1/20 of wealth, 19 income, ratio of current to total, 9 income, ratio of total to wealth, 16, 18 income, total per child, 30 length of school term in 1922, 46 magazine circulation, 47 percentage of population, age 6-13, 25 salaries, average annual paid teachers in 1922, 1918 and 1919, 40, 42, 43 school attendance, average number of days per pupil enroled in 1922, 46 school property, average value per pupil enroled in 1922, 40 teachers, percentage of who are normal graduates, 46 wealth (tangible estimated) in 1922, 6 wealth per child in 1922, 30, 31, 37, 38 years of school life per pupil, average number of, 46 1/5, 1/10 Retirement (pensions): administration of: according to Vermont law, 151, 152 State vs. local, 146 advantages of sound system of, 114, 115, 116, 117, 118 allowances: in case of death, 104, 105, 154 in case of disabilty, 102 and length of service, 114, 147, 148 and poverty in old age, 114, 119, 120 and school costs, 116 annuities: amount of, 103, 110 and teachers standard of living, 103 maximum provided by Federal Government, 118 Associated Press, provisions for, 117 bibliography, 157, 158, 159, 160 Carnegie Foundation, twentieth report of, 117, 146 committee of One Hundred, 1924 report of, 97 [262] INDEX TO VOLUME IV (Continued) . Retirement (Continued) Salaric contributions: amount of public and teachers’ fixed by org a a , eae act, 112 : : return of, in case of early retirement, 100 l he 11 , — . costs, shares of teachers and publ n, 109, 11 a ah educational efficiency, promoted by, 115, 117 aa strat : ‘ Federal Act of 1926, 117 m«¢ or ele lary a . . 4 guaranties to public and teacher provided by, 104 m it tf elementary te ‘ l income and outgo for state retirement funds, 14, sections, 181 144, 145 in, f elementary and se nda individual accounts, 106, 153 rural teachers, 184 membership, 98, 147, 151, 153 early living wage of profess il : Metropolitan Life Insurance Co., provision fot 17 186 } National Council of Teachers Retirement Systen re port on reciprocal relations, 149, 150 Salary sche les New York City Retirement Fund, 153 para an New York Stock Exchange, provision for, 117 2 5 : _ Organic Act, contributions fixed by, 112 — " for Caicage, 1c past service, credit for, 108 ; et nail relation to teachers’ salaries, 114, 147, 148 falc nists = , report of National Education Association, 1926, 97 ncrease amount of deposits 1! sinking fund, importance of, 108 24/7, 248 superannuation in employment prevented by, 114, 115 teachers’ rights under old system, 107 Sch teaching profession advanced by, 114 importa of in the Republ 169, Vermont State Teachers’ Retirement System, 151, ff of forty years ago and today, 17 Western Clock Company, provision for, 117 also see education World’s Work, quoted on, 117 School at ne: 222, 223, 224 Retirement laws: of California, 147 School boards and committees: see Boards of « of Connecticut, 147, 149 of Illinois, 147, 148 School buildings of Michigan, 148 , of New Jersey, 147, 148 of New York, 147 of Ohio, 147 ; of Pennsylvania, 147, 148 . of Vermont, 151, 152, 153, 154, 155, 156 School costs : affect of war on, 255, 256 | Retirement Legislation: and ability of the nation to support educa ) : based upon sound business principles, 130 and business profits, 257 : controversial issues in the field of, 146, 147, 148, 149 and econ 255, 257 : education of public and teaching profession necesasry and increa in attendance, 250 q for, 120 and taxation, 257 expert advice and technical data needed as basis of, as insurance for America’s future, 13 120 by states, 1880 to 1922, 76 professional advancement promoted by, 120 compared with school accompli ent, 1 roll call by states as to plans affecting, 126, 127, 128, n effect of increase in, 242, 24 $4 { 129, 130 , 248 teachers’ interest in, 119, 120, 121 in, 256, 259 teachers’ professional duty to support, 120 retirement systems on, I1¢ teaching efficiency increased by, 119 elementary and secondary scl , 239 increase in, 253 Retirement Systems: in teachers’ colleges and normal schools and the Federal Government, 117 per unit of service rendered, 250, l, and insurance for old age, 118 proportion of, from state sources, 211 and length of service, 115 ratio of, to wealth, 240, 242 and professional advancement, 114 ratio of total, and of public element and school costs, 116 ondary, to current income, 1924, 240, 24 and teacher turnover, 115 l, 1923-24, 239 and teachers’ salaries, 114 of, 251, 254 and teaching efficiency, 115, 119 arguments in favor of establishing, 189 School equipment directory of local and state, applying to certain classes bibliography, 217 of cities, 125 also see School costs, School revenue, et directory of state-wide and territorial, 124 fundamental principles of, included in 1924 report School property: of Committee of One Hundred, critically reviewed, ratio of value of to value of total tang e pronert 97, 113 239, 240 fundamental principles of, included in 1924 report of value of, 1924, 201, 239 Committee of One Hundred, percent of people ques value of, public elementary and secondar » 240 tioned who accepted each, 99 value of, total and average per pupil « ed 4 fundamental principles, included in 1924 report of Committee of One Hundred, suggested extension School revenues: of, 113 increase in essential to progress, 214 in private industry, 117 sources of: see Taxation interpretation of tabular statement of main provisions of eleven, 131, 132, 133, 134, 135 School sites, size of, 199 list of those in effect, 1926, 122, 123 ; ‘ membership in, 98, 100, 147, 151, 153 School support: main provisions of eleven, tabular statement of, arguments for adequate, 174 132-43 expenditures for, by states, 1880 t states without, 187 ; School systems Russell, James, E.: quoted, 183, 195 essentials of modern, 1 School term, length of, 205, 206, 20% bibliography, 208 School, consolidated, 201 Schools, rural, 201 Security issues: increase in, 245 State aid: bases of distribution of, 212, 213, 214, 215, 216 inequalities in, 212, 214, 215 state fund essential, 211 State retirement systems: see Retirement, etc. Summer schools: attendance, 227, 228 Suzzallo, Henry, quoted, 170 Taxation: and school costs, 257 justification of universal, for public education, 169 new forms recommended, 214 of property, 215 Teachers: employment of, 178, 180 growth of, in service, 187, 227, 228, 229, 230, 231, 232 in colonial days, 175 men, percent of, 185 also see Salaries, Training, Certification, Retirement [264] INDEX TO VOLUME IV (Continued) Teachers’ colleges and normal schools: costs per student, 178 Teachers’ meetings: characteristics of, 229, 230 outcomes of, 230 purposes of, 227, 228, 229 suitable topics for, 230, 231 Teachers’ salaries: see Salaries Teacher training: 175, 176, 177, 178 also see Teachers Tenure: : characteristics of satisfactory program of, 180 Wages: see Salaries War costs, 256 Wealth: accuracy of census of 3, 17 and income, 12, 13, 14, 15 and tax-paying ability, 3 census of, in agricultural and industrial states, 17 of states, 3, 4, 5, 6, 19, 72, 75 per capita, 10 per child, 29, 30 31, 32, 36, 55, 56, 57, , 58, 209, 210 per child in rich and poor states, 32, 56, 57, 58, 59 ratio of wealth to income, 14, 15, 16, 17, 18 value of tangible (1800, 1900, 1912, 1924), 242, 2 Wells, H. G., quoted, 182 World’s Work quoted, 117 A Bargain Par Excellence Five dollars or more is what you ordinarily pay for educational publications equivalent in quality and quantity to the issues of the Research Bulletin for one year. One dollar is what it actually costs for a year’s subscription to the Research Bulletin. The subscription price of the Research Bulletin \ittle more than covers the cost of printing and delivery. The National Education Association bears the expense of assembling and preparing for publication the material which the Research Bulle- tin brings to you. This is one of the many forms of service which your member- ship in the National Education Association makes possible. A total of 97,100 copies of the Research Bulletin were printed in order to sup- ply the demand for the last five issues. You can receive the next five issues at a subscription price of $1.00. Why not capitalize this opportunity? Join the growing army of school workers who are finding the Research Bulletin indispensable in meeting the demands of the classroom, the research worker’s laboratory, the school executive’s office, and the speaker’s platform. Fill out the blank below, attach check or one dollar bill and mail it at once. Research Bulletin of the National Education Association Research Division, N. E. A., 1201 Sixteenth Street N. W., Washington, D. C. Gentlemen: Enclosed find one dollar. This is for one year’s subscription to the Research Bulletin, beginning with the __- Riad issue. ee a igs deglonianadaneaiennal (Typewrite or print) (City and State) EEC ee ea cs PE enn ae (Make checks payable to National Education Association) [265] ITH THE EXPANSION of popular Wt government, public activities have be nd multiplied both intensively and ex- tensively. New functions have con- stantly been added, while many old ones have been improved in quality and extended to em- brace a larger and larger field. Although public expenditures have increased faster than popula- tion and wealth, as stated in monetary terms, the heart of the question they raise is essentially whether the welfare of the nation, as reflected in the satisfactions of life, has kept pace with this in- creasing cost. After all, it is not so much the amount of taxes and public expenditure that should command attention as the purposes which public funds serve and the circumstances surrounding their disposition; i. e., whether the object of the expenditure is wise and whether the function has been properly conceived and is being efficiently and economically administered in the interest of the community as a whole.—National Industrial Conference Board, Cost of Government in the United States, 1926, pp. 14-15.