HARVARD'S FINANCIAL STATUS

The statement concerning the financial condition of the University made by the Comptroller is encouraging for two reasons. It is the first time that an official answer has been given to the legitimate questions which have been raised about the status of Harvard finances. Secondly, it assures Harvard undergraduates, alumni, and employees that for at least another year Harvard will continue to operate on its present scale.

Continuance at the present rate is possible, according to Mr. Endicott, because the $450,000 loss in income from endowments has been met by "income on capital gifts . . . the income of which has not already been allotted." He fails to mention, however, that the money received from the students in the form of tuition and payment for food is still the same amount as received before the depression. The value of the dollar having risen considerably, the students then, are actually paying more now than before the depression; they are helping to offset the deficit in the income from endowments. In other words, if the income from endowments has dropped, that from students has risen.

It might be argued that a student does not begin to pay for his education at Harvard and that therefore he is not imposed upon under the present arrangement. But in all its expenses except salaries Harvard is experiencing a decided reduction. Faculty salaries should naturally be the last items to suffer, but the general scale of living has gradually been lowered and as soon as Harvard can adjust its budget to the new conditions the benefits derived from the reduced expenses should be turned to the advantage of the student. A lowering of room rents now seems imminent; it will not be long before a decrease in food prices and other costs will be justified.