Smack in The Middle of The Big Squeeze

The seven years since the nation's voters handed off to the Republicans have not been easy ones for a great many organizations that have in the past relied heavily upon government funds.

Only the real hardship cases--defense organizations and contractors, oil cartels, airlines and the like--have been able to get the government to increase their benefits or open the spigot further since then.

The less needy groups--welfare organizations, inner city programs, and other health, education and social welfare groups--received the thrashing they deserved.

Harvard has been somewhere right smack in the middle of all the commotion.

The University was able to emerge from six and a half years of Nixonian government with about the same level of government support as in 1968.

But in a time of soaring inflation and depressed stock markets, standing pat has not been enough: since 1968, every component of Harvard income and expenses, except for government support, has grown significantly.

Seven years ago, the $63 million Harvard received from the government represented almost 40 per cent of the University's total income; last year a similar level accounted for less than 27 per cent.

Since most of the private foundations that Harvard has relied heavily upon in the past also weathered severe batterings in the stock market, this source has fallen sharply recently.

The decline in real income from both of these sources, coupled as it has been with inflation and a depressed stock market provoked a rather somber forecast by Hale Champion, financial vice president, in the annual financial report released last November.

"These conditions, if they continue." Champion wrote, "will undermine the financial stability of the University."