Higher Education: Resources and Finance

By Seymour E. Harris | Go to book overview

jects as classics or history, no serious problems arise. The university merely adds part of its regular budget to these departments to make up for the deficiency of funds for a particular chair. But where the subject to be taught has little interest for current administrators, more serious problems arise.

A related problem is the following: at what price should an IHL agree to set up an endowed chair? If a high-priced professor receives $20,000, then at 4 per cent $500,000 would be needed. But a university may accept less--say, $250,000--where the chair is badly needed and on the assumption that the agreement can be made in such a manner that it will not spoil the market; that is, others will not be deterred from offering much more. But there is another aspect. Twenty-five years from now the $20,000 professorship may cost $40,000. Should not this be taken into account in setting a price for a professorship--in a generation a deficit of $20,000 per year may emerge. In part this would be offset by investments in growth stocks resulting in a rise of income, though not likely equal to the increased costs of the chair. Obviously where the chair seems to offer a large contribution for the foreseeable future--e.g., science--the administration need not be deterred too much by the need of an additional, say, $20,000 per year to finance the chair by 1985.


FOOTNOTES
1
Here I am not discussing the problem of how much attention generally should be paid to book values. My view is that too much attention is paid to book values, especially in periods of economic decline. The emphasis should be on income, and treasurers should not be excessively concerned over declines in book values. Original value is more significant than book value, especially since book values are occasionally modified. But, unfortunately, book, not original value, is usually available.
2
According to the 1959 HEW study, College and University Endowment Investments, 140 of 200 IHL accounting for the larger part of endowment use the book value approach; also see Higher Education in the United States: The Economic Problems, 1960, pp. 208-211, and Senate Bill No. 254, Session of 1947, The General Assembly of Pennsylvania.
3
R. S. Johns, "Preferred Method of Pooled Investments," College and University Business, July 1, 1953, p. 27; C. H. Foster, "Applying Investment Trust Accounting to the Pooled Funds of the College," ibid., November, 1956, pp. 47, 48; R. G. Funkhouser , "Applying Investment Fund Accounting to Consolidated Endowment Funds," ibid., June, 1954, pp. 21-23, and July, 1954, pp. 44-47; J. D. Russell, The Finance of Higher Education (rev. ed.), chap. 11; A Second Look at the Sixty College Study, 1960, exhibit XI.
4
R. L. Thompson, The Care and Administration of Endowment Funds, pp. 19, 20, 22-23.
5
See especially L. M. Simms, Public Policy in the Dead Hand, 1955, pp. 119-131, and T. E. Blackwell, "Who Has the Power to Modify Charitable Trusts?" College and University Business, June, 1953, pp. 30, 31.

-444-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this book

This book has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this book

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited page

Bookmark this page
Higher Education: Resources and Finance
Table of contents

Table of contents

Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
/ 716

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Author Advanced search

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.