4.



   *(e) The Financial Situation.   Frankly, I am disturbed over
the financial situation.   The returns for 1Tovexber -were about
$3,000. less than a year ago anrd it appears from the report of the
auditor that the collections for December will amount to $175,000
as against $207,00) last December.   Judging from the history of
several years the December payments institute the larger payment
of the year.  It appears that the receipts of the year may run
from $30,000 to )4`O4000 below the estimates.  The def icit in all
accounts on June 40, 1920 vwas$117,000 and the University has
borrowed from the banks $175,000 in anticipation of the December
and January pa',-mcnts.  The University defioit is one of long
standing going back over a period of some years.   It, hovrever,
has been difficult to make up the amount from current income.
The University in-oifte has been reduced further by about $10,000
thru the remission of fees to ex-service men.   The legislative
act also called for the housing of such students whichl would ret
quire not less than $100 per man or about $30,000 annually for
three years.   * s doubt exists relative to the application of this
act the Executive Committee suggested to a committee of ex-service
men that they take the matter to the courts to determine the re-
sponsibility of the University.   As a consequence of this act
for which the Legislature made no appropriation, the University
stands to incur an unfounded for expenditure in three years1 time
approximately $120,000.   High costs of materials such as coal,
equipment and labor add to the burden of the University budget.
The only outcome that I can see is a larger support both in in-
come and capital account.

    '(f) New Dev. oment.    The most noticeable feature in this
year's development is in the establishment of the department of
Public Health and Hygiene.   This department i'as made possible by
the appropriation of $11,900 by the Interdepartmental Social Hy-
giene Board to the University.   Against this the University is
to maintain departments and work costing a similar sum.   The new
department now consists of four members; three physicians and a
nurse.   i daily dispensary is maintained, courses are given in
hygiene and examinations are made of all students.    In addition
the department is projecting courses thru the Extension Depart-
ment and cooperating with the Department of Publio Instruction
in carrying out the provisions of the Physical Education Law passed
by the Legislature oj 1920.   The department of Pygiene and Publie
Health finds itself handicapped by the lack of hospital facilities
to take care of students who are ill.   As it is now, the University
sends students to the hospital, who often leave without payment of
their bills.   A system of health insurance with a possible charge
of $3.00 per year for each student would take care of student ill-
ness much more satisfactorily than at presents