there is now an unbroken stretch of lawn from the Library to Sibley College. The flag walk in front of Morrill, McGraw, and White has been relaid and lined up with the Library tower. A new concrete walk in front of Goldwin Smith Hall extends north to the eastern end of Sibley College and is soon to be continued southward past the west end of Stimson Hall and the front of Sage College to the Armory and the Cascadilla bridge. Behind Goldwin Smith Hall on the west side of East avenue a new walk has been made which is to be extended past the rear of Sage College till it joins the diagonal path across the drill ground to the Armory. When this work, for which large appropriations were made last year, is completed there will be three paths of travel northward from the Cascadilla entrance of the campus instead of one as formerly. The two new lines of circulation, while intended primarily for the new buildings, will also be the nearest routes to some of the old buildings, notably Stimson Hall, Lincoln Hall, and the eastern part of Sibley College. The beauty of the campus and its surroundings and of the gorges on its northern and southern boundaries is an ineffaceable recollection of all students who have passed through Cornell. It is pleasant to record the manifestation of a practical interest among old students in the preservation and enhancement of this beauty. The Alumni Association of Brooklyn has adopted a plan for the construction of paths in Fall Creek gorge and the erection of lookouts which, when carried out, will make the places of romantic charm with which that gorge abounds easily accessible, thus facilitating for every student the enjoyment of Wordsworth's vision : "Beauty a living presence of the earth, Which craft of delicate spirits hath composed The amphitheatre in Cascadilla gorge, which has been granted to the women of the University as a playground, has been graded; but its further development is contingent on the receipt of funds which the President earnestly hopes. the friends of the higher education of women will supply without delay. The women students themselves have been both zealous and generous in their efforts. FINANCES The productive funds of the University (from which, however, the Medical College in New York is not supported) amounted on August 1st to $7,839,874.42. They are invested as follows: In municipal bonds $1,689,000, in New York State certificate of indebtedness $688,576.12, in foreign government bonds $387,250, in steam railroad bonds $510,000, in traction bonds $624,000, in miscellaneous corporation bonds $905,500, in real estate mortgages $1,946,655.50, in land contracts $294,490.73, and the residue in real estate, bank stock, special deposits, and other miscellaneous securities. The rate of interest upon invested funds (including cash) actually received during the past year averaged 5.18 per cent. This rate was credited on all special funds, the deduction of 5 per cent for the insurance or surplus account being made only from general University funds, on which the rate credited was 4.97 per cent. This rate is, of course, very high and cannot be maintained when old investments run out and new securities are purchased. At present the University receives 6 per cent on $1,145,584.36, 5% per cent on $513,978.56, and 5 per cent on $4.546,357.38. The total income available for 1905-1906, including unexpended balances and gifts other than endowments, was $1,162,406.65 and the total expenditures $1,175,757.95, making an adverse balance of $13.351.30, to which, when the increase in liabilities for contracts made, but not completed, of $8,508.81 is added, there results a deficit for the year of $21,860.11. In the expenditures were included $17,000 for reconstruction of the basement of the library (with a resulting increase of the library stack room by about 25 per cent) and $5,000 towards the purchase of the Mitchell farm. It must be remembered, however, that there has been a serious deficit since the terrible epidemic of 1903, when an anticipated surplus was turned into a deficit of $72,645.08. On August 1st, 1904, this deficit had risen to $77,218.20, and on August 1st, 1905, it had reached $82,744.23. To this must now be added the shortage of $21,860.11 for the year ending August 1st, 1906, making a total deficit of $104,604.34. The portion of this deficit ($31,959.26) which has accrued since the epidemic has been due to extraordinary expenditures in connection with a very great material expansion of the University involving both building and grounds-an expansion necessitated by an augmentation of about 1,000 in the enrollment of students since 1901. The last phase of this wave of expansion will fall in 1906-1907, when appropriations must be voted for the alterations which have been or will yet be made to adapt McGraw, Lincoln, Morrill, and White Halls to the uses of the departments to which they were assigned on the completion of Rockefeller and Goldwin Smith Halls. Exclusive of the Medical College in New York City and of State appropriations, the regular income of the University for 1905-1906 was $828,620.91 or, deducting $14,977.46 to be transferred to principal funds, $813,643-45. The State appropriations for Agriculture and Veterinary Medicine aggregated $75,000, and the income of the Medical College in New York City was $166,823.29. Thus the total regular income of 1905-1906 aggregated $1,055,466.74. Valuable additions have been made to the resources of the University during the year 1905-1906. The executors of the estate of the late Willard Fiske have paid over $413,531 and a considerable balance remains to be turned over on a final settlement. This fund is an endowment for the Library. There was also received from the Fayerweather estate a final balance of $8,529.59. To Mrs. Dean Sage of Albany the University is indebted for a further gift of $15,000 in augmentation of the Sage Chapel Preachership Fund donated by her husband in 1876. The association which owned the Medical College Laboratory in New York City, the estimated value of which is $75,000, turned it over to Cornell University. And the constant munificence of the Founder of the Cornell University Medical College has been, as in past years, though modestly and invisibly, all the same most effectively active. Lastly, the will of the late Mrs. Nancy G. Howe, sister of the late Mr. F. W. Guiteau, founder of the Guiteau Loan Fund, who died at Irvington on the 27th of September, 1906, contains the following provision : "I give, devise, bequeath all the rest and residue of my property to Cornell University situated in the town of Ithaca, New York, to be invested by the trustees or directors of said University in lawful securities, to constitute a fund to be called by and to bear the name of Guiteau and the interest and income thereof to be used in advancing and assisting needful worthy young men in pursuing their studies in said University." The greatest need of Cornell University today is of endowments for professorships to increase and strengthen the intellectual forces which constitute it and by which it is to be made more powerful and more effective. This need has been created by the large and continuous increase in the attendance of students which has characterized the University for some years past. Benefactors to whom such an opportunity of making philanthropic investments appeals may select as objects of endowment almost any department whatever in the varied curriculum of the University-lan guages or history; physics, chemistry, geology, or botany; civil engineering, mechanical engineering, or electrical engineering and feel that their gifts are equally productive of benefit to the University and of serviceableness in the advancement of the highest civilization in America. A general department of pure science like chemistry or a technical school like civil or electrical engineering, each enrolling at Cornell several hundreds of students, should appeal with peculiar force to practical men who have made vast fortunes by means of instrumentalities whose efficiency ultimately depends upon the progress of pure and applied science. Next to additional professors the University needs apparatus and equipment and buildings for the professors to use in instruction and research. The Library is now well provided for; but endowments for the great scientific laboratories and for the shops of the technical schools have not yet been begun; and, though the departments of the liberal arts and of physics are at last splendidly housed in Goldwin Smith Hall and, Rockefeller Hall, and the College of Agriculture will soon have spacious quarters in the group of State buildings now in course of construction, the department of botany is still homeless, the large classes in civil engineering are still without a suitable hall for instruction and drafting work, and shops for the department of mechanic arts are still an unsatisfied but imperative need of Sibley College, with a laboratory for experimental engineering a close second. The students themselves feel keenly the inadequacy of the provisions which the University at present makes for their physical, economic, and social welfare and also for their education outside the halls of instruction. The young men demand a new and large gymnasium, as the little armory, which was built in 1883 when the University had |