TEACHERS' INSTITUTES.

In order to encourage the holding of teachers' institutes, State aid is granted in four States. A union of towns for institute purposes is encouraged in both Kansas and Massachusetts by grants of State aid.

General restrictions.-In Michigan aid is granted only when institute funds are insufficient to meet necessary expenses, no other conditions being attached thereto; in Kansas, teachers must pay a registration fee; in Massachusetts the annual meeting must be not less than one day; in North Dakota, the aid granted must be used exclusively for salaries of conductors and lecturers appointed by the State superintendent. Restrictions as to amount.-The amount of aid granted in Kansas is $50; to a union, $50 for each county represented; in Massachusetts $50 is also granted, and to a union not exceeding $350. In North Dakota a sum of $100 is granted to each county for institute purposes.

DISCUSSION.

The intention of a State in granting State aid is to improve public schools by a combination of State and local support. In the main, the purposes for which State aid is proffered are not those which are commonly regarded as necessities, but rather as extensions of elementary school work. Like many other educational innovations, such extensions have become a part of school activity through the initiative of the richer localities, which are able to introduce and maintain them independently of any State aid. Less prosperous localities, in their endeavor to gain equal advancement, may have realized the wisdom of providing a certain amount of money for such purposes and of then applying to the State for an additional amount; or a State, conscious of existing inequalities in educational opportunities and actuated by broad interests, may have proffered aid to localities that were willing to join in a movement for increasing the efficiency of their elementary schools. In State aid as granted, the conditions imposed are not unduly burdensome, yet the enforcement of the conditions tends to arouse a permanent interest in school improvement. Such action on the part of a State necessarily implies central control. The form of control presented, however, is tolerant. Localities are in no instance compelled to accept State aid, but if they do accept, then the conditions attached become operative. In other words, the rather high degree of centralization. involved in the usually stringent conditions is modified in practice by voluntary participation on the part of localities. In view of these facts and of the relative importance and distribution of the various purposes for which State aid is granted in the 33 States having any provision for State aid, the standard can not be regarded as showing conclusively either centralization or localization, but rather a division of control, with the odds in favor of localization.

1 Kansas, Massachusetts, Michigan, North Dakota.

IV. RESTRICTIONS UPON THE RIGHT OF LOCALITIES TO BORROW MONEY AND TO ISSUE BONDS.

Under the American system of education the successful administration of public schools depends largely upon the spirit of independence and enterprise possessed by the various localities, and upon their readiness to assume financial responsibility. Recognizing these facts, nearly all the States1 have adopted legislation authorizing localities to borrow money and to issue bonds for school purposes. This form of participation in the financial support of public schools is not made compulsory upon localities by the States; nevertheless there is manifest a very general desire on the part of the former to provide types of schools representative of community interests. In order to accomplish this aim, it is often necessary for localities to borrow money and to issue bonds, because limited State appropriations and the proceeds of local taxation do not afford revenue sufficient for the introduction and maintenance of the superior educational advantages which a large number of the more progressive localities desire. Furthermore, the amount of taxes necessary to be raised in any one year for certain purposes may be deemed by local school authorities to be burdensome; the borrowing of money or the issuing of bonds tends to distribute the burden of taxation and to provide for immediate needs. Therefore we find that 44 of the 48 States authorize localities to borrow money and to issue bonds. In 3 of these States-North Carolina, Virginia, and Wisconsin-loans are made to localities from the State school fund. In borrowing money and issuing bonds, localities are restricted by State legislation. Such restrictions may name (1) the persons authorized to borrow money or issue bonds, (2) the purpose for which money thus raised may be expended, (3) the amount that may be borrowed, (4) the period for which bonds may run, (5) the denomination in which bonds may be issued, (6) the rate of interest they must bear, (7) the selling price they must command, (8) how the sinking fund for their redemption must be cared for, (9) the conditions under which States proffer loans to localities, and (10) other details.

AUTHORITY.

The first detail of restriction deals with the designation by central authority of the persons ultimately responsible for authorizing the borrowing of money and the issuing of bonds. This policy is common to 41 States. In 28 States 2 such responsibility is vested solely in legal voters; in 8 States, in legal voters who are taxpayers; in 3 States,' either in legal voters or in school trustees, according to the purpose

1 Except Alabama, Maine, Maryland, Massachusetts.

Arkansas, Connecticut, Delaware, Illinois, Iowa, Kansas, Kentucky, Michigan, Minnesota, Missouri, Montana, Nebraska, Nevada, New Jersey, New Mexico, New York, North Dakota, Oklahoma, Oregon, Rhode Island, South Carolina, South Dakota, Tennessee, Virginia, Washington, West Virginia, Wisconsin, Wyoming.

3 Arizona, California, Colorado, Florida, Louisiana, Mississippi, Texas, Utah.

4 Georgia, Idaho, Ohio.

for which or the district in which bonds are to be issued; in 1 State,1 in school trustees alone; in 1 State, either in the township trustee upon authorization of the township advisory board, or in school trustees, according to the kind of school unit concerned.

Although legal voters most frequently have the actual power as to the issuing of bonds, yet in a number of States where this is so, local school authorities are intrusted with certain minor powers, such as preparing an estimate of the probable amount of money needed, as in Colorado, Michigan, Nevada, and Ohio. In Arkansas, for erecting and equipping school buildings in special school districts, boards of directors prescribe conditions and regulations as to amount, time, and manner of payment of bonds. In Michigan, before bonds may be issued, the school board must pass upon the legality of the proceedings in voting the bonds. In Iowa the school board may not attempt to defeat the wish of the voters clearly expressed, yet a vote to issue bonds is regarded somewhat as permissive authority. In New York (in union free-school districts for building schoolhouses) and in Missouri, local school authorities may issue bonds for a less sum than the amount authorized by vote. In New Mexico, when a school district does not own a schoolhouse, the county superintendent has power upon a petition signed by 20 residents to order the school directors to submit the question of issuing bonds for such purpose to the voters. In the States in which bonds are issued on vote of the electors or of the voting taxpayers a notice must be given either by the district itself or by local school authorities stating the time of election, the amount of money to be raised, the purpose or purposes for which bonds are to be issued, the rate of interest thereon, and the number years they are to run. Although the issuing of original bonds is vested primarily in legal voters, the power of renewing, extending, and replacing bonds is generally vested in school trustees. For example, when school sites are to be purchased, schoolhouses erected, furnished, repaired, etc., the people must vote upon the question; but if it becomes necessary to refund bonds already authorized by the people, local school authorities have the power to take such action. It should also be noted that in some of these States, although the legal voters must pass upon the original issue of permanent bonds, a school board, in addition to the power of renewing, extending, and replacing such bonds, has original power to issue temporary bonds or warrants in anticipation of its regular income from taxes.

of

PURPOSE.

Another restriction attached to the borrowing of money or the issuing of bonds is the designation by States of the purpose for which money thus raised may be expended. This restriction holds in all of

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1 Pennsylvania.

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2 Indiana.

the 44 States authorizing the borrowing of money or the issuing of bonds. The most common of the purposes designated are the purchase, condemnation, and improvement of sites; the erection, repair, and furnishing of schoolhouses; the building of additions thereto; the maintenance of schools; and the refunding of bonds. The least frequent purposes are the payment of teachers' salaries; the introduction and maintenance of school libraries and vocational education, including manual training; the establishment of a school of detention; the establishment and maintenance of playgrounds and gymnasiums; the insurance of school property; and the meeting of unusual conditions. The following chart shows in detail these purposes, as specified by the various States: Survey of purposes for which money may be borrowed and bonds issued.