- 6 -
the interest allowed by the Bank on the sums paid by
the contributors themselves has now to be supplemented
by as much again from the general funds of the Uni-
versity to bring it up to 4%. In 1937 this will amount
to about $18,000 and this figure must necessarily
increase in future years. We suggest that the Bank
deposit, less a small liquid amount, might be invested
in the general funds of the University. With interest
reckoned on a 3% basis we estimate that an annual
saving of about $13,000 would be possible by such a
process, and the only alternative to this would seem
to be a reduction in the rate of interest allowed to
contributors.
19.
It will however be readily seen from a glance
at the University's budget that any such economies
can only touch the fringe. Of the round million
dollars which comprise the expenditure side almost
exactly one half represents the emoluments of the staff
on sterling rates of pay. It is here that any
substantial reductions, such as we have tried to show
are imperative, must be sought. And what remains of
this Report will naturally be largely concerned with
this problem.
20.
ENGINEERING.
It is not difficult to see what were the
ideals in the minds of the founders of the University
25 years ago when they insisted that an Engineering
Faculty was an integral part of the scheme.
China
in 1911 was beginning to awake; her educational system
was still woefully inadequate; and there was a vast
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