- 3-

or others, understood clearly that those views would be

treated in the very strictest confidence. For this

reason we do not propose either to give the names of

such witnesses or to disclose the system upon which we

pursued our enquiries; and our considered conclusions

will in general be given without any statement of the

grounds on which they are based.

FINANCE.

8. In accordance with the first of our terms of

reference we have made a very close examination of the

present financial position of the University. On the

assumption that the subsidy from the public funds of the

Colony can be maintained at its present figure of $350,000 per annum, and on the further assumption that the income from fees will remain at its present figure of about $200,000 we may say at once that the existing

position is not unsatisfactory.

9.

The only other considerable source of income

is, of course, the interest on the endowment funds (in

which for convenience we have included certain special benefactions), and these in the immediate future may be expected to yield nearly $440,000 per annum.

10. With the economies now in force the total

running expenses of the University come to only a few

thousand dollars over $1,000,000; and it will be seen

from this that, for once in its existence, there is no

need for the University to panic.

11.

We hasten to add that, taking the long view

which we are specifically instructed to do, we consider

the financial position unsatisfactory.

We cannot but

think that financially the University has in the past

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