College Finance

Biggest headache of endowed colleges today is cheap money, but last week an investigator reported that at least the colleges were better off than most other investors. J. Harvey Cain, director of the American Council on Education's Financial Advisory Service, had studied the funds of 120 colleges and universities, totaling $1,263,653,000. He found: > In the year ended June 30, 1940, college investments gave a higher average yield (4.06%) than those of life insurance companies (which are largely limited by law to bonds). Best record of an individual college: 6.95%.

> This year college earnings will drop to an estimated 3.86%.

> Most colleges are selling bonds, buying more common stocks. Present holdings: bonds 37.5%, stocks 24.1%.

Banned from North Carolina schools last week was a fifth-grade history (Jule B. Warren's North Carolina Yesterday and Today) adopted last winter by ex-Governor Clyde R. Hoey's administration and recently denounced by scholars (TIME, April 28). An investigator appointed by Governor J. M. Broughton found more than 1,000 factual errors in the book.

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