UA-R-GC-1914-01-01-1966-04-22_Page-011

I I I for the foreseeabJ. future, above and beyond what was now available, was essential in order to sustain the gains of the past few years. A broad discussion of this presentation ensued. With respect to the projected dollar shortage it was the consensus that to overcome the shortage by reducing expenditures would require cuts In faculty, which accounted for the main dollar expenditure and to a lesser degree in procurement of equipment and books. After further discussion it was generally agreed that an immediate effort should be undertaken to raise American dollars with a broad goal of $5,000,000. If this goal were achieved it could result in the increase of income from endowment adequate to meet the University's foreseeable dollar needs and also allow the paying off of current debts. At the same time it was generally felt in view of the projected deficit figure that the University should be extremely cautious in regard to any further expansion and that any \ ~ qIiT plans or projects should be carefully examined in the ·~ of the demands which they might place on the available operating funds of the University. It was also noted that the procurement of funds In the amount proposed would put the University in a better cash position In terms of Its day to day operating and hopefully eliminate the cronic periodic cash shortages which currently arose. Mr. Newsom noted the unfavorable publicity recently accruing to certain Institutes of higher education with regard to their relations with the U.S. Governemnt and its various agencies. He pointed out that all colleges and universities receiving government assistance were in varying degrees vulnerable to charges of being instruments of overt or cover. branches of the Government. The American University could, because of its location be particularly vulnerable to such charges. ~ While the ~ policy of the University categorically opposed any such - 4