Repository: UIHistories Project: Board of Trustees Minutes - 1942 [PAGE 729]

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726

BOARD OF TRUSTEES ILLINI U N I O N SERVICE CHARGE

[December

16

M r . Jensen, also for the Committee on General Policy, presented the following report. The Committee on General Policy recommends that members of the University Staff who have contributed $50 or more to the fund for furnishing the Illini Union Building be given the privileges of the building for the year 1941-1942.

FRANK A. JENSEN Dr. KARL A. MEYER CHESTER R. DAVIS

O n motion of M r . Jensen, this recommendation was adopted.

INVESTMENT OF S T U D E N T LOAN F U N D S

Mr. K a r r a k e r , for the Finance Committee, presented the following report. The Comptroller reported to the Finance Committee that a substantial surplus exists in Student Loan Funds in excess of demands for loans. Total loan funds now amount to $369,795. Outstanding notes total $262,826, leaving an unloaned balance of $106,969. Of the latter amount the sum of $40,147 is invested, mostly in U. S. Treasury bonds, leaving a present cash balance of over $65,000. It is desirable that this investment be kept in a reasonably liquid form. The Comptroller secured recommendations from our Investment Counsel, the First National Bank of Chicago, and after consideration of those recommendations, the Finance Committee authorized as an emergency action the purchase of the following items: $20,000 U. S. Savings bonds (bringing the total of this fund invested in these bonds to $50,000; the other holdings are in different U. S. bonds). If these bonds can be held to maturity (12 years), they will yield 2}4%, but if they had to be disposed of during that time, the yield would be at various amounts ranging from zero up. The yield on a two-year basis would be 0.61%. $25,000 Reconstruction Finance Corporation 1%% due July 15, 1043, @ about 100.21, to yield 0.73%. _, > r „

O. M. KARRAKER

Chairman O n motion of Mr. K a r r a k e r , this report was received for record and the action of the Finance Committee w a s approved and confirmed.

BUDGETARY SITUATION AS AFFECTED BY THE WAR

O n request of the President of the University, the Board gave some time to a discussion of the effects of the entry of the United States into the W o r l d W i d e W a r on the budgetary and educational program of the University. M r . Morey, Director H a v e n s , and Dean Allen made statements on the situation. EXECUTIVE SESSION At this point, President Cleary stated that on request of a member, the Board would go into executive session in committee of the whole. W h e n the committee rose, the following actions were reported to the Secretary. REPORT OF FINANCE COMMITTEE M r . K a r r a k e r , for the Finance Committee, presented the following report. Some months ago the Board of Trustees referred to the Finance Committee the question as to whether there should be a survey made of the business operations of the University with a view of determining the efficiency and economy of administration and procedure of administration. This is in keeping with the