# The History of the University of Pennsylvania/Chapter V

Chapter V.
Finances of the College.
Our view of the college would be incomplete, without some account of its financial concerns. The original fund with which the trustees ventured on their undertaking was the sum of two thousand pounds, payable in five annual instalments, subscribed by the individual members of the board. To this sum a very considerable addition was soon made by subscriptions, on the same terms, obtained among the inhabitants of the city; and the resources of the institution were afterwards augmented by donations and legacies, by public collections in churches and at the commencements, and by the proceeds of lotteries. From these various sources, in the ​course of twelve years from the first establishment of the academy, the amount derived was not less than seven thousand pounds sterling; and if to this be added the profits of tuition, and benefactions from the proprietors in money and land, to the value of at least three thousand pounds, received during the same period, there will appear to have been no deficiency of funds for carrying the designs of the founders of the seminary into full effect Of the donations from the proprietors, five hundred pounds accompanied their grant of the first charter, and nearly three thousand acres of land, situated in Bucks county, being the fourth part of the manor of Perkasie, were conveyed to the trustees by Thos. Penn, on the condition that, if the institution should fail of success, the land should revert to himself or his heirs. The fee simple of this land was, at a subsequent period, vested in the trustees, and the farms into which it was divided were sold upon mortgage; but as the conditions of the sale were not complied with, the greater number of them have reverted to the institution, and now constitute a part of the real estate of the University of Pennsylvania.
Though the resources of the college were amply sufficient to meet all the immediate demands upon them, and, at the end of twelve years, a considerable surplus remained in the hands of the trustees, beside the clear possession of the college ground and buildings, yet, as the interest accruing from this surplus, even with the addition of the receipts for tuition, would by no means be adequate to the proper support of the school, which would, therefore, still be left dependent upon the precarious supplies of private contributions and lotteries, it was thought advisable to look about for some means of ​procuring such a sum of money, as, when united to that already possessed, and constituted into a permanent fund, might yield a fixed and certain income, adequate to all the wants of the institution. Too much had already been contributed by the citizens to justify an expectation that this object would be accomplished by a further appeal to their public spirit; and the legislature of the province wanted either the ability or inclination to yield any assistance. The attention of the trustees was, therefore, directed abroad; and as Dr. Smith, on his return from Europe, had reported that many of the best and most influential personages in England were favourably disposed to the institution, it was determined to seek, from the liberality of the mother country, those supplies which were not to be obtained in the colonies. The numerous and highly respectable acquaintance which the provost had formed, and the esteem in which he was held in Great Britain, naturally designated him as the most suitable person to act as the representative of the trustees on this occasion; and they accordingly requested him to undertake, in that capacity, another voyage across the Atlantic, promising the payment of all his expenses, and the continuance, during his absence, of the salary attached to the provostship. Dr. Smith cheerfully complied with the request; and, being furnished with the proper written power, sailed for England, where he arrived early in the year 1762. Persons of very high station and authority became interested in the success of his mission; and it was recommended, in order that the application from the trustees might come with greater weight, and the charity be rendered more universal, that a royal brief should be obtained, authorizing a collection to be made throughout the kingdom. Some embarrassment, however, was at first experienced in consequence of a similar application from the college of N. York, which, it was feared, if urged in opposition to that from Philadelphia, would ​materially interfere with its success, and, by the disgust which such rivalry is apt to excite, would operate greatly to the disadvantage of both schools. To remedy this inconvenience, Dr. Smith was induced, by the advice of his friends, to unite with Dr. Jay, the agent from New York, in a joint application, agreeing to share with him equally all the advantages which might result An event very favourable to their purpose was at this juncture offered in the birth of a prince; and to his present majesty, George the Fourth, is perhaps, in some measure, owing the favour which their project experienced from his royal father. On so joyful an occasion, the king and his council could not refuse their countenance to a work of benevolence; and not only was a brief, as ample in the powers it conferred as they could desire, procured, but his majesty was pleased to give them also the influence of his example by himself becoming a contributor. The agents were not backward in availing themselves of the opportunity thus afforded them; and their success was even superior to their expectations. Dividing the country between them, they travelled throughout England; visited many parts of Scotland and Ireland; and where they could not themselves be present, employed the services of friends, and endeavoured to make a favourable impression by the distribution of circular letters, setting forth the nature of the charity, and strongly urging its claims upon the favour of the benevolent. Dr. Smith was especially remarked for his indefatigable exertion and skilful management. So highly, indeed, were his services appreciated by the trustees, that they not only took every opportunity of conveying to him the strongest expression of their approbation and confidence, but, on his return, received him, at a meeting of the board called for that special purpose, with the highest marks of satisfaction and respect, and unanimously voted him their thanks for the "great zeal, diligence, ability, and address which he had ​shown in the management of this collection." At a subsequent meeting, they gave him a still stronger testimony of their consideration in the grant of one hundred pounds a-year, which was to be considered, "not as an addition to the salary of provost, but solely as a reward for his personal services in England." The individuals in Great Britain who most interested themselves in this affair of the two colleges, and whose influence, both in obtaining the brief, and afterwards in promoting the collection, was of most importance, were the archbishop of Canterbury, primate of the English church; the Rev. Dr. Chandler, who was considered at the head of the dissenting interest; and Thomas and Richard Penn, the proprietors of the province, who themselves contributed five hundred pounds. To these gentlemen letters had been originally written by the trustees, requesting their aid; and their exertions, particularly those of the archbishop and of Dr. Chandler were the more praiseworthy, as it was expressly understood that the objects of the college were not to promote any sectarian interests, but that its doors were open indiscriminately to individuals of every religious persuasion, whether in the capacity of officers, or of students. The collection was completed by the end of the year 1763, and the share of it which fell to the Philadelphia college amounted to more than six thousand pounds sterling. According to the original intention of the trustees, this sum was considered as a permanent fund, of which the interest only was to be applied to the purposes of the college; and the different portions of it, as they were received, were immediately invested in the best securities, generally in mortgages accompanied with a bond and judgment.
The finances of the college might now be considered in a good condition; as the income from its real estate and other investments, united with the money for tuition, and the casual receipts from various sources, were sufficient for its support. ​No further efforts, therefore, were for some time made to augment its permanent fund; but as it was highly desirable that the institution should be wholly independent of precarious supplies, and some inconvenience was occasionally experienced from the emptiness of the treasury, the trustees, about ten years after their application to the British nation, resolved to set on foot another subscription in the colonies. Their first attempt was made in South Carolina, where the college was well known, and many wealthy individuals were supposed to be willing to contribute liberally towards its maintenance. Nor were their expectations disappointed. During a short visit which Dr. Smith was induced, at the request of the board, to make to Charleston, in the winter of 1771-2, he succeeded, without much difficulty, in procuring a large subscription, from which upwards of one thousand pounds sterling were ultimately realized. In the following spring, a proposition was made to institute a collection in the West Indies; and Dr. Morgan, one of the medical professors, having expressed a willingness to undertake the business, received from the board the necessary authority, and soon afterwards sailed for Jamaica. In this island alone, to which, on account of great losses sustained by a severe hurricane in other parts of the English West Indies, he was directed to confine his exertions, the subscriptions amounted to six thousand pounds, of the Jamaica currency. How much of this was actually collected, I have not been able to ascertain. A large portion of it was probably lost, in consequence of the confusion in which the affairs of the colonies were subsequently involved. It appears, however, from the minutes, that when Dr. Morgan gave in his accounts, towards the end of the year 1773, an amount equal to at least two thousand pounds sterling had been received, and the profits of his voyage, at the lowest calculation, may be stated at this sum. Beside the contributions from Carolina, and the West Indies, ​a very considerable sum was subscribed in Philadelphia and the neighbourhood; so that there was every reason to expect, that the permanent income of the college would, for the future, be amply sufficient to defray all its necessary expenses.
But the troubles of the revolutionary war, which now broke out, very materially impaired its resources. One of the first effects of this contest upon the institution was a diminution in the number of students, and a consequent falling off to an equal extent, of the receipts for tuition. In the spring of 1779, there were only about twenty members of the college classes, and eighty boys belonging to the grammar school and academy; and, at a previous period of the revolution, the numbers had been still less. The income of the college was also greatly diminished by the compelled receipt of depreciated paper in payment of rent and interest; and much loss of capital was experienced, in consequence of the discharge, in the same paper, of the bonds and mortgages in which a great portion of the funds was invested. At the same time that the resources were thus impaired, an enormous advance in the price of almost every necessary, rendered an augmentation of the salaries of the teachers indispensable, and thus very greatly increased the expenses. To such an extent was this the case, that at the opening of the schools, after a temporary suspension arising from the occupation of Philadelphia by the British army, it was found absolutely necessary to double all the salaries, in order that the professors might obtain a livelihood.
To compensate, in some measure, for this reduction of receipts and increase of expenditure, it was resolved, soon after the resumption of the duties of the college, in the fall of 1778, to make one more application to the citizens for aid. From a report made to the legislature, in the succeeding year, relative to the state of the schools, it appears, that this application resulted in the subscription of ​twelve hundred pounds, currency, to be paid annually for three years. From the same report it also appears, that the property of the college, at that time, consisted, 1. of the lots and buildings in Fourth Street, including the academy, the boarding-house to the north of it, and four dwelling-houses in the immediate vicinity;—2. of a farm and mills at Norristown, containing five hundred and seventy-two acres, purchased with the money received in discharge of bonds and mortgages formerly held by the trustees;—3. of the Perkasie lands in Bucks county, presented by Thomas Penn, and containing nearly three thousand acres;—and 4. of moneys placed out at interest, amounting to somewhat more than five thousand pounds. The whole income from this estate, independently of the college building, and of two dwelling-houses occupied by professors, amounted only to six hundred and seventy pounds, together with five hundred bushels of wheat, or its value in currency, the latter item being the rent of the mills and farm at Norristown. The entire inadequacy of this income to the demands made upon it, will be rendered obvious by the simple statement, that the salary of the provost alone, over and above the rent of the house in which he lived, was, at the period of the report, not less than seven hundred pounds, and was soon afterwards increased to fourteen hundred pounds, which, in consequence of the depreciation of the currency, and the rise in the price of necessaries, was considered no more than equal to one quarter of that sum before the revolution. It will be perceived, hereafter, that the poverty of the college was made a pretext by the legislature for interfering in its concerns, and was one of the ostensible causes of a complete revolution in its affairs.
Before speaking of those proceedings of the legislature which led to this result, and which constitute a new era in the history of the institution, it will not be deemed ​irrelevant to give a brief statement of the salaries of the officers, and the cost of tuition at different periods, from its origin to this time. Such statements are interesting; as they enter into our means of estimating the character of particular periods of history, and in some measure enable us, by comparing the past with the present, to judge of the progress or decline of society.
When the academy first went into operation, the rector received a salary of one hundred and fifty pounds, Pennsylvania currency, which on the appointment of Dr. Allison was augmented to two hundred pounds; and the salary of Dr. Smith, when chosen provost of the college, was fixed at the same sum. The other professors received from one hundred and twenty-five to one hundred and fifty pounds each, and the ushers, from sixty to seventy pounds. It would appear that these sums, small as they would now be considered, were in those economical times sufficient for the decent support of the teachers: for they remained without increase for several years; and there were few instances of resignation of office, on the ground of inadequate compensation. By the year 1761, however, an advance seems to have taken place in the cost of living, which rendered an augmentation of the salaries necessary. That of the provost was accordingly raised to two hundred and fifty pounds, and the others in nearly the same proportion. It has already been stated, that Dr. Smith, after completing the collection in Great Britain, received from the trustees, as a reward for his services, the gratuity of one hundred pounds annually, independent of his salary; so that his income from the college now amounted to three hundred and fifty pounds. In a letter, however, written to the board, in the year 1774, he states, that, on account of "the advanced price of necessaries, and the growing expense of a growing family," he finds it impossible, with all decent attention to frugality, to make this sum answer for his support; and, ​in a modest way, reminding the trustees of his services to the institution, he requests them to provide him with a house, and promises, whatever may happen in the future, to make no farther demand upon them. His request was unanimously complied with; and a spacious mansion was erected on the college grounds, in which he continued to reside till the college itself passed into other hands. The example of the provost was soon followed by the other professors; and most of them obtained the right of a dwelling in addition to their salary. The effect of the depreciation of the currency, and of the increased expense of living, during the revolutionary war, upon the nominal amount of the salaries, has been already noticed.
The cost of tuition for the students of the college was originally four pounds a-year, with the addition of six shillings for fire-wood, and an entrance fee of twenty shillings. The expense of graduation was four pounds. In the year 1757, an attempt was made to raise the price of tuition to ten pounds per annum; but as other colleges continued to retain the lower rate, the attempt proved unsuccessful, and the old price was resumed. The charge for boarding, in the college buildings, was twenty-five pounds fifteen shillings a-year; so that, for the very moderate annual sum of about thirty pounds or eighty dollars, a young man might, at that period, receive his support in the first city, and his education in one of the highest seminaries of English America. During the revolution it was found necessary, from the same causes which induced an increase in the salaries of the professors, to raise the price of tuition first to twelve, and afterwards to twenty pounds a-year.
* ↑ I observed in the minutes of the board, an acknowledgment of the receipt of one hundred pounds from "a company of comedians," being the profits of a play which they had represented for the benefit of the free school. The collection of so considerable a sum, on such an occasion, is a singular evidence either of the charity, or of the play-going propensities of those times. It seems that this mode of increasing their revenue did not meet with the unanimous approbation of the trustees, for it is stated in the minutes that a majority were in favour of receiving the donation.
* ↑ The sermons of Whitfield were most productive. One which he preached at the request of the trustees, for the benefit of the charity schools, and for which they returned him their "sincere and hearty thanks," yielded more than one hundred pounds.
* ↑ Considerable opposition was made to this mode of raising money; and, at one time, a law was passed prohibiting lotteries altogether: but it was soon afterwards repealed. Six or seven lotteries were at various times set on foot for the benefit of the institution; from two of which, upwards of four thousand pounds, currency, were collected.
* ↑ The house erected for Dr. Smith, was that large building which still stands at the south-west corner of Fourth and Mulberry Streets. All the ground and dwelling-houses, situated between this and the academy, were the property of the college.