Deferred Income, paid by sureties of J. P. Kreiger,

11,584 40

This gratifying exhibit, far exceeding that presented for many years past, though to some extent due to the increase of the Board's revenues from revival of business prosperity, is mainly the result of the judicious reforms inaugurated by the "Retrenchment Committee " in 1879, and the strict economy in expenditure and preservation of its sources of revenue in their integrity, which have since characterized the action of the Board.

A tabulated comparative statement is herewith submitted, giving the items of receipts and expenditures included in this fund since 1877:

*Includes the amount apportioned to the City and County of St. Louis. For the years prior to 1881, the "bills receivable" include both principal and interest notes. Since August, 1880, only "interest" notes are included.

It will be seen, from the above table, that the current expenses of the schools have been reduced over $56,000 since 1879; and it is worthy of note, that, during the same period, the average number of pupils belonging to the Day Schools has increased from 35,860 to 37,877. These results forcibly illustrate the wisdom of the "retrenchment" measures inaugurated in 1879.

While our current expenses will increase with the growth of the schools, with new school accommodations, and the rise in price of labor and material, our revenues must also increase with business prosperity, and higher assessments of property for taxation. With the large surplus on hand, and with prudent, judicious and economical management, no difficulty need be apprehended in supporting the schools, and, as will be seen hereafter, in providing all necessary school accommodations.

IV. THE BUILDING FUND.

This fund differs from the foregoing in that it exists, not by force of law, but is a creation of the Board, and its re

* Prior to 1881 included in "Supplies Proper."

ceipts are really taken from the general revenues of the Board. Under the Constitution of the State, a special tax for erection of new school buildings may be authorized to be levied, by vote of two-thirds of the qualified voters. This Board, however, has never attempted to avail itself of this provision, and has provided new school accommodations from its general revenues available for that purpose.

In addition to appropriations from the surplus current revenues of the Board, this fund includes: first, the township bills receivable, received under the Scheme of Separation on behalf of the school districts lying within the extended limits of the City, which belonged to townships intersected by the new city line; and second, the bills receivable representing deferred payments on all real estate sold by the Board prior to the enactment of the law of May 16, 1879; and third, proceeds of all sales of lands not belonging to the permanent fund-as lands heretofore purchased by the Board for school sites, and not improved. Thus, during the past year, the receipts and disbursement of this fund were as follows:

Total Cash and Bonds in Fund August 1, 1881, $37,267 61

The following statement will show the amount expend

ed by the Board for new school sites and school buildings during each year, from August 1, 1863 :

For the year ending August 1, 1864,

$7,702

It will be seen from the foregoing table that during the past three years, but a small amount, comparatively, has been expended in providing new school accommodations, and to this fact is doubless largely due the improved financial condition of the Board. The total seating capacity of the schools owned and rented by the Board was 42,560, and the average number belonging to the day schools during the past year was 37,877, and from this point of view alone, the present accommodations would seem to be ample. But this is not the only consideration. The city has a widely-extended area, some portions thinly settled, and school facilities of rural or suburban character are required in a large section. Some of our schools are unfortunately located, and the shifting of population constantly going on, causes some

of the schools, particularly in the western part of the city, to be overcrowded. These conditions, and the conflicting and sometimes unreasonable demands of local interests render this question one of the most embarrassing in our school management.

During the past year the Board contracted for the erection of a twelve room building on the site owned by the Board on the corner of Bell street and Channing avenue in the western part of the city, and a six-room building on Wyoming street and Jefferson avenue, in the southern portion of the city. A site was purchased at Lowell, and preparations made for erecting a six room building thereon. A site was also purchased at Cheltenham. The Board is now advertising for a school site for the erection of a twelve room building in the north-western section of the city, west of St. Louis Park. A two room building, known as the Arlington School, near Rinkleville, was finished during the year.

The balance on hand in Building Fund, Aug. 1, 1881, was $37,266.61. In addition, the Board has appropriated from revenues of present year, the sum of $50,000, making a total of $87,267.61, which, it is believed, will be sufficient for completion of all the buildings above named.

The buildings thus now, or about to be erected will meet all pressing immediate wants. At an early date, however, the growth of the southwestern part of the city will require new accommodations in the Compton Hill district, and it would be a wise policy for the Board to secure an eligible site as soon as practicable. Before the beginning of the school year of 1882-3, some provision must be made in view of the sale of the old and badly located Gamble School. This want can probably be supplied by erecting an addition to the New Madison School or to the Laclede School, and redistricting, if necessary. This district, now supplied in part by the Gamble School, is largely occupied by business property and is not increasing in population, and it would be diffi