The increase in expenditure has been entirely in the work done upon
the field; the cost of agencies and administration being less this
year than last. This increase has been mostly in the Southern field,
and has been imperatively demanded by the natural growth of the work.
Very little new work has been undertaken, four new schools only being
added during the year; but the schools already organized have grown
in size and therefore in expense. Eleven hundred and twenty more
pupils are in attendance than one year ago, an increase of over 12
per cent. This has required the employment of twenty additional
teachers.

Friends of the Association have added new buildings at some of the
schools, and these new buildings, greatly needed and greatly
increasing the effectiveness of the schools, also bring increased
expense. The churches and schools of the Association are doing all
they can for their own support. The spirit of self-help is constantly
encouraged among them, but they are too poor to bear any considerable
part of the expense.

The Association must therefore meet one of the three following
alternatives: First, the growth of its work must cease, and the
increasing number of pupils who apply to its schools year by year be
denied admittance; or second, some of the schools which have been
fostered by the Association for years must be abandoned, that funds
may be left to strengthen and develop the remainder; or third, the
churches and Christian givers of America must largely increase their
gifts to this Association to meet its increasing wants.

The work of the Association for the coming year cannot be efficiently
carried on without increased appropriations; $300,000 is the smallest