quarter the
disbursements of the Association are carefully examined by the
Auditors, two responsible business men, who go over and verify the
accounts item by item. The Treasurer and other officers of the
Association are to be especially commended for the thorough and
business-like methods which prevail in the conduct of their business.

The invested funds of the Association amount to $230,375.78, yielding
an income last year of $10,936.46. These funds are chiefly invested
in mortgages in the city and State of New York and in Government
bonds. In view of the forgeries of real estate mortgages recently
discovered in New York City, the mortgages of the Association in New
York and Brooklyn have, at the request of the attorney of the
Association, been personally examined by a member of the Finance
Committee and all found to be valid and correct. An examination of
the schedule of securities held by the Association shows that there
is not a single poor investment among them, or one on which the
interest is in default.

Besides the invested funds the Association owns real estate in
various Southern States and in the Northwest to the value of
$600,274. This is the working plant of the Association. The
buildings, apparatus and fixtures upon this property are protected by
insurance.

The expenditures of the Association during the past year have been
$328,788.43. This is an increase over the expenditure of last year.
The Association commenced the year with a balance of $2,193.80; it
closes the year with a debt of $5,641.20. It has therefore spent
$7,835.01 in excess of its receipts. This debt is to be greatly
regretted, for it should be the policy of the Association to plan its
work in accordance with the funds at its disposal. They are obliged,
however, to make their plans partly on faith, and it is not to be
expected that their faith will always exactly measure the benevolence
of the people.

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 ove