st with the report that the President has asked for,
the Treasurer's report.

I imagine that you are uninterested in an itemized, detailed report of
receipts and expenditures; I imagine you are interested in the question:
How are we doing? We are not doing too well. The annual report for this
year indicates that our financial condition is not satisfactory. For the
second successive year we have spent more money than we have taken in,
and that would be the third successive year, if it hadn't been for the
fact that due to the lateness of the publication in 1950--that it, the
annual report--we did not pay for an annual report that year. That means
there are three years in a row that we have gone downhill.

The picture is not entirely black, however. There are some bright spots.
For instance, all our bills are paid. Second, we have money in the bank.
Third, our $3,000 investment in Government bonds is still intact, and
fourth, our deficit this year was less than it was last year, which may
indicate that we have already touched bottom and are starting up.

The cause of our deficit is easy to put your finger on. We are operating
on budgets that are ten years old, and costs have gone way, way beyond.
Dues were increased several years ago, but even at that time they were
not increased adequately, and since then costs have skyrocketed.

The membership situation is not too bad, though the cost situation is
bad. The two don't jibe at all. The reason we have a lesser deficit this
year than last is Mr. Best's work and the work of his vice-presidents in
increasing the membership, and the results of that work; I think, have
only begun to show.

Specifically, we came within $417 of collecting enough money this year
to pay our expenses. It was over $500 last year, making a total of a
thousand dollars that we have spent above our receipts. While we have
some money in the bank, there will be a bill due in about 30 days on the
publication of the annual report, that will be mailed within the next
few days. And that will take all the money that is in the bank, plus
what we are able to collect in dues immediately, and I hope that many of
them are paid at once. But that still leaves us without money to operate
through the year, and by January, unless conditions change, we will be
borrowing money.

The Board of Directors has discussed this. They have some thoughts on
the subject which will be presented to you by Dr. MacDaniels. I think
th