REPORT OF THE EXECUTIVE COMMITTEE TO THE BOARD OF TRUSTEES OF THE CARNEGIE ENDOWMENT FOR INTERNATIONAL PEACE: In compliance with Article VII, Section 3, of the By-Laws, the Executive Committee submits the following report for the preceding year: Since the last annual meeting of the Board on April 21, 1916, the Executive Committee has met on the following dates: April 21, May 20, October 27, and November 27, 1916, January 4, February 23, and March 15, 1917. The minutes of these meetings, showing in detail the actions and resolutions of the Committee, have been sent regularly to each member of the Board by the Secretary. The Trustees have likewise been regularly supplied with the reports of the Treasurer made and submitted to each meeting of the Executive Committee pursuant to Article VI, Section 1, of the By-Laws. Special Meeting of April 19 The members of the Board have been duly informed by the Secretary of the action of the Executive Committee in again postponing the November meeting of the Board because in the view of the Committee the reasons which led the Trustees to agree with the Committee's view that it was inexpedient to have an autumn session of the Board in 1915 applied with even greater force in the year 1916. Before postponing the meeting, however, the Executive Committee submitted the question to a vote of the Trustees, with the result that twenty Trustees expressed themselves in favor of omitting the meeting, six as opposed to omitting the meeting, and two not voting. In view of the opinions expressed by six Trustees upon the question of holding a semi-annual meeting and in view of the fact that the time for holding such a meeting had passed before the vote of the Board could be completed, the Executive Committee directed that a special meeting of the Board be called in Washington at two o'clock on the afternoon of Thursday, April 19th, the day before the regular annual meeting, the said special meeting to be devoted to the discussion of such subjects as the Trustees may suggest. The Secretary has duly notified the Trustees of the call of this special meeting, and, pursuant to the further direction of the Committee, he has communicated with the Trustees in order to ascertain the subjects which they desire to have placed upon the program for discussion. The suggestions which have been sent in reply to this communication have been included in the program of the special meeting. Allotments for the Fiscal Year Ending June 30, 1917 For the fiscal year ending June 30, 1917, the Board made appropriations amounting to $639,370. From them the Committee has, up to the present time, made allotments amounting to $548,198.80. The full amounts estimated and appropriated for the Secretary's office and Library and Year Book have been allotted by the Committee in exact accordance with the several items which make up the estimates. The same is true of the amounts estimated, appropriated and allotted for the Division of Intercourse and Education, except minor readjustments in the amounts of several of the items, and the allotment of one item of $2,000 not included in the appropriation. The Committee has not found it advisable to allot more than $87,500 for the Division of Economics and History, leaving a balance in that appropriation of $28,500. For the Division of International Law, the sum of $126,300 was appropriated and the Committee has allotted $124,456.67. To provide for items specifically included in the estimates for that Division, the sum of $101,815.01 was required; work chargeable to the contingent fund of the Division was authorized to the amount of $15,000, and additional items amounting to $7,641.66, were also provided for from the unallotted balance in the appropriation. From the emergency appropriation of $110,000, allotments amounting to $49,172.13 have been voted by the Committee. The financial statement appended to the Secretary's report gives a chronological list of all the allotments made during the current fiscal year and compares them with the amounts estimated by the administrative officers and appropriated by the Board of Trustees. It will be noted from this comparative statement that the Executive Committee has made several allotments for work during the current year from the unallotted balances of appropriations for the fiscal year ended June 30, 1916. These balances, according to the fiscal policy of the Endowment, remain available for use until June 30, 1917. Income Available for Appropriation Notwithstanding that there is an unallotted balance in the 1917 appropriations of only $91,171.20, the report of the Treasurer shows that of the $548,198.80 allotted, disbursements have actually been made from them amounting to only $239,999.17, leaving an unused balance of $308,199.63, or considerably over one-half of the amount allotted. The Treasurer's report also shows that there is an unallotted balance of $81,068.63 in the appropriations for the fiscal year 1916, and that of the 1916 allotments there still remains unexpended a balance of $43,216.84. From these figures, and taking into consideration the amounts which it is estimated will be expended from the present balances of allotments, it appears that approximately the following sums will be available for possible appropriation by the Board at its present meeting: Balance of unappropriated income, June 30, 1917... $124,957.96 ment until June 30, 1917). .... . 81,068.63 Unexpended balance of 1916 allotments.. .$ 43,216.84 Less amount which it is estimated will be used. 10,000.00 33,216.84 Unallotted balances of 1917 appropriations (subject to allot- Unexpended balances of 1917 allotments.... ..$308,199.63 Interest on the endowment for the ensuing fiscal year... Interest on bank deposits for the ensuing fiscal year (estimated) ... 91,171.20 141,368.62 500,000.00 12,000.00 TOTAL.... $983,783.25 Estimates of Requirements for Appropriation in the Fiscal Year of 1917-18 The estimates of requirements for appropriation for the ensuing fiscal year recommended by the Executive Committee, which have been mailed by the Secretary to each member of the Board, call for a total appropriation of $836,495, being an increase of $197,125 over last year's appropriations. The largest single item in the present estimates is the sum of $250,000 recommended for appropriation to meet unforeseen emergencies. This one item represents an increase of $140,000 over the amount provided last year. The increase is due to the uncertainties of the international situation and consequently of the demands that may be made upon the Endowment. Minor increases are recommended in the appropriations for administration, Library and Year Book, and the Division of Intercourse and Education. A decrease is recommended in the appropriation for the Division of Economics and History, and a substantial increase for the Division of International Law. A perusal of the detailed explanations of the items making up the estimates, which are given in the report of the Secretary and accompanying reports of the Directors of the Divisions, heretofore sent to the Board pursuant to Article V, Section 2, of the By-Laws, will show that the estimates for next year do little more than provide for a continuation of the work and projects approved by the Board last year. In some cases, the amounts asked are less than the amounts appropriated last year, while, in a few cases, it has seemed advisable to recommend slight increases over the sums heretofore provided; but the average amount of the appropriations, except for the Division of International Law, is about the same as the appropriations for last year. The increase in the estimates for the Division of International Law is caused by the increased amount recommended for printing, to cover the increased publishing activities of the Division, due to the completion of many works projected in previous years, and by the amount included for the Classics of International Law, the publication of which was transferred by agreement on January 1, 1917, from the Carnegie Institution of Washington to the Endowment. Although the amount of the appropriations would seem to indicate that the Endowment's operations are in full swing, and the estimates have been prepared each year with a view to the possibility of the return of conditions which would allow of their full use, the actual expenditures show, as a matter of fact, the extent to which the war has curtailed the Endowment's activities and is likely to continue to interfere with them until it is over. During the fiscal year 1916 the expenditures totaled $569,273.15, and this total included several extraordinary expenditures, such as the $100,000 expended in bringing guests to the Second Pan American Scientific Congress, held in Washington under the auspices of the Government in December, 1915, and January, 1916, and the $20,000 expended for the presentation of a North American library to Argentina. During the nine months which have elapsed of the present fiscal year, the actual expenditures from both 1916 and 1917 allotments amount to $344,862.56. In the expenditures for the current year is included the sum of $31,000 contained in the appropriation for the Division of Intercourse and Education under the heading "Other subventions in the United States," the allotment of which was left to the discretion of the Executive Committee. The Committee decided to continue for the present year the subventions heretofore granted under this heading to the American Peace Society and the New York Peace Society. In the estimates for the ensuing year, however, the amount previously granted to these societies has been transferred to the contingent fund of the Division of Intercourse and Education, and should appropriation be made in this form, the Executive Committee will not be prepared to reallot the subventions to these two societies without the direction of the Trustees. Resolutions Submitted for Approval of the Trustees To carry out the recommendations which have been approved by the Committee and printed in tabulated form in the statement of requirements for appropriation, the following resolutions are submitted for adoption by the Board: Resolved, That the sum of forty-five thousand, one hundred and ten dollars be, and it is hereby, appropriated to be expended under the direction of the Executive Committee during the fiscal year ending June 30, 1918, for the purposes of administration, and charged to the current income for that year. Resolved, That the sum of twelve thousand, four hundred and forty dollars be, and it is hereby, appropriated to be expended under the direction of the Executive Committee during the fiscal year ending June 30, 1918, for the purposes of the library and the publication of the Year Book, and charged to the current income for that year. Resolved, That the sum of two hundred and thirty-five thousand dollars be, and it is hereby, appropriated to be expended under the direction of the Executive Committee during the fiscal year ending June 30, 1918, for the Division of Intercourse and Education, and charged to the current income for that year. Resolved, That the sum of one hundred thousand dollars be, and it is hereby, appropriated to be expended under the direction of the Executive Committee during the fiscal year ending June 30, 1918, for the Division of Economics and History. Resolved, That the sum of one hundred ninety-three thousand, nine hundred and forty-five dollars be, and it is hereby, appropriated to be expended under the direction of the Executive Committee during the fiscal year ending June 30, 1918, for the Division of International Law, and charged to the current income for that year. Resolved, That to meet unforeseen emergencies as they arise during the fiscal year ending June 30, 1918, the sum of two hundred and fifty thousand dollars be, and it is hereby, appropriated, as a separate fund from the unappropriated balance of the income of the Endowment, to be specially allotted by the Executive Committee in its discretion. In addition to the foregoing resolutions, the Committee submits the following resolution, approved by it on January 4, 1917, after consideration of the previous efforts of the Endowment in behalf of the establishment of an international court of justice, the general recognition of the necessity for such a court now prevailing, and of the obstacles still in the way of the establishment of such a court: Resolved, That the Carnegie Endowment for International Peace shall make a special effort to overcome the remaining obstacles to the establishment of an international court of justice, and to this end the Executive Committee is authorized and directed to take such action and at such time as it may deem proper. Resolved further, That the sum of or so much thereof as may be necessary, be, and the same is hereby, appropriated for the purpose of effectuating this resolution. The amount to be appropriated for the purpose indicated is left to the determination of the Trustees. Pursuant to the directions of the Committee, the Secretary has heretofore brought to the attention of each Trustee the resolution unanimously recommended by the Executive Committee at its meeting on February 23, 1917, for adoption by the Trustees at the present meeting. There has been a radical change in the international situation since the resolution was drafted, but it is nevertheless formally brought to the attention of the Trustees for such action by way of adoption, amendment or substitution as the Board may consider appropriate. The text of the resolution is as follows: Resolved, That the Carnegie Endowment for International Peace has no part in any effort to prevent or hinder timely and adequate preparation of the |