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496

"If these are problems, they are the kind of problems that bring in-
creased opportunities. No one denies that it is a paramount responsibility
of the University wisely to adapt to changed social needs and constructively
to guide and influence cultural, economic, and social progress. It was in
this concept that the consolidation of the University was first brought about,
that in 1963 consolidation itself made changes to increase the educational
offerings and make them available to more students on the three campuses.
Indeed, consolidation has not become an effective instrument of adaptation
to the changed conditions faced by universities. Its usefulness for combin-
ing liberal, and technical resources, for facilitating inter-indsitutional
cooperation, for concentrating limited public financial support for
maximum effect, are evident.

"But there are problems of another order, problems which are not
necessarily inherent in the process of constructive change. These challenge
the leadership of the University and the state because their success in
reducing them or eliminating them altogether is a measure of their success
as leaders.

"One of these is the assurance of continuing and sufficient financial
support. I have repeatedly stated the splendid record of North Carolina for
financial support to public education and higher education in particular.
Education receives an extraordinarily large proportion of the state's budget.
One could scarcely ask for more. But it is a certainty that appropriations
of an increasingly larger order will be needed to keep the University at its
accumstomed strength and, more important, to augment its capacity to
enrich the state. The problem is one of planning for a continuing rise in
the cost of a first-rate university. There is no such thing as a first-rate
university with a second-rate faculty. The best come high. How does the
University of North Carolina stand today?

"The most recent national study of faculty salaries reveals that under
our most favorable circumstances, currently we stand 29th among the 38
Association of American Universities listed institutions.

"Salaries ar important, but they are not all that is important.
Libraries and laboratories, books and scientific equipment are necessary.
The output of essential publications is growing at a geometric rate. The
cost of essential scientific equipment is such that it is very doubtful that
even an affluent society can afford more than a very limited number of first-
class research institutions, and inter-institutional cooperation for scientific
research has become absolutely necessary.

"To have a great university, it is necessary that the authority to
administer it be vested appropriately in its faculties, its administrative
officers, and its trustees. Historically, the University of North Carolina
has been favored in this respect. But greater latitude and freedom will be
required if efficient utilization is to be made of the funds which are supplied
to us.

"Freedom has another dimension, the importance of which is paramount
among the factors making it possible to have a true university and a reputable
faculty. I refer to the right of educational institutions to be free of restric-
tions upon freedom of inquiry, freedom of public debate, and publication.
Having discussed a specific infringement of this at our October meeting, I
shall not dwell on it here other than to reiterate that it has obvious and
serious implications for the authority and, hence, the usefulness of the
Board of Trustees.

"Among the many facets of our subject of discussion, perhaps the most
important is the opportunities that lie unclaimed before us. I have spoken
of assets, of problems. The reason for the University's existence is to
provide intellectual leadership, to provide leadership in education as basic
to all other leadership and progress.