TABLE 15.-For vocational agriculture: Amount sent to State during the fiscal year 1917-18, amount expended during the year, and unexpended balance in State treasury June 30, together with allotment and amount to be sent during the fiscal year 1918–19.

TABLE 16. For trade, industry, and home economics: Amount sent to State during the fiscal year 1917-18, amount expended during the year, and unexpended balance in State treasury June 30, together with allotment and amount to be sent during the fiscal year 1918-19.

Amount for trade, industry, and home economics, for fiscal year ending June 30.

TABLE 17. For teacher training: Amount sent to State during the fiscal year 1917-18, amount expended during the year, and unexpended balance in State treasury June 30, together with allotment and amount to be sent during the fiscal year 1918-19.

APPENDIX A.

REGULATIONS COVERING THE ADMINISTRATION OF THE VOCATIONAL EDUCATION ACT.

One of the first tasks of the Federal Board was dealing with problems of organization and with the initial tasks of inaugurating its cooperation with the States. At various conferences the purposes of the act has been discussed with particular reference to the general principles upon which it is based and to the methods by which these principles should be brought into practice. As a result of these conferences and much correspondence some preliminary and tentative policies were adopted for the administration of the act. Subsequent to the drawing up of these policies other conferences and additional correspondence has made necessary additional interpretations and formulation of policy.

PART I.

I. STATE BOARDS ARE TRUSTEES1 FOR THE FEDERAL MONEY.

They not only are agents for the State in carrying on work in vocational education, but they are also trustees of Federal moneys, As such they are responsible to the Federal Government, through the Federal Board, for the proper expenditure of such funds in conformity with plans submitted by the States and approved by the Federal Board.

When a State accepts the provisions of the Federal act a cooperation is established between the National and State Governments under which the two boards act as agents, respectively, for the Nation and the State. It is

the appropriation for the salaries of teachers, supervisors, or directors of agricultural subjects and of teachers of trade, home economics, and industrial subjects shall be devoted exclusively to the payment of salaries of such teachers, supervisors, or directors having the minimum qualifications set up for the State by the State board, with the approval of the Federal Board for Vocational Education." (Sec. 9.)

216 That whenever any portion of the fund annually allotted to any State has not been expended for the purpose provided for in this act, a sum equal to such portion shall be deducted by the Federal Board from the next succeeding annual allotment for such fund to such State." (Sec. 15.)

"That the Federal Board for Vocational Education may withhold the allotment of moneys to any State whenever it shall be determined that such moneys are not being expended for the purposes and under the conditions of this act • • (Sec. 16.)

"That if any portion of the moneys received by the custodian for vocational education of any State under this act, for any given purpose named in this act, shall, by any action or contingency, be diminished or lost, it shall be replaced by such State, and until so replaced no subsequent appropriation for such education shall be paid to such State ." (Sec. 17.)

"That in order to secure the benefits of the appropriations provided for in sections 2, 3, and 4 of this act, any State shall, through the legislative authority thereof, accept the provisions of this act and designate or create a State board, consisting of not less than three members, and having all necessary power to cooperate, as herein provided, with the Federal Board for Vocational Education in the administration of the provisions of the act." (Sec. 5.)

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understood that the Federal funds will be sent continuously from year to year for the support of the joint enterprises as long as the State observes the terms of the cooperative agreement. It is further understood that from time to time the terms of this agreement may be changed or modified upon the initiative of either party and upon mutual consent.

II. SPECIFIC DESIGNATION OF CUSTODIAN BY STATE LEGISLATURE.

It will be noted that the vocational education act does not prescribe that a State treasurer shall, after the passage of the act, be appointed as custodian of Smith-Hughes funds. In enacting this provision it is evident that it was the intent of Congress' that in every State the State treasurer must be empowered and obligated to receive and disburse the Federal moneys allotted to the State. A general State statute imposing upon the State treasurer the duty of receiving and accounting for all moneys received by the State, even if passed before the enactment of the Smith-Hughes Act, will therefore, as a general proposition, in the opinion of the Board, comply with the intent of Congress in this respect. To hold otherwise would require that the State legislature merely enact in a different form a provision of law already appearing in the State statutes. In cases, therefore, where the State treasurer is designated by a general statute as custodian of all State funds coming ino the custody of the State the Federal Board will not require a special enactment.

III. ACCEPTANCE OF THE ACT BY A GOVERNOR,

In the absence of evidence to the contrary the acceptance by the governor of the provisions of the act should be deemed to be an acceptance of all the funds.

IV. PRINCIPLES UPON WHICH FEDERAL MONEYS ARE DISTRIBUTED.

The Federal Board believes that the following fundamental principles should govern the appropriations from the National Government to the States for Vocational education. The money is designed:

1" That there is hereby annually appropriated, out of any money in the Treasury not otherwise appropriated, the sums provided in sections 2, 3, and 4 of this act, to be paid to the respective States for the purpose of cooperating with the States in paying the salaries of teachers, supervisors, and directors of agricultural subjects, and teachers of trade, home economics, and industrial subjects, and in the preparation of teachers of agricultural, trade, industrial, and home economics subjects which sums shall be expended as hereinafter provided." (Sec. 1.)

NOTE. References in footnotes are to sections of the Smith-Hughes Act.

2" That in order to secure the benefits of the appropriations for the salaries of teachers, supervisors, or directors of agricultural subjects, or for the salaries of teachers of trade, home economics, and industrial subjects, or for the training of teachers as herein provided, any State shall, through the legislative authority thereof, appoint as custodiau for said appropriations its State treasurer, who shall receive and provide for the proper custody and disbursements of all money paid to the State from said appropriations." (Sec. 13.)

In any State the legislature of which met in 1917 and failed for any reason to accept the provisions of the vocational education act, as provided in section 5 of said act, if the governor of that State, so far as he is authorized to do so, shall accept the provisions of said act and designate or create a State board of not less than three members to act in cooperation with the Federal Board for Vocational Education, and shall designate the State treasurer as custodian for all moneys allotted to that State under said act, the Federal Board shall, if such legislature took no adverse action on the acceptance of said act in 1917, recognize such State board for the purposes of said act until the legislature of that State meets in regular session in due course and has been I session 60 days." (Public, No. 64, 65th Cong.)