The Debt of the Board of Foreign Missions of the Methodist Episcopal Church As of October 31, 1924 CORRESPONDING SECRETARIES RALPH E. DIFFENDORFER JOHN R. EDWARDS SECRETARY—COUNSEL FRANK MASON NORTH Board of Foreign Missions Of ttc METHODIST EPISCOPAL CHURCH 150 Fiftk Avenue NEW YORK CITY CABLE ADDRESS. MISSIONS PHONE, CHELSEA 213Q PRESIDENT BISHOP LUTHER B, WILSON VICE-PRESIDENT FRANK A. HORNE TREASURER MORRIS W. EHNES To THE Members of the Methodist Episcopal Church : At the Annual Meeting of the Board of Foreign Missions, held in Pittsburgh, Penna., November 17-19, 1924, the Corresponding Sec¬ retaries and Treasurer presented the financial situation of the Board as they found it in the fiscal year just closed. The Board directed, upon the recommendation of the Secretaries, that these facts be laid before the Church in a frank and adequate manner. The pages which follow, all of which are reprinted from the last annual reports of the Secretaries and Treasurer, tell the story. One of the guests and speakers at the Annual Meeting of the Board said that ^‘the Board of Foreign Missions faces the greatest crisis in its history; shall we not say it confronts a catastrophe?” Even these strong words cannot describe the heartbreak that went around the world when the cable messages told the mission fields everywhere of the reduced appro¬ priations and the added debt. We ask you to read and study these statements carefully. If there is any point which you do not understand, please write the Secretaries for any explanations or additional information desired. We will also make it possible for you to cooperate with us in an endeavor to bring the Church to a sympathetic understanding of this situation by offering the following: (1) Additional copies of this printed statement may be had upon request. (2) A more detailed and a complete statement will be found in the Journal of the Annual Meeting. Single copies of this will be sent upon request. This contains the minutes, the Secretaries’ and Treas¬ urer’s complete reports, actions of the Board, resolutions, and appro¬ priations. Please ask for the “Journal of the Annual Meeting, 1924.” We appeal for your continued prayers and support for the new and greater day for our Church as an agency for the spread of the Gospel of Jesus throughout the world. Fraternally yours, Ralph E. Diffendorfer, John R. Edwards, Corresponding Secretaries. Morris W. Ehnes, Treasurer, THE DEBT OF THE BOARD OF FOREIGN MISSIONS On October 31, 1923, the total debt of the Board was $2,247,- 951.21. The fixing of this amount was the result of long and careful deliberation on the part of the Finance Committee of the Board, and after much discussion was approved by the Board itself. This figure was submitted to a special committee of the General Conference on the debt, which committee changed the Board’s figure by transferring an item to quick assets which the Board had considered a slow asset, and finally set the debt figure at $2,003,056.00. There have been during the year certain routine adjustments and certain credits like the watch campaign and payments by the Woman’s Foreign Missionary Society on the Interchurch World Movement underwriting, and more recently the Finance Committee of the Board transferred an item, formerly considered only a resource, to an asset. Then there must be added the current work deficit of the present year, and additional loss in exchange. These additions and subtractions give a total figure for the Board’s debt on the General Fund account as $2,972,523.70. To this amount there must be added advances made many years ago from the Permanent and Annuity Funds as fully explained in the Treasurer’s Report. The advances from the Per¬ manent Funds are $102,739.24; and the advances from the Annuity Funds, less the amount of designated annuities, are $26,067.33. When these two figures are added to the debt on the General Fund account, we have a total debt of $3,101,330.27. This means that the Board now has an actual debt almost as large as its income for 1924. It must be remembered, however, that in a hundred years of financial dealings with the banks and trust companies of the City of New York none of them has ever lost a cent of either interest or principal as a result of dealings with the Board of Foreign Missions. This history and the investment of twenty millions of dollars in property abroad, together with the integrity and goodwill of the Methodist Episcopal Church produces a Gibraltar-like credit in a going concern. CENTENARY EXPANSION Since the Centenary period is closed, it will be well for the Board to consider the trend of its financial affairs in the last six years. At its meeting in November, 1918, the Board reported $1,967,552.47 dis¬ bursements to the Mission Fields. By that time the Centenary Promo¬ tional Campaign was in full swing. Some of the churches had already taken subscriptions, and during the first six months of 1919, the five- year subscription had been made and reported to the General Con- 3 ference at Des Moines in 1920, as $115,003,375. By the end of the fiscal year, October 31, 1919, the Board felt the effects of the increased giving, the income being more than twice that of the preceding year. The Board then inaugurated its enlarged program throughout the world, a program which was again increased in 1920, as the disburse¬ ments figure will show, when we had our first full year of Centenary income. This enlarged program was anticipated by the Church and was necessary in order to keep faith with the purposes and ideals of the Centenary Movement. It was expected that expansion would be both in pei*manent investments in property and equipment, and also in working force, both of missionaries and of nationals. It was definitely understood by our leaders at that time that at the end of the Centenary period, the Board’s current work program should not be more than double the pre-Centenary period, even though the re¬ ported Centenary subscription indicated an income four times that which the Board had received in pre-Centenary years. Each year the Board has made its appropriations with this fact in mind. The dis¬ bursements last year for current work purposes were approximately $50,000 more than double the disbursements of 1918 for the same purposes. Considering the increased costs of all items entering into this account it will be seen that this policy has been carried out with just faithfulness. The presentation of the matter of the debt in further detail follows under three headings: 1. Causes of the Board’s Debt. 2. How the Board’s Debt is Financed. 3. Supplemental Information. CAUSES OF THE BOARD’S DEBT The obligation of maintaining this enlarged missionary program is the background in which the Board’s debt must be considered. Out of these increased funds, in addition to the disbursements to the field, there were a number of unusual expenditures all of them authorized by the proper agencies. It is well now that these should be reviewed. I Pre-Centenary Expense The Board had incurred a pre-Centenary expense of surveys, official meetings, education and promotion leading up to the five-year subscription. This item is known in the Treasurer’s Report as ‘‘For¬ eign Board Centenary Expense.” The amount is $515,233.08. It is fully accounted for in the Treasurer’s report of October 31, 1919, and shows that this amount represents the costs of deputations, cultivation of the foreign fields; administration; equipment and rent; the expenses of missionaries engaged in Centenary activity; publicity, literature, and other items. It represents that part of the pre-Centenary expense which belonged exclusively to the Board of Foreign Missions, This total was paid in full in 1919, 4 2 The Columbus Celebration The Columbus Celebration was held June 20 to July 13, 1919, as the official celebration of the one hundredth anniversary of the organization of Methodist Missions. In this enterprise, the Meth¬ odist Episcopal Church, South, joined the Committee representing the Board of Foreign Missions and the Board of Home Missions and Church Extension. It was expected that the gate receipts and other income from the Columbus Celebration would pay its expenses. When the final reports were made, however, it was found that this Board’s share of the deficit of the Columbus Celebration was $367^276.39. Part of this was paid in 1921 and the balance in 1922. 3 The Interchurch World Movement In the meantime the Interchurch World Movement was launched. Our Board at its Annual Meeting on December 8, 1919, authorized the Executive Committee to make arrangements for under¬ writing the Interchurch World Movement with the provision that ‘'such sum shall not exceed the total amount of $750,000.” On the basis of what seemed to the Executive Committee a sufficient guar¬ antee on the part of the Woman’s Foreign Missionary Society, and in view of the fact that the Board is required by the General Con¬ ference to pass on appropriations of the Society, the Executive Com¬ mittee on March 31, 1920, authorized the further underwriting of the Interchurch World Movement on behalf of the Woman’s Foreign Mis¬ sionary Society, of $300,000. A payment of $100,000 was made on this account in 1922 and $650,000 was paid in 1923. The Woman’s' Foreign Missionary Society has paid $93,488.80 of its underwriting and hopes to pay the balance in 1925. 4 Loss in Exchange The next item deals with exchange. During and after the war in certain parts of the world, especially in China, exchange turned against us. The mission treasurer in China, in normal times, could exchange $100 in gold for $200 Mexican, the silver standard in Chinese currency and the average rate would probably be higher than two to one. On this basis the finance committees and the missionaries plan expenditures. When the exchange begins to drop, he buys less Chinese currency. In China, exchange dropped during and after the war until $100 gold bought $100 Mexican and once only eighty-five Mexi¬ can dollars. For the missionary treasurer, this is the same experi¬ ence as if any man of this Board deposited an amount in the bank and got an entry of one-half or less than one-half of the amount. When this situation is applied not only to salaries, but to all building opera¬ tions and to all contracts made for current expenses and equipment, the Board was faced with the necessity of either making up the differ¬ ences from funds in New York or asking the fields, including the 5 missionaries themselves, to carry this loss. The Board decided to advance the difference, with the result indicated in the Treasurer's Report. This was the procedure followed by other Mission Boards and international business concerns. Payments were made on this account in 1919, 1920, 1922 and 1924. A more detailed statement is found on page 15. 5 Benson Springs Inn During the Centenary period there came into the possession of the Board certain properties in the United States, namely, Benson Springs Inn, in Florida, Mountain Lake Park in Maryland, Attleboro Springs in Massachusetts, and Wallace Lodge in New York. For our purpose here we need to record that one of these properties has been sold, Benson Springs Inn, which was held jointly with the Board of Missions of the Methodist Episcopal Church, South, at a loss of $13,- 946.20. This Benson Springs Inn item was paid in 1923. 6 Centenary Cultivation During all these years Centenary income was carrying the general promotional expenses. The promotional expenses of the Cen¬ tenary from the beginning down to June i, 1919, the Board of Foreign Missions and the Board of Home Missions and Church Extension paid jointly. Our Board's share, $1,966,439.86, had to be carried as bor¬ rowings from the banks until Centenary moneys had been received. In the year 1919, this obligation was cleared off out of the receipts. After June i, 1919, upon the organization of the Centenary Con¬ servation Committee, the expenses of this promotional organization were taken out of the Centenary income before the disbursements were made to the various Boards. The total amount of this promo¬ tional expense up to May 31, 1920, was $1,698,586.60. By authorization of the General Conference held in Des Moines in May, 1920, the Council of Boards of Benevolence was created, with its promotional agency known as the Committee on Conserva¬ tion and Advance. The expenses of the Council of Boards and its various committees were deducted from Centenary income before dis¬ bursements were made to the Boards. During the last quadrennium these expenses amounted to $3,736,249.90. The income of our Board was reduced by 47.86 per cent of these amounts, which was its pro¬ portionate share. These promotional expenses up to and including the Centenary period were a factor in the total distribution of Centenary funds, and constitute what has usually been called “Overhead Expenses," the cause of a good deal of discussion and misapprehension in the Church. There are some who say that if this money had not been spent, we would have had it available for work. Others say that if it had not been spent, we would not have received as much from the churches. These two “ifs" rather neutralize each other. 6 7 Interest It will be noted also that during the five years, 1919-1924, the Board paid out a total of $640,345.51 in interest charges. The larger part of this is due to the Board’s heavy debt obligations. Some of it is due to the recurring interest charges on account of the failure of the churches to send their money regularly, necessitating large borrowings from the banks to pay current bills and appropriation items. All interest charges have been paid annually. 8 War Emergency and Reconstruction It will be recalled that a War Emergency and Reconstruc¬ tion appeal of $5,000,000 was added to the total regular askings and made a part of Centenary financial goals. One half of this asking was for the Board of Foreign Missions, and in addition there was an item of $400,000 in the regular program for Europe. These askings were made in order that our Church might fulfill its obligation for these needs during and after the war. This appeal was a very important factor in the Centenary subscription, and the Board was quick to do its duty in those terrible days when the need was so acute in Europe. We interpreted “emergency” as having to do with providing food, clothing, shelter, and medical supplies; and “reconstruction” as in¬ cluding the more permanent items of property, equipment and working force that were sure to arise during the days following the war. Approximately two and one-half million dollars were sent to Europe on this account, with the expectation that at the close of 1920 there would be sufficient income to carry the Board’s regular appro¬ priation and to pay off these European advances. When, however, we came to the close of 1920 there was not enough to pay off all of these war emergencies and reconstruction advances. The Board was able to charge $1,153,656.81 in 1920 to the appropriation for war emergency and reconstruction; which together with the amount charged in 1919, namely, $186,448.17, make a total of $1,340,104.98 charged to the appropriation of these two years. These payments rep¬ resent all that was disbursed under the head of Emergencies as described above, except a balance of $83,366.35. This balance is carried as a part of our Loans and Advances to the Fields. 9 Loans and Advances to the Field Another item entering into the obligations of the Board is the Loans and Advances to the Field. Many years before the Centenary, it was the custom of the Board to loan money to the field for property purchases. Some of our most substantial properties on the field were financed in this way. During the days of the Centenary promotion, when it was apparent that the income of the Board would be increased, additional urgent property projects were financed by loans, the same to be made a 7 first charge against Centenary income. Practically all of these pre- Centenary and early Centenary loans were paid from early Centenary income. The few remaining, plus the amount of war emergency and reconstruction property advances, which could not be charged against appropriations now stand as loans from the General Treasury totaling $1,326,584.12, and are one of the chief causes of our present debt. All of the items were found in the surveys and were acknowledged parts of the Centenary program. They came up as individual items on the urgent presentation of the fields. They were carefully scrutinized by the Secretaries and placed before the Executive Committee for their study and action. In many cases, they were referred for further scrutiny to the Board’s Finance Committee before any advances were made. In addition, the Board created a special Commission on War Emergency and Reconstruction in Europe before whom these matters as to policy and fact passed in review. For a statement of these loans and advances see page 16. In presenting this situation, we are not passing judgment on former policies of the Board. There are strong and influential leaders of the Church who defended every one of these items. There are others who looked upon some of them as mistaken policies. Wartime psychology, confusion of counsel, and even the great victories which have been attained, may have been determining factors in policies and programs which now may be looked upon differently. In passing from the great and heroic Centenary days into the new program of World Service, it is our purpose as well as our duty to profit by these former experiences. Our steady purpose is to consider the past as an experi¬ ence for the future. 10 Current Work Deficit, 1924 In order fo explain more fully the- item of current work deficit referred to on page 3 of this statement, there is included here certain paragraphs from the report of the Treasurer. a. Receipts The total receipts for the fiscal year were $3,152,962.70. Com¬ pared with the previous fiscal year, $5,350,473.52, there is a decrease of 41.07 per cent. Our share of the Centenary and World Service receipts was $2,- ^30,835.32. Compared with the Centenary receipts of the last fiscal year, $4,596,919.20, there is a decrease of 42.77 per cent. The differ¬ ence between these figures and the amount reported as disbursed by the Chicago office is due to amounts paid by them which were placed in our Permanent Fund. It is interesting to note that our income in 1917-1918, the last pre-Centenary year, was $2,333,737.86, and that the income for this fiscal year is only $819,224.84 in excess of the income in 1917-1918. On the basis of the present purchasing power of the American dollar 8 compared with that in 1917, the value of the Board’s income is con¬ siderably less. When it is realized how the Board’s work has in¬ creased overseas, this year’s income as a basis for appropriations for next year will spell a heartbreak around the world. b. Disbursements The total amount of disbursements for the year just ended is $4,400,794.43. It will be recalled that the income last year was $5,- 350,473.52 and that the Board technically had a right to appropriate that much money. However it was known that some of that income would not be repeated this year, and, furthermore the Board wished so to arrange its appropriations that in case of decreased income the Board could close this fiscal year without additional debt. The appro¬ priations therefore were only $4,950,473. Furthermore, within this appropriation there was an item of $120,473 conditioned on the amount being received and an item of $500,000 for Board’s Obligations and Interest. Nothing was disbursed on these two items, except the interest. By this process, and by other savings, the total disburse¬ ments were kept down to the figure named. This would have pro¬ vided for a decreased income of 18 per cent. The Board, however, did not contemplate a decrease of 41 per cent in its income and did not provide for such a contingency, therefore we find ourselves with an increased debt over that of last year. This is the first time in recent years that we have had a current work deficit to add to our debt. The detailed figures are found on page 17, showing the total cur¬ rent work deficit of 1924 to be $1,247,831.73. SUMMARY In the interest of clearness let us summarize the above points. The following items have been paid in full—i. Pre-Centenary Expense; 2. The Columbus Celebration; 3. The Interchurch Under¬ writing; 5. Benson Springs Inn; 6. Centenary Cultivation; 7. Interest. Partial payments have been made on the following items—4. Loss in Exchange; 8. War Emergency; 9. Loans and Advances. The amounts remaining unpaid are— 4. Loss in Exchange, balance unpaid. $258,293.33 8. War Emergency and 9. Loans and Advances from the General Fund, balance unpaid. 1,326,584.12 10. Current Work Deficit, 1924. 1,247,831.73 Total Unpaid .$2,832,709.18 The difference between this figure and the total of the debt of the General Fund, $2,972,523.70, is $139,814.52. This represents a net balance between certain debit and credit items in the current working accounts, the details of which are found in the general balance sheet, and the undesignated annuity balance sheet. 9 THE CRUX OF THE WHOLE MATTER Let us go back now in our thinking to the enlarged program of Foreign Mission effort on which the Board launched at the beginning of the Centenary period in order to meet the purposes of the Cen¬ tenary and the expectation of the people who subscribed and paid Centenary funds. The Board’s present financial condition arises from the fact that it provided the funds for this enlarged program and at the same time attempted to remove these above mentioned obligations and to do both things on what proved to be a falling income. We ask the Board now to take these facts which have appeared previously in the official reports and other documents of the Board, and lay them frankly and adequately before the Church until they are fully understood. THE BOARD’S CONSTRUCTIVE POLICIES In reviewing the factors that have brought the Board to its pres¬ ent financial situation, it is only fair to state that during the Cen¬ tenary period there was inaugurated a constructive program which indicated wise and farsighted provision for the policies of the Board. A review of the Treasurer’s statements shows that every year conserva¬ tive appropriations were made. The authorizations for the first year of the Centenary period on account of War Emergency and Recon¬ struction in Europe, already noted, were made in that year because that was the time when the funds were needed. The Church had given them for that purpose, and the Church expected them to be used for that purpose. The advances were made on the theory that in that year at least the increased contributions were due to this special appeal. At no time, however, except in these particular advances, had ex¬ penditures exceeded appropriations, or appropriations exceeded income of the preceding year. The high level of disbursements was reached in 1920. Each succeeding year has seen a reduction in the disbursements to Foreign Mission Fields, for all purposes, the reductions being almost entirely on property items. In 1921 this reduction was 20.23 per cent; in 1922 it was 8.65 per cent; in 1923 it was 1.96 per cent; for 1924 it was 5 per cent, so that last year the disbursements to the field were 32.14 per cent below 1920, the highest year. During these years, in gifts designated for property and in actual appropriations for field projects, over two millions of dollars have been placed on the field in addition to the advances made to Europe for War Emergency and Reconstruction, referred to above. It must be remembered too that the Board met the strain upon its work by providing $915,027.17 loss in exchange. The extraordinary wartime increases in costs on every field and at home, amounting probably from seventy-five to one hundred per cent, were met by the increased income on account of the Centenary. 10 Without this additional income, our missionary forces could not have been maintained even at the pre-Centenary level. Other Boards, British and American, were obliged to withdraw missionaries from the field and to discontinue work. From the annual income every year an amount was set aside for debt. There has been an actual reduction of the debt of practically one and three quarters millions of dollars during this period. Had the normal expectation of income been realized, let us say seventy or seventy-^five per cent of the total announced subscriptions, > every dollar of debt would by this time have been paid, and our pro¬ gram on the field would have been reinforced and strengthened. The constructive policies of the Board, here intimated, would have found the Board at the end of the Centenary period free of debt, greatly strengthened in its equipment on every field, and prepared even on a materially reduced income to maintain the enlarged and ever-en¬ larging Foreign Missions program. HOW THE BOARDS DEBT IS FINANCED The foregoing statements deal with the causes of the debt. The figures given in the summary on page 9 do not mean that we owe the fields these fimds. The fields have had the money which has been borrowed to meet these payments. The following statement shows how these payments have been financed and there¬ fore represent the present debt of the Board. It is a simplified statement of our Resources and Liabilities, prepared by the Treasurer and the Finance Committee. It is as free as possible from bookkeeping terminology. The Board of Foreign Missions owes the following: I. AMOUNTS DUE OUTSIDE ORGANIZATIONS AND INDIVIDUALS: (a) Notes due Banks.$2,150,000.00 (b) Notes due individuals and organizations. 211,968.91 (c) Amounts due individuals. . . ^ 116,236.04 Funds placed with the Board for which no Notes have been issued. n. NOTES PAYABLE TO ITS OWN FUNDS: (a) Permanent Fund. 232,046.12 This amount has been borrowed from the Permanent Fund for the'use of the Current Account, Interest is paid on this note annually. In 1920, the Board directed the discontinuance of the policy of borrowing from the Permanent and Annuity Funds, which policy had been in_ effect for many years, and directed that these borrowed amounts be repaid as soon as possible. No additional funds have been borrowed from these accounts since 1920, and the Annuity loan has all been repaid. While it has not been possible, because of decreased receipts, to repay the loan from the Permanent Fund in full, during the fiscal year 1920-1921 1310,878.78 was paid on this loan, and in 1923- 1924 $33,641.78 was paid from Annuity surplus by direction of the Finance Committee. in. OUTSTANDING OBLIGATIONS: (a) Branch Treasurer’s Credits. 411,048.67 (b) Bills of Exchange. 239,065.10 Funds of the Board are remitted to the field in one of two ways: (a) Where Branch Treasurers ^ have been appointed for an entire field, like China, a monthly statement is sent out and the Branch Treasurer draws his own checks for such amounts as he may need during the month, within the limit of credits indicated by these statements. (b) Where no such Branch Treasurers have been appointed. Bills of Exchange are sent from the New York office, sufficiently in advance to reach the local Mission Treasurers in time to enable them to pay their current month’s salaries and bills. As these Statements of Credit or Bills of Exchange are sent to the field, they are charged against the appropriations for the year. When they are returned through the world’s banking channels and received by a Bank in New York City, they are brought to the Treasurer of the Board of Foreign Missions, are accepted by him and are then charged to the Bank Account. No interest is paid on these outstanding obligations. IV. AMOUNTS DUE OUR OWN WORK AND WORKERS: (a) Amounts due Missionaries. $25,033.39 The fiscal year on the field dates from January first to December thirty-first. The fiscal year of the Board runs from November first to October thirty-first. All salaries due missions are for the field’s fiscal year and are remitted before October thirty-first and charged against the respective field budgets, except salaries of missionaries on furlough in the United States. The November and December salaries of missionaries at home on furlough have been charged to the appropriations to the field and therefore represent a cash obligation upon the part of the Board. (b) Amounts Subject to Call of Missions. 192,576.28 Funds, mostly designated, that have been charged against the appropriations but which have not yet been sent to the field. They represent partial sums which have been secured for the erection of properties, purchase of land, etc., and are held until sufficient amounts are available to make it wise to proceed with construction; or complete sums awaiting the purchase of sites, materials, etc. Included in this total is $37,579.79 balance of the Japan relief fund which has not been distributed. 12 (c) Designated Funds. $344,292.02 Similar in character to those described under (b) but which have not been charged against the appropriations and are held until Committee action is taken. (d) Special China Fund— 1. Nanking University Endowment. 100,000.00 2. Invested for North China Mission. 100,000.00 3. North China for Vocational Training. 60,000.00 The generous response to the appeal of 1921 for China famine funds and the unexpected relief frorn famine craditions because of crop abundance, left in the hands of the National Famine Committee and the Board certain funds which were not needed for relief purposes. It has been agreed that the Board’s funds should be used for constructive measures which are planned to prevent famine conditions, such as reforestation, agricultural education, irrigation, as well as for continued care of orphans. The Executive Committee, in con¬ formity with this principle, has set aside $100,000 of this amount for endow¬ ment of the Agricultural Department of Nanking University, thus meeting an agreement made at the^ beginning of the_ Centenary for the University endowment; $100,000 for similar purposes within the bounds of the North China Conference; and $60,000 for vocational training in North China. (e) Unallocated Funds. 20,543.10 Funds that have been given to the Board for various purposes and under various conditions; amounts donated by individuals, the interest on which is to go to some specified work during the lifetime of the donors, the principal belonging to the Board to be used for current work at the death of the donors; and other funds of a similar character. These ftmds are all represented by securities rather than cash. (f) Miscellaneous. 129,796.28 Funds similar to (e) above except that they are represented by cash; and the accumulation in the fund for the protection of our foreign mission prop¬ erties against loss by fire. The Board of Foreign Missions has the following resources which could be used to meet the above obligations: I. CASH IN THE BANKS AND ON HAND. $652,675.98 II. DONATIONS OTHER THAN CASH: Securities and property which have been received for the general fund but which have not yet been sold; (a) Liberty Bonds, par value. 450.00 (b) Stocks and other bonds—^value at which acquired. 58,219.00 (c) Mortgages and real estate. 177,046.73 (d) Notes given by individuals. 3,323.00 III. ACCOUNTS RECEIVABLE; Amounts of a routine business nature, outstanding at the close of the year, all of which will be repaid: (a) Travel advances pending settlement. 3,873.50 (b) Sundry Items. 10,470.79 IV. ADVANCE REMITTANCES TO THE MISSIONS. 50,814.48 On the first of October amounts due the missions for the balance of the year are sent forward. Any bills that may be paid in the United States during the month of October are necessarily treated as an advance on account of the appropriations of the succeeding year. V. AHNUITY SXJEPLUS IN PROPERTIES. 196,697.53 The amount made available because of the change of policy in connection with our undesignated Annuity Funds, but not yet transferred to the general treasury. VI. WOMAN’S FOREIGN MISSIONARY SOCIETY, UNDER¬ WRITING FOR THE INTERCHURCH WORLD MOVE¬ MENT. 206,511.20 Up to October 31, 1923 the Woman’s Foreign Missionary Society had paid on this account $52,975.67, during the present fiscal year they have paid 140,513.13. 13 SUMMARY The Board owes: I. AMOUNTS DUE OUTSIDE ORGANIZATIONS AND INDIVIDUALS; (a) Notes due Banks.$2,150,000.00 (b) Notes due Individuals and Organizations. 211,968.91 (c) Amounts due Individuals. 116,236.04 11. NOTES PAYABLE TO ITS OWN FUNDS: (a) Permanent Fund. 232,046.12 III. OUTSTANDING OBLIGATIONS: (a) Branch Treasurer’s Credits. 411,048.67 (b) Bills of Exchange... 239,065.10 IV. AMOUNTS DUE OUR OWN WORK AND WORKERS: (a) Amounts due Missionaries. 25,033.39 (b) Amounts subject to call of Missions (Mostly Designated).. 192,576.28 (c) Designated Funds. 344,292.02 (d) Special China Fund: 1 . Nanking University Endowment. 100,000.00 2. Invested for North China Mission. 100,000.00 3. North China for Vocational Training. 60,000.00 (e) Unallocated Funds. 20,543.10 (f) Miscellaneous. 129,796.28 $4,332,605.91 The Board has the following available Resources: I. CASH IN BANKS AND ON HAND. $652,675.98 II. DONATIONS OTHER THAN CASH: (a) Liberty Bonds, at par. 450.00 (b) Stocks and other bonds, value at which acquired. 68,219.00 (c) Mortgages and Real Estate. 177,046.73 (d) Notes given by Individuals. 3,323.00 III. ACCOUNTS RECEIVABLE: (a) Travel Advances pending Settlement. 3,873.50 (b) Sundry Items. 10,470.79 IV. ADVANCE REMITTANCES TO THE MISSIONS. 60,814.48 V. ANNUITY SURPLUS IN PROPERTIES. 196,697.53 VI. WOMAN’S FOREIGN MISSIONARY SOCIETY UNDER- WRITING FOR THE INTERCHURCH WORLD MOVE¬ MENT. 206,511.20 $1,360,082.21 Total Debt General Fund.$2,972,523.70 Advances to the Field from Permanent Fund.. 102,739.24 Advances to the Field from Annuity Fund less amount of Designated Annuities. 26,067.33 Total Debt.$3,101,330.27 14 SUPPLEMENTAL INFORMATION The following tables of figures, taken from the Treasurer's Annual Report, are printed with this statem§nt because of their relation to the debt of the Board. FOREIGN EXCHANGE October, , 1917 , to October 31 , 1924 EASTERN ASIA Total Loss Gain Net Loss Gain China to Oct. 31, 1923. “ 31, 1924. . $797,217.55 . 19,960.12 Japan and Korea. $817,177.67 .. 11,880.67 $26,364.24 $790,813.43 11,880.67 SOUTHERN ASIA. .. 168,216.08 116,810.46 51,405.62 SOUTHEASTERN ASIA. .. 3,079.11 3,071.93 7.18 CENTRAL AND SOUTH AFRICA 382.78 4,823.05 *4,440.27 LATIN AMERICA. .. 41,049.33 33,318.56 7,730.77 EUROPE AND NORTH AFRICA 45,578.13 45,578.13 MISCELLANEOUS. .. 12,051.64 12,051.64 $1,099,415.41 $184,388.24 $915,027.17 Less Appropriation for 1919. Less Appropriation for 1920. Less Amount Applied from Board Obliga¬ tions as of Oct. 31, 1922 . Less Amount Received for Board Debt, Includ¬ ing Watch Fund to Oct. 31, 1924 . $200,209.30 .. .15,363.55 430,339.19 10,821.80 656,733.84 Total Loss as of Oct. 31, 1924 .. $258,293.33 •Gaia LOANS AND ADVANCES TO THE MISSION FIELDS General Permanent W. A. Williams Annuity Eastern Asia Fund Fund 10% Loan Fund Fund China . $25,000.00 Hinghwa . $200.00 $14,000.00 North China .. 260.00 1,000.00 West China . 675.00 $25,000.00 $1,125.00 $15,000.00 Japan. 1,800.00 Korea. $26,848.09 6,070.00 26,067.33 Totals, Eastern Asia. $26,848.09 $25,000.00 $8,995.00 $41,067.33 Southern Asia Burma. $5,000.00 South India. $1,000.00 Totals Southern Asia.. $1,000.00 $5,000.00 Southeastern Asia Malaysia. $2,000.00 $20,000.00 North Sumatra. 2,250.00 Totals, Southeastern Asia. $4,250.00 $20,000.00 Central and South Africa Rhodesia. $1,890.00 Southeast Africa. 2,586.00 $1,000.00 Totals, Central and South Africa. $4,476.00 $1,000.00 Latin America Bolivia. $13,000.00 Chile. 80,553.08 Mexico. $8,800.00 Totals, Latin America. $93,553.08 $8,800.00 Europe and North Africa Finland. $56,500.00 France. 418,254.35 Germany. 110,000.00 Italy. 606,907.00 $77,739.24 North Africa. 64,371.60 Sweden. $4,590.00 Switzerland. 60,150.00 Totals, Europe and North Africa.$1,206,182.95 $77,739.24 $4,590.00 GRAND TOTALS.$1,326,584.12 $102,739.24 $32,111.00 $67,067.33 General Fund.$1,326,584.12 Permanent Fund. 102,739.24 W. A. Williams 10^ Loan Fund. 32,111.00 Annuity Fund. 67,067.33 Total Loans and Advances. $1,528,501.69 i6 GENERAL FUND SUMMARY OF RECEIPTS AND DISBURSEMENTS November i, 1923 to October 31 , 1924 Receipts World Service, Direct. $193,151.18 World Service, Designated. 325,762.01 World Service, Treasurer. 1,160,866.62 Centenary, Direct. 209,870.81 Centenary, Designated. 302,469.99 Centenary, Treasurer.. 438,714.71 Our Share of Divisible Receipts.$2,630,835.32 World Service, Specials. $34,242.28 Non-Centenary. 31,094.73 Total Non-divisible Receipts. 65,337.04 Annuity Fund, Undesignated. $46,501.74 Annuity Fund, Designated. 21,980.01 From Legacies, Undesignated. 255,603.75 From Legacies, Designated. 18,598.98 Interest, Permanent Fund, Undesignated. 10,813.83 Interest, Permanent Fund, Designated. 32,590.98 Miscellaneous. 70,701.05 Total Receipts from Other Sources. 456,790.34 Total .$3,152,962.70 Total Receipts for 1923.$5,350,473.52 Decrease for this year. 2,197,510.82 Disbursements Board’s Obligations, Principal and Interest.. General Expense. Indirect Appropriations. Special Personnel Preparation Fund. Direct Appropriations. Non-Recurring Items. 1. Designated Gifts Adjustment Fund... 2, Field Projects. Malaysia Educational Debt. Balboa Union Church, Panama. Conditional Appropriation for Field Projects Total. (Schedule A). (Schedule B). (Schedule C). (Schedule D). (Schedule E). (Schedule F) $140,965.84 278,461.46 210,752.14 45,000.00 3,140,000.00 440,853.37 ... $124,761.62 15,000.00 5,000.00 144,761.62 (Schedule G). *4,400,794.43 Total Disbursements.$4,400,794.43 Total Receipts. 3,152,962.70 Excess of Expenditures.$1,247,831.73 17 TOTAL DISBURSEMENTS FOR SEVEN YEARS Special attention is invited to the following table of disbursements for the past seven years. The figures for 1918 are given for compara¬ tive purposes and the figures for the other six years are given because the Centenary began June i, 1919, and ended May 31, 1924. These figures, therefore, present the total of the Centenary disbursements with fractional years added. The Treasurer wishes to express one or two words of caution. No one should add all the figures which appear under “Board’s Obli¬ gations” and say that the result is the total of the Board’s debt, because most of the present obligations of the Board were contracted after some of these items had been paid. Our share of the cost of the Centenary campaign, that is, the cost of Centenary operations up to the date of the taking of the subscriptions, was all paid from the first Centenary receipts and on October 31, 1919, were no longer a part of the Board’s debt. While some of the advances to the fields, as indi¬ cated in another paragraph, have been of long standing, most of the advances have been made since 1919, and all the present unpaid loss in exchange has been contracted since 1921. Again it should be understood that not all of the Board’s obliga¬ tions have been created on account of home base activities. Loss in exchange is clearly a field item and would be included under the heading, “Disbursements to the Fields,” if it were not for the fact that this loss could not be cared for under the appropriations, but had to be carried in addition, thus causing a part of the debt. Further¬ more the cost of interest has not been entirely on account of the Board’s indebtedness, but a goodly proportion of it is due to the delayed remittances from the churches. If the Board could receive one-twelfth of its income monthly its interest charges would be greatly reduced. The figures under the heading, “Disbursements to the Fields,” represent the total amount which has been expended on account of the field work both for recurring and non-recurring objects, excepting loss in exchange, as indicated above. The amounts paid in loss in ex¬ change in 1919, 1920 and 1922 should be added to the figures under this heading in order to secure a complete statement of the amount disbursed for the field. Special Personnel Preparation Fund is the fund that was set aside by the Board for the preparation of missionaries for the field and disbursed to the theological seminaries to be used for that par¬ ticular purpose. 18 L 00 lO ^ o CS) o o • • « •oo CO • • • • o »o • • • :c o eo (M • • S • C3 '"q ca t-i o' 00 • • • • • • • O* CO • lO 1—1 rH • • • • CO • • • • CO • • ooo • • • r- o o • • • icOOQ • cq »o , CO O O cq -H . eo c O • oa *-» o' Tf • • • o' o' o' • CO o • • ▼H • • '» « • H CO s H >-< Q CO o H -< O HH hP P3 o g o PQ a in fl o a X W a c o -4-> c a O ’O L. CJ C PQ I <53 U) C o a X w 03 t/i c CJ c, X W c o -4-> a a» a a> > o 03 • ' - ' cii a C o o -*-> K Sto — d ^ d l-t-H O to CuO d Ui a CO d o to d O PQ 8 u u CO <1^ t-d w c *2 t- tfl ^ O O CJj:; ~ a 00 CO oocooi^cqo • 'hr CO Q CO r-. q Tt* cq CNj • ’hr rH o »o rH o CO cq ci o • . . . .to trl o CO CO r-' cq rr to to t>. . .Q CO o 05 Tq COh-qo tq • CO q o' 00 CO tc hr' V cq' to • • hr co' »o' 00 CO CO C5 CO CO • • rH CO r-. cq cq^ca cq cq CO • • rH q rH • • CO €/» o ▼H t^COhr rHI^Cq • • Hjt CO Q 00 00 q q 00 CO rf • • d to o to hr' -^r CO ca to I Ih-^ d o t>- r- CO ca —< (M o . . Ca ca o cq tq qqq-r CO ca • q q oo cq' —-^'cq' Cl* to • ' C^ eo 00 00 O CO Th CO . • CO 00 00 cq cq_ o_cq to cq t>. • • rH rH r-< rH • • »o CO 00 00 OO hr. CO Tji • . Hjt to Q 05 rt< hr rh q q — rjt . • hr CD O CO O to h^ — to frl to I 00 CO 05 CC cq 00 rf o CD . . 00 tr 00 1—( qcq c hr c: q • . rH q 00 o' no Co' h^ TT to CO ccT • • cT CO o r-t O 00 ' rr ca uo O • • d d OC' CO CO q 00 cq to cq ca • • tH d^ T—) • • ca hr eo hr hr o cq q rr 00 . . o o 00 t}5 rf cq‘ rf o’ ! I hr oc o rh era to o d Tf CO . .cq h- o rH cq q q hr_^ cr. ca^ • q o CO to ot' co' ca oo' to to* CO o' CO cq cq to cr,' r}« CO • • ^ d o CO CO qca cq CO cq rH^ • • TH q rH m‘ rH tH • • 05 ^ Ir. ic CO to Cl • rH o CO « cq CO hr q q cq ca q • 00 CO hr • CO CO cq -- 00 to to O * tc* CD • CO tH cq ca oc CO -H .to CO CO to hr eo o hr to .q^d^ ca^ • o' CO d' cT co' r-- to* 00 •eo' co' o' • CO o Cl O 00 cc to • to O • CO Th o_d 00 cq O • rH rH q • rH r-T * r-T to • «» CO 00 rH CO d CD hr • hr ca ca • to q q rH rti tr. q • rH d CO « CO ca ca Th q o’ d ca :o6q CD • 50 CO HT Tf O o CO .■v q 00 • o ca^ rr qq_c ca to . '!»* d^ » o ca" CO to' 00 h^ • CO* CO r-T • o HT CO rH d >.?• to • 00 CO » cq cq CO CO rH CO rH cq • rH rH Hh • cq' • Cl' • • o ca O o to CO hr CO ca .rH hr • to t^ qqrH„(^i;^io .ca HJt • rHdCOcOCC'^Ca ‘h.1 cq • 00 oooeO'OCHroOco .■«?< to rH tq qqqHC cc.cq q • CO cq' C' C* oo' r-* hr' 00 -to iC • 00 t^toOrHcoO'^ CO • rH COd d cqhr • q • • • rH • ’T? G oi to C O • •-< 4J oi ,fc0 3 O *d c3 o PP to -M d o a o H CO * oa !> •» 8 Ttl o rt< iO lO CO iO CO o o (N rH CD lO U3 CO • o •« o rH •» CO CD CO CO lO CO CO CO t>. (N 00 cq »o o •o< M iO CO In. C> t". Cl CO iO <=5 «iO CO H O H 19 If You Want a Thing Well Done Do It KoHrself! Would you let strangers run your business ? Would you let strangers invest your money ? Would you let strangers control your home ? NO Why let strangers administer your estate? Why let strangers provide for your family ? Why let strangers pay your benevolences? Buy Life Annuity Agreements They make you your own executor They guarantee a regular income to your family They insure your money being devoted to missions Full particulars will be sent you immediately if you address: Morris W. Ehnes, Treasurer of the Board of Foreign Missions of the Methodist Episcopal Church, 150 Fifth Avenue, New York City.