The seventh annual report of the president and treasurer of the Carnegie Foundation has Annual Report just been issued. The of the Carnegie report of the presiFoundation dent, like former reports, is divided into two parts-the first referring to the current business of the year and dealing with questions more directly pertaining to the administration of the Foundation; the second part being devoted to current educational problems of a larger and more general nature. The first part of the report includes a careful statement of the whole question of pensions for teachers, for Government employees, and for industrial employees. This statement contains the results of the examination of practically all of the pension systems now in operation anywhere, and leads finally to a discussion of a feasible pension system for the public school teachers of a state. This discussion is particularly needful at the time since the question of teachers' pensions is a matter under consideration by a number of State legislatures. As the report points out, the bills which have been introduced in the various legislatures almost without exception violate fundamental actuarial conditions, and have been framed without study of the essential

conditions which must be fulfilled by any adequate pension system. The material brought together in this report, the examples of the failures of pension systems which have occurred -as, for example, that in New South Wales-and the precarious situation in which many State pension systems now stand, make this portion of the report one of great practical value to the authorities of any State contemplating pensions either for teachers or for State employees. President Pritchett, in arguing finally for some form of contributory pension system for public school teachers, points out clearly the difficulties of the contributory system, the necessity for the most careful actuarial advice, and the public nature of the questions which are involved in a distribution of the cost of such a pension system between the State and the teacher. Following the discussion of these pensions, a complete history of the methods by which the Carnegie Foundation pensions were arrived at is given; the process through which the trustees worked is told in the frankest manner; the difficulties which they encountered and the differences which arose out of the fact that the pensions of the Carnegie Foundation are not contributory, but have come as the result of a free gift,