American Consequences - May 2018

How did this remarkable transformation come about? The characteristics of the system that seemed to be disadvantages in the 19th century turned out to be advantages in the 20th. Its modest state funding, dependence on students, populist aura, and obsession with football gave it a degree of autonomy that has allowed it to stand astride the academic world. The system emerged under trying circumstances early in U.S. history, when the state was weak, the market strong, and the church divided. Lacking the strong support of church and state, which had fostered the growth of the first universities in medieval Europe, the first U.S. colleges had to rely largely on support from local elites and tuition-paying student consumers. They came into being with the grant of a corporate charter from state government, but this only authorized these institutions. It didn’t fund them. The rationale for starting a college in the 19th century usually had less to do with promoting higher learning than with pursuing profit. For most of U.S. history, the primary source of wealth was land, but in a country with a lot more land than buyers, the challenge for speculators was how to convince people to buy their land rather than one of the many other available options. (George Washington, for instance, accumulated some 50,000 acres in the western territories, and spent much of his life unsuccessfully trying to monetize his holdings.) The situation became even more desperate in the mid-19th century, when the federal government started giving away land to homesteaders. One answer to this problem was to show that the land was not just another plot in a dusty agricultural

village but prime real estate in an emerging cultural center. And nothing said culture like a college. Speculators would “donate” land for a college, gain a state charter, and then sell the land around it at a premium, much like developers today who build a golf course and then charge a high price for the houses that front on to it. Of course, chartering a college is not the same as actually creating a functioning institution. So speculators typically sought to affiliate their emergent college with a religious denomination, which offered several advantages. One was that it segmented the market. A Presbyterian college would be more attractive to Presbyterian consumers than the Methodist college in the next town. Another was staffing. Until the late-19th century, nearly all presidents and most faculty at U.S. colleges were clergymen, who were particularly attractive to college founders for two reasons. They were reasonably well- educated, and they were willing to work cheap. A third advantage was that the church just might be induced to contribute a little money from time to time to support its struggling offspring. Often the motives of profit and faith converged in the same person, producing a distinctive American character – the clergyman-speculator. J.B. Grinnell was a Congregational minister who left the church he founded in Washington, D.C. to establish a town out west as a speculative investment. In 1854 he settled on a location in Iowa, named the town Grinnell, gained a charter for a college, and started selling land for $1.62 an acre. Instead of organizing a college from

54 May 2018

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