tion is not likely to exceed 15%. Less than half the titles in the Library of American Civilization are currently held by some very large American university libraries that have recently been searched. In addition, some of its titles are rare books, existing in single copies on college or university library shelves, and completely unavailable to most libraries. Inexpensive duplicate copies of fiches allow more than one student to work simultaneously with scarce materials. Books Selection Procedures Library Resources Inc. has secured the cooperation of a large number of distinguished college and university faculty members-selected for their preeminence in American studies-to participate in the process of defining the Library, nominating and selecting the titles, and designing the bibliographic aids. The work of these scholars and the cooperation of the institutions that make their books available for copying has resulted in an educational Library of the highest attainable standards. Drawing on the editorial resources of Encyclopaedia Britannica, the editorin-chief and a staff of subject specialists coordinated the entire selection process. An advisory board of eminent scholars in American studies has been responsible for the intellectual framework of the Library. Using the best existing bibliographies in the field as a starting point, and employing the latest technology to manage the enormous quantities of information involved, the editorial staff and its advisors have been guided by carefully planned criteria in making their ultimate selections. Criteria include: the intrinsic excellence of the title its historical significance, originality, and style; the work's representativeness of American thought (the aim is to provide a full picture of American intellectual history; works of foreign authors are included to lend diversity and avoid bias); the education value of the work-its potential contribution to the student's understanding of the subject and period. The needs of students at every college level, and those of faculty members, have been considered. The first step in the selection process was to nominate for inclusion many more than the number of works the Library now finally contains. All titles were collated and arranged into subject or period groups. Each such list was submitted to selection committee members, who evaluated the nominated titles. Final composition of the collection was determined by the editors, supported by the advisory board. Retrieval and Use Materials One of the most impressive aspects of the program is the wide array of information retrieval tools that accompanies the Library of American Civilization. These tools include catalogs in various forms, and hundreds of topical biblographies and research guides, which are called simply "Biblioguides.” Catalogs All catalogs are based on the Library of Congress card system. The Library Resources staff has used the cards furnished by the Library of Congress whenever possible. For titles not cataloged by the Library of Congress, entries were constructed by experienced catalogers with the book in hand. These catalog entries often give more up to date information about the content of the title than is found on a Library of Congress (LC) card. Biblioguides The topical bibliographies (Biblioguides) furnished with the Libraries are an innovation of great usefulness, both for research and for reading. In the case of the Library of American Civilization, the 20,000 volumes in the collection are indexed, both as wholes and as parts, under some 500 themes of perennial interest to students of American history. Each of the more than 12,000 titles in the collection are indexed under at least one theme; many are indexed under several themes. For each of these 500 themes, therefore, the purchaser of the Library will possess a typical bibliography of relevant works and parts of works. In effect, each of the topical bibliographies constitutes a different arrangement, or cross section, of the Library as a whole. Each of the 500 topical bibliographies is prefaced by a headnote discussing the theme, and indicating the range and diversity of materials to be found in the bibliography. These research guides are an important educational device. A student may consult the list of themes in order to find a topic for study in depth, and, turning to the research guide for the theme, and to its bibliography, get guidance in what to read. He may choose to read a few major works on the theme, or instead may consult specialized works as his interest and knowledge grow. A student in an advanced course can direct his reading to a single facet of his topic, but he can also easily find help in obtaining a broad, as well as a -deep, view. The oportunity afforded by the Library Series to foster the diverse interests and needs of students is one of its greatest advantages. A faculty member wellversed in a general subject, whatever his specialty within it may be, can readily work with a student on the topic that interests the student, using the research guides as basic reading lists. The librarian can also work with these guides when asked by students, as he often is, to assist in preparing reading lists. Future Microbook Libraries Now in planning and production are more than a dozen Microbook Libraries, as follows: Library of European Civilization, in three parts: Library of Medieval Civilization, to 1400 Library of Renaissance and Reformation Studies, 1400-1750 Library of English Literature Library of French Literature Library of German Literature Library of African Studies Library of Oriental Studies Library of International Affairs Library of Classical Civilization Library of the History of Science and Technology Library of the History of Art Library of the History of Philosophy Library of the History of Religion Library of the History of Political, Social, and Economic Thought Library of Spanish and Portuguese Literature Library of Slavic History and Literature In Summary The principal goals of The Library Resource's Microbook Series are: The Medium-to establish Microform as a standard library medium by publishing libraries in this form of such scope and quality as to ensure wide acceptance: Bibliographic Support-to achieve the economies inherent in the medium library; Low Acquisition Cost-to achieve the economies inherent in the medium and in centralized selection, cataloging, and indexing; Complete System Integrity-to make available low cost, high-quality Microforms, Readers, Reader-Printers designed to meet approved library standards. These goals make it possible for colleges to acquire extensive Library Resources at a fraction of the normal cost, and to reduce operating expenses markedly. Eventually, it is expected that Microform can make it possible to operate a library on a distributing basis as well as on a circulating basis. Dr. FELDZAMEN. When you consider the average library book costs over $7, just to acquire and shelve, above its purchase price, this represents a tremendous savings using microfiche. Do let me add that one of the Britannica companies, Library Resources, Inc., is specializing in this field. Using an ultramicrofiche system which permits 1,000 pages to be reduced to the size of a small card (which can then easily be "read" using an inexpensive device), this year Library Resources, Inc. will be offering a special "Library of American Civilization" to schools and libraries. This collection, in ultramicrofiche form, contains the equivalent of tens of thousands of books and other source documents about American civilization, and will sell for only $20,000 or so. This represents an enormous saving to the school or library which will purchase this a saving made possible by this new technology. In the future, a "Library of Medieval Civilization" will be offered similarly, and other topics are also planned. Mr. BRADEMAS. Thank you. Mr. Hansen. Mr. HANSEN. Thank you, Mr. Chairman. I also join in extending to Mr. Patton and to Dr. Feldzamen a very warm welcome to this subcommittee. I hope that you will convey to Senator Benton our sincere appreciation for a very thoughtful and very constructive statement. Let me ask Mr. Parton as to the role the public institution might play in this whole area of research contemplated by NIE. I would also observe that the films we saw last night produced by Britannica were of exceptionally high quality. We were very much excited in seeing what is being done, thereby what can be done by the extension of this kind of a technique. So, it strikes me that with professionalism and experience and skills in an organization such as Encyclopedia Britannica can bring to this effort there must be an important role that it can play in the total educational research effort. Do you agree, there is a role and what role do you see specifically an organization such as yours can play and generally for nonpublic institutions? Mr. PARTON. Well, speaking for Britannica, it is a privately owned company which has had a relationship with the University of Chicago ever since Senator Benton acquired it from Sears Roebuck. This gives the University of Chicago a tremendous amount of money in the form of royalties. I am on a university committee which is currently considering about 15 projects. This committee is headed by President Levy of the university and some of its funds come from the Britannica. We are considering how to use them to obtain better means of evaluation, or to set up a center for the collection of educational audio-visual materials. And other kinds of projects, many of which are far-out research. I am distressed that the private foundations that also do similar things have been under such attack the last couple of years for the malfeasance of a few brigands who didn't play cricket. The concept of endowment which comes out of capitalism basically, might be said to be in the finest fruit of capitalism. You do not see it in China. You do not see it in Russia or Communist countries. We have in our country the Ford Foundation and many other enterprises, such as the Carnegie Corp., that have been doing research. You well know, better than I, they support all kinds of research education. This brings me back to my feeling that your proposal for the NIE is a functional one. Mr. HANSEN. Let me raise a question and direct it to Dr. Feldzamen, pursuing the questions raised by the Chairman relating to the problem of duplication. Would you agree that educational television and the educational materials which can be made available through television techniques can be enormously expanded and brought within the economic reach of many of schools who can not now afford them if somehow we can achieve an adequate degree of standardization and compatibility in the hardware used for the dissemination of the materials? Do you see this as one of the functions that NIE can perform? Dr. FELDZAMEN. That is a most perceptive question because the one audiovisual medium that covers the world is motion pictures. Motion picture standards are all the same all over the world. Films are projected at 24 frames per second. So, American movies entertain, and educational films are used, everywhere. Television has quite different standards in Europe than in the United States. Of most importance here to the future would be the lack of standardization in the forthcoming systems of video cassettes and their players. The manufacturers are beginning to come together, realizing that perhaps without standardization they will lose the bulk of the early market; namely, the institutional market: the industrial and educational markets. Standardization there is most important. If an Institute of Education, as here proposed, did recommend for school use a particular type of instrument, to be used for the presentation of all audio-visual images, I have no doubt this would have a major effect on the electronics industry in the United States as well as on educational practices. Mr. HANSEN. Thank you very much. Mr. BRADEMAS. Mr. Parton, Dr. Feldzamen, we are most grateful to both you gentlemen for your responses to our questions. We are very grateful as well, to Senator Benton for his excellent. statement. Mr. PARTON. Thank you. Dr. FELDZAMEN. It was a great privilege to be here. Mr. BRADEMAS. Our next witness is Dr. Theodore W. Schultz of the Department of Economics, University of Chicago. The Chair wishes to extend a particular welcome to Professor Schultz. He has counseled with and assisted the subcommittee for a number of years. And I suppose it is fair to say he is the father of educational economics and the idea of education as an investment in human capital. We look forward, Dr. Schultz, to hearing from you, sir. STATEMENT OF DR. THEODORE W. SCHULTZ, DEPARTMENT OF ECONOMICS, UNIVERSITY OF CHICAGO, CHICAGO, ILL. Dr. SCHULTZ. Chairman. Mr. Hansen. Let me say the obvious, it is a privilege to be here. Let me then mention two activities that should have top priorities today in education nationally. They are investment in research pertaining to education, and preschool investment in children. I will not have time this morning to discuss the latter here, except to say that our economic studies show that we are underinvesting in the preschool development of children. We need a National Institute of Education that will be supported in a continuing manner. It is important to have research that would concentrate on schooling and higher education. Your bills, H.R. 3606 and H.R. 33, on which you are holding these hearings, is in my judgment a fundamental approach in meeting this need. Your bill is cogent. It is clear. It deals with the basic issues. Much thought and study has gone into it. It takes the long view. In H.R. 3606, page 2, you have a declaration of policy which says: While the direction of the education system remains primarily the responsibility of State and local governments, the Federal Government has a clear responsibility to provide leadership in the conduct and support of scientific inquiry into the educational process. This is a valid statement. The fruits of research go into the public domain and become public goods. They do not serve one State or one locality because the research results are available to all, as they should be. If there is going to be basic research it is for society as a whole. I shall comment first on my own involvement in and concern about organized research. Next I shall argue that the proposed Institute should have a built in set of politically accepted standards to allocate a part of these funds to serve the institutional diversity of our schools and higher education. There is no easy answer, but I shall endeavor to give you one or two leads. Thirdly, I shall suggest that the Institute should specify basic research areas to make sure some important ones are not neglected. The history of research in education is traditionally dominated by psychology and aspect of learning theory. Although they are important they are not the whole story. First, then, a brief comment on my own roots, particularly with respect to what organized research is all about. My career started at Iowa State College in 1930. The Federal Government had just passed the Purnell Act which gave each State $60,000 to conduct research in the social sciences, really for economics at that time. That probably was the best set of funds for research I have ever had access to throughout my whole career. I have had the privilege of receiving foundation funds very generously, but I have never had better funds than the Purnell funds. They were always there and they were ideal. Then starting in 1943, with the University of Chicago, I began to see what was lacking in agriculture in Latin America, Asia, and elsewhere. Countries in these areas were not able to benefit from the research going on in the world at that time, research largely in the biological sciences, serving agriculture. In the middle fifties' I turned to the point 4 programs. The United States was spending millions of dollars in the Latin countries to assist in the development of agriculture. A substantial part of this was used to establish agricultural research, and yet, with millions of dollars the results were small compared to what the Rockefeller Foundation achieved in Mexico. There is today very little to show from the large U.S. expenditure in contrast with the impressive results that have come out of the programs started in 1942 in Mexico, and in which the Rockefeller Foundation played a major role. The Japanese also have been very successful in Japan. I think I have a sense of what is involved in successful approaches to bring organized research to bear on modern problems. I understand the research sources of the "green revolution." Then in 1958, I began to concentrate on the economics of education. Let me complete this part of my comment by noting that during the last several years I have been a member of COBRE, Committee on Basic Research in Education set up by two academies, the National |