Remarks on the declining financial support of the University's counterparts, yet makes it clear that the University enters the 'new year in a vibrant condition'. Notes the sudden death of Professor Minor Rodgers, a member of the Department of Religion on campus. Includes an update on the landscaping of the Lenfest Center, the new addition to Lewis Hall, the near completion of the Fraternity Renaissance, and the donation, by Elizabeth Watson, of a collection of oriental artifacts to be housed in a new addition to the Reeves Center. Remarks that while the University has been able to avoid the downshift in American applicants, this may catch up to the University soon. Notes the importance of the endowment and ends with a personal note.