These are not the best of years for our Association, or, I suspect, for any professional association involved with higher education. The problems are, of course, financial, problems on which I hardly need elaborate since they are problems with which, in our colleges and universities as well as in our homes, we are all familiar. I do feel obliged to make a few comments on the Association's financial crisis before concluding this report, but, since this is the season to be jolly, I prefer to begin on a happier note by discussing recent developments that I think are of special importance to the Association.