During the past five years, in spite of financial difficulties, the survey of medical schools conducted by the Council on Medical Education and Hospitals has yielded tangible results in organization, equipment and resources of medical schools. This is true to a degree of all, but most significant in those institutions which, when visited, showed the greatest need. Among these lower ranking schools, twenty-four have increased their budgets by more than a million dollars, the average amount per school being $47,000. Twenty-five have increased the number of salaried instructors. Twenty-two have definitely improved their procedure in the selection of students and have adopted higher scholastic standards for admission. For better preclinical facilities, seventeen schools have expended from $29,000 to $500,000 each. In twenty schools the cost of improved facilities for clinical teaching aggregates $10,000,000. While money alone does not guarantee a sound educational institution, adequate financial support is absolutely essential for