Superintendent Moses Friedman informs the Commissioner of Indian Affairs that the former superintendents, like William A. Mercer, created an Emergency Fund from any amount of money earned and left by deserting students. Friedman states that the money was placed in a local bank and currently has a balance of $11,39.66. He notes that Mercer did not record how much money was taken from particular students' accounts, so it's impossible to return the money. Friedman requests to use the money to help students to purchase necessities like glasses or dental work when they don't have the funds to do so.
Commissioner R. G. Valentine sends a circular to all disbursing officers telling them that they are required to account for all funds and to return runaway students' money to them. Valentine also relays the situation at the Carlisle Indian School to the Secretary of the Interior, adding that the process of confiscating runaway students' money has been happening at other schools as well. Valentine recommends that the money from Friedman's Emergency Funds bank account be placed in the "Miscellaneous Receipts, Class IV, School" appropriation. Second Assistant Commissioner C. F. Hauke orders Friedman to complete this transfer.