The plan adopted in this study has been: (1) to make a correlation between the ranking of the various States in each of the items compared; and (2) to compare the various States with each other directly with a reference to the mean of the entire United States in those items. The Pearson coefficient of correlation points out the approximate degree of relationship between the two series, and the charting furnishes the actual proof of the reliability of the relationship indicated. The means is the mathematical average, or average for the United States. This study is concerned chiefly with the question of reduction in total and percentage of illiteracy as a possible effect of educational expenditure, and with the effect of illiteracy upon the financial standing of the State. It is not an attempt to prove that it does or does not pay to spend money for education, but is rather an attempt to find out if it does pay. Although the study is based on money value, no effort is made to fix a definite "dollar value" on the returns. (Contains 5 tables, 7 figures, and 9 footnotes.) [Best copy available has been provided.]