Our Roots, Pt. 26

Despite tensions among the auxiliaries, the early 1890s were good times for the Adventist Church. Its membership was multiplying, as were its schools (from maybe a dozen in 1888 to 464 in 1903), publishing houses (which grew more in size than number), and health institutions (from two in 1888 to 24 major institutions and a number of smaller ones in 1901). The Church was also seeing unprecedented financial growth. Unfortunately, all of this growth was not managed well.

Many church leaders at that time operated on the principle that financing should be a matter of faith. They would undertake to build schools and other institutions without adequate financial resources to accomplish the project and make up the difference with loans, believing that the Lord would provide the needed means if they would step out in faith to begin the work. It didn’t entirely work that way. Even in those prosperous financial times newly erected institutions almost immediately had difficulty with sustaining themselves financially. Many sought to alleviate their financial difficulties by asking the General Conference to take direct control of them (and thereby access the GC’s coffers) but the GC was also overspending and therefore unable to do so, no matter how much it would have liked to have the offered control.

There was some debate about whether such emphasis should be placed on establishing institutions. Some argued that they got in the way of the Church’s gospel mission and that the money expended on them would be better used in direct evangelism. Others declared that they were the best means of accomplishing that very mission. But since each kind of institution fell under the jurisdiction of a different auxiliary, and no one had any effectual coordinating control over all the auxiliaries, no arguments on either side of this issue really had any effect in making this institutional growth more strategic.

The general lack of financial accountability during this period can be seen in the following anecdote told by Ellen White in a speech sometime later.

“When I was living in Cooranbong, the need of the Southern field was opened before me. In the night season I was standing before a large congregation, making an appeal to them. That night I arose at eleven o'clock and began to write out this appeal. The money raised in response to this appeal was not to be sent to places which had received help. It was to be sent to places which had not received help. It was to be sent to the field where a beginning must be made, where everything was wrong, where help must be given in order for anything to be done.

“About $11,000 was raised in response to this appeal, and I waited and waited to see what was done with this money. Edson kept writing to me, saying that he wanted to do this and that to start the work, but could not for want of means. In this work he found people who needed clothing and he longed to be able to relieve their necessities, but his wages were small and he had very little money to do anything with. I tried to help him, giving him an order on the Review and Herald for $400, which money he was to use in clothing the naked and feeding the hungry.

“Where did the money go that was raised for the Southern field? How long has it been since that money was raised? It was raised five years ago, but I do not know where it went, and if there is anyone here who has knowledge on this point, I wish he would tell me. Those who kept back the money that was raised for the Southern field in response to my appeal are accountable to God, for He led me to make this appeal” (Sermons and Talks, Vol. 2, pp.158 & 159).

The Church’s financial situation dramatically worsened when in 1895 the Church began to feel the effects of a global economic recession. This recession had actually begun in 1893, but giving had remained strong through 1894. When the flow finally ebbed in 1895 the Church found itself in serious financial trouble. Some of the state conferences had modest financial reserves, but they were the exception rather than the rule. With obligations exceeding income (even after such desperate measures as allowing themselves to fall behind on employee salaries) the denomination’s debt soared. It became financially impossible for the Church to send missionaries into new mission fields.

The financial problems, stalled mission growth, and lack of institutional strategy increased the pressure for organizational reforms which would allow more strategic planning and management of the Church’s activities and resources.

Next: Prophetic Critiques