The establishment of an English course in 1877-78, leading to the degree of Bachelor of Letters, which consisted largely in the study of modern languages and history, and aimed to co-ordinate with similar high school courses, formed another break, which was emphasized by a modification and revision of the other courses and a change from the Latin and Scientific to the Latin course. Almost half the work required for a degree now became elective. This action was far-reaching in its effect; not only was there an immediate increase of almost twenty percent in the number of students, but due to it, curiously enough, can be traced the subsequent rise of a true graduate school. The principle of general election of studies was gradually extended until the required work was decreased to certain introductory courses in Latin, Greek, modern languages, rhetoric, history, mathematics, and sciences, according to the special fields chosen by the student. The special degrees of B.S., Ph.B., and B.L. were abolished in 1900 and all graduates of the Literary Department were granted a degree of A.B. after that time, though the B.S. was later restored. Of late there has been a reaction toward more formal programs of study, with an increased emphasis on certain introductory work which must be observed in planning the course necessary for a degree. But the great latitude left to the student in the choice of his work still remains.

The growth of the Graduate School should also be noted, for upon this the standing of the University as a center of learning must eventually rest. In spite of Dr. Tappan's efforts to introduce "university" courses, Michigan was long a college rather than a university, so much so that President Haven discouraged the use of the word "undergraduate" when "graduate" students were almost non-existent; while the opportunities offered them, except possibly in astronomy and chemistry, where the facilities were unusual for that period, were only those of a high grade college curriculum. But the leaven was working, in two particulars especially; the seminar method of teaching and the development of the elective system. The first seminar was held by Professor Charles Kendall Adams in 1871 in some of his courses in history. He was followed a little later by Professor Moses Coit Tyler in English Literature, and in time by most of the other departments. This, with the corresponding laboratory methods in the teaching of the sciences, had a profound influence on the growth of scholarly ideals in the University. Michigan was in all probability the first American institution to naturalize these products of Continental universities. The broadening of the course in 1877-78, with its great increase in electives, enabled the members of the Faculty to increase the scope of their work and to expand their courses. As an immediate answer there came an ever increasing demand for true graduate work, not only from graduates of the University, but from those of other institutions as well. This movement grew so rapidly that the number of advanced students enrolled increased from four in 1870 to 56 in 1892, when a Graduate School was formally organized in connection with the Literary Department. This was expanded some twenty-five years later into an entirely separate Department, or School, following the revised nomenclature of 1910, of which Professor Karl Eugen Guthe, Marburg, Ph.D., '89, of the Department of Physics, became the first Dean. Upon his death in the summer of 1915 he was succeeded by Professor Alfred H. Lloyd, Harvard, '86, of the Department of Philosophy.

Thus graduate work in the University came into its own. At last the ideals of President Tappan, who admitted the first graduate student in 1856, were in some measure at least realized; though the real results of his labors did not show for many years after he left.

Throughout all the early period the general attitude towards advanced work was decidedly haphazard and casual; the degree of Doctor of Philosophy was not given until 1876, when Dr. Victor C. Vaughan, the present Dean of the Medical School, was one of the first recipients; while the Ph.D. as well as the M.D. were sometimes given as honorary degrees. This attitude toward graduate study, however, was by no means confined to Michigan, for the systematic regulation of advanced courses has been comparatively a recent development in all American universities.

The first organization of the School under a Graduate Council within the Literary Department, was therefore a great step in advance, however anomalous its position,—a graduate school practically controlled by an undergraduate faculty,—though there were, it is true, certain representatives of the professional departments on the Council. Nevertheless the work grew rapidly after this time. Not only was there a steadily increasing enrolment, but there was a distinct increase in the number of advanced courses, as well as in the time given by teachers to graduate instruction and to research work, which greatly strengthened the prestige of the University as a center of higher education.

The final establishment of the School as a separate division of the University naturally gave a decided impetus to this development. A suite of offices was set apart for the administrative force; special encouragement was given to the publication of the results of their work by members of the Faculty, particularly through such agencies as the University Humanistic Series, and similar series in other fields, while fifteen University fellowships were also established, as well as the State College Fellowships mentioned above. In addition a number of fellowships have been privately established by individuals and corporations, ranging from the classics to paper-making. During the last few years there have been in all between thirty-five and forty-five fellowships ordinarily available. The enrolment in the School reached 570 in 1916. There was naturally a falling off during the war, though by the year 1919-20 the enrolment had once more reached 509. Of this number 227 were registered in the summer session, 173 were women and 195 were graduates of other institutions than Michigan.

The history of the University Library has been closely associated, as is only natural, with the growth of the Literary College, and it is proper to include a word about the Library in this place. The appointment of the first Librarian in 1837 did not make a library, and for many years the fine but small collection of books gathered in Europe by Professor Gray was housed in different places about the Campus and was used only as a circulating library—open for one hour each week for the use of the professors and students. However a note in the library regulations to the effect that: "The present instructors are of opinion that there are very few of the books in the library which would be useful to students," seems to limit even this function of the little collection. All this was changed in 1856 when the whole North Wing was set apart as a Museum and Library. Here for the first time, the books were properly shelved and arrangements made for their daily use in an adequate reading-room under the charge of Dr. Tappan's son, John L. Tappan, who took charge as the first real Librarian. He arranged the books scientifically and began the first card catalogue.

Almost at once the Library sprang into a new place in University life. Not only did President Tappan make the Library one of his first interests, but the Regents came to realize the desirability of regular support. This inaugurated a period of ever-increasing growth, which has placed the Library well to the front among American college libraries. Progress at first was rather slow, only about 800 volumes were added each year up to 1877, when the Librarian reported that there were almost 24,000 volumes in the collection. Not very large even then; but the rate increased from that time, rapidly, and at the present time the Library numbers some 430,000 volumes including the departmental collections.

In 1877 the Legislature was brought to see the imperative need of an adequate library and made a special appropriation of $5,000, which was renewed every two years, and even gradually increased, until in 1891 the amount appropriated was $15,000, with a grand total over a period of fifteen years of $79,000. These biennial appropriations ended in 1893 with the increase of the mill-tax from one-twentieth to one-sixth of a mill. This enabled the Regents to double the income of the Library, making it $15,000 annually. The income increased gradually until the library budget of 1920 was over $150,000, of which $50,000 represents the approximate cost of books; the balance being spent for the salaries of the large staff which is necessitated by a library of this size.