Harvard and all 78 other medical schools in the nation will gain sorely needed money every year under terms of a new National Fund for Medical Education, set up yesterday in New York.

Designed to supply $5,000,000 annually to medical schools, the project has the backing of leaders of industry, medicine, backing of leaders of industry, medicine, labor and agriculture; several university presidents, including President Conant; and 12 scientific and educational foundations.

Dean Berry of the Harvard Medical School yesterday explained that at least $40,000,000 more a year is needed to cover medical schools' operating expenses at top efficiency and at current enrollment levels. Former President Herbert Hoover, honorary chairman, termed the present system "woefully inadequate for national defenses."

Harvard Runs Deficits

Even the Harvard med school has been perennially plagued with operating deficits ever since the war, and a "book" surplus was achieved last year only by dipping into capital and applying funds from the Higgins Scientific Trust.

Initial contributions to the new Fund have been made by the American Medical future funds will be solicited from pri-Association and several other groups; vate sources. At first the funds will be split evenly 79 ways, pending discovery of an "equitable" distribution scheme.

President Conant, speaking at the meeting, said, "History will record that this afternoon we have attended the most important meeting in New York City since the end of World War II."