Establishment Clause Prior to Everson

The following is a brief summary of Supreme Court Cases interpreting the Establishment Clause prior to Everson (taken from Kent Greenawalt, Religion and the Constitution: Establishment and Fairness):

The Establishment Clause Up to Everson v. Board of Education

Not until 1947, in Everson v. Board of Education, did the Supreme Court first apply the strictures of the Establishment Clause to states and localities. The Court had previously rendered three rulings permissive of aid to religious organizations. Two of these addressed and rejected challenges to such aid as an impermissible establishment; one sustained aid without reference to the Establishment Clause.

In 1899 the Court upheld an agreement by the District of Columbia to build a hospital that was to be administered by a Roman Catholic order. It relied partly on the absence of a reference to religion in the hospital’s certificate of incorporation and said the hospital must be managed in accord with its defined secular purposes. Nine years later, the Court approved the use of trust funds held by the federal government on behalf of Indians to pay the Bureau of Catholic Indian Missions for providing education. Finally, in 1930, without considering any Establishment Clause argument, it sustained the use of state funds to supply textbooks in parochial and other private schools against the claim that such aid served no appropriate public purpose.

This brings us to Everson’s challenge to the payment of bus transportation for children attending local Catholic schools. The Court applied the Establishment Clause to the states without addressing any of the arguments why that might be misguided. The Court upheld the state’s paying for children to take buses to school, but in a manner that foretold that substantial aid to religious schools would not pass muster.

Just for reference, be aware that the Northwest Ordinance, which was enacted  by the First Congress and signed into law by President Washington, contains the following provision concerning religion:

 "Religion, morality, and knowledge, being necessary to good government and the happiness of mankind, schools and the means of education shall forever be encouraged."

What does this suggest about the Founders' understanding of the Establishment Clause as it relates to religion and government?