Schools were financed by local districts, because states didn't levy taxes. In the early days of settlements, schools were financed by individual subscription. A family might pay $1 to $1.50 per month for a five month school year. A teacher who was fortunate might get a dollar a day. By 1900, Nebraska, Kansas, and Iowa had the highest literacy rate in the nation.
Many of the first teachers were teenage girls, but there were some male teachers. Teachers were often boarded in some of the students homes.
Most of the materials were provided by the parents, often these were a black board and books. Books often were a Bible, hymnal, almanac, and a dictionary. Subjects stressed were reading, writing, arithmetic, U.S. history and geography.
The number of Class 1 (country schools) has been steadily dropping since the early 1900's, due in part to fewer farmers and smaller districts. The numbers dropped from 142 districts in 1914-1919 to 17 in 1991. The majority of the districts dissolved to join with k-12 districts and those still in operation have gone from k-8 system to k-6 grade school.
Todays Hallam children attend either Crete Public Schools system or Norris Public School. Most of the in town students are being transported by bus to Crete.