The goals of (state) education aren't set by teachers, but by society.While teachers do have some input into that debate, ultimately they are employees of the system.
Society sets competing goals for education, which are always in tension. Labaree (1997) describes these as Democratic Equality (producing good citizens, which might include morals and or religion), Social Efficiency (equiping students with the skills needed by the workforce) and Social Mobility (giving each individual student the best chance of getting ahead in life). Currently the last of those is the predominant driving force in education in the US (according to Labaree) and I would think in most western countries. Teacher's have no choice but to respond to these demands.
And now that I think about it.. they had such strong values back then because they did allow the Bible and prayer into schools.
Not because they read their bibles at home then?
Schools cannot fix society's problems.
Now, I feel like teachers are teaching worldly materialistic values. "I can't teach because I don't have any supplies. I need new books. I need more..."
Try teaching mathematics without good quality textbooks, manipulatables and other resources. Try teaching IT without computers. Try teaching science without a lab. Try teaching English without literature.