176 JAMES SMITHSON AND HIS BEQUEST. 



declare that lie would rather see the money of Smithson thrown into the 

 Potomac than to have it devoted to the advance of education. 



It appears that, without debate or explanation, a section was added 

 to the regular appropriation bill, passed 7th July, 1838, for the support 

 of the United States Military Academy at West Point, by which it was 

 enacted that all the money arising from the bequest of Smithson should 

 be invested, when received, by the Secretary of the Treasury, with the 

 approbation ot the President of the United States, in stocks of States 

 bearing not less than five per cent, interest, and that the annual income 

 accruing on the stock should also be reinvested in the same way for the 

 increase of the fund. 



In accordance with this law, Mr. Levi Woodbury, Secretary of the 

 Treasury, inserted an advertisement in the Washington Globe of August 

 (j, 1838, asking for proposals from those having State stocks to dispose 

 of. A large number of offers were received. Five per cents, of Indiana 

 were offered at par, 98, and 90; of Louisiana, at 98; New York, 10U ; 

 Maine, 98£ and par; Massachusetts, 10-1; Kentucky, par; of five and a 

 quarter per cents., Tennessee, at 99£; of five and a half per cents., Mis- 

 souri, at 102 and par; and of six per cents., Michigan, at par; Virginia, 

 par; Illinois, 104, and Arkansas, 99^. Mr. Woodbury accepted the 

 offer of Mr. W. W. Corcoran, of the Arkansas bonds, and purchased 

 $500,000 of them for the sum of $199,500. Subsequently he procured 

 $38,000 more bonds of Arkansas, $8,000 Michigan, $50,000 Illinois, and 

 $18,000 Ohio bonds. 



The two bills of Mr. Bobbins and Mr. Adams, representing the univer- 

 sity and the observatory plans, were reported together to Congress. The 

 former was laid on the table, but the latter not acted on, on account of 

 the pressure of other business at the close of the session. 



In 1811, Mr. Lewis F. Linn, of Missouri, introduced a bill in the Senate 

 to appoint trustees for the investment of the Smithson fund, and for the 

 organization of an institution with a superintendent and six professors, 

 to be nominated by the "National Institute," a society which had been 

 formed in Washington for the promotion of science, and many of whose 

 members were anxious to obtain control of the bequest. Mr. Linn pro- 

 posed that all the collections of art and of natural history owned by the 

 United States should be given to the Smithsonian Institution, but all 

 the buildings, collections, &C, should be under the supervision of the 

 National Institute. This bill was referred to the Library Committee, 

 and a substitute was reported by Mr. Preston on the 17th February, IS 11 . 

 providing for the incorporation of the National Institute, and the estab- 

 lishment of a Smithsonian Institution, with a superintendent and six pro- 

 fessors, to be elected by the board of managers of the former, the offi- 

 cers of the institute and the superintendent of the Smithsonian Institu- 

 tion to constitute a board of management of the Smithson fund, to plan 



