EEPORT OF THE SECRETARY. 5 



Subsequently application was made to tlie Institution by several 

 other committees for the use of the building after the inaugural recep- 

 tion on the 4th of IMarch. These were all refused, although the objects 

 in view were praiseworthy in themselves. 



FINANCES. 



General Condition. — It is believed that the finances of the Institution 

 have never been in amore favorable condition than they are at the pres- 

 ent time.* 



As the income of the Smithson fund is a definite one and can be 

 calculated upon almost to a cent, year by year, it is, of course, i^racticable 

 to estimate the expenditures with much iirecisiou. ISTo thing but some 

 calamity, such as the destruction or serious injury of the l>nilding, is 

 likely to involve an outlay that would seriousl}" interfere with the general 

 programme for the year. 



Under the general limitations of the apj)ropriations made by the 

 Board of Regents, for the dilferent classes of expenditure, it is, of course, 

 a matter of proper business management to incur no liabilities for the 

 year beyond those that the fund is able to meet ; and a strict adher- 

 ence to this rule has prevented any embarrassment in regard to pay- 

 ments. There has been no indebtedness at the end of the year except 

 that for some incomplete publications, and for which the necessary pro- 

 vision had been made. 



Eeference has been made in this report to several bequests, by which 

 the principal of the fund has been increased, the first of these being 

 that of Mr. James Hamilton, of Carlisle, which, amounting to $1,(00 

 was added to the princijial of the Smithson fund in the United States 

 Treasury. 



Mabel Bequest. — An account was given in the last report, of the 

 bequest of $402.59 to the Smithsonian Institution by Dr. S. Habel, of 

 New York. By authority of the executive committee, the sum of 

 $97.41 was appropriated from the annual income of the Institution and 

 added to the above in order to make up the amount of $500. This 

 was then deposited in the United States Treasury to the credit of the 

 Smithsonian endowment, under the provisions of law. 



The Habel bequest thus slightly eularged and added to the Hamilton 

 fund of $1,000, making the sum of $1,500, will yield annually at 6 per 

 cent, an income of $90. It is proposed to devote this special income to 

 the prosecution of ethnological and archaeological research. 



The funds of the Institution now in the treasury, according to the 

 report of the executive committee, amount, with these two bequests, to 



*Tbe eiidbwment (referred to elsewhere) is for the most part in the U. S. Treasury, 

 where the principal can never be touched, and it yields an annual interest of six per 

 cent. A small portion is invested in Virginia State securities. 



