REPORT OF THE SECRETARY. 11 



property, which is partly in lands iu Kansas, caunot be determined at 

 lireseut, and if not claimed by heirs may possibly require the action of 

 Congress. 



MEETirsG OF THE ESTACLISHMEr^T. 



The law of Congress organizing the Smithsonian Institution directs 

 that the President and his Cabinet, the Chief Justice, the Commissioner 

 of Patents, and such other persons as they may elect honorary members, 

 may hold stated and special meetings for inspecting the affairs of the 

 Institution, and, in accordance with this provision, a meeting of that 

 body was hoJd on the o!;h of Maj-, 1877. There were present the Presi- 

 dent of the United States, R. B. Hayes ; the Secretary of State, W. M. 

 Evarts ; tlie Secretary of the Treasury, John Sherman ; the Secretary 

 of V^ar, Gi'orge W. ]McCrary ; the Secretary of the Interior, Carl Schurz: 

 the Attorney General, Charles Devens, and the Postmaster-General, D. 

 M. Key. 



The Secretary of the Institution, who is also the secretary of this body, 

 gave a full account of the history, operations, and state of the finances 

 of the Institution ; and, after listening to it with interested attention, the 

 President, on behalf of the meeting, expressed the opinion that the con- 

 dition and management of the Institution were entirely satisfactory, and 

 that they had no improvement to suggest. After inspecting the build- 

 ing, the museum, and the system of exchanges, and examining the pub 

 lications, the meeting adjoni-ned to meet on the 1st Tuesday in May, 1878. 



FINANCES. 



The condition of the funds is nearly the same as iu 1870. The only 

 difference is a diminution iu the marketable value of the Virginia bonds 

 which has fallen from $12,000 to $31,502. This decline was occasioned 

 by propositions made in the legislature of the State which were thought 

 to savor of repudiation, but those propositions have not met with fa- 

 vorable consideration, and it is now confidently expected that the bonds 

 will again advance in value. 



The following is a statement of the condition of the fund at the begin- 

 ning of the year 1878 : 



The amount originally received as the bequest of James 

 Smithson, of England, deposited in the Treasury of the 

 United States in accordance with the act of Congress of 

 August 10, ISIG $515, 109 CO 



The residuary legacy of Smithson, received in 1805, depos- 

 ited in the Treasury of the United States in accordance 

 with the act of Congress of February 8, 1807 20, 210 03 



Total bequest of Smithson 511, 379 03 



Amount deposited in the Treasury of the United States, 

 as authorized by act of Congress of February 8, 1807, 

 derived from savings of income and increase in value of 

 investments 108, 020 37 



