REPORT OF THE SECRETARY. 11 



his duties until any necessary provision can be made by tlie Board in 

 lull session, it not being expected that the Board could be brought 

 together outside of the period of the meeting of Congress. This reso- 

 lution has already passed the Senate, and it is hoped will soon x)ass the 

 House and become a law. 



The only change in the Board of Eegents to be placed on record is 

 the resignation of Mr. Bancroft and the election of General Sherman, a 

 former Eegent, to fill his place. General Sherman was also elected by 

 the Board at its special meeting of the 17th of May to serve as one of 

 the Executive Committee. 



The continued expansion of the operations of the Institution, especially 

 those connected with its department of international exchanges, has 

 called for accommodations more extended than those that have been 

 available ; and Professor Henry, for some time before his death, had in 

 contemplation a removal from that portion of the building occupied by 

 his family, to a private residence in the city. He was considering this 

 question more urgently when his illness supervened, and of course inter- 

 rupted any further action on his part. 



Although the occupation of the east wing of the building free of rent 

 was one of the privileges of the Secretary of the Institution, I found 

 that all the rooms ia the building could be used to great advantage as 

 offices of the Institution ; and I therefore determined, with the consent 

 of the members of the Executive Committee, to devote them to that 

 purpose. A door was opened in the waU separating the present rooms 

 from the ai)artments adjacent to them, and some other trifling inex- 

 pensive alterations were made, by which the entire house was trans- 

 formed into a series of offices and work-rooms. Every room is now in 

 use, and the entire force of clerks and employes has been concentrated 

 in the east range and wing, so that they are closely connected in their 

 work, adding very greatly to the efficiency of operations. 



A system of electric bells and telephones has been established through- 

 out the building, by means of which instant communication can be had 

 between the several offices and work-rooms without involving the loss 

 of time required to pass fi'om one to another, or without calling any one 

 from his work. 



FINANCES. 



In the report of the Executive Committee will be found a detailed 

 statement of the finances of the Institution, which are believed to be in 

 a satisfactory state. The amount to the credit of the late Secretary at 

 the time of his death was $8,522.98. This was transferred on the 2Sth 

 of May, 1878, to the credit of his successor, with whom a new account 

 was opened at the Treasury. The premium oh the gold-bearing interest 

 of the Smithsonian endowment, which has heretofore constituted a more 

 or less prominent item of the receipts for the year, has, of coiu'se, disap- 

 peared j only a small percentage having been realized on the July pay- 

 ment. As the natural counterj)art to this, however, the reduction in 



