9 [II 



character of the Institution, is in accordanee with as active operations as^ 

 the state of the funds and requisitions of Congress will allow. 



It is to be regretted that Congress did not leave the entire choice of the 

 plan of organization to those who were to be intrusted with the manage- 

 ment of the bequest, and that instead of the plan of a costly building, there 

 had not been adopted the nucleus of a more simple edifice, which could' 

 have been modified to meet the wants which experience might indicate. 



The original estimate for the building, furniture and improvement of 

 the grounds wr.s ::*^2oO,000, and could the aeti^al cost have been confined 

 to this sum, all the results anticipated from the scheme of finance which 

 had been adopted, would have been realized at the end of five years.. 

 During the past year, however, it has been found necessary, for the better 

 protection of the collections, to order the fire proofing of the interior of 

 the edifice at an increased expense of ^44,000. This additional di'aft on 

 the funds can only be met by extending the time for the completion of 

 the building, and even this will require the appro])riation of a portion of 

 the income which ought to be devoted to other })urposes. The active 

 operations will suffer most by this draft on the income, since it will be 

 made for the better accommodation of the Library and the Muscun.i. 



It must not be inferred from the foregoing account, that the affairs of 

 the Institution are in an unfavoia.ble coiidition ; on the contrary, though 

 they are not in every rcsriect what could be wished, slill, under the cir- 

 cumstances I have mentioned, ihev are much betttr than could have been 

 anticipated. The funds are in a very prosperous state and all the obsta- 

 cles in the way of the usefulness of the establishment, may, by judicious 

 management in time be removed. The opposition which v.'as made to the 

 building, led to the adoption of tl.e plan of finance to v.'hieh I have here- 

 tofore adverted, and from this has been realized much more than could 

 have been expected. 



After all the expenditures which have been made on the building, grounds, 

 publications, researchts, purchase of books and apjiariitus, not only is the 

 original bequest untouched, but there is now on hand upvrards of t'f?200,000 

 of accrued interest. This will be sufficient to finish the exterior of the 

 building, including all the towera, the interior of the wings, ranges, and a 

 })art of the interior of the main edifice; which will afford sufficient accom- 

 modation for some yeais to come, ;;nd leave !^?1'jO,()00 to hv added to the 

 principal. 



This result has been produced by a i-igid adherence to the determina- 

 tion of increasing the annual income, and in accordance with this, and in 

 obedience to the direction of the Board of Regents, a petition has been 

 ])resented to Congress, asking that ^loO^OOO may be taken from the In- 

 stitution and placed in the Treasury of the United States, on the same 

 terms as those of the acceptance of the oiiginal bequest, never to be es- 

 j)ended, and yielding a perpetual interest of six per cent. 



If this petition be granted, all the funds will be permanently and safely 

 invested, and the original income will be increased from iiT^:>(),()()0 to nearly 

 ^40,()()i). Out of this, beside carrying on the more important object of 

 the phin, it is proposed to appropriate yearh', a small sum I'or the gradual 

 completion of the interior of the building. 



The great importance of a small addition to the income will be evident, 

 when it is recollected that a definite sum is annually requirt d to defraj 

 the necessary expenses of the establishment, and that after this has been 



