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REPORT OF THE EXECUTIVE COMMITTEE. 



By the act of Congress incorporating the Institution, and a resolution of 

 the Board of Regents, it becomes the duty of the Executive Committee to 

 examine and certify the accounts, and to advise with the secretary with re- 

 ference to the operations which may be undertaken in accordance with the 

 plan of organization. The committee, during the past year, have attended 

 to these duties and beg leave to submit the follovring report relanive to the 

 same : 



The operations of the Institution nowfollov.' a regular course, and there- 

 fore as frequent meetings of the cormi:iittee are not required as at the begin- 

 ning. Indeed, they prefer to leave the principal direction of the affairs of 

 the Institution to the secretary, believing that individual responsibility is 

 the safe ground for confidence in the proper administration of a trust of this 

 kind. 



The .active operations being of a public character, there is full opportu- 

 nity of judging of their valiie, and whether they are in accordance with 

 the will of the testator. It is, however, of the first importance that the 

 financial condition of tlie Institution should be frequently and (uitically ex- 

 amined, and that it should be seen that every account paid has a proper 

 voucher, and that all money has been properly expended in accordance with 

 the appropriations of the board. 



A new system of accounts was introduced in July, 1859, in accordance 

 with which, all bills presented for payment are audited and certified by the 

 secretary, on whose order they are paid by the treasurer, and all the ac- 

 counts are revised by the Executive Committee. .The Executive Committee 

 have examined every account paid since the date mentioned, and find that 

 each is attended with the pro})er voucher, and that the expenditures have 

 been judiciously and economically made. 



They are happy to inform the Board that the financial affairs of the In- 

 stitution are still in a very favorable condition, as will be seen by .the fol- 

 lowing statement : 



The whole amount of the Smithsonian bequest received into 



the Treasury of the United Stares, was - - - - Sol5,169 00 



The annual interest on the same at G per cent, is ^30,910 04 ; 

 the interest which had accrued up to July, 184G, wljen the 

 trust was placed under the care of the Regents, vras 242,129 00 



Total ^.-.«. - 757,298 00 



Out of this sum the Regents were authorized to expend on the building 

 S242,129, VN'hieh had accrued in interest, together with such portions of in- 

 terest on the original bequest as might -remain unexpended in any year. 



The Regents, however, thought it advisable to increase the principal, 

 and in order to do this, resolved 'that the erection of the building should be 

 spread over a number of years, and that the sum authorised to be used for 

 this purpose should be put at ir^erest, so that thfe income from this source 

 might in part defray the expense of the edifice. To carry out this plan, 

 $250,000 of accrued interest were drawn from the treasury and invested in 



