14 EEPORT OF THE SECRETARY. 



been widely copied in this country and in Europe, that the bequest of 

 Smithson had been lost by improper investment ; but those who are 

 acquainted with the history of the estublishment know that this state- 

 ment is without the slightest foundation in fact. The government of 

 the United States in accepting the bequest upon the stipulated terms 

 of the will, became, by an act of Congress, approved by the Presi- 

 dent, the trustee of the fund and guardian of the Institution. The 

 agent appointed to receive the money brought it to this country in 

 British gold, and deposited it in the United States mint in Philadel- 

 phia, where it was recoined into American eagles. The government 

 thus became, by express enactment as well as by the highest equita- 

 ble considerations, responsible for the security of the funds as well as 

 for the faithful administration of the trust. It is true that ^lie Secre- 

 tar}^ of the Treasury, before the money had been permanently in- 

 vested by Congress, lent it to several of the western States to assist 

 in carrying on their works of internal improvement ; but it would 

 have been alike inconsistent with strict justice and the liberal policy of 

 our government, to devolve on the Smithsonian fund any risk or loss 

 which might result from this financial operation. Congress, there- 

 fore, declared, by a joint resolution, that the money of the bequest 

 was to be considered as a fund lent to the Treasury of the United 

 States, the interest of which, at the rate of six per cent, per annum, 

 is to be applied to the perpetual support and maintenance of the In- 

 stitution. It is proper to state in this connexion that the government 

 itself will in time, probably, be reimbursed for the money advanced 

 to the States, since, in accordance with a rule established by the Hon. 

 Robert J. Walker, when Secretary of the Treasury, all money re- 

 ceived in the Treasury on account of the States to which the loan was 

 made is to be retained until the debt of each is fully satisfied. In 

 this way nearly four hundred thousand dollars have already been re- 

 ceived. 



Not only does the original fund of Smithson thus remain safe and 

 unimpaired in the treasury of the United States, but, after paying 

 for the building, collecting a library and museum, and conducting all 

 the operations which have given character to the establishment, out 

 of the income; an extra fund has been accumulated from the interest 

 itself, which, at the date of the last report, yielded seven thousand 

 seven hundred and sixteen dollars. 



Unfortunately, a part of this fund has been unproductive during 

 the past year. A petition from the Board of Regents was presented 



