% 59 [ 120 ] 



The whole amount of the Smithsonian bequest received into the United 

 States treasury was ,^515,109. The interest which had accrued on the 

 same up to July L, 1S4G, was 1^242,129, making in all §757,298. 



The Regents were audiorized to expend on the buihling the ij;242,129 

 Wliich had accrued in interest, together with such portions of interest on 

 the original bequest as might remain unexpended in any year. They 

 concluded, however, to limit the whole expenditure on the building and 

 tlie grounds to a sum not exceeding .<^--250,000; and, in order tliat this 

 might not exhaust the accrued interest, it was resolved that this expendi- 

 ture should not be made at once, but in the course of five years, and that 

 in the mean time the sum of $5242,000, authorized to be expended on the 

 building, should be invested so as to yield an interest which might in part 

 serve to defray the expense of the building. To carry out this plan, the 

 $242,000, with the addition of accrued interest sufficient to make up the 

 sum of $2.50,000, were invested in treasury notes; and in order that the in- 

 stitution might not be a loser by a possible depreciation of these notes, tiie 

 contracts for the building were made payable in them at par value or in 

 specie, at the option of the Regents. Up to this time, only $50,000 of 

 these notes have been disposed of. They have thus been made to yield a 

 constant interest, besides increasing in value on account of the rise in gov- 

 ernment securities. The whole expenditure since the commencement of 

 operations to the present time, is ,^199, 157 21; the whole of which has 

 been made from the accruing interest on the fund and the sale of 1,50,000 

 of notes above mentioned. 



The f )llowing is a synopsis of the present state of the finances of the 

 institution : 



Amount of Smithson's bequest - - - - |?515,169 00 



Interest due thereon to July 1, 1846 - - - 242,129 00 



757,298 00 



Balance on hand Jarmary 1, 1850 - - - - $8,277 35 



Treasury notes funded 200,000 00 



Permanent fund ....-- 515,109 00 



Present rate of United States loan, 112 per cent.; there- 



fbre add 24,000 00 



747,446 35 

 From this should be deducted, for accounts not rendered - 6,000 00 



741,446 35 



The whole amount paid on the building and grounds up to this time 

 is $134,876 21. 



From this it appears that, after paying for more than one-half of the build- 

 ing, carrying on the operations of the institution, collecting a library and 

 philosophical apparatus, the sum originally intrusted to the Regents has 

 only been diminished by less than §16,000. The object of this scheme 

 of finance is to increase the original fund, which, though sufficient to 

 establish a library and a museum, is found inadequate to meet the 

 demands which result from the comprehensive plan of organization 

 wliich has been adopted. The result lias thus far been so successful, 



