638 CONGRESSIONAL PROCEEDINGS. 



In this condition of the fund, the act of August 10, 1846, was passed, 

 entitled " An act to establish the Smithsonian Institution, for the increase 

 and ditiusion of knowledge among men." 



The act recognized as a debt due from the United States the sum so received 

 and invested. It fixed the said sum at $515,169, the sum received by the 

 agent in London, thus assuming the expenses incurred, and leaving the 

 original bequest unimpaired for the use of the institution. It provided for 

 thepayment of interest on the said sum from the time of receipt, at six per 

 cent., payable on the 1st January and 1st July of each year, appropriating 

 the interest which had so far accrued, amounting to $242,129, for the erec- 

 tion of suitable buildings, and the interest thereafter to accrue for tlie main- 

 tenance and support of the institution. But the act at the same time pro- 

 vided " that all the stocks which may have been or may hereafter be 

 received into the treasury of the United States on account of the fund 

 bequeathed by James Smithson be, and the same are hereby, pledged to 

 refund to the treasury of the United States the sums hereby appropriated." 



With this brief explanation of the history of the fund, including the 

 legislation thereon, the committee, it is hoped, will find the statements re- 

 ferred to sufficiently intelligible. 



A is a statement showing on the one hand, 1st, the amount originally re- 

 ceived into the Treasury; 2d, the amounts received for interest; and, 3d, 

 the amount of United States stock redeemed, this amount ($5,523.21) being 

 part of the sum of $106,184.85, mentioned in same statement; and, on the 

 other hand, 1st, the investments made for the benefit of the institution ; 

 2d, an expense incurred in the management of the fund ; and, 3d, the bal- 

 ance remaining on hand. 



Statement B shows the amount of stock now held, and the different de- 

 scriptions of which it is composed. It shows also the present market value 

 of said stocks, with the exception of the Arkansas, which is, perhaps, not 

 worth more than forty cents on the dollar. 



C is a statement showing on the one hand the interest which has accrued 

 on these stocks, and on the other hand, 1st, the interest which has been re- 

 ceived, and, 2d, the interest which is due and uncollected. 



D is a statement of the interest which has accrued on the sum of $515,169 

 under the act of August 10, 1846, all of which has been paid up to the 31st 

 December, 1853, 1st, for the erection of the building, and, 2d, for the sup- 

 port of the institution, in pursuance of the terms of said act. 



From these statements it appears that the fund which is pledged to reim- 

 burse to the Treasury the amount appropriated by the act of August 10, 

 1846, may be stated as follows : 



1. Stocks on hand of the par value of $720,661 64 



2. Balance of cash in the Treasury 18,646 83 



3. Balance of interest uncollected 369,316 32 



$1,108,624 79 



It is estimated that, by authorizing the Secretary of the Treasury to re- 

 deem the stocks of the Unit(.'d States held in trust for the institution at the 

 rates of premium oifered for said stocks, and to sell the stocks of the States 

 of Illinois, Ohio, and Michigan, at their market price, the sum of $199,844 

 may be realized and applied towards the reimbursement of the said appro- 

 priations, and I respectfully recommend that authority may be given to 

 pursue this course. 



I have the honor to be, very respectfully, 



James Guthkie, 



Secretary of the Treasury. 

 Hon. Jos. E. Chandler, 



Chairman Select Committee on Smithsonian Fund. 



