492 REPORTS OF THE EXECUTIVE COMMITTEE. 



From the foregoing exhibit it will be seen that the funds of the Institution have 

 been carefully husbanded, are now in a good condition, and that, though the cost of 

 the building will exceed the first estimate, yet the original plan of saving a portion 

 of the accrued interest to increase the capital, will, in due time, be carried out. 



The committee are of opinion that an expenditure of twenty-five thousand dollars 

 may be allowed from the annual income for defraying the expenses of the Institu- 

 tion, and for carrying on the several parts of the programme, during the present 

 year, and they will hereafter introduce a resolution to that effect. 



Signed, A. D. BACHE, ) 



J. A. PEAECE, [ Committee. 

 JOS. G. TOTTENj 



Report of the Executive Committee for the year 1851. 



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

 of Kegents, it becomes the duty of the Executive Committee to examine and certify 

 the accounts, and to advise with the Secretary with reference 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 follow- 

 ing report relative to the same : 



The operations of the Institution now follow a regular course, and therefore as 

 frequent meetings of the committee are not required as at the beginning. 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 opportunity of judg- 

 ing of their value, and whether they are in accordance with the will of the testator. 

 It is, however, of the first importance that the financial condition of the Institution 

 should be frequently and critically examined, 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, 1850, 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 accounts are revised by the Execu- 

 tive Committee. The Executive Committee have examined every account paid since- 

 the date mentioned, and find that each is attended with the proper voucher, and that 

 the expenditures have been judiciously and economically made. 



They are happy to inform the Board that the financial affairs of the Institution 

 are still in a very favorable condition, as will be seen by the following statement : 

 The whole amount of the Smithsonian bequest received into the Treas- 

 ury of the United States, was $515,169 0O 



The annual interest on the same, at 6 per cent., is $30,910.04; the 

 interest which had accrued up to July, 1846, when the trust was 

 placed under the care of the Kegents, was 242,129 00 



Total 757,298 0O 



Out of this sum the Eegents were authorized to expend on the building $242,129,. 

 which had accrued in interest, together with such portions of interest on the original 

 bequest as might remain unexpended in any year. 



The Kegents, 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 authorized to be used for this purpose should be put at 

 interest, so that the 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 United States securities. This plan of finance has been 

 rigidly adhered to, and it now appears from the account books of the Institution that 

 after all the expenditures on the building and grounds, on researches, publications 

 and lectures, on the library, museum and gallery of art, there is on hand govern- 

 ment security valued, at the present rate of premium, at $209,700, so that the original 

 amount and interest which had accrued previous to the time at which the Institution 

 came into the charge of the Kegents, has only been diminished by about $33,000. 



In accordance with a part of this plan, Congress has been requested to take from 

 the Institution $150,000, to be placed with the original bequest as a part of the princi- 



