SMITHSONIAN BEQUEST. 115 



originally employed by Mr. Kush) to collect the money. After a 

 considerable delay, arising principalh" from technical difficulties, the 

 mone}' was obtained and deposited to the order of the Institution, with 

 George Peabody & Co., bankers, London. It was subsequently drawn 

 through the agency of the Secretar}- of the Treasury, and, in accord- 

 ance with the law of Congress directing that the money of the Smith- 

 sonian bequest should be invested in United States securities, it was 

 expended in the purchase of Government bonds, bearing interest at 

 the rate of 7.3 per cent. The amount realized in bonds of this denom- 

 ination at par was $54,150. It was at first supposed that this mone}^, 

 or at least the interest upon it, could immediately be applied to the 

 uses of the Institution, but from a critical examination of the enact- 

 ments of Congi-ess in reference to the Smithsonian fund, it was found 

 that the appropriation of the bequest b}^ the act organizing the estab- 

 lishment in 1840, related only to that part of the bequest which had 

 already been received, and made no provision for the disposition of 

 the residuary legacy which has just become available. It can scarcelj'' 

 be doubted, however, but that Congress intended to appropriate the 

 whole of the Ijequest to the maintenance of the establishment. Still, 

 for this purpose, a special act will be required, and it is desirable that 

 the sum recent!}^ received be deposited in the Treasury on the same 

 condition with the amount originally obtained — that the interest alone 

 shall be subject to expenditure. In this connection it is proper to 

 remark that Mr. Peabody, who received the deposit of the fund, so 

 far from claiming the visual commission allowed 4 per cent on the 

 money while it remained in his hands. 



From, Proceedings of the Board of Regents^ Febrxiary ^, 1865. 



Professor Henry presented the question as to the disposition of the 

 residuary legacy of Smithson which had been received from England, 

 and was now on deposit with the Treasurer of the United States. 



On motion of Hon. J. W. Patterson, it was 



Resolved., That the Secretar}^ be instructed to invest the money now 

 on deposit with the Treasurer of the United States derived from the 

 residuary legac}^ of James Smithson in United States bonds bearing 

 7.3 per cent interest. 



From Report of the Secretary for the year 1865. 



It has been mentioned in the two preceding reports that a part of 

 the original bequest had been left in England as the principal of an 

 annuity payable to the mother of Smithson's nephew. The annuitant 

 having died, a power of attorney signed by Abraham Lincoln, Presi- 

 dent of the United States, was sent to Fladgate, Clarke & Finch, solici- 



