EEPOET OF THE SECRETARY. 15 



partially rearranged, and a new catalogue of the transactions and 

 proceedings of learned societies prepared for publication. Ex- 

 tensive repairs and improvements have been made in the build- 

 ing, by which several rooms, previously occupied by tanks for receiv- 

 ing rain water, now rendered useless by the introduction of Potomac 

 water, have been reclaimed for other uses. 



The efficient income of the Institution has been very essentially 

 impaired during the past year. 1st. By the increased price of 

 all the materials of printing and other articles used in the opera- 

 tions of the establishment. 2d. On account of the high premium 

 on gold required to pay the agents of the Institution in Europe and 

 to meet the incidental expenses of exchanges, and the cost of serials 

 and other works necessary for the use of the collaborators and other 

 persons engaged in researches for the Institution. 3d. In conse- 

 quence of the non-payment of the interest on the southern State 

 stocks forming part of the extra fund. 



Still it will be seen by the report of the Executive Committee that 

 the expenditures of the Institution during the past j'ear have been 

 kept within the receipts, and a large balance retained in the treasury 

 to meet the contingencies which may arise, particularly in the present 

 unstable condition of public affairs. 



The interest on the Indiana stock for the first half of the year ,vas 

 paid in specie, which was deposited with Messrs. Riggs & Co., with 

 the understanding that it could be withdrawn in the same currency 

 at any time it might be required. In the settlement of the accounts 

 for the J ear this specie was sold and the premium added to the re- 

 ceipts. 



A power of attorney has been forwarded from the President of the 

 United States to Messrs. Fladgate, Clarke & Finch, of London, author- 

 izing theai to collect the remainder of the Smithsonian fund, which 

 was left, by the Honorable Mr. Rush, as the principal of an annuity to 

 the mother of the nephew of Smithson. Tlio power of attorney was 

 forwarded to the care of Honorable Charles F. Adams, American 

 minister to England, and the money, when collected, will be de- 

 posited with George Peabody & Co., bankers, London, subject to the 

 order of the Institution. 



As a fact connected with the history of this establishment, I may 

 mention that the charter of a society in this city known as the National 

 Institute expired in July last, and that in accordance with the law of 



