REPORT OP THE SECRETARY 3 



have grown up around the Institution and are administered by it, not 

 one cent from these appropriations can be used by the Institution 

 proper for the purpose for which it was created, " the increase and 

 diffusion of knowledge among men." 



These purposes, which are carried out through research, explora- 

 tion, and publication, must be supported by the funds of the Institu- 

 tion itself or by money contributed for special purposes by the friends 

 of the Institution. As the endowed funds of the Institution, con- 

 sisting of the original bequest to the Nation of James Smithson 

 and subsequent gifts and bequests, amount to only a little over a mil- 

 lion dollars, yielding an available annual income of approximately 

 $60,000 from which the administrative costs of the Institution and of 

 the general direction of its seven branches must be paid, it will be 

 readily apparent that but little remains each year for research and 

 exploration. It is believed that if the financial situation of the 

 Smithsonian Institution and its excellent position for carrying on 

 needed scientific work were more fully understood, there would be 

 ready response to its plea for a larger endowment, and its program 

 of scientific research and exploration could then be expanded and 

 pushed vigorously, to the ultimate benefit of mankind. 



An outstanding event of the year was the formal opening on May 

 2, 1923, of the Freer Gallery of Art, the culmination of Mr. Charles 

 L. Freer's splendid gift to the Nation, through the Smithsonian In- 

 stitution, of his unrivalled collections of American and Oriental art 

 and a beautiful building to house them. The opening was well 

 attended and was the cause of favorable comment in art circles 

 throughout the country, many of the leading art journals carrying 

 full accounts of the gallery and its contents. The building is now 

 open to the public daily except Mondays. 



FINANCES 



The permanent investments of the Institution consist of the 

 following : 



Deposited in the Treasury of the United States $1, 000, 000 



CONSOLIDATED FUND 



Miscellaneous securities carried at cost of $192,770.28, either purchased or 

 acquired by gift, and constituting the consolidated fund, namely: 

 West Shore Railroad Co. guaranteed 4 per cent first-mortgage bonds, 



due in 2361 $42,000 



Cleveland Electric Illuminating Co. first-mortgage 5 per cent gold 



bonds, due in 1939 10,000 



Atchison, Topeka & Santa Fe Railway Co. 4 per cent general mortgage 



bonds, due in 1995, gift 2,000 



Chesapeake & Ohio Railroad Co. first consolidated mortgage 5 per cent 



bonds, due in 1939, gift 2, 000 



Baltimore & Ohio Railroad Co. 5 per cent refunding general mortgage 



bonds, due in 1995, gift - 5,000 



