490 CONGRESSIONAL PROCEEDINGS. 



The sum received in London from the bequest of Mr. Smithson by the agent of the 

 United States appointed in pursuance of the act of July 1, 1836, Avaa 515,169. But 

 the sum actually received into the Treasury was $508,318.46, the difference between 

 the two sums having been absorbed by certain expenses in collecting and transferring 

 the money to the United States. 



By the sixth section of the act of July 7, 1838, it was provided that the money so 

 received should be invested by the Secretary of the Treasury, with the approbation 

 of the President of the United States, in stocks of States, bearing not less than 5 per 

 cent interest, and that the said stocks should be held by the said Secretary in trust for 

 the uses specified in the last will and testament of James Smithson, until provisions 

 should be made by law for carrying the purposes of the said bequest into effect, and 

 the annual interest accruing on the stock aforesaid should, in like manner, be invested 

 for the benefit of the said Institution. 



By the act of September 11, 1841, so much of the before-mentioned act as author- 

 ized investments in stocks of the States was repealed, and the Secretary of the Treas- 

 ury was required thereafter to invest in stocks of the United States. 



But between the dates of these two acts the sum of $508,318.46, together with the 

 interest accruing on the first purchase, was invested in stock of the State of Arkansas, 

 upon which the State, in the sequel, failed to pay interest, and upon which, from 

 the time of such failure, nothing has been realized, except certain sums which have 

 accrued to the State from the sale of public lands under what is commonly called the 

 5 per cent fund. 



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 diffusion of knowl- 

 edge 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 the payment of interest on the said 

 sum from the time of receipt, at 6 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 erection of suitable buildings, and the interest thereafter to accrue 

 for the maintenance and support of the Institution. But the act at the same time 

 provided " 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 referred to sufficiently 

 intelligible. 



A is a statement showing on the one hand, first, the amount originally received 

 into the Treasury; second, the amounts received for interest; and, third, 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, first, the invest- 

 ments made for the benefit of the Institution; second, an expense incurred in the 

 management of the fund; and, third, the balance remaining on hand. 



Statement B shows the amount of stock now held, and the different descriptions 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 40 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, first, the interest which has been received, and, second, 

 the interest which is due and uncollected. 



