SMITHSONIAN BEQUEST. 127 



Acuities, the money 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 Secretary of the Treasury, and in accordance with 

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

 sonian bequest should be invested in United States securi- 

 ties, it was expended in the purchase of government bonds, 

 bearing interest at the rate of 7-j\ per cent. The amount 

 realized in bonds of this denomination, at par, was $54,150. 

 It was at first supposed that this money, or at least the 

 interest upon it, could immediately be applied to the uses 

 of the Institution, but from a critical examination of the 

 enactments of Congress in reference to the Smithsonian 

 fund, it was found that the appropriation of the bequest by 

 the act organizing the establishment in 1846, 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 scarcely be 

 doubted, however, but that Congress intended to appropriate 

 the whole of the bequest to the maintenance of the estab- 

 lishment; still, for this purpose, a special act will be re- 

 quired, and it is desirable that the sum recently 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 usual commission, allowed 

 four per cent, on the money while it remained in his hands. 



From Proceedings of the Board of Regents, February 2, 1865. 



Professor Henry presented the question as to the dispo- 

 sition 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 Mr. Patterson, it was 



Resolved, That the Secretary be instructed to invest the 

 money now on deposit with the Treasurer of the United 

 States, derived from the residuary legacy of James Smith- 

 eon, in United States bonds bearing 7^ per cent, interest. 



From Report of the Secretary for the year 1865. 



It has been mentioned in the two preceding reports, that 

 part of the original bequest had been left in England as the 



