CONGRESSIONAL PROCEEDINGS. 



In this condition of the fund, the act of August 10, 1840. wa< passed, 

 entitled " An act to establish the Smithsonian Institution, for the increase 

 and diffusion of knowledge 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 

 ao-ent in London, thus assuming the expensed incurred, and leaving the 

 original bequest unimpaired for the use of the institution. It provided 1<.r 

 the payment of interest on the said sum from the time of receipt, at six JUT 

 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 erec- 

 tion of suitable buildings, and the interest thereafter to accrue for the main- 

 tenance and support of the institution. But the act at tin- >amr time pro- 

 vided "that all the stocks which may have been or may In n-af'tn- In- 

 received into the treasury of the United States on account of the fund 

 bequeathed by James Smithson be, and the same are hereby, plcd-v.l to 

 refund to the 'treasury of the United States the sums hereby appropriated." 



With this brief explanation of tin- hi>t<>ry of tin fund, including the 

 legislation thereon, the committee, it is hoped, will find tin Mai.iii.-ni~ re- 

 ferred to sufficiently intelligible. 



A is a statement showing on the one hand, 1st, the amount originally re- 

 ceived into the Treasury ; 2d, the amounts received for inter. -t : and, 8dj 

 the amount of United States stock redeemed, this amount ($5,523.21) bring 

 part of the sum of $106,184.85, mentioned in same statement ; and, on tin; 

 other hand, 1st, the investments made for the benefit of tin- institution; 

 2d, an expense incurred in the management of the fund ; and, 3d, the bal- 

 ance remaining on hand. 



Statement B shows the amount of stock imw In-ld. and the different de- 

 scriptions 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 forty cents on the dollar. 



C is a statement showing on the one hand tin- interest which has accrued 

 on these stocks, and on tin- other hand, M, (he interest which has been re- 

 ceived, and, 2d, the interest which is due and uncollccted. 



D is a statement of the interest which has accrued on the sum of $515,109 

 under the act of August 10, 1846, all of which has been paid up to the 31st 

 December, 1853, 1st, for the erection of the building, and, 2d, for the sup- 

 port of the institution, in pursuance of the terms of said act. 



From these statements it appcar< that the fund which is pledged to reim- 

 burse to the Treasury the amount appropriated by the act of August 10, 

 1846, may be stated as follows : 



1. Stocks on hand of the par value of $720,661 64 



2. Balance of cash in the Treasury 18,646 83 



3. Balance of interest uncollected 369,316 32 



$1,108,624 79 



It is estimated that, by authorizing the Secretary of the Treasury to re- 

 deem the stocks of the United States^held in trust for the institution at the 

 rates of premium offered for said stocks, and to sell the stocks of the States 

 of Illinois, Ohio, and Michigan, at their market price, the sum of $199,844 

 may be realized and applied towards the reimbursement of the said appro- 

 priations, and I respectfully recommend that authority may be given to 

 pursue this course. 



I have the honor to be, very respectfully, 



JAMES GUTHRIE, 



Secretary of the Treasury. 

 Hon. Jos. R. CHANDLER, 



Chairman Select Committee on Smithsonian Fund. 



