REPORT OF THE SECRETARY. 5 



$10,352, with bills falling due to the amount of not more than $3,000. 

 The funds are therefore in a better condition at present than they were 

 a year ago by upwards of $18,000. The Institution having paid all 

 indebtedness incurred by repairs on the building, could to-day wind up 

 its affairs not only without debt, but with the capital exhibited in the 

 following statement : 



The whole bequest of Smithson, in United States treasury . . $511,379 63 

 Additions from savings, &c, in United States treasury.. . 10S,620 37 



Virginia State stock, $72,760, valued at 40,000 00 



Cash on hand 7,000 00 



Total capital 697,000 00 



While every part of the original programme has been rigidly carried 

 out, the large increase in the capital exhibited in the foregoing state- 

 ment may justly be claimed as the result of frugal management and 

 a judicious investment of the interest annually accruing. 



At the commencement of operations definite lines of policy were 

 adopted, the object of which was to insure the expenditure of the income 

 in such a manner as most effectually to realize the conceptions of the 

 founder in his generous purpose of promoting the " increase and diffusion 

 of knowledge among men." Of the principles judged conducive to this 

 end an important one was embodied in the resolution to co-operate, 

 as far as possible, with individuals and institutions engaged in the 

 same work, especially with those in the city of Washington. An obvious 

 corollary of this was the determination to make no appropriation of the 

 funds to the furtherance or support of any object which could be accom- 

 plished as well by other instrumentality. This policy has been frequently 

 referred to in previous reports under the concisely expressed motto, 

 " co-operation not monopoly." 



It was in the spirit of this policy that the books of the Institution 

 were last year incorporated with those of Congress and results produced 

 which fully justify the measure as well as illustrate the importance of 

 the principle $ for, while by this union under one system and superintend- 

 ence a library has been formed worthy the National Capital, the capacity 

 of the Smithsonian fund to advance knowledge has been materially 

 increased. In pursuance of the same policy another important arrange- 

 ment has been made during the past year. I refer to the transfer of the 

 herbarium of the Institution to the care of the Department of Agriculture. 

 This herbarium consists of from 15,000 to 20,000 specimens from all parts 

 of the world, properly classified and labeled. It is the result, in the line of 

 botany, of the various expeditions of the government and of the special 

 explorations of the Institution. The collections have from the first been 

 in the charge of Dr. Gray and Dr. Torrey — the two most eminent botan- 

 ists in this country — who have scientifically arranged them and formed 



