4 REPORT OF THE SECRETARY. 



all her resources aud a large amount of money in her treasury, would 

 hesitate to make provision for the payment of the interest on her bonds. 

 It is still confidently expected, from recent indications, that the value 

 of this stock will increase. I would, however, recommend that it be 

 disposed of as soon as may be, and the proceeds added to tbe perma- 

 nent fund. 



In an institution of this kind no dependence ought to be placed upon 

 the contingency of the fluctuation of stocks. I may, perhaps, in this 

 connection, be allowed to mention the fact that, to meet the payments 

 on the building during its construction, it became my duty from time 

 to time to sell portions of the stock in which the building fund had 

 been invested. In doing this, by waiting a few days, in some cases a 

 considerable profit might have been made, and in other cases a loss 

 would have ensued. These fluctuations gave rise to considerable 

 anxiety and an unpleasant sense of responsibility, from which I was 

 relieved by adopting the rule always to sell on the day in which the 

 money was actually required. A similar policy has been adopted in 

 regard to the sale of the gold received as the semi-annual interest on 

 the permanent fund, which is always disposed of on the day in which 

 it is paid by the Treasury, and the proceeds placed to the credit of the 

 Smithson account in the First National Bank. 



The income from the fund during the year, including the premium on 

 gold, was $43,192.50. The expenditures were as follows : viz, $9,032.41 

 for repairs, and reconstruction of the building, and furniture ; $11,302.64 

 for salaries and general expenses ; $15,431,93 for publications and re- 

 searches ; $8,132.95 for museum ; $4,455.36 for exchanges, etc. ; mak- 

 ing an aggregate of $48,355.29, indicating an apparent excess of, 

 expenditures over receipts of $5,162.79. But to balance this excess 

 there remained in the United States Treasury, as previously stated 

 $5,000 of the appropriation for tbe museum which had not been drawn. 



Besides the foregoing, $20;000 were expended on the building, and 

 $4,976 for the care of the museum from appropriations by Congress, a 

 more detailed account of which will be found in a subsequent part of 

 this report. 



As stated in the last report Congress has indicated its intention to 

 make appropriations for the independent support of the national mu- 

 seum, under the care of the Institution, and hence, in giving an account 

 of the operations of the whole establishment, it is proper to divide them 

 into two classes, those which relate to the legitimate objects of the 

 Smithsonian Institution and those which pertain to the care and exhi- 

 bition of the specimens of the national museum. In the following- 

 account we shall adopt this division. 



OPERATIONS OF THE INSTITUTION. 



Publications. — The publications of the Institution are of three classes 

 — the Contributions to Knowledge, the Miscellaneous Collections, and 



