REPORT OF THE SECRETARY. 7 



errors which may have been committed will also be of service in an 

 opposite way. 



There is one feature of the establishment ordained by Congress which 

 is worthy of imitation in the conduct of all endowments for benevolent 

 objects, namely, the restriction of all expenditures to the annual interest. 

 This rule has been rigorously adhered to in the conduct of the Institu- 

 tion, and after expending, in accordance with the act of Congress, up- 

 ward of $600,000 on the buildings, the original fund remains intact with 

 an addition made to it of upward of $150,000 by savings, judicious 

 investments, &c. 



FINANCES. 



The following is a general statement of the condition of the funds at 

 the beginning of the year 1873 : 



The amount originally received as the bequest of James 

 Smithson, of England, deposited in the Treasury of the 

 United States, in accordance with the act of Congress of 

 August 10, 1846 $515,169 00 



The residuary legacy of Smithson, received in 1865, depos- 

 ited in the Treasury of the United States, in accord- 

 ance with the act of Congress of February 8, 1867 26, 210 63 



Total bequest of Smithson , 541, 379 63 



Amount deposited in the Treasury of the United States, as 

 authorized by act of Congress of February 8, 1867, as 

 derived from savings of income and increase in value of 

 investments 108, 620 37 



Total permanent Smithson fund in the Treasury of the 

 United States, bearing interest at 6 per cent., payable 

 semi-annually in gold 650, 000 00 



In addition, there remains of the extra fund from savings, 



&c, in Virginia bonds, at par, $88,125.20, now valued at . . 37, 000 00 



The balance in First National Bank 1st of January, 1873 ... 17, 811 30 



Total Smithson funds 1st January, 1873 704, 811 30 



The income of the Smithson fund during the year, including 



premium on gold, was 46, 916 45 



The expenditures were 45, 420 11 



Leaving a balance of 1, 496 34 



To be added to the balance at the beginning of the year 1872. 



Included in the income was $3,004.90 derived from back interest on 

 the Virginia bonds. The value of these bonds has appreciated during 

 the year. 



