REPORT OF THE SECRETARY, PROFESSOR HENRY, FOR THE 



YEAR 1873. 



Gentlemen : I have the honor herewith to present a continuation 

 of the history of the Smithsonian Institution, comprising an account of 

 its operations, condition, and expenditures during the year 1873. No 

 change in this time has been made in the general policy of the estab- 

 lishment. Congress has continued its appropriations for the support of 

 the National Museum under the charge of the Institution, and has thus 

 relieved the Smithson fund from a burden the support of which has 

 , annually absorbed a large portion of the income. Freed from the ex- 

 pense of the support of the museum, at the beginning of 1873 we 

 anticipated doing much more than we had previously done in the way 

 of advancing science without encroaching on the unexpended balance 

 in the Treasury at the close of 1872, but in this we were disappointed 

 by the failure of the First National Bank of Washington, which had 

 in its possession at the time of its suspension a considerable portion of 

 the semi-annual income received on the 1st of July, and which was 

 intended to carry on our operations during the remainder of the year. 

 Previous to 1867 the interest on the Smithson fund was deposited in 

 the private banking house of Biggs & Co., but at the session of the 

 Board February 22, 1867, I was directed, by a resolution suggested by 

 Chief Justice Chase, to transfer the money to the First National Bank, 

 an authorized Government depository. This was accordingly done, 

 and the bank faithfully discharged the duty which devolved upon it 

 until the 19th of September, 1873, when it failed to honor our drafts. 

 The whole sum in the bank at this time was $8,224.87. On this sum 

 the Institution has since received a dividend of 30 per cent., amounting 

 to $2,467.46. In order to meet this unexpected difficulty a reduction 

 was made, as far as possible, in the accruing expenses, by stopping the 

 printing of various articles, and deferring for a time the prosecution of 

 various enterprises in which the Institution had previously embarked. 



For paying the salaries and other urgent claims an application was 

 made to the Secretary of the Treasury to advance the quarter-yearly 

 interest which had accrued on the 1st of October. To this application 

 the Secretary, -Mr. Richardson, gave due attention, and expressed his 

 willingness to grant the favor provided it could be done in accordance 

 J~1 with law. It was, however, decided by the comptroller that the inter- 

 est could only be paid semi-annually, as prescribed by the act organiz- 

 ing the Institution. 



