10 REPORT OF THE SECRETARY. 



other baud, is the Government called upon to make annual appropria- 

 tions for the advance of science to be credited to an establishment founded, 

 by an individual to perpetuate his own memory. The Smithson fund, 

 should, be exclusively devoted to the increase and diffusion of knowledge 

 among - men in the manner best calculated to produce the desired effect, 

 and its operations should be as little complicated as possible with those 

 ©f Government establishments. 



FINANCES. 



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

 beginning of the year 1876 : 



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 accordance 

 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, de- 

 rived from savings of income and increase in value of 



investments 108, 620 37 



Amount received as the bequest of James Hamilton, of 



Carlisle, Pa., February 24, 1874 1, 000 00 



Total permanent Smithson fund in the Treasury of 

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



payable semi-annually in gold 651 , 000 00 



In addition to the above, there remains of the extra fund 

 from savings, &c, in Virginia bonds and certificates, 

 viz : consolidated bonds, $58,700 ; deferred certificates, 

 $29,375.07; fractional certificate, $50.13; total $88,125.20, 



now valued at 42,000 00 



Cash balance in United States Treasury at the beginning 



of the year 1876 for current expenses 20, 555 82 



Amount due from First National Bank, Washington, 

 $2,056.23, (present value unknown.) 



Total Smithson funds January 20, 1876 713, 555 82 



The receipts during the year were $51,388.20, and the expenditures 

 $46,809.98, leaving a balance of $4,578.22 to be added to the balance 

 on hand at the beginning of the year 1875. 



The interest on the Hamilton bequest has been received from Feb- 



