REPORT OF THE SECRETARY. 3 



On June 16 the President of the United States directed that the 

 classified civil service be extended to include the several bureaus of 

 the Smithsonian Institution, and in accordance therewith the employees 

 of the National Museum, Zoological Park, Bureau of Exchanges, 

 Bureau of Ethnology, and Astrophysical Observatory were, on June 

 30, 180(3, made subject to the civil service rules. 



FINANCES. 



The permanent funds of the Institution are as follows : 



1 Sei | uest of Sniithson, 1846 $515, 169. 00 



Residuary legacy of Sniithson, 1867 26, 210. 63 



Deposits from savings of income, 1867 108, 620. 37 



Beq uest of James Hamilton, 1875 $1, 000. 00 



Accumulated interest on Hamilton fund, 1895 1, 000. 00 



2, 000. 00 



Bequest of Simeon Habel, 1880 500.00 



Deposits from proceeds of sale of bonds, 1881 51, 500. 00 



(Jilt of Thomas G. Hodgkins, 1891 200,000.00 



Portion of residuary legacy, T. G. Hodgkins, 1894 8, 000. 00 



Total permanent fund 912, 000. 00 



The Begents also hold certain approved railroad bonds, forming a 

 part of the fund established by Mr. Hodgkins for investigations of 

 the properties of atniosjdieric air. 



By act of Congress approved by the President March 12, 1804, an 

 amendment was made to section 5501 of the Bevised Statutes, the fun- 

 damental act organizing the Institution, as follows: 



The Secretary of the Treasury is authorized and directed to receive 

 into the Treasury, on the same terms as the original bequest of James 

 Sniithson, such sums as the Regents may, from time to time, see fit to 

 deposit, not exeeeding, with the original bequest, the sum of $1,000,000: 

 Provided, That this shall not operate as a limitation on the power of 

 the Smithsonian Institution to receive money or other property by gift, 

 bequest, or devise, and to hold and disiiose of the same in promotion 

 of the purposes thereof. 



ruder this section 5501 of the Bevised Statutes, modified as above 

 noted, the fund of $01L>,000 is deposited in the Treasury of the United 

 States, bearing interest at G per cent per annum, the interest alone 

 being used in carrying out the aims of the Institution. 



At the beginning of the liscal year July 1, 1805, the unexpended 

 balance from the income and from other sources, as stated in my report 

 for last year, was $63,001.74. Interest on the permanent fund in the 

 Treasury and elsewhere, amounting to $56,305, was received during 

 the year, which, together with a sum of $G,474.61 received from the 

 sale of publications and from miscellaneous sources, made the total 

 receipts $6l\86'.».G1. 



The entire expenditures during the year, including $11,000 paid for 

 prizes awarded from the Hodgkins fund, in accordance with the recom- 

 mendation of the award committee, and referred to in my last report, 



