20 REPORT OF THE SECRETARY. 



prise that is not absolutely necessary to the continuance of the general 

 operations. So many articles, however, of furniture and stores of 

 hardware and stationery were to be replaced that we have not been 

 able to reduce the expenditures to as low a point as we could wish; 

 yet it will be seen that they fall somewhat below those of the pre- 

 ceding year. 



A reference to the report of the Executive Committee will show 

 that the following is the present condition of the fund: 



First. The whole amount of money originally derived from the 

 bequest of Smithson is still in the treasury of the United States, 

 bearing interest at six per cent., paid semi-annually, and yielding 

 $30,910 yearly. 



Second. Seventy-five thousand dollars of an extra fund are in 

 bonds of the State of Indiana, at five per cent, interest, also paid 

 semi-annually, yielding $3,750. 



Third. Fifty-three thousand five hundred dollars of the same fund 

 are in bonds of the State of Virginia, twelve thousand in those of 

 Tennessee, and five hundred in those of Georgia, from which nothing 

 has been derived since the commencement of the war. 



The southern State stocks have increased during the year in mar- 

 ketable value, though no interest has been derived from them. 



The interest on the original fund for the past year has been paid 

 by the Secretary of the Treasury in coin, under the advice of the 

 Solicitor of the department, who, having investigated the subject, de- 

 cided that in accordance with the usages oi the government the 

 Institution was entitled thus to be paid. 



At the end of last year there was a balance in the hands of the 

 treasurer of unexpended interest of $29,484 08, which, with the in- 

 come on the original bequest and premium on coin, made a disposable 

 fund of $84,956 37; of this sum $39,121 77 have been expended on. 

 the building, and $32,115 97 for the maintenance of the establish- 

 ment and for carrying on all the operations of the Institution, leaving 

 a balance of $13,718 63 to be further applied to the building. 



In view of the great expenditure of the government on account of 

 the war, the Institution did not at first claim, as it justly might have 

 done, the payment of the annual income of the bequest in specie; but 

 after the great loss sustained by the fire, the necessity could not be 

 avoided of calling the attention of the Secretary of the Treasury to 

 this subject. The claim, after consideration, was allowed, so far as 

 related to the current income, but the question relative to the differ- 

 ence between the payment of the interest which had previously 



