18 EEPOET OP THE SECEETAEY. 



scientific objects, thus constituting a third change* in the relations of 

 the Smithsonian to the Government in regard to the Exchange Bureau. 



An approximate estimate of the cost of the exchange for the Library 

 of Congress from 1868 to 1878, together with the cost of the "Govern- 

 mental" exchange (the Congressional and Departmental) for 1879 aud 

 1880, shows that about $20,000 were paid from the Smithsonian funds 

 for handling Government property alone. Regarding the whole ex- 

 pense of international exchanges since 1881 as a charge on the Govern- 

 ment, the entire amount paid out of the funds of the institution on ac- 

 count of the General Government is somewhat over $50,000, exclusive 

 of office rent and minor expenses. 



In the report that I had the honor to submit to the Board of Regents 

 at their last meeting the expenses and needs of the exchange depart- 

 ment were dwelt upon at some length, and it was stated that a revised 

 estimate of $27,050 had been submitted through the Secretary of the 

 Treasury for the purpose of meeting the expenses of contemplated im. 

 provements in the service during the fiscal year 1888-89. The amount 

 finally appropriated was $15,000, an increase of only $3,000 over the 

 sum appropriated for the year preceding. As I have already remarked, 

 in spite of efforts for an economical and efficient administration of the 

 department, slow transportation and free ocean freight, this was $2,- 

 152.10 less than the service actually cost, and the interests of both the 

 Government and the Institution suffer from the entire inadequacy of 

 the appropriation. 



Although all of the Government bureaus that have occasion to trans- 

 mit their publications through the Institution are not provided with 

 funds available for defraying the cost of the service, it seems to have 

 been the intention of Congress that its specific appropriation for the 

 exchange business should be supplemented by special appropriations to 

 some of the bureaus aud departments of the Government, so that the 

 charge of 5 cents per pound weight imposed by the regents in 1878 

 might be met by them. The average amount annually repaid to the In- 

 stitution in this way during the past eleven years has been about $1,400 

 and does not represent all the cost to the Institution which has been 

 made up from its private fund. 



It has been repeatedly urged that this procedure, for which sufficient 

 reasons existed at the time of its adoption, may now be discontinued as 

 no longer advantageous or economical. 



By the present system the cost of the service is actually larger than 

 appears in the specific appropriations for exchanges, aud as the special 

 appropriations to the different departments vary from year to year, aud 

 are often omitted altogether, a burden which can not be accurately fore- 

 seen continues to be imposed upon the Smithsonian fund. 



* A convention, at which the United States was represented, was concluded at Brus- 

 sels March 15, 1886, for establishing a system of international exchanges of the 

 official documents and of the scientific and literary publications of the states ad- 

 hering thereto. 



