Advisory Committee on Investments 119 



The Museum's fiscal year dates from January 1, but the interest 

 received on this date is credited to the income of the preceding year. 

 Because of this practice, and the fact that the greater part of 

 interest from endowment is received in January and July, ex- 

 penditures have to be made before the income out of which they 

 are to be met is received. This necessitates the carrying of a 

 considerable capital fund for the transaction of the Museum's 

 current business. The source of this capital is six notes given 

 by the Trustees to the United States Trust Company of New 

 York, which aggregate $250,000. The Museum draws on the 

 Trust Company against these notes such sums as are necessary 

 to finance the daily expenditures and pays interest at 5% not on 

 the full amount of the notes but merely on the actual sums re- 

 quired daily. During the current year the debit interest on these 

 bank loans amounted to $7,563.32. The status of this loan ac- 

 count on December 31 was as follows: 



Maximum Credit: 

 Proceeds of Six Notes held by the United States Trust 

 Company of New York $250,000.00 



Drafts on Credit: 

 Loans to Endowment and Investment Account.. $11,584.75 

 Loans to Crocker Land Expedition Fund Account 15,600.00 

 Loan to General Account — awaiting receipt of 



accrued interest on balance of Sage Bequest. . 46,798.32 

 Available Credit, December 31, 1921 176,016.93 $250,000.00 



Again, the Advisory Committee on Investments, composed of 

 Mr. Arthur M. Anderson, Mr. Francis D. Bartow, and Mr. 

 Charles E. Mitchell, have rendered signal service to the Museum 

 through their expert advice on investments. The Committee has 

 reviewed the entire holdings of our Endowment Funds and has 

 sold stocks and bonds of a book value of $71,239 for $73,702.49, 

 and reinvested the proceeds in securities of better quality or of 

 more permanent character. 



The Finance Committee cannot speak in too high terms of the 

 practical and invaluable assistance v which the Advisory Committee 

 on Investments has rendered to the Museum. 



Respectfully submitted, 



H. P. Davison, 

 Treasurer. 



