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future, strong efforts should be continued and expanded in the way first contemplated by Secretary Walcott in 1927, to obtain and set aside endowment funds both for unrestricted purposes and also for specific projects especially for public services, thus achieving the essential purpose of this Institution for the increase and diffusion of knowledge.  A goal of increasing endowments by at least $50,000,000 should be achievable over the next five to ten years by utilizing presently available operating surpluses and by calling upon assistance from our now established National Associates Board and others aware of and concerned with the fundamental educational and public purposes of this Institution.  Resulting annual income of $2,500,000 or more from such increased funds would go a long way to assure strong trust fund stability in years to come.

Mr. Webb stated that the Secretary was properly addressing himself to what the Smithsonian needs to make it a continuing success.  He wanted to emphasize that the largest part of our fund balances are in restricted funds, such as for the Freer Gallery and other restricted activities, and that the unrestricted fund balances are quite small: $8.4 million at this time.  This would not be enough to fall back on in an emergency for on-going activities.  It therefore seemed clear to the Executive Committee that now that we have made a success of various auxiliary activities and there was a flow of cash, we should now look to increasing the amount of the endowment fund for our essential services to the public.