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Dr. Gell-Mann stated that at earlier meetings of the Board it was occasionally suggested that there might be a full scale inquiry about the policy of investing the Endowment. The Freer Endowment, for example, has been measured in the charts according to the cost of living index. If it were in terms of the cost of things that the Freer would like to own, Tang bronzes, Sung or Ching porcelains, one might find that the Endowment has lost a factor of five in those terms, rather than a few percent. Therefore, it was suggested at times by some of the Regents that maybe an inquiry could be instituted as to whether or not the whole policy could be reexamined with a notion that investments could be made in things other than stocks and bonds--consistent with the legal requirements of prudent investments and with the need for income, but perhaps not restricted to the kinds of investments that have been made heretofore. Dr. Gell-Mann inquired whether anything had been done along those lines or whether there are any plans for such a full scale investigation.

Mr. Webb pointed out that the Investment Policy Committee had indeed considered some aspects of the question of alternative investments. The Secretary then stated that, given its museum functions, the Smithsonian could not readily collect art or other objects as investments. As for real estate, the Institution has had significant holdings, though none were acquired for investment purposes. The Secretary alluded to "Belmont," the subject of the following item, and described its extraordinary value for only certain types of purchasers. Other Smithsonian real estate holdings were discussed, including the Seidell apartment building (sold in 1978 to establish a restricted endowment fund), land at the Chesapeake Bay Center (for on-going