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SMITHSONIAN INSTITUTION 527 
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MADE BY BAKER-VAWTER CO.
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Smithson and other bequests.

If the Committee should adopt a general policy of placing these appropriations on an annual basis, would there be any objection to this item being placed with the other appropriations for the Smithsonian Institution and carried in the annual bill? Your early reply will be appreciated.

Very truly yours,

(Signed) Martin B. Madden
Chairman.

November 2, 1921.

Dear Mr. Madden:

I have your letter of October 29, asking if there would be any objection to the appropriation of $60,000, in payment of the interest at 6 per cent on the Smithsonian Fund, being taken out of the permanent appropriations and carried in the annual bill with the appropriations for the government branches under the Smithsonian Institution.

In reply I beg to say that it seems to me very inadvisable to do this.

The appropriation of the interest on the Smithsonian Fund is not a provision of funds in the same sense as the annual appropriations for the support of various governmental operations which have been placed by Congress under the administration of the Institution, but is the payment of interest on the loan of funds bequeathed to and received by this Government in trust for the establishment of this Institution, which trust was accepted by the Congress and was given effect in the Act of August 10, 1846, establishing the Smithsonian Institution. 

The interest on the Smithsonian Fund is not now subject to the limitations as to time of expenditure, etc., by which all regular Government appropriations are surrounded, and for this reason the Regents are able to utilize it more advantageously in the furtherance of the purposes of the trust. Were the appropriation of this interest included among those supplying the annual needs of the Government work which Congress has placed under the Institution, there would be danger each year of having the limitation as to expenditure, etc., surrounding such appropriations applied as well to this item for the interest, greatly to the disadvantage of the Institution, and contrary to the evident intent of Congress as evidenced by the Act establishing the Institution.
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