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[[preprinted]] SMITHSONIAN INSTITUTION 694 [[/preprinted]] [[preprinted in left margin]] MADE BY BAKER-VAWTER CO. [[/preprinted in left margin]] BUDGET BUREAU. The Secretary stated that a demand had been received from General Lord, Director of the Budget, for a statement of the private income and expenditures of the Smithsonian and other funds under its care, not governmental. He had felt that this was not a proper matter for the consideration of the Budget Bureau, and had stated to the Director that he did not feel justified in giving this information without the sanction of the Board of Regents; and that he had written the following letter to the President as the head of the Smithsonian Establishment:- October 28, 1926 Dear Mr. President: General Lord has requested me to submit for him, for publication in the Budget, a statement of all income and funds of the Smithsonian Institution exclusive of Government appropriations, which would include receipts from such trust funds as the Freer Bequest and similar endowments of the Institution. The nature of the Smithsonian Institution is unique. It is based on a private foundation given to the United States by an English scientist, James Smithson, as his memorial and "for the increase and diffusion of knowledge among men". This trust was assumed by the United States and the money then involved was lent to the Treasury under a pledge that six per cent would be paid upon it in perpetuity. Relying upon the permanence of its organization and the goof faith of the United States as the guardian of this ward, various citizens from time to time have given and bequeathed to the Institution sums of money and articles of value, now amounting to several millions of dollars, the income from the money to be used for specific purposes. The funds involved are trust funds whose income is not income to the Government. I feel that if I should accede to the request of General Lord I should be violating the responsibilities of my position as Secretary of the Smithsonian Institution, for thereby I would be contributing to the tendency which is more and more prevailing to ignore the sacredness of the trust to preserve the Smithsonian Institution as a private organization established for the benefit of mankind and as a memorial to its founder, James Smithson, by confusing it with a regular Governmental agency. I fear this would be considered as betraying the confidence of past donors and discourage future presentations to the Institution of gifts and legacies for the increase and diffusion of knowledge. In view of the above, I feel that I must submit the matter to the Board of Regents for their consideration and instructions before acceding to General Lord's request. Very respectfully yours, Charles D. Walcott Secretary. A general discussion ensued, in which it appeared to be the opinion that no great harm would be done in giving this information to General lord; but [[initialed]]CDW[[/initialed]]
