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Smithsonian Institution    1229

At the meeting last year the Committee brought to attention the question of the considerable cash balance carried by the Institution,this standing regularly at something over $700,000.  This represents current funds for the work of the Institution, being income from trust funds, gifts, and other smaller sources.  The suggestion came from Peat, Marwick, Mitchell & Co., who made a report for us last year on business methods, that part of this regular cash balance might be invested to yield some income. Last year the Board of Regents gave the Executive Committee the authority to investigate this matter with power to act.  Consideration has been given to the problem, but in view of the existing investment situation, with uncertainties due to reconversion of business following the close of fighting in World War II, no definite action was taken.  There is question as to whether income from such investment of current cash balances could be used for the general purposes of the Institution, or whether it would need to apply to its various components according to their participation in the total. The status of this problem is mentioned here merely as a report without definite action. Further consideration will be given to it.

The Committee wishes to bring to attention a generous gift of Mr. John A. Roebling of $48,000 in further support of the Astrophysical Observatory. This is for actual expenditure in carrying on this work.

At the last meeting of the Board there was discussion as to the existing salary of the Secretary, this being referred to the Executive Committee with power to act. After due consideration, this salary was established at the rate of $12,000 per annum subsequent to July 1, 1946,

A.W.