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Smithsonian Institution   1298

The formal report of the Executive Committee for the last fiscal year ending June 30, 1949, which gives the usual statement as to investments and income, is included in the printed report of the Secretary of the Institution, being found on pages 143-149. The following matters of interest supplement the data given there. They relate mainly to succeeding period in the first half of the present fiscal year.

The annual audit of the Institution's accounts was performed again by the national firm of Peat, Marwick, Mitchell & Company, and the results are embodied in the printed report to which reference has been made. The complete statement is on the table and available for examination. As indicated last year, we have found the services of these auditors valuable, particularly since our treasurer is able to maintain easy contact with them through the year, if required, since they have offices here in Washington.

The services of Scudder, Stevens and Clark, as investment counsel, have been continued, and the usual recommendations have been received during the year relative to the  endowment portfolios. These recommendations come to me as Chairman, with copies to the Secretary of the Institution, and are checked against information available in the Trust Department of the Riggs National Bank, under my direction. I have asked Scudder, Stevens and Clark to submit to us a quarterly statement on our portfolio so that we may keep fully abreast of our situation, and have copies of this on the table, representing current status of our investments as of September 30, 1949.

Our treasurer's office is in touch regularly with Mr. Richardson of Scudder, Stevens and Clark, and on June 13, 1949, Mr. Richardson met with the Executive committee and the Chancellor of the Institution. There was extended discussion of existing stock market and business conditions. Following due consideration, it was agreed that there was no present reason for any change in policy relative to our present investments in common stocks. The Smithsonian portfolio as a whole was considered strong, in view of the

A.W.