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SMITHSONIAN INSTITUTION    1521

on December 14, 1960. All members of the Committee were present.

The investment portfolio of the Smithsonian Institution was the first topic considered at this meeting. This discussion was introduced by Mr. George S. Johnston and Mr. James F. Lawrence, partners of Scudder, Stevens & Clark, the firm that serves as investment counselors to the Smithsonian Institution. Copies of the graphs prepared for this presentation concerning the history and present status of the investments of certain of the funds of the Smithsonian Institution are in the papers on the table before members of the Board.

These charts which show the development of the Freer Fund and the Consolidated Fund from 1945 through November 1960 were the basis of careful consideration. The Committee noted particularly that through the years especial attention had been given to capital growth in the Freer Fund and to the maintenance of a relatively high level of income in the Consolidated Fund. The reason for this distinction is that the principal purpose of the Freer income, as directed by the donor of the Fund, is to defray the expenses of operating the Freer Gallery and to acquire, after appropriate approval, objects of Far Eastern or Middle Eastern art. The income of the Consolidated Fund on the other hand is used for the general scientific, scholarly and related functions of the Institution.

While the representatives of Scudder, Stevens & Clark were still in attendance the Committee further considered over-all changes that had been made in the Funds from January 1, 1959 through October 31, 1960. Here especial attention was given to the percentages of bonds of various terms, preferred stocks and common stocks.

All members of the Committee joined in a discussion of the economic factors that are likely to influence the investment market in the year ahead. The investment portfolio of the Institution was considered in the light of this discussion.

At the conclusion of this consideration Mr. Johnston and Mr. Lawrence withdrew from this meeting.

The nonpublic funds budget for the fiscal year 1962 was then considered by the Committee in detail. This action was taken in compliance with the vote of the Board of Regents taken at its annual meeting on January 17, 1958 that "an annual statement of nonpublic, unrestricted funds other than Government funds, be submitted to the Executive Committee for approval and report to the Board of Regents." After the review of the 1962 nonpublic funds budget, it was:

VOTED that pursuant to the vote of the Board of Regents January 17, 1958 the Executive Committee considered the nonpublic funds budget of the Smithsonian Institution for the fiscal year 1962 and approved this budget and directs that it be reported to the Board of Regents at the next annual meeting.

This budget will be presented at a later point in this meeting. It may be noted here 

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