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SMITHSONIAN INSTITUTION   1540

The investment counselors of the Smithsonian Institution, Scudder, Stevens & Clark, not only make regular recommendations concerning security management that come to me as Chairman of the Executive Committee, but they also prepare very complete quarterly reports on the securities that are held in the various funds of the Smithsonian Institution.

These reports are checked in the Office of the Treasurer of the Smithsonian Institution and considered by me, after I receive a report from the Trust Investment Officers of the Trust Department of The Riggs National Bank, before I give my approval or rejection.

The most recent of the quarterly reports presents comparative data on the four major funds of the Institution with totals rounded to the nearest dollar as follows:

[[6 column table]]
   | Market Value 3/31/60 | Market Value 12/30/60 | Market Value 3/30/61 | Adj. Book Value 3/30/61 | Gain or (Loss) from Book 

Freer | $13,006,353 | $13,748,654 | $14,985,188 | $9,534,540 | $5,450,648 

Consol. | 4,413,961 | 4,635,810 | 4,991,177 | 3,622,101 | 1,369,076 

Younger | 114,052 | 128,216 | 140,803 | 97,112 | 43,691 

General | 1,280,390 | 1,319,700 | 1,317,550 | 1,328,878 | (11,328) 

Totals | $18,814,756 | $19,832,380 | $21,434,718 | $14,582,631 | $6,852,087 

With the present level of the market the values should be higher now than as of March 30, 1961.

It may be pointed out that the General Fund has a special history as compared with the other Smithsonian funds. This fund is composed of a collection of small funds and accumulated income and is held in highly liquid securities so that if necessary it may be called upon for cash that may be required in connection with the operations of the Institution.

This General Fund, except for one holding of $93,000 in United States Treasury 3-1/4% bonds due in 1983, is invested in short term or medium term Government Bonds. The recent level of the market for government securities accounts for the fact that the current market value of this General Fund is $11,328 less than the book value of this fund.

The gain of $6,852,087 in the market value of the total holdings of the Institution as compared with their book value indicates the present favorable state of the investments of the Smithsonian Institution.

Respectfully submitted,

/s/ Robert V. Fleming, Chairman
Executive Committee

On motion by Dr. Greenewalt, seconded by Dr. Hunsaker, and carried it was

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