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SMITHSONIAN INSTITUTION 

Market Value December 31, 1963 $7,489,286.56
Gains on Securities now owned 1,386,373.64
Profit on Securities sold from December 31, 1962 to December 31, 1963 224,268.54

FREER FUND

Original Book Value $1,958,591.42
Total Book Value, December 31, 1963 10,720,150.19
Gain in Book Value $8,761,558.77
Market Value December 31, 1963 $16,338,604.76
Gains on Securities now owned $5,618,457.57

Profit on Securities sold from December 31, 1962 to December 31, 1963 $431,448.62

Summary of Profits on Securities sold from Consolidated and Freer Funds from December 31, 1962 to December 31, 1963: 

Consolidated Fund $224,268.54
Freer Fund 431,448.62
$655,717.16

During the year ended December 31, 1963, the turnover from sales and purchases and the collection and reinvestment of maturing obligations in securities of the Smithsonian Institution amounted to $6,517,111. The net profit accruing to the Institution from these transactions amounted to $655,717. 

The net amount received during the year from profits in the Freer Fund, which have been reinvested amounted to $431,449. The Consolidated Fund was increased by $1,956,908, of which amount $224,269 was derived from the investment of profits on sale of securities. The remainder was made up of new bequests, the principal one being the Robert Lee Forrest bequest amounting to $1,718,370, and the investment of accumulated income. 

Each year since I have had the privilege of serving as Chairman of the Executive Committee of the Board of Regents I have concluded my report, as I do again at this time, with the statement that I will always use my best judgment in this work for the Smithsonian Institution. The members of Board will agree with me, I am sure, that we continue to live in a period in which no individual or group of individuals can be infallible in matters related to the investment of trust funds. 

Respectfully submitted, 

Robert V. Fleming
Chairman