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^[[JAN. 15 '69 Regents]]

the recent sharp rise in interest rates.  As of November 1968, 73% of the combined bond holdings of the Endowment Funds were in long maturities, while 21% were short-term and 6% medium-term.

Common stocks in the funds have emphasized large and better quality companies, but with increasing efforts to include faster-growing companies.  Approximately 45% of the companies represented by common stockholdings have increased their cash dividends since the beginning of 1968.  The industry break-down of stocks held shows business equipment issues to be most important with 20.9% of the total, followed by petroleum at 10.0%, drugs and toiletries at 8.4%, and banks at 7.8%.

[[underline]] Reappointment of Regent [[/underline]]

The Committee recommended the submission of legislation for the reappointment of John Nicholas Brown (appointment expires April 1969).

[[underline]] Appointment of Citizen Regents [[/underline]]

The Committee considered the recommendation of Robert S. McNamara to replace Robert V. Fleming (deceased) and Thomas J. Watson, Jr., to replace Jerome Hunsaker (resigned).  The Committee also considered a suggestion that there be authorized by the Congress three additional Regents of the class other than Members of Congress.

The Committee discussed the procedure for the selection of Citizen Regents to fill vacancies.  It was agreed to recommend consideration by the Board of Regents of appointing a nominating committee comprised of Members of the Board to received suggestions and to submit its recommendations to the full Board.

The need to enlarge the number of Citizen Regents to provide broader coverage was discussed by the Secretary.  [[underline]]Senator Anderson[[/underline]] observed that the President, the Vice President, the Chief Justice, and the heads of the Executive Departments constitute the Establishment of the Smithsonian Institute and should be considered for attendance at meetings.  He suggested that the question of additional Regents be deferred until the Board had considered reactivating the participation of the Establishment.  The Committee requested a statement on the history of the Establishment which was given by the Chairman, as follows: 

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