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<PAGE> PAGE 2
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<PAGE> PAGE 3
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SIGNATURE LAURA FERGERSON
TITLE ASSISTANT TREASURER
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FRANKLIN FLOATING RATE TRUST JULY 31, 1999 ANNUAL REPORT AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> JUL-31-1999
<PERIOD-END> JUL-31-1999
<INVESTMENTS-AT-COST> 1,079,480,826
<INVESTMENTS-AT-VALUE> 1,083,072,055
<RECEIVABLES> 30,128,819
<ASSETS-OTHER> 1,027,710
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1,114,228,584
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 7,865,576
<TOTAL-LIABILITIES> 7,865,576
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1,104,902,703
<SHARES-COMMON-STOCK> 110,821,530
<SHARES-COMMON-PRIOR> 16,784,008
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (2,130,924)
<ACCUM-APPREC-OR-DEPREC> 3,591,229
<NET-ASSETS> 1,106,363,008
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 43,412,582
<OTHER-INCOME> 0
<EXPENSES-NET> (7,255,425)
<NET-INVESTMENT-INCOME> 36,157,157
<REALIZED-GAINS-CURRENT> (2,125,932)
<APPREC-INCREASE-CURRENT> 3,407,972
<NET-CHANGE-FROM-OPS> 37,439,197
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (36,182,310)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 104,460,894
<NUMBER-OF-SHARES-REDEEMED> (13,071,015)
<SHARES-REINVESTED> 2,647,643
<NET-CHANGE-IN-ASSETS> 937,826,058
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 20,161
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> (3,840,156)
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (7,353,782)
<AVERAGE-NET-ASSETS> 521,905,437
<PER-SHARE-NAV-BEGIN> 10.04
<PER-SHARE-NII> 0.700
<PER-SHARE-GAIN-APPREC> (0.060)
<PER-SHARE-DIVIDEND> (0.700)
<PER-SHARE-DISTRIBUTIONS> 0.000
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 9.980
<EXPENSE-RATIO> 1.390<F1>
<FN>
<F1>EXPENSE RATIO EXCLUDING WAIVER 1.41%
</FN>
</TABLE>
September 27, 1999
Securities & Exchange Commission
450 5th Street, N.W.
Washington, D.C. 20549
Re: FRANKLIN FLOATING RATE TRUST
Form N-SAR Screen 43
Gentlemen:
We were unable to enter the correct amounts
on form NSAR question 86 because the program
will only accept six digits.
Please note that the response to question
number 86 on screen 43 should be answered
as follows:
Common Stock Sales (000's omitted)
Number of shares equals 107,109
Net Consideration equals 1,066,617
Common Stock Repurchases (000's omitted)
Number of shares equals 13,071
Net Consideration equals 130,048
Sincerely,
FRANKLIN FLOATING RATE TRUST
S\Steve Gunn
Manager Fund Accounting
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders and Board of Trustees
of Franklin Floating Rate Trust:
In planning and performing our audit of
the financial statements of Franklin
Floating Rate Trust for the year ended
July 31, 1999, we considered its internal
control, including controls over
safeguarding securities, in order to
determine our auditing procedures for the
purpose of expressing our opinion on the
financial statements and to comply with
the requirements of Form N-SAR, not to
provide assurance on internal control.
The management of Franklin Floating Rate
Trust is responsible for establishing
and maintaining internal control. In
fulfilling this responsibility, estimates
and judgments by management are required
to assess the expected benefits and related
costs of controls. Generally, controls
that are relevant to an audit pertain to
the entity's objective of preparing
financial statements for external purposes
that are fairly presented in conformity
with generally accepted accounting
principles. Those controls include the
safeguarding of assets against unauthorized
acquisition, use, or disposition.
Because of inherent limitations in internal
control, errors or irregularities may occur
and not be detected. Also, projection of
any evaluation of internal control to
future periods is subject to the risk that
it may become inadequate because of changes
in conditions or that the effectiveness of
the design and operation may deteriorate.
Our consideration of internal control would
not necessarily disclose all matters in
internal control that might be material
weaknesses under standards established by
the American Institute of Certified Public
Accountants. A material weakness is a
condition in which the design or operation
of any specific internal control component
does not reduce to a relatively low level
the risk that errors or irregularities in
amounts that would be material in relation
to the financial statements being audited
may occur and not be detected within a
timely period by employees in the normal
course of performing their assigned
functions. However, we noted no matters
involving internal control, including
controls over safeguarding securities
that we consider to be material weaknesses
as defined above as of April 30, 1999.
This report is intended solely for the
information and use of management and the
Securities and Exchange Commission.
PricewaterhouseCoopers LLP
San Francisco, California
September 17, 1999
