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001 A000000 CURRENT INCOME SHARES, INC.
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<PAGE> PAGE 2
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SIGNATURE ROBERT DELLACROCE
TITLE DIRECTOR
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000026261
<NAME> CURRENT INCOME SHARES INC.
<SERIES>
<NUMBER> 010
<NAME> CURRENT INCOME SHARES INC.
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> DEC-31-1997
<INVESTMENTS-AT-COST> 45391
<INVESTMENTS-AT-VALUE> 48485
<RECEIVABLES> 760
<ASSETS-OTHER> 48
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<TOTAL-ASSETS> 49293
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<SENIOR-LONG-TERM-DEBT> 0
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<TOTAL-LIABILITIES> 66
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<PAID-IN-CAPITAL-COMMON> 42978
<SHARES-COMMON-STOCK> 3673
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 1
<ACCUMULATED-NET-GAINS> (518)
<OVERDISTRIBUTION-GAINS> 0
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<NET-ASSETS> 49227
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<INTEREST-INCOME> 3576
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<REALIZED-GAINS-CURRENT> (269)
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<NET-CHANGE-FROM-OPS> 4406
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<DISTRIBUTIONS-OF-INCOME> 3122
<DISTRIBUTIONS-OF-GAINS> 0
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<SHARES-REINVESTED> 0
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</TABLE>
INDEPENDENT AUDITORS' REPORT
The Board of Directors
Current Income Shares, Inc.
In planning and performing our audit of the financial statements of Current
Income Shares, Inc. (the "Fund") for the year ended December 31, 1997 (on
which we have issued our report dated January 16, 1998), we considered its
internal control, including control activities for 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, and not to provide assurance on the Fund's internal control.
The management of the Fund 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 any internal control, errors or fraud 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 the Fund's 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 one or more of the internal control components does not reduce to
a relatively low level the risk that errors or fraud 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
the Fund's internal control and its operation, including controls for
safeguarding securities, that we consider to be material weaknesses as
defined above as of December 31, 1997.
This report is intended solely for the information and use of management and
the Securities and Exchange Commission.
San Francisco, California
January 16, 1998
