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SIGNATURE ROBERT DELLACROCE
TITLE ASSISTANT TREASURER
<TABLE> <S> <C>
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<CIK> 0000026261
<NAME> CURRENT INCOME SHARES INC.
<SERIES>
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<NAME> CURRENT INCOME SHARES INC.
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<S> <C>
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<OVERDISTRIBUTION-GAINS> (306)
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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. for the year ended December 31, 1998 (on which we have
issued our report dated January 29, 1999), we considered its internal control
structure, 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 the internal control structure.
The management of Current Income Shares, Inc. is responsible for establishing
and maintaining an internal control structure. 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 structure, errors or
irregularities may occur and not be detected. Also, projection of any
evaluation of the structure 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 internal control structure would not necessarily
disclose all matters in the internal control structure 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 the specific internal control structure elements 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 the internal control structure, including controls over
safeguarding securities, that we consider to be material weaknesses as
defined above as of December 31, 1998.
This report is intended solely for the information and use of management and
the Securities and Exchange Commission and is not intended to be and should
not be used by anyone other than these specified parties.
San Francisco, California
January 29, 1999
