SMITH BARNEY MONEY FUNDS, INC.
(the "Fund")
Supplement to Prospectus dated February 16, 1996
In order to provide the Investment Manager with additional investment
flexibility, The Fund's Board of Directors approved the following supplemental
changes to the Fund's investment policies by amending the Section of the
Prospectus entitled "Investment Objectives and Policies-Bank Obligations" as
follows:
(1) the previously authorized investment in time deposits is expanded to
permit the Fund to invest in term time deposits with an ultimate maturity of
six months and;
(2) the list of foreign bank branches through which the Fund may invest in
fixed time deposits of foreign banks is expanded to include London branches of
foreign banksq.
Supplement dated : December 18, 1996
FD________
