DODGE & COX BALANCED FUND/CA
N-18F1, 1997-07-28
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                                  Form N-18F-1

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549





              NOTIFICATION OF ELECTION PURSUANT TO RULE 18f-1 UNDER
                       THE INVESTMENT COMPANY ACT OF 1940





                            DODGE & COX BALANCED FUND
                                File No. 811-173






                            NOTIFICATION OF ELECTION

The  undersigned  registered  open-end  investment  company hereby  notifies the
Securities  and Exchange  Commission  that it elects to commit  itself to pay in
cash all  redemptions by a shareholder of record as provided by Rule 18f-1 under
the  Investment  Company Act of 1940.  It is  understood  that this  election is
irrevocable  while such Rule is in effect  unless the  Commission  by order upon
application permits the withdrawal of this Notification of Election.



                                    SIGNATURE

Pursuant to the  requirements of Rule 18f-1 under the Investment  Company Act of
1940,  the  registrant  has caused  this  notification  of  election  to be duly
executed on its behalf in the city of San  Francisco and the State of California
on the 28th day of July 1997.




                                                      Dodge & Cox Balanced Fund




                                                  By  /s/ W. Timothy Ryan
                                                      --------------------------
                                                      W. Timothy Ryan, Secretary




Attest: /s/ Thomas M. Mistele
       --------------------------------------
       Thomas M. Mistele, Assistant Secretary


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