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SIGNATURE BERNADETTE N. FINN
TITLE SECRETARY
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
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<LEGEND> The schedule contains summary financial information
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</LEGEND>
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WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND> The schedule contains summary financial information
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WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND> The schedule contains summary financial information
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WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND> The schedule contains summary financial information
extracted from the financial statements and supporting
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<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 822664536
<SHARES-COMMON-STOCK> 822664536
<SHARES-COMMON-PRIOR> 804547598
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
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<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 44640312
<OTHER-INCOME> 0
<EXPENSES-NET> 6724938
<NET-INVESTMENT-INCOME> 37915374
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 37915374
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 37915374
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1362312431
<NUMBER-OF-SHARES-REDEEMED> 1380610173
<SHARES-REINVESTED> 36414680
<NET-CHANGE-IN-ASSETS> 18116938
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 2060639
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 6724938
<AVERAGE-NET-ASSETS> 801519980
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> .05
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> .05
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<EXPENSE-RATIO> .55
<AVG-DEBT-OUTSTANDING> 0
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</TABLE>
McGLADREY & PULLEN, L.L.P.
Certified Public Accountants & Consultants
The Board of Directors and Shareholders
Short Term Income Fund, Inc.
In planning and performing our audit of the financial statements of the Money
Market Porfolio and the U.S. Government Portfolio of Short Term Income Fund, Inc
for the year ended August 31, 1998, 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 Short Term Income Fund, Inc. 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 acccepted
accounting principles. Those controls include safeguarding of assets against
unauthorized acquisition, use, or disposition.
Because of inherent limitations in internal control, errors or fraud
may occur and not be detected. Also, projection of any evaluation of the
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 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 component 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 internal control ,
including controls over safeguarding securities, that we consider to be material
weaknesses as defined above as of August 31, 1998.
This report is intended solely for the information and use of management and the
Securities and Exchange Commission.
/s/ McGladrey & Pullen, LLP
McGladrey & Pullen, LLP
New York, New York
September 28, 1998
