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<PAGE> PAGE 2
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<PAGE> PAGE 3
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<PAGE> PAGE 4
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<PAGE> PAGE 5
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<PAGE> PAGE 6
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<PAGE> PAGE 7
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<PAGE> PAGE 8
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<PAGE> PAGE 9
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SIGNATURE DIOMEDES LOO-TAM
TITLE TREASURER
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FRANKLIN TAX-EXEMPT MONEY FUND JULY 31, 1995 ANNUAL REPORT AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> JUL-31-1995
<PERIOD-END> JUL-31-1995
<INVESTMENTS-AT-COST> 171,388,294
<INVESTMENTS-AT-VALUE> 171,388,294
<RECEIVABLES> 747,055
<ASSETS-OTHER> 1,656,452
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 173,791,801
<PAYABLE-FOR-SECURITIES> 501,927
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 167,258
<TOTAL-LIABILITIES> 669,185
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 173,122,616
<SHARES-COMMON-PRIOR> 202,882,808
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 173,122,616
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 6,974,353
<OTHER-INCOME> 0
<EXPENSES-NET> (1,286,128)
<NET-INVESTMENT-INCOME> 5,688,225
<REALIZED-GAINS-CURRENT> (9,193)
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 5,679,032
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (5,679,032)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 382,178,293
<NUMBER-OF-SHARES-REDEEMED> (417,601,005)
<SHARES-REINVESTED> 5,662,520
<NET-CHANGE-IN-ASSETS> (29,760,192)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> (742,949)
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (1,286,128)
<AVERAGE-NET-ASSETS> 214,292,429
<PER-SHARE-NAV-BEGIN> 1.000
<PER-SHARE-NII> .029
<PER-SHARE-GAIN-APPREC> (.000)
<PER-SHARE-DIVIDEND> (.029)
<PER-SHARE-DISTRIBUTIONS> .000
<RETURNS-OF-CAPITAL> .000
<PER-SHARE-NAV-END> 1.000
<EXPENSE-RATIO> .650
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> .000
</TABLE>
REPORT OF INDEPENDENT AUDITORS
To the Shareholders and Board of Directors
of the Franklin Tax-Exempt Money Fund:
In planning and performing our audit of the financial
statements and financial highlights of the Franklin Tax-
Exempt Money Fund for the year ended July 31, 1995, we
considered its internal control structure, including
procedures for safeguarding securities, in order to
determine our auditing procedures for thepurpose of
expressing our opinion on the financial statements and
financial highlights and to comply with the requirements of
Form NSAR, not to provide assurance on the internal control
structure.
The management of the Franklin Tax-Exempt Money Fund is
responsible for establishing and maintaining an internal
control structure. In fulfilling this responsibility,
estimates and judgements by management are required to
assess the expected benefits and related costs of internal
control structure policies and procedures. Two of the
objectives of an internal control structure are to provide
management with reasonable, but not absolute, assurance that
assets are safeguarded against loss from unauthorized use or
disposition and that transactions are executed in accordance
with management's authorization and recorded properly to
permit preparation of financial statements in conformity
with generally accepted accounting principles.
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 and
financial highlights 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 procedures for safeguarding securities, that we
consider to be material weaknesses, as defined above, as of
July 31, 1995.
This report is intended solely for the information and use
of management of the Franklin Tax-Exempt Money Fund and the
Securities and Exchange Commission.
S\COOPERS AND LYBRAND L.L.P.
San Francisco, California
August 31, 1995
