<PAGE> PAGE 1
000 B000000 03/31/96
000 C000000 0000353447
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0.a
000 J000000 A
001 A000000 ALEX. BROWN CASH RESERVE FUND, INC.
001 B000000 811-3196
001 C000000 4107271700
002 A000000 135 E. BALTIMORE STREET
002 B000000 BALTIMORE
002 C000000 MD
002 D010000 21202
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 Y
007 B000000 3
007 C010100 1
007 C020100 ALEX. BROWN CASH RESERVE TREASURY SERIES
007 C030100 N
007 C010200 2
007 C020200 ALEX. BROWN CASH RESERVE PRIME SERIES
007 C030200 N
007 C010300 3
007 C020300 ALEX. BROWN CASH RESERVE TAX-FREE SERIES
007 C030300 N
007 C010400 4
007 C010500 5
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
007 C011000 10
011 A00AA01 ALEX. BROWN & SONS INCORPORATED
011 B00AA01 8-194
011 C01AA01 BALTIMORE
011 C02AA01 MD
011 C03AA01 21202
012 A00AA01 INVESTMENT COMPANY CAPITAL CORP.
012 B00AA01 84-5477
012 C01AA01 BALTIMORE
012 C02AA01 MD
012 C03AA01 21202
013 A00AA01 COOPERS & LYBRAND
013 B01AA01 PHILADELPHIA
013 B02AA01 PA
<PAGE> PAGE 2
013 B03AA01 19103
015 A00AA01 PNC BANK
015 B00AA01 C
015 C01AA01 PHILADELPHIA
015 C02AA01 PA
015 C03AA01 19101
015 E01AA01 X
018 00AA00 Y
019 A00AA00 N
019 B00AA00 0
020 C000001 0
020 C000002 0
020 C000003 0
020 C000004 0
020 C000005 0
020 C000006 0
020 C000007 0
020 C000008 0
020 C000009 0
020 C000010 0
021 000000 0
022 A000001 MORGAN STANLEY & CO., INCORPORATED
022 B000001 13-2655998
022 C000001 35302474
022 D000001 317550
022 A000002 GOLDMAN, SACHS & CO.
022 B000002 13-5108880
022 C000002 28232828
022 D000002 110320
022 A000003 MERRILL LYNCH, PIERCE,FENNER & SMITH, INC.
022 B000003 13-5674085
022 C000003 3091635
022 D000003 528213
022 A000004 LEHMAN BROTHERS, INC.
022 C000004 1869173
022 D000004 207942
022 A000005 DEAN WIITER REYNOLDS
022 B000005 94-1671384
022 C000005 1073244
022 D000005 124194
022 A000006 FUJI SECURITES
022 B000006 36-3595942
022 C000006 804351
022 D000006 40359
022 A000007 FIRST CHICAGO CAPITAL MARKETS, INC.
022 B000007 36-3595942
022 C000007 795203
022 D000007 45689
022 A000008 GX CLARKE
022 B000008 13-2969143
022 C000008 499367
<PAGE> PAGE 3
022 D000008 206049
022 A000009 SMITH BARNEY
022 B000009 13-1912900
022 C000009 279850
022 D000009 156134
022 A000010 FIRST BOSTON
022 B000010 13-5659485
022 C000010 410026
022 D000010 0
023 C000000 72358151
023 D000000 1736450
024 00AA00 N
026 A000000 N
026 B000000 Y
026 C000000 N
026 D000000 Y
026 E000000 N
026 F000000 N
026 G010000 N
026 G020000 N
026 H000000 N
027 000000 Y
034 00AA00 N
035 00AA00 0
036 B00AA00 0
037 00AA00 N
038 00AA00 0
039 00AA00 N
040 00AA00 Y
041 00AA00 Y
045 00AA00 Y
046 00AA00 N
047 00AA00 Y
048 00AA00 0.000
048 A01AA00 500000
048 A02AA00 0.250
048 B01AA00 500000
048 B02AA00 0.210
048 C01AA00 500000
048 C02AA00 0.200
048 D01AA00 0
048 D02AA00 0.000
048 E01AA00 0
048 E02AA00 0.000
048 F01AA00 0
048 F02AA00 0.000
048 G01AA00 0
048 G02AA00 0.000
048 H01AA00 0
048 H02AA00 0.000
048 I01AA00 0
<PAGE> PAGE 4
048 I02AA00 0.000
048 J01AA00 0
048 J02AA00 0.000
048 K01AA00 1500000
048 K02AA00 0.190
054 A00AA00 Y
054 B00AA00 N
054 C00AA00 N
054 D00AA00 N
054 E00AA00 N
054 F00AA00 N
054 G00AA00 N
054 H00AA00 Y
054 I00AA00 N
054 J00AA00 Y
054 K00AA00 N
054 L00AA00 N
054 M00AA00 Y
054 N00AA00 N
054 O00AA00 N
055 A00AA00 N
055 B00AA00 N
056 00AA00 Y
057 00AA00 N
058 A00AA00 N
059 00AA00 Y
060 A00AA00 Y
060 B00AA00 Y
061 00AA00 1500
066 A00AA00 N
067 00AA00 N
068 A00AA00 N
068 B00AA00 N
069 00AA00 N
077 A000000 Y
077 B000000 Y
077 C000000 N
077 D000000 N
077 E000000 N
077 F000000 N
077 G000000 N
077 H000000 N
077 I000000 N
077 J000000 N
077 K000000 N
077 L000000 N
077 M000000 N
077 N000000 N
077 O000000 N
077 P000000 N
077 Q010000 Y
<PAGE> PAGE 5
077 Q020000 N
077 Q030000 N
078 000000 N
080 A00AA00 ICI MUTUAL INSURANCE COMPANY
080 C00AA00 9000
081 A00AA00 Y
081 B00AA00 13
082 A00AA00 Y
082 B00AA00 100
083 A00AA00 N
083 B00AA00 0
084 A00AA00 N
084 B00AA00 0
085 A00AA00 Y
085 B00AA00 N
008 A000101 INVESTMENT COMPANY CAPITAL CORP.
008 B000101 A
008 C000101 801-29557
008 D010101 BALTIMORE
008 D020101 MD
008 D030101 21202
028 A010100 310382
028 A020100 2312
028 A030100 0
028 A040100 315183
028 B010100 438081
028 B020100 2244
028 B030100 0
028 B040100 389743
028 C010100 544614
028 C020100 3078
028 C030100 0
028 C040100 507915
028 D010100 549657
028 D020100 2206
028 D030100 0
028 D040100 578976
028 E010100 309271
028 E020100 2287
028 E030100 0
028 E040100 309107
028 F010100 299032
028 F020100 2835
028 F030100 0
028 F040100 277841
028 G010100 2451037
028 G020100 14962
028 G030100 0
028 G040100 2378765
028 H000100 0
029 000100 N
<PAGE> PAGE 6
030 A000100 0
030 B000100 0.00
030 C000100 0.00
042 A000100 0
042 B000100 0
042 C000100 100
042 D000100 0
042 E000100 0
042 F000100 0
042 G000100 0
042 H000100 0
043 000100 1550
044 000100 0
049 000100 N
050 000100 N
051 000100 N
052 000100 N
053 A000100 Y
053 B000100 Y
053 C000100 N
062 A000100 Y
062 B000100 99.5
062 C000100 0.0
062 D000100 0.0
062 E000100 0.0
062 F000100 0.0
062 G000100 0.0
062 H000100 0.0
062 I000100 0.0
062 J000100 0.0
062 K000100 0.0
062 L000100 0.5
062 M000100 0.0
062 N000100 0.0
062 O000100 0.0
062 P000100 0.0
062 Q000100 0.0
062 R000100 0.0
063 A000100 48
063 B000100 0.0
064 A000100 N
070 A010100 N
070 A020100 N
070 B010100 N
070 B020100 N
070 C010100 N
070 C020100 N
070 D010100 N
070 D020100 N
070 E010100 N
070 E020100 N
<PAGE> PAGE 7
070 F010100 N
070 F020100 N
070 G010100 N
070 G020100 N
070 H010100 N
070 H020100 N
070 I010100 N
070 I020100 N
070 J010100 N
070 J020100 N
070 K010100 N
070 K020100 N
070 L010100 N
070 L020100 N
070 M010100 N
070 M020100 N
070 N010100 N
070 N020100 N
070 O010100 Y
070 O020100 N
070 P010100 N
070 P020100 N
070 Q010100 N
070 Q020100 N
070 R010100 N
070 R020100 N
071 A000100 0
071 B000100 0
071 C000100 0
071 D000100 0
072 A000100 12
072 B000100 36311
072 C000100 0
072 D000100 0
072 E000100 0
072 F000100 1542
072 G000100 0
072 H000100 0
072 I000100 234
072 J000100 154
072 K000100 41
072 L000100 36
072 M000100 27
072 N000100 54
072 O000100 0
072 P000100 0
072 Q000100 123
072 R000100 11
072 S000100 25
072 T000100 1550
072 U000100 3
<PAGE> PAGE 8
072 V000100 0
072 W000100 47
072 X000100 3847
072 Y000100 0
072 Z000100 32464
072AA000100 78
072BB000100 26
072CC010100 0
072CC020100 0
072DD010100 30566
072DD020100 1898
072EE000100 0
073 A010100 0.0523
073 A020100 0.0494
073 B000100 0.0000
073 C000100 0.0000
074 A000100 173
074 B000100 0
074 C000100 714853
074 D000100 0
074 E000100 0
074 F000100 0
074 G000100 0
074 H000100 0
074 I000100 0
074 J000100 0
074 K000100 0
074 L000100 4765
074 M000100 123
074 N000100 719914
074 O000100 0
074 P000100 0
074 Q000100 0
074 R010100 0
074 R020100 0
074 R030100 0
074 R040100 1277
074 S000100 0
074 T000100 718637
074 U010100 667
074 U020100 52
074 V010100 1.00
074 V020100 0.00
074 W000100 0.9998
074 X000100 17430
074 Y000100 0
075 A000100 587029
075 B000100 0
076 000100 0.00
008 A000201 INVESTMENT COMPANY CAPITAL CORP.
008 B000201 A
<PAGE> PAGE 9
008 C000201 801-29557
008 D010201 BALTIMORE
008 D020201 MD
008 D030201 21202
008 A000202 PROVIDENT INSTITUTIONAL MGMT CORP.
008 B000202 S
008 C000202 801-13304
008 D010202 WILMINGTON
008 D020202 DE
008 D030202 19809
028 A010200 1641173
028 A020200 7507
028 A030200 0
028 A040200 1609765
028 B010200 1940249
028 B020200 7862
028 B030200 0
028 B040200 1808771
028 C010200 2029304
028 C020200 10897
028 C030200 0
028 C040200 1989787
028 D010200 3256738
028 D020200 7842
028 D030200 0
028 D040200 3012275
028 E010200 2129072
028 E020200 8778
028 E030200 0
028 E040200 1935862
028 F010200 2024128
028 F020200 11219
028 F030200 0
028 F040200 2074943
028 G010200 13020664
028 G020200 54105
028 G030200 0
028 G040200 12431403
028 H000200 0
029 000200 Y
030 A000200 0
030 B000200 4.50
030 C000200 0.00
031 A000200 0
031 B000200 0
032 000200 0
033 000200 0
042 A000200 0
042 B000200 0
042 C000200 100
042 D000200 0
<PAGE> PAGE 10
042 E000200 0
042 F000200 0
042 G000200 0
042 H000200 0
043 000200 5576
044 000200 0
049 000200 N
050 000200 N
051 000200 N
052 000200 N
053 A000200 N
062 A000200 Y
062 B000200 0.0
062 C000200 3.7
062 D000200 7.0
062 E000200 0.0
062 F000200 0.0
062 G000200 0.0
062 H000200 0.0
062 I000200 87.5
062 J000200 0.0
062 K000200 0.0
062 L000200 1.8
062 M000200 0.0
062 N000200 0.0
062 O000200 0.0
062 P000200 0.0
062 Q000200 0.0
062 R000200 0.0
063 A000200 54
063 B000200 0.0
064 A000200 N
070 A010200 Y
070 A020200 Y
070 B010200 N
070 B020200 N
070 C010200 N
070 C020200 N
070 D010200 N
070 D020200 N
070 E010200 N
070 E020200 N
070 F010200 N
070 F020200 N
070 G010200 N
070 G020200 N
070 H010200 N
070 H020200 N
070 I010200 N
070 I020200 N
070 J010200 N
<PAGE> PAGE 11
070 J020200 N
070 K010200 N
070 K020200 N
070 L010200 N
070 L020200 N
070 M010200 N
070 M020200 N
070 N010200 N
070 N020200 N
070 O010200 Y
070 O020200 N
070 P010200 N
070 P020200 N
070 Q010200 N
070 Q020200 N
070 R010200 N
070 R020200 N
071 A000200 0
071 B000200 0
071 C000200 0
071 D000200 0
072 A000200 12
072 B000200 120275
072 C000200 0
072 D000200 0
072 E000200 0
072 F000200 5135
072 G000200 0
072 H000200 0
072 I000200 1106
072 J000200 272
072 K000200 99
072 L000200 82
072 M000200 99
072 N000200 169
072 O000200 0
072 P000200 0
072 Q000200 151
072 R000200 26
072 S000200 66
072 T000200 5517
072 U000200 1
072 V000200 0
072 W000200 98
072 X000200 12821
072 Y000200 0
072 Z000200 107454
072AA000200 9
072BB000200 15
072CC010200 0
072CC020200 0
<PAGE> PAGE 12
072DD010200 107454
072DD020200 0
072EE000200 0
073 A010200 0.0000
073 A020200 0.0000
073 B000200 0.0000
073 C000200 0.0000
074 A000200 150
074 B000200 183000
074 C000200 2421635
074 D000200 0
074 E000200 0
074 F000200 0
074 G000200 0
074 H000200 0
074 I000200 0
074 J000200 0
074 K000200 0
074 L000200 1037
074 M000200 370
074 N000200 2606192
074 O000200 0
074 P000200 0
074 Q000200 0
074 R010200 0
074 R020200 0
074 R030200 0
074 R040200 3412
074 S000200 0
074 T000200 2602780
074 U010200 2392671
074 U020200 210112
074 V010200 1.00
074 V020200 0.00
074 W000200 0.9996
074 X000200 111602
074 Y000200 0
075 A000200 2071185
075 B000200 0
076 000200 0.00
008 A000301 INVESTMENT COMPANY CAPITAL CORP.
008 B000301 A
008 C000301 801-29557
008 D010301 BALTIMORE
008 D020301 MD
008 D030301 21202
008 A000302 PROVIDENT INSTITUTIONAL MGMT CORP.
008 B000302 S
008 C000302 801-13304
008 D010302 WILMINGTON
008 D020302 DE
<PAGE> PAGE 13
008 D030302 19809
028 A010300 286477
028 A020300 1169
028 A030300 0
028 A040300 290782
028 B010300 492620
028 B020300 1169
028 B030300 0
028 B040300 360097
028 C010300 388183
028 C020300 1848
028 C030300 0
028 C040300 484333
028 D010300 558805
028 D020300 1178
028 D030300 0
028 D040300 539532
028 E010300 411376
028 E020300 1110
028 E030300 0
028 E040300 325560
028 F010300 362886
028 F020300 1513
028 F030300 0
028 F040300 419016
028 G010300 2500347
028 G020300 7987
028 G030300 0
028 G040300 2419320
028 H000300 0
029 000300 N
030 A000300 0
030 B000300 0.00
030 C000300 0.00
042 A000300 0
042 B000300 0
042 C000300 100
042 D000300 0
042 E000300 0
042 F000300 0
042 G000300 0
042 H000300 0
043 000300 1345
044 000300 0
049 000300 N
050 000300 N
051 000300 N
052 000300 N
053 A000300 N
062 A000300 Y
062 B000300 0.0
<PAGE> PAGE 14
062 C000300 0.0
062 D000300 0.0
062 E000300 84.3
062 F000300 0.0
062 G000300 0.0
062 H000300 0.0
062 I000300 0.0
062 J000300 0.0
062 K000300 0.0
062 L000300 15.7
062 M000300 0.0
062 N000300 0.0
062 O000300 0.0
062 P000300 0.0
062 Q000300 0.0
062 R000300 0.0
063 A000300 43
063 B000300 0.0
064 A000300 N
070 A010300 N
070 A020300 N
070 B010300 N
070 B020300 N
070 C010300 N
070 C020300 N
070 D010300 N
070 D020300 N
070 E010300 N
070 E020300 N
070 F010300 N
070 F020300 N
070 G010300 N
070 G020300 N
070 H010300 N
070 H020300 N
070 I010300 N
070 I020300 N
070 J010300 N
070 J020300 N
070 K010300 N
070 K020300 N
070 L010300 N
070 L020300 N
070 M010300 N
070 M020300 N
070 N010300 N
070 N020300 N
070 O010300 Y
070 O020300 N
070 P010300 N
070 P020300 N
<PAGE> PAGE 15
070 Q010300 N
070 Q020300 N
070 R010300 N
070 R020300 N
071 A000300 0
071 B000300 0
071 C000300 0
071 D000300 0
072 A000300 12
072 B000300 20236
072 C000300 0
072 D000300 0
072 E000300 0
072 F000300 1356
072 G000300 0
072 H000300 0
072 I000300 154
072 J000300 85
072 K000300 15
072 L000300 18
072 M000300 35
072 N000300 81
072 O000300 0
072 P000300 0
072 Q000300 63
072 R000300 15
072 S000300 21
072 T000300 1345
072 U000300 0
072 V000300 0
072 W000300 35
072 X000300 3223
072 Y000300 0
072 Z000300 17013
072AA000300 4
072BB000300 0
072CC010300 0
072CC020300 0
072DD010300 17013
072DD020300 0
072EE000300 0
073 A010300 0.0318
073 A020300 0.0000
073 B000300 0.0000
073 C000300 0.0000
074 A000300 7
074 B000300 0
074 C000300 568556
074 D000300 0
074 E000300 0
074 F000300 0
<PAGE> PAGE 16
074 G000300 0
074 H000300 0
074 I000300 0
074 J000300 0
074 K000300 0
074 L000300 3464
074 M000300 92
074 N000300 572119
074 O000300 0
074 P000300 0
074 Q000300 0
074 R010300 0
074 R020300 0
074 R030300 0
074 R040300 612
074 S000300 0
074 T000300 571507
074 U010300 571593
074 U020300 0
074 V010300 1.00
074 V020300 0.00
074 W000300 0.9997
074 X000300 9871
074 Y000300 0
075 A000300 537910
075 B000300 0
076 000300 0.00
SIGNATURE EDWARD J. VEILLEUX
TITLE EXEC. VICE PRESIDENT
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000353447
<NAME> ALEX BROWN CASH RESERVE
<SERIES>
<NUMBER> 1
<NAME> TREASURY SERIES
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAR-31-1996
<PERIOD-END> MAR-31-1996
<INVESTMENTS-AT-COST> 714852904
<INVESTMENTS-AT-VALUE> 714852904
<RECEIVABLES> 4765290
<ASSETS-OTHER> 295604
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 719913798
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1276883
<TOTAL-LIABILITIES> 1276883
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 718575254
<SHARES-COMMON-STOCK> 718575254
<SHARES-COMMON-PRIOR> 526209331
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 60234
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 718636915
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 36310501
<OTHER-INCOME> 0
<EXPENSES-NET> 3846710
<NET-INVESTMENT-INCOME> 32463791
<REALIZED-GAINS-CURRENT> 51785
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 32515576
<EQUALIZATION> 32463791
<DISTRIBUTIONS-OF-INCOME> 32463791
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 4440217006
<NUMBER-OF-SHARES-REDEEMED> 4277158666
<SHARES-REINVESTED> 29307583
<NET-CHANGE-IN-ASSETS> 192365923
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 14065
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1542437
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 3846710
<AVERAGE-NET-ASSETS> 658289696
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> 0.046
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0.046
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> .60
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000353447
<NAME> ALEX BROWN CASH RESERVE
<SERIES>
<NUMBER> 2
<NAME> PRIME SERIES
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAR-31-1996
<PERIOD-END> MAR-31-1996
<INVESTMENTS-AT-COST> 2604635638
<INVESTMENTS-AT-VALUE> 2604635638
<RECEIVABLES> 1036748
<ASSETS-OTHER> 520016
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 2606192401
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 3412462
<TOTAL-LIABILITIES> 3412462
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 2602785854
<SHARES-COMMON-STOCK> 2602783344
<SHARES-COMMON-PRIOR> 1586300828
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (6079)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 2602779775
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 120275367
<OTHER-INCOME> 0
<EXPENSES-NET> 12820989
<NET-INVESTMENT-INCOME> 107454378
<REALIZED-GAINS-CURRENT> (6050)
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 107448328
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 107454378
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 20949806257
<NUMBER-OF-SHARES-REDEEMED> 20033855680
<SHARES-REINVESTED> 100531939
<NET-CHANGE-IN-ASSETS> 1016482516
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (29)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 5134900
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 12880320
<AVERAGE-NET-ASSETS> 2071185362
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> 0.052
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0.052
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> 0.60
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000353447
<NAME> ALEX BROWN CASH RESERVE
<SERIES>
<NUMBER> 3
<NAME> TAX-FREE
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAR-31-1996
<PERIOD-END> MAR-31-1996
<INVESTMENTS-AT-COST> 568556619
<INVESTMENTS-AT-VALUE> 568556619
<RECEIVABLES> 3463789
<ASSETS-OTHER> 98911
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 572119319
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 612319
<TOTAL-LIABILITIES> 612319
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 571594648
<SHARES-COMMON-STOCK> 571594648
<SHARES-COMMON-PRIOR> 475476296
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (87648)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 571507000
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 20235536
<OTHER-INCOME> 0
<EXPENSES-NET> 3222865
<NET-INVESTMENT-INCOME> 17012671
<REALIZED-GAINS-CURRENT> 4419
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 17017090
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 17012671
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 4817984787
<NUMBER-OF-SHARES-REDEEMED> 4737983286
<SHARES-REINVESTED> 16116851
<NET-CHANGE-IN-ASSETS> 96118352
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (92067)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1356239
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 3222865
<AVERAGE-NET-ASSETS> 537909710
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> 0.032
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0.032
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> 0.60
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
[COOPERS & LYBRAND LOGO] COOPERS & LYBRAND L.L.P.
a professional services firm
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors of
Alex. Brown Cash Reserve Fund, Inc.
In planning and performing our audit of the financial statements and
financial highlights of the Alex. Brown Cash Reserve Fund, Inc. (comprised of
the Prime, Treasury, and Tax-Free Series) for the year ended March 31, 1996, we
considered its internal control structure, including procedures for safeguarding
securities, in order to determine our auditing procedures for the purpose of
expressing our opinion on the financial statements and financial highlights and
to comply with the requirements of Form N-SAR, not to provide assurance on the
internal control structure.
The management of Alex. Brown Cash Reserve Fund, 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 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 March 31, 1996.
This report is intended solely for the information and use of management
and the Board of Directors of Alex. Brown Cash Reserve Fund, Inc. and for the
Securities and Exchange Commission.
/s/ Coopers & Lybrand L.L.P.
COOPERS & LYBRAND L.L.P.
Baltimore, Maryland
May 10, 1996
