USAA TAX EXEMPT FUND INC
NSAR-A, 1996-11-15
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<PAGE>      PAGE  1
000 A000000 09/30/96
000 C000000 0000356555
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0
000 J000000 U
001 A000000 USAA TAX EXEMPT FUND, INC.
001 B000000 811-3333
001 C000000 2104984876
002 A000000 10750 ROBERT F. MCDERMOTT FREEWAY
002 B000000 SAN ANTONIO
002 C000000 TX
002 D010000 78288
003  000000 N
004  000000 N
005  000000 N
006  000000 N
007 A000000 Y
007 B000000 10
007 C010100  1
007 C020100 LONG-TERM FUND
007 C030100 N
007 C010200  2
007 C020200 INTERMEDIATE-TERM FUND
007 C030200 N
007 C010300  3
007 C020300 SHORT-TERM FUND
007 C030300 N
007 C010400  4
007 C020400 TAX EXEMPT MONEY MARKET FUND
007 C030400 N
007 C010500  5
007 C020500 CALIFORNIA BOND FUND
007 C030500 N
007 C010600  6
007 C020600 CALIFORNIA MONEY MARKET FUND
007 C030600 N
007 C010700  7
007 C020700 NEW YORK BOND FUND
007 C030700 N
007 C010800  8
007 C020800 NEW YORK MONEY MARKET FUND
007 C030800 N
007 C010900  9
007 C020900 VIRGINIA BOND FUND
007 C030900 N
007 C011000 10
007 C021000 VIRGINIA MONEY MARKET FUND
<PAGE>      PAGE  2
007 C031000 N
018  00AA00 Y
019 A00AA00 Y
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019 C00AA00 USAAINVMCO
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021  000000        0
022 A000001 PAINE WEBBER INCORPORATED
022 B000001 13-2638166
022 C000001    320218
022 D000001    285671
022 A000002 SMITH BARNEY INC.
022 B000002 13-1912900
022 C000002    405712
022 D000002    163397
022 A000003 MORGAN STANLEY & CO. INCORPORATED
022 B000003 13-2655998
022 C000003    305435
022 D000003    261185
022 A000004 CITICORP SECURITIES INC.
022 B000004 13-2771536
022 C000004    283182
022 D000004    275100
022 A000005 MORGAN J.P. SECURITIES INC.
022 B000005 13-3224016
022 C000005    358341
022 D000005    180951
022 A000006 BT SECURITIES CORPORATION
022 B000006 13-3311934
022 C000006    303560
022 D000006    162885
022 A000007 MERRILL LYNCH, PIERCE, FENNER & SMITH INC.
022 B000007 13-5674085
022 C000007    318458
022 D000007     48214
022 A000008 LEHMAN BROTHERS, INC.
022 B000008 13-2518466
022 C000008    193964
022 D000008     68411
022 A000009 BEAR, STEARNS & CO. INC.
022 B000009 13-3299429
022 C000009    164144
<PAGE>      PAGE  3
022 D000009     29954
022 A000010 FIRST CHICAGO CAPITAL MARKETS, INC.
022 B000010 36-3595942
022 C000010    120700
022 D000010     35000
023 C000000    5723924
023 D000000    4024934
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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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<PAGE>      PAGE  10
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<PAGE>      PAGE  11
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<PAGE>      PAGE  12
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<PAGE>      PAGE  13
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<PAGE>      PAGE  14
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<PAGE>      PAGE  15
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<PAGE>      PAGE  16
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<PAGE>      PAGE  17
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SIGNATURE   MICHAEL J.C. ROTH                            
TITLE       PRESIDENT           
 


<TABLE> <S> <C>

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<TABLE> <S> <C>

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<NAME> USAA TAX EXEMPT FUND, INC.
<SERIES>
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</TABLE>

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<CIK> 0000356555
<NAME> USAA TAX EXEMPT FUND, INC.
<SERIES>
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</TABLE>

<TABLE> <S> <C>

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<NAME> USAA TAX EXEMPT FUND, INC.
<SERIES>
   <NUMBER> 4
   <NAME> TAX EXEMPT MONEY MARKET FUND
       
<S>                             <C>
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<SHARES-COMMON-PRIOR>                    1,529,176,446
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<PER-SHARE-NAV-BEGIN>                             1.00
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</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000356555
<NAME> USAA TAX EXEMPT FUND, INC.
<SERIES>
   <NUMBER> 5
   <NAME> CALIFORNIA BOND FUND
       
<S>                             <C>
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<FISCAL-YEAR-END>                          MAR-31-1996
<PERIOD-END>                               SEP-30-1996
<INVESTMENTS-AT-COST>                      404,287,903
<INVESTMENTS-AT-VALUE>                     427,528,462
<RECEIVABLES>                                6,915,555
<ASSETS-OTHER>                                 141,040
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                             434,585,057
<PAYABLE-FOR-SECURITIES>                     3,026,721
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                      919,582
<TOTAL-LIABILITIES>                          3,946,303
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                   414,375,467
<SHARES-COMMON-STOCK>                       40,274,006
<SHARES-COMMON-PRIOR>                       39,243,890
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                    (6,977,272)
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                    23,240,559
<NET-ASSETS>                               430,638,754
<DIVIDEND-INCOME>                                    0
<INTEREST-INCOME>                           12,981,606
<OTHER-INCOME>                                       0
<EXPENSES-NET>                               (882,161)
<NET-INVESTMENT-INCOME>                     12,099,445
<REALIZED-GAINS-CURRENT>                       668,831
<APPREC-INCREASE-CURRENT>                    5,329,432
<NET-CHANGE-FROM-OPS>                       18,097,708
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                 (12,099,445)
<DISTRIBUTIONS-OF-GAINS>                             0
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<NUMBER-OF-SHARES-SOLD>                     33,270,940
<NUMBER-OF-SHARES-REDEEMED>               (26,206,103)
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<NET-CHANGE-IN-ASSETS>                      21,459,009
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                  (7,646,103)
<OVERDISTRIB-NII-PRIOR>                              0
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<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                882,161
<AVERAGE-NET-ASSETS>                       415,004,739
<PER-SHARE-NAV-BEGIN>                            10.43
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<EXPENSE-RATIO>                                   0.42
<AVG-DEBT-OUTSTANDING>                               0
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</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000356555
<NAME> USAA TAX EXEMPT FUND, INC.
<SERIES>
   <NUMBER> 6
   <NAME> CALIFORNIA MONEY MARKET FUND
       
<S>                             <C>
<PERIOD-TYPE>                   6-MOS
<FISCAL-YEAR-END>                          MAR-31-1996
<PERIOD-END>                               SEP-30-1996
<INVESTMENTS-AT-COST>                      321,463,218
<INVESTMENTS-AT-VALUE>                     321,463,218
<RECEIVABLES>                                1,762,397
<ASSETS-OTHER>                                 746,334
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                             323,971,949
<PAYABLE-FOR-SECURITIES>                     8,561,115
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                      692,222
<TOTAL-LIABILITIES>                          9,253,337
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                   314,718,612
<SHARES-COMMON-STOCK>                      314,718,612
<SHARES-COMMON-PRIOR>                      296,349,364
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                             0
<NET-ASSETS>                               314,718,612
<DIVIDEND-INCOME>                                    0
<INTEREST-INCOME>                            5,580,209
<OTHER-INCOME>                                       0
<EXPENSES-NET>                               (695,292)
<NET-INVESTMENT-INCOME>                      4,884,917
<REALIZED-GAINS-CURRENT>                             0
<APPREC-INCREASE-CURRENT>                            0
<NET-CHANGE-FROM-OPS>                        4,884,917
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                  (4,884,917)
<DISTRIBUTIONS-OF-GAINS>                             0
<DISTRIBUTIONS-OTHER>                                0
<NUMBER-OF-SHARES-SOLD>                    181,873,485
<NUMBER-OF-SHARES-REDEEMED>              (168,055,809)
<SHARES-REINVESTED>                          4,551,572
<NET-CHANGE-IN-ASSETS>                      18,369,248
<ACCUMULATED-NII-PRIOR>                              0
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<OVERDISTRIB-NII-PRIOR>                              0
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<INTEREST-EXPENSE>                                   0
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<PER-SHARE-NAV-BEGIN>                             1.00
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<EXPENSE-RATIO>                                   0.46
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000356555
<NAME> USAA TAX EXEMPT FUND, INC.
<SERIES>
   <NUMBER> 7
   <NAME> NEW YORK BOND FUND
       
<S>                             <C>
<PERIOD-TYPE>                   6-MOS
<FISCAL-YEAR-END>                          MAR-31-1996
<PERIOD-END>                               SEP-30-1996
<INVESTMENTS-AT-COST>                       52,494,624
<INVESTMENTS-AT-VALUE>                      54,799,464
<RECEIVABLES>                                  847,725
<ASSETS-OTHER>                                  61,061
<OTHER-ITEMS-ASSETS>                                 0
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<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                      185,456
<TOTAL-LIABILITIES>                            185,456
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                    56,557,838
<SHARES-COMMON-STOCK>                        5,058,911
<SHARES-COMMON-PRIOR>                        4,928,623
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                    (3,339,884)
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                     2,304,840
<NET-ASSETS>                                55,522,794
<DIVIDEND-INCOME>                                    0
<INTEREST-INCOME>                            1,750,541
<OTHER-INCOME>                                       0
<EXPENSES-NET>                               (137,967)
<NET-INVESTMENT-INCOME>                      1,612,574
<REALIZED-GAINS-CURRENT>                     (598,863)
<APPREC-INCREASE-CURRENT>                      720,473
<NET-CHANGE-FROM-OPS>                        1,734,184
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                  (1,612,574)
<DISTRIBUTIONS-OF-GAINS>                             0
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<NUMBER-OF-SHARES-SOLD>                      5,467,168
<NUMBER-OF-SHARES-REDEEMED>                (5,294,700)
<SHARES-REINVESTED>                          1,241,365
<NET-CHANGE-IN-ASSETS>                       1,535,443
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                  (2,741,021)
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                          122,911
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                185,422
<AVERAGE-NET-ASSETS>                        54,419,963
<PER-SHARE-NAV-BEGIN>                            10.95
<PER-SHARE-NII>                                   0.32
<PER-SHARE-GAIN-APPREC>                           0.03
<PER-SHARE-DIVIDEND>                            (0.32)
<PER-SHARE-DISTRIBUTIONS>                         0.00
<RETURNS-OF-CAPITAL>                              0.00
<PER-SHARE-NAV-END>                              10.98
<EXPENSE-RATIO>                                   0.50
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000356555
<NAME> USAA TAX EXEMPT FUND, INC.
<SERIES>
   <NUMBER> 8
   <NAME> NEW YORK MONEY MARKET FUND
       
<S>                             <C>
<PERIOD-TYPE>                   6-MOS
<FISCAL-YEAR-END>                          MAR-31-1996
<PERIOD-END>                               SEP-30-1996
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<INVESTMENTS-AT-VALUE>                      47,201,262
<RECEIVABLES>                                  243,929
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<OTHER-ITEMS-ASSETS>                                 0
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<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                      355,920
<TOTAL-LIABILITIES>                            355,920
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                    47,622,368
<SHARES-COMMON-STOCK>                       47,622,368
<SHARES-COMMON-PRIOR>                       45,553,722
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                             0
<NET-ASSETS>                                47,622,368
<DIVIDEND-INCOME>                                    0
<INTEREST-INCOME>                              829,461
<OTHER-INCOME>                                       0
<EXPENSES-NET>                               (114,606)
<NET-INVESTMENT-INCOME>                        714,855
<REALIZED-GAINS-CURRENT>                             0
<APPREC-INCREASE-CURRENT>                            0
<NET-CHANGE-FROM-OPS>                          714,855
<EQUALIZATION>                                       0
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<DISTRIBUTIONS-OTHER>                                0
<NUMBER-OF-SHARES-SOLD>                     25,952,089
<NUMBER-OF-SHARES-REDEEMED>               (24,567,889)
<SHARES-REINVESTED>                            684,446
<NET-CHANGE-IN-ASSETS>                       2,068,646
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                          102,115
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                161,193
<AVERAGE-NET-ASSETS>                        45,237,488
<PER-SHARE-NAV-BEGIN>                             1.00
<PER-SHARE-NII>                                   0.02
<PER-SHARE-GAIN-APPREC>                           0.00
<PER-SHARE-DIVIDEND>                            (0.02)
<PER-SHARE-DISTRIBUTIONS>                         0.00
<RETURNS-OF-CAPITAL>                              0.00
<PER-SHARE-NAV-END>                               1.00
<EXPENSE-RATIO>                                   0.50
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000356555
<NAME> USAA TAX EXEMPT FUND, INC.
<SERIES>
   <NUMBER> 9
   <NAME> VIRGINIA BOND FUND
       
<S>                             <C>
<PERIOD-TYPE>                   6-MOS
<FISCAL-YEAR-END>                          MAR-31-1996
<PERIOD-END>                               SEP-30-1996
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<INVESTMENTS-AT-VALUE>                     274,072,398
<RECEIVABLES>                                4,455,290
<ASSETS-OTHER>                                 287,903
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                             278,815,591
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                      560,435
<TOTAL-LIABILITIES>                            560,435
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                   271,044,693
<SHARES-COMMON-STOCK>                       25,252,668
<SHARES-COMMON-PRIOR>                       24,439,920
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                    (1,865,376)
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<ACCUM-APPREC-OR-DEPREC>                     9,075,839
<NET-ASSETS>                               278,255,156
<DIVIDEND-INCOME>                                    0
<INTEREST-INCOME>                            8,547,400
<OTHER-INCOME>                                       0
<EXPENSES-NET>                               (630,440)
<NET-INVESTMENT-INCOME>                      7,916,960
<REALIZED-GAINS-CURRENT>                     2,301,567
<APPREC-INCREASE-CURRENT>                     (20,709)
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<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                  (7,916,960)
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<NUMBER-OF-SHARES-SOLD>                     19,640,243
<NUMBER-OF-SHARES-REDEEMED>               (16,725,618)
<SHARES-REINVESTED>                          5,949,055
<NET-CHANGE-IN-ASSETS>                      11,144,538
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                  (4,166,943)
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
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<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                630,440
<AVERAGE-NET-ASSETS>                       269,618,699
<PER-SHARE-NAV-BEGIN>                            10.93
<PER-SHARE-NII>                                   0.32
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<PER-SHARE-DISTRIBUTIONS>                         0.00
<RETURNS-OF-CAPITAL>                              0.00
<PER-SHARE-NAV-END>                              11.02
<EXPENSE-RATIO>                                   0.47
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000356555
<NAME> USAA TAX EXEMPT FUND, INC.
<SERIES>
   <NUMBER> 10
   <NAME> VIRGINIA MONEY MARKET FUND
       
<S>                             <C>
<PERIOD-TYPE>                   6-MOS
<FISCAL-YEAR-END>                          MAR-31-1996
<PERIOD-END>                               SEP-30-1996
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<INVESTMENTS-AT-VALUE>                     108,737,774
<RECEIVABLES>                                  631,470
<ASSETS-OTHER>                                 687,846
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                             110,057,090
<PAYABLE-FOR-SECURITIES>                       252,360
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                      354,891
<TOTAL-LIABILITIES>                            607,251
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                   109,449,839
<SHARES-COMMON-STOCK>                      109,449,839
<SHARES-COMMON-PRIOR>                      110,307,920
<ACCUMULATED-NII-CURRENT>                            0
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<ACCUMULATED-NET-GAINS>                              0
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<ACCUM-APPREC-OR-DEPREC>                             0
<NET-ASSETS>                               109,449,839
<DIVIDEND-INCOME>                                    0
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<NET-INVESTMENT-INCOME>                      1,691,773
<REALIZED-GAINS-CURRENT>                             0
<APPREC-INCREASE-CURRENT>                            0
<NET-CHANGE-FROM-OPS>                        1,691,773
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                  (1,691,773)
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<NUMBER-OF-SHARES-SOLD>                     38,909,048
<NUMBER-OF-SHARES-REDEEMED>               (41,366,095)
<SHARES-REINVESTED>                          1,598,966
<NET-CHANGE-IN-ASSETS>                       (858,081)
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<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
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<EXPENSE-RATIO>                                   0.50
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</TABLE>


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