U. S. SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 24F-2
Annual Notice of Securities Sold
Pursuant to Rule 24f-2
1. Name and address of Issuer: Gradison-McDonald Cash Reserves Trust
2. Name of each series or class of funds for which this notice is filed:
Gradison-McDonald U.S. Government Reserves Fund
3. Investment Company Act File Number: 811-2618
Securities Act File Number: 2-55297
4. Last day of fiscal year for which this notice is filed:
September 30, l996
5. Check box if this notice is being filed more than 180 days after the
close of the fiscal year for purposes of reporting securities sold
after the close of the fiscal year but before termination of the
issuer's 24f-2 declaration:
[ ]
6. Date of termination of issuer's declaration under rule 24f-2(a)(1), if
applicable: N.A.
7. Number and amount of securities of the same class or series which had
been registered under the Securities Act of 1933 other than pursuant to
rule 24f-2 in a prior fiscal year, but which remained unsold at the
beginning of the fiscal year:
$0
8. Number and amount of securities registered during the fiscal year other
than pursuant to rule 24f-2:
N.A.
9. Number and aggregate sale price of securities sold during the fiscal
year:
5,411,348,184 shares $5,411,348,184
10. Number and aggregate sale price of securities sold during the fiscal
year in reliance upon registration pursuant to rule 24f-2:
5,411,348,184 shares $5,411,348,184
11. Number and aggregate sale price of securities issued during the fiscal
year in connection with dividend reinvestment plans, if applicable (see
Instruction B.7):
63,488,295 shares $63,488,295
12. Calculation of registration fee:
(i) Aggregate sale price of securities sold during the fiscal
year in reliance on rule 24f-2 (from Item 10): $ 5,411,348,184
(ii) Aggregate price of shares issued in connection with
dividend reinvestment plans (from Item 11, if
applicable): +63,488,295
(iii) Aggregate price of shares redeemed or repurchased
during the fiscal year (if applicable): -$5,365,902,757
(iv) Aggregate price of shares redeemed or repurchased
and previously applied as a reduction to filing fees
pursuant to rule 24e-2 (if applicable): + n/a
(v) Net aggregate price of securities sold and issued
during the fiscal year in reliance on rule 24f-2
[line (i), plus line (ii), less line (iii), plus
line (iv)] (if applicable): $108,933,722
(vi) Multiplier prescribed by Section 6(b) of the
Securities Act of 1933 or other applicable law or
regulation (see instruction c.6): X 1/3300
(vii) Fee due [line (i) or line (v) multiplied by line $33,010
(vi)]: =============
13. Check box if fees are being remitted to the Commissioner's
lockbox depository as described in section 3a of the
Commissioner's Rules of Informal and Other Procedures
(17 CFR 202.3a). [X]
Date of mailing or wire transfer of filing fees to the
Commissioner's lockbox depository: November 20, l996.
SIGNATURES
This report has been signed below by the following persons on
behalf of the issuer and in the capacities and on the dates
indicated.
By (Signature and Title)* /S/ Mark A. Frietch
Assistant Treasurer
November 21, 1996
Date: November 20, l996
Gradison Division
McDonald & Company Securities, Inc.
580 Walnut Street
Cincinnati, Ohio 45202
(513) 579-5076
November 20, l996
Gradison-McDonald Cash Reserves Trust
580 Walnut Street
Cincinnati, Ohio 45202
Dear Sir or Madam:
Reference is made to the Notice pursuant to Rule 24f-2 under the
Investment Company Act of l940, as amended, to be filed with the
Securities & Exchange Commission with respect to the shares of
beneficial interest, $.01 per share par value, sold by the Gradison-
McDonald Cash Reserves Trust (the "Trust") during the fiscal year
ended September 30, l996 (such shares are hereinafter referred to
as the "Shares").
I wish to advise you that I have reviewed the Trust's Declaration
of Trust, its By-Laws, the record of proceeding of its
shareholders and trustees from the date of its organization until
the present time, and such other documents and questions of law
as I deem necessary for the purpose of this opinion.
Based upon the foregoing, I am of the opinion that the Trust had
authority to issue the Shares and that, assuming such Shares were
issued pursuant to the terms, provisions and conditions set forth
in the then current Registration Statement of the Trust, under
the Securities Act of l933, as amended, (Registration No. 2-
55297), the Shares were validly issued, fully paid and
nonassessable.
Respectfully submitted,
|S| Richard M. Wachterman
Richard M. Wachterman
General Counsel
