<PAGE> PAGE 1
000 A000000 06/30/98
000 C000000 0000004568
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0
000 J000000 A
001 A000000 AMERICAN BALANCED FUND, INC.
001 B000000 811-66
001 C000000 4154219360
002 A000000 ONE MARKET, STEUART TOWER
002 B000000 SAN FRANCISCO
002 C000000 CA
002 D010000 94105
002 D020000 1409
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 N
007 B000000 0
007 C010100 1
007 C010200 2
007 C010300 3
007 C010400 4
007 C010500 5
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
007 C011000 10
008 A000001 CAPITAL RESEARCH AND MANAGEMENT COMPANY
008 B000001 A
008 C000001 801-8055
008 D010001 LOS ANGELES
008 D020001 CA
008 D030001 90071
008 D040001 1402
011 A000001 AMERICAN FUNDS DISTRIBUTORS, INC.
011 B000001 8-17168
011 C010001 LOS ANGELES
011 C020001 CA
011 C030001 90071
011 C040001 1402
012 A000001 AMERICAN FUNDS SERVICE COMPANY
012 B000001 84-00316
012 C010001 BREA
012 C020001 CA
012 C030001 92822
<PAGE> PAGE 2
012 C040001 2205
013 A000001 DELOITTE & TOUCHE LLP
013 B010001 LOS ANGELES
013 B020001 CA
013 B030001 90017
013 B040001 1532
015 A000001 CHASE MANHATTAN BANK
015 B000001 C
015 C010001 NEW YORK
015 C020001 NY
015 C030001 10081
015 E010001 X
015 A000002 CEDEL S.A.
015 B000002 S
015 C010002 LUXEMBOURG
015 D010002 LUXEMBOURG
015 E040002 X
015 A000003 GENERALE BANK
015 B000003 S
015 C010003 BRUXELLES
015 D010003 BELGIUM
015 D020003 1000
015 E040003 X
015 A000004 ROYAL BANK OF CANADA
015 B000004 S
015 C010004 TORONTO
015 D010004 CANADA
015 D020004 M5J 2J5
015 E040004 X
015 A000005 CANADA TRUSTCO MORTGAGE COMPANY
015 B000005 S
015 C010005 TORONTO
015 D010005 CANADA
015 D020005 M5J 252
015 E040005 X
015 A000006 DEN DANSKE BANK
015 B000006 S
015 C010006 COPENHAGEN
015 D010006 DENMARK
015 D020006 1091
015 E040006 X
015 A000007 CREST
015 B000007 S
015 C010007 LONDON
015 D010007 UNITED KINGDOM
015 D020007 E1 9YN
015 E040007 X
015 A000008 BANQUE PARIBAS
015 B000008 S
015 C010008 PARIS
015 D010008 FRANCE
<PAGE> PAGE 3
015 D020008 75078
015 E040008 X
015 A000009 CREST
015 B000009 S
015 C010009 DUBLIN
015 D010009 IRELAND
015 D020009 ISSC
015 E040009 X
015 A000010 BANK OF IRELAND
015 B000010 S
015 C010010 DUBLIN
015 D010010 IRELAND
015 D020010 1
015 E040010 X
015 A000011 THE FUJI BANK LIMITED
015 B000011 S
015 C010011 TOKYO
015 D010011 JAPAN
015 E040011 X
015 A000012 JASDEC
015 B000012 S
015 C010012 TOKYO
015 D010012 JAPAN
015 E040012 X
015 A000013 ABN-AMRO BANK, N.V.
015 B000013 S
015 C010013 DE BREDA
015 D010013 NETHERLANDS
015 D020013 4800
015 E040013 X
015 A000014 NATIONAL NOMINEES
015 B000014 S
015 C010014 AUCKLAND
015 D010014 NEW ZEALAND
015 E040014 X
015 A000015 DEN NORSKE BANK
015 B000015 S
015 C010015 OSLO
015 D010015 NORWAY
015 D020015 1
015 E040015 X
015 A000016 DRESDNER BANK
015 B000016 S
015 C010016 FRANKFURT/MAIN
015 D010016 GERMANY
015 E040016 X
015 A000017 SKANDINAVISKA ENSKILDA BANKEN
015 B000017 S
015 C010017 STOCKHOLM
015 D010017 SWEDEN
015 D020017 S-106 40
<PAGE> PAGE 4
015 E040017 X
015 A000018 UNION BANK OF SWITZERLAND
015 B000018 S
015 C010018 ZURICH
015 D010018 SWITZERLAND
015 D020018 8021
015 E040018 X
015 A000019 RITS
015 B000019 S
015 C010019 SYDNEY
015 D010019 AUSTRALIA
015 D020019 2000
015 E040019 X
015 A000020 AUSTRACLEAR LIMITED
015 B000020 S
015 C010020 SYDNEY
015 D010020 AUSTRALIA
015 D020020 2000
015 E040020 X
015 A000021 CIK
015 B000021 S
015 C010021 BRUSSELS
015 D010021 BELGIUM
015 D020021 1000
015 E040021 X
015 A000022 CDS
015 B000022 S
015 C010022 TORONTO
015 D010022 CANADA
015 D020022 M5H 2C9
015 E040022 X
015 A000023 VP CENTER
015 B000023 S
015 C010023 TAASTRUP
015 D010023 DENMARK
015 D020023 DK-2630
015 E040023 X
015 A000024 PANKKITARKASTUS VIRASTO
015 B000024 S
015 C010024 HELSINKI
015 D010024 FINLAND
015 E040024 X
015 A000025 SICOVAM
015 B000025 S
015 C010025 NOISY LE GRAND CEDEX
015 D010025 FRANCE
015 D020025 91367
015 E040025 X
015 A000026 DEUTCHER KASSENVEREIN AG
015 B000026 S
015 C010026 FRANKFURT
<PAGE> PAGE 5
015 D010026 GERMANY
015 D020026 D-60313
015 E040026 X
015 A000027 HONG KONG SECURITIES CLEARING CO. LTD
015 B000027 S
015 C010027 HONG KONG
015 D010027 HONG KONG
015 E040027 X
015 A000028 MONTE TITOLI
015 B000028 S
015 C010028 MILANO
015 D010028 ITALY
015 D020028 20154
015 E040028 X
015 A000029 INDEVAL
015 B000029 S
015 C010029 COLONIA
015 D010029 MEXICO
015 D020029 CP 06500
015 E040029 X
015 A000030 NECIGEF
015 B000030 S
015 C010030 AMSTERDAM
015 D010030 NETHERLANDS
015 D020030 1000 CN
015 E040030 X
015 A000031 VPS
015 B000031 S
015 C010031 OSLO
015 D010031 NORWAY
015 D020031 0501
015 E040031 X
015 A000032 VPC
015 B000032 S
015 C010032 SOLNA
015 D010032 SWEDEN
015 D020032 S-171 18
015 E040032 X
015 A000033 SEGA
015 B000033 S
015 C010033 OLTEN
015 D010033 SWITZERLAND
015 D020033 CH-4600
015 E040033 X
015 A000034 MERITA BANK LTD
015 B000034 S
015 C010034 HELSINKI
015 D010034 FINLAND
015 E040034 X
015 A000035 CHASE MANHATTAN BANK MEXICO, S.A.
015 B000035 S
<PAGE> PAGE 6
015 C010035 MEXICO CITY
015 D010035 MEXICO
015 D020035 06660
015 E040035 X
015 A000036 AUSTRACLEAR NEW ZEALAND
015 B000036 S
015 C010036 AUCKLAND
015 D010036 NEW ZEALAND
015 E040036 X
015 A000037 BANQUE PARIBAS
015 B000037 S
015 C010037 MILANO
015 D010037 ITALY
015 D020037 20121
015 E040037 X
018 000000 Y
019 A000000 Y
019 B000000 40
019 C000000 CRMCFNDGRP
020 A000001 EDWARDS (A.G.) & SONS, INC.
020 B000001 43-0895447
020 C000001 125
020 A000002 JEFFERIES & CO., INC.
020 B000002 95-2622900
020 C000002 112
020 A000003 MERRILL LYNCH, PIERCE, FENNER & SMITH INC.
020 B000003 13-5674085
020 C000003 107
020 A000004 MORGAN STANLEY & CO. INC.
020 B000004 13-2655998
020 C000004 81
020 A000005 SALOMON BROTHERS SMITH BARNEY, INC.
020 B000005 13-1912900
020 C000005 76
020 A000006 JONES (EDWARD D.) & CO.
020 B000006 43-0345811
020 C000006 73
020 A000007 DONALDSON, LUFKIN & JENRETTE SECURITIES CORP.
020 B000007 13-2741729
020 C000007 49
020 A000008 FURMAN SELZ INC.
020 B000008 13-2753731
020 C000008 44
020 A000009 BERNSTEIN (SANFORD C.) & CO., INC.
020 B000009 13-2625874
020 C000009 36
020 A000010 LAZARD FRERES & CO. LLC
020 B000010 13-5545100
020 C000010 36
021 000000 1354
022 A000001 LEHMAN COMMERCIAL PAPER INC.
<PAGE> PAGE 7
022 B000001 13-2501865
022 C000001 645556
022 D000001 269114
022 A000002 GOLDMAN, SACHS & CO.
022 B000002 13-5108880
022 C000002 884732
022 D000002 22821
022 A000003 GENERAL ELECTRIC CAPITAL CORP.
022 B000003 13-1500700
022 C000003 524901
022 D000003 0
022 A000004 MERRILL LYNCH, PIERCE, FENNER & SMITH INC.
022 B000004 13-5674085
022 C000004 392998
022 D000004 26393
022 A000005 MORGAN STANLEY & CO. INC.
022 B000005 13-2655998
022 C000005 233307
022 D000005 60993
022 A000006 CS FIRST BOSTON CORP.
022 B000006 13-5659485
022 C000006 186302
022 D000006 52869
022 A000007 GREENWICH CAPITAL MARKETS, INC.
022 B000007 13-3172275
022 C000007 88615
022 D000007 118188
022 A000008 MORGAN (J.P.) SECURITIES INC.
022 B000008 13-3224016
022 C000008 148327
022 D000008 15179
022 A000009 FORD MOTOR CREDIT CORP.
022 B000009 38-1612444
022 C000009 130556
022 D000009 0
022 A000010 FIRST CHICAGO CAPITAL MARKETS, INC.
022 B000010 36-3595942
022 C000010 106216
022 D000010 24239
023 C000000 4018453
023 D000000 720663
024 000000 Y
025 A000001 MORGAN (J.P.) SECURITIES INC.
025 B000001 13-3224016
025 C000001 E
025 D000001 9370
025 D000002 0
025 D000003 0
025 D000004 0
025 D000005 0
025 D000006 0
<PAGE> PAGE 8
025 D000007 0
025 D000008 0
025 D000009 0
025 D000010 0
025 D000011 0
025 D000012 0
025 D000013 0
025 D000014 0
025 D000015 0
025 D000016 0
025 D000017 0
025 D000018 0
025 D000019 0
025 D000020 0
025 D000021 0
025 D000022 0
025 D000023 0
025 D000024 0
025 D000025 0
025 D000026 0
025 D000027 0
025 D000028 0
025 D000029 0
025 D000030 0
025 D000031 0
025 D000032 0
025 D000033 0
025 D000034 0
025 D000035 0
025 D000036 0
025 D000037 0
025 D000038 0
025 D000039 0
025 D000040 0
026 A000000 Y
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
028 A010000 157478
028 A020000 0
028 A030000 0
028 A040000 74479
028 B010000 132452
028 B020000 68601
028 B030000 0
<PAGE> PAGE 9
028 B040000 64929
028 C010000 145936
028 C020000 0
028 C030000 0
028 C040000 79349
028 D010000 135129
028 D020000 0
028 D030000 0
028 D040000 97388
028 E010000 97821
028 E020000 44833
028 E030000 0
028 E040000 80675
028 F010000 129221
028 F020000 0
028 F030000 0
028 F040000 80655
028 G010000 798037
028 G020000 113434
028 G030000 0
028 G040000 477475
028 H000000 286498
029 000000 Y
030 A000000 11022
030 B000000 5.75
030 C000000 0.00
031 A000000 1890
031 B000000 0
032 000000 9131
033 000000 0
034 000000 Y
035 000000 58
036 A000000 Y
036 B000000 0
037 000000 N
038 000000 0
039 000000 N
040 000000 Y
041 000000 Y
042 A000000 0
042 B000000 0
042 C000000 0
042 D000000 100
042 E000000 0
042 F000000 0
042 G000000 0
042 H000000 0
043 000000 6756
044 000000 0
045 000000 Y
046 000000 N
<PAGE> PAGE 10
047 000000 Y
048 000000 0.000
048 A010000 500000
048 A020000 0.420
048 B010000 500000
048 B020000 0.324
048 C010000 1000000
048 C020000 0.300
048 D010000 1500000
048 D020000 0.282
048 E010000 2500000
048 E020000 0.270
048 F010000 4000000
048 F020000 0.262
048 G010000 6500000
048 G020000 0.255
048 H010000 0
048 H020000 0.000
048 I010000 0
048 I020000 0.000
048 J010000 0
048 J020000 0.000
048 K010000 10500000
048 K020000 0.250
049 000000 N
050 000000 N
051 000000 N
052 000000 N
053 A000000 Y
053 B000000 Y
054 A000000 Y
054 B000000 Y
054 C000000 Y
054 D000000 N
054 E000000 N
054 F000000 N
054 G000000 N
054 H000000 Y
054 I000000 N
054 J000000 Y
054 K000000 N
054 L000000 Y
054 M000000 Y
054 N000000 N
054 O000000 Y
055 A000000 N
055 B000000 N
056 000000 N
057 000000 N
058 A000000 N
059 000000 Y
<PAGE> PAGE 11
060 A000000 Y
060 B000000 Y
061 000000 500
062 A000000 N
062 B000000 0.0
062 C000000 0.0
062 D000000 0.0
062 E000000 0.0
062 F000000 0.0
062 G000000 0.0
062 H000000 0.0
062 I000000 0.0
062 J000000 0.0
062 K000000 0.0
062 L000000 0.0
062 M000000 0.0
062 N000000 0.0
062 O000000 0.0
062 P000000 0.0
062 Q000000 0.0
062 R000000 0.0
063 A000000 0
063 B000000 0.0
066 A000000 Y
066 B000000 N
066 C000000 N
066 D000000 N
066 E000000 N
066 F000000 N
066 G000000 Y
067 000000 Y
068 A000000 N
068 B000000 N
069 000000 N
070 A010000 N
070 A020000 N
070 B010000 N
070 B020000 N
070 C010000 N
070 C020000 N
070 D010000 N
070 D020000 N
070 E010000 N
070 E020000 N
070 F010000 N
070 F020000 N
070 G010000 N
070 G020000 N
070 H010000 N
070 H020000 N
070 I010000 N
<PAGE> PAGE 12
070 I020000 N
070 J010000 Y
070 J020000 Y
070 K010000 Y
070 K020000 N
070 L010000 Y
070 L020000 Y
070 M010000 Y
070 M020000 Y
070 N010000 N
070 N020000 N
070 O010000 N
070 O020000 N
070 P010000 Y
070 P020000 Y
070 Q010000 N
070 Q020000 N
070 R010000 N
070 R020000 N
071 A000000 1541611
071 B000000 1311070
071 C000000 4613740
071 D000000 28
072 A000000 6
072 B000000 75243
072 C000000 36774
072 D000000 0
072 E000000 0
072 F000000 7887
072 G000000 0
072 H000000 0
072 I000000 1636
072 J000000 34
072 K000000 334
072 L000000 111
072 M000000 25
072 N000000 329
072 O000000 2
072 P000000 0
072 Q000000 0
072 R000000 36
072 S000000 8
072 T000000 6756
072 U000000 0
072 V000000 0
072 W000000 54
072 X000000 17212
072 Y000000 0
072 Z000000 94805
072AA000000 249444
072BB000000 0
<PAGE> PAGE 13
072CC010000 0
072CC020000 25833
072DD010000 94020
072DD020000 0
072EE000000 26328
073 A010000 0.2800
073 A020000 0.0000
073 B000000 0.0800
073 C000000 0.0000
074 A000000 5086
074 B000000 0
074 C000000 792926
074 D000000 1644882
074 E000000 68806
074 F000000 3154490
074 G000000 0
074 H000000 0
074 I000000 0
074 J000000 8009
074 K000000 0
074 L000000 43268
074 M000000 0
074 N000000 5717467
074 O000000 41024
074 P000000 1344
074 Q000000 0
074 R010000 0
074 R020000 0
074 R030000 0
074 R040000 7186
074 S000000 0
074 T000000 5667913
074 U010000 348165
074 U020000 0
074 V010000 16.28
074 V020000 0.00
074 W000000 0.0000
074 X000000 171341
074 Y000000 0
075 A000000 0
075 B000000 5437370
076 000000 0.00
077 A000000 N
078 000000 N
080 A000000 NATIONAL UNION FIRE INSURANCE COMPANY
080 B000000 1)CHUBB CUSTOM INS. 2)ICI MUTUAL INS.
080 C000000 65000
081 A000000 Y
081 B000000 60
082 A000000 N
082 B000000 0
<PAGE> PAGE 14
083 A000000 N
083 B000000 0
084 A000000 N
084 B000000 0
085 A000000 Y
085 B000000 N
086 A010000 0
086 A020000 0
086 B010000 0
086 B020000 0
086 C010000 0
086 C020000 0
086 D010000 0
086 D020000 0
086 E010000 0
086 E020000 0
086 F010000 0
086 F020000 0
SIGNATURE PATRICK F. QUAN
TITLE SECRETARY
<TABLE> <S> <C>
<ARTICLE> 6
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-1-1998
<PERIOD-END> JUN-30-1998
<INVESTMENTS-AT-COST> 4,892,328
<INVESTMENTS-AT-VALUE> 5,661,104
<RECEIVABLES> 51,277
<ASSETS-OTHER> 5,086
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 5,717,467
<PAYABLE-FOR-SECURITIES> 41,024
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 8,530
<TOTAL-LIABILITIES> 49,554
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 4,276,108
<SHARES-COMMON-STOCK> 348,165,255
<SHARES-COMMON-PRIOR> 321,188,162
<ACCUMULATED-NII-CURRENT> 25,999
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 248,861
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 768,780
<NET-ASSETS> 5,667,913
<DIVIDEND-INCOME> 36,774
<INTEREST-INCOME> 75,243
<OTHER-INCOME> 0
<EXPENSES-NET> 17,212
<NET-INVESTMENT-INCOME> 94,805
<REALIZED-GAINS-CURRENT> 249,444
<APPREC-INCREASE-CURRENT> (25,833)
<NET-CHANGE-FROM-OPS> 318,416
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 94,020
<DISTRIBUTIONS-OF-GAINS> 26,328
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 49,363,013
<NUMBER-OF-SHARES-REDEEMED> 29,449,535
<SHARES-REINVESTED> 7,063,615
<NET-CHANGE-IN-ASSETS> 632,064
<ACCUMULATED-NII-PRIOR> 25,214
<ACCUMULATED-GAINS-PRIOR> 25,751
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 7,887
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 17,212
<AVERAGE-NET-ASSETS> 5,437,370
<PER-SHARE-NAV-BEGIN> 15.68
<PER-SHARE-NII> .28
<PER-SHARE-GAIN-APPREC> .68
<PER-SHARE-DIVIDEND> .28
<PER-SHARE-DISTRIBUTIONS> .08
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 16.28
<EXPENSE-RATIO> .004
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>