<PAGE> PAGE 1
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011 B00AA01 8-30851
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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 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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SIGNATURE CATHY WHITE
TITLE ASST. VICE PRESIDENT
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</TABLE>
[DESCRIPTION]Auditors Report of Internal Control
September 18, 1996
To the Board of Directors of PRIVATE
Alliance Strategic Balanced Fund
In planning and performing our audit of the financial statements
of Alliance Balanced Shares, Inc. (the "Fund") for the year ended
July 31, 1996, we considered its internal control structure,
including procedures for safeguarding securities, in order to
determine our auditing procedures for the purposes of expressing
our opinion on the financial statements and to comply with the
requirements of Form N-SAR, and not to provide assurance on the
internal control structure.
The management of the Fund 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
appropriately 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 may 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 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, 1996.
This report is intended solely for the information and use of
management and the Securities and Exchange Commission.
PRICE WATERHOUSE LLP
[DESCRIPTION]Report of 10f-3 Transactions
Securities Purchases in Underwritings Involving
Transactions with Donaldson, Lufkin, & Jenrette Securities Co
Subject to Rule 10f-3 Under the Investment Company Act of 1940
ALLIANCE STRATEGIC BALANCED FUND
<TABLE>
10f-3 TRANSACTIONS FOR THE PERIOD SEPT 1, 1995 THROUGH NOV 30, 1995
<CAPTION>
Total
Shares Shares % of Issue Shares
Date Shares % of Fund Price per Purchased by Issued Purchased Held
Security Purchased Purchased Assets Share Fund Group (000) By Group Broker(s) 11/30/95
<C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Prudential Reinsurance Hold10/02/95 8,000 0.25% $16.75 8,000 44,000,0000.02% Goldman Sachs 0
</TABLE>
<TABLE>
10f-3 TRANSACTIONS FOR THE PERIOD MAR 1, 1996 THROUGH MAY 31, 1996
<CAPTION>
Total
Date Shares % of Fund Price per Purchased by Issued Purchased Held
Security Purchased Purchased Assets Share Fund Group (000) By Group Broker(s) 05/31/96
<C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
CYTYC Corp. 03/08/96 200 0.01% $16.00 400 3,000 0.01% Robertson, Stephen 0
Eagle River Interactive 03/21/96 200 0.00% $13.00 39,300 4,000 0.98% Salomon Brothers 0
First USA Paymentech 03/21/96 300 0.01% $21.00 21,700 5,100 0.43% Merrill Lynch 0
Forte Software Inc. 03/11/96 100 0.00% $21.00 13,900 1,850 0.75% Morgan Stanley 0
Intelliquest Information Gr03/22/96 100 0.00% $17.00 14,900 1,925 0.77% Blair, William & Co.0
Sterling Commerce 03/08/96 800 0.03% $24.00 76,100 12,000 0.63% Brown, (Alex) & Sons0
Xeikon 03/19/96 1,000 0.03% $15.00 56,300 6,400 0.88% Brown, (Alex) & Sons0
Applied Graphics Tech 04/17/96 900 0.02% $12.00 2,100 4,500 0.05% Cowens & Co 0
Outdoor Systems, Inc 04/24/96 1,200 0.03% $15.00 3,500 2,950 0.12% Brown, (Alex) & Sons1,200
Planet Hollywood 04/18/96 700 0.02% $18.00 75,700 10,788 0.70% Bear, Stearns 0
Aksys, Ltd 05/16/96 200 0.01% $16.00 27,500 3,100 0.89% Smith Barney Inc 0
Edify Corp 05/02/96 100 0.00% $15.00 15,200 2,500 0.61% Goldman Sachs 0
Garden Botanika 05/21/96 100 0.00% $20.00 14,200 2,700 0.53% Montgomery Securitie0
General Surgical Inno. 05/10/96 200 0.01% $15.00 26,400 2,500 1.06% Cowens & Co 0
Open Vision Tech. 05/07/96 100 0.00% $14.00 30,000 2,735 1.10% Brown, (Alex) & Sons0
Polymer Group Inc 05/09/96 2,400 0.08% $18.00 240,989 14,242 1.69% Goldman Sachs 2,400
Saks Hldgs Inc 05/21/96 800 0.04% $25.00 99,100 16,000 0.62% Goldman Sachs 800
Surburban Lodge 05/22/96 200 0.01% $17.00 19,000 3,300 0.58% Montgomery Securitie0
The Vincam Group 05/09/96 100 0.00% $15.00 27,000 2,200 1.23% Smith Barney Inc 0
Wyndham Hotel Corp 05/20/96 500 0.01% $16.00 49,800 3,650 1.36% Smith Barney Inc 0
</TABLE>
<TABLE>
10f-3 TRANSACTIONS FOR THE PERIOD JUNE 1, 1996 THROUGH AUGUST 31, 1996
<CAPTION>
Total
Date Shares % of Fund Price per Purchased by Issued Purchased Held
Security Purchased Purchased Assets Share Fund Group (000) By Group Broker(s) 08/31/96
<C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Dassault System 06/27/96 300 0.01% $23.00 53,500 7,812 0.68% Morgan Stanley 0
Diamond Home Serv. 06/23/96 100 0.00% $13.00 200 3,420 0.01% Blair, Williams 0
Farallon Communications 06/18/96 100 0.00% $16.00 28,000 2,250 1.24% Cowen & Co 0
Interstate Hotels Co. 06/19/96 800 0.03% $21.00 101,400 11,000 0.92% Merrill Lynch 1,100
McLeod 06/10/96 1,600 0.03% $20.00 4,400 12,000 0.04% Salomon Brothers 0
Southern Pacific Funding 06/13/96 1,000 0.03% $17.00 2,700 5,000 0.05% Natwest Securities 0
Teleport Communications 06/27/96 2,800 0.09% $16.00 567,800 23,500 2.42% Merrill Lynch 0
Universal Outdoor 07/23/96 1,000 0.03% $14.50 131,400 6,200 2.12% Brown (Alex) & Sons 900
CCC Information Svcs 08/16/96 200 0.00% $11.50 700 6,000 0.01% Lazard Freres 0
Lamar Advertising 08/01/96 600 0.02% $16.00 1,800 4,735 0.04% Smith Barney 900
National Processing 08/08/96 200 0.01% $16.50 600 6,500 0.01% Salomon Brothers 0
Outdoor Systems 08/19/96 500 0.03% $34.50 13,300 8,605 0.15% Brown (Alex) & Sons 500
</TABLE>
1-Purchase may not exceed 3% of Fund's Total Assets.
2-Purchases by all Alliance Funds may not exceed the greater of (i) 4% of
the principal amount of the offering or (ii) $500,000 in principal amount,
but in no event may exeed 10% of the principal amount of the offering.
