<PAGE> PAGE 1
000 B000000 10/31/96
000 C000000 0000843164
000 D000000 N
000 E000000 NC
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0.a
000 J000000 U
001 A000000 THE CHAPMAN FUNDS, INC.
001 B000000 811-5697
001 C000000 4106259656
002 A000000 401 E. PRATT ST., 28TH FLOOR
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 2
007 C010100 1
007 C020100 CHAPMAN US TREASURY MONEY FUND
007 C030100 N
007 C010200 2
007 C020200 CHAPMAN INSTITUTIONAL CASH MANAGEMENT FUND
007 C030200 N
007 C010300 3
007 C010400 4
007 C010500 5
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
007 C011000 10
010 A00AA01 CHAPMAN CAPITAL MANAGEMENT, INC.
010 B00AA01 801-32849
010 C01AA01 BALTIMORE
010 C02AA01 MD
010 C03AA01 21201
011 A00AA01 THE CHAPMAN CO.
011 B00AA01 8-37188
011 C01AA01 BALTIMORE
011 C02AA01 MD
011 C03AA01 21201
015 A00AA01 UMB BANK
015 B00AA01 C
015 C01AA01 KANSAS CITY
015 C02AA01 MO
015 C03AA01 64141
<PAGE> PAGE 2
015 C04AA01 6226
015 E01AA01 X
018 00AA00 Y
019 A00AA00 N
019 B00AA00 0
022 A000001 NATWEST SECURITIES CORPORATION
022 C000001 4006391
022 D000001 0
022 A000002 NOMURA SECURITIES INTERNATIONAL, INC.
022 B000002 13-2642206
022 C000002 3116037
022 D000002 0
022 A000003 DAIWA SECURITIES AMERICA, INC.
022 B000003 13-5680329
022 C000003 1532813
022 D000003 0
022 A000004 MERRILL LYNCH, INC.
022 B000004 13-5674085
022 C000004 35922
022 D000004 0
022 A000005 LEHMAN BROTHERS, INC.
022 B000005 13-2518466
022 C000005 31970
022 D000005 0
022 A000006 CHASE SECURITIES, INC.
022 B000006 13-3112953
022 C000006 19967
022 D000006 0
022 A000007 UMB BANK
022 C000007 17437
022 D000007 0
022 A000008 FUJI SECURITIES, INC.
022 B000008 36-2880742
022 C000008 11983
022 D000008 0
022 A000009 PAINEWEBBER SECURITIES, INC.
022 B000009 13-2638166
022 C000009 4999
022 D000009 0
022 A000010 CANTOR FITZGERALD
022 B000010 13-3680182
022 C000010 1978
022 D000010 0
023 C000000 8780447
023 D000000 0
024 00AA00 N
028 A01AA00 3475
028 A02AA00 101
028 A03AA00 0
028 A04AA00 6263
028 B01AA00 16025
<PAGE> PAGE 3
028 B02AA00 81
028 B03AA00 0
028 B04AA00 13589
028 C01AA00 8400
028 C02AA00 77
028 C03AA00 0
028 C04AA00 16472
028 D01AA00 2038
028 D02AA00 53
028 D03AA00 0
028 D04AA00 5151
028 E01AA00 16700
028 E02AA00 52
028 E03AA00 0
028 E04AA00 2578
028 F01AA00 24719
028 F02AA00 51
028 F03AA00 0
028 F04AA00 12751
028 G01AA00 71357
028 G02AA00 415
028 G03AA00 0
028 G04AA00 56804
028 H00AA00 0
029 00AA00 N
030 A00AA00 0
030 B00AA00 0.00
030 C00AA00 0.00
062 A00AA00 Y
062 B00AA00 30.7
062 C00AA00 0.0
062 D00AA00 69.7
062 E00AA00 0.0
062 F00AA00 0.0
062 G00AA00 0.0
062 H00AA00 0.0
062 I00AA00 0.0
062 J00AA00 0.0
062 K00AA00 0.0
062 L00AA00 0.0
062 M00AA00 0.0
062 N00AA00 0.0
062 O00AA00 0.0
062 P00AA00 0.0
062 Q00AA00 0.0
062 R00AA00 0.0
063 A00AA00 8
063 B00AA00 0.0
064 A00AA00 N
064 B00AA00 N
066 A00AA00 N
<PAGE> PAGE 4
067 00AA00 N
068 A00AA00 N
068 B00AA00 N
069 00AA00 N
071 A00AA00 8780447
071 B00AA00 0
071 C00AA00 39954
071 D00AA00 0
072 A00AA00 12
072 B00AA00 2150
072 C00AA00 0
072 D00AA00 0
072 E00AA00 0
072 F00AA00 200
072 G00AA00 40
072 H00AA00 0
072 I00AA00 19
072 J00AA00 25
072 K00AA00 0
072 L00AA00 0
072 M00AA00 0
072 N00AA00 3
072 O00AA00 0
072 P00AA00 0
072 Q00AA00 0
072 R00AA00 17
072 S00AA00 1
072 T00AA00 0
072 U00AA00 0
072 V00AA00 0
072 W00AA00 44
072 X00AA00 349
072 Y00AA00 49
072 Z00AA00 1850
072AA00AA00 0
072BB00AA00 0
072CC01AA00 0
072CC02AA00 0
072DD01AA00 1850
072DD02AA00 0
072EE00AA00 0
073 A01AA00 0.0464
073 A02AA00 0.0000
073 B00AA00 0.0000
073 C00AA00 0.0000
074 A00AA00 0
074 B00AA00 38404
074 C00AA00 16945
074 D00AA00 0
074 E00AA00 0
074 F00AA00 0
<PAGE> PAGE 5
074 G00AA00 0
074 H00AA00 0
074 I00AA00 0
074 J00AA00 0
074 K00AA00 0
074 L00AA00 6
074 M00AA00 18
074 N00AA00 55373
074 O00AA00 0
074 P00AA00 0
074 Q00AA00 0
074 R01AA00 0
074 R02AA00 0
074 R03AA00 0
074 R04AA00 245
074 S00AA00 0
074 T00AA00 55128
074 U01AA00 55128
074 U02AA00 0
074 V01AA00 1.00
074 V02AA00 0.00
074 W00AA00 1.0000
074 X00AA00 20
074 Y00AA00 0
075 A00AA00 39954
075 B00AA00 0
076 00AA00 0.00
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 N
077 Q020000 N
077 Q030000 Y
078 000000 N
080 A00AA00 ICI MUTUAL INSURANCE COMPANY
080 C00AA00 525000
081 A00AA00 Y
081 B00AA00 1
<PAGE> PAGE 6
082 A00AA00 N
082 B00AA00 0
083 A00AA00 N
083 B00AA00 0
084 A00AA00 N
084 B00AA00 0
085 A00AA00 Y
085 B00AA00 N
SIGNATURE NATHAN A. CHAPMAN, JR.
TITLE PRESIDENT
<PAGE>
ERNST & YOUNG LLP
ONE NORTH CHARLES STREET
BALTIMORE, MARYLAND 21201
410-539-7940
Board of Directors
The Chapman Funds, Inc.
Baltimore, Maryland
In planning and performing our audit of the financial
statements of The Chapman Funds, Inc. (the "Fund"),
comprised of the U.S. Treasury Fund, for the year ended
October 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 to comply with the requirements of Form N-
SAR, 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 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 being
audited may occur and not be detected within a timely period
<PAGE>
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 at October 31, 1996.
This report is intended solely for the information and use
of management and the Securities and Exchange Commission.
/S/ ERNST & YOUNG LLP
November 22, 1996
BA3DOCS1\0051378.01
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This schedule contains summary financial information extracted from the
Registrant's audited annual financial statements dated October 31, 1996 and is
is qualified in its entirety by reference to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> OCT-31-1996
<PERIOD-END> OCT-31-1996
<INVESTMENTS-AT-COST> 55,349,417
<INVESTMENTS-AT-VALUE> 55,349,417
<RECEIVABLES> 5,819
<ASSETS-OTHER> 18,032
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 55,373,268
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 244,733
<TOTAL-LIABILITIES> 244,733
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 55,128,535
<SHARES-COMMON-STOCK> 55,128,535
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 55,128,535
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 2,150,299
<OTHER-INCOME> 0
<EXPENSES-NET> 300,436
<NET-INVESTMENT-INCOME> 1,849,863
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 1,849,863
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (1,849,863)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 162,896,210
<NUMBER-OF-SHARES-REDEEMED> (143,209,871)
<SHARES-REINVESTED> 1,070,762
<NET-CHANGE-IN-ASSETS> 20,757,101
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 200,323
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 300,436
<AVERAGE-NET-ASSETS> 39,954,272
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> .05
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> (.05)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> .75
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
