SCHWAB CHARLES FAMILY OF FUNDS
N-30D, 1998-07-09
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June 23, 1998



Schwab Funds
101 Montgomery Street
San Francisco, CA  94104

To Whom It May Concern:

On April 30, 1998, three N-30Ds were incorrectly filed under the Schwab Family
of Funds, CIK #0000857156.  These following details the incorrect filings:

1.   Schwab Government Bond Funds Annual Report, dated February 28, 1998
     Accession Number 0001047469-98-017096

2.   Schwab California Tax-Free Bond Funds Annual Report, dated February 28,
     1998
     Accession Number 0001047469-98-017094

3.   Schwab Tax-Free Bond Funds Annual Report, dated February 28, 1998
     Accession Number 0001047469-98-017093

These filings were correctly filed under Schwab Investments, CIK #0000869365, on
June 23, 1998.  They can be referenced under the following accession numbers:

1.   Schwab Government Bond Funds Annual Report, dated February 28, 1998
     Accession Number 0001047469-98-024967

2.   Schwab California Tax-Free Bond Funds Annual Report, dated February 28,
     1998
     Accession Number 0001047469-98-024970

3.   Schwab Tax-Free Bond Funds Annual Report, dated February 28, 1998
     Accession Number 0001047469-98-024972


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