59 WALL STREET FUND INC
N-30D, 1998-07-09
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                                     [LOGO]

                        Inflation-Indexed Securities Fund

                               SEMI-ANNUAL REPORT

                                 April 30, 1998
<PAGE>

              THE 59 WALL STREET INFLATION-INDEXED SECURITIES FUND

                            PORTFOLIO OF INVESTMENTS
                                 April 30, 1998
                                   (unaudited)

 Principal     
  Amount                                                                 Value
 ---------                                                            ----------
             U.S. TREASURY NOTES AND BONDS (81.0%)
$3,949,257   3.375%, 1/15/2007 ....................................  $ 3,827,067
 3,300,360   3.625%, 7/15/2002 ....................................    3,262,207
 2,502,325   3.625%, 4/15/2028 ....................................    2,486,686
                                                                     -----------
               Total U.S. Treasury Notes and Bonds                  
               (identified cost $9,565,258) .......................    9,575,960
                                                                     -----------
                                                                  
             TENNESSEE VALLEY AUTHORITY NOTES (2.5%)              
   306,540   3.375%, 1/15/2007 (identified cost                   
             $297,444) ............................................      291,691
                                                                     -----------
             REPURCHASE AGREEMENT (1.7%)                          
   200,000   J.P. Morgan & Co., 5.25%, 5/1/98                     
               (Agreement dated 4/30/98 collateralized              
               by $202,000 U.S. Treasury Notes 6.125%,              
               due 9/30/00; $200,029 to be received                 
               upon maturity) (identified cost $200,000)...........      200,000
                                                                     -----------
   TOTAL INVESTMENTS (identified cost $10,062,702) (a) ....  85.2%   $10,067,651
   CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES .........  14.8      1,747,315
                                                            -----    -----------
   NET ASSETS ............................................. 100.0%   $11,814,966
                                                            =====    ===========

- ---------- 
(a)   Theaggregate  cost for federal  income tax  purposes is  $10,062,702,  the
      aggregate  gross  unrealized  appreciation  is $35,935,  and the aggregate
      gross  unrealized  depreciation  is $30,986,  resulting in net  unrealized
      appreciation of $4,949

                       See Notes to Financial Statements.


<PAGE>

              THE 59 WALL STREET INFLATION-INDEXED SECURITIES FUND
           
                       STATEMENT OF ASSETS AND LIABILITIES
                                 April 30, 1998
                                   (unaudited)

ASSETS:
   Investments in securities, at value
     (identified cost $10,062,702) (Note 1) ....................    $10,067,651
   Cash (Including $36,115 in foreign currency) ................      1,651,599
   Receivables for:
      Interest .................................................         81,090
      Forward foreign currency exchange contracts
        sold (Note 1) ..........................................         19,085
                                                                    -----------
            Total Assets .......................................     11,819,425
                                                                    -----------
LIABILITIES:
   Payable for:
      Administrative fee (Note 2) ..............................            968
      Expense payment fee (Note 2) .............................          3,491
                                                                    -----------
            Total Liabilities ..................................          4,459
                                                                    -----------
NET ASSETS .....................................................    $11,814,966
                                                                    ===========

Net Assets Consist of:
     Paid-in capital ........................................        12,566,841
     Distributions in excess of net investment income .......            (7,372)
     Accumulated net realized loss ..........................          (768,286)
     Net unrealized appreciation ............................            23,783
                                                                    -----------
Net Assets ..................................................       $11,814,966
                                                                    ===========
NET ASSET VALUE AND OFFERING PRICE PER SHARE
   ($11,814,966 / 1,257,292 shares)............................           $9.40
                                                                          =====

                    See Notes to Financial Statements. 

<PAGE>

              THE 59 WALL STREET INFLATION-INDEXED SECURITIES FUND

                       STATEMENT OF OPERATIONS
                     For the six months ended April 30, 1998
                                   (unaudited)

INVESTMENT INCOME:
      Income:
         Interest ..................................................  $ 301,537
                                                                      ---------
      Expenses:                                                       
         Expense payment fee (Note 2) ..............................     33,880
         Administrative fee (Note 2) ...............................      6,160
                                                                      ---------
            Total Expenses .........................................     40,040
                                                                      ---------
            Net Investment Income ..................................    261,497
                                                                      ---------
NET REALIZED AND UNREALIZED GAIN (LOSS) (Notes 1 and 3):                        
         Net realized loss on investments and foreign exchange        
           transactions ............................................   (123,448)
         Net change in unrealized appreciation on investments         
            and foreign currency translations ......................     22,167
                                                                      ---------
         Net Realized and Unrealized Loss ..........................   (101,281)
                                                                      ---------
         Net Increase in Net Assets Resulting from Operations ......  $ 160,216
                                                                      =========

                       See Notes to Financial Statements.

<PAGE>

              THE 59 WALL STREET INFLATION-INDEXED SECURITIES FUND

                       STATEMENT OF CHANGES IN NET ASSETS

                                                      For the six     For the
                                                      months ended   year ended
                                                     April 30, 1998  October 31,
                                                      (unaudited)       1997
                                                     -------------- ------------
INCREASE (DECREASE) IN NET ASSETS:
  Operations:
    Net investment income ........................  $    261,497    $   723,423
    Net realized loss on investments
       and foreign exchange transactions ........       (123,448)      (135,361)
    Net change in unrealized appreciation/
       depreciation on investments and foreign
       currency translations .....................        22,167       (102,654)
                                                    ------------    -----------
                                                         160,216        485,408
                                                    ------------    -----------
  Dividends and distributions declared (Note 1):
    From net investment income ...................      (301,515)      (721,857)
    In excess of net investment income ...........        (7,372)          --
                                                    ------------    -----------
                                                        (308,887)      (721,857)
                                                    ------------    -----------
  Capital stock transactions (Note 4):
    Net proceeds from sales of
       capital stock .............................     1,692,550      9,346,679
    Net asset value of capital stock issued
       to shareholders in reinvestment of
       dividends and distributions ...............        40,026        442,542
    Net cost of capital stock redeemed ...........    (3,512,730)   (12,629,700)
                                                    ------------    -----------
       Net decrease in net assets resulting
         from capital stock transactions .........    (1,780,154)    (2,840,479)
                                                    ------------    -----------
       Total decrease in net assets ..............    (1,928,825)    (3,076,928)

NET ASSETS:
  Beginning of period ............................    13,743,791     16,820,719
                                                    ------------    -----------
  End of period (including distributions in excess
    of net investment income and undistributed net
    investment income of $7,372 and $40,018, 
    respectively) ................................  $ 11,814,966    $13,743,791
                                                    ============    ===========

                       See Notes to Financial Statements.

<PAGE>
                                                                               
              THE 59 WALL STREET INFLATION-INDEXED SECURITIES FUND

                              FINANCIAL HIGHLIGHTS
                 Selected per share data and ratios for a share
                       outstanding throughout each period

<TABLE>
<CAPTION>
                                               
                                              For the six
                                              months ended             For the years ended October 31,
                                             April 30, 1998  -------------------------------------------------           
                                               (unaudited)    1997       1996       1995       1994       1993
                                               -----------   -----      -----      -----      -----      -----     
<S>                                               <C>        <C>        <C>        <C>        <C>         <C>  
Net asset value, beginning of period.........     $9.51      $9.67      $9.76      $9.37     $10.17       $9.93

Income from investment operations:
  Net investment income......................      0.24       0.48       0.55       0.54       0.52        0.50
  Net realized and unrealized gain (loss) ...     (0.08)     (0.16)     (0.09)      0.39      (0.74)       0.26

Less dividends and distributions (Note 1):
  From net investment income.................     (0.26)     (0.48)     (0.55)     (0.54)     (0.52)      (0.52)
  In excess of net investment income.........     (0.01)       --         --         --         --          --
  Net realized gains ........................       --         --         --         --       (0.05)        --
  In excess of net realized gains............       --         --         --                  (0.01)        --
                                                  -----      -----      -----      -----     ------      ------
Net asset value, end of period...............     $9.40      $9.51      $9.67      $9.76     $ 9.37      $10.17
                                                  =====      =====      =====      =====     ======      ======
Total Return.................................      1.35%(1)   3.40%(1)   4.88%(1)  10.26%(1)  (2.23)%(1)   7.85%(1)

Ratios/Supplemental Data:
  Net assets, end of period (000's omitted)..   $11,815    $13,744    $16,821    $10,830    $10,328      $9,729
  Expenses as a percentage of average
    net assets...............................      0.65%(1,2) 0.73%(1)   0.85%(1)   0.85%(1)   0.85%(1)    0.85%(1)
   Ratio of net investment income
    to average net assets....................      2.11%(2)   4.99%      5.73%      5.66%      5.29%       5.32%

  Portfolio turnover rate....................       145%       372%       114%       228%       129%        149%

</TABLE>
- ----------
(1)   Had the expense payment agreement not been in place, the ratio of expenses
      to average net assets and total returns would have been as follows: 

<TABLE>

      <S>                                          <C>        <C>        <C>        <C>        <C>         <C>  
      Ratio of expenses to average
        net assets............................     1.28%      1.24%      1.40%      1.40%      1.46%       1.46%
      Total return............................     1.04%      2.89%      4.33%      9.71%     (2.84)%      7.24%

</TABLE>
     
      Furthermore,  the ratio of  expenses  to  average  net assets for the year
      ended  October 31,  1997,1996  and 1995 reflect  fees paid with  brokerage
      commissions and fees reduced in connection with specific  agreements.  Had
      these  arrangements not been in place, the ratio would have been 1.26% and
      1.42%, and 1.43% respectively.
(2)   Annualized.

                       See Notes to Financial Statements.

<PAGE>


              THE 59 WALL STREET INFLATION-INDEXED SECURITIES FUND

                          NOTES TO FINANCIAL STATEMENTS
                                   (unaudited)

      1. Organization and Significant  Accounting  Policies.  The 59 Wall Street
Inflation-Indexed    Securities    Fund    (formerly    The   59   Wall   Street
Short/Intermediate  Fixed Income  Fund) (the  "Fund") is a separate  diversified
series of The 59 Wall Street Fund, Inc. (the "Corporation")  which is registered
under the  Investment  Company Act of 1940, as amended.  The  Corporation  is an
open-end management  investment company organized under the laws of the State of
Maryland on July 16,  1990.  The Fund  commenced  operations  on July 23,  1992.
Effective  March 1,  1997,  the  Fund  changed  its  name to The 59 Wall  Street
Inflation-Indexed Securities Fund.

      The Fund's financial  statements are prepared in accordance with generally
accepted  accounting  principles,  which  require  management  to  make  certain
estimates and assumptions at the date of the financial statements and are based,
in part, on the following accounting policies.  Actual results could differ from
those estimates.

            A. Valuation of Investments. Bonds and other fixed income securities
      (other than short-term obligations but including listed issues) are valued
      on the basis of valuations  furnished by a pricing  service,  use of which
      has been  approved by the Board of Directors.  In making such  valuations,
      the  pricing  service   utilizes  both   dealer-supplied   valuations  and
      electronic data processing  techniques which take into account appropriate
      factors  such  as   institutional-size   trading  in  similar   groups  of
      securities,  yield, quality, coupon rate, maturity, type of issue, trading
      characteristics  and other market data,  without  exclusive  reliance upon
      quoted  prices  or  exchange  or  over-the-counter   prices,   since  such
      valuations are believed to reflect more  accurately the fair value of such
      securities.

            Securities  or other  assets  for which  market  quotations  are not
      readily  available are valued at fair value in accordance  with procedures
      established by and under the general supervision and responsibility of the
      Corporation's  Board of  Directors.  Such  procedures  include  the use of
      independent pricing services, which use prices based upon yields or prices
      of  securities  of  comparable   quality,   coupon,   maturity  and  type;
      indications as to the value from dealers;  and general market  conditions.
      Short-term  investments  which  mature  in 60 days or less are  valued  at
      amortized  cost if their  original  maturity  was 60 days or  less,  or by
      amortizing  their  value  on the  61st day  prior  to  maturity,  if their
      original  maturity when acquired by the Fund was more than 60 days, unless
      this is determined not to represent fair value by the Board of Directors.

            B. Accounting for Investments. Investment transactions are accounted
      for on the trade date.  Realized gains and losses, if any, from investment
      transactions  are  determined  on the basis of identified  cost.  Interest
      income is accrued daily and consists of interest accrued,  discount earned
      (including   both  original   issue  and  market   discount)  and  premium
      amortization on the investments of the Fund.

            C. Federal Income Taxes.  It is the  Corporation's  policy to comply
      with the requirements of the Internal Revenue Code applicable to regulated
      investment  companies and to distribute  all of its taxable  income to its
      shareholders.  Accordingly,  no federal  income tax provision is required.
      The Fund files a tax return annually using tax accounting methods required
      under  provisions  of the  Internal  Revenue  Code which may  differ  from
      generally  accepted  accounting  principles,  the  basis  on  which  these
      financial  statements  are  prepared.   Accordingly,  the  amount  of  net
      investment  income  and net  realized  gain  reported  on these  financial
      statements  may differ from that  reported on the Fund's tax return due to
      certain  book-to-tax  timing  differences  such as losses  deferred due to
      "wash sale"  transactions  and utilization of capital loss  carryforwards.
      These timing  differences may result in temporary  over-distributions  for
      financial statement purposes and are classified as distributions in excess
      of accumulated net investment  income and net realized gains. As such, the
      character  of  distributions  to  shareholders  reported in the  Financial
      Highlights  table may differ from that  reported to  shareholders  on Form
      1099-DIV. These distributions do not constitute a return of capital.

            D. Forward Foreign Currency Exchange  Contracts.  The Fund may enter
      into  forward  foreign  currency  exchange   contracts   ("contracts')  in
      connection  with planned  purchases or sales of securities or 

<PAGE>

              THE 59 WALL STREET INFLATION-INDEXED SECURITIES FUND

                    NOTES TO FINANCIAL STATEMENTS (continued)
                                   (unaudited)

      to hedge the U.S.  dollar value of portfolio  securities  denominated in a
      particular currency. The Fund has no specific limitation on the percentage
      of assets  which may be committed  to these types of  contracts.  The Fund
      could be  exposed  to risks if the  counterparties  to the  contracts  are
      unable to meet the terms of their contracts or if the value of the foreign
      currency changes  unfavorably.  The U.S. dollar values of foreign currency
      underlying all  contractual  commitments  held by the funds are determined
      using forward currency exchange rates supplied by a quotation service.

            E.  Dividends  and  Distributions  to  Shareholders.   Dividends  to
      shareholders  from net investment income are paid monthly and are recorded
      on the ex-dividend date. Distributions from net capital gains, if any, are
      paid annually and are recorded on the ex-dividend date.

      2.  Transactions with Affiliates.

      Investment  Advisory  Fee.  The  Corporation  has an  investment  advisory
agreement  with Brown  Brothers  Harriman & Co.  (the  "Adviser")  for which the
Adviser  receives a fee from the Fund  calculated  daily and paid  monthly at an
annual rate equivalent to 0.25% of the Fund's average daily net assets.

      Administrative  Fee. The Corporation has an administration  agreement with
Brown Brothers Harriman & Co. (the  "Administrator") for which the Administrator
receives a fee from the Fund calculated daily and paid monthly at an annual rate
equivalent to 0.10% of the Fund's  average daily net assets.  The  Administrator
has a subadministration  services agreement with 59 Wall Street  Administrators,
Inc. for which 59 Wall Street Administrators, Inc. receives such compensation as
is from time to time  agreed  upon,  but not in excess of the amount paid to the
Administrator. For the six months ended April 30, 1998, the Fund incurred $6,160
for administrative services.

      Shareholder  Servicing/Eligible Institution Agreement. The Corporation has
a shareholder  servicing  agreement and an eligible  institution  agreement with
Brown Brothers Harriman & Co. for which Brown Brothers Harriman & Co. receives a
fee from the Fund calculated daily and paid monthly at an annual rate equivalent
to 0.25% of the Fund's average daily net assets.

      Expense  Payment  Fee. 59 Wall Street  Administrators,  Inc.  pays certain
expenses  of the  Fund and  receives  a fee from  the  Fund,  computed  and paid
monthly,  such that after such fee the aggregate  expenses will not exceed 0.65%
of the  Fund's  average  daily  net  assets.  Prior to March 1,  1997,  under an
agreement dated February 22, 1995, 59 Wall Street Administrators,  Inc. received
a fee from the Fund such that after such payment the  aggregate  expenses of the
Fund did not  exceed an agreed  annual  rate of 0.85% of the  average  daily net
assets of the fund.  For the six months  ended  April 30,  1998,  59 Wall Street
Administrators, Inc. incurred $76,540 in expenses, including investment advisory
fees of $15,400 and shareholder  servicing/eligible institution fees of $15,400,
on behalf of the Fund. The Fund's  expense  payment fee agreement will terminate
on July 1, 2000.

      3. Investment  Transactions.  For the six months ended April 30, 1998, the
cost of purchases and the proceeds of sales of investment  securities other than
short-term investments were $15,921,404 and $18,304,838,  respectively.  Custody
fees for the Fund paid pursuant to the expense  payment  agreement  (see Note 2)
were reduced by approximately  $922 as a result of an expense offset arrangement
with the Fund's custodian.

<PAGE>

             THE 59 WALL STREET INFLATION-INDEXED SECURITIES FUND

                    NOTES TO FINANCIAL STATEMENTS (continued)
                                   (unaudited)

      4. Capital  Stock.  The  Corporation  is permitted to issue  2,500,000,000
shares of capital stock, par value $.001 per share, of which  25,000,000  shares
have been  classified as shares of the Fund.  Transactions  in shares of capital
stock were as follows:

                                               For the six     For the year   
                                              months ended         ended
                                             April 30, 1998   October 31, 1997
                                              -------------   ----------------
Capital stock sold ..........................    180,003            979,948
Capital stock issued in connection with                       
  reinvestment of dividends .................      4,263             46,533
Capital stock repurchased ...................   (372,685)        (1,320,039)
                                                --------         ----------
Net decrease ................................   (188,419)          (293,558)
                                                ========         ==========
                                                           
<PAGE>

The 59 Wall Street Fund, Inc.

Investment Adviser and 
  Administrator
Brown Brothers Harriman & Co.
59 Wall Street
New York, New York 10005

Distributor
59 Wall Street Distributors, Inc.
21 Milk Street
Boston, Massachusetts 02109

Shareholder Servicing Agent
Brown Brothers Harriman & Co.
59 Wall Street
New York, New York 10005
(800) 625-5759

This  report  is  submitted  for  the  general   information  of 
shareholders  and  is  not   authorized   for   distribution  to   
prospective  investors  unless  preceded   or   accompanied   by 
an effective prospectus.  Nothing  herein  contained   is  to be  
considered an offer of sale or a solicitation of an offer to buy  
shares of the Funds. Such offering  is  made only by prospectus,  
which includes details as  to  offering price and other material 
information.



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