TRUST FOR SHORT TERM U S GOVERNMENT SECURITIES
485BPOS, 1994-01-27
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                                           1933 Act File No. 2-54929
                                           1940 Act File No. 811-2602
 
                     SECURITIES AND EXCHANGE COMMISSION
                           Washington, D.C. 20549
 
                                 Form N-1A
 
 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933              X   
 
     Pre-Effective Amendment No.                                          
 
     Post-Effective Amendment No.   50                                X   
 
                                   and/or
 
 REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940      X   
 
     Amendment No.   23                                               X   
 
              TRUST FOR SHORT-TERM U.S. GOVERNMENT SECURITIES
 
             (Exact Name of Registrant as Specified in Charter)
 
       Federated Investors Tower, Pittsburgh, Pennsylvania 15222-3779
                  (Address of Principal Executive Offices)
 
                               (412) 288-1900
                      (Registrant's Telephone Number)
 
                        John W. McGonigle, Esquire,
                         Federated Investors Tower,
                    Pittsburgh, Pennsylvania 15222-3779
                  (Name and Address of Agent for Service)
 
 It is proposed that this filing will become effective:
 
  X  immediately upon filing pursuant to paragraph (b)
     on _________________ pursuant to paragraph (b)
     60 days after filing pursuant to paragraph (a)
     on                 pursuant to paragraph (a) of Rule 485.
 
 Registrant has filed with the Securities and Exchange Commission a 
 declaration pursuant to Rule 24f-2 under the Investment Company Act of 
 1940, and:
 
  X  filed the Notice required by that Rule on January 18, 1994; or
     intends to file the Notice required by that Rule on or about 
     ____________; or
     during the most recent fiscal year did not sell any securities pursuant 
  to Rule 24f-2 under the Investment Company Act of 1940, and, pursuant to 
  Rule 24f-2(b)(2), need not file the Notice.
 
                                 Copies to:
 
 Thomas J. Donnelly, Esquire               Charles H. Morin, Esquire
    Houston, Houston & Donnelly           Dickstein, Shapiro & Morin
 2510 Centre City Tower                    2101 L Street, N.W.
 650 Smithfield Street                     Washington, D.C.  20037
 Pittsburgh, Pennsylvania 15222
 
                           CROSS REFERENCE SHEET
 
 
     This Amendment to the Registration Statement of TRUST FOR SHORT-TERM 
 U.S. GOVERNMENT SECURITIES is comprised of the following:
 
 PART A.  INFORMATION REQUIRED IN A PROSPECTUS.
 
                                           Prospectus Heading
                                           (Rule 404(c) Cross Reference)
 
 Item 1. Cover Page                        Cover Page.
 Item 2. Synopsis                          Summary of Trust Expenses.
 Item 3. Condensed Financial Information   Financial Highlights; Performance 
                                           Information.
 Item 4. General Description of Registrant General Information; Investment 
                                           Information; Investment 
                                           Objective; Investment Policies; 
                                           Investment Limitations. 
 Item 5. Management of the Fund            Trust Information; Management of 
                                           the Trust; Distribution of Trust 
                                           Shares; Administration of the 
                                           Trust; Expenses of the Trust.
 Item 6.                                   Capital Stock and Other Securities
                                           Dividends; Capital Gains; 
                                           Shareholder Information; Voting 
                                           Rights; Massachusetts Partnership 
                                           Law; Tax Information; Federal 
                                           Income Tax; State and Local 
                                           Taxes.
Item 7. Purchase of Securities Being 
        Offered                            Investing in the Trust; Share 
                                           Purchases; Minim
                                           Investment Required; Cash Sweep 
                                           Program; What Shares Cost; 
                                           Subaccounting Services; 
                                           Certificates and Confirmations; 
                                           Net Asset Value.
 Item 8. Redemption or Repurchase          Redeeming Shares; Telephone 
                                           Redemption; Written Requests; 
                                           Redemption Before Purchase 
                                           Instruments Clear; Accounts With 
                                           Low Balances; Redemption in Kind.
 Item 9.                                   Pending Legal Proceedings      
                                           None. 
 PART B. INFORMATION REQUIRED IN A STATEMENT OF ADDITIONAL INFORMATION.
 
 Item 10.  Cover Page                        Cover Page.
 Item 11.  Table of Contents                 Table of Contents.
 Item 12.  General Information and History.  General Information About 
                                             the Trust.
 Item 13.  Investment Objectives and 
            Policies                         Investment Objective and Policies.
 Item 14.   Management of the Fund           Trust Management.
 Item 15.   Control Persons and Principal    Holders of Securities
                                             Not applicable.
 Item 16.   Investment Advisory and Other    Services Investment 
                                             Advisory Services; Administrative 
                                             Services.
 Item 17.   Brokerage Allocation             Brokerage Transactions.
 Item 18.   Capital Stock and Other          Securities
                                             Not applicable.
 Item 19.   Purchase, Redemption and 
             Pricing  of Securities Being 
             Offered                         Purchasing Shares; Determining 
                                             Net Asset Value; Redeeming 
                                             Shares.
 Item 20.   Tax Status                       Tax Status.
 Item 21.   Underwriters                     Not applicable.
 Item 22.   Calculations of Performance Data Yield; Effective Yield; 
                                             Performance Comparisons.
 Item 23.  Financial Statements              Filed in Part A.
 

TRUST FOR SHORT-TERM
U.S. GOVERNMENT SECURITIES

PROSPECTUS

Trust for Short-Term U.S. Government Securities (the "Trust") is a no-load,
open-end, diversified management investment company (a mutual fund) investing in
short-term U.S. government securities to achieve high current income consistent
with stability of principal and liquidity.

AN INVESTMENT IN THE TRUST IS NEITHER INSURED NOR GUARANTEED BY THE U.S.
GOVERNMENT. THE TRUST ATTEMPTS TO MAINTAIN A STABLE NET ASSET VALUE OF $1.00 PER
SHARE; THERE CAN BE NO ASSURANCE THAT THE TRUST WILL BE ABLE TO DO SO.

   
THE SHARES OFFERED BY THIS PROSPECTUS ARE NOT DEPOSITS OR OBLIGATIONS OF ANY
BANK, ARE NOT ENDORSED OR GUARANTEED BY ANY BANK, AND ARE NOT INSURED BY THE
FEDERAL DEPOSIT INSURANCE CORPORATION, THE FEDERAL RESERVE BOARD, OR ANY OTHER
GOVERNMENT AGENCY.
    

This prospectus contains the information you should read and know before you
invest in the Trust. Keep this prospectus for future reference.

   
The Trust has also filed a Statement of Additional Information dated January 31,
1994, with the Securities and Exchange Commission. The information contained in
the Statement of Additional Information is incorporated by reference into this
prospectus. You may request a copy of the Statement of Additional Information
free of charge by calling 1-800-235-4669. To obtain other information or to make
inquiries about the Trust, contact this Trust at the address listed in the back
of this prospectus.
    

The Trust aims to provide institutional investors with a cost-effective,
administratively convenient, highly liquid, cash equivalent vehicle that can be
integrated into an existing or contemplated cash management system. The Trust
will report changes in principal balances and monthly income distributions in a
format that is compatible with all major trust operations systems presently in
use.

THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE
ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.

   
Prospectus dated January 31, 1994
    

TABLE OF CONTENTS
- --------------------------------------------------------------------------------

SUMMARY OF TRUST EXPENSES                                                      1
- ------------------------------------------------------

   
FINANCIAL HIGHLIGHTS                                                           2
    

- ------------------------------------------------------

GENERAL INFORMATION                                                            3
- ------------------------------------------------------

INVESTMENT INFORMATION                                                         3
- ------------------------------------------------------

  Investment Objective                                                         3
  Investment Policies                                                          3
     Acceptable Investments                                                    3
       Repurchase Agreements                                                   4
     When-Issued and Delayed Delivery
Transactions                                                                   4
     Portfolio Turnover                                                        4
  Investment Limitations                                                       4
  Regulatory Compliance                                                        5

TRUST INFORMATION                                                              5
- ------------------------------------------------------

  Management of the Trust                                                      5
     Board of Trustees                                                         5
     Investment Adviser                                                        5
       Advisory Fees                                                           5
       Adviser's Background                                                    5
  Distribution of Trust Shares                                                 6
  Administration of the Trust                                                  6
     Administrative Services                                                   6
   
     Custodian                                                                 6
    
   
     Transfer Agent and
       Dividend Disbursing Agent                                               6
    
     Legal Counsel                                                             6
     Independent Auditors                                                      6

   
NET ASSET VALUE                                                                6
    
- ------------------------------------------------------

INVESTING IN THE TRUST                                                         6
- ------------------------------------------------------

  Share Purchases                                                              6
     By Wire                                                                   7
     By Mail                                                                   7
  Minimum Investment Required                                                  7
  Cash Sweep Program                                                           7
     Participating Depository Institutions                                     7
  What Shares Cost                                                             7
  Subaccounting Services                                                       8
  Certificates and Confirmations                                               8
  Dividends                                                                    8
  Capital Gains                                                                8

REDEEMING SHARES                                                               8
- ------------------------------------------------------

  Telephone Redemption                                                         8
  Written Requests                                                             9
     Signatures                                                                9
     Receiving Payment                                                         9
  Redemption Before Purchase
     Instruments Clear                                                        10
  Accounts with Low Balances                                                  10
  Redemption in Kind                                                          10

SHAREHOLDER INFORMATION                                                       10
- ------------------------------------------------------

  Voting Rights                                                               10
  Massachusetts Partnership Law                                               10

TAX INFORMATION                                                               11
- ------------------------------------------------------

  Federal Income Tax                                                          11
  State and Local Taxes                                                       11
     Pennsylvania Corporate and
       Personal Property Taxes                                                11

PERFORMANCE INFORMATION                                                       11
- ------------------------------------------------------

FINANCIAL STATEMENTS                                                          12
- ------------------------------------------------------

INDEPENDENT AUDITORS' REPORT                                                  20
- ------------------------------------------------------

ADDRESSES                                                      Inside Back Cover
- ------------------------------------------------------


SUMMARY OF TRUST EXPENSES
- --------------------------------------------------------------------------------
   
<TABLE>
<S>                                                                                                 <C>       <C>
                                         SHAREHOLDER TRANSACTION EXPENSES
Maximum Sales Load Imposed on Purchases
  (as a percentage of offering price)........................................................                  None
Maximum Sales Load Imposed on Reinvested Dividends
  (as a percentage of offering price)........................................................                  None
Deferred Sales Load (as a percentage of original
  purchase price or redemption proceeds, as applicable)......................................                  None
Redemption Fees (as a percentage of amount redeemed, if applicable)..........................                  None
Exchange Fee.................................................................................                  None
                                          ANNUAL TRUST OPERATING EXPENSES
                                      (As a percentage of average net assets)
Management Fee (after waiver) (1)............................................................                  0.38%
12b-1 Fee....................................................................................                  None
Total Other Expenses.........................................................................                  0.07%
          Total Trust Operating Expenses (2).................................................                  0.45%
</TABLE>

- ---------

(1) The management fee has been reduced to reflect the waiver of a portion of
    the management fee. The maximum management fee is 0.40%.

(2) The total Trust operating expenses would have been 0.47% absent the waiver
    of a portion of the management fee.

     THE PURPOSE OF THIS TABLE IS TO ASSIST AN INVESTOR IN UNDERSTANDING THE
VARIOUS COSTS AND EXPENSES THAT A SHAREHOLDER OF THE TRUST WILL BEAR, EITHER
DIRECTLY OR INDIRECTLY. FOR MORE COMPLETE DESCRIPTIONS OF THE VARIOUS COSTS AND
EXPENSES, SEE "TRUST INFORMATION." WIRE-TRANSFERRED REDEMPTIONS OF LESS THAN
$5,000 MAY BE SUBJECT TO ADDITIONAL FEES.
    

<TABLE>
<CAPTION>
EXAMPLE                                                                  1 year     3 years    5 years    10 years
<S>                                                                     <C>        <C>        <C>        <C>
You would pay the following expenses on a $1,000
investment assuming (1) 5% annual return and
(2) redemption at the end of each time period. As noted in
the table above, the Trust charges no redemption fees.................    $5        $14       $25       $57
</TABLE>

     THE ABOVE EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR
FUTURE EXPENSES. ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.

   
TRUST FOR SHORT-TERM U.S. GOVERNMENT SECURITIES
FINANCIAL HIGHLIGHTS

- --------------------------------------------------------------------------------

(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)

Reference is made to the Independent Auditors' Report on page 20.

<TABLE>
<CAPTION>
                                                             YEAR ENDED NOVEMBER 30,
<S>                <C>        <C>        <C>        <C>        <C>        <C>        <C>        <C>        <C>        <C>
                     1993       1992       1991       1990       1989       1988       1987       1986       1985       1984
- -----------------  ---------  ---------  ---------  ---------  ---------  ---------  ---------  ---------  ---------  ---------
NET ASSET VALUE,
BEGINNING OF
PERIOD             $    1.00  $    1.00  $    1.00  $    1.00  $    1.00  $    1.00  $    1.00  $    1.00  $    1.00  $    1.00
- -----------------
INCOME FROM
INVESTMENT OPERA-
TIONS
- -----------------
 Net investment
 income                 0.03       0.04       0.06       0.08       0.09       0.07       0.06       0.06       0.08       0.10
- -----------------  ---------  ---------  ---------  ---------  ---------  ---------  ---------  ---------  ---------  ---------
LESS
DISTRIBUTIONS
- -----------------
 Dividends to
 shareholders
 from net
 investment
 income                (0.03)     (0.04)     (0.06)     (0.08)     (0.09)     (0.07)     (0.06)     (0.06)     (0.08)     (0.10)
- -----------------  ---------  ---------  ---------  ---------  ---------  ---------  ---------  ---------  ---------  ---------
NET ASSET VALUE,
END OF PERIOD      $    1.00  $    1.00  $    1.00  $    1.00  $    1.00  $    1.00  $    1.00  $    1.00  $    1.00  $    1.00
- -----------------  ---------  ---------  ---------  ---------  ---------  ---------  ---------  ---------  ---------  ---------
TOTAL RETURN*      2.87%      3.72%      6.10%      8.08%      9.01%      7.05%      6.09%      6.59%      8.65%      10.07%
- -----------------
RATIOS TO AVERAGE
NET ASSETS
- -----------------
 Expenses              0.45%      0.45%      0.46%      0.45%      0.45%      0.45%      0.45%      0.45%      0.45%      0.45%
- -----------------
 Net investment
 income                2.82%      3.68%      5.99%      7.79%      8.65%      6.79%      5.90%      6.39%      7.91%      9.61%
- -----------------
SUPPLEMENTAL DATA
- -----------------
 Net assets, end
 of
 period (000
 omitted)         $1,730,402 $2,358,748 $2,802,108 $3,603,455 $3,852,650 $3,993,621 $5,148,285 $5,866,222 $6,108,833 $6,141,101
- -----------------
</TABLE>

* Based on net asset value which does not reflect the sales load or redemption
  fee, if applicable.

(See Notes which are an integral part of the Financial Statements)
     

GENERAL INFORMATION
- --------------------------------------------------------------------------------

The Trust was established as a Massachusetts business trust under a Declaration
of Trust dated October 30, 1975. The Trust is designed for institutional
investors, such as banks, fiduciaries, custodians of public funds, and similar
institutional investors, such as corporations, unions, hospitals, insurance
companies, and municipalities, as a convenient means of participating in a
professionally managed, diversified portfolio limited to short-term U.S.
government securities. The Trust is also designed for customers of institutional
investors. A minimum initial investment of $25,000 over a 90-day period is
required.

The Trust attempts to stabilize the value of a Share at $1.00. Trust shares are
currently sold and redeemed at that price.

INVESTMENT INFORMATION
- --------------------------------------------------------------------------------

INVESTMENT OBJECTIVE

The investment objective of the Trust is high current income consistent with
stability of principal and liquidity. The Trust pursues this investment
objective by investing in a portfolio of short-term U.S. government securities.
The average maturity of U.S. government securities in the Trust's portfolio,
computed on a dollar-weighted basis, will be 120 days or less. As a matter of
operating policy, in order to meet certain regulatory requirements, the Trust
will limit the average maturity of portfolio securities to 90 days or less and
will limit its acquisition of any single portfolio security to those with a
remaining maturity of thirteen months or less. While there is no assurance that
the Trust will achieve its investment objective, it endeavors to do so by
following the investment policies described in this prospectus. The investment
objective and the polices and limitations described below cannot be changed
without approval of shareholders.

INVESTMENT POLICIES

ACCEPTABLE INVESTMENTS.  The U.S. government securities in which the Trust
invests are either issued or guaranteed by the U.S. government, its agencies, or
instrumentalities. These securities include, but are not limited to:

       direct obligations of the U.S. Treasury, such as U.S. Treasury bills,
       notes, and bonds; and

       notes, bonds, and discount notes of U.S. government agencies or
       instrumentalities, such as Federal Home Loan Bank, Federal Farm Credit
       Bank, and Student Loan Marketing Association.

Some obligations issued or guaranteed by agencies or instrumentalities of the
U.S. government, such as Government National Mortgage Association participation
certificates, are backed by the full faith and credit of the U.S. Treasury. No
assurances can be given that the U.S. government will provide financial support
to other agencies or instrumentalities, since it is not obligated to do so.
These instrumentalities are supported by:

       the issuer's right to borrow an amount limited to a specific line of
       credit from the U.S. Treasury;

       discretionary authority of the U.S. government to purchase certain
       obligations of an agency or instrumentality; or

       the credit of the agency or instrumentality.

     REPURCHASE AGREEMENTS.  The U.S. government securities in which the Trust
     invests may be purchased pursuant to repurchase agreements. Repurchase
     agreements are arrangements in which banks, broker/dealers, and other
     recognized financial institutions sell U.S. government securities or other
     securities to the Trust and agree at the time of sale to repurchase them at
     a mutually agreed upon time and price within one year from the date of
     acquisition. The Trust or its custodian will take possession of the
     securities subject to repurchase agreements and these securities will be
     marked to market daily. To the extent that the original seller does not
     repurchase the securities from the Trust, the Trust could receive less than
     the repurchase price on any sale of such securities. In the event that such
     a defaulting seller filed for bankruptcy or became insolvent, disposition
     of such securities by the Trust might be delayed pending court action. The
     Trust believes that under the regular procedures normally in effect for
     custody of the Trust's portfolio securities subject to repurchase
     agreements, a court of competent jurisdiction would rule in favor of the
     Trust and allow retention or disposition of such securities. The Trust will
     only enter into repurchase agreements with banks and other recognized
     financial institutions such as broker/dealers which are found by the
     Trust's adviser to be creditworthy pursuant to guidelines established by
     the Trustees.

As a matter of investment practice, which can be changed without shareholder
approval, the Trust will limit its investments to those U.S. government
securities, the interest from which is exempt from personal income tax in the
various states if owned directly. In addition, repurchase agreements providing
for settlement in more than seven days after notice, along with illiquid
obligations, will be limited to not more than 10% of the Trust's net assets.

WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS.  The Trust may purchase
short-term U.S. government securities on a when-issued or delayed delivery
basis. These transactions are arrangements in which the Trust purchases
securities with payment and delivery scheduled for a future time. The Trust
engages in when-issued and delayed delivery transactions only for the purpose of
acquiring portfolio securities consistent with the Trust's investment objective
and policies, not for investment leverage. In when-issued and delayed delivery
transactions, the Trust relies on the seller to complete the transaction. The
seller's failure to complete the transaction may cause the Trust to miss a price
or yield considered to be advantageous.

PORTFOLIO TURNOVER. _The Trust normally holds portfolio instruments to maturity
but may dispose of them prior to maturity if its investment adviser believes it
advisable. Investing in short-term U.S. government securities will result in
high portfolio turnover. Since the cost of these transactions is small, high
turnover is not expected to adversely affect net asset value or yield.

INVESTMENT LIMITATIONS

The Trust will not borrow money except, under certain circumstances, the Trust
may borrow up to one-third of the value of its total assets.

REGULATORY COMPLIANCE

The Trust may follow non-fundamental operational policies that are more
restrictive than its fundamental investment limitations, as set forth in this
prospectus and its Statement of Additional Information, in order to comply with
applicable laws and regulations, including the provisions of and regulations
under the Investment Company Act of 1940, as amended. In particular, the Trust
will comply with the various requirements of Rule 2a-7, which regulates money
market mutual funds. The Trust will determine the effective maturity of its
investments according to Rule 2a-7. The Trust may change these operational
policies to reflect changes in the laws and regulations without the approval of
its shareholders.

TRUST INFORMATION
- --------------------------------------------------------------------------------

MANAGEMENT OF THE TRUST

   
BOARD OF TRUSTEES.  The Trust is managed by a Board of Trustees ("Trustees").
The Trustees are responsible for managing the Trust's business affairs and for
exercising all the Trust's powers except those reserved for the shareholders.
The Executive Committee of the Board of Trustees handles the Board's
responsibilities between meetings of the Board.
    

   
INVESTMENT ADVISER.  Investment decisions for the Trust are made by Federated
Research, the Trust's investment adviser, subject to direction by the Trustees.
The adviser continually conducts investment research and supervision for the
Trust and is responsible for the purchase or sale of portfolio instruments, for
which it receives an annual fee from the Trust.
    

   
     ADVISORY FEES.  The Trust's adviser receives an annual investment advisory
     fee equal to .40 of 1% of the Trust's average daily net assets. Under the
     investment advisory contract, the adviser will reimburse the Trust the
     amount, limited to the amount of the advisory fee, by which the Trust's
     aggregate annual operating expenses, including its investment advisory fee,
     but excluding interest, taxes, brokerage commissions, expenses of
     registering and qualifying the Trust and its shares under federal and state
     laws, expenses of withholding taxes, and extraordinary expenses, exceed .45
     of 1% of its average daily net assets. This does not include reimbursement
     to the Trust of any expenses incurred by shareholders who use the transfer
     agent's subaccounting facilities. The adviser has also undertaken to
     reimburse the Trust for operating expenses in excess of limitations
     established by certain states.
    

     ADVISER'S BACKGROUND.  Federated Research, a Delaware business trust
     organized on April 11, 1989, is a registered investment adviser under the
     Investment Advisers Act of 1940. It is a subsidiary of Federated Investors.
     All of the Class A (voting) shares of Federated Investors are owned by a
     trust, the trustees of which are John F. Donahue, Chairman and Trustee of
     Federated Investors, Mr. Donahue's wife, and Mr. Donahue's son, J.
     Christopher Donahue, who is President and Trustee of Federated Investors.

   
     Federated Research and other subsidiaries of Federated Investors serve as
     investment advisers to a number of investment companies and private
     accounts. Certain other subsidiaries of Federated Investors also provide
     administrative services to a number of investment companies. Total assets
     under management or administration by these and other subsidiaries of
     Federated Investors are approximately $70 billion. Federated Investors,
     which was founded in 1956 as Federated Investors, Inc., develops and
     manages mutual funds primarily for the financial industry. Federated
     Investors' track record of competitive performance and its disciplined,
     risk-adverse investment philosophy serve approximately 3,500 client
     institutions nationwide. Through these same client institutions, individual
     shareholders also have access to this same level of investment expertise.
    

DISTRIBUTION OF TRUST SHARES

Federated Securities Corp. is the principal distributor for shares of the Trust.
It is a Pennsylvania corporation organized on November 14, 1969, and is the
principal distributor for a number of investment companies. Federated Securities
Corp. is a subsidiary of Federated Investors.

ADMINISTRATION OF THE TRUST

ADMINISTRATIVE SERVICES.  Federated Administrative Services, Inc., which is a
subsidiary of Federated Investors, provides the Trust with the administrative
personnel and services necessary to operate the Trust. Such services include
shareholder servicing and certain legal and accounting services. Federated
Administrative Services, Inc. provides these at approximate cost.

   
CUSTODIAN.  State Street Bank and Trust Company, Boston, Massachusetts, is
custodian for the securities and cash of the Trust.
    

   
TRANSFER AGENT AND DIVIDEND DISBURSING AGENT. _Federated Services Company,
Pittsburgh, Pennsylvania, is transfer agent for the shares of the Trust and
dividend disbursing agent for the Trust.
    

LEGAL COUNSEL.  Legal counsel is provided by Houston, Houston & Donnelly,
Pittsburgh, Pennsylvania, and Dickstein, Shapiro & Morin, Washington, D.C.

INDEPENDENT AUDITORS.  The independent auditors for the Trust are Deloitte &
Touche, Boston, Massachusetts.
   
NET ASSET VALUE
- --------------------------------------------------------------------------------
    
The Trust attempts to stabilize the net asset value of its shares at $1.00 by
valuing the portfolio securities using the amortized cost method. The net asset
value per share is determined by subtracting total liabilities from total assets
and dividing the remainder by the number of shares outstanding. The Trust, of
course, cannot guarantee that its net asset value will always remain at $1.00
per share.

INVESTING IN THE TRUST
- --------------------------------------------------------------------------------

SHARE PURCHASES

Trust shares are sold on days on which the New York Stock Exchange is open.
Shares may be purchased either by wire or by mail. To purchase shares of the
Trust, open an account by calling Federated Securities Corp. Information needed
to establish the account will be taken over the telephone. The Trust reserves
the right to reject any purchase request.

   
BY WIRE.  To purchase shares of the Trust by Federal Reserve wire, call the
Trust before 3:00 p.m. (Eastern time) to place an order. The order is considered
received immediately. Payment by federal funds must be received before 3:00 p.m.
(Eastern time) that same day. Federal funds should be wired as follows: State
Street Bank and Trust Company, Boston, Massachusetts; Attention: EDGEWIRE; For
Credit to: Trust for Short-Term U.S. Government Securities; Fund Number (this
number can be found on the account statement or by contacting the Trust); Group
Number or Order Number; Nominee or Institution Name; and ABA Pound011000028.
Shares cannot be purchased by Federal Reserve wire on days on which the New York
Stock Exchange is closed and on federal holidays restricting wire transfers.
    

   
BY MAIL.  To purchase shares of the Trust by mail, send a check made payable to
Trust for Short-Term U.S. Government Securities to Federated Services Company,
c/o State Street Bank and Trust Company, P.O. Box 8602, Boston, Massachusetts
02266-8602. Orders by mail are considered received after payment by check is
converted by State Street Bank into federal funds. This is normally the next
business day after State Street Bank receives the check.
    

MINIMUM INVESTMENT REQUIRED

   
The minimum initial investment in the Trust is $25,000. However, an account may
be opened with a smaller amount as long as the $25,000 minimum is reached within
90 days. An institutional investor's minimum investment will be calculated by
combining all accounts it maintains with the Trust. Accounts established through
a bank or broker may be subject to a different minimum investment.
    

CASH SWEEP PROGRAM

Cash accumulations in demand deposit accounts with depository institutions such
as banks and savings and loan associations may be automatically invested in
shares of the Trust on a day selected by the depository institution and its
customer, or when the demand deposit account reaches a predetermined dollar
amount (e.g., $5,000).

PARTICIPATING DEPOSITORY INSTITUTIONS.  Participating depository institutions
are responsible for prompt transmission of orders relating to the program. These
depository institutions are the record owners of the shares of the Trust.
Depository institutions participating in this program may charge their customers
for their services relating to the program. This prospectus should, therefore,
be read together with any agreement between the customer and the depository
institution with regard to the services provided, the fees charged for those
services, and any restrictions and limitations imposed.

WHAT SHARES COST

Trust shares are sold at their net asset value next determined after an order is
received. There is no sales charge imposed by the Trust.

   
The net asset value is determined at 12:00 noon (Eastern time), 3:00 p.m.
(Eastern time), and 4:00 p.m. (Eastern time), Monday through Friday, except on:
(i) days on which there are not sufficient changes in the value of the Trust's
portfolio securities that its net asset value might be materially affected; (ii)
days during which no shares are tendered for redemption and no orders to
purchase shares are received; and (iii) the following holidays: New Year's Day,
Presidents' Day, Good Friday, Memorial Day, Independence Day, Labor Day,
Thanksgiving Day, and Christmas Day.
    

SUBACCOUNTING SERVICES

Institutions are encouraged to open single master accounts. However, certain
institutions may wish to use the transfer agent's subaccounting system to
minimize their internal recordkeeping requirements. The transfer agent charges a
fee based on the level of subaccounting services rendered. Institutions holding
Trust shares in a fiduciary, agency, custodial, or similar capacity may charge
or pass through subaccounting fees as part of or in addition to normal trust or
agency account fees. They may also charge fees for other services provided which
may be related to the ownership of Trust shares. This prospectus should,
therefore, be read together with any agreement between the customer and the
institution with regard to the services provided, the fees charged for those
services, and any restrictions and limitations imposed.

CERTIFICATES AND CONFIRMATIONS

   
As transfer agent for the Trust, Federated Services Company maintains a share
account for each shareholder. Share certificates are not issued unless requested
by contacting the Trust.
    

Monthly confirmations are sent to report transactions such as purchases and
redemptions as well as dividends paid during the month.

DIVIDENDS

   
Dividends are declared daily and paid monthly. Shares purchased by wire before
3:00 p.m. (Eastern time) begin earning dividends that day. Shares purchased by
check begin earning dividends on the day after the check is converted, upon
instruction of the transfer agent, into federal funds. Dividends are
automatically reinvested on payment dates in additional shares of the Trust
unless cash payments are requested by contacting the Trust.
    

CAPITAL GAINS

Since the Trust's policy is, under normal circumstances, to hold portfolio
securities to maturity and to value portfolio securities at amortized cost, it
does not expect any capital gains or losses. If the Trust does experience gains,
it could result in an increase in dividends. Capital losses could result in a
decrease in dividends. If, for some extraordinary reason, the Trust realizes net
long-term capital gains, it will distribute them at least once every 12 months.

REDEEMING SHARES
- --------------------------------------------------------------------------------

The Trust redeems shares at their net asset value next determined after the
Trust receives the redemption request. Redemptions will be made on days on which
the Trust computes its net asset value. Redemption requests must be received in
proper form and can be made by telephone request or by written request.

TELEPHONE REDEMPTION

   
Shareholders may redeem their shares by telephoning the Trust before 12:00 noon
(Eastern time). The proceeds will be wired the same day to the shareholder's
account at a domestic commercial bank that is a member of the Federal Reserve
System. If, at any time, the Trust shall determine it necessary to terminate
or modify this method of redemption, shareholders would be promptly notified.
    

   
A daily dividend will be paid on shares redeemed if the redemption request is
received after 12:00 noon (Eastern time). However, the proceeds are not wired
until the following business day. Redemption requests received before 12:00 noon
(Eastern time) will be paid the same day but will not be entitled to that day's
dividend.
    

   
An authorization form permitting the Trust to accept telephone requests must
first be completed. Authorization forms and information on this service are
available from Federated Securities Corp. Telephone redemption instructions may
be recorded. If reasonable procedures are not followed by the Trust, it may be
liable for losses due to unauthorized or fraudulent telephone instructions.
    

In the event of drastic economic or market changes, a shareholder may experience
difficulty in redeeming by telephone. If such a case should occur, another
method of redemption, such as "Written Requests", should be considered.

WRITTEN REQUESTS

Trust shares may also be redeemed by sending a written request to the Trust.
Call the Trust for specific instructions before redeeming by letter. The
shareholder will be asked to provide in the request his name, the Trust name,
his account number, and the share or dollar amount requested. If share
certificates have been issued, they must be properly endorsed and should be sent
by registered or certified mail with the written request.

SIGNATURES.  Shareholders requesting a redemption of $50,000 or more, a
redemption of any amount to be sent to an address other than that on record with
the Trust, or a redemption payable other than to the shareholder of record must
have signatures on written redemption requests guaranteed by:

       a trust company or commercial bank whose deposits are insured by the Bank
       Insurance Fund ("BIF") which is administered by the Federal Deposit
       Insurance Corporation ("FDIC");

   
       a member of the New York, American, Boston, Midwest, or Pacific Stock
       Exchange;
    

       a savings bank or savings and loan association whose deposits are insured
       by the Savings Association Insurance Fund ("SAIF"), which is administered
       by the FDIC; or

       any other "eligible guarantor institution," as defined in the Securities
       Exchange Act of 1934.

The Trust does not accept signatures guaranteed by a notary public.

The Trust and its transfer agent have adopted standards for accepting signature
guarantees from the above institutions. The Trust may elect in the future to
limit eligible signature guarantors to institutions that are members of a
signature guarantee program. The Trust and its transfer agent reserve the right
to amend these standards at any time without notice.

RECEIVING PAYMENT.  Normally, a check for the proceeds is mailed within one
business day, but in no event more than seven days, after receipt of a proper
written redemption request.

REDEMPTION BEFORE PURCHASE INSTRUMENTS CLEAR

   
When shares are purchased by check, the proceeds from the redemption of those
shares are not available, and the shares may not be exchanged, until the Trust
or its agents are reasonably certain that the purchase check has cleared, which
could take up to ten calendar days.
    

ACCOUNTS WITH LOW BALANCES

Due to the high cost of maintaining accounts with low balances, the Trust may
redeem shares in any account and pay the proceeds to the shareholder if the
account balance falls below a required minimum value of $25,000 due to
shareholder redemptions.

Before Shares are redeemed to close an account, the shareholder is notified in
writing and allowed 30 days to purchase additional shares to meet the minimum
requirement.

REDEMPTION IN KIND

The Trust is obligated to redeem shares solely in cash up to $250,000 or 1% of
the Trust's net asset value, whichever is less, for any one shareholder within a
90-day period.

Any redemption beyond this amount will also be in cash unless the Trustees
determine that further cash payments will have a material adverse effect on
remaining shareholders. In such a case, the Trust will pay all or a portion of
the remainder of the redemption in portfolio instruments, valued in the same way
as the Trust determines net asset value. The portfolio instruments will be
selected in a manner that the Trustees deem fair and equitable.

Redemption in kind is not as liquid as a cash redemption. If redemption is made
in kind, shareholders receiving their securities and selling them before their
maturity could receive less than the redemption value of their securities and
could incur certain transaction costs.

SHAREHOLDER INFORMATION
- --------------------------------------------------------------------------------

VOTING RIGHTS

Each share of the Trust gives the shareholder one vote in Trustee elections and
other matters submitted to shareholders for vote. As a Massachusetts business
trust, the Trust is not required to hold annual shareholder meetings.
Shareholder approval will be sought only for certain changes in the Trust's
operation and for the election of Trustees under certain circumstances. Trustees
may be removed by the Trustees or by shareholders at a special meeting. A
special meeting of the Trust shall be called by the Trustees upon the written
request of shareholders owning at least 10% of the Trust's outstanding shares.

MASSACHUSETTS PARTNERSHIP LAW

Under certain circumstances, shareholders may be held personally liable as
partners under Massachusetts law for obligations of the Trust. To protect its
shareholders, the Trust has filed legal documents with Massachusetts that
expressly disclaim the liability of its shareholders for acts or obligations of
the Trust. These documents require notice of this disclaimer to be given in each
agreement, obligation, or instrument the Trust or its Trustees enter into or
sign.

   
In the unlikely event a shareholder is held personally liable for the Trust's
obligations, the Trust is required to use its property to protect or compensate
the shareholder. On request, the Trust will defend any claim made and pay any
judgment against a shareholder for any act or obligation of the Trust.
Therefore, financial loss resulting from liability as a shareholder will occur
only if the Trust cannot meet its obligations to indemnify shareholders and
pay judgments against them.
    

TAX INFORMATION
- --------------------------------------------------------------------------------

FEDERAL INCOME TAX

The Trust will pay no federal income tax because it expects to meet requirements
of the Internal Revenue Code applicable to regulated investment companies and to
receive the special tax treatment afforded to such companies.

Unless otherwise exempt, shareholders are required to pay federal income tax on
any dividends and other distributions received. This applies whether dividends
are received in cash or as additional shares.

STATE AND LOCAL TAXES

The Trust intends to limit its investments to U.S. government securities paying
interest which, if owned directly by shareholders of the Trust, would be exempt
from state and personal income tax. However, under the laws of some states, the
net investment income distributed by the Trust may be taxable to shareholders.
State laws differ on this issue, and shareholders are urged to consult their own
tax advisers regarding the status of their accounts under state and local tax
laws.

PENNSYLVANIA CORPORATE AND PERSONAL PROPERTY TAXES.  In the opinion of Houston,
Houston & Donnelly, counsel to the Trust:

       the Trust is not subject to Pennsylvania corporate or personal property
       taxes; and

       Trust shares may be subject to personal property taxes imposed by
       counties, municipalities, and school districts in Pennsylvania to the
       extent that the portfolio securities in the Trust would be subject to
       such taxes if owned directly by residents of those jurisdictions.

PERFORMANCE INFORMATION
- --------------------------------------------------------------------------------

From time to time the Trust advertises its yield and effective yield.

The yield of the Trust represents the annualized rate of income earned on an
investment in the Trust over a seven-day period. It is the annualized dividends
earned during the period on the investment, shown as a percentage of the
investment. The effective yield is calculated similarly to the yield, but, when
annualized, the income earned by an investment in the Trust is assumed to be
reinvested daily. The effective yield will be slightly higher than the yield
because of the compounding effect of this assumed reinvestment.

Advertisements and other sales literature may also refer to total return. Total
return represents the change, over a specified period of time, in the value of
an investment in the Trust after reinvesting all income distributions. It is
calculated by dividing that change by the initial investment and is expressed as
a percentage.

   
From time to time, the Trust may advertise its performance using certain
financial publications and/or compare its performance to certain indices.
    

   
TRUST FOR SHORT-TERM U.S. GOVERNMENT SECURITIES
PORTFOLIO OF INVESTMENTS
NOVEMBER 30, 1993
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>

   PRINCIPAL
    AMOUNT                                                                                          VALUE
<C>              <S>                                                                          <C>
- ---------------  ---------------------------------------------------------------------------  -----------------
SHORT-TERM GOVERNMENT OBLIGATIONS--35.3%
- --------------------------------------------------------------------------------------------
                 FEDERAL FARM CREDIT BANK NOTES--0.8%
                 ---------------------------------------------------------------------------
$    14,000,000  3.32%. 5/2/94                                                                $      14,002,460
                 ---------------------------------------------------------------------------  -----------------
               ** FEDERAL FARM CREDIT BANK, DISCOUNT NOTES--1.8%
                 ---------------------------------------------------------------------------
     32,000,000  3.22%-3.27%, 2/3/94-8/1/94                                                          31,707,003
                 ---------------------------------------------------------------------------  -----------------
                 FEDERAL HOME LOAN BANK NOTES--2.9%
                 ---------------------------------------------------------------------------
     48,705,000  8.625%-12.00%, 2/25/94-6/27/94                                                      49,907,141
                 ---------------------------------------------------------------------------  -----------------
               ** FEDERAL HOME LOAN BANK, DISCOUNT NOTES--4.3%
                 ---------------------------------------------------------------------------
     74,105,000  3.14%-3.18%, 1/4/94-1/25/94                                                         73,854,335
                 ---------------------------------------------------------------------------  -----------------
               * STUDENT LOAN MARKETING ASSOCIATION,
                 FLOATING RATE NOTES--25.5%
                 ---------------------------------------------------------------------------
    442,000,000  3.48%-3.79%, 12/7/93-5/19/94                                                       441,939,408
                 ---------------------------------------------------------------------------  -----------------
                 TOTAL SHORT-TERM GOVERNMENT OBLIGATIONS                                            611,410,347
                 ---------------------------------------------------------------------------  -----------------
SHORT-TERM U.S. TREASURY OBLIGATIONS--10.8%
- --------------------------------------------------------------------------------------------
                 U.S. TREASURY BILLS--4.6%
                 ---------------------------------------------------------------------------
     80,000,000  3.285%-3.51%, 12/16/93-9/22/94                                                      79,259,656
                 ---------------------------------------------------------------------------  -----------------
                 U.S. TREASURY NOTES--6.2%
                 ---------------------------------------------------------------------------
    107,000,000  4.25%-6.875%, 2/15/94-7/31/94                                                      107,638,475
                 ---------------------------------------------------------------------------  -----------------
                 TOTAL SHORT-TERM U.S. TREASURY OBLIGATIONS                                         186,898,131
                 ---------------------------------------------------------------------------  -----------------
                 TOTAL SHORT-TERM OBLIGATIONS                                                       798,308,478
                 ---------------------------------------------------------------------------  -----------------
REPURCHASE AGREEMENTS***--53.8%
- --------------------------------------------------------------------------------------------
     30,000,000  und A.G. Lanston & Co., Inc., 3.25%, dated 11/30/93, due 12/1/93                    30,000,000
                 ---------------------------------------------------------------------------
     50,000,000  und BT Securities Corp., 3.20%, dated 11/30/93, due 12/1/93                         50,000,000
                 ---------------------------------------------------------------------------
    100,000,000  und Eastbridge Capital, Inc., 3.25%, dated 11/30/93, due 12/1/93                   100,000,000
                 ---------------------------------------------------------------------------
     26,300,000  und Goldman Sachs & Co., 3.05% dated 11/30/93, due 12/1/93                          26,300,000
                 ---------------------------------------------------------------------------
</TABLE>

TRUST FOR SHORT-TERM U.S. GOVERNMENT OBLIGATIONS
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
   PRINCIPAL
    AMOUNT                                                                                          VALUE
<C>              <S>                                                                          <C>
- ---------------  ---------------------------------------------------------------------------  -----------------
REPURCHASE AGREEMENTS***--CONTINUED
- --------------------------------------------------------------------------------------------
$    38,390,000  und J.P. Morgan Securities, Inc., 3.24%,
                 dated 11/30/93, due 12/1/93                                                  $      38,390,000
                 ---------------------------------------------------------------------------
     60,000,000  und Nikko Securities Co., 3.25%, dated 11/30/93, due 12/1/93                        60,000,000
                 ---------------------------------------------------------------------------
    360,000,000  und PaineWebber, Inc., 3.25%, dated 11/30/93, due 12/1/93                          360,000,000
                 ---------------------------------------------------------------------------
     25,465,000  und S.G. Warburg & Co., Inc., 3.10%, dated 11/30/93, due 12/1/93                    25,465,000
                 ---------------------------------------------------------------------------
     50,000,000  und S.G. Warburg & Co., Inc., 3.20%, dated 11/30/93, due 12/1/93                    50,000,000
                 ---------------------------------------------------------------------------
    100,000,000  und Salomon Brothers, Inc., 3.25%, dated 11/30/93, due 12/1/93                     100,000,000
                 ---------------------------------------------------------------------------
     25,000,000@ Goldman Sachs & Co., 3.10%, dated 11/30/93, due 12/20/93                            25,000,000
                 ---------------------------------------------------------------------------
     30,000,000@ Kidder, Peabody & Co., Inc., 3.20%,
                 dated 10/25/93, due 1/24/94                                                         30,000,000
                 ---------------------------------------------------------------------------
     36,000,000@ Morgan Stanley & Co., Inc., 3.25%, dated 10/05/93, due 1/4/94                       36,000,000
                 ---------------------------------------------------------------------------  -----------------
                 TOTAL REPURCHASE AGREEMENTS (NOTE 1B)                                              931,155,000
                 ---------------------------------------------------------------------------  -----------------
                 TOTAL INVESTMENTS, AT AMORTIZED COST                                         $   1,729,463,478\
                 ---------------------------------------------------------------------------  -----------------
</TABLE>

  * Denotes variable rate obligations for which current rates and next reset
    dates are shown.

 ** Each issue shows the rate of discount at the time of purchase.

*** Repurchase agreements are fully collateralized by U.S. government and/or
    agency obligations based on market prices at the date of the portfolio.

  # The investment in the repurchase agreement was through participation in a
       joint account with other Federated funds.

   @ Although the final maturity falls beyond seven days, a liquidity feature is
     included in each transaction to permit termination of the repurchase
     agreement within seven days.

   \ Also represents cost for federal tax purposes.

Note: The categories of investments are shown as a percentage of net assets
      ($1,730,401,697) at November 30, 1993.

(See Notes which are an integral part of the Financial Statements)
    
   
TRUST FOR SHORT-TERM U.S. GOVERNMENT SECURITIES
STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 1993
- --------------------------------------------------------------------------------
    

<TABLE>
<S>                                                                            <C>              <C>
ASSETS:
- ----------------------------------------------------------------------------------------------
Investments in repurchase agreements (Note 1B)                                 $   931,155,000
- -----------------------------------------------------------------------------
Investments in other marketable securities                                         798,308,478
- -----------------------------------------------------------------------------  ---------------
     Total investments, at amortized cost and value (Note 1A)                                   $   1,729,463,478
- ----------------------------------------------------------------------------------------------
Cash                                                                                                      589,522
- ----------------------------------------------------------------------------------------------
Interest receivable                                                                                     4,233,345
- ----------------------------------------------------------------------------------------------
Receivable for Trust shares sold                                                                            4,726
- ----------------------------------------------------------------------------------------------  -----------------
     Total assets                                                                                   1,734,291,071
- ----------------------------------------------------------------------------------------------
LIABILITIES:
- ----------------------------------------------------------------------------------------------
Dividends payable                                                                    3,699,417
- -----------------------------------------------------------------------------
Payable for Trust shares redeemed                                                       22,282
- -----------------------------------------------------------------------------
Accrued expenses and other liabilities                                                 167,675
- -----------------------------------------------------------------------------  ---------------
     Total liabilities                                                                                  3,889,374
- ----------------------------------------------------------------------------------------------  -----------------
NET ASSETS for 1,730,401,697 shares of beneficial interest outstanding                          $   1,730,401,697
- ----------------------------------------------------------------------------------------------  -----------------
NET ASSET VALUE, Offering Price, and Redemption Price Per Share
($1,730,401,697 / 1,730,401,697 SHARES OF BENEFICIAL INTEREST OUTSTANDING)                                  $1.00
- ----------------------------------------------------------------------------------------------  -----------------
(SEE NOTES WHICH ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS)
</TABLE>
   
TRUST FOR SHORT-TERM U.S. GOVERNMENT SECURITIES
STATEMENT OF OPERATIONS
YEAR ENDED NOVEMBER 30, 1993
- --------------------------------------------------------------------------------

<TABLE>
<S>                                                                                <C>             <C>
INVESTMENT INCOME:
- -------------------------------------------------------------------------------------------------
Interest income (Note 1C)                                                                          $   71,348,751
- -------------------------------------------------------------------------------------------------
EXPENSES:
- -------------------------------------------------------------------------------------------------
Investment advisory fee (Note 4)                                                   $    8,689,582
- ---------------------------------------------------------------------------------
Trustees' fees                                                                             25,794
- ---------------------------------------------------------------------------------
Administrative personnel and services (Note 4)                                            918,792
- ---------------------------------------------------------------------------------
Custodian, transfer and dividend disbursing agent fees and expenses                       422,968
- ---------------------------------------------------------------------------------
Auditing fees                                                                              21,777
- ---------------------------------------------------------------------------------
Legal fees                                                                                145,990
- ---------------------------------------------------------------------------------
Printing and postage                                                                       10,336
- ---------------------------------------------------------------------------------
Taxes                                                                                      31,087
- ---------------------------------------------------------------------------------
Registration fee                                                                           37,616
- ---------------------------------------------------------------------------------
Miscellaneous                                                                              64,054
- ---------------------------------------------------------------------------------  --------------
     Total expenses                                                                    10,367,996
- ---------------------------------------------------------------------------------
Deduct--Waiver of investment advisory fee (Note 4)                                        523,530
- ---------------------------------------------------------------------------------  --------------
     Net expenses                                                                                       9,844,466
- -------------------------------------------------------------------------------------------------  --------------
NET INVESTMENT INCOME                                                                              $   61,504,285
- -------------------------------------------------------------------------------------------------  --------------
(See Notes which are an integral part of the Financial Statements)
</TABLE>
    
   
TRUST FOR SHORT-TERM U.S. GOVERNMENT SECURITIES
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
                                                                                 YEAR ENDED NOVEMBER 30,
<S>                                                                     <C>                   <C>
                                                                                1993                  1992
INCREASE (DECREASE) IN NET ASSETS:
- ----------------------------------------------------------------------
OPERATIONS--
- ----------------------------------------------------------------------
Net investment income                                                   $         61,504,285  $         96,408,190
- ----------------------------------------------------------------------  --------------------  --------------------
DISTRIBUTIONS TO SHAREHOLDERS (NOTE 2)--
- ----------------------------------------------------------------------
Dividends to shareholders from net investment income                             (61,504,285)          (96,408,190)
- ----------------------------------------------------------------------  --------------------  --------------------
TRUST SHARE (PRINCIPAL) TRANSACTIONS (NOTE 3)--
- ----------------------------------------------------------------------
Proceeds from sale of shares                                                   9,948,537,734        10,993,976,907
- ----------------------------------------------------------------------
Net asset value of shares issued to shareholders
in payment of dividends declared                                                   5,956,915             7,450,491
- ----------------------------------------------------------------------
Cost of shares redeemed                                                      (10,582,840,994)      (11,444,787,502)
- ----------------------------------------------------------------------  --------------------  --------------------
     Change in net assets from Trust share transactions                         (628,346,345)         (443,360,104)
- ----------------------------------------------------------------------  --------------------  --------------------
          Change in net assets                                                  (628,346,345)         (443,360,104)
- ----------------------------------------------------------------------
NET ASSETS:
- ----------------------------------------------------------------------
Beginning of period                                                            2,358,748,042         2,802,108,146
- ----------------------------------------------------------------------  --------------------  --------------------
End of period                                                           $      1,730,401,697  $      2,358,748,042
- ----------------------------------------------------------------------  --------------------  --------------------
(See Notes which are an integral part of the Financial Statements)
</TABLE>
    
   
TRUST FOR SHORT-TERM U.S. GOVERNMENT SECURITIES
NOTES TO FINANCIAL STATEMENTS
NOVEMBER 30, 1993
- --------------------------------------------------------------------------------

(1) SIGNIFICANT ACCOUNTING POLICIES

The Trust is registered under the Investment Company Act of 1940, as amended, as
a diversified, open-end management investment company. The following is a
summary of significant accounting policies consistently followed by the Trust in
the preparation of its financial statements. The policies are in conformity with
generally accepted accounting principles.

A.   VALUATION OF INVESTMENTS--The Board of Trustees ("Trustees") has determined
     that the best method currently available for valuing portfolio securities
     is amortized cost. The Trust's use of the amortized cost method to value
     its portfolio securities is conditioned on its compliance with Rule 2a-7 of
     the Investment Company Act of 1940.

B.   REPURCHASE AGREEMENTS--It is the policy of the Trust to require the
     custodian bank to take possession, to have legally segregated in the
     Federal Reserve Book Entry System or to have segregated within the
     custodian bank's vault, all securities held as collateral in support of
     repurchase agreement investments. Additionally, procedures have been
     established by the Trust to monitor on a daily basis the market value of
     each repurchase agreement's underlying securities to ensure the existence
     of a proper level of collateral.

     The Trust will only enter into repurchase agreements with banks and other
     recognized financial institutions such as broker/dealers which are deemed
     by the Trust's adviser to be creditworthy. Risks may arise from the
     potential inability of counterparties to honor the terms of the repurchase
     agreement. Accordingly, the Trust could receive less than the repurchase
     price on the sale of collateral securities.

C.   INCOME--Interest income is recorded on the accrual basis. Interest income
     includes interest and discount earned (net of premium), including original
     issue discount as required by the Internal Revenue Code, as amended, plus
     realized gains, if any, on portfolio securities.

D.   FEDERAL TAXES--It is the Trust's policy to comply with the provisions of
     the Internal Revenue Code, as amended, applicable to investment companies
     and to distribute to shareholders each year all of its taxable income.
     Accordingly, no provision for federal tax is necessary.

E.   WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS--The Trust may engage in
     when-issued or delayed delivery transactions. To the extent the Trust
     engages in such transactions, it will do so for the purpose of acquiring
     portfolio securities consistent with its investment objective and policies
     and not for the purpose of investment leverage. The Trust will record a
     when-issued security and the related liability on the trade date. Until the
     securities are received and paid for, the Trust will maintain security
     positions such that sufficient liquid assets will be available to make
     payment for the securities purchased. Securities purchased on a when-issued
     or delayed delivery basis are marked to market daily and begin earning
     interest on the settlement date.

F.   OTHER--Investment transactions are accounted for on the date of the
     transaction.

TRUST FOR SHORT-TERM U.S. GOVERNMENT SECURITIES
- --------------------------------------------------------------------------------

(2) DIVIDENDS

The Trust computes its net income daily and, immediately prior to the
calculation of its net asset value at the close of business, declares and
records dividends to shareholders of record at the time of the previous
computation of the Trust's net asset value. Payment of dividends is made monthly
in cash or in additional shares at the net asset value on the payable date.

(3) SHARES OF BENEFICIAL INTEREST


The Declaration of Trust permits the Trustees to issue an unlimited number of
full and fractional shares of beneficial interest (without par value). At
November 30, 1993, capital paid-in aggregated $1,730,401,697. Transactions in
Trust shares were as follows:

<TABLE>
<CAPTION>
                                                                                  YEAR ENDED NOVEMBER 30,
<S>                                                                        <C>                 <C>
                                                                           --------------------------------------
<CAPTION>
                                                                                  1993                1992
<S>                                                                        <C>                 <C>
- -------------------------------------------------------------------------  ------------------  ------------------
Shares outstanding, beginning of period                                         2,358,748,042       2,802,108,146
- -------------------------------------------------------------------------
Shares sold                                                                     9,948,537,734      10,993,976,907
- -------------------------------------------------------------------------
Shares issued to shareholders in
payment of dividends declared                                                       5,956,915           7,450,491
- -------------------------------------------------------------------------
Shares redeemed                                                               (10,582,840,994)    (11,444,787,502)
- -------------------------------------------------------------------------  ------------------  ------------------
Shares outstanding, end of period                                               1,730,401,697       2,358,748,042
- -------------------------------------------------------------------------  ------------------  ------------------
</TABLE>

(4) INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES


    
   
Federated Research, the Trust's investment adviser ("Adviser"), receives for its
services an annual investment advisory fee equal to .40 of 1% of the Trust's
average daily net assets. Under the investment advisory contract, the Adviser
has undertaken to reimburse the amount, limited to the amount of the advisory
fee, by which the Trust's aggregate annual operating expenses, including its
investment advisory fee, but excluding interest, taxes, brokerage commissions,
expenses of registering and qualifying the Trust and its shares under federal
and state laws, expenses of withholding taxes, and extraordinary expenses exceed
.45 of 1% of its average daily net assets. For the year ended November 30, 1993,
the Adviser received an advisory fee of $8,689,582 of which $523,530 was waived
in accordance with the above undertaking. Administrative personnel and services
were provided at approximate cost by Federated Administrative Services, Inc.
Certain of the Officers and Trustees of the Trust are Officers and Directors of
the above corporations.

TRUST FOR SHORT-TERM U.S. GOVERNMENT SECURITIES
- --------------------------------------------------------------------------------

(5) FORWARD TRADE COMMITMENTS

At November 30, 1993, the Trust was under agreement to enter into the following
repurchase agreements:

       $14,000,000 Nikko Securities Co., 5.40%, dated 12/31/93, due 1/3/94
       $29,000,000 First Boston Corp., 3.20%, dated 1/3/94, due 1/31/94

These repurchase agreements were made in the normal course of business and are
subject to the Trust's general investment restrictions regarding
creditworthiness and collateralization levels. The contracts were executed on
December 31, 1993, and January 3, 1994, respectively.

INDEPENDENT AUDITORS' REPORT
- --------------------------------------------------------------------------------

To the Board of Trustees and Shareholders of
TRUST FOR SHORT-TERM U.S. GOVERNMENT SECURITIES:

We have audited the accompanying statement of assets and liabilities, including
the portfolio of investments, of Trust for Short-Term U.S. Government Securities
as of November 30, 1993, the related statement of operations for the year then
ended, the statement of changes in net assets for the years ended November 30,
1993 and 1992, and the financial highlights (see page 2 of the prospectus) for
each of the years in the ten-year period ended November 30, 1993. These
financial statements and financial highlights are the responsibility of the
Trust's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.

We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of the securities owned at
November 30, 1993 by correspondence with the custodian. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.

In our opinion, such financial statements and financial highlights present
fairly, in all material respects, the financial position of Trust for Short-Term
U.S. Government Securities as of November 30, 1993, the results of its
operations, the changes in its net assets, and its financial highlights for the
respective stated periods in conformity with generally accepted accounting
principles.

DELOITTE & TOUCHE

Boston, Massachusetts
January 14, 1994

ADDRESSES
- --------------------------------------------------------------------------------

<TABLE>
<S>                 <C>                                                    <C>
                    Trust for Short-Term U.S.                              Federated Investors Tower
                    Government Securities                                  Pittsburgh, Pennsylvania 15222-3779
- ---------------------------------------------------------------------------------------------------------------------

Distributor
                    Federated Securities Corp.                             Federated Investors Tower
                                                                           Pittsburgh, Pennsylvania 15222-3779
- ---------------------------------------------------------------------------------------------------------------------

Investment Adviser
                    Federated Research                                     Federated Investors Tower
                                                                           Pittsburgh, Pennsylvania 15222-3779
- ---------------------------------------------------------------------------------------------------------------------

    
   
Custodian
                    State Street Bank and                                  P.O. Box 8602
                    Trust Company                                          Boston, Massachusetts 02266-8602
    
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Transfer Agent and Dividend Disbursing Agent
                    Federated Services Company                             Federated Investors Tower
                                                                           Pittsburgh, Pennsylvania 15222-3779
    
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Legal Counsel
                    Houston, Houston & Donnelly                            2510 Centre City Tower
                                                                           Pittsburgh, Pennsylvania 15222
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Legal Counsel
                    Dickstein, Shapiro & Morin                             2101 L Street, N.W.
                                                                           Washington, D.C. 20037
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Independent Auditors
                    Deloitte & Touche                                      125 Summer Street
                                                                           Boston, Massachusetts 02110-1617
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</TABLE>



TRUST FOR SHORT-TERM
U.S. GOVERNMENT SECURITIES
PROSPECTUS
A No-Load, Open-End, Diversified
Management Investment Company

   
January 31, 1994
    
   
8010415A (1/94)
    
                TRUST FOR SHORT-TERM U.S. GOVERNMENT SECURITIES
                      STATEMENT OF ADDITIONAL INFORMATION

   
     This Statement of Additional Information should be read with the
     prospectus of Trust for Short-Term U.S. Government Securities (the
     "Trust") dated January 31, 1994. This Statement is not a prospectus
     itself. To receive a copy of the prospectus, write or call the Trust.
    

     FEDERATED INVESTORS TOWER
     PITTSBURGH, PENNSYLVANIA 15222-3779

   
                        Statement dated January 31, 1994
    

         FEDERATED SECURITIES CORP.
             ---------------------------------------------------------
             Distributor
             A subsidiary of FEDERATED INVESTORS

TABLE OF CONTENTS
- --------------------------------------------------------------------------------

GENERAL INFORMATION ABOUT THE TRUST                                            1
- ---------------------------------------------------------------

INVESTMENT OBJECTIVE AND POLICIES                                              1
- ---------------------------------------------------------------

  Types of Investments                                                         1
  When-Issued and Delayed
     Delivery Transactions                                                     1
  Investment Limitations                                                       1

TRUST MANAGEMENT                                                               2
- ---------------------------------------------------------------

  Officers and Trustees                                                        2
  The Funds                                                                    4
  Trust Ownership                                                              5
  Trustee Liability                                                            5

INVESTMENT ADVISORY SERVICES                                                   5
- ---------------------------------------------------------------

  Adviser to the Trust                                                         5
  Advisory Fees                                                                5
  Other Advisory Services                                                      5

ADMINISTRATIVE SERVICES                                                        6
- ---------------------------------------------------------------

BROKERAGE TRANSACTIONS                                                         6
- ---------------------------------------------------------------

PURCHASING SHARES                                                              6
- ---------------------------------------------------------------

  Conversion to Federal Funds                                                  6

DETERMINING NET ASSET VALUE                                                    6
- ---------------------------------------------------------------

  Use of the Amortized Cost Method                                             6

REDEEMING SHARES                                                               7
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  Redemption in Kind                                                           7

TAX STATUS                                                                     8
- ---------------------------------------------------------------

  The Trust's Tax Status                                                       8
  Shareholders' Tax Status                                                     8

YIELD                                                                          8
- ---------------------------------------------------------------

EFFECTIVE YIELD                                                                8
- ---------------------------------------------------------------

PERFORMANCE COMPARISONS                                                        8
- ---------------------------------------------------------------

GENERAL INFORMATION ABOUT THE TRUST
- --------------------------------------------------------------------------------

   
Trust for Short-Term U.S. Government Securities (the "Trust") was established as
a Massachusetts business trust under a Declaration of Trust dated October 30,
1975.
    

INVESTMENT OBJECTIVE AND POLICIES
- --------------------------------------------------------------------------------

The Trust's investment objective is to provide high current income consistent
with stability of principal and
liquidity.

TYPES OF INVESTMENTS

The Trust invests only in short-term U.S. government securities. This investment
policy and the objective stated above cannot be changed without approval of
shareholders.

     VARIABLE RATE U.S. GOVERNMENT SECURITIES

       Some of the short-term U.S. government securities the Trust may purchase
       carry variable interest rates. These securities have a rate of interest
       subject to adjustment at least annually. This adjusted interest rate is
       ordinarily tied to some objective standard, such as the 91-day U.S.
       Treasury bill rate.

       Variable interest rates will reduce the changes in the market value of
       such securities from their original purchase prices. Accordingly, the
       potential for capital appreciation or capital depreciation should not be
       greater than the potential for capital appreciation or capital
       depreciation of fixed interest rate U.S. government securities having
       maturities equal to the interest rate adjustment dates of the variable
       rate U.S. government securities.

   
       The Trust may purchase variable rate U.S. government securities upon the
       determination by the Board of Trustees ("Trustees") that the interest
       rate as adjusted will cause the instrument to have a current market value
       that approximates its par value on the adjustment date.
    

     U.S. GOVERNMENT OBLIGATIONS

       The types of U.S. government obligations in which the Trust may invest
       generally include direct obligations of the U.S. Treasury (such as U.S.
       Treasury bills, notes, and bonds) and obligations issued or guaranteed by
       U.S. government agencies or instrumentalities. The securities are backed
       by:

        the full faith and credit of the U.S. Treasury;

        the issuer's right to borrow from the U.S. Treasury;

        the discretionary authority of the U.S. government to purchase certain
        obligations of agencies or instrumentalities; or

        the credit of the agency or instrumentality issuing the obligations.

       Examples of agencies and instrumentalities which may not always receive
       financial support from the U.S. government are:

        Federal Farm Credit Banks;

        Federal Home Loan Banks;

        Federal National Mortgage Association;

        Student Loan Marketing Association; and

        Federal Home Loan Mortgage Corporation.

WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS

These transactions are made to secure what is considered to be an advantageous
price and yield for the Trust. Settlement dates may be a month or more after
entering into these transactions, and the market values of the securities
purchased may vary from the purchase prices.

No fees or other expenses, other than normal transaction costs, are incurred.
However, liquid assets of the Trust sufficient to make payment for the
securities to be purchased are segregated on the Trust's records at the trade
date. These securities are marked to market daily and maintained until the
transaction is settled.

INVESTMENT LIMITATIONS

The Trust will not change any of the investment limitations described below
without approval of shareholders.

     SELLING SHORT AND BUYING ON MARGIN

       The Trust will not sell any securities short or purchase any securities
       on margin but may obtain such short-term credits as may be necessary for
       clearance of purchases and sales of securities.

- --------------------------------------------------------------------------------

     BORROWING MONEY

       The Trust will not borrow money except as a temporary measure for
       extraordinary or emergency purposes and then only in amounts not in
       excess of 5% of the value of its total assets or in an amount up to one-
       third of the value of its total assets, including the amount borrowed, in
       order to meet redemption requests without immediately selling portfolio
       instruments. The Fund will not purchase any securities while borrowings
       in excess of 5% of its total assets are outstanding. Any such borrowings
       would not be collateralized.

     PLEDGING SECURITIES

       The Trust will not pledge securities.

     MAKING LOANS

       The Trust will not make loans, except that it may purchase or hold U.S.
       government securities, including repurchase agreements, permitted by its
       investment objective and policies.

     ACQUIRING SECURITIES

       The Trust will not acquire the voting securities of any issuer, except as
       a part of a merger, consolidation, reorganization, or acquisition of
       assets.

     ISSUING SENIOR SECURITIES

       The Trust will not issue senior securities.

Except with respect to borrowing money, if a percentage limitation is adhered to
at the time of investment, a later increase or decrease in percentage resulting
from any change in value or net assets will not result in a violation of such
restriction.

The Trust did not borrow money in excess of 5% of the value of its net assets
during the last fiscal year and has no present intent to do so in the coming
fiscal year.

TRUST MANAGEMENT
- --------------------------------------------------------------------------------

OFFICERS AND TRUSTEES

Officers and Trustees are listed with their addresses, principal occupations,
and present positions, including any affiliation with Federated Research,
Federated Investors, Federated Securities Corp., Federated Administrative
Services, Inc., and the Funds (as defined below).

<TABLE>
<S>                                <C>                   <C>
                                   POSITION WITH         PRINCIPAL OCCUPATION
NAME AND ADDRESS                   THE TRUST             DURING PAST FIVE YEARS
John F. Donahue*\                  Chairman and          Chairman and Trustee, Federated Investors; Chairman and Trustee,
Federated Investors Tower          Trustee               Federated Advisers, Federated Management, and Federated Research;
Pittsburgh, PA                                           Director, AEtna Life and Casualty Company; Chief Executive Officer and
                                                         Director, Trustee, or Managing General Partner of the Funds; formerly,
                                                         Director, The Standard Fire Insurance Company. Mr. Donahue is the father
                                                         of J. Christopher Donahue, Vice President of the Trust.

   
John T. Conroy, Jr.                Trustee               Senior Vice-President, John R. Wood and Associates, Inc., Realtors;
Wood/IPC Commercial                                      President, Northgate Village Development Corporation; General Partner or
Department                                               Trustee in private real estate ventures in Southwest Florida; Director,
John R. Wood and                                         Trustee, or Managing General Partner of the Funds; formerly, President,
Associates, Inc., Realtors                               Naples Property Management, Inc.
3255 Tamiami Trail North
Naples, FL

William J. Copeland                Trustee               Director and Member of the Executive Committee, Michael Baker, Inc.;
One PNC Plaza-23rd Floor                                 Director, Trustee, or Managing General Partner of the Funds; formerly,
Pittsburgh, PA                                           Vice Chairman and Director, PNC Bank, N.A., and PNC Bank Corp and

                                                             Director, Ryan Homes, Inc.
- --------------------------------------------------------------------------------


</TABLE>
<TABLE>
<S>                                <C>                   <C>
                                   POSITION WITH         PRINCIPAL OCCUPATION
NAME AND ADDRESS                   THE TRUST             DURING PAST FIVE YEARS

<S>                                <C>                   <C>
James E. Dowd                      Trustee               Attorney-at-law; Director, The Emerging Germany Fund, Inc.; Director,
571 Hayward Mill Road                                    Trustee, or Managing General Partner of the Funds; formerly, Director,
Concord, MA                                              Blue Cross of Massachusetts, Inc.

Lawrence D. Ellis, M.D.            Trustee               Hematologist, Oncologist, and Internist, Presbyterian and Montefiore
3471 Fifth Avenue                                        Hospitals; Clinical Professor of Medicine and Trustee, University of
Suite 1111                                               Pittsburgh; Director, Trustee, or Managing General Partner of the Funds.
Pittsburgh, PA

Edward L. Flaherty, Jr.\           Trustee               Attorney-at-law; Partner, Meyer and Flaherty; Director, Eat'N Park
5916 Penn Mall                                           Restaurants, Inc., and Statewide Settlement Agency, Inc.; Director,
Pittsburgh, PA                                           Trustee, or Managing General Partner of the Funds; formerly Counsel,
                                                         Horizon Financial, F.A., Western Region.
Peter E. Madden                    Trustee               Consultant; State Representative, Commonwealth of Massachusetts;
225 Franklin Street                                      Trustee, Lahey Clinic Foundation, Inc.; Director, Trustee, or Managing
Boston, MA                                               General Partner of the Funds; formerly, President, State Street Bank and
                                                         Trust Company and State Street Boston Corporation.
Gregor F. Meyer                    Trustee               Attorney-at-law; Partner, Meyer and Flaherty; Chairman, Meritcare, Inc.;
5916 Penn Mall                                           Director, Eat'N Park Restaurants; Director, Trustee, or Managing General
Pittsburgh, PA                                           Partner of the Funds; formerly, Vice Chairman, Horizon Financial, F.A.

   
Wesley W. Posvar                   Trustee               Professor, Foreign Policy and Management Consultant; Trustee, Carnegie
1202 Cathedral of                                        Endowment for International Peace, RAND Corporation, Online Computer
Learning                                                 Library Center, Inc., and U.S. Space Foundation; Chairman, Czecho Slovak
University of Pittsburgh                                 Management Center; Director, Trustee, or Managing General Partner of the
Pittsburgh, PA                                           Funds; President Emeritus, University of Pittsburgh; formerly, Chairman,

                                                         National Advisory Council for Environmental Policy and Technology.
Marjorie P. Smuts                  Trustee               Public relations/marketing consultant; Director, Trustee, or Managing
4905 Bayard Street                                       General Partner of the Funds.
Pittsburgh, PA

Glen R. Johnson                    President             Trustee, Federated Investors; President and/or Trustee of some of the
Federated Investors Tower                                Funds; staff member, Federated Securities Corp. and Federated
Pittsburgh, PA                                           Administrative Services, Inc.

J. Christopher Donahue             Vice President        President and Trustee, Federated Investors; Trustee, Federated Advisers,
Federated Investors Tower                                Federated Management, and Federated Research; President and Director,
Pittsburgh, PA                                           Federated Administrative Services, Inc.; Trustee, Federated Services
                                                         Company; President or Vice President of the Funds; Director, Trustee, or
                                                         Managing General Partner of some of the Funds. Mr. Donahue is the son of
                                                         John F. Donahue, Chairman and Trustee of the Trust.

    
   
Richard B. Fisher                  Vice President        Executive Vice President and Trustee, Federated Investors; Chairman and
Federated Investors Tower                                Director, Federated Securities Corp.; President or Vice President of the
Pittsburgh, PA                                           Funds; Director or Trustee of some of the Funds.
</TABLE>

- --------------------------------------------------------------------------------

<TABLE>
<S>                                <C>                   <C>
                                   POSITION WITH         PRINCIPAL OCCUPATION
NAME AND ADDRESS                   THE TRUST             DURING PAST FIVE YEARS
</TABLE>
<TABLE>
<S>                                <C>                   <C>
Edward C. Gonzales                 Vice President        Vice President, Treasurer, and Trustee, Federated Investors; Vice
Federated Investors Tower          and Treasurer         President and Treasurer, Federated Advisers, Federated Management, and
Pittsburgh, PA                                           Federated Research; Executive Vice President, Treasurer, and Director,
                                                         Federated Securities Corp.; Trustee, Federated Services Company,
                                                         Chairman, Treasurer, and Director, Federated Administrative Services,
                                                         Inc.; Trustee or Director of some of the Funds; Vice President and
                                                         Treasurer of the Funds.
John W. McGonigle                  Vice President and    Vice President, Secretary, General Counsel, and Trustee, Federated
Federated Investors Tower          Secretary             Investors; Vice President, Secretary, and Trustee, Federated Advisers,
Pittsburgh, PA                                           Federated Management, and Federated Research; Trustee, Federated
                                                         Services Company; Executive Vice President, Secretary, and Director,
                                                         Federated Administrative Services, Inc.; Director and Executive Vice
                                                         President, Federated Securities Corp.; Vice President and Secretary of
                                                         the Funds.
    
John A. Staley, IV                 Vice President        Vice President and Trustee, Federated Investors; Executive Vice
Federated Investors Tower                                President, Federated Securities Corp.; President and Trustee, Federated
Pittsburgh, PA                                           Advisers, Federated Management, and Federated Research; Vice President
                                                         of the Funds; Director, Trustee, or Managing General Partner of the
                                                         Funds; formerly, Vice President, The Standard Fire Insurance Company and
                                                         President of its Federated Research Division.
</TABLE>

*This Trustee is deemed to be an "interested person" of the Trust as
 defined in the Investment Company Act of 1940, as amended.
\Members of the Trust's Executive Committee. The Executive Committee of the
 Board of Trustees handles the responsibilities of the Board of Trustees between
 meetings of the Board.

THE FUNDS

   
"The Funds" and "Funds" mean the following investment companies: A.T. Ohio
Tax-Free Money Fund; American Leaders Fund, Inc.; Annuity Management Series;
Automated Cash Management Trust; Automated Government Money Trust; BankSouth
Select Funds; The Boulevard Funds; California Municipal Cash Trust; Cash Trust
Series; Cash Trust Series II; Cash Trust Series, Inc.; DG Investor Series;
Edward D. Jones & Co. Daily Passport Cash Trust; FT Series, Inc.; Federated ARMs
Fund; Federated Exchange Fund, Ltd.; Federated GNMA Trust; Federated Government
Trust; Federated Growth Trust; Federated High Yield Trust; Federated Income
Securities Trust; Federated Income Trust; Federated Index Trust; Federated
Intermediate Government Trust; Federated Master Trust; Federated Municipal
Trust; Federated Short-Intermediate Government Trust; Federated Short-Term U.S.
Government Trust; Federated Stock Trust; Federated Tax-Free Trust; Federated
U.S. Government Bond Fund; First Priority Funds; Fixed Income Securities, Inc.;
Fortress Adjustable Rate U.S. Government Fund, Inc.; Fortress Municipal Income
Fund, Inc.; Fortress Utility Fund, Inc.; Fund for U.S. Government Securities,
Inc.; Government Income Securities, Inc.; High Yield Cash Trust; Insurance
Management Series; Intermediate Municipal Trust; Investment Series Funds, Inc.;
Investment Series Trust; Liberty Equity Income Fund, Inc.; Liberty High Income
Bond Fund, Inc.; Liberty Municipal Securities Fund, Inc.; Liberty Term Trust,
Inc.-1999; Liberty U.S. Government Money Market Trust; Liberty Utility Fund,
Inc.; Liquid Cash Trust; Mark Twain Funds; Money Market Management, Inc.; Money
Market Obligations Trust; Money Market Trust; Municipal Securities Income Trust;
New York Municipal Cash Trust; 111 Corcoran Funds; The Planters Funds; Portage
Funds; RIMCO Monument Funds; The Shawmut Funds; Short-Term Municipal Trust;
Signet Select Funds; Star Funds; The Starburst Funds; The Starburst Funds II;
Sunburst Funds; Targeted Duration Trust; Tax-Free Instruments Trust; Trademark
Funds; Trust for Financial Institutions; Trust for Government Cash Reserves;
Trust for Short-Term U.S. Government Securities; and Trust for U.S. Treasury
Obligations.
    

- --------------------------------------------------------------------------------

TRUST OWNERSHIP

   
As of January 7, 1994 the following shareholders of record owned 5% or more of
outstanding shares of the Trust: ACO Integra Trust Services, Pittsburgh,
Pennsylvania, owned approximately 122,441,702 Shares (7.68%) and Fleet
Securities Corporation, Rochester, NY, owned approximately 122,261,924 Shares
(7.66%).
    

TRUSTEE LIABILITY

The Trust's Declaration of Trust provides that the Trustees will not be liable
for errors of judgment or mistakes of fact or law. However, they are not
protected against any liability to which they would otherwise be subject by
reason of willful misfeasance, bad faith, gross negligence, or reckless
disregard of the duties involved in the conduct of their office.

INVESTMENT ADVISORY SERVICES
- --------------------------------------------------------------------------------

ADVISER TO THE TRUST

The Trust's investment adviser is Federated Research. It is a subsidiary of
Federated Investors. All of the voting securities of Federated Investors are
owned by a trust, the trustees of which are John F. Donahue, his wife, and his
son, J. Christopher Donahue. John F. Donahue, Chairman and Trustee of Federated
Research, is Chairman and Trustee of Federated Investors and Chairman and
Trustee of the Trust. John A. Staley, IV, President and Trustee of Federated
Research, is Vice President and Trustee of Federated Investors, Executive Vice
President of Federated Securities Corp., and Vice President of the Trust. J.
Christopher Donahue, Trustee of Federated Research, is President and Trustee of
Federated Investors, President and Director of Federated Administrative
Services, Inc., and Vice President of the Trust. John W. McGonigle, Vice
President, Secretary, and Trustee of Federated Research, is Trustee, Vice
President, Secretary, and General Counsel of Federated Investors, Director,
Executive Vice President, and Secretary of Federated Administrative Services,
Inc., Executive Vice President and Director of Federated Securities Corp., and
Vice President and Secretary of the Trust.

The adviser shall not be liable to the Trust or any shareholder for any losses
that may be sustained in the purchase, holding, or sale of any security or for
anything done or omitted by it, except acts or omissions involving willful
misfeasance, bad faith, gross negligence, or reckless disregard of the duties
imposed upon it by its contract with
the Trust.

ADVISORY FEES

   
For its advisory services, Federated Research receives an annual investment
advisory fee as described in the prospectus. During the fiscal years ended
November 30, 1993, 1992, and 1991, the Trust's adviser earned $8,689,582,
$10,472,154, and $12,990,317, respectively, which was reduced by $523,530,
$442,035, and $617,019, respectively, because of undertakings to limit the
Trust's expenses.
    

     STATE EXPENSE LIMITATIONS

       The adviser has undertaken to comply with the expense limitation
       established by certain states for investment companies whose shares are
       registered for sale in those states. If the Trust's normal operating
       expenses (including the investment advisory fee, but not including
       brokerage commissions, interest, taxes, and extraordinary expenses)
       exceed 2-1/2% per year of the first $30 million of average net assets, 2%
       per year of the next $70 million of average net assets, and 1-1/2% per
       year of the remaining average net assets, the adviser will reimburse the
       Trust for its expenses over the limitation.

       If the Trust's monthly projected operating expenses exceed this
       limitation, the investment advisory fee paid will be reduced by the
       amount of the excess, subject to an annual adjustment. If the expense
       limitation is exceeded, the amount to be reimbursed by the adviser will
       be limited, in any single fiscal year, by the amount of the investment
       advisory fee.

       This arrangement is not part of the advisory contract and may be amended
       or rescinded in the future.

OTHER ADVISORY SERVICES

Federated Research Corp. receives fees from certain depository institutions for
providing consulting and portfolio advisory services relating to each
institution's program of asset management. Federated Research Corp. may advise
such clients to purchase or redeem shares of investment companies which are
managed, for a fee, by Federated Research Corp. or other affiliates of Federated
Investors, such as the adviser, and may advise such clients to purchase and sell
securities in the direct markets.

                                                                               5
ADMINISTRATIVE SERVICES
- --------------------------------------------------------------------------------

   
Federated Administrative Services, Inc., a subsidiary of Federated Investors,
provides administrative personnel and services to the Trust at approximate cost.
For the fiscal years ended November 30, 1993, 1992, and 1991, the Trust incurred
costs for administrative services of $918,792, $852,928, and $1,136,013,
respectively. John A. Staley, IV, an officer of the Trust, and Dr. Henry J.
Gailliot, an officer of Federated Research, the adviser to the Trust, each hold
approximately 15% and 20%, respectively, of the outstanding common stock and
serve as Directors of Commercial Data Services, Inc., a company which provides
computer processing services to Federated Administrative Services, Inc. For the
fiscal years ended November 30, 1993, 1992, and 1991, Federated Administrative
Services, Inc. paid approximately $164,324, $186,144, and $193,178,
respectively, for services provided by Commercial Data Services, Inc.
    

BROKERAGE TRANSACTIONS
- --------------------------------------------------------------------------------

   
When selecting brokers and dealers to handle the purchase and sale of portfolio
instruments, the adviser looks for prompt execution of the order at a favorable
price. In working with dealers, the investment adviser will generally use those
who are recognized dealers in specific portfolio instruments, except when a
better price and execution of the order can be obtained elsewhere. The adviser
makes decisions on portfolio transactions and selects brokers and dealers
subject to review by the Board of Trustees.
    

The adviser may select brokers and dealers who offer brokerage and research
services. These services may be furnished directly to the Trust or to the
adviser and may include:

advice as to the advisability of investing in securities;

security analysis and reports;

economic studies;

industry studies;

receipt of quotations for portfolio evaluations; and

similar services.

The adviser and its affiliates exercise reasonable business judgment in
selecting brokers who offer brokerage and research services to execute
securities transactions. They determine in good faith that commissions charged
by such persons are reasonable in relationship to the value of the brokerage and
research services provided.

Research services provided by brokers may be used by the adviser or by
affiliates of Federated Investors in advising Federated funds and other
accounts. To the extent that receipt of these services may supplant services for
which the adviser or its affiliates might otherwise have paid, it would tend to
reduce their expenses.

PURCHASING SHARES
- --------------------------------------------------------------------------------

   
Shares are sold at their net asset value without a sales charge on days the New
York Stock Exchange and the Federal Reserve wire system are open for business.
The procedure for purchasing Shares is explained in the prospectus under
"Investing in the Trust."
    

CONVERSION TO FEDERAL FUNDS

It is the Trust's policy to be as fully invested as possible so that maximum
interest may be earned. To this end, all payments from shareholders must be in
federal funds or be converted into federal funds. State Street Bank acts as the
shareholder's agent in depositing checks and converting them to federal funds.

DETERMINING NET ASSET VALUE
- --------------------------------------------------------------------------------

The Trust attempts to stabilize the value of a Share at $1.00. The days on which
net asset value is calculated by the Trust are described in the prospectus. Net
asset value will not be calculated on Good Friday and on the following holidays:
New Year's Day, Presidents' Day, Memorial Day, Independence Day, Labor Day,
Thanksgiving Day, and Christmas Day.

USE OF THE AMORTIZED COST METHOD

The Trustees have decided that the best method for determining the value of
portfolio instruments is amortized cost. Under this method, portfolio
instruments are valued at the acquisition cost as adjusted for amortization of
premium or accumulation of discount rather than at current market value.

The Trust's use of the amortized cost method of valuing portfolio instruments
depends on its compliance with Rule 2a-7 (the "Rule") of the Investment Company
Act of 1940, as amended. Under the Rule, the Trustees must establish procedures
reasonably designed to stabilize the net asset value per share, as computed for
purposes of distribution and redemption, at $1.00 per share, taking into
account current market conditions and the Trust's investment objective.

Under the Rule, the Trust is permitted to purchase instruments which are subject
to demand features or standby committments. As defined by the Rule, a demand
feature entitles the Trust to receive the principal amount of the instrument
from the issuer or a third party on (1) no more than 30 days' notice or (2) at
specified intervals not exceeding one year on no more than 30 days' notice. A
standby commitment entitles the Trust to achieve same day settlement and to
receive an exercise price equal to the amortized cost of the underlying
instrument plus accrued interest at the time of exercise.

     MONITORING PROCEDURES

       The Trustees' procedures include monitoring the relationship between the
       amortized cost value per share and the net asset value per share based
       upon available indications of market value. The Trustees will decide
       what, if any, steps should be taken if there is a difference of more than
       0.5% between the two values. The Trustees will take any steps they
       consider appropriate (such as redemption in kind or shortening the
       average portfolio maturity) to minimize any material dilution or other
       unfair results arising from differences between the two methods of
       determining net asset value.

     INVESTMENT RESTRICTIONS

       The Rule requires that the Trust limit its investments to instruments
       that, in the opinion of the Trustees, present minimal credit risks and
       have received the requisite rating from one or more nationally recognized
       statistical rating organizations. If the instruments are not rated, the
       Trustees must determine that they are of comparable quality. The Rule
       also requires the Trust to maintain a dollar-weighted average portfolio
       maturity (not more than 90 days) appropriate to the objective of
       maintaining a stable net asset value of $1.00 per share. In addition, no
       instrument with a remaining maturity of more than 397 days can be
       purchased by the Trust.

       Should the disposition of a portfolio security result in a
       dollar-weighted average portfolio maturity of more than 90 days, the
       Trust will invest its available cash to reduce the average maturity to 90
       days or less as soon as possible.

The Trust may attempt to increase yield by trading portfolio securities to take
advantage of short-term market variations. This policy may, from time to time,
result in high portfolio turnover. Under the amortized cost method of valuation,
neither the amount of daily income nor the net asset value is affected by any
unrealized appreciation or depreciation of the portfolio.

In periods of declining interest rates, the indicated daily yield on shares of
the Trust computed by dividing the annualized daily income on the Trust's
portfolio by the net asset value computed as above may tend to be higher than a
similar computation made by using a method of valuation based upon market prices
and estimates.

In periods of rising interest rates, the indicated daily yield on shares of the
Trust computed the same way may tend to be lower than a similar computation made
by using a method of calculation based upon market prices and estimates.

REDEEMING SHARES
- --------------------------------------------------------------------------------

The Trust redeems Shares at the next computed net asset value after the Trust
receives the redemption request. Redemption procedures are explained in the
prospectus under "Redeeming Shares." Although State Street Bank does not charge
for telephone redemptions, it reserves the right to charge a fee for the cost of
wire-transferred redemptions of less than $5,000.

REDEMPTION IN KIND

Although the Trust intends to redeem Shares in cash, it reserves the right under
certain circumstances to pay the redemption price in whole or in part by a
distribution of securities from the Trust's portfolio.

Redemption in kind will be made in conformity with applicable Securities and
Exchange Commission rules, taking such securities at the same value employed in
determining net asset value and selecting the securities in a manner the
Trustees determine to be fair and equitable.

The Trust has elected to be governed by Rule 18f-1 of the Investment Company Act
of 1940 under which the Trust is obligated to redeem shares for any one
shareholder in cash only up to the lesser of $250,000 or 1% of the Trust's net
asset value during any 90-day period.

TAX STATUS
- --------------------------------------------------------------------------------

THE TRUST'S TAX STATUS

The Trust will pay no federal income tax because it expects to meet the
requirements of Subchapter M of the Internal Revenue Code, as amended,
applicable to regulated investment companies and to receive the special tax
treatment afforded to such companies. To qualify for this treatment, the Trust
must, among other requirements:

derive at least 90% of its gross income from dividends, interest, and gains from
the sale of securities;

derive less than 30% of its gross income from the sale of securities held less
than three months;

invest in securities within certain statutory limits; and

distribute to its shareholders at least 90% of its net income earned during the
year.

SHAREHOLDERS' TAX STATUS

Shareholders are subject to federal income tax on dividends received as cash or
additional shares. No portion of any income dividend paid by the Trust is
eligible for the dividends received deduction available to corporations. These
dividends, and any short-term capital gains, are taxable as ordinary income.

     CAPITAL GAINS

       Because the Trust invests primarily for income and because it normally
       holds portfolio instruments to maturity, it is not expected to realize
       long-term capital gains.

YIELD
- --------------------------------------------------------------------------------

   
The Trust's yield for the seven day period ended November 30, 1993 was 2.87%.
    

The Trust calculates its yield daily, based upon the seven days ending on the
day of the calculation, called the "base period." This yield is computed by:

 determining the net change in the value of a hypothetical account with a 
 balance of one share at the beginning of the base period, with the net 
 change excluding capital changes but including the value of any additional 
 shares purchased with dividends earned from the original one share and all 
 dividends declared on the original and any purchased shares;

 dividing the net change in the account's value by the value of the account at
 the beginning of the base period to determine the base period return; and

 multiplying the base period return by (365/7).

To the extent that financial institutions and brokers/dealers charge fees in
connection with services provided in conjunction with an investment in the
Trust, the performance will be reduced for those shareholders paying those fees.

EFFECTIVE YIELD
- --------------------------------------------------------------------------------

   
The Trust's effective yield for the seven day period ended November 30, 1993 was
2.91%.
    

The Trust's effective yield is computed by compounding the annualized base
period return by:

 adding 1 to the base period return;

 raising the sum to the 365/7th power; and

 subtracting 1 from the result.

PERFORMANCE COMPARISONS
- --------------------------------------------------------------------------------

The Trust's performance depends upon such variables as:

 portfolio quality;

 average portfolio maturity;

 type of instruments in which the portfolio is invested;

 changes in interest rates on money market instruments;

 changes in Trust expenses; and

 the relative amount of Trust cash flow.

   
Investors may use financial publications and/or indices to obtain a more
complete view of the Fund's performance. When comparing performance, investors
should consider all relevant factors such as the composition of any index used,
prevailing market conditions, portfolio compositions of other funds, and methods
used to value portfolio securities and compute net asset value. The financial
publications and/or indices which the Fund uses in advertising may include:
    

   
_DONOGHUE'S MONEY FUND AVERAGE, for example, tracks the average of all major
 money market fund yields, published weekly for seven-day and thirty-day yields.
    

SALOMON 30-DAY TREASURY BILL INDEX is a weekly quote of the most representative
yields for selected securities, issued by the U.S. Treasury, maturing in 30
days.

Advertisements and other sales literature for the Trust may refer to total
return. Total return is the historic change in the value of an investment in the
Trust based on the monthly reinvestment of dividends over a specified period of
time.

8010415B (1/94)  

PART C. OTHER INFORMATION.

Item 24.    Financial Statements and Exhibits:
   (a) Financial Statements (Filed in Part A);
   (b) Exhibits:
       (1)   Copy of Declaration of Trust of the Registrant as 
             amended (1., 2.);
       (2)   (i)   Copy of By-Laws of the Registrant (1.);
            (ii )  Amendment No. 5 to By-Laws dated February 2, 1987 (8.);
       (3) Not applicable;
       (4) Copy of Specimen Certificate for Shares of Beneficial 
          Interest of the Registrant (2.);
       (5) Copy of Investment Advisory Contract of the Registrant (10.);
       (6) Copy of Distributor's Contract of the Registrant (10.);
       (7) Not applicable;
       (8) Conformed Copy of Custodian Agreement of the Registrant as amended;+
       (9) Conformed Copy of Transfer Agency and Service Agreement;+
      (10) Opinion and Consent of Counsel as to the Legality of the 
          Securities being Registered (2.);
      (11) Conformed Copy of Consent of Independent Auditors;+
      (12) Not applicable;
      (13) Copy of Initial Capital Understanding (2.);
      (14) Not applicable;
      (15) Not applicable;
      (16) Schedule For Computation of Yield Calculation (9.);
      (17) Power of Attorney (11.);
      (18) Copy of Opinion and Consent of Counsel as to availability of 
           Rule 485(b).+
 
+   All exhibits have been filed electronically.

                        
1.  Response is incorporated by reference to Registrant's Initial 
    Registration Statement on Form S-5 filed November 3, 1975.  (File 
    No. 2-54929 and 811-2602)
2.  Response is incorporated by reference to Registrant's Pre-Effective 
    Amendment No. 1 on Form S-5 filed December 29, 1975. (File 
    No. 2-54929 and 811-2602)
3.  Response is incorporated by reference to Registrant's Post-Effective 
    Amendment No. 3 on Form N-1 filed December 2, 1980. (File 
    No. 2-54929 and 811-2602)
4.  Response is incorporated by reference to Registrant's Post-Effective 
    Amendment No. 22 on Form N-1 filed March 31, 1981.  (File 
    No. 2-54929 and 811-2602)
5.  Response is incorporated by reference to Registrant's Post-Effective 
    Amendment No. 23 on Form N-1 filed January 28, 1982.  (File 
    No. 2-54929 and 811-2602)
6.  Response is incorporated by reference to Registrant's Post-Effective 
    Amendment No. 24 on Form N-1 filed December 1, 1982.  (File No. 
    2-54929 and 811-2602)
7.  Response is incorporated by reference to Registrant's Post-Effective 
    Amendment No. 26 on Form N-1 filed November 30, 1983.  (File 
    No. 2-54929 and 811-2602)
8.  Response is incorporated by reference to Registrant's Post-Effective 
    Amendment No. 37 on Form N-1A filed January 26, 1988.  (File No. 
    2-54929 and 811-2602)
9.  Response is incorporated by reference to Registrant's Post-Effective 
    Amendment No. 39 on Form N-1A filed January 28, 1989.  (File 
    No. 2-54929 and 811-2602)
10. Response is incorporated by reference to Registrant's Post-Effective 
    Amendment No. 40 on Form N-1A filed November 29, 1989.  (File No. 
    2-54929 and 811-2602)
11. Response is incorporated by reference to Registrant's Post-Effective 
    Amendment No. 48 on Form N-1A filed January 26, 1993.  (File No. 
    2-54929 and 811-2602)

Item 25.                                Persons Controlled by or Under 
                                         Common Control with 
                                         Registrant:

       No persons are controlled by the Registrant.

Item 26.        Number of Holders of Securities:

        Shares of Beneficial Interest           Number of Record Holders
         (no par value)                          as of January 7, 1994 

                                                       2,582
 
Item 27.    Indemnification: (1.)

Item 28.    Business and Other Connections of Investment Adviser: 

   (a) For a description of the other business of the investment 
       adviser, see the section entitled "Trust Information - Management 
       of the Trust" in Part A.  The affiliations with the Registrant of 
       four of the Trustees and one of the Officers of the investment 
       adviser are included in Part B of this Registration Statement 
       under "Trust Management - Officers and Trustees."  The remaining 
       Trustee of the investment adviser, his position with the 
       investment adviser, and, in parentheses, his principal occupation 
       is: Mark D. Olson, (Partner, Wilson, Halbrook & Bayard), 107 W. 
       Market Street, Georgetown, Delaware 19947.

       The remaining Officers of the investment adviser are:  Mark L. 
       Mallon, Executive Vice President; Henry J. Gailliot, Senior Vice 
       President-Economist; Peter R. Anderson, William D. Dawson, III, 
       J. Thomas Madden, J. Alan Minteer, and Thomas N. Slonaker, Senior 
       Vice Presidents; Jonathan C. Conley, Mark Durbiano, David C. 
       Francis, Thomas M. Franks, Edward C. Gonzales, John W. McGonigle, 
       Gary Madich, Gregory M. Melvin, Mary Jo Ochson, Charles A. 
       Ritter, Christopher H. Wiles, Vice Presidents, Edward C. 
       Gonzales, Treasurer, and John W. McGonigle, Secretary.  The 
       business address of each of the Officers of the investment 
       adviser is Federated Investors Tower, Pittsburgh, PA  15222-3779.  
       These individuals are also officers of a majority of the 
       investment advisers to the Funds listed in Part B of this 
       Registration Statement under "Federated Funds."

Item 29.   Principal Underwriters:

(a)    Federated Securities Corp., the Distributor for shares of the 
       Registrant, also acts as principal underwriter for the following 
       open-end investment companies:  A.T. Ohio Tax-Free Money Fund; 
       American Leaders Fund, Inc.; Annuity Management Series; Automated 
       Cash Management Trust; Automated Government Money Trust; 
       BankSouth Select Funds; BayFunds; The Biltmore Funds; The 
       Biltmore Municipal Funds; The Boulevard Funds; California 
       Municipal Cash Trust; Cambridge Series Trust; Cash Trust Series, 
       Inc.; Cash Trust Series II; Convertible Securities and Income, 
       Inc.; 111 Corcoran Funds; DG Investor Series; Edward D. Jones & 
       Co. Daily Passport Cash Trust; FT Series, Inc.; Federated ARMs 
       Fund; Federated Exchange Fund, Ltd.; Federated GNMA Trust; 
       Federated Government Trust; Federated Growth Trust; Federated 
       High Yield Trust; Federated Income Securities Trust; Federated 
       Income Trust; Federated Index Trust; Federated Intermediate 
       Government Trust; Federated Master Trust; Federated Municipal 
       Trust; Federated Short-Intermediate Government Trust; 

1.  Response is incorporated by reference to Registrants Post-Effective 
    Amendment No. 44 filed on Form N1A January 25, 1991. (File No. 
    2-54929 and 811-2602)

       Federated Short-Intermediate Municipal Trust; Federated 
       Short-Term U.S. Government Trust; Federated Stock Trust; 
       Federated Tax-Free Trust; Federated U.S. Government Bond Fund; 
       Financial Reserves Fund; First Priority Funds; First Union Funds; 
       Fixed Income Securities, Inc.; Fortress Adjustable Rate U.S. 
       Government Fund, Inc.; Fortress Municipal Income Fund, Inc.; 
       Fortress Utility Fund, Inc.; Fountain Square Funds; Fund for U.S. 
       Government Securities, Inc.; Government Income Securities, Inc.; 
       High Yield Cash Trust; Independence One Mutual Funds; Insurance 
       Management Series; Intermediate Municipal Trust; Investment 
       Series Funds, Inc.; Investment Series Funds, Inc.; Investment 
       Series Trust; Liberty High Income Bond Fund, Inc.; Liberty 
       Municipal Securities Fund, Inc.; Liberty Term Trust, Inc. - 1999 
       Liberty U.S. Government Money Market Trust; Liberty Utility Fund, 
       Inc.; Liquid Cash Trust; Mark Twain Funds; Marshall Funds, Inc.; 
       Money Market Management, Inc.; Money Market Obligations Trust; 
       Money Market Trust; The Monitor Funds; Municipal Securities 
       Income Trust; New York Municipal Cash Trust; Portage Funds; RIMCO 
       Monument Funds; The Shawmut Funds; Signet Select Funds; 
       SouthTrust Vulcan Funds; Star Funds; The Starburst Funds; The 
       Starburst Funds II; Stock and Bond Fund, Inc.; Sunburst Funds; 
       Targeted Duration Trust; Tax-Free Instruments Trust; Tower Mutual 
       Funds; Trademark Funds; Trust for Financial Institutions; Trust 
       for Government Cash Reserves; Trust for U.S. Treasury 
       Obligations; Vision Fiduciary Funds, Inc; and Vision Group of 
       Funds, Inc.

       Federated Securities Corp. also acts as principal underwriter for 
       the following closed-end investment company: Liberty Term Trust, 
       Inc. -1999.


    (b)

   (1)                          (2)                      (3)
Name and Principal       Positions and Offices     Positions and Offices
 Business Address           With Underwriter          With Registrant  
 

Richard B. Fisher          President, Asst.           Vice President
Federated Investors Tower  Secretary, Asst. 
Pittsburgh, PA 15222-3779  Treasurer, and Director,
                           Federated Securities Corp.

Edward C. Gonzales         Executive Vice             Vice President
Federated Investors Tower  President, Treasurer,      and Treasurer
Pittsburgh, PA 15222-3779  and Director, Federated 
                           Securities Corp.

John W. McGonigle          Executive Vice             Vice President
Federated Investors Tower  President, Assistant       and Secretary
Pittsburgh, PA 15222-3779  Secretary, and Director,
                           Federated Securities Corp.

John A. Staley, IV         Executive Vice President   Vice President
Federated Investors Tower  and Assistant Secretary,
Pittsburgh, PA 15222-3779  Federated Securities Corp.

John B. Fisher             Senior Vice President,           --
Federated Investors Tower  Federated Securities Corp.
Pittsburgh, PA 15222-3779

   (1)                          (2)                      (3)
Name and Principal         Positions and Offices      Positions and Offices
 Business Address             With Underwriter           With Registrant  
 

James F. Getz              Senior Vice President,           --
Federated Investors Tower  Federated Securities Corp.
Pittsburgh, PA 15222-3779

James S. Hamilton          Senior Vice President,            --
Federated Investors Tower  Federated Securities Corp.
Pittsburgh, PA 15222-3779

James R. Ball              Vice President,                  --
Federated Investors Tower  Federated Securities Corp.
Pittsburgh, PA 15222-3779

Mark W. Bloss              Vice President,                  --
Federated Investors Tower  Federated Securities Corp.
Pittsburgh, PA 15222-3779

Richard W. Boyd            Vice President,                  --
Federated Investors Tower  Federated Securities Corp.
Pittsburgh, PA 15222-3779

Mary J. Combs              Vice President,                  --
Federated Investors Tower  Federated Securities Corp.
Pittsburgh, PA 15222-3779

Theodore Fadool, Jr.       Vice President,                  --
Federated Investors Tower  Federated Securities Corp.
Pittsburgh, PA  15222-3779

Bryant R. Fisher           Vice President,                  --
Federated Investors Tower  Federated Securities Corp.
Pittsburgh, PA 15222-3779

Christopher T. Fives       Vice President,                  --
Federated Investors Tower  Federated Securities Corp.
Pittsburgh, PA 15222-3779

Mark R. Gensheimer         Vice President,                  --
Federated Investors Tower  Federated Securities Corp.
Pittsburgh, PA  15222-3779

James M. Heaton            Vice President,                  --
Federated Investors Tower   Federated Securities Corp.
Pittsburgh, PA 15222-3779

William E. Kugler          Vice President,                  --
Federated Investors Tower  Federated Securities Corp.
Pittsburgh, PA 15222-3779

Dennis M. Laffey           Vice President,                  --
Federated Investors Tower  Federated Securities Corp.
Pittsburgh, PA  15222-3779

   (1)                          (2)                      (3)
Name and Principal         Positions and Offices      Positions and Offices
 Business Address             With Underwriter           With Registrant  
 

R. Jeffrey Niss            Vice President,                  --
Federated Investors Tower  Federated Securities Corp.
Pittsburgh, PA  15222-3799

Keith Nixon                Vice President,                  --
Federated Investors Tower  Federated Securities Corp.
Pittsburgh, PA 15222-3779

Solon A. Person, IV        Vice President,                  --
Federated Investors Tower  Federated Securities Corp.
Pittsburgh, PA  15222-3779

Robert F. Phillips         Vice President,                  --
Federated Investors Tower  Federated Securities Corp.
Pittsburgh, PA 15222-3779

Timothy C. Pillion         Vice President                   --
Federated Investors Tower  Federated Securities Corp.
Pittsburgh, PA  15222-3779

Eugene B. Reed             Vice President,                  --
Federated Investors Tower  Federated Securities Corp.
Pittsburgh, PA 15222-3779

Dwight E. Reichard         Vice President,                  --
Federated Investors Tower  Federated Securities Corp.
Pittsburgh, PA 15222-3779

Paul V. Riordan            Vice President,                  --
Federated Investors Tower  Federated Securities Corp.
Pittsburgh, PA 15222-3779

Charles A. Robison         Vice President,                  --
Federated Investors Tower  Federated Securities Corp.
Pittsburgh, PA 15222-3779

Brian L. Sullivan          Vice President,                  --
Federated Investors Tower  Federated Securities Corp.
Pittsburgh, PA 15222-3779

Thomas E. Territ           Vice President,                  --
Federated Investors Tower  Federated Securities Corp.
Pittsburgh, PA 15222-3779

Richard B. Watts           Vice President,                  --
Federated Investors Tower  Federated Securities Corp.
Pittsburgh, PA 15222-3779

R. Edmond Connell, Jr.     Assistant Vice President         --
Federated Investors Tower  Federated Securities Corp.
Pittsburgh, PA 15222-3779

   (1)                          (2)                      (3)
Name and Principal         Positions and Offices      Positions and Offices
 Business Address             With Underwriter           With Registrant  
 

Joseph Gibbons             Assistant Vice President         --
Federated Investors Tower  Federated Securities Corp.
Pittsburgh, PA  15222-3779

Philip C. Hetzel           Assistant Vice President         --
Federated Investors Tower  Federated Securities Corp.
Pittsburgh, PA  15222-3779

H. Joseph Kennedy          Assistant Vice President,        --
Federated Investors Tower   Federated Securities Corp.
Pittsburgh, PA 15222-3779

Sharon M. Morgan           Assistant Vice President         --
Federated Investors Tower  Federated Securities Corp.
Pittsburgh, PA  15222-3779

S. Elliott Cohan           Secretary, Federated       Assistant 
Secretary
Federated Investors Tower  Securities Corp.
Pittsburgh, PA 15222-3779

   (c) Not applicable. 

Item 30.  Location of Accounts and Records (1.);

Item 31.  Management Services:      Not applicable.

Item 32.  Undertakings:

       Registrant hereby undertakes to comply with the provisions of 
       Section 16(c) of the 1940 Act with respect to the removal of 
       Trustees and the calling of special shareholder meetings by 
       shareholders.


                        

1.  Response is incorporated by reference to Registrant's Post-Effective 
    Amendment No. 3 on Form N-1 filed December 2, 1980.  (File No. 
    2-54929 and 811-2602)



                                  SIGNATURES
 
     Pursuant to the requirements of the Securities Act of 1933 and the 
 Investment Company Act of 1940, the Registrant, TRUST FOR SHORT-TERM U.S. 
 GOVERNMENT SECURITIES, certifies that it meets all of the requirements for 
 effectiveness of this Amendment to its Registration Statement pursuant to 
 Rule 485(b) under the Securities Act of 1933 and has duly caused this 
 Amendment to its Registration Statement to be signed on its behalf by the 
 undersigned, thereunto duly authorized, all in the City of Pittsburgh and 
 Commonwealth of Pennsylvania, on the 27th day of January, 1994.
 
               TRUST FOR SHORT-TERM U.S. GOVERNMENT SECURITIES
 
                   BY: /s/Robert C. Rosselot
                   Robert C. Rosselot, Assistant Secretary
                   Attorney in Fact for John F. Donahue
                   January 27, 1994
 
 
     Pursuant to the requirements of the Securities Act of 1933, this 
 Amendment to its Registration Statement has been signed below by the 
 following person in the capacity and on the date indicated:
 
     NAME                            TITLE                         DATE
 
 By: /s/Robert C. Rosselot
     Robert C. Rosselot           Attorney In Fact          January 27, 1994
     ASSISTANT SECRETARY          For the Persons
                                  Listed Below
 
     NAME                            TITLE
 
 John F. Donahue*                 Chairman and Trustee
                                  (Chief Executive Officer)
 
 Glen R. Johnson*                 President
 
 Edward C. Gonzales*              Vice President and Treasurer
                                  (Principal Financial and
                                  Accounting Officer)
 
 William J. Copeland*             Trustee
 
 James E. Dowd*                   Trustee
 
 Lawrence D. Ellis, M.D.*         Trustee
 
 Edward L. Flaherty, Jr.*         Trustee
 
 Gregor F. Meyer*                 Trustee
 
 Wesley W. Posvar*                Trustee
 
 Marjorie P. Smuts*               Trustee
 
 Peter E. Madden*                 Trustee
 
 John T. Conroy, Jr.*             Trustee
 
 * By Power of Attorney
 


                                           Exhibit (11) under Form N-1A
                                           Exhibit 23 under Item 601/Reg S-K
 
 
                             DELOITTE & TOUCHE
 
 
            CONSENT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
 
 We consent to the use in this Post-Effective Amendment No. 50 to 
 Registration Statement No. 2-54929 of Trust for Short-Term U.S. Government 
 Securities of our report dated January 14, 1994, appearing in the 
 Prospectus, which is a part of such Registration Statement, and to the 
 reference to us under the heading "Financial Highlights" in such 
 Prospectus.
 
 
 
 By: DELOITTE & TOUCHE
     Deloitte & Touche
     Certified Public Accountants
 
 Boston, Massachusetts
 January 27, 1994
 


                                       Exhibit 8 under Form N-1A
                                       Exhibit 10 under Item 601/Reg. S-K




















                              CUSTODIAN CONTRACT
                                   Between
                      TRUST FOR GOVERNMENT CASH RESERVES
                                     and
                     STATE STREET BANK AND TRUST COMPANY

                             TABLE OF CONTENTS

                                                                      Page
1.    Employment of Custodian and Property to be Held by It............ 1

2.    Duties of the Custodian With Respect to Property
      of the Funds Held by the Custodian............................... 1
      2.1    Holding Securities........................................ 1
      2.2    Delivery of Securities.................................... 2
      2.3    Registration of Securities................................ 4
      2.4    Bank Accounts............................................. 4
      2.5    Payments for Shares....................................... 4
      2.6    Availability of Federal Funds............................. 4
      2.7    Collection of Income...................................... 5
      2.8    Payment of Fund Moneys.................................... 5
      2.9    Liability for Payment in Advance of
             Receipt of Securities Purchased........................... 6
      2.10   Payments for Repurchases or Redemptions
             of Shares of a Fund....................................... 6
      2.11   Appointment of Agents..................................... 6
      2.12   Deposit of Fund Assets in Securities System............... 7
      2.13   Segregated Account........................................ 8
      2.14   Joint Repurchase Agreements............................... 8
      2.15   Ownership Certificates for Tax Purposes................... 8
      2.16   Proxies................................................... 9
      2.17   Communications Relating to Fund Portfolio Securities...... 9
      2.18   Proper Instructions....................................... 9
      2.19   Actions Permitted Without Express Authority............... 9
      2.20   Evidence of Authority.....................................10

3.    Duties of Custodian With Respect to the Books of Account and
      Calculation of Net Asset Value and Net Income....................10

4.    Records..........................................................10

5.    Opinion of Funds' Independent Auditors...........................11

6.    Reports to Trust by Independent Auditors.........................11

7.    Compensation of Custodian........................................11

8.    Responsibility of Custodian......................................11

9.    Effective Period, Termination and Amendment......................13

10.   Successor Custodian..............................................13

11.   Interpretive and Additional Provisions...........................14

12.   Massachusetts Law to Apply.......................................14

13.   Notices..........................................................14

14.   Counterparts.....................................................14

15.   Limitations of Liability.........................................15
                             CUSTODIAN CONTRACT


      This Contract between TRUST FOR GOVERNMENT CASH RESERVES, (the
"Trust"), a Massachusetts business trust, on behalf of the portfolios
(hereinafter collectively called the "Funds" and individually referred to as
a "Fund") of the Trust, organized and existing under the laws of the
Commonwealth of Massachusetts, having its principal place of business at
Federated Investors Tower, Pittsburgh, Pennsylvania, 15222-3779, and STATE
STREET BANK AND TRUST COMPANY, a Massachusetts trust company, having its
principal place of business at 225 Franklin Street, Boston, Massachusetts,
                02110, hereinafter called the "Custodian",
      WITNESSETH:  That in consideration of the mutual covenants and
agreements hereinafter contained, the parties hereto agree as follows:

1.    Employment of Custodian and Property to be Held by It

      The Trust hereby employs the Custodian as the custodian of the assets
of each of the Funds of the Trust.  Except as otherwise expressly provided
herein, the securities and other assets of each of the Funds shall be
segregated from the assets of each of the other Funds and from all other
persons and entities.  The Trust will deliver to the Custodian all
securities and cash owned by the Funds and all payments of income, payments
of principal or capital distributions received by them with respect to all
securities owned by the Funds from time to time, and the cash consideration
received by them for shares ("Shares") of beneficial interest of the Funds
as may be issued or sold from time to time.  The Custodian shall not be
responsible for any property of the Funds held or received by the Funds and
not delivered to the Custodian.

      Upon receipt of "Proper Instructions" (within the meaning of Section
2.18), the Custodian shall from time to time employ one or more sub-
custodians upon the terms specified in the Proper Instructions, provided
that the Custodian shall have no more or less responsibility or liability to
the Trust or any of the Funds on account of any actions or omissions of any
sub-custodian so employed than any such sub-custodian has to the Custodian.

2.    Duties of the Custodian With Respect to Property of the Funds Held by
      the Custodian

2.1   Holding Securities.  The Custodian shall hold and physically segregate
      for the account of each Fund all non-cash property, including all
      securities owned by each Fund, other than securities which are
      maintained pursuant to Section 2.12 in a clearing agency which acts as
      a securities depository or in a book-entry system authorized by the
      U.S. Department of the Treasury, collectively referred to herein as
      "Securities System", or securities which are subject to a joint
      repurchase agreement with affiliated funds pursuant to Section 2.14.
      The Custodian shall maintain records of all receipts, deliveries and
      locations of such securities, together with a current inventory
      thereof, and shall conduct periodic physical inspections of
      certificates representing stocks, bonds and other securities held by
      it under this Contract in such manner as the Custodian shall determine
      from time to time to be advisable in order to verify the accuracy of
      such inventory.  With respect to securities held by any agent
      appointed pursuant to Section 2.11 hereof, and with respect to
      securities held by any sub-custodian appointed pursuant to Section 1
      hereof, the Custodian may rely upon certificates from such agent as to
      the holdings of such agent and from such sub-custodian as to the
      holdings of such sub-custodian, it being understood that such reliance
      in no way relieves the Custodian of its responsibilities under this
      Contract.  The Custodian will promptly report to the Trust the results
      of such inspections, indicating any shortages or discrepancies
      uncovered thereby, and take appropriate action to remedy any such
      shortages or discrepancies.

2.2   Delivery of Securities.  The Custodian shall release and deliver
      securities owned by a Fund held by the Custodian or in a Securities
      System account of the Custodian only upon receipt of Proper
      Instructions, which may be continuing instructions when deemed
      appropriate by the parties, and only in the following cases:

      (1)  Upon sale of such securities for the account of a Fund and
           receipt of payment therefor;

      (2)  Upon the receipt of payment in connection with any repurchase
           agreement related to such securities entered into by the Trust;

      (3)  In the case of a sale effected through a Securities System, in
           accordance with the provisions of Section 2.12 hereof;

      (4)  To the depository agent in connection with tender or other
           similar offers for portfolio securities of a Fund, in accordance
           with the provisions of Section 2.17 hereof;

      (5)  To the issuer thereof or its agent when such securities are
           called, redeemed, retired or otherwise become payable; provided
           that, in any such case, the cash or other consideration is to be
           delivered to the Custodian;

      (6)  To the issuer thereof, or its agent, for transfer into the name
           of a Fund or into the name of any nominee or nominees of the
           Custodian or into the name or nominee name of any agent appointed
           pursuant to Section 2.11 or into the name or nominee name of any
           sub-custodian appointed pursuant to Section 1; or for exchange
           for a different number of bonds, certificates or other evidence
           representing the same aggregate face amount or number of units;
           provided that, in any such case, the new securities are to be
           delivered to the Custodian;

      (7)  Upon the sale of such securities for the account of a Fund, to
           the broker or its clearing agent, against a receipt, for
           examination in accordance with "street delivery custom"; provided
           that in any such case, the Custodian shall have no responsibility
           or liability for any loss arising from the delivery of such
           securities prior to receiving payment for such securities except
           as may arise from the Custodian's own failure to act in
           accordance with the standard of reasonable care or any higher
           standard of care imposed upon the Custodian by any applicable law
           or regulation if such above-stated standard of reasonable care
           were not part of this Contract;

      (8)  For exchange or conversion pursuant to any plan of merger,
           consolidation, recapitalization, reorganization or readjustment
           of the securities of the issuer of such securities, or pursuant
           to provisions for conversion contained in such securities, or
           pursuant to any deposit agreement; provided that, in any such
           case, the new securities and cash, if any, are to be delivered to
           the Custodian;

      (9)  In the case of warrants, rights or similar securities, the
           surrender thereof in the exercise of such warrants, rights or
           similar securities or the surrender of interim receipts or
           temporary securities for definitive securities; provided that, in
           any such case, the new securities and cash, if any, are to be
           delivered to the Custodian;

     (10)  For delivery in connection with any loans of portfolio securities
           of a Fund, but only against receipt of adequate collateral in the
           form of (a) cash, in an amount specified by the Trust, (b)
           certificated securities of a description specified by the Trust,
           registered in the name of the Fund or in the name of a nominee of
           the Custodian referred to in Section 2.3 hereof or in proper form
           for transfer, or (c) securities of a description specified by the
           Trust, transferred through a Securities System in accordance with
           Section 2.12 hereof;

     (11)  For delivery as security in connection with any borrowings
           requiring a pledge of assets by a Fund, but only against receipt
           of amounts borrowed, except that in cases where additional
           collateral is required to secure a borrowing already made,
           further securities may be released for the purpose;

     (12)  For delivery in accordance with the provisions of any agreement
           among the Trust, the Custodian and a broker-dealer registered
           under the Securities Exchange Act of 1934, as amended, (the
           "Exchange Act") and a member of The National Association of
           Securities Dealers, Inc. ("NASD"), relating to compliance with
           the rules of The Options Clearing Corporation and of any
           registered national securities exchange, or of any similar
           organization or organizations, regarding escrow or other
           arrangements in connection with transactions for a Fund;

     (13)  For delivery in accordance with the provisions of any agreement
           among the Trust, the Custodian, and a Futures Commission Merchant
           registered under the Commodity Exchange Act, relating to
           compliance with the rules of the Commodity Futures Trading
           Commission and/or any Contract Market, or any similar
           organization or organizations, regarding account deposits in
           connection with transaction for a Fund;

     (14)  Upon receipt of instructions from the transfer agent ("Transfer
           Agent") for a Fund, for delivery to such Transfer Agent or to the
           holders of shares in connection with distributions in kind, in
           satisfaction of requests by holders of Shares for repurchase or
           redemption; and

     (15)  For any other proper corporate purpose, but only upon receipt of,
           in addition to Proper Instructions, a certified copy of a
           resolution of the Executive Committee of the Trust on behalf of a
           Fund signed by an officer of the Trust and certified by its
           Secretary or an Assistant Secretary, specifying the securities to
           be delivered, setting forth the purpose for which such delivery
		 is to be made, declaring such purpose to be a proper corporate
           purpose, and naming the person or persons to whom delivery of
           such securities shall be made.

2.3   Registration of Securities.  Securities held by the Custodian (other
      than bearer securities) shall be registered in the name of a
      particular Fund or in the name of any nominee of the Fund or of any
      nominee of the Custodian which nominee shall be assigned exclusively
      to the Fund, unless the Trust has authorized in writing the
      appointment of a nominee to be used in common with other registered
      investment companies affiliated with the Fund, or in the name or
      nominee name of any agent appointed pursuant to Section 2.11 or in the
      name or nominee name of any sub-custodian appointed pursuant to
      Section 1.  All securities accepted by the Custodian on behalf of a
      Fund under the terms of this Contract shall be in "street name" or
      other good delivery form.

2.4   Bank Accounts.  The Custodian shall open and maintain a separate bank
      account or accounts in the name of each Fund, subject only to draft or
      order by the Custodian acting pursuant to the terms of this Contract,
      and shall hold in such account or accounts, subject to the provisions
      hereof, all cash received by it from or for the account of each Fund,
      other than cash maintained in a joint repurchase account with other
      affiliated funds pursuant to Section 2.14 of this Contract or by a
      particular Fund in a bank account established and used in accordance
      with Rule 17f-3 under the Investment Company Act of 1940, as amended,
      (the "1940 Act").  Funds held by the Custodian for a Fund may be
      deposited by it to its credit as Custodian in the Banking Department
      of the Custodian or in such other banks or trust companies as it may
      in its discretion deem necessary or desirable; provided, however, that
      every such bank or trust company shall be qualified to act as a
      custodian under the 1940 Act and that each such bank or trust company
      and the funds to be deposited with each such bank or trust company
      shall be approved by vote of a majority of the Board of Trustees
      ("Board") of the Trust.  Such funds shall be deposited by the
      Custodian in its capacity as Custodian for the Fund and shall be
      withdrawable by the Custodian only in that capacity.  If requested by
      the Trust, the Custodian shall furnish the Trust, not later than
      twenty (20) days after the last business day of each month, an
      internal reconciliation of the closing balance as of that day in all
      accounts described in this section to the balance shown on the daily
      cash report for that day rendered to the Trust.

2.5   Payments for Shares.  The Custodian shall make such arrangements with
      the Transfer Agent of each Fund, as will enable the Custodian to
      receive the cash consideration due to each Fund and will deposit into
      each Fund's account such payments as are received from the Transfer
      Agent.  The Custodian will provide timely notification to the Trust
      and the Transfer Agent of any receipt by it of payments for Shares of
      the respective Fund.

2.6   Availability of Federal Funds.  Upon mutual agreement between the
      Trust and the Custodian, the Custodian shall make federal funds
      available to the Funds as of specified times agreed upon from time to
      time by the Trust and the Custodian in the amount of checks, clearing
      house funds, and other non-federal funds received in payment for
      Shares of the Funds which are deposited into the Funds' accounts.

2.7   Collection of Income.

      (1)  The Custodian shall collect on a timely basis all income and
           other payments with respect to registered securities held
           hereunder to which each Fund shall be entitled either by law or
           pursuant to custom in the securities business, and shall collect
           on a timely basis all income and other payments with respect to
           bearer securities if, on the date of payment by the issuer, such
           securities are held by the Custodian or its agent thereof and
           shall credit such income, as collected, to each Fund's custodian
           account.  Without limiting the generality of the foregoing, the
           Custodian shall detach and present for payment all coupons and
           other income items requiring presentation as and when they become
           due and shall collect interest when due on securities held
           hereunder.  The collection of income due the Funds on securities
           loaned pursuant to the provisions of Section 2.2 (10) shall be
           the responsibility of the Trust.  The Custodian will have no duty
           or responsibility in connection therewith, other than to provide
           the Trust with such information or data as may be necessary to
           assist the Trust in arranging for the timely delivery to the
           Custodian of the income to which each Fund is properly entitled.

      (2)  The Custodian shall promptly notify the Trust whenever income due
           on securities is not collected in due course and will provide the
           Trust with monthly reports of the status of past due income
           unless the parties otherwise agree.

2.8   Payment of Fund Moneys.  Upon receipt of Proper Instructions, which
      may be continuing instructions when deemed appropriate by the parties,
      the Custodian shall pay out moneys of each Fund in the following cases
      only:

      (1)  Upon the purchase of securities, futures contracts or options on
           futures contracts for the account of a Fund but only (a) against
           the delivery of such securities, or evidence of title to futures
           contracts, to the Custodian (or any bank, banking firm or trust
           company doing business in the United States or abroad which is
           qualified under the Investment Company Act of 1940, as amended,
           to act as a custodian and has been designated by the Custodian as
           its agent for this purpose) registered in the name of the Fund or
           in the name of a nominee of the Custodian referred to in Section
           2.3 hereof or in proper form for transfer, (b) in the case of a
           purchase effected through a Securities System, in accordance with
           the conditions set forth in Section 2.12 hereof or (c) in the
           case of repurchase agreements entered into between the Trust and
           any other party, (i) against delivery of the securities either in
           certificate form or through an entry crediting the Custodian's
           account at the Federal Reserve Bank with such securities or (ii)
           against delivery of the receipt evidencing purchase for the
           account of the Fund of securities owned by the Custodian along
           with written evidence of the agreement by the Custodian to
           repurchase such securities from the Fund;

      (2)  In connection with conversion, exchange or surrender of
           securities owned by a Fund as set forth in Section 2.2 hereof;

      (3)  For the redemption or repurchase of Shares of a Fund issued by
           the Trust as set forth in Section 2.10 hereof;

      (4)  For the payment of any expense or liability incurred by a Fund,
           including but not limited to the following payments for the
           account of the Fund:  interest; taxes; management, accounting,
           transfer agent and legal fees; and operating expenses of the
           Fund, whether or not such expenses are to be in whole or part
           capitalized or treated as deferred expenses;

      (5)  For the payment of any dividends on Shares of a Fund declared
           pursuant to the governing documents of the Trust;

      (6)  For payment of the amount of dividends received in respect of
           securities sold short;

      (7)  For any other proper purpose, but only upon receipt of, in
           addition to Proper Instructions, a certified copy of a resolution
           of the Executive Committee of the Trust on behalf of a Fund
           signed by an officer of the Trust and certified by its Secretary
           or an Assistant Secretary, specifying the amount of such payment,
           setting forth the purpose for which such payment is to be made,
           declaring such purpose to be a proper purpose, and naming the
           person or persons to whom such payment is to be made.

2.9   Liability for Payment in Advance of Receipt of Securities Purchased.
      In any and every case where payment for purchase of securities for the
      account of a Fund is made by the Custodian in advance of receipt of
      the securities purchased, in the absence of specific written
      instructions from the Trust to so pay in advance, the Custodian shall
      be absolutely liable to the Fund for such securities to the same
      extent as if the securities had been received by the Custodian.

2.10  Payments for Repurchases or Redemptions of Shares of a Fund.  From
      such funds as may be available for the purpose of repurchasing or
      redeeming Shares of a Fund, but subject to the limitations of the
      Declaration of Trust and any applicable votes of the Board of the
      Trust pursuant thereto, the Custodian shall, upon receipt of
      instructions from the Transfer Agent, make funds available for payment
      to holders of shares of such Fund who have delivered to the Transfer
      Agent a request for redemption or repurchase of their shares including
      without limitation through bank drafts, automated clearinghouse
      facilities, or by other means.  In connection with the redemption or
      repurchase of Shares of the Funds, the Custodian is authorized upon
      receipt of instructions from the Transfer Agent to wire funds to or
      through a commercial bank designated by the redeeming shareholders.

2.11  Appointment of Agents.  The Custodian may at any time or times in its
      discretion appoint (and may at any time remove) any other bank or
      trust company which is itself qualified under the Investment Company
      Act of 1940, as amended, and any applicable state law or regulation,
      to act as a custodian, as its agent to carry out such of the
      provisions of this Section 2 as the Custodian may from time to time
      direct; provided, however, that the appointment of any agent shall not
      relieve the Custodian of its responsibilities or liabilities
      hereunder.

2.12  Deposit of Fund Assets in Securities System.  The Custodian may
      deposit and/or maintain securities owned by the Funds in a clearing
      agency registered with the Securities and Exchange Commission ("SEC")
      under Section 17A of the Exchange Act, which acts as a securities
      depository, or in the book-entry system authorized by the U.S.
      Department of the Treasury and certain federal agencies, collectively
      referred to herein as "Securities System" in accordance with
      applicable Federal Reserve Board and SEC rules and regulations, if
      any, and subject to the following provisions:

      (1)  The Custodian may keep securities of each Fund in a Securities
           System provided that such securities are represented in an
           account ("Account") of the Custodian in the Securities System
           which shall not include any assets of the Custodian other than
           assets held as a fiduciary, custodian or otherwise for customers;

      (2)  The records of the Custodian with respect to securities of the
           Funds which are maintained in a Securities System shall identify
           by book-entry those securities belonging to each Fund;

      (3)  The Custodian shall pay for securities purchased for the account
           of each Fund upon (i) receipt of advice from the Securities
           System that such securities have been transferred to the Account,
           and (ii) the making of an entry on the records of the Custodian
           to reflect such payment and transfer for the account of the Fund.
           The Custodian shall transfer securities sold for the account of a
           Fund upon (i) receipt of advice from the Securities System that
           payment for such securities has been transferred to the Account,
           and (ii) the making of an entry on the records of the Custodian
           to reflect such transfer and payment for the account of the Fund.
           Copies of all advices from the Securities System of transfers of
           securities for the account of a Fund shall identify the Fund, be
           maintained for the Fund by the Custodian and be provided to the
           Trust at its request.  Upon request, the Custodian shall furnish
           the Trust confirmation of each transfer to or from the account of
           a Fund in the form of a written advice or notice and shall
           furnish to the Trust copies of daily transaction sheets
           reflecting each day's transactions in the Securities System for
           the account of a Fund.

      (4)  The Custodian shall provide the Trust with any report obtained by
           the Custodian on the Securities System's accounting system,
           internal accounting control and procedures for safeguarding
           securities deposited in the Securities System;

      (5)  The Custodian shall have received the initial certificate,
           required by Section 9 hereof;

      (6)  Anything to the contrary in this Contract notwithstanding, the
           Custodian shall be liable to the Trust for any loss or damage to
           a Fund resulting from use of the Securities System by reason of
           any negligence, misfeasance or misconduct of the Custodian or any
           of its agents or of any of its or their employees or from failure
           of the Custodian or any such agent to enforce effectively such
           rights as it may have against the Securities System; at the
           election of the Trust, it shall be entitled to be subrogated to
           the rights of the Custodian with respect to any claim against the
           Securities System or any other person which the Custodian may
           have as a consequence of any such loss or damage if and to the
           extent that a Fund has not been made whole for any such loss or
           damage.

     (7)  The authorization contained in this Section 2.12 shall not relieve
          the Custodian from using reasonable care and diligence in making
          use of any Securities System.

2.13  Segregated Account.  The Custodian shall upon receipt of Proper
      Instructions establish and maintain a segregated account or accounts
      for and on behalf of each Fund, into which account or accounts may be
      transferred cash and/or securities, including securities maintained in
      an account by the Custodian pursuant to Section 2.12 hereof, (i) in
      accordance with the provisions of any agreement among the Trust, the
      Custodian and a broker-dealer registered under the Exchange Act and a
      member of the NASD (or any futures commission merchant registered
      under the Commodity Exchange Act), relating to compliance with the
      rules of The Options Clearing Corporation and of any registered
      national securities exchange (or the Commodity Futures Trading
      Commission or any registered contract market), or of any similar
      organization or organizations, regarding escrow or other arrangements
      in connection with transactions for a Fund, (ii) for purpose of
      segregating cash or government securities in connection with options
      purchased, sold or written for a Fund or commodity futures contracts
      or options thereon purchased or sold for a Fund, (iii) for the purpose
      of compliance by the Trust or a Fund with the procedures required by
      any release or releases of the SEC relating to the maintenance of
      segregated accounts by registered investment companies and (iv) for
      other proper corporate purposes, but only, in the case of clause (iv),
      upon receipt of, in addition to Proper Instructions, a certified copy
      of a resolution of the Board or of the Executive Committee signed by
      an officer of the Trust and certified by the Secretary or an Assistant
      Secretary, setting forth the purpose or purposes of such segregated
      account and declaring such purposes to be proper corporate purposes.

2.14  Joint Repurchase Agreements.  Upon the receipt of Proper Instructions,
      the Custodian shall deposit and/or maintain any assets of a Fund and
      any affiliated funds which are subject to joint repurchase
      transactions in an account established solely for such transactions
      for the Fund and its affiliated funds.  For purposes of this Section
      2.14, "affiliated funds" shall include all investment companies and
      their portfolios for which subsidiaries or affiliates of Federated
      Investors serve as investment advisers, distributors or administrators
      in accordance with applicable exemptive orders from the SEC.  The
      requirements of segregation set forth in Section 2.1 shall be deemed
      to be waived with respect to such assets.

2.15  Ownership Certificates for Tax Purposes.  The Custodian shall execute
      ownership and other certificates and affidavits for all federal and
      state tax purposes in connection with receipt of income or other
      payments with respect to securities of a Fund held by it and in
      connection with transfers of securities.

2.16  Proxies.  The Custodian shall, with respect to the securities held
      hereunder, cause to be promptly executed by the registered holder of
      such securities, if the securities are registered otherwise than in
      the name of a Fund or a nominee of a Fund, all proxies, without
      indication of the manner in which such proxies are to be voted, and
      shall promptly deliver to the Trust such proxies, all proxy soliciting
      materials and all notices relating to such securities.

2.17  Communications Relating to Fund Portfolio Securities.  The Custodian
      shall transmit promptly to the Trust all written information
      (including, without limitation, pendency of calls and maturities of
      securities and expirations of rights in connection therewith and
      notices of exercise of call and put options written by the Fund and
      the maturity of futures contracts purchased or sold by the Fund)
      received by the Custodian from issuers of the securities being held
      for the Fund.  With respect to tender or exchange offers, the
      Custodian shall transmit promptly to the Trust all written information
      received by the Custodian from issuers of the securities whose tender
      or exchange is sought and from the party (or his agents) making the
      tender or exchange offer.  If the Trust desires to take action with
      respect to any tender offer, exchange offer or any other similar
      transaction, the Trust shall notify the Custodian in writing at least
      three business days prior to the date on which the Custodian is to
      take such action.  However, the Custodian shall nevertheless exercise
      its best efforts to take such action in the event that notification is
      received three business days or less prior to the date on which action
      is required.

2.18  Proper Instructions.  Proper Instructions as used throughout this
      Section 2 means a writing signed or initialed by one or more person or
      persons as the Board shall have from time to time authorized.  Each
      such writing shall set forth the specific transaction or type of
      transaction involved.  Oral instructions will be considered Proper
      Instructions if the Custodian reasonably believes them to have been
      given by a person previously authorized in Proper Instructions to give
      such instructions with respect to the transaction involved.  The Trust
      shall cause all oral instructions to be confirmed in writing.  Upon
      receipt of a certificate of the Secretary or an Assistant Secretary as
      to the authorization by the Board of the Trust accompanied by a
      detailed description of procedures approved by the Board, Proper
      Instructions may include communications effected directly between
      electro-mechanical or electronic devices provided that the Board and
      the Custodian are satisfied that such procedures afford adequate
      safeguards for a Fund's assets.

2.19  Actions Permitted Without Express Authority.  The Custodian may in its
      discretion, without express authority from the Trust:

      (1)  make payments to itself or others for minor expenses of handling
           securities or other similar items relating to its duties under
           this Contract, provided that all such payments shall be accounted
           for to the Trust in such form that it may be allocated to the
           affected Fund;

      (2)  surrender securities in temporary form for securities in
           definitive form;

      (3)  endorse for collection, in the name of a Fund, checks, drafts and
           other negotiable instruments; and

      (4)  in general, attend to all non-discretionary details in connection
           with the sale, exchange, substitution, purchase, transfer and
           other dealings with the securities and property of each Fund
           except as otherwise directed by the Trust.

2.20  Evidence of Authority.  The Custodian shall be protected in acting
      upon any instructions, notice, request, consent, certificate or other
      instrument or paper reasonably believed by it to be genuine and to
      have been properly executed on behalf of a Fund.  The Custodian may
      receive and accept a certified copy of a vote of the Board of the
      Trust as conclusive evidence (a) of the authority of any person to act
      in accordance with such vote or (b) of any determination of or any
      action by the Board pursuant to the Declaration of Trust as described
      in such vote, and such vote may be considered as in full force and
      effect until receipt by the Custodian of written notice to the
      contrary.

3.    Duties of Custodian With Respect to the Books of Account and
      Calculation of Net Asset Value and Net Income.

      The Custodian shall cooperate with and supply necessary information to
the entity or entities appointed by the Board of the Trust to keep the books
of account of each Fund and/or compute the net asset value per share of the
outstanding Shares of each Fund or, if directed in writing to do so by the
Trust, shall itself keep such books of account and/or compute such net asset
value per share.  If so directed, the Custodian shall also calculate daily
the net income of a Fund as described in the Fund's currently effective
prospectus and shall advise the Trust and the Transfer Agent daily of the
total amounts of such net income and, if instructed in writing by an officer
of the Trust to do so, shall advise the Transfer Agent periodically of the
division of such net income among its various components.  The calculations
of the net asset value per share and the daily income of a Fund shall be
made at the time or times described from time to time in the Fund's
currently effective prospectus.

4.    Records.

      The Custodian shall create and maintain all records relating to its
activities and obligations under this Contract in such manner as will meet
the obligations of the Trust and the Funds under the 1940 Act, with
particular attention to Section 31 thereof and Rules 31a-1 and 31a-2
thereunder, and specifically including identified cost records used for tax
purposes.  All such records shall be the property of the Trust and shall at
all times during the regular business hours of the Custodian be open for
inspection by duly authorized officers, employees or agents of the Trust and
employees and agents of the SEC.  In the event of termination of this
Contract, the Custodian will deliver all such records to the Trust, to a
successor Custodian, or to such other person as the Trust may direct.  The
Custodian shall supply daily to the Trust a tabulation of securities owned
by a Fund and held by the Custodian and shall, when requested to do so by
the Trust and for such compensation as shall be agreed upon between the
Trust and the Custodian, include certificate numbers in such tabulations.

5.    Opinion of Funds' Independent Auditors.

      The Custodian shall take all reasonable action, as the Trust may from
time to time request, to obtain from year to year favorable opinions from
each Fund's independent auditors with respect to its activities hereunder in
connection with the preparation of the Fund's registration statement,
periodic reports, or any other reports to the SEC and with respect to any
other requirements of such Commission.

6.    Reports to Trust by Independent Auditors.

      The Custodian shall provide the Trust, at such times as the Trust may
reasonably require, with reports by independent auditors for each Fund on
the accounting system, internal accounting control and procedures for
safeguarding securities, futures contracts and options on futures contracts,
including securities deposited and/or maintained in a Securities System,
relating to the services provided by the Custodian for the Fund under this
Contract; such reports shall be of sufficient scope and in sufficient
detail, as may reasonably be required by the Trust, to provide reasonable
assurance that any material inadequacies would be disclosed by such
examination and, if there are no such inadequacies, the reports shall so
state.

7.    Compensation of Custodian.

      The Custodian shall be entitled to reasonable compensation for its
services and expenses as Custodian, as agreed upon from time to time between
the Trust and the Custodian.

8.    Responsibility of Custodian.

      The Custodian shall be held to a standard of reasonable care in
carrying out the provisions of this Contract; provided, however, that the
Custodian shall be held to any higher standard of care which would be
imposed upon the Custodian by any applicable law or regulation if such above
stated standard of reasonable care was not part of this Contract.  The
Custodian shall be entitled to rely on and may act upon advice of counsel
(who may be counsel for the Trust) on all matters, and shall be without
liability for any action reasonably taken or omitted pursuant to such
advice, provided that such action is not in violation of applicable federal
or state laws or regulations, and is in good faith and without negligence.
Subject to the limitations set forth in Section 15 hereof, the Custodian
shall be kept indemnified by the Trust but only from the assets of the Fund
involved in the issue at hand and be without liability for any action taken
or thing done by it in carrying out the terms and provisions of this
Contract in accordance with the above standards.

      In order that the indemnification provisions contained in this
Section 8 shall apply, however, it is understood that if in any case the
Trust may be asked to indemnify or save the Custodian harmless, the Trust
shall be fully and promptly advised of all pertinent facts concerning the
situation in question, and it is further understood that the Custodian will
use all reasonable care to identify and notify the Trust promptly concerning
any situation which presents or appears likely to present the probability of
such a claim for indemnification.  The Trust shall have the option to defend
the Custodian against any claim which may be the subject of this
indemnification, and in the event that the Trust so elects it will so notify
the Custodian and thereupon the Trust shall take over complete defense of
the claim, and the Custodian shall in such situation initiate no further
legal or other expenses for which it shall seek indemnification under this
Section.  The Custodian shall in no case confess any claim or make any
compromise in any case in which the Trust will be asked to indemnify the
Custodian except with the Trust's prior written consent.

      Notwithstanding the foregoing, the responsibility of the Custodian
with respect to redemptions effected by check shall be in accordance with a
separate Agreement entered into between the Custodian and the Trust.

      If the Trust requires the Custodian to take any action with respect to
securities, which action involves the payment of money or which action may,
in the reasonable opinion of the Custodian, result in the Custodian or its
nominee assigned to a Fund being liable for the payment of money or
incurring liability of some other form, the Custodian may request the Trust,
as a prerequisite to requiring the Custodian to take such action, to provide
indemnity to the Custodian in an amount and form satisfactory to the
Custodian.

      Subject to the limitations set forth in Section 15 hereof, the Trust
agrees to indemnify and hold harmless the Custodian and its nominee from and
against all taxes, charges, expenses, assessments, claims and liabilities
(including counsel fees) (referred to herein as authorized charges) incurred
or assessed against it or its nominee in connection with the performance of
this Contract, except such as may arise from it or its nominee's own failure
to act in accordance with the standard of reasonable care or any higher
standard of care which would be imposed upon the Custodian by any applicable
law or regulation if such above-stated standard of reasonable care were not
part of this Contract.  To secure any authorized charges and any advances of
cash or securities made by the Custodian to or for the benefit of a Fund for
any purpose which results in the Fund incurring an overdraft at the end of
any business day or for extraordinary or emergency purposes during any
business day, the Trust hereby grants to the Custodian a security interest
in and pledges to the Custodian securities held for the Fund by the
Custodian, in an amount not to exceed 10 percent of the Fund's gross assets,
the specific securities to be designated in writing from time to time by the
Trust or the Fund's  investment adviser.  Should the Trust fail to make such
designation, or should it instruct the Custodian to make advances exceeding
the percentage amount set forth above and should the Custodian do so, the
Trust hereby agrees that the Custodian shall have a security interest in all
securities or other property purchased for a Fund with the advances by the
Custodian, which securities or property shall be deemed to be pledged to the
Custodian, and the written instructions of the Trust instructing their
purchase shall be considered the requisite description and designation of
the property so pledged for purposes of the requirements of the Uniform
Commercial Code.  Should the Trust fail to cause a Fund to repay promptly
any authorized charges or advances of cash or securities, subject to the
provision of the second paragraph of this Section 8 regarding
indemnification, the Custodian shall be entitled to use available cash and
to dispose of pledged securities and property as is necessary to repay any
such advances.

9.    Effective Period, Termination and Amendment.

      This Contract shall become effective as of its execution, shall
continue in full force and effect until terminated as hereinafter provided,
may be amended at any time by mutual agreement of the parties hereto and may
be terminated by either party by an instrument in writing delivered or
mailed, postage prepaid to the other party, such termination to take effect
not sooner than sixty (60) days after the date of such delivery or mailing;
provided, however that the Custodian shall not act under Section 2.12 hereof
in the absence of receipt of an initial certificate of the Secretary or an
Assistant Secretary that the Board of the Trust has approved the initial use
of a particular Securities System as required in each case by Rule 17f-4
under the Investment Company Act of 1940, as amended; provided further,
however, that the Trust shall not amend or terminate this Contract in
contravention of any applicable federal or state regulations, or any
provision of the Declaration of Trust, and further provided, that the Trust
may at any time by action of its Board (i) substitute another bank or trust
company for the Custodian by giving notice as described above to the
Custodian, or (ii) immediately terminate this Contract in the event of the
appointment of a conservator or receiver for the Custodian by the
Comptroller of the Currency or upon the happening of a like event at the
direction of an appropriate regulatory agency or court of competent
jurisdiction.

      Upon termination of the Contract, the Trust shall pay to the Custodian
such compensation as may be due as of the date of such termination and shall
likewise reimburse the Custodian for its costs, expenses and disbursements.

10.   Successor Custodian.

      If a successor custodian shall be appointed by the Board of the Trust,
the Custodian shall, upon termination, deliver to such successor custodian
at the office of the Custodian, duly endorsed and in the form for transfer,
all securities then held by it hereunder for each Fund and shall transfer to
separate accounts of the successor custodian all of each Fund's securities
held in a Securities System.

      If no such successor custodian shall be appointed, the Custodian
shall, in like manner, upon receipt of a certified copy of a vote of the
Board of the Trust, deliver at the office of the Custodian and transfer such
securities, funds and other properties in accordance with such vote.

      In the event that no written order designating a successor custodian
or certified copy of a vote of the Board shall have been delivered to the
Custodian on or before the date when such termination shall become
effective, then the Custodian shall have the right to deliver to a bank or
trust company, which is a "bank" as defined in the 1940 Act, doing business
in Boston, Massachusetts, of its own selection, having an aggregate capital,
surplus, and undivided profits, as shown by its last published report, of
not less than $100,000,000, all securities, funds and other properties held
by the Custodian and all instruments held by the Custodian relative thereto
and all other property held by it under this Contract for each Fund and to
transfer to separate  accounts of such successor custodian all of each
Fund's securities held in any Securities System.  Thereafter, such bank or
trust company shall be the successor of the Custodian under this Contract.

      In the event that securities, funds and other properties remain in the
possession of the Custodian after the date of termination hereof owing to
failure of the Trust to procure the certified copy of the vote referred to
or of the Board to appoint a successor custodian, the Custodian shall be
entitled to fair compensation for its services during such period as the
Custodian retains possession of such securities, funds and other properties
and the provisions of this Contract relating to the duties and obligations
of the Custodian shall remain in full force and effect.

11.   Interpretive and Additional Provisions.

      In connection with the operation of this Contract, the Custodian and
the Trust may from time to time agree on such provisions interpretive of or
in addition to the provisions of this Contract as may in their joint opinion
be consistent with the general tenor of this Contract.  Any such
interpretive or additional provisions shall be in a writing signed by both
parties and shall be annexed hereto, provided that no such interpretive or
additional provisions shall contravene any applicable federal or state
regulations or any provision of the Declaration of Trust.  No interpretive
or additional provisions made as provided in the preceding sentence shall be
deemed to be an amendment of this Contract.

12.   Massachusetts Law to Apply.

      This Contract shall be construed and the provisions thereof
interpreted under and in accordance with laws of The Commonwealth of
Massachusetts.

13.   Notices.

      Except as otherwise specifically provided herein, Notices and other
writings delivered or mailed postage prepaid to the Trust at Federated
Investors Tower, Pittsburgh, Pennsylvania, 15222-3779, or to the Custodian
at:  225 Franklin Street, Boston, Massachusetts, 02110, or to such other
address as the Trust or the Custodian may hereafter specify, shall be deemed
to have been properly delivered or given hereunder to the respective
address.

14.   Counterparts.

      This Contract may be executed simultaneously in two or more
counterparts, each of which shall be deemed an original.

15.   Limitations of Liability.

      The Custodian is expressly put on notice of the limitation of
liability as set forth in Article XI of the Declaration of Trust and agrees
that the obligations and liabilities assumed by the Trust and any Fund
pursuant to this Contract, including, without limitation, any obligation or
liability to indemnify the Custodian pursuant to Section 8 hereof, shall be
limited in any case to the relevant Fund and its assets and that the
Custodian shall not seek satisfaction of any such obligation from the
shareholders of the relevant Fund, from any other Fund or its shareholders
or from the Trustees, Officers, employees or agents of the Trust, or any of
them.  In addition, in connection with the discharge and satisfaction of any
claim made by the Custodian against the Trust, for whatever reasons,
involving more than one Fund, the Trust shall have the exclusive right to
determine the appropriate allocations of liability for any such claim
between or among the Funds.

      IN WITNESS WHEREOF, each of the parties has caused this instrument to
be executed in its name and behalf by its duly authorized representative and
its seal to be hereunder affixed as of the 1st day of October, 1992.

ATTEST:                                 TRUST FOR GOVERNMENT CASH RESERVES

/s/S. Elliott Cohan                     By /s/John W. McGonigle
Assistant Secretary                        Vice President


ATTEST                                  STATE STREET BANK AND TRUST COMPANY


/s/Claire E. Radowicz                   By /s/Ronald E. Logue
Assistant Secretary                        Senior Vice President


                                      Exhibit 9 under Form N-1A
                                      Exhibit 10 under Item 601/Reg. S-K

                    TRANSFER AGENCY AND SERVICE AGREEMENT


     AGREEMENT made as of the 1st day of December, 1992, by and between
TRUST FOR SHORT-TERM U.S. GOVERNMENT SECURITIES, a Massachusetts business
trust, having its principal office and place of business at Federated
Investors Tower, Pittsburgh, PA  15222-3779 (the "Trust"), on behalf of the
portfolios (individually referred to herein as a "Fund" and collectively as
"Funds") of the Trust, and STATE STREET BANK AND TRUST COMPANY, a
Massachusetts trust company having its principal office and place of business
at 225 Franklin Street, Boston, Massachusetts 02110 (the "Company").

     WHEREAS, the Trust is registered as an open-end management investment
company under the Investment Company Act of 1940, as amended
(the "1940 Act"), with authorized and issued shares of beneficial interest
("Shares"); and

     WHEREAS, the Trust desires to appoint the Company as its transfer agent,
dividend disbursing agent, and agent in connection with certain other
activities, and the Company desires to accept such appointment; and

     WHEREAS, from time to time the Trust may desire and may instruct the
Company to subcontract for the performance of its duties and responsibilities
hereunder with Federated Services Company or another agent (the "Agent");

     NOW THEREFORE, in consideration of the promises and mutual covenants
herein contained, the parties hereto agree as follows:

SECTION ONE:  Fund Accounting.
Article 1.  Reserved.
Article 2.  Reserved.
Article 3.  Reserved.

SECTION TWO:  Shareholder Recordkeeping.

Article 4.  Terms of Appointment.

     Subject to the terms and conditions set forth in this Agreement, the
Trust hereby employs and appoints the Company to act as, and the Company
agrees to act as, transfer agent for each Fund's Shares, dividend disbursing
agent, and agent in connection with any accumulation, open-account or similar
plans provided to the shareholders of any Fund ("Shareholders"), including
without limitation any periodic investment plan or periodic withdrawal
program.

     Proper Instructions as used throughout Section Two of this Agreement
means a writing signed or initialed by one or more person or persons as the
Board shall have from time to time authorized.  Each such writing shall set
forth the specific transaction or type of transaction involved.  Oral
instructions will be considered Proper Instructions if the Company reasonably
believes them to have been given by a person previously authorized in Proper
Instructions to give such instructions with respect to the transaction
involved.  The Trust and the Company shall cause all oral instructions to be
confirmed in writing.  Proper Instructions may include communications
effected directly between electro-mechanical or electronic devices provided
that the Trust and the Company are satisfied that such procedures afford
adequate safeguards for a Fund's assets.  Proper Instructions may only be
amended in writing.

Article 5.  Duties of the Company.

     The Company agrees that it will perform the following services in
accordance with Proper Instructions as may be provided from time to time by
the Trust as to any Fund:

     A.  Purchases

         (1)  The Company shall receive orders and payment for the purchase
              of shares and promptly deliver payment and appropriate
              documentation therefore to the custodian of the relevant Fund,
              (the "Custodian").  The Company shall notify the Trust and the
              Custodian on a daily basis of the total amount of orders and
              payments so delivered.

         (2)  Pursuant to purchase orders and in accordance with the Fund's
              current Prospectus, the Company shall compute and issue the
              appropriate number of shares and hold such shares in the
              appropriate Shareholder accounts.

         (3)  If a Shareholder or its agent requests a certificate, the
              Company, as Transfer Agent, shall countersign and mail by first
              class mail, a certificate to the Shareholder at his address as
              set forth on the transfer books of the Fund, subject to any
              Proper Instructions regarding the delivery of certificates.

         (4)  In the event that any check or other order for the purchase of
              Shares of the Fund is returned unpaid for any reason, the
              Company shall debit the Share account of the Shareholder by the
              number of Shares that had been credited to his account upon
              receipt of the check or other order, promptly mail a debit
              advice to the Shareholder, and notify the Trust of its action.
              In the event that the amount paid for such Shares exceeds
              proceeds of the redemption of such Shares plus the amount of
              any dividends paid with respect to such Shares, the Company
              will receive reimbursement of such excess from the Fund or its
              distributor.

     B.  Distribution

         (1)  Upon notification by the Trust of the declaration of any
              distribution to shareholders, the Company shall act as Dividend
              Disbursing Agent for the Fund in accordance with the provisions
              of its governing document and the then current Prospectus of
              the Fund and as such shall prepare and mail or credit income,
              capital gain, or any other payments to Shareholders.  As the
              Dividend Disbursing Agent, the Company shall, on or before the
              payment date of any such distribution, notify the Custodian of
              the estimated amount required to pay any portion of said
              distribution which is payable in cash and request the Custodian
              to make available sufficient funds for the cash amount to be
              paid out.  The Company shall reconcile the amounts so requested
              and the amounts actually received with the Custodian on a daily
              basis.  If a Shareholder is entitled to receive additional
              Shares by virtue of any such distribution or dividend,
              appropriate credits shall be made to the Shareholder's account
              and certificates delivered where requested; and

         (2)  The Company shall maintain records of account for each Fund and
              advise the Trust and its Shareholders as to the foregoing.

     C.  Redemptions and Transfers

         (1)  The Company shall receive redemption requests and redemption
              directions and, if such redemption requests comply with the
              procedures as may be described in the Fund Prospectus or set
              forth in Proper Instructions, deliver the appropriate
              instructions therefore to the Custodian.  The Company shall
              notify the Trust on a daily basis of the total amount of
              redemption requests processed and monies paid to the Company by
              the Custodian for redemptions.

         (2)  At the appropriate time as and when it receives monies paid to
              it by the Custodian with respect to any redemption, the Company
              shall pay over or cause to be paid over in the appropriate
              manner such monies as instructed by the redeeming Shareholders,
              pursuant to procedures described in the then current Prospectus
              of the Fund.

         (3)  If any such certificate or request for redemption does not
              comply with the procedures for redemption approved by the
              Trust, the Company shall promptly notify the Shareholder and
              the Trust of such fact, together with the reason therefor, and
              shall effect such redemption at the price applicable to the
              date and time of receipt of documents complying with said
              procedures.

         (4)  The Company shall effect transfers of Shares by the registered
              owners thereof.

         (5)  The Company shall identify and process abandoned accounts and
              uncashed checks for state escheat requirements on an annual
              basis and report such actions to the Trust.

     D.  Recordkeeping

         (1)  The Company shall record the issuance of shares of the Fund and
              maintain pursuant to applicable rules of the Securities and
              Exchange Commission ("SEC") a record of the total number of
              shares of the Fund which are authorized, based upon data
              provided to it by the Trust, and issued and outstanding.  The
              Company shall also provide the Trust on a regular basis or upon
              reasonable request with the total number of Shares which are
              authorized and issued and outstanding, but shall have no
              obligation when recording the issuance of Shares, except as
              otherwise set forth herein, to monitor the issuance of such
              shares or to take cognizance of any laws relating to the issue
              or sale of such Shares, which functions shall be the sole
              responsibility of the Trust.

         (2)  The Company shall establish and maintain records pursuant to
              applicable rules of the SEC relating to the services to be
              performed hereunder in the form and manner as agreed to by the
              Trust to include a record for each Shareholder's account of the
              following:

              (a)  Name, address and tax identifying number (and whether such
                   number has been certified);

              (b)  Number of Shares held;

              (c)  Historical information regarding the account, including
                   dividends paid and date and price for all transactions;

              (d)  Any stop or restraining order placed against the account;

              (e)  Information with respect to withholdings in the case of a
                   foreign account or an account for which withholding is
                   required by the Internal Revenue Code;

              (f)  Any dividend reinvestment order, plan application,
                   dividend address and correspondence relating to the
                   current maintenance of the account;

              (g)  Certificate numbers and denominations for any Shareholder
                   holding certificates;

              (h)  Any information required in order for the Company to
                   perform the calculations contemplated or required by this
                   Agreement.

         (3)  The Company shall preserve any such records required to be
              maintained pursuant to the rules of the SEC for the periods
              prescribed in said rules as specifically noted below.  Such
              record retention shall be at the expense of the Fund, and such
              records may be inspected by the Trust at reasonable times.  The
              Company may, at its option at any time, and shall forthwith
              upon the Trust's demand, turn over to the Trust and cease to
              retain in the Company's files, records and documents created
              and maintained by the Company pursuant to this Agreement, which
              are no longer needed by the Company in performance of its
              services or for its protection.  If not so turned over to the
              Trust, such records and documents will be retained by the
              Company for six years from the year of creation, during the
              first two of which such documents will be in readily accessible
              form.  At the end of the six year period, such records and
              documents will either be turned over to the Trust or destroyed
              in accordance with Proper Instructions.

     E.  Confirmations/Reports

         (1)  The Company shall furnish to the Trust periodically the
              following information:

              (a)  A copy of the transaction register;

              (b)  Dividend and reinvestment blotters;

              (c)  The total number of Shares issued and outstanding in each
                   state for "blue sky" purposes as determined according to
                   Proper Instructions delivered from time to time by the
                   Trust to the Company;

              (d)  Shareholder lists and statistical information;

              (e)  Payments to third parties relating to distribution
                   agreements, allocations of sales loads, redemption fees,
                   or other transaction- or sales-related payments;

              (f)  Such other information as may be agreed upon from time to
                   time.

         (2)  The Company shall prepare in the appropriate form, file with
              the Internal Revenue Service and appropriate state agencies,
              and, if required, mail to Shareholders, such notices for
              reporting dividends and distributions paid as are required to
              be so filed and mailed and shall withhold such sums as are
              required to be withheld under applicable federal and state
              income tax laws, rules and regulations.

         (3)  In addition to and not in lieu of the services set forth above,
              the Company shall:

              (a)  Perform all of the customary services of a transfer agent,
                   dividend disbursing agent and, as relevant, agent in
                   connection with accumulation, open-account or similar
                   plans (including without limitation any periodic
                   investment plan or periodic withdrawal program), including
                   but not limited to:  maintaining all Shareholder accounts,
                   mailing Shareholder reports and Prospectuses to current
                   Shareholders, withholding taxes on accounts subject to
                   back-up or other withholding (including non-resident alien
                   accounts), preparing and filing reports on U.S. Treasury
                   Department Form 1099 and other appropriate forms required
                   with respect to dividends and distributions by federal
                   authorities for all Shareholders, preparing and mailing
                   confirmation forms and statements of account to
                   Shareholders for all purchases and redemptions of Shares
                   and other confirmable transactions in Shareholder
                   accounts, preparing and mailing activity statements for
                   Shareholders, and providing Shareholder account
                   information; and

              (b)  provide a system which will enable the Trust to monitor
                   the total number of Shares of each Fund sold in each state
                   ("blue sky reporting").  The Trust shall by Proper
                   Instructions (i) identify to the Company those
                   transactions and assets to be treated as exempt from the
                   blue sky reporting for each state and (ii) verify the
                   classification of transactions for each state on the
                   system prior to activation and thereafter monitor the
                   daily activity for each state.  The responsibility of the
                   Company for each Fund's state blue sky registration status
                   is limited solely to the recording of the initial
                   classification of transactions or accounts with regard to
                   blue sky compliance and the reporting of such transactions
                   and accounts to the Trust as provided above.

     F.  Other Duties

         (1)  The Company shall answer correspondence from Shareholders
              relating to their Share accounts and such other correspondence
              as may from time to time be addressed to the Company;

         (2)  The Company shall prepare Shareholder meeting lists, mail proxy
              cards and other material supplied to it by the Trust in
              connection with Shareholder Meetings of each Fund;  receive,
              examine and tabulate returned proxies; and certify the vote of
              the Shareholders;

         (3)  The Company shall establish and maintain facilities and
              procedures for safekeeping of stock certificates, check forms
              and facsimile signature imprinting devices, if any; and for the
              preparation or use, and for keeping account of, such
              certificates, forms and devices.

Article 6.  Duties of the Trust.

     A.  Compliance

         The Trust assumes full responsibility for the preparation, contents
         and distribution of each Prospectus of the Fund and for complying
         with all applicable requirements of the Securities Act of 1933, as
         amended, the 1940 Act and any laws, rules and regulations of
         government authorities having jurisdiction.

     B.  Share Certificates

         The Trust shall supply the Company with a sufficient supply of blank
         Share certificates and from time to time shall renew such supply
         upon request of the Company.  Such blank Share certificates shall be
         properly signed, manually or by facsimile, if authorized by the
         Trust and shall bear the seal of the Trust or facsimile thereof; and
         notwithstanding the death, resignation or removal of any officer of
         the Trust authorized to sign certificates, the Company may continue
         to countersign certificates which bear the manual or facsimile
         signature of such officer until otherwise directed by the Trust.

     C.  Distributions

         The Trust shall promptly inform the Company of the declaration of
         any dividend or distribution on account of any Fund's shares.

Article 7.  Fees and Expenses.

     A.  Annual Fee

         For performance by the Company pursuant to Section Two of this
         Agreement, the Trust agrees to pay the Company an annual maintenance
         fee for each Shareholder account as set out in the fee schedule,
         attached hereto.  Such fees may be changed from time to time subject
         to mutual written agreement between the Trust and the Company.

     B.  Reimbursements

         In addition to the fee paid under Article 7A above, the Trust agrees
         to reimburse the Company for out-of-pocket expenses or advances
         incurred by the Company for the items set out in attached hereto.
         In addition, any other expenses incurred by the Company at the
         request or with the consent of the Trust, will be reimbursed by the
         appropriate Fund.

     C.  Payment

         The Company shall issue billing notices with respect to fees and
         reimbursable expenses on a timely basis, generally within 15 days
         following the end of the month in which the fees and expenses have
         been incurred.  The Trust agrees to pay all fees and reimbursable
         expenses within 30 days following the receipt of the respective
         billing notices.

Article 8.  Assignment of Shareholder Recordkeeping.

         Except as provided below, neither this Agreement nor any rights or
         obligations hereunder may be assigned by either party without the
         written consent of the other party.

         (1)  This Agreement shall inure to the benefit of and be binding
              upon the parties and their respective permitted successors and
              assigns.

         (2)  The Company may without further consent on the part of the
              Trust subcontract for the performance hereof with (A) Boston
              Financial Data Services, Inc., a Massachusetts Trust ("BFDS"),
              which is duly registered as a transfer agent pursuant to
              Section 17A(c)(1) of the Securities Exchange Act of 1934, as
              amended, or any succeeding statute ("Section 17A(c)(1)"), or
              (B) a BFDS subsidiary duly registered as a transfer agent
              pursuant to Section 17A(c)(1), or (C) a BFDS affiliate;
              provided, however, that the Company shall be as fully
              responsible to the Trust for the acts and omissions of any
              subcontractor as it is for its own acts and omissions; or

         (3)  The Company may without further instruction or consent on the
              part of the Trust subcontract for the performance hereof with
              Federated Services Company, with offices at Federated Investors
              Tower, Pittsburgh, Pennsylvania 15222-3779, which is duly
              registered as a transfer agent pursuant to Section 17A(c)(1) or
              any succeeding statutes; provided, however, that the Company
              shall in no way be responsible to the Trust for the acts and
              omissions of Federated Services Company; or

         (4)  The Company shall upon instruction from the Trust subcontract
              for the performance hereof with an Agent, other than Federated
              Services Company or BFDS as described in (2) above, which is
              duly registered as a transfer agent pursuant to Section
              17A(c)(1) or any succeeding statutes; provided, however, that
              the Company shall in no way be responsible to the Trust for the
              acts and omissions of the Agent.


SECTION THREE:  General Provisions.

Article 9.  Documents.

     A.  In connection with the appointment of the Company under this
Agreement, the Trust shall file with the Company the following documents:

         (1)  A copy of the Declaration of Trust and By-Laws of the Trust and
              all amendments thereto;

         (2)  A copy of the resolution of the Board of the Trust authorizing
              this Agreement;

         (3)  Specimens of all forms of outstanding Share certificates of the
              Funds in the forms approved by the Board of the Trust with a
              certificate of the Secretary of the Trust as to such approval;

         (4)  All account application forms and other documents relating to
              Shareholders accounts; and

         (5)  A copy of the current Prospectus for each fund.

     B.  The Trust will also furnish from time to time the following
documents:

         (1)  Each resolution of the Board of the Trust authorizing the
              original issuance of each Fund's Shares;

         (2)  Each Registration Statement filed with the SEC and amendments
              thereof and orders relating thereto in effect with respect to
              the sale of Shares of any Fund;

         (3)  A certified copy of each amendment to the governing document
              and the By-Laws of the Trust;

         (4)  Certified copies of each vote of the Board authorizing officers
              to give Proper Instructions to the Transfer Agent;

         (5)  Specimens of all new Share certificates representing Shares of
              any Fund, accompanied by Board resolutions approving such
              forms;

         (6)  Such other certificates, documents or opinions which the
              Company may, in its discretion, deem necessary or appropriate
              in the proper performance of its duties; and

         (7)  Revisions to the Prospectus of any Fund.

Article 10.  Representations and Warranties.

     A.  Representations and Warranties of the Company

         The Company represents and warrants to the Trust that:

         (1)  It is a trust company duly organized and existing and in good
              standing under the laws of the Commonwealth of Massachusetts.

         (2)  It is duly qualified to carry on its business in the
              Commonwealth of Massachusetts.

         (3)  It is empowered under applicable laws and by its charter and
              by-laws to enter into and perform this Agreement.

         (4)  All requisite corporate proceedings have been taken to
              authorize it to enter into and perform this Agreement.

         (5)  It has and will continue to have access to the necessary
              facilities, equipment and personnel to perform its duties and
              obligations under this Agreement.

         (6)  It is in compliance with federal securities law requirements
              and in good standing as a transfer agent.

     B.  Representations and Warranties of the Trust

         The Trust represents and warrants to the Company that:

         (1)  It is a business trust duly organized and existing and in good
              standing under the laws of the Commonwealth of Massachusetts.

         (2)  It is empowered under applicable laws and by its Declaration of
              Trust and By-Laws to enter into and perform this Agreement.

         (3)  All corporate proceedings required by said Declaration of Trust
              and By-Laws have been taken to authorize it to enter into and
              perform this Agreement.

         (4)  The Trust is an open-end investment company registered under
              the 1940 Act.

         (5)  A registration statement under the Securities Act of 1933 will
              be effective, and appropriate state securities law filings have
              been made and will continue to be made, with respect to all
              Shares of each Fund being offered for sale.

Article 11.  Standard of Care/Indemnification.

     A.  Standard of Care

         The Company shall be held to a standard of reasonable care in
         carrying out the provisions of this Agreement; provided, however
         that the Company shall be held to any higher standard of care which
         would be imposed upon the Company by any applicable law or
         regulation even though such stated standard of care was not part of
         this Agreement.

     B.  Indemnification by Trust

         The Company shall not be responsible for and the Trust shall
         indemnify and hold the Company harmless against any and all losses,
         damages, costs, charges, counsel fees, payments, expenses and
         liabilities arising out of or attributable to:

         (1)  The Trust's refusal or failure to comply with the terms of this
              Agreement, or which arise out of the Trust's lack of good
              faith, negligence or willful misconduct or which arise out of
              the breach of any representation or warranty of the Trust
              hereunder.

         (2)  The reliance on or use by the Company or its agents or
              subcontractors of information, records and documents in proper
              form which

              (a)  are received by the Company or its agents or
                   subcontractors and furnished to it by or on behalf of the
                   Trust, its shareholders or investors regarding the
                   purchase, redemption or transfer of shares and shareholder
                   account information, or

              (b)  have been prepared and/or maintained by the Trust or its
                   affiliates or any other person or firm on behalf of the
                   Trust.

         (3)  The reliance on, or the carrying out by the Company or its
              agents or subcontractors of Proper Instructions of the Trust.

         (4)  The offer or sale of Shares in violation of any requirement
              under the federal securities laws or regulations or the
              securities laws or regulations of any state that such Shares be
              registered in such state or in violation of any stop order or
              other determination or ruling by any federal agency or any
              state with respect to the offer or sale of such Shares in such
              state.

         Provided, however, that the Company shall not be protected by this
         Article 11.B. from liability for any act or omission resulting from
         the Company's lack of good faith, negligence, willful misconduct, or
         failure to meet the standard of care set forth in Article 11.A.,
         above.

     C.  Indemnification by the Company

         The Company shall indemnify and hold each Fund harmless from and
         against any and all losses, damages, costs, charges, counsel fees,
         payments, expenses and liabilities arising out of or attributable to
         any action or failure or omission to act by the Company as a result
         of the Company's lack of good faith, negligence, willful misconduct,
         or failure to meet the standard of care set forth in Article 11.A
         above.

     D.  Reliance

         At any time the Company may apply to any officer of the Trust for
         instructions, and may consult with legal counsel with respect to any
         matter arising in connection with the services to be performed by
         the Company under this Agreement, and the Company and its agents or
         subcontractors shall not be liable and shall be indemnified by the
         appropriate Fund for any action reasonably taken or omitted by it in
         reliance upon such instructions or upon the opinion of such counsel
         provided such action is not in violation of applicable Federal or
         state laws or regulations.  The Company, its agents and
         subcontractors shall be protected and indemnified in recognizing
         stock certificates which are reasonably believed to bear the proper
         manual or facsimile signatures of the officers of the Trust, and the
         proper countersignature of any former transfer agent or registrar,
         or of a co-transfer agent or co-registrar.

     E.  Notification

         In order that the indemnification provisions contained in this
         Article 11 shall apply, upon the assertion of a claim for which
         either party may be required to indemnify the other, the party
         seeking indemnification shall promptly notify the other party of
         such assertion, and shall keep the other party advised with respect
         to all developments concerning such claim.  The party who may be
         required to indemnify shall have the option to participate with the
         party seeking indemnification in the defense of such claim.  The
         party seeking indemnification shall in no case confess any claim or
         make any compromise in any case in which the other party may be
         required to indemnify it except with the other party's prior written
         consent.

Article 12.  Termination of Agreement.

     This Agreement may be terminated by either party upon one hundred twenty
(120) days written notice to the other.  Should the Trust exercise its rights
to terminate, all out-of-pocket expenses associated with the movement of
records and materials will be borne by the appropriate Fund.  Additionally,
the Company reserves the right to charge for any other reasonable expenses
associated with such termination.

Article 13.  Amendment.

     This Agreement may be amended or modified by a written agreement
executed by both parties.

Article 14.  Reserved.

Article 15.  Governing Law.  Massachusetts Law to Apply

     This Agreement shall be construed and the provisions hereof interpreted
under and in accordance with the laws of the Commonwealth of Massachusetts.

Article 16.  Reserved

Article 17.  Reserved.

Article 18.  Limitations of Liability of Trustees and Shareholders of the
             Trust.

     The execution and delivery of this Agreement have been authorized by the
Trustees of the Trust and signed by an authorized officer of the Trust,
acting as such, and neither such authorization by such Trustees nor such
execution and delivery by such officer shall be deemed to have been made by
any of them individually or to impose any liability on any of them
personally, and the obligations of this Agreement are not binding upon any of
the Trustees or shareholders of the Trust, but bind only the appropriate
trust property of a Fund or Class as provided in the Declaration of Trust.

Article 19.  Reserved.

Article 20.  Reserved.

Article 21.  Merger of Agreement.

     This Agreement constitutes the entire agreement between the parties
hereto and supersedes any prior agreement with respect to the subject hereof
whether oral or written.

Article 22.  Reserved.

Article 23.  Reserved.

Article 24.  Reserved.

Article 25.  Severability.

     In the event any provision of this Agreement is held illegal, void or
unenforceable, the balance shall remain in effect.

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed in their names and on their behalf under their seals by and through
their duly authorized officers, as of the day and year first above written.


ATTEST:                                 TRUST FOR SHORT-TERM U.S. GOVERNMENT
                                          SECURITIES



/s/S. Elliott Cohan                     By:/s/John W. McGonigle
          Assistant Secretary                            Vice President

ATTEST:                                 STATE STREET BANK AND TRUST COMPANY



/s/M.E. Fox                             By:/s/Ronald E. Logue
          Assistant Secretary                   Executive Vice President


                               Exhibit 18 under Form N-1A
                               Exhibit 99 under Item 601/Reg. 
S-K

                            HOUSTON, HOUSTON & DONNELLY
                            ATTORNEYS AT LAW
                                      2510 CENTRE CITY TOWER
WILLIAM McC. HOUSTON        PITTSBURGH, PA.  15222 
FRED CHALMERS HOUSTON, JR.            __________
THOMAS J. DONNELLY
JOHN F. MECK                (412) 471-5828            FRED CHALMERS HOUSTON
                          FAX (412) 471-0736             (1914 - 1971)
         

MARIO SANTILLI, JR.
THEODORE M. HAMMER

                        January 24, 1994
                                     
                                     
                                     
Trust for Short-Term U.S. Government Securities
Federated Investors Tower
Pittsburgh, PA  15222-3779

Gentlemen:

  As   counsel   to   Trust   for   Short-Term   U.S.   Government   
Securities ("Trust") we have  reviewed Post-effective Amendment  
No. 50 to the Trust's Registration Statement to be filed with the 
Securities and Exchange Commission under  the Securities Act of  
1933 (File No. 2-54929).  The subject  Post-effective Amendment  
will be filed pursuant to Paragraph  (b) of Rule 485 and become  
effective pursuant to said Rule immediately upon filing.

 Our  review  also  included  an  examination  of other  relevant  
portions of the amended 1933  Act Registration Statement of the  
Trust and such other documents  and records deemed appropriate.  
On the  basis  of  this  review  we  are  of  the  opinion that  
Post-effective Amendment  No. 50 does  not  contain disclosures  
which would render it ineligible to become effective pursuant to 
Paragraph (b) of Rule 485.

  We  hereby  consent  to   the  filing  of  this   representation  
letter as a part of the Trust's Registration Statement filed with 
the Securities and Exchange Commission under the Securities Act  
of 1933 and as part of any application or registration statement 
filed under the  Securities Laws  of the  States of  the United  
States.

                                   Very truly yours,

                                   Houston, Houston & Donnelly



                                   By:  /s/ Thomas J. Donnelly   

TJD:smg






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