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<PAGE> PAGE 10
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<PAGE> PAGE 11
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<PAGE> PAGE 13
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<PAGE> PAGE 20
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074 R020400 0
074 R030400 0
074 R040400 185
074 S000400 0
074 T000400 101147
074 U010400 17428
074 U020400 7276
074 V010400 4.09
074 V020400 4.09
074 W000400 0.0000
074 X000400 3916
074 Y000400 0
075 A000400 0
075 B000400 119462
076 000400 0.00
SIGNATURE THOMAS M. REYNOLDS
TITLE CONTROLLER
[ARTICLE] 6
[CIK] 0000091157
[NAME] SMITH BARNEY FUNDS, INC.
[SERIES]
[NUMBER] 1
[NAME] EQUITY INCOME PORTFOLIO, CLASS A
<TABLE>
<S> <C>
[PERIOD-TYPE] YEAR
[FISCAL-YEAR-END] DEC-31-1997
[PERIOD-END] DEC-31-1997
[INVESTMENTS-AT-COST] 781,551,345
[INVESTMENTS-AT-VALUE] 1,093628,877
[RECEIVABLES] 6,904,137
[ASSETS-OTHER] 1,174,106,328
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 1,181,010,465
[PAYABLE-FOR-SECURITIES] 80,477,361
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 15,487,142
[TOTAL-LIABILITIES] 95,964,503
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 772,891,044
[SHARES-COMMON-STOCK] 44,402,107
[SHARES-COMMON-PRIOR] 43,667,865
[ACCUMULATED-NII-CURRENT] 0
[OVERDISTRIBUTION-NII] 2,674,495
[ACCUMULATED-NET-GAINS] 2,751,881
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 312,077,532
[NET-ASSETS] 1,085,045,962
[DIVIDEND-INCOME] 21,201,122
[INTEREST-INCOME] 4,127,189
[OTHER-INCOME] 0
[EXPENSES-NET] 8,732,601
[NET-INVESTMENT-INCOME] 16,595,710
[REALIZED-GAINS-CURRENT] 88,456,915
[APPREC-INCREASE-CURRENT] 126,983,410
[NET-CHANGE-FROM-OPS] 232,036,035
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 1,448,320
[DISTRIBUTIONS-OF-GAINS] 0
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 24,457,765
[NUMBER-OF-SHARES-REDEEMED] 78,829,273
[SHARES-REINVESTED] 67,884,054
[NET-CHANGE-IN-ASSETS] 247,534,296
[ACCUMULATED-NII-PRIOR] 18,225,296
[ACCUMULATED-GAINS-PRIOR] 90,148,657
[OVERDISTRIB-NII-PRIOR] 18,560,723
[OVERDIST-NET-GAINS-PRIOR] 90,678,646
[GROSS-ADVISORY-FEES] 5,536,984
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 5,536,984
[AVERAGE-NET-ASSETS] 716,117,441
[PER-SHARE-NAV-BEGIN] 14.79
[PER-SHARE-NII] 00.29
[PER-SHARE-GAIN-APPREC] 03.80
[PER-SHARE-DIVIDEND] 00.34
[PER-SHARE-DISTRIBUTIONS] 01.45
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 17.09
[EXPENSE-RATIO] 00.92
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
[ARTICLE] 6
[CIK] 0000091157
[NAME] SMITH BARNEY FUNDS, INC.
[SERIES]
[NUMBER] 1
[NAME] EQUITY INCOME PORTFOLIO, CLASS B
<TABLE>
<S> <C>
[PERIOD-TYPE] YEAR
[FISCAL-YEAR-END] DEC-31-1997
[PERIOD-END] DEC-31-1997
[INVESTMENTS-AT-COST] 781,551,345
[INVESTMENTS-AT-VALUE] 1,093628,877
[RECEIVABLES] 6,904,137
[ASSETS-OTHER] 1,174,106,328
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 1,181,010,465
[PAYABLE-FOR-SECURITIES] 80,477,361
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 15,487,142
[TOTAL-LIABILITIES] 95,964,503
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 772,891,044
[SHARES-COMMON-STOCK] 1,675,167
[SHARES-COMMON-PRIOR] 1,009,719
[ACCUMULATED-NII-CURRENT] 0
[OVERDISTRIBUTION-NII] 2,674,495
[ACCUMULATED-NET-GAINS] 2,751,881
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 312,077,532
[NET-ASSETS] 1,085,045,962
[DIVIDEND-INCOME] 21,201,122
[INTEREST-INCOME] 4,127,189
[OTHER-INCOME] 0
[EXPENSES-NET] 8,732,601
[NET-INVESTMENT-INCOME] 16,595,710
[REALIZED-GAINS-CURRENT] 88,456,915
[APPREC-INCREASE-CURRENT] 126,983,410
[NET-CHANGE-FROM-OPS] 232,036,035
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 78,251
[DISTRIBUTIONS-OF-GAINS] 0
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 12,514,579
[NUMBER-OF-SHARES-REDEEMED] 3,394,313
[SHARES-REINVESTED] 2,316,326
[NET-CHANGE-IN-ASSETS] 247,534,296
[ACCUMULATED-NII-PRIOR] 18,225,296
[ACCUMULATED-GAINS-PRIOR] 90,148,657
[OVERDISTRIB-NII-PRIOR] 18,560,723
[OVERDIST-NET-GAINS-PRIOR] 90,678,646
[GROSS-ADVISORY-FEES] 5,536,984
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 5,536,984
[AVERAGE-NET-ASSETS] 21,305,573
[PER-SHARE-NAV-BEGIN] 14.74
[PER-SHARE-NII] 00.17
[PER-SHARE-GAIN-APPREC] 03.77
[PER-SHARE-DIVIDEND] 00.20
[PER-SHARE-DISTRIBUTIONS] 01.45
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 17.03
[EXPENSE-RATIO] 01.71
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
[ARTICLE] 6
[CIK] 0000091157
[NAME] SMITH BARNEY FUNDS, INC.
[SERIES]
[NUMBER] 1
[NAME] EQUITY INCOME PORTFOLIO, CLASS C
<TABLE>
<S> <C>
[PERIOD-TYPE] YEAR
[FISCAL-YEAR-END] DEC-31-1997
[PERIOD-END] DEC-31-1997
[INVESTMENTS-AT-COST] 781,551,345
[INVESTMENTS-AT-VALUE] 1,093628,877
[RECEIVABLES] 6,904,137
[ASSETS-OTHER] 1,174,106,328
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 1,181,010,465
[PAYABLE-FOR-SECURITIES] 80,477,361
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 15,487,142
[TOTAL-LIABILITIES] 95,964,503
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 772,891,044
[SHARES-COMMON-STOCK] 2,469,984
[SHARES-COMMON-PRIOR] 2,260,077
[ACCUMULATED-NII-CURRENT] 0
[OVERDISTRIBUTION-NII] 2,674,495
[ACCUMULATED-NET-GAINS] 2,751,881
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 312,077,532
[NET-ASSETS] 1,085,045,962
[DIVIDEND-INCOME] 21,201,122
[INTEREST-INCOME] 4,127,189
[OTHER-INCOME] 0
[EXPENSES-NET] 8,732,601
[NET-INVESTMENT-INCOME] 16,595,710
[REALIZED-GAINS-CURRENT] 88,456,915
[APPREC-INCREASE-CURRENT] 126,983,410
[NET-CHANGE-FROM-OPS] 232,036,035
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 208,100
[DISTRIBUTIONS-OF-GAINS] 0
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 5,556,018
[NUMBER-OF-SHARES-REDEEMED] 5,333,286
[SHARES-REINVESTED] 3,556,014
[NET-CHANGE-IN-ASSETS] 247,534,296
[ACCUMULATED-NII-PRIOR] 18,225,296
[ACCUMULATED-GAINS-PRIOR] 90,148,657
[OVERDISTRIB-NII-PRIOR] 18,560,723
[OVERDIST-NET-GAINS-PRIOR] 90,678,646
[GROSS-ADVISORY-FEES] 5,536,984
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 5,536,984
[AVERAGE-NET-ASSETS] 37,629,500
[PER-SHARE-NAV-BEGIN] 14.76
[PER-SHARE-NII] 00.17
[PER-SHARE-GAIN-APPREC] 03.78
[PER-SHARE-DIVIDEND] 00.21
[PER-SHARE-DISTRIBUTIONS] 01.45
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 17.05
[EXPENSE-RATIO] 01.69
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
[ARTICLE] 6
[CIK] 0000091157
[NAME] SMITH BARNEY FUNDS, INC.
[SERIES]
[NUMBER] 1
[NAME] EQUITY INCOME PORTFOLIO, CLASS Y
<TABLE>
<S> <C>
[PERIOD-TYPE] YEAR
[FISCAL-YEAR-END] DEC-31-1997
[PERIOD-END] DEC-31-1997
[INVESTMENTS-AT-COST] 781,551,345
[INVESTMENTS-AT-VALUE] 1,093628,877
[RECEIVABLES] 6,904,137
[ASSETS-OTHER] 1,174,106,328
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 1,181,010,465
[PAYABLE-FOR-SECURITIES] 80,477,361
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 15,487,142
[TOTAL-LIABILITIES] 95,964,503
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 772,891,044
[SHARES-COMMON-STOCK] 6,535,999
[SHARES-COMMON-PRIOR] 2,038,995
[ACCUMULATED-NII-CURRENT] 0
[OVERDISTRIBUTION-NII] 2,674,495
[ACCUMULATED-NET-GAINS] 2,751,881
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 312,077,532
[NET-ASSETS] 1,085,045,962
[DIVIDEND-INCOME] 21,201,122
[INTEREST-INCOME] 4,127,189
[OTHER-INCOME] 0
[EXPENSES-NET] 8,732,601
[NET-INVESTMENT-INCOME] 16,595,710
[REALIZED-GAINS-CURRENT] 88,456,915
[APPREC-INCREASE-CURRENT] 126,983,410
[NET-CHANGE-FROM-OPS] 232,036,035
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 305,704
[DISTRIBUTIONS-OF-GAINS] 0
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 114,285,256
[NUMBER-OF-SHARES-REDEEMED] 35,361,534
[SHARES-REINVESTED] 0
[NET-CHANGE-IN-ASSETS] 247,534,296
[ACCUMULATED-NII-PRIOR] 18,225,296
[ACCUMULATED-GAINS-PRIOR] 90,148,657
[OVERDISTRIB-NII-PRIOR] 18,560,723
[OVERDIST-NET-GAINS-PRIOR] 90,678,646
[GROSS-ADVISORY-FEES] 5,536,984
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 5,536,984
[AVERAGE-NET-ASSETS] 55,985,257
[PER-SHARE-NAV-BEGIN] 14.80
[PER-SHARE-NII] 00.38
[PER-SHARE-GAIN-APPREC] 03.76
[PER-SHARE-DIVIDEND] 00.40
[PER-SHARE-DISTRIBUTIONS] 01.45
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 17.09
[EXPENSE-RATIO] 00.60
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
[ARTICLE] 6
[CIK] 0000091157
[NAME] SMITH BARNEY FUNDS, INC.
[SERIES]
[NUMBER] 1
[NAME] EQUITY INCOME PORTFOLIO, CLASS Z
<TABLE>
<S> <C>
[PERIOD-TYPE] YEAR
[FISCAL-YEAR-END] DEC-31-1997
[PERIOD-END] DEC-31-1997
[INVESTMENTS-AT-COST] 781,551,345
[INVESTMENTS-AT-VALUE] 1,093628,877
[RECEIVABLES] 6,904,137
[ASSETS-OTHER] 1,174,106,328
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 1,181,010,465
[PAYABLE-FOR-SECURITIES] 80,477,361
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 15,487,142
[TOTAL-LIABILITIES] 95,964,503
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 772,891,044
[SHARES-COMMON-STOCK] 8,413,016
[SHARES-COMMON-PRIOR] 7,634,136
[ACCUMULATED-NII-CURRENT] 0
[OVERDISTRIBUTION-NII] 2,674,495
[ACCUMULATED-NET-GAINS] 2,751,881
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 312,077,532
[NET-ASSETS] 1,085,045,962
[DIVIDEND-INCOME] 21,201,122
[INTEREST-INCOME] 4,127,189
[OTHER-INCOME] 0
[EXPENSES-NET] 8,732,601
[NET-INVESTMENT-INCOME] 16,595,710
[REALIZED-GAINS-CURRENT] 88,456,915
[APPREC-INCREASE-CURRENT] 126,983,410
[NET-CHANGE-FROM-OPS] 232,036,035
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 634,120
[DISTRIBUTIONS-OF-GAINS] 0
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 7,963,435
[NUMBER-OF-SHARES-REDEEMED] 9,278,007
[SHARES-REINVESTED] 14,387,232
[NET-CHANGE-IN-ASSETS] 247,534,296
[ACCUMULATED-NII-PRIOR] 18,225,296
[ACCUMULATED-GAINS-PRIOR] 90,148,657
[OVERDISTRIB-NII-PRIOR] 18,560,723
[OVERDIST-NET-GAINS-PRIOR] 90,678,646
[GROSS-ADVISORY-FEES] 5,536,984
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 5,536,984
[AVERAGE-NET-ASSETS] 132,182,455
[PER-SHARE-NAV-BEGIN] 14.82
[PER-SHARE-NII] 00.35
[PER-SHARE-GAIN-APPREC] 03.80
[PER-SHARE-DIVIDEND] 00.40
[PER-SHARE-DISTRIBUTIONS] 01.45
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 17.12
[EXPENSE-RATIO] 00.60
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
[ARTICLE] 6
[CIK] 0000091157
[NAME] SMITH BARNEY FUNDS, INC.
[SERIES]
[NUMBER] 2
[NAME] U.S. GOVERNMENT SECURITIES PORTFOLIO, CLASS A
<TABLE>
<S> <C>
[PERIOD-TYPE] YEAR
[FISCAL-YEAR-END] DEC-31-1997
[PERIOD-END] DEC-31-1997
[INVESTMENTS-AT-COST] 314,572,661
[INVESTMENTS-AT-VALUE] 320,362,595
[RECEIVABLES] 160,750,191
[ASSETS-OTHER] 801
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 481,113,587
[PAYABLE-FOR-SECURITIES] 154,299,090
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 348,107
[TOTAL-LIABILITIES] 154,647,197
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 322,865,499
[SHARES-COMMON-STOCK] 19,961,936
[SHARES-COMMON-PRIOR] 23,547,951
[ACCUMULATED-NII-CURRENT] 0
[OVERDISTRIBUTION-NII] 291,603
[ACCUMULATED-NET-GAINS] 0
[OVERDISTRIBUTION-GAINS] (111,560)
[ACCUM-APPREC-OR-DEPREC] 5,789,934
[NET-ASSETS] 326,446,390
[DIVIDEND-INCOME] 0
[INTEREST-INCOME] 24,442,469
[OTHER-INCOME] 0
[EXPENSES-NET] 2,791,726
[NET-INVESTMENT-INCOME] 21,650,743
[REALIZED-GAINS-CURRENT] 3,738,506
[APPREC-INCREASE-CURRENT] 5,629,941
[NET-CHANGE-FROM-OPS] 31,019,190
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 18,595,495
[DISTRIBUTIONS-OF-GAINS] 0
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 626,629
[NUMBER-OF-SHARES-REDEEMED] 5,025,018
[SHARES-REINVESTED] 774,295
[NET-CHANGE-IN-ASSETS] (38,969,499)
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] 0
[OVERDISTRIB-NII-PRIOR] 1,628
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 1,571,535
[INTEREST-EXPENSE] 542,073
[GROSS-EXPENSE] 2,113,608
[AVERAGE-NET-ASSETS] 288,478,140
[PER-SHARE-NAV-BEGIN] 13.24
[PER-SHARE-NII] 00.85
[PER-SHARE-GAIN-APPREC] 00.38
[PER-SHARE-DIVIDEND] 0
[PER-SHARE-DISTRIBUTIONS] 00.86
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 13.61
[EXPENSE-RATIO] 00.80
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
[ARTICLE] 6
[CIK] 0000091157
[NAME] SMITH BARNEY FUNDS, INC.
[SERIES]
[NUMBER] 2
[NAME] U.S. GOVERNMENT SECURITIES PORTFOLIO, CLASS B
<TABLE>
<S> <C>
[PERIOD-TYPE] YEAR
[FISCAL-YEAR-END] DEC-31-1997
[PERIOD-END] DEC-31-1997
[INVESTMENTS-AT-COST] 314,572,661
[INVESTMENTS-AT-VALUE] 320,362,595
[RECEIVABLES] 160,750,191
[ASSETS-OTHER] 801
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 481,113,587
[PAYABLE-FOR-SECURITIES] 154,299,090
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 348,107
[TOTAL-LIABILITIES] 154,647,197
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 322,865,499
[SHARES-COMMON-STOCK] 897,819
[SHARES-COMMON-PRIOR] 845,510
[ACCUMULATED-NII-CURRENT] 0
[OVERDISTRIBUTION-NII] 291,603
[ACCUMULATED-NET-GAINS] 0
[OVERDISTRIBUTION-GAINS] (111,560)
[ACCUM-APPREC-OR-DEPREC] 5,789,934
[NET-ASSETS] 326,446,390
[DIVIDEND-INCOME] 0
[INTEREST-INCOME] 24,442,469
[OTHER-INCOME] 0
[EXPENSES-NET] 2,791,726
[NET-INVESTMENT-INCOME] 21,650,743
[REALIZED-GAINS-CURRENT] 3,738,506
[APPREC-INCREASE-CURRENT] 5,629,941
[NET-CHANGE-FROM-OPS] 31,019,190
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 701,875
[DISTRIBUTIONS-OF-GAINS] 0
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 240,448
[NUMBER-OF-SHARES-REDEEMED] 228,379
[SHARES-REINVESTED] 35,494
[NET-CHANGE-IN-ASSETS] (38,969,499)
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] 0
[OVERDISTRIB-NII-PRIOR] 1,628
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 1,571,535
[INTEREST-EXPENSE] 542,073
[GROSS-EXPENSE] 2,113,608
[AVERAGE-NET-ASSETS] 11,749,178
[PER-SHARE-NAV-BEGIN] 13.26
[PER-SHARE-NII] 00.79
[PER-SHARE-GAIN-APPREC] 00.38
[PER-SHARE-DIVIDEND] 0
[PER-SHARE-DISTRIBUTIONS] 00.80
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 13.63
[EXPENSE-RATIO] 01.31
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
[ARTICLE] 6
[CIK] 0000091157
[NAME] SMITH BARNEY FUNDS, INC.
[SERIES]
[NUMBER] 2
[NAME] U.S. GOVERNMENT SECURITIES PORTFOLIO, CLASS C
<TABLE>
<S> <C>
[PERIOD-TYPE] YEAR
[FISCAL-YEAR-END] DEC-31-1997
[PERIOD-END] DEC-31-1997
[INVESTMENTS-AT-COST] 314,572,661
[INVESTMENTS-AT-VALUE] 320,362,595
[RECEIVABLES] 160,750,191
[ASSETS-OTHER] 801
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 481,113,587
[PAYABLE-FOR-SECURITIES] 154,299,090
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 348,107
[TOTAL-LIABILITIES] 154,647,197
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 322,865,499
[SHARES-COMMON-STOCK] 1,063,457
[SHARES-COMMON-PRIOR] 1,303,489
[ACCUMULATED-NII-CURRENT] 0
[OVERDISTRIBUTION-NII] 291,603
[ACCUMULATED-NET-GAINS] 0
[OVERDISTRIBUTION-GAINS] (111,560)
[ACCUM-APPREC-OR-DEPREC] 5,789,934
[NET-ASSETS] 326,446,390
[DIVIDEND-INCOME] 0
[INTEREST-INCOME] 24,442,469
[OTHER-INCOME] 0
[EXPENSES-NET] 2,791,726
[NET-INVESTMENT-INCOME] 21,650,743
[REALIZED-GAINS-CURRENT] 3,738,506
[APPREC-INCREASE-CURRENT] 5,629,941
[NET-CHANGE-FROM-OPS] 31,019,190
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 909,354
[DISTRIBUTIONS-OF-GAINS] 0
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 76,566
[NUMBER-OF-SHARES-REDEEMED] 356,811
[SHARES-REINVESTED] 39,216
[NET-CHANGE-IN-ASSETS] (38,969,499)
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] 0
[OVERDISTRIB-NII-PRIOR] 1,628
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 1,571,535
[INTEREST-EXPENSE] 542,073
[GROSS-EXPENSE] 2,113,608
[AVERAGE-NET-ASSETS] 15,168,821
[PER-SHARE-NAV-BEGIN] 13.23
[PER-SHARE-NII] 00.77
[PER-SHARE-GAIN-APPREC] 00.40
[PER-SHARE-DIVIDEND] 0
[PER-SHARE-DISTRIBUTIONS] 00.80
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 13.60
[EXPENSE-RATIO] 01.27
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
[ARTICLE] 6
[CIK] 0000091157
[NAME] SMITH BARNEY FUNDS, INC.
[SERIES]
[NUMBER] 2
[NAME] U.S. GOVERNMENT SECURITIES PORTFOLIO, CLASS Y
<TABLE>
<S> <C>
[PERIOD-TYPE] YEAR
[FISCAL-YEAR-END] DEC-31-1997
[PERIOD-END] DEC-31-1997
[INVESTMENTS-AT-COST] 314,572,661
[INVESTMENTS-AT-VALUE] 320,362,595
[RECEIVABLES] 160,750,191
[ASSETS-OTHER] 801
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 481,113,587
[PAYABLE-FOR-SECURITIES] 154,299,090
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 348,107
[TOTAL-LIABILITIES] 154,647,197
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 322,865,499
[SHARES-COMMON-STOCK] 379,959
[SHARES-COMMON-PRIOR] 421,238
[ACCUMULATED-NII-CURRENT] 0
[OVERDISTRIBUTION-NII] 291,603
[ACCUMULATED-NET-GAINS] 0
[OVERDISTRIBUTION-GAINS] (111,560)
[ACCUM-APPREC-OR-DEPREC] 5,789,934
[NET-ASSETS] 326,446,390
[DIVIDEND-INCOME] 0
[INTEREST-INCOME] 24,442,469
[OTHER-INCOME] 0
[EXPENSES-NET] 2,791,726
[NET-INVESTMENT-INCOME] 21,650,743
[REALIZED-GAINS-CURRENT] 3,738,506
[APPREC-INCREASE-CURRENT] 5,629,941
[NET-CHANGE-FROM-OPS] 31,019,190
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 360,618
[DISTRIBUTIONS-OF-GAINS] 0
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 3,928
[NUMBER-OF-SHARES-REDEEMED] 50,796
[SHARES-REINVESTED] 5,590
[NET-CHANGE-IN-ASSETS] (38,969,499)
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] 0
[OVERDISTRIB-NII-PRIOR] 1,628
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 1,571,535
[INTEREST-EXPENSE] 542,073
[GROSS-EXPENSE] 2,113,608
[AVERAGE-NET-ASSETS] 5,341,260
[PER-SHARE-NAV-BEGIN] 13.27
[PER-SHARE-NII] 00.88
[PER-SHARE-GAIN-APPREC] 00.39
[PER-SHARE-DIVIDEND] 0
[PER-SHARE-DISTRIBUTIONS] 00.90
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 13.64
[EXPENSE-RATIO] 00.51
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
[ARTICLE] 6
[CIK] 0000091157
[NAME] SMITH BARNEY FUNDS, INC.
[SERIES]
[NUMBER] 2
[NAME] U.S. GOVERNMENT SECURITIES PORTFOLIO, CLASS Z
<TABLE>
<S> <C>
[PERIOD-TYPE] YEAR
[FISCAL-YEAR-END] DEC-31-1997
[PERIOD-END] DEC-31-1997
[INVESTMENTS-AT-COST] 314,572,661
[INVESTMENTS-AT-VALUE] 320,362,595
[RECEIVABLES] 160,750,191
[ASSETS-OTHER] 801
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 481,113,587
[PAYABLE-FOR-SECURITIES] 154,299,090
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 348,107
[TOTAL-LIABILITIES] 154,647,197
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 322,865,499
[SHARES-COMMON-STOCK] 1,674,139
[SHARES-COMMON-PRIOR] 1,471,678
[ACCUMULATED-NII-CURRENT] 0
[OVERDISTRIBUTION-NII] 291,603
[ACCUMULATED-NET-GAINS] 0
[OVERDISTRIBUTION-GAINS] (111,560)
[ACCUM-APPREC-OR-DEPREC] 5,789,934
[NET-ASSETS] 326,446,390
[DIVIDEND-INCOME] 0
[INTEREST-INCOME] 24,442,469
[OTHER-INCOME] 0
[EXPENSES-NET] 2,791,726
[NET-INVESTMENT-INCOME] 21,650,743
[REALIZED-GAINS-CURRENT] 3,738,506
[APPREC-INCREASE-CURRENT] 5,629,941
[NET-CHANGE-FROM-OPS] 31,019,190
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 1,373,376
[DISTRIBUTIONS-OF-GAINS] 0
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 329,314
[NUMBER-OF-SHARES-REDEEMED] 271,212
[SHARES-REINVESTED] 103,114
[NET-CHANGE-IN-ASSETS] (38,969,499)
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] 0
[OVERDISTRIB-NII-PRIOR] 1,628
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 1,571,535
[INTEREST-EXPENSE] 542,073
[GROSS-EXPENSE] 2,113,608
[AVERAGE-NET-ASSETS] 20,246,407
[PER-SHARE-NAV-BEGIN] 13.26
[PER-SHARE-NII] 00.89
[PER-SHARE-GAIN-APPREC] 00.38
[PER-SHARE-DIVIDEND] 0
[PER-SHARE-DISTRIBUTIONS] 00.90
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 13.63
[EXPENSE-RATIO] 00.51
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
[ARTICLE] 6
[CIK] 0000091157
[NAME] SMITH BARNEY FUNDS, INC.
[SERIES]
[NUMBER] 3
[NAME] INCOME RETURN ACCOUNT PORTFOLIO, CLASS A
<TABLE>
<S> <C>
[PERIOD-TYPE] YEAR
[FISCAL-YEAR-END] DEC-05-1997
[PERIOD-END] DEC-05-1997
[INVESTMENTS-AT-COST] 0
[INVESTMENTS-AT-VALUE] 0
[RECEIVABLES] 28,596
[ASSETS-OTHER] 950,338
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 978,734
[PAYABLE-FOR-SECURITIES] 0
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 2,719
[TOTAL-LIABILITIES] 2,719
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 1,740,770
[SHARES-COMMON-STOCK] 102,622
[SHARES-COMMON-PRIOR] 1,576,712
[ACCUMULATED-NII-CURRENT] 0
[OVERDISTRIBUTION-NII] 2,530
[ACCUMULATED-NET-GAINS] 0
[OVERDISTRIBUTION-GAINS] 762,025
[ACCUM-APPREC-OR-DEPREC] 0
[NET-ASSETS] 976,215
[DIVIDEND-INCOME] 0
[INTEREST-INCOME] 291,338
[OTHER-INCOME] 0
[EXPENSES-NET] 45,267
[NET-INVESTMENT-INCOME] 246,071
[REALIZED-GAINS-CURRENT] 3,227
[APPREC-INCREASE-CURRENT] 0
[NET-CHANGE-FROM-OPS] 249,298
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 199,889
[DISTRIBUTIONS-OF-GAINS] 0
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 15,749
[NUMBER-OF-SHARES-REDEEMED] 1,611,234
[SHARES-REINVESTED] 16,587
[NET-CHANGE-IN-ASSETS] (138,703)
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] 0
[OVERDISTRIB-NII-PRIOR] 2,577
[OVERDIST-NET-GAINS-PRIOR] 765,252
[GROSS-ADVISORY-FEES] 23,931
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 45,267
[AVERAGE-NET-ASSETS] 4,587
[PER-SHARE-NAV-BEGIN] 9.48
[PER-SHARE-NII] 0.99
[PER-SHARE-GAIN-APPREC] (0.64)
[PER-SHARE-DIVIDEND] 0.99
[PER-SHARE-DISTRIBUTIONS] 0
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 8.84
[EXPENSE-RATIO] 0.80
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
[ARTICLE] 6
[CIK] 0000091157
[NAME] SMITH BARNEY FUNDS, INC.
[SERIES]
[NUMBER] 3
[NAME] INCOME RETURN ACCOUNT PORTFOLIO, CLASS C
<TABLE>
<S> <C>
[PERIOD-TYPE] YEAR
[FISCAL-YEAR-END] DEC-05-1997
[PERIOD-END] DEC-05-1997
[INVESTMENTS-AT-COST] 0
[INVESTMENTS-AT-VALUE] 0
[RECEIVABLES] 28,596
[ASSETS-OTHER] 950,338
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 978,734
[PAYABLE-FOR-SECURITIES] 0
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 2,719
[TOTAL-LIABILITIES] 2,719
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 1,740,770
[SHARES-COMMON-STOCK] 0
[SHARES-COMMON-PRIOR] 220,454
[ACCUMULATED-NII-CURRENT] 0
[OVERDISTRIBUTION-NII] 2,530
[ACCUMULATED-NET-GAINS] 0
[OVERDISTRIBUTION-GAINS] 762,025
[ACCUM-APPREC-OR-DEPREC] 0
[NET-ASSETS] 976,215
[DIVIDEND-INCOME] 0
[INTEREST-INCOME] 291,338
[OTHER-INCOME] 0
[EXPENSES-NET] 45,267
[NET-INVESTMENT-INCOME] 246,071
[REALIZED-GAINS-CURRENT] 3,227
[APPREC-INCREASE-CURRENT] 0
[NET-CHANGE-FROM-OPS] 249,298
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 12,020
[DISTRIBUTIONS-OF-GAINS] 0
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 105
[NUMBER-OF-SHARES-REDEEMED] 222,830
[SHARES-REINVESTED] 2,270
[NET-CHANGE-IN-ASSETS] (138,703)
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] 0
[OVERDISTRIB-NII-PRIOR] 2,577
[OVERDIST-NET-GAINS-PRIOR] 765,252
[GROSS-ADVISORY-FEES] 23,931
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 45,267
[AVERAGE-NET-ASSETS] 885
[PER-SHARE-NAV-BEGIN] 9.48
[PER-SHARE-NII] 0.97
[PER-SHARE-GAIN-APPREC] (0.64)
[PER-SHARE-DIVIDEND] 0.97
[PER-SHARE-DISTRIBUTIONS] 0
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 8.84
[EXPENSE-RATIO] 1.15
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
[ARTICLE] 6
[CIK] 0000091157
[NAME] SMITH BARNEY FUNDS, INC.
[SERIES]
[NUMBER] 3
[NAME] INCOME RETURN ACCOUNT PORTFOLIO, CLASS Y
<TABLE>
<S> <C>
[PERIOD-TYPE] YEAR
[FISCAL-YEAR-END] DEC-05-1997
[PERIOD-END] DEC-05-1997
[INVESTMENTS-AT-COST] 0
[INVESTMENTS-AT-VALUE] 0
[RECEIVABLES] 28,596
[ASSETS-OTHER] 950,338
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 978,734
[PAYABLE-FOR-SECURITIES] 0
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 2,719
[TOTAL-LIABILITIES] 2,719
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 1,740,770
[SHARES-COMMON-STOCK] 7,922
[SHARES-COMMON-PRIOR] 67,116
[ACCUMULATED-NII-CURRENT] 0
[OVERDISTRIBUTION-NII] 2,530
[ACCUMULATED-NET-GAINS] 0
[OVERDISTRIBUTION-GAINS] 762,025
[ACCUM-APPREC-OR-DEPREC] 0
[NET-ASSETS] 976,215
[DIVIDEND-INCOME] 0
[INTEREST-INCOME] 291,338
[OTHER-INCOME] 0
[EXPENSES-NET] 45,267
[NET-INVESTMENT-INCOME] 246,071
[REALIZED-GAINS-CURRENT] 3,227
[APPREC-INCREASE-CURRENT] 0
[NET-CHANGE-FROM-OPS] 249,298
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 34,115
[DISTRIBUTIONS-OF-GAINS] 0
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 0
[NUMBER-OF-SHARES-REDEEMED] 68,385
[SHARES-REINVESTED] 1,270
[NET-CHANGE-IN-ASSETS] (138,703)
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] 0
[OVERDISTRIB-NII-PRIOR] 2,577
[OVERDIST-NET-GAINS-PRIOR] 765,252
[GROSS-ADVISORY-FEES] 23,931
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 45,267
[AVERAGE-NET-ASSETS] 325
[PER-SHARE-NAV-BEGIN] 0
[PER-SHARE-NII] 0
[PER-SHARE-GAIN-APPREC] 0
[PER-SHARE-DIVIDEND] 0
[PER-SHARE-DISTRIBUTIONS] 0
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 0
[EXPENSE-RATIO] 0
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
[ARTICLE] 6
[CIK] 0000091157
[NAME] SMITH BARNEY FUNDS, INC.
[SERIES]
[NUMBER] 4
[NAME] SHORT-TERM U.S. TREASURY SECURITIES PORTFOLIO, CLASS A
<TABLE>
<S> <C>
[PERIOD-TYPE] YEAR
[FISCAL-YEAR-END] DEC-31-1997
[PERIOD-END] DEC-31-1997
[INVESTMENTS-AT-COST] 99,341,380
[INVESTMENTS-AT-VALUE] 100,087,698
[RECEIVABLES] 1,296,945
[ASSETS-OTHER] 40,466
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 101,425,109
[PAYABLE-FOR-SECURITIES] 0
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 278,269
[TOTAL-LIABILITIES] 278,269
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 107,302,588
[SHARES-COMMON-STOCK] 17,428,313
[SHARES-COMMON-PRIOR] 20,597,691
[ACCUMULATED-NII-CURRENT] 0
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] (6,902,066)
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 746,318
[NET-ASSETS] 101,146,840
[DIVIDEND-INCOME] 0
[INTEREST-INCOME] 7,769,414
[OTHER-INCOME] (10,326)
[EXPENSES-NET] 952,582
[NET-INVESTMENT-INCOME] 6,806,506
[REALIZED-GAINS-CURRENT] 2,141,279
[APPREC-INCREASE-CURRENT] (674,103)
[NET-CHANGE-FROM-OPS] 8,273,682
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 4,302,833
[DISTRIBUTIONS-OF-GAINS] 0
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 6,333,523
[NUMBER-OF-SHARES-REDEEMED] 10,417,386
[SHARES-REINVESTED] 914,485
[NET-CHANGE-IN-ASSETS] (14,291,017)
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] 0
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] (9,043,345)
[GROSS-ADVISORY-FEES] 538,831
[INTEREST-EXPENSE] 10,326
[GROSS-EXPENSE] 549,157
[AVERAGE-NET-ASSETS] 77,739,492
[PER-SHARE-NAV-BEGIN] 4.05
[PER-SHARE-NII] 0.22
[PER-SHARE-GAIN-APPREC] 0.04
[PER-SHARE-DIVIDEND] 0.22
[PER-SHARE-DISTRIBUTIONS] 0
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 4.09
[EXPENSE-RATIO] 0.95
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
[ARTICLE] 6
[CIK] 0000091157
[NAME] SMITH BARNEY FUNDS, INC.
[SERIES]
[NUMBER] 4
[NAME] SHORT-TERM U.S. TREASURY SECURITIES PORTFOLIO, CLASS Y
<TABLE>
<S> <C>
[PERIOD-TYPE] YEAR
[FISCAL-YEAR-END] DEC-31-1997
[PERIOD-END] DEC-31-1997
[INVESTMENTS-AT-COST] 99,341,380
[INVESTMENTS-AT-VALUE] 100,087,698
[RECEIVABLES] 1,296,945
[ASSETS-OTHER] 40,466
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 101,425,109
[PAYABLE-FOR-SECURITIES] 0
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 278,269
[TOTAL-LIABILITIES] 278,269
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 107,302,588
[SHARES-COMMON-STOCK] 7,276,295
[SHARES-COMMON-PRIOR] 7,937,830
[ACCUMULATED-NII-CURRENT] 0
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] (6,902,066)
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 746,318
[NET-ASSETS] 101,146,840
[DIVIDEND-INCOME] 0
[INTEREST-INCOME] 7,769,414
[OTHER-INCOME] (10,326)
[EXPENSES-NET] 952,582
[NET-INVESTMENT-INCOME] 6,806,506
[REALIZED-GAINS-CURRENT] 2,141,279
[APPREC-INCREASE-CURRENT] (674,103)
[NET-CHANGE-FROM-OPS] 8,273,682
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 2,503,673
[DISTRIBUTIONS-OF-GAINS] 0
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 6,558,594
[NUMBER-OF-SHARES-REDEEMED] 7,220,129
[SHARES-REINVESTED] 0
[NET-CHANGE-IN-ASSETS] (14,291,017)
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] 0
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] (9,043,345)
[GROSS-ADVISORY-FEES] 538,831
[INTEREST-EXPENSE] 10,326
[GROSS-EXPENSE] 549,157
[AVERAGE-NET-ASSETS] 41,722,957
[PER-SHARE-NAV-BEGIN] 4.05
[PER-SHARE-NII] 0.24
[PER-SHARE-GAIN-APPREC] 0.04
[PER-SHARE-DIVIDEND] 0.24
[PER-SHARE-DISTRIBUTIONS] 0
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 4.09
[EXPENSE-RATIO] 0.50
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
To the Shareholders and Board of Directors of
Smith Barney Funds, Inc.:
In planning and performing our audit of the financial statements
of Large Cap Value Fund of Smith Barney Funds, Inc. (the "Fund")
for the year ended December 31, 1997, we considered its internal
control, including control activities for safeguarding
securities, in order to determine our auditing procedures for the
purpose of expressing our opinion on the financial statements and
to comply with the requirements of Form N-SAR, not to provide
assurance on the internal control.
The management of the Fund is responsible for establishing and
maintaining internal control. In fulfilling this responsibility,
estimates and judgments by management are required to assess the
expected benefits and related costs of controls. Generally,
controls that are relevant to an audit pertain to the entity's
objective of preparing financial statements for external purposes
that are fairly presented in conformity with generally accepted
accounting principles. Those controls include the safeguarding of
assets against unauthorized acquisition, use, or disposition.
Because of inherent limitations in internal control, errors or
irregularities may occur and not be detected. Also, projection
of any evaluation of internal control to future periods is
subject to the risk that it may become inadequate because of
changes in conditions or that the effectiveness of the design and
operation may deteriorate.
Our consideration of the internal control would not necessarily
disclose all matters in the internal control that might be
material weaknesses under standards established by the American
Institute of Certified Public Accountants. A material weakness
is a condition in which the design or operation of one or more of
the internal control components does not reduce to a relatively
low level the risk that errors or irregularities in amounts that
would be material in relation to the financial statements being
audited may occur and not be detected within a timely period by
employees in the normal course of performing their assigned
functions. However, we noted no matters involving the internal
control and its operation, including controls for safeguarding
securities that we consider to be material weaknesses as defined
above.
This report is intended solely for the information and use of
management, the Board of Directors of the Fund, and the
Securities and Exchange Commission.
February 10, 1998
To the Shareholders and Board of Directors of
Smith Barney Funds, Inc.:
In planning and performing our audit of the financial statements
of Short-Term U.S. Treasury Securities Portfolio of Smith Barney
Funds, Inc. (the "Fund") for the year ended December 31, 1997, we
considered its internal control, including control activities for
safeguarding securities, in order to determine our auditing
procedures for the purpose of expressing our opinion on the
financial statements and to comply with the requirements of Form
N-SAR, not to provide assurance on the internal control.
The management of the Fund is responsible for establishing and
maintaining internal control. In fulfilling this responsibility,
estimates and judgments by management are required to assess the
expected benefits and related costs of controls. Generally,
controls that are relevant to an audit pertain to the entity's
objective of preparing financial statements for external purposes
that are fairly presented in conformity with generally accepted
accounting principles. Those controls include the safeguarding of
assets against unauthorized acquisition, use, or disposition.
Because of inherent limitations in internal control, errors or
irregularities may occur and not be detected. Also, projection
of any evaluation of internal control to future periods is
subject to the risk that it may become inadequate because of
changes in conditions or that the effectiveness of the design and
operation may deteriorate.
Our consideration of the internal control would not necessarily
disclose all matters in the internal control that might be
material weaknesses under standards established by the American
Institute of Certified Public Accountants. A material weakness
is a condition in which the design or operation of one or more of
the internal control components does not reduce to a relatively
low level the risk that errors or irregularities in amounts that
would be material in relation to the financial statements being
audited may occur and not be detected within a timely period by
employees in the normal course of performing their assigned
functions. However, we noted no matters involving the internal
control and its operation, including controls for safeguarding
securities that we consider to be material weaknesses as defined
above.
This report is intended solely for the information and use of
management, the Board of Directors of the Fund, and the
Securities and Exchange Commission.
February 10, 1998
To the Shareholders and Board of Directors of
Smith Barney Funds, Inc.:
In planning and performing our audit of the financial statements
of U.S. Government Securities Portfolio of Smith Barney Funds,
Inc. (the "Fund") for the year ended December 31, 1997, we
considered its internal control, including control activities for
safeguarding securities, in order to determine our auditing
procedures for the purpose of expressing our opinion on the
financial statements and to comply with the requirements of Form
N-SAR, not to provide assurance on the internal control.
The management of the Fund is responsible for establishing and
maintaining internal control. In fulfilling this responsibility,
estimates and judgments by management are required to assess the
expected benefits and related costs of controls. Generally,
controls that are relevant to an audit pertain to the entity's
objective of preparing financial statements for external purposes
that are fairly presented in conformity with generally accepted
accounting principles. Those controls include the safeguarding of
assets against unauthorized acquisition, use, or disposition.
Because of inherent limitations in internal control, errors or
irregularities may occur and not be detected. Also, projection
of any evaluation of internal control to future periods is
subject to the risk that it may become inadequate because of
changes in conditions or that the effectiveness of the design and
operation may deteriorate.
Our consideration of the internal control would not necessarily
disclose all matters in the internal control that might be
material weaknesses under standards established by the American
Institute of Certified Public Accountants. A material weakness
is a condition in which the design or operation of one or more of
the internal control components does not reduce to a relatively
low level the risk that errors or irregularities in amounts that
would be material in relation to the financial statements being
audited may occur and not be detected within a timely period by
employees in the normal course of performing their assigned
functions. However, we noted no matters involving the internal
control and its operation, including controls for safeguarding
securities that we consider to be material weaknesses as defined
above.
This report is intended solely for the information and use of
management, the Board of Directors of the Fund, and the
Securities and Exchange Commission.
February 10, 1998
