SCOUT BALANCED FUND INC
N-18F1, 1995-07-19
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                                    FORM N-18F-1

                         SECURITIES AND EXCHANGE COMMISSION

                              Washington, D. C.  20549

                  _________________________________________________
                 |                                                 |
                 | NOTIFICATION OF ELECTION PURSUANT TO RULE 18F-1 |
                 |    UNDER THE INVESTMENT COMPANY ACT OF 1940     |
                 |_________________________________________________|

                              Scout Balanced Fund, Inc.
                              Exact Name of Registrant

                              NOTIFICATION OF ELECTION

               The undersigned registered open-end investment company
          hereby notifies the Securities and Exchange Commission that it
          elects to commit itself to pay in cash all redemptions by a
          shareholder of record as provided by Rule 18f-1 under the
          Investment Company Act of 1940.  It is understood that this
          election is irrevocable while such Rule is in effect unless the
          Commission by order upon application permits the withdrawal of
          this Notification of Election.

                                      SIGNATURE

               Pursuant to the requirements of Rule 18f-1 under the
          Investment Company Act of 1940, the registrant has caused this
          notification of election to be duly executed on its behalf in the
          city of Kansas City and the state of Missouri on the 3rd day of
          July, 1995.

                         Signature Scout Balanced Fund, Inc.
                                   (Name of Registrant)



                              By   ____________________________
                                   LARRY D. ARMEL
                                   PRESIDENT                                   _
                                   __________________________
                                   (Title)



          Attest:   ___________________________
                    Martin A. Cramer
                    Secretary
                    (Title)



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