REPORT OF THE PRESIDENT IT is A remarkable tribute to all concerned that the reconstruction and air conditioning of the Society's building was begun and virtually completed within the calendar year 1966. Before the fourth floor galleries can be used for the display of paintings and furniture they must now be repainted, the walls must be covered with new fabric, and movable partitions must be set up, but these seem like peaceful projects after the dust and confusion of the major rebuilding. We look forward to seeing many of our most significant possessions in surroundings worthy of their quality, and it is reassuring to know that temperature and humidity conditions throughout the building can now be controlled to assure the preservation of our collections. This first and principal stage in our physical rehabilitation program has been paid for without invading our endowment principal. Over the years we had built up a Reserve for Equipment, Building Replacement, and Major Repairs amounting to approximately $220,000, and it seemed timely and appropriate to devote this Reserve to the reconstruction. Gifts and pledges to the Development Fund had provided some $574,000 by the end of 1966, and this splendid generosity on the part of our members and friends enabled us to carry the program through. We still require funds in the neighborhood of $200,000 to complete the second stage: the redecoration of a number of areas and the reinstallation of many of the displays. We anticipate that this will be carried out largely by our own staff over the next five or six years. One of these second-stage projects, scheduled for completion early in 1967, is the relighting of the Library Reading Room, which we hope to follow with a new floor covering for the area. We trust that the readers who use these facilities will regard the improvements as some compensation for the turmoil and dislocations of the past year.