THE ECONOMETRIC SOCIETY ANNUAL REPORTS REPORT OF THE TREASURER.

This article presents the annual report of the treasurer of the Econometric Society for the fiscal year 2004-2005. For several decades, the financial goal of the Econometric Society has been to maintain the ratio of net worth (NW) to adjusted total revenue (ATR). This ratio should be 50%. In the late 1990's, the U.S. stock market forced the ratio far above that 50 percent goal and the Society decided to shift these gains from its NW to the welfare of its constituents. It was decided to provide substantial travel grants to the participants in its 2000 and 2005 World Congresses. Membership rates were also reduced in 2005 and 2006. An extra co-editor was provided to the Society's journal "Econometrica." The Society also made substantial investments in its web site. The planned attempt to use all of these methods to stop the growth of the NW/ATR ratio succeeded. These policies produced losses in the years 2000-2002 and reduced the NW/ATR ratio from 1.37 at the end of 1999 to 0.57 at the end of 2002. The NW/ATR ratio is currently on an upward trajectory, having reached 0.72 at the end of 2004.