EX-99.B18-ggmcp

                      UNITED GOLD & GOVERNMENT FUND, INC.
                   MULTIPLE CLASS PLAN PURSUANT TO RULE 18f-3

     This Multiple Class Plan ("Plan") pursuant to Rule 18f-3 under the
Investment Company Act of 1940, as amended ("1940 Act"), sets forth the multiple
class structure for United Gold & Government Fund, Inc. ("Fund").  This multiple
class structure was approved by the Board of Directors of the Fund on February
8, 1995, under an order of exemption issued by the Securities and Exchange
Commission on January 11, 1995.  Subsequent to such approval, Rule 18f-3 under
the 1940 Act was adopted.  It was determined that the Fund operate under Rule
18f-3, and this Plan was adopted pursuant to Rule 18f-3.  This Plan describes
the classes of shares of stock of the Fund -- Class A shares and Class Y shares
-- offered to the public on or after February 19, 1996 ("Implementation Date").

General Description of the Classes:

     Class A Shares.  Class A shares will be sold to the general public subject
to an initial sales charge.  The maximum sales charge is 5.75% of the amount
invested and declines to 0% based on discounts for volume purchases.  The
initial sales charge is waived for certain eligible purchasers.

     Class A shares also will be subject to a service fee charged pursuant to a
Service Plan adopted pursuant to Rule 12b-1 under the 1940 Act ("Rule 12b-1")
that provides for a maximum fee of .25% of the average annual net assets of the
Class A shares of the Fund.  All of the shares of the Fund issued pursuant to a
Fund prospectus effective prior to the Implementation Date and that are
outstanding on the Implementation Date will be designated as Class A shares.

     Class Y Shares.  Class Y shares will be sold without an initial sales
charge and without a Rule 12b-1 fee.  Class Y shares are designed for
institutional investors and will be available for purchase by: (i) participants
of employee benefit plans established under section 403(b) or section 457, or
qualified under section 401, including 401(k) plans, of the Internal Revenue
Code of 1986 ("Code"), when the plan has 100 or more eligible employees and
holds the shares in an omnibus account on the Fund's records; (ii) banks, trust
institutions, investment fund administrators and other third parties investing
for their own accounts or for the accounts of their customers where such
investments for customer accounts are held in an omnibus account on the Fund's
records; (iii) government entities or authorities and corporations whose
investment within the first twelve months after initial investment is $10
million or more; and (iv) certain retirement plans and trusts for employees and
sales representatives of Waddell & Reed, Inc. and its affiliates.

Expense Allocations of Each Class:

     In addition to the difference with respect to 12b-1 fees, Class A shares
and Class Y shares of the Fund differ with respect to the applicable shareholder
servicing fees.  Class A shares pay a monthly shareholder servicing fee of
$1.0208 for each Class A shareholder account which was in existence during the
prior month, plus $0.30 for each Class A account on which a dividend or
distribution had a record date in that month.  Class Y shares pay a monthly
shareholder servicing fee equal to one-twelfth of .15 of 1% of the average daily
net Class Y assets for the preceding month.

     Each Class may also pay a different amount of the following other expenses:

          (a)  stationery, printing, postage and delivery expenses related to
     preparing and distributing materials such as shareholder reports,
     prospectuses, and proxy statements to current shareholders of a specific
     Class of shares;
          (b)  Blue Sky registration fees incurred by a specific Class of
     shares;
          (c)  SEC registration fees incurred by a specific Class of shares;
          (d)  expenses of administrative personnel and services required to
     support the shareholders of a specific Class of shares;
          (e)  Directors' fees or expenses incurred as a result of issues
     relating to a specific Class of shares;
          (f)  accounting expenses relating solely to a specific Class of
     shares;
          (g)  auditors' fees, litigation expenses, and legal fees and expenses
     relating to a specific Class of shares; and
          (h)  expenses incurred in connection with shareholders meetings as a
     result of issues relating to a specific Class of shares.

     These expenses may, but are not required to, be directly attributed and
charged to a particular Class.  The shareholder servicing fees and other
expenses listed above that are attributed and charged to a particular Class are
borne on a pro rata basis by the outstanding shares of that Class.

     Certain expenses that may not be attributable to a particular Class are
allocated based on the relative daily net assets of that Class.

Exchange Privileges:

     Class A shares of the Fund may be exchanged for corresponding shares of any
other fund in the United Group of Mutual Funds.

     Class Y shares may be exchanged for Class Y shares of any other fund in the
United Group of Mutual Funds.

     These exchange privileges may be modified or terminated by the Fund, and
exchanges may only be made into funds that are legally registered for sale in
the investor's state of residence.

Additional Information:

     This Plan is qualified by and subject to the terms of the then current
prospectus for the applicable Class after the Implementation Date; provided,
however, that none of the terms set forth in any such prospectus shall be
inconsistent with the terms of the Classes contained in this Plan.  The
prospectus for each Class contains additional information about that Class and
the Fund's multiple class structure.

December 21, 1995

Effective:  February 19, 1996