[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]                   6-MOS
[FISCAL-YEAR-END]                          DEC-31-1997
[PERIOD-END]                               JUN-30-1997
[INVESTMENTS-AT-COST]                      356,058,911
[INVESTMENTS-AT-VALUE]                     360,673,440
[RECEIVABLES]                                2,632,737
[ASSETS-OTHER]                                       0
[OTHER-ITEMS-ASSETS]                                 0
[TOTAL-ASSETS]                             363,306,177
[PAYABLE-FOR-SECURITIES]                     6,646,747
[SENIOR-LONG-TERM-DEBT]                     17,212,500
[OTHER-ITEMS-LIABILITIES]                      883,618
[TOTAL-LIABILITIES]                         24,742,865
[SENIOR-EQUITY]                                      0
[PAID-IN-CAPITAL-COMMON]                   342,177,498
[SHARES-COMMON-STOCK]                        1,483,610
[SHARES-COMMON-PRIOR]                        1,538,469
[ACCUMULATED-NII-CURRENT]                            0
[OVERDISTRIBUTION-NII]                       (154,089)
[ACCUMULATED-NET-GAINS]                              0
[OVERDISTRIBUTION-GAINS]                     8,434,494
[ACCUM-APPREC-OR-DEPREC]                     4,666,219
[NET-ASSETS]                               338,563,312
[DIVIDEND-INCOME]                                    0
[INTEREST-INCOME]                           12,956,482
[OTHER-INCOME]                                       0
[EXPENSES-NET]                               1,425,007
[NET-INVESTMENT-INCOME]                     11,531,475
[REALIZED-GAINS-CURRENT]                   (4,807,548)
[APPREC-INCREASE-CURRENT]                    4,506,226
[NET-CHANGE-FROM-OPS]                       11,230,153
[EQUALIZATION]                                       0
[DISTRIBUTIONS-OF-INCOME]                      669,179
[DISTRIBUTIONS-OF-GAINS]                             0
[DISTRIBUTIONS-OTHER]                                0
[NUMBER-OF-SHARES-SOLD]                         93,453
[NUMBER-OF-SHARES-REDEEMED]                    134,459
[SHARES-REINVESTED]                             50,938
[NET-CHANGE-IN-ASSETS]                    (26,872,577)
[ACCUMULATED-NII-PRIOR]                              0
[ACCUMULATED-GAINS-PRIOR]                            0
[OVERDISTRIB-NII-PRIOR]                          1,628
[OVERDIST-NET-GAINS-PRIOR]                           0
[GROSS-ADVISORY-FEES]                          801,941
[INTEREST-EXPENSE]                             351,593
[GROSS-EXPENSE]                              1,153,534
[AVERAGE-NET-ASSETS]                        19,686,036
[PER-SHARE-NAV-BEGIN]                            13.26
[PER-SHARE-NII]                                  00.46
[PER-SHARE-GAIN-APPREC]                         (0.01)
[PER-SHARE-DIVIDEND]                             00.45
[PER-SHARE-DISTRIBUTIONS]                            0
[RETURNS-OF-CAPITAL]                                 0
[PER-SHARE-NAV-END]                              13.26
[EXPENSE-RATIO]                                  00.51
[AVG-DEBT-OUTSTANDING]                               0
[AVG-DEBT-PER-SHARE]                                 0
</TABLE>