[ARTICLE] 6
[CIK] 0000091157
[NAME] SMITH BARNEY FUNDS, INC.
[SERIES]
   [NUMBER] 2
   [NAME] U.S. GOVERNMENT SECURITIES PORTFOLIO, CLASS Y
<TABLE>
<S>                             <C>
[PERIOD-TYPE]                   YEAR
[FISCAL-YEAR-END]                          DEC-31-1997
[PERIOD-END]                               DEC-31-1997
[INVESTMENTS-AT-COST]                      314,572,661
[INVESTMENTS-AT-VALUE]                     320,362,595
[RECEIVABLES]                              160,750,191
[ASSETS-OTHER]                                     801
[OTHER-ITEMS-ASSETS]                                 0
[TOTAL-ASSETS]                             481,113,587
[PAYABLE-FOR-SECURITIES]                   154,299,090
[SENIOR-LONG-TERM-DEBT]                              0
[OTHER-ITEMS-LIABILITIES]                      348,107
[TOTAL-LIABILITIES]                        154,647,197
[SENIOR-EQUITY]                                      0
[PAID-IN-CAPITAL-COMMON]                   322,865,499
[SHARES-COMMON-STOCK]                          379,959
[SHARES-COMMON-PRIOR]                          421,238
[ACCUMULATED-NII-CURRENT]                            0
[OVERDISTRIBUTION-NII]                         291,603
[ACCUMULATED-NET-GAINS]                              0
[OVERDISTRIBUTION-GAINS]                     (111,560)
[ACCUM-APPREC-OR-DEPREC]                     5,789,934
[NET-ASSETS]                               326,446,390
[DIVIDEND-INCOME]                                    0
[INTEREST-INCOME]                           24,442,469
[OTHER-INCOME]                                       0
[EXPENSES-NET]                               2,791,726
[NET-INVESTMENT-INCOME]                     21,650,743
[REALIZED-GAINS-CURRENT]                     3,738,506
[APPREC-INCREASE-CURRENT]                    5,629,941
[NET-CHANGE-FROM-OPS]                       31,019,190
[EQUALIZATION]                                       0
[DISTRIBUTIONS-OF-INCOME]                      360,618
[DISTRIBUTIONS-OF-GAINS]                             0
[DISTRIBUTIONS-OTHER]                                0
[NUMBER-OF-SHARES-SOLD]                          3,928
[NUMBER-OF-SHARES-REDEEMED]                     50,796
[SHARES-REINVESTED]                              5,590
[NET-CHANGE-IN-ASSETS]                    (38,969,499)
[ACCUMULATED-NII-PRIOR]                              0
[ACCUMULATED-GAINS-PRIOR]                            0
[OVERDISTRIB-NII-PRIOR]                          1,628
[OVERDIST-NET-GAINS-PRIOR]                           0
[GROSS-ADVISORY-FEES]                        1,571,535
[INTEREST-EXPENSE]                             542,073
[GROSS-EXPENSE]                              2,113,608
[AVERAGE-NET-ASSETS]                         5,341,260
[PER-SHARE-NAV-BEGIN]                            13.27
[PER-SHARE-NII]                                  00.88
[PER-SHARE-GAIN-APPREC]                          00.39
[PER-SHARE-DIVIDEND]                                 0
[PER-SHARE-DISTRIBUTIONS]                        00.90
[RETURNS-OF-CAPITAL]                                 0
[PER-SHARE-NAV-END]                              13.64
[EXPENSE-RATIO]                                  00.51
[AVG-DEBT-OUTSTANDING]                               0
[AVG-DEBT-PER-SHARE]                                 0
</TABLE>