[ARTICLE] 6
[CIK] 0000764624
[NAME] SMITH BARNEY INCOME FUNDS
[SERIES]
   [NUMBER] 5
   [NAME] EXCHANGE RESERVE FUND CLASS C
<TABLE>
<S>                             <C>
[PERIOD-TYPE]                   6-MOS
[FISCAL-YEAR-END]                          JUL-31-1997
[PERIOD-END]                               JAN-31-1997
[INVESTMENTS-AT-COST]                      146,686,728
[INVESTMENTS-AT-VALUE]                     146,686,728
[RECEIVABLES]                                  602,975
[ASSETS-OTHER]                                       0
[OTHER-ITEMS-ASSETS]                             1,277
[TOTAL-ASSETS]                             147,290,980
[PAYABLE-FOR-SECURITIES]                             0
[SENIOR-LONG-TERM-DEBT]                              0
[OTHER-ITEMS-LIABILITIES]                      134,656
[TOTAL-LIABILITIES]                            134,656
[SENIOR-EQUITY]                                      0
[PAID-IN-CAPITAL-COMMON]                   147,197,111
[SHARES-COMMON-STOCK]                        6,591,557
[SHARES-COMMON-PRIOR]                        9,444,056
[ACCUMULATED-NII-CURRENT]                            0
[OVERDISTRIBUTION-NII]                               0
[ACCUMULATED-NET-GAINS]                              0
[OVERDISTRIBUTION-GAINS]                             0
[ACCUM-APPREC-OR-DEPREC]                             0
[NET-ASSETS]                               147,156,324
[DIVIDEND-INCOME]                                    0
[INTEREST-INCOME]                            4,220,176
[OTHER-INCOME]                                       0
[EXPENSES-NET]                                 896,148
[NET-INVESTMENT-INCOME]                      3,324,028
[REALIZED-GAINS-CURRENT]                        14,669
[APPREC-INCREASE-CURRENT]                            0
[NET-CHANGE-FROM-OPS]                        3,338,697
[EQUALIZATION]                                       0
[DISTRIBUTIONS-OF-INCOME]                      215,219
[DISTRIBUTIONS-OF-GAINS]                             0
[DISTRIBUTIONS-OTHER]                                0
[NUMBER-OF-SHARES-SOLD]                     43,198,238
[NUMBER-OF-SHARES-REDEEMED]                 46,205,105
[SHARES-REINVESTED]                            154,369
[NET-CHANGE-IN-ASSETS]                    (12,709,013)
[ACCUMULATED-NII-PRIOR]                              0
[ACCUMULATED-GAINS-PRIOR]                            0
[OVERDISTRIB-NII-PRIOR]                              0
[OVERDIST-NET-GAINS-PRIOR]                           0
[GROSS-ADVISORY-FEES]                          231,584
[INTEREST-EXPENSE]                                   0
[GROSS-EXPENSE]                                896,148
[AVERAGE-NET-ASSETS]                         7,835,362
[PER-SHARE-NAV-BEGIN]                             1.00
[PER-SHARE-NII]                                  0.022
[PER-SHARE-GAIN-APPREC]                              0
[PER-SHARE-DIVIDEND]                             0.022
[PER-SHARE-DISTRIBUTIONS]                            0
[RETURNS-OF-CAPITAL]                                 0
[PER-SHARE-NAV-END]                               1.00
[EXPENSE-RATIO]                                   1.16
[AVG-DEBT-OUTSTANDING]                               0
[AVG-DEBT-PER-SHARE]                                 0
</TABLE>