WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000764624
<NAME> SMITH BARNEY INCOME FUNDS
<SERIES>
   <NUMBER> 5
   <NAME> EXCHANGE RESERVE, CLASS B
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUL-31-1997
<PERIOD-END>                               JUL-31-1997
<INVESTMENTS-AT-COST>                      122,336,236
<INVESTMENTS-AT-VALUE>                     122,336,236
<RECEIVABLES>                                  412,905
<ASSETS-OTHER>                                 364,519
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                             123,113,660
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                      390,980
<TOTAL-LIABILITIES>                            390,980
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                   122,761,257
<SHARES-COMMON-STOCK>                      116,954,867
<SHARES-COMMON-PRIOR>                      150,476,738
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                             0
<NET-ASSETS>                               122,722,680
<DIVIDEND-INCOME>                                    0
<INTEREST-INCOME>                            8,137,141
<OTHER-INCOME>                                       0
<EXPENSES-NET>                               1,721,566
<NET-INVESTMENT-INCOME>                      6,415,575
<REALIZED-GAINS-CURRENT>                        16,879
<APPREC-INCREASE-CURRENT>                            0
<NET-CHANGE-FROM-OPS>                        6,432,454
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                    5,088,527
<DISTRIBUTIONS-OF-GAINS>                        16,010
<DISTRIBUTIONS-OTHER>                                0
<NUMBER-OF-SHARES-SOLD>                    352,876,972
<NUMBER-OF-SHARES-REDEEMED>                391,663,064
<SHARES-REINVESTED>                          5,264,223
<NET-CHANGE-IN-ASSETS>                    (37,142,657)
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                          442,557
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                              1,721,566
<AVERAGE-NET-ASSETS>                       140,241,983
<PER-SHARE-NAV-BEGIN>                             1.00
<PER-SHARE-NII>                                   0.04
<PER-SHARE-GAIN-APPREC>                              0
<PER-SHARE-DIVIDEND>                              0.04
<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>