[ARTICLE] 6
[CIK] 0000091157
[NAME] SMITH BARNEY FUNDS, INC.
[SERIES]
   [NUMBER] 2
   [NAME] U.S. GOVERNMENT SECURITIES CLASS Y
<TABLE>
<S>                             <C>
[PERIOD-TYPE]                   YEAR
[FISCAL-YEAR-END]                          DEC-31-1996
[PERIOD-END]                               DEC-31-1996
[INVESTMENTS-AT-COST]                      381,791,711
[INVESTMENTS-AT-VALUE]                     381,951,704
[RECEIVABLES]                                2,850,964
[ASSETS-OTHER]                                     584
[OTHER-ITEMS-ASSETS]                                 0
[TOTAL-ASSETS]                             384,803,252
[PAYABLE-FOR-SECURITIES]                             0
[SENIOR-LONG-TERM-DEBT]                     17,865,000
[OTHER-ITEMS-LIABILITIES]                    1,502,363
[TOTAL-LIABILITIES]                         19,367,363
[SENIOR-EQUITY]                                      0
[PAID-IN-CAPITAL-COMMON]                   368,904,470
[SHARES-COMMON-STOCK]                          421,238
[SHARES-COMMON-PRIOR]                          513,698
[ACCUMULATED-NII-CURRENT]                            0
[OVERDISTRIBUTION-NII]                           1,628
[ACCUMULATED-NET-GAINS]                              0
[OVERDISTRIBUTION-GAINS]                     3,626,946
[ACCUM-APPREC-OR-DEPREC]                       159,993
[NET-ASSETS]                               365,435,889
[DIVIDEND-INCOME]                                    0
[INTEREST-INCOME]                           28,363,251
[OTHER-INCOME]                                       0
[EXPENSES-NET]                               3,220,189
[NET-INVESTMENT-INCOME]                     25,143,062
[REALIZED-GAINS-CURRENT]                       957,180
[APPREC-INCREASE-CURRENT]                 (12,000,502)
[NET-CHANGE-FROM-OPS]                       14,099,740
[EQUALIZATION]                                       0
[DISTRIBUTIONS-OF-INCOME]                      401,227
[DISTRIBUTIONS-OF-GAINS]                             0
[DISTRIBUTIONS-OTHER]                                0
[NUMBER-OF-SHARES-SOLD]                              1
[NUMBER-OF-SHARES-REDEEMED]                     92,667
[SHARES-REINVESTED]                              7,206
[NET-CHANGE-IN-ASSETS]                    (79,688,376)
[ACCUMULATED-NII-PRIOR]                              0
[ACCUMULATED-GAINS-PRIOR]                            0
[OVERDISTRIB-NII-PRIOR]                        100,007
[OVERDIST-NET-GAINS-PRIOR]                   9,679,229
[GROSS-ADVISORY-FEES]                        1,770,235
[INTEREST-EXPENSE]                           1,190,638
[GROSS-EXPENSE]                              2,960,873
[AVERAGE-NET-ASSETS]                         5,996,482
[PER-SHARE-NAV-BEGIN]                            13.61
[PER-SHARE-NII]                                  00.88
[PER-SHARE-GAIN-APPREC]                        (00.33)
[PER-SHARE-DIVIDEND]                                 0
[PER-SHARE-DISTRIBUTIONS]                        00.89
[RETURNS-OF-CAPITAL]                                 0
[PER-SHARE-NAV-END]                              13.27
[EXPENSE-RATIO]                                  00.80
[AVG-DEBT-OUTSTANDING]                               0
[AVG-DEBT-PER-SHARE]                                 0
</TABLE>