[ARTICLE] 6
[CIK] 0000764624
[NAME] SMITH BARNEY INCOME FUNDS
[SERIES]
   [NUMBER] 5
   [NAME] EXCHANGE RESERVE, CLASS B
<TABLE>
<S>                             <C>
[PERIOD-TYPE]                   6-MOS
[FISCAL-YEAR-END]                          JUL-31-1998
[PERIOD-END]                               JAN-31-1998
[INVESTMENTS-AT-COST]                      112,219,096
[INVESTMENTS-AT-VALUE]                     112,219,096
[RECEIVABLES]                                   71,130
[ASSETS-OTHER]                                       0
[OTHER-ITEMS-ASSETS]                           280,842
[TOTAL-ASSETS]                             112,571,068
[PAYABLE-FOR-SECURITIES]                             0
[SENIOR-LONG-TERM-DEBT]                              0
[OTHER-ITEMS-LIABILITIES]                      359,815
[TOTAL-LIABILITIES]                            359,815
[SENIOR-EQUITY]                                      0
[PAID-IN-CAPITAL-COMMON]                   112,245,854
[SHARES-COMMON-STOCK]                      103,756,300
[SHARES-COMMON-PRIOR]                      116,954,871
[ACCUMULATED-NII-CURRENT]                            0
[OVERDISTRIBUTION-NII]                               0
[ACCUMULATED-NET-GAINS]                       (34,601)
[OVERDISTRIBUTION-GAINS]                             0
[ACCUM-APPREC-OR-DEPREC]                             0
[NET-ASSETS]                               112,211,253
[DIVIDEND-INCOME]                                    0
[INTEREST-INCOME]                            3,536,181
[OTHER-INCOME]                                       0
[EXPENSES-NET]                                 739,918
[NET-INVESTMENT-INCOME]                      2,796,263
[REALIZED-GAINS-CURRENT]                         3,977
[APPREC-INCREASE-CURRENT]                            0
[NET-CHANGE-FROM-OPS]                        2,800,240
[EQUALIZATION]                                       0
[DISTRIBUTIONS-OF-INCOME]                    2,602,779
[DISTRIBUTIONS-OF-GAINS]                             0
[DISTRIBUTIONS-OTHER]                                0
[NUMBER-OF-SHARES-SOLD]                    166,965,295
[NUMBER-OF-SHARES-REDEEMED]                182,426,607 
[SHARES-REINVESTED]                          2,262,840
[NET-CHANGE-IN-ASSETS]                    (10,511,428)
[ACCUMULATED-NII-PRIOR]                              0
[ACCUMULATED-GAINS-PRIOR]                            0
[OVERDISTRIB-NII-PRIOR]                              0
[OVERDIST-NET-GAINS-PRIOR]                           0
[GROSS-ADVISORY-FEES]                          185,953
[INTEREST-EXPENSE]                                   0
[GROSS-EXPENSE]                                739,918
[AVERAGE-NET-ASSETS]                       114,966,499
[PER-SHARE-NAV-BEGIN]                            1.000
[PER-SHARE-NII]                                  0.023
[PER-SHARE-GAIN-APPREC]                              0
[PER-SHARE-DIVIDEND]                             0.023
[PER-SHARE-DISTRIBUTIONS]                            0
[RETURNS-OF-CAPITAL]                                 0
[PER-SHARE-NAV-END]                              1.000
[EXPENSE-RATIO]                                  1.200
[AVG-DEBT-OUTSTANDING]                               0
[AVG-DEBT-PER-SHARE]                                 0
</TABLE>