[ARTICLE] 6
[CIK] 0000764624
[NAME] SMITH BARNEY INCOME FUNDS
[SERIES]
   [NUMBER] 5
   [NAME] EXCHANGE RESERVE FUND, CLASS L
<TABLE>
<S>                             <C>
[PERIOD-TYPE]                   YEAR
[FISCAL-YEAR-END]                          JUL-31-1998
[PERIOD-END]                               JUL-31-1998
[INVESTMENTS-AT-COST]                       83,444,388
[INVESTMENTS-AT-VALUE]                      83,444,388
[RECEIVABLES]                                   25,552
[ASSETS-OTHER]                                       0
[OTHER-ITEMS-ASSETS]                           280,070
[TOTAL-ASSETS]                              83,750,030
[PAYABLE-FOR-SECURITIES]                             0
[SENIOR-LONG-TERM-DEBT]                        248,757
[OTHER-ITEMS-LIABILITIES]                            0
[TOTAL-LIABILITIES]                            248,757
[SENIOR-EQUITY]                                      0
[PAID-IN-CAPITAL-COMMON]                    83,535,222
[SHARES-COMMON-STOCK]                        9,314,247
[SHARES-COMMON-PRIOR]                        8,489,455
[ACCUMULATED-NII-CURRENT]                            0
[OVERDISTRIBUTION-NII]                               0
[ACCUMULATED-NET-GAINS]                              0
[OVERDISTRIBUTION-GAINS]                             0
[ACCUM-APPREC-OR-DEPREC]                             0
[NET-ASSETS]                                83,501,273
[DIVIDEND-INCOME]                                    0
[INTEREST-INCOME]                            6,153,629
[OTHER-INCOME]                                       0
[EXPENSES-NET]                               1,322,237
[NET-INVESTMENT-INCOME]                      4,831,392
[REALIZED-GAINS-CURRENT]                         4,628
[APPREC-INCREASE-CURRENT]                            0
[NET-CHANGE-FROM-OPS]                        4,836,020
[EQUALIZATION]                                       0
[DISTRIBUTIONS-OF-INCOME]                      482,944
[DISTRIBUTIONS-OF-GAINS]                             0
[DISTRIBUTIONS-OTHER]                                0
[NUMBER-OF-SHARES-SOLD]                    352,816,972
[NUMBER-OF-SHARES-REDEEMED]                391,663,064
[SHARES-REINVESTED]                          5,264,223
[NET-CHANGE-IN-ASSETS]                    (39,221,407)
[ACCUMULATED-NII-PRIOR]                              0
[ACCUMULATED-GAINS-PRIOR]                            0
[OVERDISTRIB-NII-PRIOR]                              0
[OVERDIST-NET-GAINS-PRIOR]                           0
[GROSS-ADVISORY-FEES]                          326,309
[INTEREST-EXPENSE]                                   0
[GROSS-EXPENSE]                              1,322,237
[AVERAGE-NET-ASSETS]                         8,566,080
[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]                                   1.21
[AVG-DEBT-OUTSTANDING]                               0
[AVG-DEBT-PER-SHARE]                                 0
</TABLE>