LIBERTY MUNICIPAL SECURITIES FUND, INC.
Class B Shares
Supplement to the Prospectus dated July 31, 1994

1.    On page 18 of the Prospectus, please add the following sentence to the
      end of the second paragraph of the section entitled "Distribution of
      Class B Shares":
      "Dealers may voluntarily waive receipt of all or any portion of these
      payments."
2.    On page 19 of the Prospectus, please add the following sentence to the
      end of the first paragraph of the subsection entitled "Distribution
      and Shareholder Services Plan":
      "The distributor may pay a portion of this amount to financial
      institutions that waive all or any portion of the payments discussed
      in the preceding paragraph."

                                                           September 2, 1994


    FEDERATED SECURITIES CORP.

    Distributor
    A subsidiary of Federated Investors
    Federated Investors Tower
    Pittsburgh, PA  15222-3779
    530900406
    G00637-03-B (9/94)