SUPPLEMENT TO THE 
CAPITAL RESERVES: MONEY MARKET
PORTFOLIO, U.S.
GOVERNMENT PORTFOLIO AND MUNICIPAL MONEY MARKET PORTFOLIO
NOVEMBER 29, 1996 PROSPECTUS
PROPOSED REORGANIZATION. The Board of Trustees of each of Capital Reserves:
Money Market Portfolio, U.S. Government Portfolio and Municipal Money
Market Portfolio (the Capital Reserves Portfolios) has unanimously approved
Agreements and Plans of Reorganization ("Agreements") between (i) Capital
Reserves: Money Market Portfolio and    Prime Fund, a fund of Newbury
Street Trust (formerly Daily Money Fund: Money Market Portfolio, a fund of
Daily Money Fund)    , (ii) Capital Reserves: U.S. Government Portfolio and
   Treasury Fund, a fund of Newbury Street Trust (formerly Daily Money
Fund: U.S. Treasury Portfolio, a fund of Daily Money Fund)     and (iii)
Capital Reserves: Municipal Money Market Portfolio and    Tax-Exempt Fund,
a fund of Newbury Street Trust (formerly Daily Tax-Exempt Money Fund, a
fund of Daily Tax-Exempt Money Fund)    .
The Agreements provide for the transfer of substantially all of the assets
of each Capital Reserves Portfolio in exchange for shares of a class of the
corresponding fund    as previously noted     and the assumption by the
corresponding fund of all of the Capital Reserves Portfolios' liabilities.
Following such exchange, each Capital Reserves Portfolio shareholder will
receive an identical number of shares of the corresponding fund as provided
in the Agreements (the transactions contemplated by the Agreement referred
to as the "Reorganizations").
The Reorganizations can be consummated only if, among other things, they
are approved by a majority vote of shareholders. A Special Meeting (the
"Meeting") of the Shareholders of Capital Reserves: Money Market Portfolio,
U.S. Government Portfolio and Municipal Money Market Portfolio will be held
on September 17, 1997, and approval of the Agreements will be voted on at
that time. Only shares held on the record date of July    21    , 1997 will
be entitled to vote on the proposed mergers. In connection with the
Meeting, the Capital Reserves Portfolios will be filing with the Securities
and Exchange Commission and delivering to shareholders of record a Proxy
Statement describing the Reorganizations.
If the Agreements are approved at the Meeting and certain conditions
required by the Agreements are satisfied, the Reorganizations are expected
to become effective on or about October 30, 1997. If shareholder approval
of the Agreements is delayed due to failure to meet a quorum or otherwise,
the Reorganizations will become effective, if approved, as soon as
practicable thereafter.
In the event shareholders of one of the Capital Reserves Portfolios fails
to approve the Agreement, that Capital Reserves Portfolio will continue to
engage in business as a registered investment company and the Board of
Trustees will consider other proposals for the reorganization or
liquidation of that Portfolio.