CASH RESOURCE TRUST
                     NEW YORK TAX-EXEMPT MONEY MARKET FUND

                                   SUPPLEMENT
                      TO PROSPECTUS DATED NOVEMBER 1, 1996


Mentor Investment Group, LLC ("Mentor") has informed the Trust that Wheat First
Butcher Singer, Inc., Mentor's parent company, will be acquired by First Union
Corp. ("First Union"), in a transaction expected to occur as early as December
of this year. First Union is a global financial services company with
approximately $140 billion in assets and $10 billion in total stockholders'
equity. The proposed arrangement does not contemplate any changes in the
management or operations of Mentor or any of its subsidiaries, including Mentor
Investment Advisors, LLC, the Fund's investment adviser. Consummation of the
acquisition, which is subject to a number of conditions, including regulatory
approvals, will result in the termination of the investment advisory agreement
between the Fund and Mentor Investment Advisors, LLC. It is expected that the
Trustees of the Trust will meet to consider a new investment advisory agreement
between the Fund and Mentor Investment Advisors, LLC, to become effective upon
consummation of the acquisition. Implementation of the new agreement, which
would be substantially identical to the current investment advisory agreement,
would be subject to approval of shareholders at a meeting expected to be held
prior to the consummation of the acquisition.


                                                           September 15, 1997