AMERICAN BALANCED FUND, INC.

                             ARTICLES SUPPLEMENTARY
                           INCREASING AUTHORIZED STOCK
                      AS AUTHORIZED BY SECTION 2-105(c) OF
                      THE MARYLAND GENERAL CORPORATION LAW

     American  Balanced Fund, Inc., a Maryland  corporation (the  "Corporation")
having its principal  office in  Baltimore,  Maryland,  hereby  certifies to the
State Department of Assessments and Taxation of Maryland that:

         FIRST: In accordance with Section 2-105(c) of the Maryland General
Corporation Law, the Board of Directors has increased the authorized Capital
Stock of the corporation to 5,500,000,000 shares of Common Stock (par value
$0.001 per share).

         SECOND: The Corporation is registered as an open-end investment company
under the Investment Company Act of 1940.

         THIRD: (a) As of immediately before the increase the total number of
shares of stock of all classes which the Corporation has authority to issue is
2,500,000,000 shares of Common Stock (par value $0.001 per share).

                           (b) As increased the total number of shares of stock
of all classes which the Corporation has authority to issue is 5,500,000,000
shares of Common Stock (par value $0.001 per share).

                           (c) The aggregate par value of all shares having a
par value is $2,500,000 before the increase and $5,500,000 as increased.

                  IN WITNESS WHEREOF, American Balanced Fund, Inc., has caused
these Articles Supplementary to be signed and acknowledged in its name and on
its behalf by its Chairman of the Board and attested by its Secretary on this
3rd day of June, 2004.

ATTEST:                                      AMERICAN BALANCED FUND, INC.


By  /s/ Patrick F. Quan                      By  /s/ Robert G. O'Donnell
    -----------------------------------          ------------------------------
    Patrick F. Quan                              Robert G. O'Donnell
    Secretary                                    Chairman of the Board

     THE UNDERSIGNED, Chairman of the Board of American Balanced Fund, Inc., who
executed on behalf of said Corporation the foregoing  Articles  Supplementary to
the Charter, of which this certificate is made a part, hereby  acknowledges,  in
the name and on behalf of said Corporation, the foregoing Articles Supplementary
to the  Charter  to be  the  corporate  act of  said  Corporation,  and  further
certifies  that,  to the best of his  knowledge,  information  and  belief,  the
matters and facts set forth  therein with  respect to the  approval  thereof are
true in all material respects under penalty of perjury.


Dated:    June 3, 2004                      By: /s/ Robert G. O'Donnell
         ------------------------           -----------------------------------
                                             Robert G. O'Donnell
                                             Chairman of the Board