.^ 9^1 t§ ^ < AWEUNIVERi-//, ^vvlOSANCElfj> O ^j:?130nvsoi^'^ %a3AiNn3WV^ ^^mwrni^^^ '^.{/OJIIVDJO ^WE•UNIVERJ//, o vvlOSANCElfj> o %a3AiNn]UV «;..OFCAIIFO/?^ ^OFCAilFO/?, vr ^OAbvaaii^^ '"^ommv^ -< ^HmmO/:. ^,^^l•llBRARYQ^ '^«!/0JllV3JO>^ %OJI1VDJO>^ aWEUNIVERS//, vvlOSANCElfj o %a3AINI13VV > ^OFCAIIFO/?^ ^OFCAIIFO/?^ ^WE•UNIVER5•/A (—1 o .>;lOSANCElf, %a3AiNn3\^ ^ ^WEUNIVERy/A , ^ ^ o • o '%a3AINn3WV ^sSlLIBRARYQr^ -^^l•LIBRARY^ ^ o ^^.OFCALIFO/?;!^ -A^OFCALiFO/i '^/ia3AiNn-3Wv >&AavaaiH^ ^^Aavaaiii J>i. ^^^^l•llBRARY^/^ ^IIIBRARYQ^ '^.i/OJllVDJO'^ aOFCALIF0% ,^,OFCAIIFO% , ^ME•UNIVER5•/A o %13DNVSm^^~ .^MEUNIVER% '^Aa3AiNn-3V svlOSASCELf If I III 1 1 liiii ms//j ^{omms^ %a]AiNa-3UV ^^lllBRARYdK .^lllBRARY^k '^' '^OJIIVDJO AWE UNIVERy/;^ g 13^ ^lOSANCElfj> o %a]AiNn3\v^' ^OFCAllFOfi'^ ^OFCAlIFOff^ vr £7 ^ _^ v\lf •^//. ^ \WEUNIVERV/, o ^^.OFCAIIFO^ \MEUNIVER5/ jaii-^^"^ ^^Aavagii-i^"^ &Aav}iaiii\^' IVERS//i vjclOSAN'CElfj^ o %a3AINfl3WV ^^ILIBRARYOc A^tllBRARYQr^ ^WEUNIVERS//) 'J- jjov- ":lOSA,%ElfJV. o VSOl^"^ '^/Sa3AINa3WV ^.OFCAllFOff^;, ^OFCAIIFO/?.^ ^OAavaaii-i^"^ \\\El'NIVER% 112$ = {ARYQc ^^^UIBRARY6>/, ^ \\[09a,. ,.c^F■^AIlFnff( ^^WEl)NIVERS/^ ^lOSANCElfj-^ ^-TilJDNVSOl^ ^/ia3AINn-3WV^ VER5'/A .vV' ^AOillVJJO- MESSAGE FROM THK PRESIDENT OF THE UNITED STATES TWO HOUSES OF CONGRESS AT THE COMMENCEMENT OF THE SECOND SESSION OF THE FORTY-SEVENTH CONGRESS WITH THE REPORTS OF THE HEADS OF DEPARTMExNTS SELECTIONS FROM ACCOMP.AJNYING DOCUMENTS. EDITKl) UV BEN: PEllLEY POOKE. ^VASTTTXGTO>": GOVER:s:yii!;iS' T ^UI^iTl^•G ufftce, 1882. Trepared in accordauco with the provisions of the Revised Statutes, approved Juno 23, 1874. Skc. 75. The Joint Committee on Public Printing shall appoint a competent person, ■who shall edit such portion of the documents accompanying the annual reports of the Departments as they may deem suitable for popular distribution, and prepare au alphabetical index thereto. Sec. 100. The head of each Department, except the Department of Justice, shall furnish to the Congressional Printer copies of the documents usually accompanying his annual report on or before the first day of November in each year, and a copy of his annual report on or before the third Monday of liovember in each year. Sec. '.>796. Of the documents named in this section there shall be printed and bound, in addition to the usual numberfor Congress, the following numbers of copies, namely : * * * * # • # # Second. Of the President's message, the annual reports of tlie Executive Depart- ments, and the abridgment of accompanying documents, unless otherwise ordered by either house, ten thousaud cop*es for the use of the members of the Senate audtwcnty- iive thousaud coxiies for the use of the members of the House of Eepreseutalives. 3"^ ;i. C4^ OF THE PEESIDENT OF THE UNITED STATES. ^ To the Senate and House of Representatives of the United States : " It is provided by the Constitution that the President shall from time "^ to time give to the Congress information of the state of the Union, and recommend to their consideration such measures as he shall judge nec- £, essary and expedient. S In reviewing the events of the year which has elapsed since the com- r-t mencement of your sessions, I first call your attention to the gratifying ^ condition of our foreign affairs. Our intercourse with other Towers ii has continued to be of the most friendly character. Such slight differences as have arisen during the year have been already settled or are likely to reach an early adjustment. The arrest ^ of citizens of the United States in Ireland under recent laws which owe -• their origin to the disturbed condition of that country has led to a f somewhat extended correspondence with the Government of Great ^ Britain. A disposition to respect our rights has been practically maui- -)" fest«d by the release of the arrested parties. The claim of this nation in regard to the supervision and control of ■^ any inter-oceanic canal across the American Isthmus has contiiniod to be the subject of conference. 5 It is likely that time vrill be more poAverful than discussion in romov- - ing the divergence between the two nations, whose friendship is so h closely cemented by the intimacy of their relations and the coiinmmity of their interests. Our long-established friendliness with Kussia has remained unshaken. It has prompted me to ])roffer the earnest counsels of this government that measures bo adopted for suppressing the pros(;rii)tion which the ]Iebrew race in that country has lately sulFered. It has not transpired that any American citizen has been subjected to arrest or injury, but our courteous remonstrance has nevertheless been court«'ously received. There is reason to believe that the time is not far distant when Ivussia will be able to secure toleration to all faiths within her borders. At an international convention held at Paris in 18S(), and atten«led by representatives of the United States, an agreement was reached iu 4 ANNUAL MESSAGE OF THE PRESIDENT. res])('ct to tlic protection of trade- iinuks, patented iirtieles, and the rights of manufacturing- tirniB and corporations. Tlie forniiilatiiig into treaties of the recommendations thus adopted is receiving the attention which it merits. The protection of submarine cables is a subject now under considera- tion by an international conference at Paris. Believing that it is clearly the true policy of this government to favor the neutralization of this means of intercourse, I requested our minister to France to attend the convention as a delegate. I also designated two of our eminent scien- tists to attend as our representatives at the meeting of an international committee at Paris, for considering the adoption of a fM)mmon unit to measure electric force. In view of the frequent occurrence of conferences for the considera- tion of important matters of common interest to civilized nations, I re- spectfully suggest that the Executive be invested by Congress with discretionary power to send delegates to such conventions, and that provision bo made to defray the expenses incident thereto. The difference between the United States and Spain as to the effect of a judgment and certificate of naturalization has not yet been ad- justed ; but it is hoped and believed that negotiations now in progress will result in the establishment of the iwsition which seems to this government so reasonable and just. I have already called the attention of Congress to the fact that in the ports of Spain and its colonies onerous fines have lately been imposed upon vessels of the United States for trivial technical offenses against local regulations. Efforts for the abatement of these exactions have thus far proved unsuccessful. I regret to inform you also that the fees demanded by Spanish con- suls in American ports are in some cases so large, when compared with the value of the cargo, as to amount in effect to a considerable export duty, and that our remonstrances in this regard have not as yet received the attention which they seem to deserve. The German Government has invited the United States to participate in an international exhibition of domestic cattle, to be held at Ham- burg in July, 1883. If this country is to be represented, it is important that, in the early days of this session, Congress should make a suitable appropriation for that purpose". The death of Mr, Marsh, our late minister to Italy, has evoked from that government expressions of profound respect for his exalted char- acter and for his honorable career in the diplomatic service of his country. The Italian Government has raised a question as to the pro- priety of recoguiziug in his dual capacity the representative of this country recently accredited both as secretary of legation and as con- sul-general at Rome. He has been received as secretary, but his exe- quatur as consul-general has thus far been withheld. AXNUAL MESSAGE OF THE PRESIDENT. 5 T1)0 extradition convention with Belgium, wliicli has been in opera- tion .since 1874, has been lately sui)plante(l by another. The Senate has signified its approval and ratifications have been duly exchanged between the contracting countries. To the list of extraresence of Amer- ican vessels served as a protection to the persons and projieity of many of our own citizens and of citizens of other countries, whose governments have expressed their thanks for tliis assistance. The recent legislation restricting immigration of laborers from China has given rise to the question whellier Chinese proceeding to or from another country may lawfully i)ass through our own. Construing the act of May G, 1881.', in connection with the treaty of November 7, 1880, the restriction would seem to be limited to Chiueso immigrants coming to tlie United States as laborers, and would not forbid a mere transit across our territory. I ask the attention of Con- gress to the subject for such action, if any, as tnaj'be deemetl advisable. This government has recently had occasion to manifest its interest in the Kepublic of Liberia by seeking to aid the amicable settlement of the boundary dispute now pending between that n^public and tlie British possession of Sierra Leone. 6 ANNUAL MESSAGE OP THE PRESIDENT. The reciprocity treaty with Hawaii will become terminable after Sep- tember 1), 1883, on twelve mouths' notice by either party. While certain provisions of that compact may have proved onerous, its existence has fostered commercial relations which it is important to preserve. I sug- gest, therefore, that early consideration be given to such modifications of the treaty as seem to be demanded by the interests of our i)eople. In view of our increasing trade with both Hayti and Santo Domingo, I advise that provision bo made for diplomatic intercourse with the flatter, by enlarging the scope of the mission at Port-au-Prince. I regret that certain claims of American citizens against the Govern- ment of Hayti have thus far been urged umivailingly. A recent agreement with Mexico provides for the crossingof the front- 'ier by the armed forces of either country in pursuit of hostile Indians. In my message of last year I caUed attention to the prevalent lawlessness iupon the borders and to the necessity of legislaton for its suppression. ;I again invite the attention of Congress to the subject. A partial relief from these mischiefs has been sought in a convention, which now awaits the apjiroval of the Senate, as does also another touching the establishment of the international boundary between the United States and Mexico. If the latter is ratified, the action of Con- gress will be required for establishing suitable commissions of survej'-. The boundary dispute between Mexico and Guatemala, which led this government to proffer its friendly counsels to both parties, has been amicably settled. No change has occurred in our relations with Venezuela. I again invoke your action in the matter of the pending awards against that republic to which reference was made by a special message from the Executive at your last session. An invitation has been received from the Government of Venezuela to send representatives in July, 1883, to Caracas, for participating in the centennial celebration of the birth of Bolivar, the founder of South American independence. In connection with this event it is designed to commence the erection at Caracas of a statue of Washington, and to conduct an industrial exhibition which will be open to American products. I recommend that the United States be represented, ami that suitable provision be made therefor. The elevation of the grade of our mission in Central America to the I)leuipoteutiary rank, which was autliorized by Congress at its late ses- sion, has been since effected. The war between Peru and Bolivia on the one side and Chili on the other began more than three years ago. On the occupation by ChiU in 1880 of all the littoral territory of Bolivia, negotiations for peace were conducted under the direction of the United States. The allies refused to concede any territory, but Chili has since become master of the whole coast of both countries and of the capital of Peru. A year since, as you have already been advised by correspondence transmitted ;to you in January last, this government sent a special mission to the ANNUAL MESSAGE OF THE PRESIDENT. 7 belligerent powers to express the Lope that Chili would bo disixjsed to accept a money indemnity for the expenses of the war and to relinquish her demand for a portion of the territory of her antagonist. This recommendation, which Chili declined to follow, this government did not assume to enforce ; nor can it be enforced witliout resort to measures which would be in keeping neither with the temper of our people nor with the spirit of our institutions. The power of Peru no longer extends over its whole territory, and, in the event of our interference to dictate peace, would need to be sn\>- plemented by the armies and navies of the United States. Such inter- ference would almost inevitably lead to the establishment of a protect- orate — a result utterly at odds with our past policy, injurious to our present interests, and full of embarrassments for tlie future. For effecting the termination of hostilities upon terms at once just to the victorious nation and generous to its adversaries, this government has 8i)ared no efforts save such as might involve the complications which I have indicated. It is greatly to be dei)lored that Chili seems resolved to exact such rigorous conditions of peace and indisposed to submit to arbitration tlie terms of an amicable settlement. No peace is likely to be lasting that is not sufliciently equitable and just to command the approval of other nations. About a year since, invitations were extended to the nations of this continent to send representatives to a peace congress to assemble at "Washington in November, 1882. The time of meeting Avas fixed at a period then remote, in the hope, as the invitation itself declared, that in the mean time the disturbances between the South American republics would be adjusted. As that expectation seemed unlikely to be realized I asked in April last for an expression of opinion fiom the two houses of Congress as to the advisability of holding the proposed convention at the time appointed. This action was prompted in jiart by doubts which mature rellection had suggested whether the diplonuitic usage and traditions of the government did not make it fitting that the Ex- ecutive should consult the representatives of the people before pursuing a line of i)olicy somewhat novel in its character, and far-reaching in its possible consequences. In view of the fact that no action was taken by Congress in the premises and that no provision had been made for necessary expenses, I subsequently decided to postpone the convocation, and so notifiedthe several governments which had been invited to attend. I am unwilling to dismiss this subject without assuring you of my support of any measures tlie wisdom of Congress may devise for the I)romotion of peace on this continent and throughout tlie world, and I trust tl^|it the time is nigh when, with the universal assent of civilized peoples, all international difl\irences shall be determined witliout resort to arms by the benignant processes of arbitration. Changes have occurred in the diplomatic representation of several lj(>reigu powers during the past year. New ministers from the Argeii- 8 ANNUAL MESSAGE OF THE PRESIDENT. tine Kepublic, Austria- Iluiigiiiy, Brazil, Chili, China, France, Japan, Mexico, the Netherlands, and Russia have presented their credentials. The missions of Denniaik and Venezuela at this capital have been raised in grade. Switzerland has created a plenipotentiary mission to this gove.niment, and an embassy from Madagascar and a minister from Siam will shortly arrive. Our di])lomatic intercourse has been enlarged by the establishment of relations with the new Kingdom of Servia, by the creation of a mission to Siam, and by the restoration of the mission to Greece. The Shah of Persia has expressed his gratification that a charge d'affaires will shortly be sent to that country, where the rights of our citizens have been hitherto courteously guarded by the representatives of Great Britain. I renew my recommendation of such legislation as wall j)lace the United States in harmony with other maritime powers with respect to the international rules for the prevention of collisions at sea. In conformity with your joint resolution of the 3d of August last, I have directed the Secretary of State to address foreign governments in respect to a proposed conference for considering the subject of the uni- versal adoption of a common prime meridian to be used in the reckon- ing of longitude and in the regulation of time throughout the civilized world. Their replies will, in due time, be laid before you. An agreement was reached at Paris in 1875 between the principal Powers for the interchange of official publications through the medium of their respective Foreign Departments. The admirable system which has been built up by the enteq)rise of the Smithsonian Institution affords a practical basis for our co-opera- tion in this scheme, and an arrangement has been effected by which that institution will perform the necessary labor, under the direction of the Department of State. A reasonable compensation therefor should be provided by law. A clause in the act making apj^ropriations for the diplomatic and consular service contemplates the reorganization of both branches of such service on a salaried basis, leaving fees to inure to the benefit of the Treasury. I cordially favor such a project, as likely to correct abuses in the present system. The Secretary of State will present to you at an early day a plan for such reorganization. A full and interesting exhibit of the operations of the Treasury De- partment is afforded by the report of the Secretary. It appears that the ordinary revenues fi'om all sources for the fiscal year ended June 30, 1882, were as follows : From customs $220, 410, 730 25 From internal revenue 146, 497, 595 45 From sales of public lands 4, 75|, 140 37 From tax on circulation and deposits of national banks . 8, 956, 794 45 From repayment of interest by Pacific Railway Com- panies 840, 554 37 From sinking fund for Pacific Railway Comi)anies . . . 790, 271 42 ANNUAL MESSAGE OF THE PRESIDENT. From customs fees, fines, penalties, &'c 8'/, 343, 348 00 From fees — consular, letters ])atent, and lands !>, G38, 990 97 From proceeds of sales of g-overnment property 314, 959 85 From profits on coina.tie, bullion deposits, an»t, including river and harbor improvements, and arsenals 43 For the naval establish ni'^.nt, including vessels, ma- chinery, and improvcmv^jits at navy-yards 15 For miscellaneous expen/iitures, including public build- ings, light-houses, ai\d collecting the revenue 34 For expenditures o» account of the District of Co- lumbia 3 For interest on tVAt public debt 71 Total ordinary expenditures 257 Leaving a s«crrplus revenue of 145 Which, v:'ith an amount drawn from the cash bal- ance \n the Ti'easur,y of 20 Making , ,. 166 Was applied to the redemption — Of bonds for the sinking fund 60 Of fractional currency for the sinking fund Of loan of July and August, 1861 62 Of loan of IMa'rch, 1863 -^ Of funded loan of 1881... Of loan of 1858 Of loan of February, 1861 Of five-twenties of 1862 . . Of five- twenties of 1864 . . Of five-twenties of 1865 . . Of ten-forties of 1864 Of consols of 18C5 ot 525, 250 28 042,386 42 307,583 19 736,747 40 345,193 95 570,494 19 032, 046 2G 539,237 50 330,543 87 077,206 79 981,439 57 543,810 71 737,694 84 281,505 55 079,150 00 58, 705 1)5 572,050 00 472,900 00 194.450 00 1,000 00 30 5,000 00 2,100 00 7,400 00 6,500 00 254,550 00 86,450 00 10 ANNUAL MESSAGE OF THE PRESIDENT. Of coiisous of 1807 $iOS, 250 00 Of consols of LSOS lil, 400 00 Of Oregon w;ar debt, . . 075, 250 00 Of old (lemant^!,comi)()un{l-inlei'est,au(l other notes. 18,350 00 100,281,505 55 The foreign conuntMce of the United States during tlie last fiscal year, including iinporus and exports of merchandise and specie, was as follows : Exports : Merchandise . $750, 542, 257 Specie 49, 417, 479 Total 709, 959, 730 Imxjorts : Merchandise 724, 039, 574 Specie 42, 472, 390 Total 707,111,904 Excess of exports over iini)orts of niercha;idise 25, 902, 083 This excess is less than it has been before for any of the previous six years, as appears by the following table : Year ended Jnne 30— Excess of exports over imports of merchandise. 187G $79,043,481 151, 152, 094 257, 814, 234 1877 ,.,.. 1878 1879 264, G61, CCC 1880 167, G83, 912 259, 712, 718 1881 1882 25, 902, 683 During the year there have been organized 171 national bankc, and of those institutions there are now in operation 2,209, a larger nun:ber than ever before. The value of their notes in active circulation on Jitly 1, 1882, was $324,050,458. I commend to your attention the Secretary's views in reject to the likelihood of a serious contraction of this circulation, and to the modes by which that result may, in his judgment, be averted. In respect to the coinage of silver dollars and the retirement of silver certificates I have seen nothing to alter but much to confirm the senti- ments to which I gave expression last year. A comi)arison between the respective amounts of silver- dollar circula- tion on November 1, 1881, and on November 1, 1882, shows a slight increase of a million and a half of dollars. But during the interval there had been in the Avhole number coined an increase of twenty-six millions. Of the one hundred and twenty-eight millions thus far minted, little ANNUAL MESSAGE OP THE PRESroENT. 11 more than thirty-five millious are in circulation. The mass of accumu- lated coin has grown so great that the vault room at present available for storage is scarcely sullicieut to contain it. It is not api)areMt why it is desirable to continue this coinage, now so enormously in excess of the public demand. As to the silver certificates, in addition to the grounds which seemed last year to justify their retirement may be mentioned the effect which is likely to ensue from the supply of gold certificates, for whose issu- ance Congress recently made provision, and which are now in active circulation. You cannot fail to note with interest the discussion by the Secretary as to the necessity of providing by legislation some mode of freeing the Treasury of an excess of assets, in the event that Congress fails to reach an early agreement for the reduction of taxation. I heartily approve the Secretary's recommendation of immediate and extensive reductions in the annual revenues of the government. It will be remembered that I urged upon the attention of Congress at its last session the importance of relieving the industry and enterprise of the country from the pressure of unnecessary taxation. It is one of the tritest maxims of political economy that all taxes are burden- some, however wisely and prudently imposed. And thongh there have always been among our people wide differences of sentiment as to the best methods of raising the national revenues, and, indeed, as to the principles upon which taxation should be based, there has been substantial accord in the doctrine that only such taxes ought to be levied as are necessary for a wise and economical "administration of the government. Of late the public revenues have far exceeded that limit, and unless checked by appropriate legislation such excess will continue to increase from year to year. For the fiscal year ended June 30, 1881, the surplus revenue amounted to one hundretl millions of dolhirs; for the fiscal year ended on the 30tli of June last the surplus was more than one hundred and forty-five millions. The report of the Secretary shows what disposition has been made of these moneys. They have not only answered the requirements of the sinking fund, but have aflbrded a large balance applicable to other reductions of the public debt. But I renew the expression of my conviction that such rapid extin- guishment of the national indebtedness as is now taking ]tlace is by no means a cause for congratulation ; it is a cause rather for serious ap- prehension. If it continues, it mu^ speedily be followed by one of the evil results so clearly set fortfi in the report of the Secretary. Either the surjilus must lie idle in the Treasury, or the gov(»rnnu'nt will be forced to buj-, at market rates, its bonds not then rcdeemal)!!', and which, under such circumstances, cannot fail to command an enor- mous premium, or the swollen revenues will be devoted to extravagant 12 ANNUAL MESSAGE OF THE PRESIDENT. exi)eii(liture, wliicli, as expei-ience lias tauglit, is ever the bane of an overtlowiiiff treasury. Jt was made a])i)arent in tlie course of tlio aiiimat(Ml discussions wliich this question aiousod at tlie hist session of Coui;ress that tlie policy of diminishing the revenue by reducing taxation commanded the general approval of the members of both houses. I regret tliat because of conflicting views as to tlie best metliods by which that policy slioukl be made oxierative none of its benefits have as yet been reaped. In fulfillment of what I deem my constitutional duty, but with little hope that I can make valuable contribution to this vexed question, I shall proceed to intimate briefly my own views in relation to it. Upon the showing of our financial condition at the close of the last fiscal year, I felt justified in recommending to Congress the abolition of all internal-revenue taxes except those ui)OU tobacco in its various forms and upon distilled spirits and fermented liquors ; and except also the special tax upon the manufacturers of and dealers in such articles. I venture now to suggest that, uidess it shall be ascertained that the probable expenditures of the government for the coming year have been underestimated, all internal taxes, save those which relate to dis- tilled spirits, can be prudently a.brogated. Such a course, if accompanied by a simi3lifi cation of the machinery of collection, which would then be easy of accomplishment, might reason- ably be expected to result in diminishing the cost of such collection by at least two millions and a half of dollars, and in the retirement from office of from fifteen hundred to two thousand persons. The system of excise duties has never commended itself to the favor of the American peoi)le, and has never been resorted to except for sup- ])lying deficiencies in the Treasury when, by reason of special exigencies, the duties on imports have proved inadequate for the needs of the gov- ernment. The sentiment of the country doubtless demands that the ])resent excise tax shall be abolished as soon as such a course can be safely pursued. It seems to me, however, that, for various reasons, so sweeping a meas- ure as the total abolition of internal taxes would for the present be an unwise step. Two of these reasons are deserving of special mention : First, it is by no means clear that even if the existing system of duties on imports is continued without modification, those duties alone will yield suflicient revenue for all the needs of the government! It is estiniated that one hundred millions of dollars will be required for pensions during the coming j'ear, and it may well be doubted whether the maximum annual demand for that object has yet been reached. Uncertaiiity upon this question would alone justify, in my judgment, the retention for the present of that portion of the system of internal revenue which is least objectionable to the people. ANNUAL MESSAGE OF THE PRESIDENT. 13 Second, a total abolition of excise taxes would almost inevitably prove a serious if not an insurmoaintable obstacle to a thorough revision of the tariff and to any considerable reduction in import duties. The present tariff system is in many respects uujust. It makei? une- qual distributions both of its burdens and its beuetits. This fact was practically recognized by a majority of each honse of Congress in the passage of the act creating the Tariff Commission. The report of that commission will be placed before you at the beginning of this session, and will, I trust, afford you such information as to the condition and prospects of the various commercial, agricultural, manufacturing, min- ing, and other interests of the country and contain sucii suggestions for statutory revision as will practically aid your action upon this im porta wt subject. The revenue from customs for the fiscal year ended June 30, )S79, amounted to $137,000,000. It has in the three succeeding years reached, first, $180,000,000 ; then, $198,000,000; and finally, as has been already stated, $:J2O,O(>i5,O0O. The income from this source for the fiscal year which ^vriu end on Jane 30, 1883, will doubtless be considerably in excess of the sum last mentioned. If the tax on domestic spirits is to be retained, it- is plain there- fore that large reductions from the customs revenue y.re entirely feasi- ble. While recommending this reduction I am far from advising the abandonment of the policy of so discriminating ijri the adjustment of details as to attbrd aid and protection to douiostic labor. But the present system should be so revised as to equalize the public burden among all classes and occupations, and bring- it into closer harmony Avith the present needs of industry. AVithout entering jnto minute detail, which, under present circum- stances, is quite unnecessary, I recommend an enlargement of the free list so as to include within it the numerous articles which yield incon- siderable revenue, a simplification of the complex and inconsistent schedule of duties upon certain manufacUires, jiarticularly those of cotton, iron, and steel, and a substantial reduction of the duties njion those articles, and upon sugar, molasses, silk, wool, and woolen goods. If a general revisiou of the tariff shall be found to be impracticable at this session, I expre.'-.s the hope that at least some of the more conspicu- ous inequalities of the present law may be corrected before your final adjournment. One of them is specially referred to by the Secretary. In view of a recent decision of the Su])reme Court, the necessity of a'-Viending the law by which the Dutch standard of color is adopted as the test of the saccharine strength of sugars is too olivions to rcfpiin' comment. From the report of the Secretary of War it appears that the only outbreaks of Indians during the past year occurred in Arizona and in 14 ANNUAL MESSAGE OF THE PRESIDENT. the southwestern part of New Mexico. They were promptly quelled and the quiet which has prevailed in all other j)arts of the country has permitted such an addition to be made to the niilitary force in the region endangered by the Apaches that there is little reason to apprehend trouble in the future. Those parts of the Secretary's report which relate to our sea coast defences and their armament suggest the gravest reflections. Our ex- isting fortifications are notoriously inadequate to the defense of the gTcat harbors and cities for whose protection they were built. The question of providing an armament suited to our present neces- sities has been the suTyect of consideration by a Board, whose report \Vas transmitted to Congress at the last session. Pending the consider- ation of that report, the War Department has taken no steps for the manufacture or conversion of any heavy cannon, but the Secretary ex- ]nesseits the hope that authority and means to begin that important work will be' soon provided. I invite tlie attention of Congress to the ])ro- priety of making more adequate provision for arming and equipping the militia than is afforded by the act of 1808, which is still ui)on the statute-book. The matter has already been the subject of discussion in the Senate, au\l a bill which seeks to supply the deficiencies of existing laws is now upi;£i its calendar. The Secretary pf War calls attention to an embarrassment grow- ing out of the rece'Xit act of Congress making the retirement of officers of the army comput^x^ry at the age of sixty-four. The act of 1878 is still in force, which limits to four hundred the number of those who' can be retired for disability or upon their own application. The two acts, when construed together, seem to forbid the relieving, even for absolute incapacity, of oflicers who do not fall within the purview of the later statute, save at sucli times as there chance to be less than four hundred names on the retired list. There are now four hundred and twenty. It is not likely that Congress intended this result, and I concur with the Secretary, that the law ought to be amended. The grounds that impelled me to withheld my signature from the bill entitled "An act making appropriations for tlie construction, repair, and preservation of certain works on rivers and hjirbors," which became a law near the close of your last session, prompt me to express the hope that no similar measure will be deemed necessary during the present session of Congress. Indeed, such a measure would now be open to a serious objection in addition to that which was lately urged upon your attention. I am informed by the Secretary of War that the greater portion of the sum appropriated for the various items specified in th^t act rem;iius unexpended. Of the new works which it authorized, expenses have been incurred upon two only, for which the total appropriatioii was 6210,000. The present available balance is disclosed by the following table: ANNUAL MESSAGE OF THE PRESIDENT. 15 Amount of appropriation by act of August 2, 1S82 $18, 738, 875 Amount of api>ropriation by act of June 19, 1882 10, 000 Amount of appropriation for payments to J. B. Eads 304, 000 Unexpended balance of former appropriations 4, 738, 263 23, 701, 138 Less amount dra^vn from Treasury between July 1, 1882, and November 30, 1882 G, 050, 194 $17, 734, 944 It is apparent by this exhibit, that so far as concerns most of the items to which the act of August 2, 1882, relates, there can be no need of further appropriations until after tlie close of the present session. If, however, any action should seem to be necessary in respect to par- ticular objects, it will be entirely feasible to provide ft)r those objects l)y appropriate legislation. It is possible, for example, that a delay until the assembling of the next Congress to make additional i)rovision for the Mississipx)i Eiver imj>rovements might be attended with serious consequences. If such should appear to be the case, a just bill relating to that subject would command my approval. This leads me to offer a suggestion which I trust will coianicnd itself to the wisdom of Congress. Is it not advisable that grants of consid- erable sums of money for diverse and independent schemes of internal improvement should be made the subjects of separate and distinct leg- islativtj enactments ? It will scarcely be gainsaid, even by those who favor the most liberal expenditures for such i)urposes as are sought to be accomplished by what is commonly called the river and harbor bill, that the practice of grouping in such a bill appropriations for a great diversity of objects, widely' separated, either in their nature or in the locality with which they are concerned, or in both, is one which is much to be deprecated unless it is irremediable. It inevitably tends to secure the success of the bill as a whole, though numy of the items, if separately considered, could scarcely fail of rejection. By the adoption of the course I have recommended, every member of Congress, when- ever o])portunity should arise for giving his influence and vote for mei-i- torious appropriations, would be enabled so to do without being called upon to sanction others undeserving his approval. So also would the Executive be afforded thereby full opportunity to exercise his constitu- tional prerogative of opposing whate\'er appropriations seemed to him objectionable, without imi)eriling the success of others which commend- ed themselves to his judgment. It may be urged in opposition to these suggestions that the number of works of internal improvement which are justly enlitU'd to govern- mental aid is so great as to render impracticable separate appropriation bills therefor, or even for such com]>aratively limited numher as make disposition of large sums of money. Tliis objection may be well fouTuled, and, whether it be or not, the advantages which would bo likely to ensue 16 ANNUAI. JVfESSAGE OF THE PRESIDENT. irom the adoptiou of the course I have recommended may x)eihaps be more effectually attained l)y another, which I respectfully submit to Congress as an alternative proposition. It is provided by the constitutions of fourteen of our States that the Executive may disapprove any item or items of a bill appropriating money ; whereu])on the part of the bill approved shall be law, and the jjart disapproved shall fail to become law, unless repassed according to the provisions prescribed for the passage of bills over the veto of the Executive. The States wherein some such provision as the fore- going is a part of the fundamental law are, Alabama, California, Colo- rado, Florida, Georgia, Louisiana, Minnesota, IVIissouri, Nebraska, New Jersey, New York, Pennsylvania, Texas, and West Virginia. I com- mend to your careful consideration the question whether an amendment of the Federal Constitution in the particular indicated would not afford the best remedy for what is often a grave embrrrassment both to mem- bers of Congress and to the Executive, and is sometimes a serious public mischief. The report of the Secretary of the Navy states the movements of the various squadrons diuing the year, in home and foreign waters, where our ofiQcers and seamen, with such ships as we possess, have continued to illustrate the high character and excellent discipline of the naval organization. On the 21st of December, 1881, information was received that the exploring steamer Jeannette had been crushed and abandoned in the Arctic Ocean. The officers and crew, after a joiu-ney over the ice, em- barked in three boats for the coast of Siberia. One of the parties, under the command of Chief Engineer George W. Melville, reached the land, and, falling in with the natives, was saved. Another, under Lieutenant- Commander De Long, landed in a barren region near the mouth of the Lena River. After six weeks had elapsed all but two of the number had died from fatigue and starvation. No tidings have been received fix)m the party in the third boat, under the command of Lieutenant Chipp, but a long and fruitless investigation leaves little doubt that all its members perished at sea. As a slight tribute to their heroism I give in this communication the names of the gallant men who sacrificed their lives on this expedition: Lieutenant-Commander George W. De Long, Surgeon James M. Amblej-, Jerome J. Collins, Hans Habner Erichsen Heinrich H. Kaacke, George W. Boyd, Walter Lee, Adolph Dressier Carl A. Gortz, Nelse Iverson, the cook Ah Sam, and the Indian Alexy The officers and men in the missing boat were Lieut. Charles W. Chii)p commanding; William Dunbar, Alfred Sweetman, Walter Sharvell Albert C. Kuehne, Edward Star, Henry D. Warren, and Peter E. John son. Lieut. Giles B. Harber and Master William H. Scheutze are now bringing home the remains of Lieutenant De Long and his comrades, in pursuance of the directions of Congress. ANNUAL MESSAGE OF THE PRESIDENT. 17 The Koilgers, fitted out for the relief of the Jeauuette, in accordaDce with the act of Congress of March 3, ISSl, sailed from Sau Francisco June 16, under the command of Lieut. Eobert M. Berry. On November 30 she was accidentally destroyed by fire, while in winter quarters in St. Lawrence Bay, but the officers and crew succeeded in escaping to the shore. Lieutenant Berry and one of his officers, after making a search for the Jeannette along the coast of Siberia, fell in witli Chief Engineer Melville's party, and returned home by way of Europe. The other offi- cers and the crew of the Eodgers were brought from St. Lawrence Bay by the whaling steamer Xorth Star. jMaster Charles F. Putnam, who had been placed in charge of adei)ot of supplies at Cape Serdze, return- ing to his post from St. Lawrence Bay across the ice in a blinding suow*- storm, was carried out to sea and lost, notwithstanding all eftbrts to rescue him. It appears bj^ the Secretary's report that tlte available naval force of the United States consists of thirty-seven cruisers, fourteen single- tnrreted monitors, built during the rebellion, a large number of smooth- bore guns and Parrott riiies, and eighty-seven rifled cannon. Tlie cruising vessels should be gradually replaced by iron or steel ships, tlie monitors by modern armored vessels, and the armament by high-power rifled guns. The reconstruction of our Navy, which was recommentled in my last message, was begun by Congress authorizing, in its recent act, thecoii- structiou of two large uuarmorod steel vessels of the character reooiii- mended by the late iS'aval Advisory Board, and subject to the final ai>- ] uoval of a new advisory board to be organized as provided by that Act. I call yourattentiou to the recommendation of the Secretary and tho Board, that authority be given to construct two more cruisers of smaller dimen- sions, and one fleet dispatch ^•essel, and that appropriations be made for high-power rifled cannon, for the torpedo service, and for other harbor delenses. Pending the consideration by Congress of the policy t^ be hereafter adopted in conducting the eight large navy-yards and their expensive establishments, the Secretary advocates the reduction of expenditures therefor to the lowest possible amounts. l'\)r the purpose of atibrding the officers and seamen of the Xavy op- portunities for exercise and discipline in their profession, under a]>pro- l)riate control and direction, the Secretary aublic interests mil be discovered upon reviewing the results of fornier reduc- tions. Immediately prior to the act of 1845, the postage upon a letter comi- posed of a single sheet was as follows : Cents. If conveyed— 30 miles or less 6 Between 30 and 80 miles 10 Between 80 and 150 miles 12i Between 150 and 400 miles 18| Over 400 miles 25 By the act of 1845 the postage upon a single letter conveyed for any distance under 300 miles was fixed at five cents, and for any greater distance at ten cents. By the act of 1851 it was provided that a single letter, if prepaid, should be carried any distance not exceeding three thousand miles for three cents and any greater distance for six cents. It will be noticed that both of these reductions were of a radical char- acter and relative!}^ quite as important as that which is now proposed. In each case there ensued a temporary loss of revenue, but a sudden and large influx ofbusiness, which substantijilly repaired that loss within three years. Unless the experience of past legislation in this country and else- where goes for naught it may be safely predicted that the stimulus of 33^ I)er centum reduction in the tax for carriage would at once increase the Jiumber of letters consigned to the mails. The advantages of secrecy would lead to a very general substitution of sealed packets for postal cards and open circulars, and in divers other ways the volume of first-class matter would be enormously angnuMited. Such increase amounted in England, in the first year after the aersons, larthe larger part of whom mnst, under the terms of the Constitution, be selected by the President either directly or through hiV^ nwu ap- pointees. In the early years of the administration of the governnicat, tlu; per- sonal direction of appointments to the civil service may not have been an irksome task for the Executive; but now, that the burden has increased fully a hundred-fold, it has become greater than he ought to bear, and it necessarily diverts his time and attention from the proper discharge of other duties no less delicate and responsible, and which, in the very nature of things, cannot be delegated to otlier hands. In the judgment of not a few who have given study ami rcHection to this matter, the nation has outgrown the provisions which the Con- stitution has established for filling the minor oflices in the public service. But whatever may be thought of the wisdom or expediency of chang- ing the fundamental law in this regard, it is certain that much relief may be afforded, not only to the President and to the heads of the de- partments, but to Senators and Representatives in Congress, by dis- creet legislation. They would be protected in a great measure l)y the bill now pending before the Senate, or by any other whicli should embody its important features, from the pressure of personal importun- ity and from the labor of examining conflicting claims and pretensions of candidates. I trust that before the close of the present session some decisive action may be taken for the correction of the evils whicli inhere in the present methods of appointment, and I assure you of my hearty co-oi)era- tion in any measures which are likely to conduce to that end. As to the most appropriate term and tenure of the oflicial life of the subordinate employes of the government, it seems to be generally agreed that whatever their extent or character, the one should be detinite and the other stable, and that neither should be regulated by zeal in the service of party or fidelity to the fortunes of an individual. It matters little to the people at large what competent person is at the head of this department or of that bureau, if they feel assured that the removal of one and the accession of another will not involve the retirement of honest and faithful subordinates, whose duties are i)urely administrative and have no legitimate connection with the triumph of any political principles or the success of any political party or faction. It is to this latter class of ofiicers that the Senate bill, to which I have already referred, exclusively applies. While neither that bill nor any other prominent scheme for improv- ing the civil service concerns the higher grade of officials, who are 24 ANNUAL MESSAGE OF THE PRESIDENT. appointed by the Presidejit ;md eontinned by the Senate, J feel bound to correct a i)revalont misai)i)reliension as to tlie frequency with which tlie present Executive has displaced the incnmbent of an office and appointed another in his stead. It has been repeatedly alle<»ed that he has in this particuljir signally depai'ted from the course which has been pursued under recent admin- istrations of the government. The facts are as follows : The Avhole number of Executive appointments during the lour years immediately preceding Mr. Garfield's accession to the l^residency was Of this number 244, or D per cent., involved the removal of previous incumbents. The ratio of removals to the whole number of a])pointments was iiUK'h the same during each of those four years. In the first year, with 790 appointments, there were 74 removals, or 9.3 per cent.; in the second, with 917 appointments, there were 85 re- movals, or 8.5 i)er cent.; in the third, with 480 appointments, there were 48 removals, or 10 per cent.; in the fourth, with 429 api)ointments, there were 37 removals, or 8.G per cent. In the four months of President Garfield's administration there were 390 appointments and 89 removals, or 22.7 per cent. Precisely the same number of removals (89) has taken place in the fourteen months which have since elapsed, but they constitute only 7.8 per cent, of the whole number of appointments (1,118) within that period, and less than 2.6 of the entire list of officials (3,459 (exclusive of the Army and ISTavy)) which is filled by Presidential appointment. I declare ray approval of such legislation as may be found necessary for sui^plementing tlie existing provisions of law in relation to political assessments. In July last I authorized ai3ublic announcement that employes of Uie government should regard themselves as at liberty to exercise their pleasure in making or refusing to make i^olitical contributions, and that their action in that regard would in no manner affect their official status- In this announcement I acted upon the view which I had always maintained and still maintain, that a public officer should be as abso- lutely free as any other citizen to give or to withhold a contribution for the aid of the political party of his choice. It has, however, been urged, and doubtless not without fopndation in fact, that by solicitatioii of official superiors and by other modes, such contributions have at times been obtained from persons whose only motive for giving has been the fear of what might befall them if they refused. It goes without saying that such contributions are not voluntary, and in my judginent their collection should be prohibited by law. A bill which will effectually suppress them will receive my cordial approval. ANNUAL MESSAGE OF THE PRESIDENT. -^6 I liope that however numerous and urgent may be the demands upon your attention, the interests of this District will not be forgotten. The denial to its residents of the great right of suffrage in all its re- lation to national, State, and municipal action imposes upon Congress the duty of affording them the best administration which its wisdom can devise. The report of the District Commissioners indicates certain measures whose adoption would seem to be very desirable. I instance in par- ticular those which relate to arrears of taxes, to steam railroads, and to assessments of real property. Among the questions which have been the topic of recent debate in the halls of Congress none are of greater gravity than those relating to the ascertainment of the vote for Presidential electors and tlie in- tendment of the Constitution in its i)rovisious for devolving Executive functions ui)on the Vice-President when the President suflers from in- nbility to discharge the powers and duties of his office. 1 trust that no embarrassments may result from a failure to determine these questions before another national election. The closing year has been replete with blessings for which we owe to the Giver of all Good our reverent acknowledgment. For the un- interrupted harmony of our foreign relations, for the decaj- of sectional animosities, for the exuberance of our harvests and the triumphs of our mining and manufacturing industries, for the prevalence of health, the spread of intelligence and the conservation of the public credit, for the growth of the coujitry in all the elements of national greatness — for these and countless other blessings — we should rejoice and be glad. 1 trust that, under the ins])iratiou of this great prosperity, our counsels n)ay be harmonious, and that the dictates of prudence, patriotism, jus- tice, and economy may lead to the adoption of measures in wliich the Congress and the Executive may heartily unite. CHESTER A. ARTHUE. Washington, Decemher 4, 1882. REPORT OF THE SECRETARY OF THE TREASURY. Treasury DEPAET:\rENT, Washington, D. (7., December 4, 1883. SiE: I liave the lionor to submit tlie following report : The ordinary revenues from all sources for the fiscal year ended June 30, 1883, were: From customs $330, 110, 730 35 From internal revenue 110, 197, 595 45 From sales of public lands 4, 753, 110 37 From tax on circulation and deposits of national banks 8, 956, 791 45 From repayment of interest by Pacific Kaihvay Com- panies 840, 554 37 From sinking-fund for Pacific Eail way Companies.. 796,371 43 From customs fees, tines, penalties, &c 1, 343, 348 00 From fees — consular, letters-patent, and lands 3, 038, 990 97 From proceeds of sales of Government property 311, 959 So Paid in from profits on coinage, bidlion deposits, and assays 4, 110, 693 73 From Indian trust funds 5, 705, 313 33 From deposits by individuals for surveving public lauds \ 3, 053, 306 36 From revenues of the District of Columbia 1, 715, 176 41 From miscellaneous sources 3, 383, 445 43 Total ordinary receipts 403, 535, 350 2S The ordinary exjienditures for the same period were — For civil expenses S18, 043, 386 43 For foreign intercourse 1, 307, 5S3 19 For Indians 9, 736, 747 10 For pensions 61 , 345, 193 95 For the military establishment, including river and harbor iniin-oveinents, and arsenals 43, 570, 491 19 For the naval cstahlislunent, including vessels, ma- chinery, and improvements at navyyaids 15, 033, OKJ 36 For miscellaneous cxi>enditures, including public buildings, liglit-Iiuuses, and collecting the levenne. 31,539,337 50 For expenditures on account of the I)istrict of Co- lumbia 3, 330, 513 S7 For interest on the public debt 71 , 077, 306 79 Total ordinary expenditures 357, 981, 439 57 27 28 KKl'ORT OF THE SECRETARY OF THE TREASURY. Ijoaviji,!:; a surplus revenue of $145, 543, 810 71 Whicli, with an amount drawn from the casli bal- ance in tl)o Ti't^asnry, <»(' , 20, 737, 094 84 Making 1G6, 281, 505 55 Was applied to the redemption — Of bonds for the sinking-fund 60, 079, 150 00 Of fractional curreucv for the sinking-fund 58, 705 55 Of loan of July and August, 1861 62, 572, 050 00 Of loan of March, 1803 4, 472, 000 00 Of funded loan of 1881 37, 194, 450 00 Of loan of 1858 1, 000 00 Of loan of February, 1861 303, 000 00 Of five-twenties of 1862 2,100 00 Of five-twenties of 1864 7, 400 00 Of five-twenties of 1805 6, 500 00 Of ten-forties of 1864 254, 550 00 Of consols of 1865 86, 450 00 Of consols of 1867 408, 250 00 Of consols of 1868 141, 400 00 Of Oregon-war debt 675, 250 00 Of old demand, compound-interest, and other notes . 18, 350 00 166, 281, 505 55 The requirements of the sinking-fund for the past fiscal year, includ- ing a balance of $16,305,873.47 from the preceding year, have been fully met. It is estimated that the requirement for the present fiscal year will be $44,422,956.25, of which there has been applied during the first four months of the year, the sum of $31,196,350. There seems to have been confusion in some minds, of the sums paid to meet the lawful needs of the sinking-fund, and those paid for the reduction of pubhc debt by direct payment and redemption thereof. To my report of last year was appended a table (Table L) of all the moneys paid for bonds for the sinking-fund; and a table (Table I) showing the condition of that fund from the begimiing of it in May, 1869, down to June 30, 1881. It was stated in my report that there was a balance then due the fund of $16,305,873.47. It has been said that this was erroneous. The report of my predecessor, Mr. Secretary MorriU, made in 1876, was relied upon as so showing. He said that the terms of the sinking-fund act required that the public debt should be reduced by the close of the fiscal year in 1876 by the sum oi" $433,848,215.87 ; that the public debt had, however, been reduced at that time by the siun of $656,992,226.14, or over two hundred and twenty-three millions more than those terms required. He did not'say, nor did he mean to say, that the reduction he announced was achieved tlirough the operations of the sinking-fund. What he said, and meant REPORT OF THE SECRETARY OF THE TREASURY. 29 to say, was tliat, tlioiij^li the sinkiiig-fimd Lad not been tilled to the amount contemplated bj' the act of Congress which jirovided for it, and so the letter of the law had not been observed, yet that, by other modes, the public debt had been reduced by more than the sum which the sinking-fund act contemplated, and so the spirit and intent of the law had been met and the faith of the Government with its creditors kept. And so, after his time, though the sinking-fund has been a creditor, the public debt has been decreased by more than a strict adherence to the sinking-fund act would have brought about. My pre- decessor, Mr. Secretary Sherman, reported in 1877 a deficiency in the sinking-fund, but a reduction of public debt near two hundred and twenty-one millions more than the sinking-fund act, literally carried out, would ]i.ave effected. Compared with the previous fiscal year, the receipts for 1SS2 have in the following items increased $44,578,081.99 : In customs reveruie, $22,251,054.23; in internal revenue, $11,233,209.94; in sales of public lands, $2,551,277.20 ; in direct tax, $158,624.80; in tax on circulation and deposits of national banks, $840,678.73 ; in proceeds of sales of Government property, $52,785.85; in repaj-ment of interest by Pacific Eailway Companies, $29,720.57 ; in consular fees, $8,922.98 ; in custom- house fees, $7,538.35; in customs emolument fees, $155,083.98; in marine-hospital tax, $22,155.89 ; in Indian trust funds, interest and premium, $5,753,308.29 ; in deposits by individuals for surveying public l^ds, $248,160.81 ; in registers' and receivers' fees, $243,295.29 ; in fees on letters-patent, $141,788.72; in profits on coinage, $648,208.12; and in sales of ordnance material and small stores, $232,268.24. There Avas a decrease of $1,835,124.28, as follows: In revenues of the District of Columbia, $301,022.82 ; in sinking-fund for Pacific Railway Companies, $8,909.12; in customs fines, penalties, and forfeitures, $44,789.19 ; in steamboat fees, $27,664.91 ; in sales of Indian lauds, and interest on t)efeiTed payments, $1,078,316.30; and in miscellaneous items, $374,421.94; making a net increase in the receipts from all sources of $42,742,957.71. The expenditures show a decrease over the previous year of $20,343,982.30, as follows: In the Navy Department, $654,625.40 : in interest on the public debt, $11,431,534.39 ; and in civil and miscella- neous, $8,257,822.51. There was an increase of $17,612,534.28, as fol- lows : In the War Department, $3,104,033.64 ; for ludians, $3,222,.")^ 6.31 ; and in pensions, $11,285,914.33 — making a net decrease in the expend- itures of $2,731,448.02. 30 REPORT OF THE SECRETARY OF THE TREASURY. FISCAL YEAR 1883. For the present fiscal year the revenue, actual and estimated, is as follows : Source. For the. qnartcr ended Sejitem- ber 30, 1882. For tlio lemain- in<; tliroc quar- ters of the year. Actual. Estimated. $64,908,875 71 37,760,804 58 1, 185, 622 97 4,492,426 39 114, 619 55 422, 140 09 822, 842 49 113, 995 95 1, 040, 119 39 894, 128 04 194, 314 88 840,717 28 $170,091,124 29 107, 239, 195 42 4,314,377 03 4,507,573 61 1, 635, 380 45 977, 859 91 1,827,157 51 886,004 05 3, 159, 880 61 1,505,871 96 1,535,685 12 4, 529, 282 72 112, 790, 607 32 302,209,392 68 From customs From internal revenue From sales of public lauds From tax on circulation and deposits of national Ijanks From repayment of interest and sinking-fund, Pacific Railway Comi)anies From customs fees, fines, penalties, &c From fees — consular, letters-patent, and lands From proceeds of sales of Government property . From profits on coinage, &o , From deposits for siu'veying public lands , From revenues of the District of Columbia From miscellaneous sources Total receipts The exi^enditures for the same period, actual and estimated, are — Object. For the quarter ended Septem- ber 30, 1882. Actual. For the remain- ing tliree quar- ters of the year. Estimated. For civil and miscellaneous expenses, including public buildings, light-houses, and collecting the revenue For Indians For pensions For military establishment, including fortifica- tions, river and harbor improvements, and arsenals For naval establishment, including vessels and machinery, and improvements at navy-yards. .. For expenditures on account of the District of Columbia For interest on the public debt $16, 224, 2, 633, 23, 397, 14, 181, 3,571, 1, 415, 17, 219, 736 16 778 88 244 51 028 69 431 83 882 20 246 19 $45,275,203 84 4,866,221 12 76, 602, 755 49 33,318,971 31 11, 928, 568 17 2, 084. 117 80 42,280,753 81 Total ordinary expenditures . 78, 643, 348 46 216, 356, 651 54 Total receipts, actual and cstiinated $415, 000, 000 00 Total expenditures, actual and estimated 295, 000, 000 00 120,000,000 00 Estimated amount due the sinking-fund 41, 422, 950 25 Leaving a balance of 75, 577, 04.3 75 • KEPORT OF THE SECRETARY OF THE TREASURY. 31 FISCAL YEAR 18S4. Tlie revenues of the fiscal yeareiuling June 30, 1o,ooi> 1 25V,IVA'> 38 REPORT OP THE SECRETARY OF THE TREASURY. CONVERSION OF REFUNDING CERTIFICATES. At the date of the last report refunding- certificates issued under the act of February 2G, 1879, remaiued outstanding to the amount of $589,050. Q'here have been presented during the year for conversion into four per cent, bonds, certificates amounting to $174,300, leaving still un- converted $423,750. In the language of the act, these certificates are " convertible at any time, with accrued interest, into the four per cent, bonds de- scribed in the refunding act." Prior to May 1, 1882, it had been the practice of the Dei^artment to convert the principal only of the cer- tificates into four per cent, bonds, paying the interest accrued on the certificates in lawful money. A holder of refunding certificates having made a demand upon the Department to have the interest accrued on his certificates, as well as the principal thereof, converted into four per cent, bonds, the question was referred to the Department of Justice for examination. In the opinion of the Attorney-General which was furnished this Depart- ment, the claim thus made was held to be justified by the language of the act, and on conversions effected since May 1, four per cent, bonds have b^ien issued in satisfaction of the interest accrued on the certificates, in lieu of the payment of lawful money, in all cases where such interest amounted to a sum sufficient to entitle the holder to a bond. Up to November 1, 1882, $5,500 in four per cent, bonds have been issued in this manner, making an increase to that extent of the amount of such bonds outstanding, but not increasing the total debt. CONTINUED TRUST-FUND BONDS. It was stated in the last report that $451,350 in bonds of the five per cent, funded loan, held by the Secretary of the Treasury as a part of the sinking-fund for the Pacific Eailroads, had been continued at three and a half per cent., and that $52,000 in bonds of the same loan, held in trust for the South Carolina school -fund, had also been continued in preference to allowing the bonds to be redeemed and in- vesting the proceeds in other bonds. For the same reason the three and a half per cent, bonds have now been exchanged into three per cent, bonds of the act of July 12, 1882. COINS AND COINAGE. The report of the Director of the Mint gives, in detail, the transac- tions of the mint, and assay offices during the year, together with sta- REPORT OF THE SECRETARY OF THE TREASURY. 39 tistics and inquiiies into the financial condition of our own and forci^ countries. The inii)orts of foreign gold coin and bullion were during the pre- ^'ion.s year ninety-seven and one-half millions. During the last fiscal year the excess of imports over exports was about one and three-quarter millions. There were during the fiscal year ended June 30, 1882, exports of — Gold bullion $1, 600, 43G Gold coin, Amorican L'O, 805, 281) Gold coin, foreign 1, 182, 1 T)."* Total 32, 587, 880 \ ==^=: Silver bullion $11, 732, 340 Silver coin, American 423, 008 Silver coin, foreign 4, 074, 100 Total 10, 829, 509 Total gold and silver $49, 417, 479 There were imjiorts of — Gold bullion $0, 40G, 053 Gold coin, American 4, 790, 030 Gold coin, foreign .* 20, 174, 371 Total 34, 377, 054 Silver bullion $2, 121, 733 Silver coin, American 940, 877 Sdver coin, foreign 5, 032, 72G Total 8, 095, 330 Total imports of gold and silver , $42, 472, 390 There were dei)ositcd at tlie mints and assay ollices $0(!, 750,053 of gold, which was $74,000,000 less than the preceding year, because of the decrease in the imports. The coinage at the mints during the fiscal j'ear was — Gold $89, 413, 4 t7 50 Standard silver dollars 27, 772, (>75 (lO Fractional vsilver coins 11,313 75 Minor cuins 044, 757 75 Total 117, 841, 594 00 40 REPORT OF THE SECRETARY OP THE TREASURY. The coinai;'e of gold was nearly $11,000,000 iiioic tliaii that of any- previous year in the history of the mints. About one-half of this was in eagles, one-third in half-eagles, and the rest in double-eagles. The purchase of silver for coinage during the year was 23,627,229.37 ounces of standard silver, at a cost of $24,136,942.20, an average of $1.02.15 per ounce standard. The average London price for silver was 51^1 pence per ounce of British standard fineness, equivalent to $1.02.26 per ounce United States standard, and the average New York price was $1.02,419 per ounce standard. During the year, about $29,000 of punched and mutilated silver coins were purchased and melted for recoinage. The stiver coinage consisted of $27,772,075 in standard dollars, and $11,313.75 in fractional coin, a total of $27,783,388.75. The profits on the silver coinage amount to $3,440,887.15, of which $3,438,829.41 were from the coinage of the dollar and $2,057.74 from fi-actional coin. Wlien the financial report of this Department was made last year, public queries were started whether the profits on coinage were truly given. To satisfy myself and please a proper public scrutiny, I called a fitting official person from the assistant treasurer's office at New York, and charged him with a thorough investigation of the matter. Wliat he did appeajrs in his report appended hereto. I think it is complete and satistiictory, and puts at rest any doubt that the accounts have been accurately kept and truly reported. During the year the mints distributed 15,747,463 standard silver dollars, leaving in their vaults 35,365,672, from the coinage of this and former years. Of the minor or base-metal coins, 46,865,725 pieces were struck, in value $644,757.75. Of this, 4,400,775 pieces, in value $220,038.75, were five-cent nickel coins, for which the demand was large during the year. The rest of it was principally of one-cent pieces. Besides the coinage, $37,505,120 worth of gold and $8,129,202 worth of silver was made into bars. Up to October 1, under the act of May 26, 1882, $6,588,000.06 in fine gold bars fit for export were changed for gold coin at the New York assay office, thus saving the exi3ense of coinage. The coin circulation of the country on July 1, 1881, is estimated, from the statistics of coinage and net imports of coin, to have been — United States gold coin $439, 776, 753 United States silver coin 171, 459, 760 Total 611,236.519 KEPORT OF THE SECRETARY OF THE TREASURY. 41 The increase on the 30th of June last, by coinage and imports of coin, was — United States gold coin $oOO, 882, 185 United States silver coin ll>0, 573, 3C0 Total 700,455,545 There was further increase by coinage and imports during the next quarter of $11,308,851 in gold, and $7,036,410 in silver. The mints and assay offices on the 1st of October also held for coinage $51,440,420 in gold bullion, and $3,343,565 in silver bullion, making tlie stock of United States coin and bullion available for coin- age on October 1 — United States gold coin $512, 191, 030 United States gold bullion 51, 440, -120 United States silver coin 20(5, 009, 770 United States silver bullion 3, 343, 565 Total 773, 584, 791 THE NATIONAL, BANKS. The affairs of the national banks during the current year are treated of more fally in the report of the Comptroller of the Currency than space will permit herein. It gives an abstract of their resources ami liabilities for each year since the national-bank system went into operation, together with statistical information for a series of years, dra^vu fi"om ollieial sources, of the affairs of private bankers, savings- banks, and banking associations organized under State laws. The number of national banks organized during the year is 171, which is the greatest number organized during any year since 1872. The number of banks in operation is 2,209; more than at any previous date. They are located in every State and organized Territory of the Union. The returns made by them sLow that on October 3d of the present year they had as aggTcgate capital $483,104,213; as surplus, $131,977,450; as indi\idual deposits, $1,122,472,082; had made loans in amount, $1,238,286,524; and held in specie, $102,857,778. The number of banks whose corporate existence either Ins expired, or would have expired if no action had been taken by their stock- holders, is eighty-six. The stockholders of fifty-four of them, which have been placed in voluntary liquidation or whose charters have ex- pired by limitation, have organized new banks in the same localities. 42 REPORT OF THE SECRETARY OF THE TREASURY. The stockholders of thirty banks have extended their existence under the act passed at the last session of Congress. That act was well adapted to the purpose intended. The corporate existence of 305 other banks will expire before Feb- ruary 25, 1883. Nearly all of these have given notice of an intention to seek an extended period of existence, under that act. The repoi-t also tells the total amount of coin and currency in the country, and the distribution of them in the Treasury, in the banks, and among the ])eople. Since the day of resumption — the 1st day of January, 1879 — there has been an increase, in gold coin of $288,795,330; in silver coin of 105,750,532 ; and in national-bank notes of $38,936,073; in all, of $443,481,935. The aggregate circulation of the national banks had steadily increased for a series of years. The action of existing banks, in making de- posit for the ultimate redemption of their circulating notes, lessened for the year the amount of those notes for which those banks are liable by the sum of $5,478,854. The national banks hold $220,000,000 of United States bonds Avhich are payable at the pleasure of the Government. This is more than one-half of the whole amount outstanding of this class of bonds. If the public debt is to be paid as rapidly as it has been of late, it is likely that all of these bonds will be paid during the next three years. Vv^henever they are called for payment, the banks holding them, to keep up the circulation of their notes, must either deposit lawful monej^ in the Treasury amounting in the aggregate to at least $200,000,000, or purchase and dei)osit there other United States bonds. The cheapest of those bonds are at a high premium in the market. It is estimated that the profit from the deposit of those bonds and the taking and issuing the circulating notes famished thereon, when the lawful rate of interest is as high as six per cent., is not more than three-fifths of one i)er cent. It is supposed that this is not enough to lead the banks to buy them largely, for the purpose of securing cir- culation. Is there not reason for forethought whether, with this embarrassment, the bank circulation will not be so largely retired as to trouble the busi- ness community? Ways are suggested of forestalling a troublesome contraction of the circulation — one, a reduction or abolition of the tax on circulation; another, an increase of the rate of issue to ninety per cent* of the current market value of the bonds ; another, that the four and four REPORT OF THE SECRETARY OF THE TREASURY, 43 and a half per cent, bonds be refunded into three per cents upon terms Batisfactory to the holders, thus bringing into market a class of bonds purchasable at a lower rate 5 and another, that the Treasury Uepiut- ment be empowered to take, as a basis of circulation, the three-sixty- five bonds of the District of Columbia. The Comptroller gives statistics of the taxation of the national banks, and again recommends a repeal of the tax upon capital and deposits, in which recommendation the Secretary concurs. The capi- tal invested in national banks is $402,341,001, The taxes assessed upon them by the IJuited States and the States for the year 1881 were $17,189,080, being at the rate of 3,7 per cent. The amount ai^essed by the United States is near one-half of the whole. A re])eal of the laws providing for it would still leave those banks liable to an assess- ment by the States of over eight millions of dollars per annum. The Comptroller of the Currency has completed his annual tables, showing the amounts of United States bonds held by the national banks, State banks, savings-banks, and private bankers on the 1st of Novem- ber, 1882. The national banks held on November 1, 1882, as security for circulation and for public deposits and other purposes, $390,528,400 of interest-bearing bonds of the United States. This is nearly thirty millions less than the amount held on November 1, 1881, and about seven millions less than for the corresponding date in 1880. Banking associations other than national hold these bonds as fol- lows : State banks in twenty-one States, $8,739,172 ; trust companies in five States, $10,934,812 ; savings-banks in fifteen States, $237,780,442— total, $203,400,420. There has been during the past year a decrease of about two millions in the amount held by State banks and trust companies, and an ineiease of nearly twenty-seven millions in the amounts held by savings banks. The amounts held in geographical divisions by these associations in 1882 were as foUows : Eastern States, $42,007,248 ; ^Middle States, $197,135,239; Southern States, $208,350; Western States, $3,309,414; Pacific States, $20,020,175— total, $203,400,420. These returns have been compiled from reports made to the officers of the dilTerent States, which have been forwarded by them to the Comptroller. The interest-bearing funded debt of the United States was on No- vember 1, $1,418,080,200. The total amount of bonds held by the national banks, State banks, and savings-banks at the nearest corre- sponding date that could be ascertained was $050,988,820, which aiiioimt is not greatly less than one-half of the whole interest-bearing debt. 44 REPOIiT OF THE SECRETARY OF THE TREASURY. Similar facts bave also been compiled from the returns made by State banks, savin r^s-banks, and private bankers to the Treasury Department for the i)urpose of taxation, showing that the banks and bankers of the country, exckisive of the national banks, held an average amount of United States bonds during the six months ending May 31, 1882, as fol- lows : Savings-banks, $242,028,782 ; State banks and trust companies, $23,211,430; private bankers, $14,870,745— total, $280,110,957. The amount of bonds given in the returns to the Commissioner of Internal Revenue, which is the amount invested in United States bonds, and may include the premium as well as principal of the bonds, is $lG,G5t),000 more than the amount obtained from the returns to State officers. The diiierence is comparatively small, and the amounts ob- tained from the one source serve to corroborate the general accuracy of the returns obtained from the other. At the last session of Congress legislation was had to stop the over- certification by national banks of checks, in form drawn upon them. (See chapter 290 of 1882, section 13.) That act is an amendment of section 5208 of the United States Revised Statutes, which made it penal to certify such a check unless the drawer then had on deposit with the drawee money to the amount of it. Section 13, above cited, makes it penal to resort to any device, or to receive any fictitious obligation, whereby to evade the provisions of section 5208, above cited. Since the passage of section 13, instead of the formal certification of checks, some national banks have made a formal accejjtance thereof. They claim that this does not break the law, and plant upon section 5136 of United States Revised Statutes, wherein that section allows the making of contracts and the use of powers incidental and necessary to the business of bank- ing; and upon section 5209, United States Revised Statutes, Avhich makes it x)enal for a bank officer to accept without authority, whence, it is claimed, the imjilicatiou is, that with authority from the bank directors it is lawful; and upon the absence from section 13 of an express prohibition of making an acceptance. The question remains, however, is the making of the acceptance a resort to a device, or the receiving of a fictitious obligation, in order to evade the provisions of section 5208? For it is understood at this Department that these acceptances are not always made upon an amount of money actually on deposit with the acceptor equal to that of the check. Judging that Congress was earnestly trying to stop a practice which it deemed fraught with evil, I believed it well to concur with the Comptroller of the Currency in submitting the matter to the Department of Justice, for the official opinion of the Attorney-General, whether a national bank REPORT OF THE SECRETARY OF THE TREASURY. 45 might lawfully make such acceptances ; and, as the amount of them is supposed to be large, whetlier, if the bank might lawfully make them, it should be held, in so doing, within the bounds of section 5200, Ee\-ised Statutes United States, to the one-tenth of its paid-up capital ; and, if it might be so held, whether that limit applied to the gross amount of the acceptances or to a single acceptance? (See section o202. United States Kevised Statutes.) The Department of Justice has made reply to the communication of this Department. The opinion of the Attorney- General is that to write the word "accepted" across a check is to the same effect as to vrrite the word "good" there j and that, though one may be called a " certification " and the other an " acceptance," they mean the same thing, and are like acts; that when the drawer has not with the drawee the funds with which the check may be at once paid, the writing of one word, just as much as the WTiting of the other, is for the same forbidden purpose — ^to produce the same forbidden result : that, inasmuch as the liability is the same whether the check be marked with the one word or the other, either mark, if incurring that liability, would seem to be sufficient to bring the case within the prohibition referred to. It remains to be seen whether the banks which have indulged in this practice will cease therefrom on knowledge of this opinion, or whether the Comptroller of the Currency, or the law officers of the Government, must enforce the pains and penalties incurred by violation of the law. PUBLIC MONEYS. The monetary transactions of the Government have been conducted through the ofGces of the United States Treasurer, nine assistant treasurers, and one hundred and thirty-five national-bank depositaries. The gross receipts of the Government, amounting during the fiscal year, as shown by warrants, to $524,470,974.28, were deposited as fol- lows: In independent-treasury offices $382, G80, 906 77 In national-bank depositaries 141, 790, 067 51 The quarterly examinations of independent-treasury offices, required by law, have been made, and those offices have, besides, been sub- jected to special examinations by officers of this Department. As far as known, there has been no loss to the Government from public officers engaged either in the receipt, the safe-keeping, or the disbursement of the public moneys. I have seen some instances of misdealing with them, but as yet without ultimate public loss. 46 REPORT OF THE SECRETARY OF THE TREASURY. CUSTOMS. The revenue from customs for the last fiscal year was $220,410,730.25, au increase of $22,251,054.23 over that of the preceding year; an increase in the value of dutiahle imj^orts of $73,887,486, and in that ot free goods of $8,087,460. There was collected at the port of New York the sum of $152,773,962.32; at all other ports, $68,300,f')98.03. The sum of $49,198,312 was collected on sugar, melado, and molasses; $29,253,016 on wool and its manufactures; $24,175,547 on iron and steel, and manufactures thereof; $22,633,137 on manufactures of silk; $12,227,103 on those of cotton; and $6,771,483 on wines and spirits; in all, from those articles, $144,258,598. The table here given shows the rate per centum of the cost of collec- tion. It is .0294, and is less than that of any year since 1876: Aggregate duties on imports and tonnage, and receipts and expenses of collection for the fiscal years 1877, 1878, 1879, 1880, 1881, and 1882. Year. Duties. Receipts. Expenses. Cost, per cent. 1877 $130, 956, 493 07 130, 170, 680 20 137,250,047 70 186, 522, 064 60 198, 159, 676 02 220, 410, 730 25 $132, 634, 029 53 132,024,409 16 138,976,631 79 188, 508, 690 34 200, 079, 150 98 222, 559, 104 83 $6, 501, 037 57 5,826,974 32 5, 485, 779 03 5, 995, 878 06 6,419,345 20 6, 549, 595 07 4.90 1878 4.41 1879 3.94 1880 3.18 1881 3.20 1882 2.94 I also ask the attention of Congress to the classification of sugar, as I know not whether it will be treated of, or, if it is, how it will be treated of in any other document brought to the attention of Congress; and the subject is one of practical importance. The Dutch standard of color is no longer a practical test of the sac- charine strength of imported sugars, or of their value for refining. The Supreme Court, in a recent decision, has interpreted the existing law to be, that customs officers may not look beyond the apparent color, and must classify the invoices thereby, though satisfied that the color is arti- ficial and made to get a lower rate of duty. That standard was adopted, doubtless, believing that color showed value. The intention was to put upon sugar, duties in effect ad valorem. As it has come about, how- ever, the grades of sugar highest in value, when thus artificially colored, come in at the lowest rate of duty. The purpose of Congress in ado])t- ing the Dutch standard is measurably defeated. Provision should be made for just classification. This may be done by putting on an ad valorem duty, by a specific duty, or by authorizing some standard other than that of apparent color. IJTow, domestic producers do not get the REPORT OF THE SECRETARY OF THE TREASURY. 47 incidental protection meant to be given them. Importers, too, are subject to embarra.ssment in fixing the rate of duty on their goods, and otherwise. The importance of a new tribunal for the trial of customs cases, or of the transfer of them to an existing tribunal, is again presented to Con- gress. The bill now pending gives jurisdiction over them to the Court of Claims. It seems to this Department that thisis a method economical and speedy, and hence good for the disposal of these cases. It would relieve the Department of business which it is not fully organized to entertain and properly act upon. The recommendation of last year is repeated, that the Secretary be authorized to refer to the Court of Claims, in his discretion, any disputed claims against the Government involving important questions of law or fact. This would give to claimants and to the Government a proper iudicial trial and judgment, and ward ofl'the requests for re-exainina- tions which are now urged upon every change of principal officers of Departments. It is also recommended that there bo authorized the appointment of three additional general appraisers. The necessity for this addition has long been felt, the interests of the Government having suffered in some sections for the lack of a proper tribunal to determine disputes. INTERNAL REVENUE. From the various objects of taxation under the internal-revenue laws the receipts for the fiscal year ended June 30, 1882, were as follows : From spirits $60, 873, 408 18 From tobacco 47, 391, 988 91 From fermented liquors 16, 153, 920 12 From banks and bankers 5, 253, 158 47 From adhesive stamps, (including bank checks, $2,318,155.14; friction matches, $2,272,258 5 patent med icines, &c., $1,978,395.56) 7, 560, 108 70 From penalties, &c 199, 830 01 From collections not otherwise provided for 81, 559 00 Total 116, 523, 273 72 The increase of the revenue from spirits during the last fiscal year was $2,719,433.30; the increase from tobacco in its various forms of manufacture for the same i)eriod was $4,536,997.60 ; the increase from fermented liquors was $2,453,670.21 ; the increase of revenue from taxes on banks and bankers was $1,491,250.40; the total increase' of iuterniil revenue from all sources was $11,293,361.42. 48 REPORT OF THE SECRETARY OF TflE TREASa!!!'. REDUCTION OF TAXATION. The Treasury Department was created by act of Congress, chapter xii, of the year 1789. By the second section it was made the duty of the Secretary " to digest and prepare plans for the improvement of the revenue." The word improvement meant enlargement. The need was for more revenue, and the lack was of subjects from which it might bo taken. In that sense that duty is now %^'ithout care. The times have changed. What now perplexes the Secretary is not where- from he may get revenue and enough for the pressing needs of the Government, but whereby he shall tui-n back into the flow of business the more than enough for those needs that has been drawn from the people. There are now in the Treasuiy unused assets to a large amount, and the daily receipts into the Treasury from customs and internal-revenue taxation are about a milhon and a quarter. It is plain from this, and the statement with which this report be- gins of the estimated expenditures for the next fiscal year, that the receipts from revenue are, and are likely to be, in excess of the needs of the Government. From the inequality between daily large receipts and comparatively small daily disbursements there comes an evil effect upon the business of the country. The collections by Government are taken out of the money market in sums and at dates which have little or no agreement with the natural movement of money, and are returned to it with the same inadaptation to commercial or financial requirements. Occa- sionally the large disbursements of the Government have created a pletliora of money; more frequently its large and continued withdrawals of money have caused such a scarcity of floating capital as to check the proper movement of legitimate business. It is not only that the amount in the Treasury is so much kept from the use of community ; the fact becomes an incentive and an aid to men who for their own ends conspire to keep from that use other large sums. We have believed that the laws of the States against primogeniture, the entail of es- tates, and the accumulation of personal property, stood in the way of heaping up wealth in single hands, and gathering in single hands the power over others that great wealth gives. But so it is, that to-day there are men so rich that by conspiring together, they can at will put and hold hand on near as much money as Government can lay hand to, save by the use of its credit. The power thus had is used from time to time. It results, that violent and sudden contractions and expansions REPORT OF THP: SECRETARY OF THE TREASURY. 49 afflict the business community, aud the Govertiineut is an unwilling aider and abettor therein. It has come about that the Treasury De- partment is looked to a.s a great, if not a chief cause of recurring strin- gencies, and the Treasury is calli^d to for relief. Every Secretary of the Treasury for years past, has had it brought clearly to his mind, aud oflficial expedients have been used to remedy the «'vi]. Littl<» of last- ing value has been accomplished thereby. There is no advisable and lawful mode of disbursing an «_'\i.sting excess of assets but that of the payment of the public debt. That debt is substantially of two principal classes — that payable at the pleasure of the Government, that payable at a fixed date in the future. The former is also of two kinds — that bearing interest at three aud a half per cent., and that at three per cent. The latter may not be called in for payment while any of the former is outstanding and uncalled. So is the law of its creation. Of the former there are outstanding and un- called over seventy millions. The interpretation put by the Department upon the ^^arious laws out of which that debt has arisen, requires that a call for it for payment must fix for the maturity and for the cessation of interest a date three months oft'. This somewhat hampers the De- partment in so making calls as to keep up a timely succession. For calls at three months off there must eitlier be the funds in hand therefor at the time when the call is made, or there must be a reliance upon the probable prospective receipts. To wait before making a call until the funds are in fact in hand would be to increase the evil of which I am speak- ing. To call in reliance upon receipts to come needs caution, lest by changes in business currents or business prosperity they may be les- sened, and thus embarrassment ensue; so that, practically, the Depart- ment cannot with prudence work in this matter ui> to what may tiu'n out to be its full ability. Whether the three per cent, bonds will require the same length of call-time has not yet been determined. Xor is a call al- ways eflectual in l)ringiug in the debt for payment. The monthly' state- ments of the public debt show that of matured obligations on wliich interest has ceased there are outstanding over ele\^en millions and a half, some of it from the year 1837. Doubtless some of this has been lost or destroyed, and will never be brought for ])aymeut. Bnt bonds which are in late calls come in slowly. Thus, of the calls preceding the last, all of which have been some days payable at option of holders with- out rebate of interest, aud which were, in all, for $r)r>,0(lO,()00, there is outcstanding $3.3,000,000 and over. Bonds of the other princii)al class are of several kinds, all i)ayal)lo at a future date, and all arc now at a high premium in the market. If it 4 Ab 50 REPORT OF THE SECRETARY OF THE TREASURY. were good policy for the Department to buy these at their premium, it could by so doing easily free the Treasury from its excess of assets. Various causes put these premiums, at a height almost unexam- pled. It is true that capitalists may buy them now, and they will, if the present state of things continues, by the time they fall due and payable, and are paid to them at their face, have realized some in- terest upon the purchase price. At the present premium on most if not on all of them that will be short of three per cent. Calculations show that at these premiums a purchase will not have yielded at the end of their term three per cent, on the money paid for them. The Govern- ment by the purchase of them might in effect take an equal profit. But it can save to itself three and a half per cent, by calling bonds of that class. Hence, I do not perceive how a Secretary couldjustify him- self to the country at large, in paying the Government debt at ruling premiums, when there is no requirement of law to be answered, and no convenience or pressing need of the Government to be met; unless there is a great emergency, and general financial disaster is threatened, which only extreme measures of Governmental interference can turn aside. It is true that this Depi^rtment has heretofore, and as late as March 30, 1881, purchased bonds and paid for them the face value and a premium thereon. The purchases on that day were over five millions and a quarter of dollars, and the premium j^aid near fifty-five thousand dollars. But the purchase was for the sinking-fund, and the law of that fund required a purchase, and there were no Government bonds redeemable at pleasure to the payment of which an excess of assets might be applied. In former years there were large and con- tinued purchases of bonds at a premium, but they went hand in hand with sales of gold at a greater premium, and the Government made a profit by the transaction, and then, too, was for a time the requirement of the sinking-fund, and there were no bonds payment of which might be made in invitum. The anticipation of payment of called bonds without a rebate of the interest up to the day named in the call rests upon a ditlerent basis. A prepayment of interest upon the public debt is sanctioned by express provision of law. (See resolution No. 25, of March, 18G4, and U. S. Rev. Stats., 3699.) A reference to the debates in Congress when that resolution was under discussion, shows that the motive for the adop- tion of it was, that the Treasury Department might at any time break a tightness in the money market by putting out money idle in its vaults. The power thus given has of late been used for that purpose. Though this does give a gain to the holders of the bonds, it ijuts no loss upon REPORT OF THE SECRETARY OF THE TREASURY. 51 the Government. The Treasury uses for the prepayment, money that it needs not for use iu other ways, and which yields no interest, and which it must at last use for paying just what it pays in advance, and to no more than the amount that it must at last pay. In paying a high premium, however, it pays what it is not bound ever to pay, and it is not a certain event that it will ever make itself whole again, and to the extent of some part of the premium, it extinguishes uo debt. It is doubtless good policy to extinguish the long bonds of the Gov- ernment, rather than those payable at its pleasure; for the time is at hand when, with the present rate of receipts and the present rate of payment of the public debt, all the bonds subject to optional time of payment will have been called in. Tlien, if there be a surplus in the Treasury, there will be no outlet for it save by purchase at large pre- mium of long bonds, or the disbursement of it through appropriations for purposes beyond the ordinary and economical needs of the Gov- ernment. It is, therefore, for Congress to consider the propriety of em- powering this Department to buy the long bonds at a high premium. If it shall deem it i>olitic to make general purchases of bonds at such pre- mium for extinguishment, it should by law give to this Department express authority' so to do, and thus adoi^t that policy. There have been other suggestions of modes of freeing the Treasury of an excess of assets. The national-bank act, section 35, (U. S. Ke- \ised Statutes, sec. 5133,) iirovides for the designation of national banks as depositaries of public moneys, security being taken in a cor- responding deposit of United States bonds. All monej'S received for customs nuist be paid into the Treasury, and no part of them can be l)laced in national bank depositaries. It is seen that if they, or any part of them, were deposited with national-bank depositaries, they would soon find their way back iuto the currents of business in loans and discounts, as do now the receipts from internal-revenue taxation. There are in the Treasury over fifty millions of dollars, being the five per cent, fund for the redemption of national-bank notes, and the fund for the redemption of notes of national banks that have failed. These funds have not beeu treated by the Department as "public nu)neys" within the intent of the sections above cited, and have been kept in the Treasury. If CongTess should give an interpretation to the words "public moneys" Avhich would take in these funds, and thej' be put on deposit with the public depositaries, the same results would follow as are above suggested as to customs receipts. It is argued by tliose who contend for larger use of the banks as de- positaries that all other civilized countries have an advantage over 52 REPORT OF THE SECRETARY OF THE TREASURY. tlie TJuited States in the relations between their treasuries and the money market; that tlieir governments keep tlicir accounts with the strongest banks in the country, and in this natural way of transacting business they do not deprive their trade of the natural and necessary services of floating capital; that it is only in the United States that the Government, chiefly by law and partly for want of the use of exist- ing discretionary powers, deliberately disturbs the natural currents of money, inflicting upon trade a prolonged or spasmodic stringency by locking up its receipts, or stimulating speculation by a sudden out- pouring of its hoard; that all business is taxed by this system of legal caprice, and that it is probably no exaggeration to say that our Treas- ury statutes cause discounts in New York City to average two per cent, higher than under the more natural system of employing the ordinary business agencies for the Government's collections and disbursements. I do not yield to this reasoning to the full extent that it is sought to push it. It may be well to give the Department the power to make larger deposits in the public depositaries. I conceive that the receij^ts from customs, now to great extent pledged by law to the payment of the bonded creditor, should be held in the Treasury; for in another course there are disadvantages that might come to both Government and people, and which would, if they came, outweigh all advantages to either. It is safe to say that the country is never so sure of a continued course of prosperity as that prudent forecast will not take heed of possible financial disturbance and disaster. If such should come, in such mag- nitude as that the national-bank depositaries should be involved in common with all, it would be of the greatest good that the Govern- ment had in its own hands the means to meet the daily calls upon it. It has chanced that, singly, national-bank depositaries have failed to meet the drafts of the Government upon them, to its embarrassment. Greatly more so would it be if all or many should so fail together, and together should have in keeping, in main, the assets of the Govern- ment. The policy of the Department has been to keep for the redemp- tion of the United States notes a reserve of about forty per cent, of the amount of them outstanding, and, besides that, to hold money enough to meet all other obligations payable on demand. It is a i^art of that policy that the Treasui-y should itself hold that reserve. "You must be ready for the e'vil day, and, being readj^ for the evil day, the evil day almost never comes; not being ready for the evil day, it is certain to come." For these reasons I would not seek a release of the Treasury from this complication, in these modes. The radical cure for the evil is in the reduction of taxation, so that REPORT OF THE SECRETARY OF THE TREASURY. 53 no more Tvill be taken tiom the peojjle than enough to carry on the Government with economy ; to meet all its obligations that must be met from year to year; to pay off with reasonable celerity the part of the debt which it may pay at pleasure, and to provide through the sinking-fund for the payment of that which will become payable by and by. The evil comes from the likelihood of the Government hold- ing from time to time a large surplus to be ijoured out in volume at uncertain and unforeseen times, and at times often inopportune for the business of the country. There could not be that surplus, surely not so great a one, if the subjects of taxation were lessened and the rates made smaller upon those retained. The figures are given above which show an estimated surplus of public moneys for the fiscal year ending June 30, 1883, upon the basis of existing laws and including the sinking-fimd, of $75,577,043.75. Unless some disturbing cause comes in, not now foreseen, that sur- plus will increase from jear to year as the interest on the public debt decreases. For without such cause the revenues from all sources will not be diminished if the laws i)roductive thereof remain unchanged. As so great an annual surplus is the direct result of the existing revenue laws, what will be the financial condition of the country if these laws remain unchanged and taxation be not reduced ? In connection herewith, should be borne in mind the increasing ex- penditure for pensions, as likely to affect in some degree the increase of surplus." The Commissioner of Pensions has fiu'nished to this Department an estimate based upon facts on his records which gives these figures: Number of claims filed to June 30, 1882 817, 722 Number admitted 472, 77G Number on rejected files 75, 268 Number pending 2G9, G7S 817, 722 Of the number pending, 197,023 are entitled to "arrears," and the first payment in the same, compiled from discharge or death to date, would not fall below $200,000,000. The remaining 72,055 were filed subsequent to June 30, 1880, and pension, when allowed, would commence from date of filing. Last year he estimated tliat the average value on the 1st «lay of January, 1884, of each claim allowed out of the class in which are the 197,023 above, would be $1,350, and he then reckoned that about five- sixths of that class would be found valid claims and would be allowed. 54 REPORT OF THE SECRETARY OF THE TREASURY. The amount of United States bonds which are now due and payable at the pleasure of the Government are as follows : Fives continued at three and a half per cent $155, 350, 350 Threes 259, 370, 500 Total 414, 720, 850 Those which next become redeemable are the four and a half per cents, which may be paid September 1, 1891 $250, 000, 000 Lastly, the four per cents, redeemable July 1, 1907 738, 929, 600 To which add the refunding certificates 423, 750 Making 739, 353, 350 The amount of the fanded debt redeemable at any time before Sep- tember 1, 1891, which will remain unpaid on the 30th of June, 1883, is about $300,000,000, and upon the foregoing estimates for the fiscal year ending June 30, 1883, the whole funded debt now redeem- able could be paid before June 30, 1886. This would leave as the sur- plus for more than five years the amount of $600,000,000, undisposed of in the Treasury, unless, yielding to the temptation of seeming wealth, expenditures be largely iu creased. The amount of the loan redeemable in 1891 is only $250,000,000, and, as has been stated, no other loan becomes redeemable until 1907, so that the surplus under the conditions supposed will rapidly increase until that date. The amount of the loan of 1907, as already appears, is less than $740,000,000, so that, were it all redeemable, the whole public debt could be paid from a surplus as great as estimated early in the fiscal year ending June 30, 1894. It has not often occurred in public financial history that embarrass- ment has arisen through superabundance of revenues. The condition of the country in that respect, while it illustrates its almost boundless resources, and establishes its credit beyond a question, presents diffi- culties of grave character. The accumulation in the Treasury of a large surplus, which must occur unless immediate measures are enacted for a reduction of the revenues, is not to be placidly contemplated, and the question confronts us, in what manner may it best be prevented? The suggestion thilt the Government may go into the market and purchase its bonds not yet redeemable at the market rates is noted in another place. As a temporary expedient, or for a relatively small amount, this policy might be adopted. But were it estabhshed by law as a permanent policy, the long bonds, now at a high premium, would REPOET OF THE SECRETARY OF THE TREASURY. 55 be SO enlianced in price as to render the purchase of bonds imprac- ticable within reasonable bounds. A greater use of the national banks as depositaries is treated of elsewhere herein. If that should be made, it would be but a return to the channels of business of moneys taken from them without need, and with the charge upon the people of the cost of collecting. I respectfully refer to my last report for my views upon this sub- ject. They have not materially changed. Now, as then, it is recom- mended to retain a tax on spirits, tobacco, and fermented liquors, as legitimate subjects of needful taxation. They are, in the main, the means of indulgence, and should come before necessaries as subjects of taxation. The tax from spirits for the last year was $09,873,408.18; that from tobacco, $47,391,988.01; that from fermented licpiors, $10,153,920.42. The increase over the year 1881 was, on spirits, $2,719,433.30; on tobacco, $4,530,997.00; on fermented liquors, $2,453,079.21. The total receipts from the taxation of these articles was for the last year about one hundred and thirty-three millions of dollars. The estimated expenditures for this fiscal year are near three hundred millions. The retention of this tax will still leave a large sum to be raised from other sources, so that there is not a i)ressing need of a reduction here. Should it, however, be deemed expedient to reduce the rate of duties on either of these articles, to obviate the inducement to fraud, or to render such duties more equal, objection is not so strongly urged against a moderate modification as against a total repeal of all taxes thereon. Propositions have recently been made to abolish the whole system of internal revenue, but neither i)nblic senti- ment nor political action indicates a desire on the part of tax-paying citizens to strike out this class of taxes. All the other subjects of internal revenue niay be released from taxation, unless bank circulation be re- tained. It is a franchise, a privilege to furnish that, and it is of profit to the banks and of expense to the Government, and hence is a prefer- able subject of taxation. The amount derived from it was $3,190,981.98 the last year, yet as the banks are liable to assessment by the States, and thus to bear a share of public burdens, it is advisable to strike otf the Federal taxation on their circulation. The whole amount of internal revenue fi)r the year ended June 30, 1882, besides those from spirits, fermented li(iu(»rs, and tol)acco, is $13, 073, 950 21 The tax on circuhition and deposits of national banks for the same period is 8, 950, 794 00 Making 22, 030, 750 S7 56 REPOKT OF TirE SECRETARY OF THE TREASURY. Deduct tliis amount from our surplus revenues, aud we have still a surplus of about $08,000,000. To complete au effectual reduction of taxation, it must be made on some principal source of revenue, and such an one is the duties on imports collected under the tariff laws, and an additional obvious method of avoiding- a surplus in the TreasRiry is a reduction of the revenues from those. The subject of the rc^^eal of the tax on circulation and deposits of national banks, and those upon adhesive stamps, and those derived from banks and bankers, has been much discussed in Congress. It will be seen, however, that the repeal of all these taxes would relieve but a portion of the difiiculty. The revenues from customs for the current year are estimated at $235,000,000, aud under existing laws, and without a disturbing cause now unforeseen, we may expect that they will not diminish in future years. It seems, therefore, that a reduction should be made in the revenue from the customs. In reading the testimony before the Tariff Commission it is to be ob- served that with scarcely an exception the representative of every in- dustr}^, while conceding that a general reduction of the tariff Is proper and necessary, has claimed that its peculiar product can submit to no reduction of the protection now afforded. While the views of the manufacturers are to be weighed, it is man- ifest that they will never be able to agree ui)on a reduction of the tarift' duties. All agree that a revision of the tariff is necessary. The action of Congress in creating a Commission for that purpose renders discus- sion on that point unnecessary. The action of that commission in detail is not yet known to this Department. Whatever may be its recommendations, they wiU no doubt receive respectful consideration. The Secretary of the Treasury, however, cannot feel that he is re- lieved of responsibility because of that Commission. He deems it proper, therefore, to make some recommendations upon the subject. The whole amount of revenue from customs for the fiscal year ended June 30, 1882, has afready been stated at something more than $220,000,000. The classes of merchandise pajiug the largest amount of duties from customs are the following, in tfee order named: Sugar and molasses, wool and manufactures from it, iron and steel and the manufactures from them, manufactures of silk, manufactures of cotton, amounting to about one hundred and thirty-seven and a half millions. A substantial reduction upon each of the class of articles named is REPORT OF THE SECRETARY OP THE TREASURY. 57 recommended. And it is believed that the time has arrived when a reduction of duties on nearly all the articles in our tariff is demanded and is feasible. In addition to this, a careful revision of the tariff should be made with a view to placing upon the free list many articles now paying a duty. It appears that the largest amount derived from any class of pro- ducts, under the customs tariff, is that from sugar. Sugar is a necessary of life for all classes in this country. The average duty on it is equal to two and a half cents i)er pound, and to nearly fifty-three and a half per cent, ad valorem. The amount of cane-sugar produced in this country is estimated at eleven per cent, of the whole quantity consumed, and it is apparent that nearly the whole amount of revenue from this source is paid by the consumer, the competition by home production not being sufficient seriously to affect the price. The progress of industry in the jiroduction of sugar from sorghum and the beet is not forgotten. It is entitled to consideration. It is believed, however, that a substantial reduction of the duty upon sugar may be made without injustice to the producers of it in this country. Upon wool and iron and steel, and their manufactures, a large re- duction must be made to materially lessen the revenues derived from them, as the amount of imports will increase as the duties are lessened. It wUl probably be found that in general the reduction can chiefly be made on the raw material or coarser manufiictures, rather than those upon which a greater amount of labor has been bestowed. The duties on manufactures of silk, it is believed, may be reduced without injustice to manufacturers in this country. The cotton tariff' is found to be complex and inamsistent, and it is no doubt true that in most of the coarser classes of cotton fabrics our manufacturers can compete with the world without protection. Wines and spirits, which afford the largest amount of duty next to the five classes enumerated, being articles of luxury, may well bear any rate of duty deemed necessary for the revenue. Without going further into details, the Secretary earnestly recom mends a careful revision of the tariff, with a view to substantial re- ductions. The accomplishment of this is recommended to the present Congress, which has been fully aware of the approaching financial situation, as it is now presented, and has fully discussed tho subject in some of itvS bearings. 58 REPORT OF THE SECRETARY OF THE TREASURY. FOREIGN COIVIMERCB. The foreign commerce of the United States during the last fiscal year, iTicliuliug imi)ort8 and exports of merchandise and specie, was as follows : Exports : IMerchandise $750, 542, 257 Specie 49, 417, 479 799, 959, 73G Imports : Merchandise $724, 639, 574 Specie 42, 472, 390 707, 111, 904 Imports and exports during the year ended June 30, 1882 $1, 5G7, 071, 700 Imports and exports during the year ended June 30, 1881 1, G75, 024, 318 Decrease $107, 952, GIS The excess of exports of merchandise over imports thereof was less for the last fiscal year than for any of the previous six years. This is shown as follows : Year ended June 30— Excess of exj)orts over imjwrts of niercliandise. 1876 $79, 643, 481 1377 ir,l, 152, 094 207,814,234 1878 1879 264. 661, 666 1880 167,683,912 259, 712, 718 1881 1882 25, 902, 683 The decrease in exports of cattle, provisions, breadstuffs, and cotton during the last fiscal year, as compared with that of the preceding fiscal year, is as follows : Commodities. 1831. 1S32. Decrease. Cattle Indian corn Wheat Wheat tionr Cotton, raw Beef, fresh - Bacon Butter Cheese Lard 800, 227 845, 830 929,718 375. 055 812; 644 768. 881 124, 602 864, 570 058, 975 975, 902 $6 503, 876 21,856,839 54, 768, 767 8,672,202 47, 883, 102 3, 091, 403 11,492,:579 3, 391, 454 2,321,273 6, 250, 673 REPORT OF THE SECRETARY OF THE TREASURY. 59 There has been an increase in the principal crops of the country in 1882 over those of 1881. Over 75 per cent, of the exports of domestic merchandise is in products of agriculture. It is reasonable to expect an increase in the exports of merchandise and an increase in the bal- ance of trade in our favor. This expectation appears also to be justi- fied by the fact that the exports of breadstuffs for the first four months of the current fiscal year at the principal i)orts, exceeded such exjwrts for the corresponding months of the preceding fiscal year by $4,570,084. The exports of petroleum for the fiscal year just closed exceeded those for the preceding fiscal year by $10,917,097. niPORTS OF MERCHANDISE. The imports of merchandise for the last fiscal year exceeded those of the preceding year by $81,974,946: Articles. 1881. 1582. Increase. India-rubber and gutta-percha Breadstuli's $11,054,949 10, 663, 675 S;14, 264, 903 m 7Q?. 9riQ $3,209,954 8 131 594 Cotton mauufactures 31,219 329 3i'3M'^H»o 3, 131, 963 6,146,914 7 12*^ ,599 Fruits 12, 344, 929 6, 218, 453 874,223 32,0.56,701 93,404.288 31, 156, 426 18, 491, 843 13, 311, 052 4, 660, 120 38, 985, .567 100, 469, 022 37, 301, 520 Steel ingots Potatoes 3 785 897 Silk mauufactures 6,92.8,866 7,064,734 6, 205, 094 Sugar and molasses. Wool mauufactures ....... ...... ...... During tlie fiscal year ended June 30, 1882, the exports of specie were $40,417,479, and the imports $42,472,300— a difference of $6,945,089. In the preceding fiscal year there was an excess of imports over ex- ports of $91,168,050. This change came, probably, from the falling ofi' in exports of merchandise for the year. The report of the Bureau of Statistics shows, in detail, the state of the foreign commerce of the United States. COMMERCE AND NAVIGATION. The tonnage of vessels owned in the United States at the close of the fiscal year 1882, by the records of the Eegister of the Treasury, was 4,165,933 tons. Of thi.s, 1,292,294 tons were in 2,185 vessels regis- tered for the foreign trade, and 2,873,639 in 22,183 vessels enrolled and licensed for the coasting trade and fisheries. There was a decrease of 43,292 tons in vessels in the foreign trade, and an increase of 151,491 tons in those in the domestic trade. The increase in the tonnage of this class of vessels lor the fiscal year ended June 30, 1881, was but 6,924 tons. 60 REPORT OF THE SECRETARY OP THE TREASURY. The vessels built and documented as vessels of the United States during the last fiscal year is shown by this table : Kind of vessel. Nmnbor. Tons. Sailing-vessels 666 502 68 135 118,798.50 Steam-vessels ............ .................. 121, 842. m Canal-boats .... ........ . ...................... 7, 882. 06 Barges -- -- 33, 746. 51 Total 1,376 282, 269. 73 The number of documented vessels of all classes built during the past fiscal year exceeds that of the fiscal year ended in 1881 by 263. The undocumented vessels built during the past year, such as canal- boats and barges, may fairly be presumed to have been much larger. The total tonnage of vessels entered from foreign countries was 15,630,541 tons during 1881, and 14,656,499 tons during the year ended June 30, 1882 — a decrease of 974,042 tons. The American ton- nage entered in the foreign trad^e was increased 49,141 tons, and the foreign tonnage was decreased 1,023,183 tons. This tonnage is com- puted from the number of entries of vessels, and not on the number of vessels, and is limited to the seaboard i)orts. Of the merchandise brought in at seaboard, lake, and river ports during the fiscal year 1882, $130,266,826 were imported in American vessels, and $571,517,802 in foreign. Of the exports of merchandise, $96,962,919 were shipped in American, and $641,460,967 in foreign ves- sels. Of the combined imports and exports of merchandise, 16 per cent, only was conveyed in American vessels. EXPORTS AND IMPORTS AND QUARANTINE OF NEAT-CATTLE. Legislation on these subjects has two objects : First. The extinction and prevention in the United States of the disease known as pleuro- pneu7no7iia, or lung plague. Second. The increase of our commerce in neat-cattle with other nations, especially Great Britain. The disease did not begin in this country, the first cases having been traced to foreign origin. It is found on the Atlantic coast in several places from New York to Baltimore, but has not been felt in Kew England for many years. It is a contagious disease, of malignant type, likely to spread through herds, and from herd to herd. IMindful that the number of neat-cattle in the United States in 1880 was about 36,000,000, which, at $25 per head, would be valued at $900,000,000, and that there has probably been increase rather than decrease, it is seen that this is a matter of moment. The spread of the disease on the Atlantic coast REPORT OF THE SECRETARY OF THE TREASURY. 61 alone would make serious loss, tliough it is more readily controlled where cattle are penned or housed. The starting and spread of it iu the great open cattle ranches of the West would be calamitous. Its contagious character, and the difficulty of treating it in large herds roaming at will, make it formidable. Should it get a firm hold there, it would badly hinder the raising and sale of cattle, which is a means of wealth and prosperity to many of our people. To prevent it being brought from abroad, the Department, in July, 1879, established regulations subjecting all imported cattle to a quar- antine of ninety days. As there was no appropriation therefor until the last session of Congress, importers were obliged to quarantine their cattle at their own expense; and astheDominionof Canada, under like provisions for quarantining imported cattle, made liberal provision there- for, most of the cattle imported into the United States were brought from abroad first into Canadian ports. Using an appropriation of the last session, this Department, through the Treasury Cattle-Commission, has taken active measures for estab- lishing for imported cattle quarantine stations and shelter at Portland, (Me.j) Boston, New York, Philadelphia, and Baltimore. The design is to furnish buildings with sufficient laud, so arranged that the cattle in quarantine may be isolated, not only fi'om cattle already in the coun- tiy, but each importation from others, and be kept constantly under the nspectiou of Government oflicers. It is expected that these arrange- ments will be completed at the ports named within a few weeks. Tlie second object in view is to promote the trade iu neat-cattle with foreign nations, especially with Great Britain. The number of live cattle exported, chiefly to Great Britain, in the year ended June 30, 1881, was 185,707, valued at $14,304,103. For the year ended June 30, 1882, the number was 108,110, a decrease of 77,597, and in value of $6,503,870. The decrease was, however, no greater in proportion than that generally in the exi)ortation of articles of food. By an order of the Privj' Council of Great Britain of February, 1879, all cattle imi)orted from the United States must bo slaughtered at the ]Jort of arrival within ten daj^s. This order, deemed necessary to pre- vent infection, will, no doubt, be rescinded, whenever the United States shall adopt measures rendering it reasonably certain that importations of cattle from this country will not introduce the disease from which the people of Great Britain have heretofore suifored loss. This order causes great loss on cattle exported to (rreat Britain from this country, as only animals fit for beef can now be exported, and the shrinkage in them on immediate slaughter, after the waste of a sea voyage, without recuxjeration, is estimated at not less than ten per cent. 62 REPORT OF THE SECRETARY OF THE TREASURY. There is a great demand in England for stock cattle, to be fed and fattiMied on English soil, which we could readily supply, were it not for the order referred to. Under a recent appropriation, this De- partment, through the Cattle Commission, is arranging with the various railroad companies for the transportation of cattle from the Western States to the seaboard so as to save them from contagion on the route. When these arrangements are ijerfected and found ellicient, we may fairly ask of Great Britiau that the order for immediate slaughter of American cattle imported into that country be rescinded. The rex)ort of the Commission speaks in detail on this subject. REVENUE MARINE. There are now thirty-seven vessels in the Revenue-Marine Service, thirty- two of which are steamers, and five sail- vessels. They are manned by 199 officers and 774 men. This was their regular work for the year ended June 30, 1882: Aggregate number of miles cruised 303, 562 Number of vessels boarded and examined 24, 008 Kumber of vessels seized or reported to the proper author- ities for violations of law 1, 042 Number of vessels assisted when wrecked or in distress . . . 147 Number of persons rescued from drowning Ill Estimated value of imperilled vessels and cargoes assisted . $2, 254, 71G Besides the regular duty, the service has done special work. In May last, at the request of the Navy Del>artment, the Corwin, of the Eevenue Service, was sent to St. Lawrence Bay, Siberia, to bring away the officers and crew of the naval relief and exploring steamer, Bodgers, burned at that place. The Corwin made a second cruise to our most northern waters, to i^rotect the seal-fisheries and other Gov- ernment interests in Alaska. She ascertained the fate of Master Put- nam, of the U. S. Navy, who was carried to sea upon an ice floe and perished. She cruised two hundred miles to the eastward of the signal station, at Point Barrow, finding no open violations of law. Coming back by the Aleutian Islands and Sitka, her commander. Lieutenant Healy, in November, quelled an outbreak of the Indians upon the main- land north of the latter place. The revenue-steamer McLane, at Galveston, Tex., co-operated with the Marine-Hospital Service in confining and alleviating the yellow-fever epidemic, carrying physicians, nurses, medicines, and supplies. The revenue-cutters have also co-operated with the Life-Saving Ser- vice and the Light-House Establishment. The expense of maintaining the Eevenue Marine for the fiscal yeax ended 30th of June last was $846,423.34. REPORT OF THE SECRETARY OF THE TREASURY. 63 The new vessel for duty on the southern coast, authorized by Con- gress in 1880, has been completed and placed on duty, and named "Walter Forward," The appropriation of $75,000, made at the huit session, has, under the authority of the law, been applied to the re- building of the revenue-steamer "Commodore Perry." The recommendation made last year, of a new vessel for the south- ern coast, to replace one worn-out and not adapted for the service, is renewed. The amount of .$75,000, necessary for this purpose, has been included in the estimates. The recommendation of the last annual report and of those of several of my predecessors in office, that Congress provide for the establishment a retired list and the extension of the i)ension laws to the Eevenue Marine, is renewed. LIFE-SAVING SERVICE. The operations of this useful service have been continued with success. There were at tlic close of the fiscal year 190 stations in commission. The whole number of disasters to documented vessels, reported by the district officers to have occurred within the field of station operations, is 286. The number of persons on board of these vessels was 2,208. Of this nimiber, 2,256 Avere saved, and 12 only lost. There were succored at the stations 450 shipwrecked persons, 1,344 days' relief in the aggi-egate being afforded them. The estimated value of property involved in these disasters was $4,757,802, of which $3,099,537 was saved and $1,058,355 lost. The number of vessels totally lost was 67. There have also been fifty-six instances of disaster to smaller craft, as sail-boats, row-boats, &c., on which were 120 persons, all of whom •were saved. The property involved in these disasters was $7,850, of which $6,450 was saved and $1,400 lost. The aggregate is this: Total number of disasters 342 Total value of property involved $4, 765, 742 Total value of property saved $3, 105, 987 Total value of property lost §1, 059, 755 Total number of persons on board 2, 394 Total number of persons saved 2, 382 Total number of persons lost 12 Total number of shipwrecked persons succored at stations. 450 Total number of days' succor aiibrded ; 1, 3.>4 Total number of vessels lost 67 Besides the persons saved from vessels, there were twenty-nine rescued who had fallen from i)iers, wharves, &c., and who, without the aid of the life-saving crews, would probably have been drowned. The twelve persons lost during the year are shown, by tlie investigation held ui)on each case, to have been beyond human aid. The loss of life is 64 REPORT OF THE SECRETARY OF THE TREASURY. smaller than tliat of any preceding year, with one exception, although there were forty-two more disasters than in any year before since the organization of the service. When the number of disasters is consid- ered, and it is remembered that the life-saving stations are located, by selection, at the most fatal points of our dangerous coast, the small loss of life and property is remarkable, and speaks well for the efficiency of the service. It is claimed that the loss of life from marine disaster, upon our coasts, since the general extension of the service thereon, in 1876, has been reduced nearly 75 per cent; that while in 1876, and before that, one person out of twenty-nine on board wrecked vessels was lost, there has been a constant decrease, until the loss is but one out of every one hundred and thirteen ; and this result is almost entirely attributable to the Life-Saving Service. The service has never been in so good condition as at present. The legislation of the last session of Congress has supplied its main wants, and established the conditions for high utility, in its prime object of saving life and its secondary ones of protecting commerce and aiding the collection of the revenue. This legislation has already had a marked effect upon the status of the establishment, and particularly upon its morale. The provision for the ampler pay of the employes, and for aid to those among them who may be disabled in the line of duty, or, in case of fatality, to their ^vidows and orjihans, makes them feel that their services are appreciated, and insures cheerful zeal and fidelity in doing duty. It enables the Department to obtain, in instances, better men than before. The crews are now of good capacity and character. It is a rule, in forming the crews, that regard be had for qualification, to the exclusion of i)olitical or other considerations. Faithful adherence to this rule is a condition of the success of this service. Owing to the late date at which the appropriations passed Congress, not much has been done in establishing the new stations authorized by the act referred to. One has been built at Peaked Hill Bar, Cape Cod ; and one at Muskeget Island, on the coast of Massachusetts, is nearing completion. Three are in process of construction on the coast of North Carolina. Sites have been selected for others, and in some instances the titles secured. THE LIGHT-HOUSE ESTABLISHMENT. During the fiscal year the Light- House Establishment has put into operation eighteen new light-stations, eighty new river lights, five new fog-signals operated by steam or liot air, three new automatic whistling- buoys, one new bell-buoy, and ninety-three new buoys of th€ ordinary REPORT OF THE SECRETARY OF THE TREASURY. G5 kind. It has discontinued two lifclits which are now no longer needed, and has changed the characteristics of ten others, that they may be more useful than heretofore. The new light-house on Stannard's Eock, Lake Superior, was lighted on the 4th of July. This work, which was specially difficult, is fully described in the Api^endix to the Annual Eeport of the Light-House Board. The board refrained from making recommendation as to lighted buoys until the results of the experiments made in foreign waters were ascertained. These buoys have now proved to be such valuable and comparatively inexpensive aids to navigation that they have l)een adopted into several of the light-house systems of Europe. The board has recently had occasion to place a lighted buoy to mark a wreck in one of the channels leading into the port of ZS'ew York, which could be successfully marked in no other manner. The work of changing the burners of the lights in the several light- house districtSL, so as to substitute mineral oil for lard oil as an illumi- nant, is now so far completed that on the 1st of January next mineral oil will be used in all except the light-houses of the tii'st order. The appropriation made for erecting electric lights at Hell Gate will enable the board to transfer its experiments with the electric light from the laboratory to a light-house, where it can have a working test. Attention is called to the board's annual report for further details •with regard to the Light-House Service. COAST AND GEODETIC SURVEY. The operations of the Coast and Geodetic Survey, both in the field and in the office, have been steadily advanced. Topographic and hydrographic surveys have been carried on on the Atlantic, Gulf, and Pacific coasts. Aid has been given to the State surveys in progress in nine interior States. Data and material have been accumulated for additional volumes of the Atlantic Coast Pilot, and for new editions of the Coast Pilots of California, Oregon, Washington Territory, and of Alaska. Xew charts and new editions of old charts have been published. The annual pub- lication of tide-tables has been continued. In the estimates for the prosecution of the survey is an item for the construction of a steam-vessel specially adai)ted to the survey of the coasts and navigable passages of the Territory of Alaska. The grow- ing importance of that country and the needs of its commerce and navigation recommend this proposition to the favorable action of Con- gress. 5 Ab 66 REPORT OF THE SECRETARY OF THE TREASURY. THE MARINE-HOSPITAL SERVICE. During the year 36,184 patients received 333,475 days relief in hos- pital. Transportation to their own homes was furnished to seven in- curable patients. Fifteen seamen have been furnished treatment at the Government Hospital for the Insane; 306 seamen were examined physically as preliminary to shipping; 2,090 pilots were examined for color-blindness; and 3,278 seamen were vaccinated, because of the prevalence of small-pox. The receipts were $408,215.69, and the gross expenditures $468,120.16. These expenditures include $54,192.20, on account of extraordinary alterations and repairs to hospital build- ings. Less this amount, $413,928.14 was the net expense of the ser- vice. On July 1, there was an unexpended balance of $177,869.85, $50,000 of which will be required for additional repairs then under contract, and $15,000 more for contemplated alterations. Tlie hospitals generally are in good condition. The recommendation heretofore made for the establishment of a " snug harbor" for those sailors and boatmen l^ermaueutly disabled, and that for the physical examination of all sea- men before shipiDing are renewed. Of the 2,000 pilots examined for color- blindness, sixty-three were rejected as being color-blind, while of the re- maining 306, twenty-four were rejected for various disabilities. There is now no complaint against the examination for color-blindness, and it is believed that the Department would have no difficulty in carrying out"^ the law for the general physical examination of all seamen. One hun- dred and fifty-four deaths are reported of passengers on voyages from foreign ports to this country. Keport thereof is the beginning of statistics on the hygiene of merchant vessels, to meet the intention of Congress in providing for the inspection of those vessels, to show the relative mortality in classes of them. To complete them, the re- ports should be kept up for years. An epidemic of small-pox broke out on the Upper Missouri river, where there was no local sanitary law, and the Department, being called upon, made use of the customs force to suppress the disease. In my judgment, the hospital-tax should not be reduced until seamen request it, or until Congress shall make annual appropriations for the support of the service. When the tax was but 20 cents per month, the Department was obliged to deny relief to many suffering seamen ; now relief is denied to few, if any, who are entitled to receive it. The en- tire number of applicants rejected the last year was 979. These were mostly in the larger cities, and were generally longshoremen and fishermen, in many cases persons who were not sailors. The number of persons rejected who had ever been sailors was small. The REPORT OF THE SECRETARY OF THE TREASURY. 67 service meets the necessities of tliose who are its leg^itimate benefici- aries, and the tax was originally increased from 20 cents to 40 cents at the request of those who are eligible to become such. STEAMBOAT-INSPECTION SERVICE. This table shows steam-vessels inspected, their tonnage, and the officers licensed in the several divisions of navigation, during the fiscal year ended June 30, 1882 : Divisions. Steamers. Tonnage. Officers licensed. Pacific coast. -- Atlantic coast . "Westoru rivers . Kortliern lakes Gulf coast 320 2, 332 944 1,175 356 121,403.91 587, 349. .37 197,729.60 293,709.64 73, 282. 11 1,253 8,276 4,805 4,199 1,929 Total. 5,117 1,278,564.63 20,467 It is an increase over the preceding year — In number of vessels 338 In tonnage 74, 561. 53 In number of officers 2, GG9 Keceipts were — From steam- vessels $177, 841 30 From licenses 102, 048 00 Total 279, 889 30 The expenses were — Salaries of inspectors and clerks $189, 744 17 Travelling and miscellaneous expenses 37, 871 40 Total 227, 015 63 Unexpended 852, 273 07 Increase in receipts from inspection of steam-vessels over 1881 $10,212 09 Decrease in receipts from officers' licenses 37, 877 00 Net decrease for the year 27, 0(;4 91 The decrease in receipts from licensed officers is because of the amendment of 1882 (April 5) to section 4458, Revised SUitutes. It reduced the license fees from $10 and $5, according to grade, to fifty C8 REPORT OF TTTE SECRETARY OF THE TREASURY. CCJits ill all cases. It is likely that this amcnclment will bring the yearly receipts below the exp.siiditures. There is, however, an aceumu- lation ol" I'luids to the credit of this service of near three-quarters of a million dollars. This will for some years meet any deficiency. Before it is wholly used the service may become self-sustaining? by the in- crease in the number of vesssels to be inspected and the fees collected therefrom. The fees have , increased for several years about $G,000 yearly. The number of accidents to steam- vessels during the year resulting in loss of life was 41; from — . Explosion 15 Fire 7 Collision 10 Snags, wi-ecks, and sinking 3 The number of lives lost by accidents from various causes during the fiscal year ended June 30, 1882, was 205; from— Explosion 53 Fire GO Collision 34 Snags, wrecks, and sinking 6 Miscellaneous casualties G Accidental drowning • 46 A decrease from last year of sixty-three. Of the lives lost, fifty-six are reported as those of passengers. The rest were employes of the vessels, many losing their lives through carelessness, begot by famili- arity with dangerous duties. It is estimated that there were carried during the year 354,000,000 passengers. nOIIGRATION. The execution of the act to regulate immigration approved August 3, 1882, has disclosed certain defects in the statute which seem to require legislative remedy. While the act gives the Secretary of the Treasury supervision of the business of immigration to this country, it enables him to exercise this supervision only through commissioners appointed by the Governors of States in which lie the ports at which immigrants laud. He is fiu'ther to supervise the business only under the stipulations of contracts en- tered into with such commissioners. Most of the collectors of customs ha\'e informed the Department that the amount of immigration at their respective ports is not such as to warrant the appointment of commis- sioners. At two of the ports at which immigrants needing relief are likely to arrive, namely, Baltimore and New Orleans, no commis- REPORT OF THE SECRETARY OF THE TREASURY. Gd sioners have been api)ointed by State authority, and hence tlie ]a\Y is there inoperative. At the ports of Is ew York, Phihidelphia, and ]jOston commissioners have been appointed, and the statute is in operation more or less successfully. In collecting the tax of fifty cents levied by the act on every alien passenger, not a citizen of the United States, arriving by a sail or steam-vessel from a foreign port, it is found that many of the pas- sengers are tourists, many intending a temporary sojourn in this country-, and many are minors. Under the construction put by this Department on this provision of the statute, it has restricted the col- lection of this tax to alien passengers seeking a permanent residence in this country, including in that class minors contemplating a lasting home here. Under this rule the sum collected at most of the ports has ex- ceeded the demands for immigrant relief. At Xew York it has steadily fallen behind these demands in an amount between four and five thou- sand dollars per month. If the relief of immigrants is to be secured, some provision is needed for a deficit of this character, inasmuch as the particular sums collected can be expended only at the ports where the immigrants arrive; and the disiDosition of the excess at some l)orts should also be provided for. It is respectfully suggested that the law is peculiarly framed, in this: that while its execution is charged upon this IJe])artnient, yet this Department must act through subordinates doing the practical work. They are to be appointed by State authority, and that authority may fail to appoint, and they may or may not be paid a proper renumera- tion if appointed; and the rules and regulations which this Department by direction of the statute is to establish are Virtually restricted by the terms of the contracts into which it may be able to enter with the State boards or commissioners. The law is, therefore, in its essential features one of uncertain operation. The thorough execution of it needs the existence of an administrative bureau, with its proper body of ofticials. But there is no provision in the act for such bureau, no provision for administrative ofQcers other than as above stated, and no provision for the direct control of the business by this Department. Under the provisions of section 4 of the act, it is provided that all foreign convicts, except those convicted of political oftences, shall, upon arrival, be sent back to the nations where they belong and whence they came. This provision may give rise to complications with foreign countries growing out of demands for the return of convicts. First: if the treaty stipulations with a foreign country require the direct ret urn of a convict belonging to that country to its accredited agents, this law 70 REPORT OF THE SECRETARY OF THE TREASURY. might conflict with tlio treaty in requiring a return of the convict by the master of the vessel in wliich the convict was a passenger, in- stead of a dehvery of the convict to the agents of his country. Sec- ondly : the law is itself ambiguous in its directions, as the country to which the convict belongs may not be that whence he came. The De- partment has endeavored to remove this difficulty by adopting in its regulations promulgated on the 7th of August last the provisions for the return of convicts embodied in section 5 of the " Act supj^lement- ary to the acts in relation to immigration," approved March 3, 1875. But the recent statute should be so amended as, on its face, to be free from ambiguity. NATIONAL BOARD OF HEALTH. The report of the National Board of Health for the fiscal year ended June 30, 1882, shows an expenditure of $98,523.07. This expenditure has been made chiefly in aid of State and local boards of health and of local quarantine stations, in preventing the coming in of yellow fever and small-pox from foreign ports and the spread of them by river and railroad. The act of June 2, 1879, under which some of the operations of the board are conducted, will expire by limitation on the 2d of June, 1883. If it be deemed advisable to continue the work on which the board is engaged, additional legislation will be necessary, and appropriations, based upou the past experiences of the board, amounting to $150,000, will be required, and $100,000 for use in case of epidemics. The details of the work of the board, the results achieved, and the appropriations required for its continuance are shown in the annual report of the board, which is transmitted. APPEOPRLATION FOR PREVENTING THE SPREAD OF EPIDE^nC DIS- EASES. One hundred thousand dollars were appropriated by Congress at its last session, to be used, in the discretion of the President, Ibr prevent- ing the spread of epidemic diseases. The expenditure was by him committed to this Department, because it had ready the services of trained members of the Marine-Hospital Service, of the Bevenue-ZMa- rine Service, and the Customs Service. The Governor of Texas applied for aid in checking the spread of yel- low fever in that State. The Surgeon-General of the Marine-Hospital Service was charged with the duty of rendering it. The trust was ful- filled with judgment and zeal, and the spread of the fever checked. REPORT OF THE SECRETARY OF THE TREASURY. 71 The system of cordons formed by him and his official coadjutors was well conceived and useful. The result of their operations shows that the management of such matters may well be confided to them. ALASKA. Early attention should be given to the establishment of civil gov- ernment for Alaska Territory. The importance of that land is not, I fear, full}' recognized. It is rich in timber and in the supplies which the ocean gives ; and with the present rapid cutting down of the forest on lands nearer market, and the ruthlessly wasteful modes of taking fish on coasts and in rivers nearer at hand, it will too soon become the resource of the country for those products of nature. 31oreover, the extent and richness of useful mineral deposit and of precious metals there are not yet fully known, though the indications are that they are great. AVere civil government established, immigration and perma- nent settlement would be encouraged and the way made ready for the profitable use of the natural advantages which tliat region prollers. There is no lawful authority in that Territory to dispense justice and act upon conflicting claims, unless that assumed by customs officers may be called such. There should be there, as elsewhere, the ready protection of law, administered by officers and in ways, themselves lawful; and then material and social development woulil go forward. The Treasury Department should not be charged with the responsibility of administer- ing the affairs of that Territory, except in so far as they come within its legitimate functions ; dertainly not without some well-defined rule of action. The Alaska Commercial Company has taken during the past year nearly the maximum number of seal-skins permitted uiuler its lease, l)aid the tax due thereon, as well as the rent of the islands, and other- wise performed its duties under its lease. DISTINCTIVE PAPER. There have been received and duly accounted for since the last re- port 10,371,950 sheets of silk-threaded distinctive-libre {tajH-r for the printing of United States notes, national-bank notes, gold and silver certificates, registered bonds, checks, and other obligations of the Government. The use of this paper continues to give satisfaction, and it is believed furnishes an important defence against attempts at counterfeiting. During the same period there have been received 19,748,000 sheets of the distinctive paper adopted for the printing of internal-revenue and customs stamj^s. 72 RKPOKT OF THE SECRETARY OF THE TREASURY. COUNT, EXAMINATION, AND DESTRUCTION OF REDEEMED SECURITIES. The United States legal-tender notes, national currency and miscellaneous securities, received by this office during the fiscal year ended June 30, 1882, for final count and destruction, amounted to $ l()9,GG5,573.75i, and United States legal tender notes, national currency. United States bonds, and other obligations mutilated in process of printing, and unissued notes, received for destruction, amounted to $40,841,104, making an aggregate of securities counted, cancelled, and destroyed, of whicli details will be found in the tables accompany- ing this report, of $210,50G,737.75J. BUREAU OF ENGRAVING AND PRINTING. The work of this bureau steadily increases. The aggregate deliv- eries for the year are over twenty per cent, greater, the expenditures for it less than twelve per cent, greater, and the force of employ 6s about ten per cent, greater than the year before. All the engraving, plate- printing, and work incidental thereto required by the Treasury De- partment is now done in this bureau under the direct supervision of the officers of the Government. The matter of the use of steam-power presses for printing was on July 10, 1882, referred to a special committee, who still have it in charge. Owing to a pressure of work on the three per cent. l)onds and on the new form of circulating notes for national banks which availed them- selves of the act of August 12, 1882, the labors of the committee were necessarily broken in upon, and they have not yet finished the task set them to do. PUBLIC BUILDINGS. Congress at its last session authorized the erection of thirty-seven new buildings for public use, including four marine hospitals ; the pur- chase of one hospital-building ; the extension and remodelling of the custom-house at Buffalo, and that of the court-house and post-office at Des Moines, Iowa. This contemplated an aggregate final cost of $0,293,000 ; of whicli $3,258,000 were at once appropriated. Sites have been selected for nine of these buildings, and a site for the building at Jackson, Miss., for which appropriation was made at the previous ses- sion. Steps have been taken for the selection of others, where juris- diction over the land has been ceded by respective States. Where this has not been done the Department awaits the action of Legisla- tures. ■ REPORT OF THE SECRETARY OF THE TREASURY. 73 I call attention to a recommendation in the report of the Supervising Architect, that the authority for purchasing land at Pensacola be not limited to the extension of that now owned by the United States, and that the Government may acquire a new site, if found advisable. Of the buildings in jnogress under former authorizations, five have been finished during the year, and on twenty work is in progress. There has been exi^ended during the year on the public buihliugs under control of the Department, $2,34:9,2-A9.G5 for construction, $1G0,G18.03 for repairs, and 8137,137.00 for heatiug apparatus, ele- vators, vaultSj safes, and locks. DISTRICT OF COLUMBIA. The net expenditures on account of the District of Columbia for the fiscal year 1882 were 63,330,543.87. The revenues deposited in the Treasury for the same period were $1,715,170.41. Since December 1, 1881, the bonded indebtedness was reduced by operation of the sinking-fund $250,350, and the annual interest charge upon the District debt was reduced $13,795.05. Since the office of the commissioners of the sinking-fund of the District of Columbia was abol- ished and their duties and powers were transferred to the Treasurer of the United States by the act of Congress of June 11, 1878, the funded debt has been reduced in the principal sum $1,189,250, and the annual interest charge thereon has been reduced $09,587.07. The several re])orts of the heads of offices and bureaus are herewith respectfully transmitted. The Department is pleased to report that as yet there is no deficiency in the ajipropriations placed by Congress at its disposal. CHAS. J. FOLGER, Secretary. To the Honorable The Speaker of the House of Representatives. 74 REPORT OF THE SECRETARY OP THE TREASURY. TABLES ACCOMPANYING THE REPORT. TABLi: A.— STATEMENT 0/ the NET ItECEfPTS (by warmnts) during the fiscal year ended June 30, 1882. CUSTOMS. Suartrr omlod Sept«ml}er 30. 1881 $.",9,184,409 15 uiiiUu' niil.'d ])(wenil)er31, 18«1 49,049,54.'! 98 tiuarter (■ndcil :M:inli ;!l, 1882 .'■)8, 585, 485 :i:j Quaitoremlcd Juiio30, 1882 53,591,231 79 $220, 410, 730 25 SALES OF PUBLIC LANDS. Quarter ondca September 30, 1881 948,303 19 Quarter eiKk^l Decfiiiber 31, 1881 1, Lot, 120 39 Quarter wkUmI ilarcli 31, 1882 1,241,287 44 , Quarter ended Juno 30, 1882 1,409,304 35 4, 753, 140 37 INTEKNAL EEVENUE. Quarter ended September 30, 1881 .37,575,502 22 Quarterended l)eceml)er 31, 1881 37,884,202 83 Quarter ended :March 31, 1882 30,362,131 93 Quarter ended Juno 30, 1882 40,075,098 47 146, 497, 595 45 • TAX ON .CIRCULATION, DEPOSITS, ETC., OF NATIONAL BANKS. .Quarter eurled September 30, 1881 4,307,988 80 Quarterended December 31, 1881 12,610 82 Quarterended March 31, 1882 4,563,707 87 Quarter ended June 30, 1882 72,486 90 8, 956, 794 45 EEPATMENT OF INTEREST BY PACIFIC RAILROAD COMPANIES. Quarterended September 30, 1881 59,999 49 Quaitcr ended December 31, 1881 221,700 50 Quarter ended March 31, 1882 225,578 03 Quarter ended June 30, 1882 333,216 35 840, 554 37 CUSTOMS FEES, FINES, PENALTIES, AND FORFEITURES. Quarter ended September 30, 1881 329,322 89 Quarter ended December 31, 1881 301,200 89 Quarter eiidud March 31, 1882 351,505 65 Quartoreudcd Juuo30, 1882 301,312 57 1, 343, 348 00 FEES, CONSULAR, LETTERS PATENT, AND LAND. Quarter ended September 30, 1881 039,180 08 Quarter ended December 31, 1881 5S7, 405 92 Quarter ended March 31, 1882 657,863 93 Quarter ended June 30, 1882 804,541 04 2, 038, 990 97 PROCEEDS OF SALES OF GOVERNMENT PROPERTY. Quarterended September 30, 1881 06.303 58 Quarter ended December 31, 1881 88,862 96 Quarter ended March 31, 1882 79,870 17 Quarter ended June 30, 1882 79,803 14 314, 959 85 PROFITS ON COINAGE. Quarter ended September 30, 1881 809,317 80 Quarter ended December 31, 1881 8.59,156 26 Quarter cniled March 31,1882 1, .''.61, 089 03 Quarter ended Juno 30, 1882 887,130 04 4, 116, 603 73 REVENUES OF DISTRICT OF COLUMBIA. Quarterended September 30, 1R81 158,443 95 Quarterended Deeeml)er 31, 1881 1,078,281 41 Quart.r ended March 31, 1882 209,822 06 Quarter ended June 30, 1882 208,020 99 1, 71.5, 176 41 MISCELLANEOUS. Quarterended September 30, 1881 4,009,590 15 Quarterended December 31, 1881 1,381,047 97 Quarterended March 31, 1882 1, ]8:i, 588 09 Quarter ended June 30, 1882 5,08.3,144 32 11,057,377 13 Total ordinary receipts 403,52.5,250 23 Cash in Treasury June 30, 1881 252,500,023 46 Total 656,031,273 74 EEPOET OF THE SECRETARY OF THE TREAgURY. 75 TABIi£ U.—STATEMJSXT of the NET DISBURSEMEXTS {by icarranta) during the fiscal year ended June 30, li!82. CIVIL. Conjrress $5, 5<12, 982 10 jKxecntive 7, 252, K22 05 Judiciary 3, 5:itj, 857 39 Government of Territories : 213, 338 70 Sabtreasuiies 350,185 47 Public land ortices 732,370 37 Inspection of steam vessels 228, 371 46 Miutaud assay oUices 1p5, 458 US Total civil $18, 042, 386 42 FOREIGX IXTERCOUESE. Diplomatic snLiries 348, 215 70 Consular salaiins 491,895 87 Continjrt-ncies of consulates 147, -iOfl 14 Kescuins American scaineu from shipwreck 2,467 59 American and Spanisli Claims Coramissiou 7,924 96 Contingent expeiiiios of foreign missions 105,479 21 Shipping and discharging seamen 5, 513 50 Prisons for American convicts 2o, 110 63 Expenses under the neutrality act .' 2, 100 00 American and French Commission Ill, 627 10 International Bimetallic Commission 19, C04 40 .Publication of commercial and consular reports 18, 033 22 Contingent and miscellaneous 20, 541 88 Total foreign intercourse 1,307,583 19 MISCELLANEOUS. Mint establishment .' 1,200,752 37 Coast Survey 538,863 09 Lifrht-IIonse Establishment 1,776,420 02 Building and repairs of light-houses 615,720 50 Refunding excess of deposits for unascertained duties 3, 680,845 77 Ke venue-cutter service 846, 423 34 Life-saving service 598, 624 59 Custom-houses, court-houses, post-offices, &c 2,399,100 29 Furniture, fuel, &;c., for public buildings under Treasury Department. . 817, 811 13 Pepairs and preservation of buildings under Treasury Department . . .. 220, 658 33 Collecting customs revenue 6, 549, 595 07 Debenture and drawbacks under customs laws 2,093,086 73 Marine-IIoapital ICstaUlisbiiieut 408,120 16 Conip<'ii8atiiiu in lieu of iniiietic* 3t), 628 83 Assessing ,ind collecting internal revenue 4,097,241 34 Punishing violations of interualrevenuo laws 54, 530 16 Internal-revenue stamps, paijcrs, and dies 540, 608 27 Kofuuding duties erroneously or illegally collected 59, 824 58 Internal-revenue allowances and drawbacks 49, 770 90 Kedemption of internalrevcnuo stamps 25, 565 91 Expenses national currency 123, 925 01 Suppressing counterfeiting and fraud 84, 894 10 Contingent expenses, Independent Treasury 90,044 26 Survey of public lands 314,701 01 Five per cent, fund, Sec, to States 87,035 39 Postage 171,3.">8 40 "Vaults, safes, and locks for public buildings f»6, 170 76 Indemnity for swamp lands 1 126, 077 50 Building revenue cutters 01, 005 87 Pronagation, &.C., of food-fishes 2U3, 103 19 Geological survey of Territories 1 r^'). 546 1 .5 Deposits by individuals for surveys of public lands 1, 38.'i, 201 24 National Board of Health ." 109,900 00 Expenses of Eighth, Ninth, and Tenth Census GOt, 841 65 P.'brriient of. judgments. Court of Claims 590, 051 31 Mail ti-ans]>ortation. Pacitic Itailroads 544,786 83 Department of Agriculture 240, 807 41 I'atent Ollico ISO. 720 21 Expi uses of Bureau of Engraving and Printing 3Vt, ,i«o7 00 Smitlisoni:m Inst it ul inn 129,208 04 Coniiilttion of the Wa.shingfon T^fonument lOo, iioo 00 Pulili<' liuildings and grounds in Washington 315, 705 .55 Annual repairs of the Capitol 61,957 20 Improving and lighting Capitcd giounils 94,770 05 State, AVar, and Navv Departments building 320,988 09 Columbian Institute for Deaf and Dumb 01, 742 07 GovemnMUt nosjiital fur the Ins.me KM, 999 93 rreedman".« Ilosjiilal 41,774 00 How:ivd L^uiversiiy 10,000 00 Sui>p.)n and treatment of tran.sient paupers 15, oimi oO Itedi n)])tion of District of Columbia securities 1, 137 20 Refunding taxes. District of Columbia 4.0.54 06 AVater fund. District of Columbia 105, 030 08 Spec ial tax fund 13, 700 06 Expenses of District of Columbia 3, 14 », 210 29 Washington Aqueduct 19,018 94 76 REPORT OF THE SECRETARY OF THE TREASURY. TABfvi: 11. -STATEMENT of the NET DISBURSEMENTS {by wairantu) during the fiscal year ended June HO, 1B82 — Continued. MISCELLANEOUS— Continued. Ch.intahlc, inslitnlions $lf:0, 708 04 Doprcdalions on jmblio tinibor 12, 147 04 Puniituie, &c., National MuHCum V\^, 871 05 PurcliaHo Fi'cedmous' Uank 2.')(), 000 00 MiaccUauoous 4r)2, .110 77 Total miscoUanoous $37,869,781 37 INTERIOK DEPARTMENT. Indians 9,7.30,717 dO Pensions 01,315, 193 y.'j Total Interior Department 71,081,941 35 MILITARY ESTABLISHMENT. PayDopartmrnt 12, 3Si,249 31 (^oniniiHuai-y Department 2, 2.'57, 374 92 Qiiartennastcr's Department 11,554,898 2(5 Medi8, 682, 01 5 12 Cash in Treasury June 30, 1882 247, 349, 258 62 Total 656,031,273 74 JIEPORT OF THE SECRETARY OF THE TREASURY. 77 TABLE C—STATEMEXT of the ISSUE and REDEMPTION of LOASS and TUEASURY NOTES {oy warrants) for the fiscal yiar ended June 30, 18s2. Issues. Bedemptions. Excess of issued. Excess of redemptions. Loan of 1858, act of Jnne 14, 1858 . ... Loau of February, ISGl, act of Feb- ruary 8, 1801 . . ■ Orogon war debt, act of March 2, 18G1. Loau of July and August, 1S61, acts of July 17 and Au<,Ti8t 5, ISGl Old demand notes, acts of July 17 and Auuust 5, 1861, and July IL', 1802... Five-twenties ot 1862, act of Febru- ary 25. 1802 Lejral-tender notes, acts of February 25 and July 11, 1802, January 7 and March 3, 1863 Fractional currency, acts of July 17, 1802, March 3, 1803, and Juno 30, 18&4. $79,520,424 00 Coin certificates, art of March 3, 1863. One-year notes of 1803, act of March 3, 1803 Two-year notes of 1863, act of March 3,1863 Compound interest notes, acts of March 3. 1803, and June 30, 1864 ... . Loan of 1803. act of March 3, 1863, and J une 30, 1864 Ten-forties of 1804, act of March 3, 1804. Fi%e-twentipa of Jnne, 1864, act of June 30, 1864 Seven-thirties of 1804 and 1865, arts of June 30, 1804, and March 3. 1865. Five-twenties of 1805, act of M;uch 3, 1805 Consuls of 1865, act of March 3, 1865.. Consols of 1807, act of March 3, 1865. . Consols of 1M)8, act of March 3, 1805.. Fumlcd loan of ISSl.ncts , 1882. KECEirTS. Customs $64,008,875 71 Salrs of public lamia 1, 18.-.,Gir2 97 liitwnal revonue 37,700,804 58 Tii\ on ciiculiilion, (IppoKita, Ac, of national banks 4, 49'J, 426 39 JIcliMyuioutofintrirrst. by I'aritic Kailroiid Companies 65,774 62 Ciish'iiiis' fiM^s, lines, pciKi II iiH, and forfeitures 4'J'J, 140 09 Consular, Ictti'rs patent, liomesteatl, &.C., foes 822,842 49 Proceeds of sales of covonimeut property IKJ, 995 05 Prolitsou coinage, &c 1,040,119 'M Miscellaneous 1,978,004 53 Total net ordinary receipts 112,790,600 72 Balance in the Treasury June 30, 1882 247,349,258 02 Total 300,139,865 34 DISBURSEMENTS. Customs 5, 78S,227 38 Internal revenue 1, 443, 129 47 Diplomatic service , 440, 101 46 Quarterly salaries 100,410 75 Treasury proper 6, 716, 737 10 Judiciary 1,072,147 14 Interior (civil) 2,070,805 06 Total civil and miscellaneous 17,640,618 36 Indians 2,633,778 88 Pensions 23,397,244 51 Military Establishment 14,181,028 69 Naval Establishment. 3,571,431 S3 Interest on public debt 17,219,240 19 78, 643, 348 46 Redemption of tbe public debt 40,000,789 60 Balauceiu Treasury, September 30, 1882 241,399,728 48 Total 360,139,865 94 STATEMENT of the PUBLIC DEBT, ineludvifj ACCRUED INTEREST thereon, less cash in the Treasuri/ on the 1st day of Juhi of each year, from 1869 to 1862, comjnlcd from the puhlished monthly deht-siatements of those dates. Tears. Outstanding prin- cipal. Accrued inter- est. Cash in the Treasury. Debt less cash in the Treasury. July 1 1SG9 *$2, 597, 722, 983 37 *2, 601,675, 127 83 2,353,211,332 32 2, 253, 251, 328 78 2, 234, 482, 993 20 2, 251, 690, 468 43 2, 232, 284, 531 95 2, 180, 395, 067 15 2,20.5,301,392 10 2, 256, 20.5, 892 53 2, 349, 567, 482 04 2, 120, 415, 370 63 2, 069, 013, 569 58 1,918,312,904 03 $47,447,310 79 50, 607, 556 52 45, 036, 766 23 41, 70.5, 813 27 42, 356, 652 82 38, 939, 087 47 38,647,5.56 19 38, 514, 004 £4 40, 882, 791 89 36, 404, 551 37 30, 792, 351 34 22, 845, .547 59 20, 948, 657 75 13, 890, 986, 47 $156,167,813 58 265, 924, 084 61 106,217,263 65 103, 470, 798 43 129, 020, 932 45 147, 541, 314 74 142, 243, 361 82 119,469,726 70 186, 025, 960 73 256,823,612 08 353,152,577 01 201, 088, 622 88 249,363,415 35 243, 289, 519 78 $2 489 002 480 58 ISTO 2, 386, 358, 599 74 2,292,030 834 90 1871 1872, 2,191,486,343 62 2, 147, 818, 713 57 2, 143, 088, 241 16 2, 128, 088 726 32 1873 1874 1875 1876 2, Onu, 439, 344 99 2,060, 1.58,223 26 1877 1878 2,035,786,831 82 1879 2, 027, 207 256 37 1880 1,942,172,295 34 1881 1, 840, 598, 811 98 1882 1, 688, 914, 460 72 * It will be noticed that there is a difference in the .amounts represented by these two statements as the iiri;>nipal of the d(d)t July 1, 1869, and July 1, 1870. This difference is explained thus: In i he prin- ripal of the debt as shown by the monthly debt-Statements of these dates, the bonds purchased for the sin'Kiuu-l'und and paid for from money in the Treasury, were included as a part of the outstaudiu}; debt and were also treated in the cash as a cash item, or asset, for the n-asou that at that time there was no nutlioiitv or law for deducting them from the outstanding debt. Congiess, bj' the sixth section of tlie act of .Julv 14, 1870, directed that these bonds should be canceled and d» stroyed and deducted from the amount of each class of the outstandius debt to which they respectively belonged, and such dctluctioiis Wert actordinj;ly made on the books of the department and in the table of the debt iu the aunucd repoi t. PAPERS ACCOMPANYING THE REPORT OF SECRETARY OF THE TREASURY. IlEPORT OF THE CO:\rMISSrONER OF INTEPtNAL REVEXIJE. Treasury Depart:ment, Office of Internal Revenue, Washington^ November 25, 1882. Sir: I Lave the honor to submit the annual report of the Commis- sioner of Internal Revenue for the fiscal year ended June 30, 1882, with additional information relative to the operations of tlic Bureau during the months of July, August, September, and October of tlie present fiscal year, and accompanied by an appendix* of tabular statements as follows: Table A, sho\<'ing the receipts from each specific source of revenue, excei)t adhesive stamps, and the amounts refunded in each collection district. State, and Territory of the United States, for the fiscal year ended June 30, 1882. Table B, showing the number and value of internal-rpvenue stamps ordered monthly by the Commissioner and from the ofiice of the Com- missioner; the receipts from the sale of stamps and the commissions allowed thereon; also the number and value of stam])s for special taxes, tobacco, cigars, cigarettes, snufl", distilled spirits, and fermented liquors, issued monthly to collectors during the fiscal year ended June 30, 1882. Table C, showing the ])ercentages of recei[)tsfrom the several general sources of revenue in each State and Territory of the United States to the aggregate receipts from the same sources, by fiscal years, from Julv 1, 18G3, to June 30, 1882. Table D, showing the aggregate receipts from all sources in each collection district, State, and Territory of the United States, by fiscal years, from September 1, 1862, to June 30, 1882. Table E, showing the receipts in the United States from each specific source of revenue, by fiscal years, from September 1, 1802, to June 30, 1882. Table F, showing the ratio of receipts in the United States from spe- cific sources of revenue to the aggregate receipts from all sources, by fiscal years, from July 1, 1803, to June 30, 1882. Table G, showing the returns of distilled spirits, fermented liquors, manufactured tobacco, snufl", cigars, and cigarettes, under the several acts of legislation and by fiscal years, from Sei)tember 1, 1802, to June 30, 1882. Table H, showing the receipts from special taxes in each collection district. State, and Territory for the s])ecial-tax year ended April 30, 1882. Table I. Abstract of reports of district attorneys concerning suits and jirosecutions under the internal-revenue laws during the liscal vear ended June 30, 1882. Table K. Abstract of seizures of property for violation of internal- revenue laws during the fiscal year ended June 30, 1882. * The appoudix here referred to is omitted from thie Tolume for want of space, but it will be foimd in tlio bound volumes of Iho Commissioner's report, 79 80 PAPERS ACCOMPANYING THE REDUCTION OF TAXATION. The receipts from in torn aire venue taxation have year by year in- creased, from ir^llSjOOOjOOO in the fiscal year 1879, to $124,000,000 in 1880, to $13r),00(),U()0 in 1881, and to $140,500,000 (in round figures) in the fis- cal year last ended. There will probably be some diminution in the re- ceipts for the present fiscal year as compared with last year, but it is not likely that the collections of internal revenue for the current year will fall below $145,000,000 should the taxes now iini)Osed be retained. It is an old and sound maxim that no more revenue should be raised than is necessary for an economical administration of the government and a gradual reduction of the public debt. Although taxation may be so wisely adjusted as not to operate as a severe burden upon the people, when the amount collected is beyond the actual needs of the govern- ment there is presented a constant temptation to extravagance in ap- propriations. Another consideration attending the existing overflowing condition of the public Treasury cannot have failed to attract your notice. If the present rate of paying the principal of the public debt be continued, all the bonds subject to call will be paid within three years; after which time the government will be compelled, in order to dispose of its surplus revenue, to buy in open market the 4 J per cent, bonds which fall due in 1891, or the 4 per cent, bonds which fall due in 1007. Should the government thus become an active purchaser of these bonds before maturity it seems clear that they would advance in price to 25 or 30 per cent, premium, to pay which would certainly be regarded as a waste of the people's money. It seems to me judicious that the prin- cipal of the public debt should be extinguished, as was originally con- templated, only at the rate necessary to meet the requirements of the sinking fund, viz, to the extent of about $55,000,000 per annum. There- fore, it becomes obvious that a reduction of from seventy to eighty mill- ions in the annual revenues of the country could be safely entered upon, and in my judgment such a reduction is urgently called for. I respect- fully ofl'er some suggestions for your consideration in this regard. Sound policy would seem to require that in remitting taxation the relief should fall as far as possible upon those articles which are neces- saries of life, and upon those interests which are of pressing impor- tance to the country. The great bulk of internal-revenue taxation is de- rived from distilled spirits (about nine-tenths of which are used as a beverage), malt hquors, tobacco, and cigars. These are not articles of necessary consumption, but are articles of luxury, the taxes upon which are really paid by the consumers, and no one need consume them. I am strongly of the opinion that, so long as the principle of deriving part of the revenue of the government from internal taxation is retained, these articles, and the dealers therein, are proper subjects for taxation. There is no demand on the part of consumers of these products for the remission of the taxes imposed upon them ; there is no public senti- ment calling for their repeal ; on the contrary, the general current of public opinion seems to be in favor of their retention. The other objects of internal-revenue taxation, with the amounts realized therefrom during the past fiscal year, are as follows : Friction matclies §3,272,258 00 Patent medicines, perfumery, &c 1,978, 395 56 Bank chocks 2,318,455 14 Bank deposits 4,007,701 98 Savings-bank deposits 88,400 47 Bank capital 1,138,340 87 Savings-bank capital 14,729 38 Total.. 12,818,281 40 REPORT OF THE SECRETARY OF THE TREASURY. 81 Add to these items the taxes collected by the Treasurer of the United States from national banks, as follows : National banks (deposits) $5,521,927 47 National banks (capital) 437,774 90 Makes a total derived from these sources of 18,777,983 77 As suggested in my report for 1880, these taxes should, in my opinion, be repealed. The tax on friction matches is more or less felt in every household. The tax on savings-bank deposits is a tax on thrift. The tax on patent medicines, perfumeries, and cosmetics is vexatious, being levied upon innumerable articles. The taxes on bank capital, bank de- posits, and bank checks are not needed for purposes of rievenue, and can therefore be dispensed with, and the latter tax is largely amenable to the objection made to the tax on deposits in savings banks — that it is an impost laid upon the practice of economy, which it shoidd be the design of all good governments to encourage. The repeal of these taxes would greatly simplify the internal-revenue system. Then, if to the eighteen and three-quarter millions of reduc- tion thus proposed Congress should add a reduction in the charges for special taxes to dealers in articles taxed for internal revenue substantially as proposed in the bill nowpending before the Senate, a still farther dimi- nution of taxation would be attained, and the supervision over dealers in taxable articles, which experience has shown to be necessary in order to fully and fairly collect the taxes from all alike, would still be preserved. Keducing all these special taxes 40 per cent., the remissions under this head would be as follows, on the basis of last year's collections : Special-tax payers. Present, rates. Proposed Annual re- rates, duction. Kcctiflers : First ci.iss Second clasa Wholosalo liqaor dealers Retail liqnoi dealers Manufacturers of stills Stills or worms mattufactured Brewers : ri»st class Second class Wholoflale dealers in malt liquors KetuU dealers in malt liquors Manufacturers of cigars Manufacturers of tobacco Dealers in loaf tobacco Dealers in leaf tobacco not over 25,000 poiinds. Dealers in manufactured tobacco Peddlers of tobacco : First class Second class Third class Fourth class $200 100 100 25 50 20 100 ."iO 50 20 10 10 25 5 5 50 25 15 10 $70, 665 169,629 1, 667. 703 586 2,043 76,852 43,724 64,044 55, 975 3.483 30,388 3,705 789, 386 Total. 3, 007, 905 The act of March 1, 1870, reduced the tax on tobacco from 24 cents per pound to 10 cents per pound, but did not reduce the tax on cigars and cigarettes. A corresponding redu(;ti<)n on cigars would be to ■'?4 per thousand, and on cigarettes to $1.20 jxt thousand. This, I think, should be done, and would amount to a reduction of taxes of $(),74G,0()0. This would make a total reduction of internal-revenue taxes (includ- ing the taxes on national banks) as follows : Matches, medicines, perfumery, and banks §lfl,777,9'"'3 77 Special taxes ;{, 007,90") 00 Cigars and cigarettes G, 74t), 000 00 2^?531.8cd 77 Total... C Ab 82 PAPERS ACCOMPANYING THE While it is undoubtedly deemed advisable by many that there should be a revision of the tariff, it is unquestionably the case that it is not possible to foresee the effect which a reduction of the rate of duties on many of the great lines of importation would have upon the receipts from customs. It is contended that a reduction of duty upon many ar- ticles would so increase the importation of them as to yield an actual increase of revenue. The demand of the hour is for legislation that will reduce the receipts of the government, I venture to suggest whether it is not desirable to consider the practicability of taking the duty off sugar. About 2,200,000,000 pounds of sugar are annually consumed in the United States, 10 per cent, of which is produceer annum of the entire population of the country. The objection to this measure would be the abolition of the protection now afforded to the sugar interests of Louisiana and other States. This ; difficulty might be met by giving a bounty of, say, two and one -half cents per pound upon all home-produced sugar. The cultivation of sugar in this country is not a rapidly-growing industry; there is no pros- pect that the i)roduction of cane sugar will ever bear a greater propor- tion to the consumption than at present. If the area of the lands suit- able for the growth of sugar-cane was large, and the industry was one which would develop rapidly under the encouragement of protective, legislation, so that the constantly growing demand for sugar would be overtaken and supplied by a home product, the question would be very ' difierent; but such is not the case. Sugar-cane is a troi)ical plant, and; its cultivation in the United States is confined to a small portion of, Louisiana, Florida, and Texas, and where grown it is subject to the haz- ards of frosts and floods, so that a maximum crop is not produced oftener' than every other year, as will be seen from the following figures, which show the quantities of sugar and molasses produced for the years named: Years. Sugar. Molasses. 1859-'60 Hogaheadg. 230, 982 136, 878 228, 451 178, 872 233, 908 GaJlong. 14, 963, 996 1877 '78 18, 983, 040 1878-'79 17, 624, 539 1879-80 16, 573, 273 1880-'81 20, 340, 038 The quantity of sugar imported during the fiscal year 1861 was 511,000,000 pounds, while the quantity imported during the fiscal year 1882 was 1,900,000,000 pounds. It is thus seen that while the home product has not increased in twenty-one years, the importations have increased almost fourfold. I apprehend if sugar were not produced in this country Congress would not hesitate to remove the duty from imported sugar as the best means of reducing taxation. The present law gives to the sugar planters of this countiy, indirectly, about $1,000,000 or 85,000,000 per annum. My proposition would be to give them this amount directly and let the whole people have the benefit of the reduction of taxation of, say, ^$49^0,00,000, winch would in thiswayjie effected. REPORT OP THE SECRETARY OF THE TREASURY. 83 The principle of payiiij"^ a bounty for the en eoura foment and develop- ment of American industry is not new; it was adopted in the ca-vse of our fisheries as early as 1813, and was continued for more than fifty years. Millions of dollars have been paid out durinf;- this period to American fishermen for fish caujjht and exported, and we are still driv- ing to this industry the bonus of allowing them to withdraw salt free of duty and of requiring from them no tonnage dues. As a matter of principle, a bounty to our sugar interests would, in my opinion, be no more objectionable than similar encouragement to our fisheries. These reductions, if made, would amount to $77,531,888. Detailed information is subjoined of the amount of internal revenue collected during the past year, and for the first four months of the pres- ent fiscal year; of the sources whence that revenue was derived ; of the States and districts in which the collections were made daring the past year, and as to the cost of collection, &c. COMPARATIVE RECEIPTS FOR LAST TWO FISCAL YEARS. The receipts from the several objects of internal-revenue taxation during the last two fiscal years have been as follows : Sources of revenue. Receipts for 1«81. Receipts for 1882. lucreaee. Decrease. BPIKIT8. Spirits distilled from fruit Spirit*" distilled from grain, molasses, &c Rectifiers Retail liquor dealers Wholesale liquor dealers Miscellaneous Total of spirits TOBACCO. Cigars CiRarettes Snuff Tobacco, chewing and smoking Dealers in leaf tobacco Dealers in manufactured tobacco Manufacturers of tobacco aud cigars. .. Peddlers of tobacco Miscellaneous Total of tobacco FERMENTED LIQUORS. Ale, beer, lager beer, and porter Brewers' sp<>cial tax Dealers in malt liquors Total of fermented liquors HANKS AND BANKERS. Bank deposits Rank ("ipital Bank linulation Total of banks and bankers MISCELLANEOUS. Bank checks Friction matches , Patent medicines, perfumery, cosmetics, &«•' r P<'naltie» : Collections not otherwise provided for.. Total of miscellaneous Aggregate receipts $1, 531, 075 83 $1, 095, 164 60 CO, BS'i, 0;')1 73 170, 145 09 4, 3l.'2, 298 21 418, 813 68 28, 589 44 63, 683, 592 37 184, 483 67 4, 455, 355 55 439, 018 86 15, 793 13 $3, 000, 540 64 14,337 68 133, 057 34 20, 205 18 $435, 911 23 12, 796 31 C7, 153, 974 69, 873, 408 18 2, 719, 433 30 16, 095, 992, 689, 22, 833, 76, 1, 976, 151, 20, 13, 42, 854, 991 31 13, 237, 700 63 ]9.">, 3(18 52 207, 232 06 13,700,241 21 18, 245, 852 37 972, 570 10 778, 650 87 25,0.33,741 97 76, 3(19 15 2,094,530 21 1,52,622 14 22, 875 22 14, 830 88 47, 391, 088 91 15, 680, 678 1)4 195, 8L'4 31 277, 417 57 16, 153, 920 42 2, 150, 127 50 89, 467 84 2, 200, 454 37 118, 464 66 1, 179 57 1, 785 21 4, 5:}6, 997 60 3, 442, 977 91 515 79 10, 185 51 2, 453, 679 21 20, 411 12 687 61 3,'382'oi 2, 946, 906 64 811,0(lti 35 4, 295 08 4, 096, 102 45 1, 153, 1)70 25 4, 285 77 1,149,195 81 342, 003 90 9 31 3, 762, 208 07 | 5, 253, 458 47 I 1, 491, 250 40 2,253,411 20 3, 278, 580 62 1,843,263 90 231,(178 21 152, 162 90 2,318,4.55 14 3, 272, 258 00 1, 978, 395 .56 199, 830 04 81,5.59 00 65, 043 94 135, 131 66 7, 850, 497 74 I 92, 000 91 146, 523, 273 72 i 11, 293, 361 42 31,248 17 70, 603 90 84 PAPERS ACCOMPANYING THE The quantities of distilled spirits, fermented liquors, manufactured tobacco, snuff, cigars, and cigarettes on which tax was paid during the same periods were as follows: Products taxed. Fiscal years ended Jnne 30 — 1881. 1882. Increase. Decrease. Number of gallons of spirits distilled from fruit Number of gallons of spirits distilled fi'om grain, molasses, and other mate- rials Number of cigars Number of cigarettes ,..., Num ber ot pounds of snuff Number of ])oun. Stivers Jason M. Joliuson Ralph P. Lathrop Thomas Stevenson James C. P. Kincaid. ........ John B. Strong , James Chivei ton (acting).... Benjamin De Voe Burt Van Horn , Henry S. Pierce , Frederick Buell , Elihu A. AVhite Isaac J. Young .. George B. Everitt John J. Mott Thomas N. Cooper Amor Smith, ir William H. Taft Robert WilHama, jr Robert P. Kennedy James Piirsell George P. Dunham Charles C. Walcutt Clark Waggoner Marcus Boggs Jewett Palmer Worthy S. Strea;tor John C. Cart Wright James Ashworth William J. Pollock Joseph T. Valentine Thomas A . "Wiley Andrew J. Kaullman Edward H. Chase Charles J. Bruner Edward Scull Charles !M. Lynch James C. Brown Thomas W. Davis Frank P. Case John M. SuUivan Elisha n. Rhodes EUery M. Braytou James M. Melton William M. Woodcock Robert F. Patterson William H. Sinclair Benjamin C. Ludlow Tlioodore Hitehcox (acting) . William Umbdenstock O vando J. Hollister $918,899 19 85,259 83 2, 662, 009 47 160, 228 81 1,601,844 13 yya, 9i9 13 401, .'•.95 81 1, 362, 945 87 273, 718 46 164, 576 96 201,949 76 125,071 40 403,420 54 94, 008 90 6, 186, 922 72 65, 405 90 501, 8,33 39 15.4.54 84 13?, 281 C2 634, 589 47 68, 001 31 1, 108, 191 15 49, 103 93 236, 429 79 113,512 25 305, 040 48 4.")9, 988 40 4, 686, 604 72 55, 903 38 2, 984, 084 80 4,206,252 54 6, 762, 211 18 180,625 31 627, 261 92 620, 596 47 346, 397 30 333,264 94 158, 399 55 311,457 50 386, 550 60 882, 940 24 251, 600 89 1, 403, 396 85 62, 163 24 1, 022, 309 00 1, 274, 767 96 466, 823 71 41, 350 61 8,611,983 49 3,316,270 35 1, 621, 593 77 475,913 53 195, 905 86 104, 369 47 7U0, 260 02 1, 021, 133 71 1,216,251 21 201,528 11 894, 059 79 88, 079 82 1, 702, 832 12 1,308,486 21 689, 758 24 1, 337, 955 89 112, 764 12 423, 128 51 242, 351 75 258. 917 37 144, 726 27 101, 605 53 1, 063. 295 49 622, 130 29 767. 154 44 2J9, 2."8 48 119, 099 79 118, 312 99 777, 590 72 101, 824 29 87, 434 96 84, 372 68 11,552 43 75, 072 86 48, 523 08 EEPOET OF THE SECRETARY OF THE TREASURY. 87 Collection districts. Names of collectors. Aggregate col- lections. «56,444 58 1,010, 101 04 Oti.s H. Kussill 2, 144, 88e 37 Fourth Vii'Kiuia 1, 006, 673 36 Fifth Virginia 1,740,3-4 41 234,273 12 Sixth Viricinia Beverly B. Botts "Washington 40, 202 57 First West Virginia , Isaac H. Duval m... ........'........ 366, 323 15 Second West Virginia 135, 953 41 First Wisconsin 2, 560, 6^8 30 198, 570 39 Second Wisconsin..... .„ ........ Henry Ilamden — ... Third Wisconsin 15, 065 01 Do Howard M. Kutchin ...^... Hiram E.KoUpv 243, 238 52 Sixth Wisconsin 87, 524 77 Do 87, 428 23 20,385 65 Total from collectors 13«, 954, 165 02- Cash receipts from sale of adhesive stamps. 7, 569, 108 70 Af^gregate receipts ... ...... ........ 146 523, 273 72 ACCOUNTABILITY FOR THE PUBLIC FUNDS. / The entire amount thus collected was promptly covered into the Treasury without loss. Dnriug the past six fiscal years the sum of $748,834,071.02 has been collected from internal-revenue taxation and paid into the Treasury without any loss by defalcation. COST OF COLLECTION. The cost of collection for the past fiscal year, distributed among the different items of approx)riation, was apxn'oximately as follows : For salaries and expenses of collectors, including pay of deputy col- lectors, clerks, «fcc $1, 9d0, 790 88 For salaries and expenses of revemio agents, finrveyors of distilleries, gangers, storekeepers, and miscellaneous expenses * 2, 2oG, 318 37 For stamps, paper, and dies 565,026 28 For expenses of detecting and punishi ng violations of internal-revenue la^vs 55, 015 95 For salaries of officers, clerks, and employes in the office of Coinmia- eioner of Internal Revenue 2.'>3, 330 00 Total 5,107,481 48 The total expenses (including the ex[)euses of this ofiSce) will be found, on final adjustment, to be less tluin 3.^ per cent, on the amount collected. The expt'uses of collection for the last six years hnve been about $27,087,300, or about 3.G percent on the amount collected. Thia sum has been disbursed without loss to the government. • •«#*•• GENERAL CONDITION OF THE SERVICE. The condition of the service is all that can be desired. The reports of the inspecting officers show that an admirable eftprit de corjp» actuates every officer in the performance of his duties. I desire to extend my thanks to the officers of internal revenue throughout the country for their zeal and energy in bringing about this result. The thanks of this ofiicc are also due to the United States mar- shals for their hearty co-operation with the iuterual-revenue officers in enforcing the laws. * This item is liable to be slightly increased by the paynuiit of a few accounts not yet adjusted. 88 PAPERS ACCOMPANYING THE DISTILLED SPIRITS IN BOND. Some months ago many of the leading sweet-mash distillers made an arrangement for a reduction of tlie producing capacity of their distil- leries, and for limiting the manufacture of their line of distilled spirits to the demands of the trade. They have recently been followed by a large number of sour-mash distillers with a somewhat similar arrange- ment. The effect will be to cut down the production of all classes of distilled spirits to the demands of the trade. On the30thdayofJune,1882,thespiritsremaimngin warehouses reached the highest point, namely, 89,962,645 gallons. Since that time there has been a gradual reduction in the amount remaining in warehouses, and on the 1st day of November, 1882, the amount was 84,628,331 gallons. This largo stock mainly consists of fine grades of whisky, the tax upon .which will fall due from month to month until the last withdrawal, which must be made November 6, 1885. If the future demand for this class of goods is to be judged of by the withdrawals of similar goods tax-paid during the past few years, the stock now on hand is equal to six years' consumption. To postpone the payment of the tax on this stock until its withdrawal is required by the demands of trade, a movement has been set on foot for its exportation and reimportation, and storage in customs bonded warehouses. This is entirely practicable under exisiting laws, and it becomes a question whether it would not-be better to afford by legislation the relief sought to be obtained by this indirect means. An extension of the bonded period for a reasonable time need notimpair the security of the govern- ment for its taxes, and would in no manner tend to reduce the income of the government from this source of revenue which has up to this period resulted from the natural laws of trade and the demand for dis- tilled spirits for consumption. By this means the expenses of transpor- tation both ways and custom-house charges abroad would be saved. THE ENFORCEMENT OF THE LAWS. It affords me great pleasure to report that the supremacy of the laws of the United States for the collection of its internal revenues has been established in all parts of the country. Frauds in the manufacture and sale of whisky and tobacco in the districts where they have hitherto most prevailed have become the exception rather than the rule. There is no longer organized resistance to the authority of the government, the people render obedience to the laws, and the taxes are collected without unnecessary friction and with but little litigation. To maintain this favorable condition of things and to prevent the recurrence of frauds it will be necessary to continue the system of careful policing whicb has brought about this result. I have to record with extreme regret, as signalizing the closing hours of the long struggle maintained against the enforcement of the internal- revenue laws, the murder of Deputy Collector James M. Davis, near McMinnville, Tenn., in March last. Captain Davis was one of the bravest and most efficient officers engaged in the suppression of illicit distilling. Whilst on his way from court he was waylaid on the public highway in broad daylight by ten or more assassins, concealed behind an ambush of logs and bushes specially constructed for the purpose, and was deliberately murdered under circumstances of peculiar atrocity whilst bravely defending himself to the last. The place where this crime was committed is in the midst of a well-settled country. There is circum- stantial evidence that the assassination was plotted in a place of public REPORT OF THE SECRETARY OF THE TREASURY. 89 resort not far from the seeue of the murder. Citizens rode by whilst Davis's body was still warm and before his slayers were fairly out of sight, yet, though liberal rewards have been offered for the detection and arrest of the criminals, no evidence has yet been obtained upon which an arrest could be based. 3 PENSIONS TO WIDOWS AND ORPHANS OF OFFICERS KILLED. The successful close of the struggle to establish and maintain the internal-revenue laws of the United States is in my opinion a fitting occasion to renew the recommendation in my last report for the grant- ing of pensions to persons disabled while engaged in enforcing said laws, and to the widows and orphans of officers killed in the discharge of their duty. The service in which these officers were engaged was par- ticularly hazardous. No alternative being left except to meet force with force, they were armed by the government with breech-loading carbines to protect themselves against the assaults of those who resisted its au- thority. In this struggle thirty-one officers and employes have been killed and sixty-four wounded. I respectfully submit that these wounded officers and the widows and orphans of those who have been slain have a just claim upon the bounty of the government, and I earnestly recom- mend early legislation upon the subject. TERM OF OFFICE OF COLLECTORS. I have the honor to again recommend that a law be passed fixing the term of office for collectors of internal revenue at four years, and I fur- ther recommend that said law shall provide that collectors of internal revenue shall not be subject to removal except for such causes as are designated in said law. I am satisfied that the incorporation into the civil service of the j)rinciple of a fixed term and removal for cause only, would result in a marked improvement in the public service, and would meet what seems to me a just and growing demand of public opinion. FIXED SALARIES FOR UNITED STATES MARSHALS AND DISTRICT AT- TORNEYS. 1 respectfully call attention to the remarks under this head in my last annual report, and again recommend legislation in accordance with the recommendation therein contained. REDEMPTION OF STAMPS. I renew the recommendation made in my last two reports that that portion of section 17 of the act of March 1, 1879, which prohibits the redemption of stamps unless the same are presented within three years after their purchase from the government or a government agent for the sale of stamps, be repealed. LEGISLATION CONCERNING MANUFACTURE OF VINEGAR. I also renew the recommendation made in previous reports for the passage of a law prohibiting the manufacture of vinegar by the alco- 90 TAPERS ACCOMPANYING THE holic vaporiziiif; process provided for in section 5 of tl»e act of March 1, 187!), or sul)iuctin<>: vincffar factories nsiii^ the vaporiziiifj: jn-ocess to the supervision of a ^overninent storekeei)er, and to a certain extent to other safe},'uards, as now required in the case of distillc^rs of sj»irits. Further exi)erieiico only conhrnis the opinion which I have Itcretofore expressed of the necessity for the indicated lefjislation for tlie protec- tion of the revenue from dangerous frauds. Shoukl it be deemed best to continue tlie present system, under suitable safeguards, it might be well to make such additional provisions as will permit the manufact- urer to fully avail himself of the right to condense alcoholic vapor with- out the waste of material incident to the present ])rocess. The compeu- Bation of store-keeper, if provided, should be reimbursed to the govern- meut by the manufacturer. EXAMINATION OF GLUCOSE AND METHYLATED SPIRITS. At the request of the Committee of Ways and Means of the House of Eepreseutatives I am having an examination made of a number of samples of glucose, both dry and sirup, for the purpose of testing its saccharine qualities and liealthfulness. Tests are also being made of methylated spirits to determine whether alcohol mixed with wood naphtha can be restored to its original purity. These experiments are being made by the Academy of Sciences, and re- ports are now expected, when they will be transmitted for the informa- tion of the committee. MISCELLANEOUS EXPENSES. The act of Congress approved March 3, 1881, making provision for the legislative, executive, and judicial expenses for the year ending June 30, 1882, required the Commissioner of Internal Eevenue to make a de- tailed statement of all miscellaneous expenditures in the Bureau of In- ternal Eevenue, for which appropriation was made in that act. In ac- cordance with the aforesaid requirement, I submit the followiug detailed statement of miscellaneous expenses incurred: Express on public money to depositories $7,040 51 Stationery for internal-revenue officers 17, 980 10 Internal-Revenue Record for internal-revenue officers 2,409 80 Telegrapliing 1,139 77 Compensation of United States attorneys in internal-revenue cases, under sections 827 and 838, Revised Statutes 4,555 60 Locks for distilleries 3, 922 50 Hydrometers for use in gauging spirits 5, 73G 20 Gaugiiig-rods for standard-test gauging, »S:c 157 45 Alcohol for scientitic tests - 82 19 Expenses of seizure and sales by collectors 889 04 Coin scales for use in collectors' offices 100 40 Traveling expenses of clerks under special orders of tbe department 1, 103 93 Kent of offices leased by the Secretary of the Treasury in New York City for the collector of the second district 4,999 96 Total 50,177 45 EXPENDITURES FOR THE DISCOVERY' AND PUNISHMENT OP FRAUD. In accordance with the provisions of the act making the appropria- tion, the followiug detailed statement of expenditures from the appro- priation for detecting and bringing to trial and punishment persons guilty of violating the internal-revenue laws is submitted. REPORT OF THE SECRETARY OF THE TREASURY. 91 Amount expended tlironsh collectors of internal revenue in the em- ])loymeiJt of persons for tlie detection of fruuii Wilson, G. W Wheehr, J. C Wagner, J , $7,724 60 609 63 1, 208 88 108 50 3.12 20 1, 475 22 3h9 63 1, 121 50 104 00 1,186 94 800 95 1, 645 80 5 50 2, 318 44 1,441 54 4, 175 48 1 50 683 75 2, 122 CI 178 20 I, rJ4 98 721 '>5 56 00 237 25 Total disbursed by revenue agents . i 30, U54 65 §10,471 78 30. th-.4 65 5, ItlJ '27 •SOH •if) n.r.Hi (10 Aniomit expended by collectors Anionnt exi»eiidf'd liy reveutie ageiit.s.. Rewards luidcr circular No. iK) Kewnrd.s under circular of March 10, 1." Wiscullaucoiis Total |a!i,015 'Jo 92 ' PAPERS ACCOMPANYING THE The accounts for expenditures under this appropriation are rendered monthly, with an itemized statement, and in all cases supported by sub- vouchers duly sworn to. These accounts pass through all the account- ing offices of the Treasury Department, and are filed in the Kegister's Oifice. ESTIMATED EXPENSES FOR NEXT FISCAL YEAR. I estimate the expenses of the Internal-Eevenue Service for the fiscal year ending June 30, 1884, as follows. For salaries aud expenses of collectors $2,100,000 00 For salaries aud expenses of thirty-five revenue agents, for surveyors, for fees and expenses of gaugers, for salaries of storekeepers, and for miscellaneous expenses 2, 300, 000 00 For dies, paper, and stamps 500, 000 00 For detecting and bringing to trial and punishment persons guilty of violating the internal-revenue laws, including payment for informa- tion and detection 75,000 00 For salaries of officers, clerks, and employes in the office of the Com- missioner of Internal Revenue 299, 190 00 Total 5,274,190 00 ******* TOBACCO. The total amount of collections from tobacco for the fiscal vear ended June 30, 1882, was $47,391,988.91. This amount includes the collections of internal-revenue taxes imposed upon imported manufactured tobacco, snuff, and cigars (in addition to customs duties) ; the taxes imposed on domestic manufactured tobacco, snuff, aud cigars; the special taxes paid by manufacturers of tobacco, snuff, and cigars ; the special taxes paid by dealers in leaf and dealers in manufactured tobacco ; special taxes paid by peddlers of manufactured tobacco ; and it also includes the receipt of money for export stamps sold to exporters of tobacco. The collections from the several sources above-named for the last fis- cal year exceed those of the fiscal year immediately preceding by the sum of $4,536,997.60. RECEIPTS FROM TOBACCO AND SNUFF. Manufactured tobacco, at 16 cents per pound |i25,032, 372 19 Manufactured tobacco, at 24 cents per pound 1,369 78 Snuff, at 16 cents per pound 778,650 87 Total for year ended June 30, 1882 25,812,392 84 Total for year ended June 30, 1881 23,522,470 63 Increase in collections on tobacco and snuff 2, 289, 922 21 Of this increase $2,200,454.37 was on chewing and smoking tobacco, and $89,467.84 on snuff. RECEIPTS FROM CIGARS AND CIGARETTES. Cigars taxed at $6 per thousand $18,245,852 37 Cigarettes taxed at §1.75 per thousand 969,580 30 Cigarettes taxed at $6 per thousand 2,939 80 Total collections for year ended June 30, 1832 19, 218, 422 47 Total collections for year ended June 30, 1881 17, 038,706 00 Increase in collections from cigars and cigarettes 2, 129, 716 47 REPORT OF THE SECRETARY OF THE TREASURY. 93 OTHER COLLECTIONS. Receipts from export stamps sold year emled June 30, 1882 §6, 554 40 Receipts from export stamps sold year ended Juno 30, 1881 6, 852 40 Decrease in sale of export stamps 298 00 Dealers in manufactured tobacco, year ended June 30, 1832 32,094,536 21 Dealers in manufactured tobacco, year ended Juno 30, 1881 1, 976, 071 55 Increase in collections from dealers in manufactured tobacco 118, 464 65 Special taxes, manufiicturers of tobacco and cigars in 1882 $152,622 14 Special taxes, manufacturers of tobacco and cigars in 1881 151,442 57 Increase special taxes, manufacturers of tobacco and cigars 1, 179 57 Special taxes, peddlers of tobacco, year ended June 30, 1882 $22, 875 22 Special taxes, peddlers of tobacco, year ended June 30, 1881 26,258 13 Decrease in collections from peddlers of tobacco 3, 382 91 Dealers in leaf tobacco, year ended June 30, 1882 $^4,585 63 Dealers in leaf tobacco, year ended June 30, 1881 83, 190 03 Increase in collections from dealers in leaf tobacco 1.395 60 COjNIPARISON WITH PRECEDING YEAR. The above statement shows that the collections made during the fiscal year ended June 30, 1882, were in excess of those made during- the fiscal year ended June 30, 1881, with two exceptions, to wit, export stamps, $298.00, and peddlers, $3,382.91, aggregating $3,680.91. The increases were: From specific taxes : Tobacco and snuff $2,289,922 21 Cigars and cigarettes 2, 129,716 47 From special taxes : Dealers in manufactured tobacco 118,464 66 Manufacturers of tobacco and cigars 1, 179 57 Dealers in leaf tobacco 1, 395 60 Total increase of collections $4,540,678 51 Deduct decrease of collections 3, 680 91 Net increase of collections 4,536,997 60 PRODUCTION OF MANUFACTURED TOBACCO, CIGARS, ETC. The production of tobacco, snufif and cigars for the fiscal year ended June 30, 1882, as shown from the several quantities removed for con- sumption on payment of tax, together with the quantities removed in bond for export, is as follows: Ponnds. Tobacco taxed at 16 cents per pound 156,452,326 Tobacco taxed at 24 cents per pound 5, 707 Snull taxed at 16 cents per pound 4,866,568 Total quantity removed for consumption 161, 324, 601 Tobacco and snuff removed for exportation 10, 829,215 Total apparent production 172, 153,816 Total apparent product, year ended June 30, 1881 157,699,876 Increase of production 14, 453, 940 94 PAPERS ACCOMPANYING THE PRODUCTION OF CIGARS AND CIGARETTES. Jsnmoer. Cigars, cheroots, &c. taxed at $i) per thousand 3, 040, l>7r,, ;W5 CigarotttiH taxod at $1.75 ])cr thoiiHand 054, 045, «>i6 CigarcttcH taxc^d at $(> per tliouHaiid A'M, 1500 CigarH removed in bond for export '.i, 451,995 Cigarotlea removed in bond for export CA, 001,500 Total product for fiscal year, 1882 3,<1(;2,973, 076 Total product for fiscal year, 1881 3, '21)0, 404, 915 Total increase of production 372, 5G8, 161 Of this increase 321,897,758 were cigars and 50,670,403 cigarettes. TOBACCO AND SNUFF SOLD, EXPORTED, AND ON HAND. Ponnds. Tobacco and snuff sold during 1881 162,053 056i Tobacco and snuff exported during 1881 7,825, 646i Tobacco and snuff" on hand January 1, 1882 1^,037,257 Total 188,515,960 Tobacco and snuff manufactured during 1881 172,467,238^ Accounted for in excess of manufacture 16, 048, 721 J MATERIALS USED. The gross amount of materials used in the manufacture of tobacco and snuff and the loss in course of manufacture, for the calendar year 1881, has been as follows : Pounds. Materials used in manufacturing tobacco and snuff 221,002, 060| Tobacco and snuff manufactured and in process out of this material 180, 107, 000^ Diff'erenceor apparent loss on materials used 40, 895,060J This difference, itemized, is as follows : Pounds. Scraps taken out of the leaf tobacco used 3, 585, .570 Stems taken out of the leaf tobacco used 32, 192,354 Loss from dirt, dust, shrinkage, &c 5, 117, 136i Total of scraps and stems taken out and loss from dirt, shrinkage, &c . 40, 895, 060^ IMPORTED CIGARS. The cigars imported during the fiscal year ended June 30, 1882, as given by the Bureau of Statistics, were as follows : Pounds. Aggregate in quantity 802, 872 Of this quantity there were exported 71, 295 Leaving to bo withdrawn for consumption 731, 577 Allowing 13^ pounds to the thousand as the weight of imported cigars, the numl)er woukl be 54, 190, 889 Number withdrawn, 1881 40,092,667 Increase in number of cigars for the fiscal year, 1882 14, 098, 222 EXPORTATION OF MANUFACTURED TOBACCO AND SNUFF IN BOND. The quantities of tobacco removed and unaccounted for, July 1, 1881, were as follows : Pounds. Pounda. Bonds in the bands of United States district attorneys 17, 094 Tobacco, at 24 cents, removed under exportation bonds 33, 974 Tobacco, at 24 cents, removed under transportation bonds. 126, 312^ Tobacco, at 16 cents, removed under exportation bonds.. . 830, 57(4 Tobacco, at 16 cents, removed under transportation bonds. 102, 515i 1,110,472J REPORT OF THE SECRETARY OF THE TREASURY. 95 The quantity of tobacco removed during the year ended June 30, 1882, TvaH: Tobacco and snufl', at IG ccnta per pound tax in, .--ii), 215;^*^ 10,829,215-,*^ ll,'J39,G8tfi^ The quantities of tobacco exported and accounted for during the year were: Pounds. Pounds. Tobacco, at 24 cents per pound tax lAi],7'.)0i Tobacco and snuff, at 16 ceuts per pound tax 10, 590, GJO v^^ Tobacpo, at 24 ceuts per i)Ound tax (tax paid on deficien- cies) 240 Tobacco and snuff, at 16 cents per pound tax (tax paid on deficiencies) - — 1,057 10,744,677}^ The quantities of tobacco remaining unaccounted for June 30, 1882, were: Pounds. Founds. Bonds in the hands of United States district attorneys 17, 094 Tobacco, at 24 cents, removed under exportation bonds... 3,481 Tobacco, at 24 cents, removed under transportation bonds." 9, 835 Tobacco and snuff, at 16 ceuts, removed under exportation bonds 1,050, 127^ Tobacco and snuff, at 16 ceuts, removed under transporta- tion bonds 84,473 1 , 195, OlOi 11.939,688i»ff The quantity of tobacco removed from manufactories for exportation during the fiscal year ended June 30, 1882, is 143,083 pounds greater than that removed during the fiscal year ended June 30, 1881. The num- ber of cigars is 725,020 greater; and of cigarettes is 20,338,440 greater. The number of cigarettes exported in 1882 exceeds the number exported in 1881 by 70 per cent. In this connection I call attention to the following paragraph which appeared in my reports for 1880 and 1881, and renew the recommenda- tion contained therein: It, however, appears that in striking out a portion of section 3385 Revised Statutes, and substituting for the portion stricken out the amendatory provisions of the new law, the language of that part of section 3385 relied upon as autliorizing the exporta- tion of tobacco, snuff, and cigars by railroad cars and otlu-r land (u)nveyances was, through inadvertence, not restored. I see no good reasons why the exportation of these articles under section 3385, as amended, should bo confined to vessels, and I would therefore recommend that as early as possible in the next session of Congress the law bo amended so as to clearly provide for the exportation of tobacco, snuff, and cigars by railroad or other land conveyances. EXPORTATION OF CIGARS AND CIGARETTES IN BOND. The number of cigars and cigarettes removed and unaccounted for to July 1, 1881, was: Number. Number. Cigars, at |16 per M tax 81,450 Cigarettes, at $1.75 per M tax 4, 153,000 4,234,450 The number of cigars and cigarettes removed during the year ended June 30, 1882, was: Cigars, at $6 ]>cr M tax 3,451.905 Cigarettes, at §1.75 per M tax 64,001,500 07,453,405 71,6e7,945 96 PAPERS ACCOMPANYING THE The number of cigars and cigarettes exported and accounted for during the year ended Juno 30, 168-2, was: Number. Number. Cigars, at $(3 porM tax 3,^00.895 Cigarettes, at $1.75 per M tax 63,2'JS,000 60,583,895 The number of cigars and cigarettes remaining unaccounted for June 30, 1882, was : Cigars, at $G per M 242,n.')0 Cigarettes, at $1.75 per M 4,856,500 5,099,050 71,687,945 The following: statement shows the quantities of tobacco (including snuff) removed for export in the last ten years, and the percentage of production : Tear. Pounds of to- bacco ex- ported. Percent- age of produc- tion. 1873 1874 1875 187C 1877 1878 1879 1880 1881 1882 110,045 800, 927 179, 316 434, 485 335, 046 581, 744 034, 051 808, 409 686, 132 829, 215 8. 59-t- 9.114- 7.13-f 7.87+ 8.88+ 8.89+ 8.624- 6.71+ 6.61+ 6.29+ DATE OF BONDS REMAINING UNACCOUNTED FOR JUNE 30, 1882. The years in which the bonds were given for the exportation of the tobacco, snuff, cigars, and cigarettes remaining unaccounted for by the evidence required by law for their cancellation on June 30, 1882, are as follows, viz: Tear. Tobacco. Cigars. Cigarettes. 1S72 ^ Pounds. 17, 094 Number. Numbtr. 1873 , 1874 - 1875 448 1, 015 361 7,704 49, 472 62, 965 117,979 937, 972J 1876 1877 1878 .. 1879 32, 000 1880 ; 10,500 10, 000 222, 050 6,000 1881 325, 000 1882 4, 493, 500 Total 1, 195, OlOi 242, 550 4, 856, 50« REVIEW OF TAXATION OF TOBACCO. In June, 1872, a uuiform tax of 20 cents a pound was imposed on all classes of manufactured tobacco except snufl', which was taxed at the rate of 32 cents a pound. In 187o the uuiform tax was increased from 20 to 24 cents a pound ; and in March, 1S79, the tax On all manufact- ured tobacco, including snuff, was reduced to IG cents a pound. In 1875 the tax on cigars was increased from $5 per thou.sand to 80, and the tax on cigarettes from $1.25 per thousand to $1.73. REPORT OP THE SECRETARY OF THE TREASURY. 97 The following statement shows the collections from special and spe- cific taxes on tobacco of all descriptions, including' suutf, cigars, and cigarettes : Anaount collected. 1873 $34,386,303 09 1874 33,242,875 62 1875 37,303,461 88 1876 3U, 795, 339 91 1877 41,UH5,546 92 1878 40,01)1,754 67 1879 40,135,002 65 1880 38,870,140 08 1881 42,854,991 31 1882 47,391,988 91 Aggregate collections 395,178,405 04 Average annual collections 39,517,840 50 Excess of collections in 1882 over average 7,874, 148 41 The collections from tobacco of all descriptions, including snuff, and number of pounds thereof, have been as follows : Tears. Collections. 1873. 1874. 1875. 1876. 1877. 1878. 1879. 3880. 1881. 1882. Total $23, 21, 25, 26, 28, 26, 25, 21, 28, 25, 858 22 9.'.5 5!) 759 51 780 20 767 90 872 30 010 25 763 74 470 63 392 84 Pounds. 114, 789, 208 107, 502, 548 119, 435, 874 107, 003, 516 112,722,055 10.5, 500, 736 116,975,223 132, 309, 527 147, 013, 405 161,324,601 248, 571, 631 18 ! 1, 224, 630, 693 Averafre annnal collections $24, 857, 163 12 Average annual quantity tobacco and snuff tax>paid pountl.t... 122, 463, 670 The collections from cigars, cheroots, and cigarettes, and number of cigars and cigarettes, have been as follows : Tears. Collections. Kombor. ]fi73 $8, 040, 391 48 9, :).•):), 5'.r.' 21 10, 2(1.''., 8-J7 .'■..". 11, 10.-., 272 45 11,001.278 1.-. 11,719,220 .la 12, 532,4. =i2 72 14, 922. Oi'K 88 17, 08.><, 700 00 19, 218, 422 47 1, 807, 034, 646 1, 886, 607, 498 1,967,9.50,062 1,900,227,982 1,949,078,513 2, 070, 2.53, 337 2, 2.57, 523, .581 2,776,511,615 3,2.-.0,M6,770 3,59.1,419,581 1874 1875 1876 1877 1878 1879 1880 1881 1882 Total 126, 127, 258 31 23, 466, 723, 185 A Tf>ra jro annnal collections |12, 612, 725. 83 A vorago number cigars tax-paid annually 2, 346, 672, 3J0 Tlie large increase since ISTSover the general average of tlio last ten yrars in the quantity of manufaetured tobacco and nuinbors of cigar.s and cigarettes on which taxes have been collected is, in my ojiinion, to be attributed to two causes : First. The improved condition of llic times, whereby all are enabled to purchase tobacco or cigars who desire to do so. 7 Ab 98 PAPERS ACCOMPANYING THE Second. The supervision exercised over the entire industry and the ncreased vij;iUiuce of the various ollicers of the service in detecting and reporting- all cases of fraud, and holding every man to a strict compli- ance with the law. The amount collected during the last ten years inpayment for export stam])s used on tobacco, snuft; and cigars, was $08,010.30, being an av- erage annual payment of $0,801.03. The aggregate amount paid for special-tax stamps by manufacturers and dealers in tobacco during the last ten years was $20,410,005.25, be- ing an average annual payment of $2,041,000,52. LEAF TOBACCO. • The annexed tables show that during the calendar year ISSl the number of pounds of leaf tobacco consumed in the manufacture of tobacco, snuff, cigars, clieroots, and cigarettes was as follows: Pounds. Manufactured, into tobacco and snuff 170,079,013 Made into cigars, clieroots, and cigarettes 66, 425, 279 Totalleaf manufactured in 1881 236,504,292 Deduct imported leaf used 11, 102,893 DomesticleafusedinlBBl 225,401,399 ******* DISTILLED SPIRITS AND MALT LIQUORS. The quantity of spirits (105,853,101 gallons) produced and deposited in distillery warehouses during the fiscal year ended June 30, 1882, was less than the production of the previous year (117,728,150 gallons) by 11,874,980 gallons. The decrease in production for the fiscal year 1882 as compared with the production for the fiscal year 1881 is distributed among the differ- ent varieties known to tbe trade as follows : Gallona. Decrease in production of — Bourbon whisky 4,056,948 Eye whisky 706,832 Alcohol 7,787,293 Rum 414,422 High wines 3,401,202 Total. 16,366,702 Gallons. Increase in production of— Gin 19,538 Pure neutral or cologne spirits 4,314,685 Miscellaneous 157,490 4,491,713 Net decrease 11,874,989 QUANTITY OF SPIRITS RECTIFIED. The following statement shows the number of proof-gallons of si>irits rectified in the United States during the year ended April 30, 1882, by collection districts: Alabama 103, 466. 50 Arizona 25,680.50 First district, California . . 1, 912, 841. 29 Fourth district, California. 188, 841. 00 Colorado 119,051.56 First district, Connecticut. 33, 519. 28 Second district, Connecti- cut 153,254.09 Delaware 39,144.50 Second district, (Georgia.. , 323, 872. 00 Third district, Georgia . . . . 720, .536. 00 Idaho 8,204..^.0 First district, Illinois 4, 655, 6.')3. 67 Second district, Illinois ... 8, 221. 66 Fourth district, Illinois . . . 191, 553. 50 Fifth district, Illinois S-JS, 255. 00 Eighth district, Illinois ... 11, 707. 00 Thirteenth district, Illi- nois .-i9,091.00 First district, Indiana 16, 580. 50 REPORT OF THE SECRETARY OF THE TREASURY. 99 district, New Fourth district, Indiana . . 51, 878. 00 Sixth district, Indiana 17, 'M]^. 87 Seventh district, Indiana. . 38, 355. 50 Tenth district, Indiana.... 50, 821. .^)0 Second district, Iowa 5, 23'i. 00 Third district, Iowa fio, 144. 00 Fourth district, Iowa 44, 373. 50 Kansas 11,370.71 Second district, Kentucky . 86, 513. 00 Fifth district, Keutuckj' .. 1, l.'yi, 874. 04 Sixth district, Kentucky.. 4, 220, 072. 52 Seventh district, Ken- tuckv 9,291.00 Louisiana 1,090,968.31 Third district, Maryland.. 3, 870, 056. 17 Fourth district, Maryland. 9, 898. 50 Tliird district, Massachu- setts 1,766,238.11 Fifth district, Massachu- setts 29,333.00 Tenth district, Massachu- gg^^g 3 797_ 5Q First district", Michigan . . . 299^ 891. 00 Fourth district, Mic^iigau. 33,843.25 First district, Minnesota .. 10, 971. 77 Second district, Minnesota. 228, 253. 65 First district, Missouri 3, 622, 993. 74 Fourth district, Mi.ssouri .. 322. 50 Sixth district, Missouri ... 371,593.50 Montana 1,:}80.50 Nebraska 116,165.00 Nevada 7,121.50 New Hampshire 14,030.00 First district, New Jersey . 1, 908. 00 Third district. New Jersey . 31, 134. 42 Fifth district, New Jersey. 121, 266. 50 New Mexico First district, New York . . 1 , 200, 709. 75 Second district. New York. 6, 802, 236. 05 Third district. New York. . 702, 828. 34 Eleventh district, Now York 980.50 Fourteenth district. New York 444,322.90 Fifteenth district, New York 21,968.00 Twenty-first district. New York 51,828.19 Twenty-fourth district, New York 201,420.00 Twenty-sixth district, New York 9,986.00 The following statement sliows the mimber of proof-gallons of spirits rectified iu the United States during the year ended April 30, 1882, by States and Territories : Twenty-eighth New York Thirtieth district, York Fourth di.strict,North Caro- lina Sixth district, North Caro- liua First district, Ohio Third di.^trict, Ohio Fourth district, Oliio Seventh district, Ohio Tenth district, Ohio Eleventh district, Ohio Fifteenth district, Ohio... Eighteenth district, Ohio.. Oregon First district, Pennsyl- vania Eighth district, Pennsyl- vania Ninth district, Pennsyl- vania Twelfth district, Pennsyl- vania Fourteenth district, Penn- sylvania Nineteenth district, Penn- sylvania Twenty-second Pennsylvania Twenty-third Pennsylvania Rhode Island South Carolina Fifth district, Tennessee .. First district, Texas . Third district, Texas Fourth district, Texas .... Utah Second district, Virginia.. Third district, Virginia ... Sixth district, Virginia ... First district, West Vir- ginia First district, Wisconsin .. Second district, Wisconsin. Third district, Wisconsin.. Total 59,810,407.45 district, district, 452. 661. 45 071, 981. 00 29, 183. 00 38, 926. 50 10,541, 030. 08 48 815. 50 17 661. 98 41, 772. 97 345, 290. 02 26, 524. 50 18.60 466, 089. 50 64, 803. 00 7,478, 723.65 161 853.90 96 016. 00 119 549. 00 432. 48 10 405. 50 913, 002.25 27 679. 00 35 169. 00 20 500. 50 277, 117.00 208 162. 50 8 615. 00 270.50 29 718. 00 222 906. 50 367 711.50 94 935. 00 63 854. 00 1.24.5, 169. 73 36, 313. 00 31 206.50 Alabama 108,466.50 Arizona 25, OSO. .50 California 2, 10I,(;.S2.29 Colorado 119,051.56 Connecticut 191,773.37 Delaware 3'J, 144. .50 Georgia 444,408.00 Idaho 8,204. .50 Illinois 5,749,4S1.83 Indiana 175, 004. 37 Iowa 114,749.-50 Kansas 11,370.71 Kentucky 5, 468, 750. 56 Louisiana 1,090,968.31 Maryland 3,879,954.67 Massachusetts 1, 799, 372. 61 Michigan 333,734.25 Missouri 3,994,909.74 Minnesota 239,225.42 Montana .. 7,3*^0.50 Nebraska 116, 165. 00 Nevada 7,121.50 New Hauipshiro 14, 030. 00 Ni'w Jersey 154,368.92 New Mexico New York 10,560,922.18 North Carolina 68,109.50 Ohio 11, 487,203. 15 100 PAPERS ACCOMPANYING THE r)rof,'on c.i.po:?. no rcmisvlvania 8, 810, (itil. 7H ICliodo Island :{;'), Ki'.). 00 BouMi Carolina 20, WK). r,0 Toniiossoo 277,117.00 Texas 217,(M'S.OO lUah 20,718.00 Virginia 6(;.5, 553. 00 WoHt Vir;;inia 68,854.00 Wiacousin 1,312, 749. 23 Total 59,810,407.45 OPERATIONS AT DISTILLERY WAREHOUSES. The following table sliows the quantity of distilled spirits in taxable pallons, at 90 cents per gallon tax, placed in distillery warehouses dur- ing the fiscal year ended June 30, 1882, the quantity withdrawn there- :froni during the year, and the quantity remaining therein at the begin- ning and close of the year: Taxable gallons. 1. Quantity of distilled spirits actually remaining in warehouse Jvlv 1. 1881 .' ."... 04,648,111 2. Quantity of distilled spirits not actually i u warehouse claimed to have been lost by casually 204,075 3. Quantity of distilled spirits withdrawn for exportation, proofs of land- ing not received 15,045,619 4. Quantity of distilled spirits withdrawn for transfer to manufacturing warehouse, not yet received at warehouse 65,516 5. Quantity of distilled sjiirits produced from July 1, 1881, to June 30, 1882 10.5,853,161 Total 185,816,482 6. Distilled spirits withdrawn tax -paid (including deficiencies on export bonds and casualties disallowed) 70, 749, 880 7. Distilled spirits exported, proofs oif landing received 14,259,410 8. Distilled spirits allowed for loss by casualty 139, 377 9. Distilled spirits withdrawn for scientitic purposes aud for the use of the United States 14,048 10. Distilled spirits allowed for loss by leakage or evaiioration in ware- house 1,231,336 11. Distilled spirits allowed for loss by leakage in transportation for ex- port, &c 35,361 12. Distilled spirits withdrawn for transfer to and received at manufac- turing warehouse 242,574 13. Distilled spirits withdrawn for exportation, proofs of landing not received 8,838,193 14. Distilled spirits withdrawn for transfer to manufacturing warehouse, not yet received at warehouse 35, 9'J8 15. Distilled spirits not actually in warehouse, claimed to have been lost by casualty 307, 730 16. Distilled spirits actually remaining in warehouse June 30, 1882 89,962 645 Total 185,816,482 The quantity of spirits, 89;962,645 gallons, actually remaining in ware- house June 30, 1882, is the quantity as shown by the original gauge of each package. The quantity of spirits withdrawn from distillery warehouses for exportation during the year was 8,092,725 gallons. DISTILLED SPIRITS ALLOWED FOR LOSS BY LEAKAGE OR EVAPORA- TION IN WAREHOUSES. The quantity of spirits, 1,231.336 gallons, reported in the preceding table as lost by leakage or evaporation in warehouse is that portion of the actual leakage in warehouse from packages withdrawn during the year which has been allowed in accordance with the provisions of sec- tion 17 of the act of May 28, 1880. It is noted that in most cases the quantity allowed by the law has covered the entire loss, so that the REPORT OF THE SECRETARY OF THE TREASURY. 101 above quantity is believed to indicate ahnost the entire loss in ware- honse on the spirits withdrawn during the year, except in cases of cas- ualty, and may be safely used as a factor in computing probable losses on spirits in distillery warehouses. The leakage allowed during June, 1880, was 75,831 gallons, and the quantity allowed during the year ended June 30, 1881, was 811,400 gal- lons, making the total allowances to July 1, 1882, 2,118,030 gallons. In the consideration of a bill to amend the laws relating to the entry of distilled spirits in distillery warehouses and special bonded ware- houses, and the withdrawal of the same therefrom (H. K. 5050, Forty- seventh Congress, first session), the question arose as to whether the allowances for leakage authorized by section 17 of the act of May 28, 1880, were adequate or excessive. In order to assist in determining the question, a large number of gangers' reports of withdrawals of spirits from warehouse was exam- ined. The examination showed that under ordinary conditions the quantity lost was oftener less than the maximum allowance than more than the maximum allowance. The average losses in cold warehouses were found to be uniformly less than the maximum allowances. In heated warehouses, however, the average loss was sometimes found to be greater. Upon examination of gangers' reports, selected at random, covering spirits withdrawn from cold warehouses, it was found that the average actual loss as to 104 i)ackages withdrawn within sixty days after deposit in warehouse, i. e., during the first period named in the law, was .90 of the maximum allowed by the law; the loss as to 140 packages withdrawn during the second period was .37 of the maximum allowance; as to 71 packages withdrawn during the third period, the loss was .53 of the maximum; as to 90 packages withdrawn during the fourth period, the loss was .09 of the maximum; as to 131 packages withdrawn during the filth period, the loss was .78 of the maximum; as to 128 packages withdrawn during the sixth period, the less was .75 of the maximum; as to 99 i)ackages withdrawn during the seventh period, the loss was .71 of the maximum; as to 94 packages withdrawn during the eighth period, the loss was .00 of the maximum; as to 179 packages withdrawn during the ninth period, the loss was .05 of the maximum; as to 107 packages withdrawn during the tenth period, the loss was .08 of the maximum; as to 144 packages withdrawn during the eleventh period, the loss was .01 of the maximum; as to S5 i)ackages withdrawn during the twelfth period, the loss was .00 of the maximum ; as to 192 packages withdrawn during the thirteenth ]ieriod, the loss was .70 of the maximum; and as to 421 packages withdrawn during the fourteenth and last period, the average loss was .70 of the maxi- mum. Very few withdrawals of spirits less than ten months old were found to have been made from heated warehouses, and the average losses as to these few cases did not vary materially from those occurring in cold warehouses. As to 207 i)ackag('s withdrawn from heated warehouses during the sixth period named in the law (eleven and twelve months), the average loss was .87 of the maximum; as to 217 i)ackages with- drawn during the seventh ])eri()(l, the average loss was .94 of the maxi mum; as to 92 packages withdrawn during the eighth i)enod, the aver- age loss was .80 of the maximum; as to 23 packages withdrawn during the ninth period, the average loss was l.(K) of the maximum; as to 179 packages withdrawn during the tenth ])eri()d, the average loss was .80 of the maximum; as to 92 i)aekages withdrawn during the eleventh period, the average loss was .87 of the maximum; as to 43 packages 102 PAPERS ACCOMPANYING THE withdrawn durinf? the twelfth period, the average loss was .81 of the maximum; as to 43 packages withdrawn during the thirteenth period, the average loss was .90 of the maximum; and as to 379 packages with- drawn during the fourteenth period, the average losa was .91 of the .maximum allowed by law. LOSS OF SPIRITS BY CASUALTIES. During the fiscal year 1882 there were reported as lost by fire and other casualties, while stored in warehouse, 257,016 taxable gallons of spirits, or about fifteen ten-thousandths of tlie entire quantity of spirits (170,501,272 gallons) handled in the several distillery warehouses in the United States during that period. The loss so reported is distributed among the several kinds of spirits as follows: Gallons. Bourbon wMsky 145,239 Rye whisky 32,'J64 Alcohol 10,557 High wines 116 Miscellaneous 68, 140 Total 257,016 Of this quantity 167,890 gallons were destroyed by tire in one ware- house, and 57,674 gallons were destroyed by the falling of patent ricks in two other warehouses, making a loss of 225,564 gallons through three casualties. EXPORTATION OF SPIRITS. The following statements show the quantities of spirits withdrawn for exi^ort during the last two fiscal years: WITHDRAWN IN 1881. Districts. Bourbon whisky. Eye whisky. Taim. High wines. Pure, neu- tral, or cologne spiiita. Alcohol. Aggregate. Gallons. Qallons. Gallons. Gallons. 180 Gallons. Gallons. Oallo7is. 180 180, 217 1, 233, 804 847,019 5, 447, 659 2, 825, 906 8,-), 002 42, 575 809, 028 901, 4:i2 1, 005, 209 1, 414, 021 847, 019 2S9, 886 5 737 545 8 Illinois 2, 825, 906 1 Indiana 85, 692 4 Indiana ..... 4,212 46, 787 3,482 812, 510 2 Iowa 961,432 5 Iowa 1, 005, 209 5 Kentucky . 2,130 4, 452 1,457 2,130 4,452 1,457 3 IMiiryland 1,242 1, 242 3 MassachuHetts 209, 332 591, 002 269. 332 5 Hassachusetta ... 591.602 1 Missouri 28, 221 772, 171 """'316,373" 145, 509 28. 221 772. 171 1 Niw York 7,909 6,078 7,909 J Oliio 702 273 323, 426 3 Oliio 145, 5ii9 6 Oliio 903 975 2,212 • 1.9.38 22 PeniiBvlvania 2,212 1 Wisconsin 33, 580 33. .580 Total 13, 186 4,702 8G0, 934 180 488 302 1 14 .T.>i 17>? : I.t 9'>1 ifi5 REPORT OF THE SECRETARY OF THE TREASURY. 103 "VVITKDRAWif IN 1882. Districte. Bourbon whisky. Rye whisky. Rum. High wines. Pare, neu- tial, or cologne epiiits. Alcohol Gin. Aggregate. Gallons. Oallons. Oallmis. Gallons. 575 Gallons. 2 004 Gallons. Gallons. Gallons. 2 579 84, 224 470, 832 355, 330 3, 082, 049 977, 517 152,907 231, 902 286, 622 370, 532 ""in 555 056 355 330 11, 144 214, 379 3, 307, 933 977, 517 152 967 171 13, 614* 1,082 245 747 287* 704 370, 532 2,209 10, 316 3,591 2 Kentuekv 2, 209 10, llti 3, 5','1 4,0-.'3 200 5 Kentucky Kentucky .-• 200 7 Kmlucky 2,907 6,930 8 Kentucky 3 Maryhmd 209 40 40 00, 373 448, 518 96 373 448, 518 515 3,412 11, 093 153, 338 105, 552 ""iih' 15 02C 6 Missouri 153, 338 602 6.467 172, 621 615 1 New Yolk 439f 1 Ohio 553, 406 373, 206 553, 40< 373, 2Ce 400 3 Ohio 22 Pennsvlvnnia • 40G 502 23 Pennsylvania 502 Total 33, 019 4,055 544, 891 075 325, 382 7, 184, 466 337 8, 092, 725 * 13,614 "Ikliscellaneous" ou 01 a. 1439 "MisccUaneoos" on 61 a. The following figures show the increase or decrease as to the various kinds of spirits exported iu the year 1882 as compared with the year 1881: Gallons. Decrease in alcohol 7,309,712 Decrease in rum 310,043 Decrease in pure or neutral spirits 102, 920 Decrease in rye wbiskj' 647 Total decrease 7,649,322 Gallons. Increase in bourbon whisky 19,8:^ Increase iu hif^li wines 395 Increase in gin 337 Total increase 20,505 Not decrease 7,ti2d,75? SPIRITS WITHDRAWN FROM DISTILLERY WAREHOUSES UPON PAY MENT OF TAX. GalloDS. The quantity of spirits withdrawn from distillery warohouses upon pay- ment of tax was in 1882 70,7.^0,180 And was in 1881 07,372,575 lucreaso 3,357,605 This increase is distributed as follows : OoIloDS Bourbon whisky , , 897, 08*} Rye whisky 780,111 104 PAPERS ACCOMPANYING THE Callona. Gin 0(3; 607 Pure, lUMitral, or cologne 8i>irits 3,8DG, 015 MiBcclliflueous 1, 332, 708 Total increase 0,971,529 Gallona. Decrease in witlulrawals of high wines 3,224,977 Decrease in withdrawals of alcohol 373,715 Decrease in wit hdrawals of rum 15, 232 Total decrease ^^ 3,013,924 Net increase in withdrawals upon payment of tax 3,357,605 BPIRITS WITHDRAWN FROM WAREHOUSES FOR SCIENTIFIC PURPOSES, AND FOR USE OF THE UNITED STATES. The quaiitity of alcoLol withdrawn free of tax from distillery ware- houses for the use of colleges and other institutions of learning in the l)reservation of specimens of natural history in their several museums, or for use in their chemical laboratories, and of spirits of various kinds for use of the United States, amounted during the year to 14,048 gal- lons, or 10,854 gallons less than the quantity withdrawn during the previous year. SPIRITS WITHDRAWN FOR TRANSFER TO MANUFACTURING WARE- HOUSES. The quantity of spirits withdrawn free of tax from distillery ware- houses for transfer to warehouses established at ports of entry for the manufacture of certain articles exclusively for exportation (see sec. 3433 E. S., and sec. 14, act of May 28, 1880), amounted during the year to 213,322 gallons, or 7,494 gallons more than the quantity withdrawn dur- ing the i)recediug year. The spirits withdrawn consisted of two varie- ties, as follows : Grallons. Alcohol 163,556 Pure neutral or cologne spirits 49, 766 ' Total 213,322 SPIRITS REMAINING IN WAREHOUSES AT THE CLOSE OF THE YEAR. In my report for the year ended June 30, 1879, it was shown that the quantity (19,212,470 gallons) in warehouses June 30, 1879, exceeded the quantity in warehouse at the close of any ijrecediug fiscal year. This quantity, however, was much exceeded by the quantity (31,303,869 gal- lons) remaining in warehouse June 30, 1880, which latter quantity is more than doubled bv the quantity (04,048,111 gallons) in warehouse June 30, 1881, and more than tr?;bled by the quantity (89,902,045 gal- lons) in warehouse June 30, 1882. The following table shows the quantity remaining in distillery ware- houses at the close of each of the thirteen fiscal years during which spirits have been stored in such warehouses : Gallons. Quantity remaining June 30, 1869 16. 6S5, 166 Quantity remaining Juno 30,1870 11,671,886 Quantity remaining June 30, 1871 6,744,360 Quantity remaining June 30,1872 10,103,392 Quantity remaining June 30,1873 14,650, 148 Quantity remainLug June 30,1874 . . 15,575,224 REPORT OF THE SECRETARY OF THE TREASURY. 105 Gallons. Quantity remaining Jnno 30, 1P75 13,179,596 Quantity remaining Juno 30, 1876 12,595, 850 Quantity remaining June 30, 1877 13,091,773 Ouantitv remaining June 30,1878 14,088,773 Quantity remaining June 30, 1879 19,212,470 Quantity remaining June 30,1880 31,363,869 Quantity remaining June 30,1861 64,648,111 Quantity remaining June 30, 1882 69,962,645 WITHDRAWALS OF PRODUCTS, BY MONTHS. * The quantity of each month's product of spirits in warehouse July 1, 1881, which was withdrawn durinj;- the year ended June 30, 1882, is shown in the following tabular statement : Product of the montli of— In warehouse July 1, 1881. Withdrawn dur- ing year ended June 30, 1882. Boroaining in warehouse Jane 30,1882. 1878. Gallons. 4,387 31,490 13.386 5,815 10, 051 37, C92 113, 832 191, 975 29n. 853 37.), 408 442, 079 557, 035 620, 089 424, CG2 207, 023 134, one 193,017 307, 481 045, 835 1, 081, 193 1,453,477 1,723,312 2,316,138 2, 048, 272 2, 71.5, 802 2, 335, 213 1, 409, 077 53.-^ Ki- 891. 402 2,001.090 3, 087, 740 4, 300, 870 4, 329, 474 4,81.5,051 0,121,991 0,397.1.^8 0, 2'^7, O.'-G .5,510,934 Gallom. 4,387 31,496 13, 38C .5. 815 10, 651 37, 692 11% 832 191,975 299, 853 379, 408 442, 079 557, 035 610, 824 252. 644 112,878 75,913 85, 800 102, 740 250, 096 429, C85 486, 9C8 .529. 3(13 728, ,537 775, 570 775, 085 749, 374 347, 122 140, 984 238, 5.34 303, 805 560, 281 752,608 722,4.55 912, .5.-.5 1,130,714 1, 167, 008 1, 102, 471 1, 149, 058 GalUms. July 1870. May 15,265 172, 018 94,145 58, 093 107,157 204,741 395, 739 051,508 1860. 966,509 1, 194. 009 1, 587, 601 April 1. 872, 702 May 1, 940, 717 1, 585, 839 July 1, 062. 555 394, 853 652, 928 1, 637, 231 2, 527. 405 3, 548, 263 3, C(>7, 019 3, 9112, 496 4, 991, 277 April 5, 230. 180 .5,184,585 4,301,870 Total ... W, 048, 111 16, 700, 741 47, 947. 370 INCREASE OF SPIRI TS IN WAR EHOUSE. More than seven-tenths of the spirits roniaininjr in warehouse June 30, 1882 (63,011,282 gallons out of 89,002,015 gallons) was bourbon 106 PAPERS ACCOMPANYING THE whisky. Tlierc was au increase in the quantity in \vare])0U8e June 30, 1882, over the quantity in warehouse June 30, 1881, of 25,314,534 gal- lons, distributed among all kinds known to the trade, except alcohol, as follows : GiillonB. Increase in bourbon whisky - 19, 4.'rj, 406 Increase in rye wliiaky 4,742,724 Increase in rum 19, .'J94 Increase iiif^iii 4, 5.'j4 Increase in liij;li wines 25,289 Increase in pure neutral, or cologne, spirits . 500, 740 Increase in miscellaneous . 581,087 25, 3(J9, 994 Less decrease in alcohol 55,400 Net increase 25,314,534 SPIEITS REMOVED IN BOND FOR EXPORT. The following statement shows the quantity and percentage of pro- duction of distilled spirits removed in bond for export during each fiscal year since the passage of the act of June 6, 1872 : Tear. Taxable (proof) gallons ex- ported. Percentage of produc- tion. 1873 2, 358, 630 4, 060, 160 587, 413 1, 308, 9t10 2, 529, r>28 5, 49r>, 252 14, 837, 581 16, 765, 666 15, 921, 482 8, 092, 725 3.45+ 5. 90+ 0. 90-)- 1874 1875 1876 2. 2.Vf 1877 4.22f 9. 80-f- 1878 1879 20. S3-j- 1880 .. .. 18. .55+ 1881 13. 52 + 1882 7.64+ SPIRITS WITHDRAWN FOR EXPORT DURING FIRST FOUR MONTHS OF PRESENT FISCAL YEAR. Following is a statement showing, by districts, the number of gallons of each kind of spirits removed for export during the first four mouths of the present fiscal year: Districts. Alcoliol. Pure, neu- tral, or cologne spirits. Kuui. Bonrbon ■whisky. Rye whisky. Miscella- neous. Ilrst CalifoTni.T, Oallons. Oallons. 2,289 Oallons. Gallons. Gallons. Oallonx. a 237 Pifth Illinois ... . ... . 30, 388 17, 136 62,576 878 1,189 2. 416 694 Pil'th Kentucky ' 588 Sixth KinitiickV '" li,'236 Tbud Maryland ." 71 , 063 337, 868 Fifth Ma.ssachii.sctta 10, 619 3,772 Total 47, 524 2,289 409, 531 6,207 26, 209 2,813 a Wheat whisky. 6 High-proof spirits. REPORT OF THE SECRETARY OF THE TREASURY 107 SPIRITS IN DISTILLERY WAREHOUSES NOVEMBER 1, 1881 and 1882. Following is a statement of the quantities of spirits remaining in dis- tillery warehouses November 1, 1881 and 1882 : Gallons. District. tjt'conrl Alabama Arkansas First California Coliirailo First Connocticnt Sccoud Counectitut Second Georgia Tliird Georgia Idaho First Illinoia Second Illinois Tliird ni iiiois Fointli Illinois Filtli lllincds Eit:litb Illinois Thirteenth Illinois First Indiana Fonrth Indiana Sixth Indiana Seventh Indiana Eleventh Indiana Second Iowa Fifth Iowa Kansas Second Kentucky Fifth Kentucky Sixth Kentucky Seventh Kentucky Ei^rlith Kentucky Ninth Kentucky Louisiana Third Maryland Fourth Maryland Third Massachusetts Fifth Massachusetts Tenth Massachusetta F'irst Missouri Second ilissouri Fourth Missouri , Fifth Missouri Si'xih jilissouri Kebraska New Hampshire Third New Jersey First New York Twenty-lirst New York Twenty-fourth New York Thirtieth Now York Second North Carolina Fourth North Carolina Fifth North Carolina Sixth North Carolina First Ohio Third Ohio Fourth Ohio SixthOhio Seventh Ohio Tenth Ohio Eleventh Oliio Fifteenth Ohio Eighteonth Ohio First Pennsylvania Eisihth I'c iiiiHylviinia Ninth I'ennsylvania Twelflh I'eniiHylvaiiia Fourteenth I'ennsv Ivania Sixteenth l'enns\ Ivaniii Twentieth rennsvlvania Twenty-second I'ennsylvnnia. Twenty-third Pennsylvania .. South Carolina Second Tennessee Fifth Tennessee 21, 261 1,415 5,508 120, 1G2 57, 8;i9 19, 4.^5 43, 5G7 592, 421 C^, 745 2, 4;!l 33, 769 625, 804 3D, 313 186, 298 3, 663 3,196 1,500 28,319 721,493 820, 752 150, 865 397, 751 181, 288 372, 511 589. 747 133,959 114,976 299, 102 32, 176 70, 534 12, 380 7,721 3,107 112, 870 198, 21-4 29,712 187, 65 1 32, 359 23,461 4,295 220, 910 1,726 3,053 47, 231 85, 173 550, 850 65-2, 224 64, 902 frJS, 239 53. 1«50 205, i:i9 89, 607 11,738 11,259 701, 044 41.439 132, .532 9.516 109.373 ItlX. 852 29, 141 422, 3(t4 069, 500 5, 677 10, 006 , 424, 392 15,394 11, 477 543 6.894 1, 180, 256 67, 375 50,334 841.589 53,605 1, 224 39, 312 1, 408, 538 22, 457 131,141 2,573 1,973 22, 502 34, 067 7, 580, 853 80, 567. 253 5. 47(1, 604 13, 928, 212 1, 503, 460 484, 087 3,851,107 169, 900 121, 276 3(19. 053 40,388 35. 485 0.025 4.240 2,525 114.182 19.% 203 31.490 191. 978 64,405 19,188 1, no 260,363 5.53 1,831 12, 639 73, 386 1,384,717 55.5, 517 6.5, 178 681.734 4.5. 858 244,417 89.047 5.8.t;i 16. 670 817,039 41,858 200,919 13. 337 178, 099 137. 678 32, 121 5, 367, 879 2, 675. 320 2,587 4.283 1, 355, 4U3 108 PAPERS ACCOMPANYING THE District. Gallons. 1881. 1882. 3,089 8, 398 95 810 0,749 171, 548 854,913 50, 940 155 2,807 5,713 721 3,094 187, 945 981, 881 129, 191 539 Totul 67, 442, 180 84, 628, 331 USE OF ALCOHOL IN THE ARTS AND MANUFACTURES. The subjoined statement of alcohol used in the arts and manufactures is prepared from statements of collectors i)rocured when the question of using such spirits for the purpose stated free of tax was under con- sideration during the first session of the Forty-seventh Congress. (See pages 31 and 32, Xo. 152, Yol. 13, Congressional Kecord.) STATEMENT hi DISTEICTS, and in PnOOF-GALLONS, of the QUANTITY of ALCOHOL USED in the ARTS and MANUFACTURES durinq the year ended April \, 18H2; uUo the QUANTITY ESTIMATED which WOULD HAVE BEEN USED in CASE the TAX ViERE 50 CENTS PER GALLON, and in CASE THERE WERE NO TAX. Quantity used and estimated. District and State. Actually used. Estim,ites. Ey -n-bom used. At50cts. tax. At no tax. 4,900 10, 000 i,:m 200 5,000 16, 800 75, 309 7, 832 4,000 6,200 7,994 15, 000 1, 308 200 5,000 21, 000 111, 953 9,148 4,000 7,512 13, 235 20, 000 1, 308 200 5, 000 33, COO 198, 026 13,045 4 000 8,138 Chemists, druggists, pbotograpbers. 2. Alabama xVpotbecaries, pbotograpbers, painters. Xot stated. Central Pacific Kailroad Company and otbera. Xot stated. j^ot stated. Arkausaa 4. California 1. Connecticut 2. Connecticut Delaware Florida Not stated. None, except small quantity by druggists. Druggists. Druggists, pbotograpbers, tobacco manufact- ui-ers. 9, 362 43, 350 400 41, 917 IG, 500 21, 757 5, 000 20, 000 13, 812 6, 000 15, 511 4,000 50, 000 16,948 39, 067 12, ."-lOO 10, 000 14, 418 43,350 400 43, 777 16, 500 22, 241 5,500 20, 000 15, 867 6,000 21, 472 4,000 62, 500 20,116 44,209 12, 500 10, 000 22, 425 54, 187 400 46, 730 16, 500 23, 341 5,500 20, 000 18, 032 6, 000 40, 338 4,000 75, 000 22, 5:i8 48, 160 12 .-.00 10 000 Cbemists. druggists ; varnish, tobacco, -white lead, and bat manufacturers, and,pbotographei-3. Not stated 4. llliuoia Not stated. 7. Illinois 8. Illinois 13. Illinois 70 per cent, by drnggi.sts in making tinctures; balance by manufacturers of furniture, ma- chinery, photographs, and hats. Not stated 10. Indiana 11. Indi.ina 2. Iowa liailroads, machinists, brass founders, carriage mamil'acturers, druggists, pbotogi'aphers, per- fumer.s. chemists, plumbers. Not stJit00 83, 0C7 1, 000 137, 240 365, OCO 5.-., 422 35, 229 28, 000 V6:>, 000 fi, 000 4,500 (i, 0I'4 1, 800 70, 000 37, 104 2,310 3,790 350 73, 297 10,405 11,281 2,818 8,840 6,000 5,000 65. 135 150, 000 2,000 62, 450 130, 300 226, 520 4, 303 709, 230 275, 000 104, 550 150, 993 7,000 10, 000 38, 500 11,280 17, 000 352, 600 4,000 2, 400 11, 852 14, 920 1, 500 1, 500 67, 500 1,500 1,000 4, 500 312, 443 1,700 149, 840 356, 000 !5."), 422 44,036 36, 000 200, 000 6, 000 .5, 000 7,544 1,800 85,000 45, .TO8 2, 425 4,737 350 118, 241 1.% 960 11,847 2,818 8, 840 8,000 .<>, 000 195, 609 195, 000 191, 978 30,000 6,170 12, 000 7.'), 000 2,000 2,000 308, 450 1.31, 800 330, 780 5, .59(5 805, 800 400, 000 lOe, 350 198, 178 7,000 10. 000 46, 667 11,280 2.5, 000 628, 100 4,000 2, 850 12, 502 18, 870 1,500 1,500 67, 500 1,500 1,000 4,500 390, 977 2, 000 184, 000 494, 000 83, 133 52, 843 50, 000 275, 000 6,000 5, 000 14. 044 1, 800 100, 000 12.5. 000 2. 772 7,580 700 247, 978 20, 720 1.5, 290 2,828 8,840 10, Olio 10,000 2^0, .544 195 000 Four wholesale and 291 retail druggists and 180 photosraphers. Not stated. ^ Ninety druggists. Druggists. None. Fifty leading business men. Mo.stly by dniggists in quantity, and by tobacco manufacturers trjtllng. Eighty-three " pLices," principally druggists. None." Druggists and others. Druggists, perfumers, photographers, and to- bacco manufacturers. Di-nggists and 1 varnish mannfactiu'er. Druggists and others. Druggists and others. Not stated. Tobacco manufacturers, chemists, dmgg;i8ts, pho- tographers, &.C. Not stated. Manufacturing chemists principally. Not stated. Not stated. No large manufacturers using alcoboL Retail druggists and photographers. Not stated. Chemist.s, druggists, photographers; tobacco, vinegar, paints, hats, flaToring extracts. Not stated. Not stated. Druggists, photographers, tobacco manufactu- rers. Not stated. Druggists and photographers. Not stated. About 6,500 gallons by painters, photographers, and manufacturers ; balance by druggists. Not stated. Not stated. Druggists, photographers, &0. Not stated. Not stated. Chemists, dniggists, hatters, photographers : to- bacco, picturo-frame-vami.sh manufacturers. Not stated. Druggist.s and varnish manufacturers. Not stated. Not stated. Not stated. Druggists ; no large manufacturers. Not stated. Not stated. Not stated. Patentniedicine and perfumery manufacturers, and small lots l>v hatters, tobacco manofact urers, photographers. 1 Fourth district of California 2, 216 5, 567 Transferred from first to fourth district 4, 999 Transferred from fourth to first district 10, 877 15,876 Removed for exportation and unaccounted for June 30, 1882: First district of California 825 Remaining in warehouse June 30, 1882: First district of California 220,687 Fouith district of California 202,985 423,672 190, 630 424, 497 615, 027 Of the 381,825 gallons ^ape brandy bonded during the last fiscal year 145,892 gallons Avere i.ioduced in tlie first district and 235,033 gallons in the fourth district of California. The total product was 141,701 gallons more than in the previous year, while the amount removed tax-paid was 27,155 gallons larger than in 1881. Of the quantity in warehouse June 30, 1882, 220,087 gallons were in the following warehouses in the first district of California : GaUons. No. 1. Bode &- Danforth, at San Francisco 153,587 No. 2. Juan Bernard, at Los Angeles 47,203 No. 3. G. C. Carlon, at Stockton 19,897 and 202,985 gallons were in the following-named warehouses in the fourth district of California : GaiionB. No. 1. George Lichtliardt, at Sacramento 100,936 No. 2. J.F. Boyce, at Santa Rosa 28,326 No. 3. H.J. Lowell ing, at Saint Helena 58,764 No. 4. John Tivneu, at Sonoma 14,956 NUjMBER of breweries and number of RECTIFIERS. The following statement shows, by States and Territories, the number of breweries and rectifiers in the United States : States. 1i n ^2 States. 1i (C 3 2 24 20 41 5 53 6 349 1 177 43 328 4 2 23 18 1 2 30 2 1 15 I 241 34 24 22 92 8 16 204 Ohi 107 i 17 130 68 123 21 34 10 12 1 0.5 11 7 3 .•>3 20 5 Iilalio 208 8 1 South ('aiolina K 8 Utab 2 Vnrniout 2 36 214 7 13 71 30 1:14 111) 07 4<> 12 14 1 05 20 Wyominf; ' Total 72 2,557 1 157 112 PAPERS ACCOMPANYING THE EXPORTS, DRAWBACKS, BANKS, AND ASSESSMENTS. The subjoined tables give details of tbe exportation of the different articles subject to internal-revenue taxation, of the amount of drawback allowed, of the capital and deposits of banks and the assessments made thereon, and of the assessments made in regard to other objects of taxa- tion. EXPORTATION OF MATCHES. The exportation of friction matches, proprietary articles, &c., under section It) of the act of March 1, 187D, has been as follows: NnmLer of articles. Amonnt of tax. Remaining nnacconnted for Juno 30, 1881.. . Booded during tlie year ended June 30, 1882 Exported during the year Bemainiiig unaccounted for June 30, 1882.. . 235,716 $2,723 52 36, 066, 221 377, 269 54 36, 301, 937 379, 993 08 35, 974, 874 327, 063 36,301,937 379, 993 06 DRAWBACK. Follo-wing is a statement of drawback of internal-revenue taxes al- lowed on exported merchandise during the fiscal year 1882 : Port. 1 Cm O P4 Tobacco. Cigars. o . 2 § StiUs. 5 Total. 24 10 1 21 695 32 13 1 89 18 1 4 $1, 106 14 433 52 $35 20 $96 25 $1,237 59 452 43 $18 96 46 25 698 39 1, 505 72 917 73 46 25 698 39 29, 805 66 336 40 $20 66 ii- 049 40 32,717 18 917 73 1, 220 40 258 10 774 14 1, 220 40 258 16 4, 697 76 i, 309 87 40 00 917 10 7, 738 87 726 13 726 13 Suspension Bridge 12 96 84 24 12 96 84 24 Total -^ 909 33, 695 22 5, 069 36 1, 406 12 3, 913 18 60 00 1,966 50 46. no SS Allowed 1881 749 28, 483 87 1 8. 596 BO 1,232 43 1, 128 38 1 220 00 1, 161 90 1 40. 849 26 In connection with the foregoing statement I have to renew the recom- mendation made in my previous reports (1880, 1881), that section 3244, Bev. Stat., be so amended as to include distilling worms belonging to stills manufactured for export, which, like stills, are subject to a tax of $20 each. Also, that an appropriation be made for the payment of drawback on articles exported under said section 3211, Eev. Stat. While a number of claims covering stills have been allowed by this office during the past three years, and by the authority conferred by section 3241, yet the claimants in such cases have been unable to recover the amount of drawback so awarded them by this ofiice, in consequence of the failure of Congress to make the necessary appropriation. While the amounts due these claitnants are not large, the promise made by the law to this class of tax-payers should, nevertheless, be redeemed, and I urgently caU attention to this matter, in order that the payment of ■the^e claims may be provided for. REPORT OF THE SECRETARY OF THE TREASURY. ASSESS]iIENTS ON BANK CAPITAL, AND DEPOSITS. ii; FollowiDg is a statement of the amount of taxes assessed on the cap- ital and deposits of banks and bankers during the twelve mouths ended May 31, 1882: states and Territories. Banks and bankers. On capital. Savinjrs banks. On deposits. On capitaL On deposits. Total. Alabama Arizona Arkansas CaUlomia Colorado Connecticut Dakota Delaware Florida Georgia , Idaho llLinuia Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts . Miclujian Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico . . . New York North Carolina. Ohio Oregon Pennsylvania . . Khode Lsland... South Carolina . Tennessee Texas Utah Vermont Virginia Washington "West Virginia. . "Wisconsin Wj'oming Total $5, 839 30 6C7 03 870 (12 C5, 843 62 5, 023 87 14, 028 OG 1, 755 87 2, 757 60 017 23 17, 6.10 05 eo 18 60,904 61 18, 710 22 28,713 93 11, 563 14 54, 530 40 10, 303 88 320 33 14, 207 39 20, 003 59 14, ,549 72 15, 713 58 4, 513 64 47, 968 84 2, 738 92 G, 444 71 1, 1G4 45 251 07 3, 614 23 117 94 316, 477 65 2, 734 69 29, 235 54 3, 571 50 63,039 16 13, 396 90 2, 708 94 8, 522 25 22, 581 84 1, 709 74 l,.36l 5-4 12, .575 24 1.781 00 5, 2.35 61 10, 905 35 825 15 $17, 4, 3, 216, 2-1, 32, 4, 4, 4, 24, 243, 81, 116, 39, 85, 27, 5. 52, 89, 90, 52, II, 204, 7, 20. 20, 3, 1, 202, 5, 194, 12, 443, 2.5, 8, 16, 50, 10, 12, 50, 4, 25, 103, 3, : c"""\"[\[. $6, 395 02 $42, 458 90 9, 016 23 203 02 153 28 152 84 '75006 442 12 638 75 '2,' 490 28 "isooo 2, 061 82 62 2: 1, 788 54 477 78 413 18 99 74 295 96 C43 72 407 16 2, 391 76 6i;3 44 2, 458 27 431 85 3, 706 87 "soc'si 4, 560 69 14, 230 99 5 71 85 75 913 36 934, 740 90 I 3, 727, 500 27 13, 049 45 85, 438 99 $23, 4, 4, 330, 30, 55, 4, 44, 305, 101, 145, 51, 14U, 38, C, 67, no, 10-, 68, 10, 312, 9, 26, 0, 3, 24, 3, 1, 522, 8, 224 'ie! 513, 53, 11, 73i n, 13, C.5, 6. 30, 114, 4, 787 67 819 56 546 00 704 51 377 39 622 70 850 70 750 66 036 86 217 43 357 28 614 87 090 82 037 54 416 03 396 88 131 64 521 85 2.58 36 352 91 542 26 721 62 383 56 870 63 772 79 474 25 9,54 99 416 31 290 78 909 07 313 29 367 67 485 29 416 22 833 10 219 33 647 20 079 99 2,>4 79 925 96 822 75 716 15 436 30 291 30 201 14 430 11 4, 761, 335 61 AVERAGE CAPITAL AND DEPOSITS FOR LAST FIVE FISCAL YEARS. STATEMENT of the ailOSS AMOUXTS of ArEUACE CAPITAL and DEPOSITS of SAVIXaS BAXKS, BAXE.'S, and B.IXKEPS, oHur lluiii XATIOXAL BAXKS, for the years ended May 31, IciTH, 1-'71), IbJ^O, 18dl, and Ic;?",'. 1878. 1879. 1880. 1881. 1862. Capital of savings banks Capital of banks and bankers.. Deposit.s of savings banks.. .. Deposits of banks and bankers. $5, 6n0, 330 200, 897, 732 843,410,920 483, 420, 532 $3, 507, 392 193.781,219 829,912,178 407,001,179 $4, 004, 821 192, 173, 555 790, 704, 330 409,124,381 $4,187,396 207, 4.54, 9'J4 890, OOi;, 544 597,381,514 $3, 8.32. 828 224, 476, 932 O.'^l, 3.^0, 832 745, 500, 094 Total 1,539,350,514 1,434,051,808 ,1,402,007,090 11,099,090,378 1 1 1 1, 955, 190, 686 8Ab 114 PAPERS ACCOMPANYING THE BANK CAPITAL INVESTED IN BONDS. The I'ollowiiig is a statement of averaip^e capital and deposits of sav- injj;s banks and the capital of banks and bankers other than national banks invested in IJjiited States bonds, compiled froin tlie r«;tnrns of said banks and bankers, for the years ended May, 1878, 1870, 1880, 1881, and 1882: 1878. 1879. 1880. 1881. 1882. Capital of savinfja banks Capital of bank 9 and bankers.. Deposits of savings banks $fi01, 872 3G, 425, 30(J 121, 855, G22 $429, 791 40,(113,376 154, 847, 340 $507, 876 40, 371, 805 182, 580, 893 $812,768 35, O09. 939 194, 880, 529 $1, 102, 938 37, .527. 554 233, 673, 588 Total 158, 882, 800 195, 290, 513 223, 4C0, 634 230, 799, 236 272, 304, 080 MISCELLANEOUS ASSESSIVEENTS. The following table shows the assessments made by the Commissioner of Internal Revenue during the fiscal years ended June 30, 1881, and June 30, 1882, respectively, and the increase or decrease on each article or occui)ation : Article or occupation. Amonnt assessed during fiscal year ended — June 30, 1881. June 30, 1882. Fiscal year ended June 30, 1881. Increase over 1881. Decrease from 1881. Tax on deficiencies in production of distnied spirits Tax on excess of materials used in the produc- tion of distilled spirits Tax on deposits and capital of banks and bank- ers and of savings institutions other than nar tional banks Tax on circulation of banks and others Tax on distilled spirits fraudulently removed or seized Tax on fermented liquors removed fcom brew- ery unstamped Tax on tobacco, snulf, and cigars removed from factory iinstaniped Tax on proprietary articles removed unstamped . Assessed penalties Legacies and successions Dnassessed and unassessable penalties, inter- est, taxes previously abated, conscience money, and deficienoies in bonded accounts ■which have been collected, interest tax on distilled spirits; also, fines, penalties, and for- feitures, and costs paid to collectors by order of court or by order of Secretary, and unas- sessable taxes recovered; also, amount of penalties and interest received for validating unstamped instruments (Form 58) , Special taxes (licenses) Tax on income and dividends Total $48, 494 36 3, 547 10 3, 9.55, 183 20 10, 788 02 40, 396 42 854 96 46, 385 27 5, 132 29 143, 863 78 63, 859 39 275, 524 93 60,411 59 14, 903 33 $108, 951 24 7, 730 78 5,222,012 40 1, 921 81 63, 414 70 664 65 43, 095 00 5,479 19 193, 145 24 29, 085 92 285, 250 80 61, 415 03 1, 201 44 $60, 456 88 4, 183 68 1, 266, 829 20 23, 018 28 346 90 49, 282 46 9, 725 87 1, 003 44 4, 669, 343 64 6, 023, 368 80 1, 354, 025 16 $8, 866 21 190 31 3, 289 67 34, 773 47 13, 701 89 The foregoing table shows that a decrease has occurred in the assess- ments of the following taxes as compared with the year ended June 30, 1881, viz: On circulation of banks and others. On fermented liquors removed from brewery unstamped.' and on to- bacco, snuff, and cigars removed from manufactory in like manner. REPORT OF THE SECRETARY OF THE TREASURY. 115 On legacies and successions, and on incomes and dividends. The redaction in the amount assessed on circulation, which has been princi])ally the ten i)er (centum tax, on notes issued by manufacturing e.stivhlishments and used for circulation, shows how nearly this kind of cur- rency has been supplanted by tlio legal money of the country. The small amount of only $1,'J21.S1 was assessed last year against $10,788.02 in the previous fiscal year. It may be also stated tliat nearly all such notes on which the tax was assessed have already been withdrawn from circula- tion. The reduction of taxes assessed on fermented liquors and tobacco, snutt", and cigars, removed from the place of manufacture unstami)ed, in- dicates a better observance of the law and regulations governing the taxation of these articles. The reduction of the tax assessed on legacies and successions and on income and dividends is owing to the increased lapse of time since tlie repeal of the laws subjecting these objects to internal revenue taxation and to the fact that those taxes have been almost entirely collected. The most remarkable increase exhibited in the above table is that of taxes assessed on the ciipitaland deposits of banks, bankers, and savings institutions. Tlie atnount thus assessed was 85,222,012.40 against S'^^'oo, 183.20 of the year previous, showing an increase of $1,200,820.20. As stated in my last annual report, it had become known that several banksinthelargercities had, by misinterjnetationof the law, understated in former reports the amount of their cai)ital and deposits subject to tax. Investigations of these cases leil to the discovery that such taxes, amounting to $722,705, were due the United States. Following up this discovery a circuhir letter was addressed in October, 1881, to each collector, requiring him to request from all banks in his district a re-examination of their former returns and to report as to their liability to additional taxation. This request having been generally complied with, and voluntary ad- ditional returnsmade by the banks, assessments amounting to $100,070.79 Mere made last year on this account. This amount, added to that pre- viously ascertained, gives a sum of $1,183,381.70 so far assessed as tax due from previous years. In addition thereto, an amount of $25,510.23 was recovered in compromise which was not assessed. The total tax so far recovered by the government is therefore $1,205,028.01. Several cases have not yet been fully investigated and determined upon; it is tlierefore likely that some further and perhaps very heavy assessments will result therefrom. Deducting, however, the above $100,070.79 assessed as back taxes from the total amount assessed on cai)ital and deposits last fiscal year, it still leaves the large amount of $1,701,335.01 a.ssessed against the banking business of last fiscal year, showing an increase over the pre- vious one of $800,152.11. E.\j)lanation of this fact is found in the enor- nu)us growth of tlie wealth of the country; the total average capital and dei»osils emi)loyed and held by 1)anks and bankers other tlian national banks last year being $1,055,100,080, an increase of $250,100,308 over the previous year. In exi)lanati()ii of tlie increase of tax asses.sed on deficiencies in the l)roducti()n of distilled spirits and on excess of materials used in such production, it may be staled that most of these assessnu'iits cover the unusually large i)rodiu'tion of ilistilled sjiirits in the year ended June 30, 1881. This also may be said in regard to the increased amount assessecl on distilled si)iiits fraudulently removed or seized. A great number of distillers, who formerly carried on an illicit business, have recently 116 PAPERS ACCOMPANYING .^lE submitted to tlio law, have been reffularly rc|i8tered, and their short- corn in ji's are now ascertained and assessed. or the amount re[)orted as assessments of penalties, the larger pro- portion consisted of 100 ])er centum penalties assessed against banks under a decision of tlie United States circuit court for the southern district of New York (German Savings Bank v. Joseph Archbold, col- lector), for erroneous returns made. This decision having been reversed by the United States Supreme Court, the larger part of these assess- ments have been or will be abated. ASSESS3IENTS FOR 18S2. The following statement shows the amount of assessments in each of the several States and Teritories of the United States during the fiscal year ended June 30, 1882, and includes the taxes assessed upon capital and deposits of banks and bankers : Alabama $32 Arizona 6 Arkansas 7 California 376 Colorado 37 Connecticut 60 Dakota 7 Delaware 8 Florida 6 Georgia 61 Idaho Illinois 348 Indiana 163 Iowa 158 Kansas 54 Kentucky 207 Louisiana 64 Maine 11 Maryland 77 Massachusetts 206 Michigan 121 Minnesota 70 Mississippi 17 Missouri 358 Very respectfully, Hon. CHAS. J. FOLGER, Secretary of tJie Treasury. ,816 50 , 946 79 , 055 02 ,760 50 , 736 31 , 112 62 , 370 03 ,589 04 ,366 30 , 073 40 639 81 ,377 39 ,419 97 , 107 40 ,535 12 ,630 85 ,084 74 , 242 47 , 948 97 ,773 21 ,081 51 ,944 47 , 515 20 ,838 95 Montana $11,300 77 Nebraska 32,634 18 Nevada 8,333 84 New Hampshire 20, 852 51 New Jersey 33,647 66 New Mexico 4,948 60 New York 2,018,989 78 North Carolina 63, 082 02 Ohio 261,395 53 Oregon 17,117 76 Pennsylvania 565, 936 43 Rhode Island 54, 022 96 South Carolina 16, 423 58 Tennessee 56,419 81 Texas 85,951 62 Utah 13,795 48 Vermont 16, 175 01 Virginia 84,441 54 Washington 7,654 47 West Virginia 34, 838 46 AVisconsiu 124,618 80 Wyoming 4,821 42 Total 6,023,368 80 GEEEN B. KAUM, Covimissioner, REPORT OF THE SECRETARY OF THE TREASURY. 117 KEPORT OF THE COMPTROLLER OF THE CURREXCY. Treasury Department, Office of the Comptroller of the Currency, Washington^ December 2, 1882. I have the honor to suljinit for tlie consideration of Congress the twentieth annual report of tlie Comptroller of tlie Currency, in compli- ance with section 333 of the Revised Statutes of the United States. The number of national banks organized during the year ending November 1, 1882, has been 171, with an aggregate authorized capital of $15,707,300. Circulating notes have been issued to these associa- tions amounting to $0,500,080. This is the largest number of banks organized in any year since 1872, and they are located in the following States and Territories : states and Teni- toriea. MaiDo New Hampshire.. Massachusetts Counccticut New Yoik Peunsylvauia Marvlaud Virj;iuia West Virginia Mississippi Louisiana Texas Arkansas Kentucky MiBsoun Tennessee Ohio Indiana No. of I banks. Capital. $150, 000 200, 000 400, 000 200, 000 1, 302, 000 865, 000 350, 000 305, 300 100, 000 75, 000 10(1, (100 525, 000 50, 000 1, 010, 000 305, 000 305, 000 1, 050, 000 320, 000 Circulation issued. $117,000 180,000 1U8. 000 162,0(10 774, 000 357, 300 45, 000 139, 500 4.'), 000 67, 500 90, 000 160,640 11, 240 219, 600 103, .500 166, 500 039, 000 148, 500 states and Terri- torii'8. Illinois Michigan Wisconsin ... Iowa Minnesota . .. Kansas Nebraska Colorado Oregon Utah Montana Wjotiiing. . .. Now Mexico . Dakota Wasliington . Arizona Calil'oniia United States No. of bauka. Capital. Circulation issued. 13 $1, 200, 000 $375, 750 6 850, 000 306. 000 5 325, 000 153, 000 13 1, 125, 000 50.5, 790 6 550, 000 76, 500 10 COO, 000 217, 790 15 1, 050, 000 593, 970 4 270, 000 144, OiO 1 50. 000 45, 000 2 150, 000 99, 000 4 325. 000 104, 000 1 200, 000 45, 000 o 100, 000 54,000 310, 000 135, 000 3 250, 000 81,000 1 100, 000 30,600 1 100,000 171 15, 767, 300 I 6, 500, 680 These banks are locnted by geogra])hical divisions as follows : Eastern States, nine banks Mitli a capital of 8i>50,000; Middle States, twenty-si.x, with a cai)ital of $2,517,000; Southern Stntes, twenty-nine, with a capi- tal of $2,775,300; Western States, eighty-si.x, with a capital of $7,0-10,000; Pacific States and Territories, twenty-one, with a capital of $1,585,000. Nineteen banks, with an aggregate cai)ital of $1,855,000 and circu- lation of $1,440,800, have voluntarily discontinued business during the year. The number of banks organized and in voluntary liquidation as given, is exclusive in each case of those banks which have gone into vol- untary liquidation during the year and have been succeeded by other banks, with the same or nearly the same shareholders. Three national banks, since November 1, havi^ been i)laced in the hands of receivers, making 87 in all since the establishment of the sys- tem. The total number of banks which have voluntarily closetl their affairs by vote of shareholders owning two-thirds of their stock, umh'r sections 5220 and 5221 of the Revised Statutes, has been 414; 72 of this number have gone into licpiidation within the past year, of .which 53 118 PAPERS ACCOMPANYING THE "were closed by their stockholders for the purpose of organizing new banks, and all but three of this latter number in antiei])ati<)n of the near ap])roach of the expiration of their c()r])oratc existence. The sliarehohlers of six banks permitted their corjiorate existence to expire, and these associations are in liquidation under section 7 of the act of July 12, 1882. National banks are organized in every State of the Union and in every organized Territory. The total number in oi)eration on October 3 last was 2,2G9 — the largest number that has ever been in operation at any one time. The following table exhibits the resources and liabilities of the national banks at the close of business on the 3d day of October, 1882, the re- turns from New York City, from Boston, Philadeli)lii:i, and lialtimore, from the other reserve cities, and from the remaining banks of the coun- try, being tabulated separately : KESOUUCF..^ Loans ami discounts Overdrafts Bonds for circulation Bonds for deposits U. S. bonds on band Otbor stocks and bonds Due from reserve ageuta Due from otber national banks. Due from otber banks and bankers Keal estate, furniture, and fix- tures Cun-eut expenses Premiums Checks and other cash items.. Ilixcbanues for clcarins-'iouse.. Bills of other national banks. . . Fractional currency Specie Lcfral-tendcr notes ,U. S. certiticatos of dei)Osit Five ^>er cent, redemption fund. Due Irom U. S. Treasurer Totals. I.IAlill.ITIES. Capital st ock Surplus fund ITniiivided profits National bank notes outstand- Stato bank notes outstanding Dividends unpaid Individual deposits U. S. deposits Deposits of U. S. disbursin officei's Due to national banks Duo to other banks and bankers Xotcs and bills rediscounted Bills payable Totals. New York City. 50 banks. $239,041, 1U8, 22, 105, 820, 3, 545, 12, 092, 19, 258, 3, 087, 918 10, 671, 839 1, 092, 203 Co5, 549 2, 809, 544 174, 929, 476 1, C;!4, 085 43, 131 44, 523, 8.?4 10, 950, 390 1, 970, 000 963. 999 020, 828 Boston, Pliila- ^., „„ „„„„„,., dclphia, and Otl'^'- reserve B.iltimore. 102 banks. $201, 52, 91 banks. Country banks. 2,026 banks. Aggregate. 2,269 banks. $146,282,464 $651,024,606 $1, 238. 286, .525 372,403 I 4.360,333 4.916.694 26,472,700 I 2."jO, 505, «50 357,031,7.50 3,883,000 i 10,747,000 16.111,000 3, 803, 750 1 3. 492, 650 21, 314, 750 4, 895, 008 40, 463, 909 60, 168, 917 15,440,614 80, (i64. 106 113.277.228 9, 198, 735 26, 922, 833 08, 516, 841 1, 126, 884 6,501,659 826, 941 444,529 1,337,998 i 24, 148, .573 I 2,75.3,321 31. 210 15, .^43, 221 6, 727, 78J 3, 175, 000 2, 3.'.3, 504 78. 005 557,541,532 ! 359,557,535 51, 650, 000 21,314,109 13, 970, 754 19, 270, 285 47,446 228. 865 325, 208, 0C4 42.5, 115 127, 304 90, 104, 275 35, 134, 415 557, 541, 532 79. 208. 330 22,501,193 6, 712, 520 46, 467, 247 35, 154 941, (197 151, 959, 431 397, 200 20, 986 38,461,312 12, 084, 059 220, 000 459, 000 359, 557, 535 3,364,283 4, 000, 600 852, 920 702, 201 1. 076, 034 8, 384, 5!9 '2,406,401 50, 428 12,960.384 11, 310, 099 2, 890, 000 1, 103, 901 108, 325 9, 526, 383 25, 302, 908 4,406,190 4, 642, 816 9, 500, 449 903, 952 13, 8.34, 958 271, .599 30, 024, 289 28, 286, 396 640, 000 11, 336, 634 538, 303 17, 105, 468 46. 537. 060 7, 238. :J00 6. .51.5, 1.55 14, 784, 025 208, 300, .540 20, 689, 425 396. 368 102. 857, 778 63, 281, 267 8, 675, 000 15.818,093 1. 345, ,521 259,812,295 1,222,922,314 ; 2,399,833,676 46,080,995 ' 300,074.888 11,041,071 76, .521. 077 .5,283,721 , 35,208,309 483.104.213 131,977.451 61, ISO, 310 22, 365, 298 1.57,931 119,162,211; 2, 563, 517 567, 1.54 29, 048, 962 20, 019, 577 879, 906 1, 436, 947 226, 618. 385 I 314, 721, 215 138, .-.77 I 221,177 1,825.943 3, ],-)3, S3G 526,082,132 1,122,472,682 5, 431, 579 I 8, 817, 411 2, 912, 343 22,461,201 12, 047, 6(11 4. 647. 709 2, 952, 570 3, 627, 847 189. 07.5, 750 79. 885. 0.52 5, 747. 015 4.848,517 259, 812, 295 1, 222, 922, 314 2, 399, 833, 076 *The reserve cities, in addition to New York, Boston, Philadtlphia, and Balliinoro. are Allv'ny, Pittsburgh, Wa.sh)ngton, New Orleans, Louisville, Cincinnati, Cleveland, Chicago, Detroit, Milwaukee, Saint Louis, ind San Francisco. REPORT OF THE SECRETARY OF THE TREASURY, 119 The following table exliibits, in tlio order ot their capital, the twenty States having the largest amount of capitnl, together with the amount of circulation, loans and discounts, and individual deposits of each, ou October 3, 1882 : St^es. Capital. Circulation. LouDS and discuuuts. MassacLnosetts $95, K52. 500 New York I 87. .X), .W Peunsjlvauia 67, 4.'iJ, Oiil Ohio 3v, t;o4, oim Connecticut -5, a.'iG, .^-'0 Rhode Island : '.'«, 31',, c.-.O IllinoiH ]>','jS9,t'ii0 Maryland Kt, 9-J2, ii;jO Ipdiana \ T!, :i2:j, TOO New Jersey ; 12, 375, 3.50 KentueUv 1 ll,421,3r.O iliclii.'uii I 10,85.5,000 ilaiue ! 10, ;«.5, OUO Vermont 7,786,000 Iowa I 7, 13."., COO Now Hampshire ' C, OSO, 000 Minnesota ! 5, 920, 000 Missouri I 4, 980, rtOO Tenufssee 3,715,300 Virgiuia ; 3,203,000 47, 40, 20, 17, 14, 8, 8, 8, 9, 9, 5, 8. 6, 4, 5, 1, 1, 2 2, ."■.72. 889 TM, 145 618, 97G 830, 022 217, 7;»5 143, 039 790, 530 793, 523 117,470 769, 701 108, G31 793, 1.52 090, 233 4x7,307 083,110 147, 345 98(5, 694 883, 290 780, 500 C47, 100 $195, 125, .594 335, 378, 784 15t, 445, 805 74, 442, .'•71 43, 40.-^, 889 30, 078, 658 73,117,709 31,57.5,051 27,5S5,4C1 31, 481, 551 19, 593, 643 29, 825, 149 18,937,910 12, 186, 775 17, 79:>, 344 8,137,442 17, 907, 894 12, 890, 836 8, 434, 524 10, 444, 317 Individual dei)osits. $114, 409, 148, 60, 24, 11, 69, 23, 24, 28, 11. 26, 10, 5, IC, 4, 14, 9, 7, 10, 397 392 934, 724 490, 486 734, 873 933, 405 400, 515 763, 033 995, 278 942, 872 600,052 506,117 238, 875 433, 752 955, 461 169, 065 5C9, 085 045, 218 608, 139 590, 120 293, 467 COMPARATIVE STATEMENTS OF THE NATIONAL BANKS FOR ELEVEN YEARS. The following table exhibits the resources and liabilities of the na- tional banks for eleven years, at ueaiiy corresponding dates, from 1872 to 1882, inclusive: Oct. 3, Sept 12, Oct 2. Oct. 1, Oct. 2, Oct 1, Oct 1, Oct. 2, Oct 1, Oct. 1, Oct 3, 1872. 1873. 1874. 1875. 1870. 1877. 1878. 1879. 1880. 188L 1882. 1,919 1,976 2,004 2,087 2,089 2,080 2,053 2,048 2,090 2, 132 1 2, 269 banks. banks. banks. banks, banks. banks. banks. banks. banks. banks, banks. 1 RBSOUnCEB. MilHona. JfiHiojM. JfiVlnns itii'im: mWnnK. Millions. muion>. iliUinn'. Million: Million: MiUloru. 877.2 382. 944. 2 054. 4 984.7 370.3 931.3 337.2 891.9 336.8 834.0 347.6 878. 5 357. 3 1, 041. 357. 8 1, 173. 8 1. 243. 2 Bonds ibrcirciilat'n 388.3 383. 3 36:».3 357.6 Other U. S. bonds.. 27.6 2.3.6 28.0 28.1 47.8 45.0 94.7 71.2 43.6 56.5 37.4 Stocks, bonds, &.c. . 23. 5 23.7 27.8 33. 5 34.4 34. 5 36.9 39.7 48.9 61.9 66.2 Due from banks . . . 128.2 149.5 134.8 144.7 146. 9 129.9 138. 9 167.3 213. 5 230. 8 198.9 Ileal estate 32.3 34.7 38.1 42.4 43.1 4.5.2 46.7 47. « 48.0 47.3 46.5 Sjiecio 10.2 19.9 21. 2 8.1 21.4 22. 7 30. 7 42.2 109. 3 114.3 102.9 Leiral-tender notesl 102.1 92.4 80.0 76. 5 84.2 66.9 64.4 69.2 50.6 5.3.2 03.2 Nat'1-bauk notes . . . 15.8 16.1 18.5 18.5 15.9 1.5. 6 10.9 10.7 18.2 17.7 20.7 C. H. excharges .. 12.5. 100.3 109.7 87.9 100. 74.5 82.4 113.0 121.1 189.2 208.4 U. S. cert, ol' ilenosit a? 20.6 42. t 48.8 29.2 33.4 32.7 20. S 7.7 6. 71 8. 7 20. 3 18.3 19.6 19.1 16.7 19.1 16.0 28.7 10. 5 24.9 17.0 22.1 17.1 23.0 17. 51 17. 2 Other resources 25.2 17.3 26. 2| 28. 9 Totals 1, 75.5. 8 1, 830. o'l, 877. 2 — 1 1,882.2 1,827.2 1,741.1 1,707.3 1, 868. 8 2, 105. 8 2, 358. 4 2, 399. 8 UAUII.ITIES. Capital stock 479.6 491. 493. 8 504. « 499.8 479. 5 466.2 454.1 457. 6 403.8 483 1 Sundusl'und Undivided profits. . 110.3 120. 31 129. ( 134.4 132. 2 122. 8 116.9 114.8 120. 5 128.1 132.0 40.0 54.5 51. 5 5.3. 40.4 44. 5 41.9 41.3 40,1 56.4 61.2 Circulation 3:'.5. 1 340. n 334. 2 ::i9. 1 292. 2 291. 9 301.9 313.8 317.3 320. 2 31.5.0 Duo to depositors. . 628. 9 640.0 6k:i. 8 679.4 oi;«. 2 030. 4 608.4 736. 9 887. 9 1,0S.3.1 1,131.9 Due to banks 143.8 173.0 175. 8 170.7 179. H 101. G 165. 1 201. 2 207. 9 294.9 259. 9 Other liabilities 11.5 11. 5j 9.1 11.8 10.6 10.4 7.9 6.7 8.5 11.0 13.7 Totals 1, 755. 8 1,830.6,1,877.2 1, 882. 2 1 1. 827. 2 1,741.1 1,767.3 1, 808. 8 2, 105. 8 2, 353. 4 2, 399. 8 1 120 PAPERS ACCOMPANYING THE 111 tliG Appendix will be ihuud a table, showing- the principal resources and liiibilities on October o, 1S82, of the banks in the fcstateSj Territories, and reserve cities, arranged in eight divisions. NUMBER, CAPITAL, AND DEPOSITS OF NATIONAL BANKS, STATE AND SAVINGS-BANKS, AND PRIVATE BANKERS. Section 333 oftlie Eevised Statutes of the United States requires the Comptroller to i)re.sent annually to Congress a statement of the condi- tion of the banlvs and savin.uvs-banks organized under State laws, lie- turns of capital and deposits are made by these institutions and by private bankers semi-annually, to this department for purposes of taxation. I'rom these returns the following table has been compiled, exhibiting, in concise form, by geographical divisions, the total average capital and deposits of all the State and savings-banks and private bankers of the country, for the six months ending May 31, 1882: Geographical d i v i - state banks and trust companies. Private bankers. Savings banks witli capital. Savings banks with- out capital. sious. No. Capital. Depos- its. No. Capital. Depos- its. No. Capital. Depos- its. No. Depos- its. New Ensilaiicl States.. Middle States Southern States Western States and Mill's. 40 8. 32 2051 40. 56 24G 25. 37 521 42. 54 Mill's. 24.96 225. 51 48.47 153. 06 104 1014 293 1980 Mill's. 7.13 62.19 6.37 38.56 Mill's. 9.42 113. 08 19.98 153. 14 2 8 6 22 Mill's. .09 .61 .53 2.63 Mill's. .77 418 5.07 173 1.23 1 2 34. 17 29 Mill's. 421. 35 473. 2C 1.15 34.07 United States... 1012, 11G.T9 452. 00 3391 114. 25 205. 02 38 3.8C 41.24 622 929.83 1 The capital of the 2,239 national banks in operation on July 1, 1882, as will be seen by a table in the Appendix, was $177,181,390, not includ- ing surplus, which fund at that date amounted to more than 131 mill- ions of dollars; while the average capital of all the State banks, private bankers, and savings-banks, for the six months ending May 31, 1882, was but $231,929,97(3. The latter amount is less than two-fifths of the combined capital and surplus of the national banks. The table below exhibits the capital and net deposits of the national banks on July 1, 1882, together with the aggregate average capital and deposits of all classes of banks other than national, for the six months endingMay 31, 1882: Geogiaphical divis- State banks, savinss- bauks, private bank- ers, &.C. National banks. Total. Ko. Capital. Deposits. No. Capital. Net de- posits. No. Capital. Deposits. New En eland States, cuddle States 564 1400 547 2552 MiUions. 15.5 103.4 32.3 83.7 Millicns. 456.5 816.9 70.8 374.5 557 086 200 796 Millions. 165. 7 173.3 32.9 105.3 3[Ulions. 191.4 572.8 Millions. MiUioJU. 1121 ; 181.2 647.9 ''(186 276.7 1, 3e9. 7 .Sduthtin Stales West tin States and Territories 02.0 j 747 1 65.2 305.5 j 3348 1 189.0 132.8 680.0 United states.. 5063 234.9 1,718.7 2239 477. 2 j 1, 131. 7 j 7302 j 712. 1 2,850.4 REPORT OF THE SECRERARY OF THE TREASURY. 121 The total number of banks and bankers in the country at the date named was 7,."302, with a total banking capital of $7]2.11'4,300, and total deposits of 82,850,078,178. ' • In the Appendix vrill be found similar tables for various periods IVom 1875 to 1882. On a subsequent ])age in tliis report, under the head of "State banks, sa\ings banks, and trust companies," will be found tables showing the resources and liabilities of these corporations for thei)resent year, and in the Appendix similar results for preWous years. A table arranged by States and principal cities, giving tlie number, capital, and deposits, and the tax thereon, of all banking in.stitutions other than national and of the private bankers of the couiitiy^ for the six mouths ending IMay 31, 1882, and for previous years, will also be found in the Appendix. The following table exhibits, for corresponding dates nearest to jMay 31 in each of the last seven years, the aggregate amounts of the capital and deposits of each of the classes of banks given in the foregoing table: National banks. state banlxs, private bankers, 6cc. SavinKs banks ■w-itb capital. Savings bankswith- out capital. Total. Tears. No. Capi- tal. Depos- its. No. Capi- tal. Depos- its. Xo. Capi- tal. Depos- its. No. Depos- its. No. "^S!" Depos- its. 2nirs. Mill's. Mill's. jfi7r«. Mills. Mill's. MiWs. Mill's. MiU's. 1876... 2091 1 500.4 713.5 3803 214.0 480.0 26 5.0 1 37.2 691 1 841.6 6011 719. 4 1 2, 075. 3 1877... 2078 1 481. 768.2 3799 218. 6 470.5 26 4.9 1 38.2 670 ; 843. 2 0,-)79 704. 5 ! 2, 120. 1 1878... 2056 470.4 077.2 3709 202. 2 413. 3 23 3.2 26.2 668 803. 3 C4.50 63«1 675. 8 i 1, 920. 1879... 2048 i 455. 3 713.4 3039 107.0 397.0 29 4.2 1 36.1 '644 747.1 650. 5 1, 893. 5 1880... 2076 : 455. 9 900.8 3798 190. 1 501. 5 29 4.0 34. 6 1 629 783.0 0.-.32 6.50. 2,219.9 If 81... 2115 460.2 1,039.9 4016 206. 5 627. 5 36 4.2 37. 6 (i29 862.3 C79C 670.9 2, 667. 3 1882... 2239 477.2 1,131.7 4403 231. 747. 6 38 3.9 41. 3 1 622 929.8 7302 712.1 2, 850. 4 t EXTENSION OF THE CORPORATE EXISTENCE OF NATIONAL BANKS. Section 11 of the national-bank act of February 25, 18G3, p^o^^de.'3 that— Everj association formed pursuant to tlio provisions of this act may niako and nse a common seal, and shall have succession by the name designated in Iho articles of association, and for tho period limited therein, not, however, exceeding twenty years from the passage of this act. i!^^inety-eight national banks organized under this act were entitled, under their organization papers, to continue for nineteen years only, and the corporate existence of 307 other banks will expire ou or before the close of business on February 21, next. The Comptroller recommended in his last report — That an act be pa.ssed during tlio present session, authorizing any national bank, ■with the approval of the Comptroller, at any tiuje witliin two year.s ))rior to tlio date of tlie expiration of its corporate existence, to extend its period of succession for twenty years, by auKuidiug its articles of as.so(!ialiou. Tim bill may i>rf)vide that such amendments must bo autliori/.ed by the voles of sliari hohbrs owning notless than two-thirds of the capital of the association, tho amendment to bo certified to tlie Coini)trol]er of tho Currency, by tho juvsideiifc or cashier, voriiied by tiio seal of the association, and not to bo valid until the C;ro.ss, the l)anks ean Htill, under the present laws, renew their existence if tljey HO (lesiiei) and in the absence of proliibitory lej^islation many of them niidoiibtedly will, on tlie exiiiralion of their present charters, organize new associations, witli nearly the same sfoeldiolders as Ix-fore, and will then ap[)iy for and obtiiin from tlie Comp- trolhu- eertilieates authorizing them to continue business for twirnty years from tlie respective (bites of their new f)rganizati()n certificates. Such a course of jjiocedure will be iKM-ft'ctly legal, and, indeed, under the existing laws, the Comptroller has no discretionary power in the matter, Init must necessarily sanction the organization, or reorganization, of such associations as shall have conformed in all respects to the legal requirements. The passage, however, of a general act directly authorizing an extension of the cor- porate existence of associations whose charters are about to expire would, in many instances, relievo the banks from embarrassment. As the law now stands, if the Bharehohbnvs of an association are all agreed, the process of reorganization is simple ; but if any of the shareholders object to such reorganization, they are entitled to a com- plete liquidation of the bank's atiairs, and. to a, pro rata distril>ution of all its assets, including its surplus fund. In many instances executors and administrators of estates hold national-bank stock in trust; and while they might jirefer to retain their inter- ests in the association which issued the stock, tliey would perhaps have no authority to subscribe for stock iu the new organizations. While, therefore, the legislation asked for is not absolutely essential, yet its passage at an early day would be a great couveuieuce to many of the national banks, and especially so to the class last referred to. Some doubts having been expressed in reference to tlie right of the sharehoklers of national banks whose corporate existence had exi)ired to organize new associations with the same names as those wliich had just expired, the opinion of the Attorney-General was requested on this point, and ou the 23d of February, 1882, an opinion was given, in wbich he said : The present national banking laws do not forbid the stockholders of an expiring corporation from organizing a new banking association, nor from assuming the name of the old corporation, with the approval of the Comptroller of the Currency, and, in the absence of any prohibition to that elfect, no legal obstacle to the formation of a new association by such stockholders, and the adoj)tiou of the name of the old asso- ciation, would, in my opinion, exist. He also said : I do not know of anything to prevent a national banking association, upon the ex- piration of the period limited for its duration, from being converted into a State bank under the laws of the State, provided it has liquidated its aifairs agreeably to the laws of Congress ; nor after it has thus become a State bank, to prevent such bank from being converted back into a national banking association under section 5ir)4 of the Revised Statutes, and adopting the name of the expired corporation, with the ap- proval of the Comptroller of the Currency. To enable a State bank so to reconvert itself into a national banking association, authority from the State is not necessary.* In conformity with this opinion, fifty banks have been organized to succeed other institutions whose corporate existence has expired and which had previously given notice of liquidation. These banks have in most cases been organized with the same title as that of the banks which had been iilaced in liquidation aud by the same stockijolders. Soon after the assembling of the present Congress a bill was intro- duced for the extension of the corporate existence of national banks, embodying the recommendations of the Comptroller. It was subse- quently reported to the House from the committee with important amend- ments, iind, after continued discussion, passed on May oO, 1882, by a vote of 125 ro 07.t The bill was amended in the Senate in many particulars, and passed that body on June 22, 1882, by a vote of 31 to \A,X ami was subsequently passed in the House July l6, upon the report of the con- *Casey v. Galli, 94 U. S., G73. tCongressional Record No. 120, p. 25. t/iid.,No. 147, p. 32. REPORT OF THE SECRETARY OF THE TREASURY. 123 fcreiice committee, yeas 110, nays 79, not voting 101,* and received the approval of tiie President on July lU, 1SS2. , The act provides for the extension of tlie corporate existence of all national banks for twenty years by ainen(lii)f^ their articles of asso- ciation, -which amendment shall be anthorizcd by the consent in writ- Uig of sliareholders owniiiu" not less than two-thinls of the capital stock of tlie association. It provides tliat tlie Com])trolhn-, npon receipt of the api)lication of the bank and the amendment certilied by the as- sociation, shall canse a special exan)ination to be made to determine its condition, and authorizes him to grant his certiiicate for the proposed extension, if the condition of the association is found to be satisfactory. It provides that any shaieholder not assenting to the amendment of the articles of association may give notice in writing to the directors, witliin thirty days of the date of the certiticateof approval of the Comptroller, that he desires to withdraw from said association, in which case he is entitled in accordan(;e with the method provided in the act to receive from said association the value of the shares; that in the organization of any association intendeortrait of the late Tresident (xariield. The iaces of the notes of other denominations are similar to tliose previously issued, but all the new notes have, as a distinctive feature, the charter number engraved six different times in the border, so that the name of the bank issuing the note may be ascei'tained fi(nii fragments thereof. The charter number of each bank is also printed cons])icuously in the center of the reverse or back of each note. Tlu^ brown and green colors of the back of the new notes are said to be a l)rotection against the arts of the photographer and counterfeiter, and »Ibid., July 11, 16S2. 124 PAPERS ACCOMPANYING THE aro printed upon (lie now (li.stiiictivc paper wliicli lias given general satisfaction. Under the act of July 12, 1882, 30 l>anlcs have already extended their corporate existence, and nearly all of the banks which were organized under the act of February 25, 1803, have already given notice of their intention to take advantage of the act. The total number of banks M'hose cori)()rate existence either has expired, or would have expired if no action had been taken by their stockholders, is 8G, having a cai)ital of $18,877,500, and surplus of $0,904,854, and circulation of $12,840,010. Of these 50 were ])laced in liquidation by their stockholders ])reviou.s to the date of the expiration of their corporate existence, and all but two before the i)assage of the act of July 12, 1882. The stockholders of 45 of these liquidating banks organized new associations with the same name; those of foar organized new associations with different names, and those of one did not perfect any new organization. The corporate existence of six of the SG banks first mentioned expired * without having been previously put into liquidation. The united stock- holders of three of these banks perfected new organizations with the same name, and in the case of two others a portion of the stockholders organized new associations with different names, while those of one took no action. The stockholders of the remaining 30 of the 80 banks men- tioned, which are all of the banks whose corporate existence has ex- pired since the passage of the act of July 12, 1882, have extended under this act. The number of national banks yet in operation at the date of this re- port, organized under the act of February 25, 1803, is 3U7, and their cor- porate existence will expire on the following dates : Date. December, 1882 January, 188:!.. February , 1883. No. of banks. 10 3 294 Capital. $1, 420, 000 400, 000 60, 793, 250 Circulation. $1, 278, 000 360, 000 53, 222, 170 Section 8 of the act of June 3, 1864, provides that each association — Shall haA^o power to adopt a corporate seal, and shall have succession by the name designated in its organization certificate, for the period of twenty years from its or- ganization, unless sooner dissolved accordiug to the provisions of its articles of asso- ciation, or by the act of its shareholders owning two-thirds of its stock, or unless the franchise shall be forfeited by a violation of this act. Under the previous act, banking associations were entitled to succes- sion for twenty years from the date of the passage of the law ,• but under the act of 1804, each association was entitled to an existence of twenty years from the date of its organization certificate. The Merchants' Na- tional Bank of Boston was the first association to organize under the act of June 3, 18(54, and its organization was followed by the conversion of 28 other banks in the city of Boston and 22 in the city of Philadel- phia during the same year, and by the conversion of 38 banks in the city of NcAV York during the year 1805. The i)rovisions of the act of July 12, 1882, relating to the extension of the corporate existence of national banking associations, have proved to be well adapted to the purpose for which they were intended. The}' are simple in form and appear to be readily understood by the banks. * These baiilcs were, however, revived for purpose of liquidation by section 7 of the act of July 12, 18b2. REPORT OF THE SECRETARY OF THE TREASURY. 125 The whole number of banks now in operation whieli or<]^anizcd under the act of June 3, 1801, wliose i)eriods of succession will expire during each year previous to 1900 is 1008, with capital and circulation as follows: Years. Ko. of bauks. CapitaL Circulation" J 884 . 18S0 . 18^7. 18S8 1889. 1890. 1801 . 1892 , 1893 . 1894 . 1895 , 1896 1897 . 1898. 1899, Totals. 249 734 19 6 11 H 03 lor. i 105 ' 39 i t;8 83 L'4 'J9 43 $89, Cll, 570 188, 280, 715 2, 715, 300 1, 100, OOO 1, 300, 000 600, 000 9, -JOO, 500 13.293,900 13, 035, 000 4, 740, iJi'O 7, 688, 000 10, 507, 000 2, 018, .800 3, 019, 000 2, 649. 000 4, 930, 000 354, 845, 985 $00,520, 825 125, 035, 4.i0 1, 758, 250 970, 500 719, 100 540, OdO 6,419,950 9, 180, 280 8,441.270 3, 849, 400 5, 804, 1,10 7, 740, 180 l,.'i.52, 500 2, 151, 000 2, 208, 6(10 3, 910, 901 241, 474, 355 One advantage in extending the corjiorate existence of associations under this law, over the only method jjossible previous to its passage, is in the retention of the surplus fund. Thus, in the case of the hity-four banks which have been liquidated, either under sections 5220 and 5221, or under section 7 of the act of July 12, 1882, by their stockholders, in order to organize new associa- tions, the surplus was reduced from 85,510,007 to $2,550,252. The aggregate surplus of the thirty banks extending their existence under the act of July 12, 1882, has slightly increased. COIN A^TD PArER CIRCULATION OF THE UNITED STATES. On another page, tables similar to those which have been given in the three preceding annual reports are iml)lislied, exhibiting the amounts of gold and silver coin and pa])er currency which were in the Treasury, in the banks, and in the hands of the ])eoj)le at the time of the resump- tion of specie payments, and on the 1st of Ifovember of each year since that date. The total amount of the circulating medium of the country ou No- vember 1 is given as follows : Treasury notes outstanding $340, 681, 016 National bank notes outstanding 302, 727, 747 Gold in the Treasury, less certificates held by the banks . . 148, 435, 473 Standard silver dollars in tlrtj Treasury 92, 414, 977 Subsidary silver coin and silver bullion in the Treasury. . 30, 701, 985 Coin in the national banks 102, 302, 003 Coin in State and savings banks 17, 892, 500 Estimated amount of coin held by the people 387, 502, 793 Total 1, 488, 838, 554 The estimated total cinrcncy of orts of coin, in excess of exports, together with the ])roducts of the mines, have filled the channels of circulation. The circulation during the past year has undoubtedly been nuich larger than at any period since the organization of the government. The per cajuta of circulation is larger, and it is j^robable that its proportion to wealth is greater than at any previous time. It is undouI)tedly large enough to su]i})ly the legitimate demands of business; and it is ])robable that the addition to the coin of the country, since the resumption of specie payments, has been in advance of sucli demands. There has been no complaint of scarcity of money which cannot i)robably be traced to those engaged in speculative business, and however great the aggre- gate of the circulating medium may become, complaints of scarcity will always be heard from those who desire a rise in prices. Ko other nation economises the use of its circulating medium as does this, and it is ])robable that but a slight annual increase in the amount of national bank notes outstanding will hereafter be required, provided that the exports of coin are not greatly in excess of imports, and the receipts from our increasing revenue, in excess of the rennk circulation, which it is probable will arise as these bonds are paid. The systems of banking in operation previous to the establishment of the national banking system, and particularly those known as the "charter" and "safety-fund" systems, have been brought forward for discussion, and opinions have been exj^ressed that under the general restrictions of the national banking system, or with increased limita- tions, it would be advisable for Congress to authorize the issue of circu- lating notes based upon the capital, the assets, and the individual lia- bility of stockljolders, without requiring, as heretofore, the actual deposit of securities in the Treasury for such issues. It has been suggested if the circulation issued be considerably less than the actual capital paid up, and if tlie bill holder be entitled to a first lieu upon all the assets of the bank, and to the amount which maybe collected upon the individual liability of the shareholder, that the people would be abundantly secure from any loss upon the circulation so issued by the banks. As supple- mentary to this proposition, it has also been suggested that the banks be required to hold not less than the minimum amount of bonds now provided by law, which is estimated not to exceed 100 millions of dol- lars, and that in addition they be required to deposit ten per cent, upon their capital in coin with the Treasurer as a safety fund, and that they shall continue to receive each other's notes in payment of obligations due them. It is not probable that the stockholders of those banks which do not desire to issue circulation, would be Vvilliug to continue business upon the condition that they should contribute so large an amount to a fund intended to insure the public against the issues of fraudulent or badly-managed institutions. It is suggested, however, that the propo- sition would be improved if banks desiring to issue circulation be re- quired to contribute to such a fund a percentage upon the circulation issued, instead of a percentage upon capital. If this fund, amounting to, say, 30 millions, be held in TJnited States three per cent, bonds instead of coin, and the losses from the circulation of insolvent banks be small, the interest, in the course of a few years, if retained as proposed, would amount to a considerable sum. The large fund on deposit in the Treas- ury for the purpose of redeeming the notes of national banks retiring cir- culation now amounts to more than 38 millions. If it should be thought expedient to invest a considerable portion of this fund in three per cents, thus releasing it from the Treasury, the income might also be added to the safety fund. The gain resulting from the failure on the part of the pub- lic, to present for redemption national bank notes which are being retired by an act of the present Congress, accrues to the benefit of the govern- ment, and it is estimated will amount to not less than from three to five millions during each twenty years. This gain might also properly be included in the proposed safety fund, and in the course of a few years these funds, by reinvestment, would increase to so large an amount, that the securities required to be deposited by the banks could be largely diminished. The foregoing propositions have no precedents in any form of general legislation heretofore known in this country. Circulation authorized upon similar plans has heretofore been issued to banks which have been specially chartered, and not to banks organized under a general law. is^earlj'- every State in the Union has had its experience in authorizing REPORT OF THE SECRETARY OF THE TREASURY. 129 the issue of bank notes, based exclusively upon the capital and assets of the' banks issuing the same; and many States have required the ac- cumulation of a safety fund for the protection of the public from un- secured and uncurrent bauk notes. In most cases circulation was authorized to be issued by such banks equal to the capital ; sometimes the amount issued was less ; sometimes it largely exceeded the capital. The Sufiblk system in the New England States, which was perhaps as good a system as could bo desired to protect a bank circulation not secured by bonds, by a prompt and vigorous redemption of the notes, kept them in a healthy state, but the annual losses upon bank circula- tion, even in the New England States, up to the time of the organiza- tion of the national banking system, were by no means inconsiderable. Notwithstanding the restrictions then existing, banks of circulation were organized with but little capital paid in, and notes, either worthless or irredeemable, were placed in circulation atpoints remote from the places of issue. In New York under the safety fund system, and previous thereto, losses to the bill holders frequently occurred, and in other States, almost without exception, such losses were large, and have usually been estimated to have been, in the aggregate, not less than five per cent, annually of the whole amount outstanding. It is true that there are in England, Ireland, and Scotland 119 private and joint-stock banks, with many branches, which are authorized to issue circulation based upon their capital, but their authorized circulation is only about 100 millions of dollars. Thirty-five banks, with numerous branches in the Dominion of Canada, are also authorized to issue circulation in a similar manner, but the total circulation of these banks does not exceed 35 millions. Most of these are banks which have been in existence for many years, and were organized under special charters, and the liability of the shareholders in many cases, particularly in Great Britain, is unlimited. No State or nation has ever authorized the organization of banks under a general banking law, with the right to issue circulating notes proportionate to capital, except under a restriction requiring the de- posit with the government of securities as the basis for the issue of such notes. Banks in this and in other countries, which have been authorized to issue circulating notes without security, have been those organized under special charters, and in granting such charters the means and character of the applicants and proposed stockholders are subject to investigation by committees and legislators. Propositions for the issue of circulation without the fullest security cannot be too carefully con- sidered. The security of the national-bank note under the present sys- tem is perfect. In twenty years not a single bank note has failed to be redeemed at its face value. Banks organized under a general law, located so often at great distances from commercial centers, render a security for circulation of uniform and positive value an absolute ne- cessity. It is evident that the authorizing of nuire than tliree thousand banks, under a general or free banking law, to issue circulation without security, located in a country having such extensive territory' as our own, would result disastrously. Under the present banking system it is diflicult in all cases to pre- vent the organization of banks with deticient capital, but if such banks are organized, at least no injury can hai)i)en from the issue of their cir- culating notes. The failure to pay the capital is almost certain soon to bo ascertained, when such associations can bo summarily closed, or required to make good the deficiency. If under the proposed system, » banks should be organized with deticient capital and receive circula- 9Ab 130 PAPERS ACCOMPANYING THE tion, an inoparablc injury would be acconijdislied l)eforo tlie worth- less cliarac-tcr of the assets could be ascertained. It would be practi- cally impossible for any government officer to prevent unpiincipled jien from organizing and controlling such associations for the purpose of beneti ting- themselves at the expense of the holders of their circu- lating notes. There are in this country more than a thousand State banks and trust companies, and nearly thirty-four hundred ])rivate bankers. Tlie temp- tation would be strong, on the part of these corporations and individ- uals, to organize banks of circulation, if circulation could be obtained without depositing bonds as security therefor. The value of the different notes issued would depend upon the management of the l)ank and char- acter and standing of the different stockholders. Many notes would be at a discount in exchange for coin, and the failure of one bank to pay its notes, would throw discredit upon the whole volume of bank circula- tion and the system under which such banks were organized. If the issue of circulation were confined to a few banks, organized by men of character, integrity, and means, such associations would be character- ized as a monopoly. Even if corporations are organized upon the con- dition that all should contribute a percentage of the circulation to a safety fnnd for the protection of the aggregate circulation, there is danger that the issues of fraudulent or badly-managed banks would soon consume the safety fund, and it is evident that the circulation would be paid, if at all, at the exjiense of tiie depositor, who would be, in some cases, stripped of the dividends which under existing laws are distributed to unfortunate creditors. Under the national banking system, it is provided that the circula- tion issued shall first be paid from the proceeds of the bonds deposited to secure the same. The proceeds of the remaining assets are distrib- uted pro rata among the creditors. Eighty-seven national banks, in all having an aggregate capital of $19,202,000, have failed during the last twenty years, and since the organization of the system. The amount of circulation to which these banks were entitled under existing laws, namely, ninety per cent, upon capital, is $17,330,340, which is a less amount in the aggregate than the amount of dividends which will have been paid to the creditors of these insolvent institutions. Forty-four of these banks, having a capital of $10,094,000, would each have paid in full their circulation, if ninety per cent, had been issued upon their capital, from the proceeds of their assets, and would also have paid small dividends to their depositors. The remaining forty-three insol- v^ent banks, having a capital of $9,168,60(5, would in the aggregate have paid, it is estimated, seventy-five per cent, only, from the avails of their assets upon the circulation authorized; entailing a loss upon the bill-holders of over $2,000,000, and leaving no assets whatever for the benefit of the depositors, whose claims are $9,043,605, and upon which dividends will be paid averaging, it is estimated, sixty-eight per cent. While these forty-three banks would in the aggregate have paid seventy- five per cent, to the bill-holders, about one-half of this number would have i)aid on the average from the avails of their assets not exceeding fifty per cent, of the amount of their circulating notes. The losses which the holders of the notes of insolvent banks would have experienced under the national banking system, if securities had not been required to have been deposited, would have been small in com- parison with the whole circulation. But the fact that such losses would have occurred in so many banks, and that, too, at the expense of the de- positors under a system with so many safeguards and restrictions, is REPORT OF THE SECRETARY OF THE TREASURY. 131 an ar<]fiinient from experience against any projiosition to issne notes for circulation under any oeneral system, without requiring sutticieut secu- rity, wbich cannot easily be answered. If tlie public debt is to be i)ind hereafter as rapidly as during the past three years, all of the interest-bearing bonds will soon be surrendered, and canceled, and there is danger that the bank circulation will be so rap- idly retired as to cause a contj-action of the currency which will affect the price of commodities and create embarrassments in business; but there is now no such pressing necessity for a speedy i)ayment of the public debt as there is for the reduction of the redundant revenue. It is be- lieved that Congress will soon provide for so large a reduction of the revenue that a sufficient amount of bonds will remain for the security of the bank circulation. The national banks held, on November 1, bonds for circulation, not paj'able at the pleasure of the government, as follows : Four and one-half per cent, bonds §3:5, 754, 650 Pacilic Kaihvay sixes 3, 52G, UllO Four i>er cent, bonds 104,'J17,500 Total 14-^,198,150 None of these bonds will be payable until nine years hence, in the year 1891. Tlie total amount of bonds outstanding, hchl by the banks and by the people, which are available for circulation, and not payable at the pleasure of the government, and cannot be redeemed except by purchase in the market, is as follows : Four per cents., payable July 1, 1907 $7;;3, 929, 600 Four and one-half per cents., payable September 1, 1891 250,000,000 Pacific Eailway sixes, payable ^-epteniber 1, 1895 $;{, 002, 000 Pacilic Railway sixes, payable Sei)tfniber 1, 1896 8,000,000 Paciiic Kailway sixes, payable Sei»t('niber 1, 1S97 9,712,000 Pacific Railway sixes, ])ayal)le Septeniber 1, 1898 29, :58:!, 000 Paciiic Railway sixes, payable SeptenilxT 1, 1899 *14, 520,512 64, 623, 512 1,053, 55.'?, 112 These bonds, including the Pacific sixes, amount to nearly 1,054: millions, and are abundantly sntlicient as a basis for banking during the next twenty years. In fact, oiuvfourth of this debt, exclusive of the 142 millions held by the banks, is sulllcient to supply a basis for the bank notes now outstanding. The law provides that any bank may reduce the amount of its bonds held as security for circulation, to an amount not less than $50,000, and, by an act of the present Congres.s, banks having a capital of $150,000 or less can reduce their bonds to a mini- mum of one-fourth of their capital. The aggregate anmnnt of baidc cir- culation outstanding has not bcsen reduced for a series of years, as may be seen from the following table, which gives the total amount of the national bank circulation outstanding on the 1st of June and 1st of .No- vember of each year since 1873 : Date, NatioTinl-bank uotos. Date. Nnlioiial-biink uotcs. Jiimi 1, 1874 $3.'-il,8:.0,.'-.02 3r..l, .1 -..5, 473 ;>:hi, oii.'i, <.ao ;!iit, (liifi, lii'j :)■'.'!, 988, (IS."! ;!'2i), .'i:t!i,4ii ;u.^ is.'i, 78,'! 354. 151,718 35SI, 875, 334 1 November 1, 1874 ............ $354, 077, 246 348, 21(5, «H)3 323,241 3U8 Jmii- 1, 1K7.5 NoVtMllIXT 1, 187.'> JiiiiM 1, 187ti Jiiic ], l,<77 Juno 1, IS7S >'referred to the propositions for a large increase in legal-tender notes — if such issues were practicable — or to the issue of bank circulation without a deposit of bond security under restrictions however stringent. If, however, it shall be the policy of the government to accumulate the revenue instead of largely reducing it, thus rendering it necessary to continue the rapid reduction of the debt even if it is to be purchased at the x)rice fixed by the holders, it is of the greatest importance that the basis upon which the bank currency is issued should be enlarged so as to include some other form of security besides government credit. The national banking system has been in operation nearly twenty years, and may be said to have not yet attained its majority. It is part of the machinery of the government. Its advantages have been well tested in good and in evil times, and during the searching and acrimo- nious discussions of the last ten years, the final result of which has been the legislation of the present Congress authorizing the extension of the period of succession of each one of these institutions for twenty years from the date of the expiration of its corporate existence. The Comp- troller, while he believes it is for the best interests of the government to continue the national banking system, subject to such improvements as shall hereafter be authorized by Congress, is after all of opinion that it would be better that the circulation shouhl diminish in volume, than that the issue should be increased at the risk of placing in the hands of the poorer classes uncnrrent and irredeemable circulation, or of giv- ing to associations organized by unscrupulous men an opportunity to use an excellent system of banking for bad i)urposes. The national banking system was established with a view to up- root other and evil systems, and nothing but the heroic legislation of taxing bad issues of circulation out of existence, which was passed in the interests of the government during a great war, could have ac- com]>lished this purpose. By increasing the rate of issue upon the bonds i)ledged by the banks as security for their circulation, or by reducing the tax upon bank notes, or by a proper refunding of the debt, REPOET OF THE SECRETARY OP THE TREASURY. 135 and reducing the revenue derived in many instances from unjust and burdensome taxation, the system may continue for twenty-five years, or until the maturity of the four per cents ; but it is far better that the right to issue notes shouhl be gradually' discoutinued than tliat so good a system should be used to bring again upon the country the very evils which were experienced at the time of its organization, twenty years ago. DISTRIBUTION OF COIN AND TAPER CURRENCY. In the reports of the Comptroller fur the three years ])receding 18S5, tables have been given showing tlie amount of coin and currency, and its distribution in the Treasury, in the banks, and in the hands of the people on January 1, 1879, the date of the resum]>tion of specie pay- ments, and on November 1 of that and eacli succeeding year. These tables are again presented, the amounts on November 1, 1882, having been added. From November 1, 1881, to November 1, 1882, the production of gold by the mines of the United States is estimated at $13,359,021, and the amount of gold exported from the country, in excess .of the amount im- ported, has been $36,122,536. The difference, $7,236,485, is the increase during the year. The Director of the ]\Iint estimates that $2,700,000 of this amount has been used in the arts, leaving $4,536,485 as the increase in the stock of gold remaining in the country and available for circula- tion. The total excess of imports of gold over ex])orts, from the date of resumption to November 1, 1882, has been $161,311,578, and the total gold i)roduct of the mines of the United States for the same period is estimated to have been $147,509,021. This is the first year sinc^e 1879 during which the exportation of gold has exceeded the imi)ortation. During the last two months (September and October, ]4;82) the imports Lave, however, slightly exceeded the exports. The amount of standard silver dollars coined during the year has been $27,657,175, and the total amount coined up to November 1, 1882, since the passage of the law of February 28, 1878, authorizing their coinage, has been $128,329,880. The following table shows the amount of coin and currency in the country on Januarv 1, 1879, and on November 1 of the years 1879, 1880, 1881, and 1882 : Jarmary 1, i«7a. NoveniLer 1, 1879. Novoniber 1, 1880. Novpnibor 1, 1881. November 1, 1882. $27P, 310,120 100,573,803 340,081,010 323,791,074 $3r.r.,6Si,r.32 120,009,537 340,681,011) 337,181,418 ^53, 882, 092 158,320,911 340,081,010 343,8;t4, 107 $502, 5fiS, 971 ISO, 037, 365 340,081.010 300, 344, 250 $.567,105,450 212,324,335 LeKal-tt'iuler notes 340,081.010 302, 727, 747 Totals 1,055,350,019 1, 165. 553, 503 \1, 302, 718, 720 1 1,455,031,002 1, 488, 838, 554 There has been no change in the aggregate of legaltondor notes out- standing, which remains as lixed by the act of May 31, 1878. National- bank notes have increased $2,383,497 during the year ; the amounts of gold and silver coin have increased $4,536,485 and $26,280,970, respec- tively, making a total increase in coin and currency of $33,206,952. The table below gives the portion of coin and cunency held by the United States Treasury, and by the national and State banks. The amounts in the Treasury are ior the same dates as in the preceding * Estimate of Diiector of tbe Mint, -which includes bullion in process of coinage. 136 PAPERS ACCOMPANYING THE table, and those in tlie national banks are ior the dates of the bank re- turns nearest thereto, viz, January 1 and October 2, 3879, October 1, 1880 and 1881, and October 3, 1882. The amounts in the State banks, trust companies, and savings banks have been comjnled in this office from official reports for the nearest obtainable dates. January 1, 1879. November 1, 1879. November 1, 1880. November 1, 1881. November 1, 1882. GOLD. In tbo Treasury, less certiii- cati's .$112, 703, 342 35, 039, 201 10, 937, 812 $156, 907, 986 37, 187, 238 12, 171, 292 $133, 679, 349 102, 851, 032 17, 102, 130 $167 781 909 «i4fi i-ir, 475 lu national banks, inclading 107 222 169 oi 197 no>i Zn State banks, including cer- 19, 901, 491 17, 892, 500 Total gold 158, 680, 355 206, 266, 516 253, 632, 511 294, 905, 569 260, 455, 297 SILVER. In tbe Treasury, standard .sil- ver dollars _. In the Treasury, bullion. .'. In tbe Treasury, fractional coin . 17, 249, 740 9, 121, 417 6,048,194 6, 460, 357 32, 115, 073 3, 824, 931 17, 854, 327 4, 980, 492 47, 156, 588 6, 185, 000 24, 635, 561 6, 495. 477 66, 576, 378 3, 424, 575 25, 984, 687 7, 112, 567 92, 414 977 4, 012, 503 ■ 26,749,482 8, 234, 739 Total silver 38, 879, 908 58, 780, 823 84, 472, 626 103, 098, 207 131.411.701 CURRENCY. In the Treasury, less certifl- cates 44, 425, 655 126, 491, 720 25, 944, 485 14, 513, 779 21, 711, 376 118, 546, 369 25, 555, 280 15. 880. 921 18, 221, 826 86, 439, 925 25, 828, 794 17, 072, 680 22, 774, 830 77, 630, 917 27, 391, 317 11, 782, 243 26, 224, 248 92, 549, 767 27, 086, 482 14, 724, 978 In n.itional banks, including certificates In State banks, including cer- 211, 375, 639 181, 693, 946 147,563,225 139,579,307 160, 580, 475 Grand totals 408, 935, 902 446, 741, 285 485, 668, 362 537, 583, 083 552, 447, 473 If the amounts of gold and silver coin and of currency in the above table — that is, the amounts of these items in the Treasury and the banks — be deducted in each case from the amounts of gold and silver coin and currency in the country, as shown in the first table, the remainder will be, approximately, the amounts which are in the hands of the people, as follows: January 1, 1879. November 1, 1879. November 1, 1880. November 1, 1881. November 1, 1882. Gold $119, 629, 771 67, 693, 895 459, 097, 051 $149,415,016 67, 228, 714 502, 168, 488 $200, 250, 181 73, 848, 285 542, 951, 898 $267, 663, 402 82, 939, 158 567, 445, 959 $306, 650, 159 Silver 80, 912, 634 548, 828, 288 Totals 646,420,717 718, 812, 218 817, 050, 364 918, 048, 519 936, 391, 081 The gold in the Treasury, including bullion in the process of coinage, has decreased during the year $19,340,436, and in the banks $15,103,846. The paper currencj' in the Treasury has increased 83,449,418, and in the banks $17,557,650. The increase of gold outside of the Treasury and the banks has been $38,986,757, and the decrease of paper currency, exclusive of silver certificates, $18,617,671. In the foregoing tables the silver certificates issued by the Treasury have not been included, but the standard silver dollars held for their redemption on presentation REPORT OF THE SECRETARY OF THE TREASURY. 137 form a portion of the silver coin in the Treasury. The silver certificates in the hands of the people and the banks, at dates corresponding -with. those given in the preceding tables, were as follows: January 1, 1879 $413,360 November 1, 1879 1,004,370 November 1, 18b0 19,780,240 November 1, 1881 r)8,838,770 November 1. 1882 (55.620.450 It will be seen that the amount of these certificates in circulation has increased only $6,781,080 during the past year, and if this whole increase were held outside of the banks, it would not offset the decrease of $18,617,071 in other forms of paper currencj^ in the hands of the people, for which coin has been substituted. As before stated, the total amount of standard silver dollars coined up to November 1, 1882, was $128,329,880, of which, as shown in one of the foregoing tables, $92,414,977 was then in the Treasury, al- though an amount equal to $65,620,450 was represented by certificates in the hands of the people and the banks, leaving $26,794,527 belonging to the Treasury. Of the $128,329,880 coined, $35,914,903 was therefore circulating outside of the Treasury in the form of coin, and $65,620,450 in the form of certificates. The remainder of the silver, 883,994,455, con- sisted of subsidiary coin, trade dollars, and bullion, of which $30,761,935 was in the Treasury, and $53,232,520 w^as in use in place of the paper fractional currency for which it was substituted, as against $55,955,398 similarly employed on November 1, 1881. The increase of gold and sil- ver coin and paper currency, outside of the Treasury, since the date of resumption is thus estimated to have been $289,964,414, and the increase during the year ending November 1, 818,336,612; or, if the amount of silver certificates in circulation be added, the total increase since re- sumption would be $355,172,504, and during the past year, $25,118,292. ILLEaAL CERTIFICATION OF CHECKS. The i)ractice of certifying checks had been in use for more than thirty years, previous to the organization of the national banking system, and at least twenty years i)revious to the establishment of the clearing house. In the beginning, this certification was not considered as legally' bind- ing the bank to pay the check. For many years it had little significa- tion other than as giving clerical information, and the amount of the check, when certified, was not charged to the account of the drawer until it was afterwards presented for payment. Subsequently, after the year 1854, when the clearing house was organized, it became the custom to present checks, and also bills receivable or acceptances on the day of maturity at the bank where they were made payable for certification. The bills and checks which were certified, Avere then returned to the bank messenger who had presented them, and on the following morning were transmitted to the clearing house with other exchanges. The certification consisted of tlie signature of the i)aj'ing teller, written across the face of the paper inside of a stamp bearing the date of the certification and the title of the bank. This Ibrm of certification was regarded as a legal obligation of the bank, and the amount of the check was charged to the account of the drawer at the date of the certification. If the maker or acceptor of notes or bills was in good standing at the bank at which it was made payable, such bills were not unfrequently certified, even if the full amount was not to the credit of the account to 138 PAPERS ACCOMPANYING THE whicli it waR subsequently charged. Bills or cliecks are usually pre- sented for certilication during the first business hours of tlje day, and the deposits of merchants and brokers are not usually made until the later hours of the day. The oflicers of the l)ank, who know the usual habits of their dealers in making their deposits, as w(;ll as their respon- sibility, do not hesitate to assume the payment of checks or drafts which they feel assured will be ]n-ovided for before the exchanges of the clearing house are received. If these certifications were confined to mercantile and commercial transactions, little objection would have been raised to the practice, and it is not probable that tliere would have been any legislation prohibiting it. It would certainly seem to be ad- visable to leave to the discretion of a bank the right to accept bills drawn by corres])on dents at a distance, or by merchants at home, whose standing is beyond question, and whose deficiency in the account is known to arise from delay in receiving remittances or making deposits. A refusal to certify or pay under such circumstances would be likely to subject the bank to the loss of the accounts of its most valuable dealers. Such legitimate certifications in mercantile or commercial transactions are for compaiatively small amounts, and would not attract attention as a large item in the abstracts of the condition of the banks in the city of New York, to which this practice is chiefly confined. The large use of these instruments by which the banks in efi'ect guarantee the contracts of stock-brokers with their customers has grown to be a great abuse during the past few years, and cannot be de- fended ujion any correct principle of banking. This business is chiefly done by nine or ten national banks, although other banks, organized under State laws as well as national, certify similar checks for consid- erable amounts. Section 5208 of the Eevised Statutes makes it — Unlawful for any officer, clerk or agent of any national banking association to cer- tify any check drawn upon the association, unless the person or company draw- ing the check has on deposit with the association, at the time such check is certified, an amount of money equal to the amount specified in such check. There are many methods of evading this law. If certification is required in excess of the amount on deposit a demand note is made, and the amount thereof is entered to the credit of the broker desiring the accommodation; or his check upon another bank is received with- out certification, and a temporaiy credit entered upon his account, and these temporary credits are canceled at the close of business when the account has been made good. Brokers asking for such over-certifica- tions keep large balances to their credit, on which the bank pays no interest. Certification is made without charge, the bank recei\ing its compensation in tlie large deposits which s1:and to the credit of the broker. The banks justify the practice upon the ground that it is of great convenience to the community, and that stock transactions, par- ticularly, could not be carried on without some such arrangement. They insist that for many years only trifling losses have arisen from the practice — very much less than the losses incurred by them in ordinary discounts. Section 13 of the act of July 12, 1882, provides : That any officer, clerk, or agent of any national-banking association who shall willfully violate the provisions of an act entitled "An act in reference to certifying checks by national banks," approved March third, eighteen hundred and sjxry-uine, bein^ section lifty-two hundred and eight of the Eevised Statutes of the United "Stutes, or who shall resort to any device, or receive any fictitious obligation, direct or collat- eral, in order to evade the provisions thereof, oV who shall certify cliecks before the EEPORT OF THE SECRETARY OF THE TREASURY. 139 amount thereof shall have been regularly entered to the credit of the dealer upon the hooks of the banking association, shall he defnieared a letter containing the following questions, which, at his request, was submitted by the Secretary to the Attorney-General for his opinion : Has a national bank the legal right to accept cheeks drawn upon it, unless the drawer has the amount stated in the check a<:tually on deposit in the bankf If a national bank has the power to make such an acceptance, would such accept- ance at a time when the money was not on deposit to the credit of the drawer be a liability to it for money borrowed, and as such be required to be limited to one-t-enth of the paid-in capital of tlie bank, as provided by section 5200 United States Revised Statutes? If a national bank has the ])ower to aocejit such checks equal in amount in anyone case to one-tenth of its capital, would the accejitiince of any number of checks to an amount exceeding, in the aggregate, the amount of its paid-in capital be in violation of section 5202 United States Revised Statutes i The violation of section 5208, Kevised Statutes, subjected a national bank to the api)ointment of a receiver. The law was not mandatory, ami the ajipointment was left to the judgment and discretion of the Comp- troller. The proper ground for the ai)i)ointment of areceiverisinsolvency, and it may be qiu^stionc^d whether the responsibility for taking a bank from the control of its owners should be exercised in other cases than insolvency until the question of violation of law shnll have been brought before the courts for *'o a])poinlments of receivers have ever been made since the organization of tlie national banking system, excejit in cases of insolvency, although two large banks wliicli had previously been foun 246, 138, 850 > $110, 000, 000 240, 000, 000 250, 000, 000 250, 000, 000 250, 000, 000 250, 000, 000 250, 000, 000 $98, 850, 000 679,878,110 739, 347, 800 739, 347, 800 739, 3 19, 350 739, 353, 350 $1, 108, 1, 206, 1, 619, 2, 063, 2, 107, 1, 986, 1,888, 1, 780, 1, 695, 1, 724, 1, 707, 1, 696, 1, 696, 1, 780, 1, 887, 1, 709, 1, 625, 310, 191 916, 904 644,154 110, 200 930, 600 521,600 133, 750 451. 100 8(^5. 950 2.52, 750 998, 300 685,450 888, 500 735, 6.50 716,110 993, 100 507, 750 1,449,810,400 1, 404, 080, 200 The operations of the Treasury Department for a series of years have largely reduced the amount of interest receivable by the national banks on the bonds held by them. During the present year, ending Novem- ber 1, the three and one-half per cents have been reduced more than two hundred millions ($200,769,200), and $179,685,550 of three per cents have been deposited in place thereof. Sixteen years ago the banks had on deposit as security for cireula- tion, 327 millions in United States bonds, of which amount 241 millions bore interest at six per cent, and SQ millions at five per cent. These *The Navy pension fund, amounting to $14,000,000 in three per cent.s, the interest upon which is applied to the payment of naval pensions exclusively, is not included in the table. REPORT OF THE SECRETARY OF THE TREASURY. 143 bonds have now entirely disappeared from the list of securities held by the national banks. The average rate of interest now paid by the United States on the bonds deposited as security for circulating notes is about 3.5 per cent, upon their par value; but is equal to about 3.26 per cent, only of the current market value of the bonds. The banks now hold 33 millions of four and one-halfs; nearly 105 millions of fours; 40 millions of three and one-half per cents converted from five and six per cents, and 179 millions of three i^er cents, which have been refunded from three and one-half per cents, during the present year. This will be seen from the following table, which exhibits the amount and classes of United States bonds owned by the banks, including those jiledged as security for circulation and for jiublic deposits on the first day of July in each year since 18G5, and upon November 1 of the present year. United States bonds held as security for circulation. Date. 44 per cent, bonds. 4 per cent bonds. Total. United States bonds luild for otluT purposes at nearest date. Grand total. July 1. 1865 July 1, 1866 July 1, 1867 July 1, 1868 July 1, 1869 July 1, 1870 July 1, 1871 July 1, 1872 July 1, 1873 July 1, 1874 July 1, 1875 July 1, 1876 July 1, 1877 July 1, 1878 July 1, 1879 July 1, 1880 July 1, 1881 July 1, 1882 Nov. 1, 1882 $44, 372, 250 48, 448, 650 $19, 162, 000 3.'"), or,6, 5r,0i 118, 538, 950 37, 760, 950, 126, 076. 3U0 32, 600, 500| 93, 637, 700 $235, 327, 340, 341, 342, 342, 359, 380, 390, 301, 376, 341, 338, 349, 354, 361, 360, 100 $155, 350 121, , 550i 25, , 200i 25, , 500: 26, 32, 752, 650 885, 440, 410 171 314 394 713, 516, 254, 652, 488, 400 63, 750 ,600 ,400 ,600 ,050 97, 429, 800: 33,754,650 104,917,500 785, 750 $391, 152,950 448, 002,650 424, 922, .500 422. 102,000 397. 980,600 386, 450,800: 399, 8O8,200l 412, 724,400i 416, 347, 100, 416, 91)0,200 403, 170, 300l 3H6, 315,050! 386, 8.50,900 418. 603, ,520 430, 831,31)0 404, 849,950 424, 744,850 463,300 610, 150 418,400 953. 600 259. 150 336, 350 308, 900 134, 150 518, 300 214, 700 565, 050 028, 6.50 397. 300 858, 120 4>sJ, 350 338, 350 812,700; 43,122,550 400,935,250 964,650 37,563,750 396,526,400 The banks also held $3,526,000 of Pacific Enilroad six per cents, and $15,000 of five per cents upon which interest has ceased. AMOUNT OF UNITED STATES BONDS HELD BY THE NATIONAL BANKS, BY BANKS ORGANIZED UNDER STATE LAWS, AND BY PRIVATE BANKERS. The amounts of United States bonds held by the national banks on November 1, 1880, 1881, and 1882, were, respectively, $403,360,350, $426,120,950, and $396,528,400. In the following table these amounts have been combined with the average amount of United States bonds held by the sa^^ngs banks, State banks and trust companies, and private bankers of the country during the six months ending May 31 of the same years : 1880. 1881. National banks Savinsis banks State banks and trust companies. Private bankers Totals. $403, 389, 350 189,1.87.816 24, 498, 604 14, 366, 684 031,422,454 $426, 120, 9.50 214,880. 178 21,650,668 16, 670, 494 679, 3.'2, 290 $395, 057. .500 242, 028, 782 23,211.430 14,870.745 675, 168, 457 144 PAPERS ACCOMPANYING THE The interpKt-bearinj,^ funded debt of the United States waB, on Novem- ber 1 last, $1,418,()80,1!00. The total amount of l)onds held by all the banks and bankers in the country as given above was $(>75, 108,457, whicli is not greatly less than one-half of the interest-bearing debt. The amounts for the banks other than national have been obtained from the semi- annual reports made by them to the Commissioner of Internal Eeveuue, for purposes of taxation. The table given below has also been compiled from these reports, and shows, by geographical divisions, the average amount invested by State banks, private bankers, trust companies, and savings banks in United States bonds, for the six months ending May 31 for the four years named : Geographical divisions. May 31, 1879 : New England States Middle States Southern States Western States Pacific States and Territories TJnited States May 31, 1880: New England States Middle States Southern States Western States Pacific States and Territories United States May 31, 1881: New England States Middle States Southern States Western States Pacific States and Territories United States May 31, 1882: New England States - Middle States Southern States Western States Pacilic States and Territories United States Amount invested in United States bonds. By State bants, private bank- ers, and trust companies. $3, 669, 967 25, 686, 460 3, 593, 179 8, 326, 402 5, 015, 948 By savings banks. 3, 737, 093 20, 564, 834 2, 541, 991 8, 137, 554 3, 883, 816 2, 985, 496 21, 908, 703 1, 707, 702 6, 734, 948 4, 984, 313 38, 321, 162 2, 644, 895 20, 576, 823 1, 862, 946 7, 099, 874 5, 897, 637 38, 082, 175 $34, 941, 378 123,818,148 86, 021 2, 1&4, 668 1, 372, 845 46, 291, 965 162, 383, 060 37, 693, 200 146, 301, 155 1,000 2, 474, 557 2, 717, 904 36, 640, 795 168, 617, 049 21, 689 2, 689, 447 6, 911, 198 214,880,178 37, 046, 625 189, 775, 842 2, 354, 710 12, 851, 605 242, 028, 782 Total. $38, 611, 345 149, 504, 617 3, 679, 200 10, 491, 070 6, 388, 793 208, 675, 025 41, 430, 293 166, 865. 989 2, 542, 991 10, 612, 111 6, 601, 720 38, 865, 288 I 189, 187, 816 I 228, 053, 104 39, 626, 291 190, 525, 752 1, 729, 391 9, 424, 395 11, 895, 511 253, 201, 340 39, 691, 520 210. 352, 665 1, 862, 946 9, 454, 584 18, 749, 2-12 280, 110, 957 The above table gives the average amount of capital invested in United States bonds, from which should be deducted the amount of premium paid at the time of purchase, which cannot be ascertained. Through the courtesy of State oflflcers the Comptroller has obtained the official reports made to them, under State laws, by State banks in twenty-one States, by trust companies in five States, and by savings banks in fifteen States, at different dates during the year 1882, and from these retiu-ns the following table has been compiled : Held by State banks in twenty-one States $8,739, 172 Held by trust companies in five States 16,934,812 Held by savings banks in fifteen States 237,786,442 Total 263,460,426 EEPORT OF THE SECRETARY OF THE TREASURY. 145 The amount held by geographical divisions diiriDg the years 1880, 1881, and 1882, was as follows : Geographical divisions. 1880. 1881. 1882. $•15, 330, 098 157, 563, 757 958, 470 2, 672, 242 7, 240, 835 $40, 468, 340 176, 373, 8is9 1,073,460 5,735,518 14, 874, 332 $42, 667, 248 iqy ]3^ 239 Middle States Southom States.............. ocg 350 Western States 3, 369, 414 20, 020. 175 Pacific States , Total < ! 213,665,402 1 238,525,539 263, 460, 426 The amounts of United States bonds held, as shown bj- the tables compiled from returns made by State banks, trust companies, and sav- ings banks to State oiiicers, in twenty-one States and Territories were, in 1882, $16,650,531 less than the average amount shown by the table compiled from the re^iorts made to the Commissioner of Internal Eeve- ime, which were received from similar institutions. Tiie first-named table shows the actual amounts held at various dates in 1882, while the last gives the average amount held for the six mouths ending May 30, 1882. Although obtained from different sources and based on data that are not equally complete, the amounts obtained from the one source serve to corroborate those obtained from the other. NATIONAL BANK FAILURES. Three national banks have been placed in the hands of receivers dur- ing the year ending November 1, 1882, namely : The Mechanics' National Bank of Newark, N. J., on November 2, 1881 ; the Pacific National Bank of Boston, Mass., on May 22, 1882, and the First National Bank of Buffalo, N. Y., on April 22, 1882. The suspension of the first-named two banks was mentioned in the report of the Comptroller for the year ending November 1, 1881, and the causes which led to both these fail- ures were then fully discussed. The directors of the Pacific National Bank of Boston undertook to make good the impairment of its capi- tal stock in the manner authorized by section 5205 of the Eovised Stat- utes, but, as they failed to do so within the time fixed by law, a receiver was appointed to take charge of its afiairs. The failure of the First National Bank of Buffalo was the result of the misappropriation of its funds by its president. Its condition was discovered by the bank ex- aminer when making his annual examination, and a receiver was ap- pointed as before stated. The affairs of ten national banks have been finally closed within the year. These banks, with the total dividend paid by each to their cred- itors, are as follows: The First National Bauk of Selnia, Ala -It), fi per cent. The First National Bank of New Orleans, La 7'J. p«'r cent. The National Bank of Vicksbnrj;, Miss 4;». 'J j)er cent. The Ocean National Bank of New York City 100. per cent, and interest. The First National Bank of Carlisle, Pa 73. 5 per cent. The First National Bank of La Crosse, Wis 48. 4 per cent. The First National Bauk of Wichita, Kans 70.0 per cent. The First National Bank of Oroenlield, Ohio 27.0 per cent. The First National Bauk of 'i'arrytown, N. Y 1)0. r> per cent. The First National Bank of Meadvillo, I'a 100. per cent, and int<'re8t. The following banks have been closed, with the exception of litiga- tion pending in the courts, and the expenses of the receiverships, in- 10 Ab 146 TAPERS ACCOMPANYING TlfE eluding tliG anioniits pjiirt to receivers for ])ersonal services, are in each case no more tliaii is necessary to carry on the suits. In eacli of these instances, if litij^ation results favorably to the banks, some additional dividends may be paid. The dividends already paid to the creditors of these associations are as follows: Per cent. The Charlottesville National Bank, Charlottesville, Va 62 The First National Bank of Norfolk, Va 49 The First National Bank of Anderson, Ind 25 The Venango National Bank of Franklin, Pa 15 The Atlantic National Bank, of New York City 95 The First National Bank of Mansfield, Ohio 45 The Miners' National Bank of Georgetown, Colo 65 The First National Bank of Bedford, Iowa 12.5 The City National Bank of Chicago, 111 77 The First National Bank of Georgetown, Colo 22. 5 The First National Bank of Dallas, Tex 37 The Central National Bank of Chicago, 111 60 The People's National Bank of Helena, Mont 40 The First National Bank of Allentowu, Pa 70 The First National Bank of Wayneshurg, Pa 40 If the litigation now in progress should result favorably, it is esti- mated that additional dividends will be ])aid as follows: To the credi- tors of the First National Bank, Waynesburg, 25 per cent.; of the First National Bank, Allentown, Pa., and First National Bank, Georgetown, Col., 20 per cent. ; the First National Bank of Mansfield, Ohio, and Miners' National Bank of Georgetown, Col., 10 per cent., and to the remaining banks, dividends less than 5 per cent. The aflairs of the Cook County and Scandinavian National Banks of Chicago, and of the National Bank of the State of Missouri of Saint Louis also, cannot be closed until pending litigation is brought to a con- clusion. The latter bank has already paid to its creditors 100 per cent, of the principal of their claims, and more than 50 per cent, of interest accrued up to December 1, 1882. It is expected that a considerable portion, though not the whole, of the remaining interest will hereafter be paid. The First National Bank of New Orleans has been closed during the year. The payment of a final dividend had been necessarily jiostponed on account of delay experienced in adjusting accounts due to and from the government, but which have during the year been finally settled by an appropriation by Congress resulting in a recovery by the bank of $94-,000. The three following banks have paid their creditors the full amount of their claims, principal and interest, and their affairs are still in the hands of receivers appointed by the Comptroller, who are ad- ministrating the remaining assets in the interest of the stockholders : First National Bank of Newark, N. J 100 per cent, and interest in full. First National Bank of Brattlehoro, Vt 100 per cent, and interest in full. Third National Bank of Chicago, 111 100 per cent, and interest in full. It is probable that in each of these cases the shareholders will eventu- ally receive a handsome xiercentage upon the capital stock of the bank. The following banks in the hands of receivers have paid dividends dur- ing the past year. The total dividends up to November 1, 1882, being also given. The First National Bank of Selma, Ala., 4. 6 per cent.; total, 46. 6 per cent. The First National Bank of New Orleans, La., 9 per cent.; total, 79 per cent. The National Bank of Vicksburg, Miss., 13 per cent.; total, 49.2 per cent. REPORT OF THE SECRETARY OF THE TREASURY. 147 The Ocean National Bank, New York City. Interest dividend ; total, 100 per cent., and interest. The New Orleans National Banking Association, New Orleans, La., 5 per cent. ; total, 60 per cent. The t.'harlottesville National Bank, Charlottesville, Va., 7per cent.; total, 62percent. Tlie First National Bank of La Crosse, Wis., 3. 4 i)er cent.; total, 4S. 4 per cent. The First National Bank of Greenlield, Ohio, 27 per cent. ; total, 27 per cent. The First National Bank of Franklin, Ind., 15 per cent, to stockholders ; creditors paid in full. The National Bank of the State of Missouri, Saint Louis, Mo., 5 per cent., and 50 per cent, of interest ; total, 100 per cent., and 50 per cent, of interest. The Lock Haven National Bank, Lock Haven," Pa., 10 percent.; total, 100 per cent. Ths Third National Bank of Chicago, 111. Interest in fall ; total, luO per cent, and interest. •The Commercial National Bank of Kansas City, Mo., 6. 165 per cent, to stockholders ; total, to stockholders, 37. 1G5. The First National Bank of Tarrytown, N. Y., 5. 5 per cent.; total, 90. 5 per cent. The First National Bank of Allentown, Pa., 20 per cent.; total, 70 j)er cent. The People's National Bank of Helena, Mont., 10 per cent.; total, 40 percent. The German American National Bank, Washington, D. C, 10 per cent. ; total, 50 per cent. The Second National Bank of Scranton, Pa., 60 per cent.; total, 75 per cent. The First National Bank of Butler, Pa., 20 per cent.; total, 60 per cent. The First National Bank of MeadviHe, Pa. Interest in full. 100 per cent, and interest. The First National Bank of Newark, N. J. Interest in full. 100 per cent, and interest. The Mechanics' National Bank of Newark, N. J., 55 per cent.; total, 55 per cent. The First National Bank of Bufl'alo, N. Y., 25 percent.; total, 25 per cent. Since the commencement of the national banking? system 87 banks liave been placed in the hands of receivers, and 4110 banks have vol- untarily closed their business by the votes of shareholders owning two-thirds of their stock, under the provisions of sections 5220 and 5221 of the Kevised Statutes of the United States. Of the banks so placed in voluntary liquidation by their stockholders, 7 failed to pay their depositors, and in these cases receivers were appointed by the Comptroller to wind up their affairs. Of the 87 banks placed in the hands of receivers, 51 have been finally closed, leaving 36 still in pro- cess of settlement. The loss to creditors of national banks which have been placed in the hands of receivers during the nearly twenty years that have elapsed since the passage of the act of February 25, 1863, as near as can be estimated, including dividends which will probably be hereafter paid, has been about $7,000,000. The average anniuil loss has been, therefore, about $400,000 in the business of corporations having an average capital of about $450,000,000, and which have been respon- sible for the safe keeping of deposits in their hands averaging constantly over $800,000,000, or about one-twentieth of one per cent, of annual loss to depositors. The time required for liquidating the allairs of in- solvent banks dei)ends chielly upon the amount of litigation which may arise, as in any case it is im])0ssible to tell in advance what questions it may become necessary to refer to the courts for decision. In many of these cases no conclusion can be reached until the matter has been bnmght before the courts of last resort. The dockets of the supreme courts in most of the States, and that of the Supreme Court of the United States, are crowded, and when an appeal is made to these tri- bunals, years often elapse before the case can be reache!7f, 3.69 per cent. During the calendar year ending December :U, l-"7r», 3.23 i>or cent. During the calendar year ending December 31, ls7(), 2.()l jter cent. During the calendar year ending December 31, 1^77, 2.91 percent. During the calendar year ending December 31, 1S7H, :!.7rf percent. During the calendar year ending December 31, l-;79, 2.50 per cent. During the calendar year ending December 31, l<-(t, 2.7t"i per cent. During the calendar year ending December 31, l-;Sl, 3.49 per cent. During the fiscal year ending June 30, lb82, 4,01 per cent. 'From the Financial Chronicle ouly. 150 PAPERS ACCOMPANYING THE In tlic calendar year ending December 31, 1881, the rate of discount of tlic Bunk of England whh increased four times, and only twice re- duced. Diiriiiff the liscal year ending,' June 30, 1881i, the rate was increased four times and decreased three times. The present rate is 5 per cent. The rate of interest in the city of New York on aSTovcmber 28 was, on call loans, from 4 to 7 per cent., and on commercial i)aper from 7 to 8 per cent. SPECIE IN BANK AND IN THE TREASURY OP THE UNITED STATES, AND ESTIMATED AMOUNT IN THE COUNTRY — SPECIE IN THE EANK OF ENGLAND AND IN THE BANK OP FRANCE. The following table exhibits the amounts of specie held by the national banks at the dates of their reports for the last ten years, the coin and coin certificates held by the New York City banks being stated sepa- rately : Dates. Oct 3, Dec. 27, Feb. 28, -£pT. 25, June 13, Sept. 12, Dec. 2G, Feb. 27, May 1, June 26, Oct. 2, Dec. 31, Mar. 1, May 1, JnneSO, Oct. 1, Dec. 17, Mar. 10, May 12, June 30, Oct. 2. Dec. 22, Jan. 20, Apr. 14, June 22, Oct. 1, Dec. 28, Mar. 15, May 1, June 29, Oct. 1, Dec. 6, Jan. 1, Apr. 4, June 14, Oct. 2, Dec. 12, Ffb. 21, Apr. 23, JuDOll, Oct. 1, Dec. 31, Mar. 11, May 6, June 30, Oct. 1, Dec. 31, Mar. 11, May 19, July 1, Oct. 3, 1872. 1872. 1873. 1873. 1873. 1873. 1873. 1874. 1874. 1874. 1874. 1874. 1875. 1875. 1875. 1875. 1875. 1876. 1876. 1876. 1876. 1876. 1877. 1877. 1877. 1877. 1877. 1878. 1878. 1878. 1878. 1878. 1879. 1879. 1879. 1879. 1879. 1880. 1880. 1880. Ih80. 1880. 1881. 1881. 1X81. 1881. 1881. 1882. l)-;82. 1SS2. 1882. Held by national banlcs in Ne'w York City. Coin. $920, 1, 306, 1, 9o8, 1, 344, 1, 442, 1, 063, 1, 376, 1,167, 1, 530, 1, 842, 1, 291, 1, 443, 1, 084, 930, 1,023, 753, 869, 3,261, 832, 1, 214, 1, 120, 1, 434, 1, 669, 1, 930, 1, 423, 1, 538, 1, 955, 2, 428, 2, 688, 1, 905, 1, 779, 4, 009, 5, 421, 5, 312, C, 058, 7,218, 20, 096, 12.252, 12, 595, 16,682, 16, 104, 19, 773, 15, 924, 26, 242, 20, 822, 15, 317, 15, 739. 16, 243, 14, 708, 13, 708, 13, 265, 767 37 091 05 769 86 950 93 097 71 210 55 170 50 820 09 282 10 525 00 786 56 215 42 555 .54 105 76 015 86 904 90 436 72 131 36 313 70 522 92 814 34 701 83 284 94 725 59 258 17 486 47 746 20 797 44 092 06 705 22 792 43 299 01 552 49 966 90 472 34 967 69 249 64 541 44 720 49 220 40 855 'J8 859 01 683 90 108 60 790 87 168 04 080 49 057 39 9S6 93 690 77 3U3 74 U. S. Clearinsrhonso trnld PPT. .".^"^on'iS """= ^tmcateT certificates. $5, 454, 580 12, 471, 940 11, 539, 780 11, 743, 320 22, 139, 080 13, 522, 600 18, 325, 760 23, 518, 640 23, 454, 660 13, 671, 660 13, 114, 480 14, 410, 940 10, 622, 160 5, 753, 220 12, 642, 180 4, 201, 720 12, 532, 810 19, 086, 920 15, 183, 760 16, 872, 780 13, 446, 760 21,602,900 33, 629, 660 13, 889, 180 10,324,320 11,409,920 19, 119, 080 35, 003, 220 25, 397, 640 11, 954, 500 11, 5H810 12, 277, 180 12, 739, 544 12, 220, 940 12, 291, 270 12, 130, 900 8, 366, 140 7, 464, 650 6, 914, 250 7, 810, 200 7, 489, 700 6, 709, 900 4, 825, 300 4, 625, 900 4, 513. 400 4, 486, 600 4, 037. 600 4, 075, 800 4, ('34. 300 4, 005. 100 3, 908, 100 $21,569, 35, 855, 25, 458, 33, 337, 36, 189, 28, 246. 30, 809, 34, 176, 41, 858, 31,721, 33. 852, 29, 907, 31, 783, 32, 8.54, 26, 224, 000 00 000 00 000 00 000 00 000 00 000 00 000 00 000 00 000 00 000 00 000 00 OOC 00 Olio 00 noo 00 000 00 Total. $6, 375, 13, 77K, 13,498, 13, 088, 23, .581, 14, 585. 19.701, 24, 086, 24, 984. 15, 514, 14, 406, 15, 8.54, 11, 706, 6, 083, 13, 665, 4, 955, 13, 402, 22, 348, 16, 016, 18, 087, 14, 576, 23, 037, 35, 298, 15, 829, 11, 747, 12, 948, 21,074, 37, 432, 28, 0S5, 13, 860, 13, 294, 16, 289, 18,161, 17, 5,i3, 18, 349. 19, 349, 50,031, 55, 572, 44, 967, 57, 829, 59, 783, 54, 729, 51.. 558, 65, 044, 67,194. 51, 524, 53, 628, 50, 226, 50, 5-J6, 50. 5G7, 43, 31*7, 347 37 031 05 541 86 259 93 177 71 810 55 930 50 460 09 942 10 185 00 266 56 155 42 715 54 025 76 195 86 624 90 246 72 051 36 073 70 302 92 574 34 601 83 944 94 905 59 578 17 406 47 826 20 017 44 732 06 205 22 602 43 479 01 092 49 906 90 742 34 867 69 389 64 191 44 970 49 426 40 5.55 38 759 01 983 90 008 60 100 87 768 04 080 49 457 3a 2.'i6 93 790 77 403 74 Held by Otber national banks. $3, 854, 5, 269, 4, 279, 3, 780, 4, 368, 5, 282, 7. 205, 8, 679, 7, 585, 6, 812, 6,834, 6,582, 4, 960, 3, 937, 5,294, 3, 094, 3, 668, 6, 729, 5, C98, 7,131, 6, 785, 9, 962, 14, 410, 11, 240, 9,588, 9, 710, 11, 832, 17, 290, 17, 938, 15, 391, 17, 394, 18, 068. 23, 33.S, 23, 614, 23, 983, 22, 8-J3, 28, 981, 33, 869, 41, 461, 41, 677, 49, 562, 52. 443, 53, 597, .57, .■;84. 61,444, 62, 809, 58, 908, 58, 555, 00, 687, 60, 272, 57, 652, 409 42 305 40 123 67 557 81 909 01 658 90 107 08 403 49 027 16 022 27 678 67 605 62 390 63 035 88 386 44 704 83 659 18 294 49 520 66 167 00 079 69 046 06 322 61 132 19 417 89 413 84 924 50 040 .58 024 00 2C4 55 004 16 771 35 064 83 656 51 545 10 873 .54 651 95 860 31 761 72 078 86 954 11 141 91 211 36 5,53 48 736 03 368 08 719 11 573 65 499 80 431 77 774 53 Aggregate. $10, 229, 19, 047, 17, 777, 16, 868, 27, 950, 19, 868, 26, 907, 33, 365, 32, 569, 22, 326, 21, 240 22,436, 16, 667, 10, 620, 18, 959, 8, 050, 17, 070, 29, 077, 21,714, 25,218, 21, 361, 32,999, 40, 709, 27, 070, 21, 33.5, 22, 6:58, 32, 907, 54, 722, 46, 023, 29, 251, 30, 688. 34, 355, 41. 499, 41. 148, 42. 3;o, 42, 173, 79, 013, 89, 442, 80, 4'29, 99, 5l«5, 109, 346, 107, 172, 105, 156, 122.628, 128, 638, 114, 334. 112, .5.37, 108, 7t<2. 111,213, nc, 840, 101, 050, 756 79 336 45 673 5S 808 74 086 72 469 45 037 58 863 5S 969 26 207 27 945 23 761 04 106 17 361 64 582 30 329 73 905 90 345 85 594 36 469 92 6.54 03 647 89 267 55 037 78 996 06 820 31 750 70 058 02 756 06 4t;9 77 C06 59 250 36 757 32 563 41 287 44 731 23 041 59 051 75 732 21 505 26 509 49 900 92 195 26 562 08 927 50 736 12 399 60 031 (>4 786 73 222 54 17S 27 REPORT OF THE SECRETARY OF THE TREASURY. 151 The national banks held silver coin anionntin^, on October 1, 1877, to $3,700,703, and on October 1, 1878, to $5,392,028. On October 2, 1879, the amount held was $4,980,493, and on October 1, 1880, it was $0,495,477, including $1,105,120 in silver treasury certificates, and on October 3, 1882, it was $8,273,815, including $1,807,000 of silver certifi- cates. On October 1, of the ])resent year, the oflicial rei)orts of the State banks in New England, New York, Pennsylvania, Maryland, Louisiana, Ohio, Indiana, Iowa, Wisconsin, j\Iissouri, and Minnesota show that these banks then held specie amounting to $7,140,807, of which the banks in New York City hekl $3,484,913, The official returns from the State banks of California do not give separately the amount of coin lield by them; but it is estimated that of the total cash re])<)rted, annmiiting to $10,542,859, $10,000,022 consisted of coin. The amount of coin held by State banks in the States before mentioned, including California, was, therefore, $17,201,489. The Director of the Mint, in his report for 1881, estimates the amount of coin in the country on June 30, 1880, at $501,555,711, of Miiich $358,958,091 was gold and $142,597,020 was silver. His estimate for the fiscal year ending June 30, 1882, is as follows : United States coin. Gold. Silver. Total. Circulation Jnne 30, 1881 $439, 774, 753 88, 814, 091 $171. 450, 7C6 27,C5r), 816 517, 778 $611,236,519 116 464 907 Coinage for the year. Ies8 deposits for recoina^e 517 778 Total 528, 590, 844 25, 008, 659 109, C33, SCO 728, 224. 204 25, 008, 659 Remainder 503, .^82, 185 2, 700, 000 190, 633. 360 00,000 703 215 545 2 760 000 Circulation July 1, 1882 500, 882, 185 199, 573, 3C0 700, 455, 545 From July 1, 1882, to jSToveinber 1, the Director estimates that there was added to the coin $15,300,491 of gold and $8,738,472 of silver, mak- ing the stock of coin in the country at the latter date $724,500,508, of which $510,188,070 was gold and $208,311,832 was silver. The amount of bullion in the mint and in the New York assay office on November 1 is stated to have been $50,910,780 of gold and $4,012,503 of silver, making in all $54,929,283; which, added to the estimated amount of coin stated above, gives $779,429,791, of which amount $507,105,450 was gold and $212,324,335 was silver. The following table shows the amount of gold and silver, including the amount held to protect gold and silver certificates, and the percent- age of each, in the Treasury of the United States, on September 30 of each year from 1876 to 1882, and ou November 1, 1882 : Period. Silver. Standard dollars. Other coin and bullion. Total eU- ver. Gold coin and bullion. Total coin and bullion. Per cent of— SUyer. Gold Sept.30, 187C.. Sept 30, 1877.. Sept 30, 1878.. Sopt, 30, 1679.. Sept. 30, 1880.. Sept 30, 1881 . . Sept 30, 1882.. Nov.l, 1882... $12, 155, 205 31,806,774 47,784,744 GO, 0 30, 701, 935 $C. 029, 307 7, 425, 4r>4 27. 933, 142 r.2, 979, 797 78, 663, 030 90, 037, 964 122, 998, 3.54 123, 170, 912 $r,ry, 423, 0.-9 107, O'O, 529 130, ma, 302 ir.9, 827. 571 13.\ 041, 450 174,361,34.3 ].';2, 739, 1(10 159, 805, 7 14 $01,4.-2,426 114,404.983 163, 909, 444 222, 807, 368 214, 304, 480 269, 399, 307 27.'"., 737, 4R0 282, 982, 656 9.8 0.5 17.0 23.8 36.7 35.3 44.0 43.5 90.2 93.5 83.0 76.2 C3.3 04. 7 5.5. 4 66.5 152 PArEKM ACCOMPANYING TlIK The bullion in (in; Ji;iiik of Eii;;hui(l for each year Irom 1870 to 1882, is shown in the folio win]i five dollars I able, the i)ound sterling:? being estimated at 1870 §10:?, 1)00, 000 1871 117,950,000 1872 112,000,000 1873 11:5,500,000 1874 111,450,000 1875 110,000,000 1876 14:3,500,000 1877 • §120,850,000 1878 110,200,000 1879* 150,942,980 IBBOt 141,0:57,000 1881t 115,221,870 1882t 108,080,912 Below is a similar table, giving the amount of gold and silver, and the percentage of each, in the Bank of France, on December 31 of each yearf from 1870 to 1881, and on November 2, 1882, five francs being estimated at one dollar : Years. December 31 J 870 Dtcnnlier31, 1871 December 31, 1JS72 December 31, 1S73 December 31, 1874 December 31, 1875 December 31, 1876 December 31, 1877 December 31, 1878 December 31, 1879 December 31, 1880 December 31, 1881 November 2, 1882 . Silver coin and bullion. Gold coin and bullion. $13, 700. i 0,240, 20, 520, 31, 260, G2, 040, 101, 000, 127, 720, 173, 080, 211,620, 245, 5-.'0, 244, 360, 231, 180, 223, 136, $85, 740, 000 110, 680, 000 131, 740, 000 ll'2, 260, 000 204, 220, 000 234, 860, 000 306, 080, 000 235, 420, 000 196, 720, 000 148, 320, 000 110,480,000 129, 160, 000 194, 314, 000 Per cent of— Total. $99, 440, 000 126, 920, 000 158,260,000 153, 520, 000 266, 860, 000 335, 860, 000 433, 800, 000 408, 500, 000 408, 340, 000 393, 840, 000 354, 840, 000 360, 340, 000 417, 450, 000 Silver. 13.8 12.8 10.8 20.4 23.5 30.1 29.4 42.4 51.8 62.3 68.9 64.2 53.5 Gold. 80.2 87.2 83.2 79.6 76.5 69.9 70.6 57.6 48.2 37.7 31.1 35.8 46.5 TRANSACTIONS OF THE NEW YORK CLEARING HOUSE. The New York Clearing House Association is composed of forty-seven national and fourteen State banks, and the assistant treasurer of the United States at New York. Through the courtesy of Mr. W. A. Camp, its manager, a statement of the transactions during the year ending October 1, 1882, has been obtained, which shows that the total exchanges were more than forty-six thousand millions of dollars, while the balances paid in money were nearly 1,000 millions. The daily average balances paid were some- what more than $5,000,000, or about 3.4 j^er cent, of the amount of the settlements. The balances paid in money during the year consisted of $1,325,990,000 in clearing house certificates of the Bank of America, legal tenders amounting to $10,220,245, and $258,550,000 in gold coin, weighing 476J tons. If, instead of gold coin, silver had been used, the weight would have been nearly 8,000 tons. Since the date of the issue of the new gold certificates (October 4), authorized by the act of July 12, 1882, the balances due from the government have been paid in these * London Economist, November 8, 1879. t London Bankers' Magazine, October, 16S0, 1881, and 1882. t The Bulletin de Statistique, as quoted in the Bankers' Magazine, New York, vol. xiii, page 740; except the items for 1879-'80 and '81, which were obtained from the London Bankers' Magazine for August, 18S0, page OGl, September, 18S1. page 716^ and September, 1862, page 739, and the last item from The London Economist, Novem- ber 4, 1882. REPORT OF THE SECRETARY OF THE TREASURY. 153 ceitilicates instead of coiu, thus dispeusiug with the movement of large amounts in bags and upon drays from the Treasury to the custody of the banks. The following table shows the yearly transactions of the New York clearing house for the twenty-nine years since its organization in 1853, and the amoimts and ratios of currency required for the payment of daily balances : Years. No. of banks. •Capital. Exchanges. Balances paid in money. Average daily exchanges. Average daily bal- ances paid in money. Ra- tios. Per.et 1854 50 $47, 044, 900 $5, 750, 455, 987 $297. 411, 404 $19. 104, 505 $988, 078 5.2 1855 48 48, 884, 180 5, 362, 912, 098 289,694.137 j 17, 412. 0.12 940,565 5.4 1856 50 52, 883, 700 6, 906, 213, 329 334, 714, 489 22, 278, 108 1, 079. 724 4.8 1857 50 64, 420, 200 8, 333, 226, 718 365, 313, 902 26. 908, 371 1. 182, 246 4.4 1858 46 67, 146, 018 4, 756, 004, 386 314.238,911 15,393,730 1, 016, 954 6.6 1859 47 67, 921. 714 0, 448, 005, 956 303, 984, 683 20, «G7, 333 1, 177, 944 5.6 1800 50 69, 907, 435 7, 231, 143, 057 380, 693, 438 23, 401, 757 1, 232, 018 5.3 1801 50 68, 900. 605 5, 915, 742, 758 353, 383, 944 \ 19, 200, 520 1,151,088 6.0 18C2 50 68, 375, 820 6, 871. 443, 591 415, 5.30, 331 ! 22, 237, 682 1, 344, 75S 6.0 1863 50 68, 972, 508 14, 867, 597, 848 677, 626, 483 48, 428, 657 2, 207, 252 4.8 1804 49 68, 580, 703 24, 097, 196, 656 885, 719, 205 77. 984. 455 2, 866, 405 3.7 1805 55 80, 303, 013 26, 032, 384, 342 1, 035. 705. 108 84, 796, 040 3, 373, 828 4.0 18C6 58 82, 370, 200 28. 717, 140, 914 1. 006, 135, 106 93, 541, 195 3, 472, 753 3.7 1807 58 81, 770, 200 28,675,159,472 1,144,963,451 1 93,101,167 3,717,414 4.0 1808 59 82, 270, 200 28, 484, 288, 637 1. 125, 455, 237 1 92. 182. 164 3, 642, 250 4.0 1869 59 82, 720, 200 37, 407, 028, 987 1, 120, 318, 308 121, 4.31. 393 3, 637. 397 3.0 1870 61 83, 020, 200 27, 804, 530, 406 1, 030, 484, 822 , 90, 274, 479 3. 365, 210 3.7 1871 62 84, 420, 200 29. 300, 986, 082 1,209.721,029 1 95,13.3,074 3. 927, 666 4.1 1872 61 84, 420, 200 33, 844, 369, 568 1, 428. 582, 707 109, 884, 317 4, 636, 632 4.2 1873 59 83, 370, 200 35. 401, 052, 826 1, 474, 50f , 025 115,88.5,794 4, 818, 654 4.1 1874 59 81, 635, 200 22, 855, 927, 636 1, 286, 753, 176 74. 692, 574 4, 205. 076 5.7 1875 59 80, 435, 200 25, 061, 237, 902 1, 408, 608, 777 , 81, 899, 470 4, 603, 297 5.0 1876 59 81, 731, 200 21, 597, 274, 247 1, 295, 042, 029 70, 349, 428 4, 218. 378 5.9 1877 58 71, 085, 200 23, 289, 243, 701 1, 373, 996, 302 | 76. 358, 176 4, 504. 9U6 5.9 1878 57 63, 611, 500 22, 508, 438, 442 1, 307, 843, 857 t 73. 555. 988 4, 274, 000 5.8 1879 59 60, 800, 200 25, 178, 770. 701 1, 400, 111, 063 82, 015, 540 4, 560, 022 5.6 1880 57 60. 475, 200 37, 182, 128, 621 1,516,538,631 121,510,224 4, 956, 009 4.1 1881 60 61, 162, 700 48, 565, 818, 212 1,776,018,162 159,2.32,191 5, 823, 010 3.5 1882 61 60. 902, 700 46, 552, 846, 161 1, 595, 000, 245 151, 637, 935 5, 195, 440 3.4 t71,043,710 ♦645,059,244,842 :28, 280, 157, 052 J 72, 443, Oil 1 3, 176, 537 4.4 The total amount of transactions for the twenty-nine years given in the table is $645,059,244,812, and the annual average is $22,243,422,236. The clearing house transactions of the assistant treasurer of the United States at New York, for the year ending November 1, 1882, were as follows : Exchanges received from clearing-house $.341,737, 470 97 Exchanges delivered to clearing-house r24,%:i, 744 70 Balances paid to clearing-house t- 218, h'JU,803 2C Balances received from clearing-house 2, 126, 076 99 Showing that the amount paid by the assistant treasurer to the clear- ing-house was iu excess of the amount received by him 2111, 773, 72G 27 A table compiled from statements made by the New York clearing- house, giving the clearings and balances weekly for the months of September, October, and November, of the years from 1874 to 1882, will be found in the appendix, and are valualde for purposes of ci>mparison. The following table exhibits the transactions of cleariug-hou.ses located "The capital is for various dates, the amount at a uniform date iu each year not being obtainable, t Yearly averages for tweuty-nine years. \ Totals for twenty-nine years. 154 PAPERS ACCOMPANYING THE in 22 cities, for the year ending October 1, 1882, from official returns re- ceived by the manager of New York Clearing-House: Cities. BoBton, MiiHS Pliilml.li.liia, Pa.. CliiciiKo, 111 Cincinnati, Ohio .., Saint LoiiiH. Mo .. Baltimore, Mil San Fniiicisco. Cal Npw Orl'-ans, La.. Pittsbiivgh, I'a .... Louisville, Ky .... Milwaukee, wis . . Kansas City. Mo.. Cl.^vcland, 'Ohio... Indianapolis, Ind . Hart fold, Conn Peoria, 111 Memphis, Tenn Worcester, Mass.. Spriuiitit'ld, Mass . Lowell, Ma.<<8 Syracuse, N. Y New York City.... 22 cities New York City Exchanges. 46, T.'iS, 4<16. 760, 040, .37:t, 'JU.'i, 971,000, 878, .040, 700. 464, C:{5, 7H7, 4K4, 61.-., 4:t3, 089, .■?92, 189, 3HS, 170. 178. 044, llfi, 481, 112, 000, 88, 4!).'!, 54, 428. 43, 693, 42, 769. 41,4r)0, 28, .502, 21. 929, 552, 846, 901 00 90.-) 49 4h7 00 000 00 184 00 .")08 35 078 51 412 00 238 82 9:^4 00 940 06 500 00 767 00 000 00 001) 00 517 iiO 882 07 GGt; 00 006 00 .573 08 316 97 161 34 Balances. $479, 090, 234, 099, 247, 934, (*) 141,172, 83, 908, 112,275, 49, 7.33, 82,218, 41,072, 62, i>W, (*) (*) 24. 000. 23, .588, n 9, 721, 13, 747, 12, 694, 10,701, 6, 043, 1, 595, 000, C85 00 190 71 356 00 251 00 848 07 530 21 734 00 178 18 489 27 929 20 000 00 000 00 986 74 394 00 908 74 600 94 858 28 245 27 61, 054, 353, 584 75 i 3, 229, 701, 191 61 76.3 per cent, of 49.4 per cent, of total exchanges. total balances. * Xo record kept. The following interesting table bas been copied from the Public, of New York City, of November 23, which gives the latest information con- cerning the exchanges at New Y^ork and other cities having clearing- houses, for the week ending November 18, 1882, comparing them with those for the corresponding week in 1881, and showing the ijercentage of diflerences. The exchanges at the same places for the week ending November 11, 1882, are also given with the percentage of differences re- sulting from a comparison with the exchanges for the same week of the previous year. Week ending November 18. 1882. 1881. Per cent. Week ending Nov- eruber 11. 1882. Per cent. New York Boston Philadelphia Chicago Cincinnati Saint Lonis Pittsburg Baltinu)re San Francisco New Orleans Milwaukee Louisville Providence Kansas City Cleveland Indianapolis Hartford Memphis New Haven Peoria Columbus Portland Worcester Spriugtield Lowell Syracuse Total Outside New York , 054, 58.5, 75, 587, 55, 876, 48, 202, 21, 494, 17, 0?0, 14, 586, 14, 514, 14,116, 13,491, 8, 123, 7, a38, 5,421, 4, 630, 2, 393, 2,141, 2, 05.5, 1, 634, 1,418, 1, 078, 1, 073, *1, 030, 949, 945, 772, 576, 666 083 635 252 000 980 503 871 305 661 670 929 800 200 822 641 788 766 481 .558 541 655 086 168 367 316 $892, 319, 707 86, 781, 980 57, 969, 493 46, 857, 356 20, 275, 000 18, 552, 432 8, 231, 182 15, 270, 602 13, 934, 168 12, 381, 927 7, 816, 7.56 7, 158, 985 5, 069, 600 3, 074, 700 2, 577, 219 2, 434, 748 1, 762, 978 1,611,834 1, 263, 734 1, 062, 509 899, 134 +18. 2 -12.9 -3.6 + 2.9 + 6.0 -7.9 +77. 2 -4.9 + 1.3 + 9.0 + 3.9 + 2.5 + 6.9 +50.6 -7.1 -12.0 + 16.6 + 1.4 + 12.2 + 1.5 +19.4 880.377 926, 288 546, 991 504, 512 + 7.8 + 2.0 +41.2 + 14.2 950, 469, 957 74, 693, 348 54, 04(1, 419 48, 221, 994 19, 109, 500 17. 870, 457 23,161,722 12. 213, 1,56 10, 493, 471 14, 512, 512 6,915,788 6,781,630 5. 304, 900 5, 300, 000 2,398,234 I 1,897,587 I 1,878.811 I 1,707,416 ; 1, 308, 520 1. 127, 170 1, 254, 293 *1, ISO, 168 930, 826 823, 707 704, 848 507, 070 + 19.3 -11.1 +11.0 - 2.7 - 3.8 -11.6 +173. 8 - 7.8 -14.5 +2L3 - .2 -13.8 + .9 +71.8 + 1.1 -23.3 + 15 6 +36.3 + 14.6 - 4.0 +21.0 + 11.7 - 7.4 + 30.9 + 28.8 1,370,090,689 I 1,210,164,212 315, 505, 023 317, 844, 505 +13.2 — .7 1,263,687,336 +14.7 313,217,380 +2.7 'Portland omitted in footings. REPORT OF THE SECRETARY OF THE TREASURY. 155 CLEARINa-HOUSE CERTIFICATES. Section 5192 Revised Statutes provides that clearing-house certifi- cates, representing specie or lawful money specially deposited for the purposes of any clearing-house association, shall also be deemed to be lawful mone^' in the possession of any association belonging to such clearing-house holding and owning such certificate; and section 5193 provides that the Secretary of the Treasury may receive United States notes on deposit, without interest, from any national banking associa- tion, in sums not less th;in ten thousand dollars, and issue certiticatcs therefor in denominations of not less than five thousand dollars, which certiticates may be counted as part of tlie lawful-nioncy reserve, and may be accepted in the settlement of clearing-house balances at the places where the deposits therefor were made. The legal-tender note certificates were first issued in the fiscal year 1873. On June 30, 1875, there were outstanding $59,()45,()()0 of these certiticates, of which the national banks held $47,31{>,(»()U. On June 30, 187G, the amount outstanding was $33,140,000, of which the banks held $!27,9r.5,0U0. On June 30, 1879, the amount had been reduced to $29,330,000, and the banks held on June 14 of the same year, $25,180,000. The amount outstanding on October 3, 1882, was $10,725,000, and the national banks held on that day, $8,045,000. The issue of the gold certificates was authorized by the fifth section of the act of March 3, 1803, and they were used for clearing-house purposes soon after the i)assage of the national bank act. The first issue was made on aSTovember 13, 1805. On June 30, 1875. there were outstanding $21,790,300,of which the national banks in Xew York City held $12,042, 180. The issue of these certificates was discontinued on December 1, 1878. and the amount outstanding had decreased on June 30,1879, to $15,413,700, and on October 1, 1880, to $7,480,100. The amount outstanding on October 3, was $4,907,440, of which the national banks held $4,594,300, The issue of gold certiticates having been discontinued by' the govern- ment, and the amount of gold coin having rapidly increased, the banks in New York found it necessary to establish a depository of gold coin for the convenience of the clearing-house. This depository at the i)resent time is the Bank of America, by which bank certitici^.tes of deposit were first issued on October 14, 1879. The amount of such certifi- cates outstanding on November 1, 1882, was $20,390,000; on January 1, 1880, $25,010,000. The largest amount of coin on dei)Osit, during tlie year, was on January 21, 1882, viz, $45,330,000, the capacity of the vault having been increased since 1880. The national banks of New York City lieid on July 1, 1882, $34,48(1,000; on October 3, $41,132,000. The act of rebniary 28, 1878, autliorized any holder of silver dollars of the weight of 412;^ grains troy of standard silver, to deposit the same with the Treasurer, or any assistant treasurer, of the United States, in sums not less than ten dollars, and receive therelbr certiticates of not less tlian ten dollars each, corresponding with the denomina- tions of the United States notes. It required tliat the coin deposited, or representing the certificates, should be retained in the Trea.Miry for the payment of the same on den)an(l, and that said certiticates should be receivable for customs, taxes, and all jmhbc dues, ami also authorized their reissue. This act did not authorize theil^" use as clearing-house certificates, nor make them availalde as r<'serve for the Tiational banks. The act of July 12, 1882, authorized and directed the Secretary of the Treasury to receive dei)osits of gold coin in denominations of not less than $20 each, corresponding with the denominations of United States 156 PAPERS ACCOMPANYING THE notes. The coin deposited for the certilicates is required to be retained for the payment of the same on demand, and these certilicates, and also silver certificates, are authorized to be counted as part of the lawful reserve of the national banks. The act also provides that — No national banking association shall bo a member of any clearing house in which snch certificates shall not be receivable in the settlement oi clearing-house balances. The amount of silver certificates outstanding on l^ovember 1 was $65,020,450. The amount of gold certificates which had been issued under this act on November 1, 1882, was $21,790,000. STATE BANKS, TRUST COMPANIES, AND SAVINGS BANKS. The act of Congress of February 19, 1873, section 333 of the United States Kevised Statutes, requires the Comptroller to obtain from au- thentic sources, and report to Congress, statements, exhibiting under appropriate heads, the resources and liabilities of such banks and sav- ings banks as are organized under the laws of the several States and Territories. In compliance with this act, he has presented annually in the appendices to his reports, the resources and liabilities of these corpo- rations, so far as it has been possible to obtain them. Through the courtesy of State officers, returns of State banks, savings banks, and trust and loan companies have, during the jjast year, been received from twenty-three States. Many of the States and Territories, including Illinois, Kansas, Nebraska, Dakota, Oregon, Virginia, and Tennessee do not require periodical returns of the condition of the different classes of banks organized under their laws. From these returns, the following abstract has been compiled, show- ing the resources and liabilities of State banks and trust companies for the last three years, the number reporting in 1880 being 650; in 1881, 683, and in 1882, 704. 1880. 1881. 1882. 650 banks. 683 banks. 704 banks. RESOUKCES. $281, 496, 731 597, 699 26, 252, 182 35, 6(il, 792 40, 340, 345 19, 489, 086 7, 374, 037 979, 492 11, 176, 592 6, 905, 977 51, 500, 226 $352, 725, 986 1, 407, 695 27, 680, 025 42, 330, 957 54, 602, 829 21, 396, 772 11, 941, 741 1. 136, 427 16, 900, 762 17, 925, 628 27, 391, 317 $404,574,420 1,373,116 25, 673, 984 Ovordrafts United Stati's bonds 45, 658. 783 57, 973, 718 Due fiom banks 19, 915, 682 Otliov assL'ta 13, 685, 205 Expenses 1, 193, 345 18, .^46, 073 Specie 17, 902, 760 Legal-tenders, bank notes, &o 27, 322, 912 Total 481, 774, 159 575, 500, 139 633, 819, 998 LIABILITIES. Capital stock 109, 318, 451 283, 308 25, 008, 431 10, 774, 731 486, 094 298, 759, 619 18, 613, 336 18, 530, 189 112,111,325 274, 941 27, 857, 976 12, 237, 320 576, 413 373, 032, 632 19, 105, 664 30, 303, 868 113, 361, 931 Circulation . 286, 391 Surplua fund 31, 504, 352 TJudividnd profits *. 14, 758, 438 Dividends unpaid 577, 419 Deposits 426, 677, 092 Due to banks 18, 409, 351 Other liabilities 28, 245, 024 Total 481, 774, 159 575, 500, 139 633, 819, 998 REPORT OF THE SECRETARY OF THE TREASURY. 157 The foregoiug table was prepared from returns from all the New Eng- land States, except Maine; from four Middle States, not iuclu:ling Delaware, and from all the Western States, excepting Illinois, Kansas, and ]S'ebraska. The only Southern States from wliich reports have been received were South Carolina, Georgia, Louisiana, Texas, and Kentucky. The only Pacific State is California. There no are State banks in Maine, but one in New Hampshire, six in Vermont, and none in Massachusetts. There are, however, six trust and loan companies in the latter State, one in Ehode Island, and seven in Connecticut, SAVINGS BANKS. The following table exhibits the aggregate resources and liabilities of 629 savings banks in 1880, 1881, and 1882 : 1880. 1881. 1882. RESOURCES. Loans on real estate Loans on personal and collateral security.... United States bonds state, municipal, and other bonds and stocks Kailroad bonds and stocks Bank stock Real estate Other assets Expenses Duo from banks Cash Total LIABILITIES. Deposit.^! Sarplns fund Unuividod profits Other liabilities Totel $315, 273, 232 70, 175, 090 187, 413, 220 150, 440, 359 20, 705, 378 32, 225, 923 39, 038, 502 27, 053, 452 216, 423 22, 063, 091 17, 072, 680 $307, 096, 158 95, 817, 641 210, 84.5, 514 159, 819, 942 27, 069, 048 33, 249, 203 41, 987, 674 37, 408, 163 135, 572 40, 603, 641 13,758,106 $307, 089, 227 128, 483, 698 237, 786, 442 206, 291, 274 32, 994, 578 35, 365, 717 39, 882, 429 11,047,346 132, 204 38, 977, 1.35 14, 932, 015 881, 677, 350 819,106,973 51, 226, 472 4, 740, 861 6, 603, 044 881, 677, 350 907, 790, 662 1 , 052, 982, 065 891, 961, 142 60, 289, 905 10, 325, 800 5,213,815 967, 790, 6C2 966, 797, 081 69,454,512 11,136.219 5, 5W, 253 1, 052, 982, 065 The foregoing table includes the returns from the six New England States, from four Middle States, not including Delaware, from the States of Ohio, Indiana, California, and the District of Columbia. The ag- gregate of loans in the New England States is $252,010,803, and o£ deposits, $430,233,402. In the Middle States the aggregate of loans is $145,099,503, and of deposits, $409,058,085. Some of the largest savings banks in the city of Philadelphia, organ- ized under old charters, are not required to make rcjiorts to any State officer. Returns received directly from four of these banks, having de- posits amounting to $29,913,005, are included in the returns from the State of Pennsylvania. The savings-banks deposits, given in the foregoing table for 1882, based upon reports made to State authorities, are $900,797,081, and the deposits of the State banks and trust companies were $420,077,092. These returns do not include bank de])Osits. The de])osits of the national banks on October 3, 1882, exclusive of those due to banks, were $1,138,071,777. These (Je])osits of the national banks bear to those of the savings banks the iirojiortion, nearly, of 55 to 45 ; to those of the State banks and trust coinpani«'S tlie ])r()p()ition of 73 to 27; and to the combined deposits of both, tlic proportion of 15 to 55. The total population of New England, according to the census of 1880, 158 PAPERS ACCOSrPANYING THE was 4,010,520, and tlio iinmbor of open -deposit accounts of tlie savings banks in the year 1882 is 1,204,850, \vlii<;h is equal to .'32.3 accounts to eacli one Imndred of the entire population. The averaire amount of each a(!Couiit is $332.2(5, and if the total deposits were divided among the entire population, the average sum of $107.27 could be given to each individual. The dejiosits of the savings banks in the State of New York were $387,832,803, while the i)Oj)ulation is 5,082,871, showing that an equal distribution of the savings-banks dejwsits among the entire po])ulation of the State would give $70.30 to each individual. Tables showing the aggregate resources and liabilities of State banks, trust companies, and savings banks in each State, from which returns have been received from the State authorities appear in the Appendix. A table is also there given showing by States the number of savings- bank depositors and the average amount due to each in 1881 and 1882. PRIVATE BANKERS. In the Appendix will be found three comprehensive tables of two pages each, giving by geographical divisions, and by States, Territories, and principal cities, the number of State banks, savings banks, trust and loan companies, and private bankers of the country, for the present and two previous years, together with the amount of their capital and deposits, and the amount of their capital invested by them in United States bonds. The first official infonnation of this character ever pub- lished in regard to the private bankers of the country was contained in a table in the Comptroller's report for 1880. The following information in reference to the private bankers in sixteen of the principal cities has been compiled from the table in the Appendix for the year 1882 : Cities. Boston — New York City Albany Philadelphia.^ Pittsburgh Baltimore Washington — New Orleans... Louisville ...... Cincinnati...... Cleveland Chicago ....... Detroit Milwaukee .... Saint Louis San Francisco.. Totals... Number of banks. 64 536 3 50 10 35 8 10 3 11 5 27 7 4 11 12 Capital. 51, 654, 91, 2, 040, 785, 1, 104, 4 OS, "1, 180, 686, 77, 8, 604, 161, 160, 205, 2, 030, 796 i 74,440,599 Deposits. 980, 391 364, 207 85, 767 097, 791 278, 514 942, 802 338, 716 1,082 709, 290 869, 514 599, 202 916. 243 095, 923 352, 465 246, 285 863, 554 109, 741, 746 Invested in United States bonds. $871, 395 7, 840, 422 77,738 54, 712 177, 107 326, 634 20.1,858 14, 210 235,787 5,750 3,812 45,825 152, 956 in, 016, 206 The total number of private bankers in the foregoing cities is 796, with an aggregate capital of $74,440,590, and aggregate deposits of $109,741,740; the average capital being $93,518, and the average de- posits $137,867. About 68 per cent, of these private banks are located in New York City, representing more than two-thirds of the aggregate capital and over one-half of the aggregate deposits. In the city of New York the average amount of capital is $96,370 and deposits $105,157 for each private banker ; and the bankers in that city also held $7,846,422 of United States bonds, or nearly one-half of the amount of such bonds held by all of the private bankers of the coontry. EEPORT OF THE SECRETARY OF THE TREASURY. 159 The following table gives similar infoi'Diatioii for the thirty-three States and Territories, exclusive of the cities in the above table, having an amount of cajiital in excess of $100,000. In tliis table the number of private bankers is 2,5iJ0; the aggregate amount of capital, $39,287,623, and of deposits $181,970,004:, the average capital being $15,529, and the average dei)osits $71,925. States and Territories. P«'nn8ylvania.. Ohio Iowa Illinois lodiana Texaa New York Kansas Michifran Missouri Minnesota Nebraska Oregon "Wisconsin Kentucky Colorado Alabama Montana Georgia Connecticut ... WashinjTton . .. Rhode Island . . Virginia Dakota Mississippi California Utah Nevada Wyoming South Carolina Arkansas Loui^iuna Florida , Totals... No. of banks. 203 221 315 297 118 12H 162 164 149 89 109 126 17 85 25 48 23 15 30 16 15 8 19 61 10 25 9 7 5 8 16 3 2,530 Capital. $4, 295. 918 4, 2!l4. 085 4, 1X6, (551 3, 735, 378 3, 28(>, 507 2, 708, 364 1, 753, 420 1, 633. 919 1, 407, 597 1, -JOS, 396 902,068 931, .366 863, 367 780, 952 662, 368 629, 039 576. 175 570, 858 561. 667 477, 158 41. H, 657 412,496 410. 590 392, 789 37'2. .537 351!, 006 278, 404 21. '■..445 193. 428 189. 577 176, 076 132, 286 131, 521 Deposits. 124, 780, 177 23, 709, 057 10, 703, 267 24, 328, 452 14, 069, 359 7, 224. 006 15, 1.52, 9.'9 5, 046, 452 6, 930, 293 6, 901, 7.56 4,486,316 3, 040, 989 2, 370, G81 4, 317, 0C.6 2, 779, 621 2, 409, 192 1,792,076 1, 434, 947 951,615 2,018,460 1, 008, 857 5.'>3, 489 2, 378, 429 810, 324 1, 017, 893 1, 309, 12S 1, 2.59, 082 779, 0.56 772, 078 63, 432 529, 125 80, 235 834, 965 39, 287, 623 181, 970, 664 Invested in U. S. bonds. $227, 954 784, 737 321.310 634, 8-J5 700. 965 11,175 493, 976 435, .531 147, 207 218, 696 18,413 38, 237 265, 250 69,816 21,083 1,500 500 6,000 7,571 2,500 52,983 40,000 36, 907 47,755 100, 000 62,941 4, 753, 852 The remaining thirteen States and Ten'itories, not enumerated in the above table, contain 05 ])rivate bankers, Avith an aggregate capital of $527,670, and aggregate deposits of $3,909,750. Massachusetts has only three private bankers, outside the city of lioston, with an aggre- gate cai)ital of $64,107, ami aggregate deposits of 8618,206. Maryhand has but two private bankers outside of the city of Baltimore. The State of IVIaine has ten private bankers, North Carolina but four, New Hampshire two, New Jersey four, Delaware and Vermont only one each, and Arizona eleven. The average amount of caT)ital hehl by each of these 65 private bankers is $8,511, and of deposits $63,060. The f(»llowing table shows, b}'^ geographical divisions, the number of private bankers in tlM"i United States, with the aggregate amount of their capital, deposits, and investments in United States bonds, for the six months ending May 31, 1882 : Gcogriiphical divisions. No. of banks. Capital. Deposits. Iiivesti'd in United Sui68 bonds. New England Stales Miildlo Sl,;iles Sr>ni hern States Western .Stales and TeiTitories United States 104 1,014 203 1,080 $7, 130,106 02, 193,765 0, 309. 701 38, 552, 2.30 ♦9,417,712 113,079,792 19,981.042 153, 143, 614 $981. 371 0,204,610 227, 131 4, 457. 627 3,391 114,255,892 205,622,160 1 14,870,745 160 PAPERS ACCOMPANYING THE The table below is a recapitulation of the foregoing, showing by groups the aggregates for the bankers in the sixteen j)rincipal cities, in the thirty-three States and Territories having a private banking cnpital in excess of $100,000, and in the thirteen remaining States and Territories, for the last year : KECAPITULATION. principal cities - Principal States and Territories . Remaining States and Territories United States No. of banks. 796 2,530 65 3,391 Capital. $74, 440, 599 39, 287, 623 527, 670 Deposits. $109,741,740 181,970,664 3, 909, 750 Invested in United States bonds. 114, 255, 892 295, 622, 160 $10, 016, 206 4, 753, 852 100, 687 14, 870, 745 SECURITY FOR CIRCULATINa NOTES. During previous years there have been many changes in the classes of United States bonds held by the national banks as security for their circulation, owing to the payment or refunding or extension of the dif- ferent issues of five and six per cent, bonds bearing interest at four and one-half, four, three and one-half, and three per cent. During the pres- ent year 259 millions of three and one-half per cent, bonds, held by the banks, which were extended from five or six per cent, bonds in the year 1881, have been changed into three per cent, bonds. The amount of Unitea States bonds held by the Treasurer as security for the circu- lating notes of the national banks on the first day of November, 1882, is exhibited in the following table : Class of bonds. Authorizing act. Eate of interest. Amount. Funded loan of 1881 (5's, interest ceased) Funded loan of 1891 Funded loan of 1907 Loan of July and August continued Loan of 18G3 continued (Si's) Funded loan of 1 881 continued Funded loan of July 12, 1882 Paciflo Railway bouds Total. July 14, 1870, and January 20, 1871. .do, Fcr cent. .do July 17 and August 5, 1861 Maich 3, 1863 July 14, 1870, and January 20, 1871. July 12, 1882 Julyl, 1862, and July 2, 1864 $15, 000 33, 754, 650 104, 927, 500 749, 500 1, 351, 700 38, 505, 750 179, 675, 550 3, 526, 000 362, 505, 650 During the year 1871, and previous thereto, a large portion of the bonds bore interest at the rate of six per cent., and until the year 1877 all of the bonds bore interest at either five or six per cent. The five or six per cent, bonds, in the year 1881, entirely disappeared from the list of these securities, with the exception of three and a half million of Pacific sixes. At the present time more than eleven per cent, of the amount, pledged for circulation, consists of bonds bearing interest at three and a half per cent, only, and nearly fifty per cent, of them bear interest at three per cent., and the remainder, with the exception of three and one-half millions of Pacifies, bear interest at the rate of four and four and a half per cent. REPORT OF THE SECRETARY OF THE TREASURY. 161 COUNTERFEIT AND UNSIGNED NATIONAL-BANK NOTES. Section 5 of the act of June 30, 1S7G, provides — That all United States officers, charged -witli the receipt or disbarsement of public moneys, and all officers of national banks, shall stamp or write in plain letters the word "counterfeit," "altered" or "worthless," upon all fraudulent notes issued in the form of, and intended to circulate as money, wliich shall be presented at their place of business, and if such officers shall wrongfully stamp any genuine note of t)ie United States, or of the national banks, thoy shall, upon presentation, redeem such notes at the face value thereof. This section makes it the duty, not only of every officer of the United States chargred with the receipt or disbursement of public moneys, but also of all officers of the national banks, to stamp every fraudulent note which shall be presented at their counters, in such a manner as shall thereafter prevent its circulation. There is no doubt that there has been great iiof^^lect on the part of national bank officers to comply with this law. The number of coun- terfeit national bank notes which have been issued is. very small iu pro- portion to the number issued previous to the establishment of the na- tional banking sj'stera, but the number in circulation has largely increased during the last few years, probably owing to the fact that the bank notes which are presented at the counters of the banks, and which are known to be fraudulent, are not immediately stamped "counterfeit," "altered," or "worthless," as required by law. If a genuine note is WTongfully stamped, the officer thus stamping it can immediately ob- tain a genuine note in exchange by forwarding the same to the Treas- urer for redemption, so that there is no risk whatever on the part of the officers of national banks, even if they should wrongfully stamp a genuine note. Section 5172 of the Eevised Statutes provides that national bank notes shall express upon their face the promise of the association issu- ing the same to pay on demand, attested by the signatures of the presi- dent or vice-president and cashier, and section 5182 of the Eevised Statutes provides, that after any association receiving circulating notes has caused its promise to pay such notes on demand to be signed by the president or vice-president and cashier thereof, in such manner as to make them obligatory promissory notes, payable on demand at its place of business, such association may issue and circulate the same as money. There can be no doubt as to the meaning and intention of these sec- tions. The law requires that national bank notes shall be signed by the president or vice-])resident and cashier, before they are placed in circu- lation, and every bank issuing notes, not thus signed by these officers, subjects itself to a forfeiture of its charter. Notwithstanding this plain provision of law, various banks have issued their notes with printed signatures, and in some cases with litliograi)hic signatures, which are so badly executed as to excite suspicion as to the genuineness of the notes. The written signature of the officers of the bank are necessary as an additional precaution against counterfeiting. The signature of at least one bank officer is necessary as a check between this ofiice and the issuing bank, for if the question of an overissue of notes should arise, the signature of sucli officer would, without question, determine tba genuineness of the note. A bill is now pending in Congress, imposing a fine of twenty dollar* for every circulating note issued by any national bank Mitiiout the written signature thereon of at least one of its officers. National bank notes, Avith new designs, are now being rapidlv issued 11 Ab 162 PAPERS ACCOMPANYING THE to banks whose corporate existence hns been extended, and to other rational baidcs whicli arc bein^' organized, and it is important that these new notes shonkl not be issued unless si,i;ned l^y the officers in accordance with law. The Comptroller respectl'ully rejjeats his pre- vious recommendations for the x>assage of the act referred to, which act should also impose a i)enalty upon an^- engraver or lithographer who shall print the signature of bank officers upon such notes. TAXATION. In previous reports the repeal of the law imposing a tax upon bank capital and deposits, and of the two-cent stamp tax on checks, has been recommended as a measureof justice to the banks, and as a benefit to the people, and to the manufacturing aiid commercial interests of the coun- try. During the last session of Congress a bill including a provision for repealing these taxes was passed by the House by a vote of 127 to 79. The debate in the Senate, as well as some votes on preliminary ques- tions, showed that if a vote u\Hm the bill had been reached it would have become a law. The force of the reasons heretofore urged for the repeal of these taxes is as great as ever. The revenue still continues in excess of the amount required for the expenses of the government, in- cluding interest on the public debt which is being rai>idly reduced 5 and the taxes imposed upon banking capital by the government, State, and municipal authorities are larger than during any i)revious year. The Comptroller presents, herewith, a table which gives, for the year 1881, the amount of the banking capital invested in national banks, and the amount and rates of United States and State taxes paid by the national banks in every State and i)riucipal city in the Union. states and Territories. !Jraine New Kampsliire. Vermont Massachusetts .. Boston Hhode Island Connecticut Now England States. New Torlv New York City . . Albany New Jersey Pennsylvania Pliiladelpliia Pittsburj;.!! Delaware Maryland Baltinioro District of Columbia . AVasliiuiitou Middle States Virginia ^. West Virginia North Carolina South Carolina Georgia ^ Florida Capital. $10, 394, 806 5, 835, 442 8, 073, 115 45, 340, 820 50, 862, 191 19, 008, 874 25, 539, 720 Amount of taxes. United States. $129,324 73, 493 92, 045 601,953 883, 716 216, 910 325, 760 166,014,908 2,323,201 State. $226, 648 98, 848 125,796 856. 031 903, 444 280, 812 419,701 2, 911, 280 Total. $355, 972 172, 341 217, 841 1, 457, 984 1, 787, 160 497, 722 745, 461 Eatios to capital. United States. Perct. 1.2 1.3 1.1 1.3 1.7 1.1 1.3 State. Total. Per ct 2.2 1.7 1.6 1.9 1.8 1.4 1.6 5, 234, 481 1.4 33, 037, 003 51, 045, 869 1, 800, 000 12, 913, 077 29, 305, 142 17, 358, 000 9, 850, 000 1,74.3,985 2, 396, 849 11, 136, 997 252, 000 1, 125, 000 605, 458 1, 697, C03 (i2, 851 239, 020 518,798 442, 913 176,312 .31, 820 43, 351 167, 350 5, 100 18, 193 573, 679 ■ 1, 757, 982 49, 058 229, 874 186,981 129, 308 78, 838 2,866 36, 256 175, 3.56 255 4,261 171,963,922 1 4,008,169 1 3,224,774 2, 978, 995 1, 750, 470 2, 501, 000 1,871,679 2, 250, 946 100, COO 66, 749 26, 262 35, 142 31, 748 33, 744 2f 535 59, 540 32, 560 34, 039 44, 607 38, 838 1,035 1, 179, 137 3, 454, 985 111.909 468, 894 705, 779 572, 281 2.55,150 34, 686 79, 607 342, 706 5, 355 22, 454 1.8 3.3 3.5 1.9 1.8 2.6 1.8 1.8 1.8 I 1.5 ] 2.0 I 1.6 : 7, 232, 043 126, 289 58. 822 69, 181 76, 355 72, 582 3,570 2.2 1.5 1.4 1.7 1.5 2.5 Per ct. 3.4 3.0 2.7 3.2 3.5 2.5 2.9 1.8 1.8 3.5 2.7 1.9 0.6 0.7 0.8 0.2 1.5 1.6 0.1 0.4 2.0 1.8 1.4 2.4 1.8 2.1 3.6 6.8 6.2 3.8 2.4 3.3 2.6 2.0 3.3 3.1 2.1 2.0 4.2 3.3 2.8 4.1 3.3 4.6 * The capifa J pf the bunks that reported St-ate, county, and municipal taxes on stock and i-eal estate is $456,579,431. REPORT OF THE SECRETARY OF THE TREASURY. 163 AlaV)ama New Orleans Texas Arkansas Kentucky Louisville Touuessee Southern States Obio Cincinnati Cleveland Indiana Illinois • Chiiago Micliijian Detroit Wisronsin Milwaukee Iowa Minnesota Missouri Saint Louis . . Kansas Nebraska Colorado Nevada California San Francisco. Oregon Dakota Idaho Montana New Mexico Utah "Washington Wyoming ■Western States and Territories United States . li), ir.8,781 5, 732, 633 3, 700, 000 13, 025, 842 10,914,614 4, 2r)0, 000 7, 348, 556 2,114.208 2,419,721 650, 000 5, 999, ()45 5, 062, 546 '],5:H, l!-'4 2, 725, 000 925, 000 ■ 880,924 1, 185, 702 62, 500 1,780,788 1, ,500, 000 250, 000 554, 909 100, 000 225, 815 400, 000 200, 000 200, 000 205, 831 334,242 131, 973 57, 583 222, 220 234, 657 252, 349 126,613 52, 468 56, 3ns 29, 794 ]2:(, 009 95,716 31, 150 68, 120 20, 967 32,911 57, 329 992 32, 289 18, 661 10,985 10, 999 1,940 8, 590 8, 149 5, 573 . 3, 151 4,179 2, 033, 013 8, 902, 592 361, 143 104,151 57, 816 265, 197 196, 960 109, 763 131,511 37, 889 46, 777 15,604 114, 650 87, 298 I 31,822 70,245 24,208 i 22,2:19 ; 29, 139 1, 050 11, 264 103 4,250 16,013 3,047 5. 470 5,070 3,600 2,070 3,090 695, 385 236, 124 115,399 487,417 431, 617 362, 112 258, 124 90, 357 103,115 45, 398 237,719 183, 014 62, 978 138, 365 45, 175 55, 150 86, 468 2,042 43, 553 18, 764 15, 235 27, 012 4,987 14, 060 13,219 9,173 5,221 7,269 1.7 2.3 1.6 1.7 2.1 5.9 1.7 2.5 2.3 4.6 2.1 1.9 2.0 2.5 2.3 3.7 4.8 1.6 L8 1.2 4.4 2.0 1.9 3.8 2.0 2.8 L6 2.1 1, 761, 439 I 3, 794, 452 2.2 L9 L9 1.6 2.0 1. 2.6 L8 L8 2.0 2.4 2.0 1.8 2.3 2.7 2.8 2.5 2.9 L7 0.6 0.1 1.7 3.1 3.0 2.7 1.3 1.8 L4 2.1 L9 3.6 4.2 3.2 3.7 3.9 as 3.5 4.3 4.3 7.0 4.1 3.7 4.3 5.2 5.1 6.2 7.7 3.3 2.4 L3 6.1 5.1 4.9 6.5 3.3 4.6 3.0 4.2 4.1 8,286,488 , 17,189,080 1.9 1.8 3.7 Similar tables for the years 18G7 and I860, and for the years 187i to 1880, inclusive, may be found in tlie Appendix. The following condensed table sbows for the years 1879, 1880, and 1881 the amount of these taxes paid by banks located in each geographical division of the country : 1879. Geographical divisions. Capital. New England States $165, 032, 512 MiddleStates j 170,431,205 Sout horn States 30, 5.55, 018 Western States and Terr's. 90,949,709 Amount of taxes. United States. $1, 942, 209 3, 190. 113 425, 997 1, 457, 812 State. Total. $2, .532, 004 2, 930, 269 383, 927 1, 751, 032 $4, 474, 213 6, 126, 382 809, 924 3, 208, 844 Katios to capital. United States. 1.2 1.9 1.4 1.6 State. 1.5 1.7 1.3 2.0 United States I 456, 908, 504 7, 016, 131 7, 003, 232 14, 619, 303 1.5 1.7 Total. 2.7 3.6 2.7 3.6 3.2 164 PAPERS ACCOMPANYING THE 1880. Capital. Amount of taxes. Ratios of capital. Geographical divisiona. United States. State. Total. United States. State. Total. New EnRland States Middle Stat<-8 Southern St.Ttcs "Western States and Terr's. .■flCo. 080, 2.-)0 170, 781, 946 30, 829, 178 89, 975, 165 $2, 190, 921 3, 697, 245 479, 613 1,750,324 .$2, 886, 916 2, 927, 948 403, 092 1, 658, 866 15, 077, 837 6. 625, 193 882, 705 3, 409, 190 1.3 2.2 1.6 1.9 1.8 1.8 L4 2.0 3.1 4.0 3.0 ,3.9 United States 457, 266, 545 8, lie, 103 7, 876, 822 15, 994, 925 1.8 1. 8 j 3. 1881. New England States Middle States $166, 014, 968 171, 963. 922 31, 258, 422 93, 104, 289 $2, 323, 201 4, 008, 169 538, 209 2, 033, 013 $2, 911, 280 3 '''^4 774 $5, 234, 481 1 O-iD O^'l 1.4 2.3 1.7 2.2 1.8 1.9 1.3 1.9 3.2 4 "^ '388,' 995 1 ''927,' 204 1,761,439 1 3,794,452 'i Western States and Terr's. 4.1 United States 462, 341, 601 8, 902, 592 8, 286, 488 17, 189, 080 1.9 1.8 3.7 It will be seen that the per centage of State taxation during the year 1881 varies from 1.3 per cent, in the Southern States to 1.9 per cent, in the Middle and Western States, and that the average percentage throughout the United States remains the same as it was during the year 1880, but has increased one-tenth of one per cent, as compared with that paid during the year 1879. The total of United States and State taxes paid by national banks to capital is 3.7 per cent, duriug the year 1881, having increased one-tenth of one per cent, over those paid in 1880, and one-half of one per cent, over those paid duriug the year 1879. The rates of United States taxation are the same in all sections of the country. The inequality in the percentages of United States taxes to capital arises from the fact that whilfe the United States tax is im- posed on the three items of capital, deposits, and circulation, the per- centages given in the tables are those of the total tax derived from these three sources to capital only. Where the deposits are large in proportion to capital, the proportion of the United States tax, as measured by capital, appears greater. The first table given below shows the percentages to capital of taxation paid by the banks in the principal cities of the country. Particular attention is called to the inequality in State taxation shown by it. The second table gives the States in which the taxes, United States and State, are most excessive. Cities. 1879. United States. State. TotaL 1880. United States. State. Total. 1881. IS^. St-t- Total. Boston New York... Albany Philadelphia Pittsburgh.. Baltimore . . . Washington. New Orleans Louisville — Cincinnati... Cleveland . . . Chicago Detroit Milwaukee.., Saint Louis.. Saint Paul... Perct L3 2.6 2.9 2.1 L4 1.2 1.4 1.7 1.5 1.9 1.3 3.4 1.8 2.8 1.8 1.5 Per ct. 1.3 2.9 2.5 0.7 0.6 1.3 0.4 0.5 0.6 2.4 2.0 2.4 2.2 2.5 2.1 1.5 Per ct. 2.6 5.5 5.4 2.8 2.0 2.5 1.8 2.2 2.1 4.3 3.3 5.8 4.0 5.3 3.9 3.0 Per ct. 1.6 3.1 3.1 2.4 • 1.7 1.4 1.5 2.0 1.7 2.3 1.4 4.8 2.2 4.0 2.4 L7 Per ct. 1.9 2.9 3.2 0.7 0.7 1.5 0.4 0.2 0.6 2.3 1.6 2.5 1.7 3.0 2.5 1.8 Per c 3. Perct 1.7 3.3 3.5 2.6 1.8 1.5 1.6 2.4 1.7 2.3 1.6 5.9 2.5 4.6 2.5 L4 Peret. 1.8 3.5 2.7 0.7 0.8 1.6 0.4 0.3 0.8 1.9 1.6 2,6 1.8 2.4 2.7 2.1 Per ct 3.5 6.8 6.2 3.3 2.6 3.1 2.0 2.7 2.5 4.2 3.2 8.5 4.3 7.0 5.2 3.5 REPORT OP THE SECRETARY OF THE TREASURY. 165 1879. 18S0. 1881. States. United States. State. TotaL United States. State. TotaL United States. State. Total. New York ...........i..... Per ct. 1.5 1.5 1.4 1.4 1.5 1.C 2.1 2.6 1.2 1.7 Perct 2.0 1.8 2.0 2.1 1.8 1.8 2.7 2.6 2.0 1.8 Peret 3.5 3.3 3.4 3.5 3.3 3.4 4.8 5.2 3.2 3.5 Peret 1.7 1.7 1.6 1.6 1.9 2.0 2.3 3.3 1.4 Perct, 1 9 Per ct. a fi Per ct. 1.8 1.9 1.7 1.7 2.1 Per ct. 1.8 1.9 1.9 2.0 1 R Perct. 3 6 1. 9 3. 6 1. 9 3. 5 2.2 3.8 1. 8 3. 7 1. 9 3. 9 2. 2 4. 5 2. 5 ! 5. 8 ■> .■> .^ 9 3.8 Ohio 3.6 Indiana 3.7 lUinoia 3.9 Wisconsin 2. 3 2. 4.3 2.3 3.7 1.7 2.0 2.8 2.5 2.4 2.1 5.1 6.2 4.1 1.9 2.7 1 4 B 4.1 The uniforni rates of United States taxes are annually one per cent, upon their notes in circulation; one-half of one per cent, upon their de- posits, and the same rate upon the average amount of their capital, in excess of that invested by them in United States bonds. These taxes are paid semi-annually by the national banks to the Treasurer of the United States, and subject the government to no expense for their col- lection. The whole cost of the national banking system to the government, from the date of its establishment in 1863, has been $5,306,908; on the other hand, the government has, in about twenty years, collected taxes upon the capital, circulation, and deposits of national banks at the rates heretofore specified, amounting, as may be seen by the following table, to $118,005,706.25 : Years. On circulation. On deposits. On capital. TotaL 1864. 1865. 186G. 1867. 1808. lsC9. 1870. 1871. 1872. 1873. 1874. 1875. 1876. 1877. 1878. 1879. 1880. 1881. 1882. $53, 733, 2, 106, 2, 8C8, '-', 946, 2, 957, 2,949, 2, 987, 3, 193, 3, 353, 3, 404, 3, 283, 3, 091, 2, 901), 2, 948. 3, 009, 3,153, 3, 121, 3, 190, 193 32 247 59 785 30 636 78 343 07 416 73 744 13 021 69 570 03 186 13 483 11 450 89 795 70 957 53 047 08 047 16 G35 63 374 33 981 98 $95, 1, 087, 2, 633, 2, 650, 2,564, 2, 614, 2, 614, 2, 802, 3. 120, 3, 190, 3, 209, 3, 514, 3, 505, 3,451, 3, 273, 3, 309, 4, 058, 4, 940, 5, 521, 911 87 ' 530 86 ' 102 77 I 180 09 I 143 44 i 553 58 ; 767 61 I 840 85 984 37 569 29 { 967 72 ■ 265 39 129 04 965 38 • 111 74 608 90 710 61 945 12 ' 927 47 $18, 432 07 133,251 15 400, 947 74 321,881 36 306, 781 67 312, 918 68 375, 962 26 385,292 13 389, 356 27 454,691 51 4G9, 048 02 507, 417 76 632. 296 16 660, 784 90 .100, 296 83 401,920 61 379,424 19 431,233 10 437, 774 90 $167, 1,954, 5, 146, 5,840, 5, 817, 6,884, 5,940, 6. 175, 6, 703, 7, 004, 7,083, 7, 305, 7, 229. 7,013, 6,781, 6, 721, 7, 591, 8. 493, 9, 150. 537 26 029 60 835 81 698 23 268 18 888 99 474 00 154 67 910 67 646 93 498 85 13i 04 221 66 707 81 455 65 236 67 770 43 552 55 684 35 Aggregates ] 52, 253, 518 24 j 58,106,276 70 7,585,91131 118,005,706 25 The tax imposed upon banks other than national is collected by the Commissioner of Internal Revenue. The rates upon capital and de- posits are the same as in the ca.se of the national bank.s. A tax of ten per cent, is imposed, under section 3411' of the Ilevised Statutes, on the use, in i)ayments, of notes issued by any banks other than national. This tax has the viYcct of preventing the issue of circulating notes by State banks. The table below gives the taxes collected annually by the Commissioner of Internal Keveuue during the years from 1864 to 166 PAPERS ACCOMPANYING THE 1883, inclusive, showing? the wliole amount paid dnring that period by banks, other than national, to have been $00,793,030. Tears. On circulation. On deposits. On capital. Totals. 1864 $2, 0,50, 996 30 1, 993, 601 84 990,278 11 214, 298 75 28, 609 88 10, 505 05 15,419 94 22, 781 92 8,919 82 24, 778 62 16, 738 20 22, 746 27 17, 947 67 5,430 10 1, 118 72 13, 903 29 28, 773 37 4, 295 08 4, 285 77 $780, 723 52 2,043,841 08 2, 099, 635 83 1, 355, 395 98 1, 438, 512 77 1,734,417 03 2, 177, 570 40 2, 702, 190 84 3, 043, 2.51 71 3, 009, 302 79 3, 4.53, 544 26 2, 972, 260 27 2, 999, 530 75 2, 896, 037 93 2, 593, 687 29 2, 354, 911 74 2, 510, 775 43 2, 946, 906 64 4, 096, 102 45 $2, 837, 719 82 4, 940, 870 90 3,403 988 05 1805 $903, 307 98 374,074 11 470, 807 73 399, 502 90 44.5, 071 49 827,087 21 919, 202 77 976, 0.57 01 730, 9.50 05 910,878 15 1,102,241 .58 989,219 61 927, 001 24 897, 225 84 830, 008 56 811, 430 48 811,000 35 1,153,070 25 1806 1807 2 040 .562 40 1808 1, 806, 745 55 1869 2,190,054 17 1870 3, 020, 083 01 3, 044, 241 53 1871 1872 4,028,229 14 1873 3,771,031 40 1874 3, 387, 100 07 1875 4,097.248 12 1876 4, 000, 098 03 1877 3, 829, 729 33 1878 3, 492, 031 85 1879 3, 198, 883 59 3, 350, 985 28 1881 3, 702, 208 07 1882 5, 253, 458 47 5, 487, 608 82 46,809,211 37 14, 497, 109 91 00, 793, 930 10 The following- table exhibits the taxes, both national and State, paid by the national banks during each of the sixteen years preceding 1882, and the i)roportion of such taxes to capital. Years. Capital stock. • Amount of taxes. Eatio of tax to capital. United States. State. Total. United States. State. Total. 1866 1867 1868 1869 1870 1871 1872 1873 1874 1875 1876 1877 1878 1879 1880 1881 . $410, 593, 435 422, 804, 606 420, 143, 401 419,619,860 429, 314, 041 451, 994, 133 472, 956, 9.58 488, 778, 418 493, 751, 079 503, 087, 911 501, 788, 079 485, 250, 094 471, 064, 238 450, 908, 504 457, 200, 545 402, 341, 001 $7, 949, 451 9, 525, 607 9, 465, 052 10, 081, 244 10, 190, 682 10, 649, 895 6, 703, 910 7, 004, 040 7, 256, 083 7, 317, 531 7, 076, 087 6, 902, 573 6, 727, 232 7, 016, 131 8, 118, 103 8, 902, 592 $8, 009, 938 8, 813, 127 8, 757, 050 7, 297, 090 7, 40.5, 075 7, 860, 078 8. 343, 772 8. 499, 748 9, 620, 320 10,058,122 9, 701, 732 8, 829, 304 8, 050, 533 7, 003, 232 7, 870, 822 8, 280, 488 $16,019,389 18, 338, 734 18, 223, 308 17, 378, 340 17, 656, 357 18, 509, 973 15, 047, 082 15, 504, 394 16, 876, 409 17, 375, 6.53 16,777,819 15,731,877 14, 783, 765 14, 619, 363 15, 994, 925 17, 189, 080 Perct. 1.9 2.2 2.2 2.4 2.4 2.4 1.4 1.4 1.5 1.5 1.4 1.4 1.4 1.5 1.8 1.9 Per ct. 2.0 2.1 2.1 1.7 1.7 1.7 1.8 1.8 2.0 2.0 2.0 1.9 1.7 1.7 1.8 1.8 Per ct. 3.9 4.3 4.3 4.1 4.1 4.1 3.2 3.2 3.5 3.5 3.4 3.3 3.1 3.2 3.0 3.7 This table shows that the percentages to capital of taxes have never been less than three per cent, annually, and that during the last four years given there has been an increase in the rate from 3.1 per cent, to 3.7 per cent. It is probable that the rates of State taxation ])aid by banks, other than national, do not vary much from the rate of those l^aid by the national banks, although in many of the States, the laws relative to the assessment of taxes upon bank capital have, heretofore, somewhat discriminated against national banks. The repeal of the law imposing the government taxes will still leave the banks subject to a burden of taxation by the difterent States mnch greater than that im- posed by them upon any other kind of capital, and this repeal is again urgently recommended. The reduction of the annual rate of the tax on circulation to one-half of one per cent, is also recommended for reasons given in another i)ortion of this rex)ort. REPORT OF THE SECRETARY OF THE TREASURY. 167 DECISIONS RELATIVE TO STATE TAXATION OF NATIONAL BANK SHARES. In the last annual report of the Comptroller of the Currency refer- ence was made to the decision of the United States circuit court of the northern district of the State of Xew York, in the case of the National Albany Exchange Bank vs. Charles A. Hills et «?., supervisors of Albany County, is"ew York, namely, that the law of the State of Xew York under which taxes had been assessed for fourteen years upon bank sliares was void and invalid, for the reason that this act did not permit the owners of national bank shares to reduce the assessment by the amount of their debts, while owners of oth(^r moneyed capital possessed that privileo^e. The circuit court rendered a judgment in favor of Stanley, the as- signee and representative of the stockholders of the National Albany Exchange Bank, for taxes previously exacted and paid. Tlie supervis- ors appealed to the Supreme Court of the United States. The decision of the latter court was rendered April 3, 1S82, and reversed the decision of the circuit court in the case of all except one of the stockholders represented by Stanley. The court said: The question liere to be decided arises under two statutes of the State of New York in regard to taxation. The lirst of these is the act of ld.")0, relating to the assessment and collection of taxes in the city of Albany. The sixth section of the act requires the board of assessors to prepare an assessment roll, in ■which there shall b« set oppo- site the name of each tax-payer (1) all his real csrate liable to taxation, and its value; (2) the full value of all his personal property, alter deducting the Just debts owing by him. Section 1) of the act is as follows: "If anj' person shall at any time before the assessors shall have completed their assessments make affidavit that the value of his real estate does not exceed a certain sum, to be specitied in such affidavit, or that the value of the personal estate owned by him, after deducting his just debts and his property invested in the stock of any corporation or association liable to be taxed therefor, does not exceed a certain sum, to be specified in the affidavit, it shall be the tluty of the boaifrued by the court of appeals of New York, as not authori/ing any deduct ion for debts by a share- holder of a national Ijank, is it till- that reason ahsoluiely void / • ♦ » li would seem that if the act remains a valid rule of assessment for shares of State banks and for individual bankers, it should al.so remain the rulefor shareholders of national banks who have no debts to deduct. » • » None of the stockholders except Williams made the allidavit required by the act of 1850, showing they had debts to deduct, and therefore in 168 PAPERS ACCOMPANYING THE their c;irc the judgmejit of the circuit court was reversed, and iu that of Williams aflirnied. This (hicisioii scouis to cut off all remedy for taxes already i)aid by stockholders of Albany national banks who nef;lected to make the alii- davit required uiuler the act of 1850. In People v. AVeaver the Su])reme Court pointed out that the method to pursue in cases where the taxation by State authority of shares of national banks was greater than that of other monied capital in the same State, was by enjoining the collection of the excessive taxa- tion. In the case of National Albany Exchange Bank v. Hills, the bank brought, on behalf of its stockholders, a suit to enjoin the collec- tion for taxes assessed but unpaid for the year 1879, and the circuit court of the northern district of Xew York granted a perpetual injunc- tion. The Supreme Court decided that the injunction was properly granted as to one stockholder, who made affidavit and demand on ac- count of deduction of his debts, but not as to the others, who had made no such afi&davit or demand, but in the case of the latter the lower court was directed to x)erniit them to bring their action in an amended form, on the ground that they refrained from making affidavit and demand, because they knew it would have no efiect. In the case of German ojTatioual Bank of Chicago v. Kimball, appealed to the United States Supreme Court from circuit court for the north- ern district of Illinois, it was decided that no one can be permitted to go into a court of equity to enjoin the collection of a tax, until he has shown himself entitled to the aid of the court b^' paying so much of the tax assessed against him as it can be plainly seen he ought to pay, nor should he be i)ermitted, because his tax is in excess of what is just and lawful, to screen himself from paying any tax at all, until the precise amount which he ought to pay^ is ascertained by a court of equity. In the case of Evansville ^National Bank v. Brit ton, referred to last year, as decided in the United States circuit court for the district of Indiana, the Supreme Court affirms the decree of the lower court, perpetually enjoining the collector as to those shareholders who at the time of the assessment proved that they owed debts which should right- fully be deducted, and dismissing the bill as to other shareholders. All of these decisions appear to have grown out of matters pending when the decision of the United States Supreme Court in the case of People V. Weaver was rendered. It is probable that in most States the legislatures will so modify their laws taxing bank shares as hereafter to conform vdth the principles laid down in that decision; but these supplementary decisions are valuable in that they point out a mode of action in all cases where discrimination in any form is made in assessing or collecting taxes on national bank shares. The party ag- grieved must clearly- state the amount of the excessive taxation, pay what is justly due, and enjoin the collection of the remainder. In stat- ing the amount believed to be unjustly demanded, strict regard must be had to the forms required by the State laws in force in the place where the bank in located. While the Supreme Court of the United States is extremely careful not unnecessarily to interfere with the effect of State legislation in the taxation of national bank shares, it upholds the rights of individuals under Federal laws when actions based on equitable grounds are brought in a proper manner. In Xew York City it is claimed that under the act now in force in the State, taxing national and other bank shares, which permits the deduc- tion of debts, there is still great discrimination iu the valuation of bank shares as compared with the valuation of other personal property and real estate. REPORT OP THE SECRETARY OF THE TREASURY. 169 DIVIDENDS. From the serai-annual returns made to tliis office under section 5212 of the Eeviscd Statutes of the United States, the following table has been prepared, showing the dividends and total earnings, and the ratio of each to capital and combined capital and surplus, for each semi-annual period from September 1, 1SG9, the close of the period for which these reports were first received, to September 1, 1882. Period of six nioutba, endiug— Sept 1, 1869 Mar. 1, 1870 Sept, 1, 1870 Mar. 1, 1871 Sept 1, 1871 Mar. 1,1872 Sept. 1, 1872 Mar. 1, 1873 Sept. 1,1873 Mar. 1, 1874 Sept. 1, 1874 Mar. 1, 1875 Sept 1, 1875 Mar. 1, 1876 Sept 1, 1876 Mar. 1, 1877 Sept 1, 1877 Mar. 1, 1878 Sept 1, 1878 Mar. 1,1879 Sept 1, 1879 Mar. 1, 1880 Sept 1, 1880 Mar. 1, 1881 Sept 1. 1881 Mar. 1, 1882 Sept 1, 1882 No. of banks. 1,481 1,571 1,601 1,605 1,C93 1,750 1,852 1,912 1,955 1,967 1,971 2,007 2,047 2,076 2,081 2, 080 2,072 2,074 2,047 2,043 2,045 2,046 2,072 2,087 2,100 2,137 2,197 Capital. $401, 416, 425, 428, 445, 450, 405, 475, 488, 489, 489, 493, 497, 504, 500. 496, 486, 475, 470, 464, 455, 454, 454, 456, 458, 400, 473, Suri)lus. Total tlivi- dcnds. 650, 802 366, 991 317, 104 699, 165 999, 2G4 693,706 I 676,0'i3 : 918,683 ' 100,951 ! 510,323 938,284 568,831 ! 864,833 i 209,491 i 482,271 I 651, 580 324,860 609,751 231,896 413,996 ! 132,056 ' 080,090 i 215,062 844, 805 I 934,485 I 354, 485 ; 947,715 $82, 105, 848 86, 118, 210 91, 630, 620 94, 672, 401 98, 280, 591 99, 431, 243 105, 181, 942 114, 257, 288 118,113,848 123, 469, 859 128, 364, 039 131,560,637 134, 123, 649 134, 467, 595 132, 2,^)1, 078 130, 872, 165 124, 349, 254 122, 373. 561 118, 687, 134 lie, 744, 135 115, 149, 351 117,226,501 120,145,649 122,481,788 127, 238, 394 131,291,8^9 133, 570, 931 ?21, 767, 831 21, 479, 095 21, 080, 343 22, 205, 150 22 125 279 22! 859| 826 23, 827, 289 24, 826, 061 24, 823, 029 23, 529, 998 24, 929, 307 24, 750, 816 24, 317, 785 24, 811, 581 22, 563, 829 31, 803, 969 22, 117, 116 18, 982, 390 17, 959, 223 17, 541, 054 17, 401, 867 18, 121, 273 18, 290, 200 18, 877, 517 19, 499, 0<»4 19, 91. '5,375 20, 876, 553 Total net earnings. $29, 221, 184 28, 996, 934 26, 813, 885 27. 243, 162 27, 315, 311 27, 502, 539 30, 572, 891 31, 926, 478 33, 122, 000 29, 544, 120 30,036,811 29, 136, 007 28, 800, 217 23, 097, 921 20, 540, 231 19, 592, 962 15, 274, 028 10, 9-16, 696 13, 058, 893 14, 678, 660 I 16,873,200 21, 152, 784 24, 033, 2.50 24, 452, 021 29, 170, 816 27, 083, 599 26, 237, 035 Divi Dividends Earnings aJZaJ'4-J to capital . to capital canl^ *"'l'*"'- "idsux. capital. pj^^ pi^g Per cent. 5.42 5.16 4.96 5.18 4.90 5.07 .5.12 5. 22 5! 09 4.81 .5.09 5.01 4.88 4.92 4.50 4.39 4.54 3.99 3.81 3.78 3.82 3.99 4.03 4.13 4.25 4.33 4.40 Percent. 4.50 4.27 4.08 4.24 4.07 4.16 4.17 4.21 4.09 3.84 4.03 3.96 3.85 3.88 3.57 3.47 3.62 3.17 3.04 3.02 3.05 3.17 3.18 3.26 3.33 3.37 3.44 Percent S.04 5.77 5.19 5.21 5.02 5.00 5.36 5.41 5.46 4.82 4.86 4.66 4.56 3 62 3.25 3.12 2.50 2.83 2.31 2.53 2.96 3.70 4.18 4.22 4.98 4.5« 4.32 In the following table is given, by geographical divisions, the number of national banks, with their capital, which paid no dividends to their stock- holders during the two semi-annual periods eudiug starch and Septem- ber 1, 1882; to wliich has been added tlie total number of banks, with their caj^ital, similarly passing dividends during the semi-annual periods of each of the four preceding years, with the average for each year and the average for the whole period of five years. Gcograpbical divisions. New Encland States Middle Slaten ,. SoutiitTu Slat«8 Western States and Territories. Totals for 1882 . Totals for 18t:i . Totals for 1880 . Totals for IhlO . Totals for lt:78 . Average for cacb year Six months ending — March 1, 1882. b'inks' Capital. 173 175 220 309 323 8 $1,.'?50.000 68 6, 763. 000 18 ' 1,640.000 89 7, 43U, 500 Scptomber 1,1862. Average for the year. b'l^ukl i Capitab I ^-^i I Capital. 118 $2, 206, 000 8, 725, 000 2, 337, OOi) 12,812,730 11 $1,778,000 60 ! 7,744,000 21 I 1,988,500 104 10, 121, 615 17, 183, 500 20,321,530 no, 407, 200 .5:1, 843, 700 48, 797, 900 210 171 233 299 3.-.7 20, 080, 730 18,387,5.'.0 20, 334, 150 44, 576, 300 58, 736, 950 196 i 173 230 304 I 343 I 21,632,115 19, 354, 540 28, 370, 675 49, 210, 000 63, 767, 425 242 I 34,110,766 256 I 34, 823, 136 249 34, 466, 951 170 PAPERS ACCOMPANYING THE The pfrcHTitacTO to ca])ital of di vidoiuls i)ai(l, and of dividends and earn- in^t's, respectively, to combined cajiital and surplus, is shown by similar geogiapliical divisions for the years 1877 to 1882, inclusive: 18T7. 1878. 1879. Geographical divisiuus. Divi- dends to capital. ,^'7'- 1 Earnings Divi- dcndsto cai)ital. Divi- dends to capital and sur- plus. Earnings to capital and sur- plus. Divi- dends to capital. aE}a1',^ Earninea 11^ New England States Middle St.ates.. SoUtluTll.Sliltl'S Wosleni St.it ct and Territo- ries Per ct. 7.6 8.5 8.3 12.2 Per ct. Per ct. 6.0 i 4.7 C.6 5.4 7.1 1 7.1 9. 6 7. 2 Per ct. 6.9 7.9 7.3 9.6 Per ct. 5.5 6.1 6.2 7.8 Per ct. 4.3 4.9 5.7 6.9 Per ct. 6.4 7.9 7.0 9.4 Perct. 5.2 6.1 CO 7.5 Per ct. 4.2 5.4 7.1 United States. . 8.9 7.1 5.6 1 7.8 6.2 ; 5.1 7. 6 i 6. 1 5. f 1880. 1881. 1882. Geojirnpliical divisiou.s. Divi- Divi- dends to dends to capital capital, and sur- plus. Eaminffs to capital and .sur- plus. Divi- dends to capital. -iH^f^ Earnings denusto . .J*:, capital io<^apifal Divi- dends to capital. Divi- dends to capital anfl sur- plus. Earnings to capital and sur- plus. New England St.ites Middle States. . SoutliernStates Western States and Territo- Per ct. 6.8 8.4 7.8 9.5 Per ct. 5.5 6.5 6.7 7.6 Perct. 6.4 8.6 7.6 9.3 Per ct. 7.2 8.5 8.3 10.4 Per ct. 5.8 6.4 6.9 R 1 Per ct. 7.3 9.4 11.3 ^^ R Per ct. 7.1 8.4 8.2 12.0 Per ct. 5.7 6.3 6.7 in Perct. 6.8 8.6 10.3 15.7 • 1 1 United States 8. 6. 4 7. 9 8. 4 j 6. 6 j 9. 2 8. 7 1 6. 8 8.9 In the appendix may be found tables exhibiting the amount of divi- dends and earnings of the national banks, arranged by geographical divisions, for semi-annual periods from September 1, 1873 ; also an ab- stract of rei)orts of di\idends and earnings for the two semi-annual periods of the present year, and a table, by States and reserve cities, of the ratios to capital and to combined capital and surplus of the divi- dends and earnings from March 1, 1877, to September 1, 1882. LOSSES. During the year ending September, 1882, losses in their business on every account, including losses on technical bad debts, nnder section 5204 of the Revised Statutes, and premiums on United States bonds, have been charged oil" l)y the national banks, amountingto $11,321,912.93. Of this sum S-l:,9<»3,15.3.22 was charged otf during the six months end- ing March 1, 1882, and $6,361,757.71 dui'iug the six mouths ending Sep- tember 1, 1882. The following table shows the number of lianks charging off these Josses and the amount charged off in each State and reserve city in the United States for the semi-annual periods named above. REPORT OF THE SECRETARY OF THE TREASURY. 171 States and Tcnituiics. March 1, 1882. X... of baiiks. Losses. September 1, 1882. No. of bauks. Losses. Aggregate. Maine Ni'W ifnnipsiliire Vi'iinont ilaMsacliusutta Boston Rliode Island Connectifut New York New York City . . Albany New J erse.v I'ennsvlv;iiii;i riiiladrlphiii ritt.sbui';h Belawaie Maryland lialtiniore District of Colunibia. Wasliitifrton Vir;^iula West Virginia North Carolina South Carolina Georjria yioiiila Alabama New Orleans Texas Arkansas Kentucky Louisville Tennessee Ohio Cincinnati Cleveland Indiana Illinois Chicago Micliifian Detroit "Wisconsin Milwauki c Iowa Minnesota Missouri SaiutLouis Kansas Nebraska Colorado Nevada California S;in Francisco Oregon Dakota Montana Ni-w Mexico A\'a»liin;;ton Wyoming 34 27 20 97 36 22 47 138 40 5 47 114 25 13 8 9 $70. 0.34 73 43, 309 91 84,831 31 355, 709 27 269, 632 31 130,931 ."iO 179,671 07 4n2, 230 69 400,519 U.S 21,401 38 261,295 73 309,020 24 333, 833 66 119, 205 00 43, 566 00 12, 939 37 33, 047 05 17,145 01 34,345 71 1,110 79 23, 007 94 79, 300 74 18,201 00 1,957 20 43, 099 ('8 23,811 21 47, 7r>l 25 9,515 90 76,650 80 37, 245 99 40, 510 90 2.56, 334 03 13,474 68 47,621 14 106,422 07 139, 146 49 101.933 50 72, 400 47 50, 147 58 28, 789 96 1.5,217 22 06, 200 20 06,801 04 54, .526 74 70, 940 63 10, 6H4 84 12, 041 81 66, 312 91 692 65 28, 192 99 10,439 04 24, 355 CO 33, 0.54 71 3, 404 45 4, 098 40 5, 790 48 097 55 36 22 21 101 41 30 53 132 41 5 50 111 $100, 926 28 79, 877 71 90, 848 43 370, 248 93 285, 210 51 76, 950 71 152, 105 13 439,013 51 815,959 14 84, 790 97 205, 6H8 03 255,080 14 255, 253 93 992, 381 21 10. 176 70 85,854 63 104,116 35 2, 200 00 29, 490 93 63, 688 53 3, 171 75 80.692 33 44, 880 17 32, 781 87 5 00 9,343 38 129, 905 30 58, 358 43 3,716 42 42, 721 40 19,894 14 30, 221 03 311,295 37 70,405 19 0.5, 740 74 108, 330 09 149, 522 02 03,521 05 76, 930 40 12, 191 .58 42, 531 37 695 09 87, 750 70 70,402 99 .59,077 10 75.693 70 20, 613 70 19, 945 50 166, 565 84 3S1 07 10, 882 25 5, 937 43 22, 029 81 2,289 97 1, 018 G8 434 16 Totals for 1882 1,199 4,963,1.55 22 A'IdforlKSl I 1,210 i .5,8X9,70119 AddlorlWO I 1,300 7,.563,8HC04 Ad9 I 2, 81 00 51 940, 740 21 512, 323 31 448, 520 15 379,802 55 111,095 76 958, 103 91 SURPLUS. In the following table is exhibited the gradual accumulation of a sur- plus fund under the provisions of section 5199, requiring each associa- tion, before the declaration of the semi-annual dividend, to carry to sur- plus one-tenth of its net profits for the preceding half year, until such fund shall amount to 20 j)er cent, of its capital. Dates. . • Amount. Semi-annual increase or decrease. Dates. Amount. Semi-annual increase or decrease. July4 1864 $1,129,910 8,663,311 31, 303, 566 43, 000, 371 50,151,992 59, 992, 875 C;i, 232, 811 70, .586, 126 75,840.119 81,100,937 82,218,576 9U, 174, 281 9],0.S9, 8:i4 94, 705, 740 98, 322, 204 101,573,154 105,181,943 111,410,249 116, 847, 455 Increase. December 26, 1873.... June 26 1874 $120 961, 268 1261239,308 130,485,641 133, 169, 095 133, 08.5, 422 131, 897, 197 131,390,605 124, 714, 073 121,568,4,55 118, 178, 531 116,200,864 114, 321, 376 115,429,032 118, 102, 014 121, 824, 629 126,679,518 129, 807, 494 131, 079, 251 Increase. $4, 113, 813 5, 278, 040 4, 246, 333 2, 683, 454 January 2,1865 Jiilj-3, 1865 .., January 1,18C6 July2, 1866 $7, 533, 401 22, 640, 255 11, 090, 805 7, 151, 621 9, 840, 883 3, 239, 936 7, 2.5.3, 315 5, 253, On.i 5, 329, 818 1. 048, 639 7, 955, 705 1, 51.5, 553 3, 015, 900 3,616,464 3, 2.50, 9.50 3, 608, 789 6, 228, 306 5, 437, 206 December 31, 1874... June 30, 1875 December 17, 1875 June 30, 1876 January 7, 1867 July], 1867 83.673 1, 188, 225 506, 532 6, 676, 592 3, 145, 618 3, 389, 924 1,977,667 1, 879, 488 Increase. $1, 107, 656 2 672 082 January 6, 1868 July '1868 December 22, 1876.... June 22, 1877 Jan>iarv4, 1869 June 12 18G9 December 28, 1877 Jnne 29, 1878 January 22, 1870 June 9,1870 I January 1, 1879 ' June 14, 1879 December 28, 1870 ... Juao 10, 1871 Docombor 12, 1870 Junnll, 1880 December 16, 1871... June 10 1872 December 31, 1 0... Juno 30, 1881......... December 31, 18 1... July 1,1882 3 7''2 615 December 27, 1872... June 13, 1873 4, 8.54, 889 3 187 976 1 211 757 Practically the law requires that the surplu.s fund of each bank shall at all times equal an amount equal to one-tenth of its total net earnings since it commenced business. Manj' of the banks accumulate the fund much faster than this, and some pass dividends for the purpose of doing so. Some do not stop at the twenty per cent, limit named in section 5199, but continue to increase their surplus until the latter is often greater than the capital stock. As the fund is very rarelj' dimini.shed except for such extraordinary losses as cannot be met out of current profits, it, together with the capital, constitutes the working fund of the bank by the use of which dividends are earnetl. JJearing this in mind, it will be seen that the returns made to stockholders of national banks for their investment are not excessive. In an e.xcellent pai)er on tlie national banks of the United States, read before the banker's Institute of Loiidcm, I'ngland, May 17, 1882, by Mr. liobert W. lianiett, an associate of the Institute, and published 174 PAPERS ACCOMPANYING THE in the journal of the Institute for July, 1882, the following comment is made : "Dividends paid by the banks have, on the whole, been satisfactory ; although, taking into consideration tlie value of capital in the United States and the g(Mieral rates of interest ])revailing, the average rate of dividends must be pronounced moderate." UNITED STATES LEGAL -TENDETI NOTES AND NATIONAL BANK CIR- CULATION. The acts of February 25, 1862, July 11, 1862, and March 3, 1863, each authorized the issue of 150 millions of dollars of legal-tender notes, mak- ing an aggregate of 450 millions of dollars. On January 30, 1804, the amount of such notes outstanding was $449,338,902, which was the highest amount outstanding at anj^ one time. The act of June 30, 1804, provided that the total amount of United States notes issued, or to be issued, should not exceed 400 mill- ions of dollars, and such additional sum, not exceeding 50 millions, as might be temporarily required for the redemj)tion of temporary loans. By the act of June 20, 1874, the maximum amount was fixed at 382 mill- ions. Section 3, act of January 14, 1875, authorized an increase of the circulation of national banks in accordance with existing law, without respect to the limit previously existing, and required the Secretary of the Treasury to retire legal-tender notes to an amount equal to eighty l)er cent, of the national-bank notes thereafter issued, until the amount of such legal-tender notes outstanding should be 300 millions, and no more. Under the operation of this act, $35,318,984 of legal-tender notes were retired, leaving tbe amount in circulation on May 31, 1878, the date of the repeal of the act, $340,081,016, which is the amount now out- standing. In the following table are given the amount and kinds of the outstand- ing currency of tlie United States and of the national banks on Jan- uary 1 of each year, from 1806 to 1882, and on November 1, 1882, to which is prefixed the amount on August 31, 1865, when the public debt reached its maximum. United States issues. Notes of na- Currency price of $100 gold. Gold Date. Legal-tender Old demand' Fractional tional blinks, in cl u d i n g gold notes. Aggregate. price of $100 cur- rency. notes. notes. currency. AuR. 31, 1865 . $432, 553, 912 $402, 965 $26, 344, 742 $176,213,955 $63.5,515,574 $144 25 $69 32 Jan. 1,1866 ... 425, 839, 319 392, 670 26, 000, 420 236, 636, 098 . 688, 867, 907 144 50 69 20 Jan. 1,1867 ... 380,276,160 221, 632 28, 732, 812 298, .588, 41 9 707,819.023 133 00 75 18 Jan. 1,1868 ... 350, 000, 000 159, 127 31, 597, 583 299, 846, 206 687,602,916 133 25 75 04 Jan. 1,1869 ... 356, 000, 000 128. 098 34, 215, 715 299, 747, 569 690, 091, 382 135 00 74 07 Jan. 1,1870 ... 350, 000, 000 113, 098 39, 762, 664 299, 629, 322 695, 505, 084 120 00 83 33 Jan. 1,1871 ... 3.'')6. 000, 000 101, 086 39, 995, 089 306, 307, 672 702, 403, 847 110 75 90 29 Jan. 1,1872 ... 3.^7, 500, 000 92, 801 40, 767, 877 328, 405, 431 726, 826, 109 109 50 91 32 Jan. 1,1873 ... 3.')8, 557, n07 84, 387 45, 722, 061 344,582,812 748, 947, 167 112 00 89 28 Jan. 1, 1874 . . . 378, 401, 702 79, 637 48, 544, 792 350, 848, 236 777, 874. 367 110 25 90 70 Jan. 1,1875 ... 382, 000, 000 72, 317 46, 390, 598 354,128,250 782, 591, 165 112 50 88 89 Jan. 1,1876 ... 371,827.220 69. 642 44,147,072 346, 479, 756 762, 523, 690 112 75 88 69 Jan. 1,1877 ... 300, 055, 084 65. 462 26, 348, 206 321, 59.5. 606 714, OM, 358 107 CO 93 46 Jan. 1,1878 ... 340, 943, 776 63, 532 17, 764, 109 321, 672, 505 689. 443, 922 102 87 97 21 Jan. 1,1879 ... 346,681,016 62, 035 16. 108,159 3J3,791,674 686, 642, 884 100 00 100 00 Jan. 1,1880 ... 346,681,016 61, 3.50 15, 674, 304 342, 387, 336 704, 804, 006 100 00 100 00 Jan. 1,1881 ... 346,081,016 60, 745 15, 523, 464 344, 355, 203 706, 620, 428 100 00 100 00 Jan. 1,1882 ... 346,681,016 59, 92C 15, 451, 861 .302,421,988 724, 614, 785 100 00 100 00 Nov.l, 1882... 346, 681, 016 59, 380 15, 402, 120 302, 727, 747 724, 870, 263 100 00 100 00 REPOET OF Til?: SECRETARY OP THE TREASURY. 175 The act of June 20, IST-i, i)rovi(lefl tliat any national hanking asso- ciation might witlidraw its ciicuhiting notes upon the deposit of hiwful money with the Treasurer of the United States in sums of not less than $9,000. Since the passage of this act, 8ir)4,424,041 of Lawful money have been deposited -with tlie Treasurer by the national banks for the puri)Ose of reducing- their circulation, aud $120,150,640 of bank notes have been redeemed, destroyed, and retired. In the following table is shown, by States, the amount of circulation issued and retired during the year ending November 1, 1882, and the total amount issued aud retired since June 20, 1874. states and Ten itorics. ifaino New lliimpshire Vermont Mas.sachiisetts Rhodt? Island ConiHictieut New York New Jersey Pennsylvaiiia Delaware Maryland District of Columbia. Virginia West Viro:inia North Carolina South Carolina Georgia Florida Alabama. ._ Mississippi Louisiana Texas Arkansas Kentucky Teune.'^aee Missouri Ohio, Indiana .... Illinois Michigan . . Wisconsin , Iowa. Minnesota Kansas — Nebr.iska . Nevada Oregon Colorado . . Utah Circulation issued. $253. 400 540, 000 L'5i. no 1, fxit), 200 443, 120 755, 380 2, 792, 820 209, 250 2, 573, 080 45, 000 235, 750 171, 200 45, 000 9,000 85, 500 2,900 C7, 500 87, 100 259, 590 38, 240 657, 990 288, 000 260,710 4, 270, 670 9()3, 090 1,048,050 1, Otil, 080 423, UOO 979, 140 202, 500 240, 310 620, 970 Idaho Montana Wyoming New Mexico . Dakota Washington . California Arizona 45, 000 1C5, 600 99, 000 Circulation retired. Act of June 20, 1874. 3,070 334, 742 2, 352, 033 773, 659 1,071,921 3,711,140 594, 128 2, 617, 877 20, 450 55, 060 19, 245 67, 125 53, 790 125, 216 91, 643 57,.406 74, 895 23, 169 27, 696 18,818 285, 630 17, .503 216, 607 no2, 3:4 878, 361 511,402 440, 118 140, 238 100, 320 138, 979 69, 540 99, 305 Liquidating banks. $41,571 39, 858 123, 229 2,638 55, 220 346, 618 257, 168 226, 740 4,443 15, 308 44,280 14, 901 20, 855 26, 019 13, 176 120 11,540 10, 728 459 41, 800 39, 792 121, 731 434, 320 362, 014 192, 528 129,119 88, 495 148, 357 107, 558 50, 334 2,010 165 19, 959 3,860 Total. $104, 641 39. 858 401,624 2, 475, 263 776, 297 1. 127. 141 4, 057, 758 851, 296 2,844,617 20,450 59, 503 34, 553 111.405 68, 691 146, 071 91,643 83,425 88,071 120 34.709 38, 424 19, 277 327, 430 57. 295 .138, 338 1, 336, 674 1, 240. 375 703, 930 569, 237 228, 733 248, 677 246, 537 125, 874 101,315 165 19. 050 3,860 Total Surrendered to this ofBco and retired 149, 000 45, 000 .54, 000 243, 000 lOH, 0(10 32. 400 30, 000 26, 006 22, 4&J, 250 7.50 42, 335 29, 585 16, 022, .591 3, 099, 380 Total From June 20, 1874, to Oefoher 31, 1881 Surrendered to this ollicu between same dates . 22,404, 2.50 i 122, 727, 005 I 16,022,501 83, 438, 504 3. 099, 380 17, 596, 080 55,651 7.50 42, 335 19,121,971 753, 0.58 19, 875, 029 101, 034. 074 12, 20.-.. 7.55 Grandtotal I 145,192,155 1 99,461,185 20,095,460 133.116,358 The amount of circulation issued to national banks for the year end- ing Xovember 1, 1882, was $22,404,250, inclndiug !?(;,5()0,()S() 'issued to banks organized during the year. The amount retired during the year 176 PAPERS ACCOMPANYING THE was $19,937,630, and the actual increase for tlie same period was there- fore $2,526,620, makin/:? the total on November 1, 8361,940,358. During the year en(linj]j November 1, 1882, lawful money to the amount of $26,501,045 was deposited with the Treasurer to retire circulation, of which amount $7,805,754 was deposited by banks in liquidation. The amount previously deposited under the act of June 20, 1874, was $107,978,052 ; by banks in liquidation $19,945,.j44, to which is to be added a balance of $3,813,675 remaining from deposits made by liquidat- ing banks prior to the passage of that act. Deducting from the total the amount of circulating notes redeemed and destroyed without re- issue ($120,156,646), there remained in the hands of the Treasurer, on November 1, 1882, $38,081,670 of lawful money for the redemption and retirement of bank circulation. NATIONAL BANK AND LEaAL-TENDER NOTES BY DENOMINATIONS. CIRCULATING NOTES OF THE BANK OF FRANCE AND IMPERIAL BANK OF GERMANY, BY DENOMINATIONS. In accordance with law, no national-bank notes of a less denomina- tion than five dollars have been issued since January 1, 1879, when the amount outstanding was $7,718,747. Since that date the amount of ones and twos issued by the banks has been reduced $6,778,189, and during the same period the legal-tender notes of these denominations have been increased $12,435,707. During the last year the amount of national-bank notes of these de- nominations has decreased nearly' one-half, to 940,558, the amount of the decrease being $910,724. The total increase of the amount of ones and twos outstanding, in national-bank and legal-tender notes, is $5,657,518. The following table shows, by denominations, the amount of national- bank and legal-tender notes outstanding on October 31, 1882, and the aggregate amounts of both kinds of notes at the same period in 1880 and 1881 : Denommations. Ones Twos Fives Tens Twenties Fifties One hundreds Five Im mlreds One thousands Five thousands Ten tliousands Add fornniedcenied fragments of national-banknotes Deduct for lo;j:altender notes destroyed in Chicago fire Total . 1882. National- bank notes. $813, 800 126, 758 96, 920, 955 122, 713, 260 84, 001, 540 23, 657, 100 ol, 598, SOO 953, 500 197, 000 Legal-tender notes. $27, 255, 144 25, 473, 197 68, 344, 110 72, 012, 211 60, 716, 419 24, 145, 545 34, 237, 890 14, 671, 000 12,200,500 2, 395, 000 230, 000 +18, 233 —1, 000, 000 361, 000, 946 i 346, 681, 016 Aggregate. $28, 068, 944 25, 599, 955 165, 265, 065 194, 72.5, 471 150, 717, 950 47, 802, 645 65, 836, 690 15. 624, 500 12. 397, 500 2,395,000 230, 000 + 18,233 —1, 000, 000 1881. Aggregate. $25, 793, 171 24, 254, 366 168, 380, 062 196,717,671 151, 922, 503 46, 441, 775 63. WD, 370 14, 949, 500 12, 260, 500 2, 430, 000 260, 000 + 16,586 —1, 000, 000 1880. Aggregat*. $24, 247, 362 23, 036, .=;78 167. 042, SOS 189, 655, 58S 147, 719, 837 45, 777, 475 .59. 958. 600 16, leh, 50il 14, C40. .500 56.5, 000 320, 000 +15, 129 —1, 000, 000 707,681,962 1 705,622,504; 688,744,407 The amount of one and two dollar notes outstanding is but one-fourth of one per cent, of the whole circulation of the banks; the fives consti- tute 2G.0 per cent., the tens 34 per cent., the twenties 23.3 per cent., REPORT OF THE SECRETARY OF THE TREASURY. 177 while the fifties and larger notes are only 15.G per cent, of the entire circulation. While the amount of ones and twos of the national-bank circulation is steadily diminishing, the legal-tender notes of these de- nominations are as steadily increasing. Of the entire amount of national-bank and legal-tender notes out- standing, about 7.5 ])er cent, consists of one and two dollar notes; more than 30.8 per cent, of ones, twos, and lives; more than 58.3 per cent, is in notes of a less denomination than twenty dollais, while about 79.6 per cent, is in notes of a lower denomination than iil'ty dollar.^. Of the entire issue about twenty per cent, is in denominations of fifties, one hundreds, five hundreds, and one thousands. There are also outstand- ing 479 legal-tender notes of the denomination of five thousand, and 23 notes of the denomination of ten thousand. The following table* exhibits by denominations the circulation of the Imperial Bank of Germany on January 1, 1882, in thalers and marks, which are here converted into our currency : Thalors. Marks. Number of pieces. Denoruiua- tiODS. Value of each piece in dollars. Anionnt in dollars (Thaler= 75 cent«.) Xiimborof pieces. Denomina- tions. Value of c-vch piece in dollars. Amount in dollars. (Mark =25 cents.) 81 2,195 1, 682i 8, 621 500 thalers. 100 thalors. 50 thalers. 25 thalers. 10 thalers. 375 00 75 00 37 50 18 75 7 50 30, 375 164, 625 63. 094 101, 644 66. 993 207, 588 195, 642 4, 920, 300 1, 000 marks. 5li0 marks. 100 marks. 250 66, 897, 000 125 1 24, 455, 250 25 1 123, 007, 500 8, 932J 1 21,512 486, 731 5 383. .S30 214, 359, 750 The circulation of the Imperial Bank of Germany on January 1, 1881, was $201,036,187, showing an increase during tlie following year of $13,323,563; on January 1, 1879, the circulation was $105,933,94:2, show- ing an increase during the three years preceding January 1, 1882, of $48,425,808. The following tablet gives the circulation of the Bank of Franco and its branches, with the number of pieces, and the denominations in francs and in dollars, on January 26, 1882: ■Nnmber of pieces. Denominations. Value of each piece in dollars. Amount in francs. Amount in dollars. (rranc=20 cents.) 5 1,305,028 6p8, 400 2, 823 9, 626, 652 3, 464, 329 24,110 233, 845 182, 700 1,217 .">, 000 francs. 1, 000 fninoH. .^OO francs. 200 francs. lOi) francs. 50 francs. 25 francs. 2(1 francs. 5 francs. Forms out of date. 1,000 200 100 40 20 10 5 4 1 25, 000 1, 365, 028, 000 314, 200. 000 .'■<64, 600 962, 665, 200 173,216,450 602, 750 4, 676, 900 913, .'.10 424, 2'. 6 5,000 273. 005. 600 08. 840, 000 irj,920 192, .533, 010 34. 643, 290 120, 5.-.0 935. 380 182, 700 84, 8,'>5 15, 589, 100 1 2. 852, 310, 675 670, 403, 335 1 The amountof (jirculation of the Bimlc of France on January 27, 1881, was 2,524,081,780 francs, or say $504,810,356, showing an increase bo- 12 Al> * London Banker's Majjazine, Augnst, 1882, p. 623. \Jbid,, Suptcmbcr, p. 7'12.. 178 PAPERS ACCOMPANYING THE twcen that time and January 26, 1882, the date of the forefroing table, of 328,23'1,895 francs, or $05,016,979, and since January 30, 1879, an in- crease of 501,345,845 francs, or $112,209,169. It will bo seen that the Imperial Bank of Germany has in cii(nilation no notes of a less denomination than seven dollars and a half (ten thalers), and issues none of less than twenty-five dollars (one hundred marks); and that the Bank of France issues but little over a million and a quarter of a less denomination than ten dollars. The Bank of England issues no notes of less than £5, or twenty-five dollars, and the Irish and Scotch banks none of less than £1, or five dollars. REDEMPTION. Since the passage of the act of June 20, 1874, section 3 of which re- quires the banks at all times to keep on deposit in the Treasury 5 per centum of their circulation as a redemption fund, that fund as a rule has been maintained, and circulating notes of the banks have been promptly redeemed at the Treasury, without expense to the government. The following table exhibits the amount of national-bank notes re- ceived for redemption monthly by the Comptroller of the Currency for the year ending October 31, 1882, and the amount received for the same period at the redemption agency of the Treasury, together with the total amount received since the passage of the act of June 20, 1874: Received by the Comptroller. Months. From national banks for re- issue or sur- render. From redemp- tion afiency for reissue. 2^otes of na- tional banks in liquida- tion. Under act of June 20, 1874. Total. Received at redemption agency. 1881. November December 1882. $20, 000 31, 500 18,010 84,500 84,610 58, 400 227, 450 44, G20 93, 350 95, 020 24. 500 100, 650 $3, 572, 200 3, 949, GOO 5, 003, 100 5, 187, 200 5, 567, 500 4, 747, 800 5, 862, 700 7, 138, 200 3, 967, 900 4, 100, 400 3, 340, 200 5, 549, 400 $201.03: 55,433 228, 603 253, 553 222, 584 169, 751 265, 364 486, 820 280 685 $1, 089, 555 754. 086 1, 442, 970 1,272,610 1, 498, 148 1, 045, 803 1, 807, 888 2, 065, 193 OS.T 7fi9 $4, 882, 846 4, 790, 649 6, 692, 6S3 6, 797, 863 7, 372, 842 6, 021. 814 8,163,402 9, 734, 833 $5. 034, 073 6, 484, 104 8 185 651 Febniary 6,345,210 6, 671, 918 7 248 503 May 9, 042, 611 8, 980, 367 7, 363, 382 6 ''96 071 June t.. July 35l' 358 1, ioi] 440 1 5,' 948^ 218 148,6.58 1,181,773 | 4,701,131 210 745 1 575 185 i 7 435 980 September October .5, 640, 717 fi Rr.« ISO 1 ' ' Total Received from June 20, 1874, to October 31, 1881. 882, 610 13, 074, 089 67, 992, 200 429, 748, 255 2, 874, 675 16, 120, 473 j 77, 869, 958 84, 150, 789 17, 695, 793 83, 605, 213 ' 544, 123, 350 , 1, 100, 523, 263 Grand total.. 13, 956, 699 487, 740, 455 20, 570, 468 99, 725, 686 ; 621, 993, 308 1, 184, 674, 053 j Trom the passage of the act of June 20, 1874, to November I, 1882, there was received at the redemption agency of the Treasury $1,184,074,058 of national-bank currency for redemption. During the year there was received $84,150,789, of which amount $30,577,000, or about 30.3 per cent., was received from banks in the city of Now York, and $8,706,000, or about 10.4 per cent., from banks in the city of Boston. The amount received from Philadelphia was 80,412,000 ; from Chicago, $4,465,000; Providence, $1,532,(K)0 ; Baltimore, $1,102,000; Cincinnati, $1,430,000; Saint Louis, $1,201,000; Pittsburgh, $929,000. The amount of notes fit for circulation returned by the redemption agency to the REPORT OF THE SECRETARY OF THE TREASURY. 170 banks of issue during the year was $4,017,100. The decrease in this class of notes has been very marked in the past five years, the amount for the year ending October 31, 1878, having been $151,083,200, or 75.4: per cent, of the whole amount received, and for the year only 4.7 per cent. The total amount received by the Comptroller of the Currenoy for destruction from the agency and from national banks direct was $74,995,283. Of this ajnount'$5,820,140 were the issues of banks in the city of Xew York, $7,287,443 of Boston, $3,104,471 of Philadelphia, $2,359,092 of Providence, $1,170,578 of Baltimore, $1,475,002 of Pitts- burgh, $598,100of Cincinnati, $580,274 of Louisville, $204,530 of Chicago, $159,400 of Saint Louis, $404,909 of New Orleans, and of each of the other principal cities less than $400,000. The following table exhibits the number and amount of national-bank notes, of each denomination, which have been issued and redeemed since the organization of the system, and the number and amount out- standing on November 1, 1882 : Number. DeDOininations. Issued. Sedeemed. Outstand- Amount. Issued. Redeemed. 0", 490 Diuiiip the year ending October 31, 1866 1 , O.'.O, 382 Dnring the year ending October 31, 1807 3,401,423 During the year ending October 31, IKiS 4 , (j(»2, ft'*J."> Dnring the year ending October 31, lb(30 H, (1(I3, 7'29 During tho year ending October 31, 1870 14,305, G.S9 During tiie year ending October 31, 1871 .' -M, 344, 047 During llie year en,741 During the year ending October 31, 187;') 137, t)L>7, «il»6 During the year ending October 31, 1.-S7G 1)8, t>7;i, 71() During the year ending October 31, 1877 7ti, 'J18, 963 During tho year ending October 31, 1H78 57, :{81,i»49 During tlio year ending Octobir 31, 1879 41, l(tl,8:!0 Dnring the year ending Ocfolicr 31, IssO :^,^, .'">:(".), CitlO During the year ending October 31, IHHl 54,941, 130 During the year ending October 31, L-^-^ 74,ltl7,()ll Additional amount of notes of national bauk-s in li(iuidation 31, 1'Ji), .V.MI Total 781,425,608 180 PAPERS ACCOMPANYING THE RESERVE. The following table cxliibits the amount of net rlepositfi, and the re- serve required thereon l)y the act of June 20, 1874, together with the amount and classification of reserve held by the national banks in New York City, in the other reserve cities, and by the remaining banks, at the dates of their reports in October of each year from 1875 to 1882: NEW YOKK CITY. Nnm- ber of banks. Net <\e- posits. Reaerve required. Reserve held. Classification of reserve. Amount. Ratio to deposits. Specie. Other law- ful money. Due from! Redemp- agents. ,tion fund. October 1, 1875. 48 47 47 47 47 47 48 50 Minions. 202.3 197.9 174.9 189.8 210.2 268.1 268. 8 254.0 Milliom. 50.6 49.5 43.7 47.4 52.6 67.0 67.2 63.5 Millions. 60.5 60.7 48.1 50.9 53.1 70.6 62.5 64.4 Per cent. 29.9 30.7 27.5 26.8 25.3 26.4 23.3 25.4 Millions. 5.0 14.6 13.0 13.3 19.4 58.7 50.6 44.5 Mitliont. 54.4 45.3 .34.3 36.5 32.6 11.0 10.0 18.9 Millions. Minions. 1 1 October 2, 1876. October 1, 1877. October 1, 1878. 0.8 0.8 1. 1 Octoli6r2, 1879. October 1, 1880. 1.1 9 October 1, 1881 . 1 Octobers, 1882. 1.0 OTHER RESERVE CITIES. October 1, 1875. 188 223.9 56.0 74.5 33.3 1.5 37.1 32.3 3.6 October 2, 1876. 189 217.0 54.2 76.1 35.1 4.0 37.1 32.0 3.0 October 1, 1877. 188 204.1 51.0 67.3 33.0 5.6 34.3 24.4 3.0 October 1, 1878. 184 199.9 .50.0 71.1 35.6 9.4 29.4 29.1 3.2 October 2, 1879. 181 228.8 57.2 83.5 36.5 11.3 33.0 35.7 3.5 October 1, 1880. 184 289.4 72.4 105.2 36.3 28.3 25.0 48.2 3.7 October 1, 1881. 189 335.4 83.9 100.8 30.0 34.6 21.9 40.6 3.7 October 3, 1882 193 318.8 79.7 89.1 28.0 28.3 24.1 33.2 3.3 STATES AND TERRITORIES. October 1, 1875. 1,851 307.9 46.3 100.1 32.5 1.6 33.7 53.3 11.5 October 2, 1876. 1,853 301.7 43.8 99.9 34.3 2.7 31.0 65.4 10.8 October 1, 1877. 1,845 290.1 43.6 9.5.4 32.9 4.2 31.6 48.9 10.7 October 1, 1878. 1,822 289.1 43.4 lOG. 1 36.7 8.0 31.1 56.0 11.0 October 2, 1879. 1,820 329.9 49.5 124.3 37.7 11.5 30.3 71.3 11.2 October 1,1880. 1,859 410.5 61.6 147.2 35.8 21.2 28.3 86.4 11.3 October 1, 1881 . 1, 895 507.2 76.1 158. 3 31.2 27.5 27.1 92.4 11.4 Octobers, 1882. 2, 026 545.8 81.9 150.4 27.5 30.0 30.0 80.1 11.3 SUMMARY. October 1, 1875 October 2, 1876. October 1, 1877. October 1, 1878 October 2, 1879. October 1, 1880 October 1, 1881. Octobers, 1882. 2,087 734.1 152.2 235.1 32.0 8.1 2,089 706.6 147.5 236.7 3.3.5 21.3 2, 080 669.1 138.3 210.8 31.5 22.8 2,053 G78. 8 140.8 228. 1 33.6 30.7 2, 018 768. 9 159. 3 260.9 33.9 42.2 2,090 968.0 201.0 323. 33.4 108.2 2,132 1,111.6 227. 2 321. 6 28.9 112.7 2, 269 1, 118. 6 225.1 303.9 27.2 102.8 25.2 8.5.6 1.3.4 87.4 00.2 73.3 97.0 85.1 95.9 107,0 64.3 134.6 59.9 133.0 72.0 113.3 16.2 14.6 14.5 15.3 15.8 15.9 16.1 15.8 The following table, compiled from returns made to the clearing-house by the national banks in New York City, exhibits the movement of their reserve, weekly, during October, for the last seven years : REPORT OP THE SECRETARY OF THE TREASURY. 181 Week en dins- October 7,1876. October 14, 1876 October 21, 1876 October 28, 1876 October 6,1877 October 13, 1877 October 20, 1877 October 27, 1877 October 5,1878 October 12, 1878 October 19, 1878 October 26, 1878 October 4,1879 October 11, 1879 October 18, 1870 October 25, 1879 October 2, 1880 October 9, 1880 October 16, 1880 October 23, 1880 October 30, 1880 October 1,1881 October 8,1881 October 15, 1881 October 22, 1881 October 29, 1881 October 7,1882 October 4,1882 October 21, 1882 October 28, 1882 Specie. 17, 682, 600 16, 233, 600 15,577,500 14,011,600 14, 665, 600 14, 726, 500 14, 087, 400 15, 209, 000 14, 995. 800 12, 184, 600 13,531,400 17, 384, 200 18, 979, 600 20, 901, 800 24, 680, 500 25, 630, 000 50, 823, 700 62,521,300 62, 760, 600 60, 888, 200 61,471,600 54, 954, 600 53, 287, 900 51, 008, 300 54, 016, 200 55, 901, 200 47. 016, 000 48, 281, 000 49, 518, 200 48, 374, 200 Legal tend- ers. 45, .W5, 600 43, 004, 600 41.421,700 41,645.600 36, 168, 300 35, 178. 900 35,101,700 34, 367, 800 38, 304, 900 37, 685, 100 36, 576, 000 35, 690, 500 34, 368, 000 32, 820, 300 29, 305, 200 26, 713. 900 11, 129. 100 10, 785, 000 10, 939, 200 10, 988, 200 10, 925, 000 12, 150, 400 12. 153, 800 12, 452, 700 12, 496, 500 12, 947, 900 18, 384, 500 18, 002, 700 17, 023. 900 17, 204, 700 Ratio of reserve to- I Total 63.218,200 59, 238. 200 56. 999, 200 55, 657, 200 50, 833, 900 49, 905, 400 49, 189, 100 49, 576, 800 53, 300, 700 49, 869, 700 50, 107, 400 53, 074, 700 53, 347. 600 53, 722. 100 53. 991, 700 52, 349, 900 70. 952, 800 73, 306, 300 73, 699, 800 71,876,400 72, 396, 600 67, 105, 000 65, 441, 700 63, 461. 000 66, 512, 700 68, 909, 100 65, 400, 500 66, 283, 700 66.542,100 65. 578, 900 Circula- | tiun and | Deposits. deposits. Percent 30.5 28.8 27.8 28.0 27.0 26.7 26.5 26.8 25.7 24.4 24.7 25.8 23.3 23.4 23.5 23.0 25.4 25.4 25.5 24.0 25.0 23.1 23.1 23.2 24.6 25.6 24.0 24.7 25.0 24.8 Percent 32.4 31.1 30.0 30.3 29.5 29.2 29.0 29.4 28.4 27.0 27.3 28.5 25.8 25.9 26.1 25.5 26.4 27.2 27.1 26.6 26.7 24.8 24.9 25.0 26.6 27.4 26.8 26.6 26.8 26.5 APPENDIX. Tables will be found in the appendix, exhibiting the re.serve of the national banks as shown by their reports, from October 2, 1874, to Octo- ber 3, 1882; the reserve by States and principal cities for October 3, 1882 ; and in the States and Territories, in New York City, and in the other reserve cities, separately, at three dates in each year, from 1878 to 1882. Special attention is called to the synopsis of judicial decisions, to the numerous and carefully prepared tables in both report and appen- dix, and to the index of subjects and list of tables to be found at the close of the appendix. At the end of the full volume of more than seven hundred pages, which contains separate statements of 2,2G9 na- tional banks as returned by them for October 3, is an alphabetical list of the cities and villages in which the national banks are situated. In concluding this report the Comptroller gratefully acknowledges the efficiency of the officers and clerks associated with him in the discharge of official duties. JOHN JAY KJSrOX, Comptroller of the Currency. Hon. Joseph W. Keifer, Speaker of the House of Representatives, 182 PAPERS ACCOMPANYING THE EEPORT OF THE DIRECTOR OF THE MINT. Treasury Department, Bureau of the Mint, October 12, 1882. Sir: I bave the honor to submit iny fourth, tlie tenth annual report of the Director of the Mint since the organization of tliis Bureau, show- ing the operations of the mints and assay offices of the United States during the fiscal year ended June 30, 1882. The receipts of foreign coin and bullion declined, aiul at the close of the year had almost entirely ceased, yet a large amount of bullion was deposited for parting and refining, and the mints were fully occupied in coining the silver pnrchased for that purpose, and the large amount of gold i)reviously received from foreign countries as well as that pro- duced during the year by the mines of the United States. The import of gold continued to exceed its export during the first half of the fiscal year, at the close of which the excess amounted to $30,100,230. In the latter part of the year the movement was reversed and the excess of the exports over the gold imijorts was $28,311,047, reducing the net gain during the whole of the fiscal year to $1,789,183. DEPOSITS AND PURCHASES. « The deposits of bullion and coin, exclusive of redeposits, were, of gold, $GG.75G,C52.95, and of silver, including purchases, $33,720,491.42, mak- ing' a total of $100,477,144.37; of which $57,993,080.03 of gold and $1,787,385.07 of silver were again deposited, making the total amount receive62. . Distributed $1,250,802 $15,941,135 $1, OfiO, 991 11,051,075 11,000,000 12,301,877 4, 248, 069 8, 053, 808 2ti, 941,135 25, 114, 407 1, 820, 728 763, 000 $5, 088, 132 4, 958, 000 $23, 341, OCO 27, 772. 075 1, 823, 991 1, 200, 901 10,040.132 4, 742, 295 51, 113, 135 35, 365, 072 5C:i, 090 5, 303, 837 15, 747, 4C3 Of the $27,772,075 coined during the year, $12,025,783 had not at the close of the year been called for or moved from the mints, and of the total standard dollar coinage there were still in the mints $35,o(>5,G72. From the monthly statement of assets and liabilities the following table exhibits the coinage, movement and circulation, by periods of six months each, from July 1, 1882, to October 1, 1882: COMPARATIVE STATEMENT of the COINAGE, MOVEMENT and CIRCULATION of STANDARD SILVER DOLLARS at the end of each six months from July I, 1881, to July 1, 188'.i, and for the three vionths ending September 30, 1882. Period. Total coin- age. In the Treasury. « 2 I p,cs a-i.5 July 1, 1881 $91,372,705 $39,110,729 January 1, 1882 ,105,380,980 i 62,315.320 July 1, 1882 '119, 144, 7hO 54,506,090 ■October 1 , 1882 : 120, 029, 880 03, 205, 780 $23, 433, 993 $62, 544, 722 7, 274, 617 I 69, 5ii9, 937 32, (VJ7, 726 I 87, 1.13, 816 29, 022, 869 I 92, 228, 649 $28, 827, 983 35, 791, 043 31, 980. 964 34,007,011 The amount of silver dollars put into circulation from the Xew Or- leans Mint exceeded the (coinage of the year at that mint about $400,000, while at tiie IMiihidclphia Mint it was $3,000,000 les.s, at the San Fran- cisco Mint over $9,000,000 less, and at the Carson Mint $200,000 less than the yearly coinage of these mints respectively. « ArPROPEIATIONS, EARNINGS, AND EXPENDITURES. The total amount appropriated for the supjiort of the mints and assay offices for the hscal year emlcd June 30, 1882, wa.s $1,20!),()(>0, of which amount the sum of $1,170,205.21 was expended. In addition thereto there wasexjiended from the apjiropriatiou contained in^th«'act author- i;cing the coinage of the standard silver dolhir, passed February 28, 1878, the sum of $137,550.01 on account of the mints, and $2,173.37 at the Treasury Department, :i total of $13'J,73'_'.08. Of this amount $10,124.80 was paid tor four automatic wt-igiiing machines, two of them to be used at riiiladelphia and two at San Francisco. 188 PAPERS ACCOMPANYING THE The appropriations for the several mints and assay offices, and the amounts expended irom them, are shown in the following table : APPROPRIATIONS. 1882. Inatitution, CO So a 1/ ta .3 a o O Coinage of the stand- ard silver dollar, act of February 28, 1878 (iudeflnitc). Total. Philadelphia Mint $34, 850 00 24, 900 00 23, 550 00 21, 400 00 10, 950 00 33, 150 00 5, 950 00 3, 000 00 2, 750 00 5, 500 00 $300, 000 00 260, 000 00 65, 000 00 85, 000 00 12, 000 00 25, 000 00 12.000 00 $100, 000 00 70, 000 00 30, 000 00 35, 000 00 0, 000 00 9, 000 00 10, 000 00 6, 000 00 . 2, 000 00 *16, 000 00 $434, 850 00 354, 9U0 00 118 550 00 New Orleans Mint 141 400 00 Denver Mint 28, 950 00 67, 150 00 New York Assay OfHce Helena Assay Office 27, 950 00 Boise Assay Office Ckarlotte Assay Office 9 000 00 4, 750 00 21, 500 00 Saint Lonis Assay Office Tetal 166, 000 00 759, 000 00 284, 000 00 1, 209, 000 00 EXPENDITURES, 1882. Philadelphia Mint San Francisco Mint Carson Mint New Orleans Mint . . Denver Mint New York Assay Office Helena Assay Office Boise Assay Office , Charlotte Assay Office . , Saint Louis Assay Office Total 424 72 900 00 550 00 974 14 950 00 073 59 950 00 000 00 750 00 999 80 $299, 999 27 259, 896 42 64, 237 00 84, 994 95 10,497 75 24, 830 25 9, 744 79 , 999 38 $121, 619 30 "' ^ 12,417 76 62, 892 46 28, 474 85 34, 637 30 4, 125 68 8, 988 32 6, 756 77 5, 233 62 1, 503 30 t8, 880 85 3, 522 55 160, 572 25 I 754, 200 43 261, 492 53 137, 559 61 $555, 042 67 360, 106 64 116, 261 85 143, 128 94 25, 573 43 66, 892 16 22, 451 56 8, 233 62 4, 253 30 11, 8S0 65 1, 313, 824 82 * Includes $10,000 for fixtures and apparatus, tinoludes $6,896.11 for fixtures and apparatus. In the appendix will be found a statement showing the total earn- ings and gains from all sources at the mints and assay offices during the year, and the total expenditures, wastages, and losses of all kinds. The gross earnings amounted to $4,268,742.56, and the gross expendi- tures and losses to $1,689,544.68. A statement is also given showing the wastage of the precious metals at each of the mints during the year and the loss occasioned by the sale of bullion in sweeps. The total value of the precious metals wasted during the year at the four coinage mints and the Xew York Assay Office was only $36,658,93 ; while bullion of the value of $16,685.28 was returned by the melter and refiner of the mint at San Francisco in excess of the amount with which he was charged, and by the melter and refiner at the ISTew York Assay Office of the value of $21,729.15, making a total gain of $38,414.43, or a net excess over and above the entire amount of bullion wasted of the value of $1,755.50 ; showing that on the large amount of gold and silver bullion operated upon at the mints of the United States and the New York Assay Office, there was an absolute gain of over seventeen hundred dollars. The loss on the sale of sweeps is not, strictly speaking, a loss in the REPORT OF THE SECRETARY OF THE TREASURY. 189 ordinary operations of the mints, but represents the difference between the value of the gold and silver contained in sweepings, as determined by assay, and the price received for the sweeps, which are sold because the mints, with their inadequate fiicilities for working such material, cannot extract gold and silver of sufficient value, less expenses, to equal the sum which smelters will pay for them. REFINERY EARNINGS AND EXPENDITURES. The charges collected during the year for parting and refining bull- ion, which by law are appropriated for the payment of the expenses of those operations, amounted to $278,882, of which the sum of $264,609.56 was paid out for expenses. The following statement shows the amounts collected and expended for parting and refining bullion, including that portion of the wastages of the operative officers and the loss on sweeps sold, properly payable from that fund : Institntion. Charges col- lected. Expenditnres. Philadplphia Mint ■ San Francisco Mint...., Carson Mint New Orleans Mint New York Assay Office Total.-, $10, 850 97 158, 200 21 14, 749 24 176 10 94, 905 48 278, S62 00 $6, 518 51 154,864 62 15, 320 61 252 26 87,653 56 264,609 56 The net excess of the earnings of the refineries over the expenses from the first of July, 1876, to June 30, 1882, remaining in the Treasury of the United States, amounted onthefirstday of July last to $153,311.80. This is a very satisfactory exhibit, especially in view of the fact that the rates charged for parting and refining at some of the mints had been reduced and were less than in previous years, aud shows that the refin- eries have been more than self-supporting. The charges for parting and refining collected during the year at each institution were sufficient to defray the expenditures of those operations, except at Carson and Kew Orleans. The slight deficiencies at those mints were occasioned in part by the payments of bills accruing in for- mer years, and will not, it is believed, necessitate an increase in the rates of charges. ANNUAL ASSAY. The annual assay to test the weight and fineness of the coins struck at the mints during the calendar year 1881 was made at the Philadel- phia Mint on the second Wednesday of February last, as required by law. Assays were made and the weights tested of the reserved coins from deliveries in each month throughout the year, and the results were reported by the committee on weigliiiig "that all the coins weighed are within the limits of exactness rocjuired by law, and that, in fact, very few vary from the standard by one-half tlie tolerance"; and by the com- mittee on assaying that tliey had taken the gold and silver coins re- served from the several mints "and have assayed the same in mass, and also the individual coins," and that — Tho CToatest deviation from 1 hi* standard in tlio coin.igo examined is f;ir within the imits allowed by law, aud exliibits a remarkable degree of uniformity in mixture. 190 PAPERS ACCOMPANYING THE while there appenrs a very great perfection of workmanship. An analysis of the cop- per alloy x>re6ent shows that it is substantially in accordance with the law and rogu- JatioQS. Whereupon it was resolved by the commission — That the asaay commission having examined and tested the reserved coins of the several mints for the year 1881, and it appearing that these coins are within the tol- erance prescribed by law, the trial is considered and reported as satisfactory. ESTIMATION OF THE VALUES OF FOEEIGN COINS. The estimation of the Director of the Mint and the proclamation of the Secretary of the Treasury, on the 1st day of January, 1882, of the x^alues of standard coins in circulation of the various nations of the world will be found in the appendix. The valuation of foreign coins estimated in the circular of January 1, 1882, was based npon the average price of silver bullion for the last three months of 1881 to December 29. The average price was 51.886 pence per ounce British standard, and the equivalent price 113.74 cents per fine ounce. Upon this basis the following changes were made in the values of sil- ver coins from those estimated by the circular of January 1, 1881 : The Austrian florin, from 40.7 cents to 40.6 cents ; the Japan yen, from 88.8 cents to 88.7 cents. The •< gourde" of Hayti was estimated to be worth 96.5 cents. EXAMINATIONS AND ANNUAL SETTLEMENTS. An account was taken at each of the mints and at the New York As- say Office at the close of the fiscal year of the coin, bullion, and other moneys belonging to those institutions in the hands of the superintend- ent, and delivered to him by the operative officers. The annual examinations of the operative officers were superintended by the Director or a representative of the Bureau, and were found sat- isfactory, the wastage in no case exceeding the legal limits. The gold bullion operated ui)on in the melter and refiner's depart- ments in the mints and New York Assay Office amounted to 14,618,071 standard ounces, on which the legal allowance for wastage was 14,618 standard ounces, and the actual wastage 835.27 standard ounces. Of silver bullion 54,540,070 ounces of standard fineness were operated upon, on which the legal limit of wastage was 81,810 ounces, and the actual wastage 7,996 ounces. In the coiner's departments, 10,616,313 ounces of gold of standard fineness were operated upon, on which the legal limit of wastage was 5,308 ounces, and the actual wastage 470 ounces. Of silver bullion 47,203,782 ounces were operated upon, upon which the legal limit of wastage was 47,293 ounces, and the actual wastage 4,279 ounces. The total wastage at all the institutions during the year was 1,305.27 ounces of gold, of the value of $24,306.30, and 12,275 ounces of silver, of the value $12,352.63. Besides the annual settlements, special examinations were had at the San Francisco and New Orleans Mints to ascertain the facts in respect to charges aftecting their management, and the result of the examina- tions, with the evidence, were submitted to the Secretary of the Treasury. A special settlement also was made at the close of the calendar year at the New York Assay Office, having been rendered necessary by rea- son of the resiguation of the superintendent, Thomas C. Acton, and the appointment of Pierre C. Van Wyck as his successor. REPORT OF THE SECRETARY OF THE TREASURY. 191 REVIEW OF THE BUNT SERVICE. Besides tlie current oflice work of this Bureau in su])ervisinj;j tho operations of the mints and assay offices, their contracts, i)urcliases, and expenditures, in examining tlieir monthly and quarterly accounts, and their daily, weekly, and monthly reports, their business transac- tions, coinage, &c., much time was given to the procuring and compil- ing of statistical information concerning the production of the precious metals in the Uuited States and the preparation of a special report thereon. At the laboratory of the Bureau 1C6 deliveries of gold coins and 16S silver coins were tested by assays of the coins forwarded from the mints for that purpose, and assays were made of ores received at this office from various portions of the country, the receipts for which, amounting to $261, were depositeriMiioM contained in the act for the coinage of the standanl silver AN FRANCISCO MINT. This mint at its annual si^ttlement made a favorable exhibit of its condition and operations, and appeared in all its dei)artments to be in excellent order. The coiner had a small wastage. The inciter and re- finer's settlement was quite satisfactory and creditable to him. lie re- turned an excess of $l(i,085. 28 in gold and $1,560.43 in silver above the amouid charged to him. 'I'he work of this mint in coinage was about the same as in the ]>revions year, ia,!K)0,(K)0 pieceshaving been struck in 1882,and 14,234,000 in 1881. Although the value of the gold coinage in 1882 was less, the number of 192 PAPERS ACCOMPANYING TUE pieces executed was 334,000 greater than in 1881 , while the silver coinage, which was wholly of silver dollars, was $400,000 less. Some official changes occurred during the year. At the commence- ment Mr. E. F. White superseded F. X. Cicx)tt as coiner, and the super- intendency of the mint, which for over four years had been under the able and careful management of Mr. IT. L. Dodge, was at the close of the year surrendered to Mr. E.F. Burton, who, although previously appointed and commissioned, preferred not to enter upon duty until after the an- nual settlement and with the commencement of a new fiscal year. CARSON MINT. The difficulty in procuring silver for coinage was less than that ex- perienced in former years, and coinage operations, which had been pre- viously suspended, were resumed in the month of October and con- tinued during the remainder of the year. The refinery was kept open during the whole year for the purchase of silver and reception of deposits for parting and refining. The work performed at the Carson Mint, as to the value of the de- posits, number of pieces, and value of the coinage, was nearly double that of the preceding year. The annual settlement made at the close of the fiscal year was satis- factory. NEW ORLEANS MINT. Less silver was purchased for coinage at the I^ew Orleans Mint than in the preceding year, and although there was a greater coinage of gold, the number of pieces and value of the silver coinage was about a mill- ion and a half dollars less than the i^revious year. At the commencement of the year the coiner, Mr. J. W. Helflfrich, re- signed. Mr. B. F. Butler, his assistant, was designated by the Secre- tary as acting coiner, and had charge of that department of the mint until appointment of Mr. F. K. Jones, February 10, 1882, who, as soon as confirmed, was placed in charge. ■ NEW YORK ASSAY OFFICE. Mr. Thomas C. Acton, the superintendent of the Kew York Assay Office, whose administration of its afiairs for over twelve years had been characterized by a most faithful, efficient, and economical management, having been tendered a more responsible official position, resigned the superintendency and delivered the office at the close of the calendar year to his successor, Mr. Pierre C. Van Wyck. During the year deposits amounting to $35,994,087 in gold and $7,168,260 in silver were received. The silver deposits were nearly $2,000,000 in excess of those of the pre- ceding year, while the gold deposits were upwards of $63,000,000 less in amount, owing to a decrease in imports of foreign bullion and coin. Bars were manufactured to the value of, gold, $35,887,653.08, and sil- ver, $7,092,393.25, being about $64,000,000 less of gold bars and about $2,000,000 more of silver bars than were made in the previous year. DENVER anNT, AND ASSAY OFFICES AT CHARLOTTE, HELENA, BOISE, AND SAINT LOUIS. The value of the gold and silver bullion deposited at these institu- tions, and of the unparted bars manufactured, was much, greater than in the preceding year. REPORT OF THE SECRETARY OF THE TREASURY. 193 The charges collected for melting', assaying, and stamping bars were $1,G94.07, and for assays of ores, $2,138. The total earnings of all the institutions were $4,955.72, some $700 less than in the previous year. The increased value of the deposits aiid of the bars manufactured arose from a greater amount of bullion being received and bars manu- factured at the Denver Mint and Helena Assay Office, the deposits of gold at the former having increased from $2o5,137.15 to $458,847.07; silver, from $3,805.77 to $7,053.02; and the value of bars manufactured from $238,942.02 to $405,900.09. Tlie growth of business at Helena was, in deposits of gold, from $308,525.1 3 in 1881 to $684,475.53 in 1882, and in silver deposits from $84,314.97 to $145,306.05, and in the value of bars manufactured from. $652,840.10 to $829,781.58. MONETARY STATISTICS OF THE UNITED STATES. Since submitting my last annual report inquiries relative to the pro- duction, import, export, and consumption of the precious metals, and to their circulation as money, have been, as heretofore, diligently prose- cuted, and much valuable information obtained. The facts that have been gathered are here classified and summarized, and the more important tabulated for convenient comi)arison or refer- ence. PRODUCTION OF THE PRECIOUS METALS IN THE UNITED STATES FOR THE FISCAL. YEAR 1882. At the close of the calendar year 1881, after an extended review of the production of gold and silver in the mining districts and counties in the States and Q'erritories, a careful estimate was made of the total production of the United States and published in the special report transmitted by the Secretary of the Treasury to Congress in June last T then estimat-ed the total production for the calendar year 1881 to have been, of gold, $34,700,000, and of silver, $43,000,000; a total of $77,700,'00O. The production by States and Territories was estimated to have been as follows : Production of fjold and silver in the Uniied States during the calendar year, 1881 hy States and Territories. Ck)ld. Alaska : $15,000 Arizona ' 1.060. OOO (;aliforuia IK, 200,000 Colorado : :f, :«>o, 000 Dakota..." 4,000. 000 Oorsia i 125.000 Idaho ].7tK),000 Maine .* Montana I 2,330.000 Jfevada ■ '-,250,000 2sew Mexico 1 1)C>. 000 Xorth Carolina I 115,000 Orejion 1,100,000 South Carolina . ToiinosBee... TtaL Virginia Washington. Wyoming ... .Jo, 000 5,000 145,000 10,000 120,000 5,000 Silver. Total ^ 34,700,000 aT)" $7, 300, 000 750,000 17, 160. 000 70,000 1, 300, 000 5,000 2, 630, 000 7,060,000 275,000 50,000 6,400,000 43, 000, 000 TotaL tl5,000 360,000 950.000 460,000 070,000 125,000 000,000 5,000 060,000 310,000 460,000 115, 000 150,000 36.000 5.000 545,000 10,000 120,000 6,000 77,700.000 194 PAPERS ACCOMPANYING THE The. production of jjold liad declined and that of silver increased over tlioir production in i)reviou.s years. From the dei)Osits made at the mints and tiie exi)orts of domestic l)ullion there appears to have been a still further falling olf in the production of gold and an increase in that of silver. The dei)()sits of domestic gold at the mints and assay oflicea during the calendar year 1.S81 amounted to $34,271, 350.4«5, aiul (luring the tiscal year 1882 to ■$31,208,511.07, a falling otf of about three millions of dol- lars. This decline ai)pears to have been in the production of the States on the I'acilic slope. The deposits of domestic gold at the San Fran- cisco and Carson Mints, which amounted to $2(1,011, ()17.o() in the calen- dar year 1881, during the fiscal year amounted to only $22,708,0(53,44, a decline of $3,302,354.00. During the calandar year 1881 the deposits and i)urch;ises of domestic silver were $27,809,213.12, while during the fiscal year ended flune 30, 1882, they had increased to $30,950,588.18, a gain of over three millions of dollars; but the exi)orts of domestic silver, which in the calendar year were reported, at their commercial value, at $12,790,280, were reduced in the fiscal year to $11,053,547, a decline in the export of domestic silver bullion, computed atits coiningvalue,of about $1,300,000, leaving the net gain in the silver i)roduction for the year over that of the preceding year about $1,700,000. Making allowance for the same amount of domestic undeposited gold and silver used in the arts (hiring the fiscal year as in the calendar year, the total produ(;tion for the tiscal year may be approximately estimated at $31,500,000 for gold and $44,700,(300 for silver. CONSUMPTION OF THE PRECIOUS METALS. As the in(]iniries prosecuted for three ^ears to ascertain the amount of gold and silver annually used in the United States in manufactures, the arts, and ornamentation had resulted in obtaining for the year 1881 sufticient data for future approximate estimates, no circulars were sent for obtaining information as to the amount used during the last fiscal year. It Avas estimated in last year's report that there were annually consumed in the United States for industrial purposes $11,000,000 of of gold and $0,000,000 of silver, of which amounts $5,500,000 of gold and $5,000,000 of silver were estimated to be domestic bullion. A report was obtained, as usual, from the New York Assay Office, which is published in the appendix, and shows the following as the amount and character of the gold and siher deposited for bars to bo sui)j)lied to manufacturers: Bars furnished to maiiufacturers. Of United States coin Of foreign coin Of forciiin Vnillion Of plate, A.C Of domestic bullion . . Total Gold. Silver. Total cold and silver. $4!i, Ml 06 5S2, 1.34 28 84:i, -2^1 -26 (i90, OGo 81 5, 200, 075 85 $1.5,8ii7 7:i 154, 522 07 102, 22<> .■i.") 191, 719 3H .5,444,111 10 $61, 378 79 680, 670 35 1, 035, 507 61 881.783 14 10, 6.J0, 187 01 7,317,086 26 i 5.998,446 64 13,315,532 90 The statement shows that the bars prepared and delivered for the use of manufacturers exceeded in value those of the previous year by, REPORT OF THE SECRETARY OP THE TREASURY. 195 gold, SI, 500,000, and silver, $870,000; and that the increased consump- tion consisted of gold and silver of domestic production. For the fiscal year 1882 the consumption, therefore, of the precious metals in the United States for use in the arts, &c., probably exceeded $12,000,000 of gold and $7,000,000 of silver, of which $7,000,000 of gold and $0,000,000 of silver were of domestic production. COIN CIRCULATION OF THE UNITED STATES. The total circulation of the United States coin amounted, as nearly as can be ascertained, on the 1st of Julv, 1882, to $500,000,000 of gold and $200,000,000 of silver, a total of $700,000,000. This estimation is based upon the gains to the metallic circulation by coinage less recoinage, and imports less exports of United States coin since 1873, at wliich time 1 estimated the circulation of United States gold coins at $135,000,000, and of United States silver coins at $5,000,000. The (circulation was estimated in my last annual report to have been, on the 30th of June. 1881, $439,770,753 of gold and $171,459,700 of silver. During the year $599,357 of United Stat«'S gold coin and $127,572 of United States silver coin were dejiosited at the mints and remelted. There were also exported of United States gold coin $29,805,289, and imi)orted $4,790,030, being an excess of exports over imports of $25,'()8,059. Of silver coin the imjjorts were $940,877, and the exports 8423,099, being an excess of imports over exports of $517,778. Sub- tracting from the total gold coinage of the year the recoinage, the ex- cess of exports over imports, and the coins used in the arts, not depos- ited at the mints or assay offices, estimated at $2,700,000 (based on last year's estimate of $3,300,000 as the total consumption of such coins), nuikes the gain daring the year in United States gold coin $01,005,432, and the total amount in the country on the 1st of July, 1882, $500,882,185. In like manner, subtracting from the silver the deposits for recoinage, and the estima.ted con8U*mj»tion of $00,000 nndeposited silver coins used in the arts, and adding tlie excess of imports over exports, nuikes the gain to the silver cirenlation during tlie year $28,113,594, and the total silver circulation of United States sihcr coin on the 1st of July, 1882, $199,573,300. The following table shows the gain during the year: Unitwl StnteB coin. Gold. Silver. Totjil- Circulation, June 80, IKS 1 $4:10,776,753 $171, 4,-.9,7C(5 | $011,230,519 Vfiu'HcoiiMfie, less (lii)(t«itfi for recoinage Bg, Ml, U'.U I :i7, Cfo, 810 H8,4t)9,«u7 Kxcnas of inipoi-te over pxports I I f'17, 778 | 517, 778 Tnt.il Less excess of exports over import «. KeiimiiKler Loss iimounls used in tho artn. Circulation July 1, 1882.. 5-28, 590, »44 •Jfi, OilH, cr.9 lun, 0:i3, 300 728. 224, 204 2S, l»ti8, 8."i9 503, .'^^2, IK") 2. 700. 000 109, C:t3, 3fi0 60. 000 703, 215, 54.') 2, 761). 000 500. 882, 185 199, ri73, 300 I 700,455,545 l^rom the Treasurer's statements of the amount of c<»in in the Treas- ury, and gold and silver eertilicates outstanding, and from th(» reports of tlie national hanks to the Comptrollerof the Currency, and ccrtiticates held by them, it would ajtpear tiiat on the 1st of July, 1.S82, the gohl and silver of the country, «lo(lucting fiom the amount held by the Trciisury 196 PAPERS ACCOMPANYING THE the certificatos onfstandiuj]^ and counting as coin tliose held by banks and in cinniliitioii, l)clong(?d as follows: Ut'longing to— Tronsurv Nntioiiiii hatikf Other baiilts... Private liauili). Total. Gold. * $80, 935, 4S3 1 103, 943, 999 ♦ 20, 000, 000 ) H 290, 002, 783 ( Silver. Legal tender. Subeidiary. ' $32, G47, 720 : 4, 000, 000 Total. $28, 048, 630 $60, 696. 356 : 3, 750, 203 I f 7, 750, 263 32,497,054] 48,629,687 131,126,741 Total United StateH gold and Hilvor coins. *$147.631,83« 1111,694,262 11441,129,444 500,882,185 119, 144, 780 | 80,428,580 199,573,360 1 700,455,545 * Lees ont.standinK certificates, t Including Treasury certificates. t Estimated. ii Including Treasury certificates. Since the 1st of July and up to October 1, 1882, the coinage of gold was $13,339,863, and of silver, $6,915,185 ; the excess of exports of gold coin over imports about $3,031,012, anil of imports over exports of silver coin, $121,225; leaving the circulation on the 1st instant of United States coins, gold, $512,191,036, and silver, $206,609,770, and total of $718,800,806, as appears from the following statement : Gold. SUver. Total. Cireulation July 1,1882 Coinage to October 1, 1882 Excess of imports over exports to October 1, 1882 Total * Less excess of exports over imports $500, 882, 185 13, 339, 863 $199, 573, 360 $700, 455, 545 6, 915, 185 20, 265, 048 121,225 121,225 514, 222, 048 206, 604 770 2, 031, 012 Circulation October 1, 1883. 512, 191, 036 206, 609, 770 720,831,818 2,031,012 718, 800, 806 * All ports for July and August, only New York and San Francisco for September. Besides this amount of gold and silver coin, there was in the mints and assay offices on thS 1st of October, deposited or purchased for coin- age, gold bullion of the value, approximately, of $51,410,420, and silver bullion costing $3,343,565, making a total of coin and bullion belonging to the Uni'ted States and awaiting coinage, of gold, $563,631,456, and of silver, $209,953,335, a total of $773,584,791. TOTAL CIRCULATION OF THE UNITED STATES. The total paper and metallic circulation of the United States in Gen- eral Table No. XXXI, showing the circulation of the various countries of the world, is given for October 1, 1882, as $793,074,878 paper, and $773,585,790 metallic,* a total of $1,566,659,668, being a per cainta of $15.81 paper and $15.42 metallic. The paper circulation of the United States in that table includes United States notes, national-bank notes, and gold and silver certifi- cates, fractional currency to the amount of $7,028,078, omitting the small amounts of unredeemed legal tender, demand, and interest-bearing notes, which are seldom if ever seen in active circulation. As only a portion of the paper and metallic money is in actual circu- lation, in Table XXXII the Treasury and bank metallic reserves-are *Tbe figures given for the metallic circulatiou include tlie bullion in the mints and assay oflices. REPORT OF THE SECRETARY OF THE TREASURY. 197 stated; but tbe actual active circulation on the 1st day of July in the possession of the general public is to be reduced by the amounts of paper held at that date by the Treasury aiirl banks, which is shown in the following table, compiled in tliis Bureau from the bank and Treasury statements ])repared by the Comptroller of the Currency and the Treas- urer of the United States: State of circulation July 1, 1882. In Treasury. In banks. In active cir- culation. . Total. $56, 541, 887 3, 230, 908 91, 964, 5(i3 87,153,816 28, 04S, 631 8,100 11,590.620 34. 670, 589 6, 277, 247 17, 75^ • $50, 541, 887 3, 230, 908 $99, 503, 599 3, 200, 000 3.. 696, 223 4, 440, 400 8.54, 040 64. 019, 518 27, 740, 295 373, 725 $309. 3.''>4, 082 28, 790, 964 48, 683, 726 588.620 53, 652, 050 24f , 990, 909 324, 6.16, 458 6, 655. 708 500, 822. 184 119,144,780 80, 428, 580 Gold cert i ficates 5, 037, 120 Silver certificates 66, 096, 710 Uiiitcd States notes Nationalbauk notes 346, 681, 010 358, 680, OOO Fractional cuircuoy 7, 047, 347 Total 319, 504, 035 203, 833, 800 1, 020, 372, 577 1, 543, 710, 432 The character and possession of the paper and specie ciiculation of the United States at the commencement of the fiscal year appears in the following table, prepared from the same sources of inibrmation : State of circulatioti July 1, 1881, In Treaaiuy. In bank. In active cir- culation. TotaL Gold bullion $89, 017, 716 3, 309, 949 74, 153, 945 62, 544, 722 27, 247, 697 23. 400 12, 056, 801 30, 204, 092 5, 296, 382 53. 159 $89, 017, 710 $il6,'673,'27tV 3, 000, UOO 3, 482, 561 5, 137, 500 945, 590 58, 728, 713 27, 932, 850 372, 140 $249,' 549," 532' 25, 827, 983 49, 35C, 803 622, 020 38, 165, 139 257,748,211 321,812,708 6, 680. 654 , 3, 309, 949 439, 776, 753 ' 91, 372, 705 80, 087, 061 Gold certificiitPs .■;, 782, 920 51,166,530 346, 681, 016 National-bank notes 35.5, 042. 000 Fitictional currency 7, 105, 953 Total 303, 900, 863 215, 672, 630 949. 343. 603 1, 469, 342, 603 By comparing the foregoing tables for 1881 and 1882 it will be seen: 1st. That of the 74J millions of paper and metallic circulation gaineIe gained 71 millions, and the banks lx>st 11. J millions. 2d. That of the (U millions of dollars of gold coin gained to the circu- lation the Trtnisury, in reducifig its stock of gold bullion, retained nearly IS millions of the resulting gold coin and reduced the outstand- ing gold certilicates $750,000, while the national banks lost $10,500,000 in gold ccrin and nearly $700,000 of gold certitieates, and the general public gained $00,000,000. 3d. That as to the silver circulation, the silver dollars and silver cer- tificates in the hands of the public, including the banks, at the clo.se of the fiscal year, were over $18,000,000 more tliau at its commencement, while the silver coin in the Treasury not represented by outstanding certificates increased $24,000,000. 198 PAPERS ACCOMPANYING THE COURSE OF PRICES IN THE UNITED STATES 1881-1882, * The ])ri(;c8 of doinCHtic exports, as indicated by an avera^^o of the values declared at the custom-honse, shows an advance of 7 per cent, on the exi)ort prices of the previous year. The advance was ])rincipally in the i)rices of food exports, such as breadstuiis, provisions, live aniuials, &c., which constituted in value a large portion of the total exports. The prices of 1882, however, remained below the currency prices of exports in 1870, being" an average of 84 per cent, of the average de- clared i)riccs of the principal commodities in the latter year. As United States notes were at that period at a discount of 13 i)er cent., the prices of the exports in 1882 were 3 per cent, below the currency prices of 1870, reduced to the gold standard. A table is also inserted containing the average yearly prices in the New York market for the calendar years 1880 and 1881 of a large number of staple articles, and the comparative percentage of such prices for the year 1881, on their prices for the year 1880, and on their average i)rices for the preceding fifty-six years. The quotations for the last two years have been com- piled semi- weekly from the New York Shipping and Commercial List, tak- ing for each article, as far as i)racticable, the same grade and quality as that used in preparing the table for my last report. The average of the percentages of the jirices of 1881 compared with the prices of 1880 and -with the average prices for the fifty-six preceding years also indi- cate an advance in prices averaging on the prices of the same articles for the previous year of 10.6 i)er cent., and on their average prices for fifty-six years of 2.7 per cent. MONETARY STATISTICS OF FOREIGN COUNTRIES. Additional replies to those published in my last and previous annnal reports have been received from our representatives abroad, containing valuable information in relation to the monetary statistics of foreign countries, and are given in full in the ai)pendix. The information which they contain has enabled me to correct the tables of circulation, coin- age, and production to later dates. A condensed statement of the contents of these papers and of the monetary condition of the countries to which they respectively relate may be found useful, and is herewith submitted: GREAT BRITAIN AND COLONIES. Great Britain and Ireland. — ^The report of Mr. C. W. Fremantle, the deputy master of the royal mint of Great Britain, was received at my office, aiul found to contain, as usual, much important information, not only in regard to tlie coinage of the mints of the British Empire, but of the operations of the mints in other countries. From his report it appears that no gold coinage wa« executed during the year 1881 in Great Britain, but the silver coinage exceeded that of any previous year excej^t 1872 and 1873, and amounted to £997,128, equal to $4,852,523, of which £140,175 were transmitted to the British colonies to rophice £07, 543 IGs. ijd. of worn coin withdraAvn. The new silver coins sent to the colonies in 1880 amounted to £308,940, equal to $1,503,457, and the worn silver coin withdrawn to £80,425, er 19,03(1,000 92,6:^8,694 Paper 42,:]99,0U0 20(3,334,733 William King, esq., the consul of the United States at Birmingham, forwards, under date of July 11), 1882, an interesting report on the* assay otMce at that city, established in 1873 for the i)nrpose of assaying and stami)ing with otlicial marks articles of Jewelry, &c. India. — IMr. C. 0. Bancroft, acting vice consul-general of the United States at Calcutta, forwards, under date of September 10, 1881, a reply from the secretary of the government for India to certain inqnirios con- tained in a circular of this de])artment. The coinage for the year 1879 and 1880 is given as follows, to wit: JtiipecH. Gold 147,:{00 $54,447 Silver 71,bO:{,:{or 28,013,290 The gold coinage is probably given for the fiscal year ended IMarcli 31, 1880, and the silver coinage for the calendar year ended Deci-mber 31, 1880. The net gain of coin and bullion l)y imports for the calendar year 1880 is stated as — Ktipecs. Gold 33, 142,.''>:58 J12.92.'.,r.90 Kilvtr .'■>0, 4('0, .'■.02 19, 679, .'.96 The ciiciilation of silver coin is given as from $250,000,00(> to $.^jOO,000,0«»<>i witli 57,270,495 rupees=$22,;i;{5,493 of silver coin in the Treasury, and 0,905,525 rupees=$2,093,155 in banks, and the govern- ernment i)aper outstanding on JJeceml>er 31, 1S80, as 143,208,!)25 ru- pees=$55,874,88(>. 200 PAPERS ACCOMPANYING THE Tlic silvor coin in circulation has l)ccn cstimatefi, lor reasons and upon data given in my previous reports, at more than double the amount stated by Mr. IJancroft. Australasia. — U. iVI. Spencer, consul-general at Melbourne, furnishes an important rei)ort on the production, consumption, and movement of the precious metals in Australia. During- the year 1881 the gold coined in Melbourne and Svdney mints is stated as £4,047,002=$19,690,115. The gold exported from the diUerent provinces in 1880 exceeded the imports by £3,200,774=:$15,8G8,5nG, while the stock of silver the same year was increased by a net gain from imports of £180,085= §900,582. The product of the mines for 1880 was as follows : Gold £5,910,819 $28,765,001 Silver 4H,67:i 197,935 The condition of the banks on December 31, 1880, is shown by the following statement : Goldandsilver coin £11,475,294 |55,844,518 Gold and silver bullion h04,699 3,9r(j,068 Notesin circulation 4,405,276 21,438,276 G. W. Griffin, United States consul at Auckland, furnishes the fol- lowing statement of the production and exportation of gold from Ifew Zealand since the discovery of that metal in 1857 : 1857 $202,210 1858 -^2,215 1859 142,135 1860 87,925 1861 5,763,285 1862 7,956,945 1863 12,158,615 1864 9,289,235 1865 11,132,370 1866 14,222,585 1867 13,501,375 1868 12,521,630 1869 $11,814,975 1870 10,587,925 1871 13,937,600 1872 8,654,960 1873 9,937,125 1874 7,526,655 1675 7,038,850 1876 6,342,795 1877 7,480,400 1878 6.200,395 1H79 5,993,205 1860 (to June 30, 1880) 2, 996, 000 British Guiana. — The United States consul at Demarara writes that no mines of gold or silver exist in that colony, and that it has no mint. The value of the bullion imported during the year was $95,702, and of that exported $11,421. The principal coins in circulation are British silver, but American gold and Spanish doubloons also circulate. The outstanding paper circulation of the two banks of the colony on the 31st of December, 1880, is estimated at $691,790. Our minister at Paris furnishes, under date of July 8, 1882, very com- plete statistics from the minister of linance, touching the monetary affairs of France. The coinage for the year was — Francs. Gold 2,167,000 §418,231 Silver 6,733,445 1,299,554 The gain in gold bullion by imports during the year amounted to 33.638,040 francs, but there was a loss by export of 23,453,920 francs In gold coin, leaving a net gain to the country in gold of 10,184,120 francs =$1,965,553. REPORT OF THE SECRETARY OF THE TREASURY. 201 In silver tliere was a gain during the year of both coin and bullion as follovv'S : Francs. Coin 2U, 019, S'^O !^X Hft^ 82,'. Bullion :W, 8^4,9/4 r.,%0,60U The amount of ca.sh in the Bank of France on December 29, 1881, was, A'old, 655,696,391.18 francs=d'126,549;403; silver, l,161,468,i;{().ll francs =$224,163,349, an aggregate of 1,817,164,521.24 francs =$350, 7 12, 752, and the i)aper circulation outstanding at the same date was 2,778,428,840 francs= $536,236,766. .SWITZERLAND. In th<; dispatch of Minister Cramer, the gain in theprecions metals by excess of im])ortation into Switzerland during the year 1881 is stated a.s — Kilograms. Gold 2,200 81,4f.2,120 Silver 103,:?00 4,293,148 The circulation of bank notes amounted on December 31, 1881, to 109,867,000 francs=$21,204,331, and the coin in the Federal Treasury was at the same time as follows : Fra ncK. Gold 1,324,000 $255,532 Silver 462,000 89,166 The Belgian government transmits, under date of April 4 of the present year, three responses of the different bureaus of the govern- ment to the circular of this deparfment. No gold was coined in either 1880 or 1881 for the home government, but 3,261.457 kilograms=$135,546 were coined into fractional silver in 1880, and 915.676 kilograms=$38,055 in 1881. There was coined for the republic of Venezuela, during the vear 1880, 487.547 kilograms of gold=$324,024, into 20-Bolivar pieces. The imi>orts and exports for the two yeais are given as follows : KUojramg. 1880. Iinpoite, jjtold, 1,259 ^S.36,731 1880. Imports, silver 29,(>49 1,2:{2,212 1881. Ijiiiiorts, gold 488 324,325 1881. Imports, silver U2,21l 4,r)t)3,489 1880. Exports, gold 149 99,02:. 1880. Exports, silver 1,011 42.017 1881. Exports, gold 26 17,280 I88I. Exports, silver 80,293 3,336,^77 The gold and silver used in manufactures, jnesented for stamping at the bureau of guaiant0,OUO,000 $106,150,000 Five-franc, silver 100,000,000 19,300,000 Fractional silver currency 95, 000, OOO 18, 335, 000 In banks: Gold 110,000,000 21,230,000 Five-franc silver pieces 15,000,000 2,895,000 FrJictional silver currency 51,000,000 9,843,000 In the country: Gold 90,000,000 17,370,000 Five-franc silver pieces 100,000,1)00 19,300,000 Fractional silver currency 10,000,000 1,930,000 Or a grand total of 1,121,000,000 francs of coin, in addition to 340,000,000 of state notes, and 750,000,000 of legal-tender bank notes. The government is at present taking back from France the last installment of silver fractional currency of a))out 16,000,000 francs, paying for it in live-franc silver pieces. The amount of tive-franc silver pieces coined b}' iTalv is estimated at 380,000,000 franca, of which it is believed about 160,000,000 or l?5O,6O0,O00 will be out of Italy at the time of the resHimptiou of specie jtayments. There is, besides, in the country .a large amount of old silver money coined by the past governments, and which it would be rather dittlcult to estimate. The government has lately tried to issue some small quantity of silver i)ieces of 50 centimes (.5d), but they were immediately hoarded for tlie payment of custom duties. This would have caused a scarcity of change were it not for the large tiuantity of heavy coi)per money. REPORT OF THE SECRETARY OP THE TREASURY. 203 SPAIN. The dispatch from Hon. Dwight T. Heed, of the United States lega- tion at Madrid, under date of September 10, 1881, contains the follow- ing inforniation relative to the finances of Spain for the year 1880. The coinage executed was as follows : Pesetas. Gold 171, 57:}, (J75 $33,113,719 Silver 1,393,551 2(te,955 The net loss of gold coin by export was 9,110,484 pesetas = $1,758,323, while there was a gain in silver coin of 3,528,002 = §081,032. There were 74,500 kilograms of silver produced from the mines of Spain daring the year, valned at $3,000,220. The coin in the Treasury on December 31, 1880, is reported to have been : Gold 4,017,817 $775,444 Silver lU, 4(35, 920 2,019,923 PORTUGAL. A communication from Minister Moran, dated December 28, 1881, con- tains the following statistics regarding the coinage, &c., of Portugal during the year 1880: Kilograms. Gold coinage -- 524.775 §348,765 Silver coinage '-.... 3,500.768 145,492 The imports and exports for the same year are given as follows : Milreia. Imports : Gold 2,573,^01 §2,779,705 Silver 43,686 47,181 Exports : Gold 28,231 30,489 Silver 30, .588 .3:?,0:J5 Showing a net gain in gold of $2,749,210. and in silver of $14,140. GKIiMANV. Hon. n. Sidney Everett furnishes, under date of September 12, 1881, a statement of the gold imports and exi>orts of Germany tor the year 1880: Kiloftrnmi. IiiiportH H,025 §5,333,415 Exports 11,254 7,47.9,408 Showing a net loss to Germany during the year named by export of $2,145,993 in gold. AUSTRIA-HUNG AUY. Tlie lion. William Walter PIiclps, onr minister to Austria, has for- warded two disi)atches, under dates of November 29, 18S1, juid .Innc 21, 1882, containing very comjjlete information in relation to the monetary affairs of the Austro-IIungarian Empire. The coinage for 1880 is given a**: Vionii.a mint, f^old... florins.. 2,.'')85,7n6 $l,247,2fi4 Hungiirian niinti gold kilogiauis.. l,l504.U7HI 1, UH, '.»91 Vieuuii mint, si Ivor Ilorins.. 6,810,782 2,765, 177 Hungarian uiint, silver kilogiuiuH.. 42,384.644 1,761,506 204 PAPERS ACCOMPANYING Till: And for the year 1881 : Florins. Vienna mint, gjold 4, 147, 4cU Vienna mint, silver 0,67:3,482 $2, 000, 584 2,709,434 The imports and exports for 1880 and 1881 were as follows : 1880. Imports: Florins. Gold 21,35.''>,000 $10,300,584 Silver 6.965,217 2,827,678 1681. Imports: Gold 19,798,000 9, .549, 565 Silver 13,034,447 5,291,985 1880. Exports: Gold 3,277,900 1,581,095 SUver 15,342,3.51 6,228,995 1881. Exports: Gold 2,192,350 1,057,4«0 Silver 269,836 109,553 Showing a net gain by imports in the two years of gold $17,211,574, and of $1,781,315 in silver. The production of the precious metals during the same years was : Kilograms. Au.stria, 188'J, gold 43 $28,.578 Hungary, 1880, gold 1,604 1,066,018 Austria, 1881, gold ^ 1,867 1,240,808 Austria, 1880, silver 30",257 1,257,481 Hungary, 1880, silver 17,743 737,399 Austria, 1881, silver 31,359 1,30,3,280 An aggregate of 5,633,564 The paper circulation of the empire on the 31st of December, 1881, is given as stat« notes, 320,434,947 florins=$130,096,000, and Austro-Hun- garian Bank notes (legal tender), 354,287,560 florins=$ 143,836,000. The cash reserve in the treasury and in Austro-Huugarian Bank at the date mentioned was : In treasuries: Florins. Gold coin 6,000,000 $2,894,U0O Silver soin 14,000,000 5,684,000 Anstro-Hungarian Bank : Gold coin 68,725,532 33,159,760 Silver coin 122,130,827 49,585,116 The following comi:)arative table of imports and exports of gold aad silver from Austro- Hungary during the years 1881-'82 is from the London Economist of Julj' 22, 1882, and is for the year ending April 30 : Gold Gold coiu . . Silver Silver coin . Imports. 1881. 1882. £7, 116 272, 883 185, 95(5 150,183 Total £2,250 260,516 18.304 18,435 Exports. 1881. I 1882. £496 £200 62, 108 I 274, 534 400 I 7, 670 , 2, 929, 400 C16, 138 I 290, 505 70, 674 3, 204, 134 REPORT OF THE SECRETARY OF THE TREASURY. 205 The following- statistics in relation to the diaiti of jrokl from Kussia, compiled from the annual report of the Russian customs dei)artment, are taken from the London Economist of April 8, 1882 : Tears. Imports. Exports. Ifi75. 1876. 1877. 1SV8. 1879. 1880. 1881. $3, 816, 400 ."!, 092, 600 6,711,600 10, 462, 200 9, 146, 200 7, 501, 200 4, 474, 400 Escess of exports. 45, 204, 600 $18, 095, 000 67, :)76, 600 12, 238, 800 8, 751, 400 5, H.'iC, 200 17,305,400 44, 612, 400 174, 435, 800 46, 204, 600 129, 231, 200 XOnAV.W .\XT> SWKDEX. Hon. Joliu L. Stevens, in a communication dated September 9, 1881, furnishes two official dispatches, which contain valuable statistical in- formation relating to the finances of this kingdom. The coinage of 1880 (calendar year) was — Kilograms. Norway, silver 12 $499 Sweden, Bilver .5,368 22:3,094 Sweden, gold 1,133 752,992 The importation into Norway during the year amounted to, gold and silver, 2,483,000 crowns=$6(>r),414; the exports for the same period were, gold and silver, 753,800 crowns=$202,018; showing a net gain in both metals of $403,426. The imports and exi)orts of Sweden are given as follows: Imports ; KiloKrams. Gold 4,730 $3,143,.')oB Silver 3,74S 155, 7h7 Exports : Gold .'>7 37,882 Silver 586 24,354 The production of the mines is given as — Kilogmms. Norway, silver 4,436 $184,360 Sweden, silver 1,312 54,527 Sweden, gold 5 3,323 The circulation of Norway on the 31st of December, 1880, was about 24,000,0(M) crowns rn };()ld = 80,332,000; 4,000,000 crowns in silver= $1,072,000, and 38,714,000 crowns in pap('r=$10,37."i,3r)2; and most ot the gold was held by the liank.s and the public treasury. The circulation of Sweden at the same date is stated as follows: ('lOWIlB. Gold .Sr>00,(H)0 $1,474,000 SilvQT 11,000,000 2,iM'<,000 Paper 89.635,440 24,022,298 With bank reserves amounting to $6,330,315 in gold, and $1,481,572 in silver. DK.NMAlUi. Henry B. Ryder, United States consul at (Copenhagen, forwards two dispatches, under date of ^larch 9 and May 23 of the present year, in relation to the Kingdom of Denmark. 200 PAPERS ACCOMPANYING THE No coin a go, was ex(M:iito2,S21,lft3 65 1880 24,ri37,:}54 85 1881 ^5, 151,721 85 The same paper furnishes the following statement of the aggregate exports of gold and silver during the years 1878,1870, and 1880: Exported in — 1878 ?i->2, 663, 437 &i 1879 21,528,938 I'J 1880 22,086,418 36 ARGENTINE REPUBLIC. Ed. L. Balccr, United States consid at Buenos Ayics, funiislics an in- teresting article rclativn to the new coinage law of the liepublic, pro- viding that the gold or silver "peso," or dollar, shall be the unit of value — the gold dollar to contain 25.1 grains of standard gold, 000 line, and the silver dollar 25 grams (385.S grains), the same weight as 2 half- dollars of our])resent coinage, lie states that the national mint is now running day and night with a view to i)utting the new coins (S millions of gold and 4 millions of silver) iuto circulation as soon as possible. The government has issnerodnc- tion, andconsunii)tion of the ])recious metals in that country during the year 1881. He stat83, were coined at the national mint at Potosi into 20-cent and 10-cent i)ieces. The silver exported amounted to about 500,000 Bolivianos, equal to $411,500 in coin, and 8,000,000 Bolivianos, eqnal to $0,584,000 in ores. The production of the mines was, of gold, about 3,500 ounces, $72,345; and of silver, 1,100,000 marks, valued at $11,000,000. Xo gold is in circulation or in reserve in the banks. The silver circidation of Bolivia on the 31st of December, 1881, is estimated to have been 0,000,000 Bolivianos, equal to $4,038,000, with about 539,000 Bolivianos, equal to $443,507, in the various banks. The paper circulation at the sanui time (i)ank exclusively) amounted to about 1,374;809 Bolivianos, equal to $1,131,517. 208 PAPERS ACCOMPANYING THE CHILI. The United States consul at Valparaiso forwards a dispatch relating to the finances of Chili. The coinagefor the year 1880 was, gold, $108, 930; silver, $2,226,392.75, and for 1881, gold, $125,280; silver, $3,020,000.95. The imports and exports for the year 1880 are given as — Gold imports $16,945 Silver imports - - - ii6, 104 Gold exports 64,476 Silver exports 4,546,799 The production of the mines was about $128,809, gold, and $5,081,747 in silver. The circulation of the country on the 31st of December, 1880, was, coin, $2,500,000; paper, $28,469,813; and the paper circulation on December 31, 1881, was $26,555,341. The coin in reserve is stated as follows : In banks $1,600,000 In treasury 798,000 Minister Langstou forwards a special repo^ on the national bank of Hayti, and a copy of a law passed by the Co^ys LecjidaUf of the Eepub- lic of Hayti fixing the standard of weight, value, and denomination of the new gold, silver, and bronze national money, to be known as " gourdes," the aggregate to be 2,000,000 gourdes, and the coinage to be executed at Paris. He also furnishes a reply, under date of July 14 of the present year, to the Treasury Department circular inquiring in relation to the*^ monetary affairs of that republic. He states that $780,000 of the new silver "gourdes" were coined during the calendar year 1881, and put in circulation. The imports of gold coin amounted to $11,494, and of silver coin, in- cluding the new national money, $836,785, while the exports for the same period were, gold, $1,550, and silver, $517,488. Mr. Langstou estimates the gold of the republic to have been, on December 31, 1881, from three to five millions of dollars. URUGUAY. Consul A. L. Eussell forwards from Montevideo a dispatch relative to the coins used iu Uruguay and value at which the coins of other coun- tries are received. THE world's production OF GOLD AND SILVER. The production of the precious metals in twenty countries whose mines furnish nearly the entire product, is given as revised for the years 1879 and 1880, and is brought down to the close of the calendar year 1881. For the latter year, based upon estimates for some of the smaller pro- ducing countries," the total production of gold was, kilograms, 162,163, $107,773,157; silver, kilogTams, 2,349,689, $97,659,460. This is a slight increase upon the production stated for 1880, being about one and a half millions more in gold and three millions in silver. REPORT OF THE SECRETARY OF THE TREASURY. 209 THE WORLD S COINAGE. The coinage of the United States in both gold and silver has continued to be greater than that of any other nation. For the calendar year 1881 more than two-thirds of the year's gold coinage — $136,387,383 — and over one-fourth of the total silver coinage — $100,705,824 — were executed at the mints of the United States. The coinage for the three years 1879, 1880, 1881, officially obtained, is as follows : Tears. Coontriea. Gold. Silver. Total. 1879 14 16 15 $90,752,811 149, 045, 236 136, 387 383 $104,8?8,313 82,397, 1,14 100, 700, 824 $105,641,124 1880 232,042 390 1881 .- 237, 093, 207 Total 376, 785, 430 287, 001, 291 6C4, 776, 721 CIRCULATION OF THE PRINCIPAL COrNTRIES OF THE WORLD. A table giving the paper and specie circulation of thirty-four of the principal countries of the world, total and per capita, has been compiled from official dispatches and other accessible data. The paper circulation embraces both bank and government issues intended to be used as money, and the total amount of gold and silver coin in the countries, respectively, without deduction for such amounts as may be held as treasury or ba-nk reserves, and in most cases probably includes the bullion as well as the coin of the countries. The total amount of circulation of these countries is 83,825,220,078 paper, $3,353,673,748 gold coin, $2,182,768,866 silver full legal tender, $438,000,969 limited legal tender; total specie, $5,974,443,583; total circulation, including reserves, $9,799,663,661. A further table has been prepared stating the government and bank issues and the reported metallic reserves of gold and silver held in bank and treasury vaults. The total amount of government ])aper issue of thirty-one countries, given in Table No. XXXII, was $1,183,054,771 and the bank issue $2,642,165,307, a total of $3,825,220,078. The me- tallic reserves in the treasuries and banks of the same countries, as far as known, amounted to $1,698,986,763. An additional table is appended in which the amount of the bank and treasury reserves is deducted from the total metallic and i)aper circu- lation, for the purpose of showing, iu thirty-liv(! countries, the total amount in active circulation, which, outside of the banka and treasuries, was $8,100,676,898. The i)er capita of active circulation iu each of the countries is also given. I have again to acknowledge the faithful and ellicient .services of the clerks of the Mint liureaii, among wliom Messrs. I'roston, Leech, and Eckfeldt arc entitled to s])ecial mcutidn for their valuable iissistance in ])reparing tables and compiling aixl arranging statistical material em- bodied in this report. 1 am, very respectful! v, UO RATIO C. BUKCHARD, Director. Hon. Charles J. Folgkk, Secretary of the Treasury. 14 Ab 210 PAPERS ACCOMPANYING THE EEPOKT OF FIRST COMPTROLLER OF TEE TREASURY. Treasury Department, First Comptroller's Office, Washington, October 20, 1882. Sir : 111 compliance Tvith the request made in your letter of September 8, 1882, I have the honor to submit the followiiirj report of the trans- actions of this office during the fiscal year which ended June 30, 1882. The following-described warrants were received, examined, counter- signed, entered into blotters, and posted into ledgers under their proi)er heads of appropriations : Kind. Number of war- rants. Amounts. APPKOPRIATIOU. Treasnry proper Public debt Diplomatic and consular Customs Internal revenue Interior civil Indians and pensions War , Navy ACCOUNTABLE AND 8ETTLEHEXT. Treasury proper Public debt : Quarterly salaries Diplomatic and consular Customs •■ Internal revenue Judiciary Interior civil Indians and pensions War Navy COVERING. Indians and pensions repay War repay Navy repay :••-.•; ■. Miscellaneou.s repay : Interior civil, treasury, customs, .iudiciary, diplo- matic and consular, internal revenue, and public lands. $28, 067, 342, 72.3, 1, 191, IS, 1.30, 4, 932, 7, 60G, 79, 071, 43, 527, 15, 202, 456 05 506 34 435 00 303 91 849 27 940 36 251 94 670 44 701 57 1.35 440, 454, 114 88 3, 0.53 21, 27.<', P67 36 79 342, 869, 059 98 1,929 558,562 50 2, 8-J5 1,388,120 U 4,062 19, 860, 934 89 4, 523 4,857,313 02 3,343 3, 293, 267 38 2,153 6, 951, 418 90 3, .399 73, 364, 4f 9 82 4,608 44, 908, 724 67 2,121 21. 514, 323 57 32,105 540. 845, 082 20 627 2, 0.';2, 548 21 1, 610 1, 348. 280 48 364 5. 850, 254 29 2,575 3, 185, 137 81 5,176 12, 472, 220 79 REPORT OP THE SECRETARY OF THE TREASURY. 211 In addition to the above there have been received, registered, and conutersicrned warrants as follows : Kinds. Miscellanpons revenae covering ■warrants Intemnl revenue covering vran-anta Lands coveriiiz wan-ants CuBUims cuveziu<; tvairauts... AmoanU. 1152, POO, 508 21 146. 497, 595 45 4,753,140 37 220,410,730 25 524, 470, 974 28 KP.CAPITL'LATIOjr. Pay, repay, sti'l appropriation warrants 37, 416 Miscellaueoiia aud internal revenue, and lauda, and customs covering 13, 362 Total wan-ants received and passed 50, 778 Miscellaneous retiuisitions registered and countersigned 739 Kequisitiuns on superintendent of buildings aud stationery clerk 413 Grand total 51,930 Accounts have been received from the auditing offices, revised, re- corded, and the balances thereon certified to the Kegister of the Treas- ury, as follows : Kind. FBOH THE FIB6T AUDITOR. 1. Judiciary: Accounts of marshals for their fees and for expenses of courts, of district attorneys aud their a.tsiatants, of clerks of courts, of circuit court commissioners, aud accounts for rent of court rooms Judgments by Court of Claims examined and ordered paid Total. 2. Public Debt : Accounts of the Treasurer of the United States : For coupons payable in coin For coupons of Tn-asury notes, Louisville and Portland Canal stock, and old funded del)t of the District of Columbia , For registfied .stock of the District of Columbia redeemed For District of Columbia 3. Co l)onds purchased for sinking fund For United States called bonds redeemed For United States bonds purchased for sinking fund , For Louisville and Portland Canal stock redeemed For interest on United States registered bonds (paid on sched- ules) For interest on Pacific Kailroad stock (reimbursable) For checks for in\ere8t on funded loaus of ISisi, 1891, and consols of 1907 For gold certiflcatoa and refunding cert ideates For certificates of deposit (act June 8, 1872) For legal-tender notes, old demand notes, and fractional cur- rency For compound-interest, seven-thirty, aud other old Treasury notes For interest on Navy pension fund , Total . 3. Pxtblie Buildings : Aoconntw for the ronstmction of public buildings throughout tho United States, and the buiblings for the IJnreau of En- cravingand Priutingand the National MustMim. Wnnhington, 1). C. ; for the constniction of tlie bnildiuc for the State, War, and Navy Di-partments ; for the conipU'tion of the Washitii:- ton Monument, and the caie of the iiuUlie building.^ and giounds \iiider the Chief Engineer, I. S. A.; for annu:tl rejiAirs of tl\e Capitol aud improving the Capitol gronuils, extension of (ioveniment Printing t)lht-e, and enlargini; the court-house. Wa.sliington, D. C. ; for Coast aud tJoodetic Surveys; and for the beneficiary and charitable institutions in the District of Columbia 3, 947 I 89,465 I 4,428,530 1< 123 2, 530, 939 18 12 3 20 12 38, 793 677 45 67,541 1,553 4 11, 439 430 143, 572 22,489 1,512 1,021 618 1 303 21,984 15, 055, 606 08 538, 993 72 27,^ 545 53 12, COO 00 114,711,105 12 8,340,713 72 4,000 00 11, 639, 114 84 4, 461, 525 92 28, 942, 912 18 987,211 29 13, G30, 000 00 43, 064, 322 00 20, 294 73 210,000 00 324 2, 820, 634 241, 899, 945 13 2, 640. 508 67 212 PAPERS ACCOMPANYING THE Kind. 4. Steamboats: Accounts for salaries and incidental expenses of inspectors of liiiUs and boilers 5. Territorial: Accounts for salaries of Territorial officers and for the legisla- tive and contingent expenses incidental to the government of the Territories C. Jlfm( and J.gsay.- A.ccounts for gold, silver, and niclicl coinage; for bullion; for salaries of tlie ofticters and employes of the several mints, and for the general expenses of the same; and for bullion depos- its, purchases, and transfers 7. Transportation: Accounts for transportation of gold and silver coin and bull- ion, minor and base coin, United States curreitf.y, national- bank notes, complete and incomplete coin certincato.s, regis- tered and coui^on bonds, mutilated currency, cancelled and incomplete securities, national-bank notes for redemption, stamp, paper, stationery, boxes, p.arcels, &c 8. Congressional: Accounts for sal.aries of the ofEccrs and employes, and for con- tingent and other expenses of the United States Senate and House of Kepresentativcs 9. Outstanding Liabilities : Accounts arising from demandsjfiir payment of drafts and dis- bursing-othcers' checks which have lemained outstanding for three years, the funds from which they were payable having been covered into the Treasury 10. District of Columhia: Accounts of the Commissioners of the District of Columbia and general accounts between the United States and said District. 11. Pziblic Printing : Accounts of the Public Printer for the salaries and wages of the employes of the Government Printing Ofiice, for the pur- chase of materials for printing, and for contingent expenses of the Government Printing OiHco 12. Treasurer's General Accounts : Quarterly accounts of the Treasurer of the United States for receipts and expenditures, including receipts from all sources covered into the Treasury, and aU payments made from the Treasury 13. Assistant Treasurers' Accounts: Accounts of the several assistant treasurers of the United States for the salaries of their emijloyes and the incidental expenses of their offices 14. Miscellaneous: Accounts of the disbursing oificers of the executive depart- ments for salaries of otficers and employes, and contingent (■xi)en.sbs of the same; accounts for salaries of Senators and Keprpscntatives in Congress; for .salaaies of the .iudges of the United States Supri-me Court, United States circuit and district Judges, district attorneys, and marshals; for salaries and contingent expenses of the ICatioual Boiird of Health; and for the expenses of the tenth cen,s\is No. of accounts. No. of vouchers. 875 9,977 183 I 1,476 370 : 120, 160 197 49,320 78 1 4,123 91 71 156 108 68, 815 16, 729 49,453 1,943 3, 283 119, 771 Total from First Auditor. 9, 976 |3, 373, 958 Amount in- volved. $428, 371 46 199,814 23 340,847,283 49 202, 092 16 596, 539 94 14,653 50 3,744,709 29 2,619,600 67 957, 197, 117 12 347, 997 3f ) 11, 282, 970 ,=S3 1, 568, 450, 133 73 REPORT OF THK SECRETARY OF THE TREASURY. 21* Kind. I So. of ; accuuntti. FEOM THE FIFTH AUDITOU. 15. Internal Revenue : Accounts of collectors of iiitomal rpvoiuie Accnuiitrt of same acting as disbursiiij; a;iOuts Accounts of intenial-revenuo .stamp agents Miscellaneous internal-reveiiuo accounts, such as direct tax accounts with commissioncis and with the States; six diti'cr- ent monthly accounts with tlio Commissioner of Internal Revenue for revenue stamps ; accounts with the disbursing clerk of the Treasury Departraont for salaries of officers and employes in the ofhce of the Coniiiiissionoi- of Internal Reve- nue, and for the payment of intoni;ilrevenue gangers; witli the Secretary of the Tieasuiy for flues, penalties, and for- feitures; with the Tieasury l)ci)arlment for stationery; with revenue agents and distillery survc-Nors ; diawback accounts; accounts for refunding taxivs ilK'gally c<)llo<'ted; for the redemption of internalrcvcnuo shiiiips; for tlie col- lection of legacy and suocessiou taxes; for expenses of de- tecting and suppressing violations of internal revenue laws, including rewards therefor, &C 16. Foreign Inturcourae : Accounts for the .salaries of ministers, charg^'-s d'affaires, con- suls, coTumercial agents, interpreters, secretaries to leg:i- tions, and marsliiils of consular courts; accounts for the relief and proteclion of American seamen, for expenses of prisons in China an ;iiim'1kI5 Official letters written and copied 1. ^^S Requisitions countersigned and recunled 1~, •J--'^ Settlements recorded 8,842 Diti'ereuces recorded -. -- 3,423 Clerks employed, average 63i REPORT OP THE SECRETARY OF THE TREASURY. 219 The current work of the office is in a more advanced condition than it has previously been since the year ISfJl, the quantity of delayed cur- rent accounts haviug- been steadily diminished each quarter year for several years past, with a corresponding diminution of time between their rendition and settlement; and, except in the settlement of the ac- counts and claims hereinafter specially referred to, the work of the office has been promptly dispatched during the year. Owing to tlie etiect of the decision of the Supreme Court of the United States in the case of Capt. E. W. Tyler vs. the United States, rendered at the October term, 1881, which changed the mode of com- puting the longevity increase payable to oflicers of the Army, a very great amount of additional work has devolved upon this ofhce in the adjustment of Army officers' accounts. In addition to the new work thus originated, it has been deemed neces- sary to enter upon the settlement of the accounts heretofore accrued in favor of the Soldiers' Home under the act of March 3, 1851 (section 4818, Revised Statutes), which grants to that institution all stoppages and fines adjudged against soldiers, all forfeitures on account of desertions, and the custody of the money of deceased soldiers remaining unclaimed for three years. It is estimated that the amount due to the Soldiers' Home on these accounts exceeds a million dollars, and that the settle- ment of these two classes of accounts will require labor more than equivalent to that of eight experts for a period of one year. It also happens that the number of soldiers' bounty claims transmit- ted to this office for settlement during the last ten months is much in excess of those transmitted for similar periods within several years past. The pressing necessity for early settlement of these three classes of claims has made it necessary to place upon them nearly all the force heretofore employed in the current work of settling paymasters' ac- counts ; thirteen out of the fourteen men on duty in the Army jjay divi- sion of the office being at present engaged thereon. Whatever means can be lawfully taken to increase the number of ex- perts in the revision of Army ])ay accounts thus accumulating in the office Avill bo greatly to the advantage of the service. Very respectfully, W. W. UPTOX, Comptroller. Hon. CHAS. J. FOLGER, Secretary of the Treasury. EEPOllT OF THE COMMISSIONER OF CUSTOMS. Treasury Department, Office of CoMMissroNER of Customs, Washington City, J). C, October 24, 1882. Sir: I have tlie honor to submit herewith for y(mr information a" statement of the work performed in this ollice during tlie liscal year ending June 30, 1882. Number of accouuta on hand July 1. If^"*! l^\ Number of accounts received from llu' Fiist Amliinr during the year 5,707 5,8'Jl Number of iiccmints adjusted duritif; thn year 5,7:<0 Number of accounts returned to the Firat Auditor )*•* r., 7r>2 Number of accounts on Laud June 30, 188*2 Ijy 220 PAPKRS ACCO^IPANYLNG THK 1'Ih'i-(' wiiH \Kx\([ iiilo tlic Treasury tVoni .sources, the accounts relating t.o Avhieli are settled in this oilicc: On account of utiHtoins ?;->:20, 410,730 25 On aoconnt of iniirino-hospital tax 406,103 59 On atconiil of steamboat Ices ,. 279,889 30 On acciHiiil of fmca, penalties, aud forfcitnres 10'), 644 80 On acconnt of storage, fees, &c '. 867,338 36 On acconnt of deceased passengers 370 00 On acconnt of cniolnment fees 368,822 74 On acconnt of mileage of examiners 1,542 10 On acconnt of interest on debts due 853 92 On account of rent of ])nl)lic buildings 3, 143 75 On account of relief of sick and disabled seamea 2, 112 10 On acconnt of proceeds of government property 22, 799 'M On account of miscellaneous items 59 Aggregate 222,469,350 84 And there was paid out of tlie Treasury on the following accounts, viz : Expenses of collecting the revenue from customs $6, 506, 359 26 Excess of deposits 3,680,845 77 Debentures 2,092,907 27 Public buildings 2,365,353 31 Construction and maintenance of lights 2, ;i92, 147 12 Construction and maintenance of revenue-cutters 907, 429 21 Marine-Hospital Service 468, 120 16 Life-saving stations 598,624 59 Detection and prevention of frauds upon the customs revenue 43, 471 24 Compensation in lieu of moieties 30, 628 82 Protection of sea-otter hunting grounds aud seal-fisheries in Alaska.. 19, 559 10 Seal-fisheries in Alaska 15,263 06 Inspecting neat cattle shipped to foreign j)orts 10,475 67 Metric standard weights and measui'cs 7,747 78 Distribution of standard weights and measures for use of collectors.. 7, 800 00 Unclaimed merchandise 2, 203 63 Keport of taxation upon ship-owners under State laws 1, 000 00 Debentures and other charges 179 45 Refunding money erroneously received and covered into the Treasury 172 85 Extra pay to officers aud men in Mexican war — revenue marine 156 00 Relief of officers and crew of whaling barks Mount Wallaston and Vigilant 6,000 00 Relief of Sidney P. Luther 85 00 Relief of Timothy E.Ellsworth 2,580 50 Aggregate 19,159,109 79 Number of estimates received and examined 2, 717 Number of requisitions issued ' 2, 717 Amount involved in requisitions §15,729, 303 61 The number of letters received 11,709 The number of letters written 10, 447 The number of letters recorded : 6,843 The number of stubs of receipts for duties and fees returned by col- lectors 246,802 The number of stubs examined 223,978 The number of stubs of certificates of payment of tonnage dues re- ceived and entered 8, 061 The number of returns received and examined 77, 369 The number of oaths examined and registered 2,578 The number of appointments registeretl .■ 3,680 The average number of clerks employed 30 I inclose herewitli a statement of the transactions in bonded goods dar- ing the year ending June 30, 1882, as shown by the adjusted accounts, I am, very respectfullv, vour obedient servant, H. C. JOH^^SOiT, Commissio7ier of Cnstoms. The Secretary op the Treasury. REPORT OF THE SECRETARY OF THE TREASURY. 221 •^S8i 'Of; oatif 9snoi{i»jBii nt no eayiiiTp 9auD3s o; Bpaoq ao 90U'B[Ba: -ap pu-B 'sooaTSAVonv •noT^tr)jo(I -xo joj -[BAiiiapq^i^ •nopirj.iocIenBjj JOJ ■ '[UAVBjpq^l^ 1-H ^ CI ^ C5 rH t- t- * o i-io on o 4A ec ;-) cTcTocr «9- P5 iM ^ •* I- -co oTacT cs i:^ Cl" o ?i cs I- 00 cs 3 t- 00 00031 t« 00 lA n :o ^^ co-^oo t^ t^ LI t~ CO 00 CO ci I- CO >-i ro o >-i of t-T w ^" cT r-T in COM-* r-ie<5cieo oco cooo -t 00 X 05 co-»co ira «oaoo&"ir ■00 § : • M CO • • z> e-i • w . t^ oc •■■; Tiu'^ ^ en CC CO « O l/i S rt CC ?C « rH lA ^ CO X IT o: in » I- -r O V O O i-IO t~"cO S^r^r-t •^•ceo cim" cT aooo 00 .-I TO CO r^ o r3 o OJ M C^ 1^ *-i db lo o •H CO o n CO — o o C-. t- O O -^ S OC h- -T CI CI OS Of g S OC X X X n CJ OS 1^ CO •^ X OD rt c cs OS •^ X 3S I- — CO O r-1 ri CSC- • ^ S CO rOOS CO •piTsd MXt~'"O0Ot~O O X -^ O O d O IC I* M rO O X cs ?1 M X I'* Cs"l-"rt CS'^'co'lSr^ M-^ O CO o ■noiniprnb •i\ no p.taiui-io.ieu soiiiip JO ost!9.ioir[ •paenoii cc o-f CO t-m o ro o in CO o c^ cc cs .^ t- CI c-ic-: X co*i X •poptioq pu« pa8llOllO.I8\19JI coesoo i-t ^1 o n CD X -*■ X r- i.-^ X X C5 cox O ooi-Ti^-T -J « CO CO O »H i-H t- X .-I O CO ■* cr. CO cs ■* ri co"i;;"x*oir oo 1 -t CO m ci TJlf. l.- rt OOX m rt .»» OT^O CO iH fr» ^ t- o X CO es X cs C^I i-H -.f t* X .1 c 1 cs •-• CO m — 1 t-" ri -^ «' ■*" t-" CO -♦tTSlX«l--St» iM 1.0 t* LO X ^^ cs 00 X ri -3" [O IC O cs -1 Xfrtr-. co-*i;i CO CO «: o to CO cs -!■ ■^ ->■ O UO X LO M C CO Jt UO UO fl — o coc- X o .•o ?I X o CS O) CO o CO »H X M C) m CO CO o CO cs t- ■-< r5 t~ « t- Tji *j ^ CO r- •-1 1.0 CO X so e- 1- XX o CO c- CO in I- in -^ CO ift cs » I — fi i-«in t~ M X I- « •pnpnoq p u « posiioqajBjiv o -r es o t- o WliOS 3 ?3 -r ■"Ji C4 CO cs ■«• O CO I- 1.0 X I- I- cs'cs'r^cr ^ cr, t~ ci i?5 X CI •issT 'i: Aia p osuoqoao.vi ni 3Dina'uio.i spoo.^ no tiaiitip ojnnsH oi sptioii JO o.)nT;iU}i eo o es i~io „ o ^ i~ •-< CD CICS CO o CO X t~ lo ri iNl-lrt ^co •l" Co'iiJ •-in C CO tJifS a: CO 00 1- CO -H C>IC1 e-rci" ^ CO 00 OS CD 00 t-C4*fi CO-* o r- ci o cs CO CO ■■* cs r- :• cs -r CD cs coco ro db co"i":"'»:i«co" csx" a S c"!; f -e cSTS~'- .= ,: c ? 2 °^ a = _: to c re ^ CJ c — i: ^ _, . - p'~i^ •^~ « n c; :0 tti ■Wl-CO » r- CO 5 » C» ■* CO Ift Q C O COC CI O CI O rH O —1 fi- X CO S •-1 V CD t- « ^1 t-^ cf'«i"rt"i-i' = -^3 0.2 e V~ =— « ^ V ^ ii fl -J 1, ■/: •_ u S 1 L. 3 i o a C.3 C3_3 — J^Ht-iHH 222 PAPERS ACCOMPANYING THE •.■;9ST 'Of; «innpt>finoii.>.ii:Ai in SUI(III!IU.U K|)Oo3 Tio Kajjnp o.itv,)08 oife'puoq ao eaomnuii CO t>- •-< iO — ' 00 c-i -n CO o r- C5 O --I O C« 00 "O o oc ■«>• e^ c-1 1- M I': to Ci -»• ri CO C-I C5 O CO IC t- CI CO CO ?! »0 iM"cr o'cT ^ CC CO Ci o CO lf> O • O O O Ift O lO CO lA CO O ' l.O O CO f-( t^ t* fH T-fCoco ■cca3?id-*r^'«t t-~ t^'X> ■ I' Ct CJ F- rH « -^ OSC5P5 ■t^OSXr^QOW-r irT-^ ■ *-*'qc"'^ CO !«"«?" CO -gop puB S3jui;.\i0iiv •not;t;i.iod -X9 aoj lu.ttV.ipiiJijW oo-* IfS CO O CJ 00 O OS !N Ci 00 CO ■«< CO t> CO ■* O t^CO CO C-l CI CO 1^ CI o »-i -^ CI CO >A 'a^ Co" CO ' w KO i-O « IM -» •* OC CO ^* C/C CD ^ CC) 00 CO^ — O ' CO ■* r- VS I eg c^i CO' ofcTco" I- CC i-O CJ — -c >0 I - lO CO I CO -f c: C5 CO r- r-i lO CO ■*« oT cd"co" •noi}ci.iodsatjj:j c: •* o O — CO •* O LO M CO ^ OC 00 oo •<** (C) t- c: t- CO CO -^ -^ i.O t-. OB CO (N r-( 00 COr-r-^CO'rH" 00 UO C-l 43 OOCOIOOCOCSCICOO X;tip O CO J t* CO •prea o t- 'li!iv.T!jpq}T_iiv i 02 lO i-H COi-1 o ^^ CO c: CO -H t~ o >OC4 co'o" o ira o CI t~Cl lO o ■I' O O 32 CI O Cfc t^ -J" CO CJ CO cc'cT'n «r o CO ro Ci « o-^ CO T-H » -fj* f-H in CO CO o CI 00 CO r- -rr r-i — O O -»• 00 lO If: o CI C5 1-1 00 -^ •5" CO" CO cT o" o ci" ■ CO rt ■ ' — CJ 00 CO CO •noijtjpinb •r[ no pantiijaosB S9i|tip JO esuaaoni c^ -^ej r-lOO F-lOO •pns-noq ■9JBA1 A'laAi^jUcHsaoo ■rfCOlCCOOiOOCOlOCOOCICO-^CICOCO in to CI C4 Tj' »n cc o CI f-H CI "* i-H CO CO o CI CI M ^ c; CO 10 r^oo ^ CO r — T-H« 00 ;/: t— CO C3 Cl CS-^ OCJOO- Mn o o 00 o in 1-1 CO O CS Ci Old* CO lO OC 00 C5 — 1 t* o CO 1-1 CI in lo'coi-T •HO -- in o cs CO ■u-ciira i> co'cT**" CI in CO CO l~l~ in o •wco CI CI 000 o 00 ■* ■* 05 o m 00 CO o CO r^ CO c^i CO 00 C0 1* in -^ -^ in CI -^ w in X "O in i-< in in CI -rji in co" 00 co" CO -^ i>^ in o in c: -H X — i C5 t- -^ It t- C5 ir » [- t- 00 c- O CO CO *H CI -3« ^ 00 t- t- t** CI CO O Ci d X ci't-"'*rHin'" uo* CO w •I88I 'I jfinpasnoqs.iu.w iii Sumtt'niai epooS no' Bfljinp o.inc3s oj ppu'oq JO ODUBiua! 000 C1 1* Oi-IXCO inx CO o — CO t^ o CJ CO CO Tti lOrHCfin n c- CO c— CI X o cfi-TcT— "i-i" CI CO CO CI CO in inuo CO c: t- CO CO-f CO C5 1.0 r^ in .-1 co'incQ m t~ CI m — 1 CI « ci X ■!)• in t- C5 o ci r- c-i o in CO 00 CO c: CO r- c > t- -* t- .-I CM in in ci 1-1 Tf" co" I* cr' o ,-i' -J" jsas 2 0-2 "S 9ts .i'?i=S'«f — ^— ■ 55 «> ^ izraSiSiS^iS ®^i£i5:r:?u£i2 SS"S»=ecs X o -- SSJl O t-O t- ^5 -* CO» C in -* 1.- 00 CJ r- OOOO otp in o o 55 o •* ci" O c» o oo oo d o o 00 3 o CO 0-* OSOA •>t O t-o 00 t- s □0 «■> inS o 1^ oo Cl t- n 00 in 1-; oc c « Cl O »J r- OJ-C s o o §Ssi§ OOCr- 00 to o o M r; -* i o> -^ S s iO t- 1- '. to ess : s t- 00 moo o • O CO O 1 Cl o '• M CJ 15? ■* S8 S .«£> •«>■* . o CO CO gS § t;; o CO — 00 00 0-. ■«• •«. o 00 m in coco o 00 o mm s 5 3 CM 00 CO o ojin d ir-»co ot- to o ?0«00 m t- Ol — 'Cl » CI ci rt oot- t-Cl m o in oco ? 00 m —1 M en-H 00 o ^ s > a o t o '. 1 ii ■ o §5 o a o ti 3 o H 1 1 a".2c a eg a B ll ■*o ea CO o o o't~" c m 01 "iT l" l" s "3 If ^(SfS-sJn t> 1j m c) o o 00 «7 t- O C- O i-l -port on geological survey of the XerTitories Lands and other property of the Uui tod States Protection and improv<clamation of arid and waste lands North American Kthnology, Smithsonian Institution , Polaiis report, Smithsonian Institution Judicial expenses, embracing accounts of L'uited States marshals, district attorneys, clorks and commissioners, rent of court-bouses, support of pris- oners, &c Prosecution of crimes Suppre«8lng coonterfeitinuj and oimo Investigation of fratuls, Oince of Coninii8.sioner of Pensions . Kegistered stock Coupons . INTKllEST ACCOU'.N r. District of Columbia, Washington, Georgetown, aoid corporation bonds , Xavv pension fi;nd Louisville and Portland Canal Company's bonds , laaif.MPTiox ACCotrxT. Uuitoil States bonds, cnllt'd : Principal lutt-rest lTultt>d States bonds, pnroluised lor sinking fund: Principal Int< 3 51 .32 27 6 12 14 .-) 6 7 7 1 7 3 8 12 5,S81 5 28 C 37 104 11 1 12 i'c" 7 .... 43 15 Ab .ti 1 1(»7 147, 4, 1, 12! 57, 555, 319, 143,858, 1,536. 327, 171, ■''9, 13, 17. 6, 25, 63, 29, 5, 4, 585, 1«0, 6, 4, 8, 1, 24, 16, 16, 41. 19, 41, 2, 731 48 973 37 391 40 182 18 496 80 068 S2 711 26 437 21 C39 98 950 07 &51 02 369 47 892 00 859 20 281 02 506 12 498 23 164 80 743 50 753 75 598 71 199 20 905 42 080 11 575 24 633 18 165 47 942 00 453 57 203 78 586 59 228 66 533 14 772 71 215 30 3. 913, 974 87 l'>, 512 36 97, 058 79 *Xi, 319 30 06, 780, 922 43 11, 364, 550 OS 493, 144J 18 210,000 Oil 10, 970 00 80, 3j2, 550 00 1, 487, 691 91 73, 321, 900 00 653, 272 85 2 18, ,100 00 •Si, 441 2il IS, 451, 110 00 248, 200 00 35,287 14 35,880 0(1 17.840 0« 2, 72G K-. 39, 221. 872 Ol» 51, 2*« 00 7:« (Mt 22,502 08 411 07 133,971 H.T 79 45 595. .Wl 17 1,000 00 15,093 95 226 PAPERS ACCOMPANYING THE Accounts adjua 1-0(1. DISimitSEMENTS— Continued. Post-Office Dppartment requisitions •• Postage -• •'• l/iffisariuf: Service •••' Lifc-sn vins Sorvice, contingent expenses .- EstftVilishiiii iifcsavinsr stations — Pul)lic. jirintinir .and binding -■ Tf lepbonio, coniicclion between tho Capitol and Ofrvrrnmpnt Printnij; Office . Tolcjrraph liotwern tlm Capitol, Depart nients, and Government Printing OtRce. L.iboi- iiiirt expanses of ou;;iaviJig and printing Propagation of foodtishoH - - niiistrations for report on food-fislies - Inquiry rcspectins food-iislies - Steam vensels ( food-fishes) - >• Construction of fisb pond on Monument lot — --. Fish-hatcbins establisbiuont Increase of Lilirary of Congress Pumitnre for Lilmiry of Congress ; Joint Select Committee to provide additional accommodations for Library of Congress - ■ Works of art for the Capitol — ■ Library, Treasury Department Construction of cuatom-houses •--" Construction of court-houses and post-offices - Construction of appraisers' stores - Construction of sub-treasury building, New York Construction of National Museum ■ Construction of building for State, "War, and Niivy Departments Construction of barge olfice. New York Construction of light-houses ---,- ■ Construction of building for Bureau of Engraving and Printing Construction of extension of Government Printing Office Construction of marine hospitals Construction of sub-treasury bailding, S.an Francisco — Construction of penitentiary building, Dakota — Construction of assay offices ■ Construction and repair of revenue steamers — Plans for public buildings -- - Completion of Washington Monument Reconstruction of Interior Department building Kepairs of the Interior Department building Repairs, fuel, &c., Executive Mansion ■ Annual repairs of the Capitol Annual repairs of the Treasury building - Repairs and preservation of public buildings Fire-proof roof, building comer of Seventeenth and F streets Rent of buildings in Washington » Lighting, f wools aud animal fibers Amount. 30 90 48 2r< 1.51 7 4 10 2:j 1 .5 11 4 10 2 5 5 12 263 282 14 12 20 9 164 12 4 1 12 5 12 14 7 9 5 5 6 4 15 23 5 32 4 5 70 5 37 7 20 3 5 .5 $133, 923 (T7 143, (..-.R 1.5 471,410 70 .33.691 fi8 29,048 .34 1, 34.5, 160 67 193 00 939 67 1,2.78, 9 IS ?6 116, M2 79 37 32 2, 099 93 1,894 61 4, 113 08 '.), 99!t 81 17, 01.'4 86 269 50 2, 870 00 876 72 471 73 1,312,285 11 786,571 10 31, Xii 94 195 00 22, 781 56 380,511 ,54 2, 806 31 505, 265 22 9, 580 70 35, 898 80 1,800 00 3, 061 79 533 45 3,084 01 62, 849 88 4. 121 03 135, 9G6 18 7.5,618 64 15, 307 59 50,285 64 50,130 53 38, 989 15 144, 192 17 14, 527 23 66, 260 00 1.5, 178 41 28, 875 69 352,612 27 9,350 92 101, 620 39 46. 386 00 96, 424 47 2, 453 64 47, 780 21 59.347 42 4, 4S7 77 2, 000 00 6, 983 19 1,000 no 250, 000 00 11,9.-8 64 7, on .59 17, 857 07 ],7.<^5 88 2,747 60 6, .'•■95 91 89i 32 459 39 2,519 19 3, 9-59 63 11,749 H 93, l-M 48 .s, (.96 44 15. 880 22 21,].'>0 27 l:>. 788 73 7, 051 54 5, 788 54 REPORT OF THE SECRETARY OF THE TREASURY. 227 Accounts adjusted. Amount. DISBURSEMENTS-Continued. Report on forestry Data respecting agricultural needs of arid regions, United States TratirtportatioD, agrirultiiral and mineral specimens to Atlanta, Ga Building for Department of Agriculture « Preparation of receipts, expi-nditurcs, and appropriations of the government. Centennial celebration, Groton Heights... Cen tenuial celebration, Yorktowu Yorktown iloniinieut 1 Maps of the United States TrauMportation of maps and reports to foreign countries Distinctive paper for United States securities Chocks and certificates of deposit Captured anil aliandoued projierty Refonn School, District ot Columbia Freedman's UoKpiial and .Vs.vlnm Government Hosjiital for t lie Insane, buildings, &o Government Hospital for the Insane, current expenses Columbia lustitiitioii for the Deaf and Dumb, buildings, &c Columbia Instituticm for the Deaf aud Dumb, cuiTent expenses Columbia Ilosiiital for Women Howard University Saint Ann's lui'aut Asylum Children's Ilospital National Association for the Relief of Colored Women and Children Women's (' hrist ian As!?ociation Industrial Home School Maryland Institution for the Instruction of the Blind Miscellaneous Transfers by warrant and counter- warrant DIBTBICT OF COLUMBIA ACC0UKT8. Refunding taxes Washington redemption fund Redenipt ion of tiix-licn certilicates Relief of th(! poor Support and medical treatment of infirm poor Employment of the poor Relief of Thomas Lucas Salaries aud contingent expenses Improvement and repairs Washington Asylum Georgetown Almshouse Governn^ent Hospital for the Insane Transportation of paupers and prisoners Reform School Public schools Metropoli t an police Fire department Courts. Streets Health department Miscellaneous and contingent expenses Washington Asylum, building and grounds....... Markets Wa8hingtu\ iits Publicutiou of oliicial rucoids of the war of tbo rebellion. Under control of the Commanding General. £.xpeii8CS of tbe Coniuiaiidiug 0riil s ortico Under control of the Adjutant-General. Collecting, drilling, au')il ami hospital depart uicut . Medical iiiii.-iciiiii and tibraiv 'I'ruases I'ur didubled soldiers Drafts. 007 70 708 50 ■iV) 80 490 25 2, 500 00 , 428 75 ,000 00 07, 9-JO 10 1. UK '-••jn, 10. 10, 000 00 8^:i 80 ll'i W! UOO ('0 UUO 00 Repayments. $7 70 2o3 83 623 43 82 10 20 W 8, 949 27 22.041 72 14,377 07 232 PAPERS ACCOMPANYING THIO Appropriations. Under control of the Paymaster-General. Bounty under the aH of .Tuly 28, 1R66 Bounty to volunteers and their widows and legal heirs Hounty to the Fifteenth and Sixteenth Missouri Cavab'y Collection and payment of bounty, &c., to colored soldiors and n^umen. Extra pay to olUcors and men wlio served iu tho war with Mexico (ienoral expenses _ Mileage j Pay, &c., of the Army 11 Pay of the Military Academy I Pay of two and three j'ear volunteers Pa.v of volunteenj (Mexican war). Kaising four additional regiments Eepaymenti Tinder control of the Chief of Ordnance. Armament of fortifications Arming and equipping the militia ;■. Allowance for redaction of wages under the eight-hour law. Benicia arsenal, Cal Examinations of heavy ordnance and projectiles Manufacture of arms at national armories Ordnance service Ordnance, ordnance stores and sujiplies Ordnance material, proceeds of sales Powder and projectiles (act March 3, 1881) Powder depot Itepairs of arsenals Hock Island arsenal Kock Island bridge San_ Antonio arsenal Springfield arsenal Testing machine t "Washington arsenal Wharf at Sandy Hook, Xew Jersey .'f05,081 00 102,421 32 m, 000 00 ;f,595 02 120 00 .116,000 00 ] 220, 088 9fi I 7(10,592 10 i 176, 134 70 73, 295 09 87 50 294, 168, 645 92 181 59 MisceUarieout. Relief of Lewis A. Kent and IL B. Eastman Support of National Home for disabled volunteer soldiers. Support of the Soldiers' Home 10, 10, 300, 110, 310, 91, 30, Ch), 40, 500 00 305 55 000 00 I 000 00 I 012 00 I 687 00 200 56 ' 000 00 ! 000 00 , 000 00 I «00 00 ooo m 000 00 ooo 00 5, 000 00 511 74 9.1O, 000 00 76, 142 70 Total drafts and repayments ("War Department) ... Appropr'iatlo7is for Vie Indian service. Buildings at agencies and repairii Civilization fund (14 Statut*.^, Kf*:-;) Contingencies of the Indian Department Expenses of Board of Indian Co-janiissioners Expenses of Ute Commission ... EulfiUing treaties with Indian tribes Eullillujg treaties with Indian tiibos (proceeds of lands). Gratuities and payments to Ute Indians Incidental expenses of the Indiitsn service Interest on Indian trust funds, &c Pay of Indian agents Pay of Indian in.spectors Pay of Indian police Pay of interpreters ., Payment of indemnitv to Poncrte Payment to Flatheads Payment to North Carolina Che^okees Payment to Osages for ceded lands Eelief of Frank D. Yates and otJbers Kemoval and supjiort of Otoes iind Missouiias Bemoval and support of confederated bands of Utes Eeservoir at headwaters of the Mississippi Eiver Shawnee fund Support of schools, &c '....'.'.'.'.'. '.'.'.'.'.'.'.'.'. Support of various Indian tribes aud bands ..'.'.'..'... Telegraphing and purchase of Indian supplies Transportation of Indian supplies I'l-aveling expeu.ses of Indian inspectors " Vaccination of Indians _ Miscellaneous items 16, 377,1915 87 20, 188 08 125, 036 40 33,093 58 1,355 00 4, 947 78 894, 478 55 3, 322, 279 91 11. 999 99 177, 309 8G 0:!0, 184 98 92, 087 92 14,932,20 72, 323 07 25, 182 79 72, 664 46 5, 000 00 3. 816 20 236, 083 8S 14, 675 85 ;!8, 180 10 84, 524 78 15,466 90 4, S8j 02 121,894 95 3, 035, 440 69 .30.701 11 200. hlO 07 .'.. 978 02 1,410 10 1, 789 28 Total drafts and repayniients (Indian Department) 9, 964, 734 12 REPOjlT OF THE SECliETAKY OF THE TREASUKV. 233 GENERAL BALANCE SHEET of APFEOl'IilATIONS. Df.iut. To amount witlubawn from tho Treasury, July 1, 1881, to June 30, 1882 To amount of trannfer warrauts issued to adjust appropriations To unexpended balance:* carried to I he surplus fau ; lett^'rs writ- *ten, 584 ; amount drawn from the Treasurv on settlements made in thi.s division, $204,811.28. PAY.MASTKHS' DIVISION. Paymasters' accounts. Longevity claims. On haiiil unexamined July 1,1881 KeCf-ivcd duriu;; the year To tAl Audited nud reported to the Secuud Coraptrollor Ou hand not examined Juno SO, 1882 012 588 900 393 1,120 1,120 1, ot<;( 234 PAPERS ACCOMPANYING THE Tlie }inu)iint involved in 398 disbursing acconnts, 37 claims, and 339 miscellaneous settlunicuts was $10,938,144.08, as follows: Amount dishurseil by piiyiuasters $10,674,983 91 Aiuoniit paid to officers of the United States Army under the decision of the Snprenie Court in the matter of computing " longevity" pay. ir>, 538 08 Amount ])aid to tlie Soldiers' Home 81,877 81 Amount trauisferied to the books of the Third Auditor's office on ac- count of — Tobacco sold to soldiers 106,271 53 Stoppages for subsistence stores, &c 33,429 29 Charges on account of overpayments 9,920 48 Amount of overpayments refunded 4, 495 79 Sundry charges and credits 11,627 49 Total 10,938,144 98 The service records of 233 officers have been reexamined to determine their pay status under the acts of June 13, 1878, and February 24, 1881. The record of deposits by and repayment of deposits to enlisted men of the Eegular Army, under the act of May 15, 1872, shows that 8,558 deposits were made, amounting to $480,150.09, and that 0,G73 deposits, amounting to $399,032.32 were repaid to soldiers on their discharge from the service. During the four years that this record has been kept the de])osits have aggregated $1,762,280.24, and the repayments, inclusive of interest, $1,127,293.73. Letters received, 1,210^ letters written, 2,776. MISCELLANEOUS DIVISION. Unsettled accounts on hand July 1, 1881 514 Keceived during the year from the Secretary of War, the Adjutant-General, Surgeon-General, and Chief of Ordnance 1,869 Total 2,3S3 Accounts settled during the year ; 1,889 Eemaining on hand June 30, 1882 '.. 494 The amount of disbursements allowed in the settlement of a<>counts was $3,937,081.30, under the following appropriations : Arming and equijiping the militia, armament of fortifications, manu- facture of arms at national armories, ordnance, ordnance stores and snp])lies, ordnance service and other appropriations of the Ordnance Department $1,755,179 65 Medical and hospital department, artificial limbs, medical museum and library, and other appropriations of the Medical Department 455,895 10 Eegular and volunteer recruiting, claims for repayment of local bounty, accounts for payment of arrears of pay and bounty to colored soldiers, &c 369,163 54 Contingencies of the Army, expenses of military convicts, publication of Official Records of the War of the Rebellion, contingencies of the Ad- jutant-General's Department, artillery school at Fortress Monroe, ex- penses of Connnandiufg General's office, &c 112,384 41 Suijport of National Home for Disabled Volunteer Soldiers 1,245,358 GO Total ,...*. 3,937,961 30 The work of compiling the pay record of officers of the Eegular Army and volunteer force has progressed rapidly, 109,611 payments having been entered during the year." Incidentally twenty-seven double ])ay- ments to volunteer soldiers were discovered and reported for collection. A com])rehensive index to this voluminous record has been completed and has proved of great assistance to the many clerks whose work necessitates constant reference to it. Letters written, 2,755. REPORT OP THE SECRETARY OF THE TREASURY. 235 LNDIAN DIVISION. The work done in this division is shown by the following statement: Money accuuuts. Property accounts. Claims. On hand July 1, 1881 24 958 331 558 60 3,009 Total ; 982 797 889 513 3 129 Settled during the year 3,020 On hand June 30,1882 185 370 103 The amount disbursed was $6,154,440.83, as follows : Expended by Indian agents and other disbursing officers, and allowed by this office §1,813,7.52 12 Amount paid by Treasury drafts in settlement of 3,026 claims of con- tractors and others for supplies and services -. 4,340,688 71 Total disbursements 6,154,440 83 Sixty-three transcripts of Indian agents' accounts have been for- warded to the Second Comptroller for transmittal to the Department of Justice in order that suits may be entered against the agents and their sureties. The balances declared to be due the United States in these sixty-three cases amount to more than $1,000,000, and consist to a great extent of items disallowed by the accounting officers for reasons not necessarily incompatible with the personal integrity of the agents to be sued. During last year the sum of $6,783.00 was recovered by suit and otherwise in full settlement of the accounts of certain agents no longer in commission. Letters written, 4,834. PAY AND BOUNTY DIVISION. This division is charged with the settlement of all claims for bounty and arrears of pay, except such claims as are tiled by officers of the Army, still in service, for increased longevity allowance under the re- cent decision of the United States Supreme Court — tliese claims having been assigned to the Paymasters' Division. As will be seen by the subjoined tabular statements, fair progress has been made in the ex- amination and settlement of claims during the past year: Examining Branch. Co, .a (< o >-i UJ » .o to a . » bO Classes of claims. 0. -' i "3 ^.1 "-rH •a ^ "B ' ^^ s s s 1 E 'a o ^ cc s P^ O WJiite soldiert. 1,357 1,023 175 178 22 2,005 Enliatcd men, subsequent to April, 1801— arrears of 23,940 8,160 2, 328 7,867 2,243 19, CGJ 227 177 216 38 123 Claims of Aiiiiy laundresses, sutlers, tailors, &o iKt 40 29 9 55 Colored soldieri. Arrears of pay and bouuty ^.... 6, 153 3,230 8RJ 1,342 80 7,091 Total . ..,. 31,680 12, 609 3,434 9,519 2,356 29,040 23G PAPERS ACCO:MPANVU«a THE iJelUinf) Branch. Classes of claims. IS 00 aw ii r-- bO 5 TTTiite soldiers. CoiQDiisBioued ofiBcers Eulisted men, subsequent to April, 1861 — arrears of pay and all bounties Claims for pay prior to April, 1801 CLnims of Army laundresses, sutlers, tailors, &.c 950 Colored soldiers. Arrears of pay and bounty 117 2,521 846 2,466 38 ! 29 838 45 75 885 Total 1,067 3,434 3,371 55 The claims settled and allowed averaged a fraction more than $132.68 each, the total amount being $447,267.10. The claims disal- lowed amounted to upward of one million dollars. Letters written, 78,114. DIVISION FOR THE INVESTIGATION OF FRAUD. On July 1, 1881, 7,823 cases remained on hand; 380 new cases have been received during the year, making a total of 8,203 before the division. Of these, 6,135 were examined and paitially investigated ; 1,317 were finally disposed of, and 6,886 remain on hand for fiu'ther action. The cases not disposed of are as follows : Unsettled claims : White soldiers 43'2 Colored soldiers 1,584 2,016 Settled claims : White soldiers 734 Colored soldiers 3,779 4,513 DouUe payments to officers 357 Total 6,886 The sum of $4,311.66 has been recovered by suit and otherwise, and deposited in the Treasury; judgments amounting to $2,002.46 have been obtained, but are not yet satisfied; $1,242.20 has been secured to claim- ants from persons unlawfully withholding it, and $226 has been returned to the Treasury by the Pay Department in cases of colored soldiers. Abstracts of material facts have been made in 478 cases ; 40 cases were prepared for suit and criminal prosecution and transmitted to the Department of Justice, and 5,655 letters were written. I would again invites attention to a matter that has been referred to in half a dozen annual reports, namely: The necessity for some act on on the part of Congress looking to an adjustment of the claims of those colored soldiers who allege that tliey were defrauded out of their arrears of pay and bounty by tlie subortliuate agents of the late Freedmen'a Bureau. REPORT OF THE SECRETARY OF THE TREASURY. 237 PROPERTY DIVISION'. The work of this division is now confined to the examination and set- tlement of the qnarterly returns of clothing, camp and garrison equip- age, rendered by all officers of the Army who are responsible for that description of property. These returns, by which upward of one mill- ion dollars worth of property is accounted for annually, are not ex- amined by any other accounting officer, so that the action of this office is final. On July 1, 1881, 6,241 returns were on hand unsettled; 3,569 have since been received ; 4,652 have been examined, and 4,132 have been settled, leaving 5,678 on hand June 30, 1882. Charges amounting to $4,178.84 have been made against officers for property not satisfactorily accounted for, and $1,235.81 has been collected on that account. Lctt9 ; letters written, 18,990 ; letters referred to other offices, 598; lett^jrs recorded and indexed, 1,040; letters returned uncallo9. AKCHITES DIVISIOX. The increased and much-needed accommodation provided for the files of the office, to which reference was made in last year's report, has been 238 PAPERS ACCOMPANYING THE taken advaiitnge of to as great an extent as possible. Between three and four million mnster and pay rolls and other important and valua- ble vouchers have been i)laced in i)erinanent boxes and rearranjjjed with a view, first, to their presci-vation ; secondly, to facility of reference; and thirdly, to economy in space. , Incidental to this work it was necessary to examine and verify 1,820,285 vouchers; to stencil 7,331 file-boxes with the number, date, «&c., of the settlements, and to brief 6,268 boxes, so as to clearly indicate the character of the vouchers therein contained. The regular business of the division is shown by the following state- ment: rayniastere' accounts received from the Pay Department 519 Confirmed settlements received from the Second Comptroller, entered, in- dexed, and filed : Paymasters', 107 ; Indian, 2,393 ; niiscellaneous, 1,017 3, 517 Miscellaueons accounts withdrawn for reference and returned to the files.. l,7t>8 Vouchers withdrawn from the tiles for use in the settlement of accounts and claims and for rejjairs 29,657 Vouchers returned to files 43,958 Voncliers briefed 60,237 MutihJted and worn vouchers repaired and retured to the files 15,090 Number of pages copied 2,797 Letters written 319 RECAPITULATION. Number of accounts and claims of all kinds on hand July 1, 1881, in- cluding 5,812 renewed applications for arrears of pay and bounty. .. 40,229 Number of accounts and claims received during the year 24,400 Total ; 64,629 Number disposed of, including rejected and referred claims for pay and bounty 26,189 Number of accounts and claims on hand June 30, 1882 38, 440 Amount drawn out of the Treasury in payment of claims and in ad- vances to disbursing oflicers $26, 342, 649 99 Less repayments of unexpended balances, &g 664,195 50 Net amount paid out - 25,678,454 49 Total number of letters written 120,580 Average number of clerks employed 145 PROCEEDS OF INDIAN LABOR. For several years past questions have arisen from time to time, in the settlement of Indian agents' accounts, as to the proper disposition of moneys derived from the product of Indian labor, pasturage on Indian lauds, &c. In June, 1876, the matter was referred to the First Comp- troller (Hon. R. W. Tayler), who said : " In my opinion, receipts for the .product of labor of Indians and for use and occupancy of their lands are not public moneys, within the meaning of section 3,618 of the Revised Statutes, which are to be covered into the Treasury as miscellaneous receipts. If such moneys should be covered into the Treasury they can- not be withdrawn except on api)ropriations made by law. "While it is lirobable such moneys may, under the direction of the Department of the Interior, be expended for the benefit of the Indians, I am not aware of any law which provides for it. If the Secretary of the Interior should deem' it proper, I think Congress would direct the mode of expendi- ture." The Secretary of the Treasury concurred in this view and recom- REPORT OF THE SECRETARY OF THE TREASURY. 239 nendod to the Seoretnry of the Interior that Congress be requested to authorize the dei)o.sit of such fundus to tlie credit of an appropriation for the benefit of the ])artieuhir tribe or baud of Indians entith^d tlu reto. On October 18, 1870, the Secretary of the Interior wrote as followis to the Commissioner of Indian Affairs : " The money may be exi>ended under your personal direction, but, as a rule, when tlie nn)ney is re- ceived for the sale of produce, the result of the labor of any individual Indian, it sliould be exi)ended for his sole benefit, and if of any consid- erable number less than a baud it should be expended for their benetit, 80 that in all cases the Indian shall receive the benefit of his or her i)er- sonal industry." In 18S() the Second Comptroller and Second Auditor agreed that in the settlement of Indian agents' accounts all such moneys should be charged and credited under the special caption of "Indian moneys — proceeds of labor, &c." There can be no dituV)t as to the justice and equity of treating these moneys in the manner indicated above, but it needs the authority of law, and to that end I suggest that the subject be brought to the at- tention of Congress. MILEAGE OF ARMY OFFICERS. Under section 1273 of the RcA'ised Statutes, as amended by the act of Jidy 26, 1876 (19 Stat., 100), officers of the Army traveling under orders, without troops, are allowed eight cents per mile, provided they have not been furnished with transj)ortatiou in kind by the United States. I suggest that the law be further amended so that mileage shall not be allowed when an officer travels on a free pass. Officers of the Treasury and Interior Departments, and I presume of all other Ex- ecutive Departments who present accounts for traveling expenses, are re- quired to make affidavit that " no part of the travel has been under any free jiass on any railway, steamboat, or other conveyance." It is neither just nor reasonable that officers of the Army shoukl be paid eight cents per mile while traveling on free passes. In such cases they should be placed on equality with thecivil olficersof the United States, and should be reimbursed to the extent of their actual and necessary expenses, and no more. In analogy to what is demanded, under oath, from Treasury and Interior Department officials. Army officers should bo required to certify on honor that charges for traveling expenses were actually paid or incurred, and that no i)artof the travel for which they claim mileage was made on a free pass on any railway, steamboat, or other conveyance. ^ THE SOLDIERS' HOME. By section 4818 of the Keviscd Statutes all forfeitures on account of desertion and all moneys belonging to the estates of deceased soldiers, remaining unclaimed for three years subsecpient to the death of such soldiers, are set apart and ai)propriatcd for the sui)])ort of the Soldiers' Home. I find that twenty-one years' arrearages are due said Home on account of moueys forfeited by those tleserters from the regular Army ■who were never heard of after desertion. With a few trilling excep- tions the accounts of siu-h deserters have not been settled. \\'hen the men were dro])ped from the rolls of the Army such data as were neces- sary to an adjustment of their ])ay accounts were entered on the muster- rolls, and there the matter ended. There is also a large sum due the Home on accountof unclaimed money belonging to the estates of soldiers 240 PAPERS ACCOMPANYING THE who died prior to July 1, 1870. The aggregate amount payable to the Home from these two sources is estimated at upward of one million dol- lars. It is clearly the duty of the accounting officers of the Treasury Department to adjust and settle the accounts of deceased soldiers and desert^jrs so that the Home may receive what the law has set apart and appropriated for its su])port, but the necessary clerical force is lacking. 1 estimate that it would take six exi)erienced clerks five years in this office, and a proportionate number for the same period in the Second Comptroller's Office, to bring the work up to date. In view of all the circumstiinces, and considering especially the length of time that the Soldiers' Home has been deprived of a portion of its legitimate income, I venture to suggest a plan by which an equitable settlement between the United States and the Home can be arrived at without the expense and delay of examining and adjusting the pay ac- counts of deceased soldiers and deserters, namely : That Congress shall appropriate a reasonable amount, say one million dollars, to be depos- ited in the Treasury in accordance with the provisions of section 8 of Senate bill No. 1821, prescribing regulations for the Soldiers' Home, and now pending in Congress ; said amount to be accepted by the Home in full discharge of all obligations on the part of the United States, under section 4818 of the Eevised Statutes, up to and including June 30, 1879. A STATUTE OF LIMITATION NEEDED. Adverting te the remarks in my last annual report in regard to a statute of limitation, I again invite"attention to the subject as one that caMs for early and favorable consideration. Th-ere exists a continually increasing necessity for such a law. It is required, not that the payment of just debts may be evaded, but that the public treasury may be pro- tected from unscrupulous claimants and from the vexatious demands of persons who, having received all they are entitled to, make new appli- cations in the hope, apparently, that something in their favor may ^- turn up" on a re-examination of tlieir claims, or-that the evidence of former payment may not have been ])reserve(l. Of the claims growing out of the war of the reliellion only a small percentage of those last presented possess either merit or validity, and that percentage is diminishing with the lapse of time, while the labor of examination and investigation is materially increasing. A statute of limitation that would bar and pre- clude from settlement all claims growing out of the late war not pre- sented within two years from the date of the enactment, and all other claims not presented within six years from the time they accrued would, 1 believe, be regarded with favor by all the accounting officers of thu Treasury Department, ^^'it]lout snch a statute no child now liviug will ever see the day when the i>r<'sontation for payment by the government of claims of the class first mentioned will have ceased. CONDITION OF THE miTJC EUSTNESS. The condition of the ])ublic business inl rusted to my charge is shown l>y the following comparative statement of accounts and claims received, disposed of, and remaining on hand in the fiscal years 1881 and 1882: REPORT OF THP: SECRETARY OF THE TREASURY. 241 Fiscal ybab 1881. Fiscal tbab 1882. Pesciipliou of accounts, Jcc. ' Knm'ber of accoanta and claims. I Number of accoonts and claima. Received. Disposed of. On hand, June 30. Iteceived. Disposed of. On hand, Jane 30. I>isburging accounts. Array pajtnaaters KecruitiuK, medical, ord- nance, and niiscellaneoua. . Indian agents.. 601 1,732 847 419 1,664 1,160 312 514 24 588 1,869 958 398 1,889 797 502 494 18.-) Total di sLursingacconuts 3,180 3,249 850 3,415 3,084 1,181 Claim ». Arrears of pay and bounty. . Indian 8,682 3, 052 9,110 ■•!, 140 32, 747 60 13, 789 3,009 15,434 3,026 31, 102 103 11, 734 12, 250 32,807 16,858 18.4G0 31 205 Property accounts. Clotbing, camp and garrison ■ 3,649 354 4,9C9 372 6,241 331 ! 3. 560 558 4,132 513 5 678 Indian 370 Total property accounts. 4,003 5, 341 6,572 ! 4,127 4,645 6,054 18, 917 1 20, 840 40, 229 24, 400 26, 189 38,440 It will be seen by the foregoing* statement that, as compared with last year's record, there was an increase of 5,483 in the nninber of accounts and claims received, and of 5,349 in the number disposed of j and a de- crease of 1,789 in the number on hand. While the business of the office is thus shown to be in a satisfactory condition in the aggregate, the state of disbursing accounts calls for some explanation. The recruiting, medical, ordnance, and miscellaneous disbursing accounts are promptly rendered to this office and are settled with sufficient dispatch to prevent accumulation. The accounts of Indian agents have temporarily accu- mulated, there being 185 on hand June 30, 1882, against 2-1 on hand June 30, 1881. This increase is accounted for by the fact that an un- usually large number was received from the Indian Office too late to be taken up for settlement before the close of the fiscal year. Tlie accounts of paymasters have unavoidably accumulated since June 30, 1880, on which date only 130 remained unexamined. On June 30, 1881 , the num- ber had increased to 312, and on June 30, 1882, it had still further in- creased to 502. This increase is due to two causes, namely, the insuffi- cient clerical force of the paymasters' division, and the complex nature of the accounts, wliich now consist, not only of the ordinary bi-montlily muster and ])ay-n>ils of companies and detarhnionts, linal payments to discharged soldiers, and monthly pay accounts of commissioned officers, but also of mileage accounts and vouchers ibr t(}legrams, expenses of witnes.ses before conits-martial, &c. The i)ropcr examination of mileage and telegram accounts adds very materially to the work of the auditing clerks. The delay in the settlement of paymasters' accounts now aver- ages two years, so that a paymaster does not know how he stands offi- cially on the books of the Treasury Department until two years after he has rendered his accounts, neitlier does the Trcasniy J)e]>artment know until aftei" the same la]»se of time whetlier the ])aymaster has pro]torly accounted for the largi; sums of money atlvanced to him for (lisbursc- ment. The law requires that " the Secretary of the Treasury shall cause all accounts of the expenditure of public money to be settled within each fiscal year" (section 250 lieviscd Statutes), and it would 16 Ab 242 PAPERS ACCOMPANYING THE seem to l>e due to tlio paymaster and tbo sureties on liis official bond as well as to the United States, that some measure should l)e adopted which will enable the accounting officers to settle these accounts within the time prescribed by the statutes. The following? case is given as a lair sample of the delay that occurs in the three offices through which an Army paymaster's accounts pass after leaving his hands: STATEMENT showing DELAY in SETTLING a PAYMASTER'S ACCOUNTS. Bate of accounts. .TulvandAiis--. 1S70. Sept. ami Oct., 1879. Nov. and Dec, 1870. January, 1880 Ffbruai-v, 1880 March, 188U April, 188') May and June, 1880. Received in the Pay- master-Crcneral'a office. Novembor 7, 1870 . . November 17, 1S70 . January in, 1880 ... robruiirv 16, 1880 . . March 1.5,1880 May 11, 1880 Jfay 15, 1880 July 14, 1880 Received in tho Second Auditor's office. March 12,1880 .. March 2.3, i;S80 .. June 14, 1880... Julys, 1.S80 July 27, 1880 ... August 25, 1880 , August 2.j, 1880 , October 2, 1880 . , Remarks. 1 Examined in Second Amlilor'«c(I)ce and I sent to Second Coniptj-nllr.r for revis- i ion, Ai)ril 27, 1881. lleviae*! in Second I Com))! roller's office and returned to I Second Auditor to be slated, October 12, 1881. Stated by Second Auditor I Koveinher 1(>, 1881. Certifif-d by Sec- j ond Comptroller, January I'-f, 1882. The average delay in each office was as follows: Paymaster-General's office, 3| mouths; yecoud Auditor's office, 10| mouths; Second Comp- troller's office, 7^ months. The comparatively slight progress that has been made toward clearing off accumulated work is chieiiy attributable to the repeated demands upon this office for clerks to assist in other bureaus of the Department. Emergeucies will coutiime to arise when the X)Ower given to the head of a Department by section lOG of the Kevised Statutes to alter the dis- tribution of the clerks allowed by law and detail clerks credited to one bureau for service in another must be exercised. At one time, in con- sequence of an unusual amount of labor suddenly imposed upon the Loan Division and Eegister's office, no less than sixteen clerks on the pay-rolls of this office were detailed for work elsewhere. At the present time five are so absent, and the average for the last fiscal year was at least five. All these were experienced and efficient clerks, for such are always asked for, and none others taken or received. "Wiiile the clerical force was nominally the same, 5,349 more accoun1i»s and claims were disposed of than during the preceding year, and the num- ber unsettled diminished by 1,789. The additional work of five efficient and experienced clerks would have largely increased these figures. ]S'o bureau of the department needs more than this the entire force accorded to it by law. Of the 38,440 unsettled accounts and claims, a very large pro- portion has been pending more than five years. It is not surprising, then, that claimants become importunate aiul not uufrequeutly abusive in their correspondence. They are entitleeity Cliiinis for horses lost Claims for steamboats do- 2 441 2 30 3,398 4 61, 147 83 50, 000 00 5,321 82 2, 780, 305 08 514,321) 42 868, 513 OS 672, 003 87 6, 047 25 9,312,165 13 4, 345, 020 12 Miscollanfous claims Total 21,405 13,846 12, 150 65, 476, 074 33 23, 161 74, 371, 178 28 noOKKEEPER'S DIVISION. The duty devolving upon this division is to keep the appropriation and money accounts of disbursing ollicers, which aro settled iu this oliico. 244 papj:rs accompanying the Tlioi annexed statement shows tlie amount drawn out of certain of its ai)proi)riatiou accounts, and also the repayments made through this office into the Treasury, and is a full exhibit of its financial operations during the fiscal year : STATEMENT shoivivff the FINANCIAL OPERATIONS of the OFFICE duriitg the fiscal year ended June 30, 1882. o ti© o a MS* p =« a ® et wc^ •He® ^.5 1^ a ►! 3 « (H OS Vi MO 9 Total. Number of requisitions drawn by the Secretaries or War and Interior on tlio Secretary of the Treasury in favor of sundry persons, 3.6C1, amounting to $90,937,5ti9.46, paid in the mannpr here- in set forth and out of the following appropriations, viz : Regular supplies, Quartermaster's Depart- ment Incidental expenses, Quartermasters De- partment Barracks and quarters, Quartermaster's De- partment Ai-my transportation. Quartermaster's De- partment Army transportation (Pacific railroads) National cemeteries Pay of superintendenta of national ceme- teries Clothing, camp and garrison equipage Observation and report of storms Signal Service Observation and exploration in Arctic Seas . . . Construction, maintenance, and repair of military telegrai)h lines Constructing jetties, '^ 500 00 000 00 75, 042 25 19,960 31 293 00 142 92 I 3, 555 87 175, 76. 40, 293, 000 00 348 95 000 00 091 47 , 179 18 810 00 29 19 000 00 000 00 000 00 000 00 705 84 500 OC 000 OO 4. 000 00 30, 000 00 15, 319 47 276, TTT 54 255 00 19, 906 31 293 00 11, 885, 227 51 REPORT OF TIIK SECKETARY OF THE TREASURY. 245 STATEMENT shoicuKj tkc FINANCIAL OPEUAUONS of the OFFICE, «fT.— Con. tinaetl. Subsistence of the Army • Support of military prison at Fort Leaven- worth, Kaus Lost horses, &.C., act March 3, 1849 Kations for relief of persons rendered desti- tute by overflow ot Mississippi River Pensions of the Army Support of Bureau of Eefugees, Freedmen, Arc O MS $2, 390, 890 00 62,461 17 , B 3 «J cj u a $3C, 143 83 $28 50 Total. 349, 958 88 62, 402, 255 00 565 00 $2, 427, 062 33 62, 461 17 565 00 ' I 349,958 ?8 4, 175 60 ■ ! 62,406,430 66 540 37 540 37 Total 89,134,107 C6 1,797,552 47 ! 5,849 33 90,937,569 46 The number of credit and counter requisitions drawn by the Secretaries of "War and Interior on sundry persons in favor of the Treasurer of the United States is 1,522, on which repayments into the Treasury have been made through the Third Auditor's OtBce during the fiscal year ended June 30, 1882, as follows: Deposits $2,239,586 87 Transfer accounts 164,530 54 Total 2,404,117 51 QUARTER3IASTEKS' DIVISION. The accounts of quartermasters cover a wide jaiiofe of money and property responsibility. The former embraces disbursements for bar- racks and quarters, hospitals, storehouses, offices, stables, and trans- portation of Army supplies, the purchase of Ai-my clothing, camp and garrison equipage, cavalry and artillery hoi-ses, fuel, forage, straw, ma- terial for bedding, and stationery ; payment of hired men and of " per diem" to extra duty men; expenses incurred in the pursuit and appre- hension of deserters; for the burial of officers and soldiers, for hired escorts, expresses, interpreters, spies, and guides ; for veterinary sur- geons and medicines for horses, for supplying posts with water, and for all other proper and authorized outlays connected with the movements and operations of the Army not expressly assigned to any other depart- ment. Property purchased with the funds of the Quartermaster's De- partment is accounted for upon "returns" transmitted through the Quartermaster-General to this office (with the exception of " returns of clothing, camj) and garrison equipage," which come under the super- vision of the Second Auditor), showing that the disposition made of it is in accordance with law and Army regulations. REPORT of the QUARTERMASTER'S DIVISION for ihe fiscal year ended June 30, 1882. Money accounts. Property returns. Supplemental settle- ments. Number. Amount. Money. 422 40 sru fflR m 1 fV70 Keceived du ring tlie fiscal year 2, 991 1 il,' 935,' 628 45 i s! 192 261 iioe, 242 73 Total. 3, 413 { 14, 490, 255 41 4,271 261 I 106, 242 73 Reported during the Qscal j'ear. Remaining unsettled 2,050 763 12. 517, 962 77 I 1, 972, 292 64 ! 3,488 783 261 10«, 242 73 ToUl. 3,413 ; 14,490,255 41 4,271 261 106, 242 73 246 PAPERS ACCOMPANYING THE REPORT of tlie QUARTERMASTER' 8 DIVISION, #c.— Continued. Signal accounts. Total Property. Money. Amount. Number. Amount. 191 68 800 118 $182,969 93 481, 9!J4 22 1,760 *2. 737. 596 89 7, 428 12, 523, 885 40 Total _ 1,057 186 604, KC4 15 9, 188 15, 261, 462 29 2 1,055 6,401 12,024,205 50 186 664, 904 15 2, 787 2, C:^7, 256 79 Total 1,057 186 664, 964 15 9, 188 1 15. 201. 402 29 Number of letters written, 4,4G3; number of clerks employed, 19; number of vouchers examined, 249,005 j number of pages of manuscript written, 6,539. SUBSISTENCE DIVISION. The subsistence division examines the accounts of all commissaries and acting commissaries in the Army, whose duties are to purchase the provisions and stores necessary for its subsistence, and see to their proper distribution. These commissaries render monthly money accounts, with proper vouchers for disbursements of the funds intrusted to them, to- gether with a provision-return, showing the disposition of provisions and stores purchased or derived from other sources. These accounts are received through the Commissary-General of Sub.sistence, and are examined and audited in this division. The money accounts and vouch- ers, together with a certified statement of the result of said examina- tions, are then referred to the Second Comptroller of the Treasury for revision. Upon their return from the ComjJtroUer, with the settlement approved, the officers are notified of the result, and called upon to adjust or explain any omissions or errors that may liave been discovered. The money and provision accounts, together with the papers belonging thereto, are then placed in the settled tiles for future reference, and re- main permanently in the custody of this office. The engineer branch is engaged in the examination of the accounts of officers and agents of the Engineer Department, who, under the direction of the Chief of Engi- neers of the Army (except the Superintendent of the Military Academy at West Point, whose disbursements are directed by the Inspector-Geu« eral), disburse moneys out of the various appropriations, now 248 in number, made from time to time by Congress for works of a public na- ture, which maybe classed under the following heads, viz: The pur- chase of sites and materials for and construction and repairs of the various fortifications throughout the United States ; constrnction and repairs of roads, bridges, bridge-trains, &c., for armies in the field ; sur- veys on the Atlantic and Pacific coasts ; examination and surveys of the northern and western lakes and rivers ; construction and repairs of breakwaters ; repairs and improvement of harbors, both on sea and lake coasts; improvement of river.s, and purchase of snag and dredge boats for the same J and the expenses of the Military Academy at West Point. REPORT OF THE SECRETARY OF THE TREASURY. 247 Tlie transactions of tiie subsistence and engineer branches for tlio fiscal year arc shown by the following statement, viz: Subsistence accounts. Engineer «ccouuts. Number. | Amount. Number. Amount. r,-\2 ' 1, !I24 $1,221. .'■.00 58 3, SU4, 770 27 5B aa ?9 5, 245 i 929, 660 91 441 61, 147 S3 On hand June 30, lSJi2 \ i 4,804 : 868,513 ii8 REPORT OF THE SECRETARY OF THE TREASTRY. 249 Narnbtn- of briefs, 41G; nniiiber of claims examined aiul suK})eii(l<^d, i/i'oo; nmuber of letters received, 4,.S.54: miiuber of letters written, 5,r)2;3<5 number of clerks employed, C. AlIMY rKXSION DIVISION'. The duties of this disisiou embrace the .settlement of all accounts Avhich pertain to the payment of Army pensions throughout the United States. The following tabh's show IIk o)»('ratioiis of tlie division during the fiscal year : Array pen.sion.s, 167'J ;md ])nor yt'ai:? : Amount refuuflcd aiid deiiositcd during tlie liscal year $lj, 160 Ih") Ariuy })ensioiis IScO : iialanco to credil of ;(i)piopriatiou June :]0, 18.-51 7G9, 006 15 Amount refVuidt'd :nul deposited during the year 2,204 A^t Total 771,210 60 Amount paid out on settlements during the year 1, 258 3:i Balance to credit of appropriation June 30, 18S2 769,952 27 Army pensions, 1881. Army. Pay, &c. Sorgeona. Total. Balance on hand Jnno 30, 1881 $3,472 53 416, 536 92 $4, 018 42 23, 749 38 $1, 665 00 12, 944 00 $10, 055 95 453, 230 30 Juno 30, June 30, VgVl! 1882. Total Amount paid out on eettlementj*' Amount transfoiTed to Xavy pensions 420, 009 45 G97 67 28, 667 80 14, 609 00 403, 286 25 1, 000 00 i, 697 67 Balance to credit of appropriation 419, 311 78 27, 067 80 14, 609 00 461, 588 58 Arrears of Army and ITavy pensions. Army. Fees. TotaL Amount appropriated, acts .Taunary 29 and March 3, 1879 . $25, 000, 000 00 500, 000 00 $15, 000 00 $25, 015, 000 00 500, 000 00 Total 25, 500, 000 00 15. 000 00 26, 516, 000 00 Aiuo\uit di«bur9€f6. 702 92 29, 708, 332 20 29, 572, 855 54 28, 348, 161 99 27, 899, 359 30 33, 194, 149 18 26,123,111 64 61, 010, 1.12 95 50.C6f).g4l 54 50, 191, 885 02 631 789 900 7!>5 786 C19 1, 150 952 715 281 277 5'n 416 $25, 596. 876 39 32, Sn, 334 28 K»HS1 o 00 CO > •— I- U « « -" 03 rj! -* o c CO CO < r~ CO X n CO CO ooooooF^ooreco 0000^000 oooooor^corstoooocoooo =00030—0 000000 — =; 000000x0 o o i-l o So o o o ^00 = TOOOOOOOO o o r; o'o o o o"o^o o o o~o •^'o o 00 o o' '^XOXO'^OSOOOOOOOOOT^OCJCIO n fo c: C) -r to 00 r^ CO Ci X >r: QC o r^ o ?i -T"! CO „ - , 3" o 2 I- lA rj — o n -!• S5 c; i~ t- c: o CO o o «fe-« » •«■ 05 M m C5 c ■>r I- 1- o >o '-■; — c; o X ■» JO t-T — go' cT ro" CO ■»" cc* ■>»"" o' rj e>i —>!•" 09" — re co" o" o" i-l — i-i — i-H i-crH i-H — e^ — r-i — — ""oiS^rt xTt^ cTbo r; ro in'r iTe'cTo x core ^^^ o .— o~ cox^xi^iTfcirereci- — ;;-Tr:oX/C-. 0x35 CO C5 o r- — ^H ro cc ut t^ ri i.e !•; o r^ X o o -^ r^ .-o t^McooOire-rc; — 03?.-e — Cireot^io — cor> ■r;C5 0co — CO — C500C; ciret^t^rei^o- 0x0 05 00 o C] — o CO c^pj .-ooco^-^corsri — o-- ot-ac* coc- ci^ .-o O CO COC^OIrtCOt* — CO f-lrl — i-H 10 ooTixioocoo: cit-cjot-xcore — •* — xco ooco — rst^uoxu-^^cixcocsr:- •^•-oxcjt>" coot^i.'ei--^xx)^ixr3 — coot^ncoooococcx csoronox — orerjxio-^rer^i^xro — o — <©-ocoir5ror-i-^c*(r4*nt*35U3C5cOw7icox — rj m" cf co" o" o" eo" V o* "."i" cj" eo eo" «" -T 1 fiV-" ■to" — " co" co" "" -■ •• O fITO — — o — 4. o ~o c* O) o oX'e"i.o~c>~QO~x o^rToVi ro" ro • O'fl>c4"rt<-iuoeccoxcot-ot-ooco: CO — ■^ — coc^irirsxcot^- ^1.0 CO — o i^ 1 ci o ^ CO — O I - .; o ri o — -»• — i~ CO M o ; f-1 »0 O S'l t^ c- c ^oxr^-T'-^'^-fXcocj dCJfOr-l r-lrl'* — I- r>i 1^ CO f-i — -^ o X : h *.o CO ra CO CO — ri 00 -* — t- CO o cs — ro itt X e) ?) Ci o o OS -f C! n - CI i:e X -r o CO — CO X CO CI o CO o re -r 'O T I CO o - ■^ -^ — M o c^j X — CO o o t* CJ CO -.o e I o i^ o ci ' — "— — co"rrco"cro"crrf— o'x'efcf o"x"co"i " IHOOC-ICOOCO — WCOW ^COCQXC-i " t-(M -t- cot • cei o ?■> ci ri CO o o — I ir^r-» X — r^i O CO CO O i.O CI lO Tf X CS O C- CO -^ X. O C-l M coxcereco — ce?icirp«oxco — ci^cocs-^ci OCOOC00000^53i5oOClKiHc:CDCIC& ce" or* I ,o~ x' co" x" x" :o" o* CO* o* — c r c f re" x" c f o~ tc* r-^ csT <&c-i C5 — ■^c^»/;coc*coc30C*r3o — — tnxcooci co'vor^i-icM loi-i co'v^cori'^ioe-i CI O 05 C 10 — 00 — — t'OlOCO- O-fXOClCO coc5ci?ooi-( — *TC4 0^coi-ocecocicc-^L.ot^ r^coooxcot^t^ — eiX'-rcc-t- i^cicO'Cci- crsoo— r5coi^— cicoi-'r— -xco— rei-ox-^ ri X I- re CO ci — o C5 o 1.0 CO c I- CO re CO CJ ce ^ I— ire CI c; Xv — Ci o X -^ t^ r^ CO LO CO •— X — X r: uo 1^ CI — »e OLOcoi^ooxx-r-rre — CO — •^•rre-j' : -.a 252 PAPJiRS AC'C0M1'ANY1N(J TJII-: If '.1 ti :2 Z*' ■'"■•'''' "f '^'-5 ='•-"- •fn^'^Ci - :- ^'M:^ VI :o t* fc t-* 1^ CiO ff I CO <:i i". l-^ o ir- i.- os ;o ; ^ r* -^ ^'' [^ '£ ':^ fo a> o •£! HI rrj CO o o oi CO CO c-M^ ; OO'*00C5OC0i-l»I'1TJC0MC0.-*a0M00C0l- C0C0"*^:l-*t:~T-IOOC0Ot~C5■HC0C-1r-lr^■*O o CI X ot o i.o N CO C! o r^ — «■) ro r;i ■»• 1-1 ,•< CO lo oocDcioococot^coi^oocirocoasiooooco i> I— oc .-5 CO T« t-i Tf ■»• c) CO .-; CO IT. r1 t- CO CO «1 ® S S^ fc£o Ss 9 g o c cs.ti-^iS C^ a 3 B.2 tic a c: ^■S '• ■J! t- 2 f- C o C o o iMR^ o ^ p^^ r^ c2 ^ ^ X « g J; li-E=§l^ Crt f^ REPORT OF THE SECRETARY OF THE TREASURY. 253 «»r-(<-i 7J •-<•-' '-0 t— rti-H 1-1 1-1 "-l > o m t- o rj o "T ■f ««■ Ca CrIrllM rH C10?> i-lOlOCQliO'>l-X«0 0»-l'»i-i»Cl>rt*«' i-i ro ffi o 3 t- « c: I- !S o -"T ■» T(i X » t~ ci a" t~* •!<" r f o" cT p" x" u-" « i-'i" x" o" >-<" N irt « rt O (M ^ T'l O r^ f '-*- T. X to C5 » » f^ t — "-"S .Ha>oxcit-=ii^!r^t^-»ciocj0 2i;'-J c; C3 -^ :^ "1 '^ t^ I-" t- ^-'i f^ >-* ^ t' "^ ^ — ^ t-T co" o" to" o" r-' S5 -H o' n r-" cT ■—" c i •-' 7 j x x" C-J C? Ol O Cl CJ O C: I- O ^ * I C3i '" to to O M ei to t~ c-3 1- ■-■2 to rj i»ftMiOtOC0*H«D .Cl-^OStOOOM • to rH ic o i-'i ^ CO . r- to o o t>- 1* X t O -^ X O — C^ "* I t^to 1^ to « 1^ CS ■ m6 « — to ^ r-i • •-; c: c I '. 1 X -r !■- ot^ooo»^o«=>ootooo OrHOC^IOOOtOOOOCItO -* o i-H CI n I- c c-i r- Cl •«}■ f-H O r^r^x X r: t-3 C-l r-" 1-1 O I <»• . . . . . .-I rl « rti-l t~ I- •«■ — ii-l S O X • CI 1-1 « ■ cit~-*oxr:xooi-ic:t-e-i-^— '".I to o " rs in t ■ o « to o CO w i.'s to o> n e-i ri Ti X t- o '.o ^; 1- X c) « — M to X 15 o -r ■* ?t c^ -* o o Oi IS cc ^^ T-J to •-* — . -^ o O) ccmcoroX"i-r7»nciC-ito^ci'M^<-'t'- to" 11^" o" >.-r to" to" —" c' x" 1— ~ I-" I-" .-<" T r x' c-r i -f ^f ci o oa X Oi o o to o — ' c^i c; ir: o i."^ cs M ^to 1-1 ?i ?i »r u; o ^ cito t- e^ t- m to CO X o 54S X cfi-T c r- Cl'r-^ ftHfe-^Hii^^t^t^WHd^P^WftWx : s ;::; a) : ;.b ::;•;:: : . o . . . .r • iiC • • -.S • : • • O fcX) u?;,55i«^u;S'ay the expenses of operating and keeping in repair the telegraph lines constructed aiul operated by the AVar Department in Texas, New Mexico, the Territory of Arizona, &c., out of any moneys received for dispatches sent over said lines, and any balance remaining after the payment of such exptjnses must be covered into the Treasury as a mis- cellaneous receipt. Under the construction jdaced by the accounting oflicers ui)on the several acts making appropriations for the construc- tion, maintenance, oi)erating, and keeping in repair the several tele- graph lines under the control of the War Department, all funds received from the public for the transmission of private dispatches (excepting receipts from line extending from Bismarck, Dak., to Fort Ellis, ]\lont.) may be used by the War Department as hereinbefore indicated, instead of making deposit of the same in the Treasury-, and said sums enter into the gross amount disbursed by the Signal Bureau of the War Depart- ment during a given fiscal year, but do not constitute any portion of the sums specifically appropriated by Congress in the usual manner, such fuiuls having never been in the Treasury, thereby showing an excess of expenditures over amounts aijpi'opriated by Congress for that particular service. Section 3017 Hevised Statutes, second edition, provides that the gross amount of all moneys received from whatever source for the use of the United States, except as otherwise provided in section 3G18, shall be paid by the officer or agent receiving the sanu', into the Treas- ury at as early a day as practicable, without any abatement or deduct- ion on account of salary, fees, costs, charges, expenses, or claim of any description whatever, lleceipts from these telegra])li lines are not em- braced within the jjrovisions of secticm 3618, and are not exceptions to the general law beaiing ui)on the subject. I think it requires no argument to show the wisdom of a ]>rovision of law which kee])s the expenditure of the ])ul)lic reveiuie entirely under the control of Congress; and I am of oitinion that awisei)olicy dictates that every dollar expended for the supi)ort of the government in all its branches should be traced directly to the Treasury, and the authority under which it was drawn therefrom. Inasmuch, therefore, as tliere appears to be a contiict between section 3017 of the Kevise*! Statutes and the acts recited, I would respectfully suggest the propriety of legis- lation requiring all inoneys received for the transmission of i)rivate (lis- l)atches over any and all of the lines owned or uijcrated by the general government, to be doi)osited in the Treasury. I resi)ectfully renew n\v recommendation in regard to a stiitute of limitation. Such statutes are no longer looiublic Treas- ury, would remove a great temptation from the viciously inclined, and would give'much needed relief to the Executive Departments. I take pleasu)e in bearing testimony to the general good character, intclligenco, and diligence of tho, ])erson,s employed in this bureau, and commend them for the faithful manner in which they have discharged their duties. Kespectfully submitted. E. W. KEIGHTLEY, Audito)'. Hon. Charles J. Folgee, Secretary of the Treasury. EEPOET OF THE FOURTH AUDITOR OF THE TREASURY. Treasury Department, FoiTRTH Auditor's Office, Washingto7i, Kovemher 1, 1882. Sir: In accordauce with the law requiring the Auditor charged with the examination of the accounts of the Department of the !Xavy to report annually, on the first Monday in iSTovember, to the Secretary of the Treasury, the application of the money appropriated for the 2savy De- partment, I have the honoi; to submit the following tabular statements for the fiscal year ending June 30, 1882, with such comments and expla- nations as they seem to require at my hands. Disbursing officers in foreign waters, as authorized bylaw, make their payments from a fund (which has been drawn from the Treasury under a "general account of advances,") charging each particular jjayment'to its proper appropriation, subject to revision here. Monthly statements of these expenditures are made to this office. Many of them, of course, are not received until weeks, in some cases months, after the close of the fiscal year, but all were in when the table immediately following was made up, and which is designed to exhibit the several appropria- tions made by Congress, and the exjienditures with which they are prop- erly chargeable, as shown by the reports of the officers who have dis- bui'sed the money. Pay officers at home draw money under the respec- tive heads of ai)propriation, keeping in hand sufficient sums to meet current liabilities, and returning unavailable balances to the Treasury, as required by law. Appropriations with balances to their credit wOl still be drawn upon to meet liabilities lawfully incurred during the fiscal year. Payments of the latter character are shown in this table where expenditures under appropriations for years prior to 1882 are mentioned. It will be observed that the aggregate payments during the year are a little less than the aggregate of the appropriations for 1882. Some appropriations have been ovferexjiended, some deficiencies have already beeu made good by appropriations, while others remain for the futiu'e consideration of Congress. A deficiency not made good by a subsequent appropriation must fall at last upon the continuous appropriations — to wit, Pay of the Xavy and the Marine Corps. To the credit of these appropriations there were standing at the beginning of the fiscal vear: Pay of the Navy, $1,747,521.73, and Pay of the'^Marine Corps,$798,7i2.25. These sums have been added to their respective appropriations in the following table, making the amounts available for the year for pay of officers and men : REPORT, OF THE SECRETARY OF THE TREASURY. 25? •o89T '[[iq A'jnoiopap jaJ pa'jtjudoiddc ^auoinv ■ptudjaAo luuouiy _ ; -1 — . C) l~ l.-. -T o c: , _ ; oc X ".- = -^ -3 I L-; — I- .--: t-^ -• s: s C5 1 O — X — X -T-«T w r< -r = X : — 1.- t~ X s: 1-1 o >.- — Z — r~ c; o X r^ H p fv inniiaffv » irinniii-c- I '-<'-^'=rQ'» o'o t-"o o cf c — " ■* to 00 « <3 ri 11 P4 f J -; y 2 ""^ 2 2 S •po^vudojddB ^anotuy ■aB9i • XXXXXXiCX ?$ xxxxxxxx 5si8§^2 5iS = 17 Ab 258 rAPKRS ACCOMPANYING THE 'tl!1 ^anoioosp .10(1 pa)U(.i(lo,((ldu)iiuouiv •pjiidlSAo Jiiiiouiy •fi.iail.iiioA A'n iiAvorjR > T}< I • O rH ■ fj • ' t- is ' I I ! • I I '<• 't '•'• t '•'• \ ', \ '• 'i '.',', '• '. '. '. . O • ' CI " ■ ■ ! -^" ' i oi o" ! I • • • I I '•'•'• I '•'•',''.'•'•'•'• \ '•', \ ', II •» • -Oi . ■ • • I ■ f-l If r- M a. r-l B O M X ■* X -H 11 S 3-. =-. X => =, 1-5 OlO O a O m -J X L^ CI W CI CI ?i I* (M X xt" i-H .x ^H Ti 3; ^ ^H .-« Ci -^ t- t* o -M n I- r^ *T •.:i r* t^ X CI c?> •— ^- '*- t-i re ■T' -^ t- ift X X I* CO ic o (--. o oa M r; — 1^ i-t X X r: o ^ Si 7 1 -I* o -f x> -*■?-; © in r^ I- cj »-i o th c-1 ci 1^ CI oc a> lA vr: I- X ^^ I--- -^ o -^ '.5 ^ X Ci r-» ro x x -^ CO »-*Mci(o^ cii— iffo cncoi---^''j'fOcji-ico tccafor— tff-tfcsi -H Oi «* iH CI i-C Ct l- I^ L-i X h- • O O O C3 ;© o C5 CO OfO O 39 ^1 rH ■-< I- O cq c: '« ■: 1 in ^ ' t~X < •5in;.i.u;j\ O r-f ^ — ' tt t^ X i.'5 -. -»• :0 • o ir; tt X K X o ir: o T I CI • .-I M = s to " C-. — ri o Ti ■' cs r: • ci o: cc — -5 c; ,-c -^ i - .-: ■ «5 -qi • co cci^'*ii — )-i-i3-. ro icsift 'CI ce X c o X t* X ro i-i re X ifs ci ci: m o o o X t o » »n CO C5 o L^ u': o CO ic o l~ X -^ CI C5 t~ ^ X M O If; CO in I- cr^ c. ■»* t' 3i »" X CI t-fl o o X ■ cc ■* L- CO c- o ci CI I- CO era r-l o'co'rH CC ci"' C» O O 05 SI Ci f-J C^ CI tn '^ CO -* • t^ h- O t^ CI \ri- «■ rH CC rH li^ iH 00 CJ r-4C<5 Tf ir. -^ CP r-i O TT 32 t- f- • t- rC LT rH CI OJ CO c3;co3i3;e,5xc^xr^-ri- Icoco^t^ c^ •^-- c = ^ ;= X ■* V -^ ^: 1 1 -» 3-. ■ :-: •-. ^ -o co i- o c3;coc:<.»'Ci I- uiinoi^ocrioooicor-^ «oc.m3 05 00 Ol-Oiri-^lrtCOr-ITj- ■ O CO '^ in f-t •jBaji^ CI CI CI CI CI C) CI CI CI CI CI CI ^ CI CI CI CI CI M CI CI CI CI CI CI CI • CI CI CI CI ^ CI CI CI xxxxxxxxxxxxxxxxxxxxxxxxxx -xxxxxxxx XXXXXXXXXXiX'XXXXXXXXXXXXXXX .xxxxxxxx ■ j I i I ; fcb i I : i : • • • • • i i i i • ■ i : i i i i i • • i : ; i : I I -s e^ ^ ; I I : : i i i i i >, i i i i i : i i yi : : -^ : : : I : I :SS3 I : I i i i i i i i 3 i i i^ : = — § = : & : • • . I . • o£^° • ■ I • • • ■ ■ CO ■ SJD ■ ; ■ o I I : Is I "PI : : : • : bcg* :^:::J iii;?ibii:§:ii:ioi :*-: '.'.'•' ^ p^'o ','. s k. I I I I •T' I "3 I ! I * I ; I c* : : « ; : : : • : 5 s^ g : :^ ^ i 1 i 1 >. i « 1 i >,-:s . : .-5 § : : ^ : £ if : ;SSi:"'sg3 ° ". :-i: :5ce-S i^^^s^ i 1-3 i : : 2 i ^ a 2 ; g~ 2 ^ " rtTS 2 S -f=2 o S Srt a.= £:S 2 &c ^■> ^-s rs § >, f ^';3 5 -g ^'3 J -2 g "S 3 ^- n-rS-d-^- S ",5 g- 5 ^'3 i j- t ^'3 -2 J 3 o gS^'ll'cEisSx^oi! b fe^|:fe*5'^c'-.-:jics5aSca-goS3 I §1 g|§| I £| g:^ I llllilll g-i:s|| il:s i i Ij REPORT OF THE SECRETARY OF THE TREASURY. 259 • :: i i i ::::::: i i i i lit o t- H :- t- 3 If 3S3 = M -^ O r: Si-x — I.-; ^lir^s X = :i = rj»-wo o oo t~C5 ri = «cj t- . «et-o O cs tt ?i :a t^ *i. ?J I-' :o o c-i « o ci 21 o — r: -^ i^ -^ = X I-*: ».^ •' r> • ^ o t* 5 5 S r: S ♦! A a r: 1- S f- s o X M 1- - 1 " T — '"^ Jt " o o ?j • t- ts c- OOMXXCCXXCCXXXXa.XXXCCCC'XXOOXTOOCXXTCOCXOOQC'XXXXOC.OOXXXXOCXXXI. 1-S» ocxxxxxxxxxxxxxxocxxxxxxxxSfxxxxxxxxxxxxxxccxxxxxxx — 56 2G0 PAPERS ACCOMPANYING THE 7.R«l •ptBtliOAo iniioniY •fijoqonoA Aq n.ttoqe SB popugdxo ^ttnomy C1'nOOOt-M.-IC<5Ot— OOOOMCIOOCI O X I- CO >fi O ^ CI CO -^ C>1 O 5; CI — O I- CS CR l~ fC -H CO 1-1 CO© I-Ht^ OCl ••Miq-^IiajCOC. LI •se- .. ....... ^ O f-f^rHO-^CIf< •3881 'oe •jrrcj.niAi •pa^jBiado.idcIis (^tinoniY •JB9i ^ _'» >> -"^ k"? H S ?'^ 4" !-.-'' S '3 S "-= S £ £_■- = -o ® ^ . O p "*- S.^ p'. c => »^ ^ -:: — c !« - - (-5 o © "> — =e J' 5-3 £^ g=- '-^ ^ 5 M a ^ S ^ § 5 S S^ 5 = I ^ a Z = C =-. H c:t:r -■" ^.o c x tLs 2s S i — - ? £ o^ c o * s o ^ o r'. o c _ ^ .. ^> H REPORT OF THE SECRETARY OF THE TREASURY. 261 EXCHANGE. Bills of oxckniifje -^ere sold hy the pay ofiicers of the Department of the Navy during the year to the amount of 8l,7G7,723.7.~». Of tliis .sum, •91,355,137.71 Mi'.s drawn on Messrs. Soli^^man Brotiiers, London, and $412,586.04 on the Se<;retary of the JS'avy. The foliowin;; tables sliow these transactions in detail: DRAFTS DRAWN noa, Italy (jil)rallar. Spain . France , I'ari.s, France rintus, (iifccc Plymouth. Knpliind Kib de .Janeiro, liiazil Sandy I'oint, I'ata;ioniii. Santa \nna. Cura<^oa, West Indies ... Shanghai. China , Siugaporn Sniyma, Turkey Stanley Port, P'alkland iHlaudt...^.. Trieste, Austri.a Valparaiso, Chili ,. West C owes . Lsle of "Wight Yokobama, Japan t S. ,074 400 , 200 ,000 , 88J ,500 ,000 ,000 , ;!t;5 ,000 , C'iS 800 ,000 , .500 2K3 , :v,» ,000 676 600 ,000 ,000 ,500 ,000 ,300 ,000 500 ,000 ,000 500 500 ,000 ,000 ,000 300 , 000 478 , 000 , POO ». d. 17 10 I I I 111 n 1 3 9 9 $5, 230 97 1, 946 60 10, 706 30 4, 866 50 9, 166 05 46, '-'31 75 4. 8Q6 50 24, 332 50 26, 108 77 14, .igg 50 43, 961 77 3, 893 20 9, 733 00 61, 0'.)ii 25 1, 377 .-.2 176, ;i87 24 9, 733 00 2, 803 10 2,919 90 29, 199 00 238, 458 .la 26, 765 75 34. 065 50 308, 049 45 4, 806 50 2, 433 25 20. 199 00 24, 332 50 2, 433 25 2, 433 25 9, 733 00 4, 866 .-)0 9, 733 00 1,4.')9 95 9,733 00 2, 320 19 9,733 UO 154, 754 70 $.5,341 00 1, 951 23 10. 032 00 4, 873 25 8,927 69 46, 129 53 4,715 60 24, 125 00 26, 002 77 14, 022 65 43, 854 02 i 3, 893 20 . 9, 524 92 i 49,893 19 . 1, 377 52 ! 169, 255 78 i 9, 6»;9 30 I 2,803 10 ! 2. 919 90 i 29, 17:: 48 ; 236,921 21 25,793 12 .33, 934 22 306, 817 91 4, 861 67 2, 433 25 29. 155 20 24, 138 15 2,433 25 2, 400 62 9,403 93 4, 702 68 9, 619 12 1,459 95 9, 609 30 2, 326 19 9, 720 83 150,527 18 $074 30 249 1.14 102 20 150 90 207 50 106 00 114 50 Par 208 08 1,205 00 7, 731 46 63 70 Par Par 28 40 1, 627 61 972 63 131 28 1,231 54 4 83 Par 43 80 225 28 Par 26 63 329 07 163 82 113 88 I'ar 63 70 Par 12 17 4, 227 52 $110 03 4 63 6 75 10 68 23 15 6 75 2 88 0« 32 30 93 Total 278.462 9 10 1, 355, 137 71 I 1, 335, 408 93 20,014 00 286 12 DRAFTS DRAWN on the SECRETARY of the NAVY. Amoaut. A cnpnlc|k ifoxico Aspinw.'Ql. lTnitco Verde Islands Tahiti, Society Islands Valpaniiso. Chili.... \'icioria, llritish Coiumbia Yokohama, Japan Total $16, 183 57 11,5(10 (lO 40. 000 00 H. 000 IM) 2. 500 0(t 69, (134 49 2, 078 ,■>« 67,817 13 0,700 00 110 00 3,000 00 13.662 27 15, 500 00 lii6, 000 00 $10, 183 57 11,4.50 00 39, 85(1 00 8, OHO 00 3, 500 00 68, 277 49 2, 678 M 06.872 13 0,700 (K» 100 00 3, 009 60 13, 562 27 15.4(13 12 1.53, 329 60 412,586 04 Gain, t 407, 916 36 I 4, 670 28 262 PAPERS ACCOMPANYING THE The sum of these transactions for the past year, iu coinparison with those of the two previous years, is shown by the following statement: EXCHANGE SOLD in 1862, 1881, and 1880. Drawn on- Year, Amount. Loss. Gain. United Stales 1882 1882 $412, 586 04 1, 355, m 71 $4, 679 28 20, 014 90 $9 60 286 12 Total 1,767,723 75 24, 694 18 295 72 1881 1881 "United states 78, 044 30 1, 767, 333 09 1,531 38 26, 268 00 102 50 891 97 Total 1, 845, 377 39 27, 790 38 994 47 1880 1880 188,590 91 1,746,887 39 614 05 27, 475 15 328 84 1, 130 79 Total 1, 935,478 30 28, 089 20 1, 459 63 Pay officers are instructed to draw on the Secretary of the Kavy "when such bills can be as advantageously sold as those drawn on Lon- don. It will be seen that the drafts on the Secretary during the past year were very considerably increased over those of the two previous years. In the autumn of 1881, Paymaster Foster sold in Yokohama, Japan, bills to the amount of $156,000 on the Secretary, and received $771.82 more than he would had the same amount been sold on Lon- don. The condition of the market was rather exceptional at that time, due largely to the fact that London was sending larg-e sums to iSTew Tork to pay the balance of trade then in our favor. It seems probable that conditions which will be favorable to the sale of United States bills •will increase, as our own trade is extended to distant nations, and as the balance of trade is favorable to us in our transactions with Euroi)ean countries. London is still the money center, the world's clearing-house, and is likely to remain so for many years to come. Our progress in that direction is not very rapid, but it must in the end be sure. The above tables are indications pointing that way. In accordance with the suggestion made in my report two years ago some of the pay officers are in the habit of sending with their rei>ort of sales clippings of market reports iu the daily papers of even date, show- ing that they have obtained the highest market rates, or even better at times when active competition has been invited. The following ex- tract from a letter of Paymaster Foster, written at Yokohama, Japan, February 10, 1882, will illustrate this : I inclose a cutting from the Japan Gazette, of YokoLama, Japan, of Feliruary 9, 1882 (evening edition), showing the rate of exchange on the day of sale for silver yen, in which the bill was negotiated. The pnhlished hank selling rates were 38. dJrf. sterling for hank hills on demand on Loudon, and 90 cents United States gold, on New York, per silver yen. Bids were requested from five hanks, and the h«|t rates ohtainahlo were 3s. S|rf. sterling, and 91 cents, respectively, per silver yen. The ster- ling exchange shows hut a reasonable difterence between the buying and selling price, ' but on Washington exchange the margin is larger, owing to the expected rise in exchange between New York and London, on account of tlie close of the American export season. The bill was drawn on London, that rate being more favorable by $34.02, United States coin, and it will probably continue so for several months. Washington exchange was more favorable from September, 1881, to January, 1882, inclusive. , ACCOUNT WITH SELIGMAN BROTHEKS. A commission of 1 per cent, is paid to Seligman Brothers, London, for disbursements made by them. Their commissions for the year amounted REPORT OP THE SECRETARY OF THE TREASURY. 263 to $U,7G0.36. They pay 4 pA cent, interest on daily balances remain- iug on deposit with them; and receive 5 per cent, interest on advances they make. The interest paid by them during tlie year was 84,960.5(3; and that received 81,650.27, making the net interest received by the de- partment $3,319.29. Money is tranferred to London from New York by means of sixty-day bills. Exchange was fiivorable during the greater part of the year, and the net gain from this source was 87,220.16. THE PUBLIC CREDIT. I have respectfully to suggest iu reference to tlie work of the Lon- don fiscal agents that it could be equally well done by one of tlie Navy Department's own disbursing otficers, thereby saving the conunission jiow paid, and adding otherwise but little to current expenses. Such a change would also comport with the dignity and charact^ir of the Gov- ernment, which should be able to transact its business at home ami abroad by the agency of its own citizens and ofiicers. There are in the pay corps of the Navy men of ample exi)erience and ability for such a trust, also of high and unquestioned character. If this suggestion should not be thought feasible, then at least the commission paid should be re- duced to not more than one-half of what it now is. One-half of 1 ])er cent, would be ample compensation for paying out this money. At the time the present commission was adopted, forty years ago or more, the credit of the country was not very high, and it needed the name of a bank- ing house to make its paper current. Upon this point it is instructive to refer to the annual message of President Tyler, of December, 1842. Speaking of an effort of the Government to make a small loan he says : After a faihiro to do so in the Ameiicau market, a citizen of high character and talent was sent to Europe witli no bettor success; and thus the niortifyiD<; spectacle lias been presented of tbo inability of this government to obtain a loan so small as not iu the whole to amount to more than one-fourth of its ordinary annual income, at a time when the governments of Europe, although involved iu debt, and with their sub- jects heavily burdened with taxation, readily obtain loans of any amount at a greatly reduced rate of interest. In 1844, Benjamin E. Curtis, late justice of the Supreme Court of the United States, published in the North American Keview a very able and eloquent article on tlui importance of maintaining the public faith, in which he refers to this attempt to borrow money, saying: It was offered on terms most advantageous to the creditor — terms which in former times would have been eagerly accepted, and aft^r going begging through all the ex- changes of Euro])!', tile agent gave up the attempt to obt:iin money iu desjiair. It is impossible tobelievc that auyc-apitalist refused to lend his UKUiey because lie doubted the ability of the United .Slates to i)ay their debts. Nor is it credible that the mere failure of a few of llie State governments to meet their engagements would have i>ro- ■ dueed tliis extraordinary elfect. It is tlie truth, and it should sink into tlie heart of every American, that this loan was refused because Europe diuibted (ho honor of thin country. It cart be readily understood that, at that time, a draft on a resjM'ct- ablr Ldiidon bank was a great deal better than a draft <»n the Govern- ment ol" this e,onnli-y. It is unnecessary to say that all this has ehanged. Our public credit does not now reijuire the sui»]>«>rt of any i)rivate linn or corporation, and it is not good economy to continue payin^^ fur tliat which we no longer need. 264 PAPERS ACCOMPANYING THE liOOKKKEPER'S DI"V^S10N. STATEMENT of fhc WOltK PERFORMED Inj the BOOKKEEPERS DIVISION for the fiscal year oidivg June 30, lH8:i. 5* a' ^ ?2 t 5 Date. k a to <«.2 -.3 Is .s o £•3 a a > l B & . o B a 5 a 1'^ 5 1^ o is 1 »■ P % o '-A < 'A ^ ^ «si3 >A 5 . Amount involved. 1881. July 14 23 • 12 9 26 11 14 18 16 27 10 44 4 17 18 8 20 19 26 29 15 45 76 72 27 36 46 100 98 64 79 89 86 90 50 58 23 24 54 37 38 59 57 42 65 45 $2, 590 02 10, 014 24 84, 707 30 110. 996 74 46, 243 34 0, 832 21 1882. 154, 072 31 6.-.,641 30 85, 579 16 jtpril . . 30, 547 04 ilay 27, 529 91 140. 987 47 Total 230 232 863 552 771, 741 13 REPORT OF THE SECRETARY OF THE TREASURY. 265 ARREARS of PENSION, ACTS of JANVARY 25, and MARCH 4, 1879. Date. j «? ■?- . \ B > '. sM Amount ! 5? £? involved. JlllV Aiiiinst..*. Oi-tober..., iJtfci'iuber . 1882. JfiMiarv :Maivh.'.. A 1*1 il . . . . May JllIU' Total . AilOUXT PAID NAVAL PENSIONERS. $973 4U 1, 010 93 8.'4 70 Peut-ioi) agencies. >>T- ? = s J^.i i£ ^ ., s " i. ' Aii^riista. ile BoHtou, Mass Columbus. Ohio... Cliieano, m Concord, N'. H . ... Dotroit. Mich Krioxville, Tcnu . . Lonisvilh\ Ky Mihv.iukvo. \V'i.'< .. New Voili Citv... rittshursh. Pa... PhihuU'iidiia. Pa. . San Fiancifico, Cal Topoka. Kflns WasliiufTfrtu, D. C Total s = c ^~*C ^^^ ~ Sz>^ i^.S « 1 fi 69 ..! 13t $11,932 .34 520 520 : 1,040 1.57, 329 42 55 113 108 23,634 75 90 76 166 26,205 17 86 71 157 30.757 .39 24 26 1 50 6, 406 76 83 la ! 204 34. 467 49 11 23 I 25 1 34 3, 241 07 30 55 8.294 51 550 415 965 140, P45 26 50 69 1 119 21.771 60 320 455 1 775 95. 177 04 65 41 1 106 6,902 14 25 30 ' 55 12.971 9C 400 5lS ; 916 143.794 31 2,'378 2,563 4,841 723,731 21 Number of acconnts on hand Jane 30, 1832, 25; vouchers examined, 15,326. PURCII.VBIXG PAYMASTKItS' AND ALLOTMEXT ACC(JCNf.S. STATEMENT of thc^WORK PERFORMED hi the NAVy PAY and ALLOTMENT Dn'ISION for the fiscal year ending June 30, 1882. Date. 1881 July An^riist SojitcnibcT October Xoveniber Doceiuber 1H82 ■Tnnuary !•> br u ary — March April * May June Total : s . it Amount ii> B-2 «"s £o volviJd. u o « tj < >A ^ 12 213 240 $036. 000 84 17 217 •-•09 091,984 90 19 204 214 iKi, 51<5 41 26 2«2 279 158, 042 49 a 213 187 5'.'6.814 03 22 242 244 •287,423 59 55 215 214 120. 370 93 32 213 186 390, 470 CO 29 224 171 221,578 50 33 240 ■ 219 7, CM 45 31 251 2(i0 273,381 41 50 340 204 1,084,949 19 350 , 2, 734 2, 627 1 4, 891, 153 4« 266 PAPERS ACCOMPANYING THE ALLOTMENT ACCOUNTS. Date. Allotments registered. Allotments discontinued. Date. Allotments 1 Allotments registered, discontinued. 1881. 132 48 136 149 88 226 1 99 101 1 115 1 154 ; 85 81 1882. January 74 104 57 101 47 53 83 J-l March 44 April 99 il ay 115 110 Total 1,105 i 1.167 AMOUNTS PAID for ALLOTMENTS at NA VY PAY OFFICES duriug the year 1881. New York...- !?ir.2,000 .50 Boston 0^'>,079 00 Washington, D. C 81,88.5 83 Philadelphia 70,398 50 Baltimore 36,660 00 San Francisco - '^7, 853 00 Norfolk 31,3H'J 00 Total 505,265 83 Accounts remaining on hand June 30, 1881, 283. Accounts remaining on hand June 30, 1882, 193. Number of vouchers examined, 31,734. BOUNTY, ARREARS OF PAY, AND GEXEEAL CLAIMS. STATEMENT of the WOEK PERFORMED by GENERAL CLAIMS DIVISION for the fiscal year ending June 30, 1882. Date. Claims. .H S Letters. Knmber of reports on applications for o *s 1 1 < '5? % 'S ■!-' .2 "tr. ■ C On 1i9Tiil Jntip 'Jrt lRi51 70 85 303 54 78 114 70 65 82 140 231 271 245 1881. 70 .58 50 74 113 07 64 53 66 86 259 168 "'36' 6 9 10 •9 $C, 706 50 5, 219 56 3, 636 40 8, 091 17 12, 420 80 5, 302 33 6, 883 02 5, 997 33 3, 259 85 27,413 06 70, 452 53 39, 038 00 458 377 329 300 552 430 395 409 578 643 089 751 431 367 330 357 505 422 421 408 528 583 818 678 120 80 76 54 148 100 144 149 135 134 12s 80 4 * C 1S82. 2 Tebrnary 2 1 1 ■M'lv ** * — .. . - Total 1,814 1,134 u 195, 147 39 6,037 5, 908 1, 300 16 THE JtBXICAN WAR THREE MONTHS' EXTRA PAY. Of the above-meiitioued settled claims CG were for the three months' extra paj', autkorized by the act of February 19, 1879, for services in the REPORT OP THE SECRET AJIY OF THE TREASURY. 267 ■warMnith Mexico, and amount to the sum of $2,072.70. There had been pre- Tiously settled of these chiiuis 1048, and i)aymeuts made of $4o,.j01.G8. The act Just referred to provides that the firatuily is to be jtaid sub- ject to the limitations of the act of July 18, 1848. As has been previ- ously stated in t)ue of my reports, tliat law was passenl for the exclusive benefit of persons who were employed in the military so;rvice duriuj;' the Mexican war, and limite«l the i)ayment to those who ", -Nerved out their term of engagement, or have been or may be honorably discharged," and to the widows, children, &C., of those " who have been killed in battle, or who died in service, or who, harin(j been honorahh/ dhcharged, luiv(! since died, or may hereafter die, without receiving the three months' pay." The term honorably discharged, as used in the law, ai)i)lied to the enlisted men and to the volunteer olhcers of the Army m ho received an honorable discharge when mustered out at the close of the war, or when their services were no longer required. It v/ill be seen, therefore, that tlie "limitations" of the law of 1848 necessarily excluded those officers of the Xavy and Marine Corps who resigned their positions or remained in the service, and also the heirs of those who rei?igned or died in the service after the 19th of July, 1848. Bills have beoji intro- ducevl designed to change the act of 1879 so that its benefits may be shared by all, whether in the regular or volunteer Navy, who i)arti- cipated in the Mexican war and were not discharged or dismissed for dishonorable conduct during its continuance; but they have made little or no pix)gress, and the matter remains in statu quo. MILEAGE FOR TRAVEL ABROAD. Apparently from the foundation of the Navy, certainly from 1835, it Lad been the practice to pa3' mileage for travel at home and actual ex- penses abroad. In 1874 all mileage was abolished by act of Congress. In 1876 mileage was re-establishedfor travelinthe Xavy, and under the advice of the Attorney-General the old practice of pa> ing actual ex- penses abroad was continued. The question of the legality of this prac- tice was tested in the case of Temi)le rs. the United States, and decided by the United States Supreme Court against the defendants. Of the above-settled claims 253, amounting to $03,254.94, were adjusted in ac- cordance with this decision. An additional number have been adjusted and paid since the close of the fiscal year, and others continue to be re- ceived. At the late session of Congivss a provision was adde«l to the naval appropriation bill giving legal sanction to what had been so long the practice — namely, the payment of actual expenses only for tr;»v«l abroad. Claims for mileage, arising under the law of 1.S35 (in force until 1874), are still pending in the Court of Claims. A large number have nlso been recdved by this ollice, but no action will be taken until a final ttecisiou has been reached in the courts. PAYMENTS TO MACHINISTS. Of the above-settled clain)s 47, amounting to 828,704, were allowed under the act of June 10, 1880, giving gratuities to discharged nuu-hin- ists in lieu of re-enlintment, €r . Octoborr >.'i>vei!jl)er . DcrenibiT .. 1882. Jantiafv FeltniaVy .. jsti.i-ch: April f-'y- Juue Total... Letteif 99 1-25 84 915 101 113 127 105 158 101 122 158 120 >32 101 113 113 124 157 119 182 142 148 189 1,389 1,040 Claims — a> sa a 7 8 6 100 $212 GO 2!I0 60 557 37 3*8 47 159 18 204 89 509 07 301 84 988 41. 847 04 278 43 534 73 Kecords. 1,192 1,126 884 1, 120 1,222 1,166 1, 159 1,133 1, 299 1,417 1, 459 1,499 •ri S5 mri 1,297 1,192 1, 057 1.187 1,270 1,196 1,204 1,218 1,291 1, 385 1,727 1,553 5, 253 29 I 14, 682 15, 637 2,383 2. 113 1,484 1,.516 2,141 1,588 1,485 1,744 2,187 1,645 1,551 1, 4*4 3,955 2,113 1,484 2,523 2, 50J 2,807 2,191 2,603 3,917 1,645 2,780 2,410 21, 321 30,933 66 This division is charged, also, with the preparation of all reports and tabulftr statements called for by Congress and the Secretary of the Treasury; the preservation and care of the files; keeping a record of appointments, resignations, removals, and absences; the care and issu- ing of stationery used in the office, and the payment of salaries to em- ployes. NEW ORLEANS PRIZE-MONEY. I regret to have to say that Congress have as yet made no appropri- ation to pay what is known as the " third iustallmont of Kew Orleans prize-money." Besides the vessels captured by the tieet under the command of Admiral Farragut, during the engaiwemeuts near Forts Jackson and Saint Philip, a large number of vesseis were destroyed, for which the court, in 1873, awarded the sum of $26S,G00. At the date of the award there w*as in the Treasury, after i)aying fees, &c., but $93,805.20 to the criedit of the appropriation " Boun.ty ibr the destruction of enemies' vessels." This amount was distributed to all the captors. There remains to be ap|jropriated by Congress the sum of $143,644.47. There are several thousand i>ersons directly interested as creditors iu this matter. This money is as justly due as tliat arising under any other obligation of the government. The chaimants are worthy men who have rendered valuable services to the government, and are clearly REPORT OF THE SECRETARY OF THE TREASURY. 269 entitled to the money which has been awffrded to them by the proper court. If Congress failed to provide for thx; interest on tlie public debt, or the principal when due. it would be reccijrnized as a national disj?race. So, also, if they neglected to appropriate the money to meet the claims settled by the accounting officers or jud.'^ments rendered by the United States conrts against the Government, /t would be regarded as highly reprehensible, and discreditable to our whole people. The claims of ofQcers and seamen for this New Orleans prize-money — claims i>roperly adjudicated and judgment given — are just as valid as those named, and they ought to be paid with the same promptitude that all other lawful obligations are paid. It is respectfiifVy urged that there is no shadow of a reasonable excuse for longer del/ry on the part of Congress. ABOLITION OF JPRIZE-MONEY. It has been suggested that pwze-woney ought to be abolished; and one or more amendments were offered to the last naval a])propriation bill to accomplish this i)urposo, bntithey were ruled out of order,. and no direct vote was reached upon them. It would seem that this is a move in the right direction ami in jMicordance with the spirit of the age, as well as with the laws and regu7ations governing the military arm of the public service. It would be, difficult, perhaps, to give any good reason why captures made at sea should be awarded to the captors any more than captures made on land* The hopes of such prizes may stimu- late to greater exertion in the r.aval service, and in naval engagements particularly, as tliey would, doubtless, in military enterprises on land; but in both cases would it not»be better to rely on the honor, the sense of duty, the courage, the diwipline, and the patriotism of officers and men, rather than ui)on the boi)e of incidental pecuniary reward? The ineiiualities, jealousies, and dissatisfactions growing out of the distri- Imtion of prize-money are proverbial, and can be remedied only by a discontinuance of this reKo of ruder ages. PATMAJ?.TERS' AND MARLNE ACCOXINTS. ■STATEMENT of WORK PEllFORMET) hij the PAYMASTER'S DIVISION for the fical year ending June 30, 1882. July Au(;uHt September. October November . December . January .. Fobnuiry . March April Miiy Juiio Total, Date. 1881. 2 i S t Js 2d 2 > fi eg It Co §^ ^■3 5-S A » r s -< r- t-1 S 25 24 124 97 4ft2 :>6 27 116 133 371 21 34 107 101 eM 28 30 163 115 1, 722 4'.J 27 155 125 509 23 40 125 95 663 18 27 146 139 973 40 40 1:10 116 1, 052 26 30 104 9C 640 20 31 lf>2 103 1.196 40 33 ir>8 174 539 25 20 110 134 836 373 368 1,629 1,427 0,633 .a $1,375,386 92 313, 355 34 1, 001, 121 OJ 1,109.915 24 762,234 57 1,212,181 40 1,123,275 59 1, 598, (J3 J ac 554. 599 21 1,281. 183 «8 7')0, 6(>0 42 1.121.576 23 12, 2W, 072 61 Accounts on hnn/1 July 1, 1881 01 Accouuta ou liand Jauo 30. 1882 60 270 PAPERS ACCOMPANYING THE ACOOUNTa OF DISnURSING OFFICERS. I sun ]>leHSOfl to report that, an a rule, tlie aceounts of the disbursing; otiicei's of tlie'Navy liave been i)roniptIy and accurately rendered dur- ing;- the year, sho\vin;j: a clear sense of resjjonsibility, and a laudable l>urpose'to diNcharj>e their inxportant duties with the utmost fidelity. There ha\'<5 been some excepvaous, but it is believed that these are diminishing', and that there is fifi increasing sense of honor and ae(!ount- ability ai>i)arent, which promises well for the future of this branch of the service. The disbursements of the year have been made without loss to the (rovernment so far as fjccounts have been examined in detail, and it is believed thattinal settlements will exhibit this gratifying result. VISITORS TO NAVAL ACADEMY. The act of February 14, 1879, provides that there shall be appointed every year a board of visitors to attend the annual examination at the Naval Atiademy. This board conjusts of twelve members^ seven of them ajtpointed by the President of the United States, two Senators appointed by the Vice-President or I'l'esident i)ro tempore of the Senate, and three Pepresentatives a])point«Hl by the Speaker of the House. The act also provides that each member of this board shall receive uot exceeding eight cents per mile traveled by the most direct route from his residence to Anna]»olis, and eight cents per mile for each mile from said i)lace to his residence on returning. For the expenses of this board of visitors Congress appropriates $2,C00 annually. The manner in which this suni was expended in the hist fiscal year is shown by the following statement: ^JEMS COMPRISING COMMISSARY ACCOUNT WITH BOARD HOUSE. Ca,iTia!;os $106 00 Barbel- 15 00 Expense cards, &.C 4 57 Umbrellas, &c 39 17 Glass (5 52 Flowers 13 76 U. S. Naval storekeeper 25 36 Chiua 205 56 Servauts 208 16 Newspaicrs 4 50 WiDes, Liquors, and Mineral Water 589 16 Cigars. Ice Telegrap.liing Tinware Freight Washing ,, Groceries Meats Fish Vegetables and fruit Ice oream anal cake . , $23 76 6 67 6 23 4 38 12 00 269 97 207 ;).•> 45 47^ 82 10 61 75 252 12 Total 2,169 76 L. G. BILLINGS, Paymaster, U. i.\ N., Commissarji, N. A. The remainder of the appropriation was exhausted in the payment of mileage. 1 respectfully suggest that the approprLUtiou of a gross sum for the i)ayment of expenses of this kind is unwi.se, as tlie above bill abun(hintly show^s; and that it would be better to follow the usual pracii<'e of paying a per diem and mileage and pennii*itingthe members of the board to pay their own expenses, as do nearly all other officers, agents, and employes of the Government. There are comfortable hotels at Auna])olis, and there can be no good reason given why they should be ignored and such public expendij^ures made as the above stateniciit exhibits. THE CIVIL SERVICE. In acknowledging my obligations to the deputy auditor, Mr. B. P. Davis, to the chiefs of divisions, the clerks and employes generally of REPORT OF THE SECRETARY OF THE TREASURY. 271 this office, I am constrained to say a few words concernin;j the civil service here in Washingtoii as it has come under my observation, with some suggestions as to its pei-maneucy and further improvement. It is well known to tliose acquainted with this service l)y practical ex- l)erience, that it is not nearly so bad as it is frequently painted by per- sons who have not had such exi)erience. TJie improvements in the methods of doing business and in the 2^er)iounel of the Departments have been marked during the last twenty years, as many clerks can testify whose service extends over the great<>r part of that time. There has been a survival of the littest. The inefficient and those wanting in good character have been dropped, while the capable, tlie careful, and the upright have been retained. 80 that the service to-day, to say the least, is in a \'ery fair coiulition. There are in tliis bureau, as there are doubtless in every one, clerks who are receiving but moderate salaries whose cajjacity and ex]>erieiu;e, were they available in private business, would conunaud not only much better compensation, but would insure to their owners positions of in- dependence and intluencein anj' community. The services of such em- ployes are very valuable to the Government, and, as long as they re- uuiiu so, they ought to be retained. To secure j^ermanency in this service and to insure its future eflicieucy and still further improvement, two or three simple enactments are suggested : 1. The law at present requires that ''apiwintments in the Treasury Dejiartment shall be so nuinagcd as to be equally distributed between the several States, Territories, and the District of Columbia, according to popidatiou." This princii)le should be ap])lied to all of the Dei)art- ments, thus keeping up the representative idea. 2. As is well laiown, much of the time of the heads of Departments, Senators, and lU'presentatives is now taken up in listeinng to and iH'e- senting the reasons why certain i)ersons should be given places. For days and weeks after President Garfield was inaugurated, the Secreta- ries of the Treasury and Interior were overwhelmed with work of this kind. To obviate this and to make the service equally open to all, let the law provide that a suitable examination — comjx'titive probably the best — under established general rules, shall take i)lace in the State or congressional district where the applicant resides. Commercial col- leges, business men, and literary institutions c(mld easily be found doubtless who woid(l, free of exi)ense to the Gov«'rnnu'nt, furnish the requisite boards for conducting these examinations. Clerical vacan- cies in* the ])eitartmeuts and lU'W positions would then l)e filled ]»y re- (piisitions on States or districts entitled to receive appointments. Tiie home examination should be sufficient to entitle the ai)pli('aut to a ]n'o- bationary api)ointnu'nt for a few months, upon the expiration of which he should receive a permanent one, if proved to be qualified. 3. A lixed tenure of ollice of live or seven years, (with i)ri\ilege of re- appointnu'ut,) during which the appointee could not be removed except for inefliciency or bad conduct. 4. Promotions, other things in the aggregate being fairly eensated by the fees collected in their offices and are allowed to transaers, »S:.c., Siaiu and Turkey.. . 899 45 Salaries of iuterpraters to consulates in China, Japan, and Siarn 11,705 01 Salaries of marshals for consular courts 7,003 77 Expenses for interpreters, guards, tfcc, in Turkish dominions. 3, 150 61 83?, 822 08 Excess of receipts over expenditni'ea 51,018 47 Included in the amount reported for consular salaries are $4,882.55 paid consular officers not citizens, covered by a separate appropriation of $5,000. REPORT OF THK SECRETARY OF THE TREASURY. 273 OONStTLAR FEES. The revised tariff, of fees which took effect in October, 1881, not only changed the character of many fees from official to private, but mate- rially reduced the charges for certain services. The fee for " acknowl- edgments," for example, was cut down from $2.50 and 83 to $1 ; "au- thenticating signatures" from $2 to $1 ; "orders and letters " from $2 to $1, and several shipping certificates from $2 to $1, while "landing certiticates" were fixed at $2.50, uniformly, except on the liio Grande, Mexico. Notwithstanding this vers- considerable decrease, the fees re- ceived are 846,774.19 in excess of those for the year 1881, showing a decided increase in the business transacted. In this connection I desire to call attention to the table (Exhibit I), indicating the sources from which official feei? were derived. The fol- lowing arc the totals given: VESSELS' FEES and CHARGES. Shipping and discliarging crews $16,478 98 Toiinajjo dues 30, 181 94 Bills of health and clearances 25,161 24 Other fees 22,502 55 Extra wages 35, 561 47 $129,906 18 MISCELLAXEO US. Invoices $722,412 91 Otherfees 73,102 93 795,515 84 Total 925,422 02 RECEIPTS AND IIS^VOICES. A law passed in xVugust, 1856 (section 1213 Eevised Statutes, 1878) makes it the duty of owners, agents, consignees, masters, and command- ers of vessels to furnish copies of consular receipts for fees to collectors of ports, who shall forward them, as well as statements of all certified invoices, to the Secretary of the Treasury. During the past year an effort has been made to comply with the provisions of this act, the plain intention of it being to furnish evidence of the correctness of consular returns of official fees and charges. The work which was entirely new to this office, has been [)ro8ecuted under difliculties arising from incom- plete returns and insufficient clerical force ; but it has progressed far enough to indicate that the law, when i)roi)erly complied with, is suffi- cient for the purpose intended. The additional clericjil force allowed this office by the ajipropriation act of August 5, 1882, will enable the work to be done ]»roinptly, the importance of which is too obvious to require further remark. RELIEF OF SEAJNrEN. Thirteen hundred and eighty seamen were relieved during the year at an average cost of about 822.50 each, and seven humlred and four were sent to the United States on certificate payable at the Treasury 18 Ab 274 PAPERS ACCOMPANYING THE at an additional cost ol" $12.50 cacb. The accounts adjusted (Exhibits G and II) present tlie following totals : Board and lodging $11,05') 56 Clothing (3,25:5 88 Passaige jiaid by coiisiila 4,416 96 Passage to tho United States paid at Treasury 8,79'J 00 Other expenses b, 85U 60 $39,985 20 Extra wagos and arrears 51,530 53 Amount refunded 18,149 31 33,381 2-2 Excess of relief over extra wages and arrears 6, 603 93 As extra wages and arrears are devoted to purposes of relief, the actual outlay by the government is thus reduced to less than one-sixth of the entire amount expended. In other words, of the $00,000 appro- priated by Congress for the relief of destitute American seamen, less than $7,000 have been used. Although the relief afforded for 1882 is less than for many years, a^ will be seen by reference to the tabulated statement below, I am of opinion that the sum paid is considerably larger than it need be. Extend- ing relief to seamen who are properly entitled to it is often attended with much difficulty, and it is perhaps not surprising that in some instances consular officers cannot discriminate between the deserving and unde- serving. In a circular letter addressed them by this office in April last, with the approval of the First Comptroller, mention was made of the fact that in several cases the seamen relieved never served upon the vessels reported, and that in one instance no such vessel sailed under the American flag. It was also stated that seamen sent from one consulate to another often received clothing at both places, the second supply being given within a week after the first was received.- Since the reception of this circular greater care seems to have been exercised. In this connection it is proper to add that consuls are often called ujion to relieve unworthy persons whose demands they cannot refuse. A careful study of the returns shows that about ten per centum of those relieved are " deserters," many of whom are little better than tramps, who seize upon every opportunity to desert their vessels and live at the expense of the Government which they disgrace. Yet under exist- ing regulations consular officers find it difficult to avoid aiding them. The precedent seems long to have been established that an American seaman icho is also an American citizen is entitled to relief, except only when actually employed upon a foreign vessel. He may desert and take employment upon a railroad, or conceal himself until his vessel sails, and immediately thereafter return to the consulate and obtain' relief. Several cases of tliis character have been reported during the past year, the relief being given solely for the reason that the seamen were citizens of the United States. It would be a manifest hardship to withhold relief from " deserters", in all cases, for men are frequently driven to desertion by unusual or cruel treatment. But it would clearly be better for all parties in inter- est if consular officers were authorized to relieve this class of seamen only when it is satisfactorily ascertained tli,at the desertion is justifiable regardless of the seaman''s citizenship. The course pursued at present REPORT OF THE SECRETARY OF THE TREASURY. 275 not ouly operates as an incitement to desertion, but compels the consul to grant relief in cases manil'estly undeserving. GROWTH OF CONSULAR BUSIIJOSSS. The following- table not only affords basis for a comparison of con- sular receipts and expenses for the past year with former years, but indicates the rapid growth of consular business since the close of the war. Years. I860 1SC7 ]8»>« 18(j9 1870 1871 lfc7:i 1873 1874 1^75 lH7fi 1877 1878 1879 1880 1881 1882 Fees received. $442, 477 5G 424, 009 17 435, 179 73 459, 722 43 534, 670 79 632, 258 22 706, 907 95 746, 594 89 715, 202 94 697, 988 49 651, 501 20 624, 265 99 635, 914 11 682, 901 18 826, 545 76 843, 066 36 889, 840 55 Salaries. $.150, 382, 373, 383, 460, 484, 483, . 548, 570, 549, 537, 518, 525, 551, 577, 601, 61C, 570 94 010 40 750 89 990 89 964 59 638 63 225 11 597 56 621 23 172 47 456 37 319 41 673 85 504 26 238 25 716 30 193 28 Eeliefof sea- $183, 909 79 151,282 81 107, 536 30 79, 714 89 90, 078 61 71, 064 10 *232, 972 eO 72, 284 42 64, 640 72 54,287 13 73, 616 95 72, 449 12 70, 947 02 68, 250 01 .56,831 52 42, 510 67 39, 985 20 Contingent cspeusea. $114, 90, W, 116, 124, 131, 119, 110, 113, 127, 104, 133, 225 11 626 21 935 46 273 41 067 94 735 :!5 988 73 490 86 979 25 059 30 866 79 470 86 Allowiinco for clerks. $32, 162 41 34,193 60 30, 518 90 39, 036 67 41, 525 81 54,261 15 54, 098 63 •Inclnsive of $157,472.60 expended on account of the destraction by ice of the whaling fleet in the Arctic Ocean. OTHER EXPENSES OF THE FOREIGN SERVICE. Other accounts pertaining to the foreign service have been adjusted as follows : Relief of claimants for destruction of private armed brig G«neral Arm- strong, act of April 20, 18d2 $39,886 31 Compensation and expenses of commission to China, 1860 and 1881 .,.. 36, 807 15 Tribunal of arbitration at Geneva 400 80 Joint commission for settlement of claims between the United States and the French Republic 65,625 31 International Bimetallic Commission 52,515 11 Salary and expenses of United States American and British Claims Commi.s- sion for 1872 5, 462 76 Salary and expenses of United States American and British Claims Com- mi.ssion for lo73 12, 920 00 Salary and expenses of United States American and British Claims Com- mission for 1874 5, 381 61 Briuffiny home criminals, for 1S81 TjGI 06 Brinp;iug home criminals, for 1882 H3S 12 International Bureau of Weifjlits and Measures, 1876, 1877, 1878, 1879 14,061 10 International Bureau of Weif^hts and Measures for 1880 2,938 23 International Bureau of Weijihts and Measures for 18-'2 4, 4% 51 International Exhibition at Sidney and Melbourne for 1879 and 1880 26, 19J 95 Berlin Fishery Exhibition 8,741 53 Biii1dinn;s and fj;rounds for legation in China, 1876 2,000 00 Buildings and grounds for legation in Cliiua, lf^77 3,1100 00 Buildings and grounds for legation in Chiua, 1878 3, 000 00 Buildings and grounds for legation in China, 1879 3,000 00 Buildings and grou^ls for legation in China, 18H0 3,000 00 Buildings and grounds for legation in China, 18HI .'!. (KIO 00 Buihlings and grounds for h-gaticui in China, l8.'-'2 3,000 00 International Exposition at Paris tor 1^78 159,677 07 Rescuing Hhii»\vreck<'d American seamen, 1882 1:J0 18 Expenses of Cape Spaitel and Tangier light, 1882 285 00 276 PAPERS ACCOMPANYING THE Shipping aiuldiHcharging HCiitncn, for 1882 $4,169 60 Allowjinee to widows or heirs of 0"-iB 52 SiibHistence 25,008 86 Other expeuKes 2, 554 87 Tnuisportation over Pacific railroads ^' ^l9 '^ Stationeiy 1.1''^ 9-^ Stamps, paper, and dies. . Biirean of Engraving and Printing 418, 413 74 S. D. Warrwi &. Co (50,170 32 Treasiuv Department ti,*.').'>,S(H.57. 15y tlie last report the iSei-retary of the Treasury had on deposit to liis credit on account of " lines, pemdties, and forfeitures," a balance of $G2,9<)8.5o. l)urin<,^the year deposits have been made to the amount of $235,954.08, and disbursements made to the amount of .*M5,014.G9, leaving a balamce to his credit January 1, 18S2, of §15.),S47.94. An account has also been r»Midered by him on account of " offers in com])romise" (si)ecial-dei)osit account ^o. 5) from January 1 to Deccm- bor .'U, 1881, as follows: Balance per last report s?38,873.G7j amount de- 278 PAPERS ACCOMPANYING THE posited {Inriiip: tlio year, $200,900.78; amount disbursed $170,041.10, Teaviu.^' a balance oil deposit to his credit January 1, 1882, of $75,733.35. This aecount remains unadjusted. The Ibllowinft- sums were refunded: Taxes erroneously assessed and collected, 880,311.50; drawbacks on merchandise exported, $43,001.49; and moneys refunded under private act of Congress, $7,211.77. The disbursements by George Waterhouse, chairman of the South Carolina Free School Eund Commissioners, amounted to $1,490, A. judgment of $18,711.11, rendered by the Court of Claims to reim- burse disbursing clerk for moneys deposited in IMerchants' National Bank, Washujgton, D. C, April 27, 1800, has also been adjusted. DISBURSING clerks' ACCOUNTS. Accounts rendered by Col. E. 0. Morgan, disbursing clerk of the State Department, have been adjusted as follows: Expenses under tlie neutrality act, 1881 $3,100 00 Expenses under tlie neutrality act, 1882 40 50 International Exliibitiou at Paris, 1878 , 118 50 Rescuing shipwrecked American seamen, 1880 50 00 Rescuing shipwrecked American seamen, 1881 295 47 Rescuing sbiinvrecked American seamen, 1882 1,708 93 Contingent expenses of foreign missions, 1880 2, G15 05 Contingent expenses of foreign missions, 1831 7 108 20 Contingent expenses of foreign missions, 1882 20, 425 43 Bringing home criminals, 1879 ' 32 00 Bringing home criminals, 1882 450 00 Contingent expenses of United States consulates, 1881 19,767 57 Contingent expenses of United States consulates, 1882 47,685 50 International Exhibition at Sydney and Melbourne, 1879 and 1880 20 00 Publicatiouof consular and otlier commercial reports, 1882 9,331 17 Publication of consular and other comineroial reports, 1881 3,799 96 Editing, publishing, and distributing Revised and Annual Statutes, 1882.. 3,919 67 Editing, publishing, and distributing Revised and Annual Statutes, 1881.- 145 71 Books and maps, 1832 1,949 32 Books and maps, 1881 176 96 Books and maps, 1879 105 45 Proof-reading and packing laws, 1882 1,257 00 Lithographing, 1882 842 65 Stationery ami furniture, 1882 3, 824 15 Stationery and furniture, 1881 952 62 Expenses of International Sanitar j" Congress 3, 521 95 Observance of the centennial anniversary of the surrender of Lord Corn- wallis at Yorktowu, Va 19,814 76 Monument to mark the birthplace of George Washington 1, 500 00 That the above exhibit might be complete, it was necessary to include the folloAving accounts already given in aggregating the expenses of the diplomatic and consular service : Contingent expenses of consulates, 1882 $47, 685 50 Contingent expenses of foreign mission, 1882 20, 425 43 Accounts rendered by Mr. Eichard Joseph, disbursing clerk of the Department of the Interior, have been adjusted, as follows : Contingent expenses, ofllce of Commissioner of Patents, 1882 $9,740 98 Contingent expenses, office of Commissioner of Patents, 1881 4^ 475 13 Photolitliographiug, office of Commissioner of Patents, 1882- .55,507 42 Photolithographing, othce of Commissioner of Patents, 1881 11,389 41 Copies of drawings, office of Couuuissioner of Patents, 1882 39,165 37 Copies of drawings, office of Commissioner of Patents, 1881 13, 127 10 Plates for Patent Office Offi.^a I Gazette, 1882 22,9i!0 50 Plates for Patent Otlice Oliiciul Gazette, 1381 5,226 65 REPORT OF THE SECRETARY OF THE TREASURY. 279 Expenses for packing and distributing ofTicial documents, IBt*^ $1,491 21 Expenses for packing and distributing otlicial documents, Irt^il 3, Til 4(i Expenses for packing and distributing ollicial documents, Id:^ 152 55 jScieutilic library, otiice of Commissioner of Patents, l!:^"'2 1,717 69 Scientific library, ottice of Commissioner of Patents, l>^ai , 3,922 09 Preservation of collections, Smithscmian Institution, 18&2 28,117 81 Preservation of collections, Smithsonian Institution, Iddl 20,491 12 Preservation of collections, Smithsouiau Inslitutiou (Armory Building), 1HS2 ., 2,480 % Preservation of collections, Smithsouiau Institutiou (Armory Bnilding), 1881 614 l.'> Furniture and lixtures. National Museum, 1882 34,380 94 Furniture and fixtures, National Museum, 1881 28,598 98 International exohanges, Smithsonian Institution, 1882 3,000 00 Classified abridgments of letters patent 8, 4ii8 15 Publishing the Biennial Register 1,947 35 Expenses of the Tenth Census 975,471 23 Expenses of the Tenth Census, printing and engraving, 1882 88, 348 60 Other accounts rendered by several disbursing agents of the Census Office liave been adjusted, as follows: Expenses of the Tenth Census $23,200 32 Expenses of the Eighth Census ItiO 07 Miscellaneous : John S. Williams, for extra services in compiling the Biennial Register for 1879 200 00 Accounts rendered by Col. J. O. P. Burnside, disbursinij cleric of tbe Post-Oflice Department, have been adinst«'(l, as follows: Publication of Official Postal Guide, 1882 §23,000 00 Publication of Official Postal Guide, 1881 3,tKJ2 31 Stationery, 1882 8,998 61 Stationery, 1881 1,774 81 Carpets, 1882 4,951 8<") Gas, 1882 4,856 41 Furniture, 1882 5,999 76 Hardware, 1882 1,391 45 Hardware, Idal 7:W 73 Fuel, 1882 4,338 30 Fuel, 1881 1,070 56 Painting, 18i^2 3, 999 84 plumbing and gas-lixtnres, 1882 3,999 50 Keeping hoi-ses and n-jjair of wagons and harness, 1882 1, 197 0l>,-i;51,700.(;i, uliicli of itself indicates tlie character of the business transacted as well as the large amounts involved in its settlejuent. During the year 0,(»0<) accounts were adjusted, 230,797 vouchers examined, .■-!,717 letters written, 8,115 reports recorded and copied, 2r),7{)0 coupon-books counted, and 25,8G7 books sdieduled. An examination of the accompanying tables, letteretl from A to X and to which freciuent reference has been made, will fur- ther convey ,som«; idea of the work ])erfbrmed by the clerks of this ofhce, whose indiistry and ethcien(\v I take this o])portunity of commending. 1 have the honor to be, verv iesi)ectrullv, vour obe«lient servant, D. 8. ALEXANDER, Auditor. Hon. Charles J. Fotjoer, Sea'etary of the Tnasvry. 280 PAPERS ACCOMPANYING THE REPOKT Ol"^ THE SIXTH AUDITOK OF THE TREASURY. Office of Tim Auditor of the Treasury For the Post-Office Department, Washington, U. C, November C, 1882. Sir: 1 have the honor .to submit the report of the business opera- tions of this office for the fiscal year ended June 30, 1882. My annual report to the Postm'Uster-Geiieral exhibits in detail the financial trausa€tions of the Post Office Department during- the last fiscal year. ******* The increase in the business of this office diirinj,^ the past year has been very great, not only by the addition of new post-offices, but by the growth in the business of those already existing, and in both the postal and money order branches. There has also been a great increase in the number of new mail-routes, and of changes in old routes, owing to our extended railroad system. This rapid growth and increase of busi- ness has brought with it augmented revenues, which has not only made the post-office system self-sustaining, but has carried more than a mill- ion and a half dollars into the Treasury the past year, instead of taking millions out, as heretofore. The present year will greatly swell this net " surplus to be carried into the Treasury. This increase of business, with the added work from the removals and change of quarters during the year has kept the office short-handed, notwithstanding the addition to the clerical force last year^ and the faithful and diligent labors of the clerks, a large portion of whom have worked more than the established office hours to keep up their work, and more than justifies the required increase of force for the coming year. In closing this report, I desire to call your attention to the tenure by which the Sixth Auditor's Office occupies rooms in the post-office build- ing, and the building rented for money-order business. Since the erec- tion of the Post-Office Building it has been jointly occupied by the Post- Office Department and the Sixth Auditor's Office ; and no law, so far as I am aware, gives control of the building to either party. When Congress was asked, in 1863, to put the control of the building in the hands of the Postmaster-General, it refused or neglected to do so. The question of control now arises from the incapacity of the building to afford room for the ti^nsaction of post-office business and the auditing of post-office accounts. The number of employes occupying these build- ings is in the proportion of six and a third to the Treasury Department, and ten to the Post-Office Department. When the money-order busi- ness was removed from the Post-Ofifice Building, by order of the Post- master-General, to the new quarters rented for its use, twelve rooms on the first floor of the Post-Office Building, which were still occupied by Treasury clerks (as they had been for twenty or more years), were de- sired by the Post-Office Department, and the Sixth Auditor was ordered by the Postmaster-General to vacate these rooms and go to others upon the third floor. He protested against the removal on account of the great inconvenience it would occasion for the transaction of the busi- ness of his office, and besides suggested the inequitable assignment which had been made, and the absence of any law which authorized one Department of the Government to remove at its pleasure the em- ployes of another Department from quarters which had been occupied by them from the erection of the Post-Office Building, or changed by joint consent, all of which was unheeded. REPORT OF THE SECRETARY OF THE TREASURY. 281 It is mauilestly riglit -and proper that the Post-Office Department Khould have all the room Mhich it needs for the perfornmnce of its busi- ness and the fall custody and control of it ; and it has no more than it needs. It is also equally right and proper if a bureau of the Treasury Department is to occupy a part of the Post-Ottice Building- that it should have some rights to the space occupied, and not be subject to removal at the jjleasure of another I)ei)artmeut, or dependent upon it for its sup- plies and repairs. The employes of the Treasury Department still re- maining in the Post-Ollice liuilding are two-iifths as many as are em- ployed by the Post-Office Dci)artment. In the new Upiidiug rented for money-order business nearly three-fourths of the employes belong to the Treasury Department, yet it is claimed that they are dependent upon the Post-Office Department for their quarters, sui)j)lies, and repairs. For these reasons I suggest that the tenure by which this bureau of the Treasury Department holds its quarters be established by law. I am, sir, verv respectfully, J. H. ELA, Auditor, Hon. C. J. FOLGEE, Secretary of the Treasury. REPOET OF THE TREASURER OF THE UNITED STATES. Treasury of the United States, Washington, D. C, NovemJjer 1, 1882. Sir: I have the honor to submit a report showing the operations of the Treasurv of the United States for the fiscal year 1882, and its con- dition on June 30, 1882. SU:\UVIARY OF OPERATIONS. The receipts of the government show an increase over those of 1881 of $22,251,054.23 in the revenue from customs; 811,233,209.94 from in- ternal revenue; 82,551,277.20 from sales of public lands, and $6,707,- 410.34 from miscellaneous sources, making a total increase in the net revenue of $42,742,957.71. The total net revenue was 8403,525,250.28. The net expenditures decreased from 8200,712,887.59 to $257,981,440.20, a reduction of 82,731,447.39, which, added to the increase in rectipts, makes an increase of 845,474,405.10 in the surplus revenues applicable to the reduction of the ])ublic debt. The exi)enditures on account of interest on the public debt show a reduction of $11,431,534.39, from $82,508,741.18, in 1881, to 871,077,200.79, in 1882. The excess of rev- enues over ex])enditnres was 8145,543,810.08, and the amount applied to the reduction of the debt $10(1,281,505.55. Tiie amount standing on the books of the Treasury to the credit of disbursing officers of the United States at the close of the fiscal year was $30,007,872.48. The receii)ts for the fiscal year on account of the Poat-Oflice Depart- ment were $41,308,002.30, and the ex])enditures 839,205,299.43. Of these amounts $20,211,991.78, or about one-half, was received and expended directly by ])ostmasters, without being deposited in the Treasury. The unavadable funds of the Treasury decreased from 829,521, <»;32,72 to $29,517,275.32 by reason of the collection of $4,357.40 of the 88,750.31 heretofore reported as unavailable in the sub-ti"easiirv in New York on '282 PAPERS ACCOMPANYING THE accomit of coniitcrroit 7.30 notes redeemed in 18G7. Tlie unavailable funds of tlie PostOnice Deparlnienfc remain uiicliani^ed at $40,078.00. The amount eollected fi-om national l)ajdis f)n account of nemi -annual duty a(',(',r(iiii.j;' on their ca[)ital, (lirculation, and deposits durinj]^ the year was $i>,ir)0,(>84.35. The total amount collected on this account since the bej;inninji^ of the national bankinfij system is $1.18,005,700.25. There were in the custody of this otHce at the close of the tiscal year $.'}70,Oi7,700in United States bonds held in trust for national banks, of which $;iOO,71il2,700 were held as security for circulation and $15,925,000 to secure de])osits of public money Avith national-bank: depositaries. During- the year $129,474,400 in bonds were deposited for these pur- poses and $128,028,100 withdrawn. The amount of United States currency outstanding' at the close of the year was $362,404,582.10. There was redeemed during the year $105,773,700.05 in United States cuiTcucy, silver certihcates, and notes of failed, liquidating, and reducing national banks, making the total redemptions since the first issue of currency $2,405,914,779.41. The issues of silver certificates during the year %vere $24,300,000 and the redemptions $20,133,290, leaving the amount nominally outstanding at the close of the j^ear $60,090,710. There were paid during the j^ear at the various offices of the Treasury and forwarded to the Treasurer's office for examination coupons from United States bonds amounting to $11,088,609.02, and there were issued by the Treasurer 321,623 checks on the Treasurer and assistant treas- urers of the United States, amounting to $57,547,821.20, in payment of interest on registered bonds. There were also issued 32,550 drafts on warrants of the Secretary of the Treasury, 38,853 drafts on warrants of the Postmaster-General, and 49,089 transfer checks on assistant treasurers, making a total of 442,115 drafts and checks issued from this office during the year. United States bonds were redeemed during the year to the amount of $166,204,450, of which $60,079,100 was applied to the sinking fund. The total amount of bonds retired by purchase, redemption, conversion, or exchange from March 11, 1869, to June 30, 1882, is $2,149,549,250. National-bank notes amounting to $76,089,327 were redeemed during the year, making the total redemptions of these notes, uuder^he act of June 20, 1874, $1,175,735,322. THE STATE OF THE TREASTJE.Y. The following statement shows the condition of the Treasury at the close of September in each of the last four years : September 30, 1S79. September 30, 1880. Gold Coin $133, Gold Bulliou i 3t), Staudaril Silver Dollars Practioiial Silver Coin Silver Uiillion Gold Certiticatis ., Silver Uprtilieutes United States Xotes NatioiKiMiank Xutes Nationair.auk Cold-Notes Fractioual Ciirniicy Deposits hold by Xational-Bauk De- positaries IMLuor Coin .., 530, '290, 8Ufi, 873, 299, 70, 131, 7te, 'J79, I8:t, 9(1, ,830, .024, 700 39 810 90 774 00 898 47 124 25 700 00 130 00 728 01 958 76 (i40 00 978 15 81C 48 700 57 $08, 808, 091 094 744 892 392 600 579 594 404 125 ri2 784,'; 723, ( 154,; 31, 092,: 901, i 288, 220,: CO," $77. 97, Go, 20, 11,212,315 94 1, 063, CC5 22 338, 083 71 45.3, 477 70 949, 279 00 343, 477 17 622, 676 18 10, 100 00 309,470 00 422, 169 89 457, 713 59 98, .545 00 22,973 03 12, 677, 454 48 55k.', 585 06 $102, 212. 334 49 50, fc:}5, 029 63 92, 025, 350 00 27, 429, 246 56 3,641,589 37 8, 243, 830 00 32, 918, 255 77 6, 810, 338 08 480 00 8, 459 52 12, 848. 870 74 504, 515 29 REPORT OF THE SECRETARY OF THE TREASURY. 283 Kew York and San Fraucinco Ex- change One and Two Tear Xotes, &c Kfdei-nnd Ceititii-alcs of Deposit (Act of Juno 8, 1872) Quai-tirly Interest Checks and Coin Coupons ))aid Refiiitiered and Unclaimed Interest paid "Duited States Bonds and Interest ... Interest on District of Columbia Bonds Refunding Certificates and Interest.. Paciflc Kiiilroa82. , 300, 000 00 1, 127 .52 240, 000 00 16C, 361 31 2,610 00 ,527,2:M 51 2,002 83 138.841 00 695, 910 77 303, 485, 995 07 267, 670, Ol'i 40 | 331, 981, 210 11 316, 552, 990 39 $2, 167, 991 50 I $2, 600, 489 16 26, 007, 876 95 j 22, 189, 236 49 12, 939, 889 75 642, 314 33 15, 082, 482 99 219, 940 00 4,213 15 152, 664 10 101, 514 75 6, 270 00 298, 435 54 7, 632, 333 98 4, 189, 523 27 Sl.O.T!, 519 65 K4U, (108 41 14, 910, HdO 00 4, 571, 850 00 19, 746, 955 25 C16, 560 21 15, 428, 010 82 475, 965 00 3, 075 60 74, 081 75 99, 585 00 8, 400 00 366, 532 59 4, 216, 845 94 2 401, 809 92 $3, 617, 7.03 79 21, 916, 110 81 31, 152, 713 60 399, 835 68 15, 7C8, 662 75 394, 847 00 7, 176 11 75, 320 70 5, 959, 436 43 816, 585 07 7,511,700 00 18, 521, 960 00 31, 335, 000 00 I 9, 975, 000 00 151,348,000 70 I l.".«, 004, 083 17 4, 930 00 253, 795 34 5,475,492 11 2,151,139 93 3, 004, 205 94 17,8:12,841 34 796,488 28 5, 248, 920 00 64, 149, 910 00 8, 305, 000 00 151,336,110 73 ^0, 157, 625 .54 J7, 756, 493 83 38, 507, 029 10 867, 276 57 15, 085, 182 67 344, 729 00 4,118 05 03, 910 45 6, 080 00 244, 671 50 8, 337, 984 52 1, 537, 684 01 793. 690 50 14,887.218 49 793. 740 37 4, 907 440 00 71, 509, 210 1)0 10. 725. 000 00 143. 904. 8tf3 79 303, 485, 995 07 207, CTG, 912 40 331, 981, 210 U j 340, 552. 9ao 39 The most iiotowortby cliaiig'e in the hist year is tlie decre.ise of tbo gold coin and bullion, held by the Treiisury, liom $17G,791,r>t;{;.41 to $153,047,904.12, and the increase of the standard silver dollars from $G5,949,27<) to $92,025,350; a decrease in the gold of $23,743,002.29, and an increase in the silver dollars of $2(5,070,071. Deducting the amount held f(tr the retion of gohl certilicates, the gold belonging to the government in 1 he 'J'lVHHury on the 30th of Sei>tember was $154,987,371.29 in 1879; $128,100,0S5.77 in 1880: $109,.552,740.41 in 1881, and $148,- 140,524.12 in 1882. 2^'ot\vithslanding the dcerea.se iu the last year, the gold owned by the government is in'arly $20,000,000 more than two years ago, the amount held la.'^t year having been swelled by the deposit of gold coin for e.xchange on the West and South. Deducting in like manner the silver certificates actually outstanding, the standard silver dollars owned by the government were $30,360,054 284 PAPERS ACCOMPANYING THE oil S(']»teinbe.r;50, 1879; $35,355,303 on the same date in 1880; $13,108,831) in 188], and $28,090,070 in 1882. Tlic fund for the redemption of notes of national banks wliieh have fiiilod, <;one into voluntary liquidation, or made deposits of lawful nioncv for the reduction of their eireulation, increased during the year frojii '$31,152^713.00 to $38,507,029.10; the silver cei'tificates Jictually outstanding", after di^ducting the amount held by the Treasury, from $52,840,440 to $03,325,380; the United States notes on hand, from $28,422,170 to $32,918,250, and the fractional silver coin held, from $20,343,477.17 to $27,429,240.50. The aggregate amount of gold and silver coin and bullion held by the Treasury increased from $209,700,- 998.70 in 1881 to $270,144,150.05 in 1882. The amount now held is $53,330,782.04 greater than that held in 1879, and $01,840,934.07 greater than in 1880. The gross assets of the Treasury increased during the year from $331,981,210.11 to $340,552,990.39, although the balance re- maining after deducting the moneys held for the redemption of gold, silver and currency certificates, and for the payment of matured debt and interest, and the amount to the credit of special or trust funds, ran down from $151,330,110.73 to $143,904,893.79. THE RESERVE. The following statement shows the excess of the cash assets of the government over its net demand liabilities on the first day of No- vember: ASSETS. Gold Coin $108,888,963 44 GoldBullion 50,916,780 10 Standard Silver Dollars 92,414,977 00 Fractional Silver Coin 26,749,432 45 Silver Bullidn 4,012,503 27 Deposits with National Bank Depositaries 8,738,523 16 United States Notes 29.689,196 17 National Bank Notes 6,370,051 58 Total assets $327,780,427 17 LIABILITIES. Old Debt $792,012 27 Called Bonds matni-ed, and interest 9,661,510 16 Matured Bonds and interest 786, 524 00 Interest due and not paid t 5,255, 170 24 Gold Certificates outstanding 11,370,270 00 Silver Certificates outstanding 65, 620, 450 00 Certificates of Deposit (Act of June 8, 1872), out- standing , 9,835,000 00 Disbursing Officers' Balances and various small accounts 24,203,117 05 Outstanding Drafts and Checks 5, 635, 232 31 Five per cent. Fund for Redemption of National Bank Notes 14,471,298 01 Fund for Redemption of Notes of National Banks failed, in liquidation, and reducing circulation ... 38, 169,253 10 Post-Olfice Department Account 6, 823, 901 04 Total Liabilities 192,628,738 18 Reserve — Excess of Assets 135, 151,688 99 The above liabilities are the net liabilities after deducting the re- deemed or unissued obligations of the various classes held by the Treasury. The reserve is computed by deducting fi-om the cash in the Treasury the aggregate of the current liabilities other than United States notes. The remainder of $135,151,088.99 is considered to be the reserve avail- REPORT OF THE SECRETARY OF THE TREASURY. 285 able for the ledeiiiplioii of United States notes. In other words, if all of the liabilities of the governiuent payable on demand should be at once discharged, if the entire amount advanced from the Treasury and placed to the credit of disbursing ollicers of the government should be dniM'u out, if the funds deposited for the redemption of national bank notes should be immediately called for, and if that portion of the iinblic funds held for the Post Oflice I)e])artment should be set aside, there would still remain $135,151,088.90 in cash to meet any demand for the redemp- tion of United States notes. The reserve has ai)[)arently run down $11,291,802.78 since October 1, 1881. This reduction is accounted for by the fact that by diiectiou of the Secretary payment has been antici- pated on $12,003,714.72 in called bonds, not j'et matured. The following statement shows the percentage of reserve when com- puted on tJiis plan, and what the percentage would be if suflicient funds were set aside for the payment in full of the gold, silver, and currency certificates, and the remainder of the cash were considered as aj>ro raia reserve against all of the other demand liabilities of the government: Month. 1881. November. Deceinbor . 1882. Jaunarv FoViniary Maicli Aj)ril Miiy Jiiiit* .luty August Sopteniher .. October Jioveiiiber. .. Averajic for forty-seven niouthH Current liabili- Cmrent liabili- tieH exclmliu; rnittci States notes and coin and currency certilicates. ties e.vcludiug Cash lesslamount §^' eertiticatesaiid including Uni- ted States note.s, viz: $346,681,016. of coin and cur- rency certifi- cates. $06, 016, 066 43 $442, 697, 082 43 $236, 823. 801 82 94, r,iS, 346 40 ; 441, 419, 362 40 j 2-tl, 230, 90d 55 90, 284, 94, OSl, 94, 999, 9(1, UJ2, 95, 034, ins, .'■luD, 124, 45:!, i':'«,2o;!, 111,4a IK, 253. 105,803, 466 33 460 46 102 39 541 72 460 98 .527 05 31 a 38 031 56 140 42 484 -^2 018 18 44.5, 96,5, 440, 762, 441,fi.';o, 442, 873, 441, 715, 455,231, 471,131, 472,944, 458, 166, 4(i2. 934, 452, 484, 482 33 47fi 46 118 39 557 72 485 98 543 65 335 2» 047 56 1.56 4J .500 22 034 18 05, 026, 093 46 441, 708, 000 46 $235, 233, 24ti, 242, 235, 24(), 242, 24'!, 249, :::4.5, 240, 686, 783 59 937, 107 01 766, 777 48 221,436 12 9hH, 103 85 ,546, 604 93 S-3,241 13 469, 274 17 7^3, 865 65 352, 888 80 954,707 17 it If m c i; .2 a a 40.6 42.2 39.3 40.3 43.8 42.1 40.7 39.8 34.3 .34.7 39. 9 37. 2 39.0 sa 230, 358, 016 54 30.0 .53.5 54.6 53. 1 55.9 54.7 53.4 54.1 51. 5 .52.1 54.5 53.0 53.3 On the first as.'^umpt.ion tlie reserve for the redemption of United States notes has ranged during the last thirteen nu)ntlis from 34.2 to 4.3.8 per cent., and the monthly average since the resumjitiou of specie payments has been 39 percent. On the second assumption the nitio of the n'.serve to the liabilities has varied 4 43 25,178,708 31 13. 837, 976 26 19, 050, .552 5Q 21.16.5,419 54 18, 506, 781 55 18.361,163 11 18, 627, 904 24 249, 703, 608 85 The assistant treasurer received from the clearing-house checks for payment amounting to $383,000,211.13 and 82,11*0,070.00 in cash in pay- ment of balances in his favor, and sent to the clearing-house checks for payment amcmnting to $135,482,070.27 and $2-10,703, ()0.S.85 in cash in payment of balances against him, making the aggregate transactions on each side $385,180,288.12. STANDARD SILVER DOLLARS. The amount of standard silver dollars coined from February 28, 1S78, the date of the act requiring their coinage, to Octol)er 31, 1SS2, is $128,329,S80,ofwhich$03,000,382remains in the Treasury and$35,323,408, 288 PAPERS ACCOMPANYING THE or about 27^ percent., is in circulation. The proportion of the total coiii- a^*c iu circulation ou September 30, 1881, was neaily 33 i)er cent. Of the $30,007,175 coined during? the last thirteen months, §2,950,072 has gone into circulation and $27,057,103 remains in the Treasury. During' seven months of that period tlie dollars returned to the Treasury exceede«l in amount those issued, the number in circulation running down from 34,050,123 on December 31, 1881, to 31,500,755 on July 31, 1.S82. The following table gives the amount of silver dollars coined, on hand, distributed, and outstanding to September 30 iu each year since the coinage was resumed : Year. Annual coin- age. Total coin- *ige. On liand at cloaoofyear. Not distribu- tion (furing year. Outstanding at clone of year. March to September 30, 1878. .. To September 30, 1879 To September 30, 18S0 To Sei)U>ml)er 30, 1881 To Septciliber 30, 1882 $16, 212, 500 26, 421, 600 27, 934, 650 27, 753, 955 27, 707, 175 $16, 212, .500 42, 634, 100 70, 568, 7.50 98, 322, 705 126, «29, 880 $12, 155, 205 31,806,774 47, 784, 744 65, 949, 279 92, 468, 038 $4, 057, 295 6, 770, 031 11, 956, GHO 9, 589, 420 1, 188, 416 $4, 057, 295 10, 827, 320 22, 784, DOG 32,373,426 33, 561, 842 The coinage and distribution of silver dollars during each of the last thirteen months are shown below : Month. Coined to the On hand at Xetdistribu- Outstandinfr end of the close of tion duriug at close of month. month. month. mouth. 1881. Oetober November December 1882 Junuarv February IM.'irch April May .June July August September October $2,350,000 2, 30(1, (HiO 2, 408, 275 2, 300, 000 2, 300, 200 2, 300, 500 2, 300, 000 2, 262, 000 2:301,100 2, 160, 000 2, 425, 000 2, 300, 100 2, 300, 000 $100, 672, 705 102. 972, 705 105, 3ti0, 980 107, 680, 980 109, 981, 180 112, 281, 880 114, 581, 680 116, 843i 680 119, 144, 780 121, 304, 780 123, 729, 780 126, 029, 880 128, 329, 880 $67, 299, 481 68,620,414 1 70,430,857 t 73, G.>4 417 $999, 798 979, (167 597, 832 427, 995 1, 573, 092 1, 761, 656 $33, 373, 224 34, 332, 291 34, 950, 123 326 763 860 926 -110 598 755 750 842 498 SILVER CERTIFICATES. The amount of silver certificates outstanding increased during the fiscal year from $51,10(;,.530 to .*<3(5,(»0(],710. This increase wiis entirely in certificates of the denominations of ten and twenty dollars. The amount nominally outstanding at this date is $73,007,710, of which $7,087,2(50 is held by the Treasury. The departmental circular of Sep- tember 18, 1880, authorizing exchange payable in these certiticates at the sub-treasuries in the West and §outhto be fuiiii.shed for deposits of gold coin with I lie assistant treasurer iu Xew York, under which large amounts of silver certificates were put iu circulatiun, was modified fu ^November, 1881, by reducing the amount which might be deposited on this accoimt to $25,000 a day, and was finally' rescinded October 15, 1882 REPORT OF THi: SECRETARY OF THE TREASURY. 289 The issues and redemptions of silver certificates of each denominatiou iOI), 000 i .1, I4it, (l(t(» : 1, 640, 500 ; 71X1, (MM) j 4, ;!.■», ooo 1 3,480,000] 1,120, 000 11, 0;iO, 000 $3, 301, mo 2,241,800 ;">■*.", O.'.O SdH, 6U0 Oil'. 000 1,718,000 $3, Rr,., 760 7'JC. 4.'^^0 1 1,119,300 I 2, i;i.'>, 500 j y, 13.*. 000 I $29, 245, 720 24, 060, 240 3, 2*>o, 55(i 4, 020, 700 1,734,500 2. 8.VJ. 000 51, 166, 530 I 24, 300, 000 I 80, 230, 000 ' 9, Mi). 820 I 20, 133, 290 I 66, 096, 710 GOLD CERTIFICATES. Of the old issue of <:fold certificates uudev the act of March o, 18G3, there were redeemed during the fiscal year 8745,800, making the total redemptions 8970,007,700.40, and reducing the amount outcitauding to $5,037,120. Of the issue authorized by the act of July 12, 1882, $138,000,000 have been printed for issue by the ixssistant treasurer of the United States in New York. Of these tiiere have been issued to October 31, .S21, 700,000, of which $14,827,720 are held in the cash of the various sub-treasuries, leaving the amount actually outstanding $0,1H)2,280. There is in prep- aration a separate series of certificates known as the "Washington issue," to be issued through this office for the use of the assistant ti'eas- iirers in other cities than JSTew York. CLEARING-HOUSE CERTIFICATES. During the fi^Ki-al year $16,910,000 in. clearing-houvse certificates was issued and $15,105,000 redeemed, leaving the amount outstanding $13,360,000 as compared witli $11,615,000 "outstanding at the close of the last fiscal year. The amount now actually oustanding is $0,835,000. The following table shows the total amount issued and redeemed, and the amount outstanding at the close of each fiscal vear from 1873 to 1882: Fiscal year. GutRtandingaq Total amount 1 Total amoimt | shown by the issued. ! I'cdecined. i Treasurer'.i books. 1873 $.'>7, 1874 i 137, mr> I 219, 1876 1 .■I(ll, 1877 -MX. 1878 1 4fi4, 1879 ' .'..Vl, 1880 1 601, 1881 r,v>. 1882 1 629, I 240. 000 $25, oo.i, 000 78, 0(10, 000 irA), 40(1, 000 208, 2K.'i, 000 321, og:., ooo 418 730, 00(f r,^2^, in:<, 000 .'".88, N.V), 000 (101, 760, 000 616 , 430, 000 , 915, 000 , 955, 000 , 260, 000 , 305, 000 , 720, 000 , 400, 000 ,060,000 , 235, 000 , 400, 000 $31,810,000 58, 990, 000 69, 04.S, 00<) 33, 140, 000 53, 980, OOO 46, 24.''., 000 29, 330, OOD 13, IL'.-., 000 11, HI,''., 0011 13, 360, 000 The highest amount outstanding at the close of any fiscal year was $59,045,«.00, on June 30, 1875. The use of these certificates has greatly declined since the resumption of specie jiayments. 19 Ab 290 PAFEKS ACCOMPANYING THE FRACTIONAL SILVER AND MINOR COIN. Dnrinft- tlio iisc.il year 4,150 iJiickages containing .S3,367,7oJ.18 in fractional silver coin were forwarded from this office, at the expen.se of the f^overnnient for express charges, in return for currency redeemed or for deposits of lawful money in the Treasury. Under the a])propnation of $25,01)0 made by the act of August 7, 1882, for the recoinage of uucurrent silver coins in the Treasury, $383,273.00 in uncurrent silver three-cent and five-cent pieces, $5,708.15 in foreign silver coins, and $021 in standard silver dollars were recoined into $303,821.31: in dimes, at a net loss of $25,871.77. The excess of the loss over the $25,000 ap])ropriated was borne fi'om the appropria- tion for the recoinage of gold and silver coins. The denominations of the minor coin in the Treasury on September 30, 1882, were as follows : Five-contiiickol $71,200 45 Three-cent nickel 15.t. 'M6 B'-i Two-cent bronze - 4,K{4 52 One-cent bronze, nickel, and copper VJ'2, l.'i'J 14 Mixed 8U, 944 :j5 504, 515 29 The supply of five-cent nickel coins in the Treasury, which three years ago reached the sum of $1,181:,252.05, was exhausted during the year and their coinaae was resumed by the Mint. ]S^one of these coins are supplied by the Treasury, but the one-cent and five-cent i)ieces are furnished in miiltiples of $20 by the Mint, which bears the expense of their transportation. Included' in the amount on hand is a considerable quantity of coins of the various denominations unfit for circulation, for the recoinage of which an appropriation of $1,000 has been made. , FRACTIONAL CURRENCY. The amount of fractional currency redeemed during the fiscal year was only $§8,705.55, against $109,001.05 in the preceding year. The amount outstanding at the close of the year was $15,42.3,18(3.10. The redemptions for each year since 1876, when the issue ceased, have been as follows : 1877 $14,04:i,4.58 05 1878 'S, ^55, :i(i8 57 1879 705,158 66 1880 251,717 41 1881 .„ 109,001 05 1882 58,705 55 MUTILATED, STOLEN, AND COUNTERFEIT CURRENCY. There was detected by this oflBce, in remittances of currency received for redem])tion during the year, $5,430 in counterfeit United States notes, $370.10 in counterfeit fractional currency, $3,429 in counterfeit national-bank notes, and $775 in "stolen" national-bank notes. The REPORT OF THE SECRETARY OF THE TREASURY. 291 denominations of the counterfeit United States notes and national-bank notes rejecteil were as follows: Deuomination. United States Dotea. National-bank notes. One dollar Two dolliirs l'"ivt»(lollllI8 Ten dollars Twentv dollars Fifty dollars ()iie iiuudr(!d dollars . Que thuusaud duUaia Total $22 00 34 UO •120 (10 .1^0 00 l,:t*iO 00 1, 500 00 500 00 1. 000 00 $64 00 1, 425 00 720 00 600 00 600 00 5, 436 00 3, 429 00 The number of the counterfeit United States notes was 286, and of the counterfeit national-bank notes 435. During the year one of the national banks, a portion of whose notes was stolen when signed by but one of its officers, aud put in circulation with tiie fictitious signature of the other, M'eut into voluntary liquida- tion and er 29, 1870, $200,000 in registered bonds of the funded loan of 1891, are lield in trust for the Pennsylvania Company for the security of unappraised dutiable merchandise, and dutiable merchandise in bond, transported by it. Manhattan Savings Institvtion. United States bonds issued to replace those alleged to have been fitoleu from the vaults of the .Manhattan Havings Institution, New York, are held in this office to the amount of $200,000 to i)rotect the United States from loss, as provided by the act of December 19, 1878 (20 Stat- utes, 589). Cincinnati Chamber of Commerce. Forty thousand dollars in United States 4 per cent, bonds, in the name of the Treasurer of the United States, in trust for the Cincinnati Chamber of Commerce and ^Merchants' Exchange, are held in this oflice in pursuance of a contract between the Secretary of the Treasury and the Cincinnati Chamber of Commerce and Merchants' Exchange, made under the authority of a. joint resolution of Congress approved l\l)ruary 27, 1879 (20 Statutes, 488), being the investment of a i)artial i)ayment for the site of the old post-office and customhouse in the city of Cincin- nati. The bonds are to br sdld and the i)roceeds iii>plied in payment of the property when a deed of conveyauce is executed. 294 PAPERS ACCOMPANYING THE UNITED STATES BONDS HELD FOE NATIONAL BANKS. At tlio close of tlie fiscal year the Uriited States bonds lield in trust for the national banks amounted to $376,647,700, Of tliis amount $360,722,700 was held to secure circulation, and $15,925,000 to secure public moneys, as follows : TO 8K0UUE CIRCULATION. Ten-forties of 18G4, 5 per ceixts $50,000 Pacific Railway bonds, 6 per cents 3, 320, 000 Funded loan of 1881, 5 per cents 24,000 Funded loan of 1881, coutinnod at 3^ per cent 202, 147,050 Loan of July and August, 1861, cwntiuucd at 3^ per cent 7,13^^,300 Loan of 1863 ('81s), continued at 3>^ per cent 18,004,300 Funded loan of 1891, 4J per cents 32,752,650 Funded loan of 1907, 4 per cents 97,279,800 360, 722, 700 TO SECURE PUBLIC MONEYS. Pacific Railway bonds, 6 per cents $33,000 Loan of July and August, 1861, continued at 3^ per cent S6, 300 Loan of 1863 ('81s), continued at 3| per cent 797, 100 Funded loan of 1881, continued at 3| per cent 7, 614, 000 •Funded loan of 1891, 4^ per cents 854,100 Funded loan of 1907, 4 per cents 6,538,500 15, 925, 000 The amount of bonds deposited during? the year was $129,47'4,400, and of bonds withdrawn, $128,628,100. The total movement of bonds held in trust for national banks was $258,102,500. The amount of United States bonds continued at 3^ per cent, held in trust for national banks July 1, 1882, was $235,789^650. During the mouth of July $795,000 of the above bonds, included in calls for re- demption, were withdrawn. Of the remaining 3J per cent, bonds $180,524,250 have since been withdrawn and exchanged into 3 per cent, bonds, under the provisions of the act of July 12, 1882. SEMI-ANNUAL DUTY. The semi-annual duty assessed upon and collected from the national banks by the Treasurer of the United States for the fiscal year is as fol- lows : On circulation $3,190,981 98 On deposits 5,521,927 47 On capital 437,774 90 9, 150, 684 35 This amount of semi-annual duty, which is the largest collected in any year since the establishment of the national banking system, ex- ceeds the amount collected in the fiscal year ended June 30, 1881, by $657,131.80. The total amount of semi-annual duty collected by this office from the national banks for the fiscal years from 1864 to 1882, as shown in the appendix, is : On circulation S^>2,253,513 24 On deposits 58,166,276 70 On capital 7,585,911 31 Total 118,005,706 25 REPORT OF THE SECRETARY OF THE TREASURY. 295 THE kede:mption of national-bank notes. The national-bank notes received for i'edeiuj)tion diuinj^ the fiscal year amounted to ^7<),0S'J,327, au increase over the preceding: year of $1G,43'J,008, or more than 27A per cent. Xotwithstandinj? this increase the redemptions were less than one-third as great as in 1877, when they reached $230,210,375. $28,012,000 was received from the citv of New York, $7,370,000 h\mi Boston, and $5,939,000 from Philadelphia-. The larj^est amount received in any year from New York was $80,925,000 in 1875, and from Boston $80,527,000 in 1878, the amount in each case being- greater than the entire redemptions during the fiscal year 1882. The amount assorted during the year was $74,593,730, of which $3,801,500 was fit for circulation and returned to the banks that issued it, $53,838,500 was unfit for circulation, and $10,953,730 was of the issue of banks which have failed, gone into li(]uidation, or made deposits of lawful money for the retirement of i)art of their circulation. The amount of notes fit for circulation redeemed was less than in any pre- ceding year, constituting but 5 per cent, of the total redemptions, while the amount of notes unfit for circulatio!i was greater than in any of the preceding four years. The amount of notes fit for circulation redeemed has steadily di'clined since 1878. In that year they amounted to $152,437,300, and constituted more than 70 ])er cent, of the total re- dem]>tions. The proportion of notes of reducing banks included in the amount redeemed was greater than in any jueceding year, being $14,150,02f», or nearly 19 per cent, of the total amount assorted. The exi)enses incurred in the redemption of national-bank notes during the year were $129,529.38 as against $120,212.12 during the preceding year. The increase is more than covered by the increase in the charges for transportation, the expenses of redeeming and assorting the notes having been reduced from $92,308.20 in 1881 to $90,320.07 iu 1882 — a smaller exi»enditure than in any preceding year. Heretofore, in accordance with a construction of the law adopted at the outset, the charges for transportation have been assessed upon the several national banks in proportion to the amount, and the expenses of assorting iu proportion to the number, of tlieir notes redeemed. For tlie last fiscal year, for the first time, all of the exi)enses of redemption have been assessed in ]>roportiun to. the amount of the notes of each bank redeemed. This niethixl seems to conform more closely than the former one to the requirement of the law that " the amount assessed upon each association shall be in proportion to the circulation redeemc30, 400 Received during tlie venr: lYom Secretaiy of Treasury :?32, 2a'), 000 From Commissioners District of Colmnbia 1,077,500 Total 1,658.995,050 Accounted loi as followw: Registered l)'>n(ls issued, ex<;lnsive of Spanish indemnity 476,649,800 Coup<;n bonds i.ssn^'d 70,200 District of CoIunil)ia bonds, coupon and registered 2, 100, 150 Delivered to destrut^tiou committee: Registered bonds 210,502,800 Coupon bonds 14,805,000 On hand June 30, 1882 : Registered bond^ 920, 29G, 950 Cou])OU bonds 31,462,400 District of Columbia bonds 3, Ui7,750 Total l,t).-,8,995,050 Redemption and exchanges of coupon bonds delivered to note and coupon division 26,(565,550 298 PAPERS ACCOMPANYING THE STATEMENT shoivinq the NUMBER and AMOUNT of COUPON and REGISTERED BONDS ISSUED daring thejincal year ended June 30, 18^2. Loaus. 4 per cent, consols, 1907 C. h- A\ per cpjit. fnnrti'd, 1891 11- Pacific Kailroads li- July and August, 18G1, continued at 3J per cent Ji- March 3, 18G3, continued at 3i per cent..K. 5 per cent, funded, continued at 3i per cent -K- 5 per cent, funded, Districtof Columbia. K. 3.65 funded, District of Columbia ? ^" Spanish indemnity K- Totals. Bondu issued. Direct is- sue, amount. Excbanges amount. ?8, .$70, 200 106,700 $19,712,450 6, 573, 450 Transfers, amount. 1, 9r)7, 850 810,700 118, 578, 750 38,'i5J" 121, C12, 350 27, 000 '461,' OOO' 26, 773, 900 076. 750 299, g.^ 620, 000 035, 700 458, 650 368, 850 49, 000 Total bonds issued. Tot.al amount isRued. , 525, 000 7,000 330, 440, 900 4.57 31,872 10,640 957 9, 6.56 4,898 44, 931 76 160 104, 346 $70, 200 107, 945, 900 32, 878, 400 4, 620, 000 31, 993, 550 17, 269, 350 281, 947, 600 76,000 38,150 1, 986, 000 7,000 478, 827, 150 STATEMENT simping the NUMBER and AMOUNT of COUPON and REGISTERED BONDS CANCELED during the fiscal year ended June 30, 1882. Loans. r" 4i per cent, funded, 1691 \ j>' Pacific Railioads K., July and August, 1801, continued at 3* per cent R-- March 3, 1863, continued at 34 per cent. .R. 5 per cent, funded, continued at 3J per cent R- 5 per cent, funded. District of Colum- C C . bia > R. 3.65 funded, District of Columbia i j^"" Spanish indemnity.^. K-. 1861— February 8, 6 per cent J jj" " 1861— July and August, 6 per cent ... \ jj' 1863— March 3, 6 per cent | jj' 5Q R ' 1862— February 25 i £;; 1864— June 30 C Bonds canceled. Redemp- tions, amount. $19, 712, 450 356, 750 637, 850 1,000 1804—10-408 \ £;; c c ' 1865— March 3, May and November.. X •^" 1805 — March 3, consols \ ^" 1867— March 3, consols I j." 1868 — March 3, consols j jj" Oregon ■war debt C. 376, 041, 212, .545, 037, 615, 79(t. 714, 3, 6, 130, 557, 71, 17, 277, 216, 122, 59, 559, Exchanges, amount. Transfers, J«tal ^°^*- of bonds. 6, 573, 450 l$88, 076, 7.50 451, 000 *681, 600 *1, 276, 2.'J0 *209, 900 *600, 800 '53, 787, 0.'>0 '04, 821, 700 26, 299, 95(1 4, 620, 000 30, 035, 700 16, 458, 650 163, 308, 850 49, 000 1. 525, 000 7,000 Total 171,435,300 148,151,200 '330,440,900 46, 308 36, 182 7, 288 8,548 28, 982 5,220 24, 737 27 51 1, 294 593 1 370 2, 632 12, 143 5, 334 3,640 2, i;i2 95, 014 18, 603 19 1 8 432 157 3 5 178 13 9: '6 87 304 25 1,672 Total amount canceled. $19,712,450 88, 076, 7.50 6, 573, 450 26, 299, 950 4, 620, 000 123, 392, 450 19, 096, 500 303, 903 163,369, 27 ZA, 474, 1. 595, 37c! 7, 041, 6, 893, 8, 821, 2 247 4! 216^ 70, 577, 94, 520, C, 130, 557, 216, 122, ,59, 559, 8.50 OOO 000 200 000 000 000 000 700 250 350 IOC 70C 70C 800 r.J 200 500 400 300 .500 600 250 WO 750 7110 000 050 650, 027, 40C 'Converted into 3J per cents. EEPORT OP THE SECRETARY OF THE TREASURY. 299 NOTE AND COUPON DIYISION. TREASURY NOTES, INTEREST CHECKS, and CERTIFICATES, COUNTED, ARRANGED, REGISTERED, and EXAMINED. OXE and TWO TEARS' 5 PER CENT. TREASURY NOTES. Authorizing act. Number of not«s. March 3, 1803 . 110 $3, 590 GOLD CERTIFICATES. Authoriziujr act. Number of certificates. Amount. March 3, 1SC3 1,027 $1,004,880 THREE TEARS' C PER CENT. COMPOUND-INTEREST NOTES. Authorizing acta. ilarch 3, 1803, and June SO,' 1864 . Number of notes. 499 Amount. $11, 720 THREE YEARS' 7^ PER GENT. TREASURY NOTES. Authorizing acts. Number of notes. Amouut. July 17, 18C1 Juiiu 30, 18U4, and March 3, 1805 $300 3.400 3,700 CURRENCY CERTIFICATES of DEPOSIT. Authorizing act. Number of cuitilicates. Amount. Junes 1872 1, .109 $13, C30, 000 INTEREST CHECKS. Authorizing acts. Funded loiiu of 18S1 (5 per cent.) Funded U)an of 1891 (4.5 per cent.). . . Consuls of 1!K)7 (4 jier rent.) . District of CuluiuUia old funded debt Total Number of checks. Amount. 3.1.741 $14, 798, .170 43 07, 5J2 ! 11,49K. oiO 31 5), 079 I 4,094.094 1.1 71 14,341 00 155,013 ! 31,005,031 89 300 PAPERS ACCOMPANYING THE REDEEMED COUPONH DETACHED from BONDfi and NOTES. Arm Ji god nmnciically 3, 244, 499 Kcgisterod :), 070, 026 Exutnlned 2,004,872 REDEEMED, EXCHANGED, and TRANSFERRED UNITED STATES BONDS, with COUPONS attached, EXAMINED, REGISTERED, and SOnEDULED. Loan. Number of Aniouat of bouds. bonds. Number of coupons attached. Consols of 18G"i C4, 099 $27, 450, 500 42, 483 21, 994, 350 891. 890 Consols of 1867 679, 770 106, 582 49, 354, 850 1,571,660 NOTE AND rEACTlONAL-CUREENCY DIVISION. STATEMENT SHOWING the NUMBER of NOTES and AMOUNT of UNITED STATES NOTES, DEMAND NOTES, 4 PER CENT. REFUNDING CERTIFI- CATES, SILVER CERTIFICATES, and FRACTIONAL CURRENCY EXAM- INED, COUNTED, CANCELED, and DESTROYED for the fiscal year ending June 30, 1882. United States notes. 2tumber of notes. Amonnt. New issue Series 1869 Series 1874 Series 1875 , Series 1878 , Series 1S80 Doiuand notes 4 per cent, refunding certificates Silver Certificates : series 1878 issued at Washington . series 1880 issued at Washington . series 1878 issued at New York . . . series 1880 issued at New York . . . series 1878 San Francisco Fi'actional currency : first issue second issue third issue fourth issue fourth issue, second series fourth issue, third series fifth issue 122, 004 1, 202, 199 249, 572 4, 226, 872 6, 725, 204 4, 598, 345 90 21, 830 70, 704 291, 699 I Iti, 678 , 82, ir,0 ; 4,449 3,200 3,900 20,450 42, 780 5,500 8,700 152, 680 17, 849, OOC $1, 265, 650 11, 702, 501 2,1.52,9.50 16, 022. 250 40, 006, 350 6, 327, 600 810 218, 300 2, 227. SCO 3, 737, 000 486, 250 965,000 1, 795, 700 615 635 2. 262 7,739 2, 750 4,350 33, 270 87, 559, 782 4 PER CENT. REGISTERED REFUNDING CERTIFICATES. ! Amount issued $-'>S, 500 Amount ttinded 57,350 TONNAGE DIVISION. The total tonnage of the country exhibits an increase of 108,198.77 tons, the enrolled tonnage having increased 150,019.53 tons, and the licensed, under 20 tons, 1,470.92 tons, while the registered tonnage has decreased 43,291.08 tons. REPORT OP^ THE PKCRKTARY r)F THE TREASURY. 301 Below are given the totals for the last two years : 1881. Yesselfl. Tods. Kegistered 2.326 1, 33S, 58<5. 18 Enrolled and licensed j 21,739 I 2,722,148.29 Total 24,065 '■ 4,057,734.47 1882. VeaselB. 2,1P5 22,183 Tons. 1, 292, 294. 50 2, 873, 638. 74 24, 368 4, 1C5, 9.33. 24 The coraparison of the diflerent classes of vessels is as follows: 1881. Vessels. Tons. 1882. Vessels. Tons. Sailing vessels 16,760 2,350,393.14 Steam vessels 4,860 1,2&4,998.25 Caual-boats 1,327 118, U7j<. 73 BarKe.s 1,118 325,304.35 16, 810 2, 361, 251. 27 5, IDl I 1, 355, 82.'.. C. 1, 138 I 107, 394. 00 1, 220 I 341, 462. ;:2 Total 24,065 4, 057, 734. 47 24, 368 4, 165, 933. 24 It may be seen from the foregoing that the sailing tonnage has in- creased 10,858.13 tons, the steam tonnage 90,827.40 tons, and the barge tonnage 10,097.07 tons, while the canal-boat tonnage lias decreased 9,584.73 ton.s. The proportion of the sailing tonnage registered is 48 per centum, and the steam tonnage registered 12 per centum. SHIP-BUILDING. The following table exhibits the class, number, and tonnage of the vessels built during the last two years: 1881. 1882. Vessels. Tons. Vessels. Tons. Sailing vessels . 493 81, 209. 57 444 118, 070. .'■)5 57 10, 189. 94 114 70,988.58 666 502 08 135 118,708.50 121. 842. 66 Steam vessels 7,882.00 33,746.51 Barges Total. 1,108 i 280,458.64 1,371 282,269.73 From the foregoing it appears that the amount built during the past year was greater by 1,811.09 tons than that of the preceding year. The tonnage built during the last two years in the several grand di- visions of the country is shown below : Division. 1881. 1882. Vessels. Tons. Vessels. Tons. 1 653 { 114, 34a 66 .■>H 1 11.417.49 215 ! 73,503.61 182 1 81,188.88 890 75 172. 306. 80 15, 776. 95 254 Mt :uiR 3 The mimber of warrants registered for receipts from customs, lands, internal revenue, direct tax, and miscellaneous sources was 13,362 In the preceding year 12, 881 Increase ^ 481 The number of warrants registered for payments and repayments in the War, Navy, and Interior (pension and Indian) Deiiartmeuts was 12,669 In the preceding year If), 036 Decrease 2,367 The number of drafts registered was 33, \[)>^ In the preceding year 32, 179 Increase 1,019 The number of journal pages required for the entry of accounts relating to the civil, diplomatic, internal revenue, miscellaneous, and public debt receipts and expenditures was 5, 878 In the preceding year 5,963 Decrease 85 The number of certiticates furnished for statements of accounts was 14, 309 In the preceding year .• 13,341 Increase 968 The number of accounts received from the First and Fifth Auditors and Com- missioner of the General Land Othce was 24,094 Li the preceding year 23,646 Increase 448 In the appendix will be found a statement of the receijits and expen- ditures of the government, as required by the standing order of the House of Kei)resentatives of December 30, 17!>1, and section 237 of the Eevised Statutes; also, statements of the money expciulcd and the number of persons employed and the occupation and salary of each person at each custom-house, as required by section 258 of the Kevised Statutes. Very respectfullv, vour obedient .servant, B. K. BRUCE, Register. Hon. Charles J. Folger, Secretary of the Treasury. * * » • • • * • • EE PORT OF THE SECRETARY OF WAR War DEPAET3IENT, November U, 1882. To tlie President: I have the honor to submit the following annual report of the admin- istration of feis department : EXPENDITURES, APPROPRIATIONS, AND ESTIMATES. The exi^enditures of the War Department for the tiscal year ending June 30, 1882, were as follows: Salaries, contingent expenses, and postage $1, 311, 072 70 Military Establishment — Army and Military Academy 27, 567, 183 44 Public works 13,12.5,662 94 Miscellaneous objects 3,345,400 56 Total 45,349,319 64 The appropriations for the fiscal year 1883 are as follows: Salaries, contingent expenses, and postage ^,231,737 81 Military Establishment— Army and Military Academy 27, 137, 386 68 Public works. 22,709,366 56 Miscellaneous objects 3,583,929 88 Total 55,662,420 93 The estimates for the fiscal year 1884, as revised by me, are as follows : Salaries, contingent expenses, and postage $2,386,040 03 Military Establishment — Army and Military Academy 28,901,445 94 Public works, exclusive of harbors and rivers 4,513,602 64 Miscellaneous objects 3,096,531 73 Total 38,897,620 34 The estimates do not include any items for improving rivers and harbors, or for the work of improving the Mississippi River under the Mississippi River Commission. The estimates of amounts which may be expended during the next fiscal year on these works aggregate $33,889,000. These estimates are prepared and are reac^ for submis- sion when they may be called for. 304 REPOKT OF THE SECRETARY OF WAE. ^ 305 To obviate what have lieretofore been called '-special" estimates for buildings at military posts, sul>mitted to Congress from time to time, the sums required for such buildin<2:s have this year, for the first time, been included in the annual estimates. They agfgregate 8 1,0.")!, 859.48. A special report, ]^repared by the General of tlie Army, showing the necessity of the buildings estimated for, accompanies this report. The increase of the estimates for salaries and contingent expenses is caused by the augmentation of the clerical force to be engaged upon pension work; fifty new clerks in the Signal Office; the general-service men now estimated for, and all the buildings rented for the AVar Depart- ment bureaus, estimated for as required by the act of August 5, 1882 (22 Statutes, 241), the principal item of increase over the appropriations being $66,000 for clerks in the Signal Office. The increase of the estimates for the Military Establishment is on account of enlargement of the retired list of the Army, the longe\ity pay to retired officers, and the increased cost of subsistence and quar- termaster's supplies. The item pay of the Military Academy is also increased $30,460 to provide for the cadets under the new Congressional apportionment. Estimates for the entire support of the Signal Service are now sub- mitted, and they include all items for amounts now i^aid from Army appropriations and from "line receipts" of military telegraph lines, which would then be covered into the Treasury as miscellaneous receipts. The several items of increase are more specifically explained by notes in the Book of Estimates. THE ARMY. The report of the General of the Armyls very interesting. He urges strongly that the limit of the enlisted strength of the Army be fixed at 30,000 men instead of 2o,000 men, as now established. No increase in the number of otlicers would be caused, and we would have at each of our numerous posts a force not only larger but more efficient. Our soldiers are overworked, and the companies are too small for discipline or real economy. I again concur in his recommendation. The only Indian troubles during the past year occurred in Arizona and the southwestern border of New Mexico, by outbreaks of the Apaches. The military' force in that region has been increased, and it is believed that no further trouble of moment need be apprehended. The General is of opinion, and I agree with him, that the time is at hand at which Congress should make provision lor i)ernuinent and comfortiible posts at important strategic points, so that many hastily and cheaply built posts which have served their purpose as pioneer outworks may be abandoned. The General of the Army also recommends, for good reasons, such a change in the Articles of War as will provide for the designation of some one officer at each garrison or post to try and punish soldiers guilty of 20 Ab 306 REPORT OF THE SECRETARY OF WAJl. minor oft>uses, ro ;is to avoid numnrons nnd cuoibrous courts-martial. The olliccr, while j>ertorminj^ Ibis duty, would icseinblf a. police magis- trate, and it is believed that the j)romptuess with which he could act would be very beueticial to discipline. There were last year 7,341 eulistmentsaud re-eulistmeiits iu the Army, aud more than half that number of desertions — 3,721 soldiers deserted. Some remedy must be Ibujul fur this trouble, for it is not only very ex- pensive, but is very hurtful to the morale of the Army. The General believes that a partial remedy may be found by increasing the pay to what it was in 180o, that is, $16 ])er month for a private soldier and a proportionate amount for the uon-commissioued officers. When the actual cost of supidying a deserters place is considered, such an in- crease would not cause an e(pm^alent increase iu aggregate public ex- penditures. I invite attention to tbe remarks of the General on the subject of pro- viding for such an exchange of stations by regiments that the offi(;eES and men may have an assurance thatwithiu certain periodsjthey will ])e relieved from duty on the remote frontier aud be brought nearer the thickly settled ])arts of the country. The Artillery School at Fortress Monroe and the new School of Ap- plication for Infantry and Cavalry at Fort Leavenworth are serving a most useful purpose. Their cost is not more than garrisons of the sajne size, and they are, in fact, only large posts, in which every officer and soldier is, by study and practice, being better fitted for his duties. MILITARY ACADEMY. At the beginning of the present academic year, the necessities of the military service required such changes in the commands of military de- partments as to give an opportunity^ for abolishing the Department of West Point, and thereby restoring the Academy to its former aud i)roper condition under the law. The late Superintendent concurs in the opinion of the Board of Visitors, which is herewith submitted, that the state of discii)liue is all that could be required — not too severe, and yet exacting a prompt and military habit and attention to duty. He also joins in the recommen- dation of the Board of Visitors that a new public. chapel be erected, which is much needed for religious services and for the guiduatiug ex- ercises, which are now held in open air for the want of a hall of sufficient capacity, aud it is thought that $50,000 would accomplish this desirable work. adjutant-general's department. The Adjutant-General reports an increasing interest in the militia in many States. Whenever requested, the department sends officers ot the Army to State encampments to inspect them and to render such assistance as may properly be given. The State military authorities are furnished with a sufficient number of copies of the new Army Eeg- REPORT OF THE SECRETARY OF WAR. 307 ulations, and it is recommended that the Adjutant-General be author- ized to send out also tactical works, blank forms, and such books pre- scribed ibr the Army as will be useful in perfecting volunteer military organizations. The reports of the several officers performing the duties of professors of tactics and military science afibrd proof of the beneficial results to the students of a system blending military instruction with the regular studies of a collegiate course. The average number of pupils at the several military colleges and universities during the past year was 4,060, and, omitting attendance at recitations and lectures on military subjects of interest, the following figures represent the average attendance at drills : Artillery drills, 529 ; infantry drills, 2,504, or nearly two-thirds of the entire number of students. The aptitude" of the pupils is re- ported very satisfactory, while steadily growing interest is manifested by the respective faculties. The Adjutant-General renews his recommendation that the law should be so amended as to permit officers at remote posts to emidoy enlisted men for domestic purposes. As has already been said, in many remote places no servants can possibly be obtained, and officers must not only cook their own meals but groom their horses, or violate the law as it now stands. It would seem clear that no officer can habitually do such work and properly supervise his company and command ; and it is re- commended that the law be modified so that, with the consent of the soldier and the approval of the department commander, an officer may be allowed the services of an enlisted man of his immediate command, the pay proper of the soldier being withheld by the government and paid by the officer benefited. It is also recommended that there be restored the per diem allowance to officers serving away fromtlieir stations on courts-martial and military boards. In many cases such duty is an exceedingly C-xpeusive burdeu to an officer. The Adjutant-General recommends that the beneficial legislation of the last session which substituted civilian clerks for " general service enlisted men" on clerical duty in Washington be extended to include clerks required at the various military headquarters of the Army. The calls ux)on the Adjutant-General for information in pension and other claims were more in* number than he could answer. The large number of new clerks are rapidly becoming familiar with the work re- quired, and less delay will occur hereafter. The work of this character done during the year is as follows: Number of calls (from all sources) : On baud October 1, 1681 23,748 Received during the year 17(), 361 200, 099 Fiuisbcd during the year ini.'JT? Remaining on hand October 1, 1662 45,b22 308 REPORT OF THE SECRETARY OF WAR. THE soldiers' HOME. Tbe Commissioners of the Soldiers' Homo rei^ort tliat during tlie past year tbe strictest economy in administering its affairs has been necessa- rily practiced. The exi)enses of the Home are increasing by reason of the increase of the number of inmates, ■without any corresponding in- crease in the income. The total receipts during the last year were $125,932.13, and the expenditures 8122,889.60. The number of persons receiving the benefits of the Home on September 30, 1881, was 588, and on September 30, 1882, 023. GOVERNMENT HOSPITAL FOR THE INSANE.' The following is a statement of the number of persons committed to the Government Hospital for the Insane, under the orders of the Secre- tary of War, from October 1, 1881 to October 1, 1882 : Officers of the U. S. Army (retired) 1 Officers of tlie late volunteer service (U. S. Colored troops) 1 Enlisted men of the U. S. Army 45 Late soldiers of tbe U. S. Army 8 Late volunteer soldiers 1 Inmates of the United States Soldiers' Home 6 Military prisoners 5 Employes of the Quartermaster's Department 1 Hosi^ital matrons , 1 Total (59 MILITARY PRISON. The conduct of afi'airs at the Military Piison at Fort Leavenworth, Kansas, has been very satisfactoiy during the past year. The number of prisoners on Jnue 30, 1881, was 4-47. During the year 339 prisoners were received, 326 were discharged, 6 escaped, and 1 died, leaving 453 in prison on June 30, 1882. Work in the prisoif shops has progressed favorably, there having been nmnufactured 52,109 pairs of boots and shoes ; the equivalent of 1,434 single sets of harness; 30,000 brooms ; 2,236 barrack chairs; and the necessary packing boxes and crates. Th^ i>risoners have also done much work in building and repairing buildings, and in carrying on the prison farm. The regular inspections have been made by the Board of Commis- sioners, at which the condition of the prison and its inmates has been carefully examined and all comi)]aints by luisoners inquired iuto The admirable manner in which this large establishment is governed compels the renewal of my recommendation of last year that the officer in charge shall be given the local rank and the pay and allowances of a colonel, as only a reasonable, return for the service he renders the government. REPORT OP THE SECRETARY OF WAR. 309 BUREAU OF MILITARY JUSTICE. The Judge Advocate General reports the receipt and review at liis bnrean of 1,854 records ol* trials by general courts-martial, and the fur- nishing to the Secretary of War of SOI reports and opinions on ques- tions of law, &:c. There liave also been furnished CGI trans(:rii)ts of pro- ceedings of courts martial for the use of the Pension Bureau and Treas- ury Department ; and to parties tried 238 copies of courts-martial rec- ords, containing D.loG pages, have been supplied. Tlie number of trials of enlisted men by inferior courts received and filed in the different military departments (excepting Arizona, from which no report was received) is stated to be 8,795. The necessity of amending the Articles of "War indicated and recom- mended by the Judge- Advocate-General in his last annual report is considered, and the recommendation renewed. Extracts from reports of judge-advocates and acting judge-advocates embodying recommendations in various matters pertaining to the ad- ministration of military justice are appended to the report. quartermaster's department. At the beginning of the last fiscal year there remained in the Treas- ury, as balances applicable to expenses of prior years, the sum of $1,705,296.04; there was appropriated for the year the sum of $11,923,- 385.83; the balance undrawn on June 30, 1882, was S 1,182,230.05. The Quartermaster-General renews the recommendation that post quartermaster sergeants be enlisted as assistants to the officers detailed from the line to i)erform duty in the Quartermaster's Department, and also that the officers of the line serving as acting assistant quartermas- ters be allowed the same additional compensation — that is, $10 per month — as is allowed line oflicors detailed for duty in the Subsistence Department. The duties are important, and I recommend that the dis- crimination be removed. The Army has been, it is believed, i)romptly and comfortably clothed. Improvements in articles of wear were made from time to time, as occa- sion required and the department deemed essential, when the limited appropriation would permit. Under the act of jVlarch 3, 1881, old-pattern clothing of considerable value has been transferred to the National Home for Disabled Yolun- teers. There was furnished to Indian prisoners of war $4,905.18 worth of clothing and equipage. Under the authority of Congress, given in special cases, the Secre- tary of War has made loans of cam]) and garrison equipage, principally tents and flags, to various organizations, at an expense of $4,753.10 for transportation, damage, and loss. The stock of hospital tents has been much used in this way. 310 REPORT OF THE SECRETARY OF WAR. There were purchased 1,3G3 cavalry and artillery horses, the average cost being 133.48; and 641 mules, at average cost of $138.7G, and 49 draught horses, at average cost of $195.29, were purchased for the trains. There were sold 1,943 horses and 884 mules, the horses for $88,174.05 and the mules for $30,3*43.97. The proceeds have been deposited in the Treasury, exceptiiig the small sums received from sales to officers. There were on hand July 1, 1881, 20,803 animals, and on June 30, ]882, 18,940. There were issued during the year 119,384 cords of wood and 39,902 tons of coal. Forage issues were as follows : 585,578 bushels of corn ; 835,513 bushels of oats; 123,685 bushels barley; 90,584 bushels bran ; 52,814 tons hay ; 21 tons fodder; and 2,934 tons straw. , The Quartermaster-General again calls attention to the matter of issue of fuel to officers, and earnestly recommends that it should be again made as before the i)assage of the act of June 8, 1878. The present system of purchase by officers is not convenient, and in many cases is a hardship. Exhaustive tests have been made of the various domestic and other fuels, and a pamphlet has beeu published by autlioiity of the Secretary of War containing the results. There have been 930 contracts filed for the various articles of supply and for other purposes. There were pur- chased 40 spring wagons, 2 drays, and 25 ambulance wagons. The sup- ply of Army wagons on hand was suflicient for issne during the year. There have been 521 stoves manufactured at the Rock Island Arsenal, costing $7,117.15. The new mode of lighting barracks and quarters has cost $81,100, and is believed to be satisfiictory to the Army generally. There were on file at the beginning of the year 12,707 miscellaneous claims and 304 accounts, and 1,242 claims and accounts were filed during the year. There remained on file July 1, 1882, 12,762 miscellaneous claims and 220 accounts, amounting to $7,072,329.99. ■• The Quartermaster's Department moved 07,203 persons, 13,185 ani- mals, and 122,283 tons of material during the year. The cost of these movements was $2,702,052.83; of which $584,459.42 have been paid for transportation of i)ersons; $1,543,980.4(5 for freigh't, «S:c.; and accounts amounting to $033,012.95 were outstanding at the close of the year, a portion of whicli have since been paid. Full statements will be found with the report of the Quartermaster-General, showing the operations to which tlie appropriations for transportation for the year have been applied. J invite special attention to the want of an appropriation to pay land- grailt railroads for services rendered during the fiscal year ending June .'50, 1 881 . The act making appropriations for deficiencies, &c., an)roved August 5, 1882, appropriated $125,000 for tlie ])ur])Ose named, bivt. omits to state the year to which it is applicable ; and unfortunately a pro- vision in the law prohibits the use of che money for payment for serv- REPORT OF THE SECRETARY OF WAR. * 311 ices reiiflercd dnriiii;- tlie year 1880-'S1. Fiirtlier action of Conjjress, it is believed, will be ucces.saiy to make the sum available for the purpose. The amount due from railroads for material purchased of the department at the close of the war, remaiiiinj;' unsettled July 1 , 1881,, was $1 , lOG, 4.^4 55 luterest has accrued duriu^ the year amounting to 42, 4G1 96 1,148,8'JC 51 Credit for services durine; the vear amounterovisions of the act nuiking appropriations for the legis- lative, executive, and judicial expenses of the government, approved August 5, 1882, for the employment of «'ertaiu clerks, agents, and others in tlffe investigation of claims, twenty-five agents have been appointed by the Secretary of War and sent out by the Quartermaster-General's Office to investigate the claims, and a corps of clerks are enjployed in that office pre] taring the claiuis for final action. The Quartermaster-General estimates that, with the present force of agents, the work of investigation of all the claims arisiug under the act of July 4, 1804, for (luaiteruiasti-r's stores can be closed lacing head-stones at the soldiers' graves in private, village, and city cemeteries, under the ex-. istiug contracts, is nearly coin])leted, V>ut there are nuiny graves in such cemeteries not provided jor. and new contracts will have to be entered into. 312 JU-:i'UK'l' 01' Till'- .SECKKTARV OV ViAtt. An abuiulant supply of water lias been brouglit into the Yicksburg Cemetery, and the roadways leadiug to that und to the Fort Scott Cemetery liave been conijdeted. Contracts have l)een let for building" the roads to the ]\lound (.-ity and the Xew Albany Cemeteries, author- ized by Congress, but the work is not yet begun. The improvement of the road leading to the Marietta Cemetery is desirable; and attention is again called to the condition of the road between the Aqueduct Bridge and the Arlington National Cemetery, and it is recommended that the approaches to these cemeteries be improved by appropriations of Con- gress, The l)urial space in the Cypress Hill National Cemetery is now very limited, and it is important that early action be taken to secure additional ground. The purchase of additional ground for the Loudon Park Cemetery, at Baltimore, has been agreed upou, and the question of title is now before the district attorney. SUBSISTENCE DEPARTMENT. The report of the Commissary-Grenei-al of Subsistence contains the usual statistical information connected with the administration of that branch of the public service. The high price of fresh beef has mate- rially increased the cost of subsisting the enlisted men of the Army, the prices at which contracts for fresh beef for the fiscal year 1883 have been made being from 23 to 36 per cent, greater than the prices of the two preceding fiscal years. The special appropriations in February, March, and April, 1882, for the relief of persons rendered destitute by the overflow of the Missis- sippi River and its tributaries were, under the direction of the Secre- tary of War, disbursed by the Subsistence Department in the purchase of food for the suiferers. Within three days after the first appropria- tion was made by Congress, a boat-load of provisions was on its way from Saint Louis, Mo., to the scene of destitution, and further relief was afforded from time to time with promptness, as tlie localities of aufifer- ing became known. The total number of rations furnished was 3,251,- 000, at a cost of 8349,958.88. Of these supplies nearly two-thirds were distributed in Louisiana, about one third in Mississippi and Arkansas, and the remainder (182,000 rations) in Missouri, Illinois, Kentucky, and Tennessee. It may be added here that, under the authority of other special acts, tents were furnished at an expense of $9,630.41, and steam- ers owned by the War Department were used in transporting supplies at an expense of $10,457.28, nialdug the total cost of relief $369,355!^7. The first issue of supplies was made on February 27, and the last on May 29, and it is believed that for a time more than 100,000 persons had no other available means of subsistence. It is gratifying to state .that althougb the work of supplying the wants of the destitute was done under the most difficult circumstances, and extended from Cairo to New Orleans (a distance of more than 500 miles), and waste was care- fully guarded against by the continuous inspections and telegraphic REPORT OF THE SECRETARY OF WAR. 318 reports of a number of officers of the Anuy detailed to travel for that ])urpose alone, yet the ascertainment of need and promptness of sup- ply by the Subsistence Department and the thoroughness of distribu- tion in detail, under the direction of State officers, were such that not a single complaint of any character came to the department. ^tEDICAL DEPARTilENT. The number of deaths of soldiers was 101 fi'om disease and 8!) from wounds, accidents, and injuries; being 10 per 1,000 of mean strength, the fatal results in cases treated being as 1 to 161. The total number of official demands upon the Surgeon-General dur- ing the fiscal year for information as to cause of death in the case of deceased soldiers and the hospital record of invalids was 61,630, being 6,590 in excess of similar ai)plications during the previous year; 21,408 applications remained unanswered July 1, 1881, making in all 83,038 to be disposed of during the year. Search was made and replies furaishedto the proper authorities in 01,079 cases, leaving 21 ,959 cases unanswered. As this is an excess of only 551 cases over the number remaining on hand at the date of last report, it will be seen that al- though the Surgeon-General has not been able to make any permanent decrease in tlie number accumulated dui-ing previous years, he has been able to dispose of an increase of 20,000 cases over that of the last fiscal year, and has very nearly kept pace with the increased require- ments of the Pension Office. Since the addition to the clerical force engaged upon pension work in this office provided by the act of March 3, 1881, and mentioned in the last report of the Surgeon-General, there has been not only a con- sideuable increase in the aggregate number of reports furnished to the Commissioner of Pensions, but it is gTatifying to be enabled to report an increase in the number of cases that have been disposed of by the mean number of clerks exclusively employed upon the technical work of searching the hospital records. This increase has risen fully 33 per cent, over and above the average number of cases searched each day by the same force during the previous year; and considering the fact that the meii employed exhibit every degree of aptitude in learning this peculiar and difficult work, the figures will serve to illustrate that with a new force only a gradual acquisition of skill is to be anticipated, and that a proper degree of accuracy and celerity is attained only by great familiarity with these hospital records, supplemented by a special and often protracted course of training. A progressive increase is observed in the difficulty of search for record of the hospital treatment of soldiers who served in the late war. As time elapses claimants appear to be more than ever unable to fur- nish definite information concerning the date and place of their treat- ment ; yet this difficulty docs not arise from defective memory alone. Failore on the part of those prepaiing declarations for pensions iu 314 REPORT OF THE SECRETARY OF WAR. pressing? inquiries upon theso important ])oints is tlie cause of much of the delay bitlierto cl)arge;',700 pamphlets. The use of the libiary by the me year to the north A\ iiig excliusively — one of tlie portions of tlie building to be used by the War Dei)artment. The work has been pushed along rapidly and satis- factorily, and is now in such an advanced stage that its completion — except the approaches — and occupancy by DeciMuber 25, next, is an- ticipated. The necessity f()(J for the fiscal year ending .luno oO, 1881, to be api)lied to the work of clearing the site, laying founda- 324 REPORT OF THE SECRETARY OF WAR. lions, iiiul l)iiil(ling the w:\\\k of tlie lower stories, and to prevent delay or intorniption in tlio preparation of tlio granite, is rcoonnnonded for favoraI)lc consideration. RETIREMENT OF OFFICERS OF THE ARMY. Under the act of Congress approved June 18, 1878, the letired list is limited to 400. By the act approved June 30, 1882, making appropria- tions for the support of tlio Army for the current fiscal year, it is pro- vided, in substance, that an officer who has served in the Army 40 years shall, if he make api^lication therefor, be placed on the retired list, and that when an officer reaches the age of 64 years he shall be placed on the retired list ; and that "no act now in force shall be so construed as to limit or restrict the retirement of officers as herein provided for." In (jouse Ainiy, and of the public events of which they treat. They are, however, so volu- minous that to save you the labor oi' jx'rusal at this busy moment, 1 will endeavor to give the material figures and facts in the most con- densed form. The first table i)rej)ared by the Adjutant-Ceneral gives the organiza- tion of the Army as prescribed by law. The second the actual strength 327 32S PAPERS ACCOMPANYING TlfE of the Army from returns of June .'50 last, which may be assumed as approximate now : General ofHocrs 11 Adjutant-Goiioriil's Dopailmont (officers) 17 In.sp«clor-G(MH'rar.s Dopartinont (officers) 5 linrcan of Military Justice (ot'ticers) H Subsistence Dei)artnient (officers) 20 Quartermaster's Department (ol'licers) (i'.i Medical Department, 190 otificers, 148 stewards; total X)H Pay Department (officers) ;'>;{ Corps of Engineers, 108 officers, 193 men; total _ 301 Ordnance Department, (>0 officers, 395 men ; total 4r)o Signal Corps, 7 officers, 480 men ; total 487 Post cbaplains (olticers) 25 Thus there are in the general staff 573 officers and 1,210 enlisted men, of wliich latter body the Engineer Battalion of 193 men, at Willets Point, N. Y., is alone available for military service; the remainder, though eminently necessary, are not subject to orders as armed men. The Army proper consists of — Ten regiments of cavalry, 431 officers and 6,383 enlisted men ; total, 6,814. Five regiments of artillery, 280 officers and 2,493 enlisted men; total. Twenty-five regiments of infantry, 877 oflSicers and 8,117 enlisted men ; total, 10,767. Indian scouts, 300. Thus the line of the Army is composed of 1,588 officers and 17,293 en- listed men, or an aggregate of 18,881. Other detachments are reported, which are unquestionably incident to all military establishments, but are unavailable to us for actual frou' tier duty, viz : Commissary sergeants 148 Ordnance sergeants 114 West Point detachments 204 Guard at raflitary prison '■''■'> Recrnits at depots and en route 1,79(> Captain (unattached) 1 Total unavailable 2,310 These figures swell the grand aggregate to 2,162 officers and 23,024 enlisted men, which compose the Regular Army of to-day. The limit of 25,000 enlisted men is fixed bylaw, but the fear of exceeding this limit, or the difficulty of enlisting men in these prosperous times, has kept the Army below what the honor or necessity of the country demands, and I most earnestly advise that this limit be changed to 30,000, not with the expectation of reaching that limit, but to approximate it, and thereby make the Army^ more efficient without material increase of cost. The experience of the world is that of an organized army not ihore than 06 per cent, can be had for actual battle or field service, and as* experience demonstrates that 25,000 soldiers are needed for the wants of the country, I ask for a number which will produce that result. At present our soldiers are overworked, the companies are too small for discipline or decent appearance, and 1 honestly believe that the Army has earned by actual service this amount of consideration from the countiy. The Army as thus composed is distributed to nine departments, com- manded by one major-general, the six brigadier-generals, and one colo- nel specially designated by the President, and these are grouped like REPOPwT OF THE SECRETARY OF WAR. 329 an army in the licit! into three divisions, couinianded by tiio lioutenant- f:eneial and two of tlie three major-generals, all of whose reiwrts are sub- mitted herewith. These reports give in sutlieient detail the military history and changes of the j)ast year, whicli have been most hapi)ily uneventful and peaceful, not wholly for want of cause, but because a force was close at hand in eacli instance to reach and punisJi the dis- turber. The only serious disturbance to the public- peace by Indians occurred in Arizona and on the southwestern border of Xew ^Mexico in April last, as fully described b^' Brevet Biigadier-denoral Willcox in liis report herewith, in consequence of which his troops were re-enforced by the Third Cavalry from the Dei)artment of the Platte and the First Infan- try from Texas. Subsequently, in July, another escajtade ol' Ai)aches was attemiited, but these Indians were })romptly ])ursued, punished, and driven back to their reservation, since which time there has been no repetition. On the 1st of September the Department of West Point was discon- timied by order of the President, and Col. Wesley Merritt was appointed Superintendent of the Military Academy and commander of the post of West Point. Brigadier-General Howard, thereby relieved, was ordered to command the Department of the Platte, and Brigadier-General Crook was ordered to the Department of Arizona. General Crook is well known to the Apaches, and to the people of Arizona, and no further serious dan- ger is apprehended in that quarter. There have been fewer Indian dis- turbances at the Great West during the past season than in any of the past twenty years, partly owing to the precautious taken by the i)roper officers, but in a large measure due to the unexamplecF develoi)ment of the railroads in that region, and the consequent rapidity of settlement by farmers and grazers, wlio are generally prepared to defend their own prop- erty, ^o person, who has not been across the continent by the several routes, can possibly comprehend the changes now in progress there. l!«rearly two-thirds of the domain of the United States lies west of the Mississippi, and at the close of the civil war (JSG5) the greater part of it was occupied by wild beasts, buffalo, elk, antelope, and deer, and by wilder Indians. Xow, by the indomitable courage, indiistiy, and tliriftof our people, this vast region has become reduced to a condition of com- ])arative civilization. Three great railroads now traverse the continent, with brandies innumerable, and a fourth is making rapid progress. States, Territories, cities, and towns have grown up; neat cattle have already displaced the buffalo; sheep and goats have replaced the elk, deer, and antelope; and crops of wheat, rye, barley, and oats are now grown in regions believed liitherfo to be desert or inaccessible. This is the real cause of the great i)rosperity which now blesses our country and swells the coffers of our national Treasury. I am sure, from personal ob- vservation, that the Kegular Army has done its full share in accomplishing this result, and I claim for them a share in its fruits. The troops, during this transition ])eriod, have lived in holes in the ground, in houses made of green cottonwood logs infesteower to designate tin* places of ulratffiic imiiortance at which to erect suitable permanent buildings' for (piartering i)ro])('rIy the troops of the United States. In this connection I beg to submit a letter which I wi'ote you on 330 PAPERS ACCOMPANYINQ THE the lOlli of Octohcr last, which I appeud hereto, marked 0, and ask that it be construed as my ju(laigns or in the Indian country should be treated as "capital," as is done under almost every civilized government, and as is the case with ourselves in actual war. The desertion of his comrades in danger is, and ever should be, con- strued as the basest and most heuious crime possible to a soldier, whereas of late j^ears, under the benign influences of our Bureau of Military Justice, it has grown to be considered as of little more concern than for a laborer to quit his employer withoutleave or notice. I would be perfectly willing in trials for desertion to submit the case of each deserter to a jury of his own fellow soldiers. In any event I invite your close attention to this whole subject, believing it to be of vital impor- tance to the interests of our military establishment. According to my observation the general character of the recruits to-day is better than it was twenty years ago, and their treatment as to food, clothing, barracks, furniture, fuel, lights, and the ordinary garri- son duties is better now than then; but the same nmy be said of our people generally, and the soldier only compares his own condition with that of his immediate neighbors. All the annual reports herewith concur in the conclusion that under the operation of existing general orders the men of the entire Army have improved much in precise rifle firing. This is a matter of the first importance, because one who is skilled and has confilo])t in actual war practice. The tiring Avas "offhand" at I'OO yards, "kneeling" at 300 yards, and "lying on the ground" at 000 yards. The first prize was won by a sergeant of engineers from Willets Point, N. Y., the second by a cavalry sergeant from Oregon, the third by a cavalry sergeant from Texas, the fourth by an artillery sergeant from Fort j\Ionroe, Va., the fifth by an artillery priA'^ite from iSan Francisco, Cal., anroviriation1he money needed for i)nr('hasing11ie medals, and for the m-ces- sary inscriptions fh«'reon. It Avould be wise and Avonid tend to the general Avelfare of the Arn)y if some Just rule could be adopted for a tour of service, by regiments, iu 332 PAPERS ACCOMPANYING THE tlie reiiH>te and Icss-lavored iiarts of our vast country. Kptte of '' wise eoiu]Rel8" and "sajxe advices" ollicers will marry, have families, and yearn for schools, churches, and refined society. 'J'hese are not to be ibund in the remote corners where duty compels us to post our pickets. Hitherto Arizona, New Mexico, Texas, Idaho, Montana, Dakota, &«., have been almost absolutely isolated from the world, iind it is natural that ofiieers and even soldiers should feel neglected if left there, as we have been forced to do, for ten and fifteen years at a time, and the consequence has been that friends, especially members of Congress, beg to have particular officers called away from their i)ropcr stations for fancy and constructive military duty nearer home. This cause has had a most damaging influence on the Army, and if we could give any assurance, as is done in England, that a regiment sent " abroad," as it were, to Arizona, or the Eocky Mountain region, should not be kept there continuously over live years consecutively, it would much lessen this evil, and bring contentment where now there is a feeling that partiality or favor banishes a whole regiment. The artillery regiments have generally been interchanged by some such tacit rule. The cavalry must of necessity be on the frontier, where alone their services are ap- propriate and needed, and they are only changed when there is some l^ressing necessity. The infantry regiments as a rule have the hardest time. Each depart- ment commander may shift his troops according to the necessities of serv- ice, but is of course limited to the areaof his own command. The division commander is also necessarily empowered to move his troops from one department to another of his own division, but is usually restricted to movements demanded by actual danger, and is often restndned for the want of the necessary money. So at Army headquarters, regiments, or even companies, are only ordered from one di^^siou to another when neces- sity demands, and regiments are only moved when the appropriation admits of ifc, and this is most rare now^ Some changes have been made in the past year, such as bringing the Twelfth Infantry from Arizona to the Department of the East in September last, and ]uore recently the removal of the Fifteenth from New Mexico to Dakota, both regiments having been there thirteen years. I believe, now, w^e can and ought to keep three infantry regiments in the Division of the Atlantic, that each should have a tour of three years' rest, and then be replaced by another regiment which has been longest on the Rio Grande frontier, or in the " Farthest West." The mere hope of such a detail would carry con- tentment to many a family now seemingly banished far from home and friends. The railroads in the West have greatly facilitated the move- ment of troops, but have not diminished the cost; quite the contrary. Formerly the infantrj' marched on foot, and the cavalry rode their horses long distances at little cost of money, taking months and weeks, where now the same journey is accomplished in less days and hours; but for this saving of time we have to pay in money, and all Army movements are absolutely controlled by the existing appropriations of Congress. When life is at stake no hesitation is or should be made in ordering troops to the point of danger from the nearest available garri- son, regardless of the cost; but no movement of a regiment or even of a single company for relief is ever or should be made until the Secre- tary of War is consulted, and the state of the necessary appropriation is ascertained. ]\Ieantime the Army must be content with what they surely realize, that telegi^aphs and railroads are rapidly bringing to them" in their hitherto banishment all the advantages of civilization, with daily mails, with schools, churches, and social advantages. REPORT OF THE SECRETARY OF WAR. 333 The reports of Brigadier-Goneral Howard of tin- Military Academy at West Point, of lire vet ]Major-General (letty of the Artillery School atFort MoDroe, and of Colonel Otis of the kSchool of Application at Fort Leaven- wiorth, herewith inclosed, niajked G, 7, and 8, respectively, exhibit the great care and labor, which have been bestowed on military edncation in the Army during the year. All of these institutions are now established on a fair and most satisfactory basis, are well administered, and fulfill admirably their several i»urposes. The Academj* at West Point is gov- erned by special laws of Congress, only falling under my jurisdiction so far as military discipline is concerned. The otheis are simply military posts, governed like all others by the Army regulations, and their garri- sons are subject at any moment to be sent off for duty by the dei)artment commander; yet, whilst not otherwise employed, these garrisons form the basis for practical instruction, and, apart from theoi-etical studies, enable the oi!icers,non-(;ommissioned officers, and privates in rotation to learn thoroughly all the duties of a soldier in garrison, in camp, and on the march far better than would be i^ossible in the smaller posts, to which the bulk of the Army must of necessity be distributed. The cost of maintaining these schools is no more than if the troops were in ordinary garrison, but it would be well to ask annually of Congress for an appropriation for each of $5,000 for the purchase of books of reference, and for surveying and philosophical apparatus, such as are used l)y all schools, this money to be expended and Ju;counted for by the commanding officer, or by the quartermaster on his orders. The law and Army regulations also contemplate a school for officers' and soldiers' children, as well as for the illiterate soldiers, at each and every tixed post and garrison. But as no x^rovision is made for teachers other than by the detail of officers or enlisted men, these schools can- not be said to be successful. Too many of our officers -and enlisted men are already of necessity taken from their comi^anies for daily or detached duty, so that I cannot recommend any further reduction of the fighting force for this or any other purpose, but if Congress is disposed to furnish teachers in excess of the i)resent organization I am certain these schools can gradually be made universal, and they ^nll doubtless prove auxiliary to good order and discipline, if they do not actually rescue many good men from the usual fate of ignorance and vice. The supi)ly departments are not subject to my orders and supervis- ion, but I know, from reports and from personal observation at many of our military posts, that the troops are habitually well supplied in ail respects. RonewiTig the recommendations of my last annual report, and again inviting your attention to the reports herewith of the division and department commanders. 1 have the honor to be, very respectfull3-, vour obedient servant, W. T. SHERMAN, Geiuiral. Hon. Robert T. Lincoln, Secretary of lV«r, Washington, D. C. 334 PAPERS ACCOMPANYING THE REPOKT OF THE ADJUTANT GENERAL. Headquarters of the Army, • Adjutant-General's OFFrCE, Washington, November — , 1882. General: Pursuant to your instructious, I have the honor to sub- mit the annual returns of the Array: A. — Organization of the Kegular Army. B. — Return showing actual strength of the Regular Army. C. — Distribution of troops in the Departments of Missouri, Texas, Platte, and Dakota — Division of the Missouri. J). — Distribution of troops in the Departments of the East and South — Division of the Atlantic. E. — Distribution of troops in the Departments of California, the Columbia, and Arizona — Division of the Pacific. F. — Military geographical divisions, departments, and posts, with dis- tribution of troops, xjost-offices, telegraph stations, and nearest railroad stations or boat landings. G. — Statement of casualties during the fiscal year ending June 30, 1882. H. — Statement of the number of trials of enlisted men by general courts-martial during the fiscal year ending June 30, 1882. I. — Statement of assignments of recruits and re-enlistments during the fiscal year ending June 30, 1882. The number of enlisted men, now in service, who are drawing in- creased pay under act of Congress of August 4, 1854, is as follows : Five years' continuous service , 3, 402 Ten years' continuous service 1,896 Fifteen years' continuous service (i71 Twenty ytars' continuous service 145 Twenty-tive years' continuous service 93 Tliirty years' continuous service 54 Total 6,261 The number of those who will become entitled to increased pay under act of Congress of May 15, 1872, during the fiscal year ending June 30, 1884, is— Ee-enlisted pay 536 One dollar per month for third year of service 3, 412 Two dollors per month for fourth year of service 3,507 Three dollars per mouth for hfth year of service 3, 429 Total 10,884 and the number of enlisted men, now in service, whose terms will ex- pire during the same fiscal year is, 3,549. A comparison of the above data with that submitted last year shows that while the number of men discharged the service by sentence of court-martial is less by 110 than during the year 1880-'81, the number of re-enlistments has fallen off 544, and the number of desertions is 1,380 in excess. The fact that tliere are now in the ranks 2,850 men whose continuous service ranges from 10 to 35 years, while the number last year was only 2,534, shows conclnsively tliat the falling off in the number of re-enlistments is limited to the class of men who have served only the first term of service, and is undoubtedly due to the rapid development of the mining resources of the "Western country creating a demand for labor at remunerative prices second ouly, jier- baps, to the California excitement ©f 1849 and subsequent years. REtORT OF THE SECRETARY OF WAR. 335 The question of desertion is more comi^lex and diflScult of solution. The principal causes are — The short stay of tlie recruit at the depot, thus launching; the man into active military life before he has become acquainted with and accustomed to its exactions and restrictions. This will be adverted to more at length in my remarks under the head of "The Kecruiting Serv- ice." The fact that by law the money value of clothing drawn by the re- cruit after enlistment — a large amount necessarily — is charged against him on tlie rolls and absorbing his pay for montlis, induces discontent and restlessness. Hupiwsing a recruit to have enlisted during the third or fourth month after settlement of clothing has been made, his first pay will just sulfice to pay for altei'ing his clothes and purchase of the necessary articles for his comfort aiul cleanliness. Naturally, the young recruit looks forward to the pay-day following with the hope that he will be enabled to lay by a small amount, or possibly send something to his friends or relatives. Pay-day comes, and he finds himself charged for clothing overdrawn (during the short ])eriod of his service) with an amount which not only absorbs the pay then due him, but the larger part of that for two numths to come; he grows discouraged, and in an unguarded moment listens, perhaps, to the evil counsels of old oliend- ers, of whom there are, and always will be, more or less in the Army, and deserts, thinking he can do better in civil life. To do away with this really important cause of desertion, I beg to suggest that section 1302 of the lievised Statutes, which governs in the settlenu'ut of clothing accounts, be amended so as to provide that the first complete outfit of clothing issued to a recruit be settled only at the expiration of his first year of service. It is unfortunately true that company commanders do not always exercise the care demanded by the importance of a judicious selection of non-commissioned ofiicers, nor realize the positive evil of intrusting them with control which i)roperly belongs to, and should be eagercised only by, the officer commanding the comi)a!)y. Another fruitful cause of desertion is the amount of manual labor outside of purely military duty exacted from soldiers. While this can- not always be avoided, the imposition of non-military laborious duties should only be resorted to in extreme emergencies, as it inevitably breeds disgust and dissatisfaction. In conclusion, I beg to recommend that every case of desertion be carefully investigated, on its occurrence, to determine the cause or causes Avhich led to the conunission of the crime, in order tliat i)rompt remedial action may be taken whenever demanded by the circiunstances of the case. The ofiicer^ of the Adjutant-General's Department are properly as- signeil and in the discharge of their appropriate duties. ARMY OFFICERS ABROAD. :\raj. Gen. J. M. Schofield ; Lieut. Gol. 11. S. La. Motte, Twelfth Infan- try ; and Capt. . I. Chester, Third Artillery, who attended the autumn maneuvers of the Twelfth Corps of the Freiu.'h Army at Limoges, France, last fall, have submitted highly interesting rej/orts of the re- sults of their observations. By existing orders, oilicers of tlie Army who have enjoyed the ])rivi lege of visiting foreign countries are required lo avail tliem.solves of all opportunities, properly within their reach, for obtaining information 336 PAPERS ACCOMPANYING THE of value to tlie military service, inid to make, on their return, written reports on the subject. For tlie puri)ose of disseminating in the Army at large the profes- sional knowledge acquired in these exceptional cases, I have the honor to recommend the publication of such reports whenever they are found to contain useful information on scientific and military matters. PROMOTION TO THE RANK OF FIELD OFFICERS AND RESTORATION BY CONGRESS OF OFFICERS OUT OF SERA^ICE. I am so thoroughly convinced that the subjects of promotion to the rank of field oflicers and of restoration by Congress of officers out of the service is of vital importance to the entire Army, that I beg to again to invite your attention to the remarks on these subjects mMeiu former reports^. Paragraph 19, Army Eegulations of 1863, i^rescribes that "all vacancies in estab- lished regiments or cori>8 shall be tilled by promotion accoixling to seniority except in ease of disability or other incompetency." This rule, under the established usage and custom of the service, requires that a vacancy in any one regiment of either of the tliree arms of the service shall be filled by the promotion of the senior otiicer of the lower grade, and that the officer promoted be commissioned in the particular regiment sutiering the loss which created the vacancy. This system of promotion, aithougli sanctioned by long years of practice, is open to grave objections. It sometimes hap- pens that, duiing the permanent absence of the colonel of a regiment, through sick- U(!ss or other cause, when the command necessarily devolves on either of the other field officers of the regiment, the latter lack the elements required for the successful dis- charge of the duties of a regimental commander, and, in such a case, no matter how zealous and efficient the company commanders may be, the regiment necessarily sutlers loss in discipline and high tone ; and to remedy this evil, so far-reaching in its conse- quences, I beg to suggest that the best interests of the Army imperatively demand a change in the method of promotion to the rank of field officer below the grade of colonel, and this end can only be attained by promotion in the arm instead of commis- sion in a particular regiment. In other words, on the happening of a vacancy, the officer entitled to promotion shoxild be commissioned as *' major of infantry," " lieu- tenant-colonel of artillery," as the case maybe, instead of as at present, " major of the -— regiment of infantry, &c. The eftect of the proposed change will be to enable the General of the Ai-my to assign field officers of tjie line to the particular regiment of the same anu in which their services may be of the greatest benefit with a view to the highest efficiency of the regiment. This, it is conceived, would obliterate an evil which at any time may, through disgust or despair, threaten the demoralization of a regiment otherwise possessed of material not only able, but willing, to sustain its hard- earned reputation. It has become the custom for officers dismissed by sentence of coirrt-martial and dropped from the rolls of the Army, to imjjortune Congress for restoration to the posi- tion tftiey have forfeited by the verdict of a court of their peers, reviewed and approved by the department commander, and confirmed by the Pi'esident of the United States. The bill for restoration is referred to the Committee on Military Aftairs. and by it in many cases placed in the hands of a subcommittee, before Avhom the claimant appears either personally or by attorney. The pressure of other duties not unfrequently pre- vents the subcommittee from giving the voluminous papers called for from the files of the War Department that careful and searching scrutiny such a case demands, having in view the baneful intlueuce on the Army of the restoration to its rolls of a man unfit to hold a commission. Asa check on such claims, it is suggested that applicantsfor restoration be required, by statutory enactment, to present their claims to a board of officers to be appointed by the President, whenever, in his oiiinion, the applicant has Jin equitable claim to a further hearing. VETERINARY SURGEONS. By section 37 of the act of March 3, 1803 (section 1102, Eevised Statutes), the grade of veterinary surgeon was created with assimilated rank of sergeant-major, and pay at the rate of 875 per month. The law of July 28, 186G, section 3, added four regiments to the cavalry arm, with the same organization as provided by law for cavalry regi- REPORT OF TlIK SECRETARY OF WAR. 337 ments, but "with the addition of one veterinary surgeon to each regi- ment, whose compensation shall be one hundred dollars per month."' Thus, with precisely tlie same organization, four of the regiments have two veterinary surgeons, and nix have but one, and at the lower rate of pay. If a cavalry regiment absolutely requires the services of two surgeons of that class, then all the regiments of that arm of the service sbould be placed on the same footing. In the contrary case, if only one suflices, then four of the ten regiments have one veterinary surgeon too many. CERTIFICATES OF MERIT. Section IL'IG, lie\ised Statutes, provides that when -dwy private sol- dier shall have distinguished himself in the service, the President mar grant him a certificate of merit, on the recommendation of the colonei of his regiment. To bring non-commissioned otlicers, as well as privates, within the jmrviewof the above-quoted section, it is suggested that it be amended by substituting for "ijrivate soldier" the words "enlisted man." EDUCATION IN THE ARMY. The importance of the question of education in the Army cauuot be overestimated, whether we consider its immediate benefits in raising the st-andard of intelligence in the ranks, or its ulterior advantages to the country at large whenever the soldier re-enters civil life. After a term of salutary discipline and education, every man leaving the serv- ice becomes a factor of importance (under our system of government) in the civilization and well-being of the State. Fully impressed with this fact, instructions were issued early last tall looking to the enhaucc- ment of the etiiciency of post schools throughout the Army, and, in addition to his other duties, the adjutant-general of each of the several unlitary departments was charged, under the department commander, with the general supervision of post schools, and required to make, yearly, a full report of their condition and progress. I beg to submit the following synopsis of the several reports: DEPARTMENT OP THE EAST. Number of post schools j- Average strength of garrisons , 1 7(j(j School }itt«uclanct; : Enlisted men ^.-,y Children " ' [ j.^r, The condition of school buildings and the supi)ly of books arc re- ported generally good. The majority of the childron^lttend the i»ublic or private schools in the cities or towns adjacent to the several military X)0sts in the dei)artment. DEPARTMENT OF THE SOUTH. The conditiim of the vschool at Saint Francis P>arracks, Saint Augus- tine, Florida, is excellent; the enlisted man arrancas, Fla., Newport Barracks, Ky., and Little Kock, Ark., except that at the two latter posts there are no libraries. At Jackson Barracks, La., there is no post school; the children of officers and meu attend the 22 Ab 338 PAPERS ACCOMPANYING THE public or inivato Hcbools in the immediate vicinity. There being no Kchool-house or biiikliug available for the purpose, a room in a vacant set of oUicers' quarters is used as a library, and is well supplied with pa])ers by the Quartermaster's Department. At Mount Ver- non Barracks, Ala., a school-room has been littcd u]), and school will be opened as soon as a teacher can be i)rocured ; the library is sup- plied with an excellent and ami)le collection of books (including school- books) in good condition. At Fort Brooke, Fla., a school has recently been established, and an abundant supply of literature has been re- ceived from the Quartermaster's Department. DEPAUTJMENT OF THE MISSOUIU. Number of post schools 25 Average streugth of garrisons 3, 547 . Average uumber of children over five years 306 School attendance : Enlisted men 253 Children of officers » 50 Children of enlisted men 119. Children of civilians 48 The condition of the schools in the department is generally good. There are no school-buildings at Fort Craig, N. Mex., Fort Leaven- worth, Kans., and Fort Lewis, Colo., and at these posts there are no suit- able rooms for holding school sessions. DEPARTMENT OF DAKOTA. Number of post schools 22 Average strength of garrisons 3, 761 Average number of children over five years '^96 School attendance : Enlisted men 200 Children of officers r.. -. 51 Children, of enlisted men 158 Children of civilians »3 The condition of the school buildings and the sujiply of school-books are reported good ; but at two posts — Fort Pembina and Cantonment Bad Lands — the supply of lights for evening schools is reported as inadequate. ' Better teachers are needed at the majority of the schools, and the adjutant-general of the department urges that, for obvious reasons, neither the barrack-rooms nor the company mess-room is a suitable place for teachers. He thinks that the purchase of school-books, under the present system, from the post fund (created by the savings from the ration) objectionable even when practicable. The number of lights allowed for evening school are entirely inadequate. He suggests that the duration of vacation be prescribed, and, while report iug marked improvement in the schools, exjiects still greater efficiency during the coming year. /DEPARTMENT OF THE PLATTE. Number of post schools 58 Average Btrength of garrisons 2, 436 School attendanc<; : . Enlisted men 1)4 Children of officers v!6 Children of enlisted men 108 Children of civilians 67 Proper school-house facilities have not been secured at many of the posts, and in many instances api)oiutments for fitting n[\ the rooms have been wanting. REPORT OF THE SECRETARY OF WAR. 339 DKrARTMKXT OF 'J KXAS. Nnmhpr of post Kchoo'.s • 9 Average strougth of jranisons 3,354 Average nuiubtr of cJiildrcu over live years 254 School attemlaiico : Enl isted men 1'-^^ C h i 1 d r c n o f o m f r s 29 Children of enlisted men 121) Children of civilians 58 The condition of the scliool-rooins and supply of books are reported as good, excepting" at Fort Mcintosh and iSan Antonio, at neither of which posts has there been any school for want of a suitable building for the puri)sse. DEPARTMENT OF CALIFOKXIA. Number of post schools 10 Average strength of garrisons 960 Number of children over hve years 84 School attendance : Enlisted men 54 Children of officers 6 Children of enlisted men 30 Children of civilians 19 The condition of post schools in this department is generally reported as good. The apparently small percentage of children in attendance is due to the fact that at the following-named posts they attend either wholly or in a large majority the i)iiblic shools of neighboring towns — Benicia Barracks, Fort Point, San Jos(^, and the Presidio of !Sau Fran- cisco. DEPARTJIENT OF THE C0LU3IBIA. The condition of the schools is reported as indifferent, and the prog- ress very slight, if any. The reasons assigned as to the causes of the unfavorable report are small garrisons, incompetent teachers, and un- suitable school-rooms; disinclination of grown men to attend, intensified by the amount of manual labor required of them outside of strictly mili- tary duties. While Vancouver Barracks possesses a model school- house, and fair ones are at Fort Colville and Boise Barracks, at all the other posts in the department new school-houses are an absolute ne- cessity. On a careful review of the whole ftcld, I am satisfied the present system needs revision. Its tendency is to create a bureau of militarj'' education, and this is highly objectionable. While chaplains manifes't laudable zeal in this work, I seriously doubt whether their labors can ever be i)roductive of the greatest good. Their sphere is spiritual, and while their religious and secular knowledge and high moral tone is jieely admitted, it is also a fact that should not be overlooked that the poss(^ssion of knowledge does not necessarily carry the gift of in\]Mirt- iiig it. Their denominational character is also a serious obstacle to securing the hearty co-operation of men of all creeds or of no creed at all. The successful teacher of soldiers must himself be a military man, intimately acquainted with their wants and asitirations, the exactions and r((]uirements of ;irmy life, and, in other words, must not only be with th"m but of them. To compel the respect and attention of their ])Ul)ils teachers should have ade(piate rank and compensation, ami not l)e UMjuiTcd to share the common mess-ronrus and barracks, nor sliould their ]iosition be atVectcd by changes in the garrison. Tl'.e instruction of enlisted men should l)e made a military duty, tlierefoiv cojiipulsory, and the school hours siiouhl be during the day. Alphabetical schools can in no sense be called military schools. To preserve to the latter 340 PAPERS ACCOMPANYING THE their iiuliN'idual cliaracter, I strougly recommend tliat for white regi- ments an educational test be applied to men offering tliemselves for service in tlie Arjny. No man who cannot read and write should be accepted as an American soldier. While this elimination of gross igno- rance is in accordance with the genius of our institutions, it is not be- lieved it Avould seriously afiect the recruitment of the Army. It is highly desirable that the inspection of tlue schools be made part of the duties devolving on otlicers of the Inspector-General's Depart- ment, and that these inspections be special. In order that fidl justice be done to this question, which is of vital interest to the Army, I beg further to recommend that a board of line oflicers of rank and intelligence be convened to revise the entire sub- ject. KECRUITING SERVICE. On October 1, 1881, recruiting rendezvous were in operation at the following points: Four in New York City; two in each of the cities of Boston, Balti- more, Chicago, Cincinnati, and St. Louis : and one, in each, at Provi- dence (K. I.), Buifalo, Philadelphia, Indianapolis, Pittsburgh, Cleveland, Milwaukee, and Washington. During that month a rendezvous was opened at Albany, N. Y., with a branch at Troy, N. Y. ; and two branches from the rendezvous at N. Y. City were established at Brooklyn, and two at Jersey City. In November, 1881, a rendezvous was opened at Springfield, 111.; in December, one at Detroit, Mich.; and in Eebruary, 1882, a second ren- dezvous w^as opened at Philadelphia. In August, 1882, one of the rendezvous at Boston was discontinued, and established at Davenport, Iowa. Eecruiting has also been carried on in all the departments embraced in the Military Divisions of the Missouri and the Pacific, by officers stationed at military posts, under the supervision of assistant adjutant- generals at the headquai-ters of the several departments. This system involves no exi)ense to the recruiting fund, and thus far it ha§ worked satisfactorily, many good men having been secured who would other- wise have been probably lost to the 'service. For the two colored regiments of infantry, recruiting has l)eeu re- stricted, during the year, to re-enlistments and the enlistment of men who have served with credit a previous term, and in this Avay these regiments have been maintained at or near their authorized strength. Owing to the depleted condition of the appropriation for the recruit- ing service, it was found necessary, in the early part of 1882, to reduce expenses to the lowest possible limit; therefore, recruiting for the mounted service by oificers of the general recruiting service, who had been making enlistments for the mounted service in cities where there was no cavalry rendezvous, was suspended. Eecruiting was entirely stopped at the rendezvous at Providence, Springfield (lU.), Builalo, Pittsburgh, and Washington, and the branch rendezvous at Troy, Jer- sey City, and Brooklyn were discontinued. At the rend-ezvous which were kept open, enlistments were restricted to the best class of men. Since the appro]>riation for the present fiscal year became available, recruiting has been actively resumed at all the rendezvous at which operations had been suspended, and every effort is made, consistent vrith the funds available for tlie purpose, to obtain sufficient men to fill the Army to its authorized strength. In the citie-s (excepting Detroit and Milwaukee) where only one ren- REPORT OF THE SECRETARY OF WAR. 341 dezvous is in operati^on, Uie recruiting otiicers now make enlistnionts for l)otli the general and the niount^id service. In order to cnrry out tlie provisions of tlie tliird section of the act approved June 30,' 1882, making appropriations for tlie support of the Army for the current fiscal year, each recruit is, ujuju aewiptance at the depot, allowed to purchase on credit from the post-trader such articles as are absolutely necessary for his cleanliness and comfort, at a cost not exceeding *3, and he is allowed to receive a credit for laundry inir- ])oses of $1 i)er moiith, for not exceeding four months. These credits are made upon the written order of the dei)0t commanders. The total number of enlistments made during the liscal year ending June 30, 1882, were 7,734. Of these 4,007 were native-born, and 2,827 of foreign birth. 1 agaiu invite attention to the recommendatibn in my former reports that 1,000 men, in excess of the present authorized strength of tin; Army, be allowed for thorough instruction at the recruiting depots; and also to the report of tlie Committee on ^Military Affairs, recom- mending the passage of the bill (11. R. 3(i0l) to ]>rovide for tlie instrue- tion of enlisted men at recruiting dej^ots, which report contained and adopted the o])iuiou 1 expressed to the Secretary of War in letter of May 14, 1882, in advocacy of the bill. The bill, however, for causes extraneous to its merits, failed to becouie a. law at the last session of Congress. The opinion then expressed to the Secretary I still hold, and is as follows : The measnro advocated has for its objective two importaut points, viz, efficiency and oconoiny. Efficienaj. — Very sli-^lit knowiedgi^^ of tlie service and its requirements is posRCssed by men tirst entering tlio Army. The retention of all recruits at the several depots (David's Island, Columbus JJarracks, and JtjHcrson Barracks), to serve there four months before bcinji; sent to regiment^ ^Tould initiate them into the duties of military life; transform raw men into Avell-instructed soldiers; and would atiord an opportu- nity, by the application of )>roper tests requiring time and obsers'ation, to positively determine their lituess for active service. Economy. — Many men enlisting in. good faith soon develop smdi inaptitude for serv- ice that to retain them in the ranks an ould ])rovo a biuden rather than a benolit. This nnfitness, from whatever cause arising, would become knowji at the depot, and the prompt discliargcof such men would. save the government the expense of their transportation to the remote frontier and ret;urn, after discharge, to iilaeo of enlist- ment, according to contract. The table marked K exhibits in detail tlie nativities and occupation of accepted recruits, and the divers causes leading to the rejection of a large number of the applicants for enlistment. RIFLE PRACTICE. The comi)etition last fall for the possession of the handsome and val- ual)le "Nevada badge" — presented to the Army by public-spirited citi- zens of N<^vada for award to the comi)any or battery excelling in target firing — resulted in a victory for Battery K, Third' United States Artillery, and its commander, Capt. Lewis Smith, was summoned to this city to receive, at the hands of the General of the Army, tlie tiopliy won by the handsome score of 1,120 out of a possible 1,.")0 jxiints, or 02.2 jier eentiim. The absence of data ])revents me from exhibiting tln^ result of tlie com])etition this year. A like reason bars relnreiice to the contest for the Army ])rizes, lately held at Fort Leavenworth, Kans. A sense of justice to the enlisted positive hardship to the sol- 342 PAPERS ACCOMPANYING THE dior, aiul deters many of tliem, tliongli qualified, from enterinpf the list of contestants. The officer repairiii*,' to tlic idace of trial and while there receives allowances Avliich compensate him for extra expenses incident to a temporary stay at a post other than his proper station. The .soldiei', on the other iiand, receives only the 81.50 per dieirj com- mutation of rations while travelinj^- under orders, and wlien it is abso- lutely im])racticable for him to carry cooked rations. This allowance ceases, of course, during- his stay at a garrisoned post. Jt seems to me eminently just, and I beg to recommend most earnestly, that tlie allow- ance of $l!r)0 per diem be granted to all enlisted men competing for a position on the Army team, to begin on the day hp, lea\'es his i)Ost for the place of rendezvous, and continue uuiuterriiijtedly until the day on which he rejoins his proper station. Respectfully submitted. E. C. DRUM, Adjutant- General. REPORT OF THE INSPECTOR-GENERAL. Headquarters op the Army, Inspector-General's Office, Washington, J). C, Octoher 10, 1882. Sir: The following report of the oi)erations of the Inspector-General's Department is respectfully submitted for the information of the honora- ble Secretary of War and the General of the Army. There has been no change in the rank, nuniber, or station of the of- ficers of this department since the rendition of my last annual report. The undersigned has been in charge of the office at these headquarters, performing the various duties pertaining thereto, besides accompanying the Lieutenant-Gene-ral of the Army on a tour of inspection of the north- western portion of the Military Division of the Missouri. Inspector-General Nelson H. Davis has been on duty as inspector- general of the Military Division of the Missouri. He has been engaged in making numerous investigations and inspections, uuder the orders of the Lieutenant-General commanding, and has also, under directions from the Secretary of War, made the quarterly inspections of the Leaven- worth Military Prison, as required by section 1348, Revised Statutes. Assistant Inspector-General Roger Jones has been on duty as inspector general of the Military Division of the Atlantic, and has been actively engaged in making investigations and inspections under the orders of the major-geueral commanding and the Secretary of War. Assistant Inspector-General Absalom Baird has continued on duty in this office as my assistant. In addition to his regular current duties, he has examined the money accounts of various disbursing officers of the Army stationed in this city, Baltimore, Pittsburgh, and Norfolk, and has also made several investigations under orders of the Secretary of War. Assistant Inspector-General Joseph C. Breckinridge has been on duty as Inspector-General of the Military Division of the Pacific. In addition to his regular duties at those headquarters, he has made, under the orders of the major-general commanding, a careful inspection of the posts in the Department of x\rizona, and is now engaged, uuder orders from the division conimander, in an inspection of all the posts in the Department of the Columbia. REPORT OF THE SECRERARY OF WAR. 343 The following-uanied officers liave been performing- the duties of act- ing assistant inspectors-general in the diliereut departments since my last annual report: In Department of the Platte, Lieut.-Col. William li. Koyall, Third Cavalry. In Department of tlie Missouri, Maj. John J. Coppinger, Tenth In- fantry. J u Department of the East, ISIaj. liiehard Arnold, Filth Artillery. In I)ei)artment of Dakota, ]Maj, 'William W. San]>roved Ayn-il 20, 1874, careful examinations liave been made of the nciH)unts of all officers of the Army Avho have disbursed i)ublic money during- the year. The funds received and expended, with balances reported due to the United States, have been couipared and verified by ofllcial state- ments from the Treasury and designated depositories. These inspec- tions involved the examination of expenditures and transfer of funds to the following- amounts, viz: Hy regular oflicers of the Inspector-Geiicral'is I )ei)artiiiout ^-Jl, T-l:*!, 'J[}'2 81 By depaitineiit actiug assistant insptHtois-geiieral 'J?,;!;!!), I'-tG 44 15y special inspectors, post coumianders, Ai-e 4, T^.'i. "js:? fil Total r.L5, 8.-)4, lei 8<; This large iiggregate is caused by the fact tliat Jiiuch of the funds was transferred from one officer to another, and thus bei-;iiiie several times the subject of examination. All tiie rejjorts of these inspections are herewith siiiiuiitted, ready for transmittal to Congress, as recpiired by the law above i-t-'fi-rred to. Nearly every garrisoned military ])ost tliroughout the extent of our territory has been carefully inspected during tlu' ])ast year, either by regular or acting inspectors, and, in addition, inspections have been nrade by connnamling oflicei-s of their resjjcetive [tosts and stations, as required by paragraph l.'»27, Army Kegulations. These reports, with notes of the action taken by local comnumdi rs to remedy any irregularilies discovered by the inspi'ct«ns, have been for- warded to these head<|uarti>rs through regular jnilitary channels, receiv- ing, in course of transmittal, tlie remarks of all sui)erior conimanilers as to their action in the ])reniises, and hav«* been carefully scrutinized in this office, extracts having been made and lorwarderoficiency has been attained in company drill ; but there appears to be need for more practice in the skirmish drill, while the bayonet exercise has been almost altogether ignored in the infantry- arm of the service, and also the saber exercise in the cavalry. The great dispersion of tlie troops and the consequent small garri- sons have rendered it impracticable to give sufficient instruction in bat- talion drill, and in some departments no battalion drill has been had. On the subject of light artillery drill I invite attention to the following remarks of Maj. Kichard Arnold, acting assistant inspector-general, De- ])artment of the East: I would repeat my recommendation of former years for the establisliraent of a school for light artillery instruction, to consist of at least four batteries, under a se- lected field officer. The expenditirre of the necessary amount for this purpose I think would be of permanent benefit, while the continuing the batteries at regimental headquarters or separate posts will result in the performance of routine duty only. No material progress or excellence will ever be attained save by bringing these bat- teries together at one post and establishing a regular coui-se of instruction, as is being done at Fort Monroe and Fort Leavenworth. Military instruction has also been seriously interfered with by the almost continuous employment of the men at fatigue and mechanical labor. The following extract from a recent inspection report of Fort Spo- kane, Washington Territory, shows to what an extent this labor has been carried at some posts: During the past winter and spring the command has been almost constantly and exclusively engaged in cutting and hauling logs to the post saw-mill, and in prepar- ing therefrom the various kinds of ordinary lumber requisite for completion of the post . * * * This labor was considered as so valuable to the public military interests that, to promote it, the post commander was authorized to suspend until further orders the ordinary drills and parades. * *^ * Company H (Daggett's) was not included in the ^e^iew and general inspection of the post, it being relieved from all duty at the post, on detached service, and in camp on the bank of the Spokane River, about one mile aud a half distant, engaged in the construction of a military bridge across the river named. Instruction in signaling has not been general throughout the Army. In the Department of Arizona, nineteen men have been instructed in Hag and heliogTaph signaling, the "general-service code" only being used. Stations have been established connecting Fort liowie with camp on Gila Kiver; other stations connecting Camp Price with Fort P>owie are in process of establishment. This will give almost instanta- neous communication with department headquarters and all other points connected by telegraph. REPORT OF THE SECRETARY OF WAR. 345 Regular target practice has beeu continued, as during tlie few years ])nnions, and I quote from the annual reports of the several inspectors, i() sliow the result in their respective departments. Department of Arizona : Jiistmction in target practice has lieeu somewhat irregular, owing to constant field service. * * * There are some men in each troop and company who attain a very liigh percentage in liring, but not much improvement is observed in the majority, wlu) advance to a certain point and there remain, manifesting very litthi int extra and daily duty ronuired of the troops at small posts and commands inter- feres mncti with their jnllitarv instruction. The reports and data that I have becTi able to examine show gcntTally only about r)0 per cent, to GO per cent, of th«i "pres- ent and absent ' i)rcsfnt for duty. A large percentage of this dilference are on extra jinil daily duty, employed at mechanical trades and labor in the erection and repairs of i>ost buildings, ground impn)v»'n)ents, &c., which materially reduces the strength of the ( oiiiiiiauds for militaiy sfrvit-e. Much of this cressinistol. 'these places arc also the receptacles for stolen public property. The Indian question has long engaged the attention and study ot military men, statesmen, i»liilanthroj)ists, and others. Diversity of opinion is not wanting, and it may be a long time belore a correct solu- tion is obtained, and the "problem,'' as many term it, demonslrated. In this connection, all facts from a reliable source and the views of those who are brought into actual contact with our aboriginal p()i)ula- tion are of value, anil iVom the annual reports of Col. N. iJ. Davis and ]Maj. A. K. Arnold ! present the following interesting statements : Colonel Davis remarks: There have been no Indian hostilities of much note in the division (Missouri), ex- cept Irom the Apaches in New Mexieit and Arizona. Outbreaks in other tribes have been thrc:itened. They require constant watching anil the restraining iuOueuco of a military force to ])reserve the peace and protect the frontier settlements. Trouiile with Indians sometimes arises from causes for which they may not be held responsible. The following, being au extract from the report of an inspection of Fort Shaw, Montana, is submitted in connection with this subject: "Some weeks since, Mr. Young, agent for tho Pieguu Iudian||i at the Blackfoct 348 PAPERS ACCOMPANYING THE Agency, 80 miles iiortli of this post, adtlivssed ine a coinnniiiication, representing Ihat lie had received an order from the Indian Department, directing that the amount of ration issued his tribe should bo reie no jiossible doul)t that Ihei/ arc sinijily hi a slarriii;/ couditioH. I have mail-e ])i(»p('r rc}»resi'n1ations through General Rnger, asking that a j-cliabh! insjM'clor hi sent to the agency to make .'i thorough investigation, accompanied by tlie report ol Captains Kent and Moale and Lieutenant Hannay, setting forth the rcsuKs of t'lieir observations. Hard, hard indeed, is the lot of this little band, whose conduct has ))een remarkably good, considering the very trying circnmstances to which they have ])een subjected. If, indeed, their mute appeal for help should fail to receive ]iropev recognit ion, I can only hope that the attention of kindly disposed persons throughout the States may in some way lie called to their case, in order that mucli needed aid may reach them at an early juoment. "GEORGE GIBSON, " Lieutenant- Coloyiel Third Tnfaniry." Maj. A. K. Arnold (Arizona) says as follows: Since my last anniial report four Indian outbreaks have occurred. The tirst, known as the Cibicu affair, occurred on the 30th day of August, 1881. The second, known as the Chiricahua outbreak, occurred on the 29th of September, 18-^1. The history of these outbreaks is well known, and for information in regard to them I refer to the annual and supplementary reports of the department commander, for the year 1881. The third outbreak occurred on the 19tli of April, 1882, when Loco, with his band of Warm Spring Indians, left the San Carlos Reservation, being aided by the Chi- ricahua bauds of Juh, Geronimo, and Nachize, who broke from the reservation in September, 1881, and have roamed in Mexico ever since. It appears that ])ortions of the above bauds left Mexico in small parties, coming into Arizona via New Mexico, first rendezvousing in the mountains, on tlie western borders of New Mexico, and when all was ready, appeared at Steven's Ranch, on Eagle Creek, Arizona, committing depredations, and from that point sending aid to Loco, on the reservation, wBo, with his band, consisting of about thirty warriors and a number of women and children, left, moving east, crossing the San Francisco River in the vicinity of Clifton ; thence moving south in the Peloncillo Range, New Mexico, ci'ossing the San Simon Valley to the Chiricahua Mountains, Arizona, and, recrossing it, moved in a south- eastei-ly direction towards Janos, Mexico. Troops were promptly put in pursuit ; others were l>roiight into position to head the Indians off; the result being tliat they were overtaken (in the Las Animas Mountains, New Mexico, April 24, 1882) by the troops of tliis department (Arizona), under the command of Capt. T. C. Tupper, Sixth Cavalry, who handled them severely, killing seventeen warriors and captur- ing seventy-live head of stock; his own loss being very slight, one enlisted man killed and one wounded. The retreating Indians were the next day struck by the Mexican troops, and after a severe struggle, it is said, were almost annihilated. From the time the band left the reservation to the time when it was struck by the troops in the Las Animas Mountains, forty-two civilians had been murdered or maimed. The fourth outbreak occurred in July last. On issue day, July 6, a number of the Cibicu renegades and scouts killed tlie chief of police, Colvig, and one of the Indian police. These Indians then started oil', going in a northerly direction, being heard of tirst at McMillenville, where they burned several houses and wounded one man. Con- tinuing towards Salt River, they committed depredations and ran off the horses of a company of militia from Globe, who had gone after them. From Sfilt River they pro- ceeded up Cherry Creek to Pleasant Valley, aud after running oti" some stock and killing several persons living in Pleasant Valley, continued their course northward. Troo])s were dispatched as soon as possible from Forts Apache, McDowell, Thomas, and AYhip])le Barracks, all converging on the trail leading into the MogoUon Mount- ains about where it crossed the East Fork of the Verde. Capt. A. R. Chatfee, Sixth Cavalry, beiug a day ahead of the other columns, came upon the Indians, well fortified, at a point in Dry Wash Caiion, about 8 miles north of General's Spring. He com- menced an attack upon them, and was soonjoiued by the column from Apache, under Maj. A. W. Evans, Third Cavalry. A severe engagement, lasting until night, was fought, in which sixteen warriors wer<> killed, seven women and children captured, wtth all the stock, consisting of one hundred or more head, killed or captured. All other Indians in the department have been at peace. The Hualpais, about 700 REPORT OF The secretary of wak. 340 stroug, wlio roam 'lO to 100 uiilcs north and west of Prescott, are in a batiles they catch are nol sulhcient for them. Tliey become restive during tlie winter, and I believe have only been kept from marauding because the War Department has fed them. It is recommended that a reservation bo set apart for them, and that it be placed nnder the charge of the War Department, as these Indians have the fullest contidence in the officers, who have had everything to do with them since they were whipped into submission. " » " \yg J^avo now among us several tribes whose bearing towards us is peaceful, and has been i'nr a number of years. Among them are the Yumas, on the Colorado IJiver, and the Hualpais, north and west of us. These Indians, because they do not go on the war-path, are neglected; they are living in abject poverty, and are becoming more and more debaseonsibilities, long- continued aiul eflicient labors, resulting in the great success of this institution, I re- iterate my recommendations heretofore made, and urge that, in him|dc justice, he should have the ])aj' of his brevet rank of colonel, to which he has been assigned by the President of the United States. The matter of horse medicines, I think, requires looking into. The list of these medicines has grown to be very large, aiul the quantity furnished to companies is far beyond the necessities of the service. The grojiter portion sent is i^ot needed and is never used; so I am in- formed by experienced cavalry officers. A large amount of money could be saved yearly by a careful ehmination from the list of those medicines rarely used and not actually needed. , In former times, Avhen a captain of cavalry was his own veterinary surgeon, and coidd ha\'e a small quantity of ah)es, glauher .salts, blue- stone, castile soap, and luustang liniment, with a bottle of ammonia (for snake bites) on hand, he felt himself anq)lysui)pIiod for anyemcrgtMicy. At the present time there is no end to the kimls of horse meroperly presentertance and nselnlness of the Inspector- General's Department, and the necessity for more oilicers therein. Tlio department now consists (as the law is construed) of fiv(5 olTieers only. Ei<;ht oilicers, in addition, are detaihnl from the line for duty therein ; the services of this number l)eing indispensable for the proper performance of the duties of the department. Could it be increased by five oflicers, selected from the Army solely for their known j,'entlemanly and soldierly qualities, the department would be made indei)endent, self-reliant, and efficient, and would be rendered in the highest degree useful and beneficial to the military service. The detail of the eight officers for duty in the department deprives the regiments to which they belong of their services, and on many occa- sions when much needed. During the recent Indian outbreak in Arizona, two cavalry regiments were, each of them, deprived of the services of a valuable field officer. No doubt these officers regretted exceedingly being on detached service while their regiments were engaged in active field operations. But, OAving to the importance of their duties to the Inspector-General's De- partment, they could not be relieved ; and their services, when much wanted, were lost to the regiments. It appears to me no more than reasonable and wise that the depart- ment should be composed of a sufficient number of efficient and ener- getic officers for the full and ])roper performance of its duties ; and that regiments should not be deprived of their most valuable officers by de- tails that detach them permanently from their legitimate duties with their regiments. I wish to call attention to a class of officers of the Army who, in my judgment, should have been especially provided for in the legislation on compulsory retirement. I regard it the province of the Inspector- General, perhaps more than that of any other officer in the Army, to call attention to any matter in which he conceives an officer or a class of officers has not received just recognition for meritorious services ren- dered. I refer to the officers of the Army who* during the war of the rebel- lion, held the commission of major-general or brigadier-general ; who commanded an army, corps, division, or brigade in the field and in bat- tle ; and who, at the close of the war, received no promotion in the way of reward for their war services, and who returned to their places and duties in their respective corps or regiments, without any increase of rank over that held by them at the breaking out of the insurrection. These officers (few in number), I contend, are, by right, justly entitled to have their war services recognized in some honorable and fitting man- ner by their government. A simple method to this end would be the enactment of a law giving to anv one of this class of officers, on reaching the legal age for retire- mentj the rank and retired pay of the next higher grade to the one he holds. I make this suggestion, hoping that the honorable Secretary of AVar and the Genc^ral of the Ai-my may coincide with my vicAvs, and that they may feel justified in recommending and urging upon Congress favorable legislation for the benefit of these deserving officers. A\'hat is here asked has been — in at least two instances— extended to oflicers through special legislation, who were in no Avay more deserving of this reward than the officers for whom general legislation is now suggested. REPORT OF THE SECRETARY OF WAR. 3ol It may not be out of place for me to state here that, personally, I vcniUl lie in no way alfi'cted or benelited by the enactment of a law to this end. Another matter, could it l)e accomi)lished, would be, in time of peace, of the greatest value to the iService. Xow that the Army has been {^iveu compulsoiy retireiuent, it shouhl likewise be given compulsory promo- tion, or i)romotion by seniority, to the very highest grades. This, once brought about, would, in my opinion, result in the great- est good to the Arniy. It would destroy and end, in a great measure, all strife, intrigue, rovides that all officers stationed Avest of Omaha and north of southern boun- dary of Arizona should be allowed sixty days' leave in two years, or three months in three years, or four months in four year i)eriods; and No. 4 extends the same privilege to all officers wherever stationed, and thus, so far as ])rivileges are concerned, as completely rei)laces and super- sedes the previous laws 1, 2, 3 as if the latter were rei)ealed. It is the rule laid down in the general order for charging leaves of absence that makes the mischief, and virtually abrogates the benefits conferred by the law of 1876. The ruling is based, 1 understand, on the idea that all the laws are in force, and all the decisions of the Comp- troller or the Treasury nnder each law juust have effect. Although the last law supersedes tlie others, especially the second, so as to allow offi- cers to accunudate their leaves so as not to exceed four months at a time (or in any given four-year period). This is done by charging any leave an officer may take (see menio- raiKlum and examjiles, pages 5, 6, 7 of order), first, to thecurient leave year (although the leave for that year be not yet earued), until its month is exhausted; second (after the allowance for the current year is exhausted), to the next preceding year until all its credits" are exhausted ; third, to the next or second preceding year iu like manner; .'>52 TAPERS ACCOMPANYING TIFE jiiul, fonrtli, to the m-xt or third ])r('<;odins leave yc;u'. All credits in any year prewnliii^- the tbiirtli (counted backward) an; foifeited by liiiiita- ti«n. This system is complicated and oppressive, and it coiiqiletely defeats the object of tlie law, whicli was to allow oli[i(;ers one month's hiave for each year of service, with the pi-ivilege of accnmnlating ibur months. Whatever the necessity for this rule at the time, becanse of jirevions laws and leaves granted nnder tliem, the lapse of time has removed the necessity, and officers shonld now have the full benefit of the law. The remedy is simple. Let all leaves of absence l)e charged against the months' leaves that have been longest due. Tlie law admits of this, and it is the reasonable rule. Any leave taken should cancel the leave longest due, and an officer having leaves due him for 1880, 1881, 1882, and 1883, ought not to be compelled, whether or not, to take those of 1883, 1882, and 1881 "before he could be allowed to take that of 1880, which he had a perfect right to take, four years ago. The law intended, evidently, that an officer should be allowed, if his services could be spared, at the rate of one month in a year, with the right to accumulate. It is not just to establish a rule by which he is deiu'ived of this alloAvance of time by a mod(3 of reckoning which will force him to give up his time, or take it when he does not want it. The law ought to be repealed altogether; it arose out of the necessi- ties of the war; worked badly in everj' respect ; has greatly extended the struggle to get orders, so as to save forfeiture; and we can well return to the old system by which, when their services could be spared, officers could get leaves from their commanders. In compliance with instructions received from the War Department, I reported to Lieuten ant-General Sheridan, in time to accompany him on a tour of inspection and reconnaissance through a portion of his military division. Left Chicago, August 1, and proceeded by rail as far as Green Ki>er station on the Union Pacific Road, and by wheels to Fort Washakie, Wyo. From this military post, on the Little AViud liiver, took saddle- horses and pack-animals, crossed to the main Wind Eiver,' ascended this stream to its very source ; then crossed over the Continental Di- vide (by a most excellent and easy pass, heretofore unknown) to the headwaters of the East Fork of the Gros Ventre Eiver ; down this to the Gros Ventre, and down the latter river to near its junction with Snake Eiver, in the basin just under and east of the famous Tetons. Thence north, along the Snake and the shores of Jackson, Lewis, and Shoshone Lakes, crossing again the Continental Divide, to the head- waters of the I'irehole River, and down it to the Upper and Lower Geyser Basins — the Wonder Land. From here crossed the divide separating the waters of the Madison from those of the Yellowstone, visited the wonders of this last-named river, and then along its left bank to Baronett's Bridge, where it was crossed. From this point, by an easterly course up and along the East Fork of the Yellowstone and Bute Creek, to the source of this latter stream at Cook City, a tow]i surrouiided by extraordinarih' rich silver and gold mines. From this mining town passed over a high divide to the headwaters of Clark's Fork: thence across the snow-capped Beartooth Mountains, rc- jyorted impassable hi/ old mountain {inide-s familiar with the country, and the Jirst time ever snccessfully passed over by troops. Descended from this range of mountains, by a precipitous trail, into the valley of Clark's Fork below or east of its famous eanon, and down the wide and beauti- KEPORT OF THE SECRETARY OF WAR. 853 fill valley ol' Clark's Fork to its (leboiichuie iu the Yellowstoue. At this point, the Yellowstone was crossed by a good ford, and, after a march of 4 miles along- its left bank, took, on August 31, tUe cai\s on the North- ern Pacific llailway, and in the afternoon of September 3 reached Chi- cago. For almost the entire distance from Fort Washakie to the railway bridge crossing the Yellowstone at Coulsou, tlie scenery is grand beyond description, (irasses for ])asturage, rich and nutritious; timber abun- dant, and of good size; and everywhere numerous tine, clear, cold, rapid streams of most excellent water (teeming with trout) are to be found. Kich placer gold mines have been discovered and are being worked in the Teton Basin, on the (Iros Ventre and on the Buffalo Fork ot Snake lliver. The distance made by rail was 2,715 miles, on wlieels 150 miles, and in the saddle 442, making the total distance traveled 3,307 miles. 1 merely allude, in a concise manner, to this exceedingly interesting and enjoyable reconnaissance, knowing that, under the direction of the Lieutenant-Geueral, Lieuteuaut-Colonel Gregory, aide-de-camp, will ren- der a very complete and entertaining rei)ort to the War Department. For reasons fully set forth by my predecessor, General 11. B. ]\rarc3-, and in my annual report for last year, 1 renew my recomnn^ndation that the Inspector-CJenerars Department be placed on an erpial footing with other staff departments as regards clerical assistance, and urge that in the next annual estimates for the Army an item of 84,800 be inserted, for payment of three third-class clerks for service in the olhce of Inspect- or-General at headquarters of the Military Divisions of the Missouri, tlie Atlantic, and the Pacific. Kespectfully submitted. D. B. SACKET, Briyadier and Inspector General, U. S. A. The ADJlITA]NT-(iENERAL, UNITED STATES ARMY. Note. — In the matter of the Piegan Indians, referred to in the in- spection of Fort Shaw, I have been informed, since this report was pre- pared, that the Commissioner of Indian Affairs has ordered the con- tractors to deliver to the tribe 25 per centum additional beef and flour. KEPURT Ol'^ LlEUTENANT-GENEPtAL SlilOlilDAN. J1eadquartp:rs ^Military Division of the Missouri, Chicago, III., October 20, 1882. General: Foi- tlu' informiition of the Genernl of tlie Army, I have the honor ta submit the following report, covering operations within the limits of my command during the i)ast year, and inclose herewith the ie])orts of the several department (iommandeis. Since my last annual report, iig. Gen. A. Il.'i'eiry. I'lid eomi)risesthe State of .Minnesota and the Territories of Dakota and ^Montana. It is garrisoned by twenty permanent posts, a camp at l'oi»- lar Kiver, Montana, and a cantonment at Bad Lands, which is ordered abandoned. ^ 23 Ab 354 PAPERS ACCOMPANYING THE The Dopartineiit of the Platto. ooniprises the States of Iowa and Ne- ]>r:i8ka, the Territories of Wyoniiiifr and Utah, and a portion of Idaho. It contains fourteen ]Kinnanent ]>osts, ineludinfj tiie new ])0st of Fort Thornbnr;ih. l>riff. (Jen. George Crook was relieved from command of this dei)artment by Brig. Gen. O. O. Howard on September 1 last. The IJepartment of tlie Missouri is commanded by Brig. Gen. John Pope, and comprises the States of Illinois, Missouri, Kansiis, and Colo- ra(lo, the Indian Territory, and the Territory of New Mexico, together with the posts of Fort Elliott and Fort Bliss, Texas. The department is garrisoned by twenty permanent posts, with camps at White Itiver and at the Uucompahgro Kiver, in Colorado, and one at Snake River, in AVyoming. The Department of Texas consists of the State of Texas, and is com- manded by Brig. Gen. C. C. Augnr. The garrisons include ten perma- nent posts, two of which, Forts McKavett and Stockton, have been ordered abandoned, and ten camps and subposts along the south- western frontier. During the past yeiiT the force in the division has been reduced by the transfer of the Third Cavalry from the Department of the Platte, and the First Infantry from the Department of Texas, to the Military Division of the Pacific. The Third Cavalry was at first ordered to be replaced by the Twelfth Infantry from the Division of the Pacific, but the last-named regiment was immediately transferred to the Military Division of the Atlantic, and in lieu thereof three light batteries of artillery were ordered from that division. To garrison the military posts in this division there are now seven regiments of cavalry, nine- teen regiments of infantry, and four batteries of light artillery, aggre- gating 13,854 officers and men, distributed as follows: Department of Dakota — two regiments of cavalry, 1,284; seven regi- ments of infantry, 3,243; one battery of light artillery, Co; total, 4,5U2. Department of the Platte — one regiment of cavalry, 65li; three regi- ments of infantry, 1,323 ; one battery of light artillery. Go ; total, 2,040. Department of the Missouri — two regiments of cavalry, 1,413 ; six regiments of infantry, 2,844; and one battery of light artillery, 05. Stationed at the school of application for cavalrj-^ and infantry, at Fort Leavenworth, Kans., besides companies belonging to other departments of this division, viz: Troops G, Seventh Cavalry, 57, and M, Eighth Cav- alry, 62; Companies A, Fourth Infantry, 39, and G, Eleventh Infantry, 42. There are also one troop of the Third Cavalry and one company of the First Infantry, both of which belong to regiments transferred dur- ing the past year to the Division of the Pacific. Total strength of troops in the Department of the Missouri, 4,626. Department of Texas — two regiments of cavalry, 1,383; three regi- ments of infantry, 1,413, and one battery of light artillery, 65 (not yet reported for duty); total, 2,796. From the foregoing dei)artment effective totals, the following deduc- tions are to be made of troops serving at the present time as garrison of the cavalry and infantry schools at Fort Leavenworth : Department of Dakota, one troop of cavalry, 57; and one comx^any of infantry, 42; total, 99. Department of the Platte, one comi)any of infantry, 39. Department of Texas, one troop of cavalry, 62. Department of the Missouri, headquarters, baud, and two companies of the Twentieth Infantry, 128; one troop Fourth Cavalry, 55; one bat- tery of light artillery, 65; total, 248. REPORT OF THE SECRETARY OF WAR. OOO One lieuttiuant from eacli of the cavalry and infantry rcsi"iei'ts f»f the Army is detailed for instruction at the school. In the De])artment of Dakota unusual (iniet has jirevailcd durinj^ the ]>ast j'ear. The Northern Pacitic Kailroad has ])ro}iivssed westward with great rapidity, and bids fair to reach Bozeman hy next siiiiiin»'r nv fall. Its ])resent western terminus is at Bil'ings, GO mih's westward of the Big Horn lliver, and the valley of the Yellowstone is now being settled by an industrious ])oi)ulation. The trouble Avhu-h occMirred last winter, through the occupation of the country along ?.Iilk liiver, by In- dians and half-breeds from British America, lias been successfully set- tle«l by sending troops from Fort Assinaboine to remove these intruders to the country whence they came, north of the boundary line. This winter the amicable relations existing between our ibrces in that sec- tion and the Canadian police, at Fort Walsh and other posts, whereby information of the movements of such Indians is interchanged, will go far toward insuring quiet in that direction. I would respectfully rec- ommend the abandonment of Fort Hale, on the iVIissouri liiver, and tliat the buildings at that place be transferred, by act of Congress, to the Indian Bureau, for the establishment of an Indian school, should the Indian Bureau desire them for such a purpose. In the Department of the Platte, some im])ortant changes have oc- curred since my last annual report was rendered. Tiie old posts of Fort Fettermau and Fort Sanders, having fulfilled the objects for which thej" were originally built, have been abandoned. The post of Fort Thornburgh was located, last year, near the junction of the (ireen ami Duchesne Kivers, in Utah, but, at the request of the Interior I)ei)art- ment, it was changed to its present place on Ashley Fork, 3.5 miles from the Ute agencies. The expected a])])ropriation for building was not made by Congress, and the troo])Sof'the garrison have been withdrawn for the winter, excepting a small guartl for the saw-null and other property. At the proper time, during the next session of Congress, at- tention will be called to the necessity of an appropriation for building this post. In the early spring I will recommend the abandonment of Fort Hall, Idaho, and the transfer of its small garrison (one company) to Fort Douglas or Fort Cameron, Utah. During the pressing need for additional mounted troops in Arizona, I sent the Third Cavalry to that Territory, and hoi)e to receive it back in the Department of the Platte again, or if not that regiment, then the Sixth Cavalry in its place. The two largest Indian agencies in the country, viz, tiie Pine Kidge and the Rosebud agencies, have to be controllecl ])riucipally by troops in the Department of the Platte. Many thousands of hulians are at each of these agencies ; those at Pine Ridge occasionally become restless, and I thiidc it would be wise to watch them, with sulUcient trooi)S held well in hand, for some time to come. There has been no serious trouble with Indians in the Department of the Missouri during the past year, though the troops in New Mexico have been kei)t actively engagc^d in protecting that Territory against raids, f(U' the details of which 1 would refer to the annual report of Gen- eral Pope. The remain Total X\^ ^.Otlll On the .'>Oth of September. 18S1, the strength of the (livision ii! troops was 337 commissioned olhcers and 2,.'')!)8 enlisted men. My annual report of last year, dated October .■)!, ISS], dosed with a brief account of the services of the troops at the Vorktown Centennial Celebration, in that iiiontli, and their return to their resjjective stations. It has been ai>i)areiit during tlie past year that the tour of the troops in camp at Yorktown on the oc(;asion in question, brief tliongh it was, has been of benelit in itoint of military experience, instruction. «S:c. General Orders No. 7.">, of ()ctoV»er l.~», INSI, from the lleadcinarters of the Army, Adiutant-on the recei])t of the orders in qnestion, the necessary de- tailed instructions were pven to carry these movenunits into execution so far as concerned the First, Third, and Fifth United States Artilh;ry. The utmost economy was observed in the matter of tranKi»ortation. The batteries of the First Artillery — four at Fort Adams, two at Fort Trumbull, two at Fort Warren, two at Fort Columbus, and one at Fort Preble — left the Department of the East durinj^ the second week in November. Ten batteries of the Third United States Artillery lelt the Department of the East for their stations in the De[iartment of the South during" the same month. The light battery of this regiment being on its retnrn march from Yorktowu to Fort Hamilton at the time of the movement did not leave for its post in the Department of the South — Little Kock Bai-racks — until early in December. The Fifth United States Artillery joined the Department of the East the latter part of November and early in Decem- ber, with the exception of Battery I (Orabb's), which had been sent north by me in October from Yorktowu (at the conclusion of the cere- monies there) on the steamer provided to take the troops to and from that point. In distributing- the Fifth United States Artillery to posts in the Department of the East, I took the opportunity, with tlie ai)i)roval of the General of the Arifiy, to discontinue Fort AVadsworth, New York Harbor, as an independent post, making- it a dependency of Fort Hamil- ton, and directed the commanding- ofticer of the latter post to station an adequate guard there to look after the public property, &c. The first battery of the Fourth United States Artillery reached the Department of the East from the Military Division of the Pacific the second week in November, and by December 1st the last battery had arrived. I inclose herewith a return shoeing the precise dates of the departure and arrival of these troops, together with copies of the se^■eral orders issued by me assigning them to their respective stations. This and the tabular report submitted by Brevet Brigadier-General Hunt, commanding the Department of the South, supply full informa- tion on these points. The health of the troops in the Department of the East during the past 3'ear has been good. In the Department of the South early preparations were made to withdraw the,garrisons from the posts liable to the ravages of yellow fever, should that disease make its appearance. The summer had almost passed, and no occasion had arisen for removing the troops on this account, and it was hoped tliat this year there might be none; but in the latter part of August yellow fever of a virulent type made its appearance at Pensacola, and at once the three batteries of the Third United States Artillery at that point. Fort Barrancas, were removed to Mount Vernon Barracks, Ala., a healthy post, and there they still remain. A detachment of jMarines was also sent from Pensacola to Mount Vernon Barracks, at which post the General of the Army directed they should be received and ])rovided for as well as i)ossible, and be looked upon in all particulars as guests, subject to the common rules of discipline, until the yellow fever should have ceased, and they are now in camp at that place. Everything has been done to make them comfortable in point of accommoilation, &c., during their stay at Mount Yeruou Barracks. REPORT OF THE SECRETARY OF AVAR. 359 At Fort Brooke, Tani])a, Fla., wbere the two batteries forming the garrison of Key West Barracks have been stationed since the spring of 1880, " dengue fever" appeared amongst the garrison in July last. The post of Fort Brooke, Fhi., having been ordered to be abandoned and the reservation tnrnee pursued uiKh'r better conditions, and with increased prospect of beneficial results, than lieretofore. With a view to the better instruction of his re;:?inientin military duties incident to service in camp and in the field, Col. li. B. Ayres, Second Artillery, requested, early in the summer, to be allowed to place the light battery and the four foot batteries of his regiment at Washington Barracks, and a portion of the garrison at Fort McHenry, in camp at Gaitliersburg, Md., which aftbrded all the requisite facilities for the pur- pose, and where a camp ground could be had at an economical rate. With the approval of the General of the Army, the application of Col- onel Ayres was granted, and in the latter part of last June the light battery and the four foot batteries from Washington Barracks and two foot batteries from Fort McHenry marched to Gaithersburg and went into cam]), where they still remain, to be withdrawn, however, to their former stations in a short time. The change from garrison to camp life has, I am informed, been beneficial in several respects. It has afforded ample opportunity for instruction and improved the health of the troops, niauy of them being troubled with malaria, to which the posts of Wash- ington Barracks and Fort McHenry are somewhat disposed at certain seasons of the year. I inclose the several reports of the chiefs of the staff corps at these headquarters, exhibiting the operations of their respective departments during the period for which they are made. They afford evidence of close attention to details and exhibit a proper regard for economical administration of the public funds, which some of them are required to disburse. Inspection duty, in all its branches, within this division, has been thoroughly and conscientiously performed during the year, and with beneficial results. I'he reports of the inspectors, which* are inclosed, will be found interesting, and mauyof their judicious suggestions deserve more than a passing notice. I ask especial attention to the recommen- dations of Lieut. Col. Roger Jones, assistant inspector-general, in regard to the issues of fuel under existing regulations and the accountability therefor, and the same in reference to issues of oil, under the i)rovisions of General Orders Xo. 50, Headquarters of the Armv, Adjutant-Gener- al's Office, 1881. Maj. Richard Arnold, Fifth Ai'tillery, acting assistant ins])ector gen- eral, adverting to the pressing necessity for additional buildings at Forts Adams and Hamilton, so as to quarter the men of the light bat- teries at those posts nearer the battery stables, refers to previous rec- ommendations for the establishment of a school for light artillery in- struction, to consist of at least four batteries under a field otficer. I have, heretofore, adverted to this subject, and am still convinced of the benefit to the service which would accrue from such a concentration of light batteries under a skilled commander, but the size of our Army, and the multifarious duties it is called upon to fulfill in all sections of our vast country, do not always make jn-acticable what is clearly seen to be beneficial. I trust, how-ever, that if it should be found feasible, a light artillery sehftol, such as was established at Fort Eiley some years ago, REPORT OF THE SECRETARY OF WAR. Jbl may be a.^aiii ori;ajiizo(l. Witli it, and the artillery school at Fort ]\Ioii- v(H\ aiuUiie scliool ol'apitlii-atiuii at Fort Lea vomvorth, the Army would have at its commajul every facility for thoroughly triuniiij; its officers aud men in their proiessioual duties. The inspectors advert to the i)reseut system of post schools, and I a.i-ree with them that the principal drawback to an effiiaeious develop- nient of the system, is the want of competent school- teachers with de- fined position and pay. I forwarded on September la report on the sul)ject from Lieut. Col. W. D. Whipple, assistant adjutant-general at these headfjuarters, which discussed this matter. I understand that the subject of post school is receiving the attention of the superior military authority with a view to I»rovide what is still lacking- to make them efticient and successful. The rejiort of the chief quartermaster of the department exhibits in detail what has been done in the matter of new buildings, repairs, &c., during the year. Many needed repairs had to be deferred on account of the limited appropriations. Estimates Avill be submitted in due season for what is necessary to put all the buildings in the division in good condition, with a view to their being filled early in the next tiscal year, if i)racticable. Xew hospitals at Fort Columbus aud at Washington Barracks have been completed during the past year, and authority Jias recently been given to erect a new one at Fort Schuyler, Avhere it is much needed. The reports of the chief commissary of subsistence, the medical director, and the chief paymaster, indicate a proper condition of affairs in those departments. Kifle i)ractice has now become one of the chief features of military instruction in the Army, and it is gratifying to see that zeal in this direc- 1 ion has in nowise abated. The present system, established by General Orders No. o3, of j\lay L5, 1882, has already had a fair test in this com- mand, and, so far as my own observation goes, with a. large measure of success. In this connection I invite attention to the report herewith of Capt. H. G. Litchtield, Sei^ond L^nited States Artillery, on special duty at these headquarters, in connection Avith rifle practice, which recites in detail what has been done in this division in that direction during the past year. 1 agree with him fully that our advanced rifleman now "surpass in excellence our rifle," and that there is much need of a limited number at least of sujKnior rilles in point of ])Ower and accuracy, at long ranges, beyond tlie capabilities of the present arm. It is to be hoiied that the Ordnance Department may be able to su])ply thisdelici- ency at an early date, and thus placeour Army riflemen ui)on an equality witli those of any service. Tlie remarks and recommendations of Captain Litchfield in regard to uidoaded new cartridge cases (or shells) only being issued for reloading, are worthy of attention. 1 commend also to notice his advocacy of the target system in use by the State of Xew Jersey, known as the "J'.rin- ton-' target. Post commanders and company otlicers have generally been active and energetic- in stininlating their men t(» i)ersistent ritlc ])ra<'tice, and have done much to aid the iknelopmeiit of the ritle system as now t)rgani/:ed. The rewards issned to the winning marksmen have been recei\ed witii geneial ap])reciati()n. Tiie discipline and gen»;ral condition of the troops as reported to me are satisfactory, and the inspectors have found marked inii)roveiiuMit in this res])ect during the i)ast year. Military oflensi's have deci'eased, as will he se«Mi from the statistics 3(52 PAPERS ACCOMPANYING THE on (his lioad sivcTi in tlie roi)oit of tho judp^e-advocate of the division liercwitli. ThtMc is om3 Kubjccjt in lliat ()rii(;<'r'.s report to wliich I ask ('KlK'ciai attenlion, and, that it may bo clearly understood, give the fol- lowing extract: Attention is invited to the Kinf^nhir deliciency in tlie law, as to tlio njetliod of ascertaining in a judicial way, the cause of decease and tho responsibility tlierefor, if any there should be. In the cases in i»oint, the jjost was under the sole and exclusive jurisdiction of the Uuitid States, and, of course, the local coroners, in the neighboring city, had no jurisdiction to hold an iniiucst. Tin re was no one so situated as to feel constrained to demand a court of inquiry under the one hundred and tifteenth Article of War; conseciuently the only method of investigation was by a board of otticers convened for the purpose by the depart- ment connuunder. This board, however, had no power to administer oaths, or to compel the attend- ance of witnesses, and so arrive at a judicial determination. It is manifest that its ])owcr of investigation was limited beyond that which the experience of all English-speaking countries has found necessary where death has been the result of any act. In most of the States of tlie Union the coroner is the local judicial functionary who conducts the inquisition. No such ottieials or persons invested with their functions reside in military places under military jurisdiction. Asa consequence, in two recent instances, at different posts where soldiers have been accideutally killed and it became necessary to send their remains to national cemeteries, locaL municipal, and health authorities in each instance made strenuous objection because there was no corouei-'s certificate, as required under penalties by State law and much inconvenience was thereby created. I have the honor, therefore, respectfully to suggest that the attention of Congress be invited to the propriety of enacting that whenever, at any post, fort, or camp, garrisoned by the military forces of the United States and under the exclusive juris- diction of the United States, any person shall have been slain, or suddenly died, or been dangeroi\ly wounded, or been found dead under such circumstances as to re- quire an inquisition, a court of iniiuir^' may be appointed under the one hundred and sixteenth Article of War — one member, if practicable, to belong to the Medical De- partment of the Army — in order to investigate as to the cause of said death or wound- ing, and to fix the responsibility therefor, and to express an opinion thereon, said court to be organized and its proceedings authenticated in the manner and to the etfect required by the one hundred and seventeenth, one hundred and twentieth, and one hundred and twenty-first Articles of War, and to have all the powers mentioned in the one hundred and eighteenth Article of War. And said court may, if in its judgment deemed necessary, i.ssue process for the immediate apprehension of any person accused of the crime nnder investigation, who shall, without delay, be thereupon taken before the neavost judge or comnjidsioner of or for any court "of the United States or justice of the peace acting aa such com- missioner, to be dealt with according to the law governing like cases arising in the district in which said post, fort, or camp may be situate. In closing- this report I deem it proper to state that the ofiicers of my staff, personal and general, have performed their duties with intelli- gence and fidelity. In accordance witli instructions this report and all of its written inclosures are submitted in duplicate, printed inciosures in triplicate. 1 am, sir, verv respectfully, your obedient servant, WINF'D S. HANCOCK, J\[ajoy- General, Commanding. The Adjutant-General U. S. Army, Washington, D. C. REPORT OF THE SECRETARY OF WAR. 363 KEPORT OF MAJOR-GENERAL McDOWELL. Headquarters Military Division of the Pacific AND Department of California, Presidio, San Fnnicisco, CaL, October 14, 1882. Sir: I transmit llel■e^vith tlie aimiial reports for the past year for the Departments of the Columbia, California, and Arizona, with tlie papi-rs aceompauying: them. Tliese reports are so full that I have no need to add to them. The only serious disturbances were in the Department of Arizona, a full account of which is given in the report from its commander. The i)rcsent commander, lirigadier-General Crook, reported a few days ago that there w<'re not at this time any hostile Indians within the limits of his command; that the only api)rehension was with resi)ect to hostile Indians now in Mexico; so there are at this time no hostile In- dians anywhere in this division. Before relinquishing- the command I now hold, I am constrained to again ask the attention of the "War and Interior Departments to the case of certain Piutes who were taken away from their tribes and homes in California and carried to an Indian reservation among a strange i)eople north of the Columbia River. Their case is fully set forth in the ac- comi)anying papers marked AA. It will be seen, as it appears to me, that the reasons which caused the refusal of my application to have these innocent and sutfering people sent back to their tribe and homes have been mere questions of adminis- tration, of convenience, and economy, while I submit their return is a matter of good faith and mercy. The Indians in question — and a list of them is herewith — were not hostile. They had done nothing meriting punishment. During war they were carried away from their homes be- cause it was easier to move them durinfj hostilities than to leave a force to protect them at their homes. They are held in exile against their will. They are kindred to Winnemucca and his children, ^'atchez and Sarah, wlio i»eriled their lives and were indefatigable during the war in doing everything for the whites and the Army. I am thus earnest and perhaps may be thought importunate in again urging this question, be- cause it arose under my command and by otiicers acting under me, and these people and their families and friends look to me to see their wrongs redressed. I have had visits from Natchez and Sarah, and messages, asking me to have these people sent home. They have no representative, no new8pai)er to speak for them, and even if they could get their case be- fore the courts are ignorant of the way to bring it there. I beg the l)roi)er oliicers may hmk again into this question, not as a matter of convenience to the service, but one of justice to unfortunate and inno- cent people. I do not know that it is expected of me at this late day of my service, or that it is desirrd, that f should oiler any recommendation as to the general good ot the Army, still 1 will venture to bring one (juestion to the notice of the AVar Department, with a vi(?w to Congressional action, because I have found it one of great inconvenience and delay in the ad- ministration of military justice. I mean the limitation now imposed by law on the hours of session of courts-nnirtial, making it illegal to sit after 3 o'chu-k j). m. A reference to Lord .Alacaulay's Uistory of England will show that this limitation was imposed by Parliament because at the time it was done 3 o'clock was the dinner hoiu" of oliicers, and it was then the custom of 364 PAPERS ACCOMPANYING THE ofliccrs ;iii(l ^c.iillciiicii lo be in .stic.li a .state af'tc-i' diiiner as to unfit tlioiii lor jiulicial iiiiiclious. r>ut oJliceivs o'clock aud do not j^ct 2,4:G1.17 for the tiscal year ending June 30, 1882, was all expended, and a deticiency a)>i)ropriation of 85,000 was asked for and obtained, but an unexpended balance of $1,007.45 was covered back into the Treasury. In August, 1881, the sum of 90^730.42, which had been on deposit in the First Nat ional Bank, LeavenAvorth, Ivans., representing an unex- pended balance of funds received up to November, 1878, on account of earnings by prisoners' labor and sales of manufactured articles, &<•., was covered into the Treasury. The prison earnings, &c., had been used prior to November, 1878, towards defraying the expenses of the prison, but, as it appeared on examination at that time that the law did jiot give specitic authority for such disi>(»sition of the funds, steps were taken to obtain legislation u]»ou the subject; the elf(u-t, however, was unsuccess- ful, and the balanuartermaster\s I)e])artnuMit by charging against it a per diem for skilled and unskilled hibor, ami the work of tin; prisoners, except that employed upon prison Iniihlingsand grounds (including the cultivation of a farm), was (Urected to the manufacture <»f Army supplies and other work for the Quartermaster's Department. The commissi<»ners of the i)rison hav(! visited and iusi)ectearlm«'nts, e.MMy lliree nu>ntlis, and the iiieijical diieetor of the l)ej)aihnenl of the ^Missouri has made a monthly inspection. The fact that tin' «mi- tire. management of the institntion has l)e(Mi f(»und sat isfactory at all times under this unusually clost^ scrutiny, is good evidence of the coni- l)etency of its ollicers, [»articularly the governor, to whom, without a 366 PAPERS ACCOMPANYING TMK Kinjjle rospivation or oxcejttioii, all officers whose duty it has l»een to note, oi- (lireet the conduct of iilfairH at the prison give the very highest coninuHKhition. A l)rief stntonu lit of the work diirlng the fiscal year ending June 30, IS.SU, is tiikei) from the ie]>ort of the governor of the ])rison, as follows: Mamifartiired for th('('))narterinaster's Department, 33,113 pairs of boots, 18,!)!)(i pairs of shoes, 30,0()() corn brooms, 2,230 barrack chairs, 118 sets of ciiair rods, it K) extra i)arts of chairs, 1,292 packing boxes, 130 crates, 127 sets ol' tour-mule ambulance harness, 13(5 sets of'six iiiule wagou harness, 110 single sets of wagou harness, and 310 suits of citizeu cloth- ing for issue to prisoners on discharge.- Besides this work in the shops a large brick store-house 30 by 80 feet and two stories high, a new set of otiicers' quarters, and a new stable were erected; 420 feet of curbing set, and 1,500 feet of stone coping laid upon the prisou wall; 00 acies of ground cultivated in potatoes, coru, cabbage, and a variety of vegeta- bles — all by prisou labor, under the foreman employed. A great amount of miscellaneous Avork and repairs was also accomplished in the same manner. The work performed for the Quartermaster's Department was 55,001 days of skilled and 70,174 days of unskilled labor, amounting in money- value to $24,350.10. The number of ])risoners in confinement June 30, 1881, was 447. There were received during the year, 348, and lost by discharge, i&c., 342, leav- ing 453 in confinement June 30, 1882. Transfers to the prison were suspended in June last, because of lack of room to accommodate more than 450 prisoners during the hot season with safety to health. This suspension detained i)risoners for a few weeks at the military posts in several departments, but increased accommodations, which were iu course of construction during the summer, having lately been completed, the transfers liave been resumed. The health of the prisoners has been excellent, considering the class of men brought together; for a large proportion have led wild lives, and become more or less addicted to habits which must produce ill effects upon the i)hysical constitution. But one death occurred during the year, and that was from disease which existed before the man was received at the prison. The most careful attention is given to the preparation of the food, and cleanliness of body is enforced by frequent bathing. The reformatory features of the institution may properly be consid- ered under two divisions: First, the general habits of the men; and in this there is uudoubteositions, they could only do so l>y neglecting some of ttie important and re- sponsible public diiMes so absolutely essential to the well-being und ediiiem-y of their respective commands and the best interests of the service and government. Instances could be cited of olhcers win), ratin-r than \ ioiate the, section named, have conscientiouslv abstained from the employment of thi-ir men in ]>reparing their food or caring for their auimula, and Uave thMmselvcB performed theue duties. It is uofc 368 PAPERS ACCOMPANYING THE l)cliovc(l lliat. CoiigusH c(iiitciiiiil:i,tt;d sik^i a conditiou of aftaiiR, and I siucorely hope an t'tilbrt Avill lu; made lo()lort on the subject ot "clerical duty in the Army," and my conviction that the advantages resulting from the employment of civilian clerks at the several military headquarters would be, tis indicated in that rei)ort, economy, 'benefit to the Army, and greater efticiency in the performance of the ckn-ical work. The rapid increase in the niunber of calls from Ihe Pension C>llice for information from the rolls in connection with chiinis for pension, and the utter inadequacy of my force to x)repare and make reports as promptly as, in my opinion, simple justice to men who had periled life and limb in defense of the government imperatively demautled, led me REPORT OF THE SECRETARY OF WAR. 369 to urgently lequcst an tncre.ise of clerical force in numlters siifticient to partially coriTesi)oiul with tlie lar^e uuiaber of additional clerks de- manded by the Pension Oflice, and the law above cited authorized the employment in my office of 1.38 clerks "to be exclusively eiiffaged iu l)reparing and making reports to exiiedite the settlement of pension ai)plications and soldiers' claims." The present clerical aud other force is as follows: Chief clerk 1 Clerks of chuss four 24 Clerks of class thrc30 ;{5 Clerks of daws two (37 Clerks of class one 354 Clerks of §1,000 .'.' i^ Messengers 5 Assistaut messengers r>l Watchmen 'j7 Laborers . ;{ Total 583 In view of the scattered condition of tlie records of this oflice, large masses being, of necessity, stored in buildings totally unsuited for their reception and safe keeping, the fourth story and attic of the south wing of the State, War, and Kavy building — assigned by Congress to the . War Department — were turned over to me for the accommodation of the valuable records aud large clerical force connected therewith, which for years have been located in a large double wareliouse on Xew York avenue, below Seventeenth street. Energetic measures were at once taken to eflect the transfer, and 1 confidently expect it will be completed within a few days. The extent of this laborious work, i^erfonned with general alacrity and good-will, will be the more readily appreciated when I state that the records in question — regimental and comjiany record lK)oks — number upwards of o5,000 thin folios. The absolute necessity for a quick trausfer, the largo inliux of men unacquainted with the min.ut'KD of xVrmy records, and tlie consequent necessity devolv- ing on the older clerks to devote much time to their instruction, have prevented the attainment of the highest results. The following table exhibits the labors of the enlisted volunteer pension branch and of other divisions of the oflice engaged iu business relating to claims for pen- sion, bount}', liomestead grants, &c.: Stxttcment of calls from the Commmioncr of Peni^ions, Second Audi lor, ,\'c.,for full or par- tial histories of officers and men of the late volunteer forcvn in connection with claima for 2)enision, bounty, backimy, subsintejice, land clainm, lost horses, 13. 323 3, 078 l.dtO 1.793 105 50 TotAl 5.024 15,031 20. 055 18,041 2 014 24 Ah 370 PAPERS ACCOMPANYING THE Staiement of caUr,from the Commisaionrr of Fensions, Second Audilor, 4c- — Continued. On liaiid Ortoli.il, 18S1. Tlooeivp/l during tbe year. Total. Tiiiiehed during year. On hand Octfibev 1, 1882. TIIIKI) AinuTon. 5 305 310 291 10 OEXIsnAL LAND OFflCB. 1, 683 3 3,747 11» 5, 4:!l) 122 4,778 118 652 4 To t al 1,686 3, 866 5,552 4,896 656 BUnpiSTKXCE T)KI'A KTJriCX T. Enlisted vohmteer pension braiicli 1,459 906 4(1 2, 365 43 1,908 42 457 1 Total 1, 4H2 946 2, 4i)8 1,050 458 I'AY DErAKTMEXr. 697 607 696 1 EEQAPITULATION. Number of calls from all sources : Onband October 1, 18S1 •. 23,748 Keceived during tbe year 176, 351 200, 099 Fiuisbed during tbe year 154, 277 Kemaining on baml October 1, 1882 45,822 In conclusion, it ftives me much pleasure to state tbat the business of the office duriug the past year has been discharged satisfactorily, and to bear testimony to the general efficiency and faithfulness of my clerks. The accompanying table gives a general exhibit of the work jier- formed, omitting, necessarily, the higher class of duties, which cannot be tabulated. Eespectfullv submitted. K. C. DEUM, A (Iju ta lit- General^ Hon. Robert T. Lincoln, Secretary of War. REPORT OF THE JUDGE-ADVOCATEGENER^L. War DEPART3IENT, Bureau of Military Justice, October 21, 1SS2. Sir: I have the honor to submit the following report of the business of this Bureau for the year ending Septeuiber 30, 18S2: Number of general court-martial records of trials received, revised, and recorded. I, 854 Number of re])orts made and opinions rendered upon conrt-martial proceeding.s, applications for pardon and. mitjoations of senteuces, and upou miscellaneous questions of law referred to tliis I3ureau 891 Number of tran.scripts of proceedings of courts-martial furnislieil the Pension Bureau and Treasury Department t^61 (But a large number of searches for data have been made on personal REPORT OF THE SECRETARY OF WAR. 371 application of the Adjutant-General and the Treasury Department not included in the above.) Number of copies of records furnished parties, as required by the 114th Article of War, 238, contaijiing 9,loG pages. Tlie number of records of trials of enlisted men tried by inferior courts- martial (garrison and regimental) received and filed in the departments in which such courts were held, as reported by Judge- Advocates of De- partments, is enumerated as follows: Department of Arizona (no report rendered). Department of California - -...- 476 Department of tbo Columbia 8'Jl Department of Dakota 1,'J73 Department of the East 1, 122 Dei)artment of the Missouri 2,146 Department of tlio Platte I,'.i7r> Department of the South .302 Department of Texas..-. 1,220 Total 8,795 In my last annual report I adverted to the law organizing and pre- scribing the duties of the Bureau of Militaty Justice and the Corps of Judge- Advocates, the various military tribuiutls, together with the wants and necessities of said Bureau with respect to its persounel and materiel. Of the force of clerks estimated for — over and above the small force allowed in the past fiscal year — to take the place of two Judge- Advocates relieved and assigned to duty in Departments, and to assist in claims and pension searches, &c., but one clerk of class one was al- lowed, and the three copyists hitherto emi)loyed in this Bureau were reduced in number to one ; the consequence is that work now in the office which ought to be attended to within a reasonable time must be delayed indefinitely. Applications for copies of records, some of an urgent nature, now awaiting attention, would require the employment of three clerks for more than six months, even if no more applications for copies were received in the mean time. AYith but one coi)yist to do this work, the inconvenience to parties is apparent. In my previous rei)ort the necessity of amending the Articles of "War in certain particulars was j)ointed out and recommended, which recom- mendation is here renewed. Considering that no writ of error or ajtpeal lies to the sentence of a court-martial under our laws, and that the Judge-Advocate-General is expected to correct irregular proceedings of courts-martial, his duties, powers, and authority over these tribunals should be more clearly defined by law. The course now i)ursued when a case is found so defectively tried, or where the law has been evidently misapprehended to the prejudice of tlie prisoner, or where the evidence is not deemed sullicient to establish his guilt, and where substantial justice has not been done, is to submit a report of the case to the Sec- retary of War, witli such reciommendations as the interests of justice may demand, when the functions of this Bureau cease in the i)articular case. The President (and the Secretary of War, by section ] 351 of the Revised Statutes) may pardon or mitigate tlie sentences of militaiy convicts, but they have no corrective power or aulliority conferred by law over courts- martial proceedings, except where the court has been appointed by the President. Large numbers of applications for mitigations of the sentences of military courts are referred here for rei)ort. These api)]ications find their way to this Bureau, sometimes direct liom the prisoner or his 372 PAPEPtS ACCOMPAKYING THE friends, or tbroufrh tlio Secretary of War, or the Afljiitant-General. Some are in llie Ibnii of ]>etitions iiiMler cover of the iiidor-senient of a member of Coiij^re.ss. This Bureau makes up a full njport in the case from the record of the trial filed therein, statinj^ the nature of the offence, the circumstances connected with its commission, the sentence iui])osed, and a brief opinion on the merits of the whole case as presented in the application for clemency, and as a])pears from the record of the trial. This Bureau is then required to transmit its re- l)ort to the Adjutant-General, who is presumed thereupon to submit it to the Secretary of War. Formerly such reports were submitted direct to the Secretary of War by the Judge- Advocate-General, but latterly the practice has varietl and alternated between the Judge- Advocate-General and the Adjutant-General. At one time the Adju- tant-General was required to refer such information as the records of his office contained in the case to the Judge- Advocate-Genenil, who would then report and submit the case for the consideration of the Sec- retary. This was the more reasonable and logical rule, for the Adjutant- General has merely the custody of the documents evidencing enlistments or engagements to service, while this Bureau has not only the.se data in the case (which are always established at the trial), but the entire record of the conviction. Under this rule neither the Adjutant-General's Office nor this Bureau was subordinate to the other, and action was secured in the light of all the attainable facts in the case, and with no unneces- sary delay or circundocution. I desire, also, in this connection, to invite attention to the following: The recent regulations for the Army, com- piled by the Adjutant-General, contain the following at paragraph 874: Commnnications relating to military justice or proceedings of military courts, upon which the opiuion of the Judge- Advocate-General is desired, will be forwarded through proper channels to the Adjutant-General. The prior regulation on this subject is as follows All communications pertaining to questions of military justice or the proceedings of military courts and commissions, throughout the Armies of the United States, must he addressed to the Judgc-Advocate-General. This prior regulation was originally i)romulgated in general orders to the Army, but subsequent thereto, and quite recently, a circular or letter changed the rule as now embodied in the regulation above quoted. It is difficult to understand why such communications should be ad- dressed to the Adjutant-General rather than to this Bureau, where all the data in such matters are filed. Further, there is no good reason apparent why the Adjutant-General should be troubled with subjects over which he has by law no powers of revision or control, a course necessarily leading to delay, confusion, and increased labor, without any possible beneficial results. Nothing but the great importance of the subject impels me to thus advert to it. It deeply affects the country at large, in view of the great number of unfortuu;) te young men who enlist and fail as soldiers in time of peace, and thus fill the military prisons of the country, leaving in numerous cases dependent wives, children, par- ents, and other relatives, whose piteous appeals for the release of their friends are constantly being made. Most military oflfeuders are not of the felonious or vicious class; the great majority being sim])ly deserters, the offence of desertion, in time of peace, being merely a breach of con- tract for personal services, but to which the law attaches criminal lia- bility. Men enlist, and tind the service to be totally different from Avhat they imagined it to be. They find that nothing substantial can be spared for the assistance of dependent relatives, and at the first favorable opportunity abandon the service. The penalties now usually REPORT OF THE SECRETARY OF WAR. 373 awarded for desertion — from two to live years' bard labor in prison with dishonorable discharge, forfeiture of all pay, &c. — are too severe for this class of men. But while this is so, there are others who are known in the Army as chronic deserters, who are constantly vibratinjf between the company and tlie military prison. Such characters should be more severely dealt with and means devised to effectually exclude them from the service. The ordinary offence of desertion in time of peace is, in n)y judgment, gen- erally too severely punished in our service. The severity of the jjunish- ment is clearly not projjortioned to the criminal nature of the offence. But why should this be necessary in our Army in time of peace, when recruits can so readily be procured and retained in the service? The great railroad and other corporations in the country which employ many thousands of men rarely or never lose their men through denertion^ but the employment, though often severe and hazardous, is sought, and, when procured, retained. Hervice as a soldier in the Army should be sought by able-bodied and vigorous men as a calling leading to honor and re- ward, instead of one from which such men llee by the thousand annually. There must be some detect in our military system, otherwise this would not occur. The pay and allowances of a soldier are about those of the ordinary unskilled laborer. It is believed, however, that a larger num- ber of the artisan class enlist than of the unskilled labor class, but these soon realize that the pay is insufficient, and that the service is not just what was anticipated: hence they abandon it. In my judgment, while the pay as now tixed is ami)le for some, yet for the greater part of the enlisted men of the Army it is lusufiQcient. I think a measure, if adopted, of a regular increase of pay fi'om year to year for faithful services which at the end of five years' service would make the pay of a soldier, say, cwenty-five or thirty dollars per month, would secure to the service trained soldiei's, and, all things considered, at a cost greatly less than that incurred by the present system. Again, it is found that men en- list and desert either at the recruiting rendezvous or soon after reach- ing the depot for recruits. It would be well, therefore, in time of peace, to establish a probationary term for the recruit; that is, upon enlistment and transfer to the dei)ot, if he finds, upon considering his new relation, that he would prefer his discharge, to grant the same upon his paying expenses, &c., incident to his enlistment. This would protect the gov- ernment and save the country a citizen. It is believed that a soldier in time of peace, nndcr proiyer restrictions, should be accorded the right to buy his discharge from the service, by paying the necessary expenses and charges incident to his enlistment and assignment to a regiment. This principle was indeed recognized even in the emergency of a time of war by the statntes authorizing persons drafted feo furnish substitutes. I refer to this only as it relates to the question of discijjline through judicial proceedings and of pardons, questions on which this Bureau is required to act under the law and regulations. The views of this Bureau on the Article of War limiting prosecutions as to time are briefly mentioned in thc-annual report of the Judge-Ad- vocate-Geueral for the year 1879, in which he said: I scarcely nec^l a,i;ain reiniud the hoii(iral)le Secretary of tlm Hiiin;iilar anomaly dwelt upon by me in foruier re})or(s, that wliilo llio prosocntioii of all other nulitary crimen is admitted to be limited by the exJKtinp article to (hu])tri(nl of two vearH therein pre- Bcribed, the crime of desertion has bfen heretofore held and treated by the majority of commanders in the Army to be practically uinxtleeted by the linutation, so that a deserter may be brouj^ht to trial at any time after his ollence, or, in other words, remain liable to arrest and pnnishment to the end of his lifo. Thus, under this doctrine and practice, a soldier of the war of 18I'J, who may have dosorted and be still alive, may 374 PAPERS ACCOMPANYING THE at any moment Lo apprehended, tried by coiirt-martijil, and 8cn(eiiced to a term of imprisonnieut, tliouffll by an cxempliiiy and valuable life of inoni (lian half a century he may ha\'e .atoned over and over for tlu; d< r(Oi(;l,ii)n of liis youth. In otlicr words, he remains nnder a liability from which a soldii^r guilty of mutiny or cowardice in battle, or a civilian guilty of manslaughter, robbery, rapt;, arson, or high treason, is exempt under the existing law of the laud. Au4 in Lis report of 1880 lie says: In conchision, I would refer the Secretary of War to the very reccTit decision of the United States district court for the sotitheru district of New York, in the case of Thomas Davison, on habeas corpus, in which the views heretofore expressed by me and my pred- ecessor in office, in regard to the subject of the limitation of ])rosecutiou in ca.ses of desertion, are sustained most fully and explicitly and in every separate paiticular. Tlie following is a copy of the decision referred to in the report of my predecessor: United States district court, southern district, New York. In the matter of Thomas Davison on habeas corpus. Choate, J. : The petitioner, Thomas Davi.son, seeks to be discharged on habeas corput. He has been arrested as a deserter from the Army, and is contiued at Fort Columbus, Gov- ernor's Island. It appears by the return that he eulisted in New York on the 28th day of July, 1870, for the term of five years ; and that he deserted while on furlough on the 14th day of February, 1872 ; that he was arrested as a deserter and brought to Fort Columbus on the 21st day of October, 1860, and that the prelimiutvry steps have been taken by the proper military officers to have him brought before a general court-mar- tial for trial. It appears » * • that at no time since the 14th day of Febrnary, 1872, has he been absent from the United States, but, on the contrary, has always re- sided continuously in the city of New York, Avhich is the jjlace where he is alleged to have committed the offence and where he was arrested. The prisoner's release is claimed on the ground "that more than two years have elapsed since the commission of the alleged offence and before the issuing of an order for his trial, and that therefore he is not legally liable to be arrested and held for trial as a deserter." * * » The one hundred and third Article of War (Eev. Slats., § 1342) provides that "No person shall be liable to be tried and punished by a general court-martial for any of- fence which apijears to have been committed more than two years before the issuing of the order for such trial, unless, by reason of having absented himself, or of some other manifest impediment, he shall not have been amenable lo justice within that period." It is insisted on the jiart of the respondent that by "absence" is here meant absence from the post of duty, and that this article has no application to desertions. It is certainly a startling proposition that there is no limitation at all upon prosecit- tions for the olfence of desertion ; that one who has once been a deserter is subject during the whole of his natural life to be brought before a military court and tried and punished for this offence even in extreme old age. Y'et this is seriously contended by the learned counsel for the respondent. The statute does not require, nor in my opinion admit of so strict and narrow a construction. There is nothing in this article itself clearly indicating that it does not extend to every military olfeuce. As it is the only article limiting the time of prosecutions, the presumption is very strong that it extends to every militarj^ olience ; for, with the single exception of the crime of mur- der, the almost universal policy of the criminal law is to prescribe a term within which the oft'ender shall be brought to trial. The language of this statute of limita- tions must be construed with reference to the use of similar language in other statutes of limitations. The "absence" here intended is obviously from the context such an absence as interposes an impediment to the bringing of the oifender to trial and pun- ishment. It means absence from the jurisdiction of the military courts; that is, ab- sence from the United States. The "other manifest impediments" referred to in the statute as being such as shall have |ffevented the oifender from being amenable to justice, are such impediments only as operate to prevent the military court from exer- cising its jurisdiction Over him, as, for instance, his being contiuuously a prisoner in the hands of the enemy, or of his being imprisoned under sentence of a civil court for crime, and the like. This seems to me to be the sensible and proper construction of the article. It is the construction which has been frequently given to it by the Ex- ecutive department. (1 Opin. Atty. Gen., 383; 13 id, 4G2; 14 iV?., r>2; re Harris, 14 id., 26.").) Nor as it seems to me can the whole effect of the limitation be taken away on the theorj^ that the desertion may be considered for some purposes to be a continu- ing offence. The offence was complete February 22, 1872, for the purjiose of this article, and indeed in the return that is alleged to be the time when the offence was commit- ted for which the prisoner is now held. * EEPORT OF THE SECRETARY OF WAR. 375 Upon the nncliBpute 1 fafts of the ease there was neither ahwiice nor other iiii])e(li- ment to lii.s proseeuiion within the uieuuiiifi of ihe statute. Tiie ]>risoner li;us at all times heeu within the jnriMli.tiou and auien;i!)!e to justice if the eharjje aiuMiuHt hiui is true. Therefore lu; i.s entitled to 1»« e so construed with reference to each other. The first clause of the forty-eighth Article of War relates solely to the ])unisliment that may be inflicted on a deserter; that is, making good lost time, and is not inconsistent with the limitations of the one hunured and third article. Yet the requirement to make good lost time cannot in strictness be considered as a pimish- ment, but rather a j;er/brma?ice of that which the soldier solemnly agreed to perform by his contract of enlistment. The second clause of the forty-eighth article — providing that the soldier may be tried and pun- ished tliougli his original term of enlistment may have expired — fixes the point of time from which the limitation of the one hundred and ^ third articleshall begin to run, namely, from the expiration of his original enlistment (unless the soldier shall have in the mean time been amenable to justice), because the article says that the soldier may be tried and punished for the desertion, although the term of his enlistment may have elapsed i)revious to his being apprehended and tried. Desertion, then, is a continuing ofi'ence during the enlistment. Beyond its expiration it is subject to the limitation fixed by the one hundred and third article. The opt)osing views upon this constraction of the article referred to are as follows : It is not reasonable to suppose that tlie act of April 10, 1806, Tras intended to render llie luandalory act of Marcli 1(J, 1802, inoperative and ineffectual, nor is it credible that Congress should deliberately interpolate a law vrhich should so conflict with other laws as to render a comijliance Avith either practically im- possible. It is not reasonable to suppose that Congress created the one hundred and third Article of War as a convenient plea in bar of trial to prosecutions under the forty-eighth, nor can it be so regarded by the Executive Department in the administra- tion and execution of the law. That is, according to this reasoning, the forty-eighth and one hundred and third Articles of War are irreconcilable and cannot stand together. This view, it is claimed, is supported by the following reasoning and authority; On the contrary, according to Mr. Justice Blackstone (Vol. 1, p. 91), "If there arises out of a slatate any absurd consequences manifestly contradictory to common reason, they are, with regard to these collateral consequences, void": and in the case of Ogden rs. Strong (2 Paiue's U. S. Rep., 584), it is announced as a settled principle of law, that in the construction of a statute every part of it must be viewed in connec- tion with the whole, so as to make all parts hf»rnionize if practicable, and give a sensible and intelligible effect to each ; nor should it be presumed that the legislature meant that any part of the statute should be witliojit meaning or without force and effect. Plainly this rule of construction does not support the reasoning of the other side, but just the reverse. While the law is thus plain it is the 2iractice and procedure under it that are found to be the most embarrassing. I think, however, the principles underlying the one hundred and-third article m the matter of pleading iiiid2)ractice arc truly stated in the foilovrnig reports of this Bu- reau : BcsEAiT OF Military Justice, Augmt 2, 1881. Prisouer Charles A. Fisher, late r)th Infantry, was brought to trial in April last at Fort Keogh, M. T., for desertion eomniittcd July ^, ISTt. REPORT OF THE SECRETARY OF WAR. 377 He pleaded in bar the oue hundred and third Article of War, averring in support thereof the following facts: " I have been absent from niycommand two years and five months ; have never during this period been to a foreign country; have never left the United States or its territories. I have in fact never left this department, and have on many occasions been among various delachmenrs, troops, and comi)anit's of thi.s command, I being employed either on the extension of the Northern Pacitic Railroad or in carrying or guarding the United States mail between this post and the city of liismarck, Dak., and have tht^reforo always lieen amenable to Justice had I.been ar- rested. Should it be necessary to substantiate the above statements in regard to my ^vhereabouts, I am able to reler to several commissioned officers and a large number of enlisteii men of thi.s command." Thus the prisoner fairly raised the issue of his non-amenability to trial under the one hundred and third Article of War, and was ready and willing to prove it, but the court would not permit him to do so, and immediately overruled his pica, whereupon the prisoner pleaded "guilty," and upon conviction wassentenced to dishonorable di.s- chargo, forfeiture of all pay and allowances, and to confinement for two yeare. The proceedings and sentence were approved and coutirpied by the department commander and were duly transmitted to this office. The bar of the one hundred and third Article of War is like any other defence before a court-martial. If the prisoner would avail himself of its benefits, he must plead it and prove it, or he may prove it on the general issue of "not guilty," without specially pleading it, and if the court believes from the evidence adduced that the ofi'euce was committed more than two years before the issuing of the order for the trial, and that the prisoner was anieuablo to justice within that period, that is, if the military au- thorities by reasonable diligence might have arrested him and brought him to trial ■within the lapsed period if they would, then the trial should be held to be barred' A>ithin the meaning of the one hundred and third article; if otherwise, the plea of the prisoner should be held for naught. The obligation of proving anj* fact lies upon the party who substantially assorts it. Now, if the limitation of the one hundred and third Article of War was so incorpo- rated with the oflence of desertion, as defined by the forty-seventh Article of War, that the ingredients or essential allegations of the oflence could not be accurately and clearly described if the limitation or exception is omitted, the specification must allege enough to show that the accused is not within the exception, in which case the burden of ])roof, showing that the prisoner was not amenable to justice within two years, would lie on tho prosecution, because it was bound to allege it. But as the language of the forty-seventh Article of War defining desertion is so entirely separa- ble iiom the provisions of the one hundred and third Article of War that the ingre- dients or essential allegations of the otlence may be accurately and clearly defined without auy reference to the last-named article, tho charges founded on the forty- seventh article may omit any such reference, and the matter contained in the oue hundred and third article is matter of defence aud to be shown by the accused. The same may be said of every other Article of War defining crimes and punish- ments, where the bar of the one hundred aud third article is to be considered. That article is separate and distinct from each and all of the articles defining offences and ]junishnient8. In United States vs. Cooke (17 Wallace, 168), it is held in a prosecution under section 16, act of August 6, 184G, providing against embezzlement of public money, that if the defendant would avail himself of the limitations to trial, &.c., provided by section 32, act of April 30, 1790, the exceptiou must be sVown by him. The court held that where a statute defining an oflTence contains an exception in the enacting clause of the statute, which is so incorporated with tbe language defining the ottence that the ingredients of the ofience cannot be accurately and clearly described if the exception is omitted, an indictment founded upon tho statute must allege enough to show that tbe accused is not within the exception. IJut if tho language of the .section defining the offence is so entirely separable from the exception that the ingredients constituting tho offence may be accurately and clearly defined without any reference to the excejition, the indictment m:iy omit any such reference. The matter contained in the exception is matter of defence and to be shown by the accused. No exception or provi.so of any kind is contained in [section 16] the act of Congress of August 6, 1*54(3, and therefore the court held tlial the excejition of limitaf iou to trials prescribed by the thirty-second section of tho act of April 3U, 17UU, was matter of defence to be shown by the accused if ho would. The sections of the acts of I7'J0 and 1846 referred to are embraced in $$ 1044, 1045. .md r)491 of the revision; and in this connection the operation of ^^ 1044, 1045, on prosecutions under ^ T^lDl, i_s deemed to be analogous to prosecutions uiuler the forty- seventh Article of War, as limited in time by the oue hundred and thii'd article, and the same principle of inocediu'e would apjjly as near a« may be iu both cases. 378 PAPERS ACCOMPANYING THE No uniform nilo of i)rocp by satisfactory evidence the cx.act whereabouts of the deserter during absence; and if lie undertook to do so the expense of the investigation would be so large as to virtually defeat th<', ends of justice. Ilow, then, should the matter be aacertaiiu'd but by the showing of the party accused 1 He must be the best informed as to his whero- al>outs during his absence; and upon that showing — giving the prosecutor the right to reply — the court should detcrjuiue whether or not he was amenable to trial during the lapsed period. On the other hand, the party pleading or setting up the bar of the one hundred and third article must show that he is not within the exception contained in tluit article, bccanse it i.s so associated with the general lan- guage iixiiig the limitation tiiat it must be negatived by the jth'ader ac- cording to the rule stated in United States vs. Cooke, cited below, to the eflect that — where there is an exception so inc.cu-poraled with the enacting clause that the one cannot be read without the «»tlier, then tho excejition must he negatived. The whole of the one hundred and third article, it will be seen, must be read together in order to nny of the proceedings and sen- tence of such court. What constitutes the proceedings and sentence of the court to which a party is entitled to a copy ? I am of opinion that it must mean all that occurred before the court, set down in the record, as well as the action of the officer authorized by law to approve and confirm the pro- ceedings and sentence, together with the reports of all other otficers required by law to revise or i)ass upon the legality of the proceedings. The Judge-Advocate-General is directed by law to revise the pro- ceedings of all general conrts-martial. It is plain, therefore, that the report of the revision of the Judge- Advocate-General in a ease is as much a part of tlie proceedings as is the action of the court or the offi- cer who approved and confirmed the sentence in the first instance. Nevertheless, the reports of revisions of the Judge-Advocate-General are now considered confidential in tlieir nature, and parlies trietl are not permitted to receive copies of the same. W^hile this is so, these REPORT OF THE SECRETARY OF WAR. 381 reports are authorized hj the Secretary of War to be printed and pub- lished for distribution in the form of a digest. When it is eonsidered that in most, if not all, trials by general courts-martial a number of is- sues are presented, and tliat rarely the ease is summed up on the law and the evidence until it readies the Judge- Advocate-Gejieral, it seems like a denial of a substantial right to refuse to parties tried copies of such rei)orts. The officers of the corps of Judge-Advocates are stationed as fol- lows : Maj. Guido N. Lieber, on duty in this Bureau. Maj. William Wintlirop, Military Division of tuo Pacific and De- partment of California, Presidio of San Francisco, Cal. Maj. H. B. Buruham, Headquarters Department of thePlatte, Omaha, Nebr. Maj. Thomas F. Barr, in the Office of the Secretary of War. Maj. Herbert P. Curtis, professor of law. Military Academy, West Point, N. Y. jMaj. Henry Goodfellow, Headquarters Department of the Missouri, Fort Leavenworth, Kans. Maj. A. B. Gardner, Headquarters ^Military Division of the Atlantic and Department of the East, Governor's Ishind, New York Harbor. Extracts from the re[)orts of Ju, 1881 5,443 97 A])|)ropriations lor tlie lisral year for service of the Quartermaster's Dtliartnient were, in j-ross 10,809,000 00 ' Api)n)i>riati<>n for payment of 50 i)er ceutuni to laud-f;;rant railroads, I'or trans))(irt;ttion.' 12"), 000 00 Ap|>roprial ions forservieoof tlio Quarleriiiaster's Department (act ap- proved March :!, 1881) 3G4, 925 84 Aiuoiints deposited to crt.'dlt of appropriations and received from sales to olilieers of public property 559, 016 02 Total i:{,G28,(i81 67 Rcmittancf^s to disl>iirsiiikins, assistant quarteiniaster-general, ciiief quartermaster Military lJi\ isiou of the ^lissouri, and in charge of depot at Chicago, III. Col. James A. Ekiii, assistant quartermaster-general, in charge of the general depot of the Quartermaster's Department at Jellersonville, Ind., and disbursing officer of the Quartermaster's Dei)artmcnt at Louis- ville, Ky., also in charge of the National Cemeteries in Kentucky and Tennessee, and the investigation of claims presented under the act of July 4, 18(U. Col. Kufus Saxton, assistant quartermaster-general, chief quarter, master oNIilitary Division of the Pacitlc, and Department of Califoriiia- Prcsidio of San Francisco, Cal. Lieut. Col. J. D. Dingham, deputy quartermaster-general, chief quar- termaster Dcpartmeiit of the Missouri, Fort Leavenworth, Kans. Lieut. Col. A. J. I'eny, deputy quarteriuaster-general, chief quarter- master jVIilitary Division of tlie Atlantic and Department of the East, Governor's Island, New York Harbor, to May 1, 1882. From May 10, 1882, on duty in rhisofiicein charge of the finance, clothing snp])ly. and insi>ection branches, and of the examination of ofiicers' accounts and re- turns. Lieut. Col. n. C. llodges, deputy quartcrmaster-generai, chief quar- termaster Department of Arizona, Whijjple Barracks, Ari/., to ]\Iarch 29, 1882. From April 10, 1882, in charge of the general de])ot of the Quartermaster's Department at New York City. Lieut. Col. J. G. Chandler, deputy quartermaster-general, on dutj* in this office in charge of the transi)ortation, regular sup[diee, and mis- cellaneous claims branches. Lieut. Col. "William JMyers, deputy quartermaster-general, chief qufu- termaster Department of Dakota, Fort Snelling, ]\Iinn. Lieut. Col. C. G. yawtelle, deputy quarteru)aster-general, chief quar- termaster Department of the South, to April 20, 1882. From 3Iiiy 1, 1882, chief quartermaster ]\Iilitary Division of the Atlantic, and Depart- ment of the East, Governors Island, New York Harbor. Lieut. Col. J. J. Dana, dei)uty quarternuister-general, in charge of in- vestigation of claims in Tennessee, at Nashville, Tenn,, to April 1, 18^s2. From April 20, 18S2, chief (juartermaster Departnu'ut of the South, Newport Barracks, Ky. Lieut. Col. R. N. Batchelder, deputy quartermaster-general, in charge of the general artraeiit, and of the office of National Cemeteries at Washington, U. C, to May 31, 1882, and from that date in charge of the claims brau(;h in this office. Maj. C. A. Eeynolds, quartermaster, disbursing quartermaster at Buffalo, N. Y., to February 2, 1882, and since on leave of absence and awaiting orders. Maj. G. B. Dandy, quartermaster, chief quartermaster Department of the Columbia, Vancouver Barracks, Wasli., to May 1, 1882. From May 25, 1882, in charge of the quartermaster's depot. Saint Louis, Mo. Maj. George 11. Weeks, quartermaster, in charge of quartermaster's depot. Fort Leavenworth, Kaus., to April 11, 1882. From INIay 5, 1882, in charge of the general depot of the Quartermaster's Depart- ment at San Francisco, Cal. Mi\j. W. B. Hughes, quartermaster, chief quartermaster Department of Texas, San Antonio, Tex., to May 11, 1882. From May 22, 1882, in charge of transportation at the Philadelphia depot, Pa. Maj. A. G. Robinson, quartermaster, disbursing quartermaster Dis- trict of Montana, Helena, Mont. Maj. E. D. Baker, quartermaster, in charge of quartermaster's depot Saint Louis, Mo., to xlpril 15, 1882. From May 1, 1882, chief quarter- master Dei)artment of the Columbia, Vancouver Barracks, Wash. Maj. J. (t. C. Lee, quartermaster, chief (juartermaster District of New Mexico, Santa Fe. N. Mex., to Decend>er 3, 1881. From Decem- ber 23, 1881, to January 22, 1882, temporarily in charge of quartermas- ter's depot at Saint Louis, Mo. From February 2 to April 20, 1882, dis- bursing quartermaster at Buffalo, N. Y. From May 11, 1882, chief quartermaster Department of Texas, San Antonio, Tex. Maj. James Gilliss, quartermaster, quartermaster of the Aiiillery School, and post quartermaster Fort Monroe, Va. Maj. T. J. Eckerson, quartermaster, in charge of quartermaster's de- pot at Boston, Mass. Maj. A. J. McGonnigle, quartermaster, in charge of quartermaster's depot, New Orleans, La., to Aj^ril 17, 1882. From ]\Iay 13, 1882, chief quartermaster Department of Arizona, Whipple Barracks, Ariz. Maj. E. B. Grimes, quartermaster, from April 10, 1882, in charge of quartermaster's depot, Fort Leavenworth, Kans. rNSPECTio:N' BI^A^'CH. This branch of the office reports the stations and duties of officers of the Quartermaster's Department, and those officers of the line and oth- cers of other branches of the staff" on duty in the Quartermasters De- partment as acting assistant quartermasters. A complete list of all officers who have served in the Quartermaster's Dei)artmeut during the year accompnuiesthe report herewith of Lieut. Col. A. J. Perry, who is in charge of this branch. There have been received during the year 146,795 general orders, circulars, and other printed documents, and 109,407 Avere sent from this office. The sum of $9,639.39 has been expended during the year for subscrip- tions to newspapers and periodicals for libraries at military posts. CLOTHING, CAMP, AND GAKEISON EQUIPAGE. The appropriation for supply of clothing, camp, and garrison equi- page, to the Army for the liscal year was $1,100,000, and the deposits in REPORT OF THE SECRETARY OF WAR. o8o tlie Treasury to credit of the ai)proprJatioii tVom sales to officers and for clothinfc overdrawn by enlisted men amounted to 899,108.28. On30tli June, 1882, tliere remained in Treasury unexpended 813,331.59. The appropriation ior the current fis<;al year is $1,400,000, all of which will be consumed in payment of existing' contracts and those yet to be made. It is estimated that the demands uj)on the dci)artment dur- ing the year will exceed the amount available for the purchase and manufacture of clothing, and camp and garrison equii)age. Strict economy will be observed in its issuCf and all surplus su])plies found at military posts will be ac(;umulatedat thedej)Ots of supj)ly,and it is hoped thus to secure a sufficient working stock to fill all requisitions promptly. Three thousand five hundred butialo overcoats, 3,520 fur caps, 6,000 pairs of fur gauntlets, and 1,000 pairs of arctic overshoes, have been pur- chased during the .vear for issue to troops at extreme northern ])OSts. ^Measures have been taken to secure a model for barrack chairs with a view to amending the specifications for chairs now manufactured and issued to the Army. The object is. to secure a lighter chair and an ijn})rovement in the design. As a protection against mosquitoes, 2,000 head-nets were purchased and sui»pli(;d to the enlisted men serving in the Department of Dakota. The lierlin gloves issued to trooi)s are now purchased by rights and lefts, and are issued in sets of three gloves, two rights and one left hand, or by number of either kind, it being ascertained by experience that in use the right hand glove is worn out when the left hand glove remains good. Information having reached this office that the white cork helmets supi)lied to the troo])s oftered a conspicuous umrk to the enemy in Indian warfare, measures have been taken to procure 1,000 helmets covered witli unbleached brown linen, which will be supplied to the troops next spring. One thousand campaign or fatigue hats of a drab color, have been l)urchased and will be supplied next spring to the troops serving in the liot climate of Arizona, Is'ew Me'xico, and Texas, in place of the black hats now worn. The enlisted men of the Army objected to the dark blue overshirt, adopted February 3, 1881, and the stock of those shirts on hand num- bering 29,314 are being changed into blouses. Overshirts of a difierent pattern, are now being manufactured and issued to the Army, which meets with geiuual favor. Specifications were adopted or amended during the year for cotton stockings, card-holders for army bunks, metallic coat,* helmet, and cap ornaments, overshirts, and helmets, and a new standard was adopted for dark l)lue shirting flannel. Under the act of March 3, 1881, the following-mentioned articles of old i)attern clothing have been turned over to the National Home for Disal)led Volunteers : 27 uniform hats ; 104 cami>aign hats; 1,470 forage cai)s; 30,082 greatcoats; 2,008uniform jackets ; 1,182 sack coats, lined ; 1,252 sack coats, unlined; 1,244 blouses, lined; 1,744 blouses, unlined ; 35,648 trousers; 706 pairs boots; 3,565 pairs shoes; 22 pairs bullalo overshoes ; 314 drawers ; 5,84() uniform coats. Clothing and equipage to the value of 8l,l»95.18 have l>een furnished, under instructions ot the Secretary of War, to Indian prisoners of nar. During the year loans of camp and ganison jquipage, principally tents i.nd llags.havebeenma(le,underautliority olactsof Congress, and by order of the Secretary of War to various organizations. The expense 25 Ab 386 PAPERS ACCOMPANYING THE to the (lepartmont on account of these loans for transportation, &c., has boon $3,079.08, and on account of loss and damage to the articles loaned $1,074.02; total, $4,75:3.10. A large nuinbor of the liospital tents in store have been in constant use since INIay last by various encampments under authority of acts of Congress. The value of those tents is about $30,000, and the wear and tear by sliipinont and reshipment and use is very great. Three hundred and fifteen of these tents were issued to the sufferers from the overflow of the ^lississippi Kiver. One hundred and sixteen have been returned to the department, 56 of which are danmged and wortliless. To the Lady Franklin Bay Expedition clothing has been issued to the value of $775.41. The following is a statement of the account between the Quarter- master's Department and the military prison at Fort Leavenworth, Kansas : « The balance due to the department from the military prison was as per last report .f967 39 Deduct errors made in the statemeut of prices charged for articles fur- nished to the prison in preceding fiscal year 79 78 Leaving the correct balance due to the Quartermaster's Department on .June 30, 1881 887 61 There was issued to the prison by this department during the fiscal year clothing and equipage to the value of. 16, 241 37 And quartermaster's stores to the value of. 1,932 12 Total $19,061 10 During the year there was returned to the Quarter master's Department by the military prison clothing and equipage to the value of $3, 469 84 The value of labor performed for the department at the prison during the fiscal year was 24, 3r)6 10 Total §32,825 94 The amount due to the military prison from the Quartermaster's De- partment on 30th June, 1882, was $1^,704.84. There were manufactured at the military prison for the Quartermas- ter's Department during the fiscal year 33,113 pairs of boots, costing $3.02i per pair; 18,996 pairs of shoes, costing $1,945 P^i" P^iii'; 2,236 barrack chairs, costing $1.29 each; and 3,000 corn brooms, costing 23| c. each. All the materials for the manufacture of articles for the Quartermas- ter's Department have been purchased by the governor of the luilitary prison, by contract, at a cost to the appropriation of the department of $132,135.'54. During the year complaints have reached this office of the quality of the boots and shoes manufactured at the military prison. Upon inves- tigation it is found that these complaints have reference more generally to the style and adaptability of the boots and shoes for use of the Armj', and changes in the patterns are now under consideration to secure a good and comfortable marching shoe. The reports received thus far of the merits of the sewed boots and shoes of the pattern recommended by the Army Equipment Board of 1880, are not favorable to their adoption for general use in the Army. liej)orts on improvement for heating tents by lueans of a stove and converting one of the tent poles into a stove pipe, designed and patented by Lieut. Charles M. Hobbs, Third Artillery, tested at two military posts, have been received, but the apx^aratus appears to be too frail to be of service in the field. REPORT OF THE SECRETARY OF WAR. 387 At the request of tlie French minister a complete set of uniform clothing of the United States Army has been furnished to Lieut. Col. Favorot de Kerbreck, of the French army, for the Government of France. At tiie request of the Manjuis de Rochambeau, one of the guests of the United States at the Yoiktown Centennial Celebration, a complete set of national and regimental colors, guidons, and standards, have been furnished to him The Quartermaster's Department is under obligations to Lieut. Theo- dore B. M. Mason, U. S. Xavy, for the presentation of certain articles of Chilian infantry equipment, Avhich have been placed in the clothing museum at the Phihwlelpliia depot, for preservation. Orders have been given for the sale at public auction of all dress caps and trimmings on hand, rendered obsolete by adoption of the new helmets, and also of 50,000 rn1)l)er blankets and 30,000 rubber ponchos. A large stock of rubber blaidiets and i^onchos still remain in store, which will be reduced by sales from time to time as the interests of the service require. A quantity of canij) kettles and mess i^ans were sold to the State of Pennsylvania at regulation prices, upon request of the governor of that State." For a more detailed report of the operations of this department, in connection witli the supply of clothing aiul camj) and garrison equi- page during the past fiscal year, 1 respectfully refer to the report here- with of Lieut. Col. A. J. Perry, deputy quartermaster-general, U. S. A., in charge of clothing supply branch of this office, and the tabulated statements accompanying it. EBGULAR AND MISCELLANEOUS SUPPLIES. AXIMALS. One thousand three hundred and sixty cavalry and artillery horses were purchased during the year, costing $181,531.24; averaging $133.48 per head. Of these there were purchased in Department of the East, 7 ; Dei)artment of the South, IG ; Department of Dakota, 210 ; Depart- ment of the Missouri, 351; Department of the Platte, 15G; Department of Texas, 107; Dejiartment of California, 318; Department of the Co- lumbia, 51); Xew York depot, 27; Saint Louis depot, 10, There were ])urchased for the Army trains 041 mules and 49 draught horses. The mules cost 888,940.08, an average per head of $138.76, and the horses $9,5(»9.0(), an average of $195.29 per head. There were sold during the year 1,913 horses and 884 mules. The h(U"ses brought 888,1*74.05 and the mules $30,343.97 : total, $124,518.02. This money is deiK)site(l in the Treasury to credit of miscellaneous re- ceii)ts, except the small sum realized from sales of horses to olhcers. The. following is a summary of the number of animals purchased, sold, died, «S:e., during the year and the number on hand June 30, 1882: .H- a o "3 •a 1) S •w • p 3 IT. a .a a, a a a '3 B l-S a eg —' ^ ^ a -o t a .a a * o e o a O Ph H 11.008 UQ 1,043 Q ^ H O Ilinsi-8 : 10,2.10 1,409 43 518 125 2, .'■.86 0.112 Mll'.CM 10, 5:t" 041 53 11, -J.) I 884 434 104 1.4.*2 0, son Oxfii 388 J'APRRS ACCOMPANYING! THE rVVA., I'OltAGK, AND sTUAW. The issues of I'lu;! (liiriu;? tho year have been 110,.'j81 cords of wood and ;i9,l»0ii tons of coa]. The issues of i'ora<>e have l)ecn 585,578 bushels of corn, 835,513 bushels of oats, 123,085 bnsliels of barley, 90,584 bushels of bran, 52,81 1 tons of hay, 21 tons of fodder, and 2,934 tons of stravr. My attention beins^ called to the provisions of bill 104, presented to the Senate at its last session, in relation to supply of fuel to officers of the Army, I addressed a letter on the subject to Uon. J. D. Cameron, U. S. Senator, dated March 20, 1882, of which the following is a copy: Sir: I have the honor to submit the following statement showing the hardship growing out of the observance of the existing law concerning the HU])ply of fuel to officers of the Army on duty with troops, and theefifect of Senate bill 104, should that bill, with amendments as proposed, become a law, as a remedy for such injustice. The purchase of fuel by officers of the Army falls unjustly upon those stationed in a severe climate, where more than the regulation allowance is required by the officer's family, since all over and above said allowance must be paid for at contract rat«s. It is estimated that twenty-four twenty-fifths of the Array is stationed west of the Mississippi River, and upon those troops of the north and northwest the burden of extra fuel must IViU. Where near a market the extra fuel required by officers would be i)urchase;(), 9ll,9r>9 39 :?G4 ncconnts, anionntiii); to (Vi, ;>(»! HO 1,242 claims and accounts were liled (lnrin5 k5 Ph 11, G91 a, 787 4,059 1, 654 03 57. 135, 114 -T, 197, 598 ("•'iitval l'iicili<; (l>'!'i"'lifi.s auil leased liues) 441 1,0»7,6»3 Total 10, 919 5,770 85, 430. 395 The cost of this service is stated as follows : Nuincs III' c'iiiii|i:inies. TJiiioii I'ncillc (ll|-,^llollCH and Ii-a.-cd linoH).. Central Paciflo (brniicliefl and leaHi-d lluea) Sioux City aud I'acitiu ° 5 C CQ . t.' - a IN Bta -"pa V us-" E? $7, 841 C8 ?i523, 236 70 810, H03 ."■•« I 83, 822 22 9L'3 80 I 1, 143 31 325, 029 13 008, 202 23 II » fc =i t. $94, 670 44 139. 874 08 1, 503 74 230, 108 SO $005, 748 82 MO. 560 40 :t. 630 94 1, 100,940 22 392 PAPERS ACCOMPANYING THE The followiiiji^ is a stalenifiit. of unsettled aceomits witli these rail- roads on ,'U)tli June, '1881', in this olhce or iu tlie Treasury Department, awaitinjj examination and adjustment: Names ol' cotniiauioB. In Qnartpr- In Treasury. master-Gen- eral's office. Total. Union Pacific Central Pacific Kanaas Pacific Sioux City and Pacific, $244, 263 34 i$l, 302, 392 35 I $1, 546, 655 69 589,298 00 I 84,818 70 ] 674,110 70 11, 651 97 64, 071 70 \ 75, 723 67 4, 491 60 i 1, 143 31 r., 034 91 849, 704 91 i 1, 452, 420 00 2, 302, 130 97 The total earnings of the Pacific railroads on account of military transportation, from their first opening to June 30, 1882, is stated as follows : Names of companies. Amount paid Amoiintcred-!-^,™??°*3'3' Amount with " " " ■ ■ "^' under , j^^j^^ under lactof July 2,' unrt.Tactof ^'''i^a-.f ^/■K''''-|? i act of May 7, I ■>««. .T„W. ,Rfi4 3,^13,3. ^.Rev.^ J878. 1864. July 2, 1864. Union Pacific !$1, 693, 360 69 '$1, 693, 360 87 Central Pacific. Kansas Pacific Sioux City and Pacific . Total. 261, 106 21 881, 184 17 3, 594 28 261, 106 29 881, 184 23 3, 594 29 2. 839, 245 35 2, 839, 245 68 $3, 199, 232 54 682, 274 07 623, 854 21 40,718 20 $771, 448 30 540, 690 23 4, 546, 079 02 1 1, 312, 188 53 Total. $7, 357, 402 40 1, 745, 17C 80 2, 386, 222 61 47, 906 77 11, 536, 708 58 LAND-GEANT RAILROADS. The $300,000 appropriated by the act of Congress approved March 3, 1879, under which law iiayments to certain land-grant railroads of 50 per centum of the amount found due them for military transporta- tion was authorized, has all been expended for the purpose indicated. Of the sum appropriated by the act of March 3, 1881, for payment of 50 per centum of the amount found due these roads for transportation during the fiscal year ending June 30, 1880, and prior years, $275,000, there remained unexpended on June 30, 1882, 813,590.94, which amount will be required to settle outstanding accounts. The act of February 24, 1881, making approi)riations for support of the Army for the fiscal year ending June 30, 1882, appropriates $125,000 for payment of 50 per centum for service rendered by these roads. Of this amount $106,651.54 remained in the Treasury on 30th of June, 1882, but will be exhamsted in payment of outstanding accounts. In the last annual report of the Quartermaster-General attention was called to the failure of Congress to provide funds for payment for serv- ices of land-giant railroads during the fiscal year ending June 30, 1881, an estimate for which had been submitted to Congress. In the act making appropriations to supply deficiencies, &c., ap- proved August 5, 1882, the sum of 125,000 is appropriated for payment of 50 per centum of the amount found due for service of certain land- grant railroads, but the law omits to designate the year for which this money is available, and section G of the same law provides that in all cases [in this act] where no year is indicated it is understood that the appropria- tion is for the year ending June thirtieth, eighteen hundred and eighty-two, for which deficiencies this act is principally intended. REPORT OF THE SECRETARY OF WAR. 393 Furtlier action of (.'oug^ress is required to make the money available for tbe ])ayment of uecouuts for services rendered by land-grant rail- roads during the fiscal year ending June 30, 1881. WAGON AND STAGE TRANSPORTATION. There have been moved by the department, by wagon, by contract or hire, and by armv trains, 20,4l'5 tons of militarv stores at a cost, as re- ])orte19,886.87. The work was done by vessels of established commercial lines, by contract, and by vessels owned and chartered by the United States. The following-named vessels are in service of the dei)artment: Steanjcr Chester A. Arthur, formerly the Henry Smith, in Xew York Harbor; steamer Ordnance, employed by Ordnance Department, in New York Harbor; steam- tug Atlantic, at Governor's Island, iSew Y'^ork Harbor; steam-tug l{»'solute, in Boston li.irbor; inopelkh- Gen- eral I^fcPherson, in San Francisco Harix)r; steam-launch Thayer, at Foit Adams, K. I.; steam-launch Monroe, at Fort Monroe, Va.; steam- launch General Greene, at Fort JMclIenry, Md. ; steam-launch Hamil- ton, at David's Island, Xew Y^ork Harbor; steam-launch General Jesuj), at Governor's and David's islands, Xew York IJarbor; steam launch Barrancas, at Fort Barrancas, Fla. ; steaii#launeh Dispatch, formerly the Chelan, at Vancouver depot, Wash.; stt-ain -launch Amelia Wlieaton, at Fort Co'ur d'Alene, J. T.; steam-launch Lillie Lee, at Fort Totten, Dak.; stfamboat (ieht ral Sherman, on the T"^i)i>i'r Missouri and Yellow- stone riveis; schoontT Matchless, at Key West and Fort Brooke, Fla. Nineteen vessels of ditlerent classes have been employed during the year by charter- at a cost of 850,127.04. The total txpcnditnre for water transportation during the year is re- port id at $200,348.40. TRANSPORTATION ACCOUNTS AND CLATMS. At the begijnting of the liseal year there were suspended and await- ing action in this otlice 537 accounts and claims for transjjortation, :iiiionnting to 81,333,087. There were receivinl during the year 1,933 claims, amounting to 82,417,813.57. One thousaml six hundred and eighty-seven, amounting to 82,053,802.10, were favorably reported for st'ttlriiicnt; 130, amounting to 8140,815,23, were r«'i)orte(i for rejection^ ;ind 04, amounting to 830,1 0.'». 78, were susjteifiled in tliis office for addi- li(»mil evidence; 581>, amounting to 81,511,020.40, were iu the office awaiting action at the close of the year. INDEBTED RAILROADS. The amount due from railroad comi>anies lor material purchasetl by them from the United States at the close of the war, not comppomised 394 PAPERS ACCOMPANYING THE or setthnl iindorsjieciiil laws of Congress, and excludinpf sums due from two railroiulH doclsired insolvent, was, on July 1, LS-SJ, -S 1 , 10(»,434,55. During tlie year interest and charges liave accrued anioujiting to $•42,401.90. Payment by military transportation during the year amounted to $1.46. The debts on June 30, 1882, amounted to $.1,148- 895.05. No credits were gi^'en to tlieso railroads on account of postal earn- ings during the year. No action ajypears to have been taken* by the executive or legislature of the State of Tennessee in relation to the indebtedness of that State for property pun;hased for the Edgefield and K«;ntucky sind the Mem- phis, Clarksville and Louisville railroads, for which the United States holds the bonds of the State in double the value of the property pur- chased. A communicatiou was addressed by this office January 27, 1881, to the governor of Tennessee on the subject to which no reply has been re- ceived. NATIONAL MILITARY CEMETERIES. During the year the post cemetery at Saint Augustine, Fla., has been added to the number of National Military Cemeteries, making the num- ber eighty- one, now under the care and control of the Quartermaster's Department. Five su])erintendeuts were appointed ; two died, two resigned, and four were discharged or dismissed during the year. Sixty-seven were in service at the close of the year. There were 405 interments during the year, and the number of re- mains in the National Cemeteries at the close of the year was 320,763. The delivery of head-stones for soldiers' graves in private, village, and city cemeteries under die existing contracts is nearly completed. Applications for head-sto*es continue to be received at this office, and to supply them new contracts will have to be made. There are many graves in the National Cemeteries in which are in- terred prisoners of war, employes, freedmen, women, and children, which are marked by wooden stakes and head-boards, which are fast disappearing by decay. It is very desirable to preserve the identity of these graves by ijermanently marking them with a durable head-stone, "Which can be done at a moderate cost and without special appropriation. I will call the attention of the Secretary of War to this subject spe- cially at an early day, and submit a project for permanently marking these graves. ^^ A granite archway is in course of erection at the entrance to the Marietta National Cemetery. The improvement of the road leading to this cemetery is desirable. Brick out-buildings have been built at Fredericksburg, Lebanon, and Corinth cemeteries during the year, and an abundant supply of water has been brought into the Vicksburg Cemetery. A number of cast-iron tablets have been prepared at the Eock Island Arsenal, Illinois, to be placed in national cemeteries in lieu of the painted wooden ones, which required frequent renewal. The roadways to the Vicksburg and Fort Scott National Cemeteries have been completed, and that to the Chattanooga Cemetery will be finished at an early date. Contracts have been let for building the roads leailing to the Mound City and New Albany National Cemeteries authorized byCongress, but REPORT OF THE 8ECRET4.RY OF WAR. 395 the work has not yet V)ccu bojiuii. The right of way to tlie Mound City Cemetery is first to be secured, which the hiw provides shall be conveyed without ex])ense to the United States. It is understood that the roadway to the Is'ew Albany Cemetery has been graded by the city authorities of New Albany, and that the road is prepared for macad- amizing l)y the government as provided by law. Attention has heretofore been called to the condition of the road l)e- tweeu the A(pieduct Bridge and the Arlington National Cemetery. This cemetery, tlie most beautiful and historic of its kind, is visited by thousands of jieople yearly, and it seems proper that this public high- way should be made and kept passable at all seasons of the year at the expense of the government. A bill was introduced in the House of Representatives, at its last vsession, appropriating $35,000 for enlarging the Cypress Ilill National Cemetery, which was favorably reported by the Military Committee but failed to become a law. Burial space in this cemetery is very limited, and it is important that early action be taken to secure additional ground. 1 have, therefore, submitted an estimate for an appropriation for this puri)ose. The question of title to additional land for the Loudon Park Ceme- tery, at Baltimore, is nowlu'fore the district attorney, an agreement for purchase having been entered into. BARRACKS AND QUARTERS. The construction of 119 new buildings, comprising barracks, ofticers quarters, stables, store-houses, guard-houses, &c., has been authorized during the year, at an estimated cost of $175,950. They are at military Ijosts in twenty diflerent States and Territories. Subject to allotments proving sufficient, repairs have been author- ized to existing buildings, for construction ifnd repair of cisterns, and for purchase of tools, at an estimated cost of $428,508. The cost of new buildings and repairs is stated as follows ; Department of tlio East : New buildin;rs ?'3C,37l 00 For repairs, «fec !tl,'27'J 00 Departmeut of the South : New buildin sjs 17r> 00 For repairs, «S:c 2'), 013 00 Total Division of tbe Atlantic 14-2, 833 00 Department of tbe Missouri : New biiiUlinsH 33, 20r. 00 For repairs, &c 100,529 00 Dei)artiufnt of the. I'latte : New bnihlinjis 34,9(j'2 00 For repairs, »fcc 41, 522 00 Departmeut of Dakota : New buildiuss 20,G10 00 For repairs, itc „ 42,140 CO Department of Texas: New bnildiuKS 10, 981 00 For repairs, «fcc 40, 008 00 Total Division of tho Missouri 342, H*j:{ 00 Department of California : N e w V> 11 i h 1 i I ) ",'3 3 , 3r.7 00 For repairs, &.c 3e!,2y7 00 396 papp:ks accomi^anyiag the DepnrtiiKMit of flic ColumlMii: New ljiiil(liu;iH S:i,l)78 0;1 For repaiiH, &c, 19,090 (!0 Dt'liaitiiK^iit of Arizona : Now biiildiiijTH :{0,305 00 For repairs, «Sr.c 23,124 00 Total DiviKion of the Pacific 118,757 00 WluirveH have been repaired at Fort Monroe, Va., at a cost of T), 200 00 West Point, N. Y., at a cost of 025 00 Total cost 5,625 00 HOSPITALS. The expenditure of $74,940 lias been anthoiized during tbe year for construction, repairs, and alterations to hospitals, as follows : In the Department of the East, twenty hospitals !$12,845 00 In the Departmeut of the South, six hospitals 5,170 00 Total Division of the Atlantic 18,015 00 In the Department of California, eight hospitals 11,085 00 In the Department of Arizona, four hospitals 2, 979 00 In the Department of the Columbia, seven hospitals 1, 890 00 Total Division of the Pacific 15,954 00 In the Department of the Missouri, nineteen hospitals 21,763 00 In the Department of Texas, live hospitals 1, 702 00 In the Department of the Platte, twelve hospitals 4, 073 00 In the DeiKirtraent of Dakota, sixteen hospitals !•>, 433 00 Total Division of the Missouri ^ 40,971 00 SCHOOL HOUSES. Authority has been given during the year for an expenditure of $4,899 for the erection or fitting up of buildings for school or religious IJurposes at the following military posts ; Fort Biclwell, Cal., costing _ §590 00 Fort Hall, Idaho, costing 881 00 Fort Robinson, Nebr., costing , 403 00 Fort Yates, Dak., costing 525 00 Fort Mcintosh, Tex., costing „ 1,500 00 Fort Reno, Ind. T., costing 1,000 00 4,899 00 SALES OF BUILDINGS. Certain old buildings and huts at McPherson Barracks, Ga.. Fort Hamilton, New York Harbor, Old Fort McKinney and Cami) Poplar Eiver, Montana, have been sold during the year, the proceeds of which are deposited in the Treasury to credit of miscellaneous receipts. The act approved Apiil 7, 1882, authorizes the Secretary of AVar to sell the military barracks located in the city of Savannah, Ga., and make deed conveying the same, with the lauds ujion which the bar- racks are located, to the purchaser or purchasers. This office has no record of the action taken under tlie law referred to. REPORT OF THE SECRETARY OF WAR. 397 MILITARY SITES IN TEXAS. The purcbase of sites of Forts Brown and D'nncan, for which money was speciallj' appropriated by Congress in the sundry civil act of March 3, 1875, has not yet been consummated. No acceptance of the tender of the sums appropriated for the ])urchase has been received. The act approved April 10, IbSO, appropriating .^200,000 for the pur- chase of sites and erection tliereoii of such military posts on or near the Rio Grande frontier as might be deemed necessary by the Secretary of AVar for the adequate i)rotectiou thereof, has been amended in the act making appropriations for the support of the Army, approved June 30, 1882, as follows : And tlio act eutitled "An act making appropriations for acqniring sites and the erection of tniitable posts for tin- yrotediou of tlio Kio Grande fi-outier," approved April sixteenth, eighteen hundre,791 claims, presented nnder the act of July 4, 18()4, amounting in the aggregate to $0,576,997.15; and 124 claims, amounting to $142,916.05, which had been presented to military boards and connuis.s'ions prior to Jaruiary 1, 1880, the date upon Avhicli the pre- sentation of such claims was barred by statute, were called up during the yenr. Of these, 1,389 claims, amounting to $646,037.80, were transmitted to the Treasury for an allowance of $296,346.39, and 1,630 claims, amount- ing to $1,302,700.82, were rejected. At the end of the fiscal year there remained on hand, awaiting action, 16,896 claims, amounting in the aggregate to $7,771,174.58. One hundred and eighty-four claims of a miscellaneous character, based on certified vouchers, amounting to $24,848.82, were acted upon and reported to the Treasury, for action of the accounting officers. The act of June 30, 1882, making appropriations for the support of the Army for the fiscal year ending June 30, 1SS3, provides that no part of the sum therein appropriated shall be used or expended in the investigation of claims presented under act of July 4, 1864. The investigation of these claims had heretofore been made by agents of the Quartermaster's Department, under the direction of officers of the Dei)artment, located in the districts where the claims originated, and the expense of their employment, transijortation, &c., has been borne from the appropriations of the Army. The act making appropriations for the legislative, executive, and judicial expenses, approved August 5, 1882, j^rovides for the employment by the Quartermaster-General of certain clerks, agents, and others in the investigation of these claims. In accordance with the provision referred to twenty-five agents have been appointed by the Secretary of War, and ha-ve been sent out by this office to investigate the claims, and a corps of clerks are employed in this office in preparing the claims for final action by the Quarter- master-General. It is believed, with the present force of agents, that the work of in- vestigation of all the claims arising under the act of July 4, 1864, for quartermaster's stores can be closed during the tw^o years succeeding the current fiscal year. I have the honor to be, sir, very respectfully, your obedient servant, EUFUS IXGALLS, Quarfcnnastcr- General, Brevet Majoi- General U. iS.Anny. The Hon. Secretary of AVar. REPORT OF THE SECRETARY OF WAR. 399 liKPORT OF THE COMMISSARY-GENERAL OF SUBSISTENCE. War Department, Office Commissary-General of Subsistence, Waahinyton, D. C, October 7, 188:.'. Sir: In compliance with your directions of tilth ultimo, I Inive the honor to submit the following reportof the operations of the Subsistence Department for the fiscal year ending June 30, 1882 : RESOURCES AND EXPENDITURES. The following statement exhibits the aggregate fiscal resources and exi^enditures of the department for the year mentioned, and the bal- ances remaining unexx)euded at the close of the fiscal year : RESOURCES. Amount in the Treasury to the credit of appropriations of the Snhsist- ouce Department on June 30, 1881, as follows : Subsistence of the Army, 1880 ^22, 575 45 Suhsistence of the Army, 1881 2 U:i Claims for quartermaster's stores and commissary sup- plies, act July 4, 18t)4, ])er act March 1, 1881, being poi'tiou for connuissary supplies 75 (iO $:i2,65:5 07 Amounts to tlie credit of oftieers of the Subsistence Department, and oflicersdoin<;duty in tlieSiil>sistence Department, witii the Trt-asiircr, assistant treasurers, and designated de])ositaries, and in their per- sonal possession on Juue 30, 1881, as follows : Suhsistence of the Army', 1880 glfiO 38 Subsistence of the Army, 1881 412,327 70 Amounts refunded to the Treasury near chise of fiscal year 18^1, but not carried to the credit of the apjiropriations by June 30, lac^l, since covered in as follows : Subsistence of t ho Army, 1879 and prior years * .*2 25 Subsistence of the Army, 1880 (10 00 Subsistence of the Army, 1881 37 50 412,497 08 91) Amounts appropriated for the Subsistence Etepartmeiit for the fiscal year ending June 30, 1882, a»f(dlows: Subsistence of the Army, 1882, act February 24, 1881 ! $2,250, (loo 00 Claims for quartermaster's stores and c(»miiiissary sujiplitvs, act July 4, 18()4, per act May 1, 1882, being portion Ini coiumiss.iry sui>plies '. . 5,(»7ti53 Relief ot ju'rsons reudcred destitute by overllow of Mis8i8si]»pi. River '. ;!5(), 000 00 Amounts collected from various sources and refunded to tin- a]ipro]iri- ations of the Sub.sistcnce I)tq)artmeut, on the liooks oftlie Treasury, during the li.scal year 1882, as follows: Subsistence of the Army, 1870 und juior ye.irs ^,:vj l:? Subsistence oftlie Army, 1^80 1,285 42 Subsisti'uce of th(! Ariiiy, J-^Sl 44,M<>4 :!;{ Subsistence of the Army, 1m2 7^i,:'.31 \'A 2, 605, 076 53 125,0.50 01 400 TAPERS ACCOMPANYING THE Amount rcfiiiKlcd im tlio books of II11' 'rirjiHiny nndor iui\ of March 'A, 1875, (18 Stat. Lnv^i), 418), m follows: Snbistciico of tlie Army, 187y, and prior ycarH, trausfcr account.. §2,527 74 Amouut roceivcd. by oHicors of flio SubKistcnco Department, and by oiiicors doing duty in tho SiibsiKli-nco Department, from sales of snb- Bistence stores to ilio following piinrbasors during the liscal year 1882, and taken up for immediate disbursemtnt under tlui appro})riation, Subsistenoe of th(i Army, 1882: Sales to ollicers of the Army, $484,523.91 ; to enlisted men, S255,- 449,97; to com])anies, detachments, and hospitals, .•? 179, 7:^9.80; to civil employes, f21,582.27 ; to Fort Leavenworth military prison, $17,278.(30; to surveyors, $5,791.84; to railroad engineers, 1$1, 115.84; tociviloniployesof Agricultural Dejtartnieut, $^6.5.54; to Mullan road employ6s, $54G.(i5 ; to steamers, !i!i90.78 ; to Indians, $80.40; Indian commissioners, $69.75; to Quartermaster's Depart- ment. $171.72; to assistant geologist, $:}3.81 ; of eondenined stores at auction, $3,415.24; of boxes, barrels, &.e., $731.79; of gardeu seeds and agricultural implements, .|l, 051.7(5; total 972,022 07 Amonuts taken up by officers doing du^y iu the Subsistence Depart- ment, ou account of reclamations for stores lost, damaged. Sec, and ill correction of errors iu their accounts, &,c., during the tiscal vear 1882 i Subsistence of the Army, 1882 2,958 71 Amount in hands of representatives of deceased officer to be collected: Subsistence of the Army, 1878 109 84 Amounts charged against ofiScers (deceased and resigned) on account of funds alleged to have been lost by theft, &c., as follows: Subsistence of the Army, 1879 and prior years 3, 000 89 Amounts charged against officers, still in service, on account of funds al- leged to have been lost by theft, &c., and for which relief can only be obtained iu the Court of Claims, iTuder sections 1059 and 1082, Revised Stattites (including all sums of this character heretofore entered in this statement), as follows : Subsistence of the Army, 1879 and jmor years |2, 772 86 Subsistence of the Army, 1880 393 96 Subsistence of the Army, 1881 265 47 3, 432 29 Total resources 4, 150, 028 58 EXPENDITURES. Amounts expended on the books of the Treasury from the appropriations of the Sub- sistence Department during the fiscs*! year 1882, as follows : Claims for quartermaster's stores and commissary sup- plies, act July 4, 1864, per act of May 2, 1882, being portion for commissary supplies $5, 678 53 Claims for quartermaster's stores and commir ■ s i > plies, act July 4, 1864, per act March 1, 1&81, being portion for conunissary supijlies 75 60 Subsistence of the Army, l88t» 61 '>5 Subsistence of the Army, 1881 . 36, 085. 75 Subsistence of the Arm v, 1882 25 53 $41,924 4(1 Amounts disbursed by officers of the Subsistenoe Department, and offi- cers doing duty in the Subsistence Department, during the 6seal year 1882, as follows : Subsistence of the Army, 1880 $169 38 Sul.sisteuce of the Army, 18-1 411, ^^'J 12 Subsistence of the Array, 1 882 2, 899, 805 31 Relief of persons rmidered destitute bv overflow of the Jtississippi Ri ver '. 349. 9.".8 88 3.G6L:v:'i 69 REPORT OP THE SECRETARY OF WAR. 401 Amounts dropped by officors doing duty in the Subsistence Depart- meut in corn^ction of errors iu their accounts during the tiscal year 1882: Subsistence of the Army, 1882 $131 10 Amounts carried to the surplus fuud on Juno 30, 1882: Subsistence of the Ariuy, 187i) and prior years, transfer account, act March 3, IS75 {IH Stat. Large, 418) $2,527 74 Subsistence of the Army, 1879 and prior years 541 38 Subsistence of the Army, 1680 23,b50 34 20,919 4() Total expenditures 3, 730, 290 7 1 BALANCES UNEXPENDED. Amounts in the Treasury to the credit of appropriations of the Subsistence Depart- ment on June 30, 1882, as follows : Subsistence of the Army, 1881 .«i9, 3G4 16 Subsistt-iice of the Army, 1882 1, 428 02 Relief of persons rendered destitute by overliow of Mis- sissippi River 41 12 SIO, 833 90 Amounts to the creosts. Duiiiij;the past year a Uvr^e i>orlioii of the supplies has been ob- tained as usual in the hir^^e market cities of tlie country, as New York, Chicago, ISau Francisco, iSaiiit Louis, New OrU'an.s, «Ji:c. Fresh me^it, and to a i^reat extent tlour and a few other arlich'S, have been i>urehased from producers at or near tiie i)oiiits of issue, purchases being ])rcfer- ably 80 made whenever artick's of a suitalde ({uality can be obtained at prices not exceeding tlie cost of siniihir arlieh's purchased else- where, cost of transportation included. 20 Ab 402 PAPERS ACCOMPANYING THE CONTRACTS AND PURCHASES. During the fiscal yoar ending June30, 1882^, 142 newspaper advertise- ments and 80 «'irciil;irs and i)Ofst(n\s inviting i)roi>()sal8 for subsisteuce stores wore rejxntcd to tliis oOice. Tliere were also receiv«id 2,2.59 con- tracts of various kinds for fresh meats, complete rations, and other supplies required for the subsistence of the Army. The amounts expended for subsistence stores and proi)erty, and for contingencies at the principal i)urchasing stations during the fiscal year ending June 30, 1882, were as follows: Purcliasing depot at — Baltimore, Md Boston, Mass Cheyciino, Wyo Chicago, 111 Cincinnati, Ohio Tort Leavenworth, Kans Helena, 'Slont Kew Orleans, La New York, N. Y Omaha, Neb Prescott, Ariz Sahit Louis, Mo Saint Paul ,Miun , San Antonio, Texas Santa r6, N. Mex San Francisco, Gal Vancouver Barracka, Washington Ter. Washington, D.C Totals 2,101,318 77 For stores. For property $40, 173, 41, 619, 10, 188, 27, 21, 432, 25, 30, 121, 151, 4, 12, 163, 25, 11. 575 18 251 42 428 72 300 90 041 8G 407 46 993 29 915 65 355 89 937 90 547 73 330 85 067 00 204 75 042 38 317 27 694 05 786 47 $391 28 278 78 370 95 4, 688 40 209 78 4, 297 26 440 85 269 21 3, 368 90 3, 145 01 . 701 14 5, 282 26 195 27 20 02 3, 542 07 1, 813 32 1, 534 G6 30, 539 22 For contin- gencies. $9, 177 56 15, 956 98 4, 409 91 24, 686 65 11,031 84 17, 175 98 2, 026 90 i>, 686 02 25, 197 79 13, 294 57 12, 876 11 9, 178 66 15, 193 77 11, 133 17 9, 300 39 17,940 17 9, 829 49 249, 755 61 464,451 57 Total. $50, 144 02 189, 487 18 46, 209 58 648, 675 95 21, 283 48 2U9, 940 70 31,001 04 27, 870 88 -460, 022 64 42, 377 48 43, 423 84 1.31,210 05 171, 543 03 15,593 19 21, 362 79 184, 799 51 37, 336 86 263, 066 74 2, 596, 309 56 PEESH BEEF. The price of beef throughout the country has continued to increase to such an extent as to add materially to the cost of subsisting the Army. It win be seen by the following table the average price paid under con- tracts for the current fiscal year is twenty- three per cent, greater than for the last, and thirty-six per cent, greater than for the year 1881. Table showing the average cost prices per pound (independent of quantities purchased) in each State and Tei'ritory of fresh beef supplied to the Army on contract during the fiscal years 1881, 1882, and 1883, viz : Maine Massachusetts Hhode Island Connec tictrt New York Pennsylvania Maryland District of Columbia.. Virginia Greorgia Florida Alabama Louisiana Arkansas Texas Kentucky Ohio Indiana Illinois Average price per pound. 1881. Cent^. 8.75 8.89 6.90 7.23 7.77 9.37 7.93 6.64 6.24 8.85 a 62 9.00 7.75 6.75 ,5.18 e..^o 6.15 8.00 8.00 1882. 1883. Cents- 10. .50 11.38 8.00 8.97 9.54 12.25 9.00 a 06 7.00 9.68 12.00 7.25 6.97 .5.48 6.75 7.25 9.00 7.00 Cents. 11.75 14.21 10.00 15.00 12.08 13.94 11.93 9.60 9.12 12 00 8.62 12. 50 12. M 0.50 a 47 11.00 11.70 9.62 13.00 Michigan ■ Missouri Minnesota Nebraska Kansas •. Indian Territory. ..... Wyoming . Dakota, Now Mexico Colorado Utah Montana California Arizona Washington Idaho Nevada Oregon Average for each year Average price per pound. 1881. 1882. Cents. 10.38 5.50 5.17 7.21 7.40 5.86 7.19 a 79 7.75 7.82 5.21 5.50 6.92 10.46 6.73 6. G5 7. 75 6.12 Cents. 10.95 6.99 a 15 7.23 7.93 5.73 7.34 9.30 a 32 7.87 6.60 6.34 7.17 10.76 6.71 C.75 9. .'.U 5.34 1883. Cents. 11.42 7.83 9.35 a 45 7.15 6.16 9.10 10.39 a 98 a 77 &62 9.18 9.90 12.34 5.38 7.05 12.00 7.39 a 19 10.11 REPORT OF THE SECRETARY OF WAR. 403 TOBACCO. Daring tlie year plu;? tobacco to the amount of lO^jllSy^ pounds and smoking tobacco to tlic amount of 83,169i| pounds was supplied for sale to officers and enlisted men of the Army. The; sales of the tobacco cbargeil to enlisted men (lurii)g the year, under section 1149 of the Revised Statutes, for which tobacco returns have been received at this office, amounted to §I05,5-2ti 19 Value of tobacco charged in fiscal year 1878; returns therefor received in 1882 - 49 95 Value of tobacco charged in fiscal year 1881 ; returns therefor received in 188"i 595 62 Value of tobacco charged iu previons years in excess of amounts reported by the Pay Department as collected Gl, 044 02 Value of tobacco charged iu fiscal year 1883 ; returns therefor sent to Paymaster-General* 9,222 07 Total §176,437 8o Collections on account of tobacco sold to enlisted men have been reported during the fiscal year as follows : Amount transferred by Pay Department to the approi)riation Subsistence of the Army §107, 024 48 Amount not yet transferred by Pay Department to the appro- priation Subsistence of the Array 37,569 05 Paid by officers on account of failure to charge enlisted men. 3 01 Total 144,596 54 Leaving a balance not yet reported as collected of $31,841 31 SUFFERERS BY THE OVERFLOW OF MISSISSIPPI RIVER. In February, 1882, a great freshet in the Mississippi River and its tributaries caused the overflow of a large section of countrj% embracing parts of Kentucky, Tennessee, Illinois, Missouri, Arkansas, Mississippi, and Louisiana, causing great destitutiou and suffering. Immediate re- lief was iisked, and Congress, by joint resolutions approved February 25, March 21, and Aiuil 1, 1882, appropriated an aggregate of $350,000 to be used by the Secretary of War in the purchase and distribution of subsistence stores for the relief of the sufferers. The first Joint resolu- tion (that of February 25, 1882) approi)riated $100,000. This Depart- ment was charged by the Secretary with the duty of procuring and dis- tributing the sui)plies. The order for the first purchase was given Feb- ruary 20, and iu forty-eight hours supplies, ijrocured by Lieutenant- Colonel Leckwith, assistant commissary-general of subsistence, at Saint Louis, Mo., were on their way by boat to the sufferers. A largo quantity of stores were also purchased in New Orleans specially for sufferers by tlie overflow in Louisiana. Of the •*350,000 api)ropriated $349,958.88 were placed to the credit of Lieut. Col. A. IJeckwith, assistant commissary-general of subsistence, at Saint Louis, and Capt. F. F. Whitehead, commissary of subsistence, at NcAV Orleans, with which 3,251,000 rations were purchased and (b'livered, under instructions from the Secretary of War, to the agents of the va- rious State authorities in the regions where the destitutiou i)revaik(l. Therations turned over to these agents for the relief of sufferers iji the States named were as follows : 404 PAPERS ACCOMl^ANYING THE liatloDS. Kentucky • 15,000 Tennessee WJ.OOO Illinois 40,000 MiHSOiiri 61,000 Arkansas 43.«:^,000 Mississippi 'iGo, 000 Louisiana - 1, 96(3, 000 Total 3,251,000 OBSERVATION AND EXPLOKATION IN THE ARCTIC SEAS. The value of subsistence stores sent to the expeditionary force at Lady Franklin Bay in June, 1882, for the use pf that force for the fis- cal year 1883, was $4,210.03. POINT BAEEOW EXPEDITION. The value of subsistence stores sent in June, 1882, for the use of thi.^ expedition for the fiscal year 1883, was $2,968.36. LOSSES OF STORES AND PEOPEETY. The value of stores reported on returns of subsistence stores for the fiscal year ending June 30, 1882, as lost in transportation and no one found responsible therefor, and as extraordinary wastage, «&c., was $13,947.10, being less in amount by $8,374.49 than .the loss through like causes in the previous fiscal year. Value of stores lost in transportation during tlie fiscal year ending June 30, 1882, where responsibility for the loss has been fixed, was $11,683 40 Amount collected and taken up on officers' accounts, or cov- ered into the Treasury, on above account, was $10, 465 31 Amount collected and not covered in 24 48 10, 489 79 Balance to be collected $1,193 61 The following is a statement of the value of stores reported lost by theft, storm, fire, &c., during the fiscal year ending June 30, 1882 : Where lost. Fort Keogh, Montana Eu lout© to Foit A. Lincoln, Dakota. Eu route ou steamer Black Hills In ci'.mpaign against Apache Indians. Bo Eort Thornbnrsh Utah En route to Fort Davis, Texas Fort Hale, Dakota Fort Laywai, Idaho En routi to Fort Brown, Texas En route to Fort Thoinburgh, Utah. . Fort Assinniboine, Montana Fcu-t Keoiih, Montana En rojteto Forf Maginnis, Montana.. In campaign against Apache Indians. At Eijcky Point, Montana Total. How lost, per re- ports. By Are By theft By fire Abandoned From pack-mule, bv storm. By theft ...do By death (cattle) . By theft do . do By storm By tiieft do- Abantloned By theft Date of loss. Jnlv7, 1881 About Dpcembor"^, 1881. Julv31, 1881 In September, 1881 In October, 18S1 In Nor., 1881, and Jan., 1882. In December, 18,-1 In Dec. 1881, and Jiin., 1882. In February, 188:; In FebruaiV, 1882 In February, 1882 March 28, 1882 In March, 1882 In March, 1882 In May. 18p2 Reported in May, 1882 Value. $,19 00 375 00 c4 40 79 7.-) in 97 21 45 3 00 228 06 4 75 5 45 40 20 97 3(J 107 119 28 00 4 84 I2G .>! $1, 416 W REPORT OF THE SECRETARY OF WAR. 405 ISSUES TO INDIANS. Statement of supplies iasued to Indians and transferred to Indian agents during the fiscal year ending June 30, 18c'2. Date. To whom Lssned. July, 1881, to Janu-iry, 1SS2 October, 1881, to March, 18S2.... Xovninbpr, 1881, to March, 1882.. May. .Tunc, 1882 July, 1881 To Sioux Indiau prisoners of war at Fort Buford, Fort Yat<'9, and Fort Kaiidall, Dakota. To Apacho Indian prisoners bf war at Fort Lowell, '■ Arizona. To White Mountain Apache Indian prisoners of war , at Fort Thomas, Arizona. To Apache Indian pri.soncrs of war at Fort Union, New Mexico. To Me.icalero Indian pri.soners of war at Fort Union, Xew Mexico. July, 1881, to Jane, 1882 \ To Indiau prisoners of war at various po.sts and of dif- I ferent tribes. To destitute Hnalpai Indiana at Hackberry and the Willo'vVr''. Arizonji. Tninsfen-ed to Indian Agent J. A. Stephan, at Fort Yatos, Dakota. Transfericd t<} Indian Agent N. W. Berry, at Canton- ment on Cncorapahgre, Colorado. To Indians visiting po.-ts tinder Army Kogolations 21X2 and 2183; September, 1881, to June, 1882 I To friendly Indinns July, 1881. to June, 1882 j To destitute Indians December, 1881, to March, 1882... July, 1881 August, 1881 July, 1881, to Jannary, 1882 Total Amount. $21,832 89 1,422 90 1,603 84 220 80 257 44 1, 256 30 6, 172 78 2, 460 11 105 33 430 25 f)2 j^ 1, 32» 43 $37, 196 72 Eeimbursement has been re(iuested of the Interior Department to the amount of $13,563.86 on account of the issues to Sioux Indian prisoners, and to the value of the issues (86,172.78) to the destitute Hualpai In- dians, but reimbursement has not yet been made in eitlier case. The stores transferred to Indian Agents Berry an,').3 lt» Trom such of the above as were ordered sold there was realized the sum of ;;, 449 GU Net loss on account of supplies condemned sK{,-20:i f>ti Being less in amount, by 8643.81, than the net loss from like causes during the i)revious fiscal year. The number of rations purchased for recruits and recruiting jKU'tics during the year was 74,118;|, for which 836,921.03 were paid, being at the rate of 40.813 cents per ration, an increase of 1.085 cents per ration over cost of previous fiscal year. Disbursements for liquid coftee during the year amounted to 811 ,302.18 ; for extra duty service of enlisted men detiiiled for duty in the Subsist- ence Department at posts, 813,579.53 ; for advertising, 86,813.66. 406 PAPERS ACCOMPANYING THE ACCOUNTS AND RETtJRNS. There were received (luiin.j^- llie fiscal year ending June .'JO, 1882, from 581 otlicors perforiiiiugdutyin tlie JSubsisteiice l)('])artnient, the follow- ing accounts and returns, viz : Accounts current 2, 83G RctiiruH ofprovisious 2,228 Keturus of commissury property yi'J Total i-eceived &, 970 During the same period there were examined in this office, and for- warded to the Third Auditor for settlement, the following: Accounts cunent 3, 114, accompanied "by 47,2,% vouchers. Return of iirovisions 2, 518, accompanied by 37, 028 voiicliers. Returns of commissary proi^erty 1,068, accompanied by 2, 5r>7 vouchers. Total (), 700, acconiiianied by 8G, 820 vouchers. On hand at the close of the fiscal year ending June 30, 1882, awaiting examiiiation : Accounts current 24G Returns of subsistence stores 227 Returns of subsistence property - 2 Total 475 In connection with the above there were 4,937 letters written, and 1,079 referred by endorsements, and Sol papers copied. In addition to the above, returns of oiiieial postage stamps to the number of 651, accompanied by 1,781 vouchers, have been examined and filed. CLAIMS. Act of July 4:, 1864 (section 300 B, Revised Statutes). There were at the commencement of the fiscal year ending June 30, 1882, on file in this ofiice, awaiting examination, 1,862 claims under the third section of the act of July 4, 1804, and the acts and joint resolutions supple- mentary to said act ; during the year 15 more were received, making in all 1,877 to be acted Upon. Formal decisions were rendered during this period in 1,161 cases of this class of claims. Of these, 84, amounting to $18,279,36, were allowed in the sum of 80,247.67, and recommended to the Third Auditor of the Treasury for payment, and 1,077, amounting to $632,717.58, were rejected. Of the number of claims received under this act, one, regarded as a purchase-account, was transferred to miscellaneous claims for examina- tion under that class. There remained on hand July 1, 1882, awaiting examination and decision under this act, 715 claims. Joint resolution of July 25, 1806, and third section of act of March 2, 1867. At the commencement of the fiscal year there were on file in thks office 2,346 claims for commutation of rations to Union soldiers while held as prisoners of war, and during the year 1,085 claims were received, making a total of 3,431 claims of this class lor examination, &c. Of these, 174 were not reached for examination; 1,338 were partially ex- amined ; 1,919 examined and decided, of which 1,131 were rejected, ami 788, amounting to $23,431.25, were allowed and recommended to the Third Auditor of the Treasury lor payment. Besides this, rejected (old) claims were re-examined upon additional evidence and again rejected. REPORT OF THE SECRETARY OF WAR. 407 Miscellaneous claims. In addition to cliiims nnder the above-nientioued special acts of Con- gress, there were at the coiniiienceinent of the liscal years 491 miscelhi- neous chiims on hand, and dnrinj;: the year 335 chiiras were received. Of these 820 claims, 122 were recommended for payment in the agf^re- gate sum of $8,030.30 ; 2(H were rejected ; 448 were partially examined ; and 55 were not reached for examination. Besides these, 20 rejectetl (old) claims were re-examined upon additional evidence, 7 of which, amounting to $131.72, were allowed, and 13 again rejected. Letters and endorsements. In connection with the three classes of claims above mentioned, 13,010 communications were sent out during the year. Besides this, numy briefs of evidence and extended examinations of olUcial records were made. CLERICAL AND OTHER FORCE. The appropriation for the clerical and other force in the office of the Commissary General of Subsistence, act of August 5, 1882, is $43,480, and provides for 1 ehief clerk, 1 clerk of class four, 3 clerks of class three, 4 clerks of class two, 14 clerks of class one, 9 clerks, at $1,000 each, 1 assistant messenger, 2 watchmen, and 2 laborers ; a total of 37. I recommend that this force be re-graded, in the appropriation act for the liscal year 1884, as follows : 1 clTief clerk, 2 clerks of class foul*, 3 clerks of class three, 4 clerks of class two, 11 clerks of class one, 10 clerks of class $1,000, 1 messenger, 1 assistant messenger, 2 watchmen, and 2 laborers ; a total of 37. I make this recommendation in the in- terests of the public service, and hope it may meet the favorable con- sideration of Congress. It makes no change in tlie total force, involves an increase of the appropriation of only $40, and will give needed grading to deserving employes of this ofiice. CO:vnknSSARY-SERGEANTS. There were, on June 30, 1882, one hundred and forty-five commissary- sergeants stationed at the various military posts throughout the coun- try. Each of them renders to this office, monthly, a i)ersonal report, which is lorwiirded through the post commissary under whom he is serving, and whose emlorsement thereon shows whether the commissary- sergeant has iuo])erly performed his duties during the month. As in- dicated by these reports, the sergeants, with very fewexce])tions, have rendered efficient service, i^erformed their duties faith fulh', and gen- erally conducted themselves in a satisfactory manner. DUTIES AND STATIONS OF OFFICERS OF THE SUBSISTENCE DEPART- BIENT. During the yenr the officers of the Department have been actively employed, and have ])erfbrmed Ihe duties to which they were assigned Avilli their accust(niied /.eal and elliciency. Their duties and stations on the 7th of October, 1882, will api)ear from the roster hereto a[)- pended. Very respectfullv, your obedient servant, K. MACFEELY, Commhsaryii cneral of ^Subsistence. The Secretary of War. 408 PAPERS ACCOMPANYING THE REPORT OF THE SURGEON-GENERAL. War Department, Suegeon-General's Office, Washington, October 1, 1882. Sir : I have the honor to submit the following sttitement of finances and general transactions of the Medical Department of the Army for the fiscal year ending June 30, 1882 : FIXAKCIAL STATEMENT. Medical and Hospital Department, 1880 : Balance from previous fiscal year $3,292 06 Deduct amount deposited October 30, 1880, by Captain Henry Johnson, M. S. K., U. S. A., with the assistant treasurer at San Francisco, and through a clerical error in previous statement reported as still in his hands 254 72 $:?,007 34 Refunded during the year 21 50 Total to be accounted for 3,028 84 Disbursed during the year $391 70 Carried to the surplus fund 2, 637 14 3, 028 84 Medical and Hospital Department, 1861 : Balance from previous fiscal year 57, l05 43 Refunded during the year 14G 64 Total to be accounted for 57,252 07 Disbursed during the year 56, b'M 48 Balance June 30, 1882 652 59 Medical and Hospital Department, 1882 : Appropriated by act of February 24, 1881 200,000 00 Received for supplies sold 14, 406 10 Recovered for property lost 13 08 Total to be accounted for 214,419 18 Disbursed during the year 182, 409 80 Balance June 30, 1882 — required for the settlement of unpaid bills 32,009 38 Artificial limbs, 1877: Balance from previous fiscal year 3, 476 90 Drawn from the Treasury by transfer warrant 8 95 3, 485 85 Disbursed during the year §8 95 Carried to the surplus fund 3,476 90 3. 485 85 Artificial limbs, 1878 : Balance from previous fiscal year §1,901 77 Carried to the surplus fund 1,901 /< Artificial limbs, 1879: Balance from previous fiscal year 30, 869 81 Carried to the surplus fund 30, 869 81 REPORT OF THE SECRETARY OF WAR. 409 Artificial limbs, 1880 : Balance from pixnious fiscal year S39, 815 10 Disbnrsed durinfj tho yt-ax S54 32 Carried to tlic surplus fund 49,859 90 49,914 22 Balance June 30, 1882 9,900 94 Artificial limbs, 1381-: Balance from i)rovious fiscal year 29,958 71 Disbursed during the year 26,688 90 Balance June 30, 1^882 3,209 81 Artificial limbs, 1882 : Appropriatedby act of March 3, 1831 175,000 00 Disbursed during the year 102,0f^l 15 Balance Jnne30,1882 72,918 &5 Appliances for disabled soldiers, 1879 : Balance from prcvioue fiscal year 2, 8S7 00 Carried to tlie surplus funcl 2, 887 00 Appliances for disabled soldiers; 1880 : Balance from previous fiscal year 710 CO Carried to the surplus fund 710 00 Appliances for disabled soldiers, 1881 : Balance from previous fiscal year 2,470 00 Disbursed during the year 107 00 Balance June 30, 1882 2,36;t 00 Appliances for disabled soldiers, 1882: Appro])riated by act of iVIarch 3, 1881 3,000 00 Disbursed during the year 250 00 Balance June 30, 1882 2,750 00 Medical and Surgical History : Balance from previous fiscal year 13, S.?-^ 15 Disbursed during the year 4, 288 00 Balance Juno 30, 1882 9,100 15 Museum and Library, 1881 : Balance frt»m ])rt!vious fiscal year 619 86 Disbursed during the year 619 80 Museum and Library, 1882 : Appro])riated by act of February 24, 1881 10, 000 00 Disbursed during the year J^. 715 7*^ Balance June 30, 1882 — required for tlic soltlfuicnt of unpaid bills 1,284 22 Expentled i« providing tmsses for ruptnn d soldiers, se.amcn, ai\d inariiies under sections 117G to 117^:, IJiviscd }>t.iiiitrs. t-xtendtd bv act of March 3,1879 '. ■- 5,057 08 410 PAPERS ACCOMPANYING THE There were furnished during the fiscal yciir : In Idud : Trusses 702 Artiflfial lojjs 12 Apiiaratus for legs 22.') Artificial arms CGrf Artificial hands 'A Appatatus for arms 376 HEALTH OF THE AEMY DURING THE FISCAL YEAR ENDING JUNE 30, 1882. The monllily reports of sick and woiMided received at tliis office up to September 8 represent an average mean atreut>tli of 20,778 lirhite, 2j265 colored troops, and 245 Indian scouts. Among* tlie white troops the total number of cases of all kinds taken on the sick list was 34,880, being at the rate of 1,079 per 1 ,000 of mean strength. Of this number, 30,353, or 1,401 per 1,000 of strength, were taken on sick rei)ort for disease, and 4,527, or 218 per 1,000 of strength, for wounds, accidents, and injuries of all kinds. The average number constantly on sick repOTt during the year was 942, or 45 per 1,000 of mean strength. Of these, 762, or 37 per 1,000 of strength, were constantly under treat- ment for disease, and 180, or 8 per 1,000 of strength, for wounds, acci- dents, and injuries. The total number of deaths from all causes reported among the white troops was 216, or 10 per 1,000 of mean strength. Of these, 141, or 7 per 1,000 of strength, died of disease, and 75, or 3 per 1,000 of strength, of wounds, accidents, and injuries. The proiiortiou of deaths from all causes to cases treated was 1 to 101. The total number of white soldiers reported to have been discharged the service on " surgeon's certiticate of disability " was 848, or 41 per 1,000 of mean strength. Among the colored troops the total number of cases of all kinds re- ported was 4,090, ov 1,810 per 1,000 of mean strength. Of these, 3,481, or 1,537 per 1,000 of strength, were cases of disease, and 018, or 273 per 1,000 of strength, were wounds, accidents, and injuries. The average number constantly on sick report was 100, or 44 per 1,000 of strength ; of whom 77, or 34 per 1,000 of strength, were under treatment for disease, and 23, or 10 per 1,000 of strength, for wounds, accidents, and injuries. The total number of deaths of colored soldiers reported from all causes was 25, or 11 per 1,000 of mean strength. Of these, 10, or 7 per 1,000 of strength, died of disease, and 9, or 4 per 1,000 of strength, of wounds, accidents, and injuries. The proportion of deaths from all causes to cases treated was 1 to 1G4. REPORT OF THE SECRETARY OF WAR. 411 The total number of colored soldiers reported to have been discharged on " surgeon's certificate of disability" was 98, or 43 i»er 1,000 of mean strength. The total number of oases rojiorted among the Indian scouts was 50; being at the rate of 2L't) per 1,000 of mean strength. Of these 43 were cases of disease and 13 of wounds, accidents, and injnries. The total number of doatlis was 9 ; 4 from disease and 5 from wounds. JJuring the past liscal yetir :.^,003 monthly reports of sick and wounded have been received from the medical officers in charge of the various posts and stations. Tiiese have been examined, consolidated on statistical sheets for use. and the deaths and discharges entered in the appropriate alphabetical registers. Nine hundred and fifty-five rei)orts of the medical examination of re- cruits were received and tiled, and 823 monthly meteorological reports were received from medical officers and transmitted to the Chief Signal Officer of the Army for his use. WOTlIv PERFORMED IN THE RECORD AND PENSION DIVISION. The total number of official demands upon this division during the fiscal year, for information as to the cause of death in the case of decreased sol- diers and the hospital record of invalids was 01,030, being 0,51)0 in excess of similar apjjlications during the previous year. Twenty-one thousand four hunched Jind eight ajiidications remained unanswered on the fiist of July, 1881, mnking in all 83,038 to be disposed of during the year. Of the new cases, 59,100 were from the Commissioner of I'ensions, 2,209 from the Adjutant-General of the Army, and 255 from miscellaneous sources. Search has been made and rei)lies furnished to the proi)er authorities in 01,097 cases. Of these, 58,092 were to the Commissioner of I'ensions, 2,180 to the Adjutant-General of the Army, and 201 to niiscellaneous applicants, leaving 21 ,959 unsearched cases. As this is an excess of only 55L cases over the nund)er remaining on hand at the date of njy last report, it will bi' seen that although the office has not been able to make any pennancnt decrease in the number accumulated during i)re- vious years, it has proved itself comi)etent to dciil with an increase of 20,000 cases over that of the last fiscal year, and has very nearly kept pace with the increased requirenu'Uts ot the Pension Ofiice. Since tlie addition to tlie clerical foiee engaged ujton i)ension work in this office i)ro\ ided by the act of ]March 3, 1881, and mentioned in the last rei)ort of the Surgeon-General, there has been not oidya consider- able increase in tbe aggregate nund)er of re])orls furnished to the Com- missioner of l'e:isions, but it is jiratii'ving to lie enabled to report an in- crease in the number of cases that have been disposed of by the mean number ol" clerks exclusively emi)lo.ve(l upon the technical work ol' seai'ching the iios|«ital rec()rds. This iu<'reasc has risen fully Xi per cent, over and abo\(' the average luuuber <»r cases searched «'ach day by the sam(^ Ibice during the lU'evious year; and eonsidi-riug the fad that the men employed exhibit every deisi-e of u-t>titude in learning tiiis peculiar and diiiicult W(uk, the Jiiinies will serve to illustrate that with a new force only a gradual ac(|uisiiion of skill is to be antit-ipatcd, and that a proper degree of accuracy and celerity is attained only by great familiarity with these hospital records, supi)lemented by a siKH-ial and often i)rotracted course of training. I would also refer in this connection to a progressive increase in the 412 PAPERS ACCOMPANYING THE tlifiienlt.v of senrcli for lecord ol" the hospital treatment of soldiers who served in the late war. As time elapses claimants appeiir to be more than evei' nnnble to fnrnish definite information c.oncA'Vulu'^ the date ;ind place of their treatment. Tliere is mnch evidence at hand to estab- lish the fact tliat tliis difhculty does not arise from defective memory alone. It is to bo regretted that there is too often a manifest failure on the ])art of those preparing declarations for pensions in pressing in- quiries n])on these important i)oints, as it is the cause of much of the (ielay hitherto cliarged to this office. increasing demand for replies to the Commissioner of Pensions has heretofore prevented the detail of any sufficient number of clerks ui)on the very important work of copying the large number of worn and muti- lated records now on hand and rapidly accumulating. AVith the pros- pective addition to the clerical force, it is intended tliat this work shall at once be taken up, and the jireservation of evidence contained in these important volumes be made secure by their duplication, so far as may bo practicable and consistent with the object for which the in- crease of force is ])rovided, viz, the final adjudication of all pension claims within a limited number of years. One hundred and thirty -nine volumes of hospital records were re- ceived from discontinued posts, commands, and other sources during the year, making the total number of such volumes on file, 18,222. The classification of these records is complete, and the hospital desig- nation, description of contents, and period covered by every book is recorded in a series of State, army corps, and department indexes, numbering 60 volumes. The wear upon these indexes has been so rapid that it has become necessary, by means of numerous hektograph copies, to insure their preservation. Twenty-two volumes, 15 cox)ies to oaorts, and '4-13 were of a 7uiscellaneous nature. Classified returns of Avounds and injuries, together with lists of wounded, were received of ten engagements with hostile Indians, iji which 28 soldiers were killed and 22 wounded, as follows: 1. At Carrisso Canon, IN". Mex., August 12, 1881, Company K, Xinth Cavalry, in a fight with Indians, had 2 men killed and 3 men wounded; the casualties were reported by Acting Assist. Surg. F. S. Denwey. 2. In a skirmish with Indians at Cuchillo Negro, N. Mex., August 15, 1881, 2 privates of Company I, Ninth Cavalry, wei'e reported wounded by Acting Assist. Surg. M. G. Cockey. 3. On August 19, 1881, a tight occurred at Cavalaus Caiion, 45 miles southeast of Fort Bayard, N. Mex., between Apache Indians and a de- tachment of 4:4 men of Companies B and II, Ninth Cavalry. ^Vssist. Surg. C. E. Munn reports that Lieut. G. W. Smith, commanding the de- tachment, aud 3 enlisted men were killed, aud 3 enlisted men were wounded. 4. Assist. Surg. George McCreery, whose gallant and meritorious con- duct in the fiekl received especial official notice, reports that Col. Eugene A. Carr, Sixth Cavalry, with 5 commissioned officers, 79 enlisted men of Companies E and 1), Sixth Cavalry, 73 men of Company A. Indian scouts, and the post i»ack train, left Fort Apache, Ariz., on August 29, 1881, to arrest t he nu'di('iju!i man. Nock-ay-del- klin-ne. On theeveniug of August 30, wheif the command was going into cam[) at Cibicu Creek, the Indian com])any, with other Coyotero Apaches, fired into the troops, killing Capt. E. C. Hentig and 3 ])rivates of Com])any 1), Sixth Cavidry, and mortally wounding 3 other privates of the same company ; a ser- geant and a ])rivato also received severe fleMi wountls. The 3 men mortally wounde, Twelfth Infantry, were mur- dered by Indians near Fort Apaehe. Ariz., while returning from Ilhuk liiver, on (»r about September 1, 1881, and that in a skirmish with In- dians, at Fort Apache, on Sej)tember I, Lieut. C. G. (iordou, tSixth Ca\- alry, was wounded. 0. Act. Assist. Surg. A. S. Adler n^ported that in a figlit with Chiri- cahua Indians, near Cedar Si)rings, Ariz., on October 2, 1881, a sergeant of Comjtany F, Sixth Cavalry, was kiMed, and a private of the same troop, and 2 privates of Comi)any G, First Cavalry, were wounded. A 414 PAPERS ACCOMPANYING THE report from Assist. Surg. J. B. Girard jcives as additional casualties of this enftaj>emeiit: 3 privates of tlie Sixth Cavalry, ami 1 i)rivate of, Company B, Eighth Infantry, killed by the Indians ^vhile repairing the military telegraph line between Cedar Springs and Fort Grant, Ariz., on October L', 1881. 7. Acting Assist. Surg. W. Whitney reports that in an engagement between United States troops and Apache Indians, near Sontli Pass, Dragoon Mountains, Ariz., on October 4, 1881, 3 privates of Company F, Ninth Cavalry, and an Indian scout were wounded. 8. On April 23, 1882, at Horse Shoe Canon, Ariz., in a fight between Troops C a^id G, Fourth Cavalry, and hostile Indians, 1 private of Company C was killed, and a sergeant of Company C and a private of Company G "were wounded. The sergeant's wound i)rovcd fatal on April 25. Acting Assist. Surg. W. Whitney reported the casualties. 9. In an engagement between the first battalion of the Fourth Cav- alry and a body of Indians at Stein's Peake Kange, N. i\Iex., April 23, 1882, 4 Indian scouts were killed and 2 privates of Company IT, Fourth Cavalry, were wounded. Acting Assist. Surg. M. G. Cockey, who ac- companied the troops, remarks that "the bodies of the 4 Indian scouts were so badly burned by the hostiles that it was impossible to find out the location of their wounds, although I examined them closely.'' 10. Acting Assist. Surg. W. C. Bruus reports that a private of Com- pany M, Sixth Cavalry, was killed and another wounded in an engage- ment with Indians at Hatchet Mountain, Ariz., April 28, 1882. Ten thousand one hundred and sixty-eight cases of injuries and op- erations reported in the Army since the publication of Circular No. 3, War Department, Surgeon-General's Office, Washington, August 17, 1871, had been collected tvt the close of the fiscal year ending June 30, 1881. To these have been added 921 cases, viz, 114 injuries of the head, 3G of the face, 11 of the neck, 151 of the trunk, 167 of the upper extremities, 124 of the lower extremities, 138 simple fractures, luxa- tions, and sin-ains, and 180 miscellaneous injuries, making a total of 11,089 cases, namely, 2,613 injuries of the head, 392 of the face, 80 of the neck, 804 of the trunk, 1,933 of the upper extremities, 1,274 of the loAver extremities, 2,691 simple fractures, luxations, and sprains, and 1,302 miscellaneous injuries. , In 86G cases of injuries received during the war, additional informa- tion in regar(lto remote results has been collected in the Pension Office. In 2,323 instances, information from casualty lists and reports of opera- tions has been furnished in cases of applications for pensions. PKOPERTY DIVISION. Medical and Jiospiial supplies. — The money value of the medical and hospital supplies issued during the fiscal year ending June 30, 1882, was $181,333.80. Owing to reductions heretofore made by the Committee on Appropri- ations from the amounts estimated by the Surgeon-General as required for the Medical and Hospital Department of the Army, it has been neces- sary to issue for use certain medical and hospital sni>plies left over from the'^stock on hand at the close of the war of the rebellion, which have to a greater or less extent deteriorated by age, and, though innocuous, are of very uncertain strength and therefore not, in the iiroper sense, fit for issue. Even this expedient will not avail and cannot be depended on in the future, as these supplies are now exhausted by issues and must be replaced by purchases. An increase of $50,000 over the REPORT OF THE SECRETARY OF WAR. 415 amount usually appropriated lor this purpose \vill be required during the fiscal year ending June oO, 1884, anf artificial limbs, as was probably the intention of Congress, that is, that a truss shall be furnished to every one who is ruptured in the line of his duty while serving in the Army or Xavy. LIBRARY. TIk' library of this office is devoted entirely to medicine and its branches, no purchases being miule of books belonging to general or miscellaneous literature. The works in it are not duplicated in any other library in Washington, excepting only those copyright American 416 PAPERS ACCOMPANYING THE medical books of which specimens are deposited with the Lil)rary of Conjiress. Many of these are also presented to this library, so that this small djii)li('ati()ii causes very little expense. Xo advantage would accrue from mcrj;ing this library with any other; its size and impor- tance and (he demands made upon it beini; such as to require the serv- ices of a specially skilled medical officer lo make it as useful as it should be, and to preserve for it the interest or the medical profession of tlu^ country, to which much of its completeness is dlie. The additions to the library during the past year include about 3,200 volumes and 3,500 pamphlets, n)aking the total number in the collec- tion about 57,000 volumes and 03,700 paniphlets. The printing of volume III of the Index Catalogue has been com- pleted and the edition distributed. This volume ends with the end of letter J). The manuscript of volume IV, which will include the letter E and part of F, is nearly ready, and the first part of it is now going to press. The use of the library by the medical profession throughout the country is steadily increasing, and the requests for information made upon it involve much research and extensive corresiMjndence. Over three hundred such requests were received during the year, ccxm- ing from all parts of the United States, and the total number of letters sent from this branch alone was over 1,000. An estimate has been forwarded for printing volume V of the Index Catalogue, and it is specially desirable that this appropriation be granted in order that no delay may occur in the issue of this work, the practical value and utility of which becomes more and more apparent as successive volumes are published. AE3iy IMEDICAL 3ITJSBUM. Surgical eection. Specimens in the museum, Jtily 1, 1681 7,075 Specimens iuthe museum, July 1, 1^82 - , 7, 130 Increase during the year 55 Medical section. Specimens in the museum, July I, 1881 - 1,570 Si)c,cim*u8 ia the. museum, July 1, 1882 1,615 Increase during the year 45 Microscopical section. Specimens in the museum, July 1, 1381 8,471 Specimens in the museum, July 1, 1882 8,400 Increase duiing the year IS Anatomcal section. Specimens in the museum, July 1, 1881 » 2,121 Specimens in the museum, July 1, 1882 2, 13"^ Increase duiing the year 1~ Section of comparative anatomy. Si)ecimen8 in the musei'.m, July 1 , 1881 - 2, 44^ Sijecimens iu the museum, July 1, 1882 2,467 Increase during the year 19 REPORT OF THE SECRETARY OF WAR. 417 2Ii8ceUane(ms neciion. Specimens in the niuseiiui, July 1, ISSl 707 iSpecimeus in the museum, July 1, l."i82 ; 724 Specimens received 20 Specimens transfcired :? Iucrcii.se during the year 17 The contributors to the Army Medical Musenm were y siirf;eons, i^i assistant surgeons, 1 medical storekeeper. C actiuir assistant surg(jons, 2 liospital stewards, an. White, surgeon, at Wilton, Conn., August 10, 1881, I\laj. William M. Notson, surgeon, at Columbus Barracks, Columbus. Ohio,' June 23, 1882. Capt. William E. W^Litebead, assistant surgeon, at Tarrytown, N^. Y., January 10, 1882. Cai)t. Carlos Carvallo, assistant surgeon, at Winthrop Beach, Mass., July 23, 1882. Capt. Peter JVIoflatt, assistant surgeon, at Fort Cceurd' Aleue, Idaho, June 15, 1882. Capt. Florence O'Donnogliue, medical storekeeper, at New York City, Juue2V), 1882. Maj. John H. Frantz, surgeon, entered the service as an assistant surgeon. May 28, 1801, and w\is promoted to surgeon, with the rank of major, Decend)cr 10, 1807. lie was appointed cajjtain, major, and lieutenant-colonel, by brevet, for faithful and meritorious services dur- ing the war. Served in general hospital in Georgetown, D. C, from date of appointment to August, 1801 ; on dut;\ with battalion of Eighth and Nineteenth Infantry to July, 1802; medical i)urveyor at Fort ]\Iou- roe, Va., to December, 1803; medical i)urveyor, district of North Caro- lina, to February, 1804 ; iu charge of Balfour general hospital, Ports- mouth, Va., to July, 1805; in charge of general liospital. Fort ]\Ionroe, Va., to April, 1800; on duty at Camj) Grant, near Kichmond, Va., to September, 1807; post surgeon, Fort C. F. Smith, Mont., to April, 1808; i>ost surgeon, Fort Sanders, Wyo., to October, 1870; post sur- geon. Fort I). A. Pussell, ^V'yo., to December, 1871 ; post surgeon, Columbia, S. C. to May, 1875; post surgeon. Fort Preble, Me., to^May, 1878. Was on continuous sick leave from October, 1877, to the time of his death. Maj. Charles B. White, surgeon, was appointed assistant surgeou 3Iay 28, 18()1, and was i)romoted to surgeon, with the rank of major, October 1, 1875. He served at Fort jMonroe, Va., and in the Army of the Potomac. After the battle of jMalvern Hill he renuiined with the wounded left in the hands of the enemy. He served as surgeon in- chief of the Artillery Pescrve in the Army of the Potomac, and after- wards took charge of the general hos])ital at Pittsburgh, Pa. In De- cember, 1803, he was detailed as medical purveyor of the Thirteenth Corps, Army of tiu'. Tennessee, and ])arlicipated in the nmrch through ]\Iississi])i)i, Louisiana, and Texas, ser\iug in the last mentioned Slate as medical director. He was medical purveyor at New Oi-leans, La , until May, 1808, and also acted as ])ost surgeon at Jackson Barracks, New Orleans, during the ])revalenee of the cholera. I'ost suigeon at Fort Sehuyh'r, X. Y., to June, 1870, and at Camp Jndei»endence, (.'al., to]\Iay, 1870; then at Columbus Bajracks, Oliio, to July, 187!>. From this date to the time of his denth he was on sick leave, with the exce]>- tiou of a few weeks in the hitter j)art of 1880, when he was engaged on temporary special duty. In JMarch, 1805, he was made captain and nuijor, by brevet, forfaitUtui and meritorious services duriug the war. 420 PAPERS ACCOMPANyiNG THE Mfij. William M. Notson, surj?oon, was appointed assistant surgeon July ."3, 1.S02, and i)roin()t('d to sui^if^on, with the rank of major, Decem- ber 31,187(J; was appoint.S;^iost surgeon. Fort Concho, Texas, February, 18G8, to July, 1872; post sur- geon. Fort Mackinac, Mich., from August, 1872, to Septend)er, 1873 ; {lud at Fort Gratiot, Mich., to December, 1877 ; ])Ost surgeon, 1^'ort Mc- Kinney, Wyo., from January to Sej^tember, 1878. Was a member of the Army Medical Examining Board at Kew York City, from February to July, 1879, and post surgeon, at Columbus Barracks, Columbus, Ohio, from July, 1879, t-o the date of his death. Capt. William E. Whitehead, assistant surgeon, was appointed April 13, 1803. Breveted captain, March, 1865. Was in charge of general hospital, Ironton, JMo., from May to September, 1803 ; on duty in gen- eral hosi)ital, No. 3, Murfreesboro', Tenn., November, 1SG3, to January, 1864; in the field in the Department of the Cumberland with the Fourth United States Cavalry from January, 1804, to January, 1805 ; inspector of hospitals, Nashville, Tenn., January to April, 1805. On duty at post hospital, Milwau'kee, Wis., from July to November, 1805, and at Cape Disappointment (Fort Cauby), Wash., from January, 1800, to April, 1809. Post surgeon at the following posts in New York Ilarbor: David's Island from July to November, 1809 ; Fort Wood, November, 1809, to October, 1870 ; Fort Columbus, October and November, 1870, and again at David's Island from November, 1870, to June, 1872. Post surgeon. Fort Brown, Texas, July, 1872, to April, 1870; at Camp Sup- ply, lud. Ter., from July, 1870, to February, 1877, and at Fort Eiley, Kans., June, 1877, to October, 1878. Was on sick leave from December 1877, to the time of his death. Capt. Carlos Carvallo, assistant surgeon, was appointed May 14, 1867, and served at Kalorama general hospital, Washington, D. C, from that date to July, 1807. Post surgeon at Sedgwick Barracks, Washington, D. C, to December, 1867. Post surgeon at Fort Eichardsou, Texas, from March, 1868, to February, 1869 ; at Jefferson, Texas, from March, 1869, to June, 1871, and at Fort Griffin, Texas, from July, 1871, to June, 1872. Post surgeon at Fort Gratiot, Mich., from September, 1872, to September, 1873; at Fort Mackinac, Midi., from September, 1873, to October, 1874; at Fort Stanton, N. Mex., from December, 1874, to Sep- tember, 1876; at Fort Union, N. Mex., from October, 1876, to ]\Iay, 1879, and at Fort Laramie, Wyo., from December 5, 1879, to November, 1881, when he was granted sick leave of absence, which continued until he died. Capt. Peter Moffatt, assistant surgeon, appointed October 9, 1867. Served as post surgeon at Camp Harney, Oreg., to October, 1869, and at Fort Boise, Idaho, to December, 187i. Was on duty at Fort Leav- enworth, Kans., to May, 1873 ; post surgeon at Fort Union, N. Mex., to April, 1874 ; at Fort Garland, Colo., to September, 1876, and at Fort Foote, Md., April and May, 1877. Post surgeon at Fort Mackinac, Mich., from June, 1877, to June, 1879 ; on duty at Camp Winfield Scott, Wash., July and August, 1879; post surgeon at Camp Chelan, Wash., from September, 1879, to October 5, 1880. Post surgeon, Camp Spokan, EEPORT OF THE SECRETARY OF WAR. 421 Wash., from November, ISSO, to February, 18S2 ; post surgeou at Fort CcEur d'Alene, Idaho, Iroin ]\Iarch to his death in June, 18S2. Capt. Florence O'Doniiojihiic medical storekeeper, Nvas appointed as such August 3, 18G7, ami w as on duty at the medical purveying depot, lyfew Orleans, La., until May 7, 1871; at medical purveying depot, New York, from September, 5, 1871, to his death June 21), 1882. 0. H. CRANE, Surtieon-Gou'ral, U. S. Army. # EEPORT OF THE PAYMASTER-GENERAL. Paymaster-General's Office, WaHhinciton, October 10, 1882. Sir: I have the honor to submit my annual report of the transactions of the Pay Department of the Army for the hscal year ending June 30, 1882. Tabular statements herewith inclosed show in detail the fiscal opera- tions of the department for that year, summarily stated as follows, viz: RECEIPTS AND DISBURSEMENTS DURING THE FISCAL YEAR ENDING JUNE 30, 1^82. IJalance in hands of payrnasttMS July 1, 1881 ??1, 345, 301 56 Amount received tiorii tli« Treasury IW, 905, 541 38 Amount received from soldiers' deposits 448, 5G6 83 Amount received from paymasters' collections 43^,835 80 Total to be accounted for 15, 13'2, 245 57 Accounted for as follows : Disbursements : To Regular A rnvr $12,559,005 69 To Military Atad.-my 176, 038 89 To volunteers, claims of freedmeu, &c., ou Treasury cettiticates 445, 377 03 Total dislmrHcnients 13, 180, 421 Gl Surplus funds deposited in the Treasury 133,312 71 PH.vmasters' collections deposited in the Treasury 432, 835 fcO Halauce in hands of paymasters June 30, 1882 1,385,675 45 Total accounted for 15, 132, 245 57 The Army has been paid during the year with regularity, each muster period being closely followed by prompt ])aymeut. The ollicers of this department have shown tJiemselves to be highly efficient in the discharge of their duties, whicli, in some parts of the country, have been attended with many hardships aiul much danger. 1 recommend tliat tlie actof July 29, 1870, be so amen(h'd as to allow, ill tin; discretion of tlie Secretary of War, one month's leave of absence to olliccrs of the Army, without deduction of pay or allowances, for each year during wiiich such absence has not been taken. l><«tter still would be the repeal of all laws alVecting tiie pay of officers while on leave. Ati olUcer who is entitled to leave should have full i)ay while absent. The discretionary i)ower of granting leaves resting in the command- ing generals and the Secretary of \Var would guard against any abuse of the privilege. 1 recommend the repeal of that ])rovision in act of July 24, 187(1, which forbids x><'iyiin'nt of mileage over land-graut railroaT, War Kecords Office, REPORT OF THE SECRETARY OF WAR. 423 REPORT OF PUBLICATION OF WAR RECORDS. [E>T, War Records Office Washington, U. C, October 23, 1882. To the Secretary of War : Sir: I Lave the honor to report i)roj;ress in the publication of the niilitary r 4(i.lH(0 00 l«t»2-lciri3 :it;.3iHi w Total 1 IG, 3.00 00 Total expenditurea to date G7, 7-:^ 70 Balance available 4-'. .Ml :UJ The exi>enditures of tliis office for salaries and incidental expenses during the fiscal year ending June .*>(), 1,S8U, have been as follows: Hal.aries »34, Gf G G8 Kent 1,200 00 Traveliuji expenses ami exjiress tvans|)ortation 15;' or> Kuel and liRlitM :«8 94 Stationery, books, mni>s, panii>lilets, «!tc 1,981 43 OHice fiirnit are, earpcts, »Ve 1, 014 17 Repairs of olliee furniture and heating ajtitaratus 212 70 * Under current ax>propriatiua this expense is ptorided for iu the allotiueut for salaries. 424 PAPERS ACCO.MPANYING THE Telephor.c scrvir'- $170 53 Priut iiitr n>att'j iiil 310 49 Incidental la'.oi- 220 (Kj RecluciiJg niaiLS lor iinbliculioii « W 00 Ice 30 m Total 40, 480 08 Amount appropriatiMl 40,490 00 Surplus 3 32 The War I)oi)nrtinoi)t ajjont for the collection of Confederate military records contiimes to be successful iu obt:iiiiin.f; valuable docutuents. A niemoranduui of his collections during the y>nst twelve months is sub- mitted herewith. Some of the docuujents thus reported are duidicates of those already in tlie ])ossession of the Crovernment, and are therefore of no special value; but there are yet many original documents relating to the Avar scattered about the country, and I recommend that the agency for collecting them be maintained while yielding, as it now does, a commensurate return. Yery respectfully, your obedient -servant, EGBERT ^T. SCOTT, Brenet Lieutenant-Colonel^ TJ. S. A. REPOUT OX ^HLITAEY PRISON, FORT LEAVEis^WORTH, KANSAS. Governor's Office, United States Military Prison, Fort Leavenworth, Kansas, August 30, 1S82. Sir : I have the lienor to transmit herewith annual reports of the quartermaster, surgeon and cha])lain connected with this prison, for the fiscal year ending June 30, 1882. I also enclose tabular statement of labor performed, prisoners received, discharged, iS:c. During the past year, improvements have been made in and near the prison, as exhibited by the following details: One brick store-house, 30 by 80 feet, two stories high, slate roof; prison water-closet, frame, 12 by 24 feet; new officers' quarters, main house, 2G by 36 feet, wing 20 by 22 feet, ell 6 by 14 feet, both two stories, 20 feet high. Stable, 18 by 24 feet, 14 feet high. There were also repairs made on fence around the farm, from old material, the fence around coiTal rebuilt, and improvements made in Surgeon Wright's quarters. There have been made 319 feet curbing to protect sidewalks, and 1,599 feet coping around prison wall has been laid. 169 perch masonry, two crossings, one at the prison chaplain's, and one at Lieutenant Scott's, together, 220 feet, and necessary curbing, 110 feet, area in yard 9 feet 4 inches; window-sills, 296 feet. Work in the shop progressed very favoiably, and during the past fiscal year there were manufactured 33,113 pairs of boots, b. s.; 18,996 pairs of shoes, b. s.; 30,000 corn brooms; 2,236 barrack chairs; 118 sets of chair rods; 940 extra parts for chairs ; 1,292 packing boxes for boots, shoes, and harness ; 136 crates for packing chairs; also 127 sets, com- plete, of foiu-mule ambulance harness; 136 sets of six-mule wagon REPORT OF THE SECRETARY OF WAR. 425 harivss; 50 single sets of lead-iimle vragou Laruess and GO single sets of wheel iHule harness. Besides tbe above euunieiated articles, all doors, sasli, &c., as well as the necessarj' repairs to bnildiiigs, &c., were made by prison labor. During tbe year there has been 2,975 bushels of lime burned and used in building, repairs, sanitary ])ur|)oses, &c. In the shoe-shop care has be^25 94 19,061 11 Due i)rison Juue 30, 1882 13, 764 8'.i Expended on account of appropriation for support United States mili- tary prison for fiscal jear 1881 and 1882: Received : Regular appi'o])iiation .S62, 461 17 Expended 62, 461 17 Dcficleix'-y appropnation. Received: For snlisistcnce stores.. s:"!, 000 For l)uildiugs 2, OUO 5,0(K.) (0 Expended : For subsistence $1 , 002 'ifi For buildings , 2,000 0(» Turned into the Trta.siuv 1 , 997 45 000 CO The conduct of the prisoners has on the whole been very good, but few refractory cases necessitating severe disciplinary measures occur- ring. Sixteen iirisouers eseajicd; seven were recaptiueil : inakiug a loss of uiue. 426 PAPERS ACCOMPANYING THE The hcalMi of tho iiistitntioii, :is shown by inclosed report of the sur- {^eon, lias also been V(uy j^ood, (•onsi(h'ring tlie crowded condition of the dormitories; the new dormitory, nearlv completed, will add j;ieatly to the comfort of the ])risoneis re^ardin^' tlieir healtli. But two deaths oc- curred «lurinnt fund, there is not a doubt but that the future nuiintenance of the Home would be assured. The financial statement of the treasurer of the Home is submitted herewith, and is made a part of this report. JJy reference thereto it will be seen that the amount of money recei^ ed duriuf^- the year was $145,932.13, and the amount exi)ended was .■^142,8.S{).G0, leaviiipf a bal- ance of receipts over exi)enditures of $3,042.53. The investments held by the Home, and in which there has been no change durin*; the year, are $780,000 in United States 4 i»er cent, bonds, $40,000 in G per cent. Missouri State bonds, and $02,500 in stock of the Voun^ Men's Christian Association Joint Stock Com]>any of Washington, D. C. It is proper, in this connection to state brieliy the character of the last-named stock, and to explain the relations between the ^^company^^ and the ^dissocia- tion" for the idea seems to be prevalent that there is no distinction be- tween them. The association was incorporated under an act of Con- gress approved June 28, 1804. The company Avas incorporated under an act ai)proved March 2, 1867, and S. P. Chase, O. O. Howard, H. D. Cooke, and other well known men of position, wealth, and integrity were named as the body corporate for the purpose of erecting a build- ing for the meetings of the association. They were authorized to have a cajjital stock not exceeding $200,000, upon which they were to pay, from the rents and reveiiues arising from the building, an annual interest of not exceeding i)er cent., and i^ay over to the direct<-irs of the Young I^Ien's Christian Association the surplus, if any, to be used in the purchase of the stock of the company^ and when the association should in thismanner absorl) all the stock of the company the latter was then to transfer the full title of the ])roperty to the association. Tlie company issued stock to the amount of $101,000, and realized therefor $157,340. The lot pur- chaseil and the ])uilding erected and furnished, including all expenses, cost $179,71H).23, to which should be added $0,705.03, which was paid as interest on stoclc before any revenues were received from the building, making $18(»,501.20 in all. This would make the indebtedness of the comi)any $29,101.20. The first proposition to the commissioners of the Soldiers' Home to invest in the stock of the company api)oars to have been luade in December, 1807, and, after about five months, djiring which it is found that due iurpiiiy was made into the luatter, the commissioners authorized the investment at 20 cents on the dollar below the face value of the stock. Interest at the rate of per cent. ])er annum was received 1)y the Honje semianniudly u])on the i)ar value of this stock until Jan- uary 1, 1873, when, the indebtedness of the company having increased to about $.'>0,000, the stocdcholders consented to relinquish the interest until the indebtedness should be paid. At this time the Young Men's Christian Association, which Avas a tctiant in tlie building owned by the company, was in arrears for rent to the amount of $4,10G.0(;. In part ])aymcnt of this the couipany accepted at par and canceled $3,000 worth of stock. From that time till May 1, 187(), the association again fell in arrears torrent $3,791.00, and, it being represented that there w;is no hope of the funds being raised to pay it, the company remitted it on condition that future rent must be satisfactorily secured. The security 428 PAPERS ACCOMPANYING THE acc',e])t<'(l Avas stock of tli<* <'oni])any, of which the association then pos- sessed G.S7 siiares, the face value of which was ij( 17,17/5. The tenancy of the association was continned under this arrangement up to the month of November, 1.S7S, Mlien all tlie stock was surrendered by the associa- tion and accejited by the coni]uiny, on account of rent, at 20 cents on the dollar. This i>art of the statement is made somewhat in detail to show that the Young MeiCs Citristian Association is not now connected with nor in any way interested in the property u])on which the stock held by the Soldiers' Home is based ; also to show that the exceedingly slow proexess made up to 1880 in reducing the indebtedness, which is now $33,000, would have been more rapid and satisfactory if the com- pany had not been coini)elled to accept its t)wn stock as part of the revenues. The property (the building) is an exceedingly expensive one to keep in re});iir, but the prosi)ect for realizing upon the stock is fair, as the following will show : The fnudson hand and invested September 30, 1882, was S4,741 93 The annual rental of store and other rooms is 5,730 00 The average annual receiiits for rent of Lincoln Hall is about 3,000 00 8,730 00 The regular annual cxiieuses are ; Tax on an assessed valuation of $IM),000...- 1,350 00 Pi-emium on ^67,500 insurance (fire) 396 25 Salary of janitor, $900, and secretary, $250 1, 150 00 Interest on loan at G^ i»er cent 2, 145 (X) Ligbtiufi and heating the building, about 700 00 Agent's fees for collecting rents — hall, 10 per cent. ; rooms, 5 per cent 586 50 6,327 75 The repairs and incidentals are about $400, so that the net revenue may be fixed at $2,000 per annum. The interest on the loan will be re- duced in two and one-half years to 6 per cent., and will have five j'ears to run at that rate. The indebtedness will probably be paid in from twelve to fourteen years, after which, if not sooner, the stock will have a marketable value. The only imi)rovement of importance made at the Home during the year was the construction of a sewer from the main buildings southward on the east side of the grounds, a distance of about 4,800 feet, to connect with the sewernge from the hospital to divert the drainage from the property adjoining the Home on the east, where it had for years been a cause of complaint. The cost of this work was $1,100. The number of inmates has been increasing from year to year, and the question of providing additional room for their accommodation is one which must be acted npon very soon. A very large percentage of the men require hospital accommodation and treatment. Many more who are old ^lud infirm, but who require no medical treatment, are necessarily kl])t in the hospital, where they can receive the care of attendants, and the accommodations for the sick and wounded are taxed to their utmost capacity. The number of persons who were receiving the benefits of the Home Septem- ber 30, 1881, was 588 The changes during the year ending September 30, 1882, have been as fol- lows: Admitted : Regular 127 Tenipurary 68 Readmitted (regular) 78 ^ " ^ 861 REPORT OF THE SECRETARY OF WAR. 429 Dropped by ■withdrawal, &c. : Regular 127 Temporary } 64 Dismissed (regular) 4 Died : Regular t 29 Temporary •_' Suspeudud (regular) 12 238 Receiving the benefits September 30, 1862 : Regular '. 610 Temporary i:{ 62:! Five of the men admitted temporarily were discliarfjed soldiers who were in need of food and shelter for a few dayt>. but who were not en- titled to full admission. The lack of acconnnodatious forbids the ex- tension of this privile^ue except in very extreme cases. The other tem- ])orary admissions were men \a1iosc right to the benefits appeared good, but needing evidence which was not at hand, and they Avere admitted until it could be obtained and acted upon. There has been a slight decrease in the death-rate as compared with the pa«t few years. (Considering the class of mcu bronglit together, the general health of tbe inmates has been good, and it would have been even better if many of the pensioners could have lM?en prevented from spending their money for intoxicating liquor. The attending surgeon reports that 26 per cent, of tbe admissions to the hospital were for in- ten)perance or acute alcoholism, the number of sucii cases being most frequent just after the re(;eipt of pension or extra duty pay. The aver- age number of patients in the hospital daily through the year was 7o, and the highest number at any time was S3. This is the utmost limit in the numbers that can be accommodated. The attending surgeon, Oapt. Calvin De AVitt, assistant surgeon United States Army, has been entirely devoted to his charge, and discharged all his duties to the satisfaction of the commissioners. In the month of December, 1881, a reduction of the working force u])on the Home grouu«ls and in the buildings was found to be neces- sary as a i>art of the acticui taken to reduce the current expenses, and all labor upon the driv«'s was ast season, and, with the exception of winter c;ib- bage and celery, all the jtroducts were al)undaut and the supply- was sufficient for the use of the inmates throughout the seasoiL ]\Iarch 27, 1882, the treasurer of the Home was authwized by the commissioners t() enter into contract with Mr. Thomas T. Keane, a butcher engaged in business in this city, to furnish the Home with meats, he being the lowest bidder under an advertisement previously made, i)ursuant to th(3 instnu'tions of the (rominissiouers given teii months before. Jt was asceitaine«l in the montli of June, ISSl*, that this contract had been annidled by the governor of the Home, and as it was found that the contiactor was then by released from the fidlill- ment of his contract, no action was undertaken toenfor«'e it at the time. Kecently new advertisements have been published, and a new contract 4.'>0 TAPERS ACCOMPANYING THE will, it is cxpectod, soon bo obtained nt favorable rates, wliicli the liigh l)riceR ])revni!inj;' tliroii.^li tlicpast snminerwoiild have made impossible. In the mean time tlie meats have been pro<5iire(l under an ananj^emeut made by the govcrnoi'of the Home witli ])arties IVom whom they were obtained before the eonti-aet was made with IMr." Keane. The other subsistence su])])li<'-s have been obtained from reliable t. Jonathan 1). Stevenson, Ei»;fhth Cavalry, wa« relieved asseere- tary and treasnrer .Inly 20, 1SS2, on liix own request, on account of ill health, and the duties of the ofticc were performed by Colonel Co^^^swell until September 0, 1881', when Capt. J^enjainin V. Kittenhouse (brevet major United Sates Army) retired, whose ai)pointment was made Au{,^ust L'3," 1882, took full charge. The oflicers now (ui (luty are: Col. Samuel D. Sturj;is, Seventh Cavalry (brevet major general), gov- ernor. Maj. Milton Cogswell (brevet colonel), retired, deputy governor. Capt. Benjamin F. Rittenhouse (brevet major), retired, secretary and treasurer. Ca[>t. Calvin De Witt, assistant surgeon United States Army, attend- ing surgeon. Very respectfullj-, vour obedient servants, R. ^rACFEP:LY, Commissary General of Suhfiistence U. S. A. E. C. DRUM, • Adjutant- General U. S. A. C. n. CJiANE, Surgeon- General U. »>'. J.., Commissioners of the iSoldiers^ Home. The Hon. the Secretary or War. KEPORT OX CONSTRUCTION OF STATE, AVAR, AND NAVY DEPARTMENTS' BUILDING, 1881. Office of Building for State, War, and Navy Depart3ients, Old Building, Navy Department, ITtii Street, Washington, D. C, July 1, 1882. Sir: I havft the honor to submit my animal report on the construc- tion of the building for State, War, and Navy Dejjartmeuts, in my charge, for the tiscal year ending June oO, 1882, as follows: No appropriation having yet been made for the west and center wings, all operations were cojihned to the north wing, continuing without in- terruption throughout the year. Some delay has, however, been o(;- casioued by the failure of contractors to deliver mat^'rials within the time required by their contracts, notably those for tlie cast-iron finish of windows, doors, &c., and for the juarblc tiles for corridor floor. At the beginning of the fiscal year all of the masonry of walls and floors was complete, and also the greater i)art of the iron work of the roof. The work u])on the latter was continued steadily and was finally completed on Septend)er 7. The slating was nearly finished about one week later, and the water-i)roof copper covering commenced' upon the concrete and mortar surfacing which had followed up the iron work after July 27. The entire roof was essentially finished on N(>vember 30. Work uj^on the heating ai)i)aratns with all the incid<'ntal air ut in ])0sitiun on tlie stairs. It is hoped that this will not materially delay the linal completion of the building. In the ofiGce the drawings of the approaches of this Aving, comprising a large amount of tine stone work, have been i)rei)ared nady for use when the small apjiropriatiun, neep 6 Sheet "copper aud iron 27 Lumber lor flooiH July 1 ' iIalio^;aiiv aud l)lack wal- nut luiiibico work 1882 I Jan. '25 Hair felt pipe covering. .. . J. G. & J. IT. Waters... I John B. Lord •. J. B. & J. M. ComoU.. Concord Granite Com- pany. Bartlett, Hay ward &. Co. do do Joseph Hall &, Co. $."?,4no.. $079.12.. $71, 380 . $15, 984 . $7,108.. $12, 148. $8,698.. Dwight fcHoyt Xatioual Tube Works. C O. Iliissey At Co E. E. JackNOD vV Co Uauiel A. Hall Geo. Ryneal, jr Edwaid A. Boyd John B. Lord 'Win. C'aininnck | Marv E. Godov I JoHepb M. Wllcatlov....: Wmi. n. Itauni I E. lleury i Itunuard ...^ EzeUiel Smith $47, 836, for doors and window.^, 05. 80, $1. aud .|l.oO per fool of wash- board. $I1,2U1.59 , .$2,o;!3 The S,".lauuinder Felting Company. $fi. .Wl.DS $3, KtC. .I.'i $3,62X.44 $1,,')8P,.85 $2,231 00 i-eiits per cnbic yd $1.220.50 ;M,".(' $2, Id. Irt S2. >-!»7. 07 $0,011 $15, 800, estimated... $659.05 Completed. Do. Do. Do. Do. Do. Do. In force. Completed. Do. Do. Do. Do. Da Do. In Cf>rc«. Do. Completed. Do. Do. In force. Do. Completed. 28 Ab 434 PAPERS ACCOMPANYING THE 24 24 Apr. 21 •26 26 May 10 10 10 25 June 8 Subject of contract. MaboKaiiy ;"itl ])ino iloora. lirouzo h.i: ilwaio . : Kydraiilic (^levator Sliif(i tliKir tlasjH. ui'inal mountings, antl sink l.advs. Wliito niaf1)lo basin slabs aud ba(^k.s. Marblo tilus, border and door sbibs. Lp.iri sash weights rtctnri) rods aud Hxtnres. GaB tixtiirea Marblo mantels do dn (Jaw cliandolicrs pjle vatur Iron ts Area elevator Contractor. Amount. PrpHRnt con- dition. A. IT. AndrcwH .t Co... IJoyikiiis and Di(rkinson Mamilacturijig Com- pany. Otis Bros. &Co Einil FritHch Clia.s. E. Hall & Co . ifS. i.w... $;i, 113. 10. Vorniont Marble Cora- itanv. Jas. H. McGill ......... .Tos(si)b Nouiuann ..'.... Mitibcll, Vance & Co.. Adolpli Klabi'r A. L. Faiu-bere &. Co.. Cha.s. E. Hall & Co C(M-)ieliu.'^i (jo Miinly aud (!oo])ftr Man- iiiVictuiing Company. Geo. C. Howard $1.5, .'iiio $1,1:5:3.00 .$141 $6, 602. 87, estimated .$1,021.11.. $1,(101). :'.(».. $1,401. 2.5.. $1,508 .$2,012 $1, S2U $0,670 $1,450 $700 Ill force. Do. D... Coiniilcted. Do In force. Completed. In force. Do. Do. Do. Do. Do. Do. Do. PROBABLE OPERATIONS FOR FISCAL YEAR lS82-'83. It is expected to complete tlie north wing' of the bnildiiiij, except the approache.s, and liaveit ready I'or occupancy by December 25, 1882, and to commence work on the approaches before that time. Shoukl the ap- propriation of $100,000 now asked for to complete the approaches be granted at this session of Congress, it is expected that the season will not have become so far advanced as to prevent the delivery of the cut granite and the flagging, all of which have yet to be put under contract, early enough to enable the approaches to be entirely completed in the fall of 1883. STATEMENT OF FUNDS. Total amount expended to July 1, 1882, on n,ortb wing $1,662, 918 02 Balance of appropriu,tion on liand July 1, 1882 215, 0(52 58 New appropriatiou required +0 complete the north wing approachss.. 100, 000 00 WEST AND CENTRE WINGS. No appropriation has yet been made for these wings — the last now required to complete the building. An estimate of $450,000 was sub- mitted in my last annual report, which amount, if appropriated at the present session of Congress, will enable contracts to be made for a com- mencement upon tlie preparation of cut granite. For the fiscal year ending June 30, 1884, however, the sum of $500,000 should be appro- priated to enable the work of clearing the site, laying foundations, and building the walls of the lower stories to be carried on, aud to prevent delay or interruption in the preparation of cut granite. THOS. LINCOLN CASEY, Lieutenant- Colonel Corps of jEng^ineers, United States Army, in charge. Hon. Egbert T. Lincoln, Secretary of War. KEPORT OF THE SECRETARY OF WAK. 435 BEPOKT OF THE CHIEF OF ENGINEERS. Office of the Chief of Engineers, United States Army, }Ya8hington, D. C, October 10, 18S2. Sir: I have the honor to present for your information the following report upon the duties and operations of the Engineer Department for the fiscal year ending June 30, 1882 : officers of the corps of engineers. The number of officers holding commissions in the Corps of Engineers, United States Army, at the end of the fiscal year was 101 on the active list and 9 on the retired list; the latter, however, nnder tbe law of Janu- ary IJl, 1870, not being available for duty. Since the last annual report the Corps has lost, by death and retire- ment, six of its ofiicers : Lieut. Col. Nathaniel Michl«r, who died at Saratoga Springs, N. Y., July 17, 18S1; Maj. Charles W. Howell, who died at New Orleans, La., April 5, 1882 ; Maj. William J. Twining, who died at Washington, D. C, May 5, 1882; Lieut. Col. Eobert^. William- son, who was retired June 23, 1882, in conformity with provisions of section 12i>l, Revised Statutes; and Cols. Henry W. Benham aiid John N. Macomb, who were retired June 30, 1882, under the provisions of section 1 of the act of Congress approved June 30, 1882. There have been added to the Corps, by promotion of graduates of the Military Academy, one second lieutenant and two additional second lieutenants, whose commissions date from June 13, 18S2, but who did not become available for duty until alter the close of the year, and are, therefore, not included in the strength of the Corps. On the .30th of June, 1882, the officers were distributed as follows : On duty, Office Chief of En riatioiis for new works or for the modification of onr exist- ing sea-coast defenses have been made for many years. These latter consist of two classes — casemate defenses and earthen defenses. Onr casemate defenses, than which there were none stronger in the world in their time, were built in the days of smooth-bore guns, and when wooden walls were the only protection of guns afloat; but the masonry scari)S of these defenses, long since out of date, would not adequately resist the fire of the powerful rified guns with which the powers of Europe have armed their ships of war, and the casemates or gutj-rooras are too small in all their dimensions for the use of modern sea-coast artillery. The fronts of modern casemated works are either constructed entirely of iron, or haA'e massive shields of iron for the protection of guns and gunners. AVe have not a single work of either kind. The parapets and traverses of earthen batteries, when constructed of thicknesses now deemed sufficient by military engineers, require grt*at de- velopment of space, many times greater than formerly, and the sites at the headlands and within many of oirr harbors suitable for the defense of our cities, navy-yards, and arsenals of supply by means of such bat- teries are comparatively few. Most of these sites are now occupied by earthworks, some of which were constructed many years ago. TJieir parapets are thin, their traverses are not high enough or thick enough to meet the requirements of a good defense, and some are without any traverses whatever, and are antitpiated and inetficient. While the re- maining number of oiu* earthen batteries are comi)arativ<'ly modern and have thick parapets, high and thick bonneted traverses, well-pro- tected magazine and shell rooms, and platforms adapted for modern can- Rp:rORT OF THE SECRETARY OF WAR. 437 noil, they were but ])artially finished when Congress ceased to make appropriations for fortifications, and they are fast being destroyed by the elements by reason of their inconipletiou. In respect of submarine mines or tor])edoes we are better prepared, altlioiigh much remains to be done to make this part of our system complete, as will be seen further on. Although torpedoes cannot be re- lied upon alone to exclude the war ships of an enemy, for the reason that if he is not exposed to the fire of fortifiations on shore he can by means of his boats grapple for and remove the tori)edoes at his leisure, they are an indisjiensable adjunct to fortifications in modern harbor de- fense. As many torpedoes as the appropriations for the purpose have allowed have been purchased and stored in the fortifications of some of our principal harbors, ready to be jilanted in their channels and fairways and considerable numbers of electrical instruments for firing them from the shore have also been acquired. Whde this has been done, and the plans of the torpedo lines and groups have been prepared for some of the most important of our harbors, they could not successfully be utilized in the event of war for the want of the subterranean masonry galleries leading from th^ fortifications to low- water which are necessary for car- rying the wires connecting the torpedo lines with the electrical instru- ments on shore. These instruments must be placed in chambers within the fortifications, hidden from the enemy's view and protected from his shot and shell. Xor have the chambers themselves been constructed, except in a very few instances, for the reason that appropriations have not been made for them, although this department has for some years past, in its annual reports, presented the impolicy of delaying these im- ])ortant constructions until the breaking out of foreign war. In former elaboraie reports from this department, esi)ecially the re- ports tor the years 1880 anlaced in chambers within the fortifications, hidden from the enemy, aiul secured beyond all peradveuture from his direct and curved fire. These gal- leries and chambers must be covered with heavy masonry arches and great masses of earth, and the former, to be effitiient, nnist be indu- rated, and the latter compacted by time. The tor])edo lines must be served by officers selected from the Engineers and Artillery, assisted by detachments from a torpedo cor])S of intelligent and skilled Engineer soldiers, and both officers and men must be thoroughly instructed in the theory and practice of electricity and tori)edo obstructions, for they must know how to render the torpedoes instantly harmless for our own vessels or active against an enemy's. Heavy mortars must be placed in large numbers to command all those positions where an enemy is likely to anchor within their range, either for the purpose of tampering with or destroying our torpedo lines, or shelling our cities and public depots of military and naval supplies. The efficiency of mortar batteries against shipping is acknowledged by all military engineers; it is fully aijpreciated by the navies of all nations, and they are comparatively inexpensive. Our guns and mortars must be capable of piercing the sides of his iron-clads and of breaking in his decks, and they must be mounted in numbers sufficient to make it impossible for any of his fast- running war steamers to get past our works. That our actual sea-coast defenses are farfrom filling these conditions is evident from what has preceded, and to this it may be added that our fortifications, such as they are, are but i)artially armed, even with the old ordnance ; many of our gun batteries -are without guns, and our mortar batteries are without mortars; we have no carriages for barbette guns of large size, except those which require tiie cannoneers to mount the parapet to load, thus exposing them to be picked off in detail by an enemy's sharpshooters; and we have less than two hundred Engineer soldiers for torpedo and all other engineer service, Avhile five hundred and twenty is the least number which should be available to supply the detachments required for torpedo duty alone in our fortified harbors. It is believed that there is hardly any civilized nation so illy jjrepared for war, as far as maritime defenses are concerned, as the United States. The European powers have not neglected to avail themselves of the re- sults ©f their extended experiments and of the experience gained in modern wars, and they have expended large sums of money in the use of iron for their coast defenses, both in the form of turrets and of straight scarps, and to a limited degree in the construction of earthworks of great strength. REPORT OF THE SECRETARY OF WAR. 439 It may be that we are wiser than tbey in leaviu;;' tbe question «»f coast defense in abeyance; buttlie coin'inrent Judgmont and actions of nearly all other civilized countries resjiccting tiscir own dangers does not war- rant this opinion. In this connection attention is invitctl to a ineliniinary rei)ort, which is appended hereto, by Lieutenant IJixl>y, Corps of l-^ngineers, who, liy your direction, has visited most of the inaiitiine countries of Europe for the ])urpose of ])rocuriug certain information res]>ecting their use of iron in sea-coast defenses. (8ee appendix .'3, page 435.) Tlie estimates submitted, based on the several e>ti mates of the ofBcera in charge, exhibit tlie amounts which are deeuied necessary for the com- mencement, the continuance, and the completion of the several works of delense during the next iiscal year. Attention is invited to the estimate of $100,00t) for continuing the purchase of torpedoes, to be stored in our fort iticatioi*s, and jilanted, on the advent of war, in the channels and fairways of our imrbors, and for providing such i)Ortions of the electric apparatus by which the torpedo lines are to be tired as cannot readily be obtained in the event of sud- den hostilities. The material is not liable to deteriorate, and in the judgment of the Board of Engineers for Fortitit;ations not less than $100,000 should be expended annually for several years to <'omc in pro- viding these most necessary supplies. Attention is also invited to the item of $200,000 lor preparing our most impgrtant fortitications for operating torpedo lines, by providing bo^nb- proof chambers for the electrical a])paratus, and the bomb-proof subter- ranean galleries through which the electric wires are to be (tarried to deep water; all these being essential to the oi)eration of the torpetlo system of defense in connection with the Ibrtiticatious themselves. Tlie Board of Engineers for Fortitications, whose suggestive and valuable report will be found on page 411, urges its views on this important matter as follows: Tho debate in Congress njion the bill making provision for the cnrrenr year renders it evident that the vast iraportuuce of preparing our forts t'ov siuce.'^sfully operating and defending the torpedoes was not understood. Without sucliiireiiaration it would •be of little n.se to have them in readiness. They are all couUolled by electricity. To convey the electrical current insulated wires must, extend from a si-oure bomb-proof to each torpedo. If the^^e wires are not buried so deeply in the i-arth a^ to bo out of the reach of hostile artillery fire, a single lui.ky shot may destroy tlie powor of ex- ploding all the mines, and hence may open the channel to the I'liemy. Very low of on r forts are providrd with theso, bomb-proof operating-rooUiS and riiblc-shafts and galleries, and a spe(i;:l approi)riatiou is required for constructing them. After the breaking out of war the needful time would be lacking, and this nnitter cannot be urged in too strong language. The cost will be small — jirob.ibly s20O,0O0 would cover the more iniijortant stations on the Atlantic coast— and it is recommended that a special item for tliis purpose be inserted in the l)ill f.ir the coming year. Tln-se preparations are as necessary to our toi-jjcdoes as triggers are to our rided muskets; in fact, they may jierform a like function. I beg leave to quote from the same report the views of the Board of Engineers tor Fiutitications respecting the necessity for Lncreasiug the number of enbsted men in the Battalion of Engineers: Eefore any reasouable expectation of successfully defending our coast with torpe- does cau bo entertained another nuitter should reeeivi! attention. Torpedoes will not plant and operate lheui.sel ves. Tiiis must bn dom^ by .soldiers spefjuily trainod in the use of electricity and instructed in certain ditlieiilt and delicate mechanical opera- tions, lu every nation this duty is devriated for tlie protection, preservation, and rei)air of our fort ill cations, whicli more than any other national structures, with the exce])tion, perhaps, of light-houses, are subject to the destructive and deteriorating- etfects of tlie sea. The same amount will be found in the estimates for tlie next fiscal year. WASHINGTON AQUEDUCT. Officer in charge, Lieut. Col. Thomas Lincoln Casey, Corps of Engi- neers. The funds appropriated for the Washington Aqueduct for the past year were simply for its repair and maintenance and the necessary over- sight, to insure a regular supply of water to the city. During the year the level of the water in the distributing reservoir Av as raised to reference (140') above datum, and the quantity of overflow from this reservoir at the close of June was close upon 30,000,000 of gallons for twenty-four hours. The estimates of the officer in charge for the fiscal year ending June 30, 1884, are as follows : For engineering, maintenance, repairs, and con.stniction $55,000 00 By direction of the Secretary of War, the charge of the Washington Aqueduct was, August 11, 1882, transferred to Maj, G. J. Ly decker, Corps of Engineers, Engineer Commissioner of the District of Columbia ; Lieutenant-Colonel Casey being relieved at his own request. IMPEOVEMENT AND CARE OF PUBLIC BUILDINGS AND GROUNDS IN THE DISTRICT OF COLUMBIA. Officer in charge, Col. A. F. Eockwell, TJ. S. A. In addition to the care extended to the public grounds in the Dis- trict of Columbia necessary for their proi>er maintenance, snch marked j)rogress was made in the grounds south of the Executive Mansion as to cause them to present quite an inviting and park-like appearance. A most satisfactory improvement was made in Mount Vernon Square by the removal of the asphaltum carriage-ways formerly traversing it, and the small triangular reservation at the intersectionsof Ehode Island avenue and Ninth and Q streets northwest was graded, planted, and jjroperl^ inclosed. REPORT OF THE SECEETARY OF WAK. 441 Attention is invited to the dftailed report of the officer in charge, and his estimates for the coming fiscal year are recommended, as follows: For improvemeut and care of public bnililiugs and (grounds SlS^-J, 500 00 For compeusatioii of persons einploved on and around public buildings and grounds '. 48,400 00 For continf^ent and incidental fcxpcuKcs 50(j 00 For rent of oflice public buildings and grounds .- 600 00 232,0(X> 00 MISSISSIPPI RIVER COMMISSION. This Commission, organized under the provisions of the act of June 28, 1879, re])(»rts to and receives instructions from the Secretary of War through this office. Information regarding the progress of the Commission in its duties was transmitted to Congress, as required by the above act, in a report daced November 21, 1881, which was printed as Senate Ex. Doc. No. 10, Forty-seventh Congress, first session. Tliis r(])ort of the Commission, exclusive of its appendixes, together with a minority report of ^Nlr. James B. Eads, a member of the Com- mission, is attached. And also the message of the President of April 17, 1882, transmitting to Congress a letter from the Secretary of War, inclosing a reconinicudation from tlie ]Mississii)pi Kiver Commission that an appropriation of $1,010,000 might be made for closing existing gaps in levees in addition to the like sum for which an estimate had already been submitted. This was printed as Senate Ex. Doc. No. 159. MILITARY, GEOGRAPHICAL, AND LAKE SURVEY MAPS. In the Office of the Chief of Engineers. The compilation of the new outline map of the Territory of the United States west of the Mississippi, scale v. trs o-itoit? ^^^ been completed; the northwestern sheet has been engraved on stone, and considerable prog- ress has been made in engraving the southeastern and southwestern sheets. The compilation of a new outline map of the United States on a scale <^>f sTToinnTo has been commenced, and some progress made. The following maps have been photolithographed and an edition printed : Map of Nebraska, soalo ^yg ' oco . t)y Capt. W. S. Stanton, Corps of Engiueors, 1881. Map of the Dojtartnient of the Columbia, scale 16 miles to 1 inch, by Lieut. T. W. Synious, Cor])9 of Kiiirinct rs, 1881. Map of tin; Mis.-issippi Kiver from Lake Itasca to tbo Falls of Saint Anthony, in 17 shoots, scale 1 mile to 1 inch, by Capl . Chas. J . Alien, Coi-jis of Enginoors, 18el. Map of Lower Egypt and the adjacent country, compiled in the Office of the Chief of Engiueors, If^f'-i. Plaie23, to illustrate the final report of the survey of the Northern and Northwestern Lakes. The following have been engraved on stone and printed: Maj) of the Dei)artuient of the Columbia, prepared by Lieut. Thos. W. Symons, Corps of Engineers, 188".i. Plates 24,iir>,5>G. 27, 28, 20, and 30, to illustrate the final report of the survey of the Northern and Northwestern Lakes. Th(^ following engraved i»lat»\<< of charts of the Northern and North- westoiii Lakes have been electrotyped : Lake Ontario coast cliiirt. No. 2. Lake Ontario coast chart, No, 4. Lake Erie coast chait. No. 1. 442 PAPERS ACCOMPANYING THE * Lake Eric coasl. cli.-jiL No. Tj. North eij. Lake Mit:bi;;aii coast cliart, No. 7. Detroit River. Saint Clair Kivcr. Saint liawrcncc Ifivcr. Lake Erie coa.st chart, No. 7, is in the hands of th^- on^jr-nvcr. GEOGRAPiriCAL SURVEYS OF THE TERRITORY OF THE UNITED STATES WEST OF THE ONE HUNDREDTH ME- RIDIAN. Officer in charf;e, Fir.st Lieut. M. M. Macomb, Foiirtli IT. S. Artillery. No field-work was doue during tbe year, there being no funds avail- able for that purpose. Tlie duties of the office Lave been confined to the reductions and com- putations necessary for i)utting unfinished map material in shape for publication and to the distribution of i)ublislied maps and reports. Three plotting sheets and seven final atlas sheets in hachures were completed. Five other atlas sheets are in the hands of the compiler and final draughtsmen, and are in various stages of completion. One new land-classification sheet was issued, and editions of Vol. VII, ArchiEology, and Vol. Ill, Sup])lement — Geology, together with a second edition of the list of reports and maps, have been received from the Government Printer during the year. The operations of this survey are being i)ushed to a close as rapidly as is possible with the present office force. The amount originally appropriated for closing the work will not allow the publication of sufficiently large editions of the unissued nuips, nor furnish reissues of those maps now out of print and which have undergone revision. Lieutenant Macomb estimates that $5,000 would cover the expense of svich publication. His report with estimates is appended. RECONNAISSANCES AND EXPLORATIONS. The following-named officers have been on duty at the headquarters of the Army and at headquarters of tbe military divisions and depart- ments, and have been engaged during the \ ear in preparing such maps and making such surveys and reconnaissances as were required by their respective commanding officers: Lieut. Col. O. M. Poe (colonel and aid-de-camp to the General oft e Army). Capt. James F. Gregory (lieutenant-colonel and aid-de-camp to the Lieuteuant-General). Capt. W. E. Livermoi'e at headquarters Department of Texas. Capt. W. S. Stanton, at headquarters Department of the Platte until AugUv^t 22, 1881, and Lieut. Dan C. Kingman at same headquarters since September 29, 1881. i^ieut. T. X. Bailey at headquarters Department of the Missouri. Capt. Edward IMaguire at headquarters Dei)artment of Dakota. Maj. W. A. Jones at headquarters Division of the Pacific. Lieut. Carl F. Palfrey at headquarters Department of Arizona. Lieut. T. "W. Symons at headquarters Department of the Columbia. Lieut. Col. O. M. Poe, Cori:>s of Engineers, U. S. A., colonel and aid- d«-camp to the General of the Army, also on duty as a member of the RiTPORT OF THE SECRETARY OF WAR. 443 Light-House Board, lopoitti that the map of the opera t?ioJi.s at Savau- iiah, Ga., in December, 1S(>4, l»as been photolithograplied. A map of the country l)etween Cliattaiiooga and Athinta, and a map intended to illustrate the campaign from Atlanta to the JSea have been conii»leted. ******* ESTniATE FOR AMOUNT REQUIRED FOR MILITARY SURVEYS AND RECONNAISSANCES IN MILITARY DIVISIONS AND DEPARTMENTS. For military surveys, reconnaissances, and surveys of military reser- vations by the Engineer oUicers attached to the various headqimrters of military divisiuns and departments, being an average of $.j,OUO for each of the nine military divisions and departments west of the Missis- sippi iiiver, and $5,000 for publication of maps; total, $50,000. OFFICE OF THE CHIEF OF ENGINEERS. In the labors of I he ofiice the Chief of Engineers was assisted during the tiscal year ending June 20, 1882, by the following otilcers in charge of the several di\isious: First and Second Divisions. — Fortifications, Battalion and Enyin- eer Depot, Jjancla, Annamenis, FerKonnd, d'c, Maj. George LI. Elliot. Third Division. — River and Harbor Jntprorementu, tf-c, Lieut. Col. John G. Parke. Fourth and Fifth Divisions. — Property, Accounts; Estimates, Fundff, Survey of the Lakes, Explorations, Maps, Instnonents, d:c., Capt. Ilenry 31. Adams. Very respectfully, your obedient servant, n. G. Wright, Chief of Engineers, Brig, and Bvt. Major- General. Hon. Egbert T. Lincoln, Secretary of War. KEPORT OF THE CHIEF OF ORD^^ANCE. War Department, Ordnance Office, Washington, October 10, 1882. Sir: I have the honor to submit the following rejiort of the principal operations of the Ordnance Department duiing tlie liscal year ended Junt' 30. 1882, with such remarlcs and recommendations as the interests of this branch of the militaiy service seem to require. The liscal resources and expenditures of the department during the year were as follows, viz: AuKaint ill tlir Treasury to the crctlit of the apinopriations on Jinie 30, I.-'Hl ■ flOO.lSG n Aiiioinit iir tlu'Trt-asiMy not report i^tl to thei-retlit of the appntpriatioiis on .lui)«:{0, iS^fl '. :L',r.58 STi Amount in <^overrmioii» ilcpositoriHn to the crcilit of dishiirsiiig otticcrs ami otlu-rs on .Iiun- lid. l.^-'l 17r», 27H C>\ Amoiiiit of appropriatior.N forthi* si-rvice of thr lisrjil year t^uileil Jime ■M>, leH'J " l.TiiJ. 100 (.10 Auiouuts refunciod to urilnunco a}»propriutioiis in ^ctllinj^ a<*coiint8 dni- iug the Cscal year euiled June ;iO, l^'^J -M'yG Oo 444 PAPERS ACCOMPANYING THE Gross amount received iliiriiig tlie fise;i1 year ( ixlcd June :J0, IHH'i, from fi:ilc8 to otticers, fumi rents, from eollecUoiiM froui trooj)H on account of loHscH of, or iiny. from exclianf^e of powder and ju'iijeetilos, from sal(!a of condemned stores, and from all other sources not before mentioned $390, 40:i 50 Total 2,7?,A,ryi2 12 Amount of expenditures during the fiscal year ended June 30, 1882, in- cluding expenses attending sales of condemned stores, exchange of powder, &e $1, 069,270 50 Amount deposited in Treasury daring the fiscal year ended June 30, 1H82, as proceeds of sales of government projierty 200, 092 97 Amount lai)sed into the Treasury from the a])propriation "Ordnance matt^rial," under act of March 3, 1875, during the fiscal year ended June 30, 18^2 10,988 88 Amount turned into the "surplus fund" on June 30, 1882 318 03 Amount in government depositories to the credit of disbursing oilicers and others on June 30, l'.&> 216,943 83 Amount transferred from ordnance appropriations in settling accounts during the fiscal year ended June 30, 1882 267 81 Amount in the Treasury not reported to the credit of appropriations on June 30, 1882 7,391 69 Amount in the Treasury to the credit of appropriations on June 30, ISd-J 616,341 81 Total 2,733,022 12 STATIONS AND DUTIES. The statious and duties of the officers of the Ordnance Department are as follows : Three at the Ordnance Office; thirty-one at the arsenals, armory, a.tcency, and powder depots ; eij^bt on the Ordnance Board and at the foundries; eight at tlie several military headquarters and ordnance depots ; four at the Military Academy ; one under the orders of the Secretary of the Interior; one in the Life-Saving Service, under the Secretary of the Treasury ; and two on leave of absence, sick. Under the operation of existing laws one officer (Lieutenant Gordon) hfts been transferred to the department from the line of the Army, after passing a satisfactory examination. The Ordnance Department provides the armament for our sea-coast defenses, and arms and other ojdnance stores for the Army, the militia, the Marine Corps, all other executivedepartments, to protectpublic money and property, and the thirty colleges authorized by law to receive them for instruction. It has not only to provide these ordnance and ord- nance stores of the very best cpmlity and most perfect workmanship, but to determine on the most elective material for war i)urposes after long and careful study and tTial, and endeavor to keep abreast of the hurrying progress of the age. JRock Island Arsenal. — The interesting report of the commanding offi- cer is herewith submitted. The work has been prosecuted with most commendable skill and economy. Benioia Arsenal. — The last appropriation made by Congress for the workshops, will permit their erection at an early day, and place that arsenal in condition to do all the work required of it on the Pacific coast. San Antonio Arsenal. — The liberal appropriation made by Congress for buildings will provide all the storage room and facilities ibr repairs, so necessary in an arsemxl that supplies that long frontier. Ficeatinuy Powder Depot. — The commanding otticer makes a detailed report of tliat reservation, and of the work already performed and to be done, in the establishment of that iuiportaut depot of gunpowder. It REPORT OF THE SECRETARY OF WAR. 445 is hoped that Congress will continue to make liberal appropriations for it. Franl-ford Arsenal. — The interesting report made by the commanding officer is herewith submittal. This being the only cartridge factory belonging to the government, it should be fostered and sustained by liberal appropriations. Ordnance Notes. — 1 have also to submit some very valuable papers on Ordnance and other subjects, i)repared by officers of the department. Such paj)ers, ])ublished as "Ordnance Xotes," have given very general satisfaction. They are distributed freely through the Army, and contain so much of the military literature of the day as to enable those on the frontier and far front books and i)eriodicals to keep well informed of passing events and imi)rovements. SMALL- ARMS. There were manufactured at the National Armory, vSpringfield, Mass., during the last tiscal year ending June 30, 1882, 23,428 arms, viz, rifles, carbines, officers' rifles, and shot-guns. A large amount of work, re])fnr- ing, making spare parts, &c., was also done. On June 30, 1882, there were on hand 53,512 arms as a reserve supply. The Springfield breech-loiiding arms still continue to give satisfac- tion to the Army. As a single breech-lo;)der for trooi)s it has no superior, and it is contidenth' lielieved that it will hold its place until it is superseded by a magazine gun. MAGAZINE GUTfS. On my recommendation Congress at its Inst session provided for the manufacture or ])urchase of a limited number of magazine guns, should any be recommended by the Board then in session and authorized by the previous Congress. That Board assembled on the 5th of Jidy, 1881, Col. John K. Brooke, Third Infantry, as piesident, and continued in session until Sei)tember 30, 1882 — a period of fifteen months — when its rei)ort was submitted. Forty gTins on thirteen different systems — some being duplicates or modifications of others — were tried by the Board and subjected to cer- tain tests. These t\)rty guns were finally reduced to six, which were put through severe supplementary tests, ami the three guns that stood all f'he tests most successfully and s.ttisfnctoiily were recommended as " suitable for the military serviee.'' The guns, recommended in the order named, are tlui Lee, the Chalfee-IIeece, and the llotehkiss, and they represent the different systems of the detachable and tixcd maga- zines. These recommendations of the Board having been approved by the Secretary of \N'ar, steps will be taken to i>rovinipa]iy west of the Mississipi)i. 44b' PAPERS ACCOifPANTING THE MEDALS — REWARDS FOR TARGET PRACTICE. General Order No. 53 of Mny 15, 18S2 (substituted for General Order •ii, series of 1881), provides that suitably inscribed j,'old and silver jnedals be awarded to the successful marksmen in the department, division, and Army contests — to become the absolute property of the -winners. These medals are prepared at the Philad«;lphia mint, and are very creditable in design and finish, and will no doubt jjive the greatest satisfaction to the recipients and the Army. The last medals ordered are promised in three months, the preparation of the dies being delayed b}' other more important work. Next year, and thereafter, the medals will be ready before the contests begin, that their delivery to the suc- cessful men may be made on the spot. AR3IAMENT OF FORTIFICATIONS. Herewith are submitted several reports of the "Ordnance Board," on, tests and proof of guns and projectiles, made since the date of my last annual report. In October last an 8-inch breech-loading rifle and an 11-inch breech- loading rifle, converted respectively from a 10-inch and a 15-inch smooth-' bore, burst in jiroof by the rupture of the steel breech receiver made on the Krupp system. The fracture, commencing at the front corners of the slot for the breech block, next the cast iron, passed round the walls of the breech receiver in a plane transverse to the axis. Practically, the steel breech was blown off', leaving the cast-iron body intact. A thorough examination of the metal and fracture leads to the conclusion that the rupture was caused by defective design, aided iierhaps by the character of the steel. An 8-inch breech-loading rifle, with tlie sharp corners in the breech slot rounded off to prevent the beginning of rupture at those angles, endured 1U7 rounds, with charges of 50 and 55 pounds, of which 22 rounds were with a violent powder entailing high pressures — a most excellent record. The gun went all to pieces, showing that the parts gave equal sui)port to the system, and i)roving the excellence of the combination of metals, w^hen of suitable quality, and the design not faulty. The four 12-inch rifles that were contracted for under act of May 4, 1880, have not been made. The design contemplated guns of cast iron, Avith wrought-iron tubes and steel breech -receivers, on the Urupp sys- tem. These receivers had to be ordered from abroad, but when received and carefully tested, the metal not being up to the standard, they were rejected. Further work on the preparations for making the guns was suspended to await the report of the Getty Board and the action of Congress on the Board's recommendations. The "Act making appropriations for fortifications and other works of defense, and for the armament thereof, for the fiscal year ending June 30, 1882, and for other pnrposes," approved March 3, 1881, provides: And the President is authorized to select a board, to consist of one engineer officer, two ordnance officers, and two officers of artillery, whose duty it shall bo to make ex- aminations of all inventions of heavy ortlnance and iniiiroveiueuts of heavy ordnance and projectiles that may be inesented to them, including guns now being coustrnct«d or converted under direction of the Ordnance Bureau ; and said board shall make de- tailed report to the Secretary of AA^ar, for transmission to Congress, of such examina- tion, with recommendation as to what iuveutfons are worthy of actual test, and the estimated cost of such test ; and the sum of twenty-live thousand dollars, or so much thereof as may be necessary, is hereby appropriated for such pur^iose. Under this act a Board, of which General George W. Getty was president, was convened, and after laborious sessions, extending throngli REPORT OF THE SECRETARY OF WAR. 447 ten montlis, made its report to the Secretary of War May 18, 1882. The Board in its report recommended for trial, and for con.striiction and trial, the following jruns, viz: The Lyman-Haskell accelerating or multicharge guu,<)f G inches cali- lier, for trial. Dr. W. E. Woodi)ridge's plan of a Avire-woiind cast-iron B, L. gnu, v.ire soldered, of 1') inches caliber, for construction and trial. Plan submitted by the Chief of Ordnance of a <'ast-iron B. L. gun hooped with steel, of 12 inches caliber, for construction antl trial. Plan submitted by the Chief of Ordnance of a cast-iron B. L. gun, hooped and tubed with steel, of 12 inches caliber, for construction and trial. Plan submitted by the Chief of Ordnance of a cast-iron M. L. rifled mortar, hooped witJi steel, of 12 inches caliber, for construction and trial. W. P. Hunt's ])lan of a steel B. L. gun, of 10 inches caliber, for con- struction and trial. Dr. W. E. Woodbridge's plmi of a ])ra;ced steel-wire B. L. gun, of 10- inches caliber, for construction and trial. IMaTi sul)niittcd by the Chief of Ordnance of a steel-wire 15. L. gun of S inches caliber, ibr construction and trial. Dr. W. E. Woodbridge's phm of a steel B. L. gun, longitudinal bars, M ire- wound and soldered, of 10-inches caliber, for construction and trial. A wire-wra])i)ed 1). L. steel rifle, after the plan of Schultz, submittetl by Col. S. Crispin, of 9 inches caliber, for construction and trial. This report was transmitted to the Senate by the Secretary of Wai May 29, 18S2, but no action was taken by Congress at its last session to carry out the recommendations of the Board. These reconnneudations are now before Congress for its action, and the recent appointment by the Senate of a select cojnmittee "to take into consideration the subject of heavy ordnance an provide for our wants. It will doubtless be practicable for us to produce rille^l guns of moderaie jwuer even from ca.st iron, provided the cast iron be suitably strengthened with steel hoo])s, or, better, with hoops on the exterior and a steel tube on the interior. Such guns, how- ever, are very heavy in in'oportiou to their jjower. The substitution of steel wire for the hoops would seem to be an advantageous moditication, and its trial, as recoiujnendedby the Board, promises im])()rtant results. A similar plan is now being tried \v]^h experimental cast-iron guns in France. For the manufacture of rifled mortars, cast iron strengthened with steel hoops nxay be used to advantage. In the mortar very great strength is not needed, as th( charges employed are small; but since its lire is comparatively uncertain, it is necessary, in order that it may be edective, that what it lacks in accuracy may be made uj) by the num- ber of mortars used. With such ])ieces, therefore, cheapness and facil- ity of production are essential requirements, and the suiall charge and short boi'e adnut of using a comjiaratively light mortar. The material out of which-fuUpowcr guns must be made is uncpujs- tionably steel. All the lirst-class jiowers of Europe have adopted it. Even tiiose that have spent more millions than we have thousands in 448 PAPERS ACCOMPANYING THE the effort to determine on the most reliable metal for gun construction, are abandoning cast and wrought iron, either sim])le or in combination with other metals, and are now devoting their attention to steel, and to steel alone. .The marvelous strides in gun construction made witMu a year or two in the manufacture of guns of great strength and high power, j)oint to the conclusion that encouragement shouhl "De given in every way i)OSsil)lo to the mainifacture of steel in large masses suitable for this purpose. At present tentative efforts have deveUjped but little to encourage the hope that steel guns for coast defense can be produced in this country. Tlie use of wire- wound guns, if they prove as success- ful as recent experiments here and abroad make us hope, will greatly simplify the problem, by limiting the number and size of the steel masses needed, while the wire itself can now be procured from our own manu- focturers. Under the most favorable circumstances, however, the coun- try is in no condition at tliis time to undertake sucli constructions wholly out of home products, and the subject is of sufficient imj)ortance to ar- rest the attention and receive the careful consideration of Congress. This subject can only be successfully met either by estal)lishing a national foundry or by assisting and encouraging jirivate foundries to j)rocure the necessary plant and experience. POWDERS. Some further e3:periments have been made during the past year to ascert^iiu the suitableness of our molded powders for heavy gims, em- ploying large charges. With a coarse granulation and high density some very satisfa^-tory results have been obtained. With the 12.25-inch M. L. rifle, the charge has been augmented to 180 pounds, imparting a velocity of over 1,500 feet to a 700-pound shot without entailing a pressure of more than 29,000 pounds per square inch of bore. It is probable that the charge may be still further increased without overstraining the gnu. With a greater length of bore, such as could be inM)fitably employed with these large charges, there is no doubt but that a coiisiderably higher velocity would be attained. The subject of prismatic powders, of types similar to those employed in European ex- T>eriments, has also been under consideration, and aiTangements have been made to procure trial samples whenever we shall obtain a suitable gun for tt-stiiig them. It is believe*!, however, that our own type of powders possesses a suffi- ciently wide range of adaptability to enable us to meet very largely, if not to the utmost, the ])resent requirements of heavj- guns. It is my intention at least to continue their development by further experiments. PROTECTION OF SUBMARINE MINES. In February last the Chief of B^igineers referred to me a report of the Board of Engineers for Fortihcations of February 15, 1882, on the proper means of defending torpedo fields, and recommending volleys from large- bored guns, fired automatically — these guns to be so arranged as to sweep the whole space occupied by the mines and cables. The board suggested that experiments be made to determine suitable kinds of projectiles for the most effective flanking of tor[)edo lines, and that the attention of this department be invited to the subject. The papers were at once submitted to the Ordnance Board, with the necessary instructions to carry on su(;h exi)eriments as may enable this dei)artmeut to successfully meet this great want in the proper defense of our harbors. REPORT OF THE SECRETARY OF WAR. 44'J LIGHT ARTILLERY HOARD. In April, 1881, General Orders Xo. 39 convened a Board of artillery oftirers, of which Col. J. C. Tidball was i)resideut, "to consider the recent chiii)t;esin s,iins,harness,anoard I deemed of the tirst importance, as little had been done in that direction for some years. Tlie Board made a j^t'liminary report to enable this department to manufacture samples of carriaj^es, harness, &c., embodyinjj: its views, so as to present to a subsequent Board the articles or imi)rovements recom- mended, that action might be ta-ken on iiractical results. The prepara- tion of a metal field carriage, limber, and caisson hus been greatly delayed by the difficulty of i)rocuring suitable material in proper shapes, but it is coiitidently believed that we will be ready for the action of an artillery board at an early day. The large auunuit of artillery and its supplies left from the war, and the small api)ropriations available for sux-h purposes, has deterred the department irom entering until now upon the increased expenditures attendant on the introduction of new material. The adoi>tion of steel breech-loading field guns in all the armies of Europe calls for experi- mental action on our part, and I have now in course of preparation a design for a steel B. L. gun suited to the wants of our service, and have directed inquiries to be made into the possibility of making such a gim in this country from the products of our own foundries and workshops. It is believed that, with proper encouragement, held guns can be made here without the necessity of going abroad for the steel. U. S. TESTING MACHINE. The report, by the commanding ofticer of the Watertown Arsenal, of tests of iron and steel, and other materials for industrial pur})Oses, made during the last fiscal year, has been received, and will be submitted for transmission to Congress at the opening of the next session, a^ provided by law. In the last Army appropriation bill it is provided : And tbo Cbif'f of Orflnance sliall give attention to snch profjiaiume of tests as may 1)6 subniitft'd by the Atuorican Society of Civil Eugiueers, and tbe record of sucb tests sball be furnished said society, to be by them published at their own expense. I recommended the passage of this provision, believing it to be for the best interests of the public that those who are so largely interested in prominent and im]iortant constructions could best advise the department as to the tests most needed for present and future use. I was anxious that authority be given by Congress to jmblish monthly bulletins of tests made, that the engineer and the nianui'acturer might have the earliest ])0ssible information. The results given by the testing machine are for the benefit of the whole country, and the ]>eople should be iiermiited to utilize the results as fast as they are obtained. Tiiis can oidy l^e effected by their imme- diate publication, and I respectfully recommend that this be authorized. The capacity of tlie machine is limited to tests of extension and com- pression. I liiive been advised by distinguished civil engineers and by the commanding oHicer VN'atertown Aisenal that either additions to the present machine or additional machines should bo provided for the tests of torsional and transverse resistance. The latter is believed to be the better plan, and two other machines ought to be built. 1 have, there- fore, submitted estimates of ."^100,000 for the purpose. MILITIA. To more completely arm and equip the whole body of the militia, as contemplated by the act of 1808 making an annual appropriation of L'!> Ab 450 PAPERS ACCOMPANYING THE ."^200,000, Unit amount should be largely increased. The 1)111 (S. 1596) reported Croin the Senate Committee on Military Allairs, and now on the calendar, provides for a substantial increase to this appropriation, and contains other ini])()rtant provisions which would result in the f,Teate8t benefit to the militia. I strongly recommend i^s passage. It is as fol- lows : Be it oiactcd by the Senate and House of Jlcpresentntives of the United States of America in CouijrcsH assniibled, That section sixtfcn liiindrcd and sixty-one of the Revised StatnteM ho, aiul the same is hereby, amended and re-enacted so aa to read as follows: Skction 1. That the sum of six hundred thousand dollars is hereby annually appro- l)riated, to be paid out of anj"^ money iu the Treasury not otherwise appropriated, for the purj)ose of providing arms, equipments, ammunition, ordnance stores, and tents for tjie militia. Sec. 2. That said appropriation shall be apportioned among the several States and Territories on the books of the Ordnance Department by the Chief of Ordnance of the Army, under the direction of the Secretary of War, according to the number of Repre- sentatives or Delegates to which each State and Territory respectively is entitled in the Congress of the United States: Provided, ho^cerer. That eacli State and Territory shall only be entitled to the benefits of so much of the appropriation apportioned to it as the pro]iortion of the number of its regularly enlisted, organized, and unifonned active militia, as determined by the report of the Secretary of War niade on the pre- ceding first Monday in Fi'bruary, bears to the maximum number of active militia for which such State or Territory is entitled to the benefits of this act. And the amount of said appropriation which is thus determined not to be available shall be covered back into the Treasury. Sec. 3. That in time of peace the number of active militia for which each State and Territory shall be entitled to receive its apportionment of the appropriations made by this act shall not exceed six hundred regularlyTiuiformed-commissioned officers and enlisted men for each Representative and Delegate to which such State or Territory ia entitled in the Congress of the United States. Sec. 4. That the purchase or manufacture of ordnance, ordnance stores, and tenta for the militia under the provisions of this act shall be made by the Chief of Ordnance of the Army, under the direction of the Secretary of War, and they shall be receipted for and shall remain the property of the United States, and be annually accounted for to the Chief of Ordnance of the Army by thegovernors of the St-ates and Territories, for which j)urpose the Chief of Ordnance of the Army, nnder the direction of the Secretary of War, shall prescribe and supply the necessary blanks, and make such reg- ulations as he may deem necessary to protect the interest of the United States. Sec. o. That all arms, equipments, ordnance stores, or tents which may become unserviceable or unsuitable shall be examined by a board of officers of the militia, and its report shall be forwarded by the governor of the State or Ten-itory direct to the Chief of Ordnance of the Army for the action of the Secretary of War, who shall direct what disposition, by sale or otherwise, shall be made of them; and the pro- ceeds of such sale shall be covered into the Treasury of the United States. Sec 6. That for all the purposes of this act the District of Columbia shall be ac- 00 '.nted and treated as a Territory entitled to one Delegate iu Congress. The following quotations are from the committee's report, which ac- companies the bill: That iu addition to the resolution instructing us to consider the propriety of increas- ing the annual appropriation for the militia, there have been referred to us a large number of petitions from the officers of tlie militia relative to' an increase of the ap- propriation and other amendments to the existing militia law. And again : A simple statement of fact appears to be a sufficient response to the resolution of the Senate. That an appropriation fixed iu 1808 to provide for seventeen States, with a population of eight millions, is inadequate to provide for thirty-eight States with a l)opulation of fifty millions needs no argument. The Chief of Ordnance has for many years urged Congress to increase the appropriation ; it was considered and favorably ri!i)orted to the Senate by this Committee in the Forty-fifth Congress, and we think it would be difficult to conceive any reasonable argument against it. * » * It will be perceived that no provision is made as to the mode of apportioning the appropriation between the States, no requirements for accountability for the property furnished, or limitation on the disposition that the States may make of it. The greatest defect of the law, however, is that It does not allow the furnishing of tenta and other articles necessaiy to provide for camps of instruction. To this omission of the law is largely due the disparity between the difierent States in the strength and efficiency of the militia. REPORT OF THE SECRETARY OF WAR. 451 * * * V.'e accordingly report hore-with a bill to increase fbe annnal appropriation to SWO,000, and making provisions for its apportionment, and for the care, accounta- bility, and disposition of property isbucd under it. AVe also provide in the bill that each State shall only receive such projjortion of the amount apportioned to it aa the actual number of its active militia bears to a fixed maximum, and we believe this provision wisely calculated to foster and encourage the fonuation of volunteer organ- izations in those States where but few now exist. There have been no material changes in the law relative to the organization of the militia since its original enactment in 17'J2, and it is obvious that many of its provis- ions are now obsolete and manj' amendments desirable. Our standing army is a small one. For the defense of the country our main dependence is on our militia. The militia should, therefore, be kept in tlje best condition possible for actual service. Volunteer organizations in every State and Territory should be encouraged, and every eflort made to promote their efficiency in drill and discipline, and make them skillful in the use of their arms. It is the best way, and the only way, to render them a sure and safe reliance on the breaking out of war, and before a little campaigning has inured them to hard service and disciplined them" into okl soldiers. It is earnestly recommended that the special attention of Congress be invited to this subject, in order that the bill above quoted may re- ceive favorable consideration at the ensuing session. I have the honor to submit the following papers, heretofore referred to : Appendix 1. — Statement of i^rincipal articles procured by fabrication at the arsenals during the year ended June 30, 1882. Appendix 2. — Statement of principal articles procured by purchase at the arsenals during the year euded June 30, 1882. Appendix 3. — Statement of ordnance, ordnance stores, &c., issued to the military establishment, exclusive of the militia, during the year ended June 30, 1882. Appendix 4. — Apportionment for the fiscal year euded June 30, 1882, of the annual approin-iation of $200,000 for arming and equipx)ing the militia, under sections ICGl and 1GG7 Kevised Statutes. Appendix 5. — Statement of ordnance, ordnance stores, &c., distributed to the militia fiom .luly 1, 1881, to June 30, 1882, under section 1667 Kevised Statutes. Appendix 6. — Statement of arms, ammunition, «S:c., distributed to the Territories and States bordering thereon from July 1, 1881, to June 30, 1882, under the joint resolutions of July 3, 187(5, INIarch 3, 1877, and June 7, 1878, and the act of May 10, 1878. Appendix 7. — Statcinent of ordnance, ordnance stores, &c., distributed to colleges from July 1, 1881, to June 30, 1882, under soction 1225 Re- ^■i8ed Statutes. Appendix 8. — Statement of arms and ammunition i.ssued to the ex- ecutive departments during the yciu- ended .June .'^O, 1882, under tlie provisions oj' the act of 31arch 3, 1870. ApjHudixi). — licpoit of action taken during the year ended June 30, 1. — Report of the jirincipal oj»crations at the Itock Island Arsenal, Illinois, during the ii.scal year ended Juno 30, 1882, Lieut. Col. D.W, Flagler, Ordnance ]Je])artment, comniantling. AppcmJix 11. — Report qf the principal operations at the lienicia Ar- senal, California, during the Ii.scal year ended Juno 'M). 1S82, Col. J. McAllister, Ordnance Dejtartmeut, commanding;. Appendix 12. — Ee])ort of the principal opeialions at the Piccatinny powder depot, New Jersey, daring the Ii.scal year ended June 30, 18Si:, Maj. F. H. Parker, Orduaiiee Department, commanding. Appendix 13. — Eeport of the priucipiil operations at the Fraukford Ar- 452 KEPOiri' ov the secriotaky of war. scnal, P(Minsylvaiiia, dmiiii,' tlic liscal year ondod June 30, 1882, MaJ. S. C Lylbrd, Oidiianc.i', Dcpartineiit, coniman])arent, if the Navy is to longer sur- vive. OFFirERS AND SE A:\IEN. To cominniid and handU' thirty-one siicli sjjijjs and 204 such guns. DOW afloat, the naval establishnient siistainetl on .hily 1 tlie following officers, seamen, and apprentices: 45G llEPORT OF THE SECRETARY OF THE NAVY. 937 ofDcors, Ibcii on Hca duty, it'cciviuf^ an annnal pay of §1,880,900 G44 on ftboro duty and other duly (omitting cadots at the academy), re- ceiving l,r.G8,200 230 waiting orders and receiving 370, 300 (being 1,817 officers in all, receiving $3,825,400;) 7,074 seamen, receiving 2, 170,096 950 apprentices, receiving 152,556 While there were also 301 officers on the retired list, receiving 703, 180 To these should be added : , 77 officers of the Marine Corps, receiving 174,040 500 non-commissioned officers and musicians, and 1,500 privates, receiving. 389, 052 13 officers on the retired list, receiving 25, 858 Making the total annual pay of the Navy and Marine Corps 7, 440, 182 The enormous disproportion of 1,817 naval officers to thirty-one vessels in commission, being 59 officers to each ship, and one officer to every five seamen, with the possibility of the addition each year to the '^axj of 50 cadet-midshii^men from one-sixth the Congressional districts in the country, and of 25 cadet engineers, induced Congress, at the last session, to prohibit the increase of the naval officers, and .to direct a slight gradual reduction. The act of August 5, 1882, provided that thereafter no appointments in the Navy from graduates of the Naval Academy should be made except to fill vacancies; that no promotions should be made in the principal staff corps until the Medical Corps should be reduced 10, the Pay Corps 30, and the Engineer Corps 100, and that only one-half the vacancies in the line above the grade of midship- man should be filled by promotion, until there should be a reduction of 4 rear-admirals, 15 commodores, 5 captains, 5 commanders, 6 lieutenant- commanders, 30 lieutenants, 25 masters, and 25 ensigns. This reduction of 140 staff and H5 line officers by the gradual process of leaving vacancies unfilled works no real injustice to a single naval offi- cer. The reduced number of 1,562 officers will be amply sufficient for all the necessities of the service, even if the cruising vessels of the 'Navy should be doubled. The reduction provided for by the statute should be insisted uj^on, and it is worthj' of consideration whether a still fur- ther reduction, by abolishing the grade of master and reducing the num- ber of lieutenants to 225, may not be made without injury to the service and with profit to the government. If the grade- of master is retained the name should be changed to sub-lieutenant. The necessity of any further reduction of the naval officers might be obviated by extending the sphere of their active employment. The situa- tion and policy of the United States make it improbable that the coun- try will soon or often be engaged in naval warfare. The opportunities for naval officers to practice the art of actual war are remote. Yet the national safety depends upon maintaining, instructing, disciplining, and practicing at all times a reasonable naval force. To this end the offi- cers and seamen of the Navy should perform all the work required for the purposes of the national government upon or in direct connection EEPORT OF THE SECRETARY OF THE NAVY. 457 with the ocean. This clear and salutary principle should be deliber- ately adopted and efifectually enforced in all i)roper metliods by the national CongFes.s; and, if it shoidd be thus fully recognized and applied in all practicable ways, it would vastly invigorate, improve, and strengthen the Navy, without increased expense to tlie government, but, on the contrary, with results of positive economy. The efficiency of the naval servi<;e will be promoted by alt«'ring the present unvarying law of promotion by seniority and allowing all pro- motions to the grade of rear-admiral to be made by selection from the .commodores or cai)taius. The mode of selection might wisely be pre- scribed and regulated by law. The gi'ade of commodore is unnecessary, and should be abolished by omitting to fill vacancies as they happen: and, if not so abolished, all promotions to this grade should be made by selection from the captains. FAV0EITIS3I m THE NAVY. Military administration should be controlled by neither personal, so- cial, or political motives. The orders to every naval officer should be determined alter, first, a consideration of the public interests, and sec- ondly, an impartial comparison of the record and services of the officei- with those of other officers of like grade. If unjust orders "are issued, the officer can freely state the injustice directly to the Secretary, asking a reconsideration, and his rei)resentation will have due and candid con- sideration. The interference of others, if to secure only wliat is right, is unnecessary; if to accomplish what is wrong, is intolerable. An offi- cer who will procure or knowingly allow sucli undue interference may be charged with unbecoming conduct. NevertheJess, the practice has prevailed of soliciting and procuring favoritism for officers, by such de- vices and with such jjertinacity and influence as to createi a system re- sistance to which may make unenviable the position of the bead of the department. But if it is allowed to continue, the naval service will eventually become fatally demoralize 25 2.2 3 S o >■ 2 p- a M 00 • 11 .5« . "SIS Total. $107,462 31 $074, 202 65 1, 589, 733 52 2, 165, 343 00 540, 898 80 601,075 65 1, 138, 236 57 1, 271, 742 65 1,457,845 99 538, 858 46 $670, 766 11 1, 1,33 056 76 1, 005 9.i9 76 304, 868 93 376, 987 66 708, 189 27 841,971 78 877, 532 07 427,947 08 $153, 957 38 112, 915 19 912, 995 38 102,011 81 1,414, 410 88 15, 554 25 364, 755 89 2, 136, 297 66 742, 934 16 $1, 000 00 71, 607 88 35, 814 14 7, 962 68 128, 669 00 30, 086 58 9, 481 34 77. 931 08 80, 961 95 $1, 907, 388 45 1:52,434 94 138, 536 91 79, 550 32 51,794 21 110,702 91 108, 395 40 134, 786 31 50, 879 53 3. 039. 808 29 New York Philadelphia (old yard) . 4, 258. 659 19 1, 035, 292 54 2, 572, 937 40 2, 002, 769 58 i^orfolk 2, 596, 347 00 4, 684, 393 11 1, 847, 581 18 920, 542 84 10, 277, 937 29 6, 347, 289 42 5, 955, 832 60 443, 574 Co 23, 945, 176 80 REPORT OF THE SECRETARY OP THE NAVY. 459 Total expenditures under all bureaus, 1877 to 1881. [Excluding Mare Island.] I Por coD.stniction aud repairs of vessels. ' and for all other objects than suppoit For support ^ of yards, of yartls. >, Labor. Expended dminj' — 1877 >1,0R2.994 62 1878 1 2,278 906 88 1879 2,120, 2fSl 03 1880 2,0.')0,.691 79 1881 I 2,260,828 23 MateriaL 10, 714, 702 55 $811,172 01 $1,290,188 47 1.323.645 05 | 1,481,248 67 1, 200, 9ti7 15 1, 296, 322 69 983, 618 38 1 993, 492 71 1, 143, 6,'>2 18 1 1, 464, 666 84 Total. 5,463,0»4 77 i 6,52.5,919 38 $2, 101, 360 48 2, 804, 803 72 2, 497, 289 84 1.977,111 09 2, 608, 319 02 11, 988, 974 15 Expended at each navy-yard : Portsmouth 1, 106,368 07 Boston 1,383,228 55 Xew York | 2,056,100 K5 League Island 1,930, too 97 "Washington 1,706, .342 .50 Norfolk 1,641,197 77 Pensacula 891,063 84 810,212 47 1, 001, 718 ^i9 1,231,075 50 453, 3U2 70 1,155,050 43 778, 764 90 32, 870 22 110, 714, 702 55 ij 5, 403, 054 77 698, 718 54 1, 184, 849 55 2, 157, 531 87 521,482 87 1, 2;«, .521 20 689, 040 43 40, 768 92 6, 525, 919 38 1,50»,931 01 2, 1S6, 503 14 3, 388, 61 »7 43 974, 845 57 2, 388, .'■,71 63 1,407,811 23 73, 639 14 11, 988, 974 15 The folloATing statement sliows the number of naval officers, seamen and marines, and of civil employees awd workmen engaged at the navy- yards on the IGth day of ^STovember, 1S82, with the compensation paid the employees and workmen on that day, and what work was then in progress on ships of war. Navy-yards. a a s c« C as •• a li a S b a o.S g S «/ c — I a "5 1 Work in progress on ships of War. No. No. -Kf- Pay-roll ^°- 1 Nov. 16, -VT„ ! Pay-roll ^"- Nov. 16. fr. Payroll ^°- Nov. 16. PortsQioutb,... 23 55 72 37 4:1 50 8 38 81 228 1, 008 308 1.33 335 80 309 75 i $258 88 115 ; 368 41 103 1 330 76 64 1 228 88 104 1 305 80 106 1 318 50 19 ni 04 71 307 27 091 $1,681 32 336 ' 70'> n« 766 $1,940 20 Keiiairing Omaha .ind Plymouth. Repairing Shenandoah. Kcpuiriug Trentuo. Kepairiug Ossipeo. Nono. Uo. Do. Repairing Moliieun .lud Alert. New York League Island . Washington ... Norfolk Peiinut'ola ilaro island . . . 034 325 545 597 84 593 1, 539 22 1 T.n . 1, 869 98 803 27 1 389 1 1,032 15 1,153 40 I 640 1 1,4.50 38 1, 205 2fl 703 1 1, 583 82 131 85 1 103 I 212 89 1, 752 89 664 , 2, UOO 16 Total at all yards 326 2,501 657 2, 179 72 3, 805 1 1 9,139 65 ,4,462 ,11,319 37 It is clear that these eight navy -yards, involving so large an invest- ment of original ca])ital and such extravagant expenditures for main- taining them and doing work therein, will not bo re«iiiircd by any present or i)rospectivo wants of the country. Whether we are to maintain an obsolete, wooden navy or to constrnct new modein iron oi- steel war- sliips, uo such number and extent of navy -yards will be needed. No 460 REPORT OF THE SECRETARY OF THE NAVY. advocate oi' a stronger and bettor navy mgos the constiniction of many sbips or the maintenance of a large fleet. Upon any view, the magni- tude of our present navy-yards is grossly out of proportion to the use to be made of them imder any system of construction and repair of vessels or with any naval fleet likely to be built or maintained. The problem tlius presented, what is to be done with the navy yards, is not easy of imnjediate solution. If nev7 iron and st?eel shii)S are to be built or repaired in any of them, essential changes and expensive ad- ditions must be made. It is not probable that for this puipose more than two or three yards need be fitted up as complete modem naval workshops. But it is impossible now to decide what yards should be thus specially selected. It is also by no means clear that every other yard will not be wanted, if not for the constnictiou or repair of vessels, yet to be used as a naval station and arsenal for war material for the Kavy. At the harbors of Boston and Now York this government should not be without a pier or landing-place of its' own at which its naval. vessels can touch, nor wholly dependent upon private facilities. Any hasty discontinuance and sale of any of our yards will result in low prices, while if subsequent purchases of naval stations in the same har- bors become necessary, the cost w'ill be so great that the government will find itself a large loser at the end of the process of sale and repur- chase, by each of which land-speculators alone will have profited. To aid in deciding this difficult question. Congress in the act of August 5, 1882, directed the Secretary of the Navy to appoint a Commission to consider and report whether it is advisable to sell any of the navy- yards, and if so, which : and to rej)ort also certain facts, and their opin- ions thereon, bearing upon the question of sale or retention. Tliis com- mission was appointed October 9, 1882, consisting of Commodore S. B. Luce, Chief-Engineer Charles H. Loring, and A. B. Mullett, Esq., and they are actively engaged in the investigations necessary to enable them to perform the duties imposed by Congress. The immediate duty of the government with reference to the manage- ment of the navy-yards is, however, not doubtful. The expenses of maintaining them and of preserving the public property therein should be reduced to the lowest possible amounts; all unnecessary work should be discontinued, and all emi>loyees not needed should be dismissed. Progress in this direction has been commenced, in consequence of the clause in the act of August 5, 1882, authorizing the Secretary to close some of the yards rather than make any deficiency for their mainte- nance or for their civil establishment. A considerable reduction of the civil employees paid from the appropriations for those purposes has been accomplished, and more discharges are contemplated and will be made, in accordance with the intention of the act that no i^ersou should be employed and that no work should be done except for the advantage of the service and with economy to. the government. But it has not yet been found necessary to close any navy-yard under the authority given by Congress. REPORT OF THE SECRETARY OF THE. NAVY. 461 It is feasible to reduce the expenses of maintaining- the navy-jards to very low amounts by making the utmost possible use of the officers and men of the Xav^- and of the Marine Corps. Xo valid reason can be as- signed why this policy should not be adopted. The force of naval offi- cers must be maintained and jiaid, and a surplus of officers hold commis- sions and are subject to orders to any honorable duty, while the employ- iru'iit of any civilians :Tiay be terminated at the pleasure of the govern- ment. The latter will, undoubtedly, by obvious methods, endeavor to place obstructions in the way of the action proposed, but it should be taken and persisted in, because required for an economical administra- tion of the naval establishment. The second section of the act of August 5, 1882, for the purpose of re- lieving the navy-yards from the accumulations of old ancT unserviceable material, directed an account to be taken of all stores and supplies be- longing to the bureaus of the ITavv' Department, and appraisements to be made thereof by Boards of is aval officers', and authorized the sale at public auction of all such stores and supplies as might be found unserv- iceable, and of all old material that could not be profitably used, the net proceeds of all sales to bo paid into the Treasury-. These Boards wore seasonably appointed, and are now engaged in their work, but no sales have yet been made. The same section directs the Secretary of the is'avy to appoint In- si)ection Boards to examine all the vessels of the Xavy, and report which are unlit for further service, or, if the same are unlinished in any navy-yard, those which cannot bo finished without great and disproi)or- tionate expense ; and to state in their report fully the grounds and rea- sons for their opinion ; and the Secretary is directed, if he shall concur in opinion with said report, to strike the name of such condemned vessels from the Xavy register, and to report the same to Congress. In i>ursuance of this law, a special Board, consisting of Captaius John Irwin, C. S. Norton, and A. V. Cooke, Naval Constructor George W. Much, and Chief-IiUgineer H. S. Davids, was appointed at San Fran(;isco. which has examined and made report cone<'rning the vessels at the ]Mare Island navy-yard. 'J'he princii)al Inspection Board consists of Commodore A. A. Scnimes, Medical Director A. L. Gihon, Capt. R. W. ]Meade, Comman7 Some time after leaving Saint Lawrenee Bay, Lieutenant Berry heard that Putnam had drifted out to sea, but^received from natives a report that he had reached the shore in safety. It was not until February that he learned the truth. On the 8th of February Lieutenant Berry left Capo Serdze, accom- panied by Ensign Henry J. Hunt. Following the coast to the westward, they heard that the missing whalers Vigilant and Mount Wollaston had. drifted in shore, and that their crews had cither died or had deserted the vessels. After a severe journey they arrived at the Eussian post of Nishne Kolymsk on the 24th of March. Information was received at this place of the landing of part of the Jeannette's crew at the mouth of the Lena liiver, and Lieutenant Berry continued his journey until he came upon traces oi& Chief-Engineer Mel- ville's search party. Learning that the latter had completed his search. Berry followed and overtook him. The party proceeded to Yakutsk, where Berry in- tended to fit out a new expedition, but information was received that Lieutenant Harber had been detailed to make a summer search, and Lieutenant Berry then returned home. Ensign Hunt was ordered to report to Lieutenant Harber for duty. The party which had been left at Saint Lawience Bay in charge of Master Waring was received on board the whaling bark Xorth Star, owned by William Lewis, of New Bedford, and commanded by Capt. Leander C. Owens, who had gone to Saint Lawrence Bay at great incon- venience to transport the party to any port desired. The North Star left May 14 for Ounalaska, but falling in with the revenue-cutter Corwiu, commanded by Lieut. Michael A. Healy, the Eodgers party was trans- ferred to the latter vessel and arrived at San Francisco June 23, 1882. Lieutenant Berry earnestly recommends that the Chukches about Saint Lawrence Bay be suitably rewarded for their hospitality, to en- courage them to aid the crews of [any of our whaling or other vessels that may be wrecked upon their coast. Lieut. Giles B. Harber and Master W. H. Schuetze were ordered by the department on February 2, 1882, to special duty in connection with the searcli for the survivors of the Jeannette. They proceeded to Siberia, and Lieutenant Harber and his party have prosecuted their search with energy, but have not succeeded in getting any intelligence of Lieutenant Chipp's party. BUREAU OP NAVIGATION. The report of Commodore J. G. Walker, Chief of the Bureau of Navi- gation, narrates the work of the bureau and its subordinate offices in connection with^the revision of "The American Practical Navigator:" compasses for the Navy ; the determination of longitudes, under Lieut. Commander F. M. Green ; navigation supplies ; the system of naval 468 REPORT OP THE SECRETARY OP THE NAVY. signals, in charf^o of Oapt. riiilij) (J. Jolinson ; tho hydrographic work of tlio navy, under the direction of Commodore J. C. P. Be Krafft; the Naval Observatory, of which Vice-Admiral S. C. Rowan is the present Snperintendi^nt; the Transit of Venus Expedition ; the Nautical Alma- nac, and time signals. Attention is called to the growing disposition on the part of the Sig- nal Service Bureau of tho Army to encroach upon work which has fallen for manj'^ years within the legitimate province of naval officers. The local time has been signaled from the Observatory since the year 1845, and since 1877 a time-ball has been dropped at New York City at noon daily by signal from the Observatory. The Signal Service Bureau has, however, published at government expense a work on " The Con- struction and Maintenance of Time-Balls," and has announced in an oiBcial publication entitled " Memoranda of Usefill Information for Shi]) Masters," that a time-ball will be established at the Signal Service station in New York City. It has also organized a " Marine Division" and established a "Marine Agency" in the city of New York, and is issuing charts of the North Atlantic Ocean, attempting to show the direction of cyclones, the limits of icebergs, and the direction of the prevailing winds in the different ocean squares. This marine work belongs appropriately to the Naval Hydrographic Office, and it is doubt- ful whether the appropriations for the Signal Service of the Army, however liberal in their amount and vague in their limitations, were intended to be applied to work which is specifically in the charge of another department. The sundry civil appropriation act of August 7, 1882, making appropriations for the work of the Signal Service, directs " that the work of no other department, bureau, or commission author- ized by law shall be done by this bureau." Obedience to this explicit enactment ought to be enforced. The adaptation of the laws of the United States for j^reventiug col- lisions at sea to the revised International Eegulatious should be again uiged upon Congress ; and the need of a revision of our present law re- quiring steam vessels under all circumstances to keep out of the way of sailing vessels was, October 28, 1882, called to the attention of the department by the Philadelphia Board of Trade. This rule operates unfairly against deep-draught ships in narrow chan- nels, either natural or artificial, where light-draught vessels will not be injured hy using the shoaler water, and the unnecessary burden upon commerce should be lightened. BUREAU OF ORDNAJSrCE. The report of Commodore Montgomery Sicard, Chief of the Bureau of Ordnance, states the efforts of the Bureau in the preparation of plans, and in the commencement of the construction of the high-powered guns authorized by the act of August 5 ; the progress made in converting Parrott rifles ; in j)rocuring and practicing with machine guns ; in pro- REPORT OF THE SECRETARY OF THE NAVY. 46 i^ vjdiiii^ small-aims ; and in experimenting' with torpedoes aiul electric- lights at the torpedo station at Newport, 11. 1., under the supervision of Capt. Thomas O. Selfridge. The principal purpose of our large naval establishment being to use cannon and small-aims and torpedo explosives against public enemies, the question of ordnance is of the tirst importance. Having no eflective guns, it is the duty of the government to begin their manufacture imme- diately. This country is not now capable of making the steel forgings necessary for heavy rifled cannon ; they must, therefore, either be pro- cured abroad or inducements must be oliered to steel manufactiu'ers to engage in their production. There is no steam-hammer in the country sutticient for the heavy forgings required. Either through the agency of some private company or by the direct action otHhe government such a hammer should be prepared for American use. All the moderate recommendations of the Chief of the Bureau ought to be promptly adopted, and the appropriations estimated for by him ought to be considerably increased. BUREAU OF YARDS AND DOCKS. The report of Eear-Admiral Edward T. Ifichols, Chief of the Bureau of Yards and Docks, recites the various works of improvement at the ]iavy-yards for which appropriations are recommended by the bureau ; and it estimates the sum necessary for the general maintenance and preservation of the yards. My views on this subject have been indi- cated in considering the navy-yards, and may also be learned from the revision hereinafter submitted of the estimates made by the Bureau. BUREAU OF EQUIPMENT AND RECRUITING. The Chief of the Bureau of Equipment and Recruiting, Commodore Earl English, details the work of that Bureau, including the fitting out of ships, purchases of coal, ^ho manufacture of cordage and of iron cables and anchors and ship's galleys, and states the success of the Bureau in the enlistment of seamen and apprcutices during the year. Enlistments were 5,C20, of which number 478 were boys. BUREAU OF STEAX ENGINEERING AND BUREAU OF CON.STRUCTION AND REPAIR. The reports of Engineer-in-Chief W. H. Shock, Chief of the Bureau of Steam Engineering, and of Chief Constructor T. D. Wilson, Chief of the Bureau of Construction and Repair, state fully the present condi- tion of the vessels of the Navyj their views as to the future work of their Bureaus, and as to the amounts needed for the construction of the two new steel cruising vessels authorized by the act of Augusto, 1882, and for the completion of the doublo-tm-reted monitors Monadnock, Puritan, Amphitrite, and Terror. They estimate for the two steel cruisers, in 470 REPORT OF THE SECRETARY OF THE NAVY, the Bureau of CoustiMctiou, $2,080,000; in the Bureau of Steam Ma- chinery, <'5l,S()0,(K)0, making- .$;3,.S80,00O. These estimates are for the total cost of the hulls and machinery, and exceed the limitations of the act, wliich conliiie the Dei)artment to the estimates of the first Advisory Board, and they indicate tlie oi)iuion of the Bureaus that the sliips can- not be couipleted within those limitations. But in any event less than one-half tlie full cost needs to be api^ropriated for the next fiscal year, and $1,000,000 for each Bureau will be more than sufficient for the ex- penditures on the vessels during that year. The reports estimate for the completion of the four monitors, in the Bureau of Construction $2,000,000, and in the Bureau of Steam Ma- chinery, $1,105,000. Less than one-half of these amounts should be ap- propriated for the next fiscal year, in case Congress should decide to complete the vessels. In pursuance of the directions of the enactment authorizing the con- struction of the two steel cruisers, the Naval Advisory Board was or- ganized on the 13th day of November, consisting of the following mem- bers: Commodore E. "WT. Shufeldt, president; Mr. Henry Steers, Mr. Miers Coryell, Chief Engineer Alexander Henderson, Commander John A. Howell, Lieutenant Edward W. Very, Naval Constructor Frank L. Femald. The naval officers were selected se\'eral weeks previous to the ap- pointment of the full board, but delay and difficulty were experienced in obtaining " two persons of established reputation and standing as experts in naval or marine construction, to be selected from civil life," who should not be employed by or connected with any one of the few ship-building firms who might propose to enter into the contracts for the construction of the cruisers. Due public advertisement and no- tice was given on the 5th' day of August, as required by the act, to all persons, to submit, within sixty days after August 20, any plans, mod- els, designs, or suggestions for the construction of the vessels, and the time for submitting them has been exte^ided to the period when the Board will finally reach its conclusions. The Advisory Board is actively engaged in the discharge of its duties, but is proceeding with care and caution. It is the determination of the Board and of the Department to make no undue haste and to spare no pains to design and complete the two best ships which can possibly be constructed in this country. I deem it my duty to recommend that Congress be requested also to authorize the construction of two of the second-rate, steel, single-decked, unarmored cruisers, i-ecommeuded by the late naval advisory board, to have a speed of not less than thirteen knots, but with the displacement limited, according to thcrccommendations of the ])resent Advisory Board, to 2,5U0 tons each, at a cost not exceeding for Imll, engines, ordnance and equipment $1,000,000 each ; also of one of the five steel rams rec- ommended by the late board; and one rou dispatch boat or clipper, of REPORT OF THE SECRETARY OF THE NAVY. 471 1,500 tons (lisplaccmont, witli a si)ced of not less tljan iirtccii knots, to be armed with one six-incli bieecli-loadin^ rifled cannon and t((ur Ilotch- kiss guns, at a cost not exceed in j,' $500,000. The Naval Advisory Board was directed to report to the Secre- tary of the Xavy, in detail, by the 1st day of December, 1882, as to the wisdom and expediency of undertaking^ and conijileting th^j engines armor, and armaments of the ironclads Monadnock, Puritan, Am])bi- trite, and Terror. The delay in organizing the board \yll prevent the completion of this report on the day fixed; but it will be prei)ared and transmitted as soon as practicable thereafter, with the recommendation of the Department thereon, as required by the act. There has been much unseemly controversy' over these vessels since the work was sus- pended, in Marcli, 1877, after an expenditure upon them by the govern- ment of $3,528,580.58. The fact of this large outlay is no reason why they should be completed if they will not then be worth to the govern- ment the amount of the new money which will have beeu expended. Kor is there anything in their history which should prevent their com- pletion if that result is for the real interests of the government. The necessity, however, of some better provision for the defense of our harbors than is furnished by the fourteen single-turreted monitors, the relics of the war of the rebellion, is apparent to every thoughtful citizen. If the completion of the fourdoubleturreted monitors is not expedient, the construction of some new armored vessels of a different character should be devised and immediately commenced. The act of August 5 made provision for "the launching, to the best advantage, with such necessary attachments and appliances as will ren- der redocking the ships unnecessary," of the four double-turreted mon- itors. The contractors who had built the hulls, and in whose ship-yards they have remained since the termination of work, in March, 1877, •were informed by letter of August 21, 1882, that the Department de- sired to comply with the directions of the act as soon as practicable, and would be prepared to indicate what work ought to be done to fit the vessels for launching, and wished to receive any suggestions or proposals from the contractors concerning the Avhole subject. On the 28th of August the contractors were further informe- tation to the necessities of the naval service ; and to his statement of the importance and imijrovement of ventilating apparatus applied to vessels of the Xavy, and of the condition and usefulness of the newl\ organized Museum of Hygiene. BUREAU OF PROVISIONS AND CLOTHING. The report of Paymaster- General Joseph A. Smith states the appro- priations and expenditures for the fiscal year ending June 30, 1882, and for the present year up to ISfovember 1. MARINE CORPS. Attention is called to the report of Col. 0. G. ]\IcCawley, commanding the United States Marine Corps, which on the 1st of October, 1882, con- tained 1,681 enlisted men; 984 on board ships in commission, and 877 doing duty on the shore stations. The correct legal number of second lieutenants is 30, and 16 new appointments should be made. It is de- sirable that Congress should authorize the appointment of these lieu- tenants from gTaduates of the Xaval Academy, at the end of the acad- emic years ending June, 1883, and June, 1884. The legal number of the privates in the JNIariue Corps is 2,500, Congress has lately appropriated for only 1,500. It is desirable that appropriations should be made for 2,000. KEi'OliT OF THE .-iEORETARY 01' THE NAVY. 473 ^'AVAX, ACADEMY. The Xaval Academy, since Noveuiber 15, 1881, Las been under the sifjjeitiitendeucy of Capt. Francis M. Kamsay, and is efiiciently and satisfactorily conducted. His report is transmitted. The act of Au- gust 5, 1882, which provided that no appointments thereafter should bo made of officers in the ZsTavy from the graduates of the Academy, except to lill vacancies in the lower grades of the line and the Engineer and Marine Corps, also repealed the law authorizing 2.5 cadet-engineem to be annu- ally appointed, continuing only the right, at all times, of each Congres- sional district to have one cadet, and of the President to have ten cadets at the Academy ; and provided that all naval ca&ets not needed, on gradu- ation, to fill such vacancies or to make the number of annual appoint- ments reach ten, should be given certificates of graduation, an honorable discharge, and one year's sea-pay. These salutary provisions, which were adopted four years ago for graduates of the Military Academy at West Point, were absolutely necessary in view of the overcrowding of the naval serWce by the addition each year of all the graduates of the Acad- emy from the Congressional districts, and 25 cadet-engineers. The effect upon the school will not be injurious. AYhere all who strive obtain the prize, endeavor will be less than where the rewards are few and only con- ferred in recognition of distinguished merit. Those cadets who are not needed for the l!^avy will have received a superior education at the gov- ernment expense, and with a donation of one years pay in advance, Avill return to civil life admirably fitted to enter and to succeed in the most lucrative employments of peace, while standing always ready with their naval capacities enlarged by their professional or business experi- ence, to come to the aid of the country in time of war. NAVAL OBSERVATOEY. The report of Vice- Admiral S. C. Rowan, Superintendent of the Naval Observatory, details the important work of that institution during the year, and the provisions made for parties for the observation of the ap- proaching transit of Venus on the 6th day of December at the following points : Cape of Good Hope, Santa Cruz, Patagonia, Santiago de Chile, New Zealand, San Antonio, Tex., Cedar Keys, Fla., Fort Selden, N. Mex., and Washington, D. C. The condition oithe old Observatory is such that there should be no furtlier delay in making the necessary approi)riation for the construc- tion of the new Observatory authorized by the act of Congress of Feb- ruary 4, 1880, for which, at a cost of i!*(J3,000, a new site on Georgetown Heights has been alieady i)iirchased. REPORT OF THE ADiURAL OF THE NAVY. The department has received the supjxtrt and co-oi)eration of the Admiral of the Navy, under whose supervision is phiced the Board of 474 REPORT OF THE SECRETARY OF THE NAVY. Inspection und Survey, and wbo lia8 also ftiven special attention to the appientice training system and to the development of torpedo boats. The report of the Admiral is transmitted, containing his vi^ws upon those subjects, recommending the completion of the monitors, dis- cnssing the question of in-omotion by selection, and advising a stricter enforcement of section 149G of the lievised Statutes, which requires every officer before promotion to establish his mental, moral, and pro- fessional fitness to perform all his duties at sea. EXPENDITURES. The aijproi^riations available for the current expenses of the fiscal year ending June 30, 18S2, were $14,874,209.55, to which should be added $59,813, transferred from the Navy pension fund to the Xaval Asylum, making a total of $14,934,082.55. There was also a balance on hand at the beginning of the year under the appropriations "pay of the IN"avy" and "pay of the 3Iarine Corps," $1,903,071.50. From this sum should be deducted $1,375,086.16, due from said appropriations to "general account of advances," and also $134.58 carried to the surplus fund. There should, however, be deducted from this balance the sum of $'59,813, appropriated for the Kaval Asylum, as that sum was brought to the credit of the asylum on September 13, 1881, by requisition, and is included in the exhibit of expenditures chargeable to the Ifavy ap- propriations as refunded and deducted from the amount drawn in that month. The net amount, therefore, available for the year was $15, 402, 120 37 The expenditm-es were 13,9:?6,294 96 Leaving a balance of 1,405,825 41 To this amount should be added the unexpended balances in the hands of pay officers, as shown by the books of the Fourth Auditor 870, 682 55 Which shows that the net expenditures for the fiscal year were 2, 336, 507 96 less than the amount applicable therefor. The appropriations available for the operations of the present fiscal year ending June 30, 1883, were $15,575,858.98. Amount drawn by Warrant from July 1, 18S2, to November 1, 1882 ... 5,220,314 25 Amount refunded from July 1, 1882, to November 1, 1882 123, 562 62 Amount expended 5,096,751 63 leaving available :S^ovember 1, 1882, $10,479,107.35. ESTIMATES. ' The Chiefs of the respective Bureaus have furnished, according to sec- tion 430 of the Eevised Statutes, their estimates for the fiscal year ending June 30, 1884 : Pay oftheXavy $7,512,580 00 Pay of the civil establishment of the navy-yards 194,130 00 Ordnance and Torpedo Corps 669,300 00 Coal, hemp, equipment 1,021,000 00 REPOKT OF THE SECRETARY OF THE NAVY. 475 Navigation and navigation supplies $187,000 00 Repairs and preservation of vesstils 1,750,000 00 Completing liulls of tlie New York and Mohican '.00, 000 00 Building hulls of the two new cruisers 2,080,000 00 Building machinery for tlie two new cruisers 1, 800,000 00 Completing hulls of four double-tuiTeted monitors ~, 000, 000 00 Buildhig machinery for the monitors 1. 105,000 00 Steam machinery, tools, &c 1,200,000 00 Provisions for the Navy 1, '200, 000 OU Medical department 45, OuO 00 Repairs of hospitals, laboratories, «&c 47, 000 00 Naval Hospital Fund 50,000 00 Naval Academy ie2,70!5 20 Contingent expenses of Department and Bureaus 230,000 00 Naval Asylum, Philadelphia 92,191 00 Maintenance of yards and docks 490, 000 00 Repairs and improvements of navy-yards 3,502,444 00 Support of Marine Corps 1,004,326 5C Total 27,042,tf:8 76 These estimates may be revised as follows : Pay of civil establishment at navy-yards reduced to $122,500 00 Building hulls of two new cruisers 1,000,000 00 Building the machinery for the same 1,000,000 00 Completing hulls of four monitors 1,000,000 00 Building machinery for the same 582,500 00 Naval Asylum, Philadelphia 59,813 00 Maintenance of yards and docks 220,000 00 Repairs and improvemeutij'of navy-yards 1, 192,571 00 Making the total revised estimates $20,836,297.76. - THE LIGHT -HOUSE SERVICE AND THE COAST SUETET. There are employed at the present time 20 oflScers of the Navy in the Light-House Service, and 61 naval officers and 275 seamen in the Coast Survey. These two branches of Ihe public ser\ice are maritime in their nature and purpose ; and their objects have no connection with the Treasury Department, uiuler which they are now placed. The original assignment of the Light-House Service to the Treasury Department is explained by the fact that wlien it was first established, no Navy Dopartigt'iit cxistod. At one time it was administered by the Commissioner of the Revenue, at another by the Fifth Auditor. The defects of this niTaiigement led to the fonnation, largely through the efforts of naval otliceiKS, of the present mixed board, wbich remalDcd, for no assignable reason, an adjunct of tin' Treasury Department. Of the twenty officers of the Xavy enii)lieculiar in this branch of the service. In the interests of economy the eliauge suggested is desirable. While the Navy proper is being reduced, the government is keeping up a Revenue Navy of 34 captains, 86 lieutenants, and 65 engineers ; in all, 185 officers. Two training schools are maintained to do the work of one. The Naval Academy at Annapolis is supplied with a full corps of in- 478 REPORT OF THE SECRETARY OF THE NAVY. stmctors and every appliance for tlie training at all .times of 335 naval cadets. At the same time, another Hohool is maintained at New Bed- ford for tlio traiiiin;^- ofrllevcnue Marine cadt^ta, covering: the same .i^rouud, only in a limited degree, and with imi)erfect appliances. The Kevenuc Marine cadets r(iccive $900 a year during their service at the school. Kecent legislation has provided that only a part of each grad- uating class at Annapolis shall enter tlie Navy, while the remainder shall be given a year's pay, and remanded to private life. All these young men, upon whom the government has bestowed a gratuitous education, are well-fitted for their profession, from whi(;h they are thus excluded ; and by opeuiug the cruising cutter service to these graduates of the Ilfaval Academy, the government will save, at a single stroke, the whole cost of a duplicate establisbment. In order to harmonize all the interests involved in connecting naval officers with the Eevenue Cutter Service, the administration of the two services should be combined under the l^axj Department. The smal vessels employed on harbor duty, which are onlj'- used to carry inspect- ors of customs, and as a sort of harbor police, should remain solely attached to the Treasury, as at present. The duty is not such as to re- quire a special corps of officers. The cruising cutters should be trans- ferred to the Navy Department; but they should be assigned to duty in the various districts, as at present, upon the requisition of the Secre- tary of the Treasury, and their movements may be directed for the time being by the (ioUectors of customs. The present Eevenue Marine officers should become a corps in the Navy, receiving life commissions as naval officers, with all the rights and privileges that belong to such commis- sions, while the vacancies gradually made at the foot of the list should be supplied by the detail of junior officers of the Navy of correspond- ing grade, for service on board the cutters. It is not proposed to re- move the present officers of the Eevenue Marine, or to take away or abridge, in the slightest degree, their privileges or emoluments. On the contrary they would retain all that they now enjoy, and, without re-ex- amination or a new test of any kind, would receive in addition the benefits of a permanent naval commission. Vacancies in the upper grades should continue to be filled by promotion in the corps, and naval officers should only be detailed as vacancies are made at the bottom of the list. The duties of the Eevenue Marine officers would remain the same as they now are; and it should be particularly provided, in any change that might be made, that their position should in no way be al- tered, except by giving all, including the engineers, the same per- manency of tenure now enjoyed only by naval officers, and the same right of being placed upon the retired list of the Navy in case of ex- treme age or disability — changes in every respect advantageous. If the transfer of the Eevenue Marine to the Navy should be deemed desirable, the Life- Saving Service would probably follow. The two serviceii are already so closely connected, and the tendency towards a REPORT OF THE SECRETARY OF THE NAVY. 479 further union is so strong, that they would necessarily be conducted toj^ether. By the act of 1878, it was provided that the otiiccrs of the lievenue ]V[arine should be detailed for duty as inspectors and assistant inspectors of life-savinj!^ stations. A captain of the Revenue Marine is the superintendent of construction in the Life-Saving Service. The cruising cutters co-oi)erate actively in tlic work and are frequently em- l)loyed in the assistance of vessels in distress. If it is not the policy of the governniout to make appropriations for sutiicient ships of war to give adequate occupation to all our naval otfi- i^ers, it should certainly nutke use of them in every branch of the public service for which they are fitted. A highly trained corps of otlicers, such as modern naval warfare demands, cannot be created in a day. If the personnel of the Navy is to be kept at its present standard of quality and numbers, it must be utilized in every form of government employment for which it is adapted. In this Wew it hardly admits of question that the lievenue Marine and the Life-Saving Service should be joined with the Navy. No disturbance of vested interests would be caused by the transfer; on the contrary, every i)rovision would be made to guard against such a disturbance. But a new field would be opened for the services of otlicers alreaon the Navy, so, on the other hand, the Navy, no matter how strong it maybe, must, in emergencies, avail itself of the resources of the merchant ma- rine. This is especially true in the United States, whose policy does* not admit of a large standing naval force. This was clearly shown during the rebellion. At its outbreak the Navy had nominally a tonnage of 105,L'71 tons. To increase it, 215,97') tons of shi])ping were bought. These purchased vessels were ill-suited for war pur[»oses, but they were none the less indispensable. If ten years before the war our mai-itime 480 REPORT OF THE SECRETARY OF THE NAYY. iieceasitics had been recognized, and the relations of the Navy and the merchant marine had been understood and organized, the government might hav(^ Kav(;d many millions of dollars, and have had in the begin- ning vessels capable of capturing the English-built commerce -destroy- ers and blockade-runners. As the Navy must thus in emergencies resort to the merchant marine for slii})s, it must also draw upon it for officers and men to supply its deficiencies. The nautical training which is a necpssary qualification for efficient service can only be found in the officers and men of the merchant marine. The additions to the Navy thus made during thQ war were 7,500 officers and over 40,000 seamen. The naval establishment is further dejMindent on the merchant marine through its relation to the ship-building interest. It must be able to build ships within the country ; and all the requirements for ship-building must here exist. The plant and the^skilled mechanics must be here. But the ordinary demands of the Navy will not support a single establishment; and ship-builders cannot exist unless they find employment and profit iu building commercial vessels. If, therefore, the present downward tendency of the merchant marine is unchecked, the Navy will soon be in such a position that, in the event of a war, it will be unable to build a single vessel or to recruit its numbers by officers or seamen of nautical experience. Important as the merchant marine is on military grounds as an aux- iliary of the Navj', it is more indispensable to the general welfare on economical grounds. To a country with an extensive seacoast and numerous harbors, the possession of a mgrchaut marine is an economical necessity. It is a form of enterprise which promotes and diffuses the influence of a nation beyond its borders far more than agriculture, or mines, or man- ufactures. It quickens the nation's powers and infuses life and vigor into its international relations. The freight earnings of our vessels incretise by so much the balance of trade in our favor, while the freight earnings of foreign vessels increase the balance against us. The busi- ness which American ship-owners have lost would have employed thousands of seamen and mechanics. But all the benefits of the carry- ing trade have accrued to a foreign jwpulation, and the profits have gone to enrich foreign investors. The aggi-egate profits of the carrying trade are enormous, and 85 per cent of our trade is now absorbed by foreign ships. The earnings for the transportation of ocean freights to and from the United States amount to one hundred and thirty-five millions per annum, American ships carrying less than one-sixth of the value of the goods. The ag- gregate of American tonnage for the year ending June 30, 1881, was 4,057,734 tons; of this amount 452,343 tons were barges and canal- boats. Over half a million more must be classed as river steamers; and a like amount should be deducted for vessels on the lakes. There REPORT Of THE SECRETARY, OF TJIE NAVY. 481 remain 2,500,000 tons as a fair estimate of owr maritime tonnage. But sailing vessels make up 75 per cent of Xliis amoiiut. The last might almost be omitted from the calculation, ^r at this day the strength pt a merchant marine lies in its steamers, not in its sail tonnage. There are only 152,709 tons of steamers registfjred for foreign trade, of which 97,700 tons are built of iron ; 02 vessels iu all, at an average of 1,500 tons. Of the 44,403 tons of steamers built on our seaboard in ISSl, oulj- eight vessels are classed as ocean steanu-rts. Their aggregate tonnage was 5,952 tons, or about one i)er cent of the ocean steam-tonnage built in Great Britain in the sa-me year. The total tonnage of iron steamers built during this year was only 28,350 tons ; and there are no steel steamers under the flag of the United States. It follows that though our aggregate tonnage 6till reaches a respecta- ble figure, yet the ships which it represents fail to meet the demands of ocean commerce, and would beof little use for war purposes. It is not a modem merchant fleet, and is being fast crowded out by foreign com- petition. The following table, gi\ing the percentage of the foreign carrying txade of the United States which has been performed by Americon I)roof of misbehavior, negligence, or unskiilfulness, the local board may susi)eud or revoke a license. (.i.) Under the head of the shipment of seamen would be included the duties of the .shipi)ing commissioners, which are, to keep a register of seamen, to sui)erintend their enlistment and discharge, to i)ruvide means for securing their presence on board as engaged, and to facilitate ai)i)renticeshii)s. Being ai)pointed and controlled by the circuit courts of the United States, Ihey are not directly connected with any executive department, nor does any departmentr make a detailed report of their doings. , The Buieau of Mercantile Mariue should inelnde an au\ili;;ry board composed of representatives of maritime and commercial interests and specially qualilied officers of the government, to advise and assist in the oi)eratious of the bureau. Marine offices should be established at the principal ports, under the direction of the Bureau of ]\rercantile Maiine, which should be the offices of record of bills of sale, transfers, and hy- pothecations of vessels, and at which the business of the local inspectors and the shipping commissioners should be transacted. In the matter of registrntion of vessels, the Bureau of Mercantile Mariiu* would per- form the duties of tlie llegister-s office, and the local boards those of the collectors of customs, and the admeasurement of vessels for tonnage would also fall to the local board. It is believed tliat a reorganization of the service, such as is sug- gested, while it would strengtluMi the merchant marine, would incident- ally be a benelit to the Navy. The natural connection between the two has already been itointed out, but the total separation in matters of administration luis blinded our ])Coplo to the fact that, in consequence of the decline of our maritime industries, naval opi^rations in the event of a war would be paralyzed by the want of materials with which to cany them on. ICveu if a merchant fleet existed to sui)jtly this deli- ciency, the Navy Department is notsup[)lied with the information, nor its officers with the facilities, nor its bureaus with the machinery, to 488 REPORT OF THE SECRETARY OF THE NAVY. eiuible tbeiii to avail tliemsclvcs of suuh scattered reHouice.s as our maritime industries would adord. Tbo Navy Department possesses special advjnitafios lor c;irryin, 1882. Sir: Tlie following? report of the oi)eiatious of this bureau, for the liscal year en^injj June 30, 1882, and estimates for the fi.scal year eiul- iiig June 30, lb8'l, are respectiuUy preyentcid. NAVY-YARD, PORTSMOUTH, N. H. The amount appropriated for the various i)urpose3 of this yard has been cal-efully and judiciously applied, and the property is in as j;ood condition as cnn be reasonably expected. The sum of 85,000 was approjjrijited in 1881 for improvement of the water sui)i»ly. Under this appropriation, connections by pipes have been made with the chief sources of sujiply, and a large amount of pipe has been laid. From la(;k of fuiuls Ihe water head has been neglected, andthei)onds have become so clogged by grass and weeds as to seriously diminish the body of water. It is necessary that these ponds shall be cleared of vegetable and other accumulations, and their capacity increased. For this purpose an estimate of $2r>,000 is presented. NAVY-YAED, BOSTON, MASS. Tlie usual work of repairs, &c., has been can-ied on at this yard as economically as possible, but, nevertheless, the sum allotted for the care of this vast pr<)i)erty has not been sulitii:ient to prevent deterioration. For the ])reseut fiscal year the au)0unt ai)propriiited was only half that of the previous year, and the estimates ior the coming year are the same as last. For imi)rovement of the yard, I respectfully renew the recommenda- tions of my last annual report, in fa\'or of the following works, vii; : For yiirds and docks workshops (esliaiatoil cosr) SGli, 7^i» For n:liiyin;Li; water main, Hco 1'), IHXi For c.irt'slu-.l 10,408 For paviiiff mid ^riidiiig 'JO, 000 For caisson lor dry-dock'! i :!l,(M)0 Extensive repairs tomacliine-sliop 45, 000 Tlie deterioration which has taken place since these works were first estimated for, and that \\ Inch will take place before the money is avail- able, has rrndcrcd au increase over the oiiginal estimates necessary. All these works are impoitant and r'ssi'Utial. The wharfage of this yard is in a veri' defective condition, and ex- tensive repairs, and in some, cases rcliuilding. uw absolutely necessary. I therefore deem it my duty to aak for au appropriation of 887,000 for this purpose. 489 490 PAPERS ACCOMPANYING THE The. uiKlcrjjrou 11(1 water sorvicc is in .sii(!li (joiulitioii as to cau.se a large aiimial outlay lor repairs aiid gr(;at waste from leaka^^e. The pixies should be renewed. NAVAL STATION, NEW LONDON, CONN. I respectfully renew my reeommendation of last year, for au ai)])roi)ri- atiou of ."jfl5(),()00, for connneiicing the constnu^liou of a quay wall along the water-front of this yard. NAVY-YARD, NEW Y'ORK. The amount of funds available during the past year was iuadefjuate to the requirements, and where so much was to be don<^ it was diilicult to know exactly where to apply it, but it is believed that it has been judiciously expended. For the present fiscal year appropriation was made for dredging, $30,000; intercepting sewer, $00,000; caisson, $30,000. Contracts are now being made for the sewer work, and the dredging and caisson will soon be taken in hand. An estimate for $78,930 is presented for the erecti(m of a building to be used for the storage and preservation of property pertaining to yards and docks departnient. I deem this a most imi)ortant and mucli needed improvement, as the above storage is now only partially ettected in wooden buildings and shanties, inconveniently located, illy adapted to the pnrpose, unsightly, ami in some cases unsafe, and for want of stor- age room valuable tools and implements are exposed to damage and loss. The original plan of the machine shop for steam engineering contem- plated two wings, one for boiler shoii and the other for an erecting shop. I respectfully renew my recommendation of last year for an appropria- tion of $135,243 for the erection of the boiler-shop wing to this build- ing. The erection of this wing will add much to the etficieucy of the steam engineering department, by concentration. The present boiler shop is at some distance from the machine shop, inconveniently located, and is in an unsafe condition. After being rejjaired it can he devoted to other purposes. The temporary shed for the protection of shipwrights and others em- ployed upon vessels in the dry-dock is in a very bad condition, ueediiig repairs amounting virtually to rebuilding. It is proposed to erect by the side of the dock a permanent brick and iron structure for the above purpose, where M'"orkmen can be protected in all weather and an esti- mate of its cost is respectfully presented, viz, $13,814. The building at present used as a paint shop is very old, built of wood and needing very extensive repairs (which it is hardly worth), its floors oil-soaked, and the whole concern a constant danger from Hre. An estimate of $19,98G is presented to erect a substantial fire-proof build- ing in its ])l«ce. Until the sewer authorized to be built across the yard to the east river is completed, the sewerage of the northeastern portion of the city of Brooklyn must continue to be emptied into the water-front of this yard to the great injury of the channel, imi)airmeut of its limited water- front, destructive of property, and detrimental to health. To preserve this channel, prevent the imi)airment of the limited water- front, and to keep the entrance to the dry-dock always accessible, dredg- ing is an absolute necessity, and an estimate of $50,000 is respectfully presented for this purpose. REPORT OP THE SECRETARY OF THE NAVY. 491 The so-called cob-dock, a valuable adjunct to this yard for stora^^o and other ])urposes, is iu a very bad condition and needs « xrensive re- pairs for its jireservatioii. An estimate of $75,000 is presented for the comuienceiaent of this much needed work. LEAGUE ISLAND NAYY-YAED. The ordinary ojjerations of this station Lave been conducted with economy and j^ood juIeted yard, but on the contrary is only in its infancy; theivfore its needs are great. Permanent l)uildiny;s are needed for worlvsh()i)S and storehouses for the ditferent departments, oliice buildinjis for the transaction of busi- ness, and dwellinjis for the othcers stationed there, coisting probably some $700,000, but as the nature of the locality is such that no pernui- neut l)uildings can be erected until the land is prepared therefor, I pre- sent no estimate ibr them. I, however, resj)ectfully present an estimate for 5>Lj5,000 ibr dnnlgin^- and fillin*;- in. Before buildings are erected this lillinji-in i)rocess must be carried on and time jiiven for tiie material to settle to ])ernianeut grade. The filling-iu mateiial to be takeu mostly from the back channel. A wharf on the Delaware front is much needed, and, should building operations be commenced on a large scale, will become an absolute ne- <*essity, and an estimate for this purpose is therefore presented of $2G,- 410. I would also strongly recommend the continuance of the paving sys- tem already begun, as in wet weather the roads of the yanl are almost impassable. An estimate forcontinuiug paving of $12,204 is presented, WASHINGTON NAVY- YARD, D. 0. The general condition of thebuildings and works under the cognizance of this Bureau, is very fair, and gives evidence that the a]Ji)ropriation has been carefully expended. The following estimates are respectfully ])reseuted for works of im- ])rovement, considered necessary to its efiiciency, viz : The ordnance nuu;hiu<^shop, 89."), 000. The building at i)resent used for this i)urpose was surveyed iu June, 1881, ami found to be unsafe. It was extensively repaired, and reduced one story, and is now inadequate to the requirement of the ordnance de]tartment. The board of survey recon)mended ilie erection of a new building, and its re])ort was approved by the honorable iSecretarv of the Xavv .Uiiu' ;}0, 1881. Steam" tug oi'lU feet draft, $o,000. This tug is a necessary adjunet to the dredging a])paratus-and its operations. It is proposed to remove the dredged material to the Hats opjtosite the yard, and for this work light draft is necessary. For continuation of dredging, $15,000. The western limit of this navy-yard is only protected by the adjoin ing nuirshy land, and is entirely open to access by unauthorize«l per- sons and conseo -well assured \vheu the oaissoii is in place, but iiutil I hat progress lias beeu made I euti only itivito atteutiou to the eoustant warnings ol' llie danf^er, and to the statement and tracing showiuf; its decayed and cnfeel)lcd con- dition as ascertained hy the boring tests, and to the enormous force it is called upon to resist, and which moves sueli an inuiionse btructuro to and fro with the tides, as shown in the recorded movements. The extract refeis to the cotfer-dara. In -view of the absolute neces- sity of completing this dock I do not hesitate to present an estimate of 8700,000 for its ])robable comi)letion. This is not only for the caisson and pumping engines, but lor the dock itself, and it is advisable that a portion at least of this amount shouhl be made available immediately, as in all probability the caisson will have to bo built aud fitted at the East, and the material then shipi)ed to California. The same may be probably said of the puujping machinery. The necessity for increased i)rotectiou of timber, lumber, &C., has 494 PAPERS ACCOMPANYING THE long been mjinifest at this yard, and should ])e i)rovided.' To this end it is proposed to mako an achlition of wood to the present iinfinisbed timber-shed No. 1)1, to the extent of 200 feet by 70, and for this pur- pose an estimate of $11,803 is presented. In consequence of the lonft-contiuued dry season in California wherein the grasses and all wood-work become so dried up, tlie dan<^er from tire is greatly increased, while the yard is inefhciently protected from tJie ravages of this destructive element. More protection is absolutely necessary, as many of the buildings and valuable x)roperty are far re- moved from the source of water supply. I therefore earnestly recom- mend the construction of cisterns in suitable locations, to be kept at all times filled with salt water, as a reserve, and present an estimate of $30,000 for this purpose. The continuance of the quay wall, construction of wharves, &c., are works of great im])ortance. The present water front is very limited and totally inadequate for the requirements in a time of activity 5 owing to the irregular outline of the shore, eddies are formed which conduce to the deposit of silt, &c., rendering much dredging necessfiry at great expense. The straightening of the shore line will in a measure obviate this trouble and considerably reduce the cost of dredging. Owing to the inaccessibility of the coal wharf, from the shoaling of the water, coal has to be landed at a distance of some twelve hundred or more feet and (parted to the coal house ; a work of labor, time, and expense. The completion of this quay wall, with suitable dredging, will give access to tlie yard at many points now inaccessible. For the purpose above alluded to, estimates are presented of $80,000 for quay wall and ferry sbp, and $30,000 to replace the old landing- wharf. An estimate is also presented of $40,000 for roads, walks, gutters, and drains. Owing to the nature of the soil, the roads in the rainy season are almost impassable, increasing very materially the cost of teaming. It is absolutely of great importance that the roads over which there is the most traffic should be placed in a permanently good condition. The present sewerage is very defective and should be permanently imi)roved. KEY WEST NAVAL STATION. There are at this station quite a. number of buildings which require much care and attention, outdoor structures of all kinds deteriorating very rapidly in that climate. This property is now in moderately good con«iition, and, without specifying the exact amount, such sums will be a])plied to it in the coming fiscal year as may be found necessary. If this station is to be retained, it is important that it should at all times be kept in working condition and free from danger of damage from the elements. From lack of ])roper protection, its shore line is constantly changing, from tlie action of the waves. The bulkhead or quay wall along a portion of its sea front has in a great measure been destroyed by the united actioii of the waves and sea worm, so that it is jiow practically worthless. It is proposed to protect this front by con- structing a permanent sea wall of concrete and coral, in a straight line, which, when tilled in, will add several thousand square feet to the sea front of the station. I deem this work very necessary and ask an ap- propriation of $4,000 to carry it on. Two years ago an apjuopriation of $30,000 was made for a pier wharf REPORT OF THE SECRETARY OF THE NAVY. 49d at this station. With the approbation of your predecessor, a contract was made with Messrs. A. P. Boiler & Co., of New Yark, to furnish material and certain labor for the removal of the old and the erection of the new Avharf, on plant? prepared by the Bureau. The material has been furnished and is on the ground, and work was commenced in July last, but in consequence of alleged inefiiciency and insufficiency of the working ])lant provided by tlie contractor, work was suspended on the 8th of July last, and the uncompleted work declined. The terms of settlement are now in dispute between the Bureau an [trovision for the care and comfort of these old men, and it cannot do too mucli for them. REPAIRS AND PRESERVATION. The great number of buildings, dry-docks, wharves, roads, walls, fences, &c., at the various yards require a large animal out lay to jtreservo them from deterioration and decay, and the amount asked for under (his head is much needed, and the Bureau earnestly urges theapproi>riation of the amount of the estimates, viz, $402,000. GENERAL MAINTENANCE. Under this head comes the most pressing and necessary ex])enses of a navy-yard. They embrace the care of tlie yard and all buildings, watch force, tire department; purchase and nuiinteuiince of horses, oxen, &c., teamsters carts, and vehicles of all kinds, water rent, gas, 496 PAPERS . ACCOMPANYING THE &e., witliout whicli none of the other (lfi»artments can carry on their operations. The nuiii asked for, vi/, $ tOO.OOO, is absolutely necessary. CONTINGENT. The sum require*.! under this head, viz, $30,000, is to meet nutbreseeu emergencies that may arise, calling for immediate outlay that has not been estimated ibr. it is a small but most necessary reserve. GENERAL REMARKS. If the United States assumes to be a naval power at all, it should not be content with occupying a subordinate position, as, adjuncts to a navy -yard, where ships may be constiucted, repaired, and equipped, are as necessary as ships. To this end the machinery, appliances, and fa- cilities should be the best that can be procured. In this respect the navy-yards are far behind many of the private establishments of the country. This should not be the Ccise; where time is money, every means should be adopted in the direction of expediting work. In many of our yards the distances are great, means and conveniences of transportation few and slow, and much time is lost in passing work from one shop to another. If it is expected that our yards are to do work eflSciently, and as well as other manufacturing establishments, thej^ must be supi>lied with the same time and labor-saving conveniences, and not handicapped with serious expenses which are at present unavoidable, and which no pri- vate establishment could or would tolerate. As well might we expect a cabinet-maker to do his work with ordinary carpenter's tools. Accompanjing this report is an abstract of offers for supplies received for furniehing articles coming under the cognizance of the Bureau of Yards »ud Docks, made in conformity to the act of Congress, approved March 3, 1843. The following estimates for the fiscal year ending June 30, 1884, ai'e respectfully submitted: For support of Bureau of Yards and Docks §13,360 00 (jreneral maintenance of yards and stations and contingent 520, 000 00 Sup|K)rt of Naval Asylum 92, IPl 00 Repairs and preservation 462,000 00 Improvement at navy-yards 3,100,444 00 Civil ostabliahment 43,018 25 Total evstimate of yards and docks ,- 4,231,013 25 Very respectfully, vour obedient servant, , " ED. T. NICHOLS, ' Chief of Bureau, Hon. W. E. Chandler, Secretary of the I^avy. REPORT OF THE SECRETARY OF THE NAVY. 497 llEPORT OF THE CHIEF OF THE BUREAU OF EQUIPME^'T AND EEORUITING. Washingtox, October 28, 1882. Sir : I have tlie honor to submit herewith the nnuual report of the opei'ations of this Biireiui duriiifj tlie past fiscal year, together with ae- companying detailed e6tiiiiat<:;s for the fiscal year ending June 30, ISSl. During the i)ast year ()9 vessels have been wholly or partially equipped under this Bureau, at an expenditure for labor of 872,480.20 and for ma- terial of $511,516.00, making a total of 6583,090.92. For the present fiscal year. Congress ai)propriated under "equii)ment of vessels" only .$750,000, notwithstanding the Bureau's estimate was for $896,000, wliich was based upon the increased wants of the service at that time. Since the 1st of July last a number of vessels have been put in commission in addition, and it is believed that the iucreased amount asked under said api)ropriation for the ensuing fiscal year is absolutely necessary for the maintenance of the number of vessels in commission, and for the constant repairs in the workshops under this Bureau in the several navy-yards. COAi. There have been purchased at home and abroad 44,811: tons of coal, costing, including freight, $.378,006.28. During the past year Commander J. H. Sands, commanding the U. S. S. Iroquois, has made a reconnaissance of Magdalena Bay, Lower Cali- fornia (referred to in my last annual report), with a view of establishing a coal depot there. His report, setting forth the many advantages the place oilers for a coaling station, fully corroborates my views in the premises, based upon past experience. I have again submitted an estimate for $80,000 for the building of eight iron coal barges of about 250 tons capacity' each, with steam hoist- ing apparatus. The necessity for these coal barges is fully set forth in my last annual report. 1 have nothing to add, but that this necessity has become more ai)parent, by the great ditllculty lately experienced in coaling a number of vessels of the North Atlantic squadron, assemblcii at one time at Xew York and Hampton Itoads, entailing upon this Bureau a large expense for want of i)roper transportation for coaling them. I therefore res])ectfully and earnestly invito your attention to this, in njy opinion, so ianportant a matter to the interest of the service. KOPEWALK. The following cordage have been manufactured : Cost. 24r>,01t7 Tioiimls of Man ila rope §49, Oil* 40 405,ua4 poutidB of lifiup rojio tf8, W:? .'i'J 1,»66 jiouiKirt of iiidi! ropo, l,f«>(i 0() There have been i)urchase]>les the effective force of the Xavy. Very respectfully, your obedient servant, EARL EMGLISH, Chief of Bureau. Hon. WILLIA3I E. Chandler, Secretary of the 2^avy. EEPORT OF THE SECRETARY OF THE NAVY. 499 KEPOET OF THE CHIEF OF THE BXJEEAU OF NAYIGATI0:N". Bureau of Iv^avigation, Navy Department, Washingtotiy November lo, 1S83. Sir : I have the houor to submit the following report of the Bureau of Navigation for the past year, together with the estimates for its sup- port, and for the expenditures that will probably be required in that division of the naval service committed to its immediate charge for the fiscal year ending June 30, ISSi. Incfuded in this report, and transmitted herewith, are the reports and estimates of the several offices under its cognizance, and an abstract of ofiers for supplies received. NAVIGATION. The American Practical Navigator, the revision of which was com menced in November, 187S, has been satisfactorily completed, and is ready for issue. A new edition of the Useful Tables has also been pre- pared, and is now in the hands of the printer. Compasses. — To keep the large number of compasses in serviceable condition freqnent repairs are necessary. In the absence of suitable facilities for making the required tests of the instruments at the Naval Observatory, they are tested at the observatory connected with the establishment of the manufacturer at Brookline, Mass., which involves the expense and inconvenience of sending the Superintendent of Com- passes to that ])lace whenever compasses are repaireil or purchased. At i)resent it is only ]>racticable for this oflicer to examine the com- passes for sensibility, directive force, and centering; but, to insure re- liable compasses, the pivot, and the jewel of the cap should be exam- ined to detect roughness, tlaws, or cracks; the liquid should bo tested to insure the i)roper amount of alcohol; the float should be subjected to heat; and exi)eriments should be made upon the sixty or more needles which cojnpose the two bundles for each compass-card. Every compass should be examined before being issued to a ship going into commission, and again ui)on the return of a ship from a cruise, in order to determine the effect produced upon it by change of locality. The compasses of iron and steel ships lose their directive force iu a comparatively short time, and the errors, due to the effect of the mate- rial of construction, constantly vary. There is now no means of in- quiring into the causes of errors in compasses, with a view to])roviding a remedy therefor, and to insure reliable instruments being supplied to our vessels. During the ]»ast year I have caused the inquiry into the subject of the magnetism of ships to be continued. The magnetic history of every vessel hereafter built for the Navy is to be carefully recorded from a series of observations which will begin with her construction. In order to aid the scientific study which is now made of the construc- tion of the marine compass, the necessary tests anerintendent of the Naval Observatory, Rear-Admiral John Kodgcrs, in n letter to the Navy Dei)artment dated January 27, 1882, gave the following ojiinion : " The Sijjnal Bureau seeks ajiparently to give tirae-sign.als to the United States. This is a eelf-iinpoaed task and pccuniiiry burdeii. Tlie Signal Bureau has not, necesHarily, astroiiomei's, nor telescopes, nor tlif means of coTHrollinif tluckH Ijy astronomical oii- 8crvatioi;a. Time-bigual.s may bo iulcmloil a.s the lirst btep to all these. They would follow; aiad it \h better to objtxt now than when the aijpropriatioua are frittered iu useless exijoudituies of similar work." 504 I'APERS ACCOMPANYING THE The oi)Ci;irti()ns of the Si;]^ruil Servico have been liiithcr extended bj the or{4iiniz:itioii of a '• marine division" in the office of tiie Chief Signal Oflicer, and by the establishment of a ''marine agency" in the city of New York. Charts of the North Atlantic Ocean are issued containing informa- tion as to the direction of cyclones, the limits of icebergs lanets, and of double stars. A few observations also have been nuule tif comets wheu ver^' faint. KEPORT or THE SECKETAEY OF THE NAVY. 505 In addition to Lis regular work on the 26-incli Equatorial as aasiat- ant to Professor Hall, Professor Frisby has continued to make observa- tions of comet h of 1881. His last obsfi^rvatiou was on January 19 of the pi-esent year. This, it is believed, is the latest observation of that comet tliat has been made anywhere. The comet WelLs was also ob- served by him on the OA-inch Equatorial from March 29 to July 10. Eleven observations were made and elements computed, which were sent to the Astronomische Nachrichten. Three observations of Bar- *])art. James M. Gilliss. REPORT OF THE SECRETARY OP THE NAVY. 507 The reduction of these zones is now so far advanced that a card cata- logue of all the stur.s lia.s been formed, each star occupying a single caid. The total number of stars is about 17,000. They have Ijeen examined for accidental errors u\> to the end of twenty-one hours, but it yet remains to examine them lor systematic errors. Everything relating to the organization of the Transit of Venus par- ties is confided by law to the Transit of Venus Commission ; but as most of the executive work has been done at the Observatory, it may be ])roi)er to refer to it here. The instruments used for the last Transit have been examined and re- paired; all necessary changes have been made in them, and some new instruments have been i)urchased. At a very early stage of its deliberations the Commission decided to rely maiidy upon the photographic method of (»bserving, and, to ascer- tain the most suitable kind of emulsion, an extensive series of exjjeri- inent« was made by Mr. Joseph A. Rogers, who has also prepared all the emulsion needed for the various parties. Tiie number of i)-irties organized is the same as at the last Transit, namely, eight, of which four will remain in the United States, and the other four have alrealer, Detroit, Mich., assistant astronomer. Mr. William Mell, riiihulelphia, Pa., i)hotographer. Mr. Jrvin Stanley, Indianapolis, ln(l., assistant photographer, Santiago de Chile. Prof. Lewis Boss, Albany, K. Y., chief astronomer. Mr. Miles Ro(!k, Naval Observatory, Washington, assistant astrono- mer. Mr. Theo. C. I\rarceau, Washington, D. C, photographer. Mr. Chas. S. Cudlip, \\'ashington, D. C, assistant photographer. N^eic Zealanil. Mr. p]dwin Smith, Coast and Geodetic Survey, chief astronomer. Mr. Henry S. I'litchett, Saint Ltmis, ]Mo., assistant astronomer. Mr. Augustus Story, Bostdu, .Mass., i)lu)tograph('r. Mr. Gustav TheilkiUil, Washington, J). C, assistant photogra))her. HOME STATIONS. San Antonio, Tex. Prof. Asaph TTall, TJ. S. N., chief astronomer. Mr. K. S. Woodward, Detroit, I^lich., assisiant astronomer. Mr. D. K. Holmes, Milfonl, Del., ])h()t()grai)her. Mr. George U. Uurlbut, Belvideie, 111., assistant photographer. 508 PAPEEB ACCOMPANYING THE Cedar Keys, Fla. Prof. J. E. Eastman, U. !S. !N.. chief astroiioiiHT. Lieut. John A. Norris, U. S. N., assistant astronomer. Mr. George J*rince, photographer Treasuiy Department, photogra- pher. Mr. George F. Maxwell, Washington, I). C, assistant i)hotographer. Fort SeldeUj N. Mex. Prof. George Davidson, Coast and Geodetic Survey, chief astronomer. Mr. J. S. Lawson, Coast and Geodetic Survey, assistant astronomer. Mr. J. F. Pratt, Coast and Geodetic Survey, second assistant astrono- mer. Mr. D. C. Chapman, Coast and Geodetic Survey, photograx)her. Mr. T. S. Tappau, Bellaire, Ohio, assistant photographer. Washington, D. C. Prof. William Harkness, U. S. N., chief astronomer. (The other members of tlie party have not yet been decided upon.) LIBRARY. The library contains about 10,000 volumes, classified as follows : Works on astronomy, mathematics, physics, meteorology, geography, geodesy, navigation, transactions of learned societies, and scientific periodicals. One hundred and fifty have been added by purchase since last report, and an equal number by exchange. Twenty volumes have been bound, and one hundred and seventy are now at the government bindery. The books, pamphlets, &c. are catalogued according to the card sys- tem, and a catalogue list is being prepared in conformity with the de- partment's instructions. The annual volume for 1877 has been distributed to the various scien- tific institutions of this and other countries. The demand for these publications is much in excess of the ability to supply them. The volume for 1878 has been received from the bindery and will be distributed at once. BUILDINGS. During the past few months the buildings have been put in as thorough repair as the money available would permit. A large sum would be necessary to make all the repairs and alterations that are required, but in \iew of the possibility of removing the Observatory within a few years, it has been considered best to limit the outlay upon these build- ings to the smallest amount that would properly ijrotect the instruments, books, and other public property. Very respectfully, voiu' obedient servant, S. 0. ROWAN, Vice- Ad m i ra / , Suj) er i n ten dent. Commodore Jno. G. Walkeii, Chief of Bureau of 2\\xcifjation, Washington, D. C. EEPOET OF THE SECRETARY OF THE XAYT. 509 REPORT OF THE HYDEOGEAPHER. ]S''AVY DEPART3IENT, BUREAU OF XAVIGATIQN, HYDROORAPHir OFFICE, Washington, October 23, 1S82. Sir : In accordance with the order of the Bureau of Navigation, I have the honor to submit the following: report of the operations of the Hy- drographic Oflfico for the fiscal year ending June 31), 1882: WORK LEFT UNFIiaSHED IN THE PREVIOUS FISCAL YEAR 18S0-'81. Oeneral CJuirt of the South Pacific Ocean, in 8 half sheets. — The two east- ern half sheets have been revised, the corrections engraved, and they are now on issue. The correction of the middle sheets has been finished in manuscript, but is yet to be engraved. The two western half sheets require extensive corrections (from numerous late surveys), which are now being made in manuscri])t. General Chart of the North Atlantic Ocean, in 4 half sheets, is still de- layed for the purpose of introducing late information, from the new surveys in the Spanish West India Possessions, which have not yet been published. General Chart of the South Atlantic Ocean, in 4 half sheets. — The engrav- ing has been finished, and the charts are under revision from the new foreign surveys published since the original manuscripts were given to the engraver. Cliartofthe Mediterranean Sea, in o sheets. — The extensive corrections, resulting from new French and Italian surveys are now being engraved as fast as time can be taken from the correction of charts already on issue and in demand. Chart of the Xarth Sea, in 2 sliects, discontinued in the previous fiscal year on account of the pressure of other work, has, for the same reason, not yet been taken in hand again. Cheirt of the CMnnoLs between the Xorth Sea and the Baltic Sea. — ITio engraving has been carried out as far as it was provided for by agree- ment ^\itli the engraver. It will be completed in the office as early as current work will [tormit. CJuirt of the Amazon River, in (i sheets, and Chart of the Madeira River, in 5 sheets, from the survey of Commander (now Captain) T. O. Self- ridge, U. S. X. The engraving of these 11 sheets has been finished, and the charts are now on issue. Chart No. 87<), West const of Mexico, from Chiqiiepa Point to Venfosa Ban, surveyed by Commander J. W. Philip, U. S. N., has been finished, and is on issne. The engraving of charts Xo. 307, Havana TTarbor, 347 (not SoG, as erroneously printed in the previous i<'port), .lamaica, 34S, Port Royal and Kinfjston Harbors and No. 340, harbors of Jamaica, has been finished, and they are now on issne, replacing photolitliogiaplis. Cluirt'So. ■i~)ii. Gulf of Yedo. — The engraving of this chart has been abandoned for want of funds. As the chart is in d«'mand, the cheaper but unsatisfactory method of photolithography had to be resorted to for its publication. Of the series of coast charts of the west coastof Anu^rica, from Capo Uoni to Behiing's Straits, only one, No. 223. /Vo/u Di.ron Entrance to Cross Sound, was heretofore on issue in this otlice, thus leaving a gap, 510 PAPERS ACCOMPANYING THE from the northern boundary of Mexico to Dixon Entrance. At the date of my last report i)reparation8 Avere in pro},Mess for providing the neces- sary charts of tiiat coast also. Of these, the enj^ravinj:: of Charts No. 900, Went Coast of America, from iian Diego to Fiedras Blancas, and No. 901, from Fiedran Blancas to Cajie Orford, has been finished as far as there were final surveys of that portion of the coast. The charts of the other parts of the coast cannot be completed until the Coast and Geodetic Survey publish the surveys. The. preparation of Chart No. 902, West Coast qf North America ( if. 8.), from Cape Orford to the Straits of Juan de Fnca, had to be postponed, as the final survey of that coast is not yet published. Chart No. 903, West Coast of North America, from the Strait of Juan de Fuca to Queen Charlotte Islands, including Vancouver's Island and Puget Sound, has been prepared in manuscript, and is now in the hands of the engraver, as also Chart No. 904, West Coast of America, from, the Queen Charlotte Islands to Dixon Entrance (British Admiralty). The preparation of the sheet charts of the coast of Brazil to the northward of St. Joao Island, including also the mouth of the Amazon Kiver, is in progress. The engraving of the extensive corrections of the Brazil coast charts has not been completed. CtlBEENT WOEK AND NEW WORK COMPLETED DURING THE YEAR. In the Drafting and Engraving Division. — More or less extensive cor- rections from recent surveys and other sources have been made in manuscript on 45 charts, and engraved on the corresponding plateS' with a few minor exceptions, which have been delayed by more press- ing work in the engraving division. Secondary corrections, such as changes of the positions of isolated islands and dangers, placing of new reported dangers, or the erasure of such as have proved not to exist, changes in buoys or other sea-marks, &c., have been made on 51 plates. The plate of chart No. 238, Fast Coast of North America, from Narra- gansett Bay to Cape Lookout (worn out by the many impressions taken from it), has been almost entirely recut. A plan of Agua Verde Earhor, on the western shore of the Gulf of California, from a survey by Commander J. W. Philip, U. S. N., men- tioned in my preceding report, has been engraved additionally on plate No. 850, western shore of the Gulf of California, from San Marcial Point to San Basilio Bay. A special plan of Saint Paul Island, north of Cape Breton Island, from a recent British survey, has been added to plate No. 611. A plan of Shimidsu Harbor, on the south coast of the island of Nipon, Japan, from a recent Japanese survey, has been added to i)late No. 65; and tlie plan of Sago Bay, from a Kussian survey in 1855, has been erased fi'om the same plate, and replaced by one from a recent Japanese survey. A chart of Honohilu Harbor, from a very com])lete survey by Lieu- tenant Jackson, K. N., in 1880, has- been engraved, to replace one from previous surveys diflering in outlines and in the general depth of the water. Additional soundings, and some corrections reported by Commander J. W. Philip, U. S. N., have been engraved on several charts of tlie har- bors on the west coast of Mexico, surveyed by him, and published by this ofBice in the preceding year. EEPORT OF THE SECRETARY OF THE NAVY.. 511 Tho following new charts (photolitbographs) havo. been published during tho .year: 005. Brava Harbor, on the east coast of Africa, to illustrate a hydro- grapLic notice. A plan of the new docks in Batavia Koads (island of Java) for the same purpose. ' 90{). Wrangel Island, sur\'e.ycd by the naval party under command of Lieut. II. M. Berry, U. S. N., in the U. S. S. Rodgers. 007. Eodgers Harbor, on Wrangel Island, from tho same suisjrey. 008. Track of the U. S. S. Ivodgers, north of Wrangel Island, show- ing soundings in the Arctic Basin. Oil* and 011^. Circum])olar charts, illustrating the reseai'ches in tho Arctic region, with track and discoveries of Lieut. Commander G. W. De Long in the Jeannette. OIL'. Arctic Ocean from WraTigel Island to the Mackenzie River. A whaling chart. Second editions of the following charts were photolithograi)hed, for want of funds to engrave them: No. 450. Gulf of Yedo. No. 3L'5. Entrance to the river Tagus and Lisbon Harbor. No. 401. Coast of Yucatan, from Chincoua Bank to the Laguna de Terminos. No. 700. China Sea, southern portion, eastern shore. No. 516. Cuba, western portion. A considerable number of tracings of charts and drawings were made for various })urposes and for various lu-anches of tlie government. Ill the Archives J)uyision. — There have been published during the year 115 Notices to Mariners, containing 0(54 numix'red paragraphs, anhic Notices, containing 063 numbered paragraphs, and issued to the ditierent squadrons, naval stations, aud corresi)ondents. Five hundred copies of each of the above notices were printed. F<(ur quar- terly statements of notices were published and distributed. Five hun- dred copies of each statement were printed. United States Light Lists Nos. 1, 1% 2, 3, 4, and 5, corrected to date of publication, and 300 copies of each ])ubiis]ied and distributed. United States Light List ]iJo. 6has been ]>repa.red for the i)rinter, and is now ready for publication. The officers of this Division have been engtiged in in-eparing notices, posting Light Jjists and Sailing Directions, correcting standard charts to date, translating and reading proof, rearranging tho archiviis, aud comparing and shelving foreign charts. In the .Division of Library and Books. — AH books of Sailing Directions published by this office, the Coast Survey, or by foreign Ily01 ; from Coast and Geodetic Survey, 2,502^; liom British x\dmiralty (complimentary), 2'i.j; by jiurchase, 1,207; from ^lare Island and vessels, 5,730, many of which, beinc;- old and unserviceable, have been destroyed. Total receipts of cliartw and plans, 23,418. Charts issued to naval vessels: Jlydrofjraphic Ottico charts, 2,311 ; British Admiralty charts, 2,077 ; Coast and (leodetic charts, 1,839. Total issued to United States naval vessels, 6,227. To IMare Island Depot: Ilyilropraphic Oilice charts, 354 ; British Ad- miralty charts, 522; Coast and Geodetic charts, 197. Total to Mare Island, 1,073. To Executive Departments of the United States Government: Hy- drogra])hic Office charts, 121; British Admiralty, 32. Total to Execu- tive Departments, 153. To Archives and other divisions of the Hydro,£craphic Office: British Admiralty charts, 301 ; Coast and Geodetic charts, 7. Total, 368. To agents for sale of Hydroj^raphic Office publications, 6,607. To masters of merchant vessels in consideration of keejung- meteoro- logical journals, 93. To foreign correspondents and Hydrographic Offices (com])limentar5-), 712 ; to home correspondents and agents, 98. Total of charts issuetl, 15,361. In the same division, the following -work of plate printing was done: HydrogTaphic Office charts, 7,753; proofs, 297; office compliments, 500; letter paper headed, 4 reams; envelopes, 1,990; diagrams for chronometer rates, 100 ; thermometer scales. 100 ; scales for Chart ^o. 361, 500; forins of clouds, 500; and office seals, 100. Twenty new charts have been published. Five charts have been withdrawn from issue on account of later surveys having been received. Charts returned from vessels going out of commission have been cor- rected and placed on the shelves for issue when serviceable. The charts on hand have been kept corrected to date as far as the interruptions in office force would ]iermit. In the Meteorological Division the work of reducing and compiling meteorological data obtained from the log books of vessels has been continued. The reductions for a chart of the North Atlantic Ocean are complete, and a chart on the graphic plan will be published during the year. The reductions for the South Atlantic are nearly completed. During the year, 35 blank journals have been issued to masters of mer- chant vessels; 38 completed journals have been received, of which 84 per cent, are "good," 13 per cent, "fair," and 3 per cent, "bad." WORK ENTERED UPON A.KD STILL EN' PROGRESS. The follotring charts have been prepared and their engraving taken in hand: A second edition of x^o. 445, Magellan Strait, Westeru Part, from Sandy Point to Cape Pillar, to replace the photolithographic edition. Xo. 373. Jamaica, with Pedro and Eosalind Banks, and i)arts of Cuba and San Domingo, also to replace a i)hotolithogTaph edition. ^o. 915. Manzanilla and Santiago Bays, on the West Coast of Mexico, from a survey of Couimander J. W. Philip in the U. S. S. Eanger. No. 916. Ports Casilda and IMassio, on the South Coast of Cuba, from recent Spanish surveys. EEPORT OF THE SECRETARY OF THE XAVT. 5J3 No. 909. Providence Bay, with Plover Bay and Emma Harbor, south of Behring- Strait; and !No. 910. Anadyr Gulf, on the Western Sliore of the Behring Sea, both from recent Russian surveys; for whahng vessels. The Chart of the Harbor of Hong-Kong (engraved on plate 529, Western Part, General Chart, North Pacific Ocean) has been reproduced by electrotyping as a separate i)late, on which the approaches from the eastward and the channels leading to the westward into Canton Eiver will be added, which will greatly enhance the usefulness of that chart. These additions are now being prepared in manuscript. A se(x>nd edition of Chart No. 517, Cuba, Eastern Portion (photo- lithograph), is now being printed. It is intended to rejjlace the two photolithographtKl charts of Cuba, by engraved plates, as soon as the surveys of the island by the Spanish Government have been completed and published. Second editions of the photolithographed Charts No. 266, Great Ba- hama Bank, from Exuma to New Providence, and No. 809, Coast of Labrador, from Cape St. Charles to Sandwich Bay, have been pre- pared and will soon be published. Sailing Directions for the Baltic Sea, embracing coasts of Eussia and Gulf of Finland, are now ready to place in the hands of the printer. One volume of Dangers in the North Atlantic is also ready for pub- lication. * The increasing demand for accurate hydrographic information calls for a short reference to the work being done in the interests of the world's commerce by all maritime powers, and it emphas'izes the obli- gations which this government is under to contribute its quota of work in a field of operations which is as vast as the oceans of the globe, of equal importance to all commercial powers, and in which our contribu- tions to the general end in view do not compare as favorably as they should with those of other nations. While we are receiving from foreign Hydrographic OflSces a vast amount of information which is distributed by them upon the basis of mutual exchange, the return which we make is far short of what is ex- pected, or which fair reciprocity demands. In becoming a party to the pre^sent system of international exchange of hydrographic work, an obligation was incurred which should be fully and fairly recognized, and which can only be discharged by means of more reasonable appropriations. It is well to observe that the appro- priation for the work of this office for the current fiscal year, exclusive of special approjiriation for Mexican coa.st survey, and transferring photolithographs to copper, is fifty thousand dollars less than was allowed for current work in 1874; and that while Congress has cut down the approi'iriations, the work of the ollice is steadily expanding, and much valuable information which should be given to the world remains unpublished in our archives. The labors of foreign Hydrogra})hic Oflices are being pushed forwjird with greater and more persistent energy than ever before. The older surveys of coasts and harbors, with which navigators considered them- selves familiar, are undergoing a thorough revision, in which grave errors are develojjcd. France is perf«!cling detailed surveys of the French coasts and of the northern coasts of Africa, revising the charts of the Grecian Archi- pelago, while pushing forward the surveys of the coasts and rivers of Cochin China and the shore^s of the Gulf of Tonquin, anerfectly known, while other British vessels are em- ployed among the South Sea islands, esi)eeially the Fiji group. In Asia, the British IlydrogTaphic Office at Calcutta is revising, cor- recting, and extending all the former surveys of the British EnHt India possessions. This nation has done, and is doing, more in the direction of developing hydrographic knowledge than all other civilized nations combined. No expense is spared to mark the dangers which beset the path of her navigators and her commerce, or to lighten the ocean high- ways; unknown coasts are boldly approached, unknown seas entered and made to reveal their dangers and their advantages. Iler liberal spirit is a thousand times repaid in the saving of time which is achieved and the safety which is insured to her commerce and her citizens, who, following closely after her explorers and surveyors, seize every oppor- tunity, however slight, to develop and extend the commerce, and open up new markets for British manufactures, which have given England the commercial supremacy of the world. Portugal is publishing a series of coast and harbor charts from new surveys. Spain has undertaken a resurvey of her Mediterranean coasts, which has about reached the French boundary, and the charts already pub- lished establish grave errors in those heretofore depended upon. An energetic survey of the entire Philippine group is being matle, aud charts of Cuba are being thoroughly revised. Italy is busy with a resurvey of her coasts and adjacent waters. Germany is making a survey of all its shores, and the hitherto dan- gerous navigation of the Baltic will be made more safe, as new charts are rapidly published. Netherland surveying vessels are engaged in active surveys of their possessions in the East Indian Archipelago. Chili is displaying great activity on the coasts of Chili, Peru, and Bolivia, while Japan, with admirable energy and devotion to modern progress, has established a national Hydrographic Office and under- taken thorough surveys of all her shores and her innumerable harbors, furnishing in rapid succession engraved charts, which compare most favorably with the issues of older hydrographic institutions. That en- ergetic ])eoi)le is even already pushing its surveys into the waters of Corea, of which but little is now known, and whicU seems destined to become of commercial imjiortance in the near future. These hydrographic labors, developing great changes and new dan- gers, necessarily entail upon this office constantly increasing work in correcting chart plates, sailing directions, and light lists of all parts of the world; and in order to keep up with the numerous corrections, discoveries, and changes constantly reported, the small force of drafts- men and engravers at our disposition is taxed to their utmost capacity, to such an extent, in fact, that the publication of some of our general ocean charts have been necessarily delayed, although taken in hand over two years ago. REPORT OF THE {SECRETARY OF THE NAVY. 515 SURVEYS AND nYDKOGRAPniC EXAMINATIONS BY UNITED STATES NAVAL VESSELS DURING THE FISCAL YEAR. The highest credit is due to the officers of tlie Arctic Expedition in the steamer Jeaiiuette, Lieutenaut-Commander Geo. W. De Lonfj, and to the officers of the puroliased steamer Eodgers, Lieut. H. M. Berry, commandiug, for the work done, and the geographical discoveries made by them and the officers luuler their command, in the Siberian Arctic. Their hazardous mission was pursued fearlessly, and with great zeal and energy. Although the results achieved are not commensurate with the hardships and loss of life endured by these bold workers in the cause of scientific discovery, yet are they nevertheless very important. The islands discovered by Lieutenant Commander De Long to the northward and eastward of the new Siberian group, and named by him, respectively, "Jeannette," "Henrietta," and "Bennett" Islands, may l>e considered an extension of that group, and have been entered upon our charts, under the collective name of "DeLong Lslands," as a lasting testimonial in the regions of eternal ice to the intrepidity of the com- mander of the Jeanuette, who with indomitable energy reached a higher latitude than any heretofore attained in the Siberian Arctic, and gave his life to the cause of scientific research, while inscribing his name for ages where few may hope to follow. Wrangel Land, first vaguely rei)orted by Admiral Wrangel of the Kussiau navj', afterwards believed to have been seen much farther north by the late Admiral Kellett of the English navy, and closely api)roached by two American whalers in 1807, was generally supposed to be the southern extremity of an archipelago or mainland extending to the Pole, and possibly connecting with Greenland ; it was even so represented by Dr. Petermann on some charts published in his justly celebrated work the " Mittheilungen." These theories have been entirely disproved by Lieutenant Berrj'jOf theEodgers, who found Wrangel Land to be an isolated island of about 70 miles in its greatest dimensions. An excellent running survey of its shores and shoals was obtained by his boats, which almost entirely circumnavigated the island and defined its limits. After penetrating into the ice 180 miles north of the island, the remarkable fact was observed that the water constantly deepened as the latitude increased. From the preliminary data obtained, charts No. 900, 907, and 90S were prepared, and have been distributed to all foreign Jlydrographic Offices. The prosecution of the survey of the west coast of Mexico by Com- mander Philip in the U. S. S. Kanger, although delayed by a pecu- liarly unfavorable season, was continued by that oHicer with his usiud energy and faithfulness. During that portion of the year when oper- ations on a tropical coast were necessarily susi)ended, the work of plotting and ])reparing smooth charts was jHosecuted with good results at San J'^rancisco. A ])ortion of the season was devoted to an unsuc- cessful search for tin* Keed rocks, which have been reported on several occasions as existing about 7(»0 miles west of San Francisco. Although they were not found by tlie Kanger, the weight of testimony as to their existence is great enough to justify a further and more exhaustive search, when a vessel properly equipjied can be spared for that service. It is quite ])ossible that they may have disap])earcd in some of the great disturbances which are known to aftect the bed of the Pacific Ocean, but, until that fact is demonstrated by further search, their apjiear- auce on the charts is a serious embarrassment to navigators, entailing anxiety and loss of time. 516 I'AI'ERS ACCOMPANYINO THE Tlic siirvoy ol" tlic wost coast ol" iMcxico huK l)oen ciniiidctod witli tlie excei>tioii ol" tlie isoctioii between Vcutosii I'oiiit ami tlie Oco.s liiver. When tliis gap shall bo tilled during tin; earii(;r ])art of the coining season, the extension of the survey over the coasts of Costa Jlica and ^Nicaragua, from the Gulf of Fonsc^ea to the Gulf of Dulce, will be com- menced, in accordance with the wishes of the Bureau. The result of last season's work on the west coast is conipris(Hl in special charts of Manzanilla and Santiago liays, Chamala «)r J'erula Bay, Tenacatita and Navidad Bays, and of the port of Altata, in tlie Gulf of California. This port is the western terminus of one of tlie ])rincipal railroads through the province of Sinaloa, and will eventually become an im]>ortant shipping port for the rich mineral district tlirougii which the road is being constructed. When the riiilip survey is com- plete, American charts from Panama toBehring's Straits willbe the latent and most reliable guides published for the use of navigators. The very imi)ortant survey during the past winter of the Bay of Samaua, done under the direction of the Bureau of Navigation by Commander Bridgeman in the U. S. S. Despatch, has been most admir- ably executed by that officer, and the skilled corps of uaval ofticers under his command. The work, which proved very arduous, has been thoroughly executed, and reflects great credit upon the officers who performed it, and the results received are not surpassed in excellence by any previous surveys received by this office. The survey embraced the entire Bay of Samaua, including the Yuua and Barracouta Rivers as far as navigable. But little was known of this magnificeut bay pre- vious to Commander Bridgemau's survey, in which its marvelous re- sources and capacity have been develox)ed. The energy and zeal of the officers of the Despatch may be appreciated when it is remembered that the work was completed in less than eighty working days, during which 15,655 angles were measured, 57,877 sound- ings obtained on lines run by the vessel and its boats, and that those lines aggregated 2,603 miles. These details are alluded to in order to show what results can be obtained by an energetic and intelligent work- ing party carefully equiijped with all modern facilities for marine sur- veying. The working force of this party was more than quadrupled by being furnished with steam launches, which never tire under the direc- tion of industrious and energetic officers. The publication of a chart of the entire bay, with special charts of the harbors of Santa Barbara and San Lorenzo, will be pushed forward as fast as the current work of the office will permit. The U. S. S. Alert, Commander C. L. Huntington, completed the ex- amination of the islands and reefs southward of the Gulf of Yedo to the Marianne group, and to the westward of the latter, disproving the existence of a number of reefs by soundings with the deep-sea apparatus over and in the \icinity of the reported positions. The same officer gave information regarding anchorages on the coast of China. Comjnander Louis Kemj)!}', his successor in command of the Alert, transmitted a description and tracings of the new dock in Batavia Roads, Java, which were published by this office. Commander G. H. Wadleigh, of the U. S. S. Alliance, while in search of tidings from the Jeannette, between Greenland and Spitzbergen, collected important data regarding the coasts of Iceland and the waters in the vicinity. His meteorological and current observations during the cruise are of special value. The F. S. S. Shenandoah, Capt. W. A. Kirkland, made an unsuccess- REPORT OF THE SECRETARY OF THE NAVV. 517 fill search for tlie ^ladeiro liock, oli" the coast of Jirazil, veritied the cxtcntof the La Plata Basin, and fjavc (tther hydro^aaphicmforniation. The XL S. S. Yandalia, Capt. K. W. Meade, furnished a plan siiowinj^- the depth of water at and otf the docks at Aspinwall, also a survey ot" Boca del Toro by Lieut. H. Perkins and Ensij^ii L. Flynne. From the carefully kept journal of the commander, copious notes were derived leyardiut;- the ]>ennudas and various harbors in the West Indies and on the North Atlantic coast. The U. S. S. Quinnebau«:, Commander X. H. Farquhar, furnished hydrograpliic information refjarding a number of ports in the eastern part of the Mediterranean. The U. IS. S. Galena, Commander O. A. IJatchcller. reported hydro- graphic data regardinjj the ports of Alexandria and Gibraltar, as also for the west coast of ^Morocco. The U. S. S. Essex, Commander A. H. McCormiek, reported errors in the sailing directions for the west coast of Africa, The U. S. 8. Trenton, Capt. F. M. IJamsay, reported an error in the longitude of the Balearic Islands, and other hydrographic information. Tiie U. 8. 8. Marion, Commander 8. W. Terry, furnished a chart and views of neard and ^Macdonald Lslands in the Indian Ocean. The U. S. S. Kearsarge, Commander G. B. White, reported concern- ing the buoys in the entrance of Kingston Harbor, Jamaica, as also the water in the South Pass of the Mississippi. The IJ. S. S. Yantic, Commamler E. T. Woodward, gave iuformaiion regarding wrecks on the Tuxpau Keef, east coast of !Mexico, the light at Tampico, and the channels leading to Aux Cayes, Hayti. The U. 8. S. Brooklyn, Ca])t. A. W. Weaver, forwarded information re- garding obstructions in the harbor of Montevideo, and buoys in Magel- lan's Straits. The U. S. S. Adams, Commander E. C. Merrimau, reported regarding a wreck in Panama Koads. Bear- Admiral J. H. 8j)otts, of the South Atlantic squadron, transmit- ted valuable information regarding the La Plata Bank; and Bear- Admiral .1. M. B. Clitz, commanding the Asiatic Station, transmitted tracings of a recent British survey in the vicinity of Okosiri Island, Japan. The Superintendent of the United States Coast and Geodetic Sur- vey has given very valuable assistance to this oflicc by furnishing ad- vance sheets of several iini)ublished surveys on our western coast, with other hydrograjHiic information. The office is specially indebted to him for the electroty])ing of a niiniber of plates. Important hydrograpliicr information from Mr. W. P. Pierce, United States consul at Cienfnegos ; Mr. E. W. P. Smith, T'nited States consul at Carthagena, Colombia ; Mr. E. II. IMumacher, L'nited States consul at Maracaibo, and Mr. William Morey, United States consul at Colombo, Ceylon, was transmitted from the Department of State to the Navy De- I)artment, and referretl to this otlice. This othce is also indebted to the boaid of underwriters of New York for information regarding the bar of the Bio Grande at our boundar\- line with ^lexico. Of late years, much interest has been manifested by the Geographical Institutions of Europe, and by jirivate individuals, in i)erfccting a method by which drawings, charts, maps, &c., could be transferred to copper and printed as frumi engraved i)lates. The Topographical Bureau of the Austrian army has succeeded in i)roducing by this method, known ;is lleliography or Photogravure, a series of military topt>graph- 518 PAPERS ACCOMPANYING THE ical cliarls of tho Aiistiiaii Eni])ii'(',(iom|)anng well with cd graved charts, but hardly of .sutlicicnt .size for nautical charts. liocoiitly, however, private «'ntor))rise in this country has become in- terested ill the subject, and satisfactory specimens of this method have been received. Tliis process ]>romises such important and economical results, combined with the ability to make necessary corrections and additions on the ]>lates, that it has been considered advisable to en- courage the development of tlu^ process to the fullest extent, and, with this end in view, Charts Xo. i)l'3. Port Henry, in Magellan Straits, and No. 914, South Coast of England, which are needed for issue, have been prepared for republication, and jdaced in the hands of the opera- tors. The results of the final experiments are awaited with interest, and such confidence in its success that the publication of a second edition of Chart 809, Coast of Labrador, is held in abeyance until the two other plates referred to are received. Should the degree of success equal our apparently just expectations, this office will enter upon a new era in chart production, as charts by this process can be ready for printing in one-fourth the time required for engraving the ordinary plate. EECOMMENDATIONS. In my last report I urged the importance of a survey of the Caroline and Marshall groups in the North Pacific Ocean, and a revision of the imperfect surveys of the so-called Spanish Main, and of the coasts of South America, eastward of Trinidad to the mouth of the Amazon. I can only renew my solicitations for the detail of vessels fitted out for this work, and reiterate my statements of the importance to com- merce of correct charts for navigating these waters. In the Caroline and Marshall group, as well as throughout the Pacific Ocean, there are many entirely unsurveyed dangers which greatly im- pede navigation. The searches for reported submerged reefs were heretofore very diffi- cult. Late improvements in deep-sea sounding apparatus facilitate them greatly, and thorough examination of the localities reported as unsafe is again urged upon the attention of the Bureau. The Government of the Sandwich Islands has almost completed a geodetical survey of the gTOup, but is hardly prepared to perform the hydrographic part of it. A chart of a portion of Oahu, now on issue by this office, does not show a single sounding on the eastern and north- eastern coasts. Our relations with the Sandwich Islands are such that we are almost called upon for. aid in these important labors ; and I recommend that the necessary soundings be taken north of the islands, in order that the character of the approaches may be plotted. ##*»*♦* Very respectfullv, your obedient servant, J. C. P. DeKRAFFT, Commodore, TJ. S. jV., Hydrographer, Commodore J. G. Walker, U. S. N., Chief of the Bureau of Xavigafion. REPORT OF THE SECRETARY OF THE NAVY. 619 KEPOKT OF THE CHIEF SIGNAL OFFIOEK. if AVY Department, Bureau of Navigation, Signal Office, Woshixf/toUj D. C, Novemhcr 15, 1882. Sir: In couipliaucc witli your order of the 21st ultimo, the followiuf? report of tbc operatious of the Signal Office for the past year is re- spectfully submitted : Letters from the Army Signal Otlice, asking foi- information and re- questing co-operation, have been referred to this office, the replies to Avhich have been transmitted to the Bureau. Capt. James 11. Gillis, U. S. N., vsubmittcd a phin for niglit signaling, (devised by himself, which was carefully considered in this office, and ^tlie report submitted to the Bureau April 8. Experiments have been made on board of nine naval A^essels to de- termine the relative merits of Very's and Coston's night signals, and the result, deduced from the experiments, was subniitted to y(»u on June 30. Experiments were made lo determine the relative merits of the Win- chester and Ely cartridges, for use with the Very night signals, and the report submitted August 18. A telegTaphic code for sending or transmitting cable messages by substituting a word for a sentence, has been x>repared, and was sub- mitted to tlie Bureau on the 12th of August. The quarterly reports of instruction in signaling, received from ves- sels in commission in the early part of the year, indicated in many in- stances that the practice of signaling had been neglected. It is very desirable that the instruction should be continued, and the quarterly reports should show that not only tl)e siginil officer, but that all the watch and division officers do give practical instruction to the quartermasters, coxswains, appn.'ntices, and young blue-jackets, not ex- clusively in Myers' code, but in the naval day and night codes, in the rules of the road, and the significations of buoys, beacons, and channel marks. The meteorological bulletins received from many of the vessels show a great want of care in recording, and are frequently relujued. to the ships for revision and correction. Tiiey are not forwarded to the Army Signal Office until this ollice is satislied of their correctness. 1 take this occasion to renew my verbal recjuest that all material and matter relating in any way to signaling be submitted to this office to be noticed and considered, in order that the Chief Signal Officer may be able to keej) a connected and reliable record of all subjects pertain- ing to signals and signaling. Very respect full v, your obedient servant, P. C. JOHNSON, Captain^ and Oiief Signal Officer, U. iS. iV. Capt. Jno. G. Walker, U. S. N., Chief of Jiiircan of N((ri(j(^ti0 00 Total 35,731 68 THE GENERAL OPERATIONS OP THE BUREAU. The following will exhibit the character and cost for labor and mate- rial of the work done under cognizance of this Bureau for the fiscal year ending June oO, 1882, ui)on the machinery, boilers, &c., of naval vessels, and tlie expenditures for maintenauce, &c., at the several navy- yards and stations : REPORT OP THE SECRETARY OF THE NAVY. 523 Name of vpssel Alaska Adams AHianco . Asbuelot Alert Alanu , A.jax Bixwiklyu , Colorado. Congiesfi Canandaigna . Canouicu» CoHnti'llation Cntuljia. Cohasset. Despatch . Dictator . . Essox . Kcniarks. Kcarsnrgo ; Hd Kausas ' ''i\ Lancaster 1 I'd Laokaivanna Ltduirh J..eyil«!n - ALiiiou Hfouocacy iliihiiiHD ^liiiiii'.sdta , jVtaiihnttan Moutuuk MiantDiionioh May (lower Monterey Nipsic Kaliant New llaiupsLivo Omalia 2d Inin-clad '^•"S 3.1 3d -Ith l«t Iron-dnd IroU'Clud Iron-dad T"K ?>' .'Id Iron-clad 2a Ossinee , I'owliatau PonwR^ola Paloa Plymouth 3d .. 2d .. 2d .. 4th . •J.l . . 1, i:)9 03 275 32 35, MS 80 2, 370 87 gf)' 3, 393 09 275 32 13, 373 06 49, 790 88 109 19,-) 340 HO 1,003 3, 04fl 77 31 21 m 00 1, 2M 50 1,277 GO 19 36 1,184 1,5«0 30.S 83.-. 97 55 41 7» 120 25 3,704 J7 2, 493 71 31 !»7 1,843 11 10.730 14 12, 647 25 3.071 20 2,371 17 21 J 38 1, 402 30 ."i, 3.'0 28 2. 78-.' 40 raira made. Heiiig preserved. In i-ervice; thorough repairs cotu- pleted at the New York yard. Recciving.siii]) at New " York ; Hli!:lit n-pairn made. Pre.-t Tviu'^ iiiachinerj" at Ports- mouth, N. H. Preserving machinery at Norfolk, Va. Repairs tolanuch. Hnudry repaii-s made. Slight n-pairs to lannch. In service ; snndry repairs made. Do. ^ Do. Preserving machinery. Id service ; machinery repaiitjd at League Island ; new boilers heiu;; built at New York. In service ; thoroughly repaire«l at Washington, with new hoilci^. In service ; sundry repairs made. Keceiving-ship at Norfolk; sun dry repairs made. Preserving machinery at Wash- ington. Being thoioughly repaired, with new boilers. In Service ; slight repairs ina])aii8 made. Preserving macliiuery. Stores, Jtc, lor launch, and heat- ers. Kepaiis to muk hitierv under way at Poilsiiiiiuth. N. H. Under re)>air at I,i.'aj;uo Isl.ind. Ill .service; sundry reiiairs made. Do. Do. Kngines, Ac, disconnected at Poilsiuouth, N. H. i24 [•Al'E«S ACCOMPANYING THE Xame of vesnel. ]*assaic . I'lilox... Pil^niin . Piuta... Quinnobanj liichiaond . Kanger .... Eeacue Eocket Kose Sheuandoali . Swatara Shawiuiit Seawoptl Suowdiou . . . Speedwell . Standish... Teiinesijoe . Treuton Ticonderoga . Tiiscarora . . . Tallapoosa. Katr e V o P4 Iron-clad ! Tug $820 17 Tnj; ICO 12 Tug 22,100 42 3d .. 2d .. 3d .. Tug Tug 2d .. 3d . . 3d .. Tug Tng Tug 1st.. 540 34 72 73 .1 90(i 91 .' 2,140 53 .1 8 38 .; 20 25 .! 082 97 .' 224 62 182 50 300 21 6, 708 42 1, 546 73 2,051 23 4, 658 40 Tiiana Tug Vaudalia 2d Wachusett 3d "Wyoming 3d "Wabash Ist "Worcester i 2d "Wyandotte iron-clad Yantic ! 3d 195 52 'iso'si 2d 0,250 20 2d I 102 52 3d ' 2,498 09 4th ! 14,760 37 1, 127 80 309 02 312 37 404 06 $377 07 "'266'64 C, «8 00 3, 069 27 2,476 31 02 57 285 07 3, 577 02 484 13 417 55 389 11 5, 054 81 4, 160 10 24 53 23 33 rl I $377 07 820 17 366 76 22, 100 42 7, 197 40 3, 142 00 3, 383 22 2, 209 10 8 38 305 32 4, 259 99 708 75 182 50 306 21 7, 215 97 1, 935 84 7, 070 34 8, 818 50 6, 274 81 125 85 2, 498 09 , 010 01 \ 16, 770 36 177 41 2, 739 54 2, 954 31 49 82 079 32 380 03 1, 501 59 Kf^inarks. 1, 305 21 3, 048 56 3,266 68 453 88 679 32 195 52 386 03 1, 682 43 In service; stores. Slight lepair.i made. Do. Being thoroughly repaired, with new boilers, at Norfolk. In sen'ice ; slight repairs made. Do. Do. Being rf])iiired, \sitb new boilers, at Washington. Slight repairs made. Do. Being repaired at Boslon. In service; .slight re])airs made. Preserving iiiachiupry. Sundry repair.s made. In service; repaiied, -with new boilers, at Norfolk. Repaired \rith new propeller. Sundry repairs made. In service; machinery, &;c., re- paired. In service ; thorougli repairs under way at Xew York. Slight repairs made. Work on new boilers at Maro Island. In service; thorough repairs, •with new boilers, completed at "W^a.shiugton. Kepaired at New York. In service ; sundrj' repairs made In ser^^ce ; sliglit repairs made. Sundry repairs made. Stores furnished. Preserv'ing machinery. Stores fviruishei)riati()a for each y;ird, "svhich is insufficient to properly keep up tlu* iccords, rc- l)orts, &c., of thi.s Bureau at the yards, and in case of sickness seriouij embarrassments must arise. WORK REQUIRED. The following will show the work required to be done to engines, &c., of naval steamers to lit tlu'm for efficient sea-service, all of which is subject to reports from boards appointed in accordance with law. Adanifi (od rate). — Should have new boilers, for which the material is on hand ut Mare Island, Alliance (.'id rate). — liequires some overhauling and re])air and new boilers constructed, foi- which mateinal is on hand at Norfolk. Ashuelot (3d j-ate). — Should have thorough overhauling and repair. Alert (;kl ratej. — Make thorough rc^pairs of machinery and put in new boilers. Aniphiiritv (iron-clad, 3d rate). — Requires new machinery; comple- tion and i)utting on board of new boilers. Ajax (iron-clad, 4th rate). — Engines require repairs and new boilers. Alarm (tor])edo-ram). — Requires to have steering-propeller arrange- ments overhauled and repaired. Benicla (2d rate). — Engines require repairs; new boilers to be con- structed and put in, for which material is on hand at Mare Island. Blue Light (tug). — Requires extensive repairs. Colorado (1st rate). — Requires new boilers, and crank shaft (on hand) to be put in, and machinery thoroughly overhauled and repaired. Canonicm (iron-clad, -tth rate). — Requires repair and new boilers. Catalpa (tug). — Requires overhauling and repair. Dictator (ironclad, 3d rate). — Engines require repair and neAv boil- ers constructed and ])ut in. JEssex (.3(1 rate). — New boiler to be completed at New York yard (ma- terial on hand) and ])ut in vessel. Franklin (1st rate). — Requires new boilers (now on hand) to be put in, ami machinery thoroughly overhauled and repaired. Frolic (Ith rate). — Requires thorough overhauling and repair. Fortune (tug).— Complete repairs to engines and ])ut in new boilers. Glance (tug). — Requires repair and new boilers. Laclawanna (2d rate). — Will shortly require general overhauling and repair. Minnemtta (1st rate). — jMachinery requires repair and new boiler.s. Monongahela (2d rate). — J{ee asked to so far modify tlie act api)roved August 5, 1882, in relation to the number of assistant engineers on the active list, as to allow the number provided for under act ai)provcd ^larch 3, 1871, that is, one hundred passed as- sistant engineers and one hundred assistant engineers, with the relative rank for each as now fixed by law. ESTIMATE OF APPROPRIATIONS. 1 have the honor to submit herewith the annual estimates of this Bu- reau for the fiscal year ending June 30, 188^. Very respectfully, w. n. SHOCK, Chief of Bureau . Hon. William E. Chandlier, Hecrciarij of the Xai'j/. • •»••♦# 34 Ab 530 PAPERS ACCOMPANYING THE EEPOKT OF CHIEF OF THE BURlilAU OF (JONSTRUCTION AND REPAIR. Navy J^bpartment, Bureau of Construction and Repair, November U, 1882. Sir: In compliance with your iiistnictioiis of the 28th ultimo, I have the honor to state that for the purposes of this Bureau there will be re- quired for the liscal year ending June 30, 1884, the sum of $6,382,807.75, as shown in the accompanying papers marked A, B, C; also statements of the work performed and amounts expended during the past fiscal year. The estimate of the expenses of this Bureau, as given in the state- ment marked A, is in accordance with existing laws. ' The estimate of the pay of clerks and writers at the different navy- yards, in the tabular statement marked C, is for the service of persons who cannot be dispensed with. The present appropriation for the em- ployment of this class of clerks is inadequate for the proper execution of duties necessary to keep correct accounts of materials purchased and expended and of the labor performed. Capable iiersons are required for this class of work. The estimate marked B is for the preservation of vessels on the stocks and in ordinary, purchase of materials and stores of all kinds, labor in navy-yards, &c., and for the general care and protection of the Na^'y. The sum of $500,000 is required to complete the New York, at the Brooklyn yard, and the Mohican, at the Mare Island yard. The New York, now in position on the stocks in one of the ship-houses, has a live- oak frame, and from the fact that she has been under cover and not planked or ceiled, the air has circulated freely, and her frame, beams, &c., are in a good condition of preservation to-day. A portion of her keel, which is of white oak, will have to be renewed. Although this vessel was designed and commenced in 18GJj, she is a very fine model, and if finished will give us another good flag-ship, the want of which is seriously felt. Her length on the mean load line is 315 feet; extreme breadth of beam, 47 feet ; depth from lower edge of rabbet of keel to lowest port-sill on gun-deck is 25 feet 11 inches. She is designed to have a ship's rig, having 24,000 square feet of sail surface in her ten l)rincipal sails. Her armament will be equal to sixteen 9-iuch guns on her gun-deck, two 100-pounder rifles and one GO-pouuder rifle on her spar-deck. Her displacement at a draught of 18 feet 9 inches forward and 21 feet 5 inches aft would be equal to 4,527 tons, and her lowest port-sill would be 8 feet above water. The Bureau has nearly completed the plans for finishing her, and is ready to i)roceed with the work at any time. She is intended to have full steam-power and a speed of 14 knots. In completing this vessel it is proposed that all the planking, ceiling, decks, and, in fact, all wood materials excepting joiners' work, shall be such as have first been iireserved by the Thilmany process for impreg- nating ship-timber, by which the lifetime of the vessel will be very much prolonged. From experiments that have been made, there is no doubt that this process prevents the decay of timber by dry rot, and the worm will not cut wood treated in this way. All ship-timber, knees, &c., required for repairing extensively our wooden vessels should be put through this process, and it is recommended that all wood materials 'suitable for it, now on hand at the different navy-yards on the Atlantic coast beshii)ped to the Boston yard and returned after having been im- pregnated. REPORT OF THE SECRETARY OF THE NAVY. 531 The work on the Moliican, now on the stocks in the Mare Island yard, should be pushed to completion this year, as th(; vessel has already suf- fered somewhat from beiu^ out in the open air exposed to th«i weather. Her frame is of live oak, and if she is completed will give us another vessel of the Clarion and Swatara class, a very successful and satis- factory class of vessels. She is 210 feet between perpendiculars, 38 feet breadth of beam, ship-rigged, having a sail surCace of 14,lo0 square feet in her ten principal sails. Like the other \'essels, she can carry an armament of one 8-inch, six 9-inch, one (JO-pounder, or its equivalent in weight of more modern guns. Her draught of water, when ready for sea, is intended to be 14 feet G inches forward and 17 feet inches aft, and at this draught her displacement will be 1,800 tons. The sum of $2,080,000 is asked for the purpose of buildiug two steel cruisers, -as i)rovided for by the first session of the Forty-seventh Con- gress. This estimate is only for work called ibr under tliis Bureau. Two million dollars will be required to complete the doublc-turreted monitors Puritan, Terror, Monadnock, and Amphitrite. These vessels were examined by competent boards of officers, in compliance with a Joint resolution of the second session of the Forty-sixth Congress, and the conclusions reached by the three boards were that it would l)e to tlie interest of the government to complete these monitors, but upon plans somewhat different from those originally contemplated. The principal changes recommended by the majority of the members of these three boards were the substitution of the compound or steel-faced armor for the iron, and new long-range rifles for the smooth-bores. In the case of the Puritan, 10-inch steel-faced or compound armor was recommended, instead of 12-inch iron armor, as first designed. In my opinion it is decidedly to the interest of the government to finish these vessels. They are built of the best American iron, with double bottoms, and are intended to be finished with all modern appliances of iron-clads of their class and type. The plans for finishing these vessels as per reports of the boards referred to are now about completed, and ready for use whenever authority is given to proceed with the work. AVhen completed, they will be as effective vessels as any of their class owned by foreign powers. A comparison of war vessels should be made by comparing those of like types and classes, not with unlike. Nothing has as yet bepn done relative to obtaining the materials for the turrets and pilot-houses and armored stack of the monitor jMianto- nomoh, as the Bureau of Ordnance has not yet fully decided upon the character of the turrets, &c., and, until it does, nothing further can be done by this Bureau. In the mean time, this Biu'eau has had built a square timber crib around the base-ring of the forward and after tur- rets, and around the base of the smokestack, and chain cables and kentledge corresponding with the weight of the turrets; pilot-house, guns, and armored stack have been weighed and put inside of those cribs; the weight of the ammunition shot and shell has been put in tlio magazines and shell-rooms, by using a corresponding weight of empty shell; the coal bunkers have been filled with coal, and other outfits, equipments, and stores of various kinds put aboard, so that tlu5 vessel will be in a few days at her sea-draught, as designed, and a trial of speed can then be made, both in the river and at sea, with perfect safety. Believing that any person can form a much better idea of the value of these vessels from an actual observation on board of one, 1 would respectfully suggest that after the Miantonomoh has been dockiMl at Norfolk, her bottom cleaned, an47^ aaO 39 Balance ou hand July 1, 1882 21,233 61 Additional appropriation, act of August 5, 1882 75, 000 00 96,233 (il Vessels rexmlrcd at the different navy-yards during the fiscal year 1881-82. Adams. Iroquois. Now Hampshire. Saratoga. Alarm. Jamestown. Omaha. Saint Louis. Alliance. .Jean Sands. Ossipee. Snowdrop. Brooklyn. .Juniata. Passaic. Speedwell. Despatch. Kearsarge. Pensacola. Standish. Emerald. Lackawanna. Pinta. Tallapoosa. Ente.rprise. Lancaster. Portsmouth. Tennessee. Essex. Mayflower. Powhatan. Trenton. Franklin. Miantonomoh. Quinnebaug. Tuscarora. Hartford. Mohican. Kanger. Wyandotte. Vessels tvhich had^only minor repairs done to the)n. Alaska. Constitution. Leyden. Pilgrim, ^jax. Dictator. Manhattan. Plymouth. Benicia. Fortune. Monaduock. Shenandoah. Burlington. Frolic. Minnesota. Supply. Camanohe. Glance. Montauk. Triana. Catalpa. Guard. Monterey. Vandalia. Catskill. Intrepid, Nahant. Wabash. Cohasset. Jason. Nanragansett. Yantic. Colorado. Lehigh. ■ The following table shows the number, rate or classes, and condition of vessels, as per l^avy Kegister: No. Kate or class. 1st rate . Displacement. Condition. Hemarks. Tons. 4,840 2drato 2,100 to3,9S0 3(1 rate j 000 to 1,900 4th rate 420 to 1,270 4th-rate monitors . 1, 875 to 2, 100 1st rate • 4, 650 to 5, 170 Serviceable i Tliis vessel, the Tennessee, will be of service perh.'ips one year longer ; then I she sliould be lUsposed of. 2d rat* Sdrate monitors .. 4th-rate monitor .. 1st, 2d, 3d, and 4th i-ates Tnaa Saiung vessels Ist rate 2,400 3, 815 to 4, 500 2,100 900 to 5, 440 ....do , ....do ....do ... do Kequiring exten- sfVo repairs. do ....do , ...do Unserviceable . . . Tlie Xew York, on the stoclts at tlie Brooklyn yard, recommended to In- completed. REPORT OF THE SECRETARY OF THE NAVY. 533 Among the fourteen second-rates reported to be serviceable Ih tlie Powhatan, a very okl side-wlieel steamer, which has been and can yet be made very useful, but if kept in service many years longer must have extensivfe rei)airs. The repairs to the Trenton have been commenced at the ^ew York yard. Eight months will be required to complete her ready for service. The Pensacola needs, or will soon need, extensive repairs. The Omaha is rebuilding at the Portsmouth (X. E.) yard, and when hnished will have a complete live-oak frame, a ventilating apparatus, and 12-inch round air ports of the Bureau's design. All of the material for planking, ceiling, and decks will be of yellow x)Uio, impregnated, or preserved under the Thilmany process. The Ticonderoga is in ordinary at the New York yard, and if repaired this ye.ir it can be done more economically than later, as wooden ves- sels deteriorate much faster when out of commission and laid, up in ordinary than when in commission and well cared for. The Monongahela is in ordinary at the Mare Island yard, and will require extensive repairs to i)ut her in order for sea service. The Shenandoah has just been taken in hand for repairs at the Bos- ton yard, and will be completed in about six months. Of the twenty-two third-rates reported to be in a serviceable condi- tion there is included the Ossipee, now undergoing extensive repairs at the League Island yard. The Swatara, now on her way home from China, and the Marion, on her wiiy home from the South Atlantic station, wiU require extensive repairs. The Wachusett, just airived at the Mare Island j'aid, reciuires repairs. The Wyoming, heretofore used as a store-ship at Port Eoyal, S. C, has recently been turned over to the JSTaval Academy, to be used as a practice ship, and can no longer be considered among the effective ves- sels of the Navy. The Tuscarora is in ordinary at the Mai-e Island yard, and it is very doubtful if she is worth repairing. The Alert, an iron vessel, is undergoing repairs at the Mare Island yard, and can be made ready for service,"so far as this liureau is con- cerned, by an expenditure of about .$15,000. The Ranger, a sister ship of the Alert, has just been completed, and is now ready for service. The six fourth-rates said to be in a serviceable condition include the Palos, an iron tug, built up on and sent to China. She is reported to be in very bad condition. The Alarm is out of commissioh, at the Norfolk yard, her propeller and steering apparatus having given out. The Intrepid is out of commission, at the New York yard. In the opinion of the Bureau this vessel can, by taking oft" her side armor, armored stack, and ])ilot-house, be converted into a light-draught gun- boat for use on the Asiatic station. She can be luig-rigged, an«l ar- ranged to carry two 8-inch converted rilles. The Bureau is now ])re- paring jdaus for her conversion, and recommends that the alterations called for be made at once. Thirteen of the monitors, fourth-rates, consideret as receiving ships; even for this service they are expensive. The Puritan, Terror, Monadnock, and Amphitrite should be borne on the Register as ''new vessels in course of constiuction." The Miantonomoh is comple jd, except her turrets, pilot-house, and armored smoke-stack. The Dicta- REPORT OF THE SECRETARY OF THE NAVY. 535 tor is uudoubtedly unlit lor any use, and it would be a waste of IVinds to undertake to repair her. She has a sinjiie bottom and wooden deck- beams; her phmking is covered with iron, having thin, himfnated tar- rets and side-armor. The Saugus requires exten.sive repairs, but shouhl be carefully sur- veyed before having anything done to her. The plan pro])osed by Mr. Harris, of the House Naval Committee of the Forty-fifth Congress, for disposing of the old vessels of the Navy, is, in uiy oi)inion, the best yet suggested. His idea was that no vessel should be rei)aired which would cost over 40 per cent, of her original cost, or the cost of a new sliii) of like materials at the present time, unless recommended by a board of officers; the money accruing Irom the sales of condemned vessels afloat to be used, so far as may be neces- sary, in the destruction of vessels now on the stocks. There are a good many vessels on the stocks that have remained in an uncompleted condition since the late war, and some longer. They are now so lar decayed that they must be tlestroyed where they are, and it would be much better to liave this done by navy-yard employiis than by coutra<"t with outside jiarties, who would not be subject to navy-yard regulations and would claim the free use of the tools and ap- pliances of the yard. If private parties find it i)rofitable to come into our nav}' -yards to break up these vessels, it will ])ay tlie government equally well to have the work done by its own emidoyes. With regard to the double-turreted monitors, Massachusetts, at the Portsmouth, N. H., yard; the Oregon, at the Boston yard, and the Co- lossus, at the New York yard, the iron-truss frames in these vessels cost $157,000 each, and, being keyed together, they could all be readily and economically removed, shipped to the Washington yard, and worked over into such sizes as may be required for use in new vessels, and the copper materials put into sheets and bolts for future use. None of the old iron materials, such as turret plates, gear, &:c., should be disposed ol^ as they can all be reworked ijito such sizes and shapes as will be required in future. In connection Avith this matter, 1 would respectfully call your atten- tion to the necessity of providing our ])rincipal navy -yards with such tools as they may need in addition to those now on hand, for the i)ur- pose of building and re])airing steel and iron shii)S. While the iron shipbuilding firms of this country are undoubtedly ])repared for, and could, in the event of war, build very many ships, the ex])eiience dur- ing the late (;ivil war has sho\\n that the entire shipbuilding interests of the country, together with all our northern navy yaids. were taxed to their utmost capacity. If this was the case then, we would labor at a great disadvantage in the event of a foreign war if we had to depend entirely upon outside builders. The sum of $15(),000 exju'uded for such tools would, in my opinion, be suflicient to put our yartls in good order for this class of work. I desire to especially invite your attention to the necessity for, as well as the great advantage the government wouhl derive Irom, the building of a suitable dry-dock at the League Island navy-yard. In fitting the Constitution to carry goods to the Taris Exposition, it was necessary to dock the ship, and outside i>arties had to be depended upon ; though satisfactory arrangements were made in this case, great delay and inconvenience might occur in an emergency, such as our ina- bility to obtain the use of a dock belonging to private parties. There are but few foreign governments possessing navy-yards tliat 536 PAPERS ACCOMPANYING THE are not in better condition foi- docking tlieii- vessels at tliis time than our own. The turnin<;-f]:ate.s and caisson of the dry-dock at the Boston yard are in an unsafe condition, and witli a few thousand dollars expended upon them could be made good for some time to come. The docking of the Powhatan is now delayed in consequence of repairs of a temporaly character being made ui)on them in order that the ship may be docked. These turning gates should be put in order without further delay, as it is risky to dock a vessel for extensive repairs without it. ]Sro\v that the four sections of the floating dock are at the Pensacola yard, and the new caisson has been built, I would resi)ectfully urge upon the department the necessity for putting these sections in order for use, and that two more be built, so that the docks may be used to good advan- tage in docking a vessel at that place. The sections are now of no use. and when put together will only take out a moderate-sized vessel. 1 would also urge the speedy completion of the stone dry-dock at the Mare Island yard. I have the honor to be, very respectfully, your obedieut servant, Hon. Wm. E. Chandler, Secretary of the Navy. T. I>. WILSON, Chief of Bureau. MEMOEANDUM OF THE NAVAL ADVISORY BOARD. Naval Advisory Board, Washington^ November 21, 1882. Sir : The Naval Advisory Board recommends to the honorable the Secretary of the Navy that there be constructed, in addition to the two cruisers already authorized to be built, two of the ten second-rate, sin- gle-decked, steel, unarmored cruisers recommended by the late Naval Advisory Board, the displacement being limited, however, to about 2,500 tons each, with a speed of not less than 13 knots, and at a cost each — To construction §425,000 To engines 235,000 To ordnance 164,820 To equipment 50,000 Total 924,825 The battery to consist of eight 6-inch breech-loading rifled guns and six revolving guns. We might also reex)mmend for construction one ram, of the five steel rams suggested by the late Naval Advisory Board, the displacement to be about 2,000 tons with a sea speed of 13 knots, at a cost each — To construction |n350, 000 To engines (twin-screw) 300,000 To equipment. 20,000 To tori>edo outfit (if fitted) 51,000 Total 721,000 The Board is, however, of the opinion that the construction of a ram is not itidispeusably necessary, except under prospect of war. The KEPORT OF THE SECRETARY OF THE NAVY. 537 raiu is of no use in time of peace, and can be built within ninety days, or readily improvised from another vessel in emergency. The Board advises that a ram should be designed, to provide against contingency above referred to. Also one dispatch boat, of about 1,500 tons displacement, to be built of iron, with double bottom, with speed of not less than 15 knots, at a cost — To constniction >5230, 00(1 To engines 175,000 To ordnance :?0, OOli To f q y3 00 Tlie .appropriation for contingent was r>0,000 00 Amount expended (1881-'ri2), as per account« rendered up to November 1,1882 :i.'.. 153 75 Balance 24,840 25 The aiiKuint of clotliing fund Jnly 1, 18-1, was :{17,'.I15 00 Amount expended {\':s]-'6'2), ]ter reUirns 1G5, 31^ 4r. Balance 152,5ii7 11 Amount received for clotbiug issued 2:J.'>, O'jy 5:; Amount of fund June 30, 1882 387,0% 07 538 PAPERS ACCOMPANYING THE Tho amount of Mio sniall-storcs fundJuly 1,1881, was 1101,423 14 Amount expended (]88l-'82), per returns 80,845 45 Balance '20,577 69 Amonnt received for small stores issued 79, 108 23 Amount of fundJune 30,1882 99,685 1<2 Of the amount expended for provisions, there was paid for commuted rations 519,439 64 For jmrcliase of provisions from crews 59, 762 58 Total -■ 579,202 22 I Uerewitli inclose estimates marted A, B, C, D, and E, for tbe fiscal year ending June 30, 1884, together with schedules numbered from 1 to G, inclusive, and statement No. 7, pertaining to the operations of this Bureau during the year ending June 30, 1882. I have the honor to be, very respectfullv, your obedient servant, J. A. SMITH, Paymaster- General, U. S. Navy. Hon. Wm. E. Chandler, Secretary of the Navy, Washington. # ♦'>* * » » • REPOET OF THE COMMANDANT OF THE MARINE CORPS. Headquarters Marine Corp§, Coioiandant's Office, Washington, D. C, October 1, 1882. Sir: I have the honor to submit my annual report of the condition of the United States Marine Corps for the period covered since Novem- ber 1, 1881. On October 1, 1882, there were 1,861 enlisted men in the Corps, 984 of whom were on board ships in commission, and 877 doing duty at the several shore stations. During the past year there have been 690 enlistments, 132 re-enlist- ments, 404 discharges, and 12 deaths, also 500 desertions. I am of the opinion that the principal cause of desertion is the fact that there are not enough men to do the duty required anywhere, and that the constant guard duty, without cessation, becomes onerous and leads to dissatisfaction. No changes have occurred an)ong the officers on the "active list." Two officers on the "retired list" have died, viz, Lieut. Col. Ward Marston and First Lieut. Arthur L. AVatson. Of the " active list " two captains are on "sick leave" for long periods, one "under suspension," and two are employed " on special duty." One first lieutenant is " on leave of absence," and is employed by the Chinese Government. De- ducting these, and excluding the " field and staft'," leaves fifteen cap- tains, fweuty-nine first lieutenants, and fourteen second lieutenants to perform all the -seven in September, and three in October. Of this number, sixty were admitted : thirty-eight failed to pass the required examination ; lifteen were rejecteolis. It is also recommendetl that hereafter, when classes of cadets shall have completed their six years' course, they shall be ordered to report to the Academy on or about the 1st day of May of each year, for their linal gratluating examination. The object of this recommendation is that the examination of these classes may not interfere with the examinations of the four classes at th»> Academy, or dela^- the dei)arture of the practice vessels. It is further recommended tliat when the yearly nominations of can didat^es to fill vacancies sliall be made, candidates shall also be nomi- nated to fill the vacancies that will occur immediately after the tinal graduating examination of the year. Under the law of August 5, 1H82, these vacancies must occur as soon as the examination shall be conchuled, as all who are not i)romoted into the service must be discharged. It would be advisable that alternates should be nominated at the same time with the lu-ineipals, .so that there may be no delay in tilling vacancies should any of the candidates fail to pass the requirwl examinations. The law of August 5, 18.SL', requires that the vacancies whirli may have occurredin the lower graders of the line. Engineer Corps, and ^la rine 542 PAPERS ACCOMPANYING THK Corps of tho Navy, shall bo tillod by appointinents to bo niado from the gradnatos of tho year, at tho oonclu.sion of thoir six yearn' (jnurse, in the order of merit as deterinined by the academic board of the Naval Academy; the assignments to the various corjis to be made by theSec- reta.ry of the Navy upon the recommendation of the academit; board. In this connection your attention is called to the great disparity iu ])Osition and pay of the lowest grades in the three corps. Assistant engineers and second lieutenants of marines are commissioned otiicers, •while midshipmen are appointed officers. Assistant eiigineers receive at sea, $1,700 per annum; second lieutenants of marines, ."^1,400 per annum, and midshipmen, $1,000 per annum. It will hardly seem com- plimentary to the number one of a class who should evince special abil- ity as a line officer, to give him a simple appointment with a salary of $1,000 per annum, while others who pass below him are given commis- sions and salaries of $1,400 and $1,700 per annum. The duties required of the lowest grade of line officers are fully as important and arduous as those required of the lowest grade of marine and engineer oflicers, and frequently involve much more responsibility. It would seem but just that the naval cadets assigned to the line, after the completion of the six years' course, should be commissioned as en- signs. Even this would not put them on an equal footing, as regards pay, with those assigned to the Marine and Engineer Corps, the sea pay of an ensign being $1,200 per annum. I am, sir, very respectfully, vour obedient servant, r. M. EAMSAY, Captain, TJ. S. Navy, Superintendent. Hon. Wm. E. Chandler, /Secretary of the Navy, Washington, D. G. KEPORT OF THE BOAED OF VISITORS TO THE UNITED STATES NAVAL ACADEMY, 1883. United States Naval Academy, Annapolis, Md., June 10, 1882. Sir : The Board of Visitors appointed to attend the annual exaiiiina- tions at the United States Naval Academy have the honor to submit the following report of their proceedings. The Board met on Thursday, June 1, and organized as follows: OFFICERS. Commodore Samuel R. Franklin, president; Senator H. L, Dawes, of Massachusetts, vice-president. standing committees. Seamanship, gunnery, and navigation. — Senator H. L. Dawes ; Capt. P. C. Johnson, U. S. N. ; JMr. Charles Watrous. Steam, mathemtilicn, ^>/lans ane utilized as far a« practicable in the new structures, with th final result of ha\ing a very com])lete establislimcnt, and without c Uiug for large money appropriations in any one year, and with the further advantage of hav- ing these expenditures made without haste. 3d. That the bailing at the west end of the grounds be converted into quarters for ofiiiers and instructors, so as to bring inside the academy limits all ofiicials connected with the Academy. 4th. That a new me^s hall and kitchens be built contiguous to the proposed permanent quarters. The Board deem many of these improvements to be of pressing need, and all really essential to the needs of this institution. Of the grounds and the sanitary contlition of the whole institution, the Board are pleased to be able to speak in the highest terms of com- mendation. It would certainly add much totheconvenienceofarraugement as to lo- cality in the erection of new buildings if a small piece of ground could hv added by purchase at the west einl, behind the main cadet;s, quarters. Tbe Board recommend a further inquiry into this subject by the proper authority. The piece of ground referred to lies between the wall surrounding the Academy and a strip of land belonging to the government on the same side of the stream known as "Graveyard Creek."' There is a bridge over the creek leading to the cemetery of the Academy, turning to the east, and to a large general hospital to the west, but the route is cir- cuitous. If the intervening land belonged to the United States, a mnch shorter direct route to the eemetery and hospital c^^uld be oi)ened, and a ])ublic improvement secured, the advantages of which are very apparent. The hospital referred to, though standing on grounds of the Academy, belongs to tlie Navy Hospital Department. It is a large and costly brick building, with accoiumodations for 100 patients. There are out- buildings, with machinery for the manufacture ot giis, heating appa- ratus, ttc. For want of about $2,000 repau's the whole establishment .is rapiflly going to decay. There seems to be no present use for such a ho3])ital, but property of such extent and value should be preserved in good onler, against fu- ture contingencies, a« at any time it may be found useful for the public service. ENGLISH STUDIES, HISTORY AND LAW. The Board desire to express their satisfaction at the very thorough course of instruction in English studies, history and law, embracing a 35 Ab 546 PAPERS ACCOMPANYING THE three-fold objoct : (irsl, to train cadets in the art of expression ; secondly, to give them a requisite knowledge of history, both of our own and of otlier countries; and, thirdly, to instruct them in the constitution and form of government of the United States, and in the leading- j)rincii)les of maritime international law. 1st. In Englinh. — The main object is to teach cadets to exi)re88 them- selves with readiness, simidicity, aiid force. The subject is taught in three ways — by i)recept, by example, and by practice. For the lirst, a short but thorough course in rhetoric is siitticient. For the second, the students have critical and analytical readings from English classical prose writers, Burke's works being chietiy those used. A certain part of the course is also devoted to the study of Shakespeare. For jjractical instruction the cadets have exercises during the first year ^ in the composition of notes, letters, and telegrams; second year, offici«al dispatches ; third and fourth years, themes and essays upon pro- fessional and other subjects. The cadets have also monthly written examinations. All exercises in the English department are carefully examined by the instructor, who indicates the errors without making the corrections. They are then returned to the writers, by whom the corrections are made, and the papers are then handed in again and ex- amined anew. This process is continued until all the mistakes are fully corrected. * It is believed that there are few educational establishments in the country where so complete a method is employed for teaching the stu- dents to write their mother tongue, and the results attained have been very satisfactory. 2d. In history. — A general course is given in European history, and a full and thorough course in the history of the United States. There are, besides, two special courses in history. 1. Naval history, which embraces lectures upon the development and history of the navies of Europe and America, including a careful study of the events of the great naval wars and of the lives of great naval commanders, such as Nelson, Collingwood, Perry, Decatur, Mc^Donough, Hull, &c. 2. Contemporary history^ which includes the study of the events of the day, of the institutions of existing States, their constitutions, forms of government, and the actual state of their relations with each other. It is deemed absolutely necessary that cadets, immediately after grad- uation, should have some familiarity with the existing state of foreign relations, and it is to meet this want that the course in contemporary history has been introduced. 3d. In law. — Cadets in the first place make a close analytical study of the Constitution and administrative system of the United States. Secondly. The first class of cadet midshii)men has a course in inter- national law, which is confined and directed especially to those branches of the subject which are closely connected with the naval profession, such as prize law, blockade and contraband, the protection of citizens abroad, the rights and privileges of ships of war in foreign ]»orts, &c. . The peculiar feature of the course in international law at the Xaval Academy is that, in addition to the theoretical method by which the subject is usually taught, very full practical instruction is given by questions framed ui^on a hypothetical set of circumstances, sometimes fictitious, sometimes drawn from reported cases, but always circum- stances that may arise and that are likely to arise in the experience of p, naval officer. REPORT OF THE SECRETARY OF THE NAVY. 547 TJiiese questions are given to the cadet in the same form in which they would come before the oflicers for decision, and the student is called upon to decide what wouUl be his action in the ]»remises. The result of such a method of instruction is, that the knowledge acquired by the student becomes much more flexible and Itetter adapted to meet the actual wauts for which this knowledge is required. DUAWI>(>. The Board note with satisfaction the instruction of the cadets in linear i)ersp<'ctive and freehand drawing, from objects immediately connected with the duties of naval oflicers, which is of immediate im- portance, as it nuiterially assists cadets in the acquisition of knowledge in the j)rofe8sional branches — seamanship and gunnery. The course in topographical and chart drawing, to which free-hand drawing is preliminary, is of practical importance in fitting naval ofli- cers to record and rei)ort the results of reconnaissances and surveys and to the various kimls of hydrographic wDrk re(|uired by the public service. Officers are frequently called on to rei)ort on the a])jiroaches to the coasts, bearings and entrances of harbors, tSrc, and it is often re/]uired that sketches of headlands and of shores, as well as other drawings, should accompany such rei)ort8. The safety of ships may depend on the clearness and correctness of these illustrated reports, and a good knowledge of drawing is indispen- sable to insure clearness and accuracy. The Board were impressed with the excellence of the line drawings, of machinery, &C., executed by the cadet engineers. ]\Iechanical draw- ing commences with instruction in stretching paper, testing drawing- boanl, s<|nare and triangles, ami proceeds from the drawing of various symnu'trical iigures, through the conventional practices of the art, to the making of plans, elevations, and sections of machinery from orig- inal designs. This is deemed to be an indispensable apjilication of the art of drawing in this institution, esi)ecially as regards the depart- ments of gunnery and naval construction, as well as steam engineering. An exhibition was given of the practical instruction in making and working machinery, beginning with the forming of models in wood, and g6ing through the process of mending boilers, making screws, tools, and all the ]>arts of a small steam-engine, and putting them together. In all this manual work which is done by the cadet engineers they displayed very creditable skill. They also put together the part« and set in motion the large steam-engine, showing familiarity with the mode of working it. MODERN LANGUAGES. Attention is given to the study of Spanish and French, by a fnll corps of instructors. A change in text-books and other details now in prog- ress, will, it is expected, produce favorable results. SEAMANSHIP, GUNNERY, AND NAVIGATION. The knowledge evinced by the cadets in seamanship, gunnery, and navigation is very satisfactory. It is recommended that the Academy be furnished with samples of the latest designs of guns and carriages, that the cadets may become familiar with tlieir construction and manipulation and be able to use them and instruct others in their i)eculiarities. It is highly desirable, also, that the latest models of war 8hi])8 be furnished for liie instruction of the cadets in the details of ship-build- 548 PAPERS ACCOMPANYING THE It wonld be a decided advantage to the Academy if it were farnfshed with a steam war ship of moderate size, with the most improved type of machinery and ai'mament, that the cadets may become familifir with everything relating to their profession before leaving the institution. In the department of ordnance and gunnery the cadet midshipmen have been instructed in making working drawings of guns, &c., from a specification containing all the dimensions. The Board takes pleasure in noting with commendation the progress that has been made in this course during the past year. FINANCE AND LEBEARY. The Board have examined the statement furnished by the Hon. Sec- retary of the Navy of the appropriations for the Academy for some years past, including the apportionment to the various purj^oses shown therein. The administration of the financial affairs of the Academy is approved. The library is in good condition. We recoinmend that the usual amount yearly devoted to the purchase of new books be continued for that puri)ose. Every effort should be made to keep the library supplied with the latest and most approved scientific and professional works. ADMINISTRATION, DISCIPLINE, AND POLICE. The Board find the entire administration of the affairs of the Academy all that could be desired. The discipline, under the present efficient Superintendent, has been much improved by his order No. 5, of January 12, 1882, establishing "conduct grades." Under this order their privileges depend on their grade. At first the cadets disliked the order, as very few were classed in the first grade ; at this writing, the number has reached 92 out of 256 cadets, equal to 36 per cent. There is sino^ a marked improvement in the assembling of cadets at all formations ; very few are now tardy or late. In the general-conduct report there is a great change. At the semi-annual examinations in January last there were fifteen deficients in conduct; at the present June examination but three defi- cients. A marked improvement is also visible in the class rei)orts, especially in branches in which inattention was the real cause of deficiencies. As it is necessary to be proficient in all studies and exercises to be in the first grade, many have made up their deficiencies. This system works on the cadets in various ways: those in the first grade have liberty, by simply reporting to the proper officer, to leave the grounds, as an officer would when leaving a shii). This is esteemed a very high privilege, and some noted cases have passed from the third and fourth grades to the first. The reox)rds of the Academy are kept in such a manner that the past as well as the present status of each cadet, from his entrance into the Academy until his departure therefrom, can be seen at a glance; and the standing of each cadet in his studies and conduct, as well as his adapatability for the naval service, can be shown at once. SUGGESTIONS AS TO EXAMINATION AND ADMISSION OF CADETS. Previous to 1852, candidates for admission were appointed before March in each year, and examined between the 20th and 31st May. We suggest that this plan be renewed, and that those who pass be sent on the annual practice cruise until the academic studies begin in REPORT OF THE SECRETARY OF THE NAVY. 549 the fall. It is believed that this preliuiinary experience at sea would give the oppoi-tunity to test the choice of profession made by applicants, and that those who. ])erhaps,.had made a mistake in seeking a naval life would resign before the government had incurred the expense of a costly education to no purpose. Commending the Naval Academy to your most favorable considera- tion, and soliciting for it the friendly support of the Congress of the United States, . We subscribe ourselves, jour verv obedient servants, S. It. FKANKLIN, Commodore, U. S. N. IIEXRY L. DAWES, United States Senator. CIIAS. W. J0NP:S, United States Senator. JOHN R. THOMAS, House of Representatives. C. B. DAKKALL, Flouse of Kepre^sentatires. HENRY S. HARRIS, House of Bepresentatives. B. D. TOWNSENI), Brigadier-General, U. S. A. P. C. JOHNSON, Captain, U. S. N. AARON F. STEVENS, New Hampshire. WM. A. COURTENAY, South Carolina. N. M. HUBBARD, loira. CHARLES WATROUS, New York. Hon. Wm. E. Chandler, Secretary of the Navy. EEPORT OF THE ADMIRAL. Washington, D. C, Novemlei- 29, 1882. Sir : I have the honor to make the following report : My last annual report being tilled with matters which were of interest to the Navy, as regards the building of sliips, &c., leaves me little to say on this occasion. At the last session of Congress no appropriation was made for finish- ing the monitors on the Delaware and at Slare Island. These vessels, although not tirst-class, will be when iiuished at least as good as they were originally. If finished under a new contract they could, by the introduction of steel surfaces, be given gi-eater resisting i)ower. ]\Ir. Lentliall, our late ablecliief constructor, recommended that these monitors be launched and finished at a navy-yard, on such plans as would make them serviceable. In this recomniendation I concur, for we cannot atJbnl to throw these vessels away. What work has been already done to them is well done, and when comi)leted they will serve, in connection with forts, for the defense of onr harbors. I Our suuiller monitors as a rule are of not much value still in time of war they could bo made available to a(;t in connection with fortifica- tions, but they would be useless to contend with loreign vessels of greater speed and improved ordnance. I made an inspection of the North Atlantic squadron during the past summer, and Ibuiul the vessels in good order inside, and looking neat and trim alolt — in lact, good representatives of sliips of war. Cruising together the past summer has been of great advantage to the S(iuadron in many respects, and I recommend that the pr.utice be kei)t up. A cruise of the S(piadron through the West Indies iluring the winter, in ^niy opinion, would have a good elfect. 650 PAPERS ACCOMPANYING THE I recomincnd tliat every ship fitted for sea hereafter be attached to the Coast squadron for a few months. It Avould ei\able her to get in good order before proceeding on a foreign cruise, and any defects that might be discovered could be remedied at a navy-yard. I beg leave to call your attention to the ships' boats of the Navy. I had a fair o])portunity of comparing the boats of the North Atlantic squadron with those of the French vessels-of-war Minerve and Hussar, and iuust say the French boats are in every respect superior to ours. Commodore Luce brought home in the Portsmouth a French boat which he procured at Brest or Cherbourg. I beg leave to suggest that the board of inspection and survey be directed to examine and report upon this boat, comparing her with the diiierent classes of boats in our Navy, and to make such suggestions and recommendations in this con- nection as they may deem of interest to the service. No report in regard to the apprentice system has been sent through me. Commodore Luce, being engaged in other duty, has not had time to prepare a report, and therefore I have nothing on which to base special recommendations. I will, however, recommend that the general orders relating to the training system issued within the last year be carried out, and that no boys be transferred to the general service until the commanding officer of the Training squadron reports them as fit for such transfer. I would also recommend that when the training vessels go abroad, they be not allowed to transfer boys to other ships during the cruise, and thereby break up the crews of the training ships, but that the boys be all returned to the United States for inspection by the board of in- spection and survey, and such of them as may be found qualified be then transferred to the general seivice. An exception to this rule might be made where boys who have been passed might bo. sent abroad in a training vessel to be tramferred to some ship of the Navy. By pursuing a contrary course to the one I have indicated the train- ing system will not be a success. We have only a small number of boys, and it was never intended that the Navy should depend on them to fill up the vacancies among seamen. It would be as wise to send cadet midshipmen from the Naval Academy to supply the place of lieutenants on board ship. The training vessels have facilities for instructing api)rentices that ships of war do not possess, including a corps of s])ecial instructors and a system of daily instruction necessary for transforming raw boys into intelligent seamen. After a tvvo years' course of special instruction a boy, if he has any aptitude for the service, can be transferred to the Na^y proper, and should be sent to sea in vessels destined for foreign service. There are certain requirements of law which cannot be complied with in less time than two years. The most that can be expected from our limited supply of boys, is the introduction of a good set of petty officers into the Navy. This should be kept in view all the time, and I earnestly recommend that the endeav- ors of the commanding officer of the Training squadron should be en- couraged by the department. The 8,000 seamen allowed by Congress should be depended ui)on for manning the Navy, and the bojs should not be taken from their school of instruction to till vacancies. There would be plenty of men to man our small ^Navy if reductions were made in the crews of receiving ships, vessels laid up in ordinary, and fewer men employed in duty outside the Navy. BEPORT OP THE SECEETABY Or THE NAVY. 561 For the first time since it was establislied Las the Training squadron been conducted ou a general system. It struck nic as well conducted, and I only regret that the. cruise was not carried out as originally in- tended, viz, biing all the boys back to the United States, have the shii)S inspected by me on the 10th of October in conjunction with the inspection board, award the medals for good conduct and proficiency, pernjit those of the boys who deserved it to go home and see their friends, and then transfer those recommended by the commanding officer of the Training squadron to the general service. I beg leave to draw your attention to the torpedo-boat Alarm. Last fall the vessel broke her steering gear and a new and stronger appar- atus was made for her at the Washington navy yard. The Alarm was sent to Noifolk, where she could be docked and tlie necessary examina- tion and repairs made. It was found that a shaft connected with the cog-wheels was broken, and several teeth of the cog-wheels were con- siderably worn, notwithstanding which the vessel continued to run from eleven to eleven and a half knots per hour under oixlinary steam pres- sure, ]>roviug the superiority of the Mallorv propellor, which for small vessels, ironclads for harbor 8. J would therefore recomnniud that all ships returning to the United States from a cruise between the 10th of October and the lOtli of April, be directed to repair to Hampton Koads and there report to the depart- ment. The inspecting board would seldom find difficulty in giving every vessel a thorough inspection at Uamptou Koads, which would be sat- isfactory to all concerned. TORPEDO STATION. The school of torpedo i)ractico is good enough as far ns it goes, bui the system shuiild bo extended to include instruction for seamen, gun- ners, and ai)]nentico boys, for which purpose certain days in the week should be set apart. A small steam vessel should bestatione. The anunal yearly waste of Ijoys is estimated at 18 per cent. WTien we consider the ease with which boys can liud employmeut in our country as compared with Eng- land, it is not surprising that we lose so many. In the matter of hygiene I cannot say much in favor of either English or French training systems. They crowd too ii'any boys on l>oard their ships, large as they are, .ind the ships are not sufficiently ventilated. By placing 800 boys on board of one ship with hatches and ports closed during inclement weather, thegiowiig boy, requiring, ais he does,'more air and space ihan the adult, must necessarily take into hih lungs qnautiiies of vitiuted air every night. Tliis caunut fail to retard development into vigorous manhood. It is for this reason that I was so anxious to have a thorough system of ventilation apjdied to the New IIami)shire. For thfs reason, too, I asked for a special a))pro])riaTiou. I did uot re.alize till after visiting the English and French training ships how much there was still to be done to the New Hampshire. By cutting very largo scjuare air ports (more, indeed, like gun ports) on the orlop de(;k tlioy obtain nearly as much light and air on that deck as on the gun deck, and every available space in the ship is util- ized. In England especially they pay great attention to the comibrt of both boys EEPORT OF THE SECRETARY OF THE NAVY. 553 and men. Games and reading matter are liberally supplied. I confess to having been surprisL-d to find an excellent lull-sized billiard-table attached to tbe ward-room ol' the Duke of Wellington, flagship ot Admiral Ryder, commander-in-chief at Ports- mouth. You may imagine then my astonishment to tind in the recreation room of the chief petty otiicers of auother shiii, the Excellent, not only a billiard table, but bagatelle tables, chess, chfckes, backgammon, «Scc. The mess-room of this class of petty ofiBcers (on boanl the Excellent) was fitted up better than many ward-room onesses I have seen in our Navy. In tlio forward part of the lower gun-deck was a canteen, where the men oonld draw. nneriod must be sea service in command of a ship of war of sea, and by a later regulation he must have commanded an iron- clad in commission for sea service. The iiest captains only, those who are fully up to the times in gunnery, tor]'C(loes, steam, «fcc., are selected for these commands: con- sequently they are the only ones who reach tlag rank. This is the secret ot the great emnlation among oflicersof all tanks. Both at Piy- month and at Portsmouth the activity which everywhere jirevailed suggested the imminence of a great war; gunb-'ars trequently going outside for target practice at long ranges: torpedo-boats practicing with eil<», darting around like mad; clasvses of i)eitj' ollicers nnder instruction in laying out toijiedoes and counter-mines, and workitig with torpedoes generally ; target practice from the gunnery ships ; rifle practice oil sbore by squads of seamen and apprentice boys; target practic«with llirchcock, Gatling, and Nordcnfelt guns; sharp-shooter practice at tixed targets, moving tJirgets, and targets represent- ing a man running from cover to cover, the school of seamen divers — all this going on incessantly. The tuime activity prevails on hoard ship. P.oys are constantly exorcising at one thing or auother, gunnery drills going on with the heavy gnus ; lieutenants ujuler gun- nery instruction, mixed up with the bluejacket ■; as part of gun's crews and drilled by the seaman gunner-', while captains and ctininiandeis too old lo pull ami haul stood by to watch the drills and pick up points. On board the Excellent and the Vernon (the torpedo school sliijis) the stii.ly-room was fre(|uented l>y admirals (there were two of ' that rank on board the Vernon), captains, aiul commanders. One cannot fail to per- ceive that everybody is thoroiU'.hly in earnest. It is th" same at tlie naval college, Gn-eiiwich, which is open to all ranks. The reporis from the latter place are ver\ siguiticant. Tho lieutenants and sub-lienten- "ants who attend them are said to be harder and far more conscientious students than the average college man. The niotive-jmwer is greater. Those ollieers who do not go in for this kind of work drop astern in the race and soon find themselves on Ifalf ^ay. 554 PAPERS ACCOMPANYING THE Promotion to fill tho liiybcr grndo by mlcctiou is certainly opoii to objection, but it vitalizoH tho Hoivicc. I do not linow tliat it is one bit iiioid liable to abnw tlirough political inllufiiico in our country tlitin in En|;l.'iiHl. JJnt it in not ncccHH.-iiy to lutro- »! jidoptod, viz, to open a post-grailuatft conrKo for our younjjtcr odicciH and to sidect from tlio best of thene the otlicisis for the best poHitions, anil fiually for coniinaneop]e unprepared for war, and the settler at his daily work is not ])rei)ared to tH)i)e with his wily foe, who is better armed than be. Since the late outbreak, much dissatisfaction has been expressed by the jteople, and threats have been freely made that the ])eople will take means to guard against the repetition of the occurrences of last spring, anil there is danger, unless the Indian can be restrained, that the ]>eople will attempt to redress their wrongs by the destruction of the Indians; and, if this should occur, th» innocent and guilty will alike sutfei" for the crimes of a few. Justice to the Indian and settler alike demands that vigorous means should bo taken to prevent these frequent outbreaks by Indians stii»i)orted by the government, and the marauding and murdering i)arties should be severely dealt with when taken prisoners, disarmed, dismounted, and i)unished for their crimes, A comparatively small number of the San Carlos Indians have been •guilty of crime, yet thii few criminals not oidy keep the other Indians ?u a state «>f turmoil and confusion, but actually endanger their exist ence. If these evil-disposed persons cannot bo kept ou the reservations 556 REPORT OF THE SECRETARY OF THE INTERIOR. by the ordinary agency means, they should be removed to some place where their evil influences cannot retard the work of civilizing tbe more peaeeably inclined. There will be no permanent peace with these In- dians until they are disarmed and dismounted. They have no use for guns, for the game is scarce, and the government furnishes them ample to live on without resorting to the fruits of the chase. Their ponies are useless, except to ride alwut the country, and are a great hindrance to their civilization; for if they did not have the ponies they would estab- liish themselves in a permanent home. At the last session of Congress there was inserted in the appropria- tio'n bill a provision for the removal of the Mescalero Apaches to the flicarilla Agency, on the northern line of New Mexico, and the consoli- dation of the two agencies, provided the consent of the Indians could be obtained to such removal. The Indians refused to remove and were therefore left at the old agency. I do not think the removal ought to be made, although the consolidation of the two agencies I consider de- sirable, either at the Mescalero Agency or by the removal of the Jica- rillas and Mescaleros to San Carlos, and the consolidation of the first two agencies with the last. DISARMING THE INDIANS. One great hindrance to the civili2;ation of the Indian has been his passion for war and the chase. To the Indian there have been but two paths to preferment, that of war and the chase. His standing in his tribe depends on his success in one or the other of these pursuits. If lie is a successful hunter, he has a measure of fame; if a successful war- rior, he accumulates riches and gains great renown, n©t only in his own but neighboring tribes. All honors that an Indian can receive at the hands of his tribe are his. He refuses to work, without being indolent; for the patience, perseverance, courage, and energ-y displayed in war and the chase disprove the assertion, so often made, that the Indian is too lazy to work. The frontier farmer who subdues the forests, tills the soil, and makes the "wilderness blossom like the rose," makes no greater physical ex- ertion than his warlike Indian neighbor. In all our dealings with the Indian we have fostered Jiis passion for war and the chase. We have allowed him to procure arms and ammunition, and in many instances have assisted him so to do. The highest ambition ofau Indian is to own a gnn, the next to have an opportunity to use it. He will part with any- thing he has to acquire it, and, when obtained, it will be the last thing he will dispose of. With its possession comes the temptation to use it. Well armed, he is a warrior waiting for an opportunity to acquire feme and renown in his tribe. On the slightest provocation he slays his ad- versary. He kills the traditionary enemies of his tribe, whether white man or Indian, without provocation, either for gain, to gi'atify his pas- sion for blood, or to secure the fame that awaits a successful warrior. REPOliT OF THE SECRETARY OF THE rXTERIOR. 557 He is not restrained by law, human oi divine, and has not the moral capacity to understand that it is a criiiio to kill the nnoflendiug and de- fenseless. If a white man wrongs him, he wreaks his vengeance, not on the wrongdoer alone, but on any white person who falls within his jiower. He will wait months and years, and when the ojiportunity is presented, ho will wreak his vengeance on the innocent and unoffending. In all this he has no upbraidiugsor compunctions of conscience, for his conduct is consonant with Indian law and Indian morals. We wonder at his ferocity, forgetting that he is a savage. Armed and e^iuipped, he is proud, arrogant, and dangerous; unarmed, he is humble, timid, and harmless. Nearly all the Indians \vith whom we have haensation, excei>t as a punishment for crimes. I have no doid>t that most of the Indians can be disarmed by agreeing to pay them for tiieir guns. They should have their title to the land secured to them and reasonable provision made for them, so that they need not fear that they will be lemoved or compelled to resort to the chase for a living, and they should surrender their guns an- tim]jci\ the mining- of coal, as well as the precious metals, is waste. The Indians ought to be allowed to do whatever a good business man would if the reservation was his iinder like circum- stances. If the Indians will mine coal, cut timber and manufacture it into lumber, they ought to be allowed to do so. AVhenever and wher- ever an Indian shows a disposition to work he ought to be encouraged- The Secretary- of the Interior should have authority to grant to the In- dians permits tx) cut timber and mine coal, and to dispose of the same. STOCK-RAISING. At least one-half of the Indian reservations are better adapted to stock-raising than agriculture, and it is less difficult to induce an Indian to engage in herding than in agricultural j)ur>uitH. If ten years ago suitable provision had been made for furnishing herds at such agencies as are especially adapted to stock-raising, the Indians at such agencies would now lie largely independent of government aid. At most agen- cies the Indians will, under tlie direction of the agent, take care of tho stock. In a few instances it may be necessary to provide a white fore- man to teach the Indians how to take care of the herd. In some cases the herd should bo the common property of the tribe; in others the stock should be parceled out to the Indians who are willing and able to take care of the same. When herds are provided for the tribe it should be with the ultimate purpose of distributing the same among the Indians as soon as they furnish proof of their willingness and ability- to take care of the stock. The possession of herds and flocks will not only benefit the Indians by providing subsistence, but will compel them to abandon their nomadic habits. In 18(50 tho Navajo Indians of New Mexico had about 1,000 sheep and goats. In November of that year the government furnished them with 14,000 sheep and 1,000 goats, at a cost of $30,000. The repoit of their agent shows that this number has increased to 000,000 sliecp and i'00,000 goats. In 1881 the agent reported tho wool-clip at 1,000,000 iwunds, and that 200,000 pounds had been manufactured into blankets. These In- dians, numbering 1(J,000, by means of this small outlay, in thirteen years have become self-supporting, the total a[>propriation for their subsistence for the fiscal year 1883 being only $.j,000. Frojn 1870 to 1882, inclusive, the total af)i»roi)riation for their support was $1,270,44,"), or an annual appropriation of over 808,000. During the years 1870, 1871, and 1872 the a]iproi)riations fortheirsnbsistence amounted to a total of $.')82,37o. During the years 1881, 1882, and 1883 the appropriations for like i)ur- poses amoujitcd to a total of >!.")8.(MI0 ; and lioreafter there will be no necessity for an ajipropriation lt)r their subsisteni^e. No better illustra- tion can be had of the wisdom of that policy which looks toward aiding the Indian to support himself instead of supporting him at governnu'nt expense. The Commissioner reports that there is due these Indians under th© 36 Ab 562 REPORT OF THE SECRETARY OF THE INTERIOR. ^ seventh article of 'the treaty of June, 1868, the sum of $156,651.74. To carry out iho ]ir(»visioiis of Article 7 of this treaty Cong:ress appropriated $200,000; of tliis Rum )^53,348.'J6 was expended, and the bidance, $156,651.74, was carried to the credit of the suri^lus fund. The Attor- ney-Genera] has decided that appropriations of this character are ex- empt from the operation of tlie suri^lus-fuud act. Tliis appears to be a just claim against the government, and I concur with the Commissioner in recommending that this amount be re-appropriated, and that it be expended according to the provisions of Article 7 of said treaty. It will prove a great stimulus to these Indians who are making such praise- worthy eflbrts at self-support. THE NOKTIIERN CHEYENNES. In 1877 the jS'orthern Cheycnnes were removed to the Indian Terri- tory. Much dissatisfaction existed at the time of the removal, and it has continued ever since. These Indians have always felt that in their removal they have been greatly wronged, and in 1878 a band of them attempted to return to their old home. After leaving the Indian Terri- tory they committed many outrages on the people of Kansas, and were in the end nearly exterminated by the U. S. troops. Those remaining have ever since demanded to be removed to their former home or its vicinity. Secretary Schurz, under whose order the removal \yas made, declared in his Annual Eeport of 1880 that he regretted such removal. In October, 1881, Little Chief and his band, 235 in all, left the Chey- enne and Arapahoe Agency and proceeded to Pine Kidge, Dakota; others to the number of 82 joined them, and they are all at the Pine Eidge Agency. There are now remaining in the Indian Temtory 684 of the Northern Cheyennes, who are not only anxious but determined to join their kindred in Dakota. They declare that they will go with- out the consent of the Interior Department, if such consent is much longer withheld. I do not believe these Indians will be satisfied in their present ht)me, and I believe it will be for the interest of the In- dians and the government alike to return them to their former home in the Territory of Dakota. The Sioux at Pine Ridge Agency have ex- j)ressed a willingness to receive the Northern Cheyennes and allow them to live at that agency. This I understand will be agreeable to the Cheyennes, and I therefore recommend that such removal be authorized, and a suitable appropriation be provided for this removal and their sup- port at such new location. JOSEPH'S BAND OF NEZ PERCES. The number of this band now in the Indian Territory is 90 men, 146 women, 54 boys, and 33 girls, making a total of 323. Of those wlio surrendered at Bear Pan Mountain, IMontana, in October, 1877, 431 were transferred to Fort Leavenworth at one time, and a few others, subsequently caj)tured, were also taken to that post. In July, 1878, REPORT OP THE SECRETARY OF THE INTERIOR. 563 410 were turned over to the Interior Department and taken to the In- dian Territory. Notwithstanding the births since that time, the total number has decreased to that given above. Believing that the war, which exiled these people from Idaho, was the result of a failure of the government to keep its pbghted faith, as a member of the United States Senate I opposed their removal against their will to the Indian Territory'. I considered such removal a viola- tion of the terms on which they had surrendered. They had been forced into war, and contending with an army far outnumbering them, had made a- fight almost without a parallel in the annals of history, extend- ing over a district of more than 1,300 miles, and then, though en- trenched in the rocks where they could not have been dislodged without great loss of life to the Army, as well as themselves, surrendered, as Joseph says, because he did not want any more lives sacrificed. General Miles, the officer to whom the surrender was made, says, in a communication addressed to the President in February, 1881, that he informed them tliat it was the design of the government to place them upon what is known as the small Nez Perces reservation in Idaho, and he believes a due regard for his word, the good faith of the govern- ment, and every other consideration require that his promise given the Nez Perces at that time be made good. He further speaks of the hard- ships suffered by the Xez Perces in consequence of their removal to the Indian Territory, and recommends that they be returned to Idaho. I concur in these recommendations, and recommend that provisions be made to carry them out. The Xez Perces have changed very much in manner of living and style of dress since going to the Indian Territory. Nearly or quite all of them have adopted citizens' clothing. They liaveau organized church — Presbyterian — of over one hundred and fifty members ; have been in- dustrious, and ready to respond to any requirements of the department. Their advancement in civilization has been such that it is not believed any trouble would follow their return to Idaho. Their faith in the ulti- )nate fulfilling of the promise made them of being returned to that country has been a strong incentive to tliem in the advancement they have made. Some assistance by the government would be necessary in lie!i)ingtheni to make ;i commencement after reaching there, when they would be self-supporting, as those of the tribe now there are. CIVILIZATION FUND. From July, 1877, to -July, ISSI, tlierc was i)laced to the credit of this lund the sum of fJ'TlOjCKK), derived from the sale of certain Indian lands in Kansas. Of this sum ><."iOO,()()() was I'xpcndcd in tho «'stal>lishuient and siippoj-t of schools, and the remainder in the purchase of wagons, farming tools, stock, «S:c., with the exception of about $4,800 now on hand. It will be seen that this sum has been treated as a contingent fund, 564 REPORT OF THE SECRETARY OF THE INTERIOR. and was drawn on in all cases where, in the judgment of the Secretary of the Inteiior, the money could be profitably used in the work of civil- izing the Indians. It will be notic«'d that the annual expenditure from that fund was something over $175,000. It cannot be doubted that the use of such fund has greatly advanced the cause of Indian (;ivilization, and it is doubtful whether any appropriation of equal amount for specific purposes has been as beneficial as that fund. In making estimates as to the cost of greater efficiency in the school service It must be borne in mind that not less than 8125,000 per annum was used from that fund in the support of schools. It is very difficult to estimate each year for the wants and needs of the Indian ser^ice. A liberal contingent fund should therefore be provided, to be used, in the discretion of the Secretary, whenever, through inattention, neglect, or ignorance of the necessities of the case, i)roper provision has not been made. PERMANENT FUND FOR SCHOOLS. The sums to be appropriated for Indian education ought to fixed, and not dependent on the action of Congress at each session, and I there- fore recommend that certain incomes be set apart by law to be used as such fund. The net receipts of the sales of public lands during the last four years have amounted to $14,350,877.77, or a yearly average of $3,589,219.44. During the last year such sales amounted to $7,189,859.89. It cannot be supposed, however, that the sales will be as large during the next four years, and they will doubtless grow less each year for many years to come. The moneys arising from such sale would at least furnish a fund as the basis of such school fund, and I therefore recommend that the moneys received from the sale of public lands and the fees in excess of the expenses of such sale be set apart as a perma- nent fund for the education of Indian children, and to this there should be added a sum sufficient to educate the number of children that it is thought advisable to put in the manual-labor schools. The act making appropriation for the current and contingent ex- penses of the Indian Department, approved May 17, 1882, requires the inspector of Indian schools to — report a pliiu for carrying into effect, in tlie most economical and efficient manner, all existing treaty stipulations for tlie education of Indians, with careful estimates of the cost thereof; also a plan and estimates for educating all Indian youths for -whom no such provision now exists, and estimates of what sun)s can be saved from existing expenditures for Indian support by the adoption of such plan. I herewith submit his report. The Secretary of the Interior was authorized by said act — to cause to be constructed at a point in the Indian Territory, adjacent to the southern boundary of the State of Kansas, and near to the Ponca and Pawnee Reservations, and upon a section of land suitable in quality andlocation for the industrial purposesof said school, which section of laud is hereby reserved for said purpose, a building suitable in size and convenience for the instruction and care of one hundred and fifty Indian children, and shall cause to be instructed therein, in the English language and in in- REPORT OF THE SECRETARY OP THE INTElflOR. 565 dustrial pursuits, tbe children of such oi' tho Indian tribes located in the Indian Ter- ritory as are least provided for under existing treaties and laws. The location of such school lias been made alter careful examination of the country by the inspector of Indian schools. He recommends that there be added another section of land, and in this recommenda- tion I concur. The Secretary was also — authorized to cause to he constructed, at some suitable point on tlie Sioux Reserva- tion, in Dakota Territory, and upon a section of land suitable in quality anU location for tho industrial purposes of said school, which section of land is hereby reserved for said purpose, a biiilding suitable in size and convenience for tho instruction and care of one hundred and tifty Indian children, and shall cause to be iustructetl therein, in the English language and in industrial pursuits, the children of the Indian tribes located on said reservation, unless he should think best to establish such school at the late Pawnee Agency, in the State of Nebraska. After a careful considei'ation of the advantages of a school in Nebraska the school was located at the Pawnee Agency. The old school building at this point will be useful when repaired. At this point the govern- ment owns but 160 acres of land, on which the old building stands. An appropriation was made for 160 acres more. The inspector of Indian schools recommends the purchase of 160 acres additional, making 480 acres in all. In this I concur. These two schools will accommodate about 300 children, and should be enlarged to accommodate in each school not less than three hundred. It is economy to put from three hundred to four hundred children in one school. INDIAJN EDUCATION. The subject of Indian education has been one of interest to the peo- ple ever since the early settlement of the country. The early settlers devoted much time and money to the education of Indian youths. They collected large sums of money and established schools exclusively for their benefit. There appears to have been no ditliculty in obtaining pu- ]>ils, and a number of Indians are reported as having graduated with honorable distinction from some of the better class of such schools. This eflbrt seems to have been confined ])rincii)al]y to Ihe education of tlie young men with the purpose of making teachers of them, with the expectation that they would ultimately organize schools in the wilder- ness for the education of the mass of the Indian children who could not bo brought under the intluenco of white teachers. It was supposed by tho friends of the cause of Indian education that the knowledge of letters ought to ])recede all other knowledge of civil- ized affairs, and so but little elVort was made to do more than instinct them in the knowledge of books and ac«iuaiut them with theological doctrines that even their well-informed white neighbors did not under- stand, and concerning wliich tliey did not attempt to agree. Little or no effort was made to educate tiiem as laborers. Tlie Indian children were not behind their white associates in committing to mem- 566 REPORT OF THE SECRETARY OF THE INTERIOR. ory the contents of their books, and all accounts agree that they made commendable progress in their literary ])ursuits. The same success did not, however, attend the efiorts made with reference to their religious education. This effort to civilize them through a literary and religious education, as might have been supposed, iiroved a failure. Tliis system of Indian education, after a trial of nearly two hundred and fifty years, has produced but scanty results. No intelligent efibrt appears to have been made to educate the masses of the Indian children, for tlie attempt made 1)5' the government through a few worthless agency day schools cannot be designated as an "intelligent eftbrt," and appears to have been of little or no benefit to the Indian race. Excei)tion, of course, must be made to the in^aiseworthy efforts of the civilized Indians of the Indian Territory to educate their children at their own expense. Within the last ten years much interest has been awakened among the people with reference to the cause of Indian education, and the na- tional legislation on that subject has been in answer to the demand made by the people. It is not necessary to discuss the question whether the Indian is capa- ble of receiving an education, and if capable, is willing. That he is capable has been fully demonstrated. That he is willing has been proved by the ease with which the few Indian schools properly con- ducted are supplied with pujjils. The number of Indian children in school is limited to the provisions made for their support. jMany more might be added if the appropriation was sufficiently liberal for their support. The Indians being capable of and willing to receive an edu- cation, it cannot be doubted that it is the duty of the government to provide the means. If, however, any one is disposed to deny the obli- gation of the government in that behalf, none will deny that it is wis- dom on the part of the government to supply the means of education to all such as are willing and capable of receiving it; for, if their educa- tion proceeds in the right direction, the government will relieve itself of the support of persons who contribute nothing to the common stock, and in their jdace create men who will by their labor add to the wealth of the country. If, then, it is either the duty of the government or dictated by sound principles of political economy to educate the Indian cJiildren, it only remains to be seen whether that end can be accoinplislicd with an out- lay of money the expenditure of which will be within the true princi- ple of governmental economy. If we consider the object and purpose of the education of the Indian t« be to relieve the government ultimately of his support ami de])end- ency, div^esting the question of all sentiment, looking at it only as a question of political economy, we need only inquire what does it cost to support him in his ignorance, and whether he will be able to supi)ort himself with an education. It is believed that from four to five years' EEPOET OF THE SECRETARY OF THE INTERIOR. 567 scbooliiig, with proper manual-labor training, will make them indepi^nd- ent of government aid. The whole number of Imliau children (exclusive of the iNewyork In- dians and the five civilized tribes) between the ages of seven and six- teen years is sui)posed to be about .{8,01)0; of tliis number the report of the C'/ommissioner of Indian Affairs shows tliiit 8,.j08 are attending scliool, of which about 4,078 are attending boarding school antl the balance day schools. But it must be borne in mind that the day schools are kept open only a short time, and the irregular manner in which the be girls, who should be taught to si)in and weave, maV* their own clotii- ing, take care of the house, and become suitable ct>mi)anions of the educated males. The school p«>riod should not be less than four years, and in exceptional cases even longer than thai. Manual labor schools should be established in different sectit)ns of the country, nut distant from the Indians, yet far enough away to b«^ beyond the infiuence of those oi)posed to education, and that the children may see as little as I)OSsibleof savage life. It is notsupi)osed that one-half of the Indian children can be taken at once from their parents and put into schools, even if the govern- ment was i>repared solo do; but it is b<'iieved that by the time the government can secure the facilities for the el that nninber of children there will be no difiiculty in obtaining them. . A large number can be provided for in the several manual lalxir schools of the different States, The <;iJi>:i(ity of the labor s('hoi»ls already established can be increased so as to accommodate a large num- 568 UEPOKT OF THE SECRETARY OF TJIE INTERIOR. ber. A number of IJDited States military posts, no longer needed for military [)uri)ost'.s, ciin be used for tlie purpose of Indian schools, the government thereby saving the cost of erection of buildings, &c. With liberal ai)propriations it is quite possible to provide for the educa- tion often thousund Indian youths in manual labor schools during the fiscal ye^ir 1884, and at least twice that number during the liscal year 1885. The care, support, and education of 10,000 Indian youths during the tiscal year 1884 ought not to exceed $2,500,000, and with the increased number of children there ought to be a reduction in the cost, and the expense of 20,000 children ought not to exceed $4,000,000 per annum. To the 20,000, costing annually .$4,000,000, ought each year to be added not less than one-fourth that number, which, at the same expense per capita, will necessitate an additional appropriation of $1,000,000, and the account will stand thus : 10,000 children, fiscal year 1884, coniputiDg the cost at $250 each $2,500,000 20,000 children, fiscal year 1885, at $200 each 4,000,000 25,000 children, fiscal year 1886, at $200 each 5,000,000 30,000 children, fiscal year 1887, at §200 each 0,000,000 25,000 children, fiscal year 1888, at $200 each 5, 000, 000 The per capita allowance is gieater than the cost at the agency boarding school8,.but these schools are not kept up more than nine or ten months, while this estimate is for attendance for the full calendar year. At the close of the fiscal year 1887 10,000 children, having completed their school course, can be discharged, leaving with the 5,000 to be added for the fiscal year 1888, 25,000. Ten thousand of these may be discharged at the end of the fiscal year 1888, leaving, with the addition of 5,000, 20,000 for the fiscal year 1889; and every year thereafter one- fourth of the whole luiniber may be discharged and the like number added. Thus, at the end of the fiscal year 1888, there will have been discharged 20,000 children, who will be able to care for and support themselves; and the total expense of the education of this number with those remaining in school will not exceed $22,500,000, or about two- thirds of the amount of money expended for the suppression of Indian hostihties during the years 18G4 and 1865. Since 1872, a period of only ten years, the cost of Indian hostilities and military protection against the Indian is estimated by the military authorities at $223,891,2()4.50, or an annual expense of $22,389,126.45. To thi^ must be added the yearly appropriation for subsistence, which averages about five millions a year. To this must also be addetl the loss of life and the horrors of an Indian war, only to be understood by those who have had the misfortune to be partici])ants in or witnesses of them. This cannot be computed in dollars, but ought to be considered in determining the policy of the government in its dealing with the Indians. It is useless to attempt the civilization of the Indian through the REPOET OF THE SECRETARY OP THE INTERIOR. 569 agency of schools, unless a large number of children, certainly not less than one-half the total number, can have the benefit of such schools, and even then it is not wise to depend wholly on that agency. The children on returning to their homes should have some encouragement and support. Farmers and herders should be sent to the reservation to instruct the adults in agriculture and stock-raising. The government should furnish stock cattle to herders, and farm stock and implements to the farmer, not in such number and quantities that the Indian will feel that he Ls dependent on the government, but as aids to his own efforts. On some reservations stock-raising ought to be the principal industry, while on others, less suitable for that purpose, the Indian should be taught to turn his attention towards agricultural pursuits. Care should be taken to impress the Indian with the'necessity of supporting himself, and he should be assured that the government will not aid him unless he shows a disposition to aid himself; and the gratuities of the government ought to be given only to those who show a proper disposition to take care of themselves. With 20,000 or more Indian children properly selected in our schools, there will be no danger of Indian wars. Some care should be had in the selection of the children, to include the children of those individuals and tribes most likely to make trouble. It is not desirable to abandon the agency schools, but an effort should be made to render them more effective than they have been. With proper attention they may be useful for the education of such of the children as cannot be sent away, especially those too young to put in the manual labor schools. The Mission Indians of California, the Moquis, and Pueblos, and a few other tribes, who are accustomed to labor, need nothing more than good agency schools and titles to their lauds to supiwrt themselves without further tax on the government. It is believed that with an annual expenditure of between five and six millions of dollars during the next fifteen years for educational pui- poses, of the character herein indicated, the danger of Indian outbreaks may be avoided, an:i:J. i:'. Timber and stone lauds. 9.0,237.02 Pre-emption entries l,r^)l,;jHO. 85 Desert lands 104,955.94 Final desert lands (o9,:i2:J. 11) Mineral lands 30,708. G:{ Coal lands H,C:i4.33 Excess payments on homestead and other entries. . 19, 316.77 Abandoned military reservations * 2,808. 12 Commuted homesteads (37G, (J5G. 10) Act June 15, 18a0 1 (700,727.80) Total cash sales 3,611,530.94 Homestead entries (original) 6,348,045.05 Final homesteads (2,219,427.10) Timber-culture entries (original) 2, 5GG, G86. 09 Timber-culture (tinal) (23,371.12) Locations with military bounty land warrants 43,86,5.69 Agricultural college scrip locations 1,040.00 Private land scrip locations 10, .577. 12 Valentine scrip locations (original) 853. 47 Sioux half-breed scrip locations 840.00 Chippewa half-breed scrip locations 240. 00 Locations with Porterfield scrip 390.79 Lands selected under railroad grants 472,263.88 State, school, and internal-improvement selections 276, 111.74 Donation claims 18,303. 14 Swamp-laud selections 648,032. 36 Total 13,998,780,27 The areas of homestead entries commuted with cash, and of lands originallj'- entered under the homestead law but subsequently pur- chased under the act of June 15, 1880, and the areas of final homestead, final timber-culture entries, and final desert-land entries are not em- braced in the foregoing total, such areas having been previously reported with original entries of the respective classes. SALES OF IXDIAX LANDS: Acres. Cherokee strip 2i»,508.02 Cherokee school 293.65 Kansas trust ."-. 210.72 Kansas trust and diminished reserve 11,760.30 Osage trust and diuiiuished reserve - 61,817.16 Osage ceded 3,260.63 Otoe and ilissouria 7,343. .57 Choctaw orphan 160.96 REPORT OF THE SECRETARY OP THE INTERIOR. 571 Pawnee 112,982.60 Sac and Fox cl*. iK) Sionx G2,7(j:J.32 Sliawnee absentee 200. 00 'J'otal :!i(),:<8C. r.i Which added to the dis])()sals of public Iniuls make ii graml total of 1 4,30(^,1 GC.40. CASH KKCKII'IS: From sales of i.ublie I.iikIs $n,r.28,77r> 9-3 From sales of Indian lands (U!1,G17 22 From liomesteiid fees and commissions tJl*7,yGti r)9 From timlier-cnltnre fees and eoni missions 2^2, ^M 00 From fees on military bounty land warrant locations 1, KVj 00 From fees on locatiims with ditferent classes of scrip IIG 00 From fees on pre-emption and other liliiij^s 12^. 12:} 00 From fees for rednciii'; testimony to writing .... oG, tftt? OG From fees on railroad nelections-. 4,G95 50 Ffom fees on State selections 2, 43G 00 From fees on donation claims 59:') 00 From fees for issuing patent cei-titieates ;{ 00 From fees for transcripts from records fursiishcd by the General L:uid Office G,r)d8 ::> Total e,394,51G 04 The Comiuissioner reports that the amount of work done in the pre- emption division during- the last year is 33 per cent, in excess of the previous year; tliat 11,554 cases were received during the year, and 8,079 disposed of, leaving an excess of 3,475 cases to be added to the total work in arrears. It will thus be seen that in this division only about 70 ])er cent, of the current business has been disposed of, showing conclusively that the force of this division ought to be increased 30 per cent, in order to keep up with the current business of the division. The work of the division is now two years in arrears, and is so rapidly in- creasing that there can be no hope of disposing of current business with the present force, much less of disj)osing of the business now in arreai's. The mineral division is reported by the Commissioner to be about one year in arrears. It is a great hardship for the i)Cople wlio hn\'e jiaid for their farms and mines to wait one or two years for the government to certify that fact in such a way as to aiford them a perfect title. With a sufficient force it is quite ))()ssible to issue ])atents to all entries within three or four months. The clerical Unv.e in both the i)re-euiption and mineral divisions ought to be largely iuiU'eased. The CommissiotuM- recommends the repeal of the ])re-em[)tion acts, and says : A repeal of the pn-i iii|ii ion law would simplify the ]>nldic business, and bo in the interest of public economy and good adndnlslration. Such i"ei)eal would, moreover, remove one of the causes of fiuuds iu !aner of examiners would bo re- quired, greater certainty in examination would be secured. Tin* advan- tage, furthermore, to inventors and to purchasers of patents would be so obvious that it need not be more than referred to here. The large and steady increase in the business of the Patent Office forces the Commissioner to ask tliat 8tei)s be taken to increase the accommodations. At ])resent the force, is so cramped for room that business is seriously retarded. The Commissioner suggests that legislation is necessary to enable him more readily and certainly to carry out the provisions of sections 4886 and 1SS7 of the Revised Statutes, relating to the use or sale of inventions ])rior to the ai)plicati(>n for jiatent. and the limitatioh of American ])atents by the terms of patents issued to foreign countries. Some provision should bo made whereby, at the request of the Com- 574 • REPORT OF THE SECRETARY OF THE INTERIOR. missioner, or of a party in interest, a siibpama conUl l>e issued hr in contested cases (section 400G, Revised Statutes), to compel the attend- ance of witnesses to testify as to the use or sale of an invention for which an a]iplication for a patent is pending. The number of years for which patents are granted abroad varie^in various countries, and in nearly all are affected by conditions, the ful- fillment or nonfulfillment of which cannot possibly be known to this office; notwithstanding which fact inventions patented abroad are only patentable here for terms concurrent with the valid duration of the for- eign patents. Much confusion naturally arises out of this condition of things ; but its most serious effect is felt by innocent purchasers of pat- ents which have lapsed or may lapse with the termination of a foreign right of which they have no knowledge. The Commissioner in this view suggests that legislation be had to fix a definite term for patents upon articles or devices that have first been patented in foreign coun- tries ; and considering the fact that the terms for which patents may be granted in foreign countries are shorter than those for which they may be originally granted in this country, he suggests that twelve years w^ould be a proper term for patents where the invention has first been patented, or a patent applied for, in a foreign country. The diffi- culty now experienced in office practice would thus be removed, and a necessary certainty obtained.* Application was recently made for the registration of a label, which was rejected by the examiner because it was not a label, but a trade- mark. Thereupon a mandamus was sued out against the Commissioner to compel him to register what the applicant claimed to be a label. The supreme court of the District of Columbia held that the Commis- sioner of Patents has no discretion in the registration of labels. If aur applicant comes with a trade-mark, calls it a label, and asks for its reg- istration, and pays the fee required by law for the registration of a label, it is the duty of the Commissioner to cause it to be registered. The fee prescribed by law for registering labels is $6; for trade-marks $25. The difference in the revenue of the office will be considerable if par- ties are permitted to register as labels what in fact are trade-marks. If the decision of the court is to be followed, legislation should be had which will remove every doubt in relation to such registration. OFFICE OF COMMISSIONER OF RAILROADS. The report of the Commissioner of Railroads, herewith presented, gives the operations of that office during the fiscal year ending June 30, 1882. Extensive trips for theiuspectionof the property and accounts of the subsidized roads have been made by officers of that bureau, and the Commissioner expresses gratification in observing a decided improve- ment in the construction and operation of the roads and a manifest healthy growth of business. REPORT OF THE SECRETARY OF THE INTERIOR. 575 Proper facilities for intelligent and comprehensive examination of the various properties of the several roads were freely granted. The books and accounts of the comi)anies have been checked and examined and stetements of the five and twenty-five per centum of ascertained " net earnings " have been made. Statements are submitted showing in detail the indebtedness of the several companies to the United States, and their general financial con- dition. With the exception of a few of tlie minor roads, Ik; regards the United States as secure in the ultimate payment of both principal and interest of the loans advanced. CENTRAL PACIFIC RAILROAD COIMPANY. The property and accounts of this company have been carefully and fully examined. Every facility was accorded to render such examina- tion thorough and complete. There has been a marked increase in business and a decided improve- ment in the general line of the road. The equipment in engines, cars, and other facilities has been greatly increased. The most noticeable improvement is at the Oakland terminus, where a commodious i)assenger depot has been constructed at the extreme end of the Oakland Pier in the Bay of San Francisco. The pier is of rock and earth-work, extending into the bay more than one and a quarter miles, upon which are four parallel tracks. The building has a total length of 1,050 feet, covering an area of more than four acres, and has ten tracks running through tis entire length. At the present time there are one hundred and twenty-eight passenger trains running in and out daily. The building has all modern improvements, and is so constructed as to receive passengers from the ferry-boats from both the lower and upper decks at the same time, and is jwlmirably adapted lor liandling expeurchased. It is expected that within the present year the entire road will be relaid with steel. The company has at all times prom[»tly complied with all tlie demands of this office, both in rendering tlie regnlar returns and in the i)ayment of whatever balance, under the act of ]\Iay 7, 187S, has been ascertained to be due from them. The following statement is made from the reports furnished by the company as to its conlan, and is furnished with all the modern improvements for receiving, storing, ari,d. delivering grain. The following is a statement of the condition of the road on June 30, 1882. ■ Number of miles subsidized with bonds and lands, 1,432.62; addi- tional number of miles subsidized witli lands only, 351; leased to Cen- EEPORT OF THE SECRETARY OP THE INTERIOR. 577 tral Pacific, 5 miles; owned and operated during the year, 1,818.88; miles. Stock issued, $00,808,500 ; par value, $100; subsidy bonds out- standing, $33,.539,.jI2 ; funded debt, $82,555,053.75; floating debt, $10,754,891.87; interest accrued on subsidy bonds, $29,074,812.78; in- terest on funded debt, $2,049,000.74; dividends unpaid, $1,123,371.14; total debt, $159,097,242.28; capital stock aud debt, $219,965,742.28. Cost of road and equipment, $157,092,858.46; cash, material, and sink- ing-funds, $6,301,033.93; land contracts, land, cash, &c., $6,448,827.92; bonds and stocks owned, $38,616,287.66; miscellaneous investments, $151,621.76; interest repaid United States by transportation services, $6,871,519.56; bills and a.31; miscellaneous, $536,646.29; total, $16,736,060.90. Oi)erating expenses and rentals, $10,252,054.45 ; ordinary net earnings, $6,484,906.45. dum- ber of locomotives, 527; number of iiassenger cars, 236; number of baggage, mail, and express, ]:io; luimber of freight and other cars, 16,736. SOUTHERN PACIFIC IIAILIIOAI) COMPANY. For the calendar year ending December 31, 1881, this company reports as follows : Kumber of miles owned, 714.61; number of miles leased to the Central 580 REr(^RT OF tht: secketauy of the interior. Pacific, r)53.72 ; iiveragc iimribcr of miles ()j)er;it(i(l (Uii-iiig; the year, 100.81). Stock issued, ^o6,1G:\W0 : par value, si 00; funded debt, $28,48:),000; floating debt, i$l,92G,3«7.45-, total debt, $30,409,307.45; «'apital stock and debt, $07,1.73,207.45. Cost of road and fixtures, $02,450,108.99; equipment, $1,848,503.04; real estate, $042,970.74; total c«st of road and equipment, $04,947,583.37. Cash and materials, $505,412.52; bonds and stocks, $425,000; miscellaneous investments, $1,798,734.19; total, $2,729,140.71. Earnings : passenger, $475,443.00; freight, $028,858.30; United States mail, $12,400.50; miscellaneous, $1,091,912.80; total, $2,808,014.78. Operating expenses, $907,070.42 ordinary net earnings, $1,841,544.30. Interest paid, $1,723,050. ATCHISON, TOPEKA AND SANTA EE RAILROAD COMPANY. This company reports operations for the year ending December 31, 1881, as follows: Miles owned, 470.58; miles leased, 1310.09 ; stock issued, $47,133,900; increased during year, $22,242,900 ; par value, $100 ; funded debt, $20,- 510,000: floating debt, $7,202,874.40; total debt, $27,712,874.40; stock and debt, $74,875,574.40. Cost of road and equipment, $25,404,020.37; investments in other companies, $30,910,550 ; materials and cash on hand, $3,021,943.53; other stocks and bonds, $3,577,703.25; miscella- neous, $5,030,308.11. Passenger earnings, $2,971,144.08; freight earn- ings, $9,087,045.95; miscellaneous, $502,277.54; total, $12,020,408.17. Operating expenses, including taxes, rentals, &c., $8,110,040.99 ; net earnings, $4,509,821.18. Interest paid, $1,041,403.33: dividends paid, $1,841,020.50. Distribution of capital stock, $15,720,900 ; miscellaneous expenditures, $107,897.09. The company owns and leases 251 locomotives, 134 passenger cars, 00 baggage, mail, and express cars, and 8,796 freight cars. JVIEMPHIS AND LITTLE ROCK RAILROAD COZtfPANY. For the year ending June 30, 1882, this company reports as follows : Xumber of miles of road, 133; stock, issued, $1,500,000: i>ar value, $100; funded debt, $2,850,000; floating debt, $S2,.315.19; interest due and accrued on funded debt, $121,310 ; total debt, $3,053,025.19 ; capital stock and debt, $4,553,625.19. Cost of road and equipment, $4,921,- 210.01; cash and materials, $58,920.42; miscellaneous investments; $40,554.18 ; total, $5,020,090.61. The earnings for the year are reported as follows : Passenger, $323,182.35 ; freight, $280,819..54 ; United States mail, $12,280.11 ; mi^scellaneous, $24,310.48 ; total, $040,593.98. Oj^erat ■ ing expenses and rentals, $478,492.29; ordinary net earnings. $172,- 101.09. Interest paid, 4 to 8 per cent. OREGON AND CALIFORNIA RAILROAD COJn'ANY. The reports of this company show the length of road operated, De- cember 31, 1881, as 331.233 miles; number of locomotives, 20; number REPORT OF THE SECRETARY Ol-' THE INTERIOR. 581 of piisseii^er cars, 13 ; number of baggage, mail, and express cars, 10 ; number of freigbt and other ears, 483. Par value of shares, $100 ; stock issued, 810,000,000: funded debt, $0,051,750; floatingdebt, $1,754,433.14; total debt, 87,800,183.14 ; total stock and debt, $20,800,183.14. Cost of road and fixtures, $13,020,912.01. Passenger earning*?, $254,511.60; tTeight earnings, $472,049.09; miscellaneous earnings, $01,927.49 ; total earnings, $788,488.18. Operating expenses, including taxes, $084,627.41; net earnings, $103,860.77. CENTRAL BRANCH TNIGN PACIFIC RAILROAD COMPANY. This road with the leased lines controlled by it is operated as a divis- ion of the Missouri Pacific liailway Companj', and from reports sub- mitted to June 30, 1882, the following is derived: Miles owned and subsidized, 100; miles leased, 287; stock issued, $1,000,000; subsidy bonds, $1,600,000; interest on subsidy bonds, $1,405,808.20. Passenger earnings for 100 miles, $111,580.11 ; freight earnings for 100 miles, $309,003.50; miscellaneous earnings for 100 miles, $39,927.49; total, $453,111.10; operating expenses, $329,201.04; ordinary net earnings, $123,910.06. SIOUX CITY" AND PACIFIC RAILROAD COJIPANY. The following statement has been compiled from returns made by this company : Miles of road owned, 107.42; miles of road subsidized, 101.77; miles of road leased, "254.37; total miles operatetl, 361.79. The earnings of the entire line for the year ending June 30, 1882, an- as follows: Passengers, $223,281.96; freight, $490,894.21 ; miscellaneous, $39,279.56; total, $753,455.73. Operating expenses, $715,738.07; net earnings, $37,717.66. The liabilities and assets are as follows to June 30,1882: Stock issued, $2,068,400; subsidy bonds, $1,628,320; inter- est on subsidy bonds, $1,366,598.29; first-mortgage bonds, $1,628,(X)0; interest on same, $118,020; miscellaneous indebtedness, $954,050.21; total stock and debt, $7,763,388.50. Cost of road and e<]uipment, $5,426,059.18; material on hand, $103,692.22; cash on hand, $18,016.23; miscellaneous investments, 8506,200; accounts receivable, $240,850.07; total assets, $0,295,420.70; deficit, $1,407,907.80. The " net earnings" of the subsidized portion of this road for the two fiscal years ending, respectively, on June 30, 1881, and J uue 30, 1882, as ascertained from the general books at Cedar ]?apids, Iowa, were as fol- lows: Year ending June 30, 1881, $138,280.49; year ending June 30, 1882, 815,248. The annual interest on the firat-mortgago bonds having a prior lieu to those of the government, amounts to $97,680. The Commissioner's report is accompanied by appendixes and tables containing compilations in reference to matters bearing upon bonded and land-grant companies, the laws affecting them, their financial con- 582 REPORT OF THE SECRETARY OP THE INTERIOR. ditioi), present indebtedness to tlic Uniled States, eainings, expenses, operations, construction, and otlier nuitters of general interest. His mift-gestion Uml tlic act of May 7, 1S78, entitled '-An act to aid in tin- construction of a railroad and telegraph line from the Missouri River to the Pacific Ocean, &c.," be so amended as to embrace the subsidized portion of the Kansas d i vision of Union Pacific liailway (formerly known as the Kansas raciOc Eaihvay), the Central Branch Union Paciiic, and the Sioux City and Pacific liailroads within the oijerations of said act requiring the establishment of sinking funds and an annual payment of 25 per cent, of net earnings, is respectfully recommended for legislative action. TAXATION OF KAILROAD LANDS. TIk' acts of Congress of 1862 and 1864, "To aid in the coustwic- tion of a railroad and telegraph line from the Missouri Eiver to the Pa- cific Ocean, and to secure to the government the use of the same for postal, military, and other i)urposes," made grants of land to the several roads therein mentioned to an amount estimated in gross at some 30,000,000 acres. Section 21 of the act of 1864 (13 Stat., 365) provided that before any land granted as aforesaid should be conveyed to any company or party entitled thereto — There sliall first be paid into tlie Treasury of the United States the costs of survey- ing, selecting, and conveying the same by the said company or party in interest, as the title shall be required by said company, which amount shall, -^-ithout any further appropriation, stand to the credit of the proper account, to be used by the Commissioner of the General Land Office for the prosecution of the survey of the pub- lic lands along the line of said road, and so on, from year to year, until the -whole shall be completed. It was the contemplation of the law that the companies should pay the costs of surveying, &c., and that the amount so paid in one year or at one time should be applied to surveying additional lands along the line of the road, which in their turn should be selected, and the expenses of survey, &c., paid by the companies, and that this money so paid should be applied to further surveys, and so on, until all thelands granted to said companies should be conveyed to them, respectively. Surveys have been made in part only of the lauds embraced in these grants, and a portion only of the land accruing to the several railroad companies has been selected by and patented to them. The Union Pa- cific Eailroad Company, for example, the grant to which is estimated at some 12,000,000 acres, has received patents for less than 2,000,000 acres; the Central Pacific, with an estimated grant of 8,000,000 acres, has received title to less than 1,000,000 acres ; the grant to the Western Pa- cific, estimated to embrace 1,000,000 acres, has been satisfied by patents to the extent of about one-half that amount ; the Kansas Pacific, estimated to be entitled to about 4,000,000 acres, all of which has been surveyed, has received patents for about 1,000,000 acres; the Denver Pacific, es- BEPOBT OP THE SECRETARY OP THE INTERIOR. 583 timated to be entitled to about 1,000,000 acres, has received patents for about 50,000 acres. The failure of the bcueliciaries of these grants to obtain patents as provided by law for lauds to which they are entitled, is a matter of seri- ous complaint by citizens and by State and municipal autliorities in the States and Territories through which the roads pass. Until patents issue to the companies or their assigns, the legal title to the granted lands remains in the United States. Such lands are, therefore, not subject to taxation by State, Territorial, or municipal authoritj'. The companies permit these large bodies of land to rest in this situation, and groAv valuable by the lapse of time and the settle- ment of the country, thus obtaining all the advantages of public pro- tection and enhancement of values, without contributing to the mainte- nance of the public authority or of the common institutions of muoicipal organization by the aid of which such enhanced values may be secured. In other words, all the burden of maintaining the local civil estab- lishments of the country are thrown upon the legal owners of a moiety of the lands embraced within the limits of railroad grants, while the equitable owners of the other half are exempt from such burdens, although receiving the resultant benefits. The refusal or neglect of the railroad companies to obtain title to their lands has further the effect to retard the progress of the public surveys. Congress having provided a method by which the costs of surveying the public lands on the lines of these particular roads shall be reimbursed by the companies to the proportionate extent of the cost of surveying the railroad lands, and the general approi)riations being otherwise inadequate to the survey of such lands, the failure of the companies to jiay their proportion prevents additional surveys from being made, to the disadvantage of the United States in the adminis- tration of its public-land system, and to the great inconvenience of set- tlers whose legitimate claims become jeopardized by uncertainties and contests arising from such condition. It is strongly, and 1 think justly, urged that the refusal or neglect of the companies to select their lands within a reasonable period of time is not warranted by the terms or spirit of the granting acts, the inteiul- mentof which is shown by the proviso to the third section of the act of 18G2 (12 Stats., 492) to have been that the granted lands should not be locked up and unreasonably kept out of market by the beneficiaries of the grant. The several roads, the grants for which were nmde by the acts above cited, and the corjjorations controlling which are now in default in the matter of selecting granted lands and i)aying the eosts of survey, &<•., have been completed lor about twelve years, a period of time far beyonjl the contemi)lati()n of the statutes as the period within which .such selec- tion and payment should have been made. A bill was introduced in the House of Representatives at the last 584 REPORT OF THE SECRETARY OF THE INTERIOR. Bcssioii of Coiiffross intondod to provide for coiii])elliiii? the Kunsas Pa- cific liailroad Coirii)any to ])ay the costs of Kurveyiii^, selecting, and con- voying its grantiMl lands, and in case of the failnre of the couipanj^ to \niy such costs and accept ])atents, to provide for the delivery of patents for entitled hinds upon notice to the company, and for the recovery of said costs by judicial process. I think that some sufficient measure which will require all the cor- porations in default as above mentioned to pronii)tly comply with the statutory provision in question, and which will enable these grants to be speedily and completely adjusted by this department, is demanded in the general interests of the country, as well as by public sentiment and interest in the States and Territoifies specially affected, and I re- spectfully recommend appropriate action by Congress to this end. RAILROAD LAND-GRANTS. Congress has from time to time, commencing in 1850, made giants to the several States or to corporations to aid in the construction of rail- roads. In some instances the roads have been constructed, and in others partially completed; but in some cases no attempt has been made to build the roads and thus secure a title to the land. The lands thus granted have been withheld from the operation of the settlement laws. The Supreme Court of the United States has declared, in the case of Schulenberg vs. Harriman, 21 Wallace, 44, that a failure to complete the road within the time fixed in the grant did not forfeit the grant. Lands thus withheld from the operation of the settlement laws must so remain until Congress shall declare such lands forfeited. If it is the intention of Congress to allow the railroad companies to com- plete their roads after the expiration of the term fixed in the grant, and thus claim the benefit of the grant, it should be so declared at an early day. Large tracts of land are not available for settlement because the settler cannot determine whether the title is in the govdrnmenrt or in the railroad company. If he purchase from the railroad company and it fails to complete its road and secure the title, he takes nothing by such purchase, and he cannot secure the land under the settlement laws, for the department is not authorized to treat such lands as public land. Besides this, the even sections within the limits of the grants ai'e sub- ject to cash entry at not less than $2.50 per acre. Thus the settler is sometimes compelled to pay a double price for the privilege of owning lands near a railroad which is never constructed. Doubtless in some cases, the companies ha\iug in good faith attempted to build within the time fixed, a forfeiture would be a great hardship, and might be unjust, but in every case where no efibrt was made to construct any portion of the road until the expiration of the time fixed, the grant ought to be declared forfeited and the land so withheld from the operation of the settlement laws declared public laud. REPORT OF THE SECRETARY OF THE INTERIOR. 585 PENSIONS. There were, at tlie close of the fiscal year June 30, 1882, 285,G07 pen- sioners, classified as follows: Army invalids, 173,lo8; army widows, mi- norcliildren, and dei)eudent relatives, 70,448; Navy invalids, 2,3G1 ; Navy widows, minor children, and dependent relatives, 1,9.j3; survivors of the war of 1812, 7,134; and widows of those who served in that war, 24,GG1. There were added to the roll during the year the names of 27,CG4 new pensioners, and the names of G49 whose ])eu8ions had previously been dropped were restored to the rolls, making an aggregate increase to the roll of 28,313. The names of 11,44G pensioners were dropped from the rolls for vari- ous causes, leaving a net increase for the year of 1G,8G7 pensioners. At the close of the year the annual i)eusion to each pensioner aver- aged $102.70, and the aggregate annual value of the whole roll was $29,341,101.G2. The annual payment of pensions exceeds the annual value by sever.il millions of dollars, /. e., the total amount paid for i)ensions during the year, exclusive of the arrears due in such pensions as were allowed prior to January 25, 1879, was $53,924,5GG.20, the ditterence between this sum and the annual value being the arrears due in new pensions, computed from the date of discharge in the case of an invalid soldier, and from the death of the soldier where pension was allowed to the widow or others- The amount paid during the year upon first payment to new pension- ers is 5*2G,421,G(j9.19, and this amount was paid to 27,703 pensioners. Complete details of these statements will be found arranged and class- ified in Table No. 1 of the Commissioner's report, while Table 2 will show the various causes for which the names of 11,44G pensioners were dro])ped from the roll, as well as an analysis of the "widow's'' roll, show- ing the number of widows who are pensioned with minor children, the number without, the number of minor children in their own right, an will be found a statement showing the number of pension claims filed and allowed since 18G1, and the disbursements on account of pensions since 18(12, e. //., the total number of claims filed during tlie period is 837,301, and the nund)er allowed is 472,770, and the disbursenjcnts ag- gregatethesum of 8.">00,04 1,324.75. Included in this sum is $25,234,232.85 ])aid to pensioners for and on account of service during the war of 1812, which was lirst provided for V)y the act of Febiiiary 14, 1871. A reference to Table G, of the Commissioners report shows 290,900 claims for iiensious i>e,iiding, and 75,208 on the rejected files of the 586 REPORT OF THE SECRETARY OF THE INTERIOR. ofiice. The arrangement in tbis exhibit shows the number of claims jfiled during the yeai- (75,087), the numbers admitted and lejected, and the number actually pending at the close of the year of each of the twelve different classes of claimants and pensioners. The operations of the special-examination system, substituted by Con- gress on the recommendation of the Commissioner, for the "special service" provided by section. 4744 of the Kevised Statutes, appears to have given great satisfaction and been fruitful in good results. This new system does away with the ex parte, formerly in use, so that the claimant is afforded the opportunity to face the witnesses, and to appear in person or by counsel in the examination of his case. The expenses incurred in this service amount to $88,275.23, while the gross savings to the government was $645,183.98. Besides this the sum of $01,889.88 represents one year's pension as a future saving in the cases of those whose names were dropped from the roll ; the cases of those whose pension was disallowed, and the reductions in the rates of pension. A reference to Table 7 of the Commissioner's report will show the fur- ther operations of this service, including the criminal prosecutions, &c. BTJEEAU OF EDUCATION. The Commissioner of Education reports that during the year his office has received nearly 43,200 communications and 5,000 documents, many of great value, and that more than 17,000 communications and 210,000 documents were sent out, showing a great increase of the busi- ness of the ofiice in all its forms. The library of the office contains about 15,000 boohs and 34,000 pamphlets, besides duplicates suitable for exchange ; parts of the card-catalogue will soon be put to press. The pedagogical museum has received valuable contributions from Eu- rope and Japan, and, though incomplete, already supplements the library in suggesting to teachers and scho(Jl ofiicers imi^rovemeuts in methods, conditions, and appliances of education. The Commissioner, reviewing the progress of education during the year, observes that the thought of the country has been directed spe- cially to defects and insufficiencies in means and methods, and to the character of the reforms and remedies needed. He notes an increase in the length and number of teachers' institutes in the South. Greater attention has been given to vacation schools of philosophy, science, and letters, indicating a desire for more thorough treatment of questions re- lating to man and his environment and the applications of the conclusions to personal conduct and public affairs. The taste for reading has been imi>roved by reading circles and the efforts of librarians; the library report and other publications of the office on library administration have been in special demand. The visit of the Commissioner to the Pacific coast has been followed by a great increase of correspondence and of documents sent j school-houses have been erected on improved BEPOBT OP THE SECRETABY OF THE INTESIOE. 587 plans supplied by the office 5 supervision has become more efficient, and school-lauds have been better guarded. Oue Territory has required cities to act as single school districts, and graded schools are the re- sult. All advances in these pioneer regions in the education of the whites react favorably on the subject of Indian education. The Com- missioner notes the neglect of education in New Mexico, and the total absence of public provision for it in Alaska, and calls attention to the supreme power of Congress over the Territories, renewing his recom- mendation for the appointment of their suiierintendents of instruction by the President. {Special attention has been directed to the lack of school-sittijigs in cities, the non-attendance of children and their ex- posure to the evils of pauperism and crime; many forms of industrial training for boys and girls have been devised by private charities, and sewing has been taught successfully to girls in the public schools of Boston. The " Colleges of Agriculture and the Mechanic Arts" are lead- ing in the solution of the problems of industrial training, and private foundations for the same purpose are increasing. Great efforts are made by the professions and by professional men to advance the standard of admission to the practice of law, medicine, en- gineering, chemistry, and pharmacy. Physical education, care of eye- sight and hearing, proper supi)ly of good air and light, prevention of the dissemination of contagious and infectious diseases in public schools, have never been more considered. The imjDrovement in methods of instruction seeks to avoid cramming and to promote sound mental growth in healthy bodies. The vigor of growing educational sentiment has shown itself in ad- vanced legislation. One State has abolished the di'strict and adoi)ted the town system ; several have made additional provisions for colored education. The appalling illiteracy in the States where slavery lias been lately abolished remains; their educational facilities are entiiely in- adequate. The most important proposition with reference to elementary educa- tion now before the American people is the appeal for national aid. The necessity for immediate relief is urged upon Congress by State legislatures and governors, by municipal officers, by school oflicers of States and counties, and by religious and benevolent associations that have contributed men and money without stint to the cause which they advocate. The Commissioner urges the prompt action of Congress in such way as the wisdom of that body may devise, I wish to emphasize the recommendation of the Commissioner as to the propriety and necessity of speedy temporary aid by the Federal Government to education. I believe that it is the primary duty of States to supply free public schools for the children in their borders, and that much should be sacrificed and endured by these communities for this purpose; but I know that circumstances often render the performance of this duty impossible, and I am now, as heretofore, an advocate of the 588 KEPOKT OF THE SECRETARY OF THE INTERIOR. doctrine that the nation has dnties to peil'orni in this regard as well as powers to exercise. The local sentiment in favor of education is so strong that the action reqnired froni the general government is simply to make and disburse suitable a])i)r()priations so as to encourage and stimulate the States that are least able to carry ou the work for themselves. It seems reasonable and generally agreed upon that such moneys should be apportioned on the amount of illiteracy as shown in the last Federal census, and that it should continue for some years, so that the children now growing up without any opportunity' for school privileges may be supplied before passing beyond their non-age into ignorant manhood and womanhood. If efficient public schools can be maintained for ten or fifteen years in the States, there will be no danger of their abandon- ment. An educated community will demand, and Mill in some way obtain, suitable educational facilities for all classes of children within its borders ; but an ignorant community neither knows nor believes in their education ; it has not thought; it sufl"ers daily and hourly by evils, social, commercial, and moral, for which it has no remedy and from which it has uo refuge. The occasion and the duty are now pressing on Congress for attention. GEOLOGICAL SUEVEY. The report of the Director of the Geological Survey exhibits important progress in that branch of the public service. Ou its organization at the beginning of the fiscal year of 1879'-80, the unpublished material of the United States Geological Survey of the Rocky Mountain Eegion was transferred tq the new organization. During the first year of the existence of the Geological Survey, and the major part of the second year, active operations were carried on in the field, and much work done, but no iiublication made. Hence, at the beginning of the past fiscal year, a large body of scieirtific material relating to geology and geography and cognate subjects had been collected. Under these circumstances it was thought best not to continue the work in the field in the same elaborate manner as before, but to give more especial attention to the work in the office and laboratory neces- sary for the publication of the large amount of scientific matter on hand. This office and laboratory work consisted of the identification, classifi- cation, and description of fossils; the chemical and microscopic examin- ation of rocks, minerals, ai\d ores ; the construction of geological sec- tions; the preparation of charts, diagrams, and other illustrations ; and the preparation of reports on the various subjects which had occupied the attention of the scientific men of the Survey. Experiments have been prosecuted for the pur^jose of determiniug with greater accuracy certain physical constants of rocks relating to the phenomena of fusion, considered with reference to variation of pres- sure; the phenomena of elasticity and viscosity as affected by tempera- ture and pressure; and the iihenomena of heat conductivity under REPORT OF THE SECRETARY OF THE INTERIOU. 589 similar circumstances. Tliese experiments on rocks have been under the management of the former director, Mr, Chiience King. Another corps of the Survey has been engaged in n)aking an exami- nation of the structural geology of the Eureka nnning district of Ne- vada. The work has been ehietly in the office and laboratory. Under this same division an examination of the volcanic rocks of the Great Basin and of Mount Shasta, ]\[ount Hood, and Mount Kainier has been made. Another department of the work has been the study of the geologic feature of certain lake basins in Utah, Nevada, and California. The lakes themselves are now extinct, except certain fragments which re- main, as Great Salt Lake, Pyramid Lake, and other smaller bodies of water, but in a former time they occupied large areas of country. Their history can bo studied in the geologic changes which they ef- fected, and an important part of the study of their history is.the study of Quaternary climate. This leads to the study of the climate of the arid portion of the United States. The greater part of the work has been in the office and laboratory, but small parties have been employed in the field. Another field of investigation has been the study of the Glacial for- mations extending from the Atlantic coast to the middle portion of the Great Plains, but found only in the northern latitudes of the L'nited States. Field parties have been engaged in the northwestern portion of the country and in connecting that work with what has already been done by State geologists and other persons in the eastern portion of the United States. This investigation also is a research relating to Quaternary climate and complements that previously mentioned. Jt is also an investigation of the character and origin of the present topo- gi-aphic features of the area involved. Much of this work also lias been in the office and laboratory. A division of the Survey has been engaged in investigations relating to the economic geology of Ten-Mile District, Summit County, Colorado. Anotlier field of investigation has been entered at Golden, including the Imsaltic mesas oi'that region, which is to lie ('xpandod so as to extend over the entire Denver coal basin. The geologists in charge; of this work in Colorado have spent a large portion of their time in the offic«* and laboratory preparing the report on th(! Lcadville District. In Nevada th<* Eureka District has l>een carelYilly sur\eyrd and the field work is nearly comj>leted. The officers of this division during much (if the fiscal year have been engaged in office and laboratory in vestigations necessary to the preparation of the report on the Comstock Lode and Washoe District. All of the investigations in economic geology will hav*- a practical value in determining tlie cliaracteristics of ore dei)osits, and Avill ad- vance mining industries by pointing out the best methods of sys- tematic development. 590 REPORT OF THE SECRETARY OF THE INTERIOR. Early in the fiscal year j[?eoj?raphic work was commencerl in New Mexico and Arizona. A base line was measured at Fort Wingate, a system of triangulation expanded therefrom over the adjacent country, and the topo8Tai)hy of the region mapped. This field connects on the east, north, and west with areas previously surveyed by i)arties under the direction of the Department of the Interior and the War Depart- ment. The geographic survey is preliminary to a geological examina- tion of the country. During the year the Survey has been engaged in compiling and dis- cussing the statistics relating to the mines and mining industries of the United States collected by the tenth census. The facts and statistics relate to the geographic and geologic distribution of mines and the relation of mining districts to mountain systems, the nature of ores, gangue-minerals, inclosing rocks, and the character of ore deposits, in addition to statistics of production, capital stocfk, plant, assessments, dividends, market value, &c.,the methods employed in mining, milling, smelting, &c., and the labor, power, and material supplies consumed in mining. Altogether the work of the Survey has been wisely planned and vigorously prosecuted. PEOGRESS OF THE CENSUS. The compilation of the returns of the tenth ceasus and the prepara- tion of the extended report thereupon rapidly approach completion. The degree of progress attained may be shown by a comparison with the report upon the census of 1870. That report, in three quarto vol- umes, contained in the aggTegate 2,403 pages, text and tabular matter, of which 2,212 pages were s'olid statistical tables. The subjects which were treated on 2,036 of these pages have been completely covered in the present census by tables which have already been prepared, and are either now in type or are ready for the printer. These tables are in no instance less extended, but, on the contrary, are in most cases more complete and elaborate than were the corre- sponding tables in the report of 1870, and will occupy 3,000 or more pages, instead of 2,036, as in 1870. The preparation of tables to cover the ground of the remaining 176 pages of the report of 1870, is, to say the least, not less than half com- pleted, and will now be expedited by concentration of the clerical force, which is made possible by the completion of other branches of work. Of the thirty-two chief special agents who have conducted special investigations, sixteen have concluded their work ; have either trans- mitted their reports to the Census Office or hold them in their own hands, practically complete. Eleven others have nearly completed their investigations, and will submit their reports more rapidly than they can receive the office revision and be carried through the press, while the REPORT OF THE SECRETARY OF THE INTERIOR. 591 rfiiiMiiiiiij? tivc have made satisfactory progi-ess, having their material now all in Innid and tlie writing of their rejwrts well advanced. Congress at its last session provided for printing the extended re- l)orts, to be comprised in some 15,000 pages, quarto, in volumes of 800 to 1,(K)() pages each, and also a compendium or abridgment in a single octavo volume. It had originally been proposed by the Census Ollice to issue a compendium in two volumes, the first volume to issue in June or July last, and the remaining one after the completion of the quarto report. This ])]an was changed near the close of the session, at the re- quest of the Senate Committee on Printing and the Ilouse Commit- tee on Appropriations, and the Census Office undertook to prepare for issue during the current autumn a compendium iu one volume which should contain a sunnnary of so much of the statistics of the census as could be got ready in that time. The tables, consequently, for such a volume have been prepared and are being put in tyi)e and stereotyped by the Public Printer, the i)ress-work for an edition of 2r),000 following as rapidly as the IG-page forms are completed, and it is believed that by the 1st of December the work of binding can be commenced. But for this diversion of etfort in the Census Office to the prepara- tion of the Compendium, there would be now in the printer's hands copy for six comi)lete volumes, of from 800 to 1,000 pages each, of the quarto report, namely: 1. The complete statistics of population. II. A volume comprising the principal statistics of agriculturia. III. Manufactures. IV. Wealth, debt, and taxation. V. Statistics of mortal itj'. VI. Professor Hilgard's report upon cotton culture. Already 2,07G pages for these volumes are in ty]>e, of which 1,951 are stereotyped, 1.528 pages having had a small circulation in pre- liminary office editions of parts of these volumes. The remaining coi)y for them will soon be placed in the printer's hands; and it is believed that by the close of December the whole will have been furnished. The remaining volumes will shortly follow, and the whole will reach the printer during the present fiscal year, with a possible exception of a portion of the volume relating to vital statistics, and a poi-tion of the report upon so<;ial statistics of cities, not to exceed 1,(100 ]);ig('s in ;ill. The attention of Congress should be inviteers, aijd sucli meetings were characterized by ex- ceptional good order, good humor, and decorum. The Commissioners appointed, the week before election, five gentle- men of character to canvass the votes, who, in the presence of the Com- mission, on the 16th of Noveml)er, discharged that duty, declaring that John T. Caine had received 23,039 votes, and PhUlip T. Ton Zile, 4,884. The certificate was accordingly given to Mr. Caine as the duly elected Delegate. The Commissioners recommend the enactment by Congress of a mar- riage law, declaring that all future marriages in the Territory of Utah shall be void unless solemnized in a public manner, with proper wit- ness, and that a public record be made thereof. The Commissioners also recommend the repeal of the law conferring the right of suffrage on the females of that Territory, declaring that in the judgment of the Commission said law is an obstruction to the speedy solution of the "vexed question," and also suggest that the first or legal wife be declared by act of Congress a competent witness in all prose- cutions for "polygamy, bigamy, or unlawful cohabiting.*' Speaking of the law under which they were appointed, the Commissioners say: But so far it has been a decided success in excluding polygamists from the exercise of suffrage ; and wo are of the opinion that the steady and continned enforcement of the law will place polygamy iu a condition of gradual extinction, and that the domination that is complained of by non-Mormons in Utah, and elsewhere, will, at no distant day, be much ameliorated. Hi -OitT OF THE SECx.ETARY OP THE INTEEIOK. 593 lu accepting the tnist committed to us, it was not expected by the Commission, and we sappose not anticipated by Congress nor the Executivo Department of the government, that the desired results would be accomplished at once, nor in the brief space of a few mouths ; but there is reason to believe that the operation of this law, and other influences, are setting strongly in the direction of reform, and that the hitherto dominant faction will bo supplanted by "Young Utah" in the conduct of pbnlic aft'aira. The Commission further say : Our attention has been called to the propriety of our recommending Congressional legislation of a radical character ; but we are not inclined to advise such measures, unless upon further obser\'ation and experience the wisdom and necessity of such legislation shall be demonstrated. CAPITOL BUILDING Als^D GROUNDS. The Architect of the Capitol reports that, according to law, rooms are being made in the crypt of the Capitol for the sc.-ring of boor"" connected with the Congressional Library ; that a need exists ''or greater accom- modation for Congressional committees, and that the iiio-room connected with the office of the Clerk of the Ilouse has been ext^^nded in a fire- proof manner, and fitted with metallic file-cases and shelving. In the Capitol building a large nmount of painting ai ,} repairing has been done. The dome has been entirely repainted, a measure rendered necessary for the jireservation of the iron work by the decay of the old coating of paint. The Architect advises an early renewal of the copper portion of the roof over the library. The old roof, which was badly impaired during the con«itruction of the dome, is now so weak that it can no longer be kept Wfettther-tight. The heating and ventilating apparatus in the Capitol has been kept in good order, and has acted in the most satisfactory manner under some very severe tests applied to it during the past year. The boilers were examined last spring and, although they had been in continuous use during twenty-five years, they were found to be in very good condition and ])erfectly safe. Experiments made with apparatus for lighting by electricity were not satisfactory in their results. The Architect desires to hasten the time when a competent electric light can be put in. It is found that leak- ages from the pipes tluougli which gas is conducted to the building have destroyed some of the plants in the Capitol grounds. The dynamo-electric ai)paratus used for lighting the gas in the Uall of the Ilouse and in the Senate Chamber has operated well and is in good condition, a few minor repairs only Ix'ing reijuired. The extension of the Washington court-house, authorized by act of Congress February 1, 1881, is so. Air advanced as to warrant the Archi- tect in stating that it will be completed during this winter. The repairs to the old building liave all been made. The extension to the Government Printing Ofiice has been completed, .38 Al> 594 REPOltr OF TJIE SECRETARY OF THE INTERIOR. including ;i stable for the accommodation of twenty horses, at a cost within that prescribed by law. The Botanic Garden has been greatly improved during the year by cutting down the mound over the "Tiber" sewer, and by filling in the lawns and extending the walks. !Next year it will be necessary to re- imint the conservatory, lu order to preserve the iron work. The work of improving the Capitol grounds has steadily progressed. It will be impossible to reduce the grounds upon the west to a harmo- nious finish before the western terrace and staircase are completed. The joint committee upon buildings and grounds have reviewed the plans adopted for these improvements seven years ago, and are understood to favor their being carried out as soon as possible. It is hoped this matter will receive the favorable attention of the present Congress. The appropriations for the fiscal year ending June 30, 1882, were as follows : For Capitol extension ^57,000 For lighting Capitol and grounds 30, 000 For Capitol grounds -c 00,000 For extension of Government Printing Office 40,000 For enlarging Washington court-house 117,000 Accompanying the report is a carefully-prepared index to the trees in the Capitol grounds ; a set of historical notes upon the Capitol ; in- formation to strangers visiting the premises; and a statement of the observations made by the chief engineer o^the heating and ventilating department, showing the movements of air, its temperature and humid- ity, and the capacity of the apparatus for forcing air into and taking it out of the building. RECOJs^STEUCTIOK OF EOOF AND MODEL-HALL OF SOUTH WING, PATENT-OFFICE BUILDING. An estimate of §150,000 for this purpose is submitted and urged upon the favorable consideration of Congress. It is apparent that the roofs and attics of the south and east wings of this building are in as inilammable a condition as were those of the north and "west wings destroyed by the fire of 1877. Upon this subject atten- tion is respectfully invited to the message of the President to the Senate and House of October 17, 1877, (House Ex. Doc. No. 2, Forty- fifth Congress, first session,) and its accompanying papers, and also to a subsequent message of December 10, 1877, (House Ex. Doc. No. 10, Forty-fifth Congress, second session.) The documents contain the re- ports of three several boards, two of said boards having been com- posed of government engineers and architects, and all concurring in the necessity for a fire-proof reconstruction of the roofs of the south and east wings. To put on new roofs and not remodel the halls under them substantially uniform with the reconstructed north and west halls, would seem unwise, as the most cursory examination would showj REPORT OF THE SECRETARY OF THE INTERIOR. 595 and for the further reason that additional floor-space for the working force of the department might thereby be secured to the amount of 16,800 square feet without decreasing the present area for model-cases. The reconstruction of the north and west halls has increased the space for model-cases by 50 i)er cent. The necessity for additional oflice-room is universally admitted and demonstrated by competent witnesses ; in- deed the estimates for the clerical force of the General Land OfBce for the ensuing fiscal year were not placed fit a justifiable amount for the reason that there would not be room in the building where an additional force could be worked to advantage. In this connection attention is invited to Senate Eeport Xo. 302, Forty-seventh Congress, first session. Should the foregoing recommendations receive favorable considera- tion, I beg leave to further recommend that an unexpended balance of $41,500 for fire-proof model-cases in new halls be made available for similar cases in the south hall, so that the cases might be ready as soon as the new hall might be ready. This balance exists from the fact that the west hall, where they were to be set up, is occupied for clerical uses by the Patent and Land Ofiices. It is believed that all the principal work contemplated in the forego- ing recommendations could be accomplished within the ensuing fiscal year, leaving to a subsequent Congress the determination as to the re- maining or east wing of the building, as it would be unwise to under- take the reconstruction of both the south and east wings at the same time. The w ork of reconstruction should be carried on, as heretofore, under the supervision of a board comprising the Commissioner of Patents, the Engineer in charge of Public Buildhigs and Grounds, and the Architect of the Capitol. FREEDMAN'S HOSPITAL. The report of the surgeon in charge shows a large increase in the number of cases admitted. During the year, 1,028 patients were ad- mitted and 74 infants were born. There were discharged 904 j and 195 died, 5 still-born. On the 30th of June last, 22S remained in the hos- pital, of whom 34 were white and 194 colored. Accompanying the report is a tabulated statement of the nativity of patients, the diseases treated, the causes of death in those cases which so terminated, and the more important surgical operations performed. The hospital has at present 300 beds. The capacity can be increased by utilizing the lecture-rooms connected with the building. The unusual mortality shown in the report is explained bj" the sur- geon's statement that many of the patients went into hospital only when their cases had become liopeless. A largo number died within a few hours after nilniission. The surgeon recommends that a board of visitors be appointed, who should have the liberty of the hospital at all times. Siich a board would, in his opinion, do much to give the public 596 REPORT OF THE SECRETAKY OF THE INTERIOR. ;i proper idea of tlio in!ij?nitud« and facilities of the institution, and thus remove the prejudice against hospitals which seems to exist in the mind of the people. The report recommends that, as the hospital has now become perma- nent, the government purchase the building and gromuls. HOSPITAL FOR THE IIs'SANE. The twenty-seventh annual report of the Board of Visitors of the in- stitution shows the growing work and usefulness. The number of patients under treatment on June 30, 18S] , was 925, of whom 700 wxrc males and 225 females. On June 30, 1882, the number under treatment was 942. During the year, 247 were admitted, of whom 178 were males and C9 were females. In the same time 101 died, and 129 were discharged. Of the patients under treatment June 30, 1882, 423 were from the Army, 49 from the Navy, 14 from the Marine Hospital Service, and 456 from civil life. At the close of the fiscal year there were 17 private patients, of whom 9 were males and 8 females. Tables accompanying the report show in minute and interesting de- tail the monthly changes of population, the physical condition of those who died, the duration of disease in the cases of those who diedj the duration of disease before admission, the nativity of patients, the form of disease, the time of life when insanity developed, the history of an- nual admissions, the mean annual mortality, and the proportion of recoveries. The total mortality of the year, while not excessive as compared with other hospitals, was larger than the average mortality at this institu- tion for any year of the ten years last preceding. This is accounted for by the fact that a large proportion of the population is made up of per- sons who served in the volunteer army, who have been inmates of the hospital for a number of years, and who are now growing old. It is reasonable to expect that for some years to come there will be a grow- ing mortality rate in this class of patients. The rate was further swollen by a bilious disorder which appeared in the year and operated fatally in the cases of a few patients who had been rendered feeble by protracted disease of other kinds. This disorder was attributable to the impure water of the Anacostia River, then in use at the hospital. The appro- priation made by Congress for connecting the hospital with the water system of Washington City enabled the authorities to supply the hos- pital with Potomac water, so that a reappearance of trouble from that cause need not be looked for. The president of the board of visitors urges the necessity of carry- ing out the plan for detached buildings already approved and com- menced upon. The completion of these additions will be a very great relief to the hospital, since it will not only enable the board to easily REPORT OF THE SECRETARY OF THE INTERIOR. 597 nccoimnodate the iucrease of populatiou that must result from the oper- ation of the receut act of Congress providing at this hospital for the oare of insane from the Home for Disabled A^olunteer Soldiers, but will (jonduce to the comfort, convenience, and health of all the inmates. The plan includes detached kitchens, the need for which is urgently felt. The experiment of indoor work continues to yield an increase of sat- isfactory results, and the larger liberty which has recently been per- mitted to inmates in their movements about the buildings and grounds has been found both pleasant and beneficial in its effect. The board recommends especially than an allowance be made in the next jippropriation for the constrnction of a cold grapery, forcing and green house, which they represent would prove a wise and economic as well as aesthetic improvement. But above this, and as a measure of simple economy, they ask foa- increased shelter for neat stock and barn room for farm products. The farm and garden at the hospital yielded products to the value of $24,143.21. Products valued at $7,265 were consumed on the farm. The estimates for the next year are as follows : For the support of the iustitution $266,425 For general repairs and improvements 10, 000 For special improvements 27, 500 The superintendent of the hospital submits, with the report of the board, a detailed account of the receipts and exi)enditiires for the year, from which it appears that there was paid for subsistence the sum of $94,251.87 ; for house-furnishing, fuel, lights, &c., $22,492.29 ; for dry goods, clothing, books, stationery, and miscellaneous, $14,430.02 ; for medical supplies for individual ))atients and patients' amusement, $5,170.28; for the farm, garden, aurl stable, $12,772.84; for repairs and improvements, $14,831.75 ; and for salaries and wages, $73,012.07. The total receipts were : Appropriations, $180,792..51; for board of private patients and special attendance, $50,179.70. The only change in the lyersonnel of the staff of the iustitution was brought about by the Rev. J. S. Deale, who resigned his place as chaj)- laiu after a long and most acceptable service in that capacity. The Kev. C. Herbert Richardson was appointed to the place thus made va<;iuit. COLUMBIA INSTITUTION FOR THE DEAF AND DUMB. The number of pupils under instruction in the Columbia Institution for the Deaf and Dumb during the last yetir was one hundred and eleven. Fifty-one of these were in the collegiate dei)artment, represent- ing twenty States and the Federal District. The general health of the institution has been excellent during the year. The results of physical training in the new gymnasium are very gi-ati- fying. Six young men were graduated from the collegiate department, 598 REPORT OF THE SECRETA»Ry OF THE INTERIOR. four reccivhifj the degree of B. A. and two the dej'ree of li. S. More than twenty others were h-ouorably dismissed who had pursued partial courses of study, and who were well prepared to enter upon the busi- ness of life. For the expenditures of next year the directors a.sk $55,000 for cur- rent expenses, $10,000 for the erection of two small detached buildings, and $5,000 for the imi)rovement and inclosure of the grounds. The directors call attention to the ftict that Congress, in providing for the current cxj^enses of this year, enacted a proviso that no more than $22,000 out of the sum ai)propriated, viz, $55,000, shall be expended for salaries and wages. This restriction, the directors urge, would, if insisted on, cause very serious injury to the institution, as it contemplates a reduction of about $7,000 in the amount now authorized by the board for salaries and wages. In A^iew of the wide range of study covered in the institution, extend- ing over a period of thirteen years, the number of instructors employed is not unreasonable -, and a comparison with rates of compensation paid in similar institutions of learning iii the other educational establish- ments supported by the government, and in the scientific branches of the public service, shows plainly that the officers of the Columbia In- stitution are not overpaid. In view of all which, the attention of Congress is respectfully called to this matter, with the belief that an examination into the facts of the case will lead to a repeal of the restrictive i)roviso. HOT SPRINGS RESEEYATION. The superintendent of this reservation in his report urges the neces- sity for an appropriation sufficient to cover the whole cost of the im- provements contemplated iu the city of Hot Springs hy walling and covering the creek, which nowi-uns in its natural bed through the main street. This work should be pushed to completion at the earliest pos- sible day. The funds now at the disposal of the department for that purpose are insufficient. The sale of lots recently made yielded larger returns than were looked for, the price paid being considerably hw^ger than those set by the ap- j)raisers. The value of lots is steadily increasing, owing to the steady growth of the city and the increasing fame of the springs. YELLOWSTOIs^E KATI02TAL PAEK. The construction of the Northern Pacific and the Utah and Northern Eailroads to points near the Yellowstone National Park has rendered it a popular resort for recreation and health. AThether it would better subserve the object for which the park was by law set aside to grant to a number of persons with limited means leases of small parcels of laud upon which to erect hotels for the REPOET or THE SECRETARY OF THE INTERIOR. 599 accommodation of visitors, or to graut an exclusive privilege of building liotels to an association of persons Laving control of suflicieut capital to enable them to provide lirst-class accommodations, was a question which was presented to the department i\)r determination. The conclusion was reached thattlie public interest would be better subserved by grant- ing exclusive privileges to a firm having the control of ample capital to provide the necessary accommodations. Accordingly, on the 1st of September last a contract was made by this department with IMr. Carroll T. Ilobart, of Fargo, Dak., and Mr. Henry r. Douglass, of Fort Yat^s, Dak., granting to them the use of tracts of land, ujjon which they agree to build hotels of such design and dimen- sions, and at sucli points as may be ai)proved by the department, to run such lines of stages Avithin the park as the travel may render necessary, and to construct lines of telegraph from the principal points in the park to connect with the through lines constructed near it. It is provided in the contract that no greater charges shall be made for accommodations furnished and services rendered than those set forth in a schedule to be ai)proved by the Secretary of the Interior. Messrs. Hobart and Douglass are certified to this department as per- sons in all respects able to fulfill their contract. It is hoped that by the opening of the season of travel next year visitors will find comfortable accommodations provided for them. It is believed that the appropria- tions for the improvement of the park heretofore made have been judi- ciously expended in the construction of roads, bridges, and other im- provements. 1 have the honor to be, very rospectfully, your obedient servant, li. M. TELLER, /Secretary. The President* PAPERS ACCOMPAXYINO REPORT OF THE SECRETARY OF THE INTERIOR. KEPOET OF THE COMMISSIONER OF THE GEIS^EEAL LAND OFFICE. Department of the Interior, General Land Office, WasJiington, D. C, October 11, 1882. Sir: I have the honor to submit herewith the annual report of the General Land Office for the fiscal year ending June 30, 1882. The disposals of public lands under all acts of Congress epibraced 13,998,780.27 acres, and of Indian lands 310,386.13 acres, making the tbtal disjiosals 14,309,166.50 acres, an increase over disposals during the year 1881 of 3,415,769.35 acres. The amount of money received from all sources in connection with disposals of the public lands was $7,758,351.02, and from sales of Indian lands $634,617.22, a total of $8,392,968.24, being an increase over the previous year of $2,984,164.08. The following is a statement in detail of disposals and receipts : Cash sales: * Acres. Private entries 1,924,496. 15 Public sales 7,933.13 Timber and stone lands - 95,237.02 Pre-emption entries 1,351,380.85 Desert lands 164,955.94 *Final desert lands (39,323.11) Mineral lands 36,768. 63 Coal lands 8,634.33 Excess payments on homestead and other entries 19, 316. 77 Abandoned military reservations 2, 808. 12 •Commuted homesteads (376, 656. 10) *Act June 15, 1880 (700,727.80) Total cash sales 3,611,530.94 Homestead entries (original) 6,348,045.05 *Knal homesteads (2,219,427.10) Timber culture entries (original) 2,566, 686. 09 ♦Timber culture, final (23,371.12) Locations with military bounty laud warrants 43, 865. 69 Agricultural college scrip locations 1. 040. (.K) Private land scrip locations 10,577.12 Valentine scrip locations 853. 47 Sioux half breed scrip locations 840.00 Chippewa half breed scrip locations 240. 00 Locations with Porterfield scrip 390.79 Lands selected under raih'oad grants 472, 263. 88 *The areas of homestead entries commuted with cash, and of lands originally entered under the homestead laws but subsequently purchased under the act of June 15, 1880, and the areas of final homesteads, final' timber culture entries, and final desert land entries, are not embraced in the foregoing total, such areas having been previously reported with original entries of the respective classes. 600 REPORT OF THE SECREJiRY OF THE INTERIOR. GOl Cash sales : Acrea. State, school, aud internal iuipi-ovement selections '276, 11 1. 74 Donation claims 1h, 30:i. 14 Swamp land selections (i48, 0:V>. .><■. Total i:}, 998, 780. 27 Sales of Indian lands : Acres. Cherokee strip . , 'J9,508.02 Cherokee school 298.65 Kansastrust 210.72 Kansas trust and diminished reserve 11,760. 30 Osage trust and diminished reserve el, 817. H» Osage ceded • , ;{,2r)0.6-J Otoe andMissouria 7, 343. .57 Choctaw orphan l<)0.96 Pawnee 112,49 Number of cases undecided June 30, 1881 10, 172 Increase 2 377 The amount of work performed during the year in the division hav- ing charge of this branch of the business of this office exceeds by about one-third the amount jierformed the year j^revious. In the meantime the amount of work in arrears has increased, by the presentation of new cases, in the same ratio. "With the exception of contested cases and town site entries, which are up to date, the general work of the division is about two years in arrears ; that is to say, the present force of the division could get the accumulated work up to datei in about two years, if no new work inter- vened. But as the total number of pre-emption cases received during the year, was 11,554, and the total number disposed of during the same period was 8,079, an addition of 3,475 cases has been made to the total work in arrears, notwithstanding the increase of 33 per cent, in the amount of work performed during the year. STATE SELECTIONS. The adjustment of State selections under the school and general im- provement grants of Congress, which work is performed in this division, shows a like ratio of increase and arrears. REPORT OF THE SECRETARY OF THE INTERIOR. 605 REPEAL OF THE PRE-E:mPTION ACTS. Previous to the passage of the homestead laws the pre-emption system afiorded the only means by which settlers could acquire title to unof- fered lands. The wise policy of Cou;]:ress, maintained for many years, has been to withhold tlie public lands from disposal at ordiuarj' casli sale, with a view to their occupation by actual settlers, and to prevent the appropriation of large bodies by individuals for speculative pur- poses. The pre-emption system was desired to enable actual settlers to establish their homes on the public domain, and thus to improve and build up the country. With the passage of the homestead act, however, the pre-emption law became of less importance, and recent supplemental legislation having placed homestead parties on an equal footing in all respects with pre- emptors, the special utility of the preemption law for purposes of bona fide settlement on the jiublic lands has wholly ceased. Any person who could make a pre-emption entry can make a home- stead entry. Any land that can be entered under the pre-emption laws can also be entered under the homestead laws. Under the home- stead laws, also, the homestead party may purchase the land entered bj' him within the same time, upon the same terms, and by the same proofs as in pre-emption cases. There is, therefore, no practical necessity for continuing the double system in operation. A repeal of the pre-emption law would sinqtlify the public business and be in the interest of public economy and good adminstration. Such repeal would, moreover, remove one of tlie causes of frauds in land entries which have approached great magnitude. The correspondence of this oflice, and reports Irom oflicers and special agents, indicate that a material proportion of the })re-emp- tiou entries now niadt' arc fraudulent in character, being chietly i)laced upon valuable timber or inineial lands, or water rights, and made in the interest and by the procureojent of others, and not for the purpose of residence and improvement by the professed pre-emptor. CERTIFICATES OF DEPOSiT ON ACCOUNT OF SURVEYS. The amount covered by certificates of deposit on account of surveys, examined and accepted in payment for public lands during the vear, was $J,77U,182.51. The amount of money dei)osited during the year under the individual deposit system was $2,013,270.77. MINERAL LANDS. During the year there were sold .'10,708.(13 a<;ivs of mineral land, an excess o\'er the previous ye;ir of 0.."»7.S.!).~» acres; S,(;.'U..>3 acres of eoa! land were also sold during the liseal year. Number of Miinei-al entries, 1,.S1S. Increase, 557. Xuml)er of mineral ap])lieations, 2,.") is. Ad vcise claims liled,(!7(>. Number of mineral p.tt- ents issued, 1,2!KS. Coal patents issued, 24. The numl)er oi* mineral entries and (;o':t^sits remaining undisposed of was 2,224. The inciease in the work performed in the division of mineral cliims during the year was about 25 per cent, over tln^ year previous. This work is now about on«' year in arrears, and the voMune of new busi- ness is constantly increasing. 606 PAPERS ACCOMPANYING THE . SURVEYS. Tlio number of sur\»e.ying contracts made by surveyors general during the year, and approved by this oilice, was 410. Two tliousaud two hundred and ninety-eight townslii}) plats and accompanying field notes of surveys of i)ublic lands and private land claims, returned to this office by the surveyors general, were examined in detail during the same period. These examinations euibraced a total area of 40,803,103 acres. The total area of public lands surveyed in the several land States and Territories, from the comraeucement of surveying operations by the gov- ernment up to June 30, 1882, is 831,725,863 acres. The estimated area of the unsurveyed portion of the public domain, inclusive of the Terri- tory of Alaska, is 983,003, 750 acres. SWAMP LANDS. The amount of land claimed and reported to this office as swamp and overflowed land during the year, was 048,032.30 acres, against 152,214.99 acres claimed and reported during the year ending June 30, 1881, being an increase of 405,817.37 acres. Patents have issued for 092,055.34 acres. Claims for indemnity have been adjusted upon reports and testimony submitted for 244,107.85 acres, against 05,700 acres the previous year, an increase of 178,407.85 acres, or more than 170 per cent. The total area of swamp lands approved or patented to the several States under the acts of Congress relative thereto, amounted, on June 30, 1882, to 55,769,172.03 acres. The unadjusted claims now pending amount to 14,000,000 acres, and there is no diminution in the number of claims annually filed. The progress of settlement in the public land States, and the rapid absorption of the public lands of the United States, have led to increased attention by investors and settlers to lands claimed under the swamp land grant, resulting in a pressing demand upon this office for the more rapid adjustment of these claims. The work of the division charged with this service is several years in arrears. PRIVATE LAND CLABIS. The number of private land claims finally settled during the year, was 307, which number includes 155 donation claims in Oregon and Washington Territory. Five claims in jSlew Mexico and Arizona were transmitted to Congress for confirmation; 038 entries with Supreme Court scrip were approved for i^atent. Preliminary examinations have been made in a large number of cases, which are still the subjects of correspondence, or are awaiting the cor- rection of imperfections or further proof. The number of cases in immediate progress of adjudication is 806. Patent certificates or special plats of survey are on file in a large number of claims in which no examination has been made in late years. These cases are in order of action when called up by parties in interest. Many thousand other claims exist which have been confirmed from time to time by various boards of commissioners, and by Congress upon reports of boards of commissioners, also by the Federal courts under authority conferred by Congress, but in which, in numerous instances, the papers on file here are not sufficiently complete to afford a proper basis for final action. REPORT OF THE SECRETARY OF THE INTERIOR. 607 PRIVATE LAND CLAIMS IN NEW MEXICO, COLORADO, AND ARIZONA. There have been 91 private land claims reportoroofs upon which the claims were approved. While it has been held tliat this office has no authority to review the proceedings of the surveyors general, or even to call for or to examine the original muniments of title, I have never- theless deemed it my duty, with the concurrence of the department, to consider their reports, and in event of any obvious error to call the at- tention of Congress thereto. In my last annual report I referred to the pressing necessity for some legislation that will facilitate the early adjudication of these claims, and I would again call attention to this subject. < RAILROAD LAND GRANTS. One hundred and seventy-six thousand four hundred and six and sixty-six one-hundredths acres of land were certified for railroad pur- poses during the last fiscal year. The lists of selections awaiting ex- amination or action on June 30, 1SS2, embraced 1,058,092.70 acres. Six hundred and eight and ninety-six one-hundredths miles of road were reported as constructed under the land grant system during the year, making a total of 16,230.10 miles of land grant railroad con- structed in all the States and Territories up to the close of the fiscal year. The total number of settlement claims within railroad limits awaiting original or final action at the close of the year was 5,504, an increase over the preceding year of G73 cases. Of the total inimber of peiuling cases 1,617 had received partial action, and 3.047 had not been reached for examination. The work of the division charged with the adjustment of grants for railroads, wagon roads, and canals, and with the adjudication of claims of settlers and others within the limits of such grants, is several years in arrears. FORFEITURE OF RAILROAD GRANTS. The status of various grants for railroad purposes where the roads have not been constructed within the time prescribed by law, was reported to Congress on jMarch 28 last. The absence of legislative action touching the renewal of these grants or declaring the forfeiture thereof seriously embarrasses the work of this oflice. It is not deemed 608 PAPERS ACCOMPANYING THE expodient to certify additional lands to the railroad companies, nor to award to the (companies lands in dispute between them and settlers or other claimants, juniding the determination of Congress in the premises. Large numbeis of settlers are occui)yinenses, instead of not exceeding $4 as at present, would be cheaper for the government and more satisfactory to the agent, while the time and labor expended in auditing their accounts Avuuld be materially lessened. FRAUDULENT LAND ENTRIES. Investigations made during the past year have developed the exist- ence of uuich fraud under the shield of the preem])tion, homestead, and timber culture laws. These investigations have been based upon complaints made to this REFOET OF THE .SECRKTAKY OF THE INTEEIOK. fjOb oflQce that great quantities of valnal)le coal and iron lands, forests ot timber, and the available atjrieiiltural lands in whole lej^ious of grazing' country have been monopolized by persons who have caused frauduleni '*'pre-emptiou and commuted homeatead entries to be made by thciragents and einploy<^s. A proper investijiation of the numerous complaints that are constantly lieing reeeived would n-fiuire ihe employment of a large force of si>ecial agents, and involve an exi>eiise far beyond the customary appropriations by Congress available for that purpose. Efforts have been made to check unlawful acts of this character in the coal and iron regions of AIal)aiTui, the timber regions of Minnesota, the grazing country in California, and on agricultural lands in the Ter- ritory of Dakota, by the special investigation of cases of alleged fraud, trials before local land ollieers to cancel illegal entries, and the institu- tion of civil and criminal suits. These ])roceedings have, however, nec- essarily been confined to one or two localities in each of said States and Territories, owIum; to the limited faciliti(\s of this othce for such service. Proceedings have also been instituted in the State of AKssouri by the proper law officers of the United States to recover the title to several hundred thousand acres of land in that State fraiululently enteretl many years since under the graduation act, which act has been reiHiiiled. I have recommended heiein the repeal of the pre-emption law, the same having been practically supersetled by the homestead law and especially by the commutation feature of the latter act. COMMUTED HOMESTEADS. It is a matter of serious question whether the time within which home- stead parties are allowed to commute their entries by the payment of cash should not be extended so as to require proof of actual residence, improvement, and cultivation for at least one year before such payment should be received. This extension of time would be no longer than reasonably necessary to establish the good faith of the parties, and would be no hardship to bonajide settlers, while the oi)portuuitie.s and induce- ments for fraudulent entry would diminish in proportion to the length of time for which residence, ijnprovemeut, and cultivation are requireay to speculators, or i)ersons holding th»i claims, a bonus for the priviU'go of entering the land in a legal and proper manner undei' the publie land laws. 39 Ab 610 PAPERS ACCOMPANYING TIIP: The utility of the timber culture law as an inducomeut to the cultira- tiou of trees that would not otherwise be jdanted has souictinies ])ecn questioued, since settlers under the homestead law in treeless legious liud it one of the necessities of the situation to set out and cultivate'' trees, and their interest to do this is a usual guaranty that it wijl be done. At the same time, I am not inclined to recommend the repeal of a ]ii,\\ of so benelicent an intention as the timber culture act. But I deem it incumbent upon me to refer to the abuses to which it is subject. UNLAWFUL OCCUPATION OF THE PUBLIC LANDS. The illegal inclosure of the public lands in certain States and Terri- tories, and the exclusive occupation of large tracts by private parties to the deprivation of the rights of others and the impediment of settlement and intercourse, have become matters of serious complaint. A usual method of proceeding is that title is legitimately or otherwise obtained to the streams or water rights, and then the surrounding country, frequently for many miles in extent, is inclosed with fences, and all citizens warned off and their stock driven aW|iiy. In other cases the public lands are inclosed in this manner where no pretext of ownership or of legal chiim to any part of the land exists. The iisual routes of travel are also cut off by these inclosures, and the inhabitants of the country are in many instances compelled to go a great way around or to tear down the fences, thus incurring the risk of dis- turbance and perhaps bloodshed. Letters received at this ojBBce from many persons and reports made by officers and agents of this department, disclose the fact that unlaw- ful proceedings of this character are carried on to a great extent, and future serious trouble is apprehended between settlers and residents and the "cow boys," as employes of the stockmen are called. It appears also that in some cases State laws have provided for a nomiual tax upon "possessory rights," the effect of which is represented to be to locally legalize this infringement upon the laws of the United States; and citizens who have attempted to make settlements and entries within the limits of these ranges in accordance with the land laws of the United States have been ouste2 clerks of class 2 72, 800 ,''i2 clerks of class 1 C2,4()0 27 clerks, iit $1,000 each 27,000 48 copiists, at !?'J00 eat.h 43,200 Messenyev 840 8 assistant messengers, at $720 each 5,700 ♦5 puckers, at §720 each 4, 320 12 laborers, at §(iG0 each 7 , 020 For additional force previously paid from special funds: 3 clerks ofclass 3 4,800 2 clerks of class 2 2,800 3 clerks of cla^s 1 3, HOO ti copyists, a1 §000 each 5,400 Misoellaueoub and contingent expenses 57, 000 Total $4.')3,'J10 The foregoing estimate shows an increase over the amount ai>i)ropri- ated for the current liscal year of $33,1)40, wliich is made ui»as follows: 1. An increase of -$1,000 in tlic compensation of the Commissioner is submitted because the ])reseut salary of )i*4,000 is not commensurate) with the duties and resj)onsibilities of the otlice. and because of th«< unprecedented increase in the business of the otlice, and consequent increase in the duties of the ('ommissionei'. li. An estimate is sul»nntted of !^.!,000 for an assistant Conimissionor. The n^nier(uis and comi)licated duties now devolving n\)on the head of the bureau necessitate sonu3 division of executi\"e labor and responsi- bility. 3. The salary of the chief clerk is estimated at .$'J,.^00, an increase of $500, The chief clerk must be fidly competent to take clmrgo antl con- trol of the bftreau at all times, and his otiier and juoper duties being intricate, complex, ami arduous, fidly rincii)al clerks of this ollice. Originally there were but three, viz: of public lands, of surveys, and of private land claims. The early statutes provided for the appointment by the Presi- dent, by and with the advice and consent of the Senate, of tliese " three principal clerks" for the iibove respective subdivisions of the General Land Oflice. At this ]>eriod there was but one method i)rovided for the disposal of the public lands— that of cash sale. Since then additional methods have been adopted, and the general business of the ollice has also increased with the growth of the country. There are now ten divi- sions besides that of the recorder, each of which is charged with the work of an Important branch of the business of the Land Department. There is no difference in the character of the duties and responsi- bilities of the chiefs of these divisions. The services of all are of e<|ual dignify and importance; the degree of ability and experience recpiired is the same iu each case, and the compensation is uniform. There is no reason why three of these positions should be filled by Presidential appointment that would not epointments of all be made in the same manner as the a])pointments of similar oflicers are made in other executive depart- ments. Respectfully submitted. y. C. McFAKLAJN^D, Commissioner. Hon. Henry ^\. Teller, Secretary of the Interior. KEPORT OF THE COMMISSIONER OF INDIAN AFFAIRS. Department op the Interior, Opfice OF Indian Affairs, Wasliimfton, Octoher 10, 1882. Sir: In compliaiu'c with the law recjuiring the (■ommissioner of In- dian Affairs to make an annual repoit of tlie condition of affairs con- nected with his bureau, I hav«' the honor to submit, herewith my report tor the year 1882. l^vidently this law contemplates that the rei)ort thus recpiired should show not «udy oi)eratious of the l>ast y«'ar and the jiresent condition of alfairs, but al«o make such suggestions and rec- ommendations, based upon the year's experience, as would be beneficial to the service. 614 PAPERS ACCOMPANYING THE Tlie operations and results of the last year in the different ag^encles, Avbicli will be more fully described and exjdained under their apjiro- ])riate heads, will, I think, compare favorably with any one of tlic pre- ceding? years. Land has been opened to cultivation; honses for Indian residences have been built; schools opened and oi)erat(Ml; and in many cases, au'd in various ways, the cause of civilization generally advanciid : and 1 might, with this general statement of facts, proc(!eose; but until such is the case, a report should not only state what has been done, but also what changes would be advantageous to the service. DELAY IN SETTLEMENT OF ACCOUNTS. Too much machinery is often worse than too little, and, in my judg- ment, there is now too much machinery in use in the settlement of ac- counts connected with this bureau. I say this with a full knowledge gained by au experience of many years of the absolute necessity of proper checks and balances iu the manner of keeping and settling ac- counts. But after an individual has complied with his contract and produces his vouchers certified and signed by the leg.ally appointed offi- cers, showing that he has performed his undertaking iu letter and spirit, he is in all fairness entitled to the prompt payment of the compensation stipulated. But such, I am compelled by personal knowledge to say, is not the case as the law now stands. After all has been done as above indicated, honest claimants have in ver^' many instances been comi)elled to chase their accounts through twelve or fifteen departments of the government, consuming weeks and even months, and iu some instances years of time, until hope has sickened into despair, and men have grown gray waiting for the tardy footsteps of the messenger from whose hands they should long before have received their just dues. It is no answer to this to say that the system now practiced has been long in use and therefore ought not to be changed. This is no argu- ment for its continuance unless it can be shown that age sanctifies error. I make this statement in the interest not only of fair and honorable deal- ing, but also and particularly in the interest of economy for the govern- ment. A ])rompt paymaster gets more for his money than one who is not prompt; and when it is understood that delay may be expected in receiving payment for labor or material furnished, those who furnish the labor or material make their calculations accordingly, and charge enough to pay them for waiting. The system of purchasing the annual supplies for the Indian service by inviting and receiving sealed proposals is pro- ductive of a healthy competition, and the opening of these bids and awarding the contracts in the X)resence of the bidders leaves no just ground for charges of unfairness or favoritism, and, iu my oi)inion, there is not much room for improvement iu that respect ; but 1 desire to re- peat and emphasize it, that the law in reference to settling the accounts ought to be changed. REPORT OF THE SECRETARY OF THE INTERIOR. 615 INDIAN AGENTS. Arnonff tlie many Cannes which exist teiuliiip: to rotarfl the ini])rove- Tiie.iit of the liuliaiis, one very iinjiortant one is tlie (lilVn-u1ty ofjnoenr- inft- nieii of tlie ri.Q,iit stani]) to act as a<;ents. AVe hav<' over a quarter of a million of Indians scatterevhieli they aie located bein^' (litJhcult of acler purpose of helping these untutored and uncivilized people to a higher plane of existence. In no other manner and by no other means, in my judgment, can oar Indian x)opnlation be so speedily and perma- nently reclaimed from barbarism, idolatry, and savage life, as by the educational and missionary operations of the Christian people of our country. This kind of teaching will educate them to be sober, indus- trious, self-reliant, and to respect the rights of others: and my delib- REPORT OF THE SECRETARY OF THE INTERIOR. 617 erate opinion is, that it is not only the interest but tlie duty of the gov- ernment to aid and encourage these etiorts in the most liberal manner. ]^o money spent lor the civilization of the Indian wUl return a better dividend than that sjjeut in this way. In urging this imint I do not wish to be understood as claiming tliat all tlie good people are inside the churches and all the bad ones outside; but a little observation, I think, will convince any one that a very large proportion of those who sacrilice time and money for the good of others is found inside of some Christian organization. If we expect to stop sun dances, snake wor- sliip, and other debasing forms of superstition and idohitry among In- dians, we must teach tluMu sotne better way. Tiiis, with liberal appro- priations by the government for the establishment of industrial schools, where the thousands of Indi;in children now roaming wild shall be taught to speak the English language and earn their own living, will accomidish what is so much desired, to wit, the conversion of the wild, roving Indian into an industrious, peaceable, and law-abidiug citizen. ]SEED OF MORE LIBERAL APPROPRIATIONS. This result, however, cannot be reached in any reasonable time un- less the means are commensurate with the end to be attained. The conditions which now surround the case are very ditferent from those that existed in the years of the past. The game upon which the In- dian subsisted is fast disappeaiing, and he must of ne<'essity look for subsistence from some other source. The vast domain which he once called his own, and over which he roamed at will, is rai)i(lly being absorbed by the white people, who insist that these fertile valleys and mountains rich in mineral deposits shall no longer remain locked up and shut out from the enterjjrise and imlustry of the white race. The commercial interests of the country seem to demand that the means of communication between one section of the country and another shall not be obstructed by denying the right of way for trade and trafiic; and as a consequence railroads are penetrating these reservations once set apart for the home of the Indian, and in which he had a right to suppose he wouhl not be disturbed. I do not stop now to canvass the question of right or justice. I only point to the inevitable, and claim that it is unquestionably the impera- tive duty of the government, as well as the soundest and safest policy, to provide the safest, surest, and most etjuitable means to induce the Indian to abandon the manners, customs, and traditions of his fathere, and accomimMiate himself to the new and better way. This can only be done by aiquojuiations much more liberal than those nnide in the past. If one million of dollars for educational i)urposes given now will save several millions in the future, it is wise economy to give that mill- ion at once, and nt>t dole it out in small sums that do but little good. The more thoughtful and intelligent of the Indians comprehend ami ap- preciate the situation, anil are anxious to put themselves in condition to meet the neworr of things which they see is certain to come, and which will either elevate tliem in the scale of being, or exterminate them. Chief Keokuk, son of th(^ celebrated chief of that name, said to one of oursi)ec'al agents only a few days ago, " We want schools, churches, and laws, to nniUe our ]>eoi)le abandon the wild, roving lite of Indians, and become a settled, industrious, and peaceable i)eoph'." Within the last few months the Pottawatcmiie Indians have i)repared and submitted to the dejiartment for api)roval, a code of laws for their own government, thus clearl.\ indicating t hat the thoughts of the Indians are being turned in the right direction. 618 PAPERS ACCOMPANYING THE UNJTTST DISCRIMINATION BETWEEN INDIAN TRIBES. I called atteutioii in my last report to the fact that the Indiana who obey law and try to Iish any good anil be almost certain to give niuch trouble. The last Indian ai)propriation act simply legislated agents out of ofliee on .lune 30, 1882, made no i)rovisionsfor their salaries or expenses until such consolidation should be completeose should be ailded to the appropriation for contingencies of the Indian service. 620 PAPERS ACCOMPANYING THE ISSUES OF RATIONS. In accofdanco with suftgestioiis made by some members of the Com- mittee on Appropriations at the hist session of Con^*ess, I decided at tlie commencement of the presimt fiscal year to have the supplitis pnr- cliased for Indians under existin^j; appro])riations divided into fifty-two parts, and instructed agents to issue one lifty-second part eacjh week, so that the amount appropriated for shouhl last to the end of the tiscai year. The following is the text of the instructions issued : In pnrcliasiusi these supplies tho funds appropriated by Congress for the fiscal year 18b3 liave beeu exhanstcil, I'eservinjf only sufficient for the purchase of animitj' and other jroods estimated for by yon, pay of employees, and such incidental expenditures as may arise dnrin<^ the year. Yon are therefoie directed to divide the above-named supplies by tho number of weeks (52), and issue only one fifty-seci,000 wisely given by Congresss at the last Kession for the «Miq)loyment of clerical labor for a special purpose was not trammeled by any restriction as to the com])ensation which shouhl be paid to clerks, and as a consequence I am able to say what could not have been truthfully said in the last ten yeais, to wit : Tliat there are no agents' accounts unsettled in this oliice outside of the present liscal yeai-. DEFICIENCIES IX APPKOPKIATION«. The funds ai)propriated by Congress in the regular api)ropriatiou bill for the support of the Indians during the liseal year jtrovecl to 1x3 en- tirely insuiUcient, mainly owing to the high price of beef and tlonr; and had it not been lor the additional api)roi)riation in the sundry civil bill of 6U(tO,UOO for the i)urchase of beef, and $L'r>,()UO for the sui)|")ort of the .Ticarilla and 3Iescalero Apaches, this oilice would have been greatly end>arrassed and serious dillieulties been the result. The amount ap- propriated for the subsistence of the Sioux nnder agreement made Feb- ruary 1*8, 1S77, was insnflicient by 8"'<>o,(»(H). Article o of this agree- ment provides for fianisUing cucli ludividuid with a daOy ration of li I 622 PAPERS ACCOMPANYING THE lioiMids hiH'f, oiK'-lialf pound of flour, one-liulf i)Ounoi)ulation: States aud Territoriea. Arizona ('uliforiiia Colorado 1 )akota Idaho . Indian Territory ludiau Territory (5 civilized (ribes). Iowa KiinsHH >rifhi-au Jliiiui'Hota Montana . Nebraska (ineliidiiif; 201 attached to Kansas agepcy, but still living ii) Nebraska). Nevada New Mexico New York ( )re;;ou Texas. Utah WashJDjrtou Territory . "Wiscoii.iin Wj-oniiu^ Total number of agencies and number of Indians at agencies. ^2P I. Si 14,241 11.013 92.'. 30,117 3,652 18. Ml 59, 277 3.=i0 «Xi 9, 795 4,2« IH, 705 4,014 7, Ki\ '2S, 527 .■>. 1 16 4. .ViO JO'S 5,371 13,28fi 7,7.^; 1,782 24^ 932 ^Indians in charge of a military officer and not on a reservation. To this shoultf bo added those not under control of agents, living principally in the Teirit(n-ies of Arizona, Idaho, and Utah, and the States of Calilbrnia, Indiana, Kan.sas, North C^antliiiii, Oregon, and Wi.qconsin, numbering 15,4:81, making total number of Indians in the United States, exclusive of those in Alaska, L*OL',;iG(>. LIQUOR IN THE INDIAN COUNTRY. The sale and use of lirpior has been brought before the public so long ;js the chief cause of ])overty and (iiiine, that when it is state*! that neurly all the serious crimes committed in the Indian c<»untry art< traceable directly to the selling and drinking of wliisky, the statement is accepted as trnlii, as a matter of course. It i)rovokes no comment, and apjVears to have little etfect on legislation. Yet, to-day, whisky is the one grejiL curse of the Indian i^ountry, the j»rolitic source of disorder, tumult, crime, and disease, and if its sale could be utterly pn»liibite were i)unished by fine, 30 by im])iisoument, and 31 by imprisonment and line. The fines varied from $1 to $12r>, and the terms of imi)risoumcnt in jails, houses of correction, and penitentiaries, from one da> to 3 years and a, half. Only 7 were imprisoned for a year or over, and the average term of the others was i)>^ days. The average line was $32. The tendency of the law to bear theliardest on the weakest party was well exemi)li(ic'(l among the Indians of the State of Xew York, where 3 white men were fined •'52(), $30, and 87.5, respectively, for selling licpior to Indians; and for the same oflense an Indian was sentenced to 30 days in prison and a fine of $100. A table showing prosecutions and penalties in detail, will be found on page 37.5, herewith. Much larger results could have been secured if the olticehad funds at its command to cover the expense of detecting liquoi- selling, making arrests, sending witnesses to court, «S:c. For this purpose I urged last year an ap])roi)riation of $3,000, wliicii was granted in the Douse but failed in tlie Senate. Whatever dillerence of opinion may exist as to the use of wliisky by wliite men, there is but one opinion as to the mis- chief and danger of its use by Indians, and 1 can see no reason why the small amount asked sliould not have been granted. 1 trust that Con- gress at its next session will show sonu^ interest in the matter, and some readiness to assist the ofQce in its single-handed light against this evil. LEGISLATION REQUIRED. Intruders on Indian lands. — In my last annual report I drew atten- tion to the insuflieiency of existing lav's on this suWjet't. On the 20th of March last, the draugiit of a bill for the more adecpiate prevention of tres[>-isses on Indian lainls, previously prejjared in thisoffiee, was tians- mitted by the, Picsident to Congress for consideration (House Ex. Doc. iJo. 145, 47th Coug., Istsess.) 40 Ab 626 PAPERS ACCOMPANYING THE This bill reads as follows : Be it enacted b;f the Senate and Hauae of Representatives of ihs United States of America in Congress assembled, That section twenty-one hundred and forty-eight of the Revised Statutes of tlio United States be amended to read as follows, namely : "Every person who without authority of law enters and shall be found upon^any Indian lands, tribal reservation, or lands specially set apart for Indian jjurposes, shall, for the first offense, upon conviction thereof, pay a fine of not more than five hundred dollars, and be in)i>risoncd at hard labor for not more than one year; and for every subsequent offense, shall, upon conviction thereof, pay a fine of not more than one thousand dollars, and not less than five hundred dollars, and be imprisoned at hard labor for not more than two years, nor less than oije year ; and the wagons, teams and outfit of such person or persons so offending shall be seized and rlelivered to the proper United States officer, and be proceeded against by libel in the proper court and forfeited, one-half to the informer and the other half to the United States, and in all cases arising underthis act, Indians shall be competent witnesses : Provided, however, That the provisions of this section shall not apply to emigrants or travelers peaceably passing through such Indian lands, tribal reservations, or lands especially set apart for Indian purposes, without committing any willful trespass or injury to person or property." I greatly regret tliat Congress took no action in this matter. The urgent necessity for an amendment of the law is again apparent in the attempted settlement in the Indian Territory by the so-called "Okla- homa Colony," under the leadership of D. L. Payne, which has twice been repeated during the past year; first in May last, when Payne with a party of followers was arrested in the Indian Territory by the military, and afterwards released on the Kansas border; and more recently, in the latter part of August, when, with a party consisting of seven men and two women, and aA outfit of wagons, horses, &c.,he was again capt- ured by the troops whilst endeavoring to effect a settlement at Okla- homa. Upon this last occasion, refusing to go out of the Territory peacefully, the party were disarmed and taken to Fort Reno as prisoners. Upon the recommendation of this department, they were turned over by the military to the United States civil authorities at Fort Smith, Ark., by whom, it is reported, they have since been released to appear at the November term of the United States court for the western district of Arkansas, to answer to civil suits for the recovery of the prescribed penalty of $1,000, which is the only redress the existing law provides. The result will probably be judgments against them by de- fault, which will be and remain uncollectible. It is surely time that this farce which has now been going on for three years or more, should cease. If Congress will give us a law (such as has been laid before it) providing for imprisonment in addition to fine, for each offense, these periodical invasions will be less frequent, if not altogether stopped, and probably much distress will be avoided to in- nocent parties who have been deluded by vague promises held out to them. Timber depredations on Indian lands. — The necessity for legislation to protect the timber on Indian lands has been repeatedly and forcibly urged in prior annual reports of this office. In my last report I adverted to the wholesale destruction of timber in the Indian Territory, and the disastrous climatic effects which it is apprehended will ensue unless the evil is arrested. At the last session of Congress a bill (S, 1646), prepared in this office, extending the provisions of section 5388 of the Revised Statut«»s of the United States for the protection and preservation of timber to Indian lands, passed in the Senate, but was never reached in the House. It is hoped that Congress will take up this bill at an early date. Laws for India7is. — For years past urgent appeals have been made by this office for such legislation as wiU insure a proper government of the REPORT OF THE SECRETARY OF THE INTERIOR. 627 Indians, by providinfj tlmt tlie criminal laws of the United States shall be in force on Indian reservations, and shall apply to all offenses, in- cluding those of Indians against Indians; and by extending the juris- diction of the United States courts to enforce tlie same ; in short to make an Indian as amenable to law as any other subject of the United States. From time to time various measures looking U) this end have been in- troduced in Congress; l)ut from some cause or other — lack of time or of proper appreciation of the inii)ortance of the subject — they have invari- ably fallen throngh, so that to-day the only statutes under which In- dians are managed and controlled are substantially those created in 1834, known as the trade and intercourse laws, whose main purjjose was to regulate tratlic in furs and prevent saleof amnumition and intoxicating drinks and intrusion upon an Indian reservation. As civilization ad- vances and the Indian is thrown into contact with white settlers the authority of the chiefs proportionately decreases. It is manifest that some provision of law should be made to supply this deficiency and pro- tect Indians in their individual rights of person and property. At the same time, the Indian should be given to understand that no ancient custom, or tribal regulation, will shield him from just punishment for crime. The imi)ortance of this subject has been so frequently enlarged upon in the annual reports of this office for years past that it seems almost sui)ertiuous to add more ; but at the risk of being considered prolix I herewith append an extract from a letter on file in this office from Agent Wilbur, of the Yakima Agency, Washington Territory, an officer of over sixteen 3-ears' experience with the Indians. Under date of March 10 last, he sa^'s: Another, and at tliis agency, perhaps, eqnally impoi-tant matter, is the extension of the Ujiited States law over the reservation. Possibly the situation here has brought this matter more forcibly to my attention than to most agents. Just off tlie reserva- tion, on one side, is Yakima City, and on the other Goldendale, and our Indians are often there for ])urposeH of trade. When there they find themselves subject to a law dilferent from that on the reservation; a law prompt and swift to punish, but power- less to protect them. They witness its administration, and place a far higher value on it than on the decisions of their councils, and cases have occurred where Indians, thinking themselves a^tgrieved by the adverse decision of their councils, have watched their opportunity, and, when their adversary happened iu town, have procured a re- trial of the case before the justice of the jjeace. It does not affect the case that the original decision was affirmed. The fact illustrates the higher value placed on the Unrted States law, and the desire of the Indians to bo judged by it. Some of the more unworthy Indians claim to have taken out "citizen papers," pay taxes, work the county roads, and, boasting that they are no longer under the jurisdiction of the agent or council, give themselves up to all manner of license, and before the police can reach and arrest ihem are across the line, and defy all reservation authority. It is plain that these things must be utterly destructive of all authority of the agent or council, and e(|nally ])l;iin that such a state of affairs cannot iinuh longer continue. Either all Indians should be pl;iced under the sole jurisdiction of the agent and the council, or all should be brought eqiially under the operation of United States law. On this point, othcers of the law, citizens, agent, and Indians are agreed, and it is strange that so obviously proper and neceaaary a measure has not loug since been adopted. Criminals and paupers have always existed^ and I know no reason why the Indian should not be cxpecteil to furnish Ins proportion of these classes; but I do claim that when satisfied that etiually with the white man he is secure in the possession of his home, and that the same law that judges and protects the white man throws its broad shield over him also, he will furnish no more than his proportion. At the last session of Congress, Uon. E. Willits introduced a bill (IT. K. 755) "to extend tlie jurisdiction of the district and circuit courts of the United States, for tlu' punishment of crimes on Indian reservations within the limits of any State or organized Territory, and for other pur- poses," which was referred to the Committee ou the Judiciary; but uo further action appears to have been taken. 6*28 PxiPKK.S ACCOMPANYING TIIK I aj^ain respectfully reeonimeTid that the attention of Congress be called to the subject, with a view to such legislation as it may deem expedient. In ref2:avd to the Indian Territory proper, a hill (S. 181) to transfer the jurindiclion from the westei'ii district of Arkansas and to establish a United States court in the Territory at Muscogee, Creek ifation, is now x^ending before Congress. BOUNDARY BETWEEN TBXAfe AND THE INDIAN TERRITORY. ' A bill (H. R. 1715) is now before Congress seeking to establish the North Fork of the Ked Kiver as the true boundary line between the Indian Territory and the State of Texas, instead of the South Fork or main branch, otherwise called the Prairie Dog Town Fork of the Ked Eiver. The tract of country in dispute is about Gf) miles long and 40 miles wide, probably over 2,000 square miles, and contains a large quantity of valuable land. The history of the question in disi)ute be- tween the United States and the State of Texas, which has been agitated for several years, will be found in a recent report of the Committee on the Judiciary, to w^hom said bill was referred. (See House Report Xo. 1282, Forty-seventh Congress, first session.) This report concludes as follows : ; After a careful review of the facts in the case, for tho question as to which prong of the river is the true riVer is really a question of fact, your committee is decidedly of the oi)inion that the South Fork is the true boundary, and that therefore tho claim of the State of Texas is unwarranted. * » * * » If the data given in these reports are correct, there would seem to be no doubt of the claim of the United States to the tract in dispute, and therefore your committee report adversely to the bill referred to it. But inasmuch as the claim is disputed, and that with the earnestness of belief on the part of Texas, and inasmuch as none of the surveys referred to have been made with the privity of the State of Texas, the ioiut commission appointed liaving faik'd to act in concert, your committee is of the opinion that that State should have a hearing in the matter, and should have an opportunity to co operate with the United States in settling the facts upon which the questiou in dispute rests. A substitute is reported for the aiipointment of a joint commission, the passage of which is recom- mended. In view of the complications which are already threatened through persons claiming to exercise rights on the disputed tract under the jurisdiction of the State of Texas, as also the great influx of cattle lierds thereon, it is important that this question should be definitely' settled by Congress at an early date. "INDIAN COUNTRY." During the last session of Congress the ineaniug of the words "In- dian Country," as used in the Revised Statutes and other laws of the United States, was made a subject of inquiry by the Senate Committee on the Revision of the Laws. The attention of the Senate was called to the matter by a letter from Judge McCrary, addressed to Hon. G. F. Hoar, United States Senator, in which he stated that he had recently had occasion to decide that section 1 of the act of June 30, 1834, known as the "trade and intercourse act" (4 Stat., 729), was repealed by the Revised Statutes, and that if he was correct in this ruling there was no act of Cougress in force defining the meaning of the words "Indian Country," or the locality or boundaries of the "Indian Country." The committee concurred with Judge McCrary, and requested the \iews of the department and the preparation of a bill drawn to meet the require- ments of the public service. KEPOKT OF THE SECRETARY OF THE INTERIOR. 629 A report was i)repared by tliis otiice reciting the various acts of Con- gress relating- to the "Indian Country," and tbe decisions of the courts tliereon. Tbe conclusioii readied in tlie report M'as in accord with the decision rendered by Judge Hillyer, of tbe United States district court of Xeva(bi, in tbe case of tbe United States rs. Leathers (G Sawyer, 17), in which he held tbat section 1 of the intercourse law of 1834 was re- pealed by the lievised Statutes, and that the words "Indian Country" referred to the portions of the public land allotted to the use and occu- ])ation of the Indians. There seemed, therefore, to be no occasion to anticipate the difiQculties feared by Judge McCrary. A bill was prepared, however, for the use of the committee, if they re- garded any legislation as necessary, which provided that — Tlie words "Indian Country," as used in chapter four of title twenty-elgbt of the Revised Statutes and other laws of the United States, shall be construed to apply to and include the following classes of Indian reservations, viz: Lands to which the original Indian title has never been extinguished, but which have not been specifically reserved by treaty, act of Congress, or otherwise, for the use of the Indians; lands ex- pressly reserved by treaty or act of Congress, or set ajiart for iho use of the Indians by executive order of the President of the United States ; lauds i)atented to Indian tribes; and lands which have been purchased by or ceded to the United States for the pur- pose of settling friendly Indians thereon. This bill was favorably reported by the committee as Senate bill 2100, with the following words stricken c^it: "lands to which the original Indian title has never been extinguished, but which have not been specifically reserved by treaty, act of Congress, or otherwise, for the use of the Indians, or for other purposes," for the reason, as stated in the report, that they believe that there are no such lands in the United States. (See Senate Report ^o. 773, Forty-seventh Congress, first ses- sion.) This clause was intended to cover the lands in Dakota occupied and claimed by the Turtle Mountain band of Cbippewas. i!so further action appears to have been taken upon the subject. RIGHT OF WAY FOR RAILROADS THROUGH INDIAN RESERVATIONS. Arizona Southern Railroad — Fapago Reserve, Arizoyia. — On the 21st April last, tbe Arizona Southern llailroad Company, engaged in build- ing a line of railroad from Tu{;son, Arizona, to the Mexican border line, some ten miles south of Calabaz, made an informal agreement with Chief Ascension Kios, on behalf of the Papago Indians, for a right of way 200 feet wide front north to south through tbe Papago Ileserve, covering a distance of about eight miles. For this concession the com- pany agreed to erect, witliin the reservatioii for tbe use of the Indians, a school bouse of adobe, to cost $3,000. Ui)on submission of this agree- ment to the department, you directed tbat, since the reservation was created by Executive order, an«l hence was excepted from the i)rovisions of tbe right-of-way act of March 3, 1875, the company should first obtain the tiuthority of Congress for a right of way before taking any further action in the matter. By act of Congress ni)i)roved August 5, 1882, a right of way not ex- ceeding 200 feet in width through the Papngo Indian Reservation was granted to the Arizona Southern Railroad Company, according to tbe plans of route and survey of the said company, now on file in this de- partment and approved by the Secretary of the Interior, subject to the consent of the Indians occupying said reservation and to the payment by said railroad company to the Secretary of tbe Interior of such com- jKMisation as may be lixrd by him, to be expemb'd by him for the benefit ojt' tbe said Indiatis. Measures are now being taken to carry out the pto visions of the act. 630 PAPERS ACCOMPANYING THE Denver and Jiio Grande Railroad — Ute Reserve in Colorado. — On May 12, 1880, in accordance, Avitli tbo provisions of the treaty of March 2, 1808, with the Ute Indians in Colorado, the President issued his i)roclar matioii authorizing' the Denver and Kio Grande Eailroad Company to construct its line of railroad, with extensions and branches thereof, through the Ute Ileservation. On April 22, 1881, information having reached tliis oilice that the Indians were becoming restive at the pres- ence of the working force of the railroad, and had threatened to stop the work until compensation was made to them for the lands taken, I reported the facts to the department, and on May 3, following, the president of tlie company was notified by your predecessor to stop the construction of the road until the consent of the Indians had been ob- tained and proper compensation made to them. No attention was paid by the company to this notice. The road has been constructed and is now in operation, and the question of compensation still remains open. In his annual report to the President your predecessor held that the Indians were entitled to compensation for the occupancy of their lands by the company, and recommended that suitable action be taken by Congress looking to an adjustment of the rights of the respective par- ties. (See annual report of Secretary of Interior for 1881, p. X.) No action, however, appears to have been taken by Congress in the matter. In view of the provisions of tlie act of Congress of June 15, 1880 (21 Stat., 199), ratifying the agreement made with the Utes for the sale of their reservation ; their subsequent removal, and the provisions of the act passed at the last session, approved July 28, 1882, declaring all that portion of the Ute Eeservation lately occupied by the Uncom- pahgre and White Eiver Utes to be public lands of the United States, and subject to disposal in accordance with the provisions of section 3 of the said act of June 15, 1880, I have the honor to submit for your consideration what action, if any, shall now be taken in the premises. Chicago, Milwaukee and Saint Paul Raihcay — Sionx Reserve in Da- kota. — Since the preparation of my last Annual Eeport, the Chicago, Milwaukee and Saint Paul Eailway Company has paid into this de- partment, for the use of the Sioux Indians, the sum of $13,911, partial payment for right of way, depot and station grounds, required for the purposes of the road upon the Great Sioux Eeserve, west of the ]\[issouri Eiver, in accordance with the terms of the agreement of November 2, 1880, and has been authorized to proceed Avith the construction of the road. The balance of the consideration money agreed to be paid for the right of way is payable after the company shall have constructed 100 miles of road upon the reserve. The company has also definitely located the section of 640 acres re- quired for depot purj)oses, on the west bank of the ]\Iissouri Eiver, in- cluded in the above-mentioned purchase. By supplemental agreement of November 10, 1880, the company agreed to pay for all improvements of individual Lower Brul6 Indians falling within the limits of said sec- tion sucli amount of compensation as may be awarded by a commission to be appointed by the Secretary of the Interior. Steps are now being taken to perfect the list of Indians who are entitled under this agree- ment, with a view to an adjustment of damages in manner provided. This company has also definitely located a tract of 188 acres for dei)ot purposes, &c., on the Crow Creek Eeserve, east of the Missouri Eiver, as provided for by the agreement of November 13, 1880. It has also tiled a map of its road as constructed througli the Crow Creek Eeserve, under the terms of said agreement. The total consideration money payable in resi)ect of laud so taken on the Crow Creek Eeserve is $1,424.76, REPORT OF THE SECRETARY OF THE INTERIOR. 631 which the company is ready to pay. The maps are now before the de- partment for approval. Dakota Central Raila-ai/ — Sioux Reserve in Vahota. — Tlie Dakota Cen- tral Eailway Company lias dcliiiitely located the .section of land at Fort Pierre, on the west side (»f the ^Nlissonri Jiiver, j;ranted nndcr the a^^ree- ment with the Sionx Indians June 12, 1880, and has i)aid into the de- I)artment, for the u.se of said Indian.s, tin* sum of .■i:;3,liO(), as consideration money therefor. It has also ]»aid to the roposition to the Indians in council as.sem- bled, and that greatly to hia suriirise they had almost unanimously voted against it. Sidj.sequent advices from the agent seem, however, to indicate that the Indians acted under a misapprehension, and that they will reconsider their determination this fall. Utah and 2\orthern Railroad — Shoshone and Bannack {Fort Hall) Re- serve, Idaho. — Pcference was made in my last annual repoit to an agreement which had been entered into with the Shoshone and Bannack Indians of Idaho for the extinguishnu^nt by the government of their title to so much of the lands of their reservation as are recpiired for the purposes of the Utah and Northern Pailroad Company in the construc- tion of a road from east to west through the I-'ort Hall Keserve. By this agreement, which is dated July IS, 18S1, the Shoshone and Paunack Indians ceded to the United States a strip of land cxtcuiling froin east to west through their reservation, to be used by said railroad compaTiy asarightof way and road bed, containing 070 acns. or thereabouts; also certain plots of land for dc])ots. stations, &(•., containing about 102 acres. For this cession the United States agreed to pay to the Shoshone and Bannack Indians $0,000, or about $7.77 per acre, to be deposited in the United States Treasury to the credit of said Indians, upon ralilication 632 PAPliliS ACCOMi'ANYlNG THE of the agreement by Congress and necessary appropriations therefor, and to bear interest at 5 i)er ceut. This agreement was ratified by act of Congress approved July 3, 1882, section 3 of wliich provides ibr the grant of right of way and the use of the })lots of hiiid so relim]uished to the Utah and Northern liailroad Com])any, its successors and assigns, for the purposes set forth in the agreenient, but requires the coujpany, as a condition i)recedent to the use of the hinds, to pay to the Treasurer of the United States, %vithiu ninety days from the passage of the act, the said sum of 80,000 thereby ap])ropriated, and to file with the Secretary of the Interior its written acceptance of the conditions of said section. These requirements have been complied with by the company, and I am informed by the Secre- tary of the Treasury that the 60,000 have been deposited with him. The Utah and Northern liailroad Company has since assigned its rights ac- quired under said act of Congress to the Oregon Short Line Kailway Company. Atlaiitic and Pacific Railroad — Indian Territory. — Under authority of an act of Congress approved July 27, 18GG (14 Stat., 292); the several treaties negotiated during the same year with the Cherokees, Creeks, Choctaws and Chickasaws, and Seminoles, providing for an east and ■west and a north and south railroad through their respective countries ; and the decision of Hon. Secretary Cox, dated May 21, 1870, approved by the President May 23, 1870, and the decision of your immediate pre- decessor in office, dated March 31, 1882 ; the construction of the At- lantic and Pacific liailroad westward from Vinita, Cherokee Nation, through the Indian Territory, which had been susi)ended for some years past, has been resuined. Under date of March 27, 1882, the company entered into an agree- ment with the Cherokee Nation for the purchase of materials required in the construction and repairs of the road in the Cherokee country, under the provisions of the Cherokee laws in relation to such purchases ; also for the settlement and adjustment by the courts and laws of said nation of all questions for damages to property. The company has also filed a new bond of same date in the sum of 8500,600, payable to the order of the Secretary of the Interior, in trust for the several nations and tribes of Indians owning or occupying the lauds of the Indian Ter- ritory, conditioned for the faithful performance of the obligations im- posed on said company by the act of Congress of July 27, 1800, and in other particulars for the protection of the Indians. Bond and agree- ment "were approved in the deijartinent April 3, 1882. The act of Congress, July 27, 1800, authorizes the Atlantic and Pacific Eailroad Company to construct "a branch from the point at which the road strikes tlje Canadian Elver eastwardly along the most suitable route as selected, to a point on the western boundary line of Arkansas at or near the town of Van Buren." The map of location of the branch roati from the point on the main line at which it strikes the Canadian Eiver, eastwardly to Van Buren in Arkansas, shows the line of route to be as follows : From its junction with the main line as above, down the Canadian on its north side to where it empties into the Arkansas River; cx'ossing the Arkansas and running down said river on its north side to Van Buren; in its route passing through country occupied under Execu- tive ortler by the Cheyenncs and Arapahoes, through the reservation of the Pottawatomies, and through the Seminole, Creek, and Cherokee countries. Your predecessor held that should the branch road be built on the line of location as laid down on the maps, there would then be two east and west roads tlirough the Creek and Cherokee country, which KEPORT OF THE SECliETAKY OF lUJi l.NTLEIOK. 633 would be in Tiolation of the treaties witb tliose Indians "which provide lor but one east and west and one north and south road throuiuion that shouhl the branch . road be built, it should not be allowed to cross the country of the Creeks or of the Cherokees, but should have its line, so far as tliose countries are concerned, south of the Canadian and Arkansas Kivers. On the 10th August last the Atlantic and Tacitic IJailroad Com])auy, through its general solicitor. General Williamson, api>lied to this oflice, stating that the road had been coin])leted from Vinita, through the Cher- okee and Creek country, to a i)oint near the Arkansas Kiver, which would be township 19 north, range lli east, if the surveys were extended; that the company had carefully surveyed the line of main rt)ad so laid down on the map of definite location, and finding many engineering difli- culties to contend with, asked permission to explore the country south of the line located for the purpose of gaining such information as would enable it to contrast the cost of constructing and maintaining a road ou a more southern route with the cost of constructing a road along the Cimarron Eiver, and with the ultimate intention of laying the facts and figures before the department, with a view to procuring a ruling upou the question as to the exact line upon which the company should build its road, if any doubt should exist as to where it might build. The request appearing reasonable, permission to make the necessary explorations through the country designated was granted, subject to the consent of the Indians, viz, the Greeks, iSacs and Foxes, and Chey- ennes and Arapahoes, through whose lands the exploring party would necessarily ])ass, and General Williamson was so notified by office letter of August 31, 1882. The several agents for these Indians were at the same time directed to consult with them and endeavor to procure their consent to the passage of the company's employes through their lauds for the purposes indicated. The Cheyenues and Arapahoes who, in November, 1881, seriously objected to the construction of the road have readily assented. The Creeks and Sac and Fox Indians have, as yet, taken no definite action in the matter, but it is not api^rehended that any serious objection will be interposed. Saint Louis and San Francisco Railroad — Choctaio and Chiclasaw country, Indian Territory. — On the 2d of August, 1882, Congress passed an act granting a right of way to the Saint Louis and San Francisco Kail way Com])any for a railroad and telegraph line through the laiuls of the Choctaw and Chickasaw Nations of Indians in the Iiuiiau Territory, commencing at a itoint to be selected by the company on the line of the Choctaw Naticn, immediately contiguous to Sebastian or Scott Counties, in the State of Arkansas, and running thence in a southwesterly direc- tion on the most direct and practicable route through the lands of the Choctaw and (Jliickasaw Kations in the diiection of Paris, in tlie State of Texas, and to contiiuie to or connect with a [jroposed road from the city of Paris afoiJ'said. This grant is m;idc subject to the condition that the said railway company shall pay quarter-anriually to the national treasurers of said nations, every year during the existence of the rights and ]>rivileges granted, to be usi-d for the benefit of schools therein, the sum of STjO, in the proixution of one-fourth to the Chickasaws and three-fouiths to the Choctaws, with a proviso that if the general coun- cils of said nations, or either of them, shall, within sixty thiys after the passage of the act, by resolution duly adopted, dissent from the allow- ance provided for, and shall re])ort the same to the Secretary of the Interior, then the compensation to be paid for the uses and grants in the 634 PAPERS ACCOMPANYING THE act made for such dissenting tribes shall be determined by appraisers to be appointed as in said a<5t mentioned. The act, wliieii is quite lengthy, provides for the cojnpletion of the road and tclegiaidi within two years from the date of acceptance by the company. It also contains various clauses and stipulations for the pro- tection of the Indians, and declares that failing certain conditions therein prescribed, the said company shall forfeit all rights thereunder, which, upon declaration and consent of the Secretary of the Interior, shall inure to the Chicago, Texas and Mexican Central Eailway Company upon like conditions as in said act mentioned; and upon its failure to comply therewith, then the privileges granted to the Saint Louis and San Fran- cisco Eailway Company shall apply to any other incorporated comjiany that shall have first obtained the approval of the President of the United States. Northern Pacific Railroad — Crmo Reserve, Montana. — By an agreement dated August 22, 1881 (also referred to in my last annual report), the Crow Indians surrendered to the United States all their right, title, and interest in and to a strip of land 400 feet wide, extending from east to west across their reservation, containing about 5,384 acres, to be used by the Northern Pacific Eailroad Company as a right of way and road bed; also certain plots of land, aggregating 266 acres or thereabouts, for depot and station purposes. For the lauds so relinquished the United States agreed to pay to the Crow Indians $25,000, to be deposited in the United States Treasury to the credit of said Indians upon ratification of the agreement by Congress and necessary appropriation therefor, to be ex- pended for the benefit of the Indians in such manner as the Secretary of the Interior may direct. This agreement was ratified by act of Congress approred July 10, 1882, section 3 of which provides for the grant of the right of way, and the use of the plots of land so relinquished, to the Northern Pacific Eailroad Company, its successors and assigns, for the uses and purposes mentioned in said agreement, but requires the company, as a condition pre- cedent to the user of the lands, to pay to the Treasurer of the United States,within 60 days from thei^assage of the said act, the sum of $25,000, thereby appropriated, and to file with the Secretary of the Interior its writ- ten acceptance of the conditions of said section. The acceptance above required has been filed in this oflice, but I have no information as to the payment of the $25,000. Northern Pacific Railroad, JocTco {Flathead) Reserve, Montana. — The Northern Pacmc Railroad Company having applied for a right of way through the Jocko Eeserve, in Montana, occupied by the confederated tribes of the Flathead, Upper Pend d'Oreilles, and Kootenay Indians, un- der the treaty of July ] 6, 1855 (12 Stat., 975), Assistant Attorney-General McCammon was detailed by you on the 22d July last, to jiroceed to the Flathead Agency and negotiate with the Indians, under the treaty and acts of Congress in that behalf, for the extinguishment of their title to so much of the lands of their reservation as are required for the pur- poses of the Northern Pacific Eailroad Company for the construction of its road westwardly, through that reserve, according to certain plans filed by the company in this department. Mr. McCammon has not yet filed his official report, but I am informally advised by him that he succeeded in negotiating an agreement with the Indians, by which the lands necessary for a right of way 200 feet wide, and extending a dis- tance of about 53 miles across the reservation, with suitable grounds for station ijurposes, are relinquished to the United States upon pay- ment of $16,000, this sum to be deposited in the Treasury of the United REPORT OF THE SECRETARY OF THE INTERIOR. 635 States to the* credit of said confederated tribes upon ratification of tl»e a.irreenient l»y Congress, and to be ex]»cnded for the benetit of the Indians in snch manner as the Secretary of the Interior may direct. Provision is also made for tlie ])ayment of $7,500 for improvements of individual Indians of said tribes falling within the boundaries of the lapds so relinquisheresentatives of persons deceased. These, re- quiring the action of the courts, took moie time, but I am now per- suaded that all will be completed in a few days. I may here call atten- tion to the faithful manner in which Agent Cowgill has discharged this arduous and resixmsible duty. IS^ot withstanding the numerous per- plexing questions involved, and the well-known readiness of designing whites to take advantage of any oversight or tiaw in the dealings of the agents of the government with the Indians, whereby they might hope to reap some advantage to themselves, no expression of dissatis- faction has reached .this office from any of the Miamies, and I believe strict justice has been done. Although this mojiey was due to the ]\Iiamies by treaty on the 1st day of July, 1880, no action was taken toward ])roviding for its payment until March 3, 1881. The interest, however, for the year 1881, although not provided for in the treaty, was paid to them, and this was satisfac- tory; but as th^'. payment of the principal was still deferred for at least six months, during the fiscal year 1882, without fiinlt of theirs, they consider themselves, through the precedent of having been paid for 1881, and in equity, entitled to additional interest. This they are the rather disposed to expect as they ai)i)ear to have heard of the appro- jiriation made for ])aying them for tlie full fiscal year 1882, which still remains on the books in this otfice. It therefore seems uecessar\' that REPOET OF THE SECRETARY OF THE INTERIOR. 637 some further action be taken in the case to finally settle it, either by allowing them a part of the money, say interest for six months of the year 1882, or by covering the whole amount back into tlie Treasury. Winnehaf/oes. — Circumstances have prevented my fully carryiiifc out the provisions of the act approved January 18, 1881, for the benelit of these Indians. The clerk who was detailed fiom this olUce to take a census of those in Wisconsin was i)revented through the interfereuce of some meddlesome whites from completin<; it as quickly as had been anticipated. No ap])ropriation had been made to meet his expenses, and but a very limited amount could be spared from the continj;ent fund of this department for that jmriiose, and wlicn this was exhausted, in December last, he was compelled to al)aurivate families LieuttMi- ant Pratt proposes to reduce expenses and enlarge accommo«lations so that he can care for 380 pupils. He will also depend on the continued liberality of friends of the Indian, mIio have given substantial ])roof of their intected that the majority of them will return to Carlisle this fall for further instruction. For this the most worthy and promising will be selected, and especially those whoso 41 Ab 642 PAPERS ACCOMPANYING THE moral stamina lias stood the tost of the temporary return to the old as- sociations and d('<;radations. Though tlie record of the students who retuj-ned last year from JJam])ton has been in the main satisfactory, yet it is ai)i)ar('nt that to return immature youth to heathen homes after only three years of training umler specially favorable conditions is a hazardous ex[)eriment. Justice to the child as well as economy in the service require a supplemental course of at least two years, during which the seed sown may have opportunity to take deeper root. Here- after parents will be expected to surrender their children for five in- stead of three years. Industiial work at Forest Grove has met with unusual success. The blacksmith and shoe shops have netted $772 to the school. The ap- ]>renti(es to the carpenter have put up two 2-8tory additions to the dorinitorieSj 32 by 32 feet, and two smaller additions, 25 by 36 and 14 by 28, besides making- furniture for the school and attending to necessary repairs. The renting of 45 acres furnishes an opportunity for practical lessons in farming, while several of the boys have been employed in the harvest field by farmers in that section. Lieutenant Wilkinson reports : The local press of the country uotes the fact that without the help of the boys of the luflian school some of the farmers of this section would have had great trouble iu harvestiug their crops. Oue paper has raised its warning cry for the protection of white labor as against Indian. The boys have worked side Ijy side with the white man, earned the same wages, and this in a section of country where it has always been claimed tlie Iiulian would not work. As Stated last year the great need at Forest Grove is the purchase ot land which shall be the property of the school. Injustice has been done this school by the wording of the appropria- tion for its support, which limits the amount to be paid for the care and support of the pupils to $200 per capita per annum. Expenditures can be reduced to this figure, but it will be at the expense of the best in- terests of the pupils in attendance. Bnildimis. — Nine new boarding-school buildings have been occupied during the year, and in nine more new buildings schools will be opened this fall. The office has thus been enabled to open boarding schools for the first time among the 27,105 Indians of the five agencies already named, and also among the Yankton Indians; that tribe, however, has not been wh(flly deprived of boarding-school facilities hitherto, for the reason that the remissness of the government in that respect has been partially atoned for by the Episcopalians, who, for many years, have maintained there a flourishing boys' boarding school. The buildings to be occupied this fall will provide for the opening of boarding-schools for the first time among the 9,412 Indians of the Xevada, Umatilla, Blackfeet, and Warm Springs agencies, among the Snake Indians at the Yaiuax subageucj' in Oregon, and among the Poncas in the Indian Territory, who, since their removal thither, have had only a small day school. Arrange- ments have been made for puttingup ten newbuildings during the coming season to give new schools to the Pine Eidge, Eosebud, and ]\fescalero agencies, to replace the Wichita Ixiilding, destroyed by fire in December last, and to give proper accommodations to five agency boarding schools that are now carried on at great disadvantage in rented buildings or in houses which, by dilapidation, unsuitable and inconvenient arrangement of rooms, and restricted limits, have become each year less and less adapted to the purpose for which they are used. Children who shiver in rooms ceiled with canvas, who dodge the muddy drops trickling through worn-out dirt roofs, who are crowded in ill-ventilated dormitories, who recite in a single schoolroom, three classes at a time, and who have no REPORT OF THE SECRETARY OF THE INTERIOR. 643 suitable sitting-rooms nor bath-rooms, are not likely to be attracted to or make rapid advancement in education and civilization. But inade- quate and delayed appropriations have necessitated the continued use, lor school puri^oses, of buildings which long ago should have been con- demned as unserviceable and even unsafe. The more generous treat- ment which Indian education received from Congress at its last session Avill do much toward remedying this unfortunate state of affairs. Appropriations. — The legislation of Congress at its last session, in re- gard to Indian education, marks a new era in Indian affairs. The first appropriation, not required by treaty, made for the support of Indian schools, was $20,000 in 18-7C. From that time it gradually increased until, in 1881, it reacheils so great a distance fioni the Indian cojintry, and the severe cHniatic-elianges to Mliicli it subjects them, have shown the desirability of »'stablishing similar institutions in the region of the ^lississippi Piver. This is now made ejitircly practicable: by the legislation above referred to, and by another a<;t which provides for turning over to the Interior Department, for Indian school i»urpuses, buiUlings belonging to vacated military posts. A long unheeded recommendation of this oflice for the appointment of an inspector of schools received favorable action by Congress at its last session. Through his personal sujjcrvision and ius[)ection the school work can be doubled in elliciency and thoroughness, and symtan in Indian edu(;ation becomes possible. While providing for increased school facilities over nearly the whole Indian country, Congress by special legislation cut ofl" all government G44 PAPERS ACCOMPANYING IFIE Nclinols iVoiii tlio 2,000 Moquis Tucblos in Arizona. In the last Indian appropriation act is the lblk)winj? chiuse: For tlio payof apcnl * * *■ at tlip Moqtiis I'noldo n^^cncy, vlio slirill also perform tho orted: (1) Appropria- tions made in fulfillment of treaty i)rovisious which pledge either the payment annually of a specific amount for education or the support of specified schools. (2) Appropriations made solely for education, but made as a gratuity and not under treaty. (3) Appropriations made for general civilizing purposes, either in fulfillment of treaty obligations or as a gratuity. To these has been added in the past a civilization fund (not appropriated); but that, as already stated, is now exhausted. The subjoined table shows approximately the amounts which have been expended under each of these heads for Indian education during the past six years :* 1877. 1878. 1879. 1880. 18S1. 1882. Appropriations made in fulfillment of treaty provisions which pledge either specific suras for educutiou or the siii)port of specified schools Expenditures for schools made from general funds a])proj)riated or held in trust for the support and civili>;;itiou of Indians Special ai $1,500,(100. This is a low (^stimate, and at the same time I have not taken into account the increased cost of giving Indian youth special training in schools remote Irom agencies. Meantiuie, before the cniolliueut can reach 50 per cent, of the school population, a large nuuiber of buildings must be erected and furnislied and liberal a]»])ropriations must be made thereibr. Only 8,700 ])ui)ils can be crowded into all tlui school buiklings now in use, and many of these buildings should be rei)laced by new ones. The cost of education duriug the past year has been, approximately, $411,538, in addition to the expense of rations and part of the cloth- iug used by pupils at agencies where rations and goods are regularly issued to all the Indians on the reservation. The api)roi)riatii)iis for education for the current year, in addition to ann)unts regularly ai)pio- priated in fullillment of treaty provisions, aggregate s48!>,400, ami the appropriation asked lor the fiscal year ending June 30, 1884, is $017,000. This sum is recjuired if the United States Government is to keep pace with its duties and opi)or(uuities in the matter of educating Indians. I have spoken of tlie ai)propriations from whieh sehools nuist here- fvfter be luainly supporteil as ''gratuities.*' It will, however, re(iuire very many and very large so-called "gratuitous"' appropriations to pay 646 PAPERS ACCOMPANYING THE the debt oC tlio ftovenuiient to ccrtiiin Indian tribes on account of un- fulfilled treaty obi ip:ationN. Jn gfcneral it may be said tliat where the treaty stipulated the payment of a certain annual sum for education, the i)romise has been kept; but where the support of certain schools ■was pledged without specifying the annual expenditure to be made therefor, the promise has been only partially kept. Belonging to the latter class are the treaties with the yioux, Navajo, Kiowa and Coman- che, Cheyenne and Arapaho, Shoshone, Molel, Walla Walla, D'VVamish, Makah, Quiuaielt, Quillehute, S'Klallam and S'Kokomish tribes, which have an aggregate population of G8,000. Some of the treaties with these tribes promised a school ibr every thirty pupils for twenty years ; others to establish and support manual-labor schools suflflcient to ac- commodate the school population of the tribes. I have not made an estimate of the extent to which the government has failed to fulfill its treaty obligations to these tribes from the date of the treaties uj) to the present time, but the following table shows the deficit be- tween the promise and the performance in theyears 1877 to 1881 inclusive : Total cost of buildings required to accommodate the school population of these tnbes, less such buildings as had been erected between the dates of the treaties and the year 1881 $334,000 Appropriations required to support the schools called for by those treaties : 1877 $486,000 1878 486,000 1879 486,000 1880 486,000 » 1881 371,250 2,315,250 2, 649, 2f)0 Amonnts specifically appropriated for the snpport of those schools : 1877 $44,880 1878 48,080 1879 46,580 1880 46,280 1881 34,080 §219,900 Balance due said tribes for the five years 1877-1881 2,429,350 Of course, the showing would be much more discreditable to the gov- ernment if the calculation had covered the whole period since the signing of the treaties, but the above figui'es show that the indebtedness of the government to a little more than one-fourth of its Indian population on account of its failure to provide schools promised by treaty, is so great that it will be long before any appropriations for education among these tribes can be considered as gratuities, or in any other light than a tardy payment of an old debt. ALLOTMENT OF LAND IN SEVERALTY AND A PERMANENT TITLE. ^ In the last annual report of this office this subject was treated at some length. Nothing in the experience of the past year has occurred to demonstrate the inadvisability of the plan, or to cause me to change my views upon the subject. I still believe that in a great measure the future well'are and prosperity of the Indians depends upon giving them a several interest in their lands, with such a title as will protect them and their children in the peaceful and quiet possession and enjoyment thereof. In my opinion this plan is one of the keys to the solution of the Indian question. As stated in my report of last year. "The allot- ment system tends to break up tribal relations. It has the effect of REPORT OF THE SECRETARY OF THE INTERIOR. 647 creating indiviiluality, responsibility, and a desire to accumulate ]»rop- erty. It teaches the Indians habits of industry and fruj^ality, and Ktiniulates them to look forward to a better and more useful life, and, in the end, it will relievo the government of large annual ai)i»roi)na- tions.*' All Indians may not at present be prepared to use to advan- tage lauds allotted to them individually. But many of them are, and uhere prepared for it, the Indian should have a home of his own, as the white nuiu has. In many of the treaties with these people no provision is made for the allotment of their lands. In others, which contain such ])rovisions, the amount is entirely inadequate to the wants and necessities of the Indians, being in some instances as low as twenty acres. A great many tribes occujiy reservations created by tlie President. There is no authority of law for the allotment of the lands within this class of reservations. Many of the reservations ui)on which there is autlnnity for a division of the lands in severalty have never been surveyed and subdivided, and in numerous cases where this has been done the monuments, stakes, and other marks of the survey have been destroyed and obliterated by the elements or otherwise, so that even where treaty stipulations au- tborizo allotments they cannot be made from this cause. The corre- spondence on the tiles of this oflico show that very many of the Indian tribes are clamorous for the allotment of their lands in severalty. Why not, then, encourage them in this advanced step towards civilization? Give the Indian his land in severalty. Let him feel his individuality and responsibility, and a sense of proprietorship. Encourage him to go to work and earn his living and provide for the future wants and neces- sities of himself and family, and abandon his shiftless, do-nothing, de- pendent life. Upon the subject of property, Malthus says: According to all past experience and the best observations wliicli can l»e made on the motives which operate upon the human mind, there can be no well-tounded hope of obtaining a largo produce from the soil but under a system of private pra]»erty. It seems perfectly visionary to suppose that any stimulus sliort of that which is excited in man by the desire for providing for himself and family, and of bettering his con dition in life, should operate on the mass of society with sullicieut force and constancy to overcome the natural indolence of mankind. All the attempts which have been made since the commencement of authentic history to proceed \\])nn a principle of common property have either been so iusignilicant that no inference can bo drawn from them or have been marked by the most signal failures; and the chaufjes which have been effected in modern times bj' education do not seem to .advance a single step toward making such u state of things more probable in future. We may therefore more safely conclude that while man retains the same jdiysical and moral constitution ■which ho is observed to possess at present, no other than a system of private projierty stands the least chance of providing for such a largo and increasing population as that which is to be found in many countries at present. These principles a])ply as well to the Indian as to the white man. So long as the government continues to feed the Indnin and encourages him in his lazy, indolent, vagabond life, just so long will large annual approjuiations have to be made out of the ])ublic treasury for that pur- pose. The government has before it the alternative of peri)etinilly sup- porting them as idlers anddrones, or of adojtting some measure looking to their education in nuininil labor and otiier inills ])ro\iding for allot- ments of land in severalty were introduced in the Forty-lift ii. Forty- sixth, and Forty-seventh Congresses, but no linal act ion has Ixhmi n>ached. It is to be hoped that Congress at its coming session will take some final and detinite action upon a subject that involves so nuu'h and which is of such vital im])ortance, not only to the Indian in his advancement and civilization, but to the general government. G48 PAPERS ACCOMPANYING THE INDIAN HOMESTEAD ENTRIP.S. I again invite attention to tlie necessity of lejjislation by Con, 187,1, extendinj^ to Indians the benefits of the homestead act of Mav 20, 1802 (now embodied in sec- tions 2290, 22'Jl, 2292, and 2295 to 2302'lievised Statutes), without the payment of the fees and commissions now i)rescribed ])y law in such cases. In my report for last year attention was called to the fact that, until a change is made in the law as therein recommended, it is of great im- j)ortance that the department should have at its disposal a fund that can be used for the payment of entry fees and commissions, and that an estimate for the sum of 85,000 had been submitted with that end in view. No appropriation for that purpose was made. I have again submitted an estimate for the sum of 85,000, and trust that Congress will either amend the law so as to allow Indians to enter homesteads without cost to them, or will make aijproiiriation of the sum estimated for. UNITED STATES INDIAN POLICE. Four years have now elapsed since the establishment of the United States Indian police service. Tried as an experiment, it has ]n'oved a decided success. It has accomi)lished all that was claimed for it, and at many agencies has become an absolute necessity. The police force "was organized in the summer of 1878, in accordance with an act of CongTess approved May 27, 1878, for the purpose simply of maintain- ing order on the reservations and of preventing the sale of liquor to Indians. Their actual duties take a much wider range. They not only take pride in keeping good order and in breaking up immoral practices, and in preventing the introduction of liquor, but they assist the agents in the discharge of many other important duties. They are ])roud of being considered United States soldiers, and are uniformly faithful and true to the government. Wearing the uniform of oilicers of the law, they have an educational influence over theii" associates the value of which cannot be estimated. The system is now in operation at forty agencies, the total force em- ployed being eighty-four commissioned oflicers and seven liundi'ed and sixty-four non-commissioned officers and privates. I would again invite attention to the small compensation allowed the officers and members of the police force. The character and require- ments of the service are such as to demand the very best men at the various agencies, but these cannot often be induced to serve for the small pay offered. I woukl recommend that commissioned officers be paid fifteen dollars iier month, sergeants ten dollars per mouth, and privates eight dollars per month. A much more satisfactory arrange- ment would be to invest the Commissioner of Indian Affairs with dis- cretionary power as to salaries, the ser^•ice at some agencies being of vastly more importance than at others. STOCK-CATTLE, WAGONS, AND FBEIGHTING BY INDIANS. From July 1, 1878, to June 30, 1881, there were purchased for the In- dians 13,2()4 head of stock-cattle. A detailed report of the number fur- nished each agency was given in my report for last year. From July 1, 1881 to June 30, 1882,'^stock-cattre ^vere purchased as follows: For Osages, 1,825 head; Poucas, 507 head; and Sioux at Sisseton Agency, 437 head. REPORT OF THE SECRETARY OF THE INTERIOR. 649 The number of wa;40ii.s purchased from July 1, lS77,to .Tune .''>(>, ISSI, was 3,558, aud duriiif;- the tis<;al year 1882 there were purchased aud ship- ped to ditfereut a^^encies 00.3 wajjons. luakiiip; a total of 4,103 waj^ons purchased for tlie Indian service in six years. A large number of In- dians successfully transport their goods and sui>plies from steamboat landings aud the terniinus of the railroads to their agencies, thereby earning considerable sums. Over $l.")(),0U0 were remitted during the fiscal year 1882 to agents for payment to Indians for trans])ortation serWces performed, of which amount the Cheyennes and Arapahoes earned 819,000, the Kiowas, Comanches and Wichitas 815,000, the Sioux of Pine Kidge $51,000, and the Sioux at Eosebud $33,000. The freight- ers are paid at the rate of $1 to $1.50 per 100 jtounds ju'r 100 miles, ac- cording to the condition of the roads over which the sup])li<'s are carried. The experiment was made this } ear of having the " wild Cixnvs in Mon- tana" transport their supplies from the steamboat landing (Huntley) to their agency, and it has so far proven a saccess. PURCHASE OF ANNUITY GOODS AND SUPPLIES. Owing to the late date when the appropriation bill for the support of the Indian service for the current fiscal year was passed (May 17, 1882) bids for the annuity goods and supplies required for the fiscal year 1883 were not opened in 2^ew York until May 23, last. The schedule of goods and supplies required comprised over 1,800 articles, and for furnishing the same there were received 341 bids at the opening in Xew York, and at the opening at San Francisco, on the 15th of August last, 27 bids wei-e received, making a total of 3G8 sealed bids received for furnishing goods and supplies for the present fiscal year; 207 contracts were exe- cuted, made out in quadruplicate, each one accompanied with a bond for the faithful performance of the same. The contracts in Xew York were awarded by me, with the assistance of the Board of Indian Com- missioners, and' the Hon. J. K. ]\IcCammon, representing the depart- ment, after the samples oftered with the bids had been properly exam- ined by insj)ectors appointed for that purpose. It is of the utmost importance that contracts for goods and supplies for the Indian service Ije let early in the si)ring,and I cannot too strongly urge ujjon Congress the necessity for the early passage of the appropri- ation bill for the Indian service. The amount apjiropriatcd for the dif- ferent tiibcs and bands vaiies every year, and the work of determining what supplies can be furnished cannot begin until after the ])assage of the ai)i)roi)riation bill by Congress. This work is one of great impor- tance, but, owing to the late date at which these bills are jiassed, has to be done hastily, at niglit, in order to enable this othce to ju^'pan; and have i>riuted schedules of all articles required. A large ])ropt)rtion of these goods and sui)plies are for agencies on the Missouri Iviver, and they have to be shi]»ped before the close of navigation, which occurs, on an average; not later than October 1. liacon purchased at these late lettingsmust be shipped during the hottest summer months, and of the 1,000,000 jiounds purchased every year, not less than 10 \wr centum is lost by shrinkage in transportation during the warm weather, making an annual loss of over sH^OOO on that article alone. The delivery, inspection, and shijuiu'nt of goods is mostly done in New York, in a warehouse rented for that ])urpose. There all goods are delivered, jtroperly marked with a nund)er which must correspontl with the number on the invoice of the articles furnislied; all invoices must be made out in (inadrnplicate, and must gi\'e the numbei', weight, and contents of each i>ackage charged for. After del i\ cry of the goods, 650 PAPERS ACCOMPANYING THE the.v are iii.spccted l>y a ixm'soii jqtpoiiited lor tliat jaii-poso, and cacli jiacka^c stamped by tlio iiispcctor with liiis name. A <*oi)y of each iii- voicG is I'oiwarded l)y iirst mail to the a^eiit lor wiiom the j,^oores8ions on the Indians. It is detrimental to the service to be continually chang- ing medical officers. In connection with ])ermanent medical oflicers, a system shouhl be inaugurated of caring for the blind, insane, and destitute aged Indians. COAL DISCOVERIES ON THE WHITE MOUNTAIN INDIAN RESERVATION, ARIZONA. In the early part of last year valuable de])osits of coal were discov- ered Awthin the limits of what is generally known as the San Carlos division of the White Mountain Indian lieservation in Arizona Terri- tory. Owing to the scarcity of wood or other fuel in that section of Arizona, the news of the discoveries created intcDse excitement, and speculators, miners, and prospectors poured in ui)on the reservation, thereby greatly endangering the peace of the Territory. No serious trouble occurred, however, aud by the exercise of promi)t and vigorous measures the reservation was finally cleared of intruders and trancpul- lity restored. Various expedients were then resorted to in order to obtain lawful l)OSsession of the discoveries. Appeals were made for the segregation of the coal-bearing lands from the reservation; recpiests for leases were presented, and proi)osals submitted for an exchange of tin' coal lands for lands adjacent to the reservation elsewhere. A bill was introduced 052 PAPERS ACCOMPANYING THE in Conj^ress (TI. R. 414(») huvinj? for its object tli(3 restoration of tlio lands enil)rat;in<;- llio coal l)erovisions of said act, though somewhat changed in personnel, is still in existence, the iini)ortant work ]o(|uii-od of it not having boon completed. Tho commissionors are now in the held attondinc: to divers duties. Tho surveys for tho Uncompahgro and AN'hite IJiver I7tes, necessary to the allotment of lands in severalty, as provided in tho agreement, are being «'xecutod under direction of the General Land Otlice. The surveys for the Southern I'tes have been made in the field and returned to tho (General Land Ofhce in ]tart. By act of Congress ajiproved .Inly 28, 1882, all that portion of the lUe Reservation in Colorado lately occupied by tho Uncompahgre and White River Utes is declared to be public land of the United States, 654 PAPERS ACCOMPAXYING THE and fsul)jo<-t to disposal in accordance witb tlio provisions and under the restrictions and limitations of section 3 of the Ute agreement act, with certain exceptions in respect of prior lawful entries, settlements, and locations made upon the "ten-mile strip" on the eastern border thereof. COMMISSION TO SIOUX OF DAKOTA. A commission composed of Messrs. Newton Edmunds, Peter 0. Shan- non, and James H. Teller was recently appointed, under authority- contained in the act making appropriations for the sundry civil expenses of the government, a[)proved August 7, 1882, to negotiate with the Sioux Indians for such moditicatiou of existing treaties and agreements with said Indians as may be deemed desirable by the Indians and the Secretary of the Interior. Under date September 16 (ultimo) specific instructions were issued by this bureau for the g^uidance of the commissioners in the delicate and responsible duties with which they are intrusted. They are now in the held, diligently engaged in the work assigned them. The main jiurpose is to ascertain w^hether the Indians are willing to cede to the TJnited States any portion of their reservation in Dakota, and, if so, what portion and upon what terms. FORT HALL RESERVE, IDAHO. At the last session of Congress bills (S. 1643 and H. E. 3503) to ratify the agreement of May 14, 1880, with the Shoshone and Bannack Indians for the cession of a portion of the southern half of the Fort Hall lleser- vation, including Marsh Valley and the settlements therein, were rein- troduced. On the 8th March last the bill was favorably reported from the House Committee on Indian Affairs (Report No. 658), but it does not appear that any further action was taken. It is hoped that Congress will dispose of this long-pending matter early in the ensuing session, and thereby open up some 325,000 acres of land to settlement. ALLOTSIENTS TO NEZ PERCYS IN IDAHO. The third article of the Nez Perce treaty of June 9, 1863 (14 Stat., p. 648), stipulates that — The President shall, immediately after tlie ratification of this treaty, cause the boundary Hues to be surveyed aud properly marked and established ; after which, so much of the lauds hereby reserved as may be suitable for cultivation shall be sur- veyed into lots of twenty acres each, and every male person of the tribe who shall have attained the age of twenty-one years, or is the head of a family, shall have the privilege of locating upon oue lot as a permanent home for such person. A portion of this reservation has been surveyed into twenty-acre tracts, and the Indians have taken steps to establish permanent homes on the reservation, but in larger tracts than the treaty provides. The Lapwai Reservation, whose outbouudaries have been surveyed, contains 746,651 acres, upon which there is a population of 1,236 persons. To limit allotments to twenty acres, as provided in said treaty, when there is a superabundance of land for an allotment of much larger size to every Indian residing thereon, seems a great hardship and looks like a palpable wrong to those desiring to make a permanent home. Recom- mendation is therefore made that Congress be asked to adopt such legislation as will authorize them to take an ample quantity of laud for their home and residence. REPORT OF THE SECRETARY OF THE INTERIOR. 655 MIAMIES OF KANSAS. An act of CoDgress a]ipiove(l May 15, 188L', jjiovidod for the disposal and sale of the niiallutted lauds of the jMiauii Indians in Kansas, in- cluding' the school sections, the net proceeds of the sales of said lands to belong to said Miami Indians, and to be disposed of as now provided by law. The fourth section ])rovided that the act Shall not ia any way alleot the rights or claims of those individual Miamies, or persons of Indian blood or desceul, who are named in the corrected list referred to in the Senate amendiuent to the fourth article of the treat v of June fifth, eighteen hun- dred and fifty-four, or their doscendants. And that before the proceeds which have been, or may hereafter be realized from tlie sale of said lands shall be applied for any purpose, the Secretary of the Interior shall obtain the opinion of the Attorney-General as to what rights or interests, if any, said persons have or had in and to said lands. A full statement of the facts ujion which the ojiinion of the Attorney- General was required was submitted to the department under date ot ,Iune 12th, 1882. In an opinion dated July 7, 1882, the honorable At- torney-General held : Ist. That the lands which have been or are to be sold, and the proceeds distributed by the act of May IHth, 188'2, were set apart, assigned to, and were for the sole benefit of, the Miami tribe of Indians, meaning thereby those who at the time of the survey of the reservation had emigrated and settled on the lands. 2d. That this division of these Indians only are entitled to the iiroceeds of the sales of the residue mentioned in the second article of the treaty of .June 5, 1854, being the same lands referred to in the third section of the act of May 1."), 1882. IJd. That "those individual Mianiios, or persons of Miami blood or descent, who are named in the corrected list refened to in the Senate amendment to the fourth article of the treaty of .lune .'), lbr)4, and their descendants." have no title or claim to, or in- terest in, the said residue or the proceeds of the sales thereof. In my judgment they never had any part or lot in the reserved lands. KICKAPOO ALLOTTEES UNDER TREATY OF 1862. Attention was called in my last annual report to the condition of af- fairs relative t<> the estates of deceased and minor allottees, under the provisions of the Kickapoo treaty of June 28, 18G2 (l.'j Stat., 623), and to the fact that the treaty contained no provision by which female allot- tees could Viecome citizens and obtain patents for their lands. A bill was prepared in this otlice, in accordance with the views expressed in that re]Mnt, providing for the settlement of the estates of deceased al- lottees and extending the benefits of the treaty to all adult allottees, M'ithout regard to their being "males and heads of iiunilies," which was submitted to Congress by your predecessor through the President on the 13th of January last. (Senate Ex. Doc. No. 55, Forty-seventh Con- gress, first session.) This bill (Senate No. 1)32) ])assed the Senate on the 2fHh of March, 1882, but no action appears to have been taken tiiereon in the House of Uepresentatives. It is important that the lull should be favorably at-ted upon by the House and become a law at the next session of Congress. SALE DP KICKAPOO LANDS IN KANSAS. lieference was also made in the last annual report to certain tracts of land reserved by said Kickajmo treaty as a site for a saw and gii t mill, and for missionary purposes respectively, which were to i)e disi)osed of when the objects for which they were reserved should be accomplished, in siu'Ji manner and for such a purpo.^c "as may be provided by law." An act of Congress api)roved .Fuly 28, 1882, authorizes the Secretary of the Interior to cause to be api)rais('(l and sold, for cash, to the highest bidder, after due advertisement, in tracts not exceeding one hundred and sixty acres to any t»ne i)erson, the tractB reserved for mill-site and missionary and agency purposes, 65 G PAPERS ACCOMPANyiNG THE uo trjuits to bo sold for less than the appraised value thereof, and in no case for less than six dollars per acre. The net i)roceeds of the sales of these lands arc to be dejjosited in the Treasury of the United States to the credit of the Jvickapoo tribe of Indians, and are to bear interest at the rate of four per centum per annum. The Secretary of the Interior is authorized to expend the intere necessary, to establish the outboundaries of said areas of land. By the deficiency ap])ropriatiou act of August 5, 1882, the sum of $175,000, as per agreement made February 14, 1881, in pursuance o£ the act of March 3, 1873, was appropriated to pay the Creek Nation ot Indians for 175,000 acres of land now occupied by the Seminole Nation. As no appropriation was made to pay the expense of a survey of the outboundaries of said purchase, and the necessity of establishing per- manent boundary lines, clearly defining the divisional line between the Seminoles and Creeks, is apparent, I recommend that an appropriation suflicient to enable the department to establish said boundaries be made, which should be in addition to the $100,000 asked for in the regular estimates. FREED iEEN IN INDIAN TERRITORY. The rights guaranteed to the freedmen in the Indian Ten^tory by treaty stipulations have been ignored, and so far as their interests are involved the treaties themselves have been virtually set aside, both by the Indians and by the government. Cherokee Nation. — By the fourth article of the Cherokee treaty of July 19, 18GG (14 Stats., p. 800), a tract of country iu the Cherokee reservation, known as the Canadian District, was set apart for the settlement and occupancy of — All the Cberokoes and froeil persons who were t'ormerly slaves of any Chcrokte, and all free noj^ocs not having been »uch slaves, who resided in the Cherokee Nation prior to June first, eighteen hundred and sixty-one, who may within two years elect not to reside northeast of Iho Arkansas River and southeast of Grand River. By the fifth article provision was made that those inhabitants elect- ing to reside in said district might elect local otlicers. Judges, &c., control all their local affairs, establish rules and regulations for the administration of. justice in sai0.710.Sw, yet the Indians 664 PAVERS ACCOMPANYING THE have been located on tin; lour lo\viislii]).s above iiaiiied, and Cougre.s.s for three years has made auuual approi)riatioiis lor their maintenance and snp])ort thereon. It lias been hoped that the advantages of the location selected for this band of Nez Perces in the Indian Territory would be such as to engender in them a spirit of enterprise and emulation, which after a few years would make them comparatively contented with their new home. This hope, however, has not been realized, and although, since the time of their surrender, these people have exhtbited a quiet and unmurmuring submission to the inevitable, and have manifested a conscientious desire to obey all la^^s and regulations ])rovided for their government, yet as each year passes numerous petitions and urgent requests come from *Siem praying to be returned to their [old home and relatives. Their qniet and peaceable conduct since the surrender, and their eftbrts to be law-abiding and self-supi>orting are commendable, and under the cir- cum^auces remarkable. The larger proportion of the Nez Perc6 tribe are located on the reser- vation in Idaho, and as a rule this tribe has been a strict observer of all treaty convenants with the government. They were active in their eflbrts to subdue the outbreak of Chief Joseph and his band, and in the battle with their kindred some of them were killed and others wounded, /"'oseph and his band appear to be the only ones of the tribe who have iver engaged in hostility against the whites. I^ot in the least excusing 'f attempting to palliate the crimes alleged to have been committed by '^hem, it is but fair to say that their warfare was conducted with a notice- able absence of savage barbarity on their part, and that they persist- ently claim that when they surrendered to General Miles it was with the express stipulation that they should be sent back to Idaho. Whether this alleged stipulation be true or not, it is a fact that their unfortunate location near Fort Leavenworth, when in charge of the military, and the influences of the climate where they are now located in the Indian Territory, have caused much sickness among them; their ranks have been sadly depleted, and it is claimed that if they are much longer com- pelled to remain in their present situation, the entire band will become virtually extinct. It is now about five years since the surrender, and a sufficient time has probably elapsed to justify the belief that no concerted efibrt will be taken to avenge wrongs alleged to have been perpetrated by these people so many years ago. The band now numbers only about 322 souls, and the reservation in Idaho is ample to accommodate them comforta- bly, in addition to those who are already there, who are substantially self-supporting and who have enough to spare a portion for their less fortunate brethren, and, as I understand, are willing to give them such aid. The deep-rooted love for the "old home," which is so conspicuous among them, and their longing desire to leave the warm, debilitating climate of the Indian Territory for the more healthy and invigorating air of the Idaho Mountains, can never be eradicated, and any longer delaj', with the hope of a final contentment on their part with their present situation, is, in my judgment, futile and unnecessary. In view of all the facts, I am constrained to believe that the remnant of this tribe should be returned to Idaho, if possible, early next spring, and I respectfully suggest that this matter be submitted to Congress at its next session, with a recommendation that an appropriation be made sufficient to meet the necessary expenses of removal thither. But if Congress should decide that the best interests of all concerned will be REPORT OP THE SECRETARY OF TUE INTERIOR. 665 best subserved by retaiuing these ludians where they iiow are, it will be necessary to have such legislation as will perfect the title to the lands which Iiave been selected for them and upon which they now reside. PONCAS. in my last annual report reference was made to the mistake which occurred in the treaty between the United States and the Sioux Indians, concluded April 2y,'l8G8 (15 Stat., 035), by which lands belonging to the Poncas were taken away from them and given to the Sioux. It was stated that an agent was then among the Sioux Indians, parties to the treaty of April 2U, 1808, to obtain the ratification of the agreement en- tered^ into at Washington, August 20, 1881, by certain chiefs of the Sioux, for the purpose of correcting the mistake in part. Since that time the agreement has been signed by 722 members of the bands located at the Standing Kock Agency •, by 410 of those located at the Cheyenne Eiver Agency ; bv 008 of the Ogallalas, located at Pine liidge ; and by 292 of the Lower Brulds; making a total of 2,338. The Indians at liosebud Agency having refused to sign this agree- ment, the agent was instructed, under date of January 27, 1882, to make a written statement on the back of the agreement that the Indians at that agency refused to sign an agreement to give more than 100 acres to heads of families and 80 acres to single adults, but that they do agree to sign one giving the amount as above. Eleven hundred and sixty-seven of these Indians thereupon signetl the following modified agreement: We, the uiulersigned Indians of Rosebud Agency, Dakota, refuse to sigri tliis agree- ment giving G40 acres to heads of families, but we do hereby ;igroe to give 160 acres for the use and occupation of each head of family, and dO acres to each single male or female over eighteen years of age, and we have as an evidence that wo consent to and ratify- this amended agreement hereunto subscribed our names this 28th day of March, A. D. 18«2. Three thousand five hundred and five of the Sioux Indians, therefore, have consented to the agreement either as originally prepared or in the modified form. The Lower Yanktonais, located at Crow Creek Agency, refused to sign the agreement on the ground that thej- had no interest or right in the lands embraced in the Great Sioux Keservation, and that their rights and interests, if they had any, were in the lands on the east side of the Mis- souri liiver. They also claimed that they had never participated in any of the treaties or negotiations in regard to lands on the west side of the Missouri Kiver. The treaty of April 29, 1808, however, puri)orts to be signed by twenty-four chiefs and headmen of the Yanktonnais. The Santee Sioux have thus far refused to sign the original agreement on the ground that the Northern Indians had signed a modified agree- ment. The agent at Santee Agency has recently been instructed to endeavor to olitain the signatures of the Santee Sioux to tbe agreement execute be conducted at once by an officer of the Army, detailed for that purpose by direction of the Secretary of War. AMOUNT DUE NAVAJO INDIANS. I deem it my duty to call the attention of Congress to the sum of $156,051.74, which in my opinion is justly due tlie Navajoes, but which, under the operations of the act of June L'O, 1S74, was covered back into the Treasury. The following is a brief liistory of the case : Article 7 of the treaty with the Navajoes, dated .June 1, 1868 (U. S. Stats., vol. 15, l)age GG7), i>rovides that the head of a family who cultivates the soil — Shall bopntitlo«l to receive seeds and agricnltnnil implonionts for the first year, not exceeding in value .'JlOO, and for each succeedin;; year he shall continue to farm, fur a period of two years, he shall ho entitled to receivo seeds and impleiuenta to tbo valiid ,of$ii5. 668 PAPERS ACCOMPANYING THE 111 pursuance of this provision, Congress, in 1800, ji))i)ropiiated for "seeds, farming iinplemenls, work-cattle, and other stock, for 1,4(»0 ftim- ilies, in conformity with tlie seventh article of said treaty, 8140,000,*' and ill 1870 and 1871 the sum of >i535,000 for each year whs approi)riated for see-7, 1881, at a cost to the government of 8il2.90, making in all 97 persons over 12 years of age and 04 per- so)is under 12, who removed during 1881, at a cost to the govern- ment of 82,930.50. Applications for aid from the government liave since been made from parties desiring to remove West, and recommendation was made February 11, 1882, tliat Congress lie requested to appropriate the sum of 820,000 for the removal of those "who desired to go West, including the sum of 82,930.50 expended out of the "civilization fund" in the removal of the aforesaid persons. Congress did, through the deficiency appro])riation act of August 5, 1882, appropriate the sum of $2,930.50 "to reimburse what is commonly known as the 'civilization fund' the amount taken therefrom to defray the expenses of the re- moval of certain Xorth Carolina Cherokee Indians to the Indian Teixi- tory during the year eighteen hundred and eighty-one,'' but failed to make any other appropriation for those desiring removal. While admitting the claim that some of these Indians have upon the government for the removal and subsistence guaranteed to them by the 8th articleof the Cher.okec treaty of 1835(7 Stat., p. 482), it would not be politic to make further use of the "civilization fund,'' in view of the fail- ure of Congress to make the appropriation asked for in February last. By the sundry civil appropriation act of August 7, 1882, Congress ap- propriated the sum of 8800 " to enable the Secretary of the Interior to cause the census to be taken and a new roll to be made of all the Cher- okee Indians residing east of the Mississippi Kiver." This work wil- require a very extended tour through the States of North Carolina, Tenl nessee, Georgia, and Alabama, if not elsewhere, and involve a careful and thorough inve.stigation into the ancestry of the Indians and their relation to indiviiluals whose names are borne on former rolls of the Cherokee Nation. Mr. Joseph G. Hester, of this city, has been ap- l)ointeunal as the Court of Claims. Acknowledging the gravity of the issues involved, an item was incor- porated by Congress in the sundry civil ai>proi)riation act, approve«l August 7, 1882, as follows: Tho Soorotaiy of tho Intrrior shall invoHtii;,ite and roport to Conjin-^s what, in his opinion, wonld In- an (M|uital)h' si'ttlonH-nt of .ill niatti-rs of dispntc lu-lwet'ii tho I'jastern liaml of Chcroki-f IndianN (incliidiii:; all the ClHTokcos irsiiliii^ j-ast of tho Mississippi River) anortation on subsidy portions 7,042,810 45 Total to bond and interest account '.•,701,204 21 One-half transportation (814,085,080.91) on subsidized portions, to sinking I'lnul account 7,042,840 46 Total 10,804,044 07 The total cash payments to December 31, 18S1, which have been re- quired from the coiiii)auies, in nddition to tho retention of tho entire compensation for .services, are as follows : Central Pacific $1,2.82,26-4 44 (Xntral Branch Union Pacific 1,953 77 Union Pacific §1,840,911 70 Less balance due the Kansas Pacific for excess of transportation over and above the annual requirement for 5 per cent, of its net earnings to December 31, 1881. 930, 074 73 901,837 03 Total 2,186,055 JM 43 Ab 674 TAPERS ACCOMPANYING THE The Central Pacific Kailroad Company has deposited the above amount of $l,liS2,204.44 in the Treasury, but the balance of $901,837.03 due from the Union Pacific which owns and operates the Kansas Pa- cific liailway as one of its divisions lias not been 'finally adjusted, owing to items for new construction and new equipment being in dispute, and which is hereafter more fully discussed. PASSENGER AND FREIGHT MILEAGE AND RATES. Frequent inquiry has been made as to the relative business and rate of compensation for freight and passengers on the Pacific roads, as com- pared with roads not within the jurisdiction of this office. With a view to intelligent comparison, I have had compiled a table showing the mileage and rate of compensation for the years 1878, 1879, 1880, and 1881 of twelve of the leading representative roads of the United States, which is herewith submitted. The low average mileage of the Central Pacific is by reason of about four-fifths of the passenger traflfic being what is known as " Ferry pas- sengers," the haul of which is about miles, thus i)rox)ortionately re- ducing the general or average mileage. Miles traveled i)er xmssenger, with average rate per mile. Names of roada. 1878. Per pass. Kate. 1879. Per pass. Ptate. Per pass. 1880. Eate. 188L Per pass. Kate. Union Pacific Central Pacific LouisTille and Nashville Atchison, Topeka and Santa r6 Chicago and Northwestern Chicago, Milwaukee and Saint Paul . Chicago, Rock Island and Pacific Lake Shore and Michigan Southern . . New Tork, Lake Erie and Western.. . New York Central and Hudson River Pennsylvania Boston and Albany Miles. 511 26 58 147 35 46 40 49 29 34 27 19 Cents. 3.27 2.96 3.37 3.09 2.80 3.09 2.97 2.29 2.19 2.01 2.36 2.24 Miles. 484 27 .57 140 35 50 42 50 35 36 26 19 Cents, 3.20 2.72 3.45 3.06 2.80 2.93 2.97 2.22 2.09 2.02 2.28 2.14 Miles. Cent*. 29 54 146 35 52 44 53 33 40 26 19 3.04 3.51 3.35 2.70 2.84 2.80 2.14 2.04 1.99 2.25 2.08 MxUs. 166 30 32 Cents. 3.34 3.07 3.40 2.53 2.86 2.67 1.99 2.02 L86 2.J8 L97 Number of miles per ton of freight, with average rate per ton per mile. Kames of roada. 1878. 1879. 1880. 1881. Per ton. Centa. Per ton. Cents. Per ton. Cents. Per ton. Cents. Miles. 434 219 84 218 160 165 209 220 199 265 158 125 Eate. 2.27 2.75 1.66 2.12 1.72 L80 1..56 .73 .97 .93 .92 1.13 Miles. 439 211 85 242 160 197 228 230 191 255 156 119 Rate. 1.99 2. 78 1.53 2.51 1.56 1.72 L43 .64 .78 .81 .80 LIO Miles. Sate. Miles. 379 266 96 Raie. 1.99 Central Pacific ... .......... 264 149 280 155 155 231 222 198 240 150 113 2.34 1.61 2.43 1.49 1.76 1.21 .75 .84 .87 .88 1.21 2.14 Louisville and Nashville 1.55 Atchison, Topeka and Santa r6 . . . 147 163 211 221 179 228 146 110 1.47 Chicago, Milwaukee and Saint Paul. Chicago, Rock Island aud Pacific. . . Lake bhore and Michigan Southern . New York, LakeErieand Western . New York Central and Hudson River Pennsylvania 1.70 1.22 .62 .81 .78 .80 £ostoa and Albany L04 In this connection I have also had prepared a table of the earnings, mileage, aud rates of compensation for passenger and freight traffic over the Union and Central Pacific roads from the first year of their operation to the latest yearly returns, as complete as the data accessi- ble would admit. They show a steady increase in mileage aud volume of business* tvud decrease in rates of compensation. REPORT OF THE SECRETARY OF THE INTERIOR. 675 1 ^ -J93,6BC(Iiej •8ITM I a o -i r^ -JO 35 1--^ — — to «o ?< ci M Ji ri n ;i o» a 7> O OS ?o t* » o CO S'4 C-l CI CI CO cccocincJcJciciMci cj I- 1^ o Ci m r; 00 Ti« ^5 1* o t~ .- ■-■ o r. =; — -n- 1- t- o ro M cs cr. -T C-. =■- 1- o 00 CJ 1 1 00 co't)"' !c"i- 1- o' = =" o'o'ro'irr o .I.lTiUibSlill 5000000COO OOOOOO^O'iOO - -> O O O O t- O I- 00 r- Ol S-. — . •O -T X I e-. -r oc — -o ;s c: C-. o « o o < o o < o Ci< r- OS : ir; I- ; o~ -x' ; C-. -r c _ _ _ _ ^■MNMCOCOCOMOt- -•#00000^ I* C5fO — = o = ooxr:i-o i-io = = = oi^r:Xi-i X rt o o- c: OS o o: rH l-f iH r-T i-T r-T CJ" M* uo 1^ -t — r-- -T t- X rM l- « o c> t- ■* CI eo CI -* b- 00 «> O CI Cl O OS t- o o comcocoeooicicicoro oc OS o Ti -*• ci r^ u"; t~ « .-o 1- i-HCl O coos o o :■! - urs CI c fcTos" lit -^ o -f t- lo ct Tj« ci OS X CO « CO ■^ ^ t/ m" lo* lO »rt -^ iri" (O OS C3 ■» CO O 'O CJ CI _ - •-- C! rf -* CO - ~ — o -o 5 = ^ ; 00 X -^ ^ M 3 X" CC i — rt OS •saiidi JO -ox OOOOOOt.O^OO OOOOOOCi^oS co=oo = cot~- r^ - ■00- ' UO •.♦ 1(0 o o O X •*• -^ OS CI OS OS t-. CI CI Ci -.I- :0 'f' i.O* os' cf l.O 00 »** C i 1^ OS >r; I- 110 !C ">• CI = -< CI OS OS CSO^CIdCO-^OS^CO-VI- I-T rt" .-T rl" r-T r-T i-T Cf C f CI cf O -^ CJ M 7»" ifi <0 00 00 CO CO 00 cc X X X X : •no^ aaj -joS.Bsediaj 00 .* r- -f r- -♦ OS g UO OC I- t- to C> CI — i-< ^ ■f CO >n '« >» lA C3 CD i-O LO -« •aiira J a d u ii 4 jad aSuj3Ay .■=3 S- ^A J.lSU.ISHL'd jod a3u.i8Ay 5 CI l"- o -» ^ -»• is C» CI » 2'«'oio»clciciNciciiH '-'■♦t-oocoescicooso t-«CirtMSC0C3OO ^Z'-sro — cixi~ — oci ».o 1 1- o; t~ i.^ '- to X TT 1.-. o at," os" x" to' ■af — " -*' r -" m" c f x" trs" I--: CI » — i — 3 oi o. OS — o s u 1- i-o -o ti CO L-o cito CI o n n •♦ Lo" Li' o" t-" t-" «" x" "o" l-o" ot-irocit-sososes O X i.O -"Ji CC 00 I- 1^ oc -^ ^ OC 1- 10 X OS 3 X O rl ~ I o' ^' 00 V ? f -1"* -.t i<" «r c CO — 3 -^ -^ uo I — COCl--l 1-1 CI CI C< CI C5 CO f- 3 ■ ! to CO 3 O t~ CI OS CO 3 — -T r- ^ X S-r OS r- O X tVcf'^os'to*'r 71 ^ 'T L to C- X OS 00 X 3 7 1 -^ ■» OS ^OC10CtO«S-X!0-«it-0 5 " CI .-. 3 t~ CI CO CO CI CI S i-O ** •* 1^ Co' CO' Co' CO CO CO .sa •flaiytn l-'OOOr-tOOOOOOOOOOS r--3Cl^Xt71tO53i.0-H CO O CO 71 X 3 to I - ^ OS ^ lO OcT cf 3* h-' 7 r to* t^" os" 3*" I* CO ^ r-C^I*X»-0-.»'30Si.0 33rO OCrlCOXOSCOCO'tOt-iClTlirH I.OI^«-*iUOCO-*i"IOOO CO 71 t^ 1.0 3 -r 71 t-- i* ^ COOSXOCJCOflSCOMi-H t-" -r ro" 3" x" — " 7 r n -f ^ ^3tO3r0O»C«?X©L0 OS OS CO I- — l-o O TO CO -■ •^ ri c: ir' ifi Ti rj6 1-^ co'cT t~t-X0SOC0 713O. O cr '^ -r. -^ t~ -• cc — ir. s c 1 to X OS e- CO ■» OS .- CI CO iS to 3 » X to to .-O 3 cf 3"io' -T x"or 71 I.O' X"l~-" -rcOtOt-X3CXX3 ri i-l •-• i-ln ;i CI ri 1-1 CI gS55gS5S§2S8 Ot X X X X 2 X * * "^ * ? O C 3 3 3 O 3 3 3 3 « 00 o^cicO'^i.otct-xtte-- ooxocScxxSt*£5S 676 PAPERS ACCOMPANVING THE CONDITION OF THE IJOND AND INTEREST ACCOUNTS. Tlio followiiij? statoinont of the con0 00 199,100 CO : -Jal, 750 00 Funded loan of 1881, 5 per cent $250,450 00 Funded loan i.f 1907, 4 percent 32,050 00 Currency sixes, 6 per cent I 301,00000 | 444, 000 00 i 8u5, 000 00 Principal Gr>0,100 00 83S, ono 00 : 1,48)^,100 00 Premium paid , 124, 005 43 | 108,727 73! 292, 793 lU Total cost i 774,105 43 11,006,727 73 j 1, 760, b03 18 The last investment was made AjmlO, 1881, at which timea]n'emium as high as 35 per centum was paid, but repeated protests have been made by the com])anies against the heavy cost of these investmedts. Oa June 30, 1882, the amounts remaining in the Treasury iininveatcd were as follows : Credit of the Central Pacilic s.-)27.886 .')3 Credit of the Uniou Pacilic 4U7,44I 99 Total y3r.,:<2«: 52 on which the above companies are receiving no interest wliatever. The act of 1878, section 3, re(iuires that the "sinking fund sliall hr invested by the Secretary of the Treasury in bonds of the United States," and directs that he shall prefer the 5 per cent, bonds. It evi- dently was not foreseen that the 0, 5, 4A, and 4 per cent, bonds might be called in for payment and converted or extended at 3.V, or even .". per cent. ; nor was it foreseen that the premium would rise to more than one third of the entire fund. The last investment was made April 0, 1881, at a inemium as high as 35 per cent., and on June 30, last, there remained uninvested $035,328.52, which amount has since been hugely increased. The linid has evidently not accomplished the result antici- pated ami, since April, 1881, may be regarded as having i)ractically failed for Avant of suitable investment. The Supreme Court, in the United States v. the Union Pacific Kail- road Company (01 U. S. li., 72) has held that the comi)anies "are not 678 PAPERS ACCOMPANYING THE required to pay the interest before the maturity of the principal of the bonds." The fund, tJicreforc, tluis paid into the Treasury is not api)Hed as in ordinary cases, first to the extinguishment of interest, but is credited to the companies respectively under the provisions of the act of 1878 — one-half of the amount of transportation retained and 5 per cent, of the net earnings to the bond and interest account and the remainder of the 25 per cent, of net earnings to the sinking fund — the ditterence be- ing that that which is credited on the bond and interest account bears no interest, and that which is invested in the sinking fund earns for the company the interest of its investment until the maturity of the bonds, when the whole accumulated fund will be applied toward the payment of the debt. The government has thus a direct interest in seeing that the fund be made fully productive. In view of the fact that these companies are being charged with interest on their subsidy bonds at the rate of G per centum per annum, that the investments made by the Secretary of the Treasury yield only about 3i per centum per annum, and at maturity of the bonds the large premiums paid will be entirely lost to the companies, and that a sum now much exceeding $1,000,000, and constantly increasing, remains uninvested by by reason of the limitations of the act — in simple justice to them and in the interest of the government, I deem it my duty to recommend that section 3 of- the act of May 7, 1878, be so amended as to authorize the Secretary of the Treasury to invest the sinking funds in the first mort- gage bonds of the companies or such bonds as have been issued to them by the United States, or in other good and sufficient securities, and to convert the bonds now held by the Treasurer of tlie United States in said sinking funds, into money at the market rates, and reinvest the same in like securities. As many doubts have been expressed as to the ability of the com- panies to meet their indebtedness at maturity, and as to the efficiency of the provisions for a sinking fund, I deem it proper to suggest whether it may not be practicable and highly desirable, with the con- sent of the conii)anies, to change the form of their indebtedness from a running book account into a settlement and actual delivery of inter- est-bearing bonds for the amount found to be due on a convenient day, say July 1, 1883, at which time one-half of the interest will have been paid by the United States. Let the ascertained amount be divided into, say, one hundred semi-annual installments, each to be represented by a redemption bond, one payable each six months, together with in- terest upon the whole unpaid remainder of the debt, the lien to remain as it is. To aid reflection upon this suggestion, I desire to submit some con- siderations which bear upon it. The proportion of "net earnings" required to be paid, under the act of May 7, 1878, is probably as large a proportion of the income of the roads as due regard to their proper maintenance and the interests of the public will permit. It is as well guarded as perhaps any act ccnild be, yet its practical enforcement is not without difficulty. Xot oidy is the constitutionality of the act regarded by t!ie companies as still open, but questions of book-keeping, of expenses, of bfe^ttennents, of new con- struction, of aided and non-aided portions of the road, of through and local traffic and of diverted traffic have all entered into tlie ascertain- ment of what ai-e "the wliole net earnings of the said railroad company as ascertained and defined as hereinbefore provided." REPORT OF THE SECRETARY OF THE INTERIOR. 679 Again, the act of March o, 1873, section 2, directs tlie Secretary of the Treasury "to withhold all payments to any railroad company and its assigns on account of freights or transportation over their respect- ive roads, of any kind, to the amount of ])ayments nmde by the United States, for interest u])on bonds of the United States issued to any such companj', and which shall not have been reind)nrse. 121 GO Total 7U,-20v>,v>33 GO Df'duct transportation, &c., approximately, in round num- bers, for first fifteen years ' $1:2, 000, 000 Deduct transportation, &e., approximately, in round num- bers, for last fifteen years, at the present rate 16, r>00, DdJ 13y accumulation of sinking fund for the next fifteen years, estimated at »9U0,0tl0 per annum, together with amount aheadv in sinking fund, at 3 per cent, jjer amium 2"J, 500, OUO 51,000,000 Of) Balance due United States at maturity of bonds ii5, 2;jl.j,000. These amounts are api)roxiinations only and would vary somewhat upon close calculation of the value of the debt at any given time and ui)on proper commutation of the interest. It is respectfully submitted that it is worthy of careful consideration whetlier it would not be wisest and best for Congress now to commute the jnesent mode of payment into one of fixed amounts not deitciident upon the fiuctuations of net earnings or the (contingencies of competi- tion, which might cause net earnings to (iisap])car. The Union Pacific and Central Pacific roads and their connections are much the most imjiortant railroads with which the governnuMit has to do. It is of the highe«t importance to devise the best nu-rhod of securing to the governnuMit the certain reimbursement of its advances, with due regard to the rights and interests of the company, the govern- ment, and the peoi>]e so largely dei)ondeiit upon their pioi)er maintenance. In this connection, the original i)uri)Oses of the. government in aiding their construction, and which are of no less imi)ortance now than then, should have due weight. The necessities under which they oi'iginated, and which are so ably expressed by Justice Davis in delivering tin? opinion of the com t in United States vs. Union Pacific Kailroatl (1>1 U. S. R., 70), may l)e re- called with profit. lie says: Many of the provisions in the original act of IdO'i are outside of the usual coui-se of legislative action concerning grants to railroads, and i-anijot be prupi-rly construed witlunit refireuce to the rircuiust.inces which existfd wln-n it was pa.-sed. The war of the reb llion was in progress, mid owing to com])licalions with England, tlnM(Miu- try had become alarmed fur llie safety of our Pacific possessions. The enterprise was viewed ;isa national undertaking for a national p»irj)ose, antl tho public mind was dirt^cted to tlie end in vi'-w rather than to tlie particular meanw for aeouring it. Although the road was a military uucu^udty, there were other reasons 682 PAPERS ACCOMPANYING THE active at tbo time in prodiiciiiK au oi»iiiioii for its completion l)«-siflsed for its owti puri^oses. The puri^oses of Congress in granting the liberal aid extended to these companies, so forcibly expressed by Justice Davis, were held to be im- portant elements in arriving at the true construction of their charters, and are not now to be overlooked in considering their present relations to the government. All these purposes have been much more than real- ized, and it has been frequently and officially stated that the actual sav- ing, year by year, to the government greatly exceeds the whole annual interest paid. But whatever weight these considerations should have in guiding the discretion of Congress, and however much the government and the country are indebted, as they are, to the vigor and enterprise of the men by whose energy, skill, and perseverance this great national and pioneer work was consummated, this office can take no other cognizance of their affairs than in the simple light of debtor and creditor. And it is in this light only, and with a view to devise the best possible security for the advances made by the government, that I have ventured to make the suggestions: First. That if the sinking fund is to be continued, the discretion of the Secretary of the Treasury should be enlarged as to the investment of the fund. Second. That Congress consider the practicability of commuting the present book-account indebtedness for securities having the same lieu and of fixed amount and payable at fixed periods. RAILROAD RATES. The adjustment of railroad rates is one of the most difficult and del- icate questions of modern times, and it is specially complicated in the United States, where every trunk line runs through several States, each independent within its own jurisdiction and jealous of all interfer- ence by the general government. The enormous extent of this interest and the rapidity of its growth, both in the increase of mileage and ton- nagii, demands that its relations to the public shall be under some judi- cious legal control. What it shall be and to what extent, are questions upon which the most experienced experts differ, and as to which there is much liopular misapprehension. REPORT OF THE SECRETARY OF THE INTERIOR. 683 It is estimated by I\[r. Ileniy V. Poor that tbcre are now in the United States notless than 101,8]3 niihi'S of railroad, which, at tlie h>w estimate of §l'5,0()0 per mile, has cost over $2,(500,000,000. They have trans- ])orted within the last year ;55O,O00,00O tons, of an estinmted vahie of $12,000,000,000. Their gross receipts were 8725,325,110. They p:iid for wajies and material 8440,565,071; for interest on funded debts, 8128,887,002; for dividends, 893,344,200. They employed in operating the roads 1,200,000 persons, besides 400,000 in construction, or a total of 1,000,000 employes, or about one thirtj'-second part of our popula- tion, estimated at 53,200,000. Interests so vast and so necessarily and vitally bound up in the pros-. perity of the people, can oidy be dealt with with the utmost caution and ui)on the fullest information. As mere mechanical devices, railroads and their equijiments maybe regarded as well perfected, but in their relations to business they are still in their infancy, passing through formative discipline and experi- ment, and slowly but surely approaching a solution of the dillicult questions which surround them. Hates and discriminations are not entirely within the arbitrary deter- mination of railroad companies. They are subject to comi)etitions which they cannot control, upon the ocean, upon the lakes, and upon the rivers. There is scarcely a center of business in the country, af- fording any considerable freights, where they are not fiercely contended for upon all available national highways, as well as by canals and com- ]>eting roads, with the necessary result of practically reducing all com- jjcting rates to the level of the lowest. The great lakes and rivers so peculiarly and advantageously located as to trade, with their numerous, far-reaching, and widely extended navi- gable tributaries, carry water competition into almost every portion of the country, with the eftect of so reducing the general rates that the United States enjoys the cheapest railroad transportation in the world. The experience of all railroads is that reduction in rates comes grad- ually bnt surely from increased trallic and production. The laws of trade must ultimately ])revail in the management of railroads as in all other widely-extended business ; but as yet no just basis of general ap- plicution tbr the adjustment of rates and discriminations has been tbund, and it is undenia])lethat there are hardships neither few nor small aris- ing from existing «(liscriminati()ns, often arbitrarily imposed, which af- fect disastrously local trade atnon-com])eting points. There is a grow- ing and clamorous demand among the people that railroad management shall be subjected to the restraints of law, nor is railroad management adverse to reasonable control. On the contrary, as 1 believe, a judi- cious law would i>e most a(;ceptable. It has beconu; a necessity that " wars" of rates shall be controlled in the interests of both the ]»eople and the roads. Tlu'y usually, in the ardor of competition, spring from sellish conllict of interests, and often from breach of faith, which no (existing law can control, and are not in- freijuently connecteil with stock-jobbing speculations. They lucak out suddenly without warning, and riige with violenc*' for a time, with rates reduced far below the cost of transportation, and eeaseas suddenly, with l)romi)t restoration of rates. Such " wars" for the time unsettle, witli- in their operation, commercial values, atlbrding sudden and unreason- able i)ro(its to a few and entailing heavy losses u])on others. Kailway commissioners have been appointed in twenty-one States, as per reports for 1881, as follows: Alabama, three commissioners, paid by railroads. 684 PAPERS ACCOMPANYING TIJE California, i\lr^^v commissioners, paid by State. Connecticut, three commissioners, paid by railroads. Ceorgia, three commissioners, paid by State. Illinois, three commissioners, ])aid by State. Iowa, three commissioners, i)aid by railroads. Kentucky, three commissioners, paid by State. Maine, three commissioners, paid by State. ]\Iassachusetts, three commissioners, ])aid by railroads. Mi<;higan, one commissioner, i)aid by State. 3Iinnesota, one commissioner, paid by State. ]NJissouri, three commissioners, ])aid by State. Xew Hampshire, three commissioners, i^aid by State. Ohio, one commissioner, paid by State. liliode Island, one commissioner, paid by State. South Carolina, one commissioner, paid by railroads. Vermont, one commissioner, paid by railroads. Vir<;inia, one commissioner, paid by railroads. Wisconsin, one commissioner, paid by State. Texas, one railway inspector. Xew York will have three commissioners in 1883. The general scope of the laAvs under which these commissioners are appointed is to control railroads within the State, and they exercise, iu many instances, a healthful influence over railroad management. But railroad transportation, strictly confined within State jurisdiction, is so limitednhat it leaves the real ditiiculties unsolved and nearly un- affected. It cannot be said that State laws have been successful iu dealing- with the subject. Their limited jurisdiction involves conflicts with both the general government and their sister States. Diverse decisions have been ren- dered by the highest judicial tribunals of neighboring States upon State laws of like import aiid purpose. The su]ireme court of Iowa, in Carlton & Co. m. Elinois Central Eail- w^ay Company (see Eailway Age for July 20, 1882, p. 397), decided Feb- ruary 12, 1882, that ''a railroad company has the right, as a common carrier, to make its own contracts and disregard any laws of a State which seek to regulate shipments to parts be^'ond the limits of the State, such laws being repugnant to the Federal Constitution." The sui>reme court of Illinois, in The People vs. T4ie Wabash, Saint Louis and Pacific Pailway Company (see Bailway Age for October .5, 1882, p. 551), decided September 28, 1882, that "while the act of the Illinois legislature of May 2, 1873, to prevent unjust discrimination in the rates of charges of railway companies may alifect commerce, it can- not be said to be a law regulating commerce among the several States within the meaning of the Federal Constitution.*' Like diversity is found in the decisions of other States, but the con- flicting views are well discussed iu the cases cited. If the Supreme Court of the United States should concur with the supreme court of Illinois, then each State and all States would be at liberty, in the absence of Federal law, to enact regulations each for itself, with absolute certainty of conflict of laws, and with uncertain extra State authority difficult if not in>possible to define, and leading to vexatious litigation, in which the pride of State rights ma^' be arrayed to counteract adverse decisit)ns with new legislation. If they should concur witli the supreme court of Iowa, then it is a matter of exclusive Federal jurisdiction, and only Congress could legis- late upon the subject with any effect bey oud State lines. REPORT OF THE SECRETARY OF THE INTERIOR, 685 The iK)werof Congress over the whole subject can hardly be questioned. The supreme court of Illinois concedes it, and the decisions of the Sni)reme Court of the I'nited States seem'to render it indisputable. Ill Hall vs. De Cuir (95 U. S. K.,488), Chief Justice Waite, in a full dis- cussion of the subject, and citing many authorities, says: Wf think it may Hafely ha said that the State lefjislation which sooks to impose a • iiit'ct Imiden upon inter-State commerce, or to interfere directlj" with its freedom, does encroach npon the exclusive power of Congress. Justice Clifford, delivering a concurring opinion (p. 491), says: Power to regulate comnierco is by the Constitution rested in Congress ; and it is well-settled law that the word " commerce," a.s used in the Constitution, comprehends navigation, which extends to every species of commercial intercourse between the United States and foreign nations, and to all commerce with the several States, ex- cept such a-s is completely internal, and which does not extend to or affect the other States. ' The universal use and absolute dependence of all inter-State commerce ui)on railroads, give constant rise to new questions under new conditions, which only experience can properly solve. It would seem that true wis- roper ])rotection of the people. Experience has shown that uni-easonable laws cannot be en- forced, and in many instances luive worked such great end)arrassment to transportation as to become inoperative by common consent. 3Iany mich laws hastily enacted have been (juickly reiu'aled. I therefore rcs])ectfully recommend that a commission be appointed to take into consideration the whole question, and report to Congress the facts necessary Jbr intelligent and efficient action upon the subject. UNIFOlOnXY IX RAILWAY SIGNAI.S. The unnecessary and dangerous dissimilarity of railway signals in this country is a subject for grave consideratitn, atf(>cting so largely, as it does, the safety of life and property. A table furnislied this oHiee, and believed to be reliabh' (a ('t)\)y of Avhich is .sul)iiiitt('«l as api)endix !>), indicates that, with the <'Xception of the signal for l)acking, consist- ing of three short whistles, on 198 roads in this country, there is tio signal inusehavijig the same meaning on all roads, while no less thati forty different meanings are conveyed by several signals. About 9(> percent, of the roads use one whistle for a|)|>lyingthe brakes, and about the same proportion use two short whistles for releasing brakes, while on others these sounds have exactly the ojiposite nu'auing. The signals for road crossings, sending out llagmen, recalling flag- men, calling for switchmen, calling attention tarted. calling for fuel, cK:c., ditfer widely; in fact the code is based solely on the arbitrary det<'rmi- nation of the officers of each road. It is evident that not only incon- venience and 8, as represented by their books and statements rendered to this office. Of this amount $4,295,187.98 had been paid to them prior to the act of 1873. There has been cov- ered into the Treasury, for services performed by the several companies to December 31, 1881, the sum of $14,707,880.34 to the credit of the bond and interest account, and $2,273,759.02 to the credit of the sink- ing fund. Assuming the figures returned b\' the companies to be cor- rect, there remain accounts "unacted upon" amounting to $4,026,870.34. Of this large amount the several bills contain items which are in dis- pute between the companies and different departments of the govei-n- ment. ]Many of them arise from changes in the tariff' rates and classi- fications, and some from clerical errors, but the aggregate amount of all the disputed items is very small as compared with the total amount of the suspended bills. The following statement, ju'epared from data at the Treasury Depart- ment, shows the amount in dispute forpassenger and freight transporta- tion to December 31, 1881 : REPORT OF THE SECRETARY OF THE INTERIOR. 687 Koad. Central 'Pacific TJnion Pacific Sioux City & Pacific Central Bi-anch Union Pacific. Kansas Pacific Total Errors. $6, 746 29 41, 805 39 11, 244 47 50, 796 15 DiBallow- ance. Deduction. $16, 437 19 49, 300 74 20 76 22« 32 11, 382 85 $7, 657 33 20,352 89 «.'j1 88 6t7 (19 14,608 16 77, 357 86 53,117 35 Total. $.W, 830 n 120, 4.'9 i'2 (<72 04 873 41 37, 235 43 190, 272 36 Upon representations made by this office, in connection with the ac- counting departments, the companies have recently adopted a better and i)ractically uniform system ol" rendering their accounts, wliich lias much facilitated settlements and whi(;h ■will jiiobably prevent ac(;uniu- lations of unadjusted accounts in the future. I am informed that the accounting departments are making all i)racticable eflbrts to adjust the deferred accounts as soon as i>ossible. Efforts have also been made to secure the adoption by all the de})artments having occasion for trans- ])ortation u])on the subsidized roads of a uniform form of "request lor passenger transi)ortation," which it is believed will ])revent many incon- veniences to which the companies and the accounting de])artiiM'nts are subjected by reason of the different forms now in use. It is probable that such uniform system will soon be adopted. CENTRAL PACIFIC RAILROAD COMPANY. The property and accounts of this company have been carefully ex- amined ; they exhibit a marked improvement in the entire plant and a decided increase of business. The total length of roads operated by the company on June 30, 1882, was 3,030.35 miles, of which 1,204.5 miles are owned, being the same as iu the previous year, and 1,831.35 miles are leased, being an increase of 314.1 miles. Of the 1,204.5 miles owned, land was granted to aid in the construction of 1,012.47 miles, of which 800.60 miles w^ere subsidized with bonds in addition to the lands. At the close of the year ending June 30, 1882, there were 838 bridges, aggregating a length of 100,425 feet; 2,219 open, box, and arch cul- verts, aggregating 8,910 feet; and 17 tunuels, aggregating 8,102 feet, the longest of which is 1,059 feet. There is a decided improvement in the track, bridges, and buildings. Steel rails are being laid to replace iron. At the beginning of this year there remained only 300 miles of iron rails, of which lOG miles have since been relaid with steel. The company has contracted for 30,000 tons of steel rails this year: 10,000 tons of the Troy Works, 10,000 tons of the Lackawanna Iron and Coal Company, and 10,000 tons of English manufacturers. American steel rails have cost the company this year an average of $57 i)er ton deliv- ered on cars at the manufacturers works. English rails have cost, de- livered on the wharf at San Francisco, with duties added, $03 per ton. There is, in the main line, an average of 2,040 cross-ties to the mile. The road is a.t present in excellent condition for safety and Ijusincss. The intention is, however, fre(piently expressed to replace all wooden bridges and culverts with iron and stone, to reduce the curvature and grades where necessary, and to extend and deei)en the ballast and bring the road, as rapidly as possible, to the highest standard of excellence. There are some 35 miles of snow-sheds, including a 1,000- feet tunnel through the summit of the Sierras west of Truckee. They are con- 688 PAPERS ACCOMPANyiNG THE structcd of heavy timljcrs on accoinit of the very great weight of snow which soiuetiTnes falls, and to afford adequate protection against the avahmches which soinetiiiies rush (k)wn tlie mountains in winter. They have cost an average of about 820,000 per mile and are very expensive to maintain. An admirable system of signals by telegrai)h and tele- phone has been devised for nse in case of fire. Three locomotives, with several hundred ieet of hese and fire-eugine attachments, are kept con- stantly fired up, to each of which is attached three water cars, with a capacity of 10,000 gallons each; these are conveniently stationed in the sheds, ready for instant vise. Among tiie noticeable improvements made on the main line is a com- modious passenger depot at the Oakland Pier, in the bay of San Fran- cisco. This pier is of rock and earth-work, extending into the bay more than one and a quarter miles, and upon which are four parallel tracks. The building has a total length of 1,050 feet, covering an area of four acres, and has ten tracks running through its entire length. At the present time there are 128 passenger trains running in and out daily. The building has all modern imjjrovements, and is so constructed as to receive passengers from the ferry-boats fiom both the upper and lower decks at the same time, and is admirably adapted for handling expe- ditiously an immense passenger traffic. The steamer Solano, which is the largest of its kind in the world, is used for transferring passenger and freight cars and engines across the straits of Carquenez, between Benicia and Port Casta, near San Fran- cisco. Its dimensions are as follows: Length over all, 424 feet; length on bottom, 406 feet; height at sides, 18 feet o inches; at ends, from bot- tom of boat, 15 feet 10 inches ; molded beam, d circulation of air. Sotnc of the bouses have a library, billiard table, and bath-room. ICngineers and firemen are the i)rincii)al occupants, although all trainmen are at liberty to use the rooms free of charge. Sneh sjiecial and nniisiial provision for the health ami eond'ort of the emi»loyt''s is found to be necessary to secure the permanent adherence of valuable emi)l()yes in a climate so enervating and a count rv so desolate. Passing west from ^■^ma on the California ]iortion of the road, there is no water-station until arriving at Walters, iui> miles from Yuma. At this point some irrigation is being done, and from there northwaixl the 44 Ab 690 PAPERS ACCOMPANYING THE couutry presents a decided and pleasing improvement. At Newhall, 453 miles south of San Francisco, oil wells have been developed which produce oil ('laini«;d to be etjual \m quality to that of the Pennsylvania wells. From five to fifteen cars are daily shipped. Tliis discovery is fortunate and is likely to be of great value to the com])any. The road from Tehachipa Summit to Caliente, a distance of 23 miles, has a descent of ii,700 feet, or about 116 feet to the mile, with curves of about ten degrees. The engineering difficulties were of great mag- nitude. Within this distance the roadi)asscs through seventeen tunnels, one of which is directly underits own track, thusforming what is known as tlie " loop." Froni one point the road can be seen in eight diiferent places. The track has been well constructed as to grades, curvatures, and materials used. It is carefully watched and well maintained. A special engine was constructed in the works at Sacramento, Avith par- ticidar reference to the necessities of this difficult section. It is said to be the largest engine in the country. It is twelve-wheeled (eight driving and four tru(;k), and weighs, in working order, 123,000 pounds, or 01^ tons. The tender, in working order, weighs 03,000 i)ouuds, or 31 J tons, aggregating the enormous weight of 93 tons. It will haul up, over this section, fourteen loaded cars of 20 tons each. The following statements have been carefully prepared from the books and accounts of this company and from reports rendered to this office: Staieuient showing the earnings and expenses of the Central Pacific Eailroad Company for the fiscal years ending June 30, 1881 and 1882. Tear ending June 30, 1882. Year ending June 30, 1881. Difference. Increase or decrease. Amount. Per cent. EARNINGS. Passenger Freight Mail Express Miscellaueoiis Total EXl'ENSES. Conducting transportation .. Main ten ance of w ay Motive power Maintenance of cars General expenses Tola! I\>t earnings Average miles operated Gross earnings per mile Operating expenses -per mile Net earnings per mile $7,151,283 71 16, 563, 043 85 450, 018 17 334, 480 72 861, 310 66 $6, 188, 388 56 15, 216, 554 65 463, 861 27 289. 506 17 735, 033 92 Increase . Increase . Decrease. Increase . Increase . $962, 895 15 1, 346, 489 20 13,843 10 44, 974 55 126, 285 74 25, 360, 146 11 22, 893, 344 57 Increase . . 2, 466, 801 54 2, 681, 968 37 2, 755, 593 17 4,067,376 10 800, 669 24 5, 676, 804 86 2, 351, 468 68 2, 226, 568 95 3, 133, 352 21 668, 307 89 5, 122, 806 75 Increase . Increase . Increase . Increase . Increase . 330, 499 69 529, 024 22 934, 023 89 192, 361 35 553, 998 11 16, 042, 411 74 13, 502, 504 48 Increase 9, 317, 734 37 9, 390, 840 09 2, 806. 66 2, 614. 29 8, 846 58 5, 596 20 , 539, 907 26 Decrease.. 73,105 72 Increase . . 252. 37 8, 7.57 00 Increase . 5, 164 88 Increase . 89 58 431 32 3, 250 38 3,^92 12 I Decrease. . 341 74 15.56 8.85 .30 1.55 17.18 10.77 14.07 23.76 29.80 2a 78 10.81 18.81 .78 .10 8.35 9.51 It will be observed that while the earnings of the road have increased nearly two and one-half millions, the expenses have increased a little over that amount, showing a slight decrease for the year in the net earnings. A large portion of this increase in expenses is due to the REPORT OF THE SECRETARY OF THE INTERIOR. 691 improvement of the track, bridges, and buildings, and to the substitu- tion of steel rails for iron, all of which has been charged to operating expenses. There is a decided increase also in the expense of motive power and in the niaintcnaiicc of cars. Although operating over 3,000 miles of road, the conijiany has thus far been unsuccessful in discovering coal at or near any point on the line. Coal is i)rocured from the Union Pacific Kailroad, from Pennsylvania, and from Australia, at prices ranging from $7.15 to $13 per ton. AVithin the i>ast year coal mines have been purch^iscd and opened in Washington Territory, from which coal is shipped at Tacoma in vessels for (lelivery at San Francisco, Sacramento, and other points accessible by sea. It is expected that the cost of fuel will be thereby greatly reduced. The "perforuuince sheets" returiu'd to this ollicci show that the cost i)er mile run of locomotives on some divisions is thirty cents, of which twenty-live cents is for fuel alone. Statement of the revenue and expenditnres nf the entire line of the Ciulral Pacific Haitroad Company for the year endiiiff J lccenil)er '.\l , l'^81, ascertained from the general books of the conq)any in San Francisco bjj the hook-keeper of this bureau. Earnings: Passenger $i;,filh»,82« 37 Freight If), h4'2, i:?9 01 Mail 4.V.>,ir.s 23 Express :Uh,0-_>1 22 MisccUaueous 7SJ, 'JJ4 12 Gross earnings $24, ()94, IDO 95 Profits on miscellaueous investments G12, ().")(5 40 Total receipts 24,706,757 35 Exjienses: Condnciiug transportation $2, 4',>7,522 77 Maintenance i>f way 2, 543, 01 1 80 Motive power 3, !;">;"», H)r< 06 Maintenance of cars <><">t), ItU) 05 General expenses H15, 1'.U 06 Total operating expenses '.', 0T-<, 451 54 Rentals 3, ^-td, Km 43 Total operating expenses adid rentals i:!,KV.>. 306 {Yt Discount and interest 210,124 08 Interest on first-mortgage lioiids l.or» 00 Interest on otit.-r iaJ,532, riir> '2't Freight 0. 543, 050 21 Express 111,4j?(; 14 S'J, 167, 051 r.o Car service " ' 4,27i> 7(5 Rent of buildiugs 1'^, 52S 05 Miscellaneous 414,253 04 Wells, Fargo &, Co. stock on all divisions (SUiajG-oC'lO) subsidy pro- portion 1 214,772 83 Total earnings 10,271,563 71 KXPFXSKS. Conducting transportation !i<715, 076 19 Maintenance of way — 1, i;51», 430 83 Motive power 1,527, 77'J 63 Maintenance of cars 270, 721 21 General expenses and taxes 782, 119 88 Total operating expenses 4,444,127 74 Interest paid on first-mortgage bonds having priority of lien over the United States bonds 1,671,695 00 Total 0,115,622 74 Net earnings so ascertained .• 4, 155,740 97 "Twenty-five per cent." LU3d,935 24 Deduct : Transportation on aided lines 432, GG8 43 Transportation on non-aided lines •')27, 116 90 'i'otal transportatiou witMield for 1881 959, 785 33 Remainder — additional payment required by law 79, 149 91 ATPLI CATION. One-half of transportation on subsidized line .§216,334 21 Five per cent, of net earnings 207,787 05 Total to credit of bond and interest account .S424, 121 26 One-half of trans])(irhitioiion snlisidizcd line 216,334 22 Cash or additional payment required under section 4, act of May 7, 1878 398,479 70 Total for sinking-fund account 014,813 98 l,03S,y35 24 The land grant to tliis company is estimated at 12,822,400 acres, of wliich 2,505,584.45 acros had Ixumi i)atentod to June .'>(), 1882. Tlie company has sold 1,031, 10'J.21 acres for $5,017,023.88, or an aver- age of 85.74 ])or aero. Tlie Southern Pacific C/OniiKiny, so closely identified with the Central Pacific system, is now building, under the nauie of the Galveston, Har- ri.sburg and San Antonio Railroad, a new lino from El Paso via Sierra Blauca, Texas, to San Antonio, thence via the Galveston, Ilarrisburg and San Antonio road to Houston and Galveston, Tex., c-oniiocting at Houston with the Texas and New Orleans and Morgan's Louisiana and Texas Railway for New Orleans. This will nuike a diroel route from San Francisco to New Orleans, a distance, as at present computed, of 2,493 miles. This 4oad will open to California and the Southern Ten-itories an oat- 694 PAPERS ACCOMPANYING THE let of great value. It is estimated that during the year 1881 the export crop of wheat and flour from California amounted to 1,104,501 tons, on which there was paid for transportation to Euroi>ean ports, exclusive of interest and insurance, G7s. (kl. pur ton, amounting to o,519,909 pounds sterling, or $17,111,757. Of this large amount 73 i)er cent., or $2,500,000, was paid to vessels flying foreign flags, so tliat all this money "was absolutely taken out of the country. It is expected to handle the grain traflic in bulk with elevators and close cars, superseding, to a great extent, the use of sacks, now so gen- erally used, and saving to the farmers a due pro])ortion of their cost, estimated at $1,500,000 per year. If the expectations of the company are realized, it is believed that a line of steamers can be supported between New Orleans and European ports, and which, on return voyages, will bring a large immigration for the Pacific coast, which has not heretofore received any considerable part of that valuable population. The great inducement of cheap and productive lauds east of the mountains, the sterile plains which lie beyond, and the great distance and expense of reaching the Pacific slope by existing lines will continue for many years to deprive that coast of the advantages it would otherwise derive from general immigration. A line which will render easily and cheaply accessible the rich and unoccupied lands and vast mineral resources of California and the Southern Territories will be of national importance. UKION PACIPIC RAILWAY COMPANY. This company, which is the successor by consolidation January 20, 1880, of the Union Pacific Eailroad Company, the Kansas Pacific Eail- way Company, and the Denver Pacific Eailway and Telegrai)li Company, has operated the same number of owned miles of road daring the past year as in the year previous. A thorough investigation and examination of the property and ac- counts of this comjiany has been made and the result shows marked improvement in the condition of the property and increase in business. The main line from Omaha to Ogden is entirely laid with 50, 58, and 60 pound steel rails. The track is largely ballasted with gravel and disintegrated granite and is in good smooth condition. The company reports 1,818.8 miles of road all owned by it, in addition to which there were operated in the interest of the company 2,449.1 miles, of which 349.4 miles were opened during the year. The Union Pacific was chartered on the 1st of July, 1802, by act of Congress which granted the right of way over the public domain, and 12,800 acres of the public lands per mile of road, and a subsidy in gov- ernment bonds at the rate of $10,000, $32,000, and $48,000 per mile of line, the object being to apportion the subsidy to the cost of the several sections. The amount of the subsidy for 1,033 miles was $27,220,512, the accrued interest on the same to June 30, 1882, was $23,323,059.69, making the total debt $50,550,171.09 which matures in 1895,-'96,-'97, and -'98. . The amount of bonds to the Kansas Pacific (now the Kansas division of the Union Pacific Eailway Company) was $10,000 per mile for 394 miles west from the Missouri Eiver, the total amount of bonds issued being $0,303,000, which with the accrued, but not due, interest of $5,751,153.09 amounted June 30, 1882, to $12,054,153.09. The total debt of the Union Pacific Eailway Companv to the United States on June 30, 1882, was therefore $62,004,324.78/ REPORT OF THE SECRETARY OF THE INTERIOR. 695 The total acres of land patented to the company to June 30, 1S82, is 3,420,013.75. Their total sales were 4,317,959.55 acres, which anjounted to $10,312,441.88. The total ^rant of land to this company, as at present consolidated, is estimated at 10,100,000 acres. At the close of the fiscal year endin;; June 30, 1882, the company owned rolling stock, as follows: 341 loco- motives, of which 75 were e«jnipi)ed with the Westinf;^house air brake; 278 i)assenoer and 7,305 lVeilace. A block of nearly pure soda, weighing 7,500 i)ounds, has been taken out. Judiciously worked, this sliould be a souice of i)rofit. The shoi)s and machinery at Onmha, which were of great magnitude, as noted in the report of last year, have been extendeoint3 aloug the line, notably at Omaha and Council Bluirs, where nearly six miles of sidinijs have been i)nt in. 382,007 pine, cedar, and oak ties have been laid dnrino- the year, also, 16,330 tons of new 60-pound steel rails. Improved bridges arc being constructed; two of iron, four spans each, have been coni])leted during the year and seven others ai-e in course of construction. In addition to these, one Howe truss, six beam trusses and twenty-six pile bridges have been built along the line. A very good work luis been accomi)lished in the reduction of the heavy grade at ElkhornHill, from 71).L> feet to a maxinuim grade of 21 feet per mile. In accomplishing this, 150,000 cubic yards of earth were removed. Quite a number of pump-houses, wells, and tanks have also been built along the line. Considerable difficulty has been experienced in obtaining good water along the line running through T\'yoming Ten-itory. Artesian wells have been sunk in several places to great de})th, at Salt Spriugs, 2,300 fe, 539, 512 00 Interest on same, accrued but not due 29, 074, bl26 77 IC, 772, ir.5 48 719,840 70 706, 038 :il 701, 065 83 $4, 970, C46 85 15, 957, 560 64 718, 337 61 600, 287 00 458, 919 9» Increase . . Increase . . Increase . . Increase . . Increase . . $224, 879 92 814, 594 84 1, .503 15 45.751 31 242, 145 85 4.52 5.10 Mail .21 6.92 52.00 Total 24, 094, 627 15 22, 765, 752 08 Increase.. 1, 328, 875 07 5.83 EXPENSES. Conducting transportjition 2, 519, 835 44 3,-357,735 69 4, 121, 788 27 1, 079, 132 86 991, 300 29 2,207,682 C6 3, 569, .549 26 3,772.114 77 983. 353 54 882, 209 85 Increase . . Decrease . Increase . . Increase . . Increase . . 2.52, 152 78 211. 813 57 349. 673 .50 95. 779 32 109, 090 44 11.11 5. 94 9.27 9.74 12.36 Total 12, 069, 792 55 11,474,910 08 Increase . . 594. 882 47 5.19 Net earnings ............. 12, 024, 834 60 11, 290, 842 00 Increase .. 733, 992 60 6.50 1, 818. 80 1, 818. 80 Gross earnings per mile Operating expenses per mil© $13,247 .54 6, 636 16 $12, 516 90 6, 309 08 Increase .. Increase . . 730 64 327 08 5. 83 5.18 Net earnings per mile 6,6U 38 6,207 82 Increase . . 403 56 6.50 REPOET OF THE SECRETARY OF THE INTERIOR. 699 This shows a very steady and even increase in ^ross earnings, opei^ ating expenses, and net earnings during the year The books and accounts of this company were thorouglily exaniined in Boston. Twenty five per cent, of the net earnings of the subsidized portion of the Union Pacific for the year 1S81 was found to be $1,826,294.98, and 5 percent, of the net earnings of the Kansas Division, subsidy portion, $77,091.23, making aiiunint due the government $1,903,980.21 ; from wliicli deduct transportation withliehl, $1,313,794.90, leaving cash balance due the United States of $."(90,191.31. A copy of tlie detailed statements, showing the above result, is here- with submitted. Settlement has not yet been consummated, because of the refusal of this office to allow the company to de per ant. of vet taniintja" for the ijrar ending Deeemher 31, IBdl, umitr (he avl of May 7, leTtf. EAU.NINGS. United States: Passenger $18,''., 372 G8 Kreijjht IU>U,B30 96 Mail, amount clainied l»y comiiaiiy .§r>'.>G, 77.'> tX) Lessdifrercm-e betweeti amount claimed and amount allowed by rost-Ullicc Dejiart- meut ! l.':5, 4:}(; C.iJ 4 n, rcM .^l $1,010,547 86 Commercial : Passeuf^er :l, 277,7t'>l 27 I'l^ight Ui,ri2:<. 112 .Vi Express .M.'>, ll>y 7:t M,41G,U73 25 700 PAPERS ACCOMPANYING THE Company freigLt .«!l, IC.'), !)70 74 Car Borvico i)2, li'>9 iui Kent of buildiiiss x!H,889 77 Miscellaueoiis .'. 422. 219 06 : 1^1,709,239 12 Gross earnings 17, 144,800 49 KXPKNSE8. Conducting transportation «. 1,C45,74!5 20 IMaiuteuance of Avay 2, :W9, TjOI 45 Motive power 2,812,921 59 Maintenance of cars 797,325 92 General expenses and taxes 5G3,328 40 Total operating expenses 8, 208, 820 56 Interest paid on iirst mortgage bonds having prioritv of lien over tiiose of the United States, ledger folio 386. . 1, 630, 860 00 Total expenses under act of May 7, 1878 9, 839, 680 56 Net earnings so ascertained 7,305,179 93 Twenty-fivd per centum of net earnings 1, 826, 294 98 Amount of 'transportation rendered us above 1, 019, 547 85 Less difference in amount claimed bv company 7, 231 23 1,012,316 62 Remainder, cash or additional i^ayment required by law 813,978 36 APPLICATION. One-half transportation services claimed 506, 158, 31 Cash payment, five per cent, of net earnings 365, 259 00 To credit of bond and interest account 871,417 31 One-half transportation services claimed 506, 158 31 Cash payment, being that portion of the $850, 000 named in section 4 of the act of May 7, 1878, payable into the sinking-fund ' '. 448,719 36 954,877 67 1,826,294 9f< Cash payment ascertained to he due for the year 1881, ====:= after deducting the amount claimed for transportation services rendered on tlie subsidy iiortion and withheld by the United States .' 813,978 ?.<) The company is, how^vei-. entitled to jiaymeut for trans- portation services performed over non-aided lines oper- ated by it, and for which compensation has been withheld by the United States: Passenger, freight, and mail service. on the Omaha and Republican Valley G, 798 95 Omaha, Niobrara and Black Hills 2, 127 69 Saint Joseph and Western 14, 460 35 Marysville and Blue Valley 1,645 21 Echo and Park City 6,813 56 UtahNorthern 59,733 45 Colorado Central 23, 289 28 Denver, South Park andPacific 4,211 02 Denver Pacitic 20,523 72 Junction City and Fort Kearney 3, 581 77 Solomon Railroad T 2,821 68 Salina and Southwestern 1, 560 90 Denverand Boulder Valley .■ - 1,186 32 Golden, Boulder and Caribou 288 48 Lawrence and Emporia 1,560 65 150,633 03 Cash requirement for 1881 663,345 3:; Less amount due Kansas Pacific on settlement 73, 1:^4 02 Balance due the United States in cash 590. 191 31 EEPOET OF THE SECRETARY OF THE INTERIOR. 701 UNION PACIFIC RAILWAY C03IPANY, KANSAS DIVISION. Earniugfi aud expeuses from November 2, 1880, to December 31, 18«1, iucluslTe. KARXIXGS. United States : Passenger .SSfi, 18-» n4 Freight IM. -MU H'.) Mail 13-J,G~(; [H Comiuercial : Passf-nger -. l.G'^T.nOO I'.t Freight 4, .>")(), 17H y7 Express HID, >•_> 58 Company freight :n,7. \1'> S Miscellaneous ()4,^'•l-' 2*i tj, &Jfi, 149 15 Gross earnings 7, lol,3c'S Sti EXPENSES. Conducting truiisportal ion .^47,2:ir» 8:i MaiutcjiHUcc of way 1 , 4():!, 7'Xi 'M Motive power 1, :!">:5, ^y'-i K^ Mainteuiince of cars 'M2, Ci'jJ '^•^ General expenses aud taxes 475, 70G "i'i Total operating expenses 4,4S:i, Old 4-J Surplus t.'. (5<>|. :{7-2 14 pjj subsidy proportion l,G4r»,'i'*7 36 Less: New construction (see statement) 70, 22r» 12 New ei|nipment (see statement) 21,23 01,462 77 Net earniugs so ascertained 1, ."v?, 824 59 Five per cent 77,091 23 Cash portion due company for transportation services rendered in 1S81, by actual location : Subsidized : Passenger sl3, drsi ."il Freigiit 4.'>,776 «> Express 327 11 r)9,7:i.j 51 One li.ilf 29,867 76 Unsnbsidized Passenger 7, 71«> 07 Freight 32, -Ji:. :.() Express 212 74 40.174 37 Subsidized mail = ?,!{i of 8ll3,.")67.64 = 870,O24.49, l.-.-?sono-hnlf. :t'>,01>j 25 Unsnbsidizcd mail -= si^f; of $113,507.64 43, ."►43 15 Mail — Leavenworth branch 2,247 72 l.%0, "4.*. 2.". Less five per cent, net earnings, as above 77,691 23 Balance due company iti cash 73, liVl 02 702 PAPERS ACCOJrPANYING THE Particulars of construction and equipment from November 2, 1880, to December 31, 1881, C0N.ST15UCT10X. For November, 1880 : Right of way T.O.OO— A.. 48 :« Fire apparatus at Armstrong 140. 02. .do.. 135 84 Bismarck Grovo l,2«8.'^;i..do.. 1,245 29 For Docemher, 1880 : 1, 429 46 Shops, &.C., at Armstrong 8,785 29 Tools, «fec., at Armstrong 543 11 Bismarck Grove 877 89 Telegraph line, $10, 389.02 take m As per Treasurer's letter of May 1, 1882 4 , 501 04 14,797 33 For the year 1881 : Land at Armstrong 1,210 24 Addition to ships at Ai'mstrong 372 09 Tools and machinery at Armstrong 5, 540 74 Spur track to Armourdale 4, 640 (jlj Pala ce Hotel property at Topeka 8, 000 00 Buildings and improvements at Bismarck Grove 34, 221 39 Telegraph line =i|^ of $32. 15 14 21 53, 999 33 70,226 12 NEW KQUIPMENT. November, 1880, expense on freight cars, U of |18.99 IS 36 December, 1880 expense on freight cars 300 00 During the vear 1881 : 8 cabooses 10,090 04 2 express cars 4, 962 74 3 work cars 2, 146 45 Miscellaneous cars 14, 395 03 License to use steam plow and scraper 1, 000 00 Eoyalty on patent safety gate 1, 250 00 License to use Sati'ord's draw bar 863 00 35, 025 62 Deduct rebate on freight chargea 583 44 34,442 18 11^ = subsidy proportion 21,236 65 NORTHERN PACIFIC RAILROAD COMPANY. Thorough inspection of the property of this company has been made, and great improvements noted over last year. The rapidity with which construction has progressed on both the eastern and western divisions is without precedent in the history of the company. During the year ending June 30, 1882, 285 miles of track were laid with American steel rails, of which 183 miles were laid from the east, and 102 miles from the west, leaving the two ends of the track 573 miles apart on June 30, which, at the present rate of construction, will be lessened about 300 miles hj the close of the year. The final connec- tion of the tracks is expected to. be made not later than the fall of 1883. The building of this trans-continental line will develop an ilnmense area of agricultural and grazing lands. During the past year there has been an unx)recedented flow of new population into the States and Ter- ritories tributary to the road. Careful recent estimates made by the officers of the company, as shown by returns to this bureau, show an increase of population of 31,948 in Oregon and Washington Territory since the census of 1880. In the ten most important towns along the Minnesota division (Duluth REPORT OF THE SECRETARY OF THE INTERIOR. 703 to Fargo) there has been an increase of 16,200, or 200 per cent. In the five counties traversed by the Dakota division, a gain of 22,322, or 150 per cent. A number of thriving towns and numerous settlemeuts are rapidly springing up along both the eastern and western divisions of the road. WESTERJf DIVISION. The inspection of this division extended fiom Portland to Tacoma, and from Portland to the " front," some thirty miles east of where Clark's Fork of the Columbia Eiver emi)ties into Lake Pend d'Oreille. The rapidity of construction and its thoroughness deserves high commendation. The cuts and embankments are wide, well shaped, and clean, the material first-class; the rails of American steel, 56 pouiuls to the yard, and the cross-ties are laid 2,040 to the mile. Owing to the expe- ditious manner in which the road has been built, and a proper regard to economj'-, occasional sharp grades and curvatures have been adopted, but they will be reduced as soon as practicable. Much of the line of the road abounds in excellent material tor ballast, which is being util- ized as rapidly as possible. Construction work is carried on from tlie western end, under the supervision of its own superintendent. The force employed averages about 6,000 men, of whom about 4,000 are Chinese. The difficulties en- countered in the construction of the road up Clark's Fork were extreme. The valley is a mountain gorge, densely timbered with jiine, spruce, beech, and tamarack, often rising to a height of 250 feet; the country broken, rocky, and precipitous. No road existed save a pony-trail along the mountain sides, and numerous rapids interfere with the navigation of the river. To aid the work of construction the company has i)laced a small steamer on a comparatively smooth stretch of the river, 40 miles long, beginning 21 miles above Cabinet Landing, or 28 miles above the mouth of Olark's Fork, where it empties into Lake Pend d'Oreille. About 25 miles of ditficult work still remain on Clark's Fork, after which the character of the country changes and the work will become much easier. To cross the two arms of Lake Pend d'Oreille the com- pany were compelled to build two immense trestles, one of 7,200 and one of 8,400 feet in length. Piles were driven, upon which the bents rest the entire distance ; the stringers, ties, and guard-rails are of most excellent material and very superior workmanship. Guard-rails of wood are bolted every fifth tie through rail, tie, and stringer, some .M inches, and are notched upon every tie, making a very stiong and safe bridge. The trestle and bridge across the Clark's Fork, just above the lake, is also an excellent structure, built this year, under difliculties, the cur- rent being very rapid. A good line with easy grades Iuih been located on the south bank of the Columbia Eiver between Portland and Kalama, a distance of '6dk miles. The Northern Pacific proposes to participate in forming a terminal company for the building of a passenger and freight depot at Portland, and to provide other terminal lacilities for all roads centering at that point. It is estimated that the plans and location of property fully cov- ers all i)resent and future needs for terminal facilities at Portland. EASTERN DIVISIONS. This part of the road has also been inspected and is in good condi- tion. The opening of the road within the past year, from JMiles City to 704 PAPERS ACCOT^rPANYING THE Billings, completes the lino from Dnluth to that point, a distance or IjOliO miles. The company also oi)erates 130 miles of track from Saint Paul to Brainerd, a point on the main line, thus giving a throngh line from both Saint Paul and Duluth to the present terminus of the road. From Duluth, at the head of Lake Sni)erior, to Thomson, a distance of 24 miles, the road is owned and operated jointly with the Saint Paul and Duluth liailroasfc bank of the Missouri, amoiift- which are a large round-house, and machine-shop ; also, a fine two-story brick station buihling of largo dimensions, with mansard roof, broad platforms, and large airy rooms and otiices was being erected, and has been, ere this, completed. The upper floor will be devoted to the use of the division officers. The town, claiming about 1,500 inhabitants, has grown to its present size from nothing within the last two and a half years. On the East aiul West Minnesota divisions. Saint Paul division, Cas- selton branch, and the Wisconsin division, an aggregate track of 575 Jfiiles, 395 miles are of American steel and 180 miles of iron, all 56 pounds to the yard. The bridges generally rest upon piles. There are only four Howe truss and one Post truss bridge on these lines. A guard rail, by 6 inches, is bolted to the outside stringers, 3 feet from the rail. The station buildings are frame, one story high, and of sufficient ca- pacity for the accommodation of the business. They all bear neat signs, designating name and distance. No mile posts are yet up, but it is in- tended to erect them soon. The x)rinci])al shops are at Brainerd, where a new one, 120 by 250 feet, has been built. There have been erected dur- ing the year, one 44-stall engine-house at Brainerd, one of 10 stalls at Duluth, one of 18 stalls at Fargo, one of 2 stalls at Jamestown, and one of stalls at Bismarck. It is intended to have the track all graveled by the fall of 1883. The rail on the line from Brainerd to vSauk Rapids is of iron weighing 52 pounds to the yard, but before the close of the \)reseut year will all have been relaid with steel of 50 pounds to the yard. The water-tanks are standard, frost-proof, IG by 24 feet, and are sup- plied from wells and streams, by steam power ; 72,885 feet of new sidings have been put in during the year ending June 30, 1882. The filling in of the marsh at Saint Paul is being continued as more track room is needed. A double-track iron bridge across Fourth street, an iron-turn table, and other improvements at Saint Paul have been built. The general ofitice building at that place is progressing, and it is ex- pected will be ready for occupancy in January next. ENTIRE LINE. During the year the company expended for new construction $15,044,712.75, and for improvements and betterments on the already constructed roatl, $1,185,044.70. The equipment purchased during the year amounted to $2,138,956.20, consisting of 54 engines, 43 passenger, and 2,079 freight cars. The total equipment at the close of the fiscal year ending June 30, 1882, Avas 1.54 locomotives, of which 31 have the Westinghouse air-brake attachment; 104 passenger cars, 4,787 freight, and 644 miscellaneous cars. During the year there were accidents on the road resulting in the death or injury of sixty -four persons, 16 killed and 48 injured, classified as follows: One passenger and two employes were killed from their own carelessness or misconduct, aiid 13 employ6s from causes beyond their control. Two employes were injured from their own carelessness or misconduct, and 46 from causes beyond their control. The company has been fortunate in the discovery of a valuable and continuous vein of bituminous coal, from 4 to 5 feet in thickness, 100 feet from the surface, and above the water level, in the vicinity of Bozeman, Mont. It is purposed to develop this mine by the time the track reaches there this fall. About 30 miles west of north from Billings, in the Bull Moun- EEPORT OF THE SECRETARY OP THE INTERIOR. 707 tains, coal of excellent quality has been discovered, which will be easy of access to the projected line from Billings to Fort Benton. It is thought that when tliese mines shall have been developed there will be no further necessity of shipping coal from the East for steam and heating purposes. From reports submitted to this office the following statements have been compiled : statement showing the financial condition of the Northetn Pacific Bailroad Company on Junt 30, 1882. UABILmES. First mortgage bonds $24,616,500 00 Interest ou same ................. 661,676 74 Net proceeds, land sales, «fec 10,432,643 24 Accounts payable and advances on bonds 7,110,962 43 Total debt 42,821,782 41 Capitalstock 90,909,132 20 Total stock and debt 133,730,914 61 ASSETS. Coat of road |122,581,020 16 Cost of equipment 4,466,903 82 Real estate 363,698 26 Cash and material on hand . 6,558,061 22 Company's stocks and bonds owned.. 1,683,635 10 Other stocks and bonds owned 552,600 00 Accouuts receivable 783,480 04 Total assets 136,989,398 60 Surplus 3,258,483 99 Comparative statement showing the earnings and expenses of the N'orthern Pacific Railroad Company for the fiscal years ending June 30, 1881 and 1882. 1882. 1881. Difference. Increase or decrease. Amoant. Per cent EAKXINGS. Passenger yroight . Maif K xjjffss MiacoUancoua Gross r-XPKXSKS. Tranapurtatiou Mainlfnancx of wny Moti vp power MMiutcnuuce of cars CU-ueral taxes and routuls Total Net earnings Average miles opt-riif resent management to improve and perfect the property as rapidly as time and money will admit. Kunning down from Portland to Roseburg, on the east side of the Willamette Iliver, the track is in gooerior to that on the older; thejare using goml sawed ties .ind ")6-j)ound rails. The region from this southern teriniMus of the main line is of a char- acter mucli broken by water-cours«'s, ranges of hills and mountains, and some portions of construction will be very diilicult and expensive. 710 PAPBRS ACCOMPANYING THE U])on the lino, siH Inr as selected, there will be a section of 63 miles in length fioni lioseburg south, in the valleys of the South TJnipqua and Cow Creek, showing maximum grades of 53 feet per mile, and very heavy curvature, with 10 degi-ees as maxima. From the end of this section to the valley of the Rogue River, a further distance of 40 miles, three mountain ranges have to bo traversed. The maximum grade on this division will be 116 feet per mile, and of curvatures likewise 10 degrees. The plan is to bnild southwardly to the line of division between Cal- ifornia and Oregon, there to connect with the California and Oregon Railroad, which is being extended north under the auspices of the Cen- tral Pacitic as its " Ore^^on division." The junction of these two roads is expected to occur in the latter part of 1883, and it is fairly assumed that sufficient business will naturally be attracted to this route to cause a fair and early return on the investments. The road on the west side of the Willamette, from Corvallis to Port- land, was inspected upon the return trip. From Albany Junction to Corvallis, a distance of 11 miles, the jour- ney had to be made by wagon. The road from Corvallis to McMinnville, a distance of 47 miles, is in most excellent condition, good rails and ties and broken rock bal- last the whole distance, making a safe track for both rapid and heavy trains. From McMinnville to Portland, 50 miles, the track needs better ma- terial of all kinds, and assurances have been given that this section of the road would receive attention at the earliest practicable moment. It is indeed to be hoped that the efforts of the present management may meet with success, in the endeavor to improve and better the property and business of this comi^any. The road runs through the rich and productive Willamette Valley, whose soil seems as fertile after years of continuous self-same crop rais- ing, as at the beginning. There is rarely a failure in the crojjs, and the yield is extraordinary. Properly managed, although built at a heavy expense, the local and through business of the road, after its junction with the California line should be more than self-supporting. From the latest financial returns made to this office, at the date of writing, the following statement is submitted, showing the assets and liabilities, December 31, 1881: LIABILITIES. Firat-mortgage bonds $G, 000, 000 00 Other funded debt 51,750 00 Interest on other funded debt . - 20,035 51 Pay-rolls and vouchers -. 39,724 25 Bills and accounts payable 1,694,673 38 Total debt 7,806,183 14 Capital stock 19,000,000 00 Total stock and debt 26,806,183 14 ASSETS. Cost of road and fixtures 12,814,147 08 Equipment -. . 815,764 93 Real estate 748,878 23 Cash and material on hand , - 97,314 24 Bills and accounts receivable * 5,052,523 87 Total 19,528,628 35 Profit and loss ("capitalized debt") 7,277,554 79 REPORT OF THE SECRETARY OF THE INTERIOR. 711 Followiug is a, statement sliowing the eaiiiiutcs and expeusea of the road for the fiscal years ending June 30, 18.S1 and 1882: Difference. Year cDding i Year ending I June30,18K.'. [ June 30. IMl. ' j^^„^^^„^ decrease, i EAKNIXGS. Passeneer rieifjht Mail ExproHD Miecellincous Total EXPENSES. Transportation M.aintenauco of way Motive power Maintenance of cara General expenses aud taxes Total Ket earnings Average miles operated . . . . Earnings per mile , Expenses per mile Not earnings per iiiilo m7,^->6 29 o:t2, 590 27 24,513 73 13, fcOO 00 40, 700 56 935, 177 85 109, 103 75 403, 799 84 86, 480 78 :i3,4I8 23 76, 944 46 709, 747 00 225, 430 79 310 $3, 016 70 2, 289 50 727 20 3:n, 1:10 40 22, 686 87 13, 050 00 15, 397 83 C14, 783 82 Amount. Per cent^ f232, 512 72 Increww . . fRR, 045 67 I iicrease . iDure.tso . , Increase . , Incrcaro . . Increase . , 201, 402 87 1, 820 80 750 00 31, 308 73 320, 394 03 37, 940 96 203, 003 20 63, 746 44 20, 388 33 106, 200 84 491, 279 83 123, 503 99 281. 33 $2, 185 27 1, 746 27 439 00 Increase . . Increase . . InoreMe . . Increase.. Deci«a8e . Increase . . Increase . Increase . Increase . Increase . Increase . 11,162 79 200, 796 Ml 22, 734 84 13, 029 9<) 29, 256 38 218, 4G7 23 1831 Alt 543 23 288 20 36.57 60. 5.i a 05 5.74 203.33 52.11 11.89 98.91 35.82 63.90 27.64 44.46 lOU 926 SO I 82. 52 28. 67 I 10. 19 .S8.04 31.10 MISSOURI PACIFIC RAILWAY COMPANY. This "system" is composed of the following roads, each of whicli will be treated of in their respective order, so far as they may come within the pnrview of this bureau: Mili'8. Missouri Pacific Railway : Maiu Hue, Saiut Louis to Omaha 4% Brauclies aud exteusious 512 Total Missouri Pacific proper 1,008 Missouri, Kansas ami IVxas Kailway : Maiu line, Hannibal to Denison '>T.'> Brauehcs and exteusious 7'J»'> i,:uii Central Uranch Union Pacific: Maiu line, Ateliisou to Leuora '-."■'• Brauclies aud exteusious '.'■'» — 3a-< Total main line, lnanclies, and divisions 2, C'.»7 In addition to tin- above, there is eiubraced in tho "system" aiul controlled by tlio management the ioih)\viuj!;: Saint Loni.s, Iron Mountain and Soulhern Railway: Main line, 8aint Louis tt) Texarkana I'.'il Branches aud extensions SM — two Texas and Pacific Railway: Texarkana to Kl V-.ttin Sii'.) Eastern division branches '/TI' New Orleans division Xl'2 I,4t0 712 PAPERS ACCOMPANYING THE luteniational and Great Northern llailroad (not aided either iu laudB or bonds): Gulf division, Longview to Houston 232 Branches and divisions 118 350 San Antonio Division : Main line, Palestine to Laredo 415 Round Rock to Georgetown 10 425 775 Total mileage emhracedin system 5,772 MISSOURI PACIFIC RAILWAY. The company to whicli the Missouri Pacific was successor was in- corporated by charter approved March 12, 1849, under the name of the Pacific Kaih'oad Company, with a capital of $10,000,000 to build a road from Saint Louis to Jefferson City, and thence to the western boundary of the State. To aid in the construction of this work Congress made a grant of land equal to 3,840 acres to the mile — in all 1,161,204 acres. The southwest branch was taken possession of by the State in 1866, for non-payment of interest on subsidy granted by the State ($7,000,000), and sold to the Atlantic and Pacific Eailroad Company, which com- pany, in 1872, leased the line of the original company. The two roads were operated under one management until 1876, when the Pacific road was sold under process of foreclosure of the third mortgages and conveyed to the present company. The main line from Saint Louis to Kansas City was gone over on the regular trains, and no particular chance to make detailed observations was accorded. The line'>from Kansas City to Omaha, on the west side of the Missouri, had just been completed when passed over by the ofiflcw-s of this bureau. Good rails and ties were used, but the grading and ballasting (with " gumbo ") should be covered with a liberal depth of gravel or broken rock to bring the track up to a fair and safe standard. No reports have been received from the company on the business and condition of this road, but only reports for the Missouri, Kansas, and Texas ; Central Branch Union Pacific, and Saint Louis Iron Moun- tain and Southern. The Texas and Pacific Company make an annual sworn report as required by law, a copy of which is printed as Ap- pendix 13. MISSOURI, KANSAS AND TEXAS RAILWAY (KANSAS AND TEXAS DIVIS- ION). This road, which has now lost its identity, is operated by the Mis- souri Pacific as its " Kansas and Texas Division." Inspection was made in May last of onlv a part of the road fi'om Sedalia, Mo., to Vinita, Ind. T. On the land-grant portion the maximum grade is 61 feet to the mile, the sharpest curve being onlj' five degrees. A few miles are ballasted with stone, but the principal part of the road is kept up in fair shape with earth. Some steel rails, of 52 pounds to the yard, have been placed ill the track, and the cross-ties are principally of cedar and oak. The bridges are apparently liglit, although well protected by inner iron guard rails, the approaches being well and solidly filled iu with rock ballast. Those which have been rebuilt are very good, and of a REPORT OP THE SECRETARY OP THE INTERIOR. 713 better and more substantial character. Station buildings are mostly ordinary wooden structures, but are sufficient for the present business. The road having been absorbed by the Missouri Pacific system, re- ports to this office have only been made as to its eaiuiugs and ex- penses, from which the following statement is comi)iled: Comparative statements of earnings and expenses. Fiscal year end- ing Juue M, 1882. Fiscal year end- ing June 30, 1881. DiflVrence. Increase or decrease. Amount. Per cent. EAKKIXGS. Passenger ^ Preight ................ $1,314,669 24 4, 304, 570 81 135,507 79 105, 035 88 66,701 26 $879, 195 13 3, 272, 050 70 119,010 a 67, 675 00 58,631 76 Increase . . Increase . Increase . . Increase .. Increase . . $.3.'!5.474 11 1,032. S'JO 11 16.4'j: 14 a7,360 hS 8, 009 50 38.15 ai. 55 MaU 13.|<« Express 55.20 MiBcelIa:ne«aB „ 13.76 Total 5, 826, 484 98 4, 396, 563 24 Increase . 1,429,921 74 32. S2 EXFEXSEB. 1, 021, 202 27 1,358,713 30 1, 016, 404 71 339, 030 11 118,325 53 590, 959 24 682, 578 85 629, 088 48 239, 580 14 117,007 31 Increase . Increase . Increase . Increase . Increase . 430, 243 03 696, 134 45 387,316 23 99,449 97 1. 318 22 72.80 Maintenance of Tray 105.06 61. r« 41.51 1.12 Total op^rRting 3, 853, 675 92 2,239,214 02 Increase . 1, 614, 461 90 ~l84, 540 18 72.09 Net earnings 1, 972. 809 06 2, 157, 349 22 Decrease a55 Average miles operated ........ 885 36 809 04 Increase . 76 32 9.43 6, 580 92 4, 352 67 5.434 29 2,7C7 74 Increase . . Iiicrease . 1, 146 63 1,584 93 21.09 Operating expenses per mile 57.26 Net earnings per mile 2,228 25 2,666 55 Decrease.. 438 30 16.43 SAINT LOUIS, IRON MOUNTAIN AND SOUTHERN RAILWAY. This company was formed in 1S74 by the consolidation of tlie Saint Louis and Iron Mountain ; the Arkansas Branch; the Cairo and Fultou, and the Cairo, Arkansas and Texas railroads. During the past year the greater part of the capital stock of the Saint Louis, Iron Mountain and Southern Railroad Company was pur- chased by the Missouri Pacific Kailioad Company, tlirce sbarc.-< of the latter being exchanged for four of the former. The object of this pur- chase is to eftect an ultimate consolidation of the two (:onii)anies. The gauge was formerly 5 feet, but was changed to the standard 4 feet 8i inches, on June 29, 1879. The road was gone over in the latter part of last May ; track was good, but in some places very much out of line, owing to long and heavy rains. Where no rock or gravel was used, the dirt road bed was very much softened and had been washed away in many places. It is the intention of the company to ballast the entire line as rapidly as possible with stone or gmvel ; also to increase the present uuuiber of cross-ties to 3,000 per mile. The greater portion of the road is laid with COpoimd steel rails, and split rail switches are used. The bridges are well protected with wooden guard rails, and the approaches to the same are solidly filled in with rock ballast. 714 PAPERS ACCOMPANYING THE The itrincipal freight traffic of the road consiats of cottou and iron ore shipiiientH. Tlie Hot iSi)riiig.s Eailroad, 3^ foetgauffe, ruuiiiug from Malvern to Hot Springs, Ark., was gone over. The track is good, rolling stock fair, and business profitable. The road, which is only 2."> miles long, has good working arrangements with the Iron Mountain Koad, and although operated separately is classed as a branch of it. The trathc over this short line is reported as being good the year round. Two hundred and sixty-five acres of land (which includes all of the hot springs) are reserved by the government. On June 30, 1882, Congress appropriated the sum of $100,000 for the erection of an Army and Navy hosi)ital on the government reservation at or near the Hot Springs. An ai)propriation was also made for the improvement of Hot Springs Creek, and for other imi)rovemeuts upon the Hot Springs Mountain Reservation. These celebrated sj)ring8, in which the government has a large inter- est, attract a large passenger trafidc over the road, which, with a very considerable cotton shipment, renders it an important feeder to the main stem. Heavy rains just before the inspection had caused serious washouts of track and bridges, which were being promptly repaired. The foUoiving statement has been compiled from monthly reports rendered to this office by the Missouri Pacific Company, showing the earnings and expenses for the years ending June30, 1881 and 1882, of the Saint Louis, Iron Alountain and Southern Railuay. Tear ending June 30, 1882. Tear ending June 30, 1881. , Difference. Increase or decrease. Amount. Per cent. EAliXlXOS. $1, 447, 535 G5 5, 501, 914 95 145, 308 35 IGl, 027 72 95, 326 98 $J, 437, 540 86 5, 143, 780 80 108, 040 52 164, 838 34 128, 339 88 Increase Increase Inerea.se Decrease.... Decrease $9, 994 79 358, 134 15 37, 207 83 3,810 62 33, 012 90 .69 Freight 6. to Mail 34.49 2.31 Miscellaneous 25.72 Tota,l 7, 351, 113 65 6, 982, 540 40 Increase 368, 573 25 5.27 EXPENSES. 1, 327, 928 21 1, 352, 150 18 961, 671 97 291, 454 04 252, 367 46 1,412,963 25 1, 683, 693 67 1, 029, 772 b9 328, 191 14 227, 899 71 Decrease — Decrease.... Decrease Decrease — Increase .... 85, 035 04 331, 543 49 68, 100 92 36, 737 10 24,467 75 6.01 19.68 6.61 11.19 10.73 Total 4, 185, 571 86 4, 682, 520 66 Decrease — Increase — 496, 948 80 10.61 3, 165, 541 79 2, 300, 019 74 865, 522 05 37.63 713. 83 68t. 50 Increase 29.33 4.28 $10, 298 12 5, 863 54 $10, 200 93 6, 640 79 Increase Decrease $97 19 977 25 .95 14.28 4, 434 58 3, 360 14 Increase 1, 074 44 31.98 OiENTBAL BRANCH tJNION PACIFIC. This road was originally organized under the corporate title of the Atchison and Pike's Peak Eailroad Company, February 11, 1859. It was i)rovided for as one of the branches of the Union Pacific in the act incorporating that company, and received a grant of lands from the United States amounting to 245,100 acres, of which 187,007.99 have been patented. REPORT OF THE SECRETARY OF THE INTERIOR. 716 In addition to tliin, tini jfovcrunient loaueil the couipauy bonds to the amount ofdl,GU(),(»00, or *1(;,()00 p«'r mile from Atchison to Waterville, KanH., a distance of 100 mih^s. The load piiicticaTly lieh^nfjs to the Union I'acitic Kail way Company, but is operated by the Missonii Pacific as its " Central Branch Division.'' Insi^ection of this ])i'operty vrns made during the hitter part of AugiiHt last. The line owned and operated is 100 miles in length, tVoni Atchison to Waterville, Kans., in addition to whicli there are leased of the Atchison, Colorado and Pacific Railroad Company 'jrn'.-'J miles, and of the Atchi- son, Jewell County and Western Kaili\ia«l C«nni>any, .'{■{. s miles, making a total of 380.1 miles. The road runs through a comparatively new country, which is being settled uj) gradually. Improvements on the line are rather meager; the rails are all of iron, but in some prices old chairs are being rephice«l with splice bars. The equipment of this division consists of 31 engines, 15 i>asscnger cars, 8 bajrgage, mail, and expi-ess cars, and 578 freight ears. The follow- ing imi>rovements have l)een made during tht^ year: !Nine miles of tnu-k were ballasted with stone and 11 miles witli gravel; 38 miles of new iron rails were laid ; 2 miles of new side tracks put in, and the masonry of 21 culverts renewed. On !Sei)tembcr 30, 1882, there were 20 miles of rock and lOi miles of gravel ballast in the subsidized portion of the road. Fourteen wooden Howe truss bridges, aggregating a length of 1,420 feet single track, one of 54 feet, double track, and one iron three girder, double-track bridge of 54 feet are the principal features relative to bridging. From reports rendered the following statement has been prepared, showing the earnings and expenses of the subsidy portion of the line: Tear ending JunoHu, 1S*<2. EAUMSi.S. Passenger Ficiglil Mail Express Miscellaneous Total EXPEX6ES. Transportation Muint<'Dsincu of way , Motive j»o wer Mnintcnaucu of cars Geueral rspenses nn25 55 88,758 74 22, 187 17 12,381 33 320, 2U1 04 Inrrcaiie . . i Increase ..I I'lcrpiwo ..' Inert aso .., Derrcaao .1 9, 272 10 10.723 28 .V974 19 :>. rjo 8a 3, 8X8 34 Iucr«^allo . . 123, 910 OU 301,802 86 303, 249 36 i Decre«H« 27,308 18 Per cent 19.03 18. M 33.06 10. K 62, U31 12 10. 30 14.47 9 36 6.73 23. Uo 31.40 9.04 79, 830 30 I 39. 03 100.00 "$4,"Mi'ir 3, 292 01 irn rni 1,239 10 2, 082 4* DeoreM0 718 89 tS9. U3 716 PAPERS ACCOMPANYING THE TEXAS AND PACIFIC RAILWAY COMPANY Chartered in LS.'JS by tlie State of New York under the title of Atlan- tic and Pacific, changed to Texas Western; afterwards, in 185G, to the Southern Pacific; and on March 3, 1871, the Congress of the United States approved an act chartering the company under its present title. The present com])any acquired the properties of the Southern Pacific, the Southern Transcontinental, and the Memphis, El Paso, and Pacific Eailroad Companies. The Southern Pacific Eailroad Company was a consolidation of the Yicksburg, Shreveport and Texas, chartered in Louisiana, and the Southern Pacific, organized under tiie laws of Texas. That portion of the line in Louisiana, about 20 miles, was built by the Vicksburg, Shreveport and Texas Company ; the section of the road from the east line of Texas to Longview, Tex., about 40 miles, by the Southern Pacific Company. The rest of the line in Texas was built by the present com- pany. The capital stock authorized is $50,000,000, of which $28,127,700 has been issued and paid up. The act of March 3, 1871, section 13, requires that the president of the company shall annually make a sworn statement to the Secretary of the Interior, exhibiting the financial condition, receipts and expen- ditures, number of miles of road constructed, &c. This report has been received, a copy of which is submitted as Appendix 13. The operations of this company during the year ending June 30, 1882, have been extensive in the enlargement and addition to its property, as evidenced by the fact that during that period 569 miles of track have been built, showing at the close of the fiscal year 1,389.87 miles of road; also in adding to the equipment 37 engines, 18 passenger cars, 933 freight cars; showing the equipment on June 30, 1882, to be 121 engines, 85 passenger and 2,942 freight cars, and 51 miscellaneous cars. There is a decided improvement in the appearance of the new track over the older portion, better material being used, and a wiser intelli- gence exercised in its construction. The road extends as far west as Sierra Blanca, Texas, from which point it has the use of the joint track of the Southern Pacific and the Galveston, Harrisburg and San An- tonio Companies to El Paso, a distance of 92 miles. The road generally passes through a fine stock-grazing country, until within some one hundred miles east of the Guadalupe Mountains, where the soil is barren and dry, with large quantities of alkali upon the sur- face. The want of good water is severely felt over a considerable por- tion of the road, but an eflbrt to overcome this is being made by sinking artesian wells. On the western division of the road water has to be carried on tank-cars for long distances for supplying engines. Much trouble is experienced on account of the water being so heavily charged with alkali, which not onlj' causes the boiler to "foam" so badly that the engineer cannot ascertain the height of the water, conse- quently imperiling the safety of the train, but creates a deposit on the tubes which renders it diflScult to raise steam sufficient for heavy trains and makes it necessary to clean them after every round tri]i. It also destroys t]»e iron tubes, causing great inconvenience an,d expense. Many of the roads are making experiments with a view of testing the expe- diency of substituting copper for iron in the construction of boilers. The couutrj^ along the line of the new road is rapidly developing. One town, Colorado, in Mitchell County, where less than two years ago there was not a house, now claims 1,000 inhabitants, and is the largest live-stock shipping j)oint on the road. REPORT OF THE SECRETARY OF THE INTERIOR. 717 The equipment of the ox)mpany is entirely insufficient for the accommo- dation of its business. Many train loads of grain from California are being shipped over this newly opened line, the traffic calling for more cars than the supply. Live stock is being driven in from ranches for hundreds of miles, and awaiting facilities for shipment. Hundreds of car-loads of grain were waiting for movement, on account of lack of sufficient motive power. Kvery wheel on the road is in constant demand, and the volume of business seems to be limited only by the facilities for taking care of it. It is proposed to increase the equipment as rapidly as possible, until a sufficient amount shall have been obtained to enable the company to handle with dispatch the rapidly increasing freights offered for ship- ment. Convict labor in gangs of from 50 to 100, white and colored, is employed by contract with the lessees of the State prison, and road- masters say that they work well, as compared with other section labor, which is mostly colored. They receive the regular rate of pay, ?. e., $1.15 per day. The lessees of whom they are hired, guard and feed them, whilst the railroad foreman or superintendent directs the work. Land grant. — By a general law of Texas this road, in common with others in the State, is entitled to a land grant of 16 sections (10,240 acres) to the mile. The act of Mai'ch 3, 1871, granted the company 40 sections per mile in the Territories, and 20 sections per mile in California; but the Texas and Pacific Railway Company has as yet constructed no road in the Territories or the State of Calilbrnia. From the sworn statement of the company heretofore mentioned, the following showing of the financial condition on Juno 30, 1882, is sub- mitted : Financial condition of the Ttxa* and Pacific Bailtcay Company, June 30, 1882. Capital stock : Authorized §50.000,000 00 Issued 28,127,700 00 Full paid ti--*, 127,700 00 LIABILITIES. First niortf;;asc, eafitem division bonds $3,0(19,000 00 Con8olidat(, KU.OOO 00 Income and land ^rant eastern division bonds H, 784,0<10 00 First mortfiaRe, Rio Grande divinion 13,02H,000 Oft Old land bonds 62,000 dO :U. 374, 000 00 First mortgage New Orleans Pacific bon(l« 0,270,000 On School fund loan, State of Texas 174.r.lH Hi Fractional bond scrip, income bonds 17, 3"«2 71 Interest scrip income and land bonds, redeemable only in capital stock or land ". y44,200 00 Fractional land scrip JI,3r>4 •)♦> Old interest scrip ;'>95 00 l.lMacW) Accrued interest on bonds to Jnly 1, l^^Z 40."), 2t».'i (Hi Coupon New Orleans Pacific bou("l» due July, 1, l-^C* 12U,t>0 M Total debt 42.977,lir> (>1 Capitalstock 2.'<.127,700 (K) Total stock and debt 71,104,815 61 718 PAPERS ACCOMPANYING THE A8SHTS. Securities in treasury $1 , 14 1, 531 06 VnHb in treasury ../. 120,102 05 iMateriiil uu liaml ;540, 111 61 AccountH receivable $774,928 47 Less accounts payable 376, 009 07 IWa, 919 40 Capital stock New Orleans Pacific Railway Company 6, 130,200 00 Construction accounts representing 1,050 milea of constructed and I equipped road 51,539,539 18' Property account, real estate, &c 41, 361 72 ' 59,711,765 02' Deficit 11,393,050 59 Also, about 4,793,885 acres of land in the State of Texas, a portion only of whicli has been valued. Receipts from all aouraes, and how applied, for the year ending June 30, 1882. By amount on hand June 30, 1861 $664,699 79 By receipts from — Freight 3,165,724 67 Passengers 982,160 63 Mails 8.'), 204 46 Express 93,306 97 Rentals 49,930 89 Traffic contracts 1:59, :593 02 Miscellaneous 13, 284 98 Interest 459,675 00 Bonds, &c 6,650,069 00 Capital stock 13,202,700 00 Land accounts 329,010 91 Accounts, collectible 41,122 42 Total *. 25,876,282 74 To payments for — Conducting transportation 977,225 43 Motive power 1,379,911 13 Maintenance of way 1,280,130 85 Maintenance of cars 283,107 41 General expenses 156, 660 02 Taxes 51,920 04 Rentals 22,875 00 Interest on bonds 1,637,085 00 Property and franchises 11,121,892 80 Bonds and stocks 2,886, 774 56 Premium and discount 682,886 41 Car service l 7f^,114 50 Sundry accounts : 4, 153, 028 23 Balance on hand June 30, 1882: Cash $120,102 05 Material 340,111 61 Due from buudriea 703, 8r>7 TO 1,164,07136 25,876,282 74 REPORT OF THE SECRETARY OF THE INTERIOR. 719 Comparative statement of earnintfs and expenses for the fiscal years ending June 30, 1881 and 1.5'^vS, respectively. Tear pn2, IfiO B3 8,3ns, 117 6U Hr>, 'J04 46 on, 3M 97 C'J, 215 87 Difference. Year ending I June 30, 1881. iT„^,„..„„, llncreaiieor decrease. $712, S93 73 Inrreaoe . a, 500, ()«;t 2« Increase . 54,4!<0 77 I Increase. 40,245 10 lucreaso. 23, 7B5 30 : Increase . 4, 529, 005 62 3, 331, 168 18 1 Increase . Amount. f 3A0. VK M Wj5, 034 43 3'J, 723 «0 5.3,061 87 3U, 450 hi 1, 1U7, 837 4« 1, 055, 339 03 1,280,130 85 1,370,911 18 2r!:i, 107 41 231, 455 06 675,907 19 I, 009, 457 59 615,110 00 198,951 M 208, 960 31 4, 429, !IH 3H | 2, 768, 876 73 Increase . IniTuuse . Increase . Increase . lucreaso . Increase . 99,061 24 562,701 43 { Decrease 379, 432 74 210,673 26 764. Hil 13 84.155 77 22, .'104 75 1,661,567 65 463,730 19 1,093. 00 $4, 147 44 4, 056 73 80 71 602.00 I Increase. Per cent. 37.82 33.20 & locnted at Al- buqueniue, as ar«^ also the ])rineipal shojis and engine hon«e«. Frotu thence t(> Isleta, a di.stanee of 12 miles, the track of the .\fchi.?5 Total debt 21,r)r^'-.,4«9 ^^7 Capital stock 2r>,(KX),000 00 Total stock and debt 4t;, OG'), 4G9 67 724 PAPERS ACCOMPANYING THE ASSETS. Cost of road and equipment - $44,5^3,351 09 Cash and material on baud 4.">3, 498 64 Stock and bonds owned 1,<)1R, 008 97 Accounts and bills receivable 989, iJ50 47 Total 47,595,009 17 Surplus 929,539 50 Tear ending June 30, 1882. Passenger Freight Mail Eicpresa Mi^ellaneons. Total. $690, 502 74 2,331,252 93 77, 036 79 59,061 32 28,417 05 3, 187, 170 83 EXFEK6E8. Transportation Maintenance of way Motive power Maintenance of cars Greneral expenses and taxes. Total. Net earnings Average miles operated . Earrings per mile. Expenses per mile Net earnings per mile . 403, 417 59 366, 677 58 95, ()70 55 623, C42 42 153, 294 86 1, 642, 703 00 Difference. Year endijig Jnne30,1881. !j„^^^^^„^ decrease. $539, 638 .'59 2, 398, 715 49 C4, 180 83 51, 378 90 7, 939 37 Increase . . Decrease. Increase . Increase . , Increase . Amonnt. $1.';0, 8G4 15 67,462 56 12,855 90 8, 582 42 20, 477 08 3, OGl, 853 18 Increase . 125, 317 65 339, 239 98 625, 983 96 330, 244 04 95, ]33 12 109, 475 79 1, 500, 076 89 1, 544, 467 83 654.31 1, 561, 776 29 587. 91 Increase . . Decrp,ase..| Decrease. Increase . Inarease . 64, 177 61 259, 306 38 234, 573 49 528, 509 30 43, 819 07 Per cent. Increase . Decrease. Increase . 142, 626 11 17, 308 46 66.40 27.94 2.79 20. 02 10.70 257. 93 4.08 18.89 41. 42 71.01 55.55 40.03 9.46 1.08 $4, 871 04 2, 610 59 $5, 208 03 2, 551 54 Decrease. . Decrease.. $336 99 40 95 66. 45 1.56 2,360 45 2, 656 49 Decrease. 11.14 ATCHISON, TOPEKA AND SANTA F^ KAILROAD COMPANY. This company was incorporated March 3, 1873; and under the act of Congress approved February 9, 1864, granting lands to the State ol" Kansas, it is estimated bv the General Land Office that it will be en- titled to about 3,005,870 acres. On June 30, 1882, 2,745,938.47 acres had been patented, and the company had sold to December 31, 1881 , 1,058,758.53 acres for $6,087,720.03. On December 31, 1881, the company was operating 1,789.67 miles of road. The rolling stock added during the year was 94 locomotives; 94 passenger cars; 3,491 freight cars; 601 hand and push cars; and 10 miscellaneous cars, making total equipment at close of 1881, 251 locomo- tives, of which 77 have automatic break attachments ; 194 passenger cars ; 8,796 freight cars ; 1,253 hand and push cars, and 26 miscellaneous cars. There were accidents on the road during 1881 resulting in killing or injuring 282 persons, of which number 30 were killed and 252 were in jured. The lines of this company have been rapidly increasing, and at thi.s date have been extended from Kincon, K Mex., 52 miles east of Deming, REPORT OF THE SECRETARY OP THE INTERIOR. 725 to El Paso, 77 miles south, where it connects with the Mexican Central Kailway, which is completed as far south as Chihuahua, in Mexico. The company anticipates a profitable business as a result of this connection, the objective point of which is the city of Mexico. It has also made running arrangements with the Central Pacific Com- pany for the use of its Southern Pacific track from Deming to Benson, Ariz., a distance of 173 miles, from which point it has constructed its New Mexico and Arizona road, 95 miles south to Los Nogales, on the Mexican boundary line, where it connects with the Sonora Railway, which extends from that point via Hermosillo to Guyamas (270 miles in length), on the Gulf of California, in Mexico. A favorable opportunity occurred for obtaining absolute control of the Sonora Railway, of which the directors of the Atchison, Topeka and Santa r6 Company availed themselves, and they believe that the purchase Will prove a very desirable and profitable one in every par- ticular. From annual reports rendered to this office for the year ending De- cember 31, 18S1, the following is ascertained: Financial condition. LIABIUTIES. Fixst-mortgage bonds $7,041,000 00 Other funded debt 13,469,000 00 Interest on other funded debt 709,386 59 Dividends unpaid Z^Z''^'^ ^^ Bills and accounts payable 5,746,053 31 Total debt 27,712,874 40 Capital stock and scrip 47,162,700 00 Total stock and debt 74,d75,574 40 ASSETS. Cost of road and eqtiipment .^. §09,313,186 46 Cash and materials on hand .^. -.-• 3,0-21,943 53 Other stocks and bonds 3, 577,763 2:> Due from the United States 834,018 29 Bills and accounts receivable 4,196,289 82 Total 80,943,201 35 Surplus 6,067,626 95 " Following is a statement showing eaniings and expenses of the road for the year ending June 30, 1882, as compared with the previous year ending June 30, 1881, showing a decided increase in all items : Tear endlns: Juno 30, 1S8'J. Tear ending June 30, 1881. Difference. Increase or deoreaae. Amount. Per cent. EAUNINGB. PassenRor ~ Preight Mail. $3,634,023 M 0,785, )2H 'iO 240. 602 60 278,921 04 80. 970 07 f2,n2,o«n 3.-; 7,741,8.52 8!» 1.54,072 4!> 170.4X5 4-; 38,742 4K Increase. Increase. Increase. Increase . Increase . $1,521,000 20 2, 043, 275 40 01,930 11 108, 435 00 42, 2a:i 50 72.01 2«.. SO .59. 44 6:i.Gl Miscellaneous 100 OU Total 14, 02,^ 651 5:i 10, 217, 810 fl'J ' Increase . .! .■1.807,834 00 37.21 1 . . — " 726. PAPERS ACCOMPANYING THE Year ending Juno 30, 1882. Year ending June 30, 1881. Difference. Increaso or decrease. Amoant. Per cent. F.Xl'ENSIiS. Transportation $1, on.'-,, 122 47 4, 054, 303 03 1, 818, 115 37 703. 723 32 307, 195 48 $1,381,473 33 2, 470, 471 47 1,464,048 14 495, 483 03 245 aO'J.Sl Increase . . Increase . . Increase . . Increase . . Increase . . $.-.23, 649 14 1. 583, 021 56 354,067 23 298, 240 29 ai,8»2 67 .37. 87 64.08 24.18 Malntfiianco of cars General expenses and taxes 60.19 2.j. 19 Total 8, 878, 549 67 6, 056, 778 78 2, 821, 770 89 46.58 ' ' 5, 147, 101 86 4, 161, 037 85 | Increase . . j 98C, 004 01 23. C9 1 , 044. 33 1, 526. 75 | Increase . . j 117. 58 7.66 Sarnmga per mile $8, 529 70 5, 399 49 $6, 692 52 3, 9C7 10 Increase . . Increase.. $1,837 18 1, 432 39 27.45 Expenses per mile 36.09 Net earniuga per mile 3, 130 21 j 2, 725 42 I Increase .. 404 79 14. d2 SOUTHEBN PACIFIC RAILROAD COMPANY. NOUTHEKX DIVISION. Inspection of tlie property owned and operated by this company was made in July, 1882. The length of road owned is 714.15 miles, of which it has leased to the Central Pacific Eailroad Company 553.26 miles, leaving 1G0.89 as operated by this company. The road is in excellent condition, and runs through a beautiful por- tion of California, notably that part through the Santa Clara Valley extending from San Francisco for 82 miles to Camadero. Immense farms, yielding richly in grain, line the road on either side, and an extra quality of stock is raised in abundance. The main line, which extends from San Francisco to Monterey, 125.1 miles, is almost entirely laid with steel rails, iron rails being used on the branches, and is entirely fenced. Extensive warehouses, for storing and handling grain, are located at convenient points, and are said to answer all requirements. Large buildings of this class are at San Jose, Castroville, and Salinas, the latter being 8G0 feet long by 58 feet wide. The Pacific Improvement Company has erected at Monterey the "Hotel del Monte," a large and most admirably appointed hotel, which is situated in the center of beautifully improved grounds, and exten- sive arrangements have been made, at large expense, for supplying the premises with an ami)le quantit^^ of water for irrigating and other pur- poses. A large and commodious bathing-house has also been provided. As the patronage of this resort is not confined to any particular season of the year, the road derives a corresponding increase in its business. A great variety of fish are caught in abundance in Monterey Bay and shipped to San Francisco. At Soledad, the terminus of one of the branches, large shipments of stock aie made to San Jose, the principal stock market for that section of til e country. Til ere are few bridges upon the road, the principal one being across the Pajaro River, and consists of short trestle approaches to the main structure of two spans, 172 feet each, Howe truss pattern. Work has been commenced for the renewal of this bridge, wliich has been built about six years. This company operates a short narrow-gauge road from Pajaro to Santa Cruz, a distance of 22 miles, which was found to be in good con- dition and doing a fair business. REPORT OP THE SECRETARY OF THE INTERIOR. 727 There are 22 bridges on this branch, or an average of one per mile, some of them being very high, one 95 feet above the water. Nu guard- rails are used, with the single exception of a two span Uowe truss across a deep ravine, which is being strengthened, and is provided with inner iron guards. It is contemplated to increase this branch to the standard gauge at an early date. The northern (livision of the Southern Pacific had ten accidents diiriug the year ending June 30, 3882, resulting in death or injury to ten persons. Three employes and four other persons were killed from their own carelessness, and one passenger, one employe, and one other i^erson were injured from their own carelessness and misconduct. From reports rendered to this oflice, the following statement of the financial condition of the company on June 30,1882, has been compiled: LIABILITIES. First-mortgage bonds $28,087,000 00 Interest on same 25, 8()0 OU Pay-rolls and vonchera G4, 7;{y c7 42 Capital stock 3G, 7U3, 900 00 Total stock and debt (TT, 201, 757 42 A3SKTS. Cost of road and fixtures $fi2, 47 1 , 940 Cfi Equipment 1, Wi, 91 1 92 Real estate 642, 'iKii> 74 Cash and material on baud Iw7,7y7 c2 Other stocks and bonds 425,000 00 Due from the United States 3, '.inO 13 Bills and accounts receivable 2,003,086 48 Total 68,4:U,0citi 75 Surplus 1,229,331 33 The following is a comparative statement of the earnings and ex- penses for the fiscal years ending June 30, 1881 and 1882: EABSIX08. Passenger Freight Mail Express Miscellaneous'' Total. r.Xl-KNSKS. Transportation Maiutuiiuiioe of way Motive power Maioteiinnre of cars General expenses and taxes . Total Kei earnings Average miles operated . Earnings per mile.. Expenses per iiiilu. . Net eamiugs . Year ending June 3V. im. Year ending Juno 30, ma. $.502, 200 07 654,187 33 12, 400 56 13, 502 09 1,079,018 89 $4r)l,782 32 UU2.434 40 12,400 50 12,428 15 1, C80, 100 40 2, 8«1, 368 04 I 2, 7S9, 211 89 343, OM 74 167,094 98 16fl,738 93 4»,C90 14 320, 349 09 231,090 00 141,827 04 176, 100 r>3 44, 575 80 117,031 W Diflbrence. Incn^ase or decrease. Increa."(e lucreiiso Amount. fA 417 75 ."41,752 93 Inrreuao ..( Docreasu-.i 1,133 94 1, 147 67 IncreMe 102, 107 05 Per cent. 11.15 9.12 .00 8.70 Tiicroano . lucreaso . Deereiuio IneroHse . Iiici'ea»o . II, W7 74 2'., WJ7 94 (V 421 00 :>, 114 28 203, 318 01 ' 6.18 18, 23 3. 04 11.24 17X72 950, 560 78 710, 694 41 j IncreoAO . L 1, 910, 808 10 2, 048, 517 4* I D«croM«. 720.96 726. 00 ♦3, 036 07 1,307 58 S, 628 40 $3, 796 .M I luoreoae . 977 02 I Increase . 2. 817 02 ! DcniBM. 239, 800 37 83. 75 i:r7, 709 32 I e. 72 $140 ra yjo 1*6 189 43 3.70 83.75 C.73 * Includes rentals of linos leased to tlio Ciiuiul l'uv.'itlc. 728 PAPEim ACCOMPAKYI^G THK SIOUX CITY AND PACmC RAILEOjLD COMPANY. Tlie road owned and operated by this company runs from Sioux City, Iowa, to the Missouri Valley .Plinction with the Chicago and Xorth west- ern Railway, thence across the Missouri River to Fremont, Nebr., a distance of 107.42 miles. The company has leased, and is extending, tlie Fremont, Elkhorn and Missouri Valley Railroad, northwest from Fremont, of which it is now operating 254.37 miles, which, with side- tracks, aggregating 24.9 miles, makes total mileage operated by the company on June 30, 1882, 386.69. Of the 107.42 miles owned, as above mentioned, 101.77 miles have been aided by the granting of 41,318.23 acres of laud, all of which have been sold for a sum amounting to $200,000, and also by a loan of United States bonds to the amount of $1,628,320, running for a period of thirty years and maturing in March, 1898 and 1899. The accrued interest on same to June 30, 1882, but which is not due until the maturity of the principal, amounted to $1,366,598.29, making the total debt $2,994,918.29. The financial condition and revenues of this corporation have not been and are not now as i)rosperous as could be desired, but the last year's operations and the preparations being made for future movements indicate much greater prosperity, which it is hoped may be realized, but which has not yet been attained. The crossing of the Missouri River at Blair, Nebr., has been an ex- pensive and burdensome load on the company, and has interfered very materially in its passenger and freight traffic. The treacherous and ever-shilting currents of the river, the ice blockades, and the consequent changing of the track approaches to the two transfer steamers, which are the only means of crossing, are soon to be done away with by the erection of a bridge at an estimated cost of $ 1 ,000,000. That this will be a j udicious expenditure is shown by the fact that the actnal ferry expenses for the year ending June 30, 1882, amounted to $67,782.37, which would pay nearly seven per centum on the investment. Considering the importance of uninterrupted transfer during the whole year, and the consequent increase fa the business of the road, it will readily be seen that the erection of the bridge is likely to be a judi- cious outlay. The leasing and extension of the Fremont, Elk Horn and Missouri Valley Road will develop a fine stock and grain region, and probably mineral lands, which will be a source of much revenue to the company. Only the road owned by the company was inspected. The entire lines operated are laid with 56pound American iron rails, and 2,640 cross- ties to the mile. The shops at Missoui-i Valley are supplied with fair machinery for or- dinary repairs, no material additions having been made during the last year. The force is limited ; materials are kept in neat order, with no apparent wastage, and a general tendency towards economy is manifest The track from Missouri Valley to Sioux City shows improvement over last year ; the line is almost tangent, and the grade for many miles level, the'average rise being 1.2 feet per mile, and the maximum curva- ture four degrees. The cattle guards and bridges are in fair condition, but there are no guard-rails on either trestles or bridges. Owing to the moist and low ground over which the road passes, the weeds grow rank and rapidly, and have to be cut two or three times each season. The company has been much harassed by stock getting on the track, but arrangements have been made and material bought for fencing the entire Iowa line with barbed wire of four strands. The money for this REPORT OF THE SECRETARY OF THE INTERIOR. 729 purpose had to be raised outside the regular earnings, Isut it is thought that the interest on this loan will be much less than the average cost per jTsar for stock killed and injured, and goods and persons damaged, and justifies the expenditure. On the owned road there are 4 Pratt-truss and 126 pile bridges, ag- gregating 12,190 feet in length ; 3 open culverts, and 136 cattle guards. On June 30 the company owned 12 locomotives, of which 5 had Westiughouse air-brake attachment ; 14 passenger coaches ; 165 freight, and 111 hand, push, and other cars. On the same'date it leased 16 en- gines, of which 4 had Westiughouse brake; 12 passenger, and 540 freigbt cars. During the year ending June 30, 1882, there were accidents resulting in the death or injury to 44 persons, as follows : 2 employ^^s and 1 other person were killed from their own carelessness or misconduct, making a total of 3 killed ; 1 passenger, 33 employes, and 2 other persons were injured from their own carelessness or misconduct, and 5 employes from causes beyond their control, making a total of 41 injured. From reports submitted to this office the following statement, show- ing the financial condition of the company June 30, 1882, has been pre- pared : First mortgage bonds $1,628,000 00 Interest on same 118,020 00 United States subsidy bonds 1,6-28,320 00 Interest on same 1,366,598 29 Pay-rolls and vouchers - 102,655 56 Notes payable 723,900 00 Accounts payable..... 127,494 65 Total debt 5,694,988 50 Capital stock 2,068,400 00 Total stock and debt 7,763,388 50 ASSETS. ====:== Cost of road and equipment ............. $5,426,659 18 Cash and material on hand 121,208 45 Company's bonds owned by company......... 500 00 Miscellaneous investments ........ 506,200 00 Due.from the United States 64,178 19 Applied on interest accrued on United States bonds , 51,881 29 Accounts receivable 124,793 59 Total aasets 6,295,420 70 Deficit 1,467,967 80 Showing increase of deficit for the year of $201,303.54. Considerable attention was paid to the present system of accounting when the bookkeeper of this office was examining the books and ac- counts of the company at Cedar Rapids, Iowa. A very decided improve- ment was noted, many practical suggestions having been adopted. From an examination of the books and accounts of the comj)any, the gross earnings of the owned line for the year ending June 30, 1832, were found to be $500,898 28 The operating expenses 453,018 26 Leaving net earnings 47,880 C2 From which deduct conatruction and cqaipment.. 29,433 03 Leaves net 18,44*» 99 From which deduct 7.29 per cent, of Iowa net earnings — the road from California Junction to Missouri Valley,5.84 miles, is not subsidized.... 3,392 78 Leaves net earnings on the sabsidized portion — 101-i% miles 15, 054 21 "Fivoper cent" „ 752 71 J 730 PAPERS ACCOMPANYING THE The company claims to have furnished transportation for the govern- ment whicli, (»n June ;'.(>, l.S.SU, amounted to )i!ll(>,()i31),V„. There is no immediate prospect, liowever, of gettinj,' any cash payment from this company, under existing law. Attention is called to "Legislation recommended," page 11. The following is a comparative statement of earnings and expenses for two years, ending June 30, 1881, 1882: N Tear ending June 30, 1882. Tear endiuj? June 30, 1881. Difitarence. Increase or decrease. Amonnt. Per cent. E.\RXING8. $176, 732 23 2!)6,664 12 10, 102 53 6, 116 09 13, 788 15 $102, 884 60 327, 725 40 10, 172 71 5, 128 85 8, 334 99 Increa.se . . Decrease.. Decrease.. Increase . . Increase . . $73, 847 63 31, 061 28 70 18 987 24 5,463 16 7L77 Frei "lit 9.47 ilail" . .69 19.24 65.62 Total 503,403 12 454, 236 55 Increase . . 49, 168 57 10.82 EXPENSES. 72, 368 63 205, 754 23 91, 961 43 46, 391 63 39, 047 18 62,043 76 160,333 84 78, 947 02 13, 187 77 28, 574 88 Increase . . Increase .. Increase .. Increase .. Increase . . 10, 324 87 45, 420 39 15,014 41 33, 203 86 10, 472 30 16.64 28.32 19.51 251. 77 36.64 Total 453, 523 10 341,087 27 [increase.. 114,435 83 33.55 47, 880 02 113,149 28 1 Decrease.. 65, 269 26 57.88 107. 42 107. 42 $4, 686 30 4, 240 58 $4, 228 60 3, 175 27 Increase . . Increase . . $457 70 1, 065 31 10.80 33.55 yet earnings per mile 445 72 1,053 33 ' Decrease.. 1 607 61 57.68 MEMPHIS AND LITTLE ROCK RAILROAD COlVrPANY. This road has undergone an unfortunate series of embarrassing changes from a period previous to its completion to the present time. The company was chartCTed January 11, 1853, and the road completed in January, 1874. Defaulting on first-mortgage land-grant bonds, Ko- vember 1, 1872, the road was sold in 1873, and reorganized as the Mem- phis and Little Eock Eailway Company. This latter company also failed, and was in turn sold out in 1877. The purchasing bondholders then organized the Memphis and Little Eock Eailroad Company under the charter of 18o3, and took possession September 29, 1877. This ofSce has received a circular, accompanying a meager report, giving notice June 24, 1882, that "the Memphis and Little Eock Eail- road (as reorganized), with all its tracks, inclines, boats, locomotives, passenger cars, freight cars, hand cars, materials, tools, lands, books, papers, and all its other property, has been placed in the hands of a receiver of the chancery court of Pulaski County," &c. The road encountered serious physical difticulties during the early part of 1882, and it is stated that owing to the Hoods and overflow of the Mississippi and tributary streams, the running of through trains on theroad was prevented from January 21) to April IG, 1882, and from that cause the earnings lor the tlrst four months of 1882 dropped off over seventy per cent. It is also stated that a large extraordinary ex- penditure upon the track will be required to put the road in fit condi- tion for business, and to repair damages done by the floods. REPORT OP THE SECRETARY OF THE INTERIOR. 731 The length of the road is 133 miles, exteudiiig lioiii Argeiita, 2 miles from Little Eock, Ark., to Hopefleld, opposite ^remphis, on the Missis- sipi)i Eiver. The land granted to this company under the acts of February 9, 18o3, and July 28, iSGG, is estimated to aggregate 804,185.8 acras, of which 140,955.00 acres had been patented to June 30, 1882. The rolling stock consists of 14 locomotives, 18 passenger and 274 freight cars. Owing to the limited time at the command of the inspection party from this office, the road was not gone over this year. The following statement of earnings and expenses has been compiled from the company's reports : Passenger Pieight M«a Eypre.HS Hiacellaneous . Total. K}U>EN'6Ea. Transportation , Maintenance of way , Motive power , Maintenance of cars. General, and taxes Total Net earnings... Miles operated Eaminga per mile. Expenses per mile Net earnings per mile. Year ending June 30, 1882. Year ending Juno 30, 1881. Difftrence. Increase or decrease. Araonnt. Per ceat. .$323, 2C2 85 280, 602 72 12, 280 31 23, 931 02 590 28 $336, 924 93 356, 131 48 13. 576 80 19, .S14 74 1, 082 89 Decrease.. DetTea.se. - Decrease.. Increase — Decrease.. $1.3, 602 08 75. 32« 76 1, 296 49 4, 616 28 480 61 4.05 21.22 9.55 23.92 44.24 610,673 18 727,030 84 1 Decreaao.. 86, 357 66 11.88 184, 742 08 134,671 54 82. 105 33 18, 699 59 58,273 13 1.54, 2.36 45 100, 155 05 95,101 91 30, syo 84 20, 806 56 Increase . . Iucrea.se .. Decrease. . Decrease.. Increase . . 30, !m 23 28,515 89 12, 906 58 18,200 25 37, 466 59 19.85 20.86 13.66 49.33 180.12 478, 492 29 413, 2U0 41 Increase . . 65,201 88 15.80 162, 180 89 313, 830 43 Decrease.. 151.649 54 48.33 133 135 " $4. 745 73 3, 544 39 $.5, 385 41 3, 060 74 Decrease.. Increase . . $639 68 483 65 11.88 15.80 1, 201 34 2, 324 67 Decrease. . 1,123 33 48.33 Two balance sheets have been submitted by the jircsent Receiver, one exhibiting the finaucial condition of the railroad coinpaiiy on Juii(» 24, 1882, and the other that of the road in receivership on June 30, 1882. Statements are submitted in the order named. June 24, 16S2. Li.\niLrrn:s. First-mortgage honds ^2, a->0, 000 00 Interest on saiiit- I'^l.UlO OO Pay-rolls aud vonclu'i m :?o, '.i'M 1X3 Bills and accoiinis !)aya!>lc 4G, 9^0 '2\i Total del. I 3,0:.3,G-r. 19 Capital stock l,50U,U0<.t 00 Total stock aud debt 4, 503,(525 11) A.'-.-KIS. Cost of road and lixturos $4,1121,210 01 Cash aud luutt ri x\ on hand .'iS, 1^20 42 Billa aud acconuih nci-ivablo 40, r>;<4 IH Total 5,020.61)0 f.l Surplus. 407,005 42 732 PAPERS ACCOMPANYING THE June 30, 1882. {Receiver.) LIABILITIES. Pay-rolls and vouchers $40,097 88 Bills and accounts payable 06,50,3 58 Totiildcbt lOC.GOl 40 ASSETS. Cash and material on hand $67,217 63 Bills and accounts receivable 40,231 16 Total 107,448 79 Surplus 847 33 SAINT PAUL AND DULUTH RAIDROAD COMPANY. Tliis road was chartered as the Lake Superior and Mississippi Rail- road Company May 23, 1857. It is estimated that the originaUJand- grant made by the act of May 5, 1864, and amended by act of July 13, 1866, amounted to 920,000 acres, of which 860,564.09 acres had been patented to June 30, 1882, and sales had been made to the amount of $909,011.27. This road was passed over in the night, and consequently no personal inspection was made. From reports rendered this office to December 31, 1881, the following information is derived : Gross earnings, year 18$l $732,630 25 Gross earnings, year 188; and contingent expenses, $284.03 ; in all amounting to $1(;,}45.82. The ap])ropriations for the current Ijscal year ondiug Juno 30, 1SS3, are as follows: "yalaries, oftice of the ConiniissioiKT of Itaih-oads," for Commissioner, $4,500 ; bookkeeper, $2,400 ; assistant boolckoopor, $2,000 ; railroad engineer, $2,500; one clerk, $1,600; one co|)yist, $IK)0; one messenger, $720; traveling expenses, $3,000; contingont expenses, $500; and for books and cases for library, $1,200; in all, $10,320. The estimates which have been subniitted for the fiscal y»>ar ending June 30, 1884, are as follows: Commissioner, $r»,0()0 ; bookkeopcr, $2,500; assistant bookkeeper, $2,000 ; railroad engineer, $2,500; one clerk, $ 1,620. I take great pleasure in commending the goneuil efticicucy of the 754 PAPERS ACCOMPANYING THE employes of this ofBce. Tlie work requires the services of practical and skilled accountants and engineers, who have ably seconded my efforts to make this report full and complete in every respect. I have the honor to bo, sir, very respectfully, your obedient servant, W. H. AKMSTRONG, Commissioner. Hon. H. M. Teller, Secretary of the Interior, EEPORT OF THE COMMISSIONER OF PENSIONS. Department of the Interior, Pension Office, Washington, D. C, November 1, 1883. Sir : I have the honor to submit herewith the annual statement show- ing the operations of this bureau for the fiscal year ending June 30, 1882. There were at the close of the year, June 30, 1882, 285,697 pensioners, classified as follows: 173,138 Army invalids; 76,448 Army widows, minor children, and dependent relatives; 2,361 Navy invalids ; 1,955 Navy widows, minor children, and dependent relatives; 7,134 survivors of the war of 1812, and 24,661 widows of those who served in that war. There were added to the roll during the year the names of 27,664 new pensioners ; and the names of 649, whose pensions had previously been dropped, were restored to the rolls, making an aggregate increase to the roll of 28,313. The names of 11,446 pensioners were dropped from the roll for various causes, leaving a net increase to the roll of 16,867 pensioners. At the close of the year the annual pension to eaeh pen- sioner was $102.70, and the aggregate annual value of all pensions was $29,341,101.62. The annual payments, however, exceed this sum by several millions of dollars; i. e., the total amount paid for pensions during the year, ex- clusive of the arrears due in pensions which were allowed prior to January 25, 1879, was 853,924,566.20, the diiference being the arrears due in new pensions from the date of discharge, in the case of a soldier or sailor, and from death of the soldier, where pension was allowed to the widow or others. The amount paid during the year upon first payment to new pensioners is $26,421,069.19; and this amount was i^aid to 27,703 pensioners, averag- ing to each case as follows : To Army invalids, $964,05 ; to Army widows, minor children, and dependent relatives, $1,065.44; to Na\'y invalids, $549.99; to Navj' widows, minor children, and dependent relatives, $561.59 ; to the survivors of the war of 1812, $324.19, and to the widows of the deceased soldiers and sailors of that war, $208,24. The complete details of the statements will be found arranged and classified in Table 1, with the value of pensions allowed, increased, and dropped, and Table 2 will show the various causes for which the names of 11,446 pensioners were dropped; also an analysis of the "widows'" roll, showing the number of widows with and without minor children, guardians, dependent fathers, and dependent mothers. The amounts appropriated under each appropriation head will be found in Table 3, and the amounts disbursed out of the same. In con- nection with this table wiU be found a statement shovdng the disburse- REPORT OF THE SECRETARY OF THE INTERIOR. 735 ments during the year (8134,823.41) on account of arrears of pension allowed in cases where pension had been granted prior to the arrears act (January 25, 1879), which, for convenience of comparison, are kept separately from other disbursements. To correct some misapprehension, wliieh sometimes arises, I refer to Table 2, showing the various causes for which the names of pensioners have been dropped from the roll. Taking the invalids, for example, 1,935 names were dropped during the year by reason of death, and 6G4 by reason of failure to claim pension — the percentage of deaths being so small as to excite great surprise. Section 4719 of the Revised Statutes provides that the name of a pensioner sliall be dropped from the roll where iiension remains un- claimed for three years; so that in this class the larger proportion are supposed to be dead. This will be illustrated in a more striking man- ner by reference to the i)ensioners of the war of 1812, 1,450 n^ported as having died, and 2,379 as dropped from failure to claim pension. Table 4 is a classified statement of the nuinber of pensioners on the rolls of each agency, and compares the whole number of pensioners on the roll with that of the preceding year, and shows the total disburse- ments and cost of same at each agency during the year. Table 5 is an interesting exhibit of the numlser of each class of origi- nal claims filed and allowed during each year hince 1861, and the amounts paid for i)ensions and the cost of disbursement each year since 1860. In this number will be represented a very small proportion whose claims were»filed on account of disability or death occurring in wars prior to 1861-'G5, also the claims for service during the war of 1812. The number of claims filed since the passage of the first act, Febru- ary 14, 1871, granting pension on account of tlie war of 1812, is, for sur- vivors, 34,533, and for the widows of those who served in that war, 42,123. In the first class the number allowed is 25,011, and in the sec- ond, 32,556. The whole number of jiension claims allowed since 1861 is 472,776. Table 6 shows the number of claims of each class on the files at the beginning of the year, the number allowed and rejected during the year, and the number remaining on hand at the close of the year. I had caused a thorough analysis to be made of the files of the office, so that I am able to ])resent in an intelligent manner the number of claims of each class which are actually pending, and also those which are rejected or abandoned. Previous to this report there ha.-j >-6 >*d N ^f -J ■B% 5l ti '^■s Z o o o ■S o « => <" o jj_o o o •"^ 0-3 -=i 1^ CHS ct "^ £=3 Ffled the eighth and previous year before .si .s2 52 52 9 ® ^2 O 4) J3 C .S2 9 U allowed and since 1661. ""I ^a 5.2 ^.2 ^a "^<2 ^a 5=2 2 •2^ _2 t^ »4 V 1^ ^ =5 § g S S Pr.et. Pr. ct. Pr. ct. Pr. ct. Pr. ct. Pr.ct. Pr.ct. Pr.ct. Pr.ct 1882.... .5 .6 43.4 21.5 6.1 4.6 4.0 2.4 16.4 in the thirteen years preTions to 1874. 1881.... .7 11.2 37.1 11.4 7.5 5.8 3.6 2.3 20.1 in the twelve years previous to 1873. 1880.... 2.7 27.6 las 10.9 7.7 4.6 3.3 2.6 21.6 in the eleven years previous to 1872. 1879 10.9 36.3 20.6 8.5 3.8 2.6 1.7 2.1 13 in the ten years pre\-iou8 to 1871. 1878.... 12.4 36.3 25.2 5.7 3.3 3.4 2.9 1.7 - 14.7 in the nine' years previous to 1870. 1877.... 10.9 36.5 16.4 8.3 6.4 3.8 2.0 2.7 12.5 in the eisht years previous to 1869. 1876 12.0 43.1 11.6 6.5 5.3 4.1 3.2 2.3 11.5 in the seven years previous to 1868. 1875.... 17.3 34.6 12.4 6.8 6.4 5.0 2.6 1.6 12 9 in the six years previous to 1867. 1874.... 14.3 31.9 18.4 7.9 7.9 3.2 3.1 2.6 10.2 in the five'years previous to 1866. 1873.... 21.2 26.1 16.8 12.7 4.7 3.1 5.6 4.0 5.3 in the four years previous to 1865. 1872.... 7.2 32.3 27.2 8.1 3.6 5.7 7.3 3.2 5.0 in the three years previous to 1864. Taking the year 1882, we find that five-tenths of 1 per cent, of the number allowed were filed during the same year, six-tenths of 1 per KEPORT OF THE SECRETARY OF THE INTERIOR. 737 cent., were filed in the year previons (l^Sl), and the second year previous (1879) 43.4 per cent., and so on; also that prior to the seventh-year i>eriod, which was the thirteen years preceding July 1, 1874, 16.4 per cent, of the cases were filed. Taking this latter (16.4), and we find that of the cases allowed in 1S81 20.1 per cent, were filed previons to the seventh-year period, being the twelve years ending June 30, 1873, and for the year 1880 it was 21.6 per cent, for the eleven years' ending June 30, 1872. Retferring again to 1882 we find the 16.4 i)er cent, referred to shows a falling ofi' for this earlier period, notwithstanding an additional year and two years respectively are added to it; and it illustrates how the work of the oftifte is being concentrated towards the gieat block of claims which were filed in 1879 and 1880. It will be remembered that the ar- rears act was passed at the commencement of the last half of the fiscal year of 1879 (January 25), and the limitation granting arrears expired with the year 1880. Of the claims filed since June 30, 1880, less than 1 per cent, have been allowed, and these for grave and sufficient rea- sons which justified special action. In the claims filed during the years 1879 and 1880, there have been allowed 43.6 and 11.2 per cent, respectively out of the numbers 36,835 and 110,673 claims of invalids which were filed during those years. It should be remembered that these statements refer only to the late war invalid claims. Table 12 is an exhaustive exhibit showing the number of claims made for pension on account of the late war, of invalids, widows, children, mothers, and fathers; the numbers which have been admitted, and are now pending. Out of the whole number admitted and })ending it is shown in each those who are and those who are not entitled to arrears. The information collated in this table is arranged by each regimental organization, and the totals of each arm of military service in each State and Territory. For a more particular description your attention is in- vited to the title " Pension Population" on page 23 of the rei)ort. Table 13 shows the number of pensioners upon the roll, the annual value of such roll, and the amount actually paid, including arrears, for the year ending the payment of June, 1882, classified and arranged so that the same is exhibited in each county by congi'essional districts in each State and Territory. This information was first called for by a resolution of the Senate and was published in Senate P^xecutive Document No. 152, first session Forty- seventh Congress, showing the condition of the roll to and including the September (1881) payments. I have since had the same revised and brought down to the June (1882) payment. Table 14 contains the names of the surviving widows of Revolutionary soldiers and sailors who are pensioners, and their place of residence, as shown by the roll, at the close of the fiscal jear. EFFICIENCY OF THE BUREAU. The commencement of the last fiscal year found this office with several troublesome (piestions to face; and many disastrous occurrences, and dilficulties iollowing difficulties, combined to rendeir the beginning inauspicious. I'irst, a large «lischaige of clerks became necessary owing to the inordinate size of tiie rolls as compared with the appro- priations for the fiscal year then beginning; tlic assassination of the President caused an almost total suspension of business, and a dis- tinction of the attention of clerks from their work to such an extent 47 Ab 738 PAPERS ACCOMPANYING THE that, at that iline, more than a week was consumed before it could again in any degree be concentrated upon the work of the office; so that it may safely be stated that on this account alone, in the month of July, fully one week's work was lost. The incoming of a new admin- istration of the office, and the disorganization which, to some extent, always follows such a change, combined with the knowledge that a large number of discharges was impending, militated also against the efficiency of the oflice for some time. Later on, after the discharges had been made and the force had settled down to work, it was found neces- sary to take an inventory of the office, in order that accurate knowledge might*be had as to the condition of its business. This consumed one mouth. Following this came the fluctuations between life artd death of the Chief Magistrate, and the succeeding obsequies, during which sad time no one could work — so that it was about the 1st of November be- fore the solid work for the year began. I estimate that, by reason of the various disturbances alluded to, not less than two months' time, be- tween the 1st of July and the 1st of November, of the whole force of the office was practically lost to the settlement of claims. From that point on the efficiency of the office daily increased, and the result of its work at the end of the year was exceedingly encouraging, showing, as heretofore stated, a disposal of over 59,000 cases. Much of this ef- ficiency I attribute to the unusual and most satisfactory confidence ex- hibited by Congress in the bureau and its officers, and the certainty felt througjiout the office that its labors were being appreciated. It is impossible, I tiud, to reach perfection in the administration of so large and imi)ortant an office; but 1 suppose it can be safely stated that in no department of the government is there a more conscientious discharge of duty by the employes and officers than in this bureau. There has been practically no change in the organization of the office since that mentioned in my last annual report; and to accommodate the force granted by Congress the organization then made has been simply broad- ened to receive the new accessions, and I think no reorganization will be necessarj'. PROPOSED MODIFICATIONS OF LAW. Availing myself of the long experience and high abilities of my chiefs of divisions and other officers, and recognizing also the fact that none are so competent to point out defects in existing law as those who are daily engaged in its application to the business for which the laws have been framed, I have called upon and received from these officers some most valuable and practical suggestions, which I shall condense with gome of my own, and offer by way of amendment to existing law, in order to make the administration of the Pension Office more efficient and more conducive to the end for which it was intended. OLD WAR CLAIMS. I would suggest that the acts of March 16, 1802, section 14, and sec- tion 7 of the act of March 3, 1815, and other supplementary acts, be re- enacted by way of amendment to section 1039 of the Ilevised Statutes, for the reason that considerable difficulty has been experienced in the disposal of invalid claims based upon disabilities originating prior to March 4, 1861, owing to the fact that the old military establishment acts above referred to were not re-enacted in the Eevised Statutes, as it seems to me they should have been. This recommendation will serve to call the attewtiQii of Congress to certain acts omitted in the revision of REPORT OF THE SECRETARY OF THE INTERIOR. 739 the laws, and when they shall take notice of the same I will, if desired, appear before the committee and point out more particularly these and other laws which should be rc-eiuicted. I recommend the repeal of section 1636, inasmuch as it is practically covered by the provisions of section 4732 of the Ilevised Statutes, and is only calculated to mislead and confuse. BOUNTY-LAND LAWS. In rcfjard to the bounty-land laws, I think that they should be generally remodeled and simplified. The mistakes made in the codilication of the laws as found in the Revised Statutes should be corrected, and changes should be made to equalize the benefits to all the classes of persons to whom title is already given under the law. Especially should the following sections be amended, viz : 1. Sections 2418 and 2419, so as to separate the provision relating to the Mexican war (under act of February 11, 1847, and its amend- ment of May 27, 1848) from the provisions of the equalizing act of Sep- tember 28, 1850. As it stands now the language of the section, to- gether with the repealing provisions of the IJevised Statutes, seem to cut off certain classes who were jjrovided for by the old law, February 11, 1847; but the old law was in the nature of a contract, and it is not therefore proper in any way to curtail its provisions. Tlio provisions of section 2418 (in so far as it re-enacts the provisions of the cqnalizing act of September 28, 1850) should be extended so as to give the full benefit of sections 2425 to 2427, inclusive, to the very small class of per- sons now provided for under section 2418, who do not already come un- der section 2425, et seq. Almost the only change it would make would be to give a warrant for 160 acres to a few fathers, mothers, brothers, and sisters (on a service of fourteen days, or battle service) who lue now entitled to warrants of varying amounts, from 40 acres to 160 (accord- ing as the service of soldier was one month, six months, or twelve months). 2. Section 2420 should l)e so modified as to give the succession to the minors upon the remarriage as well as upon the death of the widow, in case there are minors; provided, that Miiere there are no minor chil- dren the widow's title may return to her on her again becoming a widow. 3. Sections 2439 and 2440 should be so amended as to make it the duty of the General Land Othce to take all the testimony upon which duplicate laml warrants shall be issued, the Pension Ottice to issue such duplicate upon the certificate of the Commissioner of the General Land Office and the direction of the Secretary of the Interior thereon, and deliver the same to the said Commissioner of the General Land Office, as a voucher to bo i)laced upon his files, or for delivery to the person entitled to its possession. This is a question which you have had under consideration for some time, and I therelore do not deem it necessary to set forth all the reasons why I think that such a change should be made. I will, however, state one inii)ortant reason; that is, that all questions relating to the assignments of warrants belong to the General Land Of- fice to settle, iis has been au,thoratitively declared, and such questions are the principal ones to be settled in the issuing of almost every dupli- cate ever asked for, in order to determine into whose possession to de- liver the du])licate wlien issued, «S:c. 4. Sections 2444 an«l 2445 should be so amended as to be in harmony with the last ])aragraph of section 2418, and with section 2428, Kevised Statutes, so that where there are any of the heks of the soldier whose 740 PAPERS ACCOMPANYING THE succession is provided lor in sections 2418 or 2428, the provisions of sections 2444 and 2445 shall not apply, but the title sliall succeed in the order designated in sections 2418 and 2428. The practice of the office has been generally in accordance with the suggestions made herein, but the letter of the law leaves room for doubt, a fact which has been taken advantage of by those prosecuting claims to the considerable an- noyance of the office. LATE WAR PENSIONS. I recommend that section 4693 of the Eevised Statutes, which per- tains to irregular enlistments (non-enlisted persons), and which grants pensions to certain classes, be amended so as to extend the benefits conferred by it to wounds and injuries received or disease contracted by non-enlisted men serving as scouts, by virtue of the authority of any general officer, and to certain classes of employes of the Quartermas- ter-General's Department, who were subjected to unusual hardships and dangers; and I would also recommend the repeal of the last clause of said third paragraph, as it imposes, in my opinion, an unjust limita- tion upon a frequently worthy class of applicants. I think the whole paragraph should be remodeled so as to define more clearly the classes to be benefited. Paragraph 2 of said section should, I think, be amended so as to be more specific in its definition of its beneficiaries, and should define more clearly what is meant by the term " war vessel." GENERAL-SERVICE ENLISTMENTS. Some difficulty in the application of the provisions of section 4694 of the Revised Statutes has been encountered, owing to the indefinite- ness and varied constructions of the term " military post," «&;c. I would suggest that such an amendment to this section be made as will clearly and specifically define the meaning of the^erm " military post," and also fix the practice as regards the pensioning of men who were en- listed in the general service and detailed to do duty at Washington City and other posts. RANK AND GRADES OF PENSION. Section 4695 of the Eevised Statutes, which fixes the various grades of pension, might well be amendetl so as to provide a more equitable distribution, and to comport with the actual disabilities of pensioners. In fact, the time has come, in my opinion, when Congress should give a thoughtful consideration to the entire regrading of pensions, making- disability, rather than rank, the measure of the pension. There can exist no good reason in pensioning a volunteer force, when for the same disability a lieutenant-colonel shall receive thirty dollars per month, and a private soldier but eight ; both having been drawn from and re- turned to the same walks of civil life.. This subject is one, however, which requires a careful and searching investigation; and I simply make this suggestion in the hope that Congress may take such steps as ■will eventually bring about an entire change; one which, in my opinion, if carefully done, will prove advantageous alike to the pensioner and the government. In this connection I would respectfully call attention to the statistics exhibited by Table No. 9. The astonishing fact is there shown that there ai'e 117 different grades of pension now being paid to pensioners. In this brief report I can hardly refer to the causes which have brought this about, but would state that, in my opinion, the almost constantly REPORT OP THE SECRETARY OF THE INTERIOR. 741 varying scale provided by new legislation, some of which reaches but a small and others a larger class, makes the rule of grading a constantly shifting one. This, in my opinion, will be remedied by the change re- ferred to. So long as the amount of pension is fixed by rank, I respectfully rec- ommend the amendment of section 4696 of the Ke\ised Statutes by strik- ing out the words " that 5. vacancy existed in the rank thereby conferred." The effect of this amendment will be to give an officer the benefit of his actual rank, notwithstanding the fact that there was no technical vacancy at the time. It is within the experience of every officer that, had the actual minimum number of men required by the Army regula- tions for each company been strictly regarded in commissioning volun- teer officers, many commands would have been without commissioned officers during a good part of their service. It is but fair, so long as the grade of pension is controlled by the rank held, that the pensioner should have the benefit of his actual service in the grade for which he held commission. INCREASE A^'D ERRORS IN RATING, I wish to renew my recommendation regarding the amendment of section 4G08i, which, in its administration, I find very often works great injustice to worthy pensioners. In the cousideiation of so vast a num- ber of claims as is i^resented to this office, mistakes and errors in rating are almost inevitable, and this section has been so construed as to pre- clude the possibility of a correction of many of them. I tlierefore rec- ommend that section 4698^ be repealed, and an act passed in lieu thereof containing substantially the follo\\ing provisions: If any invalid pen- sioner shall feel that his pension is not comnu'usurate witli the degree of his disability, either because it has been imi)roperly rated by the Commissioner of Pensions, or because the disability for which he was pensioned has increased, or because of another disability incurred in the service for which he is not pensioned, he may appeal to the Com- missioner of Pensions for a rerating or an increase, as the ciuse may be, at any time within one year immediately following the original adjudi- cation; and said application shall be construed and determined in the same manner as was his original application, so far as such jtroceeding shall be applicable to the case. And the Commissioner of Pensions shall cause any invalid jx'iisioner to be examined by a board of surgelicati()n therefor; and provided further, that if the disability has not changed, in degree, since discharge, such increase or rating shall commence on the «lateat which the original pension began; i)rovi(icd further, that all api)lications for increase on the giound that the i)ension has been improperly rated, made and lih'd more than one year after such alleged imjuoper rating was fixed by the Commissioner of Pensions, shall be treat«'d and settled as in the case of inci'ease claims on the ground of increasid disabilit\, and the Commis- sioner of Pensions is authorized to correct at any time, on his own mo- 742 PAPERS ACCOMPANYING THE tion and without ii])i>li('ati(ni, a juanilust error comuiitted at any tiino in the ratiiij:: of any pension. It should be enu(5t(Mlthat the " permanent apecilic disability "meutioned in section 4008^ of tlie lievised Statutes be construed to refer to anj' disability, iierinanent in its character, and the increase of i)ension there- for to commence from the date of application, and at the rate in which it exists iu a permanent degree. WIDOWS AND minors' PENSIONS. Section 4702 of the Revised Statutes was amended in several very im- portant particulars, at the last session of Congress, and re-enacted as amended. Of course it is not the intention of Congress to thereby take this class of claims out from under the operations of the limitation im- posed by the act of IMarch 3, 1879, but such a construction has been sought to be put upon the said recent act, and I therefore recommend the enact- ment of a proviso, expressly declaring that said section is subject, in all respects, to the limitations of the said act of March 3, 1879. I would also recommend that the same be further amended, so as to entitle minor children to pension from the date of the soldier's dea th, where the widow has remarried prior to July 1, 1880, without having received any pension on account of such soldier's death. DEPENDENT RELATIVES. In the application of section 4707 to the thousands of cases of depend- ents now under consideration in the Pension Oflice, it is noticed that great injustice seems often to be done to a worthy class of pensioners by the narrow^ construction of it made necessary by its terms. As it now stands, there is no discretion left with the Commissioner, but, on the contrary, actual dependence must be proven, in the manner specified iu the statute, to have existed at or before the soldier's death. I, shall C(fntent rnyself with one illustration of the above remark, which I hope may attract the attention of Congress: A widowed mother, in the enjoy- ment of a competence, and otherwise in ordinary circumstances, gives her onh/son to the defenseof the country. She has fitted him in every way to become her prop in life, when she shall have advanced to a greater age, or to adegree of helplessness which would require his maintenance and support. The son is killed iu battle; he does not in fact contribute to the support of his mother at the date of his death, but in reality has been supported by her up to the time of his enlistment. Increasing years and adver- sity overtake the mother, and she becomes dependent upon the charity of friends. Had the son lived, this would not have been the ease, and yet we are obliged to deny her a pension because, at the date of the sol- dier's death, it cannot be shown that she was dependent upon him for support, in whole or in part. The mere statement of such a case, it seems to me, carries with it the argument to convince all, that there is a necessity for an amendment to this section. COMMENCEMENT OF OLD WAR PENSIONS. In order to carry out the full and evident intention of Congress, as exhibited by the whole course of pension legislation, and especially by the more recent acts, and to place old war claims more nearly upon the same footing as those of the late war, I would suggest, that the limita- tion contained in section 4713 be removed, so that cases barred by tiie three-year limitation shall have their date of commencement at the time of filing the applicatiouj rather than at that of the tiling of the last piece of REPORT OP THE SECRETARY OF THE INTERIOR. 743 CTidence. This amendment will affect a large class of cases, bnt the present law is so manifestly unjust that I do not hesitate to suggest the change. REIMBURSEMENT CLAIMS. Section 4718 of the Revised Statutes should, in my opinion, be made more specific, so that there may be uo possi])le (juestion as to tbe juris- diction over cases involving a reimbursement for the exjjenses of the last sickness and burial of th\3 pensioner. By a recent ojiinion of the Attor- ney-General, which is in the words and terms following, to wit: — Depaktmext of JusricF, Washington, '.id August, 1882. Sir: The question presented l>y the, letter of the Second Comptroller, referred to in and accompanying your conniiunication of the t:th J\\\j ultimo, rtvjnesting my opin- ion, is, whether the accounts presented hy persons -who have borne the expenses of "the last sickness and burial" of decea8ennts uhatever in which tlio I'nitcd States are concerned, either as di-btors or as cnvlitors, shall be S4'ttled an ns holding tlie same relation to one anotlier as when the former was section 'i.') of tlit^ aet of :{d .Manh. 1~7;{, and the latter s»'eti<»n 3 of the act of 3d March, 1H17, or siucti the enactment of the Kevis<-tl Statutes as |>artM of one and the same statute, I perceive no grouiitl wiiatever for holding that s.-ensiou by their principals to collect from them a greater fee than is allowed by tlie act of June iiU, 1878, too great a temptation to be borne. Wherever such cases come to my knowledge, it is my duty, and 1 have endeavored to discharge it, by prosecuting the offender and disbarring him from practice. The ofiense is often so trifling that it is exceedingly annoying to be compelled to set so much force upoii such small and seemingly unimportant outside mat- ters. In my opinion, the remedy lies, as 1 have before recommended, in the substantial re-enactment of the law in force at the time said act of June 20, 1878, was passed — the salient i)oiuts to be covered being: First, the establishment of a reasonable fee for the claim agent or attor- ney; second, the agreement therefor to be by written contract, which as to amount of the fee, shall be subject to the a])i)TOval and discre- tion of the Commissioner of Pensions, and the form to be i)rescribed by him J third, the payment of such fee to be contingent upon the sue- REPORT OF THE SECRETARY OP THE INTERIOR. 747 cesslul prosecutiou (»f tbe claim; fourth, tlie payment tliereot to be luadt^ by tlie pension agent: Avitli such .iiuanlcd ])rovisi()ns to be enacted as 'wiil prevent injustice being (bine claimants wliose claims ai-e already on iile, where i)aymeut of some i)art of the l*e«' has been made in advance, so that the claimant shall have the full benefit of such payment. I can- not but believe that a well-guarded law act, or who, for some other cause, were not actually upon the rolls at that graension be withdrawn or reduced cxc("i)t upon notice of not less than sixty days to the pen- sioner, and a hearing upon sworn testimony, exce])t when tin- reduction or dropping of an invalid pension is made upon tho certiticato of a board of examining surgeons. DESERTION. The question of desertion in connection with that of title to pension shoidd be delinitely settled by law. A pension ts in i\o svusv a reward for faithful and meritorious S(*rvi(;e, but a jiayment for loss of jjliysical ability to earn a livelihood. Therefore, desertion subsetpient to the in- currence of a disability and a refusal of the War l)ei)artment to change the record should not carry with it a forfeiture of right to pension. The hiw should provide that pension, in any case in which a charge of desertion stands unremoved, shall coiuijience on tho date from which the contract for service in which disabled legally terminated, to be ascert.ained from tho date to which last paid for service ; provided, however, that tiie date of discharge from a subse(juent service entered into before the legal termination of the service in which disabled shall be the date from which to commence the pension. y 760 PAPERS ACCOMPANYING TTTE CLERICAL FORCE OF THE OFFICE. Ill coin))liai)co, witli tlio recommendation of my last report, and recogniz- ing: the evident necessities of the case, the Forty-seventh Congress brought forward an approjiriation bill giving this office a force of 1,559 (;lerks, involving an annual expenditure of $1,957,150 for their payment. It is greatly to be regretted that so much time was consumed in the con- sideration of the details of the appropriation bill, so that it was as late as August 5th before we were enabled to know that the bill had passed, and could take stejis looking toward the selection of the large increased force. It was a matter of very great iiniiortance that, in order to ac- complish the objects aimed at, the force should be selected with great care, and the honorable Secretary of the Interior is to be congratulated upon the general results flowing from the deliberation and care with which he has addressed himself to this most important work. The appointments made under the bill are for the most part able and worthy men, those who have been soldiers predominating. The num- ber also includes a large proportion of men who have received an academic or collegiate education, and a very large number are men who have brought to the office considerable legal knowledge and ex- perience. The bill hj its terms enabled me to perfect the organization and strengthen many weak points, notably the medical consideration given to cases. Selections have been made for medical reviewers which will enable the office to give a much more intelligent considera- tion to the great majority of invalid cases, which now frequently in- volve close pathological connections between diseases existing and those contracted in the service, and I think I can now say that the medical division, as at present newly organized, is both in its personnel and ability as good as can be had for the salaries which we are able to pay, and is capable of the highest efficiency in that particular division of the office. As I have said before, it is a matter of regret that we could not have had the benefit of the generous appropriation, and the force thereby authorized, for the whole fiscal year, instead of only for about two-thirds thereof, for the sake of the results expected from us with large addition of clerks. As it is, although all the appointments have been made, yet there are many who have refrained from reporting, and it was not until October 1 that we Avere able to largely increase the various adjudicating divisions, and not until Xovember 1 that the bulk of the force was sworu in and put at work. This, however, may be remedied, to some extent, if Congress will authorize the employment of the lapsed fund created by our inability to use the entire proportion of the whole appropriation for July, August, September, and October. The pay-roll for those months will have consumed $154,550.19, while the four months' proportion of the whole year's appropriation is $652,383.33, leaving an unexpended balance, in the first quarter, of 8H)7, 883.11. I would recommend that you request Congress to place this fund at your disposal, by joint reso- lution, for the employment of such a temporary additional force for this office as can be carried by it for the remainder of the fiscal year. TENURE OF OFFICE. I submit a table liereM'ith which will repay careful examination. It is a showing of the longevity of tenure of clerks in this office, and will be interesting in connection with the general subject of the civil ser- REPORT OF THE SECRETARY OF THE INTERIOR. 751 vice. As will be seen thereby, aside from the clerks ai)pointed in 1881, the average tenure of the clerks in office at the date of preparing this table, to wit, about the 15th of July, 1882, had been six years and one month, and counting in the increased force of 1881 who are still in ofiice, the average tenure of the whole force was four and a half years. This security of tenure to intelligent and expert clerks is, 1 believe, greatly conducive to efficiency, and oilers an assurance to those thereafter ap- pointed that clerks who possess and exercise the desirable qualifications so well and graphically expressed by the President in his message to the present Congress, namely, "])r(>bity, industry, good sense, good habits, good temper, patience, manly d«^lerence to superior ollicers, and manly consideration for inferiors," will be recognized as worthy a long and secure tenure, not to be ruthlessly terminated, ami is therefore an incentive to good habits and conscientious industry in work. Xumler of clerics now in the Pensioti Office, July 15, 1882, and the several years in which they were ajypointed. Tear. No. ap- pointed. Tear. No. ap- pointwl. 1848 ^ 1 I 1 i 4 11 1872 23 1853 1873 1j 1861 1874 14 1882 187.5 22 1863 1876 21 1804 1877 33 1865 1878 40 1866 ".ill 1873 76 1867 1 18 12 34 ]8'<0 72 1868 1881 240 1869 1882 59 1870 Present nnniher of praploy6» 1871 741 Averag* tenure of force, abont four and a lialf years. Average tenure of force (exclucive of appointments in 1881-'82), aboat six years. BUILDINGS AND ACCOMlttODATIONS FOE THE FORCE. Both the two large buildings now occupied by the force of this office, to wit, that upon the " Old Kirkwood House site," on the corner of Twelfth street and Pennsylvania avenue, and the "Eagle P.uilding," formerly oc- cupied t\v the Census Bureau, on the corner of Tiiirteenth street and Pennsylvania avenue, were not intended, in their original construction, for the accommodation of any large numl)er of })eople engaged in the transaction of the public business, yet, by judicious alteialiroof files wlKUild be like- wise provided tlieri'in for the ]»ropercare;ind custody of the i)a])ers. This will involve an expendilure, as nearly as I can estimate, of about $50,000; and I ask that you recommend to Congicss the appropriation of that sum 752 PAPERS ACCOMPANYING THE for that purpose at the earliest possible moment. I also desire, for the safety of the valuable lives crowded into the above-mentioned buildings, from which, in case of fire or panic, there are no adequate means of es- cape, that suitable fire-escapes be placed ui)on both. In my opinion, an appropriation of $6,000 will accomplish this end and aftbrd the protection to which the persons enj^aged in the work of the office are entitled. I therefore recommend that Congress be asked to make an appropriation therefor at the earliest practicable date. THE PENSION POPULATION. It is an irreparable loss, which can only now be regretted, but which may be repaired in the future, that in the taking of the Tenth Census no provision was made for ascertaining the exact status of the soldiers and pension population of this country. All calculations, without such accurate data which could have thus be,en furnished , must necessarily be pure estimates, mid not entirely reliable because of the lack of known facts. I find upon investigation that there is a lamentable lack of knowl- edge on the part of the Adjutant-generals of the different States as to the actual number of men enlisted in their States during the war, and what became of them at discharge; and we are, save in a few States, left without accurate krowledge upon this subject. In my opinion, there is no question so befogged in mystery, and needing so much and more complete knowledge of its detail, than what may be termed the possibilities of the future with, regard to the pen- sion business. Having confessed my inability to procure the necessary exact data from the different States, with a few notable exceptions, and it being impossible for the Adjutant- General of the Army, in the present crowded condition of his work, to compile an exact statement of the actual individual enlistments, it may seem presumptuous on my part to offer any prognostications upon this subject. However, as one means to that end' I have carefully prepared a statement which is embodied in Table No. 12, which shows the total number of enlistments in each organization from each State, so far as I have been able to procure them, and also a showing of the total applications for pension from each organization, both as to invalids and as to the representatives of deceased soldiers. This being compiled by States will afford you at a glance some idea of what still remains to be done, and what we may expect in the future. Taking such data as I consider reliable, I have made the following compu- tations, and I submit them for your consideration for what they maybe worth, hoping thereby to awaken an interest on the part of Congress in the subject, that wiU result in a still more accurate knowledge of what is to be looked for. The proposition is as follows: How many persons are there now living who served in the Army during the late rebellion, or who bore a pensionable relation to those who served, who have not yet applied for pension? The Adjutant- General of the United States Army reports the following aggregate of enlistment for the different periods of service, to wit: For sixty days, 2,045 ; for three months' service, 108,416; for one hundred days' service, 85,507; for four months' service, 42; for six months' service, 26,118 ; for eight months' service, 373 ; for nine months' service, 89,899 ; for one year's service, 393,706; for two years' service, 44,400; for three years' service, 2,028,630 ; for four years' service, 1,042 ; making a grand total of enlist- ment, 2,780,178. Taking tiiis as the basis of my calculation I have endeavored to ascer- REPORT OF THE SECRETARY OF THE INTERIOR. 753 tain the number of individual enlistments; that is, excludinj^ second, third, fourth, and subsequent enlistments of the same person. The result of my investi,ijation and estimate ujion this]K'int shows an ap^fjre- gate of 2,046,969 different individuals who enlisted for greater or less periods during the war. To this numl)er should be added the number of persons serving in the EegularArmy and Navy at the comnnTncement of the war, viz, 16,422. So tliat the grand total of individual persons who entered the service during the war may be approximately stated to bo 2,063,391. and this number includes all individual enlistments in the Army and Navy employed in the suppression of the rebellion. Up to the 1st of Jidy, 1882, there have been filed by Army invalids, 450,890 applications for pension. Up to the same date there have been filed 294,277 applicatiens on behalf of the service of deceased soldiers. There have been filed by Xavy invalids 7,663, and by those representing deceased sailors, 3,294. This makes an aggregate of those who have applied for pension of 756,119 out of the whole number who enlisted, as before stated. As near as I^an ascertain there are about 86,800 representatives of deceased soldiers who have not yet applied for pension, and 1,000,469 survivors of the war who have not yet applied for pension, and 220,000 who died during and since the war, who left no pensionable relatives surviving them. The following tables, numbered 1, 2, and 3, compre- hend the above calculation and present them in understandable shape: Table 1. — Beduced to periods of service only, shows the following aggregates for the dif' ferent periods in the Army and yary, to nit : Periods of enlistment. Namber. 60 days ... 3 months . 100 days.. 4 months . 6 months . 8 months . 9 months . 2,045 108,416 85,807 4-2 26,118 373 80.809 lyear j 393,700 2 years 44,400 3 years | 2,028, BS") 4 years ,...i 1,042 Aggregate enlistments. 3, 780, 178 Table 2. — Estimate of the nximher of individuals who served during the late icar. Number who died durinp the war .304, 369 Nniiil)cr who w(>ro di.sehiir;;od for dis.iltility 2H.'>, .'vl.'i DescrtPis (less tlio.sc iiircstt'd an'2 Ont'-tliird of those .serviii;^ ttTiiiH of less tban wiie year (estimated that two- thinh thereof rc-eiili.sled) I IO4, 13.J One-half of those scrvin;^ more than one year and less than two yearn (es- timated that one-half re-enlisted) 2-2J,0.'>:{ Number in the service May 1, 1"<()5 I,(t00, 5U» Total 'J,0»t),l)6y Add nnniber in Regular Army at comnienrement of the war IC, Iv^i Aggrejrate 2, (X;;i,3yi 48 Ab 754 PAPERS ACCOMPANYING THE Table 3. Total number of enlialmonts .as reported by tbo Adjutant-General United States Araiy (see details in Table 1 ) 2, 780, 178 or which there were counted more than once by reason of re-enlistment.. . 716,787 Actual iutn vidual enlistments during the war (see Table 2) 2, 0G3, 391 Accounted for as follows : 1. Living. — Individual soldiers and sailors who have noi applied for pension 1, 000, 469 2. LiVLNG. — Individual soldiers and sailors who have applied for pension 458, 553 3. Dead. — Leaving pensionable relatives who have not applied for pension 86,803 4. Dead. — Leaving pensionable relatives who have applied for pension 297,566 5. Dead. — Leaving no pensionable relatives 220,000 Total 2,063,391 As before stated, the information relative to total individual enlist- meuts iu eacli State and Territory is most difficult to obtain, but I have collected from various sources, principally the rosters of each organiza- tion, as published in the reports of the adjutant-generals of certain States, a complete list in a few instances, and nearly complete in others, so that of sixteen States I am able to show 72 per cent, of the total in- dividual enlistments. Taking the basis afforded by the above (72 per cent, of the total number of individual enlistments), aud we find out of the total number of soldiers who served during the war, pension has been applied for by, or on account of, 26 per cent, of the whole number. In the States which purport to give the total enlistments, a discrep- ancy may appear if compared with accessible results, occasioned by the accredited enlistments of certain States belonging to the military- organ- ization of another, as they are reported and classified in the latter, but as the enlistments are compared with the number who have applied for pension in each military organization, the proportions or percent- ages are not affected; e. g., in the State of Kentucky there were cred- ited to her quotaof enlistments 22,625, which formed nineteen regiments of colored troops and are classed among the "United States colored troops,"' and in Michigan there were 5,020 enlistments assigned to fifty- six different military organizations not belonging to that State. The general proposition, however, is presented, with the best availa- ble information at hand, that there is a surviving soldier i^opulation of a little over ten hundred thousand, out of which claims for pension in the future may be made by those who incurred pensionable disabilities. With such an array of figures, and so much to illhstrate by them, it is necessary for the reader or student of them to keep in mind the spe- cific purpose which they are claimed to illustrate, otherwise a compari- son with results in other tables would seem to show discrepancies. Taking the grand totals reported in this table, it shows the total number who have applied for pension, 654,578, including the invalids, widows, minor children, and dependent relatives, while a reference to table number 5 shows that 758,380 of the same have been tiled. Ex- cluding the old war applications, there remains a difference of nearly 100,000 claims. In the latter aud larger number are included all appli- cations filed for pension, which may include an invalid who dies, his widow who applies and remarries, and then the minor children, being in this instance three pension claims on account of the same soldier. In the former table it has been the imrpose to report in each classifi- REPORT OF THE SECEETARY OF THE INTERIOR. 755 cation only one pension or claim for each individual soldier, so that if the invalid applies and is pensioned, dies, and the widow then applies and is pensioned, she dies or remairies, and a claim is made for the minor children and they are pensioned, it is reported but once, and then as a claim for a minor, "admitted," or "pending:," as the case may be, without taking note of the former pensions or of the applications, the object not being to show the number who have applied or been pensioned for each individual service, but the number of iudividuaL services on account of which pension has been claimed or allowed. APPEALS. During the past year there have been 409 appeals from the decision of the Commissioner of Pensions to the Secretary of the Interior. Of this number 20 have been reversed by you and the proper action taken in pursuance thereof. In 284 cases you have seen lit to sustain my ac- tion, and 83 cases have been reopened by this oflice, and 16 cases still remain undecided. All of the above-mentioned decisions which settle new and leading questions are prqmptly copied and a carefully printed syllabus of each is prepared, and the same distributed among the force for their instruc- tion. In this connection I cannot in too strong terms state the benefits which have been derived by the i)reparatiou and general distribution among the examiners, of the laws, decisions, and rulings of the Secre- taries and the orders and rulings of Pension Commissioners. It is my intention to republish the same, revised to date, and also a treatise upon the practice of the department in pension cases, which has been pre- pared with great care by Deputy Commissioner C. B. Walker, and will prove of incalculable benefit in the expedition and uniform treatment of claims. In conclusion I wish to express the sense of obligation I am under for the consideration shown me by the Secretary, during my first year's administration of this difficult office. With the means now at my dis- posal it will be inexcusable, if the largest bureau of this department does not produce results that will reflect credit upon your administra- tion. I trust, however, that you will make some allowance for tlie time of experienced examiners lost to the present settlement of claims in instructing the new force in their duties. I wish also to say tliat much of the efficiency of this bureau during the past year is due to the ability and zeal with which I have been supported by my deputy commissioners and chief clerk, and also to the unremitting industry and executive ability of my chiefs of division, as well as the general efficiency of the force under their direction. Respectfully submitted. W. W. DUDLEY, Commissioner, 756 PAPERS ACCOMPANYING THE KEPORT OF THE ARCHITECT OF THE UNITED STATES CAPITOL. Sir : I have tlio honor to submit tlie annual report, showing the progress made since the last annual report in the various works under the direction of the Architect of the Capitol, and a statement of the ex- penditures made on account of the same during the fiscal year ending June 30, 1882. THE CAPITOL. At the beginning of the present Congress several additional rooms were required for the use of committees. So urgent was this demand, that rooms formerly occupied for storage and even ends of corridors have been fitted up to meet this want. Rooms are now being made, as provided by law, In the crypt for the storing of books connected with the Library of Congress. The file-room connected with the office of the Clerk of the House of Representatives has been extended in a fire-proof manner and furnished with iron shelving and metallic file-cases. Bathing-rooms, as provided by a joint resolution, have been fitted up in the basement of the south wing, and the space formerly occupied by them has been annexed to the restaurant and put in condition for use. As many members have expressed a desire to have the marble tubs which were taken from the old bathing-rooms again brought into use, I have caused the two most free from cracks to be placed in the base- ment, in rooms constructed for that purpose. The elevator in the House wing has been completed, and that in the Senate is being rebuilt so as to insure additional safety and speed. A warehouse lift, controlled by steam-jjower, is being put in the Senate wing for the convenient handling of documents connected with the folding-room at the basement. A large amount of painting and other repairs have been made throughout the building. The condition of the iron- work of the dome was found to be such that much of the old paint had to be taken off by mechanical and chemical means to get rid of the cracks, many of which had exposed the iron and caused rust stains. This condition appeared mostly confined to that part of the work which during its construction was primed with " plum- bago" paint. The old portion of the copper roof near the dome and over the rooms occupied by the Library of Congress has been so injured by materials falling upon it when the dome was in course of construction that it can no longer be kept weather-tight, and I recommend that a new roof be placed over this portion of the structure the coming building season. The heating apparatus of both wings has been kept in good running order. Of that of the House of Representatives — the running of which the Architect has more immediate charge — ^Mr. Lannan, the engineer, in his report, says : Through the entire session of the last Congress the daily ohservations commenced last year were continued, accompanied by accurate instrumental teats and measure- ments. Of that which pertained to the heating and veiijbilating of the hall of the House of Representatives they have been carefiiUy taken, tabulated, and preserved. REPORT OF THE SECRETARY OF THE INTERIOR. 757 They show for the period embraced iu the months of December, January, February, March, and April the following results, viz : Average relative humidity, per ccut .46^ Average revolution fan per minute 58 Volume of air carried to hall by each revolution of fun, cubic feet .^ 833 Volume of air carried to hall jjer minute by each revolution of fan, cubic feet 47,872 Volume for each person present, per minute, cubic feet Gt Volume removed for each person present, per minute, cubic feet 72 It will be observed that the volume of air removed was somewhat greater than that delivered. This fact is largely due to the expansion of the air, as the measurements of the air delivered was made at its temperature at the outside, while that of the air expelled was made at the point of exit of the building, where it was heated and con- sequently increased in volume. During the Garticld memorial services, when there were 2,400 persons present in the hall, the macbinery and appliances of this depart- ment were severely tested and with most satisfactory results. There were forced into the hall 113.885 cubic feet of air per minxite,that being nearly 48 feet to each person per minute. The temperature of the hall was likewise under easy control, as there was but one degree variation of temperature during this whole ceremony, the ther- mometer ran^n^ between 69° and 70*^. The small fan nas been taken down and reset, and the boilers have been repaired and placed in good order. As these boilers have now been in use twenty-four years, they have been stripped of all their coverings, thoroughly examined, and, to all appear- ances, are perfectly strong and secure ; but during the next recess I am of the opinion that extensive repairs will have to be made to them. I am gratified that as a further measure of precaution you have requested the Secretai'y of the Navy to detail some of the engineer officers of his department to make a fiirther test and inspection of these boilers. The boilers above referred to have, iu conformity with an order from the Navy Department, been inspected by Messrs. John Lowe and W. B. Bailey, i^assed assistant engineers United States Navy, who report as follows : The boilers, four in number, were entirely stripped of their brick jackets, thua wholly expcsing their exterior surfaces. The fire-boxes were first carefully inspected ; during the time each was undergoing inspection the boiler was subjected to a hydro- static pressure of 110 pounds per square inch, none of the flat surfaces in the fire- boxes showing any signs of weakness. The following defects were found, however : In furnace No. 1, three patches about the water-legs and one small blister. In furnace No. 2, one small crack in the tube sheet and one patch on the water-leg. In furnace No. 3, two patches and one blister on the water-legs. In furnace No. 4, one blister, three patches, and one crack. These defects do not materially impair the efficiency of the boilers, but wo would recommend that the blisters be carefully watched and cut out if they are foond to increase. The water was then lot out of the boilers, manhole plates removed, and the interior of the boilers examined. The boilers are well and sufficiently bnicoroved by cutting down the mound over the "Tiber" sewer, aJid witli the earth from the same fdling the lawns to the grade required ft>r the walks. The heating apj)aratus, to whifh two new boilers have been ant in a good condition, principally by a63 58 For amount for bricks 12,311 22 For amount for tin roofing 2,944 55 For amount for hardware 31K) 19 For amount for labor not on rolls paid by voucher .... 648 56 For amount for cement and sand 808 50 For amount for lumber • 'i,742 98 For amount available July 1, 1882 39,926 54 117,000 00 Amount appropriated February 23, 1881, $117,000. Very respectfully submitted. EDWARD CLARK, Architect United States Capitol. 762 PAPERS ACCOMPANYINa THE REPORT OF THE FREEDMEN'S HOSPITAL AND ASYLUM. Freedmen's Hospital, Washington, D. C, July 20, 1882. Sm : I have the lionor to submit the annual report of this hospital for the fiscal year ending- June 30, 1882. The year just closed has been an unusually busy one. That some idea of the growtii of the institntion may be formed, I Avill state that the monthly average of admissions of patients has been more than double what it was five years ago. The following table will show the number admitted and treated each year for the past five years. On July 1, 1877, there were 213 patients remaining in the hospital. Five hundred and nineteen were admitted during the year, making a total of 732 treated. On Jidy 1, 1878, 231 remained in hospital; admitted, G42. Total treated, 873. On July 1, 1879, 217 remained in hosj>ital; admitted, 817. Total treated, 1,034. On July 1, 1880, 223 remained in hospital ; admitted, 872. Total treated 1 095. On July 1, 1881. 225 remained in hospital ; admitted, 1,102. Total treated, 1,;'>27. The average admissions per month during the past year have been 91f . Of the 1,102 admitted, 345 were white and 757 colored. The accom- panying tables will show the class of diseases treated. I invite atten- tion to the large number of cases of Bright's disease. I am unx^repared to say whether the disease is on the increase or the better methods of diagnosis are such as to enable it to be easily recognized. The record also shows a large percentage of phthisical cases, es- pecially among the colored patients. I attribute this to the fact that these people are ignorant of the ordinary laws governing health, and are subjected to much physical and moral depression. The febrile cases have also been quite numerous, to which attention is called. During the year quite a luimber of surgical operations have been performed, among which may be mentioned the amputation of two thighs, two legs, one arm, and the setting of twenty fractures. The management congratulates itself npon the uniform success that has attended all of these operations. The hospital has at present 300 beds. The capacity can be increased when desired to 400 by utilizing the lecture-rooms connected with the building. During the year a telephone has been put up, which is of great value in ail cases of emergency. A large percentage of the patients are admitted upon the recom- mendation of the police authorities. They are, however, subject to a medical examination, and, if proper subjects, a report of the admission is forwarded to the department for approval. Though the api)ropriation for the past year was small, admission of any one deserving hospital treatment has never been denied. Patients have been admitted at all hours of the day and night. The mortality has been large, but this can readily be explained from the fact that many of the jiatients have only come to the hospital when their cases were hopeless. Quite a number have died in a few hours after admission. In this community there is a prejudice in the minds of the people to hospitals, and they defer going to them until they have exhausted all REPORT OF TFT E SECRETARY OP THE INTERIOR. 763 means of support at home. In my judgment there should be a board of visitors ai)pointed who should feel at liberty to visit the institution at all times. Such a board would assist njaterially, and 0 Admitted diiriiiji; the yi-ar -.-. 25 Since adniitteil 27 Total : Ill Under instruction since July 1, 1881 : Males, 04 ; females, 17. Of these 51 have been in the collegiatt' de])artment, representing 20 States and the Federal district, and (!0 in the i)rimary tle[»artuient. A list of the names of the ])upils connected with the institution since July 1,1881, will be found apjtended to this report. 764 PAPERS ACCOMPANYING THE HEALTH OF THE INSTITUTION. General good health has prevailed in the institution since the date of our last report. A case of scarlet fever made its appearance during the month of May in tlie family of one of our instructors residing in the institution. The child, with its mother, was promptly removed from the building, and no spread of the disease followed. The prevalence of small-pox in parts of the country not far from Washington suggested the desirableness of a general vaccination of the residents of Kendall Green. Vaccine matter was procured from Z. D. Gilman, of Washington, prepared by Drs. Robbins and Lewis, Brook- lyn, N. Y., and applied to more than one hundred persons. In only one case did the operation prove successful. Application was then made to Dr. Ealph Walsh, of Washington, for matter from his vaccine farm in the vicinity of the city. The same per- sons were again operated upon, and with scarely an exception complete vaccination was the result. One pupil only, Miss Alice Turner, has died since the date o'f our last report. Miss Turner had been connected with our primary department for four years, and was a young woman of quick mind and irreproach- able character. Her death, which occurred at her home just at the close of our school year, was caused by pulmonary consumption. DEATH OF MISS ANNA A. PRATT. We are also called to mourn the loss of one who had filled an import- ant position in the institution for many years, and who was greatly b<5- loved by both pupils and officers. • On the 9th day of March last Miss Anna A. Pratt, for fourteen years matron of this institution, ended her earthly labors after a short illness. Her health had been feeble for more than a year, and but a few weeks before her death she tendered her resignation, feeling that she was no longer able properly to discharge her duties. But her services were so highly regarded that her resignation was not accepted, and an arrange- ment was made for a considerable reduction of her responsibilities and cares, in the hope that with rest her strength might be restored. It was soon apparent, however, that her constitution was hopelessly un- dermined, and she sank rapidly from what seemed at first a light attack of catarrhal pneumonia. To all who came under her care Miss Pratt was a true mother. Pupils and officers looked to her as such, and ap- pealed to her in any emergency, sure of being met with that kindly in- terest and sympathy which can only come from the maternal heart. And it was not at moments of unusual need alone that her motherly care was manifested, but at all times as the movement of domestic life of Kendall Green went on was her influence felt. No one can ever sur- pass Miss Pratt in conscientious devotion to duty ; no one can ever fiil more successfully than she did the arduous and delicate position she was called upon to occupy. Her record is comj^lete, and she will ever be remembered by those who knew her as one deserving of their high est respect and warmest affection. The position made vacant by the death of Miss Pratt has been filled by the appointment of Miss Ellen Gordon, lately of Exeter, N. H., and the ability shown bj- her daring the few mouths she has acted as matron give excellent promise of success in the future. REPORT OF THE SECRETARY OF THE INTERIOR. 765 COURSES OP INSTRUCTION. The ■work of instruction in the several departments of the institution has proceeded with no essential changes. The number of pupils taught articulation has been increased, and the result of this branch of instruc- tion has been encouraging. Classes in drawing liave been taught in the college and in the pri- mary department by Mr. Arthur D. Bryant, a graduate of the college in 1880. Mr. Bryant's methods have proved eminently successful, and the progress made by the pupils has been in every respect satisfac- tory. PHYSICAL TRAINING. The results growing out of the work done in our new gymnasium have been most gratifying, whether they are regarded from a moral or a physical point of view. The morale of the institution was never a»s high as during the past year. The instances where discipline became necessary have been vcrj- few as compared with former years, and the reactive effects of an improved physique on the mental and moral faculties has been markedly favor- able in many instances. During the six mouths from November 1 to May 1, all the students of the college and the older boys trom the i)rimary school were re- quired to spend four hours a week in active gymnastic exercises, viz, an hour on Monday, Tuesday, Thursday, aiul Friday of each week. These exercises consisted of dumb-bell practice, in concert, intended to open the lungs, stir the blood, and set in motion the whole body, and in the development of special muscles by the use of a number of inge niously-prepared machines, designed and furnished by Dr. D. A. Sar- gent, the director of the gymnasium of Harvard University. The dumb-bell exercise was acquired with great readiness, and given with precision, the idea of rhythm and time in marching being con- veyed by the assistance of drum beats. The great benefit arising from tbe use of the special apparatus has been clearly shown in the uniform increase of chest girths, arm girths, &c., in tlie erect carriage and springy stei) of tlie students, and above all in the desire for rcynho' exen-ise, as shown in their work on days when tlu' exercise was not coini)ulsory. The i)hysi(iue of each student was carefnlly recorded in a series of forty-two measurenu'Uts taken at the beginning antl again at the end of the season. Tiie average chest girth of about lifty young men showed the following gains: Xorombor. M«y. Inflated «I7 .girt Repose 853 .86-1 The measurements given are decimals of a meter. The greatest gain in chest girth was : Novetnbor. May. Inflated «»0 .972 Repose 855 .910 Some interesting cases ocxiurred of the development of limbs into Bymmetrical proportions where marked discrepancies existed when thi; first; measurements were taken. 766 PAPERS ACCOMPANYING THE A single illustration will be sufTicieut : Isovember. May. Right calf :*77 .388 Left calf =574 .'^ Upper rifjht arm '-i'J7 .".JOS Upper loft arm 300 .305 TWENTY-FIFTH ANNIVERSARY. It was on the 23d of February, 1857, that the act of Congress incor- porating the institution was accepted and made the basis of their organ- ization by the board of directors. The recurrence of the twenty-fifth an- niversary of that day was deemed a fitting occasion on which to iurite the President and other prominent officers of the Government of the United States to visit the institution and see something of its workings. In response to invitations, the President of the United States, the acting Vice-President, the Speaker of the House of Kepresentatives, the Chief Justice of the Supreme Court, the Secretaries of State and War, the Attorney-General, the Postmaster-General, the chairmen and sev- eral members of the Committees on Appropriation, the Comptroller and First Auditor of the Treasury, with ladies accompanying them, sj)eut the evening of February 23d last at the institution. They Avere re- ceived by the president and directors of the institution and its otiicers, in the gymnasium, where an exhibition of athletic exercises was given. The company then passed through the college building to the chapel, where the pupils of the primary departments and the students of the college gave evidence in various exhibitions of the attainments they had made. The exercises were concluded with a pantomime which had been prepared by one of the students of the college, and was given by sev- eral of the young men. The visitors exi)ressed great delight and sur- prise at the progress which had been made by the pupils and students. EXERCISES OF PRESENTATION DAY. The exercises of the regular public anniversary of the college took place on the 3d day of May. In the absence of the President of the United States, ex-officio patron of the institution, the Speaker of the House, Hon. J. W. Keifer, called the assembly to order. Expressing his hearty interest in the institution and his regret that he would not be able to remain through the exercises. Speaker Keifer, in a few felic- itously-chosen words, invited Hon. George Bancroft, the eminent his- torian, to take the chair. The exercises were then opened with prayer by Kev. William A. Leonard, D. D., rector of Saint John's church. The candidates for degrees presented essays as follows : Dissertation — Liberty and Law. Edward Louis Van Damme, Mich- igan. Oration — Progress of Agriculture. Lars Larson, Wisconsin. JDissertation — Grecian Art in the time of Pericles. John Gordon Sax- ton, New York. Dissertation — Was America discovered by the Northmen ? George Layton, West Virginia. Oration — The Scientific Achievements of Faraday. George Thomas Dougherty, Missouri. Oration — Monuments. Eobert Middleton Zeigler, Pennsylvania. Oration — Contributions from the New World to the Old. Thomas Hines Coleman, South Carolina, REPORT OF THE SECRETARY OF THE INTERIOR. 767 Messrs. Coleman, Zeigler, Larson, and Van Damme were then pre- sented by the iiresident of the college to the board of directors as can- didates for the degree of Bachelor of Arts, and Messrs. Dougherty, Layton, and Saxton for the «legrec of Bachelor of Science. The honorary degree of INIaster of Arts was conferred on Lars A. Havstad, of Christiaiiia, Norway, a deaf-mute, who had made unusual acquisitions in science and letters. Kev. William C. Cattell, D. D., LL. D., presideut of Lafayette Col- lege, then delivered the following address on — A LIBERAL EDUCATION. The National College for Deaf-Miites has a deeper significance than other philan- throjtic inetitntions fDunded to ameliorate the condition of those deprived of hear- ing and speech. Any institution with this general aim would iinlced enlint our iiro- foundest sympatby ; for our hearts go out in tender and loving interest towards those hrothers and sisters of ours who are deaf or blind— in our Fathei-'s house they seem 80 near to us and they are so far away, in their rayless or silent land, from the high privileges of our common home. And we not only admire and applaud the private philanthropy that holds forth to them its helping hand, hut likewise all well dinctod apj)ropriations for their benefit from the })nlilie fuuds; men who most critically ex- amine the legality and exediency of approjiriations from the public treasury — State or national — as they read these appro])riations for the blind or the deaf, lind their hearts beating faster with generous delight. But " The National Dcaf-Mnte College," organized in 1864, means something more than "The Columbia Institution for the Deaf and Dumb," previously established, or any similar institution having in view the general philanthropic object to better their condition. The distinct and definite aim of every college is to afford liberal culture; and while the establishment of this college Ijy Congress emphasizes the value our national legislature places upon those liberal studies which lead to academic degrees, it marks also a great and important advance in the education ]irovided for deaf-mutes, an advance not only in degree, but in kind. These noble buildings, all this generous scientific equipment, this large faculty of able and distinguished scholars — all this assures us not only of the increased thoroughness and breadth, and eflieiency of the special instruction here given to the deaf-mute; but also that, in its enlarged range of instruction, are now included those liberal studies which liavo for geueratiGns at- tracted theaspiring scholar to the academic groves of Harvard and Yale. It is therefore no longer a disputed question whether the deaf-mute can or ought to enter upon studies wliich have for their object something more than to enable him to converse by writing in the absence of articulate 8i)eech, or to tit him for some eui- ployment by which he nuay earn his living. Elementary and practical studies are of course of the utmost importance for him as they are for all others; they lie at the very base of all education. But the liberal training which the college gives is yet separate and . In IiIh view, wliieh ■was the general oi)iniou of the ago in \vhi«h he livetl, all manual bil>or. all tjainful pursuits, whethermeeh.ui ical or industrial, were degrading tot hos«' of nolile birth, who, freed from such sordid occupations and cares, should be educated to disdiarge with dignity the duties and obligations of their high jtositions in the state. It is true these duties were pretty much summed up iu making a ringing speech in the seuat^ in taking a creditable part in philosophical and literary discussioiis, and most of all. 768 PAPERS ACCOMPANYING THE perhaps, in being a good fighter, for the Roman empire -^vaH almost continually en- gaged in war. It was for the elavos to work in the iinlds or at the trades. Happily this view of labor no longer exists; it is, indeed, essentially opposed to that which now prevails, especially in onr own country, where all honest labor is rigbtfully held to be honorable — " a man's a man for a' that." We have come to a better un- derstanding of what true manhood is, and of what the duties and obligations of freemen really involve; and this higher appreciation of the nature and dignity of man himself, without regarding his position in a privileged class, has led the Amer- ican ])eople not only to recognize the reHpe(.tal)ility of all honest labor, but also to insist upon the value and necessity of education, Jiot for the privileged few as their birthright, but for all. Education, in fact, has come to be one of the enthusiasms of this, perhaps, the most practical country of this practical age; the popular enthusiasm upon this sub- iect is something like the exultant triumph of victors after a hotly contested battle has been fought and won. For not without a groat struggle did the principle of ed- ucation for the masses become the settled policy of governments. '' I thank God," said one of the early governors of an American province, "there are no free schools orprinting, andlhope weshall not have them these hundred years. God keep us from both ! " And so thought and spoke, less than two centuries ago, other governors and men in high places who, upon the subject of education for the masses, seem to have made but little advance from the position taken by Cicero before the Christian era ; but in the present age such men are classed with the pre-adamite fossils. It was to a generation that has already passed away that Lord Brougham uttered the memor- able and exultant words, " The schoolmaster is abroad ! " But when we come to inquire what it really is that education aims to secure, we shall find conflicting views — not merely as to its methods and appliances, but as to the definite and determinate end which it has in view. Even the derivation and meaning of the word is in doubt, whether we shall regard it as from educo, to lead forth, or draw out ; or from the kindred ediico, to nourish or rear as a nurse cares for one committed to her charge. Varro makes the distinction between these two words, educit ohstetrix educatmttrijc, and, as the function of the teacher, he adds docet magiater. The meaning of each of these words, «Zmco and efZwco, (which are in fact interchangeable in classical Latin), is employed by the advocates of the different theories of educa- tion, which hdve given rise to such prolific discussion at the present day. There are some who are satisfied with the education which is simply instruction, whose only aim is to render it easier and more certain for a man to earn his living. This is certainly a most desirable result to be secured. I have no sympathy with those who speak contemptuously of this as a "bread and butter " education. We pray for our daily bread ; it is an equally solemn duty to prepare ourselves, as best we may in God's Providence, to earn it. There are others who look beyond this narrow range, and who regard education as that which imparts the knowledge and develops the faculties and powers by which success is conquered upon broader and nobler fields than those occupied by men who are merely struggling for a living ; it is by education that men secure high place among their fellows and are able to keep it ; or they secure great wealth or whatever else may give them power. Education, in the view of these persons, is of value in- asmuch as educated men are, after all, the ruling class; they are here, as in every other country, the power behind the throne. Nor should any man speak lightly of this education. The desire to secure inflnence and power among men is not unbecoming to a noble nature. We hear much of the anxieties and cares and toils of great wealth and of high position, but these things represent power, and he who wields power benefi- cently rises to new and great enjoyments. The scepter of such empire may be heavy for the hand that wields it, yet none but the ignoble would cast it down. But there are those who take another and, I think, a wider, more comprehensive, and more just view of the aim and the value of education. It is that view which has regard to the nature of man, who was created but a little lower than the angels, and who has faculties and powers to be trained and developed with no reference to bread-getting, or even to wealth or power or high place among men. Without dis- crediting the education which has practical or gainful ends in view, we believe there is a sense in which the student is an end nnto himself ; and within the wide and varied scope of what we call education, there should be methods and subjects which have no direct or immediate reference to what are called practical ends, but which aim to develop those faculties in the possession and nso of which man rises to the highest sphere of dignity and enjoyment. This is what we call liberal education — the educa- tion that after all is best fitted to the nature of man in view of his personal immor- t^ality which belongs to this life as well as that which is to come, and by which he is distinguished from the brutes that perish. Now, the definite aim of the primary school — useful and even necessary in its place — is to instruct ; it is to impart practical knowledge. Of course, if the teacher be skillful and wise (as all teachers should be) it will include training and development; but REPORT OF THE SECRETARY OF THE INTERIOR. 769 this is only incidental to the main objects in view. The child is taught reading, writing, and arithmetic ; of these lie has immediate and urgent need, whether he goes on to make broader acquisitions in other schools, or closes his books to engage in tho busy activities of life. The same thing is true of the technical or professional schoolw. The student is still taught what will be of ])ractical use to him as a lawyer, a physi- cian, an engineer, or whatever else may be the occupation orprofession in life lie has chosen. All mental or moral discipline, all training of tiie higher faculties, all de- velopment of character is still subsidiary and incidental in this education — the aim of which, as in primary instruction, is to impart that which is useful and practical. And hence the desirableness or necessity of distinct and separate studios with dif- ferent aims and, to some extent, different" methods, wliich, while necessarily iuclnd- ,ing much that is useful and practical, has for its primary object the development of the higher and better nature of the man that is within us. And this is the aim of the college, which has therefore its important and necessary place in every complete sys- tem of education. The college ktseps in view the two aims of all education, viz, in- struction and development, but it reverses them in the order of importance from that of the primary and technical schools, and of all schools for special instruction. The advocates of liberal education do not claim that it will ])r<)d)ice grapes from thorns or figs from thistles. There are men so severely jiractical that the wise.it thing to be done in their case is to teach them the multipliiatiou talile, and set them at work; others are so dreamy and emotional that liberal studies will develop in them only the esthetic craze of the day. But all heallby and well-balanced natures will tind in these studies both joy and strength. In the practical schools of every grade the shortest and easiest way to learn what is set before the student is the best way. The child learns the alphabet that he may learn how to spell and then how to read; and the engineer learns the strength of mateiials and the laws of force that he may build a bridge; and the surgeon leiims what may euable him to set a broken limb. All methods and appliances that save labor and time in the acquisition of such useful knowledge is therefore so much gain. But as the primary aim of liberal studies is develojiment, and as the mind grows onlv in exercising its own powers, it is evident that to sav(! labor (except ill-directed labor) defeats the very oliject in view. Therefore, as I have already intimated, the college difl'ers from all other schools, not only in its primary aim, but also largely in its methods. It is really a mental gymnasium, and this indeed is the very name the Germans give to their schools most nearly corresponding in aim to our colleges. He who seeks to .strengthen and develop his muscle by the use of a well-appointed gymna- sium, must practice many things for the sake of the practice ; and so for the sake of the exercise the student goes down into the college pahcstra to wrestle with pure mathematics and the cla.ssics. The knowledge of these subjects is not a necessity for him in constructing a tunnel, or in drawing up a brief, or in carrying on mercantile or manufacturing euteri)rises — though it may be said that, in additiiui to the forma- tion of manly character bj' liberal studies there has been developed in the exercises of this palifstra the sinewy grasp whieh in after years has its practical use when the robust athlete takes hold of any subject with which he must wrestle, either in his pro- fessional or business life. And here, did time allow, I would like to discuss some of those questions which are still in debate even among the advocates of liberal education. For example, the pr*)- portion of time and labor that should 1)0 given to pure mathematics, which seem to lie most remote from any practical use in after life; to psychology and ethics, which have always held their jilace as high topics of discussion iii all schools; to the moiU-rii languages and the natural sciecnes, which more nearly ajqtrojich to the practical studies of the special s<'hools. And I should have been glad lo discuss the value and place in every course of liberal studies of the classical languages and literature, and to examine also what may be hoptnl for or feared by the friends of liberal education in the general introduction in all our colleges of a course of liberal studies le.iding to a dift'eront degree from that of B. A. — excluding the ancient languages, but aiming to secure by the use of tin- modern languages and literature, and with the em]do.vmeni of the old and .'qiprovc'd methods of liberal teaching and the aid of modern philolog- ical research, th(> same kind .•iiid degree of culture as thi> t>ld course, with its (Jreck and Latin. And more important than all, as it seems to me, is the discuswion of tli«< question, how shall this liberal education lie so infused with the principles and spirit of the great Teacher that the religions nature of man, as well as of his moral and mental, may have its full develojjnn'nl. Bat I forbear to enter upon these questions, and would merely point you to the ex- istence of both of these courses of study (classical and scientific), not only in tliis college, but in the hundreds of colleges all over our land, as the evidence of" the pop- ular appreci.it ion of liber.il culture, and also as showing the sul)stantial ngre«Mnent of all college education in both the old ami new course of study as to subjecta anil methods. 49 Ab 770 PAPERS ACCOMPANYING THE Hut I may not conclude even this brief nicdilation without noticiu}; f) • reproach biou^^lit at^iiinst lilK^ral studien, tliat tlioy .serve only to make men of idcan — men who ■ are not practical, who are not men of ati'airH. To tJicse objectors, it iw but the dream ' of the sentimental enthusiaHt that we should strive to attain unto the great ideal of the true, the beautiful, and the good, which is in the houI of every man ; they regard as idle vaporing the language of Aristotle, that "the harmony of the celestial Hpheres (should be echocrl in tlie soul of an educated man." There i« not enough of common ground upon which wo can stand to seriously ar8 12 Expended for fuel 2,'M'.l 62 Expended for blacksmithing ^3 50 Expended for harness and repairs 49 00 Expended for rent of telephones Ill 63 Expended for flour and feed 9j^o 84 Expended for dry-goods and. shoes 197 23 Expended for manure 67 60 Expended for gas 1,224 82 Exi)ended for paints, glass, &c i. 2t)7 32 Expended for expenses of directors' meetings 51 00 Expended for freiglit on ai)paratu8 for gymnasium 41 00 p]xj)ended for clothing and shoe repairs 367 26 Expended for flowers, plants, &c 82 00 Expended for milk 595 20 Expended for entertainment of pu])ils 7 50 I'xpended for medical and surgical attendance 651 00 Expended for illustrative apparatus 121 25 Expended for board and care of pupil at institution for feeble-minded children 300 00 Expended for apparatus for gymnasium 301 60 Expended for bread 1, 178 43 Balance unexpended 1,108 28 59, 137 71 II.— Buildings a-nd grounds. Beceipts. Balance from old account Received from Treasury of the United States. $182 17 8.242 07 8,424 24 Disbursements, Expended for balance of contract with H. Conrad for work on bowling alley ~l en Expended lor furnace ^ 775 tKl Expended for fitting up gymnasium 3'.«i 21 8.4Ji -M 772 PAPERS ACCOMPANYINf; TFTE ESTIMATES Fon NEXT YEAIJ. Tlic, iollowiuj;- estiiiuit.cs for the service of tlic iiscal year ciicling June ;>(>, 1881, have already been subiiiitted. For the support of the iimtitutiou, including- salaries and incidental (!xpense.s, and $500 for books andilUistrative apparatus, and 82,500 for general repairs, $55,000. To provide eidarged accommodations for the use of students, and ad- ditional hospital room by the construction of two small detached build- ings, $10,000. For tlie improvement and enclosure of the grounds, 85,000. The lirst estimate is the same in amount as the a])propriation for the current year. The number of jnipils will undoubtedly be somewhat larger next year than it now is ; but this will involve no increase in our salaries and wages, and it is hoped that the prices of provisions may be lower than at present, so that the increased number can be provided for without the occurrence of any deficiency. The estimates for improvements to our buildings and grounds, are to provide for matters which will contribute very greatly to the well-being of the institution. The construction of the Boundary street sewer, now being carried by our grounds, will leave our front in a condition which will necessitate the erection of some substantial and permanent enclosure. It is ex- pected that the section near us will be completed before next summer. It would be desirable, therefore, to have the appropriation for the im- provement and enclosure of the grounds made available during the current fiscal year. To the appropriation of $55,000.00 for the current expenses of the institution for the current fiscal year, the following jiroviso is attached: ii Provided, That no more than $22,000 of said sum shall be expended for salaries and wages." The directors are under the imi)ression that this provision of law must have been adopted by Congress without a full understanding of the needs of the institution and the character of the services that are required in doing its work. From a careful examination recently made into the organization of institutions similar to this, and on inquiry as to the salaries paid, it apjiears that the number of persons employed in this institution is by no means unreasonable, while the salaries are in no cases higher, and in many instances are lower than those paid to officers of similar grades in schools for the deaf, and in colleges for the hearing of the first rank, as well as in the educational institutions sustained by the government, and in the scientific branches of the public ser\ice. It is evident, from the comparison thus instituted, that if changes are to be made in the salaries paid here increased rates should be allowed in several in- stances. A comparison drawn between the per capita cost of maintaining this institution and the Military and K"aval academies will show that the pro rata expense in those institutions is about two and a half times as great as in this. And yet the period of instruction here extends over thir- teen years, while at West Point and Annapolis it is limited to four, and the number of our pupils is less than one-half that in each of the es- tablishments named ; both these facts tending to increase expense in this institution in that they necessitate more classes and proportionally a greater number of instructors. It is true that the cost per pupil in this institution is greater than in any of the State institutions for the deaf and dumb. But this is fully REPORT OF THE SECRETARY OF THE INTERIOR. 773 accounted for when it is ivnictnbeied tliat the State institutions bear the same relation to our colh'^iiate department that the primary schools of the country do to the colleges and universities. A course of study is given here equal in grad(^ and scojje to that aliorded in the best colleges of the land. J)eaf young men Irom all parts of the country, who have graduated from the State schools, seek our college as the only i)lace in the woild where they can secure the higher eihu^ation that their more favored brothers nuiy lind in the col- leges of their own State or section. And when the cost of educating the mute young men of our college is compared with the expenses incurred in behalf of hearing young men in ordinary colleges, it will be found that no charge of extravagance or unnecessary outlay cau be justly brought against this institution. If the proviso above referred to shouhl remain in force, it would bo impossible to carry the work of the institution througli the present fis- cal year with the moans provided by Congress. A reduction of moi-e than seven thousand dollars in our salaries and wages, if applied to yearly rates, would force many of our ollicers to seek positions else- where, which they could easily find, and it would be imi)ossible to sup- l^ly the places of such with experienced and capable persons. Or if tlie reduction were to be made by stopping all salaries and all work at the time when the twenty-two thousand dollars shall be ex- liausted, our students and pupils would have to be sent home at gi'eat sacrifice, of valuable time, our schools closed with the labor of the year incomplete, and all persons employed by the institution subjected to gross injustice. In view of all these considerations, the directors do not hesitate to urge, res])ectfully but very earnestly, that the attention of Congress be called to this matter, with the hope that on further consideration the jiropriety of the repeal of the i^roviso may become evident. CONVENTION OF A:tIERICAN INSTRUCTORS. The quadrennial convention of instructors of the deaf and dumb in the United States and Canada was held at Jacksonville, 111., in the State institution for deaf mutes during the closing week of August last. There were more tiian one hundred and sixty (b'legates present from twenty-eight institutions. This institution was repi-esented by Assistant Professor I)ra])er, i'rofessor Gordon, Profes.^or Fay, and President Gallaudet, the latter being chosen i)resident of the convention. Many snlijects of interest and importance in our work were discussed. ]\rany vahmlih; suggestions as to methods of instruction were brought forward. Abundant oi>portunity was iiail lor that jx-rsonal iuti-rdiango of views and exjx'rience which is of equal il'not gn-aler worth than the reading of formal essays; and at the conclusion of the nu-eting it was agreed that no more satisfactory and helpful gatheriug of instructors in our i)r()fession had ever been held. Every mend)er of the convention left .lacksonville with a deep and lasting impression of the warm-hearted hosi)itaHty that Inul been shown them by the able superintendent of the institution. Dr. (iillctt, and his corps of as.>ist;tnts, and of the generous manner in whicli tlie great State of Illinois had i)rovided for the education of her deaf chihlren. Among the numerous matters coiisifb'red and acted ujion by the con- vention, the only one whicli chiims a i)lace in this report is tiie follow- ing series of resolutions relating to our college, the unanimous adop- 774 PAPERS ACCOMPANTINO THE tioii of which Avill bo a source of gratification to all interested in our attenij)t to provide the deaf of our country with collegiate training. Prof. J. L. Noyes, of Minnesota, presented the following resolution, which was seconded by Dr. Thomas Maclntire, of Michigan, and unani- mously i)as8ed : Whereas tlio National Deaf-Mute College, in Washington, D. C, has rendered great and efficient aid in advancing the cause of deaf-mute education iu the United States; and Whereas the funds for the support of the college come from the National Treasury (as is i»roper) : Therefore, Resolved, Tliat we, directors, superintendents, principals, and instructors in Amer- ica, assembled iu this their tenth convention, extend to the authorities and faculty of the college our grateful recognition of the good work already accomplished, and ■would respectfully urge upon them the importance of increasing the facilities and per- fecting the curriculum and all the appliances of the college as best they can from itimo to time, that the graduates may enter the various professions and spheres of life open to tliem with an education, culture, and character that shall in no way be in- ferior to that of the highest graduates of the best colleges of the land ; and, moreover. Resolved, That we earnestly commend to the favorable consideration of our Sena- tors and Representatives in Congress the deaf-mute college in Washington, D.C., and respectfully ask that they nse their influence, not only to foster and support this national institution, but also from time to time increase its funds, so as to enable the authorities of the college to enlarge or increase the appliances in a manner becoming this national institution, destined to be so useful and beneficial in its influence ujion the various institutions of the land and upon this increasing portion of our popiila- tion. Resolved, That the secretary furnish. Dr. E. M.Gallandet, president of the college, a copy of these resolutions. EDUCATION OP THE BLIND. Appended to this report will be found a statement from F. D. Morri- son, superintendent of the Maryland Institution for the Blind, as to the .number of United States beneficiaries in that institution during the past 'year, and as to the progress they have made. The blind children are in the Maryland institution under the provisions of section 4869 of the Eevised Statutes, and with the approval of the president of this insti- tution, as required by law. EDUCATION OF THE FEEBLE-MINDED. One child belonging to the District of Columbia has been under in- struction during the past year at the Pennsylvania Institution for Feeble- minded Children, located at Elwyn, near Philadelphia, at the expense of the United States, as provided for by law. Applications in behalf of children similarly afflicted should be made to the president of this institution. ACTS OF CONGRESS CONCEENING- THIS INSTITUTION. In our Twelfth Annual Eeport, that of 18G9, all the acts of Congress relating to this institution which had been passed up to the date of that report were published. The comi)letion of the twenty-fifth year of the existence of the institution is deemed a fitting occasion for a similar publication. In the appendix to this report will be found a transcript of all legislation had in Congress concerning this institution from 1809 to the end of the last session of Congress. In this connection attention is respectfully called to the fact that in the preparation of the Eevised Statutes several important provisions REPORT OF THE SECRETARY OP THE INTERIOR. 775 of law lelatiug to this institution do uot appear in chapter five, title lifty-uine, as they ought to do, and the suggestion is offered that Con- gress take the necessary steps t<.» Iiave the needed amcudiuents made to the Revised Statutes. All of which is respectfully submitted by order of tlie board of di- rectors. E. M. GALLAUDET, rrtsident. Hon. Henry M. Teller, Secretary of the Interior. EErORT OF THE BOARD OF VISITORS OF THE GOVERN- MENT HOSPITAL FOR THE INSANE. GOVERNSrENT HOSPITAL FOR THE INSANE, Xcar Washington, T). C, October 1, 1882. Sir: In accordance with the law establishing tlie hospital the Board of Visitors have the honor to sabmit their twenty-seventh annual ix^port. A condensed summary of the changes of population and results of liospitul treatment is giveu in the following tables, to which attention is respectfully called: Summary. Bemaining June 30, 1881 ^Admitted dining Uie ycuT ending Juno 30, 1882 WTiolo number under tiedtuieut DIBCilARCED. Kecovcrod.'. Improved Unimproved Kot insauo Died Totid discliargt'd and died Uiniaiuing June 30, 1S82 Males. 700 178 878 Females. I Totals. I l.-.ii 22-1 fi9 294 925 247 1.172 101 230 M2 Admissions and dischargi ■ KKMAINIXG JUNK 30, 1881. A. „ O^Tiitc... ^""•y K'olored.. „ CWldto... N»^y icolorwl.. Marine Uospiljd Service J Colored.. C»^^ »'f" \ Colored.. Males. i enialus. Totj 43S 8 10 S 448 1 2 41 44 8 2 1 i 10 10 IM IRl 48 nt ! 201 423 , 7oa 1 225 jrj3 776 PAPERS ACCOMPANYING THE AdmiHHiunH and discharges — Contiuncd. AliMITTEI) DUllING TIIK yEAU 1881-'S2. , CWliite... ^""•V J Colored.. „ < White... ^"^■y ."• J Colored.. C White . . . I Colored .. limine Hospital Servico. Civil life C White ... I Colored . . UNDER TREATMKXT DUKING THE YEAU. C White... I Colored.. Arm J' Xavy Marine Hospital Service Civil life C White ... ■ I Colored . . C White . . \ Colored. Males. 20 497 12 < White... 223 (Colored..! 67 DISCHARGED DURING THE Y&An—EeCOVered. C White - . . i Colored.. Army Navy Marine Hospital Service Civil life < White ... ■) Colored..! i C White . I ( Colored . C White . . ' I Colored . DISCHARGED DURING THE TEAR — Improved. C White . . I Colored. Army . . . Navy Civil life 13 5 White . . \ Colored . C White - . \ Colored . PISCHAEGED DURING THE XEAK— Unimproved. < White . . . I Colored.. Army... Navy... Civil life Wliite ... Colored . . White . . . Colored . . DISCHARGED DURING THE YEAH— Xot insane. C White . . "^'■iny i Colored. DECE.*.feED DURING THE YEAR. Army Navy Civil life. 5 White... I Colored . . C White... ■ \ Colored . . C White ... ■ l Colored . . 42 89 509 61 15 290 178 878 60 Females. Totals. 208 82 68 290 21 294 21 2G REPORT OF THE SECRETARY OP THE INTERIOR. Admissions and discharges — Coutiuued. 777 Malr-s. .L Femiiles. Total*. UEJIAINLNG JUXF. 30, 1882. C White... 410 \ Coloi-ed . . ' 10 Aitny "^*^i ^Colored.. ilarine Hospital Service | Colored '. '. ^iviiufv 5SS-:; 49 168 j 58 ! 420 14 226 167 700 230 423 49 14 450 JM2 Note. — There were six less persons than cases under treatment in the coarse of the year by reason of six readmissioDs. Monthly changes of population. Admitted. Discharged. Date. _2 6 el a 1 o •3 1 •3 •s Died. •3 M « 1 o •a 1 1 ■c — -^ July 1881 14 14 15 11 13 16 18 12 14 7 18 26 7 13 1 3 5 6 5 ""s 6 6 9 21 27 16 14 18 22 23 12 22 13 24 35 2 26 6 5 6 6 5 11 10 9 3 3 4 5 1 7 1 1 J 4 3 1 5 10 31 7 12 7 7 6 14 14 12 4 4 4 5 6 7 13 3 5 8 22 11 15 8 9 August 1881 3 2 6 6 1 15 September 1881 36 October, 1881 14 11 15 2 "l 1 7 2 9 2 2.5 December, 1X81 lU January, 1682 12 FebniaVv, 1882 14 March, 1882 3C April, 188'J 25 May, 1882 27 Juiiu, 1882 7 Totals 178 69 247 95 34 129 1 74 27 101 230 Physical condition of those tcho died. Apoplexy i> Apo])lcxy, epileptic 1 Hrifjlit's disease 4 Clioiestenenna 1 Cjii)illary bronchitis '2 Cirrhosis of liver 1 Dianlura 10 Exhauslion from chronic inuiiia . .... 1 Exhaustion from acute mania -t Epileptic c»>nviilsions 1 Cancer of stomach and intestines.... 2 Fatty ilej^oneration of liver, and cinle- ma of Innjjs 1 Heart disease 3 luauitiou 2 Malarial fever 2 Marasmus 'J Organic tlisease of lirain '-'vJ Organic diseaiio of brain and spinal cord 'i Paresis 11 Phthisis pulmonalis 1"2 Pnounionia .''. Paraplegia and inauition 1 Peritonitis 1 Senile debility 'J Typhoid fever 1 Ulcer uud stcuottU uf duodeuuiu 1 101 778 PAPERS ACCOMPANYING THE Duration of the mental disease of thone xclio died. Less than one month I Two months 1 Font months '•'> Five montliH -i Eight months 1 One year •' Two years 5^ Three years 11 Fonr years lf| Five years Six years 4 Seven years.... 2 Eight years 4 Nine years 2 Ten years 2 Eleven years 1 'i' w(il ve yt;ars 3 l''oiirtec'U years 4 Fifteen years 1 Sixteen years 3 .Seventeen years 2 Eighteen years 1 Nineteen years 1 Twenty years 2 Twenty-one years 1 Twenty-four years 1 Twenty-seven years 1 Twenty-eight years 1 Unknown 11 101 'Duration of disease on admission. Males. Females. Totals. LESS THA5 SIX MONTHS. . C TVhitO . . -^nny (colored. -, C White . . Navy ( Colored. Ci-eiHife i Colored. LESS THAN ONE YEAK. . C White . . ^™y i Colored. ,,,. ' C White.. N*^y ^Colored. Marine Hospital Service < Colored! ^. .,,.,. 5 White.. Civil hte ( Colored. ONE TO TWO YEAliS. . C White., -^rmy ( Colored. T,, C White . . Navy ( Colored. Marine Hospital Service < Colored „..,,.„ C White ., CiviHife I Colored, OVEU TWO YEARS. . CAVhitO . . ■^™y I Colored, .. C White . Navy } Colored „. ., ,.„ ^ White - •-ivilWo ^Colored 16 71 78 22 54 REPORT OP THE SECRETARY OP Duration of disease on admission — THE INTERIOR. Coutiuued. 779 0\'En TIinKK YKAUS. Army. Navy . ( White . ■ ( CoIoiimI < Whit.! . I Colored Civil life h^l'^^i I Colored OVEU FOim YEAIJS. ^""^ -■ {SS: ^-y {^l;!::d: Civil life } Males. Whit©.. Colored , FIVE TO TEX YEARS. C White ... ' I Colored.. C White... ' I Colored . . C White... ■ ) Colored.. Civil lif^ SSlir^d! Army Navy Marine Hospit.il Service. TEN TO TWENTY YEARS. Army Navy CivU life. OVER TWENTY YEAILS. Army — . Navy Civil life. C White . . ( Colored . C White . . ( Colored . C White .. } Colored . C While .. { Colored . C White.. I Colored . C AVhite.. ■ I Colored . Army Navy Civil life. C White . ' I Colored C White . ( Colored J AVhite. ' ( Colored KOT LNBANB. Army. White.. Colui'ed . 14 Females. 42 43 Totals. 43 780 PAPERS ACCOMPANYING THE NATIVi: IJOIIN. FORKIGN noi'.N. District of Columbia f'89 New York 401 Maryliiud .-- ''>^0 Virginia '^^ PeniiHylvaiiia 28'^ Oliio MaHsacbusctts Maine Illinois Couuocticut New Hainpsbire Indiana Kentucky Micbigau New Jersey Tennessee Wisconsin "Vermont Missouri Rhode Island Delaware North Carolina . Alabama South Carolina Iowa Georgia Mississippi Louisiana ...... West Virginia Kansas Florida Texas California Choctaw Nation Colorado Arkansas Indian Territory 14 1-24 ()0 i 51 I 45 50 41 :39 30 3() 25 21 27 24 17 14 21 8 9 4 10 11 7 9 Total 2,890 Ireland Germany England France Canada Scotland , Switzerland Italy Denmark Norway Sweden , Poland Russia Austria Nova Scotia , Spain Holland Wales , Portugal Hungary Mexico Saxony Malta , Belgium Buenos Ayres Costa Rica Bavaria Sicily British Columbia British Possessions East Indies (British) . West Indies (British) West Indies (Hayti) . New Brunswick Cuba China Sandwich Islands Coast of Africa Cyprus Turkey 1,109 7:5G i:iO 53 48 :w 15 22 15 10 11 7 7 9 4 6 4 3 4 3 4 3 3 1 1 2 1 1 1 Total 2,281 Native born. . Foreign bom. Unknown 2,890 2,281 239 Total 5,410 FORM OF DISEASE IN THOSE ADMITTED. Mirnia. .icnte Itlaiiia, chronic ileiiincholia Dementi.i Dementia, senile Paresis Dipsomania Typhomania (Bell's dia ease) 1,878 816 638 1,293 56 65 351 1,93G 863 680 1,354 62 73 366 Kleptomania... Nymj.liomania . Imbecility Opinni eaters . . Xot insane uic'idal (tibitosition 285 2 122 139 50 13 298 i2fi 142 00 Periodicity Puerperal state Catalepsy Nostaljria Post febrile condition 195 40 8 32 44 1§ 195 40 U 3:1 44 As far as could be ascertained, the volunteers of the Army and Navy under treatment duriiii; the year ending June 30, 1882, euteretl the service from the followiuir States: Army. lfav>-. Total. ! ' !i Anny. Xavj-. Total. Xdw York 40 40 27 18 20 11 IG 10 4 7 3 1 7 15 4 6 2 Obio 27 Perms vlvaiiia 18 Delaware 1 ' Virtnnia 1 3 1 1 1 1 New Hainpshiie :! Vermont 1 ; Kentucky 1 Louisiana 2 10 1* Unknown 11 XewJersey 4 Maine C 212 1 1 213 1 Tabular statement of the time of life at which the 5,410 cases treated since the opening of the Institution became insane. 1881. Admitted. 1882. 83 5 88 55 2 57 323 13 336 n»3 33 976 1,038 38 . 1, 0V6 009 22 931 600 26 626 3!t7 18 415 273 9 282 254 17 271 143 10 153 51) 3 Ai 7 1 8 &4 47 131 ' 4 3 .-■., 103 247 5,410 Under 10 years Between 10 and 15 years 15 and 20 years 2f) and 25 years 25 and 30 years 30 and 35 years 35 and 40 years 40 and 45 years 45 a!id 50 years 50 and (iO years 00 and 70 years 70 and 80 years W) and 90 years. Unknown "Sot insane Total Prirate patients. Total. There were at llie lu'^iuiiing of th«»-.«055««ooc.^«go«5«333 o o a m 1 CIS '•5 i .a . " IS P ■inoj, c-iMoe>5il'Ooaot-Mr~woot-ooo>cot~-i>«3^rtO»"ftw •*CJIMr1SMPJIMCOOOOM'OC>l'<»iCOUiO'<>'UHnOTO-J'Tf«>"9'«fJ •oiBinaj U5CiS0J»r«if-lt-(l0U>00OMW09e>00^l-iflt-O«300e>0»C»0>00 W fHrH Clf-t fttHrH o •91BK t-owi~ot-i~ci.-i-i-Ht-<»ooMe>iotor- r-Nrt WrHi-IP5a!t-^lOCMC0CJ-3r;-5-?lS -2 S a I •moi t-«■ o p. S M •l«*0X W«»lM.-<.H00C0e'l!=M-»'0!m»-JC-3lft000»I-lC00»t^O--ie>00 ■918019,1 tHi-ICO ilOCoggoo.-t^ 0,^00000 «ogrj-wo« i .o (M M 00 •9iBta9,i eoweO'^inwis-^inoot-iOooiffloocs-^^NT^cooccoNoiMo •9IBK rHOOoo(N!i!00cjcooec-*r-cqco-Hi«M-*05coines^t~ir>t^rj,H r-ii-iM03C)!M3:oo-o'ioineoinio-*oofflioOT»ioioioeo r1 C-)CgC^ ei OO 00 .a 1 es o - J3 m Is § O i/ss.*.*,,.^ icoooioaiMtn o '6 s •ii5;ox •918019,1 ;::;;;;;:iH.HrHrH::;.H:rHicQ.- < icOWrH-««iOO C4 ; • ! • i ■ ! * i . . t i > •9IBK 4 CO lO CO 00 oc t* S • • r1 Tt> rH eq rt N CO T». rt I- 2 p< .§ 'S •I«|0X ' ■j'"* riw* t- ;;;;;;;;;;;;;;;;; ;;;:;::; •9IBai9j[ •• lO •9IBK • ■ •■•■•••.«<• t •• t 1 . I -r-li-l *" « 1 o M P< a •F^tox '••• • 4iH Jxl-eOrtOO as CO •9JBnl9J ••••••••• •».« . « • . 00 •91BK CO ; ; ; ; ; 1 1 ; ; ; ; ; ; ; ; I J ; I J I ; '"' to o > g •WOX KlHCJCOOOO-H S3 — :::::;::;;:;;;;::::.: •918 019 J :::::::::::::::;:::: i-^ : :'^'^'»s M ; : : : ; ; ! I ; : : t ; : : : t I : : : . . '^ •91CJV • iH N N t- 00 -H ; .-(CO 3 i s < •Ib;ox S5S5gg§gS|3||S|S|g3||m||ggg t3 If as •918ia9,j : Wr5C0U5.-lrHt~ClN-*e0inCi5OC0CD'»'O->}'C:»*C»3r^r-l,-CO 00 ■Hr-lr-i— iri.-lr-l.-lrt^ •91BK r-iriOr-l'*Mt-»»OINt-inOO'*ClCOC o c-i t- « 00 « .-: = •.-; r^ ci 3 ci o •9IBin8J •9l«K •P^OX •gjBtnaj •epre "WX • !t ; i C5 >H a; t^ — ^' t-: o c: --■ -fll t; ri t~' ■«r o Lri r: 00 r: r: "» u-i o al ■ ••; -o » mm m~u-. >5 ^ c^ o ^r 'i — r: oc ?i ?5 r; c es «~ ■ o ^ c; n m o ^ ci t^ t^ w C5 f-i I* t- 1- o t* C5 71 'c -J ^ o t- w ■* • 00 s t-^ I.-: ad I- oi •-< ei CO r-' eJ i~ CO « c t« o m t- u cc lA o o t- ad •i-i-woi-fioccMvoocococcnTi — xi-riiocxt-oooo ^c-. 55 ri V, I- o -« M o T -: ■-* X >^ >- 3 ci M t- w i-- o ao s -- »-i »" • t^oo"r-it^odomooc>r3»noQdc4cJu-:ot-^«a'Occ^<^oact-* Tco o — 71 — « '-"■i « s I- Ti >.■: -^ C! — S>i 71 c a c6 ss"rr^:^ci i-r" • ci-j-ciaccioi-I^icio^cJcsCiLrJssot^i-^osx't^coodt^cso "o — -^ 71 7^~x~r7 « X ui ■» =">.■; i^a r- t- V— 7i ;i t- s; c rTf^TJ'oe" oi~'— '»t~co->'0'S'i-:ciflxcjoee3?;i-.s®'i»ix5cjr:cso O •"* CS ^ t'^ 71 IC f-^ O m f-: -^ CC O -^ ^ H X' -Hi t-I orf L-£ 53 00 O iC cc o Ofc^i.-^o;acot^cciOo^oo^''*rt-r'vro^-3T:'^f5r^w •91BK •i«;ox •aiBtnaj •aiBK •I«»ox 'diBuia,]; • h^ o" :s i~ 15 X o* — ■ ts -r ci 71 ri C5 n' o « o o ir; t~^ r-' o •^ •-. c e • nvHiAmmcst*t«commmmm^Tr^^m-^ Sxo^-r = ^-r^'^— ots-Tr:xict- — tsr-S". = i-of7xx" ooxr3 7ioxt^cotj)Xi~'^' •-- -^ f* ci c c-l ro X* »"* i>^ ^* r; « -* -T t' t-" — • 7 i :c ■--• t-" ts ci t* ».■; r^ rl ^ m CO t- O O 7J ts O 1^ -Ti X 71 -•• ^ * - O 70 wl 77 — X rs — I.- od 3» _ " « --^ -^ 71 71 ^ — 71 71 71 :o -T -r -r I., ir: 1.0 t.O ;r tc t£ o §70 S; t- X I- — 71 C-. = O 71 = X X — X — = 71 X -T UO PO CJ t~ m 71 " » = — 70 tc X — l~ lO » X V- 71 -J 10 :^ -i 71 5c -^ -» c= C; t-l 3! 71 ^ ^ rt -^ ^ r- 71 71 70 71 71 71 70 70 -r m O ts O I- t~ l» I- X X S; O ! 71 71 O 77 ^ CO 7l"tS ts X 71 ro^oits ».o eo ~ ^ C-. C O 71 71 70 UO lO ts to X — . C =. 71 70 •9i«re TW»ox ©•^■csiorwtsc; t^ro-*t*coootscs"-r7ixts7it2r:ot--^os: e>j>.'oift»oooo-»rot5oxxeji?";« -^ ^ t-ip-c»-»i-ir-«cQtst*-*iricc7^r^^^-^^^i353c3o^(dox 3 I -aiBinaj ■»fk: .-f_ _s • ir50ot^«oec?7tor^r^os-^o>7i^owt*e«»»-*QOMO^-^j«>o ^'i tC~ • ■-ri-iNi05sc<3Tri-i7icj.-ico««eoio-v>r»ia'»«oti i-i • e>3aocO'«iac<0'«oocori'«iaeacq^t-co<-it>aot>o>c>iraK ^t-co<-it~aot>o>riraKr~ IT^OX ;f-'4i-icqt>«n«o t^~| c^ aiBoaoj ■r-o•-(laoo•H^nc30ao»:4^9ea ; ; »-ifHt-cJ7ii-i •-i7iM7jr)nA709<«incoe3co|«o •oiBinoj •r-lr1^mMi-li-lf-ir>t>CQ^CD0Dt~e«mdO Ol"3 70 OS t- o d> oo •9iuk: I ; ; il ii to '-> T'l p« t-l M ^ M 71 7) 74 71 rs PO Ci >l « "coin to «"^ 70 fo'a' 75 oo -fa 'c> Vo o fi"^'-* s ■■: ■♦ to s 71 7»7i« ' •HC4niaAo2c^oiot6t-'aet>t-«a£3ai.'ot>x iH r^^ 11 ^1-1 (H iH •-■ C4 t-l ^ M — « ^ go 8 5 g I ^ 2| 5 3 Sis S 5 5 B S B 3 5 S SS g~ "^"5 Si 5Tg S"Sl'p|i §5 5 i" £ a J S g 2 S i- 1! ^"i r, t; ■ R :^R 2 2 S ;; 2 S3 ^ g SWS S S 5 S S 5 5S 5 S? 5 US" :S5?;S 784 PAPERS ACCOMPANYING THE The total Dumber of admissious, 247, is somewhat in excess of the annual averaj?e of admissions for the last few years, while the whole number under treatment, 1,172, is larger than that of any previous year. The daily average number resident is 929. The number of cases re- ported as having recovered is 81, it being a little more than one-third the whole number of discharges, including deaths. The total mortality of the year was 101, it being about 8.0 per cent, of tlic whole number under treatment. This, while not excessive as compared with other hospitals, is somewhat above the average annual mortality here for the last ten years. A considerable number of cases of intermittent fever have occurred, and during the early months of spring, when the river water was rendered very impure by the melting snows and surface drainage, a bilious diarrhoea of a somewhat obstinate tyx)e appeared, which proved fatal in a few cases of feeble persons. But aside from this the general health of the hospital inmates has been good, and the increased mortality seems to have resulted mainly from the termination of an unusual number of chronic cases of brain disease, more than one- third of the deaths having resulted from that cause alone. In only nine cases, out of the ninety deaths in which the duration of the insanity was known, had it been less than one year's standing. The hospital has now arrived at the time when a moderate increase m the yearly death- rate is to be expected, from the fact that a very considerable portion of the population of the institution is made up of the late volunteer sol- diers who have for many years been inmates and are now growing old. The question of the continued use by the hospital of the water from the Anacostia Eiver, which is every year becoming more impure, has been happily settled by Congress at its last session aj)propriating the means to provide a supply of pure water for all purposes. It is thought that this can be best and most economically obtained by bringing the Poto- mac aqueduct water under the river from the mains already laid in the city. Steps are now being taken to accomplish this, and it is confi- dently expected that the work will be completed before the time for the next annual report. The legislation of Congress at the last session, which provides at this hospital for the care of the insane from tlie Home for Disabled Volun- teer Soldiers will result in a considerable increase in the number of Army patients, a class that, as the wards of the nation, have a special claim to hosi)ital care. In providing the additional accommodations thereby rendered neces- sary it will be possible and desirable to carry out the plan already com- menced in the recent additions to the hospital, of pro^iding detached buildings, or at least distinct wards for certain classes of the insane. With upwards of a thousand patients from whom to select it would be strange if w^e did not find a considerable number who could enjoy within the grounds the same liberty which is accorded to the inmates of the Sol- diers' Homes, and on the other hand the provision of greater security for the criminal and dangerous class apart from their fellows would allow of greater latitude in the care and surroundings of all the rest. With the completion of the proposed extensions and detached buildings we shall have upwards of forty w ards for the classification of our inmates. This would seem to give us all the variety of arrangement and subdi- vision which a progressive philanthropy requires, or that is consistent with the economical management of the hospital. Indeed, a moderate increase of expenditure will be found to result from the multiplied sub- division and thorough classification which the comfort and, we believe, the best interests of the insane demand. But in their care the question REPORT OF THP: SECRETARY OF THE IXTERIOR. 785 ought never to be how clieap, but how well. So in their employment, the listless, idle life is to be met and provided for. The problem of the economy of the labor of the insane is at best but a secondary considera- tion. The experience of another year's occupation of our work-room for indoor occupation has not led us to think of its abandonment. Tlie enthusiast who, with no power or right to compel the insane to labor, expects the most of his j)atier)ts to undertake anything like continuous work indoors or out, will probably be disai)poin'ted. Labor is still re- garded as the " primal curse" by the majority of our inmates; but the total number of hours spent in the brush shop is on the increase, and, with the provision in the law enabling tlu'hosi)ital to dispose of surplus products for its own benefit, we hope to make the industry self-support- ing. The inmates seem cheerful at their work, and are better content ; they have some tools, but it is observable that accidents, when they occur, do not happen there; the violence is not at their hands, very much as elopements are generally from locked doors and guarded win- dows. Of course the selection of patients into whose hands tools can be safely put is a matter of great care, more so than that of inmates for unlocked wards. Except a few cases where the typo of their insanit^- predisi)Oses to restless wandering, very few of our chronic insiine desire to run away. When they have gone outside of the inclosures it has more often been from a curiosity to see what lay beyond the wall than a desire to escape. This is their home, their world, and it ought not to be so conducted as to seem to them a prison. During the past year we have opened our doors wider, with no unpleasant result. There is a limit in this beyond which it would be unsafe to go, but it will be found to be a limit that recedes as you advance. The outer doors of four of our female wards, as well as those of the relief building and the invalid ward in the male department, now stand open during the daytime in pleasant weather, and the change is felt to be an agreeable one by the inmates. The follomng is the table of farm and garden products for the year ; J arm and ijaiden prodiujts. • Aiqiaragas, 5,807 bnucliea, at 6 cents $348 42 Apples, 59 bushels, at 75 cents 44 '2.'i Beans hima), 276 bushels, at §1 *27G fK» Beans (string), 13 A bushels, at 75 cents 10 12 :Beef (fresh), 3,330'pouiKls, at 10 cents 'X\:i 00 Beets, 2,029 bunches, at 4 cents si l(i Beets, 149 bushels, at 50 cents 74 50 Beets (greens), 2« barrels, at $1 28 00 Cabbage, 18,(>27 heails, at K cents 1,490 if. Carrots, 3,345 bnuclifs, at 3 cents lOO ;{.'> Celery, 2,575 heads, at 4 cents 10:{ 00 Chickens, 27-|V dozens, at $4 110 'Xi encumbers, 539, at 1 cent 5 39 Cherries, 90 bushels, at »3 'J70 On Currants, 843 quarts, at 15 cents VJ{\ ■{:, Corn (green ), 12?^ jV dozens, at 12 cents 15 ;c Ducks, 5iV tiozeus, at §5 27 91 Eggs, 3,0t>5^5 (lozeuH, at 20 cents r.13 17 Figs, 34 quarts, at 20 cents (J N> Geese, 10, at $ 1 10 00 Gooseberries, 30 quarts, at 15 cents 4 50 Grapes, 9,077 pounds, at 5 cents 453 ^5 Kale, 285 biirrels, at §1.50 .1-J7 5ii Lettuce, 8,ll»l heads, at 2 cents ir.:5 .-^i Leeks, 1,425 heads, at 1 cent. 14 2.'. Milk, 44,079 gallons, at 30 cents 13, 22;t 7(i Onions (sets), 5 bushels, at J8 40 0(t 50 Ab 786 PAPERS ACCOMPANYING THE Onions, 5,78r> bunches, at 5 cents $289 25 Onions, 12 l)uncheH, at $1 I'-i 00 Oystor-plants, l,ia2 bunclics, at (5 cents 70 92 Parsley, 3,04;} bunches, at 3 cents 109 29 Parsnips, 206 bushcln, at $1 206 00 Peppers, 1 bushel, at l|I 1 00 Pease, 526 bushels, at $1 526 00 Pears, 4 bushels, at $3 12 00 Pork, 37,877 pounds, at 8 cents 3,030 16 Potatoes (Irish), 2U2 bushels, at 75 cents 219 00 Potatoes (sweet), 198 bushels, at 50 cents 99 00 Pumpkins, 8 cartloads, at $2 16 00 Quinces, 5 bushels, at $3 15 00 Kadish (horse), 138 pounds, at 8 cents 11 04 Radishes, 1,669 bunches, at 3 cents 50 07 Rhubarb, 315 bunches, at 3 cents 9 45 Raspberries, 225 quarts, at 20 cents 45 00 Strawberries, 2,690 quarts, at 12i cents 336 45 Spinach, 12 barrels, at $1 12 00 Squash (summer), 3,751, at 2 cents 75 02 Squash (turban), 2,985, at 3 cents 89 55 Turkeys, 16, at $1.50 24 00 Turnips, 170 bushels, at 50 cents 85 00 Turnips (greens), 35 barrels, at $1 35 00 Tomatoes, 696^ bushels, at 50 cents 348 25 Veal, 187 pounds, at 8 cents 14 96 24, 143 21 The following are the products that were consumed on the farm, and consequently are not a part of the profits. Corn fodder (green), 14 acres, at $35 Corn fodder (dry), 100 tons, at$12 1,200 Grass (green), 5 acres, at $30 150 Hay, 200 tons, at $17 3,400 Mangel-wurzel, 75 tons, at$15 - .-• 1,125 Rye (green), 5 acres, at $30 150 Straw (rye), 50 tons, at $15 750 Total 7,265 The season of 1881 was one of drought and discouragement to farpers throughout the country, and the hospital farm presented no exception to the general rule. The hay crop suffered least, but is somewhat reduced from that of the previous year. The grapes, our greatest luxury, were nearly ruined by a severe hail-storm. The late-cabbage crop was almost a failure ; what the drought spared the canker-worm took. On the other hand, the advantage of the new piggery is seen in the pork product, which shows an increase from 22,376 pounds in 1881, to 37,877 pounds in 1882.' With the immense amount of oiial which is necessarily produced, the raising of swine is perhaps the most profitable industry connected with the hospital farm. The milk product was 44,079 gallons. Until more stall room can be provided for neat cattle we must be content with this, although the hospital, with its considerable increase of in- mates, wUl soon require 200 gallons daily, and with proper accommoda- tions for stock the hospital farm could easily be made to produce that amount. The farm and garden have continued to furnish healthful employment to quite a number of the inmates, although the credit for this does not appear on the balance-sheet of the farm account. The estimates for the year ending June 30,1884, are as follows : 1. For the support, clothing and treatment in the Government Hos- pital for the Insane, of the Army, Navy, Marine Corps, the Kevenue Cutter Service, and the United States convict insane, also of all per-, REPORT OF THE SECRETARY OF THE INTERIOR. 787 sons ■who have become insane since their entry into the military or naval service of tlic United States, and of the indigent insane of the District of Columbia, $253,125. Under the recent legislation whereby provision has been made for the reception and care at the Government Hospital for the Insane of the insane from the Home for the Disabled Volunteer Soldiers, it is thought that the average number of the indigent insane of all classes to be provided for during the liscal year ending June liO, 1881, -svill not be less than 1,125. The expectation is that the number from the Sol- diers' Home will not exceed 150, and that the admissions from all sources will not greatly exceed those of the present year. Such calculations, from the natuie of the case, can be only approximations and may prove to be underestimates. The basis of estimated cost is $225 per annum for each patient, which includes all the expenditures of the hospital except those for special im- provements and repairs. For three years past Congress has provided for a portion of this expenditure in the bill for the expenses of the Dis- trict of Columbia. Following the ratio of increase of the appropriation under that head which has been adopted for those years, the amount in the District bill will be $4G,700, leaving $206,425 to be provided for as hitherto in the sundry civil bill. The provision that has been made forsome years past that not exceed- ing $1,000 of this appropriation may be expended in removing indigent patients to their homes is just, and so obviously in the line of economy that its continuance is recommended. 2. For general repairs and improvements, $10,000. This is the amount approi^riated for this purpose for the past two years, and, in view of the extent of the buildings and grounds, it is not too much to keep everything in good repair and maintain all departments of the hospital in efficient condition. 3. For special improvements, viz: Additional accommodations for stock and farm products ; detached kitchens and cooking apparatus ; cold grapery; forcing and green-house; replacing wooden with iron stairs; for furnishing new wards; in all, $27,500, It is believed that nothing has been asked under this head that is not absolutely needed for the most efficient conduct of the hospital. The question of more shelter for our neat stock and barn room for our farm products is an urgent one. Aside from nev/ structures for the swine, no farm buildings have been erected since 1874 ; the milk product of the farm for that year was 13,918 gallons. For the year ending June 30, 1882, it was 44,079 gallons. If we are to carry our milk su])i)ly nj) to 200 gallons a day, as we can, and as wo must if we are to allbrd an abundance of that form of nourishment, for which we have found no substitute in these enfeebled cases, broken down with disease, we must have some- thing besides shed room for our greatly increased herd. Nor is it econ- omy for the United States to yearly expose to the weather one hundred tons of hay in stacks when the expenditure of $5,000 would give us tho needed barn room and tool house. The increased nund)or of inmates renders the erection of detached buildings for the culinary department an absolute necessity. The free- dom from the odors of cooking throughout the building, and the al)senro of the tropic heat hitherto generated in the offices situated ilirectly over the i)resent kitchen, will be felt as a relief. The estimate for this, including the necessary aj^paratus for roasting, steaming, and otherwise preparing the food, $8,500. The sum of $3,000 for cold grapery, forcing and green house, is an ex- 788 PAPERS ACCOMPANYING Tin; pendituie that will add more to the beauty of the j^rouiid.s and the pleas- ure of the inmates than the sanje amount would yield in almost any other way. It is not alone an .'esthetic, but an economic provision to preserve and brinp: forward the budding- plants that brighten the gar- dens and lawns. It is not unmeet to plant flowers by the pathways of sorrow. In preparing the estimates for firewalls, for which an appropriation WHS made the present year, and wiiich walls are now in process of erec- tion, the item of $4,500, to replace the in'csent wooden stairways with lire-proof ones, was, unfortunately, overlooked. This is so obviously necessary to complete the protection against fire that it is now asked to be made immediately available. The i-emaining item of $0,000 is to ])rovide bedding and furniture for the new w'ards, which we confidently expect to have ready for occupa- tion by the fall of 1883. We have to acknowledge our renewed indebtedness to kind friends for assistance at our evening entertainments with music and dramatic representations ; to Professor Sousa and the Marine Band for agreeable out-door concerts ; to Miss Marsh for a fine bear cub, as the nucleus of a zoological garden ; to Colonel Casey and to thoughtful ladies who have sent us flowers and jdants for our wards, and to all who in one way and another have aided our work. Eev. J. S. Deale, D. D., after an acceptable service, having resigned his place as chaplain, IJev. C. Herbert Eichardson has been appointed to the vacancy. There have been no other changes in the staff of offi- cers during the year. IMuch of the continued usefulness and ijrosperity of the hospital has been due to the faithful service and enlarged experi- ence of these officers in the work of their choice. In hospital annals an uneventful is a successfal year. Again commending to the judicious liberality of the Nation's Con- gress this government hospital, which they have created and maintained for the wards of the nation. We are, very respectfully, your obedient servants, J. K. BAENES, President of Board of Visitors. W. W. GODDING, Secretary ex officio, Hon. H. M. Teller, Secretary of the Interior. EEPOET OF THE SUPEEINTENDENT HOT SPEINGS EESEli- YATION. Hot Springs, October 1, 1882. Sir: I have the honor to transmit my annual report for the year end- ing the 30th of June, 1882. My financial report was forwarded some time since, by which you will learn that my collections of water rent amounted to $3,535.61 ; ground rent, $1,000; disbursements, $1,066.91; deposited in the Merchants' National Bank, Little Eock, $3,468.70. I also inclose the report of J. L. Barnes, who has charge of the Mud- liole bath pool, by w^hich you will learn that 37,690 free baths were given during the year, and 6,313 paid baths. The amount collected for the paid baths is applied to defray the expenses of salaries of attend- ants and other necessary expenses, as you will see by the account ren- REPORT Ol' THE SECRETARV OP THE INTERIOR. T89 (lered. Martin Burrctt, who has t']!arj;;(.* of the free pools on the soiitli side of the inoimtain, ro])oits that there are at least KM) baths taken every day in the two ]kioIs for men and women. Since iny last annual report I have constructed, by order of the Sec- retary, another brick tank, in which the water of several of the elevated springs is conveyed by pipes. It stands on the side of the mountain above the Arlington ITotel. It holds I'O.OOO jjallons. Several bath- houses draw^ hot water from this tank. Capt. T. H. Haudbury, United States engineer, has completed the surva\v of the creek, and, I presume, has forwanled his rei)ort. I re- spectfully but most earnestly recommond that tin- portion of the creek from the forks down to the Arlington Hotel be imjiroved at once, as the street is dangerous and in places almost impassable. I suggest that Congress be asked to ai)[)ropriate a sulTicient amount to corai)lete the entire work as proposed by Ca])tain Handbury. I must again urge upon the Secretary the policy, and, indeed, the ne- cessity of giving the Federal court jurisdiction over this reservation* The local magistrates are elected by popular vote. The gamblers, fakirs, robbers, and bummers cojistitute a large element of the voting l)opulatiou, and consequently the local magistrates, in many instances, are in sympathy with them, if not of the same character. Therefore it is almost an impossibility to convict this clnss of trespassers upon the reservation. If the authority was given to the l-'ederal court I would have little trouble, as this class of men have, as indeed most of the peo- ple of the South, a very healthy fear of the L'nited States court. By direction of the Secretary, I selected one hundred lots on the orig- inal reservation, which were sold at Little Rock by the land oflieers in Julj'. As I predicted in my report to the Secretary, the lots sold for prices largely over the valuation by the late commissioners, and would have brought much more had it not been for a combination formeil on the last day of the sale, by which no bids above the valuation were to be made. I therefore recommend that no more of public lots be sold at present. The town is rapidly improving and the remaining lots will steadily increase in value. The number of guests and patients is constantly increasing from ye;ir to year, as the marvelous eftect of these water's becomes known through- out the country. Tiie bath-houses on the reservation are elegant structures; handsomely and conveniently furnished, atlbrding every l)0ssible facility to the bathers. The hotels and boarding-honses are in- creasing, and are am])le to meet the wants of the guests, and at i)rices within the means of all classes. The wisdom of tin; government in re- taining the control of this reservation and tlicse wonderful wat<»rs, is manifested daily. Its ])olicy not only atlbrds elegant and delightful fa- cilities ibr bathing to the wealthy and well-to-do peoi)le, but it furnishes to the afllicted poor, who come here from all parts of the country, the benefit of these waters without money and without price. Very respectfully, B. F. KKLLEY, tSu2>nin(cndent. Hon. H. M. Teller, Seaelanj of the Interior. 790 TAPERS ACCOMPANYING THE REPORT OF THE SUPEliIi\TI0NJ)Ej^TOE TJIE YELLOWSTONE NATIONAL PARK. Headquarters Yellowstone National Park, Mammoth Hot Springs, Wyo., December 1, 1882. Sir: I have the honor to submit the following as my animal report: 1 arrived in the Park on the 22(1 day of May, coming- in by the Union Pacific Railroad from Omaha to Ogden, thence by the Utaii Northern Railroad to Dillon, thence by stage to Virginia City, Mont. From there I was obliged to take private conveyance up the valley of the Madison River to its head in the great Fire-Hole Basin, a distance from Virginia City of 115 miles. After remaining there at the Marshall House two days, Mr. Marshall, with Mr. George Graham (a blacksmith, whom I had hired at Virginia City for the season), my son, and myself, set out on horseback for the Mammoth Hot Springs, the official headquarters of the Park, a distance of 50 miles over the mountains. It was a severe and perilous journey, on account of the snow and the swollen rivers and mountain streams that lay across our way. However, thanks to the experience and indomitable courage of my guides and the endurance of our faithful horses, we all reached headquarters in safety the second day out, a little before midnight. On reaching the house all w^as dark and silent, but we soon made our- selves heard. A light gleamed through the windows, the door was thrown open, and wo were invited in by Mr. Stephens, the superintend- ent in charge, with a generous cordiality seldom found elsewhere than in these mountains. After spending a day or two at headquarters, and advising with Mr. Stephens, I started with two teams for Bozeman, Mont., our nearest nmr- ket town (from this point 80 miles distant), to purchase us supplies and tools, hire a crew of men, and prepare for the season's campaign. The road was in a horrible condition, consequently we could haul but light loads, yet we succeeded in landing sufficient supplies to last until better roads. We also hired a small crew of men which we set at work on the 5tli of June, at the north side of the Park, near the Yellowstone River, at the foot of McCartney's hill. We also employed a carpenter and a ma- son, and set about repairing the headquarter's house, which we found to be in a sadly dilapidated condition, and hardly habitable for a white man. Our mason first burned a small limekiln, and then pointed the house from the ground to the roof, inside and out, and whitewashed the wall through all of the inside until it was white as snow, thereby de- stroying the vermin that infested the premises in such vast numbers that no person with a cuticle less sensitive than that of a rhinoceros could live in them through the summer mouths. Meantime our carpen- ter was at work repairing the doors, windows, roof, and other parts of the building, putting up ceiling overhead with cotton cloth, for want of lumber; making domestic furniture, such as tables, bedsteads, and set- tees; the latter we covered with calico, making a convenient seat for the numerous callers that have visited us the past summer. So we can now say that the government buildings here are in a state of preserva- tion, and comfortable, if not elegant. Simultaneously with commencing work on this side of the Park, I had taken steps to organize and equi]) another party to begin work at Riverside, on the Madison River, near the west line of the Park, and near the point where the travel from Virginia City and a place on the REPORT OP THE SECRETARY OF THE INTERIOR. 791 Utah Northern Eailroad called Beaver Canon unite, and i)roceed to- gether to the central attraction, the Fire-Hole Basin and the prcat geysers. Here I found it necessary to do some heavy grading. Here- tofore the travel had been forced i)rincii)ally to reach the Fire-Hole Basin by following the river through a difiicult and rough canon, involv- ing the fording of the stream five times in the short distance of about 10 miles. The ]\[adison River at this point is a broad and rapid stream, and except in time of low water these crosshigs are both difficult and dangerous. A good road, however, can be made through this canon when the government will supply the money. I estimate that it will cost not less than $15,000 to bridge and grade about 20 miles of this route. Under these <;ircumstanc('S there seemed to me nothing left us but to try and scale the mighty mountains and hills that lie along the Madison, and between us and our objective point. The Fire-Hole Basin work was begun here on the 8th of June, and after six weeks of hard digging, plowing, and scraping, the summit was attained, leaving behind us a road and grade up which our four-mule team has hauled repeatedly a load of freight weighing over 2,500 pounds. This party, headed by Mr. George Graham and my son, G. ^f. Conger (when not engaged in doing blacksmith work or hunting), proceeded on the road towards the Fire-Hole, removing the stumps and rocks from the path, putting in culverts and cross-ways or bridges over mirey ground and deep gulleys, until they reached the big hills on the verge of the basin, where another long and heavy grade had to be made to let us down to a level with the Fire-Hole River at Marshall Hotel. In the meantime the jiarty commencing work at ^McCartney's hill had been recruited to about a dozen men, and placed under the command of Capt. E. S. Topping. They worked up from McCartney's, making an excellent road, considering the high and rough character of the ground over which the road lies. Thence they pushed on over the immense mountains which surround the valley of the Gardiner River at this place, doing all that could be done to render passable the road out over this range, until a level plateau is reached, over which our May i)asses for a distance of about 8 miles, bringing us to the main brancli of the Gardiner River, and about 12 miles from headquarters. Here we found it necessary to construct a bridge, as the river is deep and rapid, and an attempt to ford it, except at low water, is attended with great diffi- culty and danger. Indeed, a party of tourists went into camp for a week here, waiting for a decline of the water before venturing to cross. My assistant, Mr, G. L. Henderson, went with mo out to the river, and, after a carefiU examination of the same for a mile or two, up and down, we agreed upon the most eligible point to locate the bridge, and upon the plan of its construction. Captain Topping and his men look hold of the work in earnest, and in less than two weeks they had linished a substantial structure across the river that we think retlects credit upon its builders. The bridge is built with abutments on each shore, well out into the river. The abutments are maments or otherwise. The cover of the. bridge is 90 feet long. Up to this time it was the custom of ^Ir. Hen- derson or myself to be on the ground daily with the men; and, iudeetl, during the whole season one or both of us has been in the Held nearly all of the time. 792 PAPERS ACCOMPANYING THE After tlic bridge was linislied, the ca}>tain, witli liis party, pushed on south toward the Fire-llole Basin, that being the gi'and center towards which both parties were aiming. Our route now runs up the Willow Creek to near the great obsidian or gUiss mountain, which is a marvel- ous thing in nature and well worth the journey to see. There was con- siderable work on this part of the road in taking out rocks in the path, an(J building and repairing culverts and cross- ways. After passing the glass mountain we soon come upon high hills and rough country, requiring a great amount of labor to render the road passable. We are now leaving the waters that flow into the Gardiner Eiver, and are climbing the mountains that separate the Gardiner from the Gibbon Eiver. About here we pass a beautiful lake, called Lake of the Woods. I do not know what the altitude is at this iK)int, but it cannot be less than 7,500 feet above sea level. From thence we worked our way over a rough and hilly country to the Gibbon Basin, where the traveler is startled by his first sight of this wonderful Fire-Hole. Standing on the eminence that surrounds and overlooks this basin, with its thousand columns of hissing steam rising to the clouds, and its hundred spouting and boiling springs, all in active operation, hurling their heated waters high into the air, he sees a sight so novel and so sublime as to daze the beholder and fill him with awe. In this basin are several large geysers and a great num- ber of lesser ones. We have now reached a point 30 miles nearly south of headquarters, or the Mammoth Hot Springs, and about 35 miles from the north line of the Park. It is yet 20 miles to the great Fire-Hole Basin. Our road is still in a mountainous and rugged country, requiring much labor and expense before it can be said to be a good road. Still we pushed on ; but owing to the limited amount of the appropriation (and when you consider the extent of the territory and the great natural obstructions that have to be encountered, it seems to me it must be evident to you that the amount heretofore placed at the disposal of the Secretary of the Interior "for the protection and im- provement of the Yellowstone National Park" Is entirely inadequate) we are obliged to content ourselves by making such roads and improve- ments only as will render travel possible. But to proceed with our road : we have to pass over some very high hills to reach the valley of the main Gibbon, where we encounter a wide, low bottom called the Geyser Meadows, a place where it will require a large amount of labor to make a good road. After passing this meadow our road enters the Gibbon Canon, and follows the river down several miles, close on the edge of the stream, crossing the same three times in as many miles over difficult and dangerous crossings in time of high water. After passing through this caiion our road gains the highlands by a steep grade along the side of the mountain on the south side of the river. We soon come to the great falls of the Gibbon, where the river plunges over a perpendicular precipice of 75 feet, which in the stillness of the evergreen forest that covers this country renders the scene as enchantingly beautiful as "fairy-land." We are now within 10 miles of our objective point, viz, the Lower Fire-Hole Basin ; and as the character of the country differs little from that over which we have passed, I need not particularize further than to mention that we made two quite important grades on the way, changing the road from the old track, and materially lessening the difificulties over two high and rugged hULs. At last, through much tribulation, we have arrived at the head of the Madison Eiver, which is formed by the junction of the two Fire-Hole RKPOR'I' OP THE SECRKTARV OF THK INTERIOR. 793 Kivers at the iiortberu edge of the Lower Fire-J lole Dasiii. Wlien I tell you that at this point the ^fadison IJiver is a dee;) and rapid Htieam, nearly or quite 200 feet in m idth, you will lune sonir conceiition ol" the immense How of boiling hot water that conies out of tlie earth within less than 15 miles of this point, and forms the two Fire-Hole Eivers Avhich here unite. My working force (both parties) were now here, and I found it an imperative necessity to build a storehouse and bhicksmith shop in order properly to care for our i)rovisions and snpi)lies. the government having no building nearer than our headquarters, ")(> miles distant. Be- sides, this point is the gi^and cent«^r of attraction, and a place to which every tourist who visits the Park is certain to conu'. Om? other reason why I selected this site for a storehouse was, on account of its central position working parties can be supplied from this depot in one day from almost any part of the Park. xVfter having resolved to build, and decided upon the size and style of the buildings requirccl^ I dratted the plans and set part of the men to getting out tlie timber for the proposed buildings. The rest of the men, under Captain Topping, continued work on the road. I directed them first to go over the road to the Yellowstone I^ake, a distance of 35 miles from this point, and put the same in good repair, and then turned their attention toward the Great Falls and the Grand Canon of the Yellowstone, about 20 miles below the lake. The work was comparatively light on the road from the Fire-Hole t<) the lake ; but when we neared the falls and canon I found it necessary to cut a new road along the bank of the river for over three miles to enable tourists to ride to the falls. Heretofore they have been compelled to abandon their carriages, and climb almost imjjassable mountains on the back of a pony or on foot. This road along the river was a difficult and costly piece to build, requiring heavy excavation along the side of the steep mountain for nearly the whole distance. But it is finished, and we have received the commendation and thanks of every jierson who has i)assed over the road, ibr having built it. Meantime our buildings are i)rogressing at the Fire-Hole Basin, the place we now call our summer headfpiarters. The government store- house here in dimensions is .'U by 22 feet, built of hewn logs, substan- tially and neatly put up, one story high, with solid log partition framed into the structure, making two rooms in the building. One room is floored with hewn logs, 5 inches thick, neatly fitted together, for the storage of provisions ; this heavy i)artition and floor being necessary to protect our sui)])lies from the ravages of the mountain rats and scpiin-els that here abound. The other room is not yet floored, as we have no lumber except what we manufacture with an ax ; but by putting in an old cooking stove, which 1 was fortunate enough to obtain here, it makes a very convenient and comfortal)le j)lace foi' us when at work in this vicinfty, besides being a great accommodation to tourists who desire to leave a ])ortion of their luggage while they visit the lake, the Grand Canon, and the Great Falls of the Yellowstone. We have a strong door on the storeroom, and one window in the same; also an outside door, and two winplied by the Wa.shington Gas Light Company is not entirely a jiroduct Uoxn coal; tln-y use naphtha as an enricher. This hyilrocarbon is convertetl into a lixed gas, and then united with the gas obtained from coal. This combinatjou of the gases from coal and naphtha yields au illu- 79C PAPERS ACCOMPANYING TRK minatinft- gas oi' high Kpeciiic gravity. On 80ine occasions complaints were made of its giving off smoke; this nuisance will 'arise, however, from several causes, such as a scant or inadequate supply, imperfect or unsuitable burners, and deficient i)ressure. If the supply of gas and the pressure be not ample to give a perfect shai)e or form to flat-flame burners, smoke and unpleasant odors pro- duced by imperfect combustion must be the result. The gas supplied by the Georgetown Gas Light Company is manu- factured entirely from coal, Pennsylvania and West Virginia coals being Tised, with from 10 to 15 per cent, of Cannelton cannel coal as an en- richer. The inspection of this gas since October, 1881, has been made at the laboratory located on High street, the distance from the gas works by company's mains being about 2,400 feet. Testing the illuminating power of the gas at this point affords a more satisfactory average of quality than when inspected at laboratory ad- joining the company's manufacturing department. The illuminating power and purity of the gas supplied by the Wash- ington Gas Light Company from June 24, 1881, to June 23, 1882, was as follows : Average illuminating power during tlie year - candles-. IG. 87 Highest illuminating power during the year do ... - 18. 5;' Lowest illuminating power during the year do 14. 41> Average quantity of ammonia in 100 cubic feet during the year grains.. 1. 92 Highest quantity of ammonia in 100 cubic feet during the year do 7.52 Lowest quantity of ammonia in 100 cubic feet diu-ing the year do 61 Average quantity of sulphur in 100 cubic feet during the year.... do 11.60 Highest quantity of sulphur in 100 cubic feet during the year do.... 54.80 Lowest quantity of sulphur in 100 cubic feet during the year do 5. 13 Specific gravity. — Average specific gravity, .491 ; air, 1.000 ; highest, .591 ; lowest, .425. On eighteen occasions during the past year the gas supplied by the Washington Gas Light Company was of less illuminating power than sixteen candles, as follows : Candles. July 6 15.71 July 18 15.6ii .July 19 15.86 September 27 15.82 October 22 15.70 October 24 15.97 December 5 1.5.95 December 6 15.74 December 7 ^ 15. 9'.i .Ijinuary 31 - 15. 82 February 1 15. 4() March 23 15.93 March 30 15.99 April '28 15.81 Mav5 14.98 June2 15,95 June 3 15.66 June 5 14.49 On twelve occasions the gas of this company contained a slight excess of ammonia over the 5 grains allowed in each 100 cubic feet : GralDs. October29 6.07 October 31 _ 5.86 November 1 , 7. .52 Novemljer 2 > 6. 5)=! November 3 w_ 5-22 November 10... -v. 5.27 REPORT OF THE SECRETARY OF THE INTERIOR. 797 GtaiDs. November 11 ij. 1"J December 20 T). 01 December 21 »>. 0:> December 23 .'». 7:5 December 24 r>. 27 June 23 5. lU On five occasions the gas supplied by this company contained an ex- cess of sulphur over the 20 grains allowed in each 100 cubic feet : (il'uius. January 5 54.60 February 11 2t).tn March 1 20.37 March2 20.07 Marcb3 22. GG The illuminating power ami purity of tlie gas supplied by the George- town Gas Light Company from Juno 24, 1881, to Juno 23, 1882, wajs as follows : Average illuuilnatLaj^ power dmiuy the year canillo.s. Highest illuminating power during the year do... Lowest illuminating power during the year do... Average quantity of ammonia in ICO cubic feet during the year grains. Highest quantity of ammonia in 100 cubic feet during the year . 9H October 1 15.73 Octobers - 15. (W October 6 15.14 November 1 15. 13 November 11 15.82 November 14 , 15.23 November 15 15.03 December 5 1.5. 01 December 7 15.5.5 December M 15.76 Deceml)t!r'J 15.91 December 31 15. :ft> February 8 14.:t7 February 23 15. IH March 4 1 15. IH April 7 14.77 April 12 14.;iO May 24 15. 7.'< J nne 6 15. '.M> Juno 7 1.'). (Kl Juno 9 15. (».; June 19 H.91 June 22 15.1'! June 2;} 15.90 798 REPORT OF THE SECRETARY OF THE INTERIOR. Ou twelve occasions the gas supplied by this company contained an excess of ammonia over the 5 grains allowed in each 100 cubic feet. Grains. July 11 6.20 Jnlyl'i 6.20 July i:? '. 8.92 July 14 8.92 July 15 7.85 JulV 16 7.85 July 18 5.32 July 19 o 5.32 August 12 , 5.84 August 13 8.84 August. 15 - 5.35 August 16 - 5.35 ESrSPECTION OF METERS. One thousand four hundred and twenty meters were inspected and proved by this office during the fiscal year ending June 30, 1882. With the exception of two meters inspected and proved for the Alexandria Gas Light Company, the above number were inspected and proved for the Washington and Georgetown Gas Light Companies and for con- sumers of gas. The results of inspection were as follows: 33 registered fast against the consumers, average error 3.56 per cent. ; 117 registered slow against the companies, average error 7.21 per cent. ; 1,210 registered within the limits allowed by law, namely, 2 per cent, either way, and were sealed and returned to the companies for service; 51 did not register the gas flowing through them, and one was locked so no inspection could be made. Two hundred and twenty of the above-mentioned meters were in- spected and proved on complaint j 55 were complained of by consumers of gas; 17 registered fast, average error 4.16 per cent.; 13 registered slow, average error 3.96 per cent. ; 25 registered within the limits al- lowed by law; 165 were complained of by the gas companies; 3 regis- tered fast, average error 4.28 per cent.; 91 registered slow, average error 10.86 per cent. ; 19 registered within the limits allowed bylaw; 51 did not register, and 1 was locked. I respectfully recommend that the act of Congress regulating gas- works, approved June 23, 1874, be modified so as to require, when for any purpose whatever the heads of meters that have been inspected,' proved, and sealed are removed by the gas companies, meters of this description should be classed as repaired meters, and brought to this office for reinspection before again being placed in service. The seal of the inspector is the evidence that the meter has been properly tested and proven as required by law. To admit the right of the comj)anies to remove the head of a sealed meter and rectify whatever is wrong, and return meter to ser\'ice with- out reinspection and sealing, would be to render the law practically inoperative, by making uncertain, if not impossible, the protection se- cured through inspection and sealing by the office created for that pur- pose. S. CALVERT FORD, Insjyector of Gas and Meters. REPORT OF THE POSTMASTEE-GENEEAL. Post-Office Department, Washingt07i, D. C, November 18, 1882. Sir : T hare the honor to submit herewith a report of the operations of this department for the fiscal year which ended ou the 3Uth of June, 1882 : FINANCIAL STATE3IENT. The total disbursements for postal service durmg the year were 140,482,021 23 The ordinary receipts were 41, 515, ft42 80 The receipts from money orders were 360, 767 35 Total 41,876,410 15 Excess of receipts over expenditures was 1, 3M, 388 92 For the first time in thirty-one years the postal service is not a burden upon the Treasury. In order to determine the real cost of the postal service for the past year, three important modifications of the foregoing figures should be made: First. There should be deducted from the total disbursements the sum of $142,380.48 ; which, though paid out during the last year, was for service rendered during previous years, and was an outstanding liability on the 30th of June, 1881. Second. There should be adrPE^-SATIO^• of post^iasters is largely in. excess of the sum appropriated or asked for the same pur- pose during the current year. The reason assigned ft)r that is that the sum approi)riated for the current year is wholly inadetpiatc. That is obvious. The sum was not equal to the compensation of postmasters for %]^e past year. Of course it is yet more unequal to the i>ay of the postmasters for the current year, and still more inadfMiuato to their pay for the next year. Another reason quite as cogent maybe stated: Whatever maybe the sum put iu.to the annual appropriation bills for the pay of i)0straa6t- ers, the fact remains that under existing laws that exjxMiditiU'o is not restricted by such bills. The pay of postmasters is limited, not by ap- propriiation bills, but by fixed statutes; and to the extent of their legal compensation, the gross revenues of the postal service are not only ap- propriated but hypothecated to their payment. Appropriations are necessary to get money out of the Treasury, but the salaries of postmasters never get into the Treasury. Postmasters collect the postal revenues, and they are authorize*! by law to deduct from the moneys in their hands their legal compensation. They account to the Treasury for the excess only. If not a dollar is a impropriated in the annual bill, postmasters will receive their salaries all the same. It seems hardly iiracticable, therefore, to effect much in the int-erest of economy by appropriating 88,000,000 to pay postmasters, while we place $10,000,000 in their hands out of which they may help themselves to the full extent of their legal dues. From the report of the First xVssistant Postmaster-General the fol- lowing statistics are gleaned, which aiford a partial view of the work performed under the direction of that otlicer: POST-OFFICES ESTABLISHED AND POSTMASTERS APPOINTED. Number of post-otliccacstablishoJ during tho year .^, ICfi Number diHCuutiuued 1,447 Increase 1.71'J Number in opfnitiou Juno 30, liSl , 44, .'.I'J Nuinbfrin np<:-ratii)D June 30. 18?3 40, -jai Nmnber tilled under appointniont bytho rrosidont 1, B.'il Number filled under appointment bj- tho Pof!, 887 387, 4.55 |2, 623, 202. 74 2.3 $835. 75 $3, 816, 570. 09 $1, 193, 313. 35 Increase over last year. 3 254 35, 841. 071 11,. 513. 183 13, 269, 109 7, 025, 506 420, 585 14,377,5'.t2 23, 592, 874 13, 628. 007 7, 047. 338 127,321.325 11.519 $123,351.20 10. I f$37.79 :$542. 945. 70 $419,594.50 P«re«at. of increase. 2.79 8.83 13.60 19. 20 17.28 16.04 20.06 9.82 8.28 15.88 14.14 1-2.53 3.33 4.93 to. 4 f4. 3-J {16.58 54. 23 * Based on the aggregate ($2, 617, 574.. 56) paid carriers, includinj; incidental expenses at the several offices, less $5,688.18 paid post-ottice inspectors, t Decrease. ; Increase. [For detailed statement of the operations of the service during the year, see table C, page 42.] BIENNIAX ADJUSTMENT OF SALARIES OF P0ST31ASTERS. During this year the regular biennial adjustment of 2,012 presidential postinaster.s' salaries was made; an increase cfH 218, or It per cent., aa couipared with the previous adjustment. The returns, coming from all parts of the Uuii)n, show a very gratify- ing and grneral increase of business; and the sum necessary to pay the increased .salaries of postmasters, including 335 special adjustments, amounts to $503,400, or 18.14 per cent, more than last year. BOX RENTS. A system of recording the number of boxes rented at the first and second class offices has been inaugurated since the beginning of the present fiscal year. Heretofore the matter of renting boxes has been treated by postmasters with less importance than in my judgment it de- serves. Under the present system, furnishing a receipt to each person who rents a box, a duplicate of which is kept by the postmaster as a stub in the book supplied for that purjiose, a better service has been secured in this branch of the postal business. 804 REPORT OF THE POSTMASTER-GENERAL. LEASES. Special attention of late having been given to securing suitable ac- commodations for the post-offices whose class entitles them to proper consideration, it is gratifying to state that, at many offices where the business has heretofore been conducted in buildings unsuitable, by rea- son of defective facilities, improper location, &c., suitiablo premises now have been sCcured, under leases, including in many instances complete outfits of boxes, furniture, fixtures, &c., at what are regarded as reason- able rentals. ADDITIONAL FACILITIES FOR FOURTH-CLASS POST-OFFICES. Provision having been made by Congress for supplying all post- offices, the gross receipts of which are less than fifty dollars per annum, with letter-balances, marking-stamps, ink, and pads, it is expected that more than 7,000 offices will be thus supplied during the presect fiscal year ; thereby enabling the postmasters at these offices to make up and dispatch mails with more accuracy and a gTeater saving to the gov- ernment in the matter of cancellation of stamps. I quite concur in the recommendation of the First Assistant Post- master-General for the reformation and augmentation of that division of the service known as the Blank Agency. REORGANIZATION OF THE BUREAU OF THE FIRST ASSISTANT POST MASTER- GENERAL. Still more cordially do I recommend the suggestions of that officer as to the general reorganization of his office. Briefly stated, his argu- ment is, that whenever a given amount of work is to be done it is wiser to employ the requisite force, place it under the control of one man, and hold him singly responsible for doing the work, than to divide the responsibility equally among the individual members of the corps. The soundness of that argument is approved by reason ; it is at- tested by the general practice of the government, and by the uniform observance of all great private enterprises. PURCHASE OF STATIONERY. I do not doubt that a substantial saving of expenditure would follow the adoption of the First Assistant Postmaster-General's suggestion, that all stationery to be used in first and second class offices should be j)urchased by his office and issued upon requisition, instead of being purchased as now by the several postmasters, and having their pur- chases audited in his office. Stationery required for the money-order business is now, in fact, purchased by the superintendent of that serv- ice, and issued to the several postmasters. It does not seem quite logi- cal to employ two different methods for supi^lying the same office with a single article. REPORT OP THE POSTMASTER-GENERAL. 805 SALARIES OF AIO) ALLOWANCES TO POSTilASTEES. The very able report of the First Assistant Postmaster-Geuera4 calls attention to the great difficulty experienced in adjusting salaries to postmasters of the first three classes, and in making allowances for ofiBce expenses to those of the first two classes. He does not exaggerate those ditiiculties. It may well be doubted if he could exaggerate them. It would be easy to frame a law more un- just than that under which the salaries of postmasters are now settled, but it is quite unnecessary to do so — the existing law is sufficiently unjust.. But necessity herself, though admitted to be the mother of invention, could not invent a more cumbrous or complex method of adjusting salaries. Postniasfiers at the smallest offices are paid alike. Their pay is apportioned in part upon the revenues of their offices, and in part according to the labor performed in them. So far as revenue is derived from the rent of boxes, postmasters take the whole. So far as it is derived from the sale of "waste paper, dead newspapers, printed matter, and twine," they receive GO per cent. So far as it is derived from the sale of money orders, they receive one-third. So far as it is derived from the sale of stamps, envelopes, and postal cards, they re- ceive nothing. They may sell tliousands in value, but they get no share of the proceeds. If, however, they cancel a stamp on matter mailed at their offices, no matter where the stamp is sold, they get CO per cent, of its value. If they pay a money order they receive a quarter of one per cent, of its amount. This rule is sufficiently cumbrous, but sufficiently equal. Postmas- ters continue to be so paid until their sales aud cancellations, exclusive of money orders, reach $400 per year. At that point a new rule is intro- duced. They still get the whole of the box rents, they still get the same commission on the sale and payment of money orders; but, upon the proceeds from the sale of waste paper, dead newsi)apers, printed matter, and" twine, and upon the cancell.ationof stamps, they get 50 per cent, instead of 00, on the excess over 8 iOO. This new rule controls until such sales and cancellations, exclusive of money orders, reach $l,liOO a year. Then a new rule obtains. It is difficult to see why, but thereafter, on the surplus received from the sales of waste i)ai)cr, dead newspapers, i)rintcd matter, and twine, the postmaster receives not GO i)er cent., nor 50 per cent., but 40 per cent., and the same percentage on the value of stamps canceled. When, however, the box rents and these various commissions, ex- clusive of the money-order business, shall aggregate 81,000, the office is advanced from the fourth to the third class. Then there is a new and most curious rule for compensation. Then the jjostmaster receives a salary in lieu of the box rents and commissions before assigned to him. To determine the amount of the salary in a given case, a fund is set apart. That fund is composed of all the box rents, if the postmaster owns the boxes aud the rents do not exceed $1,350 per annum. ^ It is 806 REPORT OP THE POSTMASTER-GENERAL. com loosed of two-thirds of the box rents, if the government owns tlie boxe^ and the rents do not exceed $1,000. To tliose sums, respectively, is added conunissious on all other postal revenues of the oflice in 'all Kiver, Masa Lowell, Mass Broolilyn. N. T Buffalo. N.Y AtlanUt, Ga Savannah, Ga Boston, Alass ,.,. Pbiladelpbia, Pa Average per cent. $3,200 2, 700 3,000 3,000 4,000 3,300 3.100 3,200 3,000 3,000 3,000 3,000 4,000 3,700 3, 000 3,000 4,000 4,000 Allowances. $2,500 2,000 (*) 900 768 3,000 3 600 (*) 1,500 1,800 (•) 2.000 7.300 2,000 (H $270 500 (*) 75 90 425 C) (') 270 113 (*) 72 270 (*) $315 500 (*) 400 157 148 C) (*) 300 200 (*) 198 1,103 (*) 392 C'j8 12,016 229 436 $21, 124 17. 700 11,500 9,100 144.200 21. 400 18. 244 20, 000 0.500 5,500 4,000 5.700 50. 9C4 30. 500 12, 300 9,600 258, .V>0 241, 735 $237 10 122 30 IK 55 79 80 2, 001 60 312 06 354 95 168 47 219 65 63 65 48 00 724 93 298 21 3.'3 15 203 33 5, 109 39 3.549 90 $708 65 130 25 lf(7 40 la'. 01 1,510 70 746 39 CS4 47 89 17 92 30 124 60 50 25 1,336 69 2.V) 96 (i9 28 274 00 7, 4aO 19 5, 909 37 So . Ceo o $137, 4<<9 4"., USA T.'.. 092 41.G(H 7.'^. 013 162, 503 11}<,728 1S9, 120 05,937 40, 491 29,440 &(,045 279, 489 260, 898 92. 024 63,905 1,371,419 1, 450, 145 -«i: el's g h U ],';.4— 26.2— 1"..3— 2L7— 19. 2— 13.2— 1.1. 4— 14.4— lo.o- 13.6— 13. C— 9.0— 18 2— 11.6— 13.3— l.S.O— 19.9— 16.0— 15.59 'Govemuiunt building. |IIeating included. In that list of eiglitccu offices the expenditure for clerk hire varie.'^ from 9 to 2G.2 per cent, of the gross revenues. There is a dillerence of 3.0 per cent, between two offices in Illinois, of 4.0 per cent, between two in iMassachusetts, of G percent, between two in Missouri, of (5.4 ]wv cent, between two in Texas, of G.G per cent, between two in Xt-w York, and of 10.8 per cent, between two offices in Colorado. If the office at Bo.ston could be administered by the expenditure ot" the same i)ercentage of gross revenues for clerk hire which is sjjent at Philadelphia, it would effect a saving of $45,250.82 at that office. If both offices could be administered for the average expenditure made .it the whole eighteen, the saving wouhl l)o nearly $7.'J,50(), Jf the whole eighteen offices coulil be ailministered by the expenditure of 1) per cent, of the gross revenue for clerks, which is the cost at Lowell, the saving ■would be very great. 808 RErORT OF THE POSTMASTER-GENERAL. t cannot lielp thinking it wholly practicable greatly to simplify and equalize these disbursements. In the first place, I do not think an allowance for office rent should be made ta*the postmaster in any case. Such an allowance holds out a double temptation to tlie postmaster : He is tempted to get large allowances from the department, and to supply cheap accommodations to the i)ublic. It will be my purpose to rent, as early as practicable, every building required for first and second class offices which the government does not own. There are now 587 offices belonging to those two classes. Eighty-eight belong to the government; 269 are leased to the gov- ernment ; and 230 are supplied by postmasters, who are in turn com- pensated by allowances. "Wherever the department rents an office, it will be its fault if a suit- able one is not provided, and its fault also if the terms are not as favor- able as the place will afford. Secondly, I think every post-office that is rented by the department should have a suitable equipment of boxes and drawers supplied, not by the postmaster, but by the department or the lessor of the building. Of 499 buildings now rented, only 149 are equipped with boxes by the department. The charge to patrons for the use of boxes should be reasonable, and should be uniform. At present they are neither. These reforms can be effected without the aid of further legislation. I venture to suggest, however, some reforms much needed, and which, if approved^ will require ah amendment of existing laws. The partnershii) now existing between the government and the post- master in the use of letter-boxes should be dissolved. Whenever the government owns the boxes, or hires them with the building, the whole of the rental paid by patrons, and not two-thirds of it, belongs to the revenues of the department as much as the postage does. Where, on the contrary, the postmaster supplies the boxes and the government does not, the latter should no more share in the proceeds from their rent than in the rent of any other property belonging to the officer. In all cases, therefore, in adjusting the pay of postmasters, I think box rents should be wholly eliminated from the calculation; and I am strongly in- clined to the opinion that the whole system of regulating the compensa- tion of postmasters should be radically changed. I know of but two reasons for paying postmasters at all: One is, he incurs responsibility; and the other, he performs labor. Both the responsibility and the labor are accurately measured by the business transacted at the se^'eral offices. The business transacted at each office is measured with sufficient accu- racy by its revenues. The two marked, exceptions to this rule are the offices at New York and at Washington. The former office should be ex- cepted because of the large amount of foreign mail handled at that office. The whole number of foreign letters estimated to be received in a single year at Baltimore, Boston, Chicago, Key West, IS ew Orleans, New York, Philadelphia, and San Francisco was 15,809,021. The number of foreign REPORT OP THE POSTMASTER-GENERAL, 809 postal cards was 177,245. The whole number of other arricles received from foreign countries, 14,346,748. Of these aggregates, 13,074,102 letters, 130,100 postal cards, and 12,892,218 other articles were treated in the office at New York. The office at Washington should be excepted, because of the large percentage of matter handled there emanating from Congress or from the departments, and which yiehls no revenue to the office. It is esti- mated that not less than 70 per cent, of all the matter mailed at that office emanates from those two sources. For those two offices special provision must probably be made. But, with the exception of those two offices, it may well be doubted if there Ls another postmaster in the United Stiites holding a lirst or second class office who would not be glad to administer it, furnishing liis own help, fuel, light, and stationery, for a sum considerably less than the allowances now made for all those purposes added to his salary. If it is worth 60 per cent, to collect the tirst $400 of postal revenue at a given office, I do not see why it is not worth the same percentage to collect the second, or any subsequent sum equal in amount. On the contrary, if 8400 can be collected at a cost of 30 per cent, after .x2,(»00 hav*- been collected at the same office, I do not see why a larger percentage should be paid for collecting the first '^2,000. If there are offices from which the revenues are so small, that iio citi- zen will be troubled with its duties for a share of its commissions, it may be expedient to release the whole revenue to the postmaster up to a given point; but when that point is reached and the proper retainer is i)aid and commissions commence, it seems to me that one rate of com- missions should be paid to all postmasters who find tlieir own offices. Another and smaller rate should be i)aid to such as occui)y offices rented by the government, but are warmed and lighted by the i)ostmasters; while another and somewhat smaller rate still should be paid to i>ost- masters who occupy public buildings warmed and lighted by the gov- eniment, with special provisions made for the offices at New York and Washington. AVhat these several commissions should be could not be safely deter- mined until after a thorough inquiry, prosecuted by a Judicious commit- tee, under legislative authority. Onee ascertained, I believe many thousands of officeholders, including postmasters and clerks, would be transmuted into laborers. Clerks would be selected more with reference to what they could do bebin»l the cases and Icsss for what they had done at the hustings. Post-offices would more resemble workshops and less almshouses. They would be administered with less cost to the govern- ment and more protit to the incumbent. Such an inquiry I earnestly commend to the consideration of Congress JAR TRA>SPORTATIOi.'. The report of the Second Assistant Postnuistfer-General gives a clear and comprehensive exhibit of the management of the star service for 810 REPORT OF THE POSTMASTER-GENERAL. the fiscal year just closed. It will bo noticed tliat tlie broad purpose of providing adequate i)Ostal facilities for all communities, witliout regard to geographical location, is made the first and leading consideration in the arrangement of the service ; and to secure that result without an improvident expenditure of means is the second consideration. The department is clothed with the widest discretion in regard to the amount of service to be performed on star routes. To provide all needed postal facilities, and at the same time to guard against unnecessary ex- l)enditure, is a most difficult duty, and one that calls for the exercise of unusual care and patient inquiry. The results given in the report aiford gratifying evidence that during the last fiscal year that delicate duty has been very satisfactorily discharged. The aggregate length of all star routes on the 30th of June, 1882, was 227,621 miles, showing a decrease during the year of 3,G78 miles. The aggregate transportation during the year was 76,924,867 miles, being a decrease of 2,632,429 miles. The annual cost was $5,553,849, being a decrease of $1,403,506. RAILROAD TRANSPORTATION. The expansion of the railroad system has been greater during the past year than ever before in any one year. Important connections have been made with California and Mexico. The aggregate cost of the service is largely increased each year. Such must continue to be the case so long as the rapid expansion of the service shall continue. The steady growth of this expenditure has provoked much discus- sion for some time past concerning the rates of pay for carrying the niaOs on railroads. The subject is most important ; and the suggestions of the Second Assistant Postmaster-General, that additional safeguards be thrown around the large annual disbursement for railroad services, and that any change in the laws governing the rate of i^ay should be made upon ascertained facts, rather than upon opinion, are recom- mended to the especial notice of Congress. The aggregate length of all railways over which mails were trans- ported at the close of the last fiscal year was 100,563 miles, showing an increase during the year of 8,994 miles. The aggregate transportation over such roads during the year was 113,995,318 miles, being an increase of 10,474,089 miles. The cost for the year was $12,753,184, being an increase of $1,139,816. Without entering into the transactions of the contract office in detail, an intelligent understanding of its conduct of affairs in the aggregate may be gathered from the fact that the approi3riation for all items in- cident to inland transportation for 1883 is 820,067,000, while the esti- mate for the same items for 1884 is $25,494,120. It will thus be seen that the entire transportation service, notwith- standing its rapid growth, will be conducted for the next fiscal year for $572,880 less than the appropriation for the current year. REPORT OF THE POSTMASTER-GENERAL. 811 EATLWAY MAIL SERVICE. The report of the General Superintendent of the railway mail service is an interesting exhibit of the magnitude to which that branch of the service has attained. On the 30th of June, 1882, the railway post-oflices numbered 769. They occupied 342 whole cars and 1,402 apartments in cars. These cars ran over roads whose aggregated length was 87,805 miles, and the serv- ice performed during the year amounted to 75,741,438 miles. In tlie administration of this service 3,570 postal clerks were employed, with salaries aggregating $3,480,779, which is an average annual salary for each clerk of $970.08. The average number of miles traversed by the clerks during the year was 38,504. This is a fraction less than two cents and six mills per mile. Comparing these figures with those of the Second Assistant Post- master-General, it appears there were at the close of the year 12,098 miles of railway which were not post-office lines, and that 38,253,880 miles of service was performed during the year with express mails and closed pouches. During the year there were handled by the railway postal clerks 2,155,213,880 letters and postal cards, 1,278,176,030 pieces of other mail matter, being a total of 3,433,390,480 pieces, besides 14,234,310 regis- tered packages, and 570,483 through registered pouches. This shows an increase over the work of 1881 of 351,239,100 letters, 228,880,250 pieces of other mail matter, and 2,770,028 registered pack- ages and pouches. But, while the work performed during the the last fiscal year was greatly in excess of the work of the previous year, the salaries paid to the clerks averaged $1.85 less during 1882 than for the year 1881. In handling this immense number of pieces 902,489 errors were com- mitted, or one error for every 3,805 pieces handled. During the previous year one error was committed in every 3,024 pieces handk^d. In 1880 one error was committed in every 3,482, and during 1879 one in every 3,409. During the past year 405,700 errors were checked against post- masters, as against 454,349 errors in 1881. These figures show that. While the administration of the postal service is not yet perfect, there is a constant improvement in the ellicicncy, both of postmasters and of postal clerks ; and, considering that postal clerks perform their work on cars while in rapid motion, that they must them- selves work with great celerity, and yet make but one error in every 3,805 pieces handled, it is believed that for accuracy this corps may safely challenge comparison with any other service in tliis country or elsewhere. During the ])ast fiscal year 1,027 postal clerks were appointed upon six months' probation. Of that number 208 failed to pass examination, and were dropped from the rolls at the end of the i)robationary term. Dur- ing the same year there were 83 casuidties, in which three postal clerks lost their lives; 10 were sesiously and 20 were slightly wounded. 812 REPORT OF THE POSTMASTER-GENERAL. I concur in tlie recommendation of tlie General Sui)erintendent, that the Postmaster-General be authorized by law to pay out of the appro- priation for postal clerks, to the widows or guardians of minor children of such clerks as may be killed while on duty, a sum equal to two years' salary of the grade held at the time of the death; and that postal clerks temporarily disabled while on duty be continued on leave with full pay until recovery, not to exceed one year. Such payments, probably, will involve no increased appropriations, as the deductions from pay for failure to perform service and for absence without leave weuld amount to enough every year to meet these requirements. Attention is also invited to the recommendation of the superintend- ent, that a portion of the appropriation for the transportation of mails by railroad may be applied to the purchase of machinery, &c., for print- ii»g facing-slips. The conclusion of the superintendent's report deserves the serious consideration of Congress. It is as follows : It shoulfl not be forgotten -that Imt for the fact that during tlie past twenty- t\vo years the tenure of office of all postal" clerks lias been, by the general practice of tlio Department, permanent during good behaviour, the service could never have attained its present state of efficiency. 80 long, however, as this general practice remains un- sanctioned by positive law compelling it, there is still sufficient uncertainty about the tenure of office to interfere with tliat entire and perfect confidence that merit and efficiency are certain of reward, if not by immediate promotion, at least by retention in the service, which is necessary to inspire men to devote themselves enthusiastically to the work in which they are engaged. Were the tenure of office absolutely secure, young men entering the service would devote themselves to it as a life profession, ha^-ing before their eyes the hope of event- ually rising to ihe position of superintendent, just as the present superiuteudeuts have risen step by step from the lowest grade in the service. That there is a special reason why the railway postal service should be protected by the legislation herein recommended has been recognized for many years by the practice of the Department, but there never was a time before when the puplic in- terests would so greatly suffer by the inauguration of a policy which should lead the railway postal clerks to believe that, in any instance or under any circumstances, a good record for the faithful and efficient discharge of their duties would not be suffi- cient to secure their retention in office during continued good behaviour, because never before has the railway postal service been conducted by men who have made it the sole business of their lives for nearly twenty years to add to its efficiency, and who have learned to meet the wants of the public in postal facilities as fast as such wants arise ; and never before have the postal clerks been trained by so mauy years of experience and study to secure the greatest possible certainty, celeritj', and security in forwarding to their destination every letter and other article of mail matter in- trusted to their care. FAST MAILS AND SPECIAL FACILITIES. Among the estimates submitted for the office of the Second Assistant Postmaster-General is an item of 8600,000, to be expended in expedit- ing mails on railways. The same sum was appropriated for the same purpose during the current year. Touching these items it is proper to say that I have as yet been un- able to make any arrangements for fast service out of the existing ap- REPORT OF THE I'0ST.MA8•rEK-GE^'ERAL. 813 ])ro})riatioii npon terms Avliidi seemed reasouable. Certain service which I foimd ill operation is still maintained at the rate of compensatiou originally agreed npon. This service includes the fast mail between New York and ( 'liarleston, Sonth Carolina, New York and Sprin^rtield, Mas.sachnsetts, and the i.'->r> forenoon dis])ateh from 2sew York via the Unds(m Kiver and Xew York Central. A full account of this service is given in the report of the General Superintendent of the Kailway ]Mail Service, page 231. By reason of explanations quite freely made by me before the appro- priation was made, and by the terms of the appropriation itself, 1 felt it my «luty to employ the fund in organizing a fast mail between New Y'ork and San Francisco, and between New England antl New Orleans. These are the two great trunk lines which feed the most branches. The appropriation was found inadequates to the end contemplated. I am not, indeed, able to say what sum would accomplish the object first named. A proposition was submitted for a mail from New Y'ork to Chicago; but after mature consideration, the managers of the sev- eral roads operating between Chicago «and the Missouri Kiver jointly declined to submit any proposition, saying : Ou inforniation, obtained from officials of the Departiupnt, respecting the largest amount of compensatiou for such service at the disposal of the Department, we arc led to conclude that it is uot possible to run the train on the time and under the cou- dltious imposed, without a largo deficiency of income to meet the expense of the service. I am inclined to the o[»iniou that some desirable expedition might have been obtained over the lines between the Missouri and the Pacitic, if the law would have permitted me to expend the fund upon those com- panies. As such was uot the case, I have thought it proper to leave the money in the Treasury until Congress shall designate some other direction for its employment. Besides the financial results noted in the commencement of this report, the following instructive facts fire gathered from the report of the Third Assistant Postmaster-General : ISSUE OF POSTAGE STAMPS, STAMPED ENVELOPES, AND POSTAL CARDS. The issue of postage stamps, stamped envelopes, and postal canls upon requisitions during the year were as follows; Viiiub«r. Value. Ordinary adliesivo HtanipH ! 1,11! '" ' " " - i XowspajxT and pi'riodicjil stiiiiipa ! . Spfcial H tamps for collection of postage dno I ! ■ Vostnl cards 3 . i Stamped envelopes, plain 11 ' Stamped envelopes, special rcMiucst li . -.. Xcwstjiaper wraiipers I -ll, y.-t,. h o :,.iii, -.u,'. .m) Oliicinl jMista;:.' MlainpH ' •_', n 1 '.i, '..V. , i:i5). OTt 7.'> OHicial staruped enveJopes and wr.ippors '-', 037, .100 i 1'9, :io«J 5ti Aggregating ' 1,740,571,033 ' 40,978,053 42 The number of requisitions filled was 4(JJ,710. 814 REPORT OF THE POSTMASTER-GENERAL. A statement of the values of stamps issued during the last fiscal year, compared with the issues of the fiscal year which ended Juiie 30, 1881, ■will bo found iu the appendix to this report, pages 360-367. POSTAGE ON BECOND-CLASS MATTER. The postage collected on second-class matter during the past year amounted to $1,565,103.28. That is an increase of $166,054.64 over the collections of the previous year. Of the total amount realized from second-class matter, 27.19 per cent, was collected at New York; 9.92 per cent, at Chicago; 6,16 per cent, at Boston; 5.43 per cent, at Philadelphia; 4.44 per cent, at Saint Louis; 3.56 per cent, at Cincinnati; 3.28 per cent, at Augusta, Maine; 1.71 per cent, at San Francisco; 1.45 per cent, at Detroit; 1.23 per cent, at Mil- waukee; 1.22 per cent, at Louisville; 1.01 percent, at Pittsburgh ; .09 of one per cent at Cleveland; .96 of one per cent, at Saint Paul; .92 of one per cent, at Toledo, and .86 of one per cent, at Baltimore. The re- mainder was collected at 5,064 other offices scattered throughout the country. REDUCED PRICES OP STAMPED ENVELOPES. A new contract was made in June last for stamped envelopes. The average reduction in price is nearly 7 per cent. That reduction is the more gratifying, because it follows a reduction of about 20 per cent, made in the last contract over the one which preceded it. Estimating the number of tbe different kinds of envelopes to be issued under the new contract upon the basis of the number actually issued during the year which ended on the 31st of March last, the aggregate cost will be $456,197.58. Five bids were received for the manufacture of such en- velopes. The cost of the same number and kind under the highest proposal submitted would be $476,585.40. There was thus only a little more than $20,000 between the highest and the lowest offer made for a contract, which will amount to something like a half million of dollars. That fact furnishes plenary proof, both that bidders were equally well informed of the services expected and that the bid accepted, while it was the best offer, was not likely to subject the contractor to a loss. DEAD LETTERS AND PARCELS. The whole number of pieces of mail matter handled during the year, including a balance of 124,731 letters on hand July 1, 1881, was 4,285,285. That is an increase of about 15 per cent, over the previous year. Of these, 3,288,589 were unclaimed domestic letters ; 00,476 were unclaimed domestic packages ; 356,287 were letters of foreign origin ; 954 w^ere letters for foreign countries containing unmailable articles ; 17,313 were foreign parcels containing print*ed matter, samples, &c., returnable to the countries of origin under special postal arrangements ; 275,240 were held for postage ; 274,715 were misdirected, and 11,711 bore no suj)erscription whatever. REPORT OF THE POSTMASTER-GENERAL. 815 Of the letters opened 19,989 contained money amounting to i*44,3L'r).65; 24,575 contained drafts, checks, money orders, &c., representing » value of 81,963,413.73; 90,842 letters and parcels contained merchaudiHe; 52,463 contained postage-stamps; 44,731 contained receipts, paid notes, &c.; 39,242 contained photographs. $7,657 were taken from dead letters which could not be restored to owners ; $3,739.02 were collected upon insufficiently-paid letters. The8§ two items represent the entire re- venue derived from the dead-letter service. More minute details will be found in the report of the Third Assistant Postmaster-General, at pp. 368-373 and tables numbered 10-15. NEW MODE OF TREATING HELD-FOR-POSTAGE MATTER. An important change in the mode of treating held-for-postage matter was inaugurated on the Ist of July under the provisions of a depart- mental order dated May 11, 1882. Formerly, first-class matter deposited in a post-office, on which less than one full rate was paid, and third find fourth class matter not paid in full, were sent to the Dead-Letter Office instead of to the addressees. The new order directs the postmaster at the office of mailing, to notify the addressee by card, of the existence of the letter and of the deficiency in postage, to the end that, if he chooses, he may remit the postage and have the letter forwarded. This new mode is, for the present, confined to the free-delivery offices. Reports have been received from 97 of those offices, showing that the total numberof pieces finally treated by them diuing the (piarter ended September 30 last, was 71,478, of which 59,711, or nearly 84 per cent., were forwarded to the addressees. REGISTRATION OF LETTERS AND PARCELS. The whole number of letters and parcels forwarded by registered mail during the year was 9,627,022. The amount of registry fees col- lected was $841,497.90. The actual estimated losses (some cases being still under investigation) were unusually few iu number, consisting of 726 letters or i^arccls only, or one out of every 13,202 forwarded. POSTAL MONEY-ORDER SYSTEM. The report of the Superintendent of the I^Ionoy-Order System is, a« usual, interesting and instructive. I extract from it such facts only :»s touch upon the growth of the business, and the proposed modifications in that branch of the service. The money-order offices conducting domestic operations numbered 5,491 at the cloSo of the last fiscal year. The orders issued by the same aggregated in value $113,400,118.21. The orders paid and repaid ag- gxegated $113,388,301.90. The fees received from the public ain(uint«'d to $1,053,710.55. Tliat was an increase of nearly 9 per cent, over the l)revious year. The gross revenue fro^tt the domestic moneyonler 816 REPORT OF THE POSTIVIASTER-GENBRil.. business was $280,341.17. That sum, together with $80,426.18 derived from inteinatioual money-order business for the year which ended June 30, 1881, has been paid into the Treasury for the service of the Post-Office Department. After deducting therefrom all the expenses of the money-onler service, which Avere paid during the year from appro- priations, there remained a net profit of $165,030.25. Allowances for clerk-hire were ma, com- prising 05 sheets. New photolithographed maps of New .Mexico and Arizona, of Oregon andWashington, and oftheTerritoriesof Montana, Idaho, and Wyoming, and engraved plates of Virginia and AVest Virginia have been com- pleted ; also a new map photolithographed of the Mississippi Iviver has been produced. There arc under construction, drawings for new maps ol" Florida, North Carolina, South Carolina, California, and Nevada. MAIL DEPREDATIONS. The force employed in the division of the Chief Post-Ollice Inspector has been activ(i and etUcieut during the last year, as will be seen by the report of its chief. The number of cases investigated and reported upon during the year are as follows : llejistered cases 5, goo Ordinary cases 3j, ^so Mirtc'oUancous cases 4,678 Four hundred and ninety -six arrests were made. Of these 411 were piosecuted in the courts of the United States and 55 in the courts of the several States. Of the former, 193 were convicted and 18 acquitted ; 7 escaped, 1 forfeited bail; 40 cases were dismissed, and 182 await trial. Of those prosecuted in the State courts 14 were convicted, 7 aecpiittcd, li escaped, 27 await trial, and 5 cases were dismissed. The disbursements on account of ai)i)ropriationfor])ost-ottice insi)e('t- ors ami mail depredations during the fisi id year ended June 30, 1882, salaries and exi)ensc allowance of i)Ostolhce inspectors, attorney's foes, rewards, &v., were $100,551.25. There are claims against this fund still unadjusted. ft NEW MONEY-OlJDKi; OFFirK DI^ILDING. By the provisions of the act of iAfarch I, issi, making ai)propriations for the service of the Post-Office Department for the fiscal year ending 52 Ab 818 REPORT OF THE POSTMASTER-GENERAL. Jiine 30, 1883, the Postmaster-General was authorized " to take the nec- essary steps to reut a suitable building, or buildings, for the use of the Money-Order Office of the Post-OfUce Department, and of the money- order division of the Auditor of the Treasury for the Post-Office De- partment," provided, " that the annual rental of such building or build- ings shall not exceed $5,000." The Postmaster-General, however, was unable to rent a building of the necessary capacity for the amount of money specified in that act. Wherefore, at its last session Congress X^assed an act extending the limit of the appropriation for the rent of a i3uilding for the money-order service to $8,000. Upon the passage of this act a number of offers were made of buildings in the neighborhood of the Post-Ofdce Department for the use specified ; but upon investiga- tion it was found that the buildings tendered either lacked a sufficient amount of space for the purposes of the Department, or were held at too high a rental value. Finally, an ofler was made by Messrs. E. A. Hooe, of Washington, and Eobert Beverly, of Virginia, the owners of the property on the corner of Eighth and E streets, square numbered 406, to erect a building on said property for the purpose contemplated. On the IGth of March last I entered into contract with Messrs. Hooe and Beverly, a copy of which will be found in the~ Appendix. That building has been erected. The clerks composing the Money-Order Office of this Department and the Sixth Auditor's Office are now estab- lished in it. The new budding contains about 15,000 feet of space for clerks, is furnished with an elevator, good heating appliances, and ap- propriate electric bells and speaking tubes ; is well lighted and venti- lated, and is connected with the department building by a light, but substantial iron bridge. By the terms of the contract, the government is given the option of purchasing tlys x^roperty for $85,000 at any time within two months after the opening of the next session of Congress. Three considerations commend this opportunity to the prompt acceptance of Congress : First. There seems to be little doubt that the government will soon impera- tively need the whole of that square. Second. Good judges of property are of the opinion that if this particular lot is not taken upon the terms and within the time specified, it will never be secured for less than $100,000. Third. The rent reserved amounts to more than 9 per cent, per annum on the price demanded. It seems little less than profligate to pay 9 per cent, for rent when the money can be had for 3 J per cent, to purchase. RATES OF POSTAGE. I remain of the opinion expressed in my letter of the 18th of May last, addressed to the Speaker of the House of Eepresentatives, that the postage on second-class matter ought properly to be abolished. It does not seem just, and if not just, it cannot be wise to charge for carrying some newspapers and to carry others free, or to charge for carrying a REPORT OF THE POSTMASTER-GENERAL. 819 newspaper to some subscribers and to carry the same uew?.paper to others without charge, I wish also to repeat, and to emphasize the opinion expressed in the same letter, that the rate of postage on fourth-class matter should be in- creased. To charge three cents per half ounce for carrying messages from one post-oflice to another, and yet to carry merchandise from one side of the continent to the other for one cent an ounce is not ai)proved by good sense, if it is by good morals. Some anxiety has been manifested to reduce first-class postage to two cents per half ounce. If it should be thought such a reduction in ratea would cause too great a shrinkage in the revenues,! would respectfully suggest that correspondence may be cheapened almost as much by an other measure, much less costly to the Treasurj*. If Congress will authorize the sale of stamped envelopes at the same price at which adhesive stamps are sold, it would lessen the cost of cor- respondence. The government is now the largest dealer in envelopes there is. It sells, as nearly as practicable, at the cost of manufacturing, with the postage added. After the first of January next the present tariff of prices will be somewhat reduced, owing to the more liivorablo terms of a recent contract for their manufacture. Yet, under the reduced tariff, if the single rate be reduced to two cents, a correspondent who buys a singlestamped envelope will be compelled to pay three cents for it. If he buys more than five and less than a hundred, he will have to pay 2^ cents each. If he buys more than a hundred at a time, he will bo able to get them at a small fraction less than that. If, on the coiitrarv, the cor- respondent buys adhesive stamps at the post-office, and liis envelopes of private dealers, the cost will be still greater. Eegardless of economy, a large percentage of eorrcs[)oiidents do in fact buy the adhesive stamp instead of the stamped envelope. During the last fiscal year 680,463,700 adhesive stamps of the denomination of three cents were issued for prepayment of postage by the public, while only 168,096,250 stamped envelopes of the same deiioniiuatiou were issued. It is safe to assume that the purchasers of those adhesive stamps paid an average price equal to a large fraction of a cent each for the envelopes on which to put them. If the dciiartment could have supplied the envelopes at the cost of stamps, it would have been equiva- lent to a reduction of that fraction of one cent in postage. Yet it would have cost the government, under the jircsent contract, less than .^2,000,000 to furnish the envelopes. And even this apparent loss would have been compensated by two great advantages: An adhesive stamp, not properly canceled, can be removed and re-used. It is not doubted tliat the revenue is seriously impaired an- nually by this one cause. The envelope can never bo used but once. So far as the stamped envelope can be substituted for the adhesive stamp, all such depreciation of revenue is avoided. 820 llEPORT OF THi: POSTMASTER-GENERAL. Another benefit to accrue from the substitution of stamped envelopes for adhesive stamps, is the saving of labor in the administration of the service. A letter deposited in a post-office, on which less than one full rate of postage is prepaid, is treated in one of two ways. If it be de- l)osited in a free-delivery office, and the writer is unknown, the post- master sends a notice to the addressee that he may, if he will remit the postage, have the letter forwarded. That imposes labor upon the local postmaster. If the same letter is deposited in any other than a free-delivery office, it is sent at once to the dead-letter office, to be treated there. That imposes labor upon the department. The whole number of domestic letters treated in the dead-letter office during the last fiscal year was 3,709,2GG. Of these, 275,240 were letters held for I)Ostage. But a letter once inclosed in a three-cent stamped envelope has one full rate prepaid. That letter cannot be held for postage. It will go forward at once; the i)ostmaster at the office of delivery will tender it to the addressee upon receiving the postage due. Again, the correspondent who orders stamped envelopes to the num- ber of 500 may have his name and address, with a request to return, printed thereon without additional charge. Then if the addressee cannot be found the writer may be found without resort to the dead-letter office. Out of 6,000 letters sent to the dead-letter office on the 4th instant, only four had such requests upon them. By such means the work of the dead-letter office may be reduced to the mimimum. The Postal Establishment has attained huge proportions. It is con- ducted at an annual cost of $50,000,000. It should do whatever it can do well. What it can do elsewhere it can do here. Yet the fact remains that the postal service does in other countries many things which it has not yet attempted in this country. POSTAL COLLECTION SYSTEM. In Belgium, Switzerland, and Germany, the post-office is employed in the collection of bills not exceeding 500 francs in any one sum. The system is briefly this : The creditor purchases a special envelope of the post-office, for which he pays 25 centimes, and in which he incloses his account, and directs to the postmaster within whose delivery the debtor resides. The bill is handed to the carrier, who presents it to the debtor on his round. If not paid, the bill is simply returned. If paid, the carrier returns the money to the postmaster. For his services he re- ceives 25 centimes if the amount is 100 francs or more ; if less than 100 francs, he receives 15 centimes. The postmaster receives a like sum for his services, and sends the creditor a postal order for the balance, less the proper fee for the order. In Germany, during the year 1876, 2,750,000 accounts were thus col- lected. In March last the system was authorized in France. I respect- fully invite Congress to consider whether, by authorizing a similar sys- tem here, something cannot be done to further utilize the postal estab- REPORT OF THE POSTMASTER-GENERAL. 821 lishment and augment its revenues; to lessen the cost of collecting tradesmen's bills, and to inculcate in the people the habit of promptly meeting their small bills as the banks inculcate the habit of meeting large ones. POSTAL SAVINGS-BANKS. T follow in the ste})8 of many of my pr«Hlec(\ssors In this ofTicc, when T invoke Congress to nnike one more etiVn-t to engraft upon the postal service a system of deposits lor small sums. The great lesson our peoi)le need to learn is that of economy. The American people are apt to earn, but are not Mise to save. The easy introduction to the art of saving is to provide a convenient and safe means of saving. A lucrative means is less essential. A place near at hand wliere a dollar may be deposited and may be secure against the temptations of the burglar, the thief, and the saloon-keeper, even if it accumulates but very little, has everywhere j)roved a strong inducement to saving. The post-otfice is near to every citi/.en ; the sav- ings bank must always be remote from most. The post-ottice need not be a substitute for the savings bank, nor its rival, but its feeder; a place where small deposits with slow accretions may securely grow into large ones, then to be transferred to savings banks on longer terms and with larger earnings. POSTAL TELEGRAPH SYSTEM. Another and a broader field of activity not yet occupied by our postal establishment is that of the telegraph. In almost all countries, save this, telegraph service is conducted by the postal authorities. Presidents, Postmasters-General, and committees of both houses of Congress have heretofore urged that the Post-Oiiice Department of the United States should take exclusive possession of that service. Already Congress has provided a mode for adjusting the terms upon which the United States may purchase all telegraph lines, either for postal or other pur- poses. (Revised Statutes, section 52G7.) After the fullest consideration I have been able t<3 give to the sub- ject, I am forced to the conclusion that the time has fully come when tlie telegraph and postal service should be embraced under one man- agement. The whole subject has been argued in former years. I shall do but little more than summarize that argument. The business of the telegraph is iidierently the sanu^ as that of the mail. It is to transmit messages from one person to another. That is tlievery i>urpose for wliich post-otiices and post-roads are established. The power to est^iblish is not limited to any i)articular modes of trans- mission. The telegraph was not known when the. Constitution was adopted. Neither was tlie railway. L cannot doubt that the power to employ one is as clear as to employ the other. If the union of the two services did not improve that of the tele- 822 REPORT OF THE POSTMASTER-GENERAL. grapli at all, I tliiuk it would improve the i)ostal service in some im- portant respects. It would necessitate the employment of telegraph operators for postmasters in many offices. That would result in giving to the administration of not a few offices men who have learned to do one thing in place of those who have never Jearned to do anything. It tlie two offices were united, whenever a mail did not arrive on time, the public thronging the post-office would learn, not merely that the mail had not arrived, but when it would arrive. Again, the necessity for delivering messages would facilitate and gradually draw after it the free delivery of mails in places where free delivery in itself is impracticable. But a union of the two services would, I believe, improve the tele- grapli more than it would the postal service. I prefer no accusation against the administration of the former serv- ice. Admitting it to be honest and efficient, the fact remains that it is not cheap, and under corporate control it cannot be cheap. Eent for both services would cost but little more than the cost for one. So of fuel and of light. Where there is now a free delivery of mail, telegraph messages could be delivered at less cost by the post-office than hy a cor- poration. Besides, if the business was controlled by the government, there would be but a single management for the whole. The business is now charged with the cost of many different managements. One di- rection is cheaper than several. Again, corijoratious will seek, and ought to have, not only remuner- ation for cost of administration, but interest on the capital invested. Telegraph companies seek and secure a large interest on their capital; and what is still more burdensome to the public is the fact that the aggregate outlay of the companies is always greatly in excess of the actual cost of their proi)erty. The office of the telegraph is not indispensable in the sense that air, water, and food arc; but it is so essential to social, political, and com- mercial life that it must be had. If it cannot be obtained at one price, it will be at another. No one corporation has been or will be allowed quietly to monopolize the business. No one set of men will be i)ermit- ted exclusively to sell services which all must have. And yet, while monopoly will not be permitted, competition beyond a certain point can- not be tolerated. When comiietition profits the public who purchase the service, ft be- comes injurious to the companies which sell. When it becomes injurious to the comiianies, the competition is extinguished by the inirchase and absorption of the competitor. The price paid for the franchises of a rival concerns the purchaser but little; it concerns the public deeply. The people must pay the fees which will yield dividends on the new and on the old capital. So it has happened that the one corporation which has built most miles of telegraph has been the largest purchaser of telegraph property. It must continue to be so. Xo matter how i?ich REPORT OF THE POSTMASTER-GENERAL. 823 a company may be, it is powerless to prevent the organization of new and competing enterprises. Its sole protection is to buy when the new rival proves hurtful. No matter how conservative or just may be the management of the purchasing comi)any, it will demand from the public dividends on the capital invested to extinguish the rival. The only security capital can have against these recurring raids is to sur- render the business to the government. The only prot(.'Ctiou the public can have against these multiplied exactions is, for the government to assume that exclusive control over the transmission of domestic mes- sages by electricity, which it now has over the slower methods by steam and stage-coach. Safety for those who sell and those who buy tele- graph service is jiromoted by the same measure. But a stronger reason still, why the government should control the telegraph, is found in the fact that it is as potent for evil as for good. Like government itself, it is too terrible to be wielded by other than representatives of the whole people. In the great commercial centers, public stocks, corporate and mining stocks, bonds, and the staple products of agriculture are bought and sold daily, to the amount of thousands of millions. In all those markets one great telegraph company wags its tongue incessantly. For all those commodities it is the arbiter of prices. Prices go uj) or down according to its inculcations. Whoever controls its utterances may at i)leasure buoy a market in which he wishes to sell, or break one in which he wishes to buy. That is an agency much too dreadful to entrust to private hands. I am far from asserting that a use so malign ever has been made of this agency. I speak of its capabilities, not of its history. Knowing that it can be so abused, it seems to be the dictate of pnulence not to wait until it is so abused. It is manifest that even when the govern- ment controls the telegraph a falsehood which may sink a stock or float it may still be sent over the wires. But truth will have equal free- dom on the Imes. In government hands the telegi'aph will njaintain an exact neutrality between the two fierce parties, which, day by day and year by year, contend for supremacy in the markets. In private hands it may become the mere creature, as malignant as mighty, of that party which its owner, from time to time, chooses to join. If he choose, he may give free course to falsehood, and if he choose, he may imprison the truth. Who else can trade in a market dominated by such a power! It may be objected, and has been, that the measure proposed would largely extend the roll of Federal othcials. That increase has doubtless been exaggerated. At a very large percentage of the offices the tele- graph operator would not su|)]il('ment the i)ostmas(er, but would sup- Ijlant him. Besides, I know of no law but necessity limiting the em- ployment of officials. The government is not wise which employs a single officer not needed. It is unwise if it refuses to employ thousands when they are needed. 824 ■ REPORT OP THI-: POSTMASTER-GENERAL. Within the life of this geuoration this government employed more than two and a half millions of officers. They were all armed. They did not destroy the country ; they saved it. It is not difficult to find individuals who employ a thousand men and find proEt in it. It does not become fifty millions to shrink from employing a hundred thousand if they have need for their services. T. O. HOWE, rosimaster- (Jencral. The President. PAPERS ACCOMPANYISCi THE REPORT OF THE POSTMASTER GENERAL. ESTIMATES OF THE APPROPKIATIONS FOR THE POSTAL SERVICE FOR THE FISCAL YEAR ENDING JU2.E 30, 1S84. OFKICK Ol' TUK POSTMASTEU-GE^TEP.AL. Mail depredations and post-office inspectors, including amounts neces- sary for fees to United States marshals, attorneys, &c 8*22r>, 000 W Advertising r.O.OUO 00 Miscellaneous items in the office of the Postmaster-General ~, 000 00 OFFICE OP THE FIRST ASSISTANT rOSTJIASTER-GKNEUAL. Compensation to postmasters 10, IIM.OOI 'in Clerks in post-offices 4,8r)0,0<.K) 00 Letter-cairiers 3, 600, OCM) 00 Wrapping-paper -jri, 000 00 ■Wrapping-t\\ ine -''ij, 000 00 Marking and rating stamps -•'. OCM) 00 Letter balances, scales, and test- weights 'Jfj, 000 00 Rent, fuel, and Ught 4r.0,000 00 Office furniture iW.tKK) IM Stationery r,.',,0<.>n 00 Ink for stamping and OFFICE OF THE SECOND ASSISTANT POSTMASTKK-dENII'.Al.. -• . .. ;■ Inland transportatio)i, railroad routes !•}, OiK», 0 ASSISIANT P< (ST.MASTER-tiKNK.RAI.. Postage stamps I.U". ^.K^| i"' Expenses of agency ' S". lou oo 826 PAPERS ACCOMPANYING THE Stamped envelopes, newspaper wrappers, and letter sheets $632, 000 00 Expenses of agency Ifi, 000 00 Postal cards 253,000 00 Expenses of agency 7, 300 00 Regisfered-package, post-office, and dead-letter envelopes 140,000 00 Ship, steamboat, and way letters 1,500 00 Engraving, printing, and binding drafts and warrants 2, 000 00 Miscellaneous items in the otHce of the Third Assistant Postmaster-Gen- eral ' ■-.. 1,000 00 OFFICE OF THE SUPERIXTEXDENT OF FOREIGN MAILS. Transportation of foreign mails 350,000 00 Balances due foreign countries, including the United States' portion of the exijenaes of the International Bureau of the Universal Postal Union and the subscription of the department for the monthly journal < (L'Union Postale) of that bureau 60, 000 00 Total 40,741,111 25 Estimated amount which will be provided by the department from its own revenues, based upon an annual increase of 10 per cent, on the revenues for the fiscal year ended June 30, 1882 - 50,670,456 27 Surplus of estimated postal revenue over estimated expenditures 3, 929, 345 02 Note. — The postal revenue, estimated at an annual increase of 10 per cent, on the revenue for the last fiscal year, will, for the year ending June 30, 1884, amount to $50,670,456.27, or $3,929,345.02 more than the estimated expenditures for the same fiscal year. The increase of receipts for the last over the previous fiscal year was at the rate of 13.8 per cent. At the close of the last fiscal year there remained a handsome suri)lus of receipts over expenditures, and the receipts are now increasing at a much greater rate than the expenditures. Hence no appropriation will be required from the general Treasury to aid the postal revenue imneet- ing the estimated expenditures for the coming fiscal year, unless there should be changes in the rates of postage, or in the classification of mail matter, injuriously affecting the revenue. A deficiency appropria- tion from the Treasury of $2,152,258 for the year ending June 30, 1882, remains undrawn, and it is not believed that it will be necessary to draw any portion of the $1,902,177.90 appropriated to supply deficien- cies in the postal revenue for the current fiscal year. T. O. HOWE, FostmaMer- Qeneral. Office of the Postmaster-General, November 1, 1882. REPORT OF THE POSTMASTER-GEKERAL. 827 PoST-OFFICE DEPART:>rENT, Office of Third Assistant Postmastek-General, WuMhingtun, ]>. C, Octobtr li3, 1S83. Sir : I liave the houor to submit beiewith, for your cousideratiou, a table showing: the estimates of a])propriatious required for the service of the Post-Otlice Dei)artment for the liscal year eudinj; June 30, 1SS4, jirepared in accordance with your dire For clerks in post-offices 4.8o0, 000 00 For free-delivery service ;i, 600, 000 00 For rent, fuel, and light 450, 000 00 For office furniture :30, 000 W\ For stationery in post-offices (■>,'), 000 00 For miscellaneous and incidental items !»0, 000 00 For wrapping-paper 2o, 000 00 For wrapping-twino f)."), 000 00 For marking and rating stamps *2r>, 000 00 For letter balances and scales 25, 000 00 Ink for stamping and canceling purposes 10, 000 W Pads for stamping and canceling purposes 10, 000 00 Total estimate 19, 3G9, 01»1 •-'.". or $2,227,091.25 more than the appropriation for the current year. compensation to postmasters. The following were the estimates, appropriations, and expenditures for this item for the past two fiscal years : 1880-'81. 1881-82. Inoreaae. Kstiraates Appropriations Expenditures.. Deficiency $7, 550, 000 00 $7, 800, 000 00 7, 57({,72) is not so large as the amount appropriate*! by $27,030.66; but it is expected that when the delayed returns from postmasters for the year sluill have been received, the wliole amount api)roi)riated by Congress will bo expiMuU'd. The expenditures for the past fiscal year were also greater than those of the previous year in the sum of 86r\ much larger appropria- tion for compensation to postmasters should be made for the next fiscal year. It has been ascerlained that the compensation of postmasters bears a direct relation to the gross receipts of the departmcMt. The present law 830 PAPERS ACCOMPANYING THE regulating the compensation of postmasters of the fourth class went into operation the 21st July, 1878. During the first fiscal year of the change, ended June 30, 1879, it re- quired 23.9 per cent, of the gross receipts to pay the compensation of postmasters. During the fiscal year ended June 30, 1880, 23.1 per cent, was re- quired; for the year ended June 30, 1881, 22.5 per cent, was required; and for the year ended June 30, 1882, 21.4 per cent, was necessary. It will thus be seen that the decrease in percentage of compensation to postmasters to the gross receipts has been a steady one ; and this is only natural, since the great bulk of the receipts is collected at the larger offices, where the salaries are fixed by law. The receipts for the fiscal year ending June 30, 1884, based on an increase of 10 per cent, upon the last fiscal year, have been estimated at $50,070,456.27. It is believed that not more than 20 per cent, of this amount will be required to pay postmasters for the next fiscal year. Upon this basis it is esti- mated that $10,134,091.25 will be necessary for the compensation of postmasters for the year ending June 30, 1884. This amount wiU be $1,334,091.25 greater than the amount ($8,800,000) appropriated for the present fiscal year, or an increase of 15.16 per cent. An essential element in the above estimate is the increase under the biennial readjustment of July 1st last in the salaries of jDostmasters at first, second, and third class ofi&ces, amounting to $563,400 more than was paid last year. CLERKS IN POST-OFFICES. The estimates, appropriations, and expenditures for this pui^pose for the past two fiscal years were as follows : 1880-'81. 1881-'82. Increase. Estimates Appropriations Expenditures.. $3, 650, 000 00 3, 680, 000 00 3, 676, 756 22 $3, 850, 000 00 ; 3, 850, 000 00 [ 100, 000 00 3, 908, 396 60 Per cent 7.33 6.30 The appropriation of $3,850,000 for the fiscal year ended June 30, 1882, was found, after six months of the year had expired, to be in- adequate for the necessities of the service, and upon the recommen- dation of the Postmaster-General an additional $100,000 for the year was appropriated by Congress on the 6th of March last for this item, making the whole amount $3,950,000. This appropriation was $270,000, or 7.33 per cent, greater than for the previous year. The appropriation for the present fiscal year is $4,385,000. The expenditures for the last fiscal year amounted to $3,908,396.60, or $41,603.40 less than the appropriation. In no other fiscal year have the requests for additional allowances for clerical service and separating mails in post-offices been so numerous or so lu-gent as the past. These requests have been made by postmasters in all sections of the country, but they have been especially necessary in the rapidly growing portions of the West and Southwest. Postmasters at many of the principal cities in the older States have also applied for additional allowances for clerk-hire, in consequence of the great increase of the business of their offices from registered matter, merchandise passing through the mails. REPORT OP THE POSTMASTER-GENERAL 831 and from other causes. After the passage of the act grantiog $100,000 additional for this purpose for the past fiscal year, I found myself some- what embarrassed, owing to many deserving applications, in making a proper disposition of it.- The commission referred to in my report to the Postmaster-General was determined upon as a measure of relief, as well as with a view to the better organization of the service in several of the large cities. The adoption of their recommendations resulted in a considerable saving of funds, and furnished a better basis for making future allowances at the ofi&ces visited. This did not afford sufficient relief, however, nor have I yet been able, with the appropriation at my command, to grant all the requests from the South and West, which are equally urgent, though the revenue derived from these offices is not so largo as from many in the Xorth and East;, nor is it in numerous instances at all in proportion to the great amount of labor required. I have therefore estimated the amount necessary to be appropriated for clerks in post-offices for the fiscal year ending June 30, 1884, at $4,850,000, which is $465,000, or lO.G per cent., greater than the appro- priation for the current year. I consider this amount absolutely requi- site to meet the rapidly increasing and important requests of this char- acter which are constantly being received, and are made necessary by the remarkable expansion of postal business* in all sections of the country. FREE-DELrVTEEY SERVICE. The following were the estimates, appropriations, and expenditures for this service, and the incidental expenses thereof, during the two past fiscal years : 1880-'81. 1881-'8S. IncresM. Estimates Appropriations Expenditures.. (2, 500, 000 00 2, 500, 000 00 2, 409, 911 64 $2, 700, 000 00 ; 2. 600, 000 00 I 25, 000 00 2, 623, 2C2 74 Vtr tent. 5 4.i» This system was in operation on the 30th of June last in 112 of the I^rincipal cities of the country, and employed 3,115 carriers. It has been extended to 25 other cities since that date. The regular appropriation of $2,600,000 for the past fiscal year was increased in the sum of $25,000, to meet an anticipated deficiency, making $2,625,000 for the period, and an increase of $125,000, or 5 i)or cent., over that of the previous year. The expenditures were $2,623,262.74 for the fiscal year, or $1,737,26 less than the appropriation. The cost of the service wius increased $123,351.20 over that of the preceding year, i>rin- cipally owing to the appointment of additional carriers in cities where the service was already in operation. The service was extended to only three cities during the year. The postage on local matter for the year was $3,810,576.00, an increase of $542,945.70 for the year. The average cost per piece for handling matter was 2.3 mills, a decrease of 0.1 mill as comi)ared with the last year. The average cost per carrier was $835.75, a decrease of $37.70. The appropriation for the present fiscal year is $3,200,000, of which amount. $200,000 .was.approi^riated.by tho^terms of. the act of August 832 PAPERS ACCOMPANYING TTIE ii, 1882, which hiw requires the promotion of caniers to the next higher grade after one year's service. For the fiscal year ending June 30, 1884, it is estimated that an ap- propriation of $3,000,000 will be required in order that free deliverj' may be extended to other cities i>osse8sing the necessary qualifications, either of population (20,000) or of gross revenue ($20,000) from the post-office; that provision may be made for the development of tlie service where it already exists, and that the pay of certain carriers may be increased under the provisions of the law above mentioned. The increase of estimate is $400,000, or 12 per cent, more than tlic amount appropriated for the current year. A detailed explanation of the expenses of this service, as well as of its popularity and usefulness, will be found in my annual report to the Postmaster Ueneral. RENT, LIGHT, AND FUEL. The estimates, appropriations, and expenditures for this item for the two last fiscal years were as follows : 1880-'81. 1881-82. Increase. Per cent Estimates Appropriations Eipenaitnres.. $450, 000 00 425, 000 00 382, 714 86 $500, 000 00 425,000 00 401,978 04 5.03 The estimate for these items for the fiscal year ending June 30, 1884, is $450,000, the same as the appropriation for the current year, and it exceeds the expenditures for the past year in the sum of $48,021.96, or 11.94 i)er cent. By law allowances of this character are made only at oflices of the first and second classes, or where the salaries of the postmasters are $2,000 and upM^ards per annum, and they are usually based upon the amounts received at the different offices from box-rents and the commissions upon the sales of stamps. The increase in these allowances during the past fiscal year over that of the preceding one was $19,263.18, or 5.03 per cent. Of the whole amount expended, about $305,000 was for rent of buildings for post-offices. It has been my endeavor during the time I have been in the depart- ment to secure for use, when permitted to do so by the postal laws, a better class of buildings in the different cities for jiost-offices than hav^e heretofore been occupied, and my efforts have been attended with con- siderable success in many places. Still further improvements can be made and advantages secured in this particular, as the inhabitants of the larger cities (where government buildings do not exist) have become aware of the importance of a well-built and well-finished structure for postal business. With this object in view I consider that an appropria- tion of $450,000 would not be excessive for these items. I am also of the ox)inion that some provision should be made by Con- gress by which postmasters of the third class, whose salaries are $1,000 and less than $2,000 per annum, should, to a certain extent, be relieved from the payment of the rent of their offices out of their salaries. Con- sidering that the revenues of the department for the past fiscal year exceeded the expenditures, it seems to me that liberality could be ob- served in this direction. REPORT OF THE POSTMASTER-GENERAL. OFFICE FUENITUrE. 833 The estimates, approjuiations, aud expenditures for this purpose for the past two years were as follows : 1880-'81. 1881-'82. Increaae. $20,000 00 20, 000 00 19. 206 87 $25,000 00 20 000 00 Per cent. 20 716 6* '!»-■; The appropriation for this item for the present fiscal year is $20,000, or the same as for the previous year, and, in my judfjment, is entirely too small for the purpose. The postal affairs of the country cannot he properly and expeditiously conducted unless the offices are furnished with suitable facilities in the way of furniture, such as tables for as- sorting the mails, desks for writiug, racks for lianging the mail-bags, and many other articles which are absolutely necessary for the proper transaction of business. I regret to say that within my own knowl- edge there are many post-offices so ill-provided in these respects that it is a soni«ie of unfavorable comment by their patrons upon the de- partmental management. ]\Iaiiy postmasters have been compelled to provide articles of furniture at their own expense, and assume the risk; of disposing of them to their successors. Especially is this the case iu the matter of safes, which are indispensable in all of the larger offices. l)uring the past year the ai)plications of postmasters to have offices supplied with them have been more numerous than ever before. Con- sidering that it was, to a certain extent, both economical and proper to provide safes for many of tlio important offices where much registered matter is sent for distribution to other points, I have made quite a number of allowancM^'s for that purpose during the year, aud the bills for such items having beeu ])resented earlier than was anticipate the expenditures for the year 18(Sl-.Sli ex- celled the aj)piopriation for this item, for the same iH*riod, in the sum of $0,517,158, thereby causing a deficiency for the year of tliat amount. 63 Ab 834 PAPERS ACCOMPANYING THE The expenditures for the past year were greater than those of the pre- vious year by $7,278.83, or 14 per cent. I much regret that a deficiency should have occurred for stationery during the past year. The causes were that no increase was made in the approj)riation for this item for the year, although an estimate for $10,000 additional was mnde; that the requests for the articles used under this item are becoming more numerous and urgent each year, and in the same degree in which the postal business is augmented; and further, that by the regulations of the department, postmasters at first and second class offices (the only ones who are entitled to allowances for these items) are permitted to i)urchase the necessary stationery without making application to the department for the same. The sta- tionery used by many post-office inspectors and railway mail service superintendents has also been paid for out of this item. It is the first time that a deficiency in this appropriation has occurred in several years, and it could have been avoided if the returns of the postmasters to the Auditor were readily accessible at the end of each quarter. The estimate for this item for the next fiscal year has been placed at $05,000, an increase of $10,000, or 18 per cent., over that of the current year, and I know of no good reason why that appropriation should not be made. MISCELLANEOUS AND INCIDENTAL ITEMS. The following were the estimates, appropriations, and expenditures for these items during the two past fiscal years: 1880-'81. 1881-'82. Increase. Decrease. Estimates Appropriations Expenditures . . $90, 000 00 85. 000 00 80, 989 15 Per cent. \ Per cent $100, 000 00 90,000 00 I 5.88 68,594 76 I I 15.30 The appropriation for the present fiscal year is $90,000, or the same as for the last year, and is but $5,000, or 5.88 per cent., greater than that for the year ended June 30, 1881. It will be perceived that the expenditures for the past fiscal year were $12,394.39, or 15.30 per cent., less than for the year previous. This was mainly due to the fact that the expenses for the miscellaneous and incidental items of the rail- way mail service, heretofore charged to this office, were, during the last half of that fiscal year, transferred to the accounts of the Second Assistant Postmaster-General's office, in the absence of any specific appropriation therefor. Nevertheless I do not anticipate that the ex- penditures for these items will again be as low as they were during the past year. The same necessity exists as heretofore for the rental of telephones, for telegraphic communications, and the many other expenses incidental to the proper dispatch of business in post-offices, and must necessarily increase in proportion as the country expands and the postal business increases. Post-offices cannot be successfully conducted without the numerous little appliances to facilitate business which are ordinarily seen in other large public and private establishments; and I have therefore estimated the amount necessary for these items for the next fiscal year at $90,000, or the same as appropriated for the present year. REPORT OF THE POSTMASTER-GENERAL. 835 BLANK AGENCY. Some time prior to my report of last year this division of the depart- ment was detached from this bureau and assigned by the Postma.ster- General to his oflice; hence no estimates were then prepared bj' me for its appropriations. The division ha^ing been since restored to the oflice of the First As- sistant Postmaster-General, the estimates for its service are again sub- mitted by that officer. WRAPPING-PAPER. The estimates, appropriations, and expenditures for this article for the two past fiscal years were as follows : Estimates Appropriations Erpenditures.. 1880-'81. 1881-'i*2. Increaoe. D«oreai>^. Per cent \ Per cent $20,000 00 I $20,000 00 ...., ! 20.000 00,1 2Moooo!| 2,1 24,900 00 I ia,9:i3 59 19.70 The appropriation for this item for the current fiscal year is $22,000, or 10 per cent, over the expenditures of the last year. In anticipation of a deficiency for this article during the i)ast year, an additional appropriation of 85,000 was asked for. It was not given, however, until very late in the session (August 5, 1882), and consequently was not available during the fiscal year. It will be observed that the expenditures for the fiscal year 1880-'81 were $1,000.51 greater than for the last year, which was owing to the greater demand by postmasters for wrapping-paper, and a higher contract i)rice for the article. To meet the possible increase in the i)rice of wrapping-paper, and to provide for the additional deniand, esi>ecially for i)r()porly preparing packages of registered matter and merchandise for mailing, I have esti- mated the ai)propriation requisite for the fiscal year ending .June 30, 1884, at $25,000, or the same as the total amount granted last year, and an increase of 13.03 i)er cent, over the inesent api)ropriation. WRAPPING-TWINE. The following were the estimates, appropriations, and cxpiyuliturca for this item during the two past fiscal years: EMimatcs Appropriations. Expondiiiiit«... 1880-'81. $.in, 000 00 r..'i, WK) 00 £4, GU3 3S 1861-82. t.U, 000 00 6.-.. (100 00 62, TVt 04 D«creM«. Per etnL 37.64 The appropriation for the i)resent fiscal year is $55,000, or the same as for the i)r('ceding year. It is also an iiu-rease of 4.25 i)er cent, over the expendilnres for this article for t]u>, last fiscal year. It will be noticed that th<' expenditures for the year ended June 30, 1S.S1, were !if3I,84S.74, or 00.37 i)er <'.ent. iu excess of those for tl'e past year. This was mainly due to the high contract price of the article as compared with previous years. Hence it will be seen that an estimatt; cannot easily 1h^ made, for a commodity which is so liable to lluetuate iji value, but 1 mibmit the same estimate for the year ending June 30, 1884, as for the last year, 836 PAPERS ACCOMPANYING THE *.j5,()00, iu the liopc tliat it will ho, sndieient to covor all contingencies. Tliis iiiiiountis tlic same as the ai)])ropriatioii for the present year. makkinCt and hating stamps. The estimates, appropriations, and expenditures for these articles for the past two fiscal years were as follows: ICstJniatos Appiopi-iatious. Expendimres... 1880-'81. 1831-'82. Increase. $15,000 00 13, 500 00 13, 499 50 $15, 000 00 15, 000 00 14, 144 30 $1, 500 00 644 80 The appropriation for these items for the current fiscal year is the same as for the last one, $15,000, and exceeds the expenditures for the past year in the sum of only $855.70. The expenditures for the fiscal year just closed Avere but $644.80 greater than those for the year previous. It will therefore be perceived that the reeent appropriations for the above articles have not been at all extravagant. I have estimated the appropriation necessary for these items for the fiscal year ending June 30, 1884, at $25,000, an increase of $10,000, or 66f per cent., over that for the present year ; and have done so for the following reasons: By the postal regulations it is necessary that the gross receipts of a post-office should be $50 per annum to entitle it to receive a letter bal- ance and a marking and rating stamp at the expense of the department. This regulation has been productive of much inconvenience both to th.e postmaster and the public, and has undoubtedly been the cause of con- siderable loss of revenue to the department, from the failure of the postmaster to properly weigh, rate up, and cancel the postage-stamps upon the mailable matter deposited in his office. The number of post- offices so deprived of these facilities for postal business is estimated at 10,000, and at these offices such stamps as are used have been paid for by the postmaster. The Postmaster-General having called the attention of Congress to .this matter, an appropriation of $35,000 was made at the last session for the purpose of partially remedying it, and already under the law about 8i0 fourth-class offices have been supplied "with the necessary implements for canceling stamps and weighing and postmarking mail matter," the limit being the value of $5 to each office. Itemized, this expense is about as follows: Scales §2 80 Stamp 70 Pad J... GO Ink 40 Total 4 59 The above appropriation for this purpose will therefore supply about 7,000 post-offices, and it is with a view of furnishing the remaining 3,000 with these implements, and also supplying all new offices with these materials, that the increase of $10,000 is in part asked for. Postmas- ters at many of the larger offices also frequently request to be furnished ^vith new marking and rating stamps, in consequence of the old ones ;having become damaged or inaccurate. Ordinarily these stamps have Jto be renewed in all offices after from two to four years' use. REPORT OF THE POSTMASTER-GENERAL. 837 The following were the estimates, ap])ropriations, and expenditures for these items for tlie two past fiscal years : Tstitnatcfl Appropriations. Kxpenditures... 1880-'81. $10. 000 00 8,000 00 7,997 80 1881-'82. Increase. Per cent lO.OOO'lX) , 25.03 $10,000 00 10, 000 00 2:>. 00 Tbe appropriation for these articles for the current fiscal year is $lo,000, or 50 per cent, more than for the previous one, and it is like- wise 50 per cent, more than the expenditures for the past year, which exceeded those of the fiscal year 1880-'81 in the sum of $2,002.20, or 25.03 per cent. In my remarks above in connection with a largely increased estimate for the articles of marking and rating stamps, I have substantially as- signed reasons why a much larger ai)i>i-opriation should also be made for letter-balances, scales, and test- weights. I therefore consider further explanation unnecessary for submitting an estimate of 825,000 for these items. This is an increase of $10,000, or 06»j per cent., over the present appropriation, and, in my opinion, is fully justified by the benefit ex- pected to be conferred upon the department if it shall be given. INK FOE STAMPING AND CANCELING PV EPOSES. This item has not been before included in the regular estimates. In pursuance of the policy adopted at the last session of Congress with reference to fourth-class offices, alluded to above in my estimate for marking and rating stamps, I am of the opinion that it should here- after be annually mentioned as necessary. In order, therefore, that i)ost- offices now denied this article at departmental expense may be supi>lied therewith, I have to suggest that $10,000 be asked for this item for the next fiscal year. In this connection I desire to say, that of the many articles u.sed by postmasters in the transaction of their business, none is of cerior urpose. Un, to be used iu all post-offices, .such 838 PAPERS ACCOMPANYING THE action would bo of inestimable benefit to the department. I hope that you will take occasion to rocoinuiend that this be done. PADS FOR STAMPING AND CANCELING PURPOSES^. This item has not before been estimated for in the nsual manner. The provision made for their i)urchase at fourth-class offices, referred to under the head of marking and rating stamps, necessitates an estimate for them for the next fiscal year. I suggest that $10,000 be appro- priated for these articles, as they are a necessary accompaniment wherever stamping ink is used for canceling purposes. DEPARTMENTAL PRINTING, BINDING, ETC. The estimate for this item for the next fiscal year has been prepared in this office, and forwarded by the Postmaster-General to the Secretary of the Treasury, in accordance with the previous i^ractice. DEPARTIMENTAL STATIONERY. The estimate for this item has been prepared, and will be addressed, according to custom, to the Postmasfer-General, who will include it in the statement to be submitted by him relative to estimates for other departmental expenses for the next fiscal year. The aggregate of the above estimate is, as before stated, $19,369,091.25, which is $2,227,091.25, or 12.99 per cent., more than the appropriations for the current fiscal year. A tabular statement, marked E, will be found appended to these esti- mates, giving further information in regard to them. SUMjMARY. Estimate for 1881-'82, $15,135,000. Estimate for 1882-'83, $10,777,000; increase, $1,642,000, or 10.80 per cent. Estimate for 1883-'84, $19,369,091.25; increase, $2,592,091.25, or 15.45 per cent. Appropriation for 1881-'82, $16,257,206.88. Appropriations for 1882-'83, $17,142,000; increase, $884,793.12, or 5.44 per cent. " Expenditures for 1880-'81, $15,138,650.66. Expenditures for 1881-'82, $16,141,035.31; increase, $1,002,384.05, or 6.62 per cent. In closing the above statement, it is proper to say that unless the original appropriations for the j)ast fiscal year had l3eeu, in some in- stances, considerably increased by subsequent legislation during the last session of Congress, the postal business, so far as the allowances of this bureau for the service are concerned, could not have been con ducted so satisfactorily as it has been. I hope that an equally liberal spirit will be manifested by Congress in the consideration of the present estimates, and that there will be no hesitation among the members of that body in doing ail that seems reasonable and proper to aid in pro- moting the etlicieucy of the postal service by granting the eularged appropriation asked for. Yery respectfully, FRANK HATTON, FirsUAssistant Postmaster- General. Hon. T. O. Howe, Postmaiit&rji.GsimJil. SEPOST OP THE POSTMASTER-GENEHAL. 839 "jS (► — SB Si? 2-2 M oooo oooo oooo O O z; o ooiai.-; oo't-'tT it M ooooo o o ooo o«oe ooooo ooooo ssass O M o oooooo o oooooo §oo oo o o oooooo oooooo O O ^C] U^OC4 t^ tA o ta w ooooo g8§ ooo O I- U CoodD 00 t» M O tH rt t- 00 « o n a> 00 ^ 'o oo^c« 3oo c2 "If ■^ ooo® OCOC4C-0 1-- — ^ o o> O t*0 ID o> i-Too'otrcr O C4 « O i-l 300 coo t^rlO pr-^o" ^ oooooo oooooo oooooo oooooo ooooo ooooooooe ooooo OC-J o o o cr. o o o 00 ^ 00 ^ o §§§§ -, _ ^oooooOo Oooooooooo «"o"o"o"o"o'«>'0*«ri"o" cj c) C4 is o ri irt "^ t-t si ■ot-mioo oooo -^ i-t f-4 ifoooo o ^o e-5 cc o IM O O O -T OOi-I^OOM 32' c- ci" Bo . S a I^ 3 V * ii r2 u S ^^2 2 2^1 s n, IfS o a a 11^ 5 5^5^1 it ^ SjBfcE o o o o areG,0(M). It is estimated that $100,000 in addition to that service, or .Sl.G2(),000, will be sufficient for this item for 1884. SPECIAL FACILITIES. The appropriation for "special facilities " on the fp^at lines for tke current year is $600,000. It is not clear that the discoiitinuiHice of the service secured by this expenditure would not result in injury to the puljjlic, and for this reason I suji:gest that a like sum, $000,000, be api)r<)priated for this item for 1884. MAIL equip:\ient. The expenditures for Miail-baos, mail-oatchers, and mail locks and keys, and the necessary repair of the same, absorbed the en tin* appro- priation for these items, $200,000 and $25,000, for the year ending; Jun«* 30, 1882. The rapid extension of the radroad system, the iucreased frequency of mails on railroad routes, and the large number of i)ost- offices established on such lines render an increase in ajjproprifitlon necessary for 1884. The estimate is therefore placed for mail bikgs and maU-catchers at $220,000; mail locks and keys, $20,000. RAILWAY POSTAL CLERKS. The amount provided for railway i)ostal clerks for the current year, by act July oL, 1882, is $371,000. The rate of increase for the past six years has been 7.20 i)er cent. Kstiiniitini^'the cost upon the same basis, the amount required for 1884 will be $3,077,120. REf ' \PITIL ATION. For star sorvico S-'), ri0. 000 For iiiail-l>a;;s and mail-catchent _. 2"?0, CmiO For mail locks an AGKXCY. For pay of agent and assistanta to distribute postal cards, and for ezpensM of the agency $7,300 00 Tliis estimate agrees with the present appropriation. VII.— llEGISTEKKD-PACKACi:, POST-OFFICK, AN1> OKAD-LKriKK ENVKLOPK.S. For registered-package, post-oQlce, and dead-letter envelopes $140, OtM} 00 The registered-package envelojies are large manila enveloi>es use«l for inclosing registered letters and other registered matter for safer transmission j the post-ollice envelopes are for the u.se of postmasters iu ^44 I'APKiiS ACCOMPANY IN'C THE their oflicial coiTes])oncleiic(', aixl tlie dead-letter envelopes are used for rotiiininf;' letters from tlic dead-letter office to tlie writers. The coti- tiact for these en\'e!opes i^ awarded ibr one year only, bej^i lining on the 1st of July of each year, and ])iesent i)riees therefore afford no abso- lute criterion iu making estimates for future appropriations. The prices for the year ended on the 3()th of June last were unusually low, so that the issues cost only $72,474.53. At the prices in tlfe contract for the present year the same issues would have cost $98,173.83. The total number of these various kinds of envelopes issued during the fis- cal year ended on the 30th of June last was 35,581,550, an increase of 0,783,100, or 23.5 per cent., over the issues of the previous year. At the same rate of increase for the present and next fiscal years the issues for the year endinp' June 30, 1884, would number 54,269.809, and would cost, on the basis of existing contract prices, $149,737.17. Allow- ing for an increase.of 20 per cent, in the issues, the cost at iiresent prices would amount to $141,370.31. The major portion of the appropriation is expended for envelopes for registry business, and for several years past this service has been increasing very nearly at the rate of 20 per cent, per annum. It is projier to say that the contract for these en- velopes, like that for stamped envelopes, has been awarded to the lowest bidder, after public advertisement, and upon samples furnished by the department. The estimate is placed in even figures at $140,000. The ajfipropriation for the current year is $110,000. VIII.— SHIP, STEAMBOAT, AND WAY LETTERS. For sliip, steamboat, and way letters $1,500 00 By law (sections 3913, 3976, 3977, 3978, Eevised Statutes) this appro- priation is necessarj^ for the payment to masters or owners of vessels not regularly engaged in transporting the mails, for letters brought and delivered to post-offices on arrival in port for transmission to destina- tion. The parties receiving the letters are required to pay, in addition to the regular postage, the amounts paid to said masters or owners, which amounts are consequently refunded to the department. The expendi- ture for the last fiscal year was $1,444.38, for 1881 it was $990.95, and for 1880 it was $1,355.51. The appropriation for the current year is $l,500j and the estimate for the next fiscal year is placed at the same figures. IX.— ENGRAVING, PRINTING, ^VND BINDING DRAFT,? AND W.VRRANTS, For engraving, printing, dud binding drafts and warrants $2, 000 00 This appropriation is for the purchase of warrants and drafts used for payments to creditors, transfers of funds to and from postmasters, and collections of balances due the department. The warrants and drafts are prepared and furnished by the Bureau of Engraving and Print- ing of the Treasury Department. The expenditure on this account dur- ing the last fiscal year was $1,644.35; and iu view of the manifestly in- creasing needs the estimate for the ensuing year is placed at $2,000. X. — AnSCELLANEOUS. For miscellaneous items $1,000 00 This estimate is for the same amount as the approi)riation for the current fiscal year. REPOKT OF THE POSTMASTER-GKNKRAL. 84rj Comparison of api,roprialioiis for the office of the Third Assislaul rosimasi^r-den&ral lor the year ciulhig June 30, lH^o, with esiimntcf: for the ijenr ending June 30, 1684. Items. Adhesive postage-stamps Postajrc-stamp agency Stamped-envelopes and wrappers Stamped envelope agency Postal cards Postal-card agency Itegistered-package, post-ofBce, and dead-letter envelopes Ship, steamboat, and way letters Engraving, printing, and binding drafts and warrants Miscellaneous Total Amount appro- < Estimate for priated vear I year end- eudinz Jane uig Juno 'M, 1883. 30, 1884. $100,000 8,100 547, 000 16, 000 242, 000 7,300 110, 000 1,500 1,500 1,000 1, 043, 400 $130, 000 8,100 ft?2, 0(X) 16,000 253, 000 7,300 140,000 1,500 2,000 1,000 Increase of estimates. AmooDt. I Percent. 121,000 l,190,'J7r> Number of postmasters', assistant postmasters', and clerks' oaths received, in- dorsed, and filed 2T,r>-lO Number of bonds and oaths returned for correction 2, Wl Number of bonds examined and passed for commissions 11,978 Number of bonds filed 12, H'() Number of Presidential cases for which appointnu-nt papers were forwarded.. rt2<) Number of circulars sent fo postmasters accompanyingnew bonds 2,249 Number of circulars sent calling for the execution and return of new niouej'- order bonds 4.'>0 Number of circulai"H sent for appointmonta, establisbmentf*, change of namivt, and sites, and discontinuances 22, 408 Number of copies of jxtsf ill laws and regulations forwarded 3, '.•.'i7 Number of new Itouds sent to postmasters on report of post-ofllco inspoctorii .. HO Number of clerks in tlio division .^. 13 The increased amount of wofIc in this division necessitated a partial rearrangement of the clerical force during the year. The duties of each clerk were made somewhat more s]>ecirie, and the elianges liavi>, jtrovetl to be very beiielieial. The hibor of tlui division is now |)ei(brnifd moi-e acceptably than at any ])revious time, and with more con\enieuee to the clerks of other jiortions of tlie depart metit who have occasion to refer to the records of tlie division. Accompanying this report will Ite found tables marked A and B, giv- ing additional information concerning the operations of the appointment and bond divisions. 848 PAPERS ACCOMPANYING THE THE FREE DELIVERY SYSTEM. Tljis system employed diuinj? the year 3,115 letter-carriers in 112 of tlie principal cities, being an increase of 254 carriers and of 3 free de- livery offices, viz : Augusta, Me., Burlington, Vt., and Concord, N. H. The total amount appropriated (inoludiug a special appropriation of $25,000) was $2,625,000 against $2,500,000 ior the preceding year. The total cost of the service was $2,023,262.74, leaving $1,736.26. The increased cost of the service as compared with the preceding year was $123,351.20. POSTAGE ON LOCAL MATTER. The aggi'egate postage on local matter at all the free delivery offices was $3,816,576.09, being $542,945.70 more than for the previous year, and $1,193,316.45 more than the cost of the service ; a per centum increase in postage on local matter of 16.50, and 4.93 increase in the cost of the service. The average cost per piece of handling matter was 2.3 mills, a de- crease of one-tenth of a mill as compared with the preceding year. The average cost per carrier (computed on pay of carriers and incidental expenses) was $835.75, a decrease of $37.79. It should be observed in this connection that the expenses are com- pared with the postage on local matter alone, which constitutes only about 33 per cent, of the matter handled by carriers, and that while frequent deliveries and colleotions, affording means of speedy receipts and reply to letters, largely increase local correspondence in populous centers, they no doubt increase the number of mail letters as weU, for which this service receives no credit. These facilities preclude com- petition from private enterprises and lead the bulk of correspctodence into the post-office. Large private express companies, through which local correspondence was principally carried on in l!few York and Phil- adelphia, when this service was established, and for several years after- wards, have been discontinued by reason of the greater and cheaper facilities afforded by this mode of delivery. While this service meets the general demands of business and social life, it falls short of meeting the urgency required in cases of emergencj;^ and hence has grownup the American Messenger Service in our princi- pal cities, which dispatches letters on the instant by boys employed for the purpose at small compensation. This competition can only be met by using the same means and methods. As these companies are becom- ing more formidable year by year, and hence it must be assumed that their business is remunerative, it is recommended that steps be taken to procui^e the necessary legislation, and that the experiment be tried in in one of the large cities. Should it prove successful it may then be extended to other cities. Additional information concerning the operations of the free delivery division will be found in the table marked C, appended to this report. SALARY AND ALLOWANCE DIVISION. BIENNIAL ADJUSTMENT OP THE SALARIES OF PRESIDENTIAL POSTMASTERS. In accordance with the law the biennial adjustment of the salaries of Presidential postmasters, or postmasters at offices of the first, second, 'and third classes, was made ujjon the basis of the business at their re- spective offices for the four quarters ended March 31, 1882, the salaries being fixed to take effect from July 1, 1883. REPORT OF THE POSTMASTER-GENERAL. 849 Two thousand and twelve adjustments were made, an increase of two hundred and forty -eight, or 14 per cent., as compared with the previous adjustment. These returns, coming- from postmasters from all parts of the Union, showed a very gratifying and general increase of business, especially in the West and South; and the additional sum necessary to i)ay the in- creased salaries of postmasters, including three hundred anfoG3,46o, or 18.14 per cent, more than last year. Work done and amounts allowed in the salary and allowance division during the year. Items fiscal year 1881-1882. Nunilier. Amounts. Number of letters received Number of letters written Number of circular letters sent out Number of allowances for clerk hire made Number of allowanccH for clerk hire ileclinetl Number of allowances for rent, fuel, and lifiht made Number of allowances for rent, fuel, and li^ht declined Nnmber of allowances for miecellaneous itt-ms made Number of allowances for misi (llaneous items declined Number of allowances for furniture ma8 ' 13..W;i 2. 'J80 «3, 008, 396 00 1,694 490 401,978 04 171 3,177 68,594 7(! 85.1 I •J.">8 I 20. 710 04 244 ' 2,628 56,517 28 918 21 5,990 50 180 ' 2,542 ""*563," 400 66 192 i U5 I 787 ' 5 I 910 00 17 ! 370 40 a 3:i ' 313 ' 29 2.486 n 26 6,091 00 8 .313 25 15 131 47 4 'Increase as compared with past fiscal year. In addition to the above a largo amount of routine and special work was performed duving the year. This is one of the most important divi.sion.s of tlii.s (dlicc, and among the duties assigned to it are the supervision and the adjn.stment of the salaries of Presidential i)ostmasters, or postma.stcr.s at oniccs of the first, second, and third classes; the examination of the (piartcrly returns or accounts of the said postmasters before they are liiially passed by the Auditor of the Treasury for the Post-Onice Department; the consider- ation of applications for allowances for cleric hire, rent, fuel, light, sta- tionery, furniture, ami inis(u'llaneous exi>en clerical ft)rces necessary for tlie juoper transaction of the postal hiLsiness in the larger offices. I have endeavored dining the jiast year to increase the efficiency of this division, and extend its oix'iations to some details in ])ost-oiliee matters proi)erly within its sphere, but to which attention had not liere- tofore been .syst<'niatically directed. This has been paiticnhiily the case in the matter of revenues derived from box-rents. 1 found the metho«l of collecting and accounting lor such moneys very imperfect, owing 54 Ab 850 PAPERS ACCOMPANYING THE largely to the indifferoncc and carelessness of a large number of post- masters in making returns for the same; and in order to correct this evil a new system has been adopted, Avhicli was put into operation July 1 last. Under the new system each postmaster at offices of the first, second, and third classes is furnished with a small book, with necessary blank receipts with stubs to correspond, and when a box or drawer is rented the renter receives a receipt for the amount paid for the same, and the stub, when filled out and returned with the sworn statement of the postmaster at the end of the quarter, serves to show to the Auditor the name of the person renting the box or drawer, the number, and the amount of rent i^aid for it, and the tiuie for which it was rented. This plan is in my opinion a great improvement upon the old one, and it has already been found to work advantageously both to the patrons of the offices and the department, and therefore an increase in the revenue from this source may reasonably be expected in the near future. A more difficult matter in this connection I have found to be the perfecting of an arrangement or scheme by which the box-rents at the larger offices shall be adjusted or equalized so as not to do injustice to the patrons nor deprive the department of a proper equivalent for the benefits extended; and I hope, in a short time, to find a solution of the matter which will give satisfaction in each city, and, at the same time, materially contribute to an increase of the receipts from this source. Heretofore this matter has been left to the discretion of the postmasters, with only a partial supervision of the department. As you well know, a great difficulty has always been experienced in regulating the different allowances, especially for clerical services, in many of the larger offices, so that no injustice would be done to any of them; and the business of receiving and dispatching the mails would, at the same time, be properl}^ performed. During the past year, in order to overcome this difficulty, whicli ig greatly increased in consequence of the unexampled growth of postal business at many of these offices, and the consequent necessity for ad- ditional allowances for clerk hire in them, you directed the formation of a commission, to be composed of individuals experienced in postal matters, which should visit the post-offices of the principal cities in the North, East, and "West, for the purpose of examining, among other things, into their arrangements for the dispatch of business, and also the necessity for present and future allowances for clerical service. The duties of the commission were performed under my direction, and, it aftbrds me pleasure to state, with the most satisfactory results. The commission found an inequality in the salaries paid in the different offices for the same class of work. It was also found that salaries were fixed with a view to the parties holding positions, and not with a view to the duties and services attaching to the places. In many of these cases the salaries were considered too high; and, in order to do justice to the overworked and underpaid employes, reasonable reduction was recommended, and, in a few cases where places were found to be mere sinecures, they were abolished altogether, the total amount of such reductions in the eight post-offices visited being $54,530. In many in- stances, also, the salaries of industrious and valuable employes were increased to correspond with the importance of the work performed by them. EEPORT OF THE POSTMASTER-GENERAL. 851 LEASE DESK. Tho specific work of the clerk assigned to this desk for the past year may be summarized as follows: Number of leases prepared 33 Nnmber of letters written tJOC Number of cases referred to the chief post-oflice inspector for investigation and report 88 Number of (puries relative to tbo leasing of buildings for post-oflices and sta- tions sent out 3Q Number of post-oflice leases, including leases for stations, in operation in the largo cities 3i;{ Much other clerical service was also performed by this clerk, uamely, for the salary and allowance division. In accordance with law no allowance is made for rent excei)t at offices of the first and second classes. Since 1 took char^^c of (he bnreau I have given the matter of leasing buildings lor i)ost-oflices my most careful attention, and endeavored in every case to procure the most suitable and central buildings, with the best e.'»(l Books for records of post-oflico busiiu'ss '*'i, T9:t FaciufX ulijis for ratinj^ up pattkafjeH :!•.•, TJ(i, (kKl Marking and ratiiiEc stamps of all kinds <">. •'"'•''.' Jnte twine (pounds) \V\, U^i Hemp twine, (i)oiinds) lli'i, JIR' Cotton twino (pounds) ;"», "lUJ Letter balauccs and scales '2,(V2\ Wrappiuf^-paper (reams) 13, ^^21 The total appropriations and exix-ndifuros fur the aWiAc articles for the fiscal year were as follows : Appropriations >lo.'>, «)00 iHi Expenditures '.MJ.K^i f>;'. Leavini)r()piiatioii.s for it be hereafter made as follows : For superintendent, $2,250 ]»er annum; one elerk class 4; one clerk class 3; four clerks class I; one clerk at $1,000 per annuui ; two clerks at $900 per annum; two assistant messengers; three laborers. In all, fifteen employes. This will be an addition of two employes, one as superintendent, at $2,250 per annum, and one assistant messenger, and in amount of sal- aries $2,970 more than is now appropriated. This change would, in my opinion, plac^ the division upon a better footing than it is at present, render the bureau more comi>act, classify all its employes to better advantage, and promote the interest of the service. LETTER-BOOK CLERKS. The number of letters recorded during the i»ast year by the two clerks assigned to these desks was 24,414. During the'same i>erioossible regarding the necessary fa- cilities which should be provided by law for the transaction of business to the greatest ajlvantage to the public. I have sought to find how far the present methods of conducting the business were deficient, and what aid could beaflbrdedby additional legislation. This office now comprises in its i)ractica[ operations six divisions. They are the ai)pointmeut, the bond, tlie salary and allowance, the free delivery, the blank agency, and postal laws and regulations. Of these divisions there are three through which disbursements are authorized. The salary and allowance division is charged with the dis- bursement ai)i)roximately of $5,000,000. The free (lelivcry division superintends the disbursement of $3,500,000. The blank agency has charge of the expenditures for printing, binding, stationery, »S:c., amount- ing for the past year to $325,000. Of all the six divisions only two of them have Chiefs recognized by law. Their designation and salaries are as follows: Superintendent free delivery, $2,100; sui)erintendent blank agency, $1,S(M>. The other four divisions (appointment, postal laws and regulations, bond, and salary and allowance) have no head or chief re»-ognizeil by such a term in the law making api)roi)riation Ibr this ollice, but the business of these divisions is supervised within this (tllice through a clerk of the fourth class ($1,.S00 per annum), who is assigned to such duty by me. Now, whih; my ex])erience hassatislietl me thai the work is ])erfbrme\ l:i\v. 856 PAPER8 ACCOMPANYING THE with salaries advanced abov<' that of the ordinary clerical force of the de])artiiient, and with duties that could be clearly defined l)y the head of this oliice. This personal resi)onsibility, with tlie feelinj;" that there is a recognition of the special ett'oits made by such cliiefs of divisions, will secure greater earnestness in the discharge of duty, and the ])roper increase of salary in sim])le justice to those who are so placed in charge of the various divisions. These considerations luue induced me to urge that you should espe- cially call the attention of Congress to the propriety of reorganizing the. office of the First Assistant Postmaster-General, so as to create by law divisions to be known as Appointment, Bond, Postal Laws, and Kegu- lations, and the Salary and Allowance, with salaries to the chiefs of such divisions of $2,250 per annum, and the salaries of the superintend- ents of Free Delivery and of what has heretofore been known as the blank agency should be increased to that sum. The latter division, in my judgment, would be more properly designated as the division of post- office supplies. If this latter division were recognized by law as belong- ing to the office of the First Assistant Postmaster-General, its adminis- tration would be regulated by the orders of the head of this office, and the clerical force supplied, promoted, or diminished, as the exigencies of the service required; whereas it now needs the specific authority of Congress for any increase of the clerical or laboring force of the blank agency. I feel assured that if these recommendations should be adopted by Congress it; would result in very great benefit to the public service, by promoting discipline and increasing efficiency in the clerical service, which cannot be fully secured without thoiough organization in a de- partment covering so vast an extent of territory, and so intimately related to the daily life of every citizen, where uniformity of adminis- tration is of vital importance. It is essential that the lines marking the duties assigned and fixing the jurisdiction of every division of this office should be so clearly drawn that all correspondence can at once be referred to the division to which the subject-matter is assigned. There is nothing that produces such irritation in the public mind as a feeling that through the ijostal service absolute equality of rights and privileges is not accorded to every citizen, and unless the chiefs of each division can be assured that the duties which they are called upon to discharge are clearly and distinctly within their jurisdiction, and that they alone are responsible to the head of the office for their discharge, it is impossible to avoid inharmonious rulings and irregular administra- tion over such a territory as is covered by the postal service. STATIONEEY FOR TOST-OFFICES. Under the present regulations, stationery for use in post-offices of first and second classes is now purchased by postmasters at their offices in such quantities as are supposed to be necessary, without application being made to the department. The bills for stationery thus purchased by postmasters, if not consid- ered unreasonable, are allowed in this office and approved and passed by the Auditor. As a consequence of this rule, the i)rices returned for stationery by the different postmasters vary considerably, frequently for similar articles, and the quantities used often seem excessive. The expenditures for this item during the last fiscal year were $56,517.28, many of the articles being for the use of post-office inspectors and for superintendents of the railway mail service. REPORT OF THE POSTMASTER-GENERA J. 857 The estimate for the same lor the next fiscal year, which has been submitted in the reguhir way, is $<>o,000. The estimate for the department stationery for the next fiscal year will probably be $15,000. I think it would be d ecidedly in the interest of economy to unite the two items ; to advertise for bids for the supply of such stationery jis is needed for the department and for post-ofilices, and when procure*! dis- tribute it only in moderate quantities and not unless applied for. This, in the main, is the present practice, so far a.s the departmental station- ery is concerned. If this chanj;e should be ordered by you, authority would have to be given by Congress for employing three or four more elerks in this oftice to attend to the increased business; but as the stationery could then be contracted for in large amounts, I liave no doubt it would l)e juo(;ured cheaper than by the present method of paying the current retail rates where each postmaster purcliases separately. As it is my desire that the expenses of this bureau should be reduced wherever practicable, I hope the suggestions in regard to this matter will meet your approbation. In concluding, permit me to say that it is my conviction that the changes which have taken place among the em]>h).ves in this olKce dur- ing the past year have resulted in material benelit to the service, and that the labor which the clerical force has been called ujMjn to perform, always large, various in character, and requiring promptness and lidelity, has been, on the whole, satisfactorily attended to. Further. I sincerely hope that the foregoing difterent statements relative to the (lisi>osition of the appropriations intrusted to this bureau, the establishment and discontinuance of i)ost-ofticevS, the extension of the free delivery service, the benefit derivedfrom the postal commission, and the various other mat- ters refen-ed to, will convince you that the duties devolving upon me have been performed with a desire on my part to deal fairly and justly with all sections of the country. Very respectfully, FRANK HATTON, First Assistant Postmaster -General. Hon. T. O. Hq-wt:, Postmaster-Qeneral. 858 PAPERS ACCOMPANYING THE A.—Statical year ended June 30, lti62. 861 Cost of service (iucluding iucidental expeusei<). Si •1,765 71 10. 9C9 47 n, .113 5t ^,W0 06 •_', 495 04 1,920 JW 717 «•-» 50,075 20 I. 423 86 1,540 52 28>«,049 13 3, 300 54 196. 533 54 20, 8)5 D8 3,464 06 1,475 8U 2, 4a'; 10 3, 490 75 38:», 716 43 81,391 28 50, rj7 4.-1 6, 288 40 1,400 01 008 10 2,313 13 2,415 00 6,296 57 12, 722 21 5,112 99 22.995 11 1,723 83 2,048 86 3, ViX 31 2.338 37 4,064 10 1.711 00 2, 575 77 3,209 03 2, 168 18 6,553 46 2,787 68 11,150 13 1,272 91 1.750 97 II, 573 41 1.339 72 7.402 44 12, 656 30 1,399 61 1,531 34 2, 757 73 1, 252 63 880 75 2,914 25 23,093 50 4,645 20 3, 101 67 1,026 38 1,896 92 1. 245 05 4,012 ti7 3,T.'7 41 22.105 06 8,683 52 2,0M 16 5, r3 24 16, 024 C6 2. 573 29 15. 740 M» 10,221 M 1. 620, wn :i5 3,141 00 862 TAPERS ACCOMPANYING THE C. — Statement of the ojyerationa of the free-delivery Post-offices. Cfi & o o a 'A < C< < (W ^ 407, 985 119,230 82,117 2,315,382 231,538 $7. 642 41 3.3 $764 24 12.357 35 474, 985 273, 918 77. 077 3, 7(12, 369 308, .-.31 8 937 49 2.4 761 46 S60, 25(5 124, um 50, 385 1,506,089 2.il,015 5 116 17 3.4 852 63 1. : . 415, 120 156, 128 105, 392 2. 729. 473 272 947 7 146 51 2.6 714 05 .'i. 727, 627 232, 227 122, 309 2. 9o 179 38 2.5 797 71 2, 1 ■! I'- 331, 8*5 213,301 3J, 740 1 , 683, 908 28U, 651 4 071 72 2.8 778 62 ll-.' 4 3 400 00 2.5 850 00 687, 090 147, 592 110,236 2,401,017 343,088 5 971 95 2.5 853 14 1, 563, 392 490,664 171, 836 0. 277, 874 202, 512 26 412 43 4.2 852 08 1r- < 449, SoG 212,!»35 41.137 2,651.680 331,461 6 732 87 2.5 Ml 61 2. " 4.i9, 751 223, 854 52, 144 2, 634. 220 263. 422 S 491 39 .3.3 ft49 14 3 298, 550 121,733 108,116 1,. 567, 913 261.319 3 530 94 2. 2 588 49 1. 966, 385 389, 065 131,. --uS 4. 6C4. 060 259.114 14 400 08 X\ 8(J3 :« 5 1, 792, 810 541,690 282. 053 9. 960. 537 34:J, 407 24 385 51 2.4 *\(s U \f'. 288, 421 57, 392 31,538 1, 077, 446 215. 4H9 4 770 96 4.4 9.>4 19 1. 1, 032, 829 405, 389 184. 096 4, 682, 223 4G<>.2J2 7 610 27 1.7 761 03 5. :..: .'I 8, 864, 219 3, 275, 924 2, 252. 277 41,665,249 325. 510 119 647 59 2.9 934 73 W. .'■•■! c 1, 762, 185 546, 985 171. 993 7,117,207 :::>:<, 865 13 9.53 25 1.9 697 66 8. li'-. M, 302, 619 94, 125 65, 147 1,600,317 2-.'8,617 5 239 13 3.3 748 45 i.;r; .. 7, 453, 551 1, 639, 282 1, 546. C21 23. 046. 513 365. 822 61 6:.0 81 2.7 906 63 61,;'. • :- 605, 245 199, 917 91.924 2, 197, S.'-O 274. 7:ui 5 900 00 2.2 737 .50 0, i ■ : ; 255, 082 127, 945 55.976 1, 872, 025 267, 432 5 230 05 2.3 747 15 1 417,710 147,391 55, 118 2. 349, 589 293, 699 6 802 10 3 8.50 26 .5 208, 386 94, 408 28, 951 1.763.615 251, 945 192 75 3 741 82 2. ■ 999, 069 403, 674 156, 762 6, 153, 348 307, 667 15 203 58 2.5 763 18 >-. ;• ; 1 641, 512 354, 063 236, 450 3, 043, 160 3.S0, 3'.»0 6 356 15 2.9 7!M .52 2. 1' - \ ' 1, 286, 738 553, 007 302, 809 5, 800. 991 3^6. 733 12 955 85 2. 2 86.3 72 5,. ; 1 636, 696 216, 867 65. 509 3, 032, 330 .505. 390 4 499 88 r5 783 81 3, ;»■ .' ■■•■ 460, 646 36, 091 28, 741 1,6,59,478 207, 435 5 528 21 3.3 601 03 3, '.':'- 'il 2, 059, 080 621, 301 573, 918 8, 283, 122 460. 173 13 973 81 1.7 776 32 11. I- . '". 963, 148 406, 139 126,680 4. 037, 691 :C0.474 10 286 2« 2.5 8S7 19 4. ;- ' 7! 2, 996, 525 887, 439 674, 341 13, 528, 453 221,777 48 477 99 3.6 7M 72 2«i, 7 ' :". 716,014 268, 737 105, 434 2, 800, 520 280, 652 6 063 43 2.4 666 34 2, . - ' " ■ 471, 940 195. 628 31,061 2, 620, 335 262, O.-il s 5«-.2 .53 3.3 856 V> 4. 7:'. <■- 499,549 ]y4.!-S7 43, 553 2,919,104 224, 5-tr, 10 IMS 90 3.7 842 23 6. " ■ 295, 991 157, 006 107, 102 1, 519, 829 305, 960 3 469 62 2.3 G03 92 1, •• 1 • -■ 808, 352, 819 09, 421, 132 61, 7?2, 814 1,143,018,887 367, 455 2,617 5 574 5« 6t)8 18 2.3 835 75 3.810,576 09 2, 623, 262 74 864 PAPEKS ACCOMPANYING THE ITS « re* ^ go •S 2:. o p. •ot> X 9r. I s n •SS >< 05 00 •eipq pjBa r-l §3^ ^ — •Bpanod 01-5 '^ m to M •epnnod gg C5 o — •spnnod f § g •saonno g o ■«1" o o g in to c •uo^^oo o t- t-t- o" r1 •* t- •* •draojj 1,144 1,200 1,801 1,171 1,109 4,074 4,160 2,900 2, 850 1,644 1, 920 3,560 12, 990 00 •a^iip CCOi-tOOOOOOO co" o o" ccT cT o* cT o" co" C'i" o" §2^ o oo o 5 » o o o to a 35 •9d^^-|B;ajt O ?2 1 •9diC')-l99JS O so 00 00 •spK e^ oo ooo IMCO i •eniit 1 00 5 M •sok: o SS 00 •S^DO ■^ 1 •T -OK ■ to lO 5 'T 'OJC 'BJTioji; o 00 o-,s 1-1 l>(M IN i 1 1 5^ c c T If c a e s: t a c r C : 3 > HEPORT OF THE PO.STMASTEK-(..l,M.liAL. 86< ■Of ^ 9C S : :® I :S : : . .?i lO co" ■So " OS o • o o 1 . rt" • • : :l •Btpq -pj^ji -' * • I M 1 •epunod 009 i : i ■eponod ofS 1-1 ■ I ■-I • ■<•!• : : : CD sprniod Z9 (O 1 t- • <3 ! ! i : : e> Bpnuod t S i o • CO • ! •C4 • • S '. I <9 en •Boonno 8 S : 3 is : : '. '.la • !co Si •uowoo *H 1 • o '• ■ •eo" ; • : is ■ i*^ • •■♦ o o •doiau 1 i : :l g •a^nr in '• Z4 : otT '• CO • C3 CO • Co . • ■ ci" • • • •' o s s m 1 •odjf^-lv;9j^ ■ o ^ i : •adijpa^s CO 3 •eiBH i: 3 '. '. 4 • . i. •onix; 1 CO loo' -1 • '• 9 74 SOJI o . .-5 :5cr 1 '• '• s 00 •3430 ^ ii- 1* ' • 00 •I -Oil 1 3 71 § •fO^'BJXlOH i * : :S :g! 9 ■ • c^ c c«c a ^ ■n ?,'c' c c > i is 55 Ab 866 PAPERS ACCOMPANYING THE ^ CA ^ •^ t!^ W Crj H *1Z f^ ^ m ■« H ^, M o s 1*( *c»» rn TS H ;i '/r, ,^ i^ 1 i^ < ^ \A •f^ < H O H 1 s "OJ- X 9S »2 iro" 3 •Go X Oo 2,809 3,535 4,003 3,023 •8[pi[ -p-iua ?3SSS to 1 •epnnod 009 coe4u» •epnnod q\z \af»-^io •eptraod S9 g •epimod t t~ 00 CO 00 SI •B9otrao 8 OSOOO'"*" coincoo t-eoio-w •ncn^oo irf" •duion 24, 191 24, 579 34, 944 32, 725 CO ■«• to- rn •o;nr 88, 022 108, 167 128, 337 118, 576 s a es •9d^:}-l'B^9j^ 625 1,075 9,670 2,160 o 3 •9d;S^-p9:}S 00 00 3 00 •SIBK o 00 o «5 00 CO CO rH •9ni^ t-coo-* s to •s-on: O tXMOO eoiMiooo 03 rT •SpO S •loi^ ,-HOOb- CO 00 •I -0^ 's.inoH Ift 00 OOO 00 o « 1 E- ■J: "c EEPORT OF THE POSTMASTER GENERAL. 867 Statement of the different numn appropriated nnd expended for tuppliet, on acrount of the blank agency, Post-Office Department, during the fiscal year 1881-'W. Appropria- tion. Expended. Balance. Wiapping-paper ... Jute twine Hemp twine.... Cotton twine... Balances ami Hcalos. Marking stamps. . . . 120,000 55,000 10,000 15,000 Total Post-Office printing and binilin^ Stationery 100, (X)0 100, OUO 9,000 110, 993 50 34, »46 0« 12,786 00 5, 322 58 10,000 00 14, 016 25 06, 7(M 4H 130, M2 66 8, 956 06 259, 000 I 236, 304 10 22, 005 M «« 41 2,245 S6 963 75 3, 2.35 53 19.417 34 43 04 Amount of blanks, books, and facing-slips issued by the blank agenry durinn the year ing June 30, 18«.». end- Qnarter. Blanks. Booka. Focing-alips. First Second .. Third..., Fourth .. Total 10,781,3.'.O 11,301,.VJ0 15, r><>0, 500 10, 503. COO 48, 170, 950 18, OM 21, 037 25, 679 17,003 82,793 10,167,600 7. 210, 000 7,216,000 8, 137. 000 32, 736, 600 D. W. RHODES. HujierinUndcnL 868 PAPERS ACCOMPANYING THE A M b ■ 1 lO c o .oo 'O o c oo in y. a o o o o o o o o o o o o oo o o o o o CO o § lO CO CO o> (S in in'm"© o" <3> CO 00 CO ■SI CO "S*^ cT «^ CO oT M S- <»~^ 1-1 ct . o o § §§g§§§ ooo o o o o ooo o o o o o oooooo ooo o o o o O Cj o o o o o ooo o o o o oooooo ooo o o as o" lo- o" o-o'o-ino-M' S^'S il cr o o o m(Mooieq ■^ crj co O (N-* tH 1 = co" ■<«>" CO t^ P. CBCOIO OOOCM CO 1 t~04(M005 CO ■* o CO poo 9E co" oT OsfoTaTcr-ar M-'co-t-" I 00 ©rH o> l~ "^ 00 rHTj.OOM 00r-( ■ &.§ oo" o CO (N CO 1-4 in" W*" •ee- rS ; > 0) S t> <~^^v , o "cS 3 K ! :| 1 : : :a a OJ 11 ■ o DO'S 5 r3 08 ; • J CS CCl 00 tH in" I. a& a -2 M *C, 000 00 For wrapplug-twino .'>.'), 000 00 For marking and rating stamps 'Si. OOO 00 For letter balances and scales ' y.'), Ot.H) 00 Ink for stamping and canceling purposes 10, 000 00 Pads for stamping and canceling purposes 10, 000 00 Total estimate iy,3<'.9,091 2.'. or $2,227,091.25 more than the appropriation for the current year. COMPENSATION TO POSTMASTERS. The following were the estimates, ai)propriation8, and expenditures for this item for the past two fiscal years : 1880-'81. 1881-'82. IncrcAM. Estiniat-es Ap^iropriatioiis. KxjMjuuitures... Uoficioncy $7, S50, 000 00 $7. 800, 000 00 7, 50(), POO 00 7, 8n for that period in the sum of 81,1(34,070.72. In anticipation <»f a larger delicieney, Con- gress, at its last session, upon the lecomnieiidation of the I'ostnuistcr- General, ai)propriatcd the sum of $l,i;)2,20t».vS.s, m- so much th»'ns)f a.s might be necessary, to meet the delieit for this item dniing the fiscal year. The deficiency reported by th^^ Amlitor (8l,l<3f,(17t5.72) is nut so largxi as the amount api)r<)])iiate4l by 827,530.00; but it is expected that when the delayed leturns from postmastei-s for the year shall have been received, the whole amount appropriatetl by Congress will be expend«'d. The exi>enditures forthe past lisral year wt're also greater than those of the previous year in the sum of 80(ir),033.*.».3, or iS.(i2 pertu-nt. The exi)enditures for the past year also ex«'e«'d the appropriation ($8,800,000) for the current fiscal year by 810-I,07(j.72. From the foregoing it will appear that a very much larger aj)propriii- tiou for compensation to postmasters should be made for the next fiscal year. It has been ascertained tliat the conmenNation of postmasters boars » direct relation to the gross receipts of tne department. Tlu' i)re8ont law regulating the compensation of postmasters of the tourth class went into operation the 2 1st -Inly, 1S78. DuiLug the first fiscal year of the change, ended June 30, 1878, it re- ^870 PAPERS ACCOMPANYING THE quired 23.9 per cent, of the gross receipts to pay the compensation of l)ostmasters. During the fiscal year ended June 30, 1880, 23.1 per cent, was re- quired ; for tlie year ended June 30, 1881, 22.5 per cent, was required; aiul for the year ended June 30, 1882, 21.4 per cent, was necessary. It will thus be seen that the decrease in i)ercentage of compensation to postmasters to the gross receipts has been a steady one; and this is only natural, since the great bulk of the receipts is collected at the j larger offices, where the salaries are fixed by law. The receipts for the fiscal year ending June 30, 1884, based on an increase of 10 per cent, upon the last fiscal year, have been estimated at $50,670,456.27. It is believed that not more than 20 per cent, of this amount will be required to pay postmasters for the next fiscal year. Upon this basis it is esti- mated that $10,134,091.25 will be necessary for the compensation of postmasters for the year ending June 30, 1884. This amount will be $1,334,091.25 greater than the amount ($8,800,000) appropriated for the present fiscal year, or an increase of 15.16 per cent. An essential element in the above estimate is the increase under the biennial readjustment of July 1st last in the salaries of postmasters at first, second, and third class offices, amounting to $563,400 more than was paid last year. CLERKS IN POST-OFFICES. The estimates, ai)propriations, and expenditures for this purpose for the past two fiscal years were as follows : 1880-'81. 1881-'82. Increase. Estimates Appropriations Expenditnres... $3, 650, 000 00 3, 680, 000 00 3, 676, 755 22 $3, 850, 000 00 ; 3, 850, 000 00 > 100, 000 00 3, 908, 396 60 Per cent 7.33 6.30 The appropriation of $3,850,000 for the fiscal year ended June 30, 1882, was found, after six months of the year had expired, to be in- adequate for the necessities of the service, and upon the recommen- dation of the Postmaster-General an additional $100,000 for the year was appropriated by Congress on the 6th of March last for this item, making the whole amount $3,950,000. This appropriation was $270,000, or 7.33 per cent, greater than for the previous year. The appropriation for the present fiscal year is $4,385,000. The expenditures for the last fiscal year amounted to $3,908,396.60, or $41,603.40 less than the appropriation. In no other fiscal year have the requests for additional allowances for clerical service and separating mails in post-offices been so numerous or so urgent as the past. These requests have been made by postmasters in aU sections of the country, but they have been especially necessary in the rapidly-growing portions of the West and Southwest. Postmasters at many of the principal cities in the older States have also applied for additional allowances for clerk-hire, in consequence of the great increase of the business of their offices from registered matter, merchandise passing through the mails, and from other causes. After the passage of the act granting $100,000 additional for this purpose foj^ the past fiscal year, I found myself somewhat embarassed, owing tOTiiany deserving applications, in makiug a proper disposition of it. The commission referred to in my report to the Postmaster-General was determined upon as a measure of relief, as well as with a view to REPORT OF THE POST^IASTER-GENERAL 871 the better organization of the service in several of the large cities. The adoption of their reconiraeiii)roi)riati<)n at my command, to grant all the requests from the South and West, which arc eJ. either of population (20,000) or of gross revenue (isL'O.OOO) from the j^ that provision may bo made for the di'velopment of the serv. it already exists, and that the pay of certain carriers may be iuciva.se.l under the provisions of the law above nuuilioned. 872 TAPERS ACCOMPANYING THE The increase of eatiniate is $400,000, or 12 per cent, more than the amouut ai)i)r()priatcd for tlie current year. A detailed explanation of the expenses of this service, as well as of its popularity and usefulness, will be found in my annual report to the Postmaster-General. KENT, LianT, AND FUEL. The estimates, appropriations, and expenditures for tliis item for the two last fiscal years were as follows: 1880-'81. 1881-'82. Estimates Appropriationa Expenaitures.. $450, 000 00 425, ODD 00 382, 714 8G $500, 000 00 425, 000 00 401, 978 04 Increase. Fer cent. 5.03- The estimate for these items for the fiscal year ending June 30, 1884, is $450,000, the same as the appropriation for the current year, and it exceeds the exjienditures for the past year in the sum of $48,021.96, or 11.94 per cent. By law allowances of this character are made only at offices of the first and second classes, or where the salaries of the postmasters are $2,000 and upwards i>er annum, and they are usually based upon the amounts received at the diifereut oftices from box-rents and the commissions upon the sales of stamps. The Increase in these allowances during the past fiscal year over that of the preceding one was $19,263.18, or 5.03 per cent. Of the whole amount expended, about $305,000 was for rent of buildings for post-offices. It has been my endeavor duiing the time I have been in the depart- ment to secure for use, when permitted to do so by the postal laws, a better class of buildings in the different cities for post-offices than have heretofore been occupied, and my ellorts have been attended with con- siderable success in mauj' places. Still further improvements can be made and advantages secured in this particular, as the inhabitants of the larger cities (where government buildings do not exist) have become aware of the importance of a well-built and well-finished structure for postal business. With this object in view I consider that an apiDropria- tion of $450,000 Avould not be excessive for these items. I am also of the opinion that some provision should be made by Con- gress by which postmasters of the third class, whose salaries are $1,000- and less than $2,000 per annum, should, to a certain extent, be relieved from the payment of the rent of their oliices out of their salaries. Con- sidering that the revenues of the department for the past fiscal year exceeded the ex])euditures, it seems to me that liberality could be ob- served in this direction. OFFICE FURNITURE. The estimates, appropriations, and exijeuditures for this purpose for the past two years were as follows : 1880-'81. 18Sl-'82. Increase. • Estimates Appropriations Expenuilures.. $20, 000 00 20, OCO 00 19, 29C 87 $2.1, 000 00 20, 000 00 20, 716 64 Ter cent. 7.35 The appropriation for this item for the present fiscal year is .S20,000, or the same as for the previous yecw. and, in my judgment, is entirely REPORT OF THE POSTMASTER-GEKERAL. 873 too small for the purpoiso. The postal attairs of the country cannot be properly and expeditiously conducted unless tiie ollices an? furnishwl with suitable facilities in the way of furniture, such as tables for as sorting the mails, desks for writing;-, ra«»ks lor hanj^in.^^ the mail-bags, and many other articles which are absolutely ne<;essary for the jirojjer transaction of business. I regret to say that within 'my own knowl- edge there are many jjost-offices so ill-|>rovided in these respects that it is a source of unfavorable comment by their patrons upon the de- partmental management. Many i)0Stmaster8 have been comi)elled to provide articles of furniture at their own expense, and assume the risk of disposing of them to their successors. Especially is this the case in the matter of safes, which are indispensable in all of the larger oflices. During the past year tiie a])plJcations of jiost masters to have oflices supplied with them have been more numerous than ever before. Con- sidering that it was, to a certain extent, both economical and proj^er to provide safes for many of tlu) important ollices where much registered matter is sent for distribution to other i)oints, I ha\e made fpiite a number of allowances for that purpose during tiie year, and the bills for such items having be«'n i)reseutropriation for the j>resent yea/, and firmly believe the public interests require it. STATIONERY IN POST-OFFICES. The following were the estimates, appropriations, and expenditures for this item for the past two fiscal years : Estimates Appropriations. Expuuditurcs... 1880-'81. 1881-82. Increue. I Per MnL $50,000 00' ♦00,000 00 fiO, OOO 00 ' 50, 000 00 I 49, 238 45 1 50. 517 28 { 14 The approiJiiation tor stationery for the current fiscal year is i»rojiriali(m ibr this item, for the same ])eriod. in the sum of 80,517.28, thereby causing u deficiency for the year of lliat amount. The expenditures for the i»ast year were greater than those of the pre- vious year by $7,278.83. or M per cent. I much regret that a deficiency should have occjiiTcd for stationery during the past year. The causes were that no iucreiise was matle In the ai)propriation lor this item for the year, although an estimate for $10,000 Mddilional was made; that the lerpiests Vor th«< articles used under this item are becoming more numerous and urgent <'acii year, and in the same r flu- same. The sta- tionery used by nniny post oflice inspectors ami railway mail service sui)erintendents has also been paid tor out of this item. It is the fust finie that a (h'(icien<'y in this appropriation has occurred in s(^veral years, and it «'ould have Iven avoided if the returns «onM«. Estimates AppropriHtions Expentliiurcs.. fiO, 000 00 55,000 00 84,G03 38 9.^0.000 00 65,000 00 52,754 04 Pw tent. 37.64 The appropriation for the present fiscal year is $55,000, or the same as for the preceding year. It is also an increase of 4.25 per cent, over the expenditures for this article for the last fiscal year. It will be noticed that the expenditnres for the year ended June 30, 1881, were $31,848.74, or G0.37 per cent, in excess of those for the i)ast year. This was mainly due to the high contract price of the article iis compared with jjivvious years. Hence it will be seen that an estimate cannot easily be made for a commodity which is so liable to lluctnate in value, but I submit the same estimate for the year ending June 30, 1884, as for the last year, $55,000, in the hope that it will be sullieieiit to cover all contingencies. This amount is the same as the appropriation for the present year. MARKING AND RATING STAMPS. The estimates, appropriations, and expenditures for these articles for the past two fiscal years were as follows: EstiinatoH Appr()i>i'iutiiiii0'. ExpenilitiireB... 1880-'81. fi:., WO 00 1.1. :-'<» (K) la, 4-J0 50 188t-'8X InCTMM. 115.000 00 15.000 00 14, 144 SO II, 500 00 M4 80 The ai)piO])riation for these items for the current fiscal year is the same as for the last one, .$15,000, and exceeds the expenditures for the past year in the sum of only $S."i5.70. The expendituH's for the liseal year just closed were but $G44.S0 greater than tlios*' for the year i>revious. It will therefore be jieireived that the recent appropriations for the above articles have not been at all extravagant. 876 PAPERS ACCOMPANYING THE I have estimated the a]>pro])riation necessary for these items for the fiscal year endiu^ June 30, 1884, at 825,000, an iucrease of $10,000, or 6()§ per cent, over that for tlie present year; and have done so for the following reasons: By tlie postal regulations it is necessary that the gross receipts of a post-oliice should be S50 per annum to entitle it to receive a letter bal- ance aiul a marking and rating staui]) at the expense of the department. This regulatum has been productive of much inconvenience both to the l)Ostmaster and the public, and has undoubtedly been the cause of con- siderable loss of revenue to the dei)artment, from the failure of the postmaster to properly weigh, rate up, and cancel the postage-stamps upon the mailable matter deposited in his office. The number of post- offices so dei)rived of these facilities for postal business is estimated at 10,000, and at these offices such stamps as are used have been paid for by the postmaster. The Postmaster-General having called the attention of Congress to this matter, an appropriation of 835,000 was made at the last session for the purpose of partially remedying it, and already under the law about 800 fourth-class offices have been sujiplied "with the necessary implements for canceling stamps and weighing and post-marking mail matter," the limit being the value of $5 to each office. Itemized this expense is about as follows: Scales $2 80 Stamp 79 Pad 60 Ink 40 Total.-. 4 59 The above appropriation for this purpose will therefore supply about 7,000 post-offices, and it is with a view of furnishing the remaining 3,000 with these implements, and also supplying all new offices with these materials, that the increase of 810,000 is in part asked for. Postmas- ters at many of the larger offices also frequently request to be furnished with new marking and rating stamps, in consequence of the old ones having become damaged or inaccurate. Ordinaiily these stamps have to be renewed in all offices after from two to four years' use. The following were the estimates, appropriations, and expenditures for tiiese items for the two past fiscal years : 18S0-'81. 1881-'82. Increase. Estimates Appi opriations Expenaiturea.. $10, 000 00 8, 000 00 7, 907 80 $10, 000 00 10, OIK) 00 10, 000 00 Per cent 25.00 25.03 The appropriation for these articles for the current fiscal year is ),000, or 50 per cent, more than for the previous one, and it is like- wise 50 per cent, more than the expenditures for the past year, which exceeded those of the fiscal vcar 1S80-'81 in the sum of $2,002.20, or 25.03 per cent. In my remarks above in connection with a largely increased estimate for the articles of marking and rating stamps, I have substantially as- signed reasons why a much larger appropriation should also be made for letter-balances, scales, and test-weights. I therefore consider further explanation unnecessary for submitting an estimate of $25,000 for these items. This is an increase of $10,000, or 6G§ per cent, over the present REPORT OP THE POSTMASTER-GENERAL. 877 appropriation, and, in my opinion, is fully justitied by the benefit ex- pected to be conferred upon the department if it shall be given. INK FOE STAMPING AND CANCELING PURPOSES. This item bas not been before included in the regular estimates. In pursuance of the policy adopted at the last session of Congress with reference to fourth-class offices, alluded to above in my'estimate for marking and rating stamps, I am of the oi)imon that it should here- after be annually mentioned as ne<.'essaiy. li\ order, therefore, that p«st- offices now denied this article at departmental exi)ense may be supi)li«'!10,0CM) be asked for this item for the next tiscal year. In this connection I desire to say, that of the many articles useoscs. DEPARTMENTAL PRINTING, BINDING, ETC. The estimate for this item for the next fiscal year lias l>een prepared in this office, and forwarded by the Postmaster-General to the Secretary of the Treasury, in accordance with the previous practice. DEPARTMENTAL STATIONERY. The estimate for this item lias been prepared, and will bo a1. 2"), or 12.00 per « t-nt.. muic than the ap|'ro})riafion'> for the cun-eut iiscal year. 878 PAPERS ACCOMPANYING THE A tabular statement, marked E, will be found appended to these esti* mates, giving further information in regard to them. SUMMARY. Estimate for 1881-'82, $15,135,000. Estimate for 1882-'83, $16,777,000; increase, $1,642,000, or 10.80 per cent. Estimate for 1883-'84, $19,369,091.25; increase, $2,592,091.25, or 15.45 per cent. Appropriation for 1881-'82, $16,257,206.88. Appropriations for 1882-'83, $17,142,000 ; increase, $884,793.12, or 5.44 per cent. Expenditures for 1880-'81, $15,138,650.66. Expenditures for 1881-^82, $16,141,035.31; increase, $1,002,384.65, or 662 per cent. In closing the above statement, it is proper to say that unless the original appropriations for the past fiscal year had been, in some in- stances, considerably increased by subsequent legislation during the last session of Congress, the postal business, so far as the allowances of this bureau for the service are concerned, could not have been con- ducted so satisfactorily as it has been. I hope that an equally liberal spirit will be manifested by Congress in the consideration of the present estimates, and that there will be no hesitation among the members of that body in doing all that seems reasonable and proper to aid in pro- moting the efficiency of the postal service by gi-anting the enlarged appropriation asked for. Very respectfully, Hon. T. O. Howe, Postmaster- General. FEANK HATTOi^, First Assistant Postmaster- General. EEPORT OF THE SECOND ASSISTAl^T POSTMASTER- GENERAL. Post-Office Department, Office of the Second Assistant Postmaster-General, Washington, D. C, October 20, 1882. Sir: The cost of inland transportation June 30, 1882, was: Of 1,389 railroad routes, aggregating 100,563 miles $12,753,184 Of 109 steamboat routes, aggregating 15, 434 miles 574 ,019 Of 10,797 star routes, aggregating 227,621 miles 5,553,849 Total cost 18,881,052 Comparison with the last annual statement shows, for the railroad service an increase of 195 routes, of 8,994 miles, and of $1,139,816 in annual cost; for the steamboat service, a decrease of 17 routes, of 5,704 miles, and of $179,148 in annual cost; for the star service, an increase of 525 routes, a decrease of 3,678 miles upon contract prices and annual salaries, irrespective of fines and deductions ; hence the apparent dis- crepancy between those tables and the Auditor's statement. REPORT OF THE POSTMASTER-GENERAL. 879 STAR SERVICE. In my preceding report the orders reducing the star service were stated to June 30, 1881, and since that date the following reductions have been made: July, 1881, $384,397; August, $lli2,G-47; September, $111,050; October, $83,451; November, $145,327; December, $210,831 ; January, 1882, 867,539; February, $45,012; March, $41,«J29; April, $16,988; May, $7,903; and June, $39,059. Total, $1,275,890. Aggregate decrease , 1 $1,275,809 Aggregate increase 411,093 Net decrease 6454,806 In all cases, to determine the proper measure of increase or decrease of service, THE PRODUCTIVENESS OF THE ROUTES is one of the standards by which the postal necessities of the people are considered, and in the endeavor to supply all communities with ade- quate facilities the gauge of revenue to assist in determining the fre- quency and cost of service is relaxed in respect to the extreme western section of the country. In that section, in many cases, to sujjply^ oflices of the same grade as those in the Eastern States, the cost of an oqual number of trips per week is greater on account of the increase of dis- tance and the comparative difliculty of traversing the routes, and the same j^rinciple is observed with regard to portions of the southern section of the country, the tests applied to northern routes not being closely adhered to, l)ecause of the greater area over which the popula- tion to bo supplied is distributed. The element of revenue, derived from the post-oflices to be suppli«'d, controlled in the preparation of the advertisements of October 15, 1881, and March 1, 1882, for SERVICE GOINO- INTO OPERATION JULY 1, 1882, in the States of Arkansas, Louisiana, Texas, Kansas, Nebraska, Colo- rado, Nevada, California, and Oregon, and the Territories of Dakota, Indian, Montana, Wyoming, "Washington, Idaho, Utah, Arizona, and New Mexico. In these Stat<'s and Territories the routes were uniformly advertised on schedules which, it is believed, will meet all requirements without resorting to orders of expedition. In the i)roce88 of readjust- ment, certain large routes were divided into smaller ones, and thus opened to a less restricted conip<'tition, whih^ by changing tlie termini, a saving of distance and cost has been obtaimnl. The following table illustrates the change in tlii.s Pacillc section by the readjustment: 880 PAPERS ACCOMPANYING THE Louisiana ^ tii^vnspoktation. Texas Indian Territory. Kansas.......... Nebraska . Dakota Montana .- Wyoming ...... - Colorado .... .... New Mexico Arizona..- Utah Idaho "Washington Oregon Nevada . California j July 1, 1682 A fair COMPABISON OF COST OF STAR SEBVICE, Miles. JimclK), 1881 28,078,319 Ji ly 1, 1882 25,797,74(i Decrease 8.12 per cent,, or 2,280,57:j COST. >Juno30, 1881 $4,019,824 July 1,1882 2,018,635 Decrease 49.78 per cent., or 2,001,189 COST PER >nLE. Juno30, 1881 $0 14.32 7.62 under old and new contracts, can be made by the table which follows; and while it will be observed that in some cases the routes are not changed under new contracts, there are in others slight increases or decreases, either in distance, speed, or the number of trips; but in every instance a decrease in the amount of compensation : Termini of route. Under old contracts, as increased. P d Undernew contracts, from July 1, 1882. 32273 36107 36115 36124 38146 38155 39104 40103 40105 40109 40116 40122 42121 44149 45101 45114 45132 46120 461.S2 46245 46246 46263 4G136 40267 Monroe to SLreveport Rio Grande City to Laredo Au.stiu to Fort Concho Abilene to Fort Concho Caldwell to Fort Sill Camp Supply to Dodge City Camp Supply to Moheetie Hutchinson to Medicine Lodge. . Bozeman to Miles City Helena to Missoula Silver Bow to Deer Lodge Del Norte to Ouray. Antelope Springs to Silverton... Socorro to Fort'Stanton Prescottto Mohave City Ehrenberg to Signal Floience to McMillan PbcBuix to Prescott Kitchfleld to Kanab Lava to Salmon City Koseburg to Empire City Reno to Susanville Winnemucca to Paradise Valley Wells to Hamilton Soledad to NewhaD Juliaii to Colton Redding to Weaverville Redding to Roseburgh Trelva to Shasta Calieiito to Independence Willow Ranch to Reno 122 121 249 04 189i 94' 94 : 39 45 328 151 36 230 63 120 190 126 125 105 205 135 72 92 45 ;ioo I 106 "332 121 46 280 122 226 212 7 7 6 6 6 6 3 7 7 7 7-3 7 7 3 3 7 7 6 7 6 6 7 H 15 7 3 7 lOJ 6' 6 $22, 367 00 8, 439 00 28, 600 00 19, 709 00 34, 200 00 5,707 00 12, 300 00 5, 824 00 76, 999 95 18, 739 58 4, 3()5 5fi 36, 290 53 13, 253 33 16,770 16 28, 697 15 9, 119 42 17, 569 89 32 640 32 14,340 00 19, 345 45 13, 775 00 11,752 85 5, 280 00 16, 883 82 55, 424 33 8, 010 00 6, 066 66 89,000 00 19, 359 99 36, 284 33 41, 100 00 729, 060 32 As further illustrating the reduction in cost under the advertisement referred to, a table follows, showing; cost under old contracts after increase REPORT OF THE POSTMASTEI^»GENERAL. 881 of trips aud expedition of seiiedules, cost after orders rcdiuiiig service, aud compeusatiou under the awards of ii(;\v contracts at the last lettiuj;: 'A Termiiii of route. Under old coutracts ^'"><''- <'|<1 1.3.12 00 4,000 00 7.700 00 1. 244 00 9,975 00 »7,1M00 'Discontinued. It will be observed that THE DECREASE OF COST of the several routes under tlu^ leltinpr, from tin; rates ])aid for the snnio or nearly siinilnr service alter the orders of redm-tion, conipIet«'ly refutes the allegation that was frequently made hy contractors, when (tpposin;; curtailments, that the orders would coiiii>el them to trai:sp(»rt the mails at an actual loss. The exact rediictiou of expense under the readjustment of the routes in the l*acific section is properly the. subject of the succtvdin.u: report, although it is made apparent now in a ioregoing table and in tluulimiu- ished estimate for the star service for tlie next liscal year. The rate of exiienditure on star routes on .Inne, .JO, 1881', was 1^5,553,849, a decrease of 8l,-lU.i,5()r) comi)are(l with the cost rate at the clo.se of the previous year. A jiortion of this reduction is due to extension of rail- road service, and, as stated in my juevious rcptut, a portion of the or- ders that augmented this sa\ingweie made in the prior liscal year, and, taking eliect in the subsc(pieiit year, are gf necessity embraced in the amount given above. NEEDED LEGISLATION. lu my former re])ort it was suggested that statutes should bt^ enn<'ted repealing .section .')J).").'i of the l{evisorary mail service. A draught of a subcontract law was also submitted. But a y)ortion of the recommenda- tions were reached dui'ing the session, and only the suggestions relating to extension of routes and the rate for temporary service were adopted. In regard to the subcontract law a substitute for the draught referred to was enacted. In another part of this report I have given, for the purpose of refer- ence and record, a table (F) of ORDERS OF EXPEDITION from January 1, 1872, to April 30, 1881, since which last date no orders expediting star service have been made. Upon the basis of expenditure for star service, June 30, 1882, already stated at $5,553,849, the estimate for all new ser\ice and necessary in- creases under present contracts to June 30, 1884, can, with the service now in operation, be ])rovided for with an appropriation of $5,500,000, and this amount is accordingly recommended. It is estimated also that at the close of the present fiscal year there will be covered into the Treasury an unexi)euded balance of $2,250,000 on account of reduction of star service. STEAMBOAT SERYICE. Since my former report, changes were made in the steamboat service as follows : By orders of reduction in July, 1881, $4,962 ; August, $15,333 ; September, $19,377; October, $12,200; November, $159; December, $8,460; January, 1882, $0; February, $0; March, $2,121; April, $27,186; May, $0; and June, $900; total, $90,698. During the same i3eriod orders Avere made increasing the cost as follows: Jul3^, $17,102; August, $700; September, $33,686; October, $5,081; November, $0; December, $0; January, $21,506; February, $600; Marcli, $25,994; April, $3,640; May, $2,425, and June, $2,000; total, $112,734, being a net increase in cost during the year of $22,036. Of the increase in July the sum of $10,000 made possible a saving of $37,000, which was included in the gross reduction of steamboat serv- ice for the preceding year. Of the increase in September the sum of $22,036 represents, not an actual increase, but routes on which con- tract service expired .lune 30, 1881, and which were not renewed under contract until September 1, the service in the mean time having been continued under orders of recognition at the rate named. Of the in- crease in January and Marcli service at the rate of $30,000 per annum was ordered and continued only during the overflow of the Mississippi Eiver and its lower tributaries, which afforded all necessary facilities that were applied for by the people in the submerged districts. The rate of expenditure for steamboat service at the close of the fis- cal year ending June 30, 1882, was $574,019, a decrease compared with the cost for the previous year of $179,148. A portion of this decrease is applicable to orders made prior to the beginning of the last fiscal year. The estimate for steamboat service for tbe year ending June 30, 1884, is submitted at $700,000, being a decrease of $100,000 from the present appropriation. About $150,000 will be covered into the Treasury aa an unexpended balance of the steamboat service appropriation for the current fiscal year. REPORT OF THE POSTMASTER-GENERAL. 883 MAIL MESSENGERS. TLe rate of expenditure for mail -raessenffer service for the fiscal year ended June 30, 1882, was $724,207, or $7.20 per mile on 100,063 miles of railroad service. Upon the above basis of cost per mile of railroad service the estimate for mail messengers for the fiscal year ending Juno 30, 1884, is given at $850,000. J y b MAIL TRANSFERS IN LARGE CITIES, I desire to call your special attention to the appended report and estimate of Mr. D. B. Parker, chief inspector, in which ho suggests that the work of transferring the mails between the po.st-oflices, depots, and wharves in thecities of Boston, New York, Phihulelphia, Washing- ton, and Chicago, be performed with an equipment to be owned and operated by the government. The transfer service in the great cities is, as it were, a vital point in the matter of mail transportation. The competition in bidding has brought the compensation for performing this important service so low that total failures have resulted in some cases, while in others the equipment is managed so economically that the efficiency of the service is impaired. It is believed that the plan proposed would not increase the cost; that it would give additional security to the mails, and atford the most efficient and acceptable trans- fer service that could be performed. Mr. Parkei-'s long experience, as chief inspector, willi this class of service, gives to his views the weight and importance which the able conduct of the affairs of his office war- rants, and after careful consideration I earnestly comTinMul liis sugges- tion to your notice. MAIL EQUir:\ii:NTS. The cost of new mail bags and mail catchers and rei)air of old ones for the year ending June 30, 1882, was $198,380.88; and for now mail locks and repair of old ones, $24,900.50, The appropriations for that year were, for the first two items, $200,000, and for the last item $25,(KX>. It will therefore be seen that the necessities of the service required the expenditure of the entire auiounts appropriated. The amounts which it is necessary to ai)propriate for these objects for the year end- ing June 30, 1884, are as follows; For mail hags and mail catchers $2'2rt. CHX) Maillocksand keys 'JO, 000 The reason for the increased estimate for mail bags and catchers is found in tlie very rapid extension of the railroad system, and the more frequent forwarding of ])oucheK on raihoad routes, and the large num- ber of post-oflices established on such linos. For these reasons, which apply with more force to the transactions of the current year than was anticipattMl when the estimates wore made, it is probable that the appropriations for this fiscal year may bo founcl to be inadequate. Table N shows expenditures for mail bags and mail catchers. Table O shows expenditures for mail looks. Table P shows all contracts for above items, with price, &c., in opera- tion June 30, 1882. SPECIAL FACILITIES. The appropriation for special facilities on the great lines for the cur- rent year is $600,000. I would suggest that a like sum bo provided 884 PAPERS ACCOMPANYING THE for 1884, as it is not clear tbat serious injury would not result to the public if the service secured by this expenditure were discontinued. RAILWAY POSTAL CLERKS. The appro]iriation for railway postal clerks for the current year is $3,710,000. The average increase for this item for the past six years has been at the rate of 7.20 per cent, per annum, and estimating the cost for 1884 at the same rate of increase, will make the sum required $3,977,120. The particulars with regard to this item will be found in the report of the General Superintendent of Eailway Mail Service. FINES AND DEDUCTIONS. The amount withheld from all branches of the service on account of fines and deductions for the year ending June 30, 1882, was $192,230.25. This sum is not so great as was shown for the two years last preced- ing. The shrinkage is attributable mainly to two causes, one of which is that the most expensive of the star service, which was performed in a section of the country particularly liable to interruption from various causes, and from which a large portion of the tines were derived, nearlj- all ceased in 1881 ; the other cause of the reduction, the rigorous win- ter of 1S80-'81, was followed by an unusually mild winter, in which there were few failures on account of the weather. The amount de- ducted is, however, more than the average, and more than was ever deducted in any one year prior to 1880. RAILROAD SERVICE— GENERAL STATEMENT. First. Cost of all transportation, on -wliicli rates liave been adjusted, to Jane 30, 188"2, by books of the Post-Office Department $11,297,333 Cost of same June 30, 1881 10,249,261 Increase for 1882 over 1881 1,048,072 Rate of increase 10.23 per cent. Unadjusted service June 30, 1882, 8,449 miles. Second. Cost to June 30, 1882, Auditor's statement $10,248,515 Appropriation for 1882 9,458,200 Escess of cost over appropriation 790, 315 Rate of increase of cost over appropriation, 8.35 per cent. Unadjusted service for year ending June 30, 1882, 3,464 miles; estimated cost 125,000 Total , 915,315 Rate of increase of audited cost and estimate over appropriation for 1882, 9.67 per cent. Third. Cost by Auditor's statement on Pacific roads to June 30 ,1882 $1,376, 929 Cost ofsame to June 30, 1881 961,977 Increase for 1882 over 1881 414,952 Rate of increase 43 per cent. Fourth. Appropriation for 1883 §11,130,000 Audited cost and estimate for 1882 10,373,515 Excess of appropriation 756,485 Rate of increase 7.29 per cent. ESTIMATE FOR 1884. For reasons stated in the last annual report the estimate of the cost of railroad transportation for the current fiscal year was placed at a lower rat« of increase than is shown between the cost for the two pre- ceding years. The service in the Pacific States, in which nearly all the HEPCWpr OK Tin: POSTMASTER-OENERAL. 886 routes are located on wliicli tli(^ pay is wirhbeld on account of indebt- edness to tiie government, having: lieon adjustc'd Jor the new contract term commencing July 1, 1S82, tlie estimate for the ensuing fiscal year will, as usual, be based upon the cost lor the year ending June 30, 1S8L'. and the probability of increase in the weight of mails and miles of road to June 30, 1884. The increase in mileage- for the last year was 8,994 miles, or 8.9 per cent, increase over the mileage for the previous year. This is the greatest increase in the length of railroariation for iss;{, and a litth; more than 14 per cent, over the audited cost, and the estinnite for new senice for the year ending June 30, 1882. The estimated rate of increase is less than is shown for 1882 over 1881, but it is believed that it will be suilicient,as it is proba- ble that the percentage of increase in cost will be .somewhat reduced as the aggregate mileage is enlarged. PACIFIC RAILROADS. The relations existing between the Paci tic Rail road Companies i ndebted to the United States and the government, in the matter of the with- liolding of all amounts earned in the transportation of mails over their owm and leased andop<'iatenicecarslK'ing restricted to the lines on which the heavi«'r mails arecarrie«l, theincrease«l t'XiHMidi- ture for the sanu' is re.strict«'d to a lower rate than is riMjuired in other branches of the service. The ai)propriation for the current year is :?1,.VJG,000. The incixuised cost for 1882 was $1(M>.0()(». It is believed tliat the service can be con ducted for 1884 for .'i!l,, which is the sauio totid increase a.s is shown for 1882 over 1881, 886 PAPERS ACCOMPANYING THB'.- EXTENSION OF THE KAILROAD KYSTEM. Table M shows the mileage, annual transportation, and cost of rail- road service for each year, from its commencement in 1836 to June 30, 1882. It is interesting to note that the degree of public prosperity is reflected in the construction of railroads. There was a steady increase in mileage from 186G to 1872, reaching in the year last given 8,000 miles ; then, with the depression in business that followed, it declined from year to year until, in 1877, it touched the minimum — 2,200 miles. With the settlement of the financial question and the advance of business, it again steadily increased to 9,000 miles for the fiscal year just closed, which is the greatest number of miles of service ever established in one year. Table L gives the new service for 1882 in detail. The most impor- tant connections established during the year, of auational character, are the Texas Pacific Line through Texas, ISew Mexico, and Arizona, to Cali- fornia, and the junction with the railroad system of Mexico at Laredo, Texas. The last is a most important event, as a matter of interest to the business people, as it opens a convenient channel of quick inter- course with Mexico, thus presenting a new and promising field for the exercise of the intelligent enterprise of the people of the United States. EATES OF PAY TO KAILEOADS. The experience of the past year has confirmed this office in the views expressed in the last annual report concerning the rates of compensa- tion prescribed by present laws for carrying the mails on railroads. Allusions were frequently made during the past winter to a public sentiment which, it was alleged, demanded an increase of pay on some lines, but, at the same time, a reduction in the total cost of carrying the mails on railroad routes. Public opinion, upon questions which may properly be determined by opinion, ought to prevail. This, however, is an instance in which opin- ion can be intelligently exercised only after a knowledge of the service rendered in carrying the mails and the compensation i^aid for the same is obtained through an analysis of the facts, and these contrasted with other transportation service and charges. Because all will admit that the postal service rendered by the rail- road companies is of the highest value to the people, and the amount and character of the service in every case may be accurately ascertained and stated, so that a basis would thus be established, resting upon material and indisputable facts, from which a comparison could be made between the postal and other business of the railroad companies ; hence the subject should be approached, not with the settled intention of increasing the rate of pay on one class of roads and depressing it on others, nor of increasing or reducing the total cost of service, but it should be considered in a spirit of impartiality and with a determina- tion to fix the compensation at such rates as the facts may warrant. The annual increase in the cost of railroad transportation has no bearing whatever on the question as to proper rates of compensation, for, upon reflection, it will appear that the rates of pay and total cost must increase under the present or any other method or scale of pay- ment that may be devised, in keeping with the extension of the system, the growth of the mails, and the increase in the facilities employed for the use and necessary care of the mail in transit. The value of the postal service between the great railroad centers has grown to such magnitude and importance that the problem of shorten- REPORT OF THE POSTMASTER-GENERAL 887 ing the time of transit between siicli points will have to he solved at no distant day, and this will doubtless furnish an interesting feature when the question of pay is determined. There is now more than 1(K),0<)0 miles of railroad service in operation, reaching into every State and Territory of the Union, furnishing, as it were, the arteries through which ai)opulation of fifty millions, disi)ersed over this vast territory, is supplied with mails. The conditions under which the postal service in the Unit<'d Slates is perlbrmed, are essen- tially unlike those under which sucli service is rendered in the densely populated countries of Europe. Therefore, for the L'nited States, pre- cedents must be established, not followed. In executing the present law it has become clear to me that under its insuflicient jjrovisions an unnecessary expenditure of iud)lic money might be made for carrying the mails on railroad routes. Therefore, having in view the large annual expenditure for thisbranchof the serv- ice, I cannot too strqngly urge the great importance of at once j)er- fecting the present crude and incomplete laws, so that an uncalled fur expenditure would be rendered impossible. Very respectfully, RICH'D A. ELMER, Second Assistant Postmaster- General. Hon. T. O. HOTVE, Postmaster- General. ADDENDUM. Table A exhibits cost, appropriation, and estimates. Table B shows length of routes, annual transportation, and cost in the several classes of inland mail service. Table C is a statement of the railway mail service. Table D is a statement of the steamboat service. Table E sliows the increase and decrea.se in transportation and cost. Table F is a statement of star service expedited from January 1, 1S7L*, to April 30, 1881. Table G shows weight of mails, speed, and accommodations for mails and agents on railroad routes, with an index. Table 11 shows the readjustment of pay on railroad routes, with an index. Table I shows the rate of pay for railway post-ottice cars, Avith in- crease and decrease since last annual rejiort. Table K states expenditures for necessary and s[)ecial facilities on trunk lines. Table L is a statement of railroad service established since last annual report. Table M shows the growth of railway mail service from IS.'iG to ISSi*. Table N is a statement of all contra<'ts for mail equipments ami use of ])atents. Table O is a statement of expenditures for certain mail e(iuipments. Table P is a statement of expeuditurea for mail-locks. 888 PAPERS ACCOMPANYING THE i| ■on - o ,— 1 o ; ; lOrH o ci g c cj -r I o CJ h a. ■ rH(M • CJ g«§3 a J J -S =» o - a 9 ^11 OC L-S I O 1-5 o 0^ IT. O ■ ei e 1 s:;.3 « t-^ ffl t-i » o o l-( f- 1 o » o-t= o .ooojcoooir:Tj oc r- 1 1 02 c; -^ 05 M ♦^ O rt !->»oc5oi>i-^t.;i>05 Increi per pria toe 2 M «0«M rlT) o l«« oooooooooooo c lO to cTo'cTo't-rro'irro'irrcr f- Lt M o o i- — 1--; 3c t- o r> o r- ►- Coo o P«— 00 •I u--, 'C OCi C) 1- 1--: M r-i OC M o C-t=-i i-Ti-T t-TrH-r-T CO «5 •^ CI ' 2 51 fc o ; ; 00 r^ I C> OC t- o =2^ ; ; t-iH £^« a CO O I n 1.-5 -» o 9^ !MCM i> III 5 ; ; « I J egg « « c- o ci t^ m t^ cj OC •r s ;: ^ ^j « o tt t o y- 5 c "3 1 , ^M'^ ^ ?: ?;!^-< s s a 1 C « W >i5 REPORT OK THE P0STiLA.3TER-GENERAL. 88!:» ? n' 2 " i; r; — = £-: X t- C-. 71 = ■.-: -T o X t- I- ft .-: «: t- o r: 5 i 1-. c 5E S S ^iJ • u * c; a c o r: tc cj t- — I - !.■; c — ri X t-; ^ t - C-. t; JL o t- <- — ^ k-. — rJ a (- 5 S -M O 3 t- "T -I- S> rH s» is X — 3 ID C5 SI t- »i X C r} 5 1?. ^'I X »^-. e- » o * — c* » p;'T^O»-'-r5Cooac4cix/o*c-^*x^ttcacj»coo^o?9'r^C'i^O f iTC t- II 55 o X ci T o ^ .— ' r: X r: L^ » (^ n Ti o n X w X rj ^ ;3 *i — => — r* •» r ''5 T 50 oj cc r: % « n — I- C5 — o •ft (X ?j « t'- ri 3 x r-5 1- 7j " CO t" facts' «"cX f-T CTpn'ci'clcir^"*-^^^ - ♦ r» f< oa&ox-HtotftOc-j--rt«r»— rj — or^r^ X I " "" . c* C' J 3 C5 CS — — i ^ o Ci •.t rt ^ o X -» to '^ ?iS ) r-p; — ■•_■ >fxc'it~o-"-"et-xrip-oo^"«n — o«oa>0( sSt-i^x^SHKcJSe i-«C5»-" -< s r» »- eo X t~ vom«D«9«xr--'>no4X cot-TCOio cicicieoo^ t~ac4<<' Jc^ i-it-e< tiSSBs ^ = 3 Or* (5 CI CI ->^ F-i-H^^.-if-i f-i<-iMn>« "^r- to iSaS -go — ^cic^cojjM'- ^5C*"^ci — x?o»c*nah"to^- A pi«%i&A£^«^>.^-.. ;I^?J ::jSi if; ?52 :^'. «s 1. • = .i a •• t 890 PAPERS ACCOMPANYING THE m • ^ tS to S i- ts >n to K> -* s "-' 2 S 2 S S? 5 •(fSOO lOnUHB pB^OX iSSSf- i-iajoCTCosJCioo-. 'J lO to O t- f 1 !0 C-l t^ -T O , ~ 1^ . . ^ ■«}• M O C> O •uo!^B!)aod •9aBJ!> imiuuB iB^ox •!)B0qOT«9;e j£q noij •■BijJodenBji tBnuuy -99 pa's 'iJ^ut'B)aa3 -•Bijiodaaej'^ {Bnuay •BJBO 00^0 •^eod x<'BM.'[ti;.i -JIBJ JOJ ji^d 'noi!^B^iod9UBJ? jojil^dxtinnay tOO-^OM'COlMtOiOajl^COCO J- oi 1-1 Tf o 00 CO o <-! r-i t- e 1 iC Jl vS c^ o 1.-5 i* >-: o o =■• t: S i '~ S MrJr-T C4 i-if-fr-T r-fr-Tin Jgt^^c ■H' r-l -^ eO . O CO r-( GXi O 05 CO -^ • O 09 CO r^ ^1; > 'X '*' o cs 7j QC ^ 'f^ 2 ^ t" J2; r ao' o cf CO CO » rf cT — r t--* CO (Tj" o r r-T r-H r-C r-T r-T r^ CO .Sf2 ; Ss o c- • •pBOJ^tBl £^ ti, Cv| CD • C"! • if5 «— ' CO CO o iri t *o I o o r-* c> CO »-< ■ 71 • CC ■* O r-1 (TJO ' '-» "^"T: =^sg ^1 CO • CI I ift 1-H X -Tf TJ- O « »ft • O O '-' d ^* T-t > c) • 00 -^ 50 Tj< : -w » O • 00 Tl o> -i • 1^ f* • CD Tj^ • »-( to ■ Cl— < ■ CO w : ici> ao o so "1* re '-0 OS O'Mr-lt-uSOOCOC-QO^'-.COCOO •sajnoj JO q^Saai '»-JiC*^tDt-tDOO'^C'5IOIO(MC5 * c o o to — o ro 3j — > cv r- — ^ ^1— iCiOTTO-^csincttot-aco REPORT OF THE POSTilASTER- GENERAL. 891 Tablk M. — Statiatica of mileage, incixa^e in mileage, annual iranaporaiion, and cost of the railroad aervice,from 1836 to June 30, IH-iii. Date. June 30, 183G X'ime :!(), 1837 June :iu, 1888 June .'10, 1839 June 30, 1.840 June 3u, 1841 June 30, 1842 June 30, 1843 November 4, 1843. June 30, 1844 June 30, 1845 October 31, 1845.. June 30, 1840 November 1, 1840. June 30, 1847 November 1, 1847. June 30, 1848 October 1, 1848 ... June .30, 1849 June 30, 18j0 June 30, 1851 Jane 30, 1852 June 30, 1853 June 30, 18r4 June 30, 1855 June 30, 1856 June 30, 1857 June 30, 1858 June 30, 1859 June 30, 1800 May 31, 1801 June 30,1801 June 30, 1802 Juno 30, 1803 Juno 30, 1804 , June 30, 1805 , June 30, 1800 June 30, 1807 June 30, 1868 , Juno 30, 1869 , June 30, 1870 , June 30, 1871 , June 30, 1872 , June 30, 1K73 June 30, 1874 , Jnno 30, 1875 , June 30, 1870 ,June 30, 1877 June 30, 1878 June 30, 1879 Juno 30, 1880 , Juno 30, 1881 , June 30, 1882 , Length of routes. Annual trans- Cost per an- '■„^°*"*,T r',i^'-'''^T f porutiou. num. m lon-tl. of in length uf Milet. 974 3,091 4,092 4,402 4.735 4,957 5,407 6,680 8,255 111, 146 12,415 14,440 18, 333 20, 323 22, f>30 24,431 26,010 27, 12!) 1 0, mc 22,018 21,3.38 22, 152 22, 016 23, 4111 32, 1)92 34,015 30,018 39, 537 43, 727 49,834 57,911 03, 457 07, 734 70,083 72,348 74, 540 77, 120 79, 991 85, 32i» 91, 569 100,063 MiUa. •1, 878, 200 •1,798,024 •2, 356, W.2 *3, S'.KJ, 055 •3, 8*<9, 053 •3, 940, 450 •4, 424, 262 •5,692,402 (•) •5, 747, 3r,3 •0, 484, 592 (•) •7,781,828 4, 170, 403 4, 327, 400 6, 524, .'.93 8, 3G4, 6t'3 11,082,708 12,980,705 15, 433, 389 19, 202, 405t 21, 809, 296 24, 267, 944 25, 763, 452 27, 268, 384 27, 653, 749 15,701,093 23,110,823 22,777,219 22, 87 J,. 558 23,301,942 24, 087, 5«W 30, 609, 467 32, 437, 900 34, 886, 178 41,399,2M 47, 551, 970 55, 557, 048 62,491,749 6.'., 021, 445 72, 460, 545 7.5, 154,910 77,741,172 K5, 358, 710 92, 120,395 93, 092, 992 90, 497, 4ii;i 103,521,229 113, 995, 318 •$307. 444 •404, 123 •520, 602 •595, 353 •.58.5, 843 432. 508 •73:;, 0»'7 .'k;|.7.S2 •802. I '06 •843, 4:!0 .587, 709 •870, 570 .587, 709 .597, 475 597. 923 .5.H4. 192 5>7. 204 (;:i5, 7411 818,227 985. (il9 1. 273, .520 ],C01,:.".'9 1,7.58,610 2, 073, 089 2,310,389 2, 559. 847 2, 828, 301 3, 243, 974 3, 349, 602 1978,910 2. 543, 709 2,498, 115 2, .538. 517 2, .'■07.014 2, 7u7, 121 3, 391.. 592 3,812,600 4, 177. 120 4, 723. 680 .5, 128, 901 .5, 724. 979 6, ri02, 771 7, 2.')7, 190 9,113.190 9. '-'16. 518 I fl,.543. i:;4 I §■9. 0!>;i. 9.16 I 9. r>ec. 5'j.". I \\'ir>n:,yM I 1(1. 49>, UMJ I 11,013,363 12,753,11^ routeti. MiU*. 2.117 6i!3 333 222 540 1,388 1.369 1.891 2.269 2.025 3,893 1,990 2, 207 1,901 1,579 1,119 1,775 "eii" 464 785 :S.69l i 1.923 2,003 I 3,510 I 4.190 > 0. 107 ! K,077 5. WO 4. l.*77 2, 349 2. 265 2.198 2. .574 UUft. 6,886 2.871 r>, 329 0.249 8,9»4 * Railroad and steamboat Hcrvicp combined ; no nepnrato roport. t Decrea.se caused by Ibe disconliuuanw of Hcivien in the Hnuthoni Stitos. ' Increnso attributable in iiart to tlie rcunnniiion of 8ervlco iu the Sontliern .St.ttM. § Decrease in cost caused bv rtMluctious in tlic rates of pay nndi r art of .Iitly 12, 1878. U Diicrcase in cu.st c^uaud by reductiuus iu tlio rutca of [ffty under act of Jiuio 17, Ib'S. 892 PAPERS ACCOMPANTING THE a. ~ X •2 s <^ •q 'OH 9Zlg ■f -on 9ZIS •8 -OK 9ZIS •Z -on 92Tg (M f-« f-l lA tA ooi-ic-io Tcn-^oio ot»i-iMoxi-iiow ao c^i ic ci «o 03 ■I "Oil 92IS O ■^ CO o '0 'OR 9^S « 00 p So © c .oosoooogooKwoooo, -sooeococos (C o ■ jfii . ; ; ,00 rt ;o : :fi o b£ e -J o no O -r? O cq O O «l-ca«C'fl Brass label-cases . . , Shocta mail-bag label-cards . Mail-bag cat^-.hurs Mail-bag catcht^rs, repaired . Bepairs of mail-bags of every description Total exprnse on account of mail-bags and mail-cati'lic.rs UnexpendiMl lialanco of appropriation Amunut of appropriation 16 oo-:4 002| 19 10 25 09} 15 00 207 50 123 50 80 00 816 67 1,350 00 2,000 00 750 00 4,500 00 IOC 76 55,460 00 955 OO 410 00 2.106 67 28,500 00 2. 750 00 14« 25 4. 606 76 51.156 67 19«,880 M 1,619 12 300,000 00 TAni.E P. — Statement of mail-locks pnrchuHed and repaired, and of the expense incurred on account tharof, during the year ended June 30, 18*^. Quanti- ties. Df»<'rlpfion. 3!)9 ' Iron mail-locks 29, 554 ' General niaillocks . 20,000 Iron nmillo<'k». n-pairo*! 4, 000 Street li-tter-bos locks, repaired . Total expense for mall locks Unexpended balance of appropriation Price, iwoh. dmt. $0 58 53 $231 42 15,368 08 Amount of appropriation 8.000 00 1,400 00 Ac(T»cM« $15,800 M 0,400 00 34,900 SO 35,000 00 894 PAPERS ACCOMPANYING THE TRANSFER OF MAILS BETWEEN RAILROAD DEPOTS AND POST-OFFICES IN THE LARGER CITIES. Post-Office Department, Office of Chief Post-Office Inspector, Washington, D. 0., October 19, 1882. Sir: I have tlio honor to recommend for your consideration a plan which involves a radical change in the transportation of mails in large cities, afiecting the "transfer" and "local station" service. As you are well aware, the present system of letting to the lowest bidder for four years a contract to perform the service of delivery of mails at the railroads and iiost-offices has caused and is causing the greatest embarrassment and confusion. I hazard the assertion that the conclusion is a tenable one, that it is impossible to secure reliable and satisfactory service under the present plan, and that this is a service which vitally affects our entire postal sys- tem. Complete failures have recently occurred at important points, creating great confusion. The service at other important points is in the hands of contractors who are not adequately responsible, and who are running the service possibly at a loss, their bondsmen being suffi- ciently responsible to justify them in giving to the government such service only as will suffice to prevent the contractor from being declared "a failing contractor," which action would result in greater loss to them than to continue the service. Under such circumstances it is obvious that the government is but poorly served. The contractor's outfit is such as will barely answer the purpose. The cheapest men obtainable are employed, and are not always paid their wages. They are constantly being shifted and changed, and not paid enough to secure suitable men at the start. They are indifferent and careless in the performance of their duties. The mails in large cities are in charge of such contractors and drivers, and are unaccompanied by postal officials in many instances. The risk is very great, both as to loss and robbery, and also as to failures in the service, which result in detentions of whole wagon-loads of mail at a time, depriving whatever section of country is thus affected of that prompt communication which a more efficient service would afford. Experience proves that under the present system irresponsible bid- ders are quite certain to obtain the contracts for such service. Expensive wagons of special pattern are required, and all bidders understand that at the end of the contract term their wagons will have no value for other purposes. It is fair to assume, therefore, that a careful bidder would add in bid- ding an estimate of the entire cost of an outfit, so that the government has really to purchase the plant. K the government were to provide the horses, wagons, and neces- sary materials to perform this service at, say, five leading cities where it is most important^ reliable and efficient service would be secured at its prime cost, and I believe this is the only method by which reliable service can be secured and its proper performance guaranteed, or by which we can promise satisfactory results to any part of the postal service of the country, which all depends to a great -extent upon this branch. I therefore respectfully recommend that the necessary legislation be REPORT OF THE POSTMASTER-GENERAL. 895 asked for of Confxress and that estimates of the cost be furnished. I wotild outline the following plan: That the law authorize tlie appointment of an officer as superintend- ent of this service for all of the points included in the i>lan; that he be selected for his special fitness for such duties as may devolve upon him, and be required to give ample bonds as a disbursing: ofticer. That stables be rcntt.] H'anhitigtan, It. ('., Au'iust I, lliM2. Ill carryiiiK into effect, the act of CongreM reorpani/injf the rnilwny iiinll aorvice, approvpil'jiily ol, If^-^-i, viz: Alf ACT to desigDAtc, clMilfy, and tlx tb« mIuIm of p«r»on« in the railway mall ••rrifi*. Be it enacted by the Senate and House of Representatives of the United States of JiK4rieer annum ; and one of class two, at $900 per annum. On lines where more than four clerks are needed to duty at certain important points in charge of one or more lines will bo designated "chii-f clerkB.'' and such details may be made from clerks of class five, at a salary of il,400 per an- num. No clerk will be detailed to assist a chief clerk except in spt-cial netessary cases, and the clerk so detailed shall not be above class three. Sec. 9. Detail of c/er/;*.— Suprrintendents may detail clerks from one route to an- other, but clerks so detailed must bo assigned to duty in accordance with this order. Clerks may bo detailed for clerical duty pertaining to the railway mail service. All details (except in cases of emergency) must be reported to tho general superintendent for his approval before going into eflect. Sec. 10. lieassifjnments. — Superintendents are hereby instructed to reassign clerks in accordance with this order. , Sec. 11. Salarie8 to he regulated hij duties assigned.— In no event will :i clerk b«' allowed the salary of a higher chussthan is by this order assigned to tho duties actually performed by him, except when ordered to perform duties of a lower graositiou of railway postal clerk shall bo made as clerks of class one, and for a probationary i>eriod of six months from the date of tho same. No reappointment at or bffore the cxiiiration of the probationary period shall bo made unless the ai'i>ointt(i shall liavis shown liimM-lf proficient in his duties, fully competent to perfonn the samt-, and shall pass a satisfac- tory examination upon the duties of his position. Sec. 14. Superintendents to report necessary cAanr/es.— Superintendents will report at once to the general superintendent any changes which may bo necessary under this order to carry it into etfect. Sec. 15. /M/« this order takes effect. —Thin order will take effect on and aftor August 1, 1882. All regulations or parts of regulations of this department inconsi.stent with this order are hereby rescinded. T. O. HOWK, J'oitmaster-dtneral. As llie servino, was iminodiatoly rcoi-i^aTiizcd niitlcr this onler, which took efiect within one month alter the expiration of the liscal year with which this report is concerned, it has been considere*! best t(» sliow the service at the close of the fiscal year, both as it was under the old orfjan- ization and as it wonld have been reported under the reorganization, in order to aflord a basis for a conii»arison with its condition on tho .'iOth of June, 1883. At the close of the fiscal year ended .Imie M), 1882, there were em- ployed in this service 3,570 TIAIIAVAV POSTAL. CLERK.S, with salaries a}4gn';;ating i?f.'5,48(»,770, or an axfrafjt' annual salary to each of $070. <»8. This was an increa-se in miinber over those in tho service at the close of tho previous tisciil year of 3IKJ, or ll-'..'{7 i)er cent., and a decrease of $1.85 per anmnn in tiie averajre salary i>ai«l to each. UndntN Mail roHto in(.'N8i>ni{ers. Local aK'iitH •1. 708. 380 1,4l 20 Mail route mesaengers IH'J, 8H:{ 92 Local agents 149,228 74 Total 3,233,bG3 12 RAILWAY POST-OFFICE LINES. It affords nie pleasure to be able in this report, for the first time since the mails have been carried by rail, to present a table (A') showing all the railway post-office lines in the United States, arranged in alpha- betical order, giving the terminal post-offices, the distance run, the rail- roads over which they run, the annual miles of service, the number of cars and parts of cars in use and in reserve, and the number of railway postal clerks employed in each car. From this it will be seen that on June 30, 1882, there were in operation 769 railway post-offices (new designation). Those upon which "railway post-office cars" are run and paid for are designated in the table by being printed in italics. These railway i)ostofiices were conducted in 342 whole cars and 1,402 apart- ments in cars, a total of 1,804 cars and apartments, and Avere run over 87,805 miles of railroad, making 75,741,438 miles of annual service. There were employed upon these lines 3,122 railway postal clerks; 162 clerks, as before stated, were detailed as transfer clerks (formerly known as "local agents"); 286 were detailed as chief clerks and for other clerical duty in connection with the service at this office, division headquarters, and other prominent points where needed, and were run- ning upon steamboats; making a total of 3,570. The average number of miles traveled annually by each clerk in railway post-offices was 38,564, A comparison of these figures with those given by the Second Assistant Postmaster-General shows that there were 12,698 miles of railroad upon which there were no railway post-office lines, and that 38,253,880 miles of annual service were performed with express mails and closed pouches over these routes and portions of routes, and also upon other than mail trains, over routes where railway post-office lines were running. GROWTH OF THE SERVICE. Table B^, hereto appended, shows the growth of the service as far as it can be compiled from the reports of the Postmaster-General from 1834 to the present time. In his report for the fiscal year ended No- vember 1, 1834, Postmaster-General W. T. Barry says: The celerity of tlie mail should always "be equal to the most rapid transition of the traveler; and that which shortens the time of communication, and facilitafps the in- tercourse between distant places, is like bringing them nearer together; while it affords convenience to men of business, it tends to counteract local prejudices by en- larging the sphere of acquaintance. These considerations have always had their full weight upon my mind in making improvements in mail operations. The multiplica- tion of railroads in different parts of the country promises, within a few years, to give great rapidity to the movements of travelers, and it is a subject worthy of inquirj', Tvhethei" measures may not now be taken to secure the transportation of the mail upon them. Already have the railroads between Frenchtown, in Maryland, and New Castle, in Delaware, and between Canulen and South Amboy, in New .Jersey, aftorded great and important facilities to the transmission of the great Eastern mail. The railroad between this city and Baltimore will soon be completed, and the dis- tance from the post-office in this placo to that of Baltimore, will not be materially varied from the present road, 38 miles. From Baltimore, by Port Deposit, in Mary- land^ to Coatesville, in Pennsylvania, the line for a railroad is located, and the stock REPORT OF THE POSTMASTER-GENERAL. 899 subscribed for it8 completion, and from Coatc^ville to Philad«!lpliia, a railroad is made and in operation. Tlio tlJKtaiice between ISuItimoru and Philadelphia on this road will be one hnndred and seventeen miles, about eijjhteen miles ;ircater than the pres- ent laud route. From Philadelphia to Trontou bridge, about tweuty-«!ij;ht mile«, tho railrua>4i is nearly completed, and from New Urunswick, in Jrk, and it can- not be sui>posed that the enterprisinj; State of New Jeraey will long delay to perfect a communieation of such great importance, passing ihrouyh most of ber largest ami most flourishing t<>wns. When this shall bo done, tho whcde distance between this city and New York on a continuous railroad, will not exceed two hundred and forty miles, and the journey may be performed at all times with certainty, allowing ample time for Rtopping at important places on the road, in sixteen hours, and ordinarily in a shorter period. If provision can be mado to secure the regular transjiortation of the mail upon this and upon other railroads winch are constnictiug, and in some instances, already finished, it will be of great utility to tho public, otherwise thuso corporations may become exorbitant in their demands, and prove eventually to bo dangerous mono]i- olies. From the fipfures following in this table, the modest 78 miles repre- senting the distance between South Anjboy and Camden, and New Castle and Fienchtowu (Elkton), over which the mail was carried by the stagecoach contractors in l.s;j4, it does not ai)pear that Postmaster- General Barry was at all extravagant in his anticipations. During the past year the increase in miles of railroad route over the preceding year was 8,091, or 9.82 per cent. ESTIMATE FOR 1881. I append a table showing the expenditures for railway postal clerks (new designation), from 1877 to the present time : Expenditures «n account of eniployi's of raihcay mail service (railwa;/ pontal clrrk$) 1877 to lS-'i2, aud estimate for the same for lbcJ4. * S M *i s. ^ FiBcal year ending Juuo 30— B AM 1 • a c u b u a 5i w i^i s » Pi 1877 -- 2,500 (■'■-- - i lfi7g 2.608 2. 0<)8 io8 1 a.4« 6.79 1870 1880 2.IMrt 3:17 4.21 18S1 3.177 3,570 2J1 303 •a, "111, ihi'J WJ fa, 077, 120 00 471.140 M 207, 120 00 11.37 0.47 14. «S 1082 18^» Iggif > ApproprinlioD. t Eatlmato. The average annual ])er cent, of increase of each year over the pro ceding year from $l.',io(i,.>47.r>S in J.S77 to li'-iJlOjOtHJ appiDpriateil for 1883 is 7.20 per cent.; on which basis the cMiinato for l.SH^l .sliould br $3,977,120. It is believed, in view of the large incn*as«» made for the present iiscal year, and tlui facility with which expenditures ean Im^ rej; iilated under the new organization, that this increaw* will !>»• KUllleienf to enable postal clerks to bo ajipointCil upon new niilroads as fust as completed, where the amount of mail to be handled is large onuiigh lo justify their appointment. 900 PAPERS ACCOMPANYING THE MAIL DISTRIBUTED, ERRORS CHECKED, v«tC. During the ])ast year the railway postal clerks handled and distrib- uted 2,155,L'l 3,880 letters and postal cards, and 1,1578,176,600 pieces of other mail matter, or a total of all classes of ordinary mail matter of 0,433,390,480, besides 14,234,310 registered packages and 570,483 through registered pouches. This was an increase over 1881 of 351,230, 160 letters, or 19.48 i)er cent., and of other mail matter of 228,880,250, or 21.82 per cent., and a total increase of all classes of mail matter of 580,110,410, or 20.33 per cent. The increase of registered packages and pouches handled over the number reported last year is 2,776,028, or 23.9 per cent. In the distribution of this matter 902,489 errors were made, or one for every 3,805 pieces handled, against one in every 3,624 pieces han- dled in 1881, one in every 3,482 pieces handled during 1880, and one in every 3,469 pieces handled in 1879. These figures show that the clerks continue to improve in accuracy in distribution with the increase of the mails. During the past year 405,706 errors were checked against postmasters as against 454,349 errors in 1881, which shows that the dis- tribution at post-offices has improved during the year. Tables C, D', and E\ hereto appended, give the details of which the foregoing is a synopsis. FACING SLIPS. The regulations require postal clerks to place upon each letter package and in eaeh sack of other mail matter made up bj them to be redistrib- uted in another railway post-office, or post-office, a sli]) of paper called a " facing slip," about four inches long by two and one-half inches wide, and bearing on its lace, either printed or written, the descriptive title and destination of the mail forwarded under it, the postmark of the rail- way x)ost-office and direction moving, and the name of the clerk making up the mail. These slips are also placed inside of packages and sacks made up direct for a post-office. The clerk who ox)ens one of these packages or sacks, if the package or sack has been missent or misdirected, notes the fact upon the slip, which he retains, and sends the package or sack in the proper direction accompanied by one of his own slips. If the package or sack is properly addressed, the clerk notes upon the slip whether any letters, &c., have been placed therein which should have been sent in another direction or included in s«me other package or sack, giving a description of the same, and placing his name and post- mark upon the incorrect slip. At the end of each trip a report is made to the division superintendent of the mail received, distributed, and de- livered upon the trip, giving the number of packages of letters and sacks of other mail distributed. With this report are inclosed all incorrect slips. Tables C, D\ and E^ are consolidated from these trip reports. IJe- l)eated ;tctual counts have enabled this office to fix upon the average number of letters in a package as 40, and of pieces of other mail matter in a sack as 150, and by multiplying the number of packages and sacks by these figures respectively an approximate estimate of the work i)er- formed is obtained. It must be remembered, however, that the totals thus obtained are largely in excess of the entire number of letters, &c., mailed in the United States during the year, as every time a letter or paper is distributed it is counted, and while one distribution takes a large number of pieces of mail to their destination, a still larger number REPORT OF THE POSTMASTER-GENERAL. 901 require two or more distributions before each piece is placed in a direct package or sack for the ])Ostonic<' to which it is achlressed. It appears from Table C that during tiie year Gl.',t()8,lUl letter pack- ages and sacks of otlicr mail were distributed, each of which nHjuired a facing shp to accompany it. One half may safely be add»'laced in direct ])ackages aiid sacks, making a total of93,G12,28G facing slips used by this service during the year. Th»- number of blank slips furnished by the blank agency is reiiorted by thi- superintendent as .'}ii,73(l,GOO. The remainder, about sixty millions, "wen* procured by the clerks at tludr own expense with the information printed thereon, which is required by the regulations to be either luinted or written. The average })rice i)ai(l by the clerks for i)rinting. the i)apei- (manila wi-apping) being furnished by the blank agency, is J.j cents per thousand. It thus ai>pears that the postal clerks contribiit<'d out of their own scanty pay about !jir»,0()0 for the improvement of the postal service during the past year. It is greatly to be desired that the use of printed slii)S be made general, as it contributes very largely to accuracy in distribution and dispatch of the mails, but I do not think it right to require clerks to have them i)rinked at their own exiu'nse. The ])rint- ing of these slips ought to be done at tlivision headcpiarters, under the supervision of the superintendent, upon paper furnished as now by the blank agency. I have for some time been reluctant to approve requisi- tions for pai)er belonging to the postal servic<' to bo deliver«'(l to outside parties for printing and cutting into slii)s for the use of i)ostal ch*rks, and have only done so in rare instances, because the intenvst of the service seemed to demand it. By an expenditun- of not over $1,000 at each division headquarters a press, paper-cutter, tyi)e, &<•., could be purchased, and postal clerks could be detailed to i)rint and issue the slips as needed. 1 would therefore re«iuest that Congress be aske«l to authorize the Postmaster General to expend out of the appropriation for transportation of the mails by railroads, not to exceed nine thou- sand dollars for the purchase of i)resses, pai)er-cuttera, ami printing ma- terial, to be used at the several division lieadquarters in printing fuciug slips for this service. CASE EXA:sriNATIOX.^— CHIEF CLEUKS. Tables F' and G', hereto api)ended, show the results of the exam- inationfi of the railway i)ostal clerks dining the year in the distribution of cards bearing the names of post-olliees into cases labeled witli the States and counties in which the jwist otlices are located. These exam- inations are conducted by ]>oslal clerks of class live, at a salary of $1,400 per annum, who are detailed, on account of their superior knowl- edge of the service and their execulivr ability, as (-hief clerks t«» Kui>er- intend these examinations, and also to assist division superintendents at important railroad junctions in the general management of the service. In the discharge of these duties they are necessarily compelh-d to travel a great deal, involving (vmsiderable additional expense, for whiih they ought to be repaid. I therefore recommend that Congress Ih» askele I, appendt'd to the report of the Second Assistant rostmaster-General. It is 1h}- lieved that the increase of business over existing trunk lines and the completion of missing links in nearly completed new trunk linos will necessitate an additional appropriation for 1884 of .*1()(),0(H», and I there- fore recommend that an appropriation of $J,GL'G,000 be asked for rail- way postal cars for 1884. LOCAL UAILWAY POST-OFFICE SERVICE. Much inconvenience is experienced by the inhabitants of the towns and villages along some of the lines of railroad traveled by the rail- way post-offices carrying the great through mails, on account of the in convenience to business men of the hours at which the railway post- offices arrive and depart. Upon most of these roads lU'commodation trains are run to and from the principal terminals for distances of ICKt miles, more or less. It will be a great benefit to the i)eople living along these lines if postal clerks can be placed upon these accomniodation trains, and tlie revenues of the department would be, increased by tbe additional number of letters which Avould be written when business men could write in the morning to their correspondents in the city or in the neighboring towns and receive a reply in the evening of tin* same day. It is believed that with the additional appropriation asked for railway postal clerks the service can be placed upon such trains where it is most needed. Wherever the correspondence already exist ing is sufficient to warrant the establishment of a railway post-office (new designation), the correspondence will double soon after such facil- ities are furnished for its more speedy exchange. FAST MAILS AiS'D SPECIAL FACILITIES. The appropriation for special facilities for 1882 was $425,000. A de- tailed statement of the manner in which the approj)riation was expende. m., and Chicago the second day at G a. m. Ti*ain lea%ing New York at 4.35 a. m. Three postal cars on this train, New York to Syracuse; two from Syracuse to Buffalo, and one from Buffalo to Chicago. This train was established at the instance of the Post-Office Dei)artment as special to Albany, where the postal cars were transferred to the regular train "made up" there for Buffalo, and from Buffalo to Chicago on the limited express, where it arrived at 9.40 a. m. At Fishkill it connected with the Millersville and Dutchess Junction E. P. O. It delivered mail at Newburgh at 6.10 a. m. instead of 10.01 a. m.; Poughkeepsie, at C.30 a. m. instead of 10.36 a. m. At Ehineclift' it connected with the Boston Corners and Ehiueclift' E. P. O. Delivered the mail at Ehinecliff, Eondout, and Kingston at 6.54 a. m. instead of 11.08 a. m.; Hudson, 7.32 a. m. instead of 12.01 p. m.; Albany, 8.20 a. m. instead of 1 p. m.; Troy, 8.50 a. m. instead of 1.15 p. in.; Sche- nectady at 9 a. m. instead of 1.55 p. m.; Little Falls at 10.45 a. m, in- stead of 3.50 p. m. ; Utica, 11.22 a. m. instead of 4.30 p. in. ; Eome, 11.53 a. m. instead of 5.09 p. m.; Syracuse at 1 p. m. instead of 6.25 p. m.; Eochester, 4.05 p. m. instead of 11.05 p. m.; Buffalo, 6.30 p. m. instead of midnight. Formerly these postal cars left New York at 8 a. m. and arrived at Chicago the following day at 7.40 p. m. The arrival at 9.40 a. m. instead of 7.40 p. m. is equivalent to the saving of one business day to Chicago, and for all points west and northwest of Chicago, as all the principal connections are made at Chicago; and this is particu- larly the case for all jjoints west of Omaha, as the Union Pacific Railroad only runs one train j^er day, and this train made the connection. The southwestern mails from New York were sent via the Pennsyl- vania Eailroad, yet there was a large accumulation of mail on this train for that section, and the connection was made at Toledo, Ohio, which saved as much time as for points west of Chicago. Train leaving New York at 8.50 p. m. There were three postal cars on this train that ran special with express cars (no passengers) to Cleve- land, Ohio (a distance of six hundred and twenty-six miles). Form- erly this mail left New Yorlc at 6 p. m., which necessitated a close in the New York office at 4 p. m., too early to get all the mail, as there is a large amount of mail posted between the closing for the 6 p. m. train and that for the 8.30 p. m. train, and all of the mail that accumulated between the hours above named and \Tas forwarded at 8.50 p. m. gained twelve hours. This train received at Albany the mail that left Boston at 6 p. m., whereas if the postal cars left New York at 6 p. m. it would require a departure from Boston at 3 p, ni. This train received and delivered mail at all important points between New Y'ork and Buffalo, where it arrived at 9.15 a. m.; Erie, Pa., 11.31 a. m.; Cleveland, Ohio, 1.55 p. m. At this point connections were made for the South and Southwest, viz: Cincinnati, arriving at 11.15 p. m.; Louisville, 8.20 a. m.: and Saint Louis, at 8.20 a. m. This train delivered and received REPORT OP THE P03TMA8TER-GENERAL. 906 mail at all oflQw^s betwetMi Biitlalo and Clevclaml and all of the larger offices between Cleveland and Chicago; anived at ToUmIo 5.30 p. m.; Chicago, the secoud morning atG a. m., in time for the first delivery and to make all outward connections. Mail that left New York at 8.50 p. m. arrived at Cleveland, also Toledo, in time for delivery the following day; also at all intermediate points. New York to Pittuhxinih. (Uncitniati, Saijit Louin, and Cliiaigo (Penn- sylvania Ilailroad; Pittsi>urgh, Chicago and Saint Louis Railroad; and Fort Wayne and Chicago IJailroad). — This arnnigcment was for a fast mail leaving New York at 8 p. m., arriving at Pittsburgh the following morning, Cincinnati the following night, and Saint l.ouis tin- second morning; and for another fast mail that left New York at 8 a. m., whidi now leaves at 4.35 a. m. The 4,35 a. m. train from New York hauleuis- ville and Nashville Kailroad, had a direct connection to New Orleans, also to Mem]>his, Tenn. The 8 p. m. train Irom New York carried three ixtstal cars. On the 1st day of July, 1881, there was a fast mail established on the Penn- sylvania Railroad between New York ami Cobimbus, Ohio, leaving New York at 8.35 p. m., after tlie ress that left New York two hours and thirty minutes earlier. AtC'olumbus tlie postal cars attached to this train were sei)arated, one goingtoCineinnati, Ohio, on the ivgu- lar fast express, and the other two going to Saint Louis, Mo., via Indianapolis, Iiul., on the regular express and i)assenger train, arriv- ing at Saint Louis, ]\Io., in time to make a connection with all moruiug outward trains. The late departure at New York largely increases the amount of mail forwarded on this train, which is advanced twelve hours. .lanuary 21, 1S82, the schedule of this lirst-meutioneil train was changed to arrive at Pittsburgh at 1.50 p. m., thereby losing the morn- ingconneetion at lMtts])urgh. New Yorl- to Saranuah, (in., .farksonrillr, /•'/«/., ilv. (Pennsylvania Kailroad: Richmond, !• ledericksburgh and Potoniae Ifaihoad: Rich- mond and Petersbiuuh R:iilroad: \\'ilmington and Weldon liailroad : Petersburgii Kailroiul: Wilmington, Cobiml)ns ami Augusta Railroad: North-Eastenr Railroad: Savannah and Charleston Railroa0a. m. instead of 3.:'.«; ji. m.: Washington, 11.20 a. m. instead of 4.40 p. m. ; Richmond, 3 p. m. instead of 9.50 p. m.; PetersburgU 906 PAPERS ACCOMPANYING THE at 4 p. m. instead of 10.55 p. ni. ; Wcklon, (J p. m. instead of 1.20 a. m. ; Wilmington, 11.05 \). m. instead of 7.05 i». ni. ; I'Morence, li.47 a. ni. instead of 11.40 a. ni. ; Columbia, 0.10 a. ni. instead of 4.25 p. m. ; Auj^nsta, 9.52 a. tn. instead of 8.40 p. m. ; (Jliailestou, 0.50 a. lu. instead of 4.25 p. m. ; Savannali, 10.45 a. m. instead of 9.40 p. ui., and connected with train that arrived at Jacksonville at 5.30 p. m. This line received and delivered mail at all interinediatc })Oints. Richmond to Atlanta^ Ga. (Richmond and Danville llailroad). This was for fast mail to Atlanta, Ga., November 20, 1881. It was trans- ferred to start from Washington instead of Richmond, which did not materially increase the expense, and February 12, 1882, was discon- tinued by the railroad company. While in operation it left Richmond on the arrival of the fast mail from the North, and arrived at Atlanta at 11 a. m. By the regular train the mail would have arrived at 12 mid- night. It connected with the noon train out of Atlanta, and arrived at New Orleans at 10.22 a. m. instead of 10.02 p. m. There was a postal car on this train, and mails were delivered at all intermediate offices. All mail for points west of Atlanta was advanced twelve hours, and New Orleans received the benefits of one business day. Alexandria to Lynchhun/h, Va. (Virginia Midland Railroad). — This was for a night train on this road with through connections to the South. Prior to February 12, 1882, it left at 10.15 p. m. and made the same con- nections to Atlanta as the line via Richmond that left Washington at 5 p.m. Since that date it has left at 7 p. m. Tocoi to ^aint Augustine, Fla. (Saint John's Railway). — This was for twenty-six additional round trips in connection with the night boat on the Saint John's River. ESTIMATES FOE. SPECIAL FACILITIES FOR 1884. Thus far during the present year only a small portion of the appro- priation for special facilities has been expended, on account of the in- ability in most instances of the Postmaster-General to agree with the railroad companies upon any terms that he believed to be advantageous to the department. On the lines from W^ashington, D. C., to Atlanta, Ga., the companies withdrew the fast service before the end of the last fiscal year, and abandoned all claim to any allowance out of the appro- priation. The Pennsylvania Railroad Company also withdrew the fast mail between New York and Pittsburgh, Pa. The service over that route is now slow and unsatisfactory. The Atlantic Coast Line from New York to Charleston, S. C, has been continued under the same arrangement as last year. It is believed, however, that in the near future the Postmaster-General will be able to make arrangements for the establishment of fast mail service where it is needed, upon terms which will be lust to the railroads, and advantageous to the department and to the public. It is necessary that this appropriation be continued as long as the present method of adjusting the compensation of railroads for carrying the mail is kept up, in order that the Postmaster-General may have the power and authority to meet emergencies. I would therefore respectfully recommend that the appropriation for the next fiscal year be the same as it is for the present, viz, $000,000. CONCLUSION. In concluding my last annual report, after expressing my personal obligations to the assistant superintendents and railway postal clerks for the intelligence, zeal, fidelity, and energy with which they had dis- chai'ged the difficult, responsible, and often dangerous duties intrusted REPORT OP THE POSTMASTER-GENERAL. 907 to their care, I ventured the stateineut that uo civil service in the world could show their superiors. Even having in mind the improvement in the cfliciency of the service durin;? the pa.st year, I can say no more than Avhat I then said. Their .services deserve to Ite rccojrnized in .sonit^ thint;- better than mere words. The act <»f Conyrcs.s reor^ranizin^ the service was but the tirst step in this direction, it renjains for Con- gress to enact that their tenure of office .sliall be made i»ernianenr (lur- ing good behavior, and that deductions of pay for absences without leave, &c., orfor minor violations of the regulations, shall not be turned into the Treasury as now, but shall be used to provide for the uecessi- ties of tho.se disabled in the service, and for the famihes of those killed in the lino of duty. Whatever objections may with i)ropriet3' be urged against such leg- islation in regard to persons holding otln-r <'ivil oflices uiuler the United States, they only .servo as additional arguments in favor of the.se acts of justice to po.stal clerks. AVJiile other civil emjjloyes receive higher salaries for mere clerical Avork requiring n<» special preparatory study, the highest pay a postal clerk is allowed by law is $1,400 per annum, and this can only be obtained after years of study and manifestation of clerical and executive abilities, such as in other branches of the civil service would be rewarded by a far higher compensation, to say noth- ing of the con.stant danger of railroad accidents to which all postal clerks are exjiosed. It must not be forgotten, that but for tin- fact that during the i)ast twenty-two years the tenureof ollice of all ])ostal clerks has been, by the general practice ostal facilities as fast as such wants arise; and never befon' have the postal clerks been traint'd by .so nniny years of exi)erience and study lo secure the greatest possil»le certainty, celerity, and security in ffuwarding to its destiuatiun every letter and other article of mail nmtter intrusted to their care. I have the honor to be, sir, verv respectfully, your obedient .'tervant, W. li. TUOMPSON, (j'oural SupnintemlcHt. Hon. R. A. Elmeu, Second Assistant rostmasterOcncra!. 908 PAPERS ACCOMPANYING THE '?^ OQ •p.i[i,nL>q K.»r;i:?i,)»!(l 11.1.1. );s!7foj iB!>oj, linm A'.nuiip.io jo Kv.p.jid yuB 8Ji>i;ai jo aaqcnnH [u)ox 2 -eiunra g i. -iJJTjdB pais B.IBO ^isjox •OA.ioeda III sjuauij.iBd V ■Dsn nt S'juauijjBdY Ci M- ^ »o o ti c « > o ir; n Ci pj ci ■: ) Si ■v m ci lA -^ rx. in c ^ -t ir. t- ci o CT CIO ^ ir^ (.» :o ^1 cc CO r-lf-lOMOi 00(00 f!e -c in i~ T(. .n T-( tH C5 O; r- CC 00 « t^ CQ.Tj'i-ti-lOr-'^r-tCO T-l CO iH rH e-l CO H r^ eoostnooo» •esn m sjvj 8ioq_^ i-m«iMoi>eor-.(M .iq pnnuojjod 03IA.198 pBOj]itj.i JO saiini iBnnny •un.i pyijap qsTqAv .lOAO pBoaiiBJ JO eopK •sjijap £.([ una ea^ij^ t~oO"*o ooooocot^iocsoift TjJ Ti^ rl r-3 fo ci lo 'X h5 t^ CO CO -> CQ -r*. O lO rH oo^-*cs OOOIC^'.*0000..#CC COOOWCOCSCOrPt^ — t^t^O'^f-.CiOOOO l^COCO 2 k f-^ DC s: _-; -^ O 3 ^ .. ~ O p o o o • SHESSm C? "S CC C7 cc ^ "o 3 ■= ': 's > k")— . § " — ■^.5 £ i; g ° ^*j es " H * o i a a,'' ^ a R o s -^ O C3" S>^'S'*H fS p CO s c C H a c - cB IIIUl Ss-S^ -"" g a ■=■ a";S a F3 I c: ~ O c'^^la o « ^.2 a c 2 - a f- .5 - " £. .5 >,>^ e-t; ~ _I C(|5 cc - - « a r:r f^ — • -»-' ..^Scffegl « cS _ o o'~-* « a^.St^'S^ J — _= C C3 _-J [5 2 A .2 ,* 5 "^ •- Pt«fc*^P m 1^,-^aiif r= >-..:i .2 = 'i 3 X -g.i^ a — REPORT OF THE POSTMASTER-GENERAL. 909 Comparative statement of the railway mail ncrrice, IStJO to 1882. * Including oU-nmboat service, no iM>pnr*tc irport. tServic« 8u«i>onnt:.ri«-r\-l(i'. , ., , . ,, i / ., i t ^i II This colnniii i« takiii fivin PooiV* Maunal. and !•• mndo up to llir mil of tlir ral^ndnr yf*r Th« other columns ripvcsciit th«> l«tnt<^ of ihi> hi-fi- i>.- nt tlj.- < li«.> ■'! o«rh tl- n| ymv. The lORt of snrvico iiiitl nf ciiiplov ca of tho railw^i mall ouivico i» Ukui Ihun Uie npvtXM 01 (heSro end Assistaut l'ustniiistciUom.'ii»l. 910 PAPERS ACCOMPANYING THE Statement of casiialties in the railway mail service during the fiscal year ended June 30, 1882. July 1, 1881. — The freight train and construction train collided this morning at 8.20 near Corinth, Miss., wrecking the mail car. The mail was transferred to a baggage car and distributed along the line as far as practicable, as most of it was made up. The mails were delayed but none lost, and no one was injured. July 1, 1881. — Train collided with a freight train at Templeton, Ind., smashing the postal car. The mail was transferred to a baggage car and taken to Chicago. No local work could be done north of Temple- ton, and all the connections were missed. July 1, 1881. — At 3.48 this afternoon a postal clerk on the fast train from Saint Lonis to Indianapolis on the Vandalia Railroad, threw a leather pouch from the mail car at ^armony, Ind., in such a manner that the pouch was drawn under the train and badly mutilated. The mail in the pouch was cut up and most of it destroyed. There were no registered packages in the pouch. July 13, 1881. — Train leaving Nashville, Tenn., at 8.40 a. m. for Evansville, Ind., was wrecked and the mail car overturned. Nobody was hurt and nothing lost and the mail transferred in good order. July 13, 1881. — A fire, originating it is supposed from cinders from the engine, broke out in the Decatur and Montgomery E. P. O. this day, badly burning registered pouches Nos. 3023 and 2886 and four canvas sacks of mail. The contents of all the pouches were saved, though the mail was more or less damaged. July 22, 1881. — The steamer Marlin Speed sank this morning 65 miles above Pine Blujff at 2 o'clock, but all the mail was saved. July 23, 1881. — The steamer Cornie Brandon sank to-day about 90 miles below Shreveport, La. The mail was somewhat damaged by the mud and water, but was saved and forwarded to destination. July 24, 1881.— Train No. 2 left Cheyenne for Denver to- day 6 hours late, and when about 3 miles south of Berthoud, Colo., while running over a culvert, which was washed out by the heavy rains, broke through demolishing the engine, tender, and mail car. The engineer was killed outright and the foreman of the car was badly wounded. J. D. La Course, the route agent on the mail car, was cut about the face and otherwise bruised, but succeeded in saving all the registered matter and most of the other mail, the rest being totally destroyed and carried off by the water. July 31, 1881. — The United States mail packet Osceola Belle was totally destroyed by lire between 6 and 7 o'clock in the evening. The personal effects of the mail messenger, together with some of the govern- ment property were burned, but the mail was saved. August 4, 1881. — About 1 mile north of Plaquemine the engiue of train JNo. 3 left the track and ran into the ditch, badly damaging the postal car. All of the mail was saved and was forwarded to destina- tion after some detention. August 6, 1881. — Train wrecked 6 miles east of Kokomo, Ind. En- gine smashed and mail car thrown on its side. Mail all safe but delayed 13 hoars. August 6, 1881. — Steamer Plow Boy was sunk in the Arkansas Eiver this morning, about 25 miles above Pine Bluff'. The mail was saved and delivered by stage mail. REPORT OF THE POSTMASTER-GENERAL. 911 August 8, 1881. — Mail stoanior Laura Lee went afjroiiiul tliis morn- ing. The mail was saved, but (klaye. C, it was run into by the shifting engine, throwing two sections of the letter caaes into the middle of the tloor, breaking three lamps and soaking several hundred letters with oil. The letters were forwarded to their destina- tion. September 24, 1881. — Tornado caught us at West Quincy^ blowing the doors open and the ventilator from olV the top of the car, wetting all of the letters. Water stood G inches high on the tloor of the car. September 20, 1881. — By a collision between trains Nos. 40 and 47, Richmond, Va., and Wilmington, N. C, railway post ()nice, at Chester, Va., W. S. Hawkins, who was on duty on No. 40, and (I. P. liourk, on No. 47, were severely injured. N. H. Jones, of the same line, is now unable to perform duty on account of injuries re<'eived a few days ago. The mail was secured and transferred to another car witiiout its having sustained any damage. September 2!>, 1881. — The mail train on the Fort Dodge and Des Moines lino encountered a very severe wind-storm near liipley, Iowa, and the entire train was blown olf the track and overtunieOf»t- master. October 3, 1881.— Postal car Montgomery, M. W. King in rliarge, was comi)letcly wrecked south of Hay Minctte, Ala. Mr. King wjis badly bruised anpi Ifivi'r at the railroad bridge bet\v(M>n Itock Island, 111. and Davenport, Iowa, and two poiidirs containing two rcgistcrc«l pa«'kages were lost. October 21, 1881. — Within 2 miles of Augusta, (la., tlic ciiLriuc of (he train ran over a cow, throwing it under the mail car causing n com plete smash-up. The tlooring of the nniil c^r uns; . ipMi-.l m. runin-' tin. 912 PAPERS ACCOMPANYING THE wheels through. The mail was transferred to another car without de- lay and forwarded. November 7, 1881. — An aecident occurred to the train of the Gaylord and Bay City agent, hound south, by which the rnail car was badly damaged and the passenger coaches partially destroyed. The agent was not seriously injured, and none of the mail was lost. He has not been able to find his postmarking stamp since the accident. November 13, 1881. — Mail • car out of Cleveland, Tenn., ran ofif the track. No one injured, and no mail lost. Mail was delayed 3 hours. November 17, 1881. — Train No. 15, Lehigh Valley Eailroad, was wrecked at Wyalusing, and the mail badly scorched. With the excep- iton of one pouch, tliat was burned, the mail was forwarded. November 19, 1881. — The Havana and Springfield train bound south fell through a bridge 5 miles north of Springfield. Eoute Agent W. S. Allen was considerably hurt. The mail was all saved. November 28, 1881. — Pouch and sack thrown oft" at Broken Straw, N. Y., struck edge of platform and bounded back against the car, badly damaging the canvas sack containing the paper mail, which was partially destroyed. The pouch was uninjured. December 4, 1881. — Passenger train on the Western North Carolina Eaili'oad ran oft' the track, and was precipitated down an embankment. There was a mail car attached to the train, which was completely wrecked. December 5, 1881. — An accident occurred to the Louisville and Nash- ville railway iwst-oflBce, bound north, train No. 4, day line, at Madison, Tenn., caused by the locomotive breaking loose from the train. The automatic brake on the ren)aiuder of the train failed to act, letting the cars overtake the engine, which was standing still. Tlie shock was so great as to break in the front end of the postal car, knocking down the letter case and breaking the pouch rack. J. M. Bailhache, head clerk, and J. B. Brawner, assistant clerk, were on duty, and were both thrown down and somewhat injured. Mr. Bailhache was unable to per- form duty for one week, and Mr. Brawner has not been on duty since the accident (December 19). A portion of the letter mail was damaged by water, but all was recovered from the wreck, and forwarded to destination. December 20, 1881. — Mail steamer J. S. Hopkins, running between Evansville, Ind., and Cairo, III., was totally burned. The government l)roperty on the boat was destroyed, but the mail was saved. December 23, 1881. — Mail train between Peoria, 111., and Evansville, Ind., was ditched and wrecked near Lincoln, 111. No mail lost. Eoute Agent O. F. Ashmore was badly bruised. December- 23, 1881. — A fire broke out in the Boston and Troy railway post-office, destroying some sacks of paper mail. It was extinguished before any material damage was done. December 24, 1881. — ]\[ail sack was thrown against the station-house at Pataskala, Ohio, rebounding and falling under the cars. The saek was badly damaged, but the contents were saved. December 27, 1S81. — Mail car No. 1 on the Texas and Saint Louis Eailroad was burned near Wheatville, Tex. All the mail, with the exception of one registered package, was saved and delivered. December 28, 1881. — Train No. 2, with postal car, collided with helper engine. No damage was done to the mail, but Eoute Agent S. N. Jack- son was severely bruised in jumping from the car. Jannary 1, 1882. — The baggage car on train No. 5, Canada Southern Eailroad, was totally destroyed by fire this morning. It contained all REPORT OF THE POSTMASTER-GENERAL. 913 the letter aud paper mail for Micliij;an. The letter mail was very badly damaged bj' the water, while the i)aper mail was almost totally mined. What was saved was sent to the Detroit post-office and then? delivered. January 1, 1882. — Ba<;g:a2,e ear on train No. 5, raeifu; Express, eanjrht on Are betweeu Highgato and lUdgetown, and a number of bags (Mm- taining mail matter were assing a i)oint H mrles east of Wells, Me., broke through an iron bridge, causing the nsir passenger ears to crush in the end of the postal car, which almost immediately took fire. The jtostal car and mail, with exception of one pouch, four registered ])ackag<'s, and b(»oks for record of registered mail, and a lew letters picked up from the \V\o\\ werost-oflice trains on tho Charlest<»n and kSavaiinah liailroad c(»llided near Adams Kun, S. C, .some 27 niilos from Charlest(m, S. C. The south-bound jiostal car, Xo. 10, was in charge of Head Clerk IT. A. Fox, Clerk \). H. Craft, and Acting Kouto Agent (ieoi-ge E. Osborne. The northbound iK»stal. Xo. I.'J, was in cluirge of Clerk W. II. Uurbridge. accompanied by Chief Ilea*! Clerk ^Mansfield. The two postal cars were comi)letely demolishocrIy for- Avarded. . January 20, 1SS2.— Sack of paper mail was thrown from tram X«». 1. Pittsburgh. Cincinnati and Saint Louis Kailroad, at Presden. Ohio, and .-)8 Ab 914 PAPERS ACCOMPANYING THE drawn under the cars and badly damaged. About thirty papers were destroyed. January 28, 1882. — Tlio catcher pouch was thrown from the Saint Al- bans and Boston railway post-office at Danbury, N. H., bounding,' bact under the train. The pouch was completely destroyed, together with its contents. Besides the ordinary mail, it contained a registered pack- age from Chicago, 111., said to contain $24. January 31, 1882. — Tie-sack containing paper mail for Marseilles, Ind., was thrown from the Chicago and Iowa City railway post-office at the depot at that place, bounding back and falling under the cars, where it was badly cut. The contents were i)artially destroyed. February 1, 1882. — The catcher i)ouch for Grafton, Mass., thrown from the Boston and Albany railway post-office, was carried on to Westbor- ough, having fallen under the train at Grafton. The pouch and contents were very badly damaged. February 2, 1882. — Pouch thrown from Boston and Troy railway post- office atNorth Leominster, Mass., bounded under the train and was carried to Fitchburgh, Mass. The paper mail was destroyed, but the letter mail was saved. February 3, 1882. — Postal car No. 75, Chicago and Cincinnati railway post-office, was badly wrecked at Montmorency, Ind., on account of en- gine going off the track. Mail was all saved, l3ut in a very demoralized condition, a large number of letters being saturated with oil from broken lamps. The mail was gathered up and turned into the Chicago post- office. February 5, 1882. — The night express on the Chicago and Iowa City route ran over a tie-sack at the depot at Marseilles, Ind., ruining the sack and its contents. February!^ 1882. — The mail train upon the Tesarkana, Ark., and Whitesborough,Tex., route (Transcontinental Division Texas and Pacific Eailway), was wrecked near Honey Grove, Tex. The locomotive and mail car went through a bridge falling some thirty feet, killing the engi- neer and fireman. Substitute Route Agent J. H. Smith was buried in the wreck and had to be cut out to be released. His injuries were not serious. The mails were saved without material damage. February 7, 1882. — Mail sack thrown from train liTo. 1, Albany and New York railway post-office, at Yonkers, struck a snow-bank and bounded back under the train. The sack and its contents were entirely destroyed. February 7, 1882. — The catcher pouch was knocked from the crane at East Orange, N. J., and was run over by the cars, partially destroying the pouch and its contents. February 10, 1882. — Pouch for Thompsonville, Conn., thrown from the Boston and New York railway post-office, struck the gate at the street- crossing at Thompsonville, rebounding under the cars. The pouch was very badly damaged and a number of papers destroyed. The letter mail was uninjured. February 15, 1882. — "Washington and Charlotte railway post-office ran into a land slide-near Orlando, Va., on the Virginia Midland Eailroad, resulting in the death of the engineer and injuring the fireman and head clerk, James M. T. Gleeson. No mails were lost or damaged. Mr. Glee- son was incapacitated from duty for 29 days. February 16, 1882. — Mail thrown from train No. I, Albany and New York railway post-office, at Rhinecliff, N. Y., was run over by the cars and badly damaged. February 19, 1882. — Mail train leaving Charlotte for Wilmington, N. C, was thrown from the track by a broken rail. The mail car was REPORT OF THE POSTMASTER-GENERAL. 915 overturned aiul considerably broken up. The mail was slightly dam- aged and Eoute Agent U. T. liollins sonjewhat injured. Febn(ary22, 1882. — l*(/uch from Chicago and Burlington railway i»ost- office thrown oil" at Burlington, Iowa, was run over by switch-engine at that point and a small ])ortion of tho contents damaged. Februarij 27, 1882. — The Ciiicago and Cincinnati railway post-oflico le;iving Chicago at 8 p. ni. collided with a freight train at Ilomewood, 111., the postal car being badly wrecked. Xo nmil was lost or damaged. March 1, 1882. — Train Xo. 110 wa.s wrecked near Toll Gate, Va., and the baggage car iu which there were some sacks of paper mail was burned, together with the mail it contained. March 4, 1882. — Pouch thrown from tho Chicago and Saint Louis rail- way postofiico, night line, for the y liu^ I'orce of the current. He returned as soon as possible, and saved all of tlie mail that could be recovered. About one-fourth of the mail was swept away, and the paper mail Avas so thoroughly soaked that it was of no account whatever. May 11, 1S82. — ]Mail train, south bound, on the Kansas and Texas Division of the Missouri Pacific Railway, was wrecked in a collision near Oswego, Kaus., by a runaway engine. The tender to engine of mail train was ]>artially telescoped into the postal car, entirely demolish- ing the letter cases and damaging a portion of the mail. Head Clerk J. S. Weaver, IlaTinibal and Denison railway post-office, was bruised considerably. Assistant Eailway Postal Clerk H. Kendall escaped without injury. 31ajj 11, 1882. — i\Iail train on the jMeniphis an, LSSLf.— Traill >i>. .VJ, k-aNiu-- \\a.>,!iiii;,'lanville. Mcs.srs. (.'ook, Larrabee, aiitl Carr, tin; clerks on duly in the iK)Stal ear, Avere knocked ahotii ami cut and bruised, but not seriously. June I'O, 1S8L'.— The Chicago, Foreston and I)ubn«]uc railway post- oflice was wrecked a short distance east of Maryland, 111., the track havin^^ been \vashe»l out by a terrible rainstorm and waterspout. Head Clerk Best and O. 31. Wi!;'h were on duty ar the time. Mr. IJest was thrown out of the car into "i feet of water, and a i»ackaj;e of letters which he had in his hand was lost. He was not injured. iu)r was Mr. Welch. All of the mail was l>a«•' 1878 1 •-■.COH ]S79 • ■-', tWl) ISSO I -'.Wr, 1881 ! .'!. 177 188-J a,r.7o Total I UCfl X m , « u '•2-^ II "5 I-S1 ^-"7 •sii o^ <^-fi t-3 ui? b >t J> J5s X ^ = §? sS y, yar- cels from each State and Territory iu the United States traiismitted through the mails during the year ended June 30, 1882. No. 17. Statement showing the number and value of registered letters and packages forwarded for the Post-Office Department and Treasury Department during the fiscal year ended June 30, 1SS2. No. 18. Statement showing the increase of registered letters and.parcels REPORT OF THE POSTMASTER-GENERAL. 919 upou which fees were collected at twenty-fivo of tho h':uliijg cities «lur ing' the lisfal year einlcd June .'{(), 188L*, ovov tlic i»ivcc(lin;r year. No. 19. Statement .showiiifj the operations of the rc^^istry system at the cities of New York, Phihidclphia, <'hica;;(), Saint Louis, and Wash ingtou, during the fiscal year ended June 30, 1882. FINANCIAL STATE:\rENT. The receipts and expenditures of the department during the llscnl year ended June 30, 1882, were a.s follows: Receipfs: Letter postage, paid in mouey 4i»7, .Xi '.V2 Box rents l.VM, l:tt Jil Fiues and pcualtie.s 'Jii, 4vK5 '.»'.• Sales of postagc-stampg, stamped envelopes, ncwspajnr wrapp<'r?», and postal eardfl :H», 70:i, :c»7 0(» Dead letters for which no claimants could be found 7, IVfi" •»:'. Net revenue trom niouey-onk-r business .1«iii, TOT 'X> Miseelhineoiis '. .! 1,4*^1 G.'> Total 41.»<70.410 I.'. The expenditures for the aervieo of the year wore 40, U:tit, (i:i4 ?.'• Excess of receipts l.SW, TTri 4u In addition to. the expenditures for the serrice of the yenr, the «nni of $442,380.48 was paid on account of indcbtcilness of previous yonrs, making the total amount expended during the vear >'4U,4Sl*.02I.23. Of the S442,3SG.4S above, $390,314.58 was for the "service of the fiscal yeav ended June 30, 1881, which, added to the anu)unt ])reviously juiid ($39,251,730.40), as shown in the annual report of Die rostmastcr-Uen- eral for 1881, makes the total expenditures tiius far mar 13.S per cent., more than those of the i)receding year. The increase from the sale of postage-stami>'^, stampeil envelopes, and postal cards was * l.s(;7,»;n.«Mi. or 13.'.> percent.; IVom lutx rents and branch oOicis. .•j'l.VJ.tJ.sj..; t, ,n- in. I per cent.; from pro(t'(>ds of money -order business, $rM.l85.90, or 22 p«M- cent.; from tines and penalties, $4,075.."».'., or 29,0 ]mm- ceTit,; from dea.l letters, $1,073,23, or 10,2 per cent,: and from '-m .us" Koun-es. $3,007,11, or 9,5 j)er cent. There was a decreast- .. - ,!M. or 3.1 per cent., in the amount of letter post:iges i»anl in nu)ney. In Table No, .". will be found a statement showing the approprirttions by items for I he service of the last fiscal year, atid the amount s expended out of the same. The total amount ai>pn»p'':'*<''l ^•'>« ^I3..vi2,097.s;. covering forty-four .specific items. In thn. -i these ilcuia the fUll amuuiits aji|iroi)n:itcd Avcrcci;})euded; iu tbirty-seveu itciii.s Iberc wnvc uncxpcuckHl bahiiices aggreyutiui^- -'^3,512,513.11; and in tbe icinaiijin;; lour ite.uis the expenditures exceeded the appropriations in tlie total sum of $9,450.03, leaving a net excess of ai)piopiiations over expenditures of 83,503,063.08. The largest single unexpended balance was in "star service," the appropriation for Avhich was $7,b00,000, the expenditure $5,704,406.33, and the amount left unexpended $2,195,533.07. The appropriation for mail transportation by railroads was $10,608,282, of which $10,280,085 was expended, leaving an unexi)ended balance at the close of the year of $322,197. The expenditure for railroad trans- portation does not, however, cover the entire cost of that service, the law, as construed by the officers of the Treasury (sec v. 20, Stat., p. 420), providing that the earnings of certain of the Pacilic railroads for mail transportation shall not be treated among the expenditures of the Post-Office Department. The circumstances of the case are, briefly, that to aid in the construction of certain railroad lines to the Pacific Ocean the United States, by various acts of Congi-ess, issued to the com- panies constructing these lines large amounts of bonds, the princii^al of which, with the interest, was to be reimbursed at maturity. To assist in securing the payment of this indebtedness the government was authorized to withhold a portion or all of the earnings of the several roads for transporting the mails, &c., and to credit the companies with the amounts thus withheld in the accounts between them and the Treas- ury. Prior to 1879 the moneys so earned by these companies for trans- porting the mails were paid out of the usual appropriations for the serv- ice of the Post-Office Department by warrants in favor of the Secretary of the Treasury, and were, therefore, included in the expenditures of the department. Since that year, however, under the requirements of the act of Congress of March 3, 1879, before referred to, the amounts have been merely certified to the Register of the Treasury by the Auditoi' for the Post-Office Department, and credited on the books of the Treas- ury Department to the companies in their accounts with the government for principal and interest of the bonds. The amounts thus certified, as will appear from the Auditor's reports, have been as follows : For fiscal vear ended June 30, 1879 $712,209 31 For fiscalVear ended Jane 30, 1860 995,004 9:: For fiscal year ended June 30, 1881 1,100,089 »>:> For fiscal year ended June 30, 1882 1,214,185 37 Of the $1,214,185.37 certified during the last fiscal year 836,011.32 was for previous years, leaving the net amount for the service of the year $1,178,174.05. Under the law referred to none of the above amounts were included in the i)ostal expenditures for the years to which they severally belong. The amounts cover the entire earnings of the several companies for carrying the mails, together with those of their branch and leased lines. AMOUNT DRAWN FBOM THE TREASURY. The only sum drawn from the general Treasury during the year was the following, in accordance with special a])propriation made by Con- gress: To pay schedule claims authorized by act apjiroved August 5, 1882 (Statutes, Public No. 205, pp. 27 and 30), for the service of the year 1879 and prior vears, as appears more fullv bv the report of the Auditor, $6,505.12. li'El'UKT ni IHL li •> I M V'>i Li:-i.,i::M.i;A 1.. 921 CONDITIO.N uF DEllCli:>'CV APl'ROrKlATlONS. The foil owing statuiiu'iit shows tlii* condition of ai)iiii»iiri:itions fit»m the gtMioial Treasury to sni)i)ly (loticicncii's in tlic i)o.st;iI icNiMines, viz: 1. For the fiscal year ended June M), ISSL', th<* amount apitrojtriatcil from the Treasury to sujtply delicieniMes in tlie r)(»stal rc\enne w;u> $2,lo2,258, Mliich sum is still in the ^rcneial Treasury, subject to requi- sition. As the postal revenues will iiudouljtedly jnove sutlici«'nt to meet all the ohlijjatious. i);iid autl uni»aid, inenned durinjr the year, the whole amount of the a])proi»riation will icmain in the Treasury, and by operation of law will C4.'ase to be available alter the oOih of June, l?i84. 2. For the fiscal year ended June .'iO, 18S1, the amount appropriated out of the jjeucral Treasury to sui)ply estimated deficiencies in the postul revenue was $3,883,120, of which >«1,1U2,2'JU.(>.1 was lelt unexpen48 90 2. Amount of balances coiiipiomisfd 0,733 1>5» 143,282 8W Loss arwoiuit of credits ou Mispoudcd uccoiiiits 2, 617 &3 Balance 1 J0,4»k> 'Xi Of this amount $133,072.84 accrued between 1780 and 1.S50, the siis- peuded accounts for that period having been reviewed and fimdly ostnnice dei>osi- tories during the Inst fiscal year may be brielly stated as follows: At Treasury depositories: B.ilaneo subjeet in draft June ".'.0. l^r-l $: 5, «'►.'■ l,90r. :is Outstandinji wai rants .hmo :«», 1k.«^1 Cl.lCC iU» Aggregate depoisils durin;^ the year iMuleil JuiiolU), l-v-ci 'Jl. I.'i4;,(r70 .Vi Total -4.-«^.313^0 Amount of warrants jiaid during the y<'»r '' •''« <>.> Balance at depositories June 30, IS^J :.. -It.. ixC. KV Outstanding warrants June 30, 1h«2 H>, ICO «• Balauce subject to draft Junt- 30, 18^2 ::iri.M6 :t» 922 PAPERS ACCOMPANYING THE Transactions at these depositories in detail, with amount of increase or decrease as compared witli the proyious years are sliown in Table No. 4, accompanying this report. At post-o(ificc (lopositories : Balance subject to draft June 30, 1881 ^85,178 69 Less credit balance June 30, 18H1 122 2G 685, 056 43 Aggregate receipts during the quarter ended September 30, 1881 2,728,551 15 Total , 3,413,607 58 Disburscmenta during the quarter $1,880,711 98 Transferred to other depositories 1 , 582, 895 60 3, 413, 007 58 On the 30th September, 1881, the post-office draft system was abol- ished, and the eighty-six draft offices then existing were discontinued as such. On October 1, 1881, the warrant system was extended to in- clude all payments made to creditors of the department, except post- masters having balances due them, and excepting also the disburse- ments made under the authority of law by postmasters. Table ISTo. 5, submitted with this report, exhibits the receipts and disbursements at the different post-office depositories in detail. COIN'TRACTS ENTERED AND ACCOUNTS KEPT. During the year there were 3,865 contracts for mail service received from the Second Assistant Postmaster- General, and 19,210 orders of the Postmaster-General (of which 9,605 were double) recognizing mail service not under contract, curtailing or extending service, or modifying previous orders, beiug a decrease of 1,442 contracts and an increase of 3,936 orders as compared with the previous year. The contracts and orders were entered upon the books of the division of finance for refer- ence when acting upon reports from the Auditor for the- payment of mail contractors and other creditors of the department. The number of such reports received and acted upon during the year was 45,537, an increase of 3,490 over the previous year. Accounts were kept -with the Treasury, nine sub-treasuries, and thirty- niue designated depositories, involving the sum of $20,998,144.72, against which 38,851 warrants were issued. Accounts were also kept with eighty- six post-office depositories, involving the sum of $3,413,607.58, of v.hich $978,430.24 arose from the proceeds of the depository offices themselves and $1,750,120.91 from deposits by otber offices. Against the accumu- lations in the depository ottices 6,786 drafts were issued, amounting to $1,433,973.85. In addition to the amount paid out by draft, the sum of $396,738.13 was paid to route agents, railway post-otlice clerks, mail messengers, and letter-carriers, by the postmasters authorized to make such payments, the accounts for which were rendered monthly to this office. ESTIMATES FOR 1884. The postal vpvonne for the year ending June 30, 1884, is estimated nt.. $50, 670, 456 27 The expenditures for the year, as shown in the estimates that have been approved by the Postmaster-General, are placed at 46,741, 111 25 Leaving an estimated surplus of revenue of 3, 929, !>45 v-^ In estimating the revenue allowance is made for an annual increase of 10 i)er cent, on the revenue of the last fiscal year, making the esti- mated revenue for the present year $46,064,051.16, and for the next year REPORT OF THE POSTMASTER-GENERAL. 923 $50,670,456.27, as stated above. There was an increase of revenue for 1880 over 1879 at tlie rate of lO.S per cent., for 1881 over 1880 of 10.4 per cent., and for 1882 over 1881 of 13.8 ]>cr cent. The returns from a large number of the i)rincii)al ollices for the quarter ended September 30 of the present year indicate an increase of nearly 111 i)er cent, over the corresponding quarter of last year. The full amounts of the esti- mates ^re likely to be realized, unless there sliould be unexiiccted re- verses in the business prosperity of the country, or changes in the ex- isting classification of mail matter and the rates of i)osta.ir«'. iiijuriou.sly aflecting the postal revenue. APPROPRIATIONS, EXPENDITURES, AND E.STI:MAT1:S J <>i: i m, SKRV- ICE OF THIS OFFICE. The aggregate appropriations for the service of this olliee for the year ended June 30, 1882, were $l,074,.'544.3r>, of which $(J01)."J.S2.o:{ was ex- pended, leaving an unexpended balance of )? 104,562.32, or 15.3 percent, of the total amount a]>propriated. The expenditures for the year were only $22,428.04, or a little more than 2.5 per cent., over those of the preceding year. This slight excess, in face of the large increase in the supplies for which the expenditures were principally incurred, was owing to new contracts entered into at the beginning of the last liscal year at reduced rates for adhesive postage-stami)s and postal cards. The old contracts superseded others at still higher rates existing up to the 3Uth of June, 1877, so that the expenditures of this oflice for the year ended on that date were only $04,075.20, or 7 i)er cent., less tlian those for the fiscal year ended June 30, 1882, while the total number of postage-stamps, stamped envelopes, postal cards, and oflicial envelopes issuetl during the latter year was 701,982,00!>, or 65.2 per cent., in exces.s of the total number issued for the year 1877. The estimates for the next liscal year, with the explanations thereof, will be found in paper marked No. 1, at- tached to this report. DIVISION OF POSTAGE-STAMPS, STAMPJ.U ENVELOPES, AND POSTAL CARDS. The operations of this division during the year may be suniuiarize '"'"■'* • "♦' iiewsnuocr jind Deriodical stamps. 2.21 t..SO.".. vabietl at: of^ stami)ed ,. , , , , , _ _ stamped envelopes bearing a printed return request. 1(M).,(H.l..o. valued at $3,163,894.85; of newspai)er wrappers, 41.0S(;..-)0{», valued at $.".(Mt.- 208.80; of postal cards, .351,498,000, valued at $.3,516,015; and of onieml stamped enveloiM's and \\r;tpi)ers issued to the War Department forolVi- cial use, 2,()37,5(M), valued at $29,306.50; making a total number of 1,740,571,038, and a total value of $40,978,05.3. 12. These issues show an increase in value ovt-r those of the ]»i-eroding year as follows: Of ordinary postage stajnps. $4,(k3S,90l, or 19.2 imt cent.; of newspaper and ]>erio«lieiil stami.s, $2o3,.395.70, or 1 1.5 per «'ent.: of postage-duo stamps, $97,777, or 38.J per eent,; of tiflu-ial po.^ta^'e '.)2\ VAVEEfi ACCOMrANYlNG TJIi: ;uid ^^l•apl)cl•.s ior the iiHe of tlic War Departmeut aniouutiiig to $'l,8'll>, <•)■ M.l ])er cent. The total increase in tlie \ahie «>1" all the issues wa.s $0,o52,017.51, or 18.,') per <;ent. Ill addition to the foregoing articles, there were issued for ollicial use 0,711,500 registered jiackage envelopes, 835,750 tag envelopes for regis- tered i)arced envelopes 29 For registered-package envelopes 54,7r)4 For tag envelopes for registered packages »... 1,370 For post-oflSce envelopes 24,802 I'^or newspaper and periodical receipt-books 1, 543 Total 464,710 These supplies were maele ui) and forwarded in the following number of parcels : Of ordinary postage-stamps 139, 41^ Of postage-due stamps 13,68.5 Of newspaper and periodical stamjis 9,825 Of stamped envelopes, plain 94, 862 Of stamped envelopes, inltited 72,362 Of postal cards 85,065 Of official postage-stamps »- 26 Of official stamped envelopes 8(5 Of registered-iiackage envelopes 56, 850 Of tag envelopes for registered packages 1, 370 Of post-offlce envelopes 31,802 Of newspaper and periodical receipt-books 1,543 Total 506,639 The following is a comi)arative statement of requisitions filled during the past and i)receding fiscal years : %'tg !«£§ S^., ■ ^ =^- Articles. S*"^ i.^>=. ■- S«r- c s iz'^'i 5-5 3S o a'S C'r-i ^.... « « For ordinary postage-stamps For postage-due st.amps ■. For newspaper and periodical stamps For stamped envelopes, plain For stamped (pvelopes, printed ^ For ppstiu caras For official postage-stamps and stamped envelopes For registered-package envelopes For tag envelopes . For poat-oflice envelopes ! 24,802 23.2.^n ],.M:! For newspaper and periodical receipt-books ! 1,043 7,013 *.'>,47o ■- Total 464,710 430,868 133,842 135, .'30 128, 502 I 7, OM 13, C89 I 8,846 : 4,843 10,840 1 10,021 819 64,400 I 00,462 3,038 79, 322 I 69, 153 I 10. ICO 78,431 : 71,4i0 1 7.U11 2!) : 33 I «4 54, 7r,4 52,103 2,651 1,370 .'C 1,3H •Decrease. tOr 7.8 per cent, net incroaae. nn'ORT OF THE rOSTMA^Ti:iI nKNKI.'AL. 92.5 rOSTAGE ON SECOND-CLASS MATTER. The weight of newspaper and pei-iodical (seoond-elnss) matter mailed during' tlie year from rej^iilar otiiiM'S ofjniblieation and fmm mnvs a;:eM cios, not inclndinjj free circulation within Mir county of pnltjication, was 78.255,104 jiounds, or oO,1l'7^,',^^ tons, tlie ])osta^'e on wliicli wa> $1,505,103.28, an increase of .":$ 100,054.01. or 11.15 per cent., (»ver tli«' anuiuur, of ])ostas,e collected on such inatl«'r dnrin;: the pn-ccdin;: yeai. The nuinlM'r of ])osr-ofiiccs at wjjich this class of matter was madfd during the year is 5,0S(), an increase of 251), or 5.37 per cent., over tin- number for the jirevious year. The followiiif,' table shows tlu* number of pouners and periodicals mailed during the year and the amount of postajje eolle!i < 'A < 1^ s $.-»8 -•- <•( i> New Tori:, X. Y . . . Cl.i.asn, ni 19, .wn, e9S $386, 817 9C 21.279.330 $425. 586 00 I. KIP. 433 77.19 7, 003. 92r, 140, 078 50 7,701.695 1.55,233 <») 7:.T.770 i: 0.92 BoHtoii, Mass 4, 103, 075 8:1,201 50 4,819,700 96. H94 00 6.56,625 i:; 8.16 Philailflpliia. Pa... 3, 509, ao'j 70. IHt 04 4, 228. 5.39 81 570 78 719,:t37 14. .. ,, .. .. .\ 43 Saint Louis, Mo.... 3, 223, 492 04, 409 K4 3, 472. 243 60. 444 80 248. 7.51 4, 975 ua 7. ; 12,024, 240 4« .4 4 44 Ciuciiniati. Ohio ... 2, 774, •-•M9 55,485 78 2,786,313 55, 726 26 3.M Aujriista, ^lo Run Franrisco, Cal . ;:, •.'."! i.U'i''' 65, 027 70 2, 572, 055 51.441 10 •B79,33S -n ••' •-' a.2s 1, i9:.o-j!t 23,940 58 1,340,873 20. 937 40 140, K44 2 L7I Detroit, 3Iicb 1, 069. 023 21,3S.)40 1, 1.'«.707 22,674 14 04, IM 1 1. 45 Mihvanki-c. Wis .. MK, 401 10. 9<;9 22 9»H;, 201 19, :;i'4 92 116,740 2. . .. - 1. 2:1 LouiHville, Ky 904, 042 18.080 84 956, .544 I». 131 28 .52. .52 J 1, 11. J' *i Xh 1. 22 Clevelaiifl, (Jliio. ... 878,119 17. 5C2.38 779, .541 1.5. 5!.0 82 "jx.r.ix M.nTi .vi'ii.2 .99 Pittabiit;:!). Pa 71.'.. .'■.19 14,31(1 .'(H 79:;. 918 1.5. 878 m; '". :i!'j 1..'*: 9K lau MM Saint Panl, Minn .. 5.12, 6.T.' 11.052 C4 751,243 1.".. irji 80 ill", oil 3, '.•72 22( 39.9 .90 ToImIo, Oliio 701,063 14.081 20 710,472 I4.:fj;t 4i 12. 40'.» 2 1'' 1" 1.8 .92 Baltiuiort.', Md 614,091 12,281 82 674.816 i:{,490 :r2 00,725 1.214 :«, 9 .Ml M, 749, 248 1, 014, 984 90 :<>, 03N 210 1 1, lOO, 704 20 4, 288, 962 85, 779 241 & 4 70.33 * I>«9cr«a«(>. Since Jannary 1, 1875, the postage on iicwspajicrs and peritMlicals mailed by publishers ami news a;:«'nts to regular subscribers or news agents has ln-en jnepaid :it pound rates. 'I'he matter is wei;;hed ia bulk, and the jiostai^e j):iid with speci:il adhesive st:Mii))s, ollleially iles- ifjuated as iM'Wspa]ter and periodical stami>s, .\ n-ceipt is ;,Mven the ])ublisheror news aj;ent for each consiv^nmcnt «>f matter, and the proper arnonnt of stamps is alH-Ncd to the stub in the ie<'ei|it l»otik,on whieh is also entered a mcnioi;indiiiii slio\\in;; tlu' name of the publi«'ation the date of mailin;,^ the \\(i<:iit of matt4r, and the amount of post age collected. The postmaster is required to render a «piarterly state- ment to this office sliowin;; the total wei;.'lit of matter m;iiled :md amount of postage collected from each publisher and news agent dm iiig the quarter. The stam|)s an* charged to the ])ostmaster's ai-eount \\hen issiKMl, and if aOixed to tin* stubs luid <'am'eled, the revenue is .vecured to the governnn-Jit. To insure this postmasters an* required :if the close of each ipiarter to f;end the stubs used iluring the qmirter u> this oflic<', where they are e:\refully e.\amine«. lUscn'p- 926 PAPERS ACCOMPANYING THE ancies are uot infrequently discovered, and postmasters are required to make good all deficiencies. But undoubtedly the most important ben- efit of requiring the return of the stubs is in admonishing postmasters to properly apply and cancel the stamps, when, through neglect or de- sign, this duty would often be omitted if the stubs were permitted to remain in the postofiice. The examination of the stubs of course im- poses much labor, but the expenditure is well repaid. During the last year examinations were made of the stubs in 22,432 receipt-books, and 19,032 quarterly statements were examined and recorded. The sum of $1,733.55 was collected at proper rates from publishers and news agents on matter mailed but not entitled to go as second-class matter. NEW CONTRACT FOR STAMPED ENVELOPES AT REDUCED PRICES. During the year the preliminary steps were taken for obtaining a new contract for stamped envelopes and newspaper wrappers, the old contract expiring on the 30th September. Substantially the same course was pursued as when the late contract was entered into, four years ago. Under date of May 1, 1882, advertisements were published in various newspapers in the principal cities, inviting sealed proposals from envelope manufacturers, until 12 m. of the 8th day of June, for all the stamped envelopes and wrappers that the department might order during the contract term of four years, commencing on the 1st October. Full and explicit specifications as to the requirements accompanied the blank form of proposals furnished to bidders, to which were attached samples of the various sizes and grades called for. The standards of the several grades of paper were prescribed, the character of the ma- terials entering into their composition, the weight per ream of specified sizes, and other particulars connected with the manufacture of the pa- per being fully set forth. Other specified requirements related to the manufacture of the envelopes and wrappers, the preparation and con- trol of the dies for embossing the stamps, the security of the building used for manufacture, the sufficiency of stock to be kept on hand, the place and manner of delivery, the mode of packing for shipments, the destruction of spoiled work, the manner of inspection by the agents of the department, and, in short, to all the particulars needful to secure the interests of the government in connection with the contract. Bids were to be made for each item separately, and it was provided that the award should be made as a whole to the lowest responsible bidder in the ag- gregate on the basis of the actual number of each of the several kinds issued during the year ended March 31, 1882, the total issues of that year having aggregated 249,308,750 envelopes and wrappers. The for- feiture for failure of the successful bidder to enter into contract was placed under guarantee at 850,000, and the penalty of the bond for non- performance of contract at $200,000. On the day fixed for the receipt of bids (June 8) five sealed proposals were submitted, and on being opened and examined by the Postmaster-General and myself, in the presence of the bidders and others, the names of the bidders and the amounts of their respective bids, on the basis referred to, were found to be as follows ; 1. The Plimpton Envelope Company, of Hartford, Conn., and the Morgan Envelope Conipauv, of Springtield, Mass $456,197 58 2. White, Corbin & Co"., of Rockville, Conn 461,842 90 3. The Holvoke Envelope Company, of Holyoke, Mass 464,421 21 4. Geo. F. Nesbitt & Co., of New York City 470,927 62 5. WadeH. Hill, of Worcester, Mass 476,5^5 40 The closeness in amount between these several bids bears evidence to the exactness with which the requirements of the contract were estab- REPORT OF TOE POSTMASTER-GENERAL. 927 lished by the speciticatioii.s. The lowest biilders were the Plimpton a^jd Mor;?an(.'Oiiipauies, wholuid held thecoiitract lor the two i>revi()u.stenn.sof lour years each, and the new contract wsus act:ordinp:ly awarded to them. The contract was dnly execnted, and its perlorniance, entered into oa the 1st October, is now satisfactorily pro^rressing. The prices in the iiew contract average a reduction of nearly 7 per cent, from those in the old one. The law requires that stamped envelopes shall be sold at the cost of procurement, as near as may be, and accordinjjiy a new schedule of prices has been a|»ers) issuer the ^ear en»'red 188,4r)7,200,of which87,7o2,'.).'iO,or 40.5 percent., werejdain and l(K>,7(Ki,- 2r>0, or 53.4 per cent., were jjrinted with special requests to retjmi. In other words, the increa.se in jilain stampetl envelopes from I.S77 to 18S2 was 35.3 per cent., while the increase in special request stanu>od envelopes was 50.4 jiercent. No extra charge is ma«le to tlw publi«! f«>r jninting special return requests on stamped envelop«'s. but they are not furniHlutl in lots of less than 500 each. The contract ft)r stamped enveloiH'i* pn» vides that the printing shall be done by the contractor without additional cost to the department. 1)28 PAPERS ACCO.MPAI^YINO THE NEW FIVE-CENT STAMP. During the year a chanft'e was made in the design of the five-cent postage stamp, which is used mostly for correspondf-nce with foreign countries. Thefollowing is a description ofthe new adliesive stamp: Oy a tahU't is suspended an incised shield decorated with an oval of pearls forming a framework to the portrait ofthe late President ofthe United States, James A. Garfield, looking toward the left, engraved in line. At the base of the ov-sd is a dark six-pointed star relieved by a white outline,and in the center the figure "5." Disposed on the right and left ofthe star tiows a ribbon containing the legend "Five cents" in white Roman capitals. Below the star and ribbon, on the lower portion of the tablet, appear the words "U. S. Postage," engraved in dark letters. The color of the stamp is chocolate brown. The first issue of the new stamps was under date of April 10, 1882. The embossed stamp on the five-cent stamped envelopes has also been changed topattera, as nearly as possible, alter the design of the adhesive stamp. The new stamp is very mnch superior to the old one in style and workmanship, and it has been received with flattering expressions of popular approval. DIVISION OF DEAD LETTERS. The total number of ]ueces of mail matter received at the dead let- ter office during the year was 4,1G(),554, an increase of 480,349, or 13.2 per cent., over the number received during the previous fiscal year. The number remaining undisposed of at the close of the previous year was 124,731, making the total number in hand for treatment during the year 4,285,285, of which 4,225,085 were finally disposed of, and 59,000 were left on hand at the close of the year for further treatment. The following is the classification and number of pieces of matter in han20 Domestic parcels of third and fourth class matter t)0,47() Letters mailed in foreign countries - iJoG, 287 Printed matter, samples, &c., mailed in foreign. countries and returnable.. 17,313 Total, as before 4,285, 2b5 The following was the disposition primarily of the letters handled during the year: Domestic mailed letters: Card and request letters delivered nnopened 40,676 Letters opened 3,196,813 Letters left on hand 51, 100 3, 268, .'3-3 Domestic unmailablc letters: Held-for-postage letters forwarded to address unopened on re- ceipt of postage . .38, 173 Held-for-postage letters opened 233, 017 Held-for-iiostage letters lelt on hand to await return of notices. 4,050 , Letters containiug uinu ail able artit*les opened 954 Misdirected letters forwardcfl unopened after correction of ad- dress 'J9, 2(iT Misdirected letters opened 175,44'^ Letters without address opened 11.711 5i;2, (WO W REPORT OF THE PO.STMASTEK-GEXERAL. 929 Domestic third ami fourth clasti matter: Parcels opened and rctnriK'tl 41 ,m Parcels opoued and left on hand jf,' jj*;; Foreign matter: Letters delivered 3ol,Kr7 Letters still on hand 4 4'>0 Parcels of printed matter^ samples, Sn:., returueil unoiieii.-d 17|:UJ :. r.74 :Q\\, GtiO MATTER OPENED IN DEAD LETTER OFFICE. The lollowing was the dispositiou oi'mail matter opeiie It. .'.:rT Filed, upon failure to deliver: Letters containing money IJ, .ViO Letters containing draffs, checks, «!Lc -"-• Letters containing rtM'eij»ts, i>aid notes, &c Jjotters containing postage-stamjis . - Photographs Parcels of merchandise, l)ooks. Arc Destroyed : Letters contaitiing nothing of value, including ■••IMKKl l.-tters for wardeil to writers and returned upon failure t»i rdinary lett«'rs I'arccls of print<'d matter, &c 1..1.'; nHi.ir.7 Delivered to addressees: Registered letters 4&0 Ordinarv lett^-rs ^03 :Jo,449 '.•.b94.9K Misdirected matter forwarded to corn'cted niUln'Asc«: • Ordinary letters i», ni»4 Parcels of printed matter, A:c Itrt On hand under trentmeut: Registered letters 'AKl Ordinarv letters 4.^17 6KI 6. MO 4.4:>0 Grand total .. IfT^OOO 59 Ab 030 PAPERS ACCOMPANYING THE MATTER RETUKNED FROM FOREIGN COUNTRIES. The following: number of pieces of matter originating- in the United States was returned to the dead letter office from foreign countries during" the year, as undeliverable : Kegistered letters n'*2 Ordinary letters 136,91'.) Parcela of priufced matter, &c 'J4, fjHl 162, 4eJ DEAD REGISTERED MATTER. Included in the matter under treatment during the year were the fol- lowing registered letters and parcels: Number delivered to addressees or restored to senders 11,291 Returned to postmasters for delivery and awaiting receii)ts o5 Filed upon failure to discover ownership, subject to future reclamation 4^.') Total. 11,811 VALUABLE INCLOSURES. Evidence of the great value of the inclosures found in many of th(i letters aue parcels received and opened at the dead letter office will be disclosed by an examination of Table No. 13 herewith. Among them were 19,989 containing money to the amount of $44,326.65; 24,57.j containing checks, drafts, money-orders, &c., representing a value ol" $1,962,413.73; 90,842 containing merchandise, books, «S:c.; 52,463 con- taining i^ostage-stamps ; 44,731 containing receipts, paid notes, &c. ; and 39,242 containing photographs. The articles of merchandise are of every conceivable kind, and often of rare interest and great value. REVENUE FROM DEAD MATTER. The sum of $3,739.02 was received for postage on insuffieiently pre- l)aid letters forwarded to destination, and upon articles of third and fourth class matter returned to the senders, and $7,457.63, taken from dead letters which could not be restored to the owners, was deposited in the Treasury to the credit of the Post-Office Department. Statistics more in detail concerning the operations of the dead letter office will be found in tables numbered from 10 to 15 hereto attached. CHANGE IN TREATMENT OF HELD-FOR-POSTAGE LETTERS. An important change in the mode of treating "held-for-postage" let- ters, and insufficiently prepaid articles of third and fourth class matter, was made by a formal order of the Postmaster-General, bearing date of IMay 11, 1882, to take effect on the 1st of July next ensuing. The law requires that, to be entitled to admission into the mails, domestic letters (of whatever weight) shall be prepaid to the extent of at least one full rate of postage, and that third and fourth class matter shall be prepaid in full. The statute (section 3937, Eevised Statutes) with respect to ' letters is in the following words : All domestic letters deposited in any post-office for mailing, on "whicli the postage is wholly unpaid or paid less than one full rate as required by law, except letters law- fully free, and duly certilied letters of soldiers, sailors, and marines in the service of the United States, shall be sent by the postmaster to the dead letter office in Wash- -ington. But in large cities and adjacent districts of dense population, having two or m REPORT OF THE POSTMASTER-GENERAL. 931 more post-offices within a distance of 3 miles of each other, any letter mailed lit one of Buch ot'Gces, and addressed tua locality within the delivery of another of mi. I, .>tii.i«, which shall have bee, order was restricted in it.s operations to a number of the larger olliccs — those at which the free dc livery systent is employed— as it could not rea.sonably be expected that at the great mass of the snudler olllees the work woidd be done with that degree of intelligence and pnunptness necessary to .secure offlcienl results. It was thought best to draw the line, for the present at least, at the free delivery olliccs, it having been asitertained that fully 15 i)er cent, of all the herd-ibr-postage letters re<'eived at the dead letter ofllce iVom that class (»f olliccs bori- two cent stamps, thus exhibiting a great popular inisai)pn'hension of the tlifVerence, between the rates of jH)sl«ge on l«)cal lettiMs :ind llio.se addics.sed to other post ollices. The merits of the new plan ate obvious. It would seem (»nly just that (he addres.see, with the iiltimafe liability of being called uptui for the delicient postage, shoidd in the lirst instanct 1 ■ . -'d for distribution. 932 PAPERS ACCOMPANYING THE Tlio change was received with great favor, which has been fully jus- tified by its results. Iletiirns have been received from 97 of the free- delivery ofQces for the quarter ended September 30, showing that out of a total of 77,954 pieces of held for-postage matter (letters and i)arcels) accruing at these offices, 59,711 pieces were forwarded to addressees upon receipt of the deficient postage; 11,767 were sent to the dead-let- ter office ux)ou failure of the addressees to respond ; and 0,476 received near thQ close of the quarter were still on hand awaiting the return of notices. Excluding these latter leaves the number of pieces finally treated by the mailing offices during the quarter at 71,478, of which those forwarded to the addressees represented about 84 per cent., and those sent to the dead-letter office about 16 per cent. The large proportion of direct deliveries from the mailing offices has exceeded the most sanguine expectations, and it fully sustains the theory upon which the new treatment was founded, that the addressees would willingly pay the deficient postage rather than have the^matter go to the dead-letter office, the notices sent to them presenting that alterna- tive. Ko serious obstacles have been encountered in carrying the new order into practical effect, and in view of its present success it might be advantageously extended to a still larger number of the principal offices. DIVISION OF REGISTRATION. The total number of letters and parcels forwarded by registered mail during the fiscal year ended June 30, 1882, was 9,627,922, as follows : Domestic letters 7,200,118 Domestic parcels of third and fourth class matter 799,479 Lett«rs to foreign countries 393,107 Parcels of thiid and fourth class matter to foreign countries 22,275 Official letters and packages forwarded by the government. andbyla>s' ex- empt from the payment of registry fees 1,212,943 Total 9,267,922 The amount of registry fees collected was $841,497.90, an increase over the luevious year of $128,615.70, or 18.04 per cent. The increase in the total number of letters and parcels registered was 1,289,004, or 15.46 per cent. Subdividing this total, the increase in the number of letters, domestic and foreign, for the j)ublic was 1,121,375, or 17.33 per cent. ; of parcels of third and fourth class matter, domestic and foreign, for the public 164,782, or 25.08 per cent.; and of letters and parcels for the government, only 2,847, or about one-fifth of one per cent. The increase of registry business for the public was thus a little over 18 per cent. Statistics more in detail will be found in tables numbered from 16 to 19 accompanying this report. LOSSES. During the year 7,082 registered letters and parcels were reported to the cliief inspector as having been lost or tampered with. Of these 4,076 were found to have been delivered, or satisfactorily accounted for, and 2,513 are still undergoing investigation, leaving the actual losses as far as ascertained at 493 cases. The losses were due to a variety of causes, such as fire, burglary, highway robbery, theft, &:c. If the cases still under investigation should result in the same proportion of loss as those that have been closed, the total losses for the year will number 726, or one out of every 13,262 pieces mailed. This is an unusually small proportion of loss, and it is to be taken in evidence of the increased efficiency of the registry service. Fuller details respecting the subject REPORT OF THE POSTMASTER-GENERAL. 933 of losses will be found in the report of the chief i>ost-oflice in8i)ector. Great credit is due to the insi)ector.s for the enerjry, fidelity, judgement, and care with which they have treated the cases rei)ort«'cl to them for investigation. THROUGH-POUCH SYSTEM. The system of exchanj;ing refrist^red matter in bulk between the larger ottiees by means of locked pouches was extended to 19 oflices and discontinued at IT), leaving it in operati(m at ll'J oflices at the close of the year. Tlie new tell-tale or rotary lock, referred to in my report of \as.\ year, was put into use early in tlie ])reseiit ealeinlar year, and it is proving a valuable instrument to the t^irough-i)ouch system, eft'wtiug a great saving of clerical htbor in dispensing with the necessity of exam- ining and recording the eontents of througli jMjuehes when lying over in transit at intermediate through-i)ouch otiices. The system continues to operate, satisfactorily wherev»'r it is emph)yed; inde«'d, in view of the great volume which the business has now attained it ha.s become almost indispensable to the nuichinery of the registry system. BRASS LOCK REGISTRY EXCHANGE SYSTEM. The brass lock registry exchange system, establislied some three years since for exchanges on the important lines of star service, is still in successful operation. It was emi)loyed at 1 KJ olliees at the close of the year. It has ])roven a most \ aiuable auxiliary to the thrctngh-iM)ueh system on the railroads, to which it in general corresponds. Its es- sential features were explained in my ix'ports of the la.st two years. INTERNATIONAL REGISTERED THROUGH-POUCH EXCHANGE. For a long period the department experienced much embarrassment from the defective system of exchanges of the registered mails with the eastern portion of the Dominicni of Canada. ()v«'r a porti(»n of the route of transmission, such mails were not in tlu' special custS1, betw«»en represent atives of the Canadian Postal Department and Assistant Railway .Mail Superinten«lent Moses, detailed to this ollicc tor duty in connection with the registry system, and ntyself, at which the details of u plan of inter national registiy exchanges were arranged, and subsequently formall.N ratitied by the i)ostmasters general of the two countries, to take efltn-t January i, 18Si,'. In agreeing to tin- new international < tem. the Canadian authorities so far varied fn»m their dc as to nuike it conform in general to the mctluMls employcti \n !ii« i. . try service of this country. Among the print ii»al features of the ; > 934 PAPERS ACCOMPANYING THE plan is the personal custody of pouclies by sworn employes of tbe two countries; a complete diiiiu of receipts and records from employe to erai)loy6 between terminal i)oints; tlie use of tbe tell-tale or rotary lock, and of tbe manifold tbronj^b-poncli bill witb coupon attacbment; and tbe gatbering and distribution of registered mail to and from tbrougb- l)Oucb centers, according to our domestic through-pouch system. Each country furnishes its own pouches, locks, and other equipments. The lock used by tbe Canadian authorities is on tbe same principle as that adopted in this country anil already referred to in another portion of this report. Locks of both countries are embossed with the name of the country of ownership. In addition to the security, a great saving of time has been effected by tbe new arrangement. For instance, the former time for registered exchanges from New York to Montreal was 58 hours and 25 minutes, and now it is 24 hours and 50 minutes, a reduction in time of 33 hours and 35 minutes. From Montreal to JS'ew York the former time of 30 hours has been reduced to 25 hours and 22 minutes, a saving of 10 hours and 38 minutes. The eastern portion of the United States has been districted by i)ub- lished schemes defining tbe respective limits of territory within which registered mails should be sent to and received from Canada through the international registry exchange offices of Xew York, Boston, Saint Albans, and Buffalo, with exceptions for Ogdensburgh, N. Y., and Island Pond, Vt. Similar schemes have also been arranged by the Canadian authorities for collecting and distributing the through registry mails in their country. On the basis of a count for one quarter, the estimated number of registered pieces exchanged during the year 1881 between Boston and Montreal was 12,000; between Xew York and Montreal, 1G,000; between Island Pond, Yt., and points in Canada, 15,000. A large increase on these figures has already resulted from the better system of exchanges, and from tbe addition of new territory to each of the through-pouch centers. Correspondence is now in progress looking to the extension of the eastern system of exchanges to tbe western portion of the country. This accomplished, the system of registry exchanges between the two countries will be comi)lete. GENERAL. Attention was directed in my report of last year to the almost com- I)lete remodeling of the registry system during the previous four years. A summary was given of the principal changes that had been made, through which the machinery was simplified, tbe work greatly lessened, and the security encbanced. An extraordinary increase of business was pointed out to show the poiiular appreciation of the efforts made to im- prove tbe service. Special mention was made by tbe Postmaster-Gen- eral in his report of the great growth and satisfactory condition of the service, and they were favorably commented upon by the President in his regular annual message to Congress. The registry system was established by act of Congress of March 3, 1855. After being four years in operation, the receipts from this source dwindled from $31,406.50 tbe first year, ended elune 30, 1856, to $25,038.70 for tbe year ended June 30, 1800. In his report for the last- mentioned year the Postmaster-General, in a most elaborate article, rec- ommended that the system be discontiniied, a recommendation that, in view of the present great utility and prosperity of tbe system, was happily not carried out. For the year .ended June 30, 1877, ithe amount REPORT OP THE POSTMASTER-GENERAL. 935 of registry fees collected ^vas $'j07,1j8.8U. The amount collected from this source during the hist liscal year was 8S4],4!>7.1i(), an increase over the amount for the year 1877 of ii*i74,0.j9.10, or a httle more than 12*J per cent. Tlie receij)ts from registration have thus much more than doubled within the i)ast live years, while the general receipts of the jiostul ser- vice have been more than thirteen years iii attaining a similar rate of increase. Tlie recent extraordinary growth of the registry service is especially gratifying, both because of the long period that the system has been in operation, and because the work is done at a handsome profit. Xot only do the registry fees more than compensate for the labor imposed by registration, but an additional profit is in the postage on valuable letters that would never be entrustearcels containing Qnited States bonds, currency, couj)ons, coin, internal revenue stamps, &c., reinesenting a value of $.">14, 778,2-37.57. Of this immense sum not a penny was lost, so far as is now known. Dn'ISION OF FILES, RECORDS, AND MAILS. The number of letters and other inclosures received, opened, and ex- amined «luring the year Avas 1,102,500. Among these were 1,0tion. Of the letters received .30,483 were brief<'d and recorded, and fih'd after final action had been taken on them. The number of letters written in the oflice, copied, enveloi»ed, and mailed was 12,40"). Very i"esi)ectfullv, vour obedient servant, A. D. lIAZIiX, Third Assistant rostmaster-Ocneral. Hon. T. O. UowE, Postmaster-General. No. 1. — ExplanaMon of estimates of appropriations for the oflice of the Third l'oHtmantpr-G eneral for the Jiscal i/tar tndiinj June 'M, Ifs^. Aitiitant I. — ADUKSIVE POSTAGE PTAMl'S. For iiiaimfactnre of onlinarj poutaKe stampn, of offleiftl stamps, of news- paper and porio(lii-al ntaiups, and of postage-diio stumps 9130,000 00 Tim number of lliese stamps i.tsiicd during the fiHcal year ended Jnno ::i», IHSJ, w.aH l.i:i0,470,O'v'i Add I'i ]H!r cout. lor incro:iso 1^'j, 0.'>(i, 410 Gives estimated issue for fiscal year ending Jauo 30, 1&?3 l,'J<>fi, l'.J«5,4".W Add I'i per cent, for increa.so, as beforo l.'il, '.»;{.'►, ITl' Gives estimated number required for fiscal year ending .Juno 30, 18t)4.. 1,418,CC1,C77 Cost of manufacturing that number at prcjicut contract price, {'.19 rents per tlionsaud ■- ' -<'» The incrensc in the nnmbor of adhesive stamps of all kinds issued durii year ended on tliti lluth of June la«t was a little over 17 per cent.; bnt tin crease was an abnormal one, duo in part to au uunsual prosperity in the t 936 PAPERS ACCOMPANyiNa THE tercstHOl' tho country, jind in pari; to a 8i)ecial cause wliicli was explained in tlie report of last year (pp. ;i54 and 361 Kcport of Postmaster General for Ibbl). Under ordinary eonditioua it would hardly be reasonable to expect an annual increase of more than 12 per cent., and accordingly tho issues of tho last year have been auj^mented at that rate to arrive at the probable number required for the ensuing liscal year. The pres- ent contract does not expire until the 30th of June, 1885, and this estimate has conse- quently been governed by existing prices. The estimate has, however, been placed in even figures at $130,000. Tho appropriation for the curreiit year is $109,000; bat from present indications this amount will hardly be sufficient to'rneet the demands of the yeai-. II.— POSTAGE STAMP AGENCY. For pay of agent and assistants to distribute stamps, and for expenses of the agency $8,100 00 This estimate agrees in amount with, the appropriation for the present year. 111. — STAMPED ENVELOPES, NEWSPAPER WRAPPERS, AND LETTER SHEETS. For manufacture of stamped envelopes, newspaper wrappers, and letter sheets $632,000 00 The cost of the stamped envelopes and wrappers issued during the fiscal year ended June 30, 1882, at the prices in the contract which took effect October 1, 1882, would amount to 477,960 08 Add 15 per cent, for increase 71,694 01 Gives estimated cost at same prices for fiscal year ending June 30, 1883..- 549, 654 09 Add 15 per eent. for increase, as before 82,448 11 Gives estimated cost for fiscal year ending June 30, 1884 632, 102 20 The appropriation for the current year is 547,000 00 ' The actual cost of stamped envelopes and wrappers issued during the last fiscal year was $510,399.45; but a new contract was entered into for four years from the 1st of October, 1882, at an average reduction of nearly seven per cent, in previous prices, and the calculations in this estimate have accordingly been made upon the basis of the new prices. The increase in the number of envelopes and wrappers issued during the last fiscal year over that of the previous year was nearly 13 per cent., but as the reduced prices are likely to largely augment the demand, allowance has been made for an annual increase of 15 per cent, in the issues. By law the cost of procuring stamped envelopes is added to the postage value in fixing the schedule of prices to the public, and the expenditure under this head is consequently refunded to the government when the envelopes are sold. Authority was granted by the sundry civil appropriation act passed at the late session of Congress, to use the appropriation for stamped envelopes for the current year for the ijurchase of stamped letter sheets (combined letter sheet and enveli>pe) not previously furnished. No arrangements have as yet been made for procuring these article*, but they may be introduced before the close of the year, and in view of that event it is deemed advisable to include them in the estimate for stamped envelopes for the coming year. IV.— STAMPED ENVELOPE AGENCY, For pay of agent and assistants to distribute stamped envelopes and news- paper wrappers, and for expenses of agency $16, 000 Oo This estimate agrees in amount with the appropriation for the jiresent fiscal year. v.— POSTAL CARDS. For manufacture of 2)ostal cards $253,000 00 The total number of postal cards issued during the fiscal year ended June 30, 1882, was 351,498,000 Add 15 per cent, for increase 52,724,700 Gives estimated number for year ending June 30, 1688 404,222,700 Add 15 per cenii for increase 60,633,405 Gives estimate(3 number for year ending June 30, 1884 464, 856, 105 REPORT OF THE POSTMASTER-GENERAL. 937 Tlie cost of nianufactuiiiij^ these ai-ticles, at the present contract price of r>4.4:i cents per thousand, is fa53,0"21 17 The appropriation for the jiresent fiscal yeai* is "M-i, WO W The issue of postal cards has fluctnatiHl widely durius^tlio past few yeai-s. For lfC9 the ratio of increase was ]0.5.'> i)er c^-nt. ; f<»r l-v-^). vW.i^U por cent. ; for l?^!, 13.20 \nr cent., and for Ititi'i, UJ.IKJ pf-r com. It will probal)ly 1)«' Kiitllc.ient to allow for an an- nual increase of ir> pci- cent., as has been done in the forej^oinj^ estiuiato. The pres- ent contract is fur four years ending ou the :{Oth June, Itfef), VI.— POSTAT CARD AGENCY. For pay of agent and assistants to distribute postal cards, and for exi>eii8e8 of the agency i*7. 300 00 This estimate agrees with the present appropriation. VII. — REGISTERED PACKAGE, POST-OFKICi:, XSD DEAD t£TTER ENVELOPES. For registered package, post-ollice, and dead letter envelopes |14O,O00 The re^isterexl package envelopes are large inanila envelopes used for inclosing registered Icttere and oiher registered matter, for safer transuiission ; the post-ollico envelopes are for the use of postmasters in their otiicial correspondence ; and the dead- letter envcilojies are used for retumitig lettere from tlie Dead-Lett-er Ortice to tho ^Tiiters. The contract for these envelopes is awarded for one year only, beginning on the 1st of July of each year, and present prices, therefore, afford no ahtwilut*.^ criterion in making estimates for future ajjiiroprialious. The prices for the year ended on tho 30th of Jijue last were unusually low, so that the issues for the year cost only ^'2,474..')3. At tho jiriees in the contract for the i)ro8ent year the sjime issues would have cost §!y8,173.83. The total number of these various kinds of envelopes issned during the fiscal year ended on the 30th of Juue last was 3o,5dl,r>r>0, an increase of G,7b3,100, or 23.5 per cent., over the i-v<;nes of the previous year. At the same rate of increase for the present and next fiscal years the issues for the year ending June 30, 1884, would number 54,26i<.8«i0, and would cost, on tlu^ basis of existiug contract prices, !Jil49,737.17. Allowing for an increase of 20 per cent, in the is.sues, the cost at present prices w ould amount to -SMI, 1570.31. The major |>orti(m of the uppropriatitm in expended for envelopes for registry business, and for several years past this service has be»'u increasing very nearly at the rate of 20 ]>er cent, per annum. It is projKT to sjiy that the contract for these envelopes, like that for stamin-d envfjoiies, has Ix-en awarded to the lowest l»idder, after public advertisement, and uix>n suiniJles furnished by the department. Tho estimate is placed in even figures at igl40,000. The appro- priation for tho current year is ?110,OW. VJII. — SlUr, STKAMllUAT, AND WAV LKlTEItS. l^or ship, steamboat, and way letters $1,500 By law (scitions ■.'.'.•13, 3l»7i]. 31i77, 3978. IJevised Statut«'s) this appropriation is neces- sary for the ))aymeiit to nnislers or owners of vessels not regnhirly engaged in traiut- I>orting the mails i'm- letters brought and delivere the regular postage, tho amounts ])aid to said masters or owuers. whieh amounts ai-e eonse<|ueiitlv refunib-d ti> tln^ ndittin? for the last fiscal year was si. 441. 3>^,' lor L--1 it was ^.KKi.ltC., and for 1k«iO it was ;tfl,:kVi.:.l. The apprupriation for the cuiTcnt \i :ir is ,vl..'u(i. .nul ili<' .mini.ite for tin- next fiscal year i I'.IM'IM. DKVli- \M' w vUKANTS. For engraving, juinting, anil binding drafts and warrants f2,000 This apjiropriation is for the )uirchHHe <>f warrants and drafts used for paymc-utii to creditors, transfers of fuiuls to and from poNlmnsiers, an1ENT, Office of Superintendent of Money-Order System, Washi7ifjton, I). C, October 25, 1882. Sir: I have the honor to submit herewith a report of tlie operations of the postal money-order system of the United States ibr the fiscal year ended June 30, 1882. Durinj^ that year the public employed the money- order system, which affords absolute security for remittances by mail, to a greater extent than in any like period since its incei)tion. This in- crease, W'hich is more than half again as large as the increase shown by the operations' of the year 1880-1881, appears the more worthy of com- ment in view of the fact that for some months one of the express com- panies has maintained a money-order system of its own, Avhich is made available to the public, by arrangement, throttgh the offices and agencies of several other comi^anies. NUMBER OF DOMESTIC MONEY-ORDER OFFICES. There were established during the fiscal year 340 domestic money- order ofQces, and 12 offices were discontinued. Since June 30, 1882, 449 additional post-offices have been authorized to commence moneys order business, and one office has been discontinued; so that there are in operation at the date of this report 5,939 domestic money-order offices. ISSUES AND PAYMENTS OF DOIMESTIC IMONEY'- ORDERS. The number of domestic money orders issued during tlie year wa-s 8,419,869, of the aggregate value of .*113.400,118 21 And the number of such orders paid during same period was 8,401,()G8, amounting to $112, COG, 295 84 In addition to which, orders of the value of 783, 006 06 Were repaid to the remitters thereof, making the total amount of pay- ments and repayments 113,393,301 90 And the excess of issues overpayments only §11,816 31 The gross amount of the fees received by postmasters from the public for the issue of domestic money orders was $1, 053, 710 55 This statement exhibits an increase over the transactions of the pre- vious year of $8,324,348.80, or 7.92 per cent., in the amount of orders issued; an increase of 88,463,448.29, or 8.07 per cent, in the amount of orders paid and repaid; and a gain of 886,977.80, or nearly 9 per cent., in the amount of fees received from the public. The average amount of the orders issued was $13.47, or 24 cents smaller than during the fiscal year 1880-1881, and the average fee was 12.51 cents, being -^ of a cent less than the, average fee of the preced- ing year. It is proper to remark upon the very small excess of the orders issued over the orders paid during the.year, and to state, in that connection, that the department has recently issued instructions to postmasters concerning a system which it has devised for effecting payment of the amounts of unclaimed money orders. At the close of every month post- masters are now required to notify the payee of every money order, which, as shown by the corresponding advice on file, was unpaid at the end of the previous month, to present his order for payment, or, if it has been lost, to cause his correspondent, the remitter, to apply for a duplicate. REPORT OF THE POSTMASTER-GENERAL. 989 In order to assure propor ])ayineiit Urn oUke of the Paymastfi-Geu- eral of the Ariny has for a uuuiber of years avaih-d itself of the money- order system in i)ayiu;; chiims against the United States for tho services of colored sohliers of the hite war. The amount of ordei-s issued for this purpose during- the last year, and transmitted, as a pre- cautionary measure, through the oQice of the superiutendent of the money-order system to the i)ayin{,' postmasters, was $16,400.72, as agaiust $14,512.45 for the previous iiscal year. DUPLICATE MONEY ORDERS. Annexed to this report will be found a classified statement, Table B, of the duplicate orders issued during tho year by the office of the super- intendent of the money-order system, tho number of such dnplicates being 21,5)34, or 3,543 more than during the i)receding year. Dujjlicate orders are issued without charge to the public, under authority of law, whenever the original order has from any cause been lost or destroyed, or has been invalidated by the operation of law, either by not being presented for i)aymeut within one year from the date of issue or by re- ceiving moie than one indorsement. They are also granted to remitters when, in pursuan<'e of section 4ti41, lievised Statutes of the United States, the Postmaster-General has i)ro]iibiteromises. DRAFTS AND TRANSFERS. By regulation it is made the special duty of a postmaster to provide as far as i)ossible against delay in the i)ayment of money orders. But the current of business at many offices is such that the am(tunt of money-orders i)resented for payment is c*iitinuously or occasionally in excess of the gross amount of funds received from the issued onlers; so that postmasters at such oflices are authorized and instructed to trans- fer, when occasion requires, a sufficient amount to i)ay orders froni the ]>ostago to the money-order fund. The total amount of siu'h transfers during the last lis(;al year was >'1)05,7()7.81, while f(U" the same ])eriod the sum of $287,6U1).S1 was retransfcrred to the i)ostage from the money order account. The balance in favor of the postage account, $ostmast<'r at San Francisco, Cal., or by the ])ostmaster at r«)rtland, On'g. In the last lis<^al year tlu^ total amount of drafts drawn again>;t credits at New York was >ensation of a postmaster from all sources being $4,000 (except in the case of the postmaster at New York), the REPORT OF THE POSTMASTER-GENERAL. 941 commissions over 84,000 arc, bv autliority of tlio Postmaster-General, given to such otiices as earn an (jxcess, in the Ibrm of an allowance for clerk hire on money-order account. Among the "incidental expenses" may be mentioned the sum ot $53,344.49 i)aid directly from money-order funds to the Public Priut<.*r for books, blanks, print in^i, and stationery I'urnished liy him to the money-order ottice for use by postmasters and the department in the transaction of money-order business, of which amount fi57,L'0,S.12 was paid for Avork and material ordered during the fiscal year 1.S80-'81. "BAD DEBTS.'' Only a very small portion of the amount enibra«.').■ i.0( id. lo. was the loss incurn'd by reason of the failure of the banking house of Henry Clews & Co., of jS'ew York, and the conscMjuent non payment and jtrotest of certain bills of exchange jmrchiised by the department from that tirm in August and September, 1873, for the ])urp(jse of ])aying balances '4.S,rotractcd elforts to secure, by suit at law, the re- mainder of the sum due, the department having bectune satisfied that little could be accomplished iti that way because (»f the inaile»|uacy of the assets, the claim was finally comjiromised by authorRy of tlu^ Post- master-GeJieral and the ^Vuditor, under se(;tion 409 of the llevisetl Statutes of the United States, by the payment, July 7, 1881, to thi* Post- Oflice Dei'artment, on the part of Henry Clews c^c (^o., of the sum of $12,000 cash, in fidl settlement theicof. The gross loss on ac<-ouut of the insolvencv of this banking house was tlu'refore, as alntve stated, $33,or»o.jo. Notwithstanding tlie al)o\('-nieiiiioiie(l loss, which is properly char^- able to the year in which the transactions occuired, the gioss revenue from the domestic nuineyorder business exceeded the revenue from the business of the previous ycai' by .i0. 18S1, conventions for the exchange of money orders ha\e been «'oncbMled between the Unit«Ml States, on tlu' one hand, and Jamaica, New South Wales, N'lctoria, and New Zealand, resjiectivel.\, on the other, so that mouey-onbT business is now transacted with ten difVerenl foreign countries, to wit, the four just mcnticmcd and Canada, (Jrcat Pritain and Irehnul, Cermany, Switz erland, Italy, and I'lauce. On Janmiry I. 18Sl', a new convention with Switzerlaiui Avent into ellect which simplitled the ex«*hange with thai country and admitted of a reduction ot the fees «'hargcd foi- the issue of Swiss orders in the Cnited States. There were in operation on .lunt- 30, issj, 1. !'_'."» international money- (»rder oflices aufhori/.ed to transact money order business with wu-h of the foreign countries with which the I'niled States maintains an exchanpt* of money-orders, rniformily of system having, in gn'at measure, ln-en secured, the same set of forms is emi)loyed by [)ostma.stor8 for orders of all tlicse nationalities. 942 PAPERS ACCOMPANYING THE Negotiations are now being conducted looking to an interchange of raoney-orders between tbe United States and Tasmania, Japan, Sweden, Norway, and Belgium, while money-order business with Portugal, under a convention duly signed and approved Julj"^ 15, 1882, will be commenced on January 1, 1883. Annexed to this report will bo found a copy of the new money-order convention with Switzerland and copies of the con- ventions with Jamaica, New South Wales, Victoria, New Zealand, and Portugal, respectively. STATISTICS OF THE INTERNATIONAL MONEY-ORDER BUSINESS. The subjoined statement exhibits in tabulated form the number and amount of orders of each of the several international varieties issued, the number and amount of orders paid, the amount of fees received, and the gain iu amount, with the percentage of gain, in issues, pay- ments, and fees. The enormous increase therein shown in the volume of the international money-order business is the best evidence of the public's appreciation of the facilities which the several international systems afford. 2 £ o o 3 /5 •13 « i 1 o "S o Q 'a 2 o o "S s 1 3 S 1 2 S t o c a g S 10, 080 182, 293 lie, 370 48, 220 14, 233 6,015 45 69 47 62 $205, 820 06 2, 740, 362 09 2, 057, 705 42 1, 018, 641 62 408, 221 60 99, 738 10 917 23 2, 345 75 1, 200 83 1,561 78 $859 25 5, 479 96 10, 421 15 4, 296 73 715 98 745 10 4,020 24, 940 34. 974 49,537 738 2,728 297 93 129 427 $113, 292 05 407, 766 93 1, 047, 940 77 785, 326 01 19,616 87 57,352 79 8,284 i;; New South "Wales 2, 077 05 2, 603 72 9, 202 47 Totals 377, 413 6, 536, 514 48 22, 518 17 117, 883 2, 453, 462 79 n £ >> ■ 95 " 1 <^ . a . o P<^ «£3 .2 fe-- "^^ Coo c» .Si a ao .Si C 1 OS 00 ri"^ MS p-SS SSOD «"i w^ a Li fc(o a (- t.- »~* CS'^ Oi >-l bcS «"Sg o o o o^ o2 c2 ■S5 s a ^.> a ® 3 B n ^ 5 o « O o S O CO o S'" s~> a S£ 9 < < ^ .7(>: from the German, $18,5)08.10; from the Canadian, 87,770.31; from the Italian, $8,4(jy.25; and from the French, !J1,1G3.40; a t-otal of $80,1L'G.18. GENERAL FINANCIAL RESULTS. ' The total issues of domestic and international money-orders were, in numl)er, 8,71)7,312, of the vahie of *1 H>,()3.»0, from which amount to 810(> a fee of 45 cents is pro- l)Osed, and to the issue concurrently with nmiu-y -orders, under au- thority of law to be enacted by ('ongrcss, of money onlers of a new form, to be Called postal notes, for a fee of 3 cents, to br payable at a designated money-order ollici^ to the l>eai-er, and to Im' drawn only for sums less than ^r). The increase, with correspondingly augmente55 pounds, and of jirinte,15L grams, or 1,7X0.521 pounds; an increased weight as compared with the preceding fiscal year of 73,367 pounds of letters and 378,080 pounds of printed mattcr'and samples. Of the letter mails di.sjtatched, 170,044 ])Ounds (42.03 per cent.) were sent to Great Ihitaiu anas 21.52 per cent., and of printed mat- ter and sani])le mails 20.87 per cent. A comparison of the weights of the nuiils dispatched to foreign conn tries during th(^ fiscal year 1882 with thos<' of the fisc^il year 18so shows the increase of correspondence to have ]»eeti as follows: I'lMinil.t. Weight of letti r mails : In 18«2 \\i.-X\-. In 1«80 UT-M-l All iucrwase in two vcarK of 112, 171 or o2i per ceul. ^\■ciJ^lIt of (iiLiitcil iii;itl1.1-M An increase in two yiMH of (Ui^, lul or .'■>li ptT com. A statemenl of the \\ei;:li(s ol' the mails dispatidied to each Postal Union country and colony i-^ rt'p(»rled by the Auditor «•!' the Treasury for the Post-<^)nice I>epaitmeul. ruv: M'.MnKR (if mmi r.cs iixcn vnuf.i» with coujilries andeolonifs no( embraced in the Universal l'«istul Union, exclusive of Canada, was Kis.s.'iL', of which number 05,H5«.> were sent to, 00 Ab 946 PAPERS ACCOMPANYING? THE and 73,663 received from such countries; a decrease, compared with the previous fiscal year, of 338,996 letters sent, and 147,388 letters received from nou-Union countries. COST OP THE FOREIGN MAIL SERVICE. The sums rci)ortcd for payment on account of sea-transportation of the mails disi)atched to and received from forei^pi countries during the fiscal year 1882, including 13,077 francs and 31 centimes ($2,619.73), credited to France in the quarterly accounts with the French postal administration for the conveyance of United States mails by French contract packets from New York to Havre, amounted to 8280,163.98; an increase over the cost of the same services for 1881 of $11,014,77. Of this amount $233,485.34 was reported for the trans-Atlantic service ; $16,537.38 for the trans-Pacific service, and $30,141.26 for services Xa) and from the Isthmus of Panama, Central America, and the South Pacific; to Mexico, Cuba, and Porto Eico; to and irom other West India Islands ; to Brazil, the Argentine Kepublic, Paraguay and Uru- guay; to Venezuela and Ciiragoa, and to Canada and Newfoundland. Particulars of these several services are appended in statement marked A. A comparison of the cost of foreign mail transportation for the fiscal year 1882 with the cost of the same service in 1880 shows the increase to have been as follows : Cost of the service in 1882 $280,163 98 Cost of the service in 1880 198,667 46 An increase in t'wo years of 81,496 52 or over 41 per cent. The expenses (chargeable to the foreign mail service) of maintaining the United States postal agencies at Shanghai (China), and at Aspin- wall and Panama (United States of Colombia), for office rent, clerk hire, porterage of mails, and other miscellaneous items, amounted to $2,695.55. These expenses have been materially reduced by a curtailment of the business of the agencies at Aspinwall and Panama, consequent upon the entrance into the Union, from July 1, 1881, of the United States of Colombia, the postal business of said agencies being now restricted to the receipt, custody, transfer, distribution (when necessary), and for- warding of mails in transit from and to the United States via the Isthmus of Panama. The payments made by this department in previous years, on account of the Atlantic sea conveyance of the Australian closed mails from New York to Great Britain, were discontinued from July 1, 1881, the British post-office having agreed to pay directly to the conveying steam- ship lines the sums becoming due for the conveyance of such mails. Under this arrangement the appropriation made by Congress for ocean transportation of mails during the year 1882 was relieved from the payment of 70,360 francs 31 centimes=$13,579.44. The aggregate amount of the quarterly balances pair! to this de- partment on settlement of postage accounts with other Postal Union administrations was $104,201.20, and the aggregate amount of the quarterly balances paid by this department to other Postal Union ad- ministrations was $43,605.22. The sums credited to this department by Postal Union administra- tions on account of the United States territorial and sea-transit of for- REPORT OF THE POSTMASTER-GENERAL. 947 eign mailB, amounted to 657,728 francs 12 centimes=.S 120,911.53, and the sums credited by this department to Union administrations on ac- count of the forei;,^n territorial and sea transit of United States mails, amounted to 423,392 francs 52 centimes=$.Sl,714.7(j. The amounts «.'Stiniated as nece.ssary for appro] »riatiou for foreign mail service for the liscal year 1883-1884, are as follows : For trausportatiou of raaila |;i50,000 For balauces duo Ibreijiu countries, including the United States' portion of tho cxpeust'H of the International ijiirean of the Postal Union, and the hiiI>- scriptiou of tho dejiartment for 2o copies of tho monthly journal of tho Union— " L'Union Pustule" 60,000 Total $410,000 ADMISSIONS TO THE UNIVERSAL POSTAL UNION. The additions to the Universal Postal Union during the year have been as follows: The Iiei)ublic of Nicaragua, admitted from ^fay 1, 1882. The Kepublic of Costa llica, admitted from January 1, 1883. The Postal Union now embraces all countries and colonies of the civilized world known to have organized postal establishments, except Bolivia in South America, antl the British Australasian colonies. For full list of Postal Union countries and colonies, with dates of admission, see statement marked B, appended. MODIFICATIONS OF POSTAL UNION ARRANGEMENTS AND DETAILS. The following changes in the Regulations of Detail and Order under the Convention of Paris, have been adopted by votes of the Postal Union administrations, viz : Paragraph 10 of Article XXXII has been amended so as to read : The post-otlices which the Japanese administration has estiiblished at Shanghai (China), at FnsamjJO and Genzanshin (Corea). Paragraph 4 of Article Yl has been modified as follows, to take effect January 1, 1883 : Registered articles must hear u lahe! or impression of a stamp Bhowin-, n. a dis- tinct manner, the capital letter R in Roman text, it heinjj left o])tionnl with each office to a«ld to the letter R tho Bpecial mark f indication of oftico of origin or coun- try of origin, number of order, &c. ) which it eliall deem proper. Consequent upon tho ndojjtion of this modificatioji, and because of the uniform charac'ter of the stamp or label indicating registnition thereby i)rovided for use by all the ixtstal administrations of the Union, Article XXIX of the Kegulations has been also modiMe«l, to take efl'eet on tlw same date, by su|>pressiiig the srcond subpnrac:raph of paragraph 2, and numbering the tliinl, Iburth, atid lifth subi)an»graphs thereof 2, 3, and 4, resiiectively. Article XIV of the Regulations has been mo. 953, 54^ 2, , MG, 3»7i 2Cnmber of prepaid letters Xamberof unpaidaiul insufficiently ^paid letters ". KunjUcr of free of postage letters . Total number of letters Total uuiuber of siii;;lo rates .„,„,,.,,„.. Xnmberof postal cards 1, 42.-', 20til 918,179 Knmbt'r of packets of uewspapfx*, | i other priuto^ matter, and birei- ness papers Xumber Of packotfl of samples of merchandise , Xnmber of registered articles Kwmber of deaiauds for return re- ceipts , Prepaid postagefi on letters Wl, 385, 618 15 I 'repaid postages on printed mat- ter, &c Unpaid postages on letters, printeostage. '.). That of the total number of postal articles sent, 51 per cent, were letters; 2.78 per cent, were i)ostal cards; 44.57 per cent, were news- papers, other printed matter, and business pai)ers, and 1.05 per cent, were samples of merchandise. 4. That of the total number of postal articles received, 54.4C percent, were letters; 2.01 per cent, were postal cards; 43 per cent, were news- papers, other i)rints, and business pai>ers, and ().."»;$ p<'r cent, were sam- ples of merchandise. 5. The estimated amount of ])Ostages collecteuntry, ;is well as of the international iK)stal rrlations bt'tween the countries of the I'nion. It appears by these statisti<'s that the relalive rank of the principal Union countries, in respect to the following particulars, was as follows: 1950 PAPERS ACCOMPANYING THE 1st. Innumber of post-0 f ices the Vnited States ranks lirst, with 42,989 officesj then Great Britain, with 14,549; Germany, with 9,460; France, 5,942; Japan, 4,CG5; Kussia, 4,458; British India, 4,409 ; Austria, 4,025; Italy, 3,328; Switzerland, 2,852; Spain, 2,042; Hungary, 2,301; Sweden, 1,785; the Netherlands, 1,316; Norway, 924; Mexico, 897; Belgium, 792 ; Portugal, 755 ; Denmark, 560. 2d. In respect of the relative proportion between the number of post- ofices and that of population^ the principal countries of the Union rank as follows : Switzerland has au average of 993 inhabitants to each post- office ; the United States, 1,167 to each office ; Norway, 2,078 ; Great Britain, 2,372; Sweden, 2,565; the Netherlands, 3,085; Luxemburg, 3,175; Denmark, 3,537; Germany, 4,778 ; Austria, 5,498 ; France, 0,211 ; Portugal, 6,285; Spain, 6,333; the Argentine Eepublic, 6,400; Belgium, 6,991 ; Hungary, 7,258 ; Japan, 7,701 ; Italy, 8,545. 3d. In number of letter-boxes for reception of correspondence^ the prin- cipal countries rank as follows : France, 57,960 letter-boxes ; Germany, 67,782; Great Britain, 27,782 ; the United States, 18,460 ; Italy, 11,550 ; Spain, 9,406; Austria, 8,013; Russia, 7,957; Japan, 0,935; Brilish India, 6,392; Belgium, 5,456; Switzerland, 5,270; Denmark, 3,382; Hungary, 3,263 ; the Netherlands, 3,047 ; Sweden, 2,700 ; Portugal, 1,303. 4th. In number of letters conveyed in the mails, the principal countries rank as follows: Great Britain, 1,176,423,600 letters; the United States, 847,830,029; Germany, 522,689,800; France, 488,462,763; Austria, 174,999,000; Italy, 151,471,018; British India, 118,072,439; Russia, 92,451,476; Spain, 66,525,891; Hungary, 64,647,572 ; Belgium, 61,209,200; the Netherlands, 48,070,539; Switzerland, 45,739,594; Japan, 36,898,795; Sweden, 27,130,454 ; Denmark, 22,011,999 ; Portugal, 14,124,919. 5th. In number of postal cards conveyed in the mails, the principal countries rank as follows : The United States, 275,324,224 postal cards; Germany, 135,135,100 ; Great Britain, 122,884,000 ; Austria, 36,026,000; France, 27,540,065; Japan, 19,884,451; Italy, 19,714,710; Belgium, 14,720,342 ; the Netherlands, 13,775,947 ; Hungary, 12,905,458 ; British India, 7,471,984; Switzerland, 6,649,297; Russia, 4.682,544; SwedenJ 1,250,081; Roumauia, 685,802; Portugal, 252,751; Norway, 209,014; Denmark, 173,128 ; Spain, 161,986 ; Luxemburg, 155,883. 6th. In respect to the number of letters and postal cards per each in- habitant, tlie principal countries rank as follows: Great Britain, 37.6 to each inhabitant; the United States, 22.8; Switzerland, 22.4; the Netherlands, 17.1; Belgium, 16.2 ; Germany, 15.6; France, 14.9; Den- mark, 12.6; Luxemburg, 11.7; Austria, 11.1 ; Sweden, 6.9; Italy, 6.6; Norway, 5.7; Spain, 4.1; Portugal, 3.3; Greece, 1.7; Japan, 1.0; Roumania, 1.2 ; Russia, 1.1. 7tli. In number of newspapers conveyed in domestic mails, the principal countries rank as follows : The United States, 730,269,063 newspapers; Germany, 420,944,000; France, 285,691,654; Great Britain, 133,796,100; Russia, 83,233,945; Italy, 81,060,778; Austria, 75,282,900; Belgium, 64,680,000; Switzerland, 49,967,736; the Netherlands, 33,682,452; Hun- gary, 27,722,577; Denmark, 25,007,457; Sweden, 21,087,036; Japan, 17,596,758; British India, 11,251,021; Norwav, 10,402,002; Argentine Republic, 7,500,000 ; Greece, 1,688,841. 8th. In number of newspapers dispatched in international mails, the jmncipal countries rank as follows: The United States, 18,378,837 ncws- jiapers; Great Britain, 16,697,753; France, 15,894,252; Germany, 8,760,000; Italy, 5,030,860; Belgium, 4,001,000; Spain, 3,117,521; tlie Netherlands, 1,251,605; Russia, 1,235,686; Argentine RepubUc, 795,000; Sweden, 714,717; Greece, 502,047; Norway, 201,428. REPORT OF THE POSTMASTER-GENERAL. 951 9th. Ill respect to the length of interior mail-routes of all ]ermits, as a temporary measure, the adminis- trations of the countries lu-yond lOuropc whos*; legislation was at that time oi)i>osed to the principle of ivsponsibility to postjion*' its ai>plica- tion until they shall have obtained frum the legislative power authority 952 rAl'KKS ACCOMPANVINU THE 1«» subscribe to ii. To enable tLis (lepartmeiii to carry iiilo eflV'ct tbis provision of the I'aris Couveution, your predeccBSors baAO reeoinuieiKled iu eacU annual lepoil since tbo conclusion of tbc Paris Convention, that llic ne(!essaiy autiiority (berefor be. given by lav. Jjills ha\e been in- troduced in Congress i'or that object ^\hicb liave passed the Senate, bur have not been acted iij)on by the iJouse ot Representatives. J respect- fully suggest that the attention of Congress be again called by this de- partment to the ftn]>ortanceof enacting the necessary legislation o]) this subject. The countries and colonies of the Universal Postal Union outside of Europe which, up to the latest advices, have agreed to the principle of responsibility in case of loss on their territory, or in their maritime sernce, of a registered article, are as follows : Egypt, British India, Persia, The Danish Colonies, The Spanish Colonies, The French Colonies, The Netherlands Col- onies, The Portuguese Col- onies, The United States of Colombia, The Eepublic of Hay ti, Antigua, Bahamas, Bermudas, Ceylon, Gold Coast, Dominica, Gambia, Grenada, British Guiana, British Honduras, Hong-Kong, Jamaica, Labuan, Lagos, Mauritius, Montserrat, Nevis, Saint Christopher, Saint Lucia, Seychelles, Sierra Leone, Straits Settlements, Newfoundland, Tobago, Trinidaei'tluity of detail, rendering them accei)table for reference and for sj)ecial exhibition and demarca- tion of district divisions, «!v:c. Maps have been sent tluring the past year, in comi)liance with request, to the following: Treasury Department, Bureau of Statistics; Treasury l)ei)artment, LTnited States Coast and Geodetic Survey Office: War De])artment, Oftice of the Secretary; War Department, Otiice of the Chief Engineer, United States Army; War Department, Ollice of the Paymaster-General, United States Army; War DejiartnuMit, Signal Oftice, United States Anny; Dej)artment of the Interior, General Land Oflice; Dei)artment of the Interior, Pension Otiice; Dei>aitment of the Intericu-, Ollice of Auditor of Railroad Accounts; Department of the Interior, Census Otiice; DepartnuMit of the interior. United States Geological Survey 011ii; letters have been answered, covering 41- (pieries. That number of queries is but small ciunjiare*! with those oi" some years back, but their reference to this ollice is necessitated by the absence of any authoritative table of distances. There are gn'at jn-actical dilliculties in the compilation of an extended ami correct table, still such a publi- cation is a desideratum, the ''Distance Tables" of this departuu'ut, issued in 187.1, having been long obsolete. In view of tke great labor that would attend such a comi)iIation, suggestions have at varu)us times been made for a joint etfort by the governmental departments most in- terested iu this matter. During the i)ast year the ])rei)aration ami publication — with successive editions to keej) pace with the incessant progress of the postal service — of the series of post route mai)s have been continued under my sujjcr- vision. New editions lia\ c been issued of all the majts hitherto 2)reparcd (20 in number, covered by 0") sheets). Sufrcessive editions, at short in- tervals of fhree or lour months, have been and always will be required to show the numerous additions and changes of postolhces, ami the course and frequency of service on the several post-routes. 956 PAPKK.S A(.'COMl'ANV'l.\G T15K New maps (photolithographed to supersede. IbriiiL'r j)rovisiuiiiil cupits) Ikivo been coi)ii)leted of Nmv Mexico and Arizona, of Utah, of Oregon and ^^■a.slungton, and of Ibe. INMi'itone.s of .Aloiilana, Idaho, and Wy- oniin.u-, and enpaved plates have been completed of Airginia and West Virginia. A new map (photolithograplicd) lias b- Balance available for the service of 1881 1 VJ, .'v)<"> 07 Fiscal year 1860 : The balance available for the service of 1880 at the close of the last annual report was M-^. 4.'>3 93 The amount paid durinj^ the last liscal year was 42,032 7f'i Baluucf uuexp.iidod for 1h-0 4lH5,421 17 Fiscal year 187'.i and previous years: 'I ho amount jihiced with the Treasurer, under the act approved Aujjuf*! 8, 1882 (Public, No. 2U.'>, pa;;es27 Hnd30), was ti,5i>."> 12 The amount paid to September 30, lHb2, was l,0:iU 14 Bahinco available on this aeeount .'^ 'o.'! '.i- SUMMARY OF 1JEV13NUES AND EXPENDITURES. Revenue of 188^2 .' *U..«'7(;.4lti l.'. C Jrants from the Treasury, 1879 and i>roviouH years (claims) (J, 'I'.i.'. \U Total reooipls 41, -83.artments, included in the above amount of stamps sold, was: For the State Department $2,040 00 Forthe War Department 13'J,fi:{=) 98 For the Interior Department 21,1>07 00 For the Department of Agriculture l.'iOl 50 For the Navy Department 6:0 00 Total ofiBcial stamps $166, 15 48 Total ordinary stamps sold 'S-j,537,'202 52 LETTER POSTAGES. The amount of postage paid in money was $97,585 32 Included in tlie above amount are the following sums paid by foreign coun- tries in the settlement of their accounts: Kiuj^dom of Great Britain and Ireland $14,779 44 Dominion of Canada IvJ, 756 46 Republic of Mexico 2,615 8;'» Empire of Japan 4,0:59 17 Kingdom of Spain 1,0:?() ^'9 Colony of New South Wales 740 25 Kingdom of Norway 101 90 Empire of Austria - 40 ;U Republic of Switzerland 'A9 IS Colony of Queensland 53 56 Postal admiuistration of Hong-Kong, China ^ 99 91 Administration of Straits Settlements, East Indies 12 75 37, 245 70 Balance collected by postmasters TRl, 3:59 V>2 The following balances were paid and charged to the appropriations for — BALANCES DUE FOREIGN COUNTRIES. Service of 1882: Empire of Germany $4,444 62 Kingdom of Belgium H, ,*J9 49 Republic of Franco 2,212 35 Kingdom of Denmark 2, Gti2 49 Kingdom of Koumania 152 65 Kingdom of Sweden 638 10 Kingdom of Italy 2,093 14 International Bureau — Postal Union 670 50 Total, 1882 $21,733 34 Service of previous years : Empire of Germany $4,444 62 Kingdom of Belgium '^,829 49 Republic of France 2,242 :)5 Kingdom of Denmark 2,6(12 49 Kingdom of Koumania 1 52 <)5 Kingdom of Sweden €u\S 10 Kingdom of Italy 2,093 14 Colony of St. Thomas, W.I 809 04 Colony of the Bahamas 61 07 Total for provioii.s years 21 , 932 95 Aggregate amount paid 43, GG6 29 MAIL TRANSPORTATION. The amount charged to "transportation accrued'' and placed to tlie credit of mail contractors and otlicrs for mail transportation thuing the fiscal year was: For the regular supply of mail routes $19,729,240 84 Forthe supply of "special" otlices 42,939 24 For the supply of " mail messenger " offices 724,714 69, 960 PAPERS ACCOMPANYING THE For the salaries of i^ostal railway clerks, route agents, local mail agents, aud mail-route messengers 3,235,907 95 For the salaries and expenses of the superintendents of the railway- mail service - ...-......-.- 44,208 11 Total 723,777,016 83 FOREIGN MAIL TRANSPORTATION. New York, Great Britain and Ireland, and countries be- yond, via Great Britain $191,654 94 New York, (Jreat Britain and Ireland, and Germany, and countries beyond 62, r)76 53 Philadelphia, Great Britain and Ireland 3,233 16 Boston, Great Britain and Ireland 840 90 Post-Office Department of Canada, English mail 406 77 New York, Baltimore, Philadelphia, Boston, Key West, New Orleans, aud San Francisco, West Indies, Cen- tral aud South America, Mexico, &c — 30,59t) 20 New York and Newfoundland - 21 54 Baston and Nova Scotia -. 65 36 Baltimore and Bremen 28 69 Upper Pacific coast, local mail 727 06 San Francisco, China, Japan, Farther India, Australia, and South Sea Islands 16,537 38 Expenses of government mail agent at Aspinwall 705 00 Expenses of government mail agent at Panama 1.125 00 Expenses of government mail agent at Shanghai, China. 1,043 61 309,564 14 Total 24,0«6,580 97 The amount credited to transportation accrued and charged to mail contractors for over-credits, being for "iines and deductions," was. 222, 115 65 Net amount of transportation accrued 23,864,465 32 The amount paid during the year was 22,766,887 10 Excess of transportation accrued -- 1,097,578 22 PACIFIC RAILROAD ACCOUNT. lucluded iu the above amount of trausportation accrued are the fol- lowing balances accrued for the ti'ausportatiou of the mails over Pacifi;4 97 Amount becoming due during the fiscal year ol,'Jll 27 Amount paid during the year tJti, 501 2S Amount credited to "suspense" 2t,01l 14 13a, GOG 24 lX),r.l2 40 Balance remaining due lato postmasters 47, 493 h4 Amount in suit Juno 30, IStil 2.'i7,:U»H Ot"., Amount submitted for suit during the fiscal year 1, 507 i:'. Of which there was collected during the year. A mount otherwise settled r),4l9 53 7, 190 fs; 258,813 19 13.610 36 Balance remaining in suit 245, 202 83 Amount of costs and interest collected in suit. 1,211 00 Statement of the vet revenue derived from the domestic moncy-ordir transactions for the year ended June 30, 1882, and of the international money-order transactions for the year endtd June 30, 1881. Revenue accrued on domestic money-order transactions, 1882 •5-'!;0,341 17 Revenne accrued on international money-order trans- actions: Revenue accrued on Canadian transactions for 1881 $7,776 31 Revenue accrued on British transactions fi>r 1881 41,(566 79 Revenue accrued on German transjutions for 1881 1"^,908 10 Revenue accrued on Swiss transactions lor I'v'l 2,412 33 Revenue accrued on Italian transactions for 1881 "^,469 25 Revenue accrued on French transactions lor 1881 1, 1»>3 40 Total international tO, 42«) 18 Total net revenue paid to postal account 360, 7»»7 3,'i The following tables, numbered from 1 to 1!>, inclusive, exhibit morr in detail the financial transactions of the dei)artment lor the tiscal year: No. 1. — Statement exhlhiting t/unrtirly the rvriipt-> of the J'oht-Ojlice Department, under their sevcrul hfadn, for Iht fiscal year rnded June 30, l^r^. Arconnts. Letter postago Box-rentH iiud brnnch of- fices Fiues and penalties l'o8tape-8tamp», Htaniped ouvelopesaiid wrappore, and poKtal caixl.s Beiul letters , Kovonue from monoy^or- der buRiness illJacellaneonH , Qnart<>r end- \ (^uai-tor rnd- Quarter tnid- QnnrtAT end- ' od StipU'iii- (>d Decern- (hI ^Lorch cd Juno 30, ', AxsTent«. bpr:^,!^!. h«T31,18«l. 31,1882. 188S. $48, 218 32 !t93,u27 10 l.WO :i7 $20,880 54 40.1, 422 78 .'■., 304 25 9.040.588 -.t) 10. 170,991 18 1, 423 90 3, 217 W 5, 908 91 |2.'>, GOO 37 422, 14S 81 12. 472 12 10, 466. .^40 42 ].'£» 99 $2,817 09 107, i»i :rj 433, 03« 4« , 1. ra, 132 21 1,010 25 20, 42««i 7,584 77 8,178 Oft Total 0,400,700 95 110.020,400 90 10,056,236 80 61 Ab 0.906.2r 11 1,7M 36 300.707 35 12.811 88 39, 703, 3.' 7 0(1 7, 6.'.T Ki 3M. 787 3.-. 34, 483 U. 10,809,000 SO I 41,870,410 15 062 PAPERS ACCOMPANYING THE I- -j> I- ^ a a cc.-o !■- in o fc o ift M" »H •rf O OS « Oi a. I - — ■ o -* f o f ^ ic T C5 r I l--< C-li-llfli-lrHOmr) • cc I- o CI -f r-; f-H r>^ *r o o; -^ r* c» i-O ^ c> f-T^'i- I- ■^croTor-^trTi^fH ■^ COMt' 00 O O r-i I- CI t» •«■ (M O O) ~ COCOt.^CO»rtfOr-l*-• acic-?iF-iH >t*con <»o 00 cooicci-cco ■t-H'xr:! CDiOOCCOO-■ l:^ o "M t^ CO ir- CO cs »o o t- ci CO ci CD ;» COCD-^t-r-■ CI C OJ 'I* CO lO -— >-< ^- - OS 10 -T** t— CO 10 t- CO - - , i"t'^Tirr-rrj'"of i> i-ToT MCO Ol-^COiO'— '-'OCO O ^ - - ----- -- oo'c-f CD CI CM O CD mmcDoooci>t-o COi-t— 'CDC-lCCTflOOO CDt^t'-l'— 'OOICO.H 10 :X 1-1 UO CJ CO CI OS C'l t-' o" r-" C^* C f tr-*" O' CD" ■*" coL—-*^,— I'^j'incooo C^ CO *-H CO tT CO r-< W t-l COC^OJ IftC'lOM CrCDiCes- C» CO -^ ClOi r-t co'ic'-i^ 5 l^ 10 rH t- C^l CI CO CI CI CO o; Tp CDt-C5 cD"i-r;D Cl CI CD C^l »C <» O l-CI OSTtfOO r-? C5 c: 00 L-i ■^ CO Ift "H ■^ co'cDi-i'or Tf r-l CO-*** cscsooocsosca coi-f csocodococ^iocoift 00000 oocib-o oi-jft CO CD i-t CO OCa-^OCO 1-H 00 — CO ^ •* ^ O ^^ Ci -+ t— ^-< 0> o cor-c-i» ^■^i-ooojc* co»-< * OCIOr-l t>COCD00C^ coo CO t— 10 rt 01 iH ■< CO I-- DS 00 -1> X 00 ''^ CD OS -<* CD rf in - --l ^ ^J ,.. .. . (CO coco , t- CO O CI C) OS CI ^ CO t> W *-t CO 00 i-i CO CO OirH C • oooinoo— iTj< looo coooMootntocoojc-jiM^oo-"* inooeso oot-int- 0000 ! O i-H to r^ O r-l C5c^io:cocot^o> 000 occ:ooc^5r5QOt:-ooT}ario'rf' tat-" c&ooc3:30oococsoiftc^ o 00 1-1 oorct-t-oc^ooocsociiJ-iio re to rj- ^^. 10 c tC 00 u-5 O Cl M O o ■>t't-<''crte"-*'arcr.-rTjfo'c5"o O O 10 O t> T-^ -^ « t^ t- CO 10 rt CC CC CO I-l ^iS <^-i o\r. f. hto l~ C1-* ' bd o CO o ci io d> o 10 t- co QDoccit^ o»-ioaBO "^io n o 00 oc r^ -r ■ (!< to tj S ©CO a = s .2.2.3 •£. C3 "3 cj ttl 9 o u a C€ CO C.2 p II R 9 " p. . =S ^3 to t. ; « c 9 . t- -1 ;.• & - ^ 3 5 ; es « C.=L=.C B = a I: ij ^ .i. ® -^ t^ - C C P g o c >; o :£S 1 Co ill ■13 05 rt o ■s§* C^t Us. I -ll^'B'3-c n '•n 111 • a c £ •!^ ; u ■ tt. ■*^-^ » a a; -3 ts,-! =i a PhhWocW REPORT OF THE POSTMASTER-GENERAL. 963 000» ^ (NO>->0000 COfl t~ CI o oo .-< «* o r- CI CM- c CI •-H CO I- c; o CT) C^ O « O I- Ci o rH O c» C. C) s§a Art in ■a 00 5 H4 58, 752 98 67, 789 43 141,228 971 11,550 95i 58, 833 881 47, 496 021 29,419 95! 10, 077 73 57,784 17| 12,780 21i 3, 457 57| 3,116 60 11,025 60 4, 90U 34 l,(iS4 .W 3, 027 48 7,7aT 90 $14, 540 07; 7,772 30 2 G4S 37 2-loiu92 Ott 26, 412 43 1 35,244 69 709, 997 9(» 74, 179 39' 371,765 34; 8,502 5:! I 76,8{il 12! 24, 640 80i 6. 663 40 '"T.ioo'&il 20, 664 05j 'i62,755'66 45, 257 54 55,984 96 211.772 89| 30, 148 04 25, 032 02 143,'704 41 1 35,660 19 20, 078 OK 5, 114 19 4,259 95 44,834 64 15, 131 81 74,064 18 4, 503 75 26,274 94 8, 193 08 8, 937 49 "is," 516 90 $50. 465 50 22, 352 80 15, 766 31 2i;9,794 09 10, 160 76 53, 457 51 404,071 17 33, 515 47 312, 376 47 8,243 41 57, 323 92 64, 497 29 17. 397 23 29, 245 79 42, 286 25 94, 448 45 18, 562 Kf 559. X9G 67 116,926 84 116,611 01 39-t, 405 97 6K, 095 77| 131,107 91 242, 998 08i 58,333 45; 76, 175 06 22, .595 69 17, 5n5 11 27,59-1 40; 28,471 48 59, 839 80 t5,762 15 16,480 73| 70, .552 07| 81, 761 30' 73, 80X 81 •J, 029 93 37,915 74 33, 55 J 02 16, 840 93 4,435 84 9,9;iG 41 1, 2.58 5(t 1,224 22 324 38; 62 03 $229, 046 47 105, 191 03 144,935 12 447,571 22 48, 487 29 202,920 17 1, 897. 388 37 3u7,529 71] 1,009, 504 84 27,9i3 92 412,316 60 596, 937 02' 121,799 23. 274, 438 :i5: 212,521 52 411,251 00 177,065 81 l,4,'i3.6-15 41 454, .321 83 Wl,86:i 04 1,157, .500 30 402,620 72 537, 479 6^ 933, 656 5:: 401,9:!5 39 2;t0, 41W ."1 :j26, 087 .'-.H 2(17,414 90 278, 335 06 274,078 61 8^49. 151 00 1,106.557 fill 200, 111 hn 371.713 U .5t}9. 064 74 070,021 07, 1H9, 573 03I 4.30, 776 55; 278, 494 OM 94, 183 54' 130.714 5-4' li;o, 081 on 2.55,244 071 1042,981 41 , 2S6, 332 36 . ;«)4,500 18. 1, 717, 481 49 . 162, 129 77 . 018, 004 29 . 5,011,5h9 17 . 674, 124 99 . 2, 782, 779 52 . 77,598 51. 743, 703 22 934, 896 88 243, 026 70 449, 780 24 3.59, 305 23 718,2.58 64 261, 476 k7 2,970,211 (-9 1,121.077 72 . 1,109, 109 65 . 2. 827, 628 03 . 877,433 79 . 1, 225, 2;<4 36l . 1,830,991 63; 719,171 04I 511,7.52 89| 497, 277 85, 354,742 151 42S, 251 68 •l.<'!, 512 80 1, 252. .'■>5 09 1, 643. !lr6 91*! 295, 129 74' 736,712 40 . 9S«i, .\50 r>oi 92.'., s;9 34 222,5eriuteudeui railway ! mail service'. 17 ' "W. G. l.ovell. »ni)erintendout railway mail service. 27 W. 1'.. Thompson, general 8uperiii- tenilent railway mail service. 27 ' "W. ]i. Thomiison, general superiu- I temjeut railway mail servic*?. 28 C. J. Kri-iicli, suiJerinteudeut railway mail service. 28 James E. White, superintendent rail- ' way mail servic*. T. P.Cheuoy. sui)erintondeDt railway mail service. T. P. Cheney, superintendent railway mail service. The Xatioiial Capital TelephoneCom- ])an.v . Jame.s E. Wliite. saperinteudent rail- way mail servic*. B. I). Adsit, principal clerk aalary and allowaiico division, Poat-Oflice Departiiicnt. If 82. Feb. 13 0. n. Irish, Chief Bureau Engrav- ing and Printing. 18 B. 1>. Adsit. principal clerk aalai^ and alliiwaiico division, Post-Uflico Depart :nent. Mar.27 r>. D. Adsit, principal clerk salary and allowaucu division, Post-Olbce Dejiartmi'iit. Apr.28 E. D. .\dsit, princip.il deik aalary aud :illowaiic« diNision, Post-Ultico Department. May 10 r., D. Adsit, principal clerk salary and alhiwauco divi.sion, Po«t-t)flice , Depart uient, June 5 B. D. Adsit, principal clerk salary ' and allowHuco dlvhiion, Pust-Udlce DepartiiH-nt. 26 B. I). Ailsit. principal clerk salary I and all(i»anc« iliviaion, Puat-UiUub I Department. 914 10 For railroad fare« and hotel billa during July, 1S81. For telegrams and miacellaneoua oxpenaea during July, ixSl. For telegram's :uid miscellaneous expenaea during July, IKHI. For telegrams and hotel expcnRea during July, 18»il. For telegrani.s, railroad fares, and hotel bills during .Tul-, l.v^l. For ti'legrams. hotel bills, and other ex- pt-nses during August. 1H81. For telegrams and iniHcellaneous expeuaes during August, IS.'il. For telegrams and miscellaneous oxp<-nse.s during August, 18>il, For i-aili-oad and »teanilx»at fares and hotel bill.s during August, 1S81. For t<-legi-ams, hotel bills, and other ex- penses during .\ugURt. 181*1. For railroad and hotel farea iloring July, 1881. For railroad ami hotel fares during Augnst, { 1881. I For i-ailroad fares, telegrams, and hotel biUa I during August, 18tS2. For railroad and hotel fares and telegrams during May, 1882. For railmad and hotel fares and mlscellone- ous expenses during May. 1882. For hotel fares and railroad expenses dar- ing June, 18«:2. Total paid by warrant , 1,329 74 21 55 32 93 154 99 79 C8 57 00 Gl 01 73 92 90 (C, 97 85 20 85 17 00 109 71 88 35 28 82 54 38 81 25 12 61 4C 70 125 00 8 25 15 25 16 .'-0 17 10 18 tK) 25 AM(>UNTS PAID BY DRAFT. Aug. 10 M. V. Bailev, superintendent railway I mail sen'ice. Willard (j. Lovell, supe^rintendent railway mail service. For hoti'I fnrr* printing •cbednlea. and tel eii , luly, 1881. Foi ' > I Iro'ad fares, and hotel bills du. --l. •67 Total paid by draft 167 17 970 PAPERS ACCOMPANTINO THE No. 0. — Statement in detail of miscellaneous paymetils, ^c — Continuod. AMOUNTS CREDITED POSTMASTERS ON THEIR GENERAL ACCOUNTS. Date. 1882. Mar.23 Oct. 21 Nov.12 19 Dec. 16 Jan. 17 Feb. 2 10 Mar. 20 20 28 June C 12 27 Aug. 1 16 Sept.21 22 30 To whom allowed. Tlionia.s L. James, postii 'aster at New York. Sauiuol Hays, postmaster at Saint I^oiiia, Mo. E. It. AA'^ise, postmaster at Warren, Ohio. C. E. Carr, postmaster at G alesburgh, 111. J. H. Manley, postmaster at Augusta, Me. W. N. Byers, postmaster at Denver, Colo. John P. Chira, postmaster at Tomb- stono, Ariz. Samuel Hays, postmaster at Saint Louis, Mo. S. M. Yost, postmaster at Staunton, Va. S. M. Yost, postmaster at Staunton, Va. "W. N. Byers, postmaster at Denver, Colo. S. M. Yost, postmaster at Staunton, Va. James T. Pritchard. postmaster at Eredericksburgh, Va. E. R. Wise, postmaster at Warren, Ohio. H. G. Pearson, postmaster at New York, N. Y. Thomas F. Hall, postmaster at Oma- ha, Nebr. F. Lowry, postmaster at Dayton, Ohio. Lew is McKenzie, postmaster at Alex- andria, Va. J. K. Dawes, postmaster at Easton, Pa. For what object. Amount. For amount paid for tracks in iirst quarter, 1.S80. For rent of telephone in third quarter, 1881. For amount of freight on safe, second quar- ter, 1881. For rent of telephone and carpenters' work, second quarter, 1871. For miscellaneous expenses, third quarter, 1881. For rent of telephone, third quarter, 1881 . . . For amount allowed for hauling, second quarter, 1881. For rent of telephone for fourth quarter, 1881. For water-rent, oil, and moving post-offlce fixtures, fourth quarter, 1879. For gas-fittings, water-rent, &c., third and fourth quarters, 1880, and second quarter, 1881. For rent of telephone during fourth quarter, 1881. For work and materials in moving poat- office, second quarter, 1880. For repairs to safe dirring first quarter, 1882. For horse and buggy hire in first quarter, 1882. For amount of attorney's fees in suit against postmaster at New York. For printing letter slips and heads, second quarter, l882. For amount for repairing closet, first quar- ter, 1881. For amount paid for ice, second quarter, 1881. For amount expended in cleaning office, second quarter, 1882. Total. $150 00 20 00 23 50 35 93 138 20 13 50 40 00 22 50 14 40 14 51 13 50 71 00 5 00 2 00 23 74 21 50 3 14 10 00 21 12 643 56 RECAPITULATION. Amount allowed to the postmasters at the principal post-offices, credited in quarterly accounts cur- rent, for incidental expenses, such as of&ce repairs, gas-fixtures, telegrams, &c. : Third quarter, 1881 $15,312 14 Fourth quarter, 1881 15,727 85 First quarter, 1882 14,711 73 Second quarter, 1882 21,006 54 Total 66,758 26 Amount paid by warrant $1,329 74 Amount paid by draft 107 17 Amount allowed postmasters and others, credited on general accounts 643 56 2, 140 47 Total 68,898 73 Deduct amount of counter-entries 4 00 Amouutaetuallypaidand charged to "Miscellaneous, First Assistant Postmaster-General". 68,894 73 REPORT OF THE POSTMASTER-GENERAL. 971 No. 7. — Slalevient in defml of miscellaneous paijments ntade by the Foat-Office JJepartntent for the fiscal year ended June 30, 1882, and charged to '^Minccllaneoua Account, Second Assistant I'ostmastcr-Uencral." AMOUNTS PAID BY WARRANT. Date. To whom allowed. For what ohject. Amonnt. 1881. Aiig.lG Oct. 10 Dec. 3 Isaac C. Sla1cnso.^ incurred iitidcr onlcr of tlio Poslina-stcrfii-iicral of .Inly I'J, lh«l. For railruatl furc:i and hotel hilU during; Oc- toher, 1881. For subscription to New York Tribune from July 1 to December 31, 1681. Fur railroad faros and hotel bills during Jan- \uuy, 1H«2. Forninkinj: brass scaI for marking propo- sals, December. ISSl. For Heven (7) days' services on treading jiriiitinK-prc-ss. .)auuar>', 1882. For seven (7) days «ervices on treadiu-; priiitin;;-press, .January, 1882. For ])resM work iu stamping bids for 1882, durint; January, 18^2. For subscription" to Now York Tribune and New York Times from December 22, 1881, to July 1, 1882. For railroad fares and hotel bills incurred during April, 1882. For subscription to the New York Times from January 1 to June 30. 1882. For expenses incurred in the examination of the postal sen-ice in Horlda during No- vember and December, 1881. $00 00 4 U5 12 DO 1882. Jan. 10 17 90 13 20 0. 11. Irish, Chief of Bureau of Eo- jrr.iving and Priutinji. Thomas Sisclo 10 00 14 00 20 James I. Milea 14 00 24 Byron S.Adams.... . .............. 25 60 May 8 Jun22 July! 6 J. Bradley Adams 15 90 Walter Sparcler, clerk iu tlio iu- spectiou division of the Second Ah- flidtnnt Postmaster-General's Office 33 00 7 00 E. A. Elmer, Second Assistant Post- master-General. 63 26 277 71 AMOUNT CREDITED ON GENERAL ACCOUNT. 1882. Jan 30 Walter Spaugler, clerk in the inspec- tion division of the Post-OUice De- partmeut. For amount allowed for personal expenses while on buitiness for tue Post-OlUce Do- partiueut, Juue, 1882. Total Total Miscell.nneous. Second Assistant I'ustniaittor-General. $200 00 200 00 477 7l 5372 PAPERS ACCOMPANYING THE No, 8. — Stalemenl in detail of m'lHcMancoun paymenU made by the Post-OJJice Depart- ment far (he Jitirjil year ended June 30, IHe^, and charijed to ^' Alincellaneoua Account, Third Assibtant I'ostmasler-Gcneral." AMOUNTS PAH) BY WARRANT. Date. :881. Dec. 3 1882. Jan. 5 Feb. 9 Mar. 8 To whom allowed. John C. Parker. 9 9 9 9 JnlylO 10 A. D. Hazcii, Tliird Assistant Post- mastei--GenevaL E. J. Dallas, chief of deatl-letter division. D.and J. Sadller & Co George P. Rowell & Co T. Cotcsworth Pinckuey Henry A. Hazen Rand, McNaUy &. Co S. E. Cassiuo The Presbyterian Board of Publica- tion. B. Griffith, seerot.ary of the Ameri- can Baptist Publication Society. Henry Fleetwood John C. Parker '. For what object. Amount. For subscription to New York Times from $7 50 July 1 to December 31, 1881. For personal expenses while on official busi- ness, SepteiubtT, 1881. For travebng expenses under order of Third Assistant Postmaster-General, January, 1882. For cloth Directory (Catholic), February, 1882, for use of dead-letter office. For cojiy of American Newspaper Directory, January, 1882, for use of dead-letter office. For United States school and college dircc- toiies, Jann.arv, 1882 — dead-letter office. For copy of iliiiistry and Churclies of New Hamp.shiro, for use of dead-letter office. For two atlases for use of dead-letter office. For copy of S<;ientists' Directoiy, January, 18t'2, for use of dead-letter otbce. For two copies of Minutes for use of dead- letter office. For two copies Baptist Year Book, Febru- ary, 1882 — dead-letter office. For copy of K.iud & McN.illy's indexed at- las, .J lily, 1882, for use of (lead-letter office. For subscription to New York Tribune from January 1 to June 30, 1682. Total paid by warrant I 292 22 138 00 G6 50 1 50 5 00 5 00 1 50 27 00 2 60 2 22 1 00 27 00 7 50 REPORT OF THE POSTMASTER-GENERAL. 973 No. 9. — Table sliotcing the receipis, expenditures, and vet revcntie of the post-offices at uhlch ihcfrce-ddircnj sijutcm is in operation, for the fiscal year ended June 30, lf'c2. Offices. Grosa rev- enue. OflSce ei- pensea. Free delir- ery. Per cent. Total ex- . u-etrf-Tenne i »^P«nse penses. | «" revenue, ^j^g^f^ revenue. Akron, Ohio Albany. N.Y AJlejrlienv, Pa Atlanta, Ga Auburn, N. Y Aii;justa, Ga An^ista, Me iJaltiuioro. Md )5an{:or, JIo Blooiiiiniiton, 111 Boston, Mass Bridpt-port, Conn . .. Brooklyn. N.Y Bdflalo. X. Y Biiilin^ton, Iowa... Burlington, Vt Cameavenworth, Kana. Little Rock, Ark..., Louisville, Ky Lowell. Mn.ss Lvnu, Mass M.'icon, tia Manchester. N. H... Mansfield, Ohio .Memphis, Tenn ^lorideii, Conn ^lilwaiikcM', Wis Minneapolis, .Minn.. Mol.lhv Ala Xiwihvill". Ti-iin X^owark. X. .1 X'^ew Bcslford, )Iass. Xew Uaven, ("onn .. Xow ( )rleuns. I.,a. . . . New York. N. Y.... Norfolk. V» (•akland. Cal Ouuihn, Nebr t»8we(to,N. Y I'atorson, N.J Peoria, HI. $:W, 892 82 160,573 31 34, 82« 12 92, 4I)U 10 34. 304 95 3 J, 393 49 8«, 371 74 49<}, 491 24 29, 070 22 33, 9,'j8 on 1,405, 120 17 13, 325 13 27.481 23 10.540 20 38, !:29 52 8, 345 75 6, 403 83 7, 110 12 11,413 48 9, 048 26 10,657 05 8, 137 18 10, 033 54 15. 628 45 10,389 73 1.5, 427 82 22, 620 25 3. 9.52 05 13. 0.58 78 3ti, 807 75 0. 665 90 10, 942 04 24. b74 05 8, 8.'!0 43 7, 186 00 8, 028 41 18, 332 70 8, 292 60 10. 909 02 3;!. 8»6 45 9.973 84 7, 445 .50 8, 049 33 7. 1.58 (il II, 008 05 20, H«8 3.3 0.018 91 :i,'!,073 68 24,234 Ki 14,444 .59 17,887 14 14. 944 46 6,120 .'V) I 19,389 irj ] 57.919 47 874.871 21 1 9, 8.18 21 11.945 95 17,954 12 0,488 9t j 0.434 33 ; 11,110 23 I $3, 359 95 27,041 5,5 9, 345 03 0, 9.37 47 4. 774 44 4, 453 78 2. 639 87 76,861 11 3, 400 00 5, 144 59 185, 267 51 5,639 11 104, -285 76 35, 247 03 5,690 96 2, 048 37 .5, 921 80 7,160 64 187,486 00 75, .5«0 28 30, 561 21 12, 274 82 2,704 81 4, 652 21 4, 264 08 6, 829 12 10, 852 16 9, 231 85 7, 061 94 Xi, 1.54 17 0, 450 00 5, 744 61 5, 336 78 5, 855 43 e, 787 83 6,643 92 5, 542 42 6, 345 37 6, 126 03 8, 126 11 5, 400 00 9, 713 48 3, 482 68 4,741 70 27, 857 28 3,977 26 21,478 80 16,506 56 4, 251 30 4,9.30 4G 7,927 11 4, 285 05 3,693 20 4. 2.59 95 31, 007 98 9, 12S 59 8,120 87 3, 372 80 :>, 007 55 2,508 90 11,068 00 3, 400 00 30, 148 04 12. 321 69 5.114 19 9, (110 08 2.5, 284 01 7.115 91 16, 492 10 44, 8.34 64 457,790 41 5. 509 00 7, G42 41 8, 937 49 .M16 17 7.146 51 7, 170 38 $10, .544 00 $20, 348 82 64, 83:1 04 0.5, 740 27 17,155 99 17, 672 13 21,747 40 70, 748 70 13,318 21 20, 986 74 14.406 41 20, 987 08 21, 746 36 W, 625 38 162, 2.57 40 334, 2;« 84 11,867 80 17,202 42 13,874 76 20, 083 33 442,061 19 963, 065 80 16, 896 72 35, 363 90 165, 239 66 125.498 19 65. 852 22 202. 975 72 14, 837 25 30, 643 50 8,504 45 i 15. 927 47 12. 228 62 11,005 69 19, 5f-2 56 ! 53, 807 95 r.32, 159 06 ! 1, 206, 048 17 ISO, 027 87 415, 555 51 77, 218 50 212, 5J6 10 31, 058 77 77, 598 54 10, 053 46 17, 929 64 10, 184 77 9,317 47 14,3>4 78 21, 890 68 16, 149 29 22, 254 47 24, 177 29 45, 236 03 36, 713 08 106, 365 62 17, 602 14 60, 000 38 71, 383 09 222,923 78 1.3, 795 75 28, 435 94 12, 148 44 9, 934 82 12. 446 90 19, 636 36 17, 268 91 26, 383 07 15, 836 09 22, 984 28 17, 300 97 20, 616 06 13. 679 60 10,471 35 10, 378 91 19,713 11 21, 7.54 48 54. 403 43 18, 515 84 5ii, 044 76 20, 827 82 27, 245 08 32, 333 73 97, 134 67 7, 434 73 6, 859 42 17, 800 48 24, 985 82 65, 725 03 101, 336 07 10, 643 16 15, 749 86 32, 421 44 34, 377 04 41.380 00 126, 222 61 13,081 73 15,361 71 12,116 40 20,231 33 1.5,955 .5-.' 14, W8 87 22, 617 75 22, 105 86 11,985 80 1.5.876 04 l.'i, 168 97 17. 254 35 04,854 43 155, 748 07 19, 102 43 47, «49 20 1.5, 506 37 26, 767 81 12,022 13 14, 142 34 12,226 16 20, 094 40 8,517 01 17, 435 10 31, 9.36 33 4.'., 129 38 9,418 91 19. 199 52 6.3,221 72 ltW.627 75 36, 5:.6 .52 ••59,951 00 19, .558 78 28, 189 69 27, 497 82 M, 7.55 89 40, 229 07 88, 131 37 13,238 41 21.412 69 :C., 882 02 79, 767 93 102,7.54 11 103, .5.10 68 1, 832, 667 02 2, 867, 398 45 15.347 21 31.083 54 19.588 30 14.333 14 2<;. 891 61 59. 266 67 11.005 11 1 15, 209 14 13, 580 84 ' 18. 932 05 18, 289 CI i 48,948 07 974 PAPERS ACCOMPANYING THE No. 9. — Tailo showing the receipts, expenditures, and net revenue, ^c— Continued. Otflce. Pliilii'lclpliia, Pa.... Pittsl)ur(;li, V* Portlniul, Me Poithuiil, Ou^g I'otlRville, Pa Providcuce, K.I QiiiiK^v. Ill Ueadiiijr. Pa Kiclunoiid, Iiid Ilirliniond, Va Uocliester, N. Y Sacrampato, CaL Saint Joseph, Mo — Saint Lonia, Mo Saint Paul, Minn Salem, Mass San Fiauciaco, Cal.. Savannah. Ga SprinKfield, 111 Springfield, Masa... Spriugtield. Ohio Syrai-iise, N. Y Terre Haute, Ind . . . Toledo, Ohio Topeka, Kans Trenton, 'H.J Troy, N. T TJtica, N. Y Washington. D. C... Wheeling, AY. Va... Wilmington, Del Worcester, Masa ZauesviUe, Ohio. . . . Total Grose rev- enue. $1!), 1.4 326, 98 .54! 15, :i9, 182, 41 44 2(i 112 109, 43 68: 760, 149 25 509, 64, 34 75 52 110, 35 117: 50, 51 88, C3 257 42, 47 92 23, , 489 03 ,494 95 , 682 25 ,277 14 , R70 97 ., 358 70 I, 010 63 , 809 81 ,439 87 800 59 , 979 29 , 094 68 , 764 25 ,964 37 , 910 95 ,, 592 21 , 830 84 , 456 78 , 767 79 ,004 49 , 158 80 ,, 117 22 , 839 66 ,463 33 , 180 43 , 702 12 , 121 34 , 250 61 , 358 68 , 768 58 , 049 67 , 897 .54 , 353 26 , 187 69 , 841 88 Office ex- X)enseB. $6, 096 21 237, 476 59 52, 388 21 22, 098 42 10,701 80 5, 119 55 10, 053 23 25, 201 38 10, 379 94 8, 746 03 0, 717 64 21,293 10 26, 017 63 16,084 53 12, 484 35 145,212 51 19, 357 29 6,465 18 98, 143 95 16, 032 41 8, 547 49 12, 197 79 10, 236 75 20, 152 63 10,946 99 20, 237 79 10, 988 68 8,808 27 19,447 24 11,124 99 134, 147 57 11, 535 03 9, 087 58 14, 225 02 6,605 13 19,414,772 80 3,815,736 41 Free deliv- ery. $4 293 33 8 4 3 5, 26, 6, 8, 3 14 24 4 7, 119, 13 61 5 5 6, 5, 15, 6 12 4, 5 13 10, 48, 6, 8, 10, si , 671 72 , 698 77 ,967 25 , 500 80 , 508 75 , 400 00 , 971 95 i, 412 43 ', 732 87 , 491 39 ,530 94 , 460 08 , 385 51 , 770 96 ,610 27 , 647 59 , 953 25 , 239 13 , 650 81 , 900 00 , 230 05 ,802 10 , 192 75 , 203 58 , 356 15 , 055 85 , 499 88 , 528 21 , 973 81 , 286 26 ;, 477 99 i, 663 43 , 562 53 I, 948 96 , 469 62 2,617,574 56 Total ex- penses. $10,767 93 531, 175 36 86, 355 46 30, 599 22 1.5,210 .55 8, 519 55 16, 025 18 51, 613 81 17, 112 81 17, 237 42 10, 248 58 3.5,753 18 .50,403 14 20, 855 49 20, 094 62 264, 860 10 33,310 54 11, 704 31 1.59, 794 76 21, 932 41 13, 777 54 18, 909 89 1,5,429 50 35,416 21 17, 303 14 33, 193 64 15, 488 5G 14, 336 48 33, 421 05 21,411 25 182, 625 56 18, 198 46 17, 650 11 25, 173 98 10, 074 75 Net revenue. $8,721 10 046, 319 .59 240, 226 70 67, 677 92 39, 460 42 6,830 15 22, 985 45 131, 196 00 24, 327 86 27, 563 17 16, 730 71 76, 341 50 140, 361 11 23, 108 88 48, 822 33 501, 732 11 116, 520 30 13, 752 47 340, 973 03 42, 072 08 20, 381 26 56, 117 33 37, 410 16 75, 047 12 17,877 29 84, 508 48 34, 632 78 36, 914 13 54, 937 63 42, 357 33 74, 424 11 24, 699 08 29, 703 15 67, 013 71 13, 767 13 6,433,310 97 12,981,461 83 Per cent, expense on gross revenue. 54 36 26 31 28 55 39 28 41 38 38 32 25 47 29 35 22 41 31 34 40 25 29 32 49 28 31 28 38 34 71 42 37 27 42 REPORT OF THE POSTMASTER-GENERAL. 975 No. 10. — Comparative statement of receipts and expend it urea of the Post-Office Department from July I, 1836, to June 30, lt. 184H. 1847. 1848. 1H49. 18.'.0. 1851. 1852. 18.53. 18.54. 18.55. 1856. 1857. 18.58. 18.59. 1860. 1861. 1862. ]K63. 1864. 1865. 1806. 1867. 1868. 1809. 1870. 1871. 1872. 1873. 1874. 1875. 1876. 1877. 1878. 1870. 1880. 1881. 1882. $4, 94.5, 4, 238, 4,484, 4, 54:1, 4, 407, 4, .546, 4,206, 4, 237, 4, 289, :t, 487, 3, 880, 4, .5,55, 4, 705, 5,499, 6,410, 5,184. 5, 240, 6, 255, 6, 042, C, 920, 7, 353, 7,486, 7,068, 8, 518, 8, 349, 8, 29!t, 11,163, 12, 438, 14, 556, 14, 436, 15,297, 16, 292, 18, 344, 19, 772, 20, 037, 21,915, 22, !t96, 26, 471, 26,701. 28, 034, 27.531. 20, 277. 30.041, 33,31.5, 36. 785. 41,876, 668 21 733 46 650 70 521 92 720 27 849 65 225 43 287 83 841 80 l;t9 35 309 23 211 10 176 28 9ftJ 80 004 ;« 526 84 724 70 586 22 l.^O 13 821 GO 951 70 792 80 484 07 007 40 290 40 820 no 789 .59 253 78 158 70 986 21 026 87 600 80 610 72 220 65 045 42 428 37 741 .57 071 82 360 50 107 .50 585 26 516 95 082 86 479 34 397 97 410 15 $482,657 00 7.50. 000 00 12, 500 00 125, 000 00 1,741,444 44 2, 225, 000 00 2, 736, 748 !«5 3, 114,542 20 3,748,881 50 4, 528, 004 67 4, 670, 270 71 3, 915, 940 49 11,1.54,167 54 4, 639, hLtO .53 2, 50H, 953 71 1, 007, 848 72 749, 980 00 3, 968 40 8,991, 5,690, 5, 707, 4, 022, 4, 126, 4, 933, 5, 690, 5. 922. 6.704, 6,088. 7, 013, 5, 307, 3, 297, 3, 597, 3, 207, 0> 606 67 525 00 115 30 140 85 200 00 7.50 00 475 00 433 55 646 06 5|B 03 8«t 00 652 82 965 25 717 20 021 46 595 12 $4, 945, 4, 238, 4, 4K4, 4, .54.3, 4.890, 4, .546, 4, 290, 4, 237, 4,289, 4, 237, 3, 802, 4,680, 4, 705. 5,499, 0,410, 6, 925, 7, 49.5, 8, 9!J2, 9, 7.56, 10, 669, 11,881. 12,166. 11,884, 19,072, 12,989, 10, 898, 12.171, 13, 188, 14. 500. 14, 436, 19, 288, 21,989, 24,051, 23, 794, 24, 163, 26, 909, 28, 987, 32, 393. 33, 496, 33. 722, 84, .544. 34, .58.'-), 33, 339, 36,913. 40, 08r{, 41,883, 668 21 733 46 6.56 70 521 92 383 27 849 65 225 43 287 83 841 8U 199 35 809 23 211 lit 176 28 984 86 604 33 971 28 724 70 3.35 18 678 39 703 22 956 43 063 57 430 .56 234 94 102 93 774 61 638 31 233 73 127 16 986 21 093 .54 125 80 6?6 02 361 .50 245 43 176 37 216 57 505 37 007 55 780 53 8R5 26 169 77 948 11 196 .54 319 43 005 27 $3. 288, 4, 430. 4,636, 4,718, 4.499, .5, 674, 4, 374, 4,296, 4, 320, 4, 070, 3.970, 4, 326, 4, 479, 6, 212, 6, 278, 7, 108, 7, 982, 8, 577, 9, 9(^'i8, 10, 405, ll,rKj8, 12, 722. 11,4.58, 19. 170, 13, r>tKi. 11,12.-., 11,314. 12, 041, ]:: i.'i4 319 03 662 21 ,'>36 31 235 64 527 61 751 80 753 71 512 70 731 00 036 01 642 10 850 27 049 13 953 43 401 68 459 04 7r.6 .59 424 12 342 29 286 36 057 93 470 01 0^3 63 6c 19 80 759 11 304 13 200 84 788 20 23, 6Un, 131 50 2.t. 998, 837 63 24. :;m, 104 08 26, >V,it, 192 31 29. 084. 945 67 3H, ;'t>2, i>6u L'2 40.482,021 23 976 PAPERS ACCOMPANYING THK No. 11. — Statement of the money-order traiinactious at post-offices Stat«s RiidTenitorios, Domestic. Ci to •c 6 Alabama Arizoua Arkansas -. California Colorado Connecticut Dakota Delaware District of Columbia. Florida Georgia Idaho Illinois Indiana Indian Territory Iowa Eansaa Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi ♦ Missouri Montana Nebraska Nevada New Hampshire — New Jersey New Mexico New York North Carolina Ohio Oregon Pennsylvania Rhode Island South Carolina Tennessee Texas Utah Vermont Virginia Washington ■West Virginia "Wisconsin "Wyoming 140, 525 20, 938 127, 638 274, 333 150, 084 96, 716 r.l, 543 14, 169 32, 432 62, 847 163, 688 21, 608 728, 589 376, 586 3,976 542, 963 353,658 130, 912 109, 255 89,118 66, 582 223, 997 415, 342 208, 794 174, 183 346, 133 28, 796 171, 283 45, 561 56,667 85,101 16.067 568,397 127, 149 568, 015 84,554 441, 196 32, 417 97 404 165, 327 383, 269 21, 101 55, 337 106, 391 36, 894 46, 324 337, 759 19, 301 I 18, 51 21 60 2, 14 28, 136, i2, 6. 18, 8, 7, 53, 281 47 021 06 161 45 762 10 287 46 933 02 604 63 2S6 75 086 51 099 33 793 17 349 36 923 59 093 35 320 30 905 40 046 90 472 88 558 19 147 43 567 43 749 64 445 31 384 57 706 05 180 31 024 13 636 64 204 82 135 17 756 17 994 46 071 92 647 94 084 40 242 11 595 73 872 26 482 70 577 86 536 44 334 33 583 95 276 08 830 33 163 06 217 05 4. 073 38 $1, 936, 520 2, 266, 4, 208, 2,640 1,180 779, 149, 504 1, 060 2, 301 468, 8, 809, 4,231 72, 5, 934, 4, 531 1,688 2,181 1, 300, 951 3, 069, 5, 255, 2,650, 2,45' 4, 424, 515, 2, 167, 912 670, 1, 159 268, 7,488, 1, 878, 6,401 1, 679, 5, 212, 443 1,398, 2, 530, 6,646, 378, 61 1, 380 724, 570, 4, 456, 327, 118 04 435 95 352 71 786 78 372 23 974 13 772 94 784 20 212 83 204 11 900 66 666 73 674 51 257 03 474 88 259 16 258 68 868 96 041 29 046 68 336 74 107 97 960 10 211 88 775 92 345 47 649 00 922 73 802 99 504 49 181 56 375 42 215 35 884 18 052 55 959 49 354 08 574 52 091 81 198 63 388 87 773 33 598 81 624 41 336 89 200 94 430 26 797 31 Total 8,420,869 1,427,108 59 113,400,118 21 $17,591 45 3, 377 80 17, 833 85 36, 229 65 20, 585 90 11,006 90 0, 689 85 1, 645 50 4, 185 95 8, 524 85 20, 629 00 3, 221 60 88, 054 70 44,410 35 567 85 6.S, 764 60 43, 540 25 16, 139 65 15, 963 80 11, 323 30 8, 839 70 27, 778 60 50, 615 30 25, .539 00 22, 200 15 42, 517 00 4, 010 55 21, 108 30 6, 657 95 6, 685 10 10, 596 90 2, 151 25 70, 299 70 16,497 35 67, 942 95 12,497 ,50 52, 947 35 4, 028 30 12, 401 40 21, 653 80 53, 118 60 2,933 50 6, 500 95 13, 120 45 5,420 20 5, 709 90 40, 839 75 2, 612 25 $51 05 $1,047,812 97 52 59 144 240 54 1. 4.52, 3, 293, 1,592, 394, 126, 7. 1,317; 185, 1, 947, 88, 9,542, 1, 755, 284 34 210 27 107 00 781 00 738 00 290 00 835 95 515 00 724 00 099 00 838 93 043 60 3 89 18 26 33 249 41 45 83 120 00 1 54 04 1, 0.53, 710 55 1 828 07 2, 479, 1,033, 1,603, 3, .')89, 764, 1, 318. 2,146, 2, 708, 1,859, 69, 8,148, 212, 1,507, 113, 358, 189, 27,800, 263, 4,442, 1,443, 4, 335, 114, 832, 1, 807, 3, 999, 565, 135, 1,754, 23, 80, 2, 708. 173 94 651 43 894 00 274 16 992 00 951 20 155 30 525 00 791 58 340 00 181 80 226 00 742 00 763 00 596 00 309 00 861 41 767 74 193 00 814 32 626 00 315 39 270 00 337 00 136 28 302 70 619 00 363 00 821 00 232 00 I 750 00 683 33 ! 101, 1C3, 030 64 REPORT OF THE POSTMASTER-GENERAL. 977 in tilt United States, for the fiscal year ended June 30, 1882. Domestic, i Inteinational. CunaUa. Great Britain and Ireland. German Empire. $4, CM 45 .•530 00 4,270 17 ;J5, 867 58 5, 955 46 17. 833 58 4, 997 27 2.437 94 0,501 78 5, 457 00 527 00 87, 303 85 29, 331 45 00 72 44 1,715 1,642 805 403 18 179 134 275 76 3,905 329 12,188 77 2,869 00 .'555 20 45,400 41 47.879 99 \ 16,825 59 i 9,940 64 I 350 30 I 3,172 39 ; 3,725 62 7,346 07 2,802 85 70,444 28 : 5,314 32 \ 36, 385 96 26, 686 54 16,362 39 1,385 14 17, 313 26 7, 732 07 54. 486 30 33, 476 41 15. 663 28 6, 289 79 47,023 90 149 25 38.487 12 375 31 !). 777 73 31, 150 00 90 00 96,929 96 .1. 164 60 97, 097 91 2,435 00 50, 943 02 1, .'■.16 50 415 66 13,717 02 23, 2»1 45 277 00 13, 720 DO 1.5, 774 84 5411 42 5, 707 67 23, 272 89 405 7,207 16 159 3,044 43 152 2,438 63 229 6,634 10 1,695 35,439 02 194 4.443 67 9,893 200.449 84 6,965 143.1.^4 :;3 2, 003 52,679 08 18 330 .50 6:!2 13,647 30 390 11.342 81 198 3,946 43 407 12,926 30 465 8,603 32 701 14.456 46 19 Ml 10 6,362 116.147 :*i 32 874 02 1,056 28.996 98 351 9, .355 81 2,017 33.366 29 810 13,205 81 43 1.006 68 134 2.534 20 200 5.033 87 98 2.717 19 290 3,384 99 230 4.327 39 243 7,606 3tJ 17 .115 07 1.468 38.344 25 67 1,709 31 905,707 61 45", 229 1,018,04102 17,244 55 182.293 2,740,362 09 78,626 30 116, 370 ^2,057,705 42 36,785 70 62 Ab 978 TAPERS ACCOMPANYING THE No. II.— Statement of money-order transactions at poal-oSp-ces in the International— Continued. Switzerland. Italy. Franco. States and Terri- tories. 0) ti a a "A u -si o < 1^ 2 o 'A 2 o o 2 "Si o a o 1 o 2 Si a 2 o !!§ 2.2 o a i 14 5 606 97 60 $414 50 95 00 83 00 15,731 41 2, 850 26 1, 080 95 $9 60 1 50 1 90 358 35 58 15 21 45 33 14 21 617 383 605 4 7 84 54 57 1 3, 231 70 $943 00 015 00 488 26 14, 973 31 14, 289 68 12, 770 24 200 00 83 00 1, 392 27 1, 592 89 1, 773 15 20 00 94, 935 77 2,201 94 $15 15 9 30 7 95 244 25 220 95 212 35 3 00 2 20 23 85 25 50 28 05 30 1, 490 85 35 40 44 33 2 477 55 59 2 10 138 35 39 9 321 50 $1, 044 64 514 87 98 76 6, 786 12 1,711 29 882 26 10 60 368 13 2, 736 78 880 41 723 95 155 00 5, 560 98 586 98 $17 25 9 00 1 50 123 85 26 85 16 95 30 5 85 48 60 14 10 12 75 2 40 100 75 11 55 Connecticut .*••... 14 46 7 47 5 1,889 96 268 50 794 28 233 76 1, 100 80 218 76 36, 089 40 1, 671 73 7 05 16 60 4 15 23 10 3 45 831 60 35 65 Districtof Columbia Georgia.. .••••••... 135 28 95 99 3 41 239 98 63 3, 247 95 484 38 2, 363 44 2, 529 38 51 88 709 48 4, 489 01 1, 385 25 1,403 93 72 05 10 60 47 45 59 05 1 00 17 60 103 10 30 70 31 00 22 12 86 1,328 28 205 1,212 116 56 70 737 41 19 77 2 350 44 2,301 13 472 33 838 105 34 150 340 5 14 134 458 48 186 75 2, 178 29 32, 816 22 483 51 5, 195 43 27, 938 71 3, 260 81 1, 536 38 2, 820 33 21, GOl 36 1, 538 18 529 26 2, 577 23 20 00 7, 956 24 1, 515 04 53, 962 60 550 00 12, 235 95 1, 046 92 59, 439 36 1, 551 30 766 78 3, 002 87 10, 597 25 86 00 175 91 3, 312 29 7 65 4 30 35 70 535 05 8 40 89 05 403 00 52 95 24 90 43 20 345 60 24 15 8 65 40 65 30 130 65 24 65 877 50 8 40 199 40 16 50 960 00 28 05 13 05 49 80 168 50 1 50 3 00 54 40 39 19 83 394 9 91 449 101 58 9 120 9 4 22 2 210 2 2,234 3 152 26 304 91 21 16 141 11 16 43 7 12 38 5 361 81 280 08 1, 438 59 5, 560 14 78 85 1, 184 57 7, 035 81 1, 593 44 1, 147 78 169 45 2, 118 73 345 00 60 00 683 00 41 49 3, 931 94 6 40 35, 467 32 7 21 2, 616 07 877 68 4, 828 89 1, 032 09 391 88 266 64 2, 593 59 261 32 310 03 963 12 91 00 169 47 793 94 70 00 8 10 5 80 26 10 103 20 1 80 23 85 131 90 30 00 19 95 2 85 39 60 5 40 1 20 10 65 1 20 67 75 30 653 60 45 47 95 14 70 88 75 33 85 7 20 4 65 45 55 1 35 6 15 16 95 1 95 3 15 13 80 1 05 Maine »••... Maryland •^... Maasachusetts 671 5 9 18 206 13,775 63 92 00 96 00 249 94 176 00 4, 287 74 301 60 1 65 2 45 5 45 3 35 83 75 Kew Hampshire - - . Kew Jersey 2,826 1 795 65 859 30 4 178 202 27 58, 449 93 12 00 14, 776 83 1, 553 73 19, 027 83 354 01 159 20 2, 973 19 4,836 68 438 55 i, 306 20 50 335 60 36 40 413 85 8 20 5 40 66 45 94 15 9 70 North Carolina Ohio Pennsylvania Rhode Island South Carolina Texas Utah 13 3 15 457 237 88 100 74 408 00 6, 517 07 5 75 1 65 8 35 157 95 Weiit Virgiuia 3 82 3 105 00 2,443 64 55 00 1 65 39 00 90 Total 10, 080 205, 820 06 4, 591 50 14, 233 408, 221 60 6, 579 60 6,015 09,738 10 1 1, 815 45 REPORT OF THE POSTMASTER-GENERAL. United States for the fiscal year ended June 30, 1882 — Continued. 979 Iiifcrnational — Continued. Jamaica. New Zealand. New South "Wales. Victoria. 2 «0 S k o a < 2 1. 'z * 5 5 a ■5 i 2 5 3 S » ■H 5 B < 09 it 2 1 E a 'A a t 5 a •5 g s c c a •3 « a a 'a P 1 $2 93 to 15 1 $16 (2 05 ;8 56 f4 219 43 19 i7 137 t2 10 >3 4 :« 1 1 1 ■ u $153 77 ?2 70 22 1 $491 5t 1 CO $8 25 15 "8 051 24 361 10 10 6.5 5 25 1 $721 87 15 00 78 33 111 55 30 1 20 o 73 05 1 20 43 29 •■> 38 96 60 71 33 4 3 200 00 120 00 3 00 1 80 1 23 13 45 6 2 161 50 38 06 2 ."JS 75 714 04 456 26 405 29 430 63 310 24 13 54 71 30 1 11 99 80 1 5 00 15 i 45 U 75 1 3 1 22 100 00 15 1 05 3 I 145 71 10 00 2 25 15 1 1 24 35 48 70 45 75 1 9 00 15 41"' 12 1 48 70 i 66 a 34 35 60 103 77 552 53 11 15 00 30 2 89 30 513 67 1 25 00 45 133 17 1 20 00 30 111 68 4 00 25 3 82 79 1 35 1 48 70 75 198 61 20 438 63 8 45 10 242 75 4 20 19 083 70 10 65 » 143 90 2 85 1,006 00 115 20 1 50 00 75 4 U 2 43 48 300 00 39 85 95 S 75 75 1 48 70 75 1 2 19 15 461 73 32 01 1 10 00 15 1 40 34 50 00 75 75 1 19 48 30 802 23 8 00 ') 89 70 1 35 1U7 80 77 57 301 33 2 33 110 61 326 45 183 96 S18 05 A'o 917 '.'S 16 65 . 1,561 7« 27 80 69 2. 345 75 39 75 47 1 1,200 83 1 19 95 : 1 B,990 7« 080 PAPERS ACCOMPANYING THE No, 11. — Statement of money-order travsactions at post-offices in the States auil I'omtories. Alabama ^Irizona Arkansas California Colorado Oonnecticnt Dakota Delaware District of Colombia. Florida Georgia ............. Idaho Illinois Indiana Indian Territory Iowa Kansas... Eentncky Louisiana Maine Maryland Massachusetts Michigan Minnesota Miississippi ...... Missouri Montana ............ Nebraska Nevada New Hampshire.-... New Jersey New Mexico New York North Carolina Ohio Oregon Pennsylvania JBhode Island South Carolina Tennessee Texas Utah "Vermont "Virginia "W ashington "West Virginia "Wisoon-iu ■Wyoming Domestic. Interna- tional. 61, 409 4, 330 54, 380 2'.'6, 026 70, 817 95, 523 17, 100 7, 413 66, 849 29, 647 141, 859 4,333 1, 061, 471 252, 892 572 324, 201 191, 620 149, 523 164, 832 124, 807 110, 966 464, 332 317, 102 130, 453 57, 978 481,064 6,126 90,507 ■10, 065 39, 806 78, 836 4,122 1, 404, 675 53, 132 670, 873 45, 978 552, 519 23, 110 43, 112 147, 515 206,208 13, 582 39, 925 86, 969 12, 329 22, 573 233, 302 4,487 Tolal 8,401,668 $949, 130, 1, 050, 4, 348, 1, 384, 1, 177, 352, 110, 705, Oil, 2,048, 139, 11, 924, 3,424, 32, 4, 538, 3, 261, 2, 374, 2,388, 1, 516, 1,828, 4, 607, 4, 368, 1, 998, 795, 7,435, 143, 1, 495, 234, 588, 1, 301, 95, 14, 924, 842, 7, 718, 1, 109, 6, 318, 353, 630, 2,487, 4, 220, 309, 569, 1, 395, 356, 348. 3, 52,5, 93, 175 15 569 08 510 1!) 327 88 6!I0 69 739 90 769 72 359 92 045 05 856 57 219 04 915 85 187 81 051 78 402 88 981 47 070 97 946 23 475 82 074 00 716 10 177 55 455 57 306 78 941 87 384 22 314 56 926 78 536 50 339 55 196 11 767 44 817 14 544 71 116 96 093 96 653 45 278 43 694 22 159 19 112 80 193 92 600 64 571 40 665 44 369 39 371 69 619 38 112, 605, 295 84 $13, 287 38 2,899 13 21, 051 .50 32, 047 90 23, 682 08 6, 008 00 7, 235 40 872 82 4, 416 27 8, 835 37 12, 925 76 3, 226 18 62, 793 25 25, 882 48 257 62 41, 930 45 38, 690 62 10, 9'13 48 12, 936 99 5, 553 81 6, 024 48 17, 583 87 36,416 17 19, 352 72 16, 556 77 32,891 65 3, 528 89 17, 756 55 6, 537 83 3, 450 33 7, 106 35 2, 088 97 54, 123 56 9, 457 44 42. 350 00 8,497 27 38, 152 83 2, 295 19 6, 611 88 15, 105 58 49, Oil 01 3, 049 70 8, 736 67 7, 548 61 4,703 58 3, 583 22 27, 578 32 2,431 07 $31 96 'iio,'885'6o' 258 60 11 86 78 00 24 56 330 84 3, 223 00 282 00 33, 173 00 20, 737 89 1, 443 09 373 68 145 27 259 75 2, 500 00 98 43 434 00 584 00 425 60 340 08 19, 587 80 645 22 96 00 103 01 467, 260 31 1, 462 00 60, 173 90 581 00 8, 634 90 124 50 7, 773 58 2, 916 84 117 93 529 85 68 50 488 98 $2, 052, 409, 2,541, 3, 364, 3, 134, 506, 5.j6, 57, 1, 009, 639, 2, 241, 385, 6, 989, 2, 628, 59, 3, 896, 2,313, 951, 3, 414, 592, 490, 997, 3,782, 2, 531, 1, 731, 5,232, 619, 2. 191, 718, 230, 445, 366, 20, 739, 1,310, 3, 389, 1, 976, 3, 677, 270, 1, 622, 1, 869, 6, 480, 638, 199, 1, 771, 396, 315, 3, 098, 245, 473 00 020 00 928 90 340 77 834 50 275 00 390 44 240 74 828 08 630 00 798 00 273 00 953 88 150 27 408 50 361 52 247 00 372 15 023 16 540 00 021 92 845 79 410 00 742 00 041 82 105 09 902 64 869 19 096 00 119 51 535 00 414 41 990 94 814 31 502 89 028 00 388 06 802 00 772 00 664 19 204 04 886 70 611 50 153 92 778 00 889 55 087 21 345 05 Canada. 9 15 27 1,879 100 1,895 196 21 323 03 45 5 3,730 410 263 89 109 231 2,284 299 7,628 3,621 956 7 483 80 202 30 248 701 1 16,663 7 1,816 375 2,973 345 12 35 75 11 338 90 181 5 587 15 783, 006 06 I 752, 204 88 | 105, 084, 110 64 | 49, 537 REPORT OJ- THE I'OSTMASTER-GENERAI United Slatt:i for the Jiscal year ended June 30, leWii— Couiiuued. 981. luteruutioDal — Continued. Canada. Switzerland. 785,826 01 '4,206 73 3i, MO 407,700 IK) 0,479 00 n4,U74 1,047,1M0 77 ,10,4'Jl 10 14,020 113,393 05 ,t>09 20 982 PAPERS ACCOMPANYING THE No. 11.— Statement of money-order transactions at jwst offices inihe International— Continued, Italy. France. J.imaica. States and Territories. 1 o it 3 3 A o 1 O P -A I < o o.;i 1 3 n u o 3 O 6 <1 2 o ^% -w P< 3 * o a 2 1 2 S 9 "^ 5 a < o a 4i ft gg o a 1 $11 45 9 12 150 Gl 40 1 13 52 ii 5 $301 10 51 46 337 46 4, 646 79 9GG46 674 63 19 04 539 22 1, 026 29 322 03 104 99 3 30 114 48 1,024 51 $25 00 60 00 54 00 $65 00 16 695 08 72 1 $1 91 District of Columbia . 26 1 1 6G3 35 47 70 19 08 5 00 1 6 1 22 15132 20 00 30 00 50 10 00 34 3 1, 073 05 30 52 82 00 no 15 2, 853 07 270 63 8 93 09 5 6 3 48 1 34 42 6 3 2 12 62 77 239 46 114 48 1, 731 60 7 63 1,280 00 1, 126 45 255 29 97 80 56 29 309 82 30 39 18 230 n 36 106 39 7 4 83 937 07 1, 538 .52 315 74 G, 826 08 298 28 673 32 1, .505 36 1, 226 (17 200 69 40 59 2, 626 51 5 40 2 58 44 96 00 4 29 4 2 6 12 4 58 58 27 35 392 20 302 50 34 60 .' 5 00 20 98 Massachusetts 145 48 88 88 1 24 35 4 8 190 80 301 58 14 3 2 58 000 54 142 85 88 09 1, 236 00 20 00 7 54 1 98 10 350 30 4 102 27 New York 291 5, 47i 32 146 00 1,196 1 57 7 158 10 2 7 34 18, 616 38 38 09 1, 064 71 138 97 3, 607 09 236 13 100 00 83 17 873 89 278 93 216 6, 786 55 Ohio 16 484 15 50 00 5 00 5 29 54 Pennsylvania 60 6 1, 089 74 142 01 132 00 40 00 22 j 403 60 1 38 1 1 5 26 10 102 18 1, 123 35 477 00 10 00 1 Texas 1 Utah 1 2 24 9 40 39 23 54S 92 328 07 23 03 1, 225 03 1 1 4 87 4 87 1 17 654 15 30 00 20 00 1 "Wisconsin 8 119 48 1 1 4 87 "VVyOTTnin*r 1 " Total 738 19,616 87 715 98 2,728 57, 352 79 745 10 1 297 1 8,284 13 REPORT OF THE POSTMASTER-GEXERAL. United Stales during the fiscal year ended June :10, 18S2— Continufd. 983 International — Contiuuod. Total. New Zealand. New Sonth Wales. Victoria. •a o a s H H a . §2 i 1 S 1 c . .= n 1 1 feg. a a fe i o °« S *" s s £ S o 1 u •si -^1 4 .: s le 1 1 l^ it c ^ [as. o c B a < A o B s 1. c c 3 o 1 1 ID "Z U m $220 05 23 00 1, 005 95 8,eou 60 31 62 44 15 421 03 19 75 50, 420 80 109 97 495 73 581 25 2,688 1»2 449 80 $8,016 40 1, 490 .16 8,879 84 23, 0119 71 9,587 38 $2.5. 081 18 9 GIM 19 $224 90 25 639 05 ino 9R U ii,793 22 .... 19 $500 41 .... 85 1 1644 80 07,796 10 119 38 .52. 252 28 118 .(1 8 150 55 .... 1 1 28 .... 2 29 22 7,414 38 12,010 29 280 97 3,217 28 i 15,757 71 11 *>! 856 29 1 1, 014 84 6, 441 10 8. lOR 24 2 99 1 ii 8 04 83 4, 430 80 11,534 09 1,400 40 00,484 48 23,208 78 220 28 32,904 00 22, 675 10 11,452 99 8, 871 35 8, 300 08 7,850 84 26,040 29i 20,608 58 23.526 33 28,211 53 U.2M 52 IMJ. 998 43 32, 532 »9 054 00 G8, 848 29 30,919 41 ]«. 801 CI 70,511 34 13,487 08 7, 155 50 81,954 85 63. 007 82 i4 11 64 43 05 17 25 517 59 31 10 .... 10 1 850 87 14 01 .... 8 101 80 5W 01 212 8:t 119 75 817 27 004 02 2. 403 70 2, 277 08 103 98 05 245 35 1.14 33 168 20 35 56 2,957 84 45 05 10 75 8 88 24 42 18 80 1,411 67 108 24 o 34 09 4 87 1 167 CO 12 24 1 24 35 76 09 3, 103 38 .... 1 24 35 .... 1 1 52 55 71 00 11 78 10 1 223 03 19 48 12 1 108 02 4 20 420 74 824 90 97 40 13,00148 33; 003 18 9, 410 05 35. 501 76 06 SO 1 2 20 22 48 70 80 07 3 82 38 .... 32,720 57 1, 850 85 11, 194 31 2,014 11 3,700 06 7, 528 10 987 54 61,803 82 20, 931 15 31,825 U 10, 182 98 0, 4.'>3 23 8. 983 47 10. 568 03 789 03 1 113 30 1 1 24 35 1 207 09 14 351 32 1 2 58 44 310 62 1 218 2, 178 08 ....| 36 687 27 .... SO 1, 181 04 38.243 38 3, 083 60 220 20 523 36 400 30 302 25 14 85 340 11 2, 700 70 111 00 37 35 114 17 10 00 3 00 190 10 •2H 40 D8, 087 93 57, 075 38 7,018 17 18,3.13 02 682 03 09 52 7 88 24 .... . .1 1 24 35 44, 982 85 5.-., 253 02 035 68 3 120 50 62 08 C, 789 85 88, 440 22 ' 59 44 35 1 404 30 48 70 6 1 6:1 79 48 70 37,100 48 ' 69,205 77 830 45 1.9:.0 43 1 4.844 77 , 11 80 1 5, 854 94 16, 729 58 12, 946 Ki 20, 0;i5 88 27,274 51 1 117,196 03 1,812 44 , 2:1.012 63 198 80 o 14 01 1 1 1 220 10 1 1 1 201 03 4 4 A on 17 04 14 01 1 ! 2 1 48 70 .... 17 73 1 4.451 08 8, 222 30 2,747 90 2, 807 65 23, 825 40 1,141 38 6,0:10 54 21.044 34 12, 443 20 0.241 81 49, 950 43 4.134 52 132 61 1 .... 2 73 05 1.:.. 348 42 1.... •■••i""'::':r:: 1 21 1:1 , 3 ;t7 25 1 1 48 70 i.... 417 1.-. .... ^ 1 -' ••••! i ' 427 ! 9, 202 47 . . . !i:t 2, 077 05 ....,129 1 2,003 72 .... IL'.'-.STl 24 094,709 02 ll. 511,549 21 10,424 C3 1 1 ■ \ ' 1 1 984 PAPBRS ACCOMPAiCYING TUli No. IS. — iitiikmcnt showimj lite rcccipta and diehurbcinents at the luouxyonicr qjffkcs of the United States during thejiacal year ended June 30, IbtfJi. KECEIPTS, Bnlance in tlio liiinds of postmastors Jnno 30, 1881 $1,427,108 59 Balance in the hands of tho Assistant United States Treasurer at New- York, N. Y., Juno:50, 1881 2,321,740 83 Amount deposited with the Assistant United States Treasurer at New York.N. Y 2,054,745 53 Amount received for domestic money-orders issued. . . $113, 400, 118 21 Amount received for Canadian international money- orders issued 1, 018, 641 62 Amount received for British international money- orders issued 2,740,302 09 Amount received for German international money- orders issued 2,057,705 42 Amount received for Swiss international money-orders issued 205,820 06 Amount received for Italian international money- orders issued 408, 221 60 Amount received for French, international money- orders issu(Ml 99, 738 10 Amount received for Jamaica international money- orders issued 917 23 Amount received for New Zealandinternational money- orders issued 1, 561 78 Amount received for New South Wales international money-orders issued 2, 345 75 Amount received for Victoria international money- orders issued 1,200 83 Total issued 119,936,632 69 Amount received for fees on domestic money-orders issued 1,053,710 55 Amount received for fees on Canadian international money orders issued 17, 244 55 Amount received for fees on British international money-orders i-ssued 78, 526 30 Amount received for fees on German international money-orders issued 36, 785 70 Amount received for fees on Swiss international money- orders issued ! 4, 591 50 Amount received for fees on Italian international money-orders issued 6, 579 60 Amount received for fees on French international money-orders issued 1,815 45 Amount received for fees on Jamaica international money-orders issued 16 65 Amount received for fees on New Zealand international money-orders issued 27 SO Amouut received for fees on New South Wales inter- national money-orders issued 36 75 Amount received for fees on Victoria international money-orders issued 19 95 Total fees 1,199,354 80 Amount i-eceived for premiums, &o 828 07 Amount received for deposits 90,339,829 68 Amount received for drafts 10,823,200 96 Amount transferred from postage fund 905, 707 61 Amount overpaid by postmasters 9,990 70 Total receipts 229,019,139 46 DISBURSEMENTS. Amount of domestic money-orders paid .$112, 605, 295 84 Amount of Canadian international money-orders paid. 785, 326 01 Amount of British international money-orders paid.. 407, 766 93 Amount of German intornational money-orders paid. 1, 047, 940 77 REPORT OF THE l>0fc>TMA8TEB-GENEKAL. 985 Amount of Swiss international luouey-ordcrs paid.. . 5ll3,'21h; 05 Amount of Italian international money-orders paid,. 19,616 ^7 Amount of PYeneh international money-ordera paid.. 57,352 79 Amount of Jamaica international money-ordere paid. 8,284 13 Amount of New Zealand international money-orders paid 9,202 47 Amount of New South Wales international money- order8i)aid 2,077 05 Amount of A'^ictoria international money-orders paid. 2, 603 72 Total paid 115,05^,758 G3 Amount of domestic money-orders repaid. $783,006 06 Amount of Canadian international money- orders reiiaid 4, 296 73 Amount oi British international money- orders repaid 5,479 96 Amount of German international money- orders repaid i.. 10, 421 15 Amount of Swiss international money- orders repai^ 07 1, 05-1,538 62 Amount allowed postmasters for commissions and clerk- hire .?652,399 or. Lost remittances 1, 105 00 Bad debts :W,0S3 52 Incidental expenses H7,C(»lt f<7 Net revenue 280,341 17 1,054,.V.H (;2 986 PAPERS ACCOMPANYING THE No. 14. — Statement sliowing the revenue which accrued on international money-order transac- tions fur the fiscal year ended June 30, 1881. CANADIAN. Ainouiit received for fi-os on issued orders $14,0.58 G.'i Aniount allowed postmasters: For coniinissioiiH and clerk-hire $r),153 47 For incidental expenses 101 70 Excess of commissions paid Canada i'2?^ ^^ Net revenue • ' 7,77G 31 14,0.-)8G.T BRITISH. Amount received for fees on issued orders $58, 225 10 Gain in excliange 10,866 93 69, 122 03 Amount allowed postmasters : For commissions and clerk-lii re $14,949 14 For incidental expenses 140 84 Excess of commissions paid Great Britain 12,365 26 Net revenue 41,666 79 69, 122 03 GKRMAN. Amount received for fees on issued orders $24,904 60 Gain in exchange 12,250 44 37,155 04 Amount allowed postmasters: For commissions and clerk-Lire......... $14,174 64 For incidental expenses 179 43 Excess of commissions paid Germany 3, 892 87 Net revenue 18,908 10 37, 155 04 SWISS. Amount received fr>, 109 2.2i:i,3KI 190, 022 -•:l,4f2 Grams. 63, .'■)97, 208 92, 723, 5ii2 89, 807, 477 15,893,831 15, 320, sn« C.">.:i8», S19 12,675,212 2, 298. 5»4 5, 542, 244 Grains. 5, 590, 074 2, 115, 523 11,1.55,924 9, 349, 730 16,311.319 1, 3.5:1, 890 199, 005 Grams. 13,081, Oil 3, 310, 492 36, 407, 152 32, 987, 050 01.770.004 2,013,31(0 472, 930 Orams. 672. 676 2, 447, 477 2, 395, 046 1,336,381 079, 701 1, 0:12. 0.54 85,588 Grains. L 2.-.7, 237 10, 278, 933 13, 573, 135 8, 079, 583 1, 808, SSI ICortli (ii'i-inau Liu;, il of 7 r>70 43.1 Auchiir 710, 18.1 Aincricau Stvaiimliip Cimi- pllllV K<«1 Star 1, 859. 678 8. 800. 517 >'('tli(M'liiii(ls Steam N.'» i;.:i Total 80,115.747 383. 249, SM 1.50,738,899 21.281,690 11,108,001 080,304 52,?34,003 Increase rompared with lost Uscalyear •,437.981 59, oca, 5:ii 0. 931, 318 :)88 TAl-EHH ACOOMrANYlNG THE Ko. 17. — IWitjht of Icllvva, newspapers, ijx. — Continued. Italf. Belg ium. Denmark. Stoainsltii) linos. Letters, j Papers, &c. Letters. Papers, &.C. Lcttf-rs. Papers, &c. j Grams, i Grams. 955, 390 3, 859, 887 1, 212, 197 7, 197, 311 1, 435, 462 5, 778, 294 212, 201 1, 191, 686 286,400 1,412,090 921,118 i 5,186,61)1 62, 520 :;51, 040 Grams. 226, 884 304,516 284, 182 44, 722 72. 610 242, 478 11,005 Grams. 82U, Kt2 1, 585, 494 1, 304, 582 203, 075 302, 901 1, 142, 889 92, 573 Grams. 239, 2JiO 3,790 678, 795 486, 055 1,004,110 13, 050 34, 840 Grams. 321, 342 4,060 1, 232, 838 902, 103 1, 347. 160 "WliitoStar Livorpool iind Great West- ern Steam Conipauy Hauibui'ii-Amencau Packet Xorth Genuan Lloyd of 28, 070 89, 440 American Steamship Gom- I j 1 7,100 13, 152 Netherlan(il8 Steam Naviga- Totil 5, 085, 348 24, 976, 905 1, 253, 497 5, 525, 498 2, 459, 920 3, 925, 033 1, 315, 338 3,444,085 95,766 417, 347 685,490 339, 533 Netherlands. Switzerland. Spain. Steamship lines. Letters. Papers, &c. Letters. Papers, &c. Letters. Papers, &c. Grams. 462, 336 698, 408 543, 724 96, 370 141, 695 428, 573 Gi'ams. 894,974 2, 276, 759 1, 513, 403 320, 713 391, 898 IfiSfi. 890 Grams. 553, 604 881, 166 818, 055 133, 209 161, 995 572, 475 36, 900 Grams. 1, 897, 452 4, 067, 892 4, 326, 907 759, 256 715, 538 2, 937, 923 186, 840 Orams. 214, 258 318, 819 262, 592 50, 508 .55, 530 220, 852 9,000 Grams. 1, 149, 497 Wliite Star 2, 389, 060 ern Steam Company Hamburg- American Packet Company North German Lloyd of Bremen 1, 806, 182 374, 316 361, 010 l,(i41,980 Anchor 22,300 j ' 92,840 97,000 American Steamship Com- j 1 Bed Star ' 1 -- 1 1 ' 1 Netherlands Steam Naviga- tion Company j 2, 030 Total 2, 395, 436 ^ 7,077,477 I 3, 157, 404 14, 891, 808 : 1,131,559 7, 819, 045 Increase compared with last fiscal year 317, 096 1,243,657 1 417, 864 2, 048, 428 1 74,019 1, 0S9, 505 REPORT OF THE PORTMASTER-GENERAL. 989 No. 17. — Weight of letters, neiospapers, ^c. — Continued. SteamsLip lines. Portugal. Sweden. 1 j Norway. Letters. Papers, die. Letters. Papers, etc 1 Letters. Papers, &c Grams, 21,775 33,064 47.76C 7.200 5,798 22,970 360 Grama. i:),580 71,529 39, 276 11,420 .<■., 835 52, 405 420 Gram*. 1,018.890 22,620 2, 940, 130 2,371,210 3, 852, 330 60,970 185,900 Gram*. 1,301,844 14,940 6, 725, 024 3,490,880 8, 057, 563 180. 740 574,040 Gram*. 461.415 119, tar i French j .. Netherlands Steam Naviga- tion Company .....1 1 1 1 ' Total 138,933 196,465 10, 452, 055 20,345,031 5,497,640 8,991.296 Increase rompared with last 3, 072, 805 9, 163, 071 1,545,250 3.«n,70« Steamship lines. Austria. Turkey. Letters. Papers, &0. Letters. Papers, &c Gramt. 280,860 63, 835 618, 275 437,710 830, 6l'U :>A, 490 41,000 Gramx. Wl,7i« 93, 9li4 1.67J,497 1, 19».940 2, r>8»;, '.c'l VS2. VA 187, 440 Gram*. Iv VV, ir,. -.-.n Oram*. 703 'tTO 1 li'i .It Liverpool and Great Westen IlarabnTjt-American Packet ( Korth German Lloyd of Brei 1 Steam Com pany -- : T.Mi , , 63 ''■'0 American Steamship Conipa ]t«-d Star 1 i 1 ...... ......|..... Netherlands Steam Navigati on Company 2,330,799 6, 499. 955 2lt.-|, 2.'vO 4 121 294 fiscal year. . Increase compared with last 250,850 8,406,014 R ECAPITUI .ATION. Countr es. Letters. Paper^&c. Gramt. 80.11.1,747 4«>. 070. 131 11. Ui.\6lil fi. 08.'.. 348 1. 253. 407 2, 450, 920 a, :H».\ 4.16 3. 157. 404 1,131. MO 138.n3.'« 10, 4.V.'. 0,-..-, \ 497, (40 2. :t.'«l, 7l»9 29:.. iM Oram*. 363 249 886 i.^ii 7:m .sno .12, 2.H, 902 24, :*:>; o,:, \\ -v-""' 3 14 - ' , 20, 8 : 6. j 4 I'l '"H i:i.4;m..i2o 670. .'.Ort. 104 Increaao compnrcd with last fiscal year.. 118,484.341 990 REPORT OF THE POSTMASTER-GENERAL. j^o, IS. — Weight of letters, newspapers, romotive of the objects which that body liiul in view, and the cx[)enditiireK have been contined strictly to the divisions and work for wliich the appropriations were specitically made. Provision has been made for the care and protection of the valuable collections of minerals, ores, woods, and agricult ural i)rotlucts presented to the department by the exhibitors at the Atlanta Exposition of 1881, and in a temporary and convenient building on the grounds of the de- partment these collections have been admirably arranged for easy access by those who desire to witness the i)roducing capacity of those sections of our country which have furnished the exhibits. A new building is nearly completed for the storing and distributing of the large amount of seed now provided by Congress. 991 992 REPORT OF THE COMMISSIONER OP AGRICULTURE. The success wliicli attended the conventions held at the department in January, 1882, has induced me to call others in Januarj^, 1883, to which representatives of the agricultural colleges and societies have been called together for the purpose of discussing the most important points relating to agricultural education, the animal industry of the United States, and the cotton industry. I have received through the State Department a communication from Hamburg, requesting this country to unite with the great agricultural nations of Europe in an exhibition of domestic animals, and the various methods of feeding and plans for shelter, in July, 1883, which I trust will receive the consideration of Congress. DIVISION OF aARDENS AND GROUNDS. The number of plants distributed since my last report amounts to about 70,000. The seeming falling off in numbers from those of recent years is due to the reduction of the number of tea plants, that distribu- tion being partly met with plants from the tea nursery in South Caro- lina. Compared with the amount of appropriation available for this particular work, the number of plants propagated is large; and as they are mainly packed so as to be sent through the mail, a considerable amount of labor is required. About 4,500 packages, averaging 15 plants to each package, necessarily involves much manipulation in their prepar- ation for the post-ofifice. Attention is again directed to the necessity of establishing branches of this division in semi-tropical climates for the more extensive propa- gation of semi-tropical plants. The demands of the country for plants of this character for the purposes of experimentation are constant and persistent, and as the department is at present situated in regard to facilities and encouragement in the propagation of such plants, but little of essential value can be done. The distribution of economic plants is prosecuted to as great an ex- tent as the capabilities and appropriations for this particular purpose will admit. Efforts towards the introduction of the tea plant are vigorously maintained. The tea plantation instituted in the spring of 1881 is progressing favorably. Several acres have been planted and the plants are making a satisfactory growth, so that in the course of a few years they will be in good condition to fairly test the question of profitable manufacture, which is, in fact, the only point now awaiting consummation, the question of the adaptability of climate to the mere growth of the plant having long been favorably determined. BOTANICAL, DIVISION. The work of the botanical division has been steadily pursued through- out the year. Good progress has been made in preparing and mounting specimens and incorporating them in their proper places in the herb- REPORT OF THE COMillSSIONER OP AGRICULTURE. 993 ariura, thereby rendering available for study and consultation a large number of new specimens. The collection has been largely increased during the past year by the purchase of plants from Florida, Arizona, ^ew Mexico, Texas, and the Pacific slope, and a few from other points. Several packages of xVrctic plants have been received through the Smithsonian Institution, and numerous small packages from various persons, part as donations, part as exchanges. Packages of plants have been sent out to individuals as exclianges, also to persons making a special study of some order of plants, and to institutions of learning. The work of describing and illustrating our native grasses for the annual report has been continued, preference having been given to those species concerning which special inquiries have been made during the year by agriculturists and stock-raisers. Circulars making inquiries concerning the various species of grass relied upon for hay and grazing were sent to the Southern States, to the Pacific slope, and to the Territories. Much valuable information was obtained, a digest of whi('h is given in the annual report. MICROSCOnCAL DIVISION. During the past year the work of the division has been of the usual varied character. Many microscoi)ical examinations have been made of breadstuffs, milk, butter, chee.se, sugar, glucose, oleomargarine, food oils, lard, vegetable fats, &c., and in some instances new methods dis- covered for the detection of artificial impurities in them. Investigations have been instituted to discover, if possible, the pri- mary cause of what is known as pear-tree blight, so destructive to the interest of orchardists in the Northwest, where sometimes a thousand valuable pear trees are destroyed by this disease in a single orchard in a season. A large collection of microsco])ic sections have been made and mounted to illustrate the distinctive peculiarities of different species of oaks. These investigations have a special commercial and botanical value. The microscopist has also made investigation for several divisions of the department, and in some instances for the general government. OorrespomUMRV. has also been k,ept up with eminent Euroi)ean micro scopists as well as those of the United States, and specimens having relation to the work of this division exchanged. CnEJIICAL DIVISION. The work of the chemical division has been devoted largely to investi- gating the sugar-producing (lualitie.s of sorghum, boots, and other plants, as provided for by Congress. Tlu^ analyses of last year have becij ro- Ijcated, and many varieties of sorghum raised on the grounds of llie department have been subjected to careful laboratory examination. G3 Ab 994 REPORT OF THE COMMISSIONER OF AGRICULTURE. Tho laboratory work of 1882 will be necessarily extended beyond the time fixed for the issue of tho forthcoming volume, and must therefore beretainodfora future publication. Tliirty-livcncw varieties of Korghura from Natal, India, and China have been subjected to daily examination, and I am informed by the chemist of the department that preparation is made for analyses of nineteen varieties of bagasse, four varieties of leaves, twelve varieties of juices, twenty-five varieties of sirups from sorghum, together with three hundred and fifteen vegetables, fifty speci- mens of wheat, and twenty-five of soils, during the immediate future. Fifty-four miscellaneous analyses, including minerals, spring and well waters, peats, soils, cereals, shales, kaolins, fertilizers, tanning materials, waste products of glucose manufactories, marls, &c., have been performed during the last season, and several hundred determinations of water, nitrogen, and proximate principles have already been made on the veg- etable samples enumerated, and an increasing amount of correspondence has received constant attention. At the request of the chemist of the department, I submitted the sor- ghum analyses and work of his division to the National Academy of Sciences on the 30th of January last for investigation by that body. A committee appointed for that purpose entered upon their work with great zeal and energy, and their report, which was laid before me, was, on July 21, withdrawn formally by the secretary of the academy, "for such action as the academy may deem necessary." On the loth of No- vember current, the president of the academy presented to me the final report of that institution, a long and elaborate document, containing a review of the history of the sorghum industry for twenty-five years, a statement of the scientific investigations made in this country and in Europe into the quality of sorghum and maize as sugar-producing plants, a careful examination of the chemical work of the department, a large volume of testimony received from sugar manufacturers, and certain suggestions with regard to future investigations and the work of the department. This report is evidently the result of infinite care, and has been subjected to careful revision, and I trust it will be found a valuable text-book for those engaged in the sorghum sugar industry. As a review of the successes and failures which have attended this industry, it is invaluable. As a guide to those who are engaged in it, it contains all the important results that have thus far been obtained by the chemist in his laboratory and the manufacturer in his mill. This report, together with a most voluminous appendix, making an interesting mass of matter far too large to be inclosed in the annual volume of the department for this year, will be issued at an early day as a special publication. The business of manufacturing sugar from sorghum at the depart- ment having failed in 1881, and having furnished discouragement rather than information to those engaged in it, I have called upon the sorghum manufacturers themselves for such information as they could furnish in an accurate manner, for the benefit of the industry they represent. I REPORT OP THE COMl^HSSIONER OP AGRICULTITRE. 995 have also made the same request of the manufacturers of sugar from beets. I have received assurances from nearly a hundred manufacturers that they will contribute to this work, and I feel confident that I shall in this way receive a great amount of valuable information. I have endeavored from the beginning of my connection with the department so to conduct the work performed here as a part of that interesting investigation into the value of sorghum now going on in the Held of the farmer, and the mill of the manufacturer, and the laboratory of the chemist, as to secure for what ai)pcars to be a growing industry all the information which unprejudiced science and the best practical skill can provide; and I trust the knowledge I have gathered will, when published, be found to be of value. ENTOMOLOGICAL DIVISION. The work of the entomological division has progressed satisfactorily during the year. The report of the entomologist includes observations on many insects that have attracted attention during the year, while special study has been given to those affecting the principal staples. Yet the observations on these form but a small part of the work of the division, since unpublished notes of observations and experiments have been made on 590 different species more or less injurious, antl about which little or nothing was hitherto known, while many additions have been made to our knowledge of the habits of sjiecies that had previ- ously been but partly studied. The chief staples have during the year suffered comparatively little, as a rule, from destructive insects. Yet many serious complaints have come from several sections, and the entomologist has given particular attention to such, visiting the localities that suffered either personally or by proxy. The aggregate damage done to our products by injurious insects is enormous, and few fields of inquiry promise more substantial and prac- tical results than systematic and intelligent investigation into the habits of these tiny marauders, and the best means of counteracting their ravages. As an evidence of the interest in and appreciation of the work which the department is doing in this field, some 2,500 letters of inquiry have been received during the year, most of them requiring full replies. This correspondence consumes a large share of the time of the entomologist and his assistants. The United States Entomological Commission has ended its field work and has well-nigh completed its office work. The third report of the Commission has been finished and placed in the printer's hands, and the fourth, which is a revised edition of Dr. Kiley's report on the cotton worm, has been delayed so as to include the practical results ob- tained during the present year. The fifth, which is a revised edition of Dr. Packard's report on the insects affecting forest trees, is in course of preparation. 996 KEPORT OF THli COMMISSIONER OF AGRICULTURE. In addition to the above documents several bulletins on important insects are being prepared, as also a bibliography of economic ento- mology, and a special report on the insect diseases affecting the orange. Special agents under the direction of the entomologist have been en- gaged in several widely separated parts of the country making ob- servations and experiments on species afl'ecting the orange and the cotton interests ; while a party has explored the northwest regions of the United States and British America with a view of obtaining data in reference to that scourge of the West, the Eocky Mountain locust. The course of exploration was through Dakota and Montana to Fort McLeod and back down the South Saskatchewan via. Winnepeg — the object being to depart from beaten routes and to make excursions, by the way, into the great plains. The results of the journey warrant the conclusion that the destructive insect is yet in altogether insufficient numbers in these, its native haunts, to threaten any serious migrations or injury to crops in the more fertile States to the southeast. Dr. Kiley has for some years past made it a point to endeavor to collect such data as would warrant anticipation of locust injury or im- munity, and the anticipations, as set forth on repeated occasions, have been verified in a remarkable degree. The farmers of the West have, therefore, so far as the data obtained warrant an opinion, the pleasing assurance that their crops will not be ravaged by locusts in 1883. The army worm appeared in injurious numbers in several of the Atlantic States, and its advent the present year was also anticipated by the entomologist, who endeavored, through the columns of the agri- cultural press, to prepare farmers for the visitation. In like manner timely information in reference to the cotton worm was disseminated among the planters of the overflowed districts of the Mississippi Valley in anticipation of possible injury, and the subsequent immunity from injury was no doubt largely due to the preparation for meeting the evil in its incipiency which planters in consequence made. Important im- provements in the machinery used in poisoning this insect have been made, and the interesting and mooted question as to whether or not the parent of the worm survives throughout the year within the limits of the United States has been definitely settled in the affirmative. Among other subjects worthy of mention in connection with the ento- mological division is the introduction and cultivation of the pyrethrums, which are known to have such great value as insect destroyers, and the l^owder from which is variously sold under the names of " Persian In- sect Powder," "Buhach,"&c. The entomologist has ascertained by experiment that preparations of this plant may be used successfully in the field against several of our worst insect pests, and its cultivation over as wide an area as possible is, consequently, most desirable. A circular giving information about the two species havingthis virtue was accordingly sent out, with seed that had been imported from Russia and 1U::P<>KT of TUE ( OMMiabluNEK « "F AGKlOULTUltK. •JOT the Caucasus. The experience so far had by the lecipionlH of the seed is, ou the ^vhole, most eiicouraj^inji', as is also that had at Washington, where phmts of both species, j^rowii from seed sown in tlie fall of 1880 and spring of 1881, flowered profusely and gave a XK)wder equal in its iiispctici«le qualities to any previously tested. DISTRIBUTION OK SEEDS. 'J'ahulaled atalement showing the quantity and Kind of aeedti ixmied from the need diiiitiitn, Department of Agriculture, undir special appropriation act of Congren^ pai^scd April 11, 1382, of S-20,000 /or the flooded diatricta south. DESCRIPTION OF SKEDS. I 'ac Wages. VogetabK'S 414,6^ Field corn 48, C44 Field pease 2G,957 Field beans :?,9C4 Field niillct 14,348 Field cotton If/J Grand total 508,953 RECAPITULATE. Senators and Members of Congress 1, 058, 479 State agricultural societies 7,588 Statistical correspondents 269,177 Special appropriation 508, 958 Miscellaneous applicants 552,274 Grand totals 2,396,476 Tabulated statement showing the quaiilitij and kind of seeds ixsued from the sctd division, Department of Agriculture, under the gcnaal and special appropriation acts of Congress from Juhj 1, 1881, to June 30, 1882, inclusive. BeHoription of seeds. Vegetables ... I'lowers Uerb.s Tobacco Tree Sn&flowor — Opium poppy . I'jTethmm . . . drape vino... Strawberry... Tea seed Coffco 107 8G 15 7 3 1 1 1 Paekagt*. 719. 85& 7.1. 027 62,447 381 3l Si a V ■a 3 H V Paekagtt. Pafkagu. • Paekagts. I I50.M3 I 4U,8M 3, aw 4 , 10. 24« 14,029 51 KIS 1S0 90 9 9 a Paekagtt. 300,030 100.406 212 10,9:13 :m ICC 48 2.017 678 800 2 O Paekagft. 1,6S1,704 170.4r.-J 2in 83,21.-. 1,07:. 256 64 2.017 10,924 14,805 54 439 998 REPORT OF THE COMMISSIONER OP AGRICULTURE. TahuJated statement showing the qnantit}i and kind of seeds issued from the seed division, Department of Agriculture — Coutiuued. \ Description of seeds. FIELD SEEDS. "WTieat Oats Com SArley Bnckwheat Eye — Sorghnm ^.... Sugar-beet Mangel warzel Grass Clover Cow-pea , Bichardsonia scabra . . Borage Millet Bice Turnips, special issue . Beans, special issue ... Pease, special issue — TEXTILE. Cotton Hemp Flax^ , Jute Katnie Grand total . Packages. 52, 847 40, C84 19, 081 29 3,503 32 2,377 5C2 279 35, 700 20, 257 Packages. C, 084 1,408 24 54 1, 058, 479 Packages. 33, 232 12, 619 15, 230 5,162 10,274 692 85 39 997 139 67 16 2 35, 000 230 Packages. 48,644 14,348 3,964 26, 957 Packages. 5,788 20, 563 9,942 366 4,715 659 3,503 1,410 66 2,883 828 133 43 5 2 46 10, 103 46 12 228 10 7, 588 269, 177 I 508, 958 552, 274 Packages. 97,951 75, 274 92,897 395 13, 380 10,965 6,572 1,501 105 4,506 1,254 200 59 13 14, 350 43 70, 700 3,964 26. 957 30,773 46 12 303 10 2, 396, 476 DISEASES OF DOMESTIC ANIMALS.— WORK OF THE VETERINARY DI- VISION. The failure of the corn and hay crops last year resulted in the loss, during the following winter months, of large numbers of farm animals. Since the opening of spring and the reappearance of grass, however, the past season has been an exceptionally favorable one for all classes of domestic animals. If we except Texas fever of cattle, no widespread epidemic has prevailed among any class, and the aggregate loss from disease will be less than in many former years. Contagious pleiiro-pneumonia still prevails among cattle in the States heretofore infected, but the area of the infected territory does not seem to have been extended during the year. REPORT OF THE COMMISSIONER OF AGRICULTURE. 999 An outbreak of disease occurred iu a large herd of cattle in Culpeper County, Virginia, iu October last. It was thought to be Texas fever, and Br. IVIiller, a competent veterinarian, was directed by the depart- ment to visit the locality of the outbreak and aflord such relief as was in his power. On his arrival he found but two animals remaining on the place, and they were reported as being in a healthy euudition. A number of cattle had .died, and in order to i)rotect himsell" from further loss the owner had ship])ed all those that showed no evidences of disease to the Baltimore cattle market. From all the information the inspector of the department was able to glean respecting the symptoms of the malady and pout mortem appear- ances of the animals, he was led to believe that the disease was conta- gious i)leuro-pneumoiiia, or lung plague. However, as he saw no sick animals and had no opportunity of making a j^ost mortem examination himself, the identity of the disease must remain iu doubt. • A number of both acute and chronic cases of lung plague were fouud by the inspectors of the department during their examinations of the past season in the States of Kew Jersey and Maryland. In the early part of the season a few cases were reported from Pennsylvania, caused by the importation of diseased or infected cattle from Maryland. Texas fever of cattle prevailed over a wider extent of country during the season just closed than for many years. But few of the northern and border States escaped its ravages. The department sent members of the veterinary corps to a number of localities in Virginia, West Virgin ia, Ohio, Illinois, and Kansas, where the disease was reported as prevailing in a most destructive form, for the purpose of instituting such precautionary and preventive measures as would most quickly supi)ress the malady by preventing its further extension. In addition to this the department issued special report No. 50, which it widely distributed among the farmers and stock-raisers where southern cattle are usually grazed dur- ing the summer and fall months. This monograph coutained, in addi- tion to the report of Dr. W. B. E. Miller, a valuable paper from the pen of Dr. D. E. Salmon on the best means for controlling the contagion by the prevention of its further extension. In addition to investigations of sporadic outbroaks of disease iu widely separated localities, those emi)loyed by the veterinary division have con- tinued the investigation of fowl (iholera, swine plague, Texas fever ot cattle, and a number of contagious diseases incident to sheep, with a view to determining their cause and the discovery of a remedy or pre- ventive for the same. Dr. Detmers has spent the greater part of the year in Texas in the study of the i)eculiar fever whii^h seems to have its homo in the bodies of cattle raised in that State, and of some of the more destructive contagious diseases that yearly destroy thousands of sheep in the extensive ranges of the South and Southwest. The experiments with contagious dise;uses generally are of a very delicate nature, anlace, and what are the most efficient and practical means of destroying it, he has had another and equally important object in view. It is now certain that with most of these diseases the living animal may be brought into a condition to completely resist the effects which ^.sually follow exposure to the virus; that, strange as it may appear, animals may be rendered i^erfectly safe though they are exposed on every side to the germs of our most fatal diseases. From the first he has been endeavoring to perfect the means of ob- taining this desirable result, and although the investigation has been an extremely dilBcult one, some very satisfactory discoveries have been made. A new and very practical method of lessening the effects of the most virulent virus has been developed, which is very manageable with chicken cholera, and which it is believed is applicable to other diseases. Inoculation with such attenuated virus is only followed by a slight local irritation, and when this subsides the individual is found to have acquired a very complete degree of insusceptibility. As soou as the details concerning this are worked out it will be possible to furnish vaccine from the department with which the farmer in different parts of the country can protect his animals from, certainly, a number of the plagues which are now so destructive, and it is hoped that this will be true of all the important ones. The experiments with Texas or Spanish fever of cattle seem to have demonstrated very conclusively that this disease may be successfully inoculated by using material obtainedfrom the spleen of sick cattle. A peculiar micrococcus has been found in this material and cultivated out- side of the body, but in such cultivations it loses its virulence. Exper- iments will soon be undertaken to learn the reason of this, and to dis- cover, if possible, a vaccine that will protect the cattle exposed to infected pastures. The investigations of the year have shown that a large part of the State of Virginia is permanently infected with this dis- ease, and that cattle from this district are as dangerous as those from Texas. It was ignorance of this fact that led to the enormous losses of cattle in that State during the past summer. The extension of the territory permanently infected by this plague, a fact first established by the investigations of this department, has been abundantly contii-medj the border line of the dangerous district is ad- REPORT OF THE COMMISSIONER ©F AGRICULTURE. 1001 vaucing across the previously liealtby country at the rate of from outi to four miles imjf annum. Notwithstanding the importance of this fact the people most directly interested have scarcely suspected it, and much less have they attempted any effective means to check such extension. It is believed that the investigations now in progress will clearly outline this district and will furnish sufficient data bearing upon other points of the question to en- able the interested States to make intelligent and effective laws for holding this dangerous plague in check until we learn sufficient in re- gard to its nature to enable us to attempt its extermination with some hope of success. Wliat has been discovered by the investigation of this disease cannot fail to be of the greatest value, not only to the affected district but to the country at large. It has been generally supposed that the only cattle capable ol iatecting northern pastures were those from the neighboi^ hood of our South Atlantic and Gulf coasts from South Carolina to Texas; but it is shown that this dangerous district has advanced until it includes nearly all of North Carolina east of the Blue Ridge, and has even crossed the James River in Virginia, It has never heretofore been doubted that the contagion of Texas fever was destroyed by frost and coidd not survive the winter in sections where freezing weather occurred ; but it is now demonstrated that this view is incorrect, that in many parts of the infected district it resist^; severe winters, and that as it advances northward this power of resist- ance is gradually increased. These extremely important facts show the necessity of continuing'this mvestigation until we have acquired the means of controlling, if not of exterminating, the contagious diseases which are on the increase among our animals, and which threaten to destroy the great advantage which the farmers of this country have heretofore enjoyed in the live-stock industry. Detailed reports of the results of the work undertaken and prosecuted during the year will be submitted hereafter. The call upon the department for veterinary investigation, during the year 1882, has been very great. The sudden and unaccountable out- break of disease among domestic animals has been a matter of great anxiety in many portions of the country. As the number of our cattle, horses, sheep, and swine increases, the outbreak of contagious diseases also increases. The annaal disturbances, moreover, incident to the work and confinement to which all classes of animals are subjected, which are held in immediate domestication, also increase as our population grows more and more dense. To meet the calls which this state of affairs creates, I kave been obliged to dei)end on such tempoi'ary and outside service as I could ob- tain. The absence of a well-organized veterinary division has been severely felt in the department, and it is of the utmost importance that such a division should be established, in which all investigations can 1002 BEPORT OF THE COMMISSIONER OF AGRICULTURE. bediiTotedby a competent bead, and on which the owners of live stock can call for counsel and aid. It is important to know the precise extent of existing disease. It is important to know how to guard against the spread of contagion and how to provide for its removal. It is important to know, if possible, the most economical remedies for disease, and how best to avoid the vast annual loss of animals from bad treatment and exi)osure. It is important also to ascertain, by the most careful inves- tigation, the breeds best adapted to different localities and purposes in our country. To do this a well-organized division of veterinary inquiry an>«10NEK OF AGRIOULTL/'KE. ost fims, insect ravagt\s, experiuicuts iu tiiubtT plautiug upou the col- lege-farm, at Lincoln, Nebr., fbie«ts iu Europe, and the expensive and wasteful use of timber as a fencing material. A report has also been submitted on European Bchools of forestry, and forestry experiment stations. Large numbers of circulars have been issued asking for infor- mation with regard to railroad ties, and the answers returned are being examined and arranged. Circulars have also been issued inquiring into tree-planting in the prairie States, the trees selected, and the method of nianagement. The Hon. F. P. Baker, of Topeka, Kans., has also been employed to investigate the condition of forests in the prairie States, and in the re- gion lying west of the Mississippi and east of the Rocky Mountains. This preliminary report has been made, and contains valuable views upon the timber-culture act, the possibility of forest culture in the far West, with a sketch of what has been done, and some suggestions as to what should be done. Mr. Baker urges the absolute necessity of imme- diate action by Congress in regard to the timber-culture act, to make it efifective. He proposes to visit the regions where forest fires have done so much damage and investigate the causes, and the best means of con- trolling them. This report will be published as a special, and laid before Congress at an early day. ARTESIAN WELLS. Li accordance with suggestions made by the Commission employed last year to select ijroper locations for artesian wells, the Hon. Horace Beach and Professor White, two of those Commissioners, were employed to select what seemed to them proper places for boring the wells. They have located a well 112 miles easterly from the city of Denver, upon gov- ernment land, near the station of Akron, on the Burlington and Mis- souri Railroad, in Colorado. A second well has been located 177 miles southeasterly from Denver, upon government land, near the line of the station of Cheyenne Mills, on the Kansas Pacific Railroad. Each loca- tion has been made with reference to the probability of supplying water to good lands, and so as to be useful, if successful, for irrigating pur- poses and the watering of stock. Agreements have been made for the supply of water for engine use in drilling, with the railroads alluded to, free of charge. The sites selected have been withdrawn from entry under homestead, pre-emption, and timber acts. • Contracts have been awarded to James A. Fleming & Co., of Denver, Colo., for the sum of $14,000, for drilling both wells to the depth of 2,500 feet each, if required, the contractor to furnish aU the materials necessary to do the work and to pay for the labor employed. The wells are divided into sections, as follows : The first thousand feet and the balance of the 2,500 feet into 500 feet sections, the Department of Agri- culture retiiining the right to stop the work at any distance below 1,000 feet, and pay pro rata for the distance boi^d. The machinery has been placed on the ground, and the work of drilling has already commenced. REPORT OF THE COMMISSIONER OF AGRICULTURE. 1005 WOOLS AND FEBERS. The report of Dr. McMnrtrie on wools and fibers has been presented, and, in connection with a paper on the subject prepared by Miss Clara P. Ames, of Boston, and forwarded to this Department by Hon. Edward Atkinson, will soon be published. In connection with the examination of the fineness of fiber a careful study has been made of the internal structure of the fibers of pure bred and grade sheep to determine the differences arising- from breeding and management, and their effect upon the strength, elasticity, and felting properties. The instruments for testing the wool fiber have been greatly improved, and tha experi- ments entered upon by this division of the department are of great in- terest. It is intended that the testing of cotton fiber will be pursued in the same manner. DEPARTMENTAX, REPORTS. In addition to the annual report of the Department for the year 1880 and 1881, of which 300,000 copies each were ordered printed, the fol lowing special and miscellaneous reports have been issued since July 1, 1881: SPECIAL REPOKTS. Xo. of copies printcil. No. 34. Contagiousdiscases of domestic animals. 391pp., octavo. Illustrated. .')0, 000 No. 37. Condition of crops, June and July, 1881. 24 pp., octavo 10,000 No. 38. Conditou of crops, August, 1881. 24 pp., octavo 10,000 No.39. Condition of crops, September, 1881. 30 pp 10,000 No. 40. Condition aud needs of spring-wheat culture in the Northwest. By C. C Andrews. 100 pp., octavo 10,000 No. 4J. Estimated production of cereals of the United States for the year 1881. 8 pp., octavo 10,000 No. 42. Report on the condition of winter grain, number and condition of farm animals, &c., April, 18d2. 62 pp. .octavo 10,000 No. 43. Report on tho condition of winter grain, the progroes of cotton and corn planting^ rate of wages and labor, &c.. May, 1832. 20 pp., octavo 10,000 No. 44. Report upoa the acreage and condition of cotton, the condition of all cereals, and the area of spring wheat, &c., Juno, 1882. 14 pp., octavo 10,500 No. 4.'). Report upon the area and condition of corn, the condition of cotton, and of small grains, eorghnm, tobacco, &c., July, 1882. 33 pp ll.OlKt No. 4G. Report upon the condition of cotton, of spring wheat, fruits, &c. ; also freight rates of transportation companies, August, 1882. 54 pp., octavo ll.OOfi No. 47. Cliniato, soil, and agricultural capabilities of South Carolina and Georgia. J?y J. C. IFemphill. G5 pp., 1882, octavo 10,000 No. 48. Silos and ensilage. A record of practical tests in several States aud Canada, 1.S82. 70 pp., octavo 15 goi^i \o. 4'J. Report ujwn the condition of corn and cotton, of potatoes, fruits, «fcc.; also freight rates of transportation companies, September, 1882. 48 pp., octavo ." 11,000 No. 50. The dissemination of Texas fever of cattle, and how to control it, 1882. 14 pp., octavo 12,000 No. 51. Report npon the yield of small grain, condition of com, cotton, potatoes, and tobacco; also freight rates of transportation companies, October, 1882. .^8pp., octavo 12,000 No. 52. Report on yield per acre of cotton, com, potatoes, and other field crops, ^vith comparative product of fruits; also local freight rates of transportation companies, November, 1882 11,000 1006 REPORT OF THE COMMISSIONER OF AGRICULTURE. MISCELLANEOUS REPORTS. No. of copies printed. Preliminary Report, Commissioner of Agriculture, 1881. 58 pp. , octavo 8, 000 Fertilizers: co-operative experimenting as a means of studying the oflfccts of fertilizers and tbo feeding capacities of plants. By Prof. W. O. Atwater, 1882, 33pp., octavo 1,500 Florida ; its climate, soil, productions, and agricultural capabilities, 1882. 98 pp 10,000 Report on the climatic and agricultural featiires, and the agricultural practice and needs of the arid regions of the Pacific slope, «S:.c., 1882. By E. W. Hil- gard, T. C. Jones, and R. W. Furnace. 182 pp 2,500 Proceedings of a convention of agriculturists, held in the Department of Agri- culture, January 10 to 18, 1882. 204 pp., octavo 10,000 Artesian wells upon the Great Plains: being the report of a geological com- mission appointed to examine a portion of the great plains east of the Rocky Mountains, and report upon the localities deemed most favorable for making experimental borings, 1882 3,500 In addition to the above, there has also been prepared the following reports, which will be published as soon as the necessary funds are available : The meat question analyzed. By Dr. G. Sprague, Chicago, 111. Account of field experiments with fertilizers. By Prof. W. O. Atwater, Ph. D. Report of the proceedings of the convention to promote the sheep and wool indus- try held in Philadelphia, Pa., September 22, 23, and 24, 1882. DISBURSING OFFICE. The following table exhibits in condensed form the appropriations made by Cougress for this department, the disbursements and unex- pended balances for the fiscal year ending June 30, 1882 : Title of appropriation. Salaries Collecting statistics Laboratory Purchase and distribution of valuable seeds Experiments in the culture of tea Experimental garden Museum Eumiture, cases, and repairs Library Investigating the history of insects Examination of wools and other animal fibers InvostiKating the diseases of swine, &;c Keclamation of arid and waste lands Report on forestry Postage ,. Contingent expenses Improvement of grounds Transporting, &.C., agricoltural and mineral specimens from Atlanta, Ga Purchase and distribution of seeds to overflowed districts. •Experiments in the manufacture of sugar Building for the diaplay of agricultural implementa Printing and binding Amotmt ap- propriated. $79, 500 00 10, 000 00 6, 000 00 80, 000 00 10, 000 00 7, 000 00 1, 000 00 4, 000 00 1, 000 00 20, 000 00 5, 000 00 25, 000 00 10, 000 00 5, 000 00 4, 000 00 10, 000 00 8, 000 00 5, 000 00 20, 000 00 35, 000 00 10, 000 00 11, 000 00 Amount dis- bui-sed. $79, 491 89 10, 000 00 5,811 85 79,991 53 8, 743 37 6, 908 25 1, 000 00 4, 000 00 973 85 19, 998 94 5, 000 00 22, 443 89 10, 000 00 4,941 00 4, 000 00 10, 000 CO 8, 000 00 893 86 20, 000 00 32, 333 75 10, 000 00 9, 156 42 Amount un- expended. $8 11 188 15 8 47 1, 256 63 31,75 26 15 1 06 2,556 11 4, 106 14 2, 666 25 "i,'843'53 *Thi9 appropriation has been exhausted since the close of the last fiscal year. Very respectfully, GEO. B. LOEI^^G, Commissioner of Agriculture. IN33EX. A. Page. Academy, Military, statement of the Secretaiy of War concerning. 306 Naval, report of the Board of Visitors to 542 statement of the Secretary of the Navy concerning 478 superintendent of the, report of the 510 Adjutant-General of the Army, reports of the 334, 361 Adjutant-Geaeral's Department, report of the Secretary of War concerning 306 Agriculture, remarks of President Arthur concerning 22 report of the Conunissioner of 991 Alaska, statements concerning, by President ^Vrthur 22 the Secretary of the Treasury 71 Alexander, D. S., Fifth Auditor of the Treasury, report of 272 Almanac, Nautical, report of the Superintendent of the . — 520 American ship-builtling, remarks of President Arthur concerning 18 Annual message of the President to Congress 3 Architect of the Capitol, report of the 756 Arctic expeditions, remarks of the Secretary of the Navy concerning 403 War concerning 321 statement of the President concerning 16,17 j\jming and equipping the militia, remarks of the President concerning 14 Secretary of War concerning. _ 309 Armstrong, W. H., Commissioner of Kailroads,-report of 671 Army, remarks of President Arthur concerning the 14 report of the General of the 327 suggestion of the Secretary of War concerning the — _ _.305, 324 Arlington Cemetery, remarks of the Secretary of War concerning 312 Artesian vrells, remarks of the Commissioner of Agriculture concerning 1004 Artificial limbs and appliances for soldiers 314, 408 Artniery militia, remarks of the Secretaiy of War concerning 324 school at Fortress Monroe, remarks of the Secrettiry of War concerning. 306 Assets and liabilities of the Treiusury, statement of 112, 114 Atchison, Topeka and Santa Fti Kailroad Company 580,724 Auditor of the Treasury, report of the First 224 Second _ 231 Third... 2J3 Fourth 256 Fifth .- 272 Sixth 280 B. Banks, national 41, 117 dividends of national 169 redemption of notes by national 42, 178 savings, organized under State laws 120 taxation of national 43, 162 1007 1008 INDEX. Page. Barracks and quarters, Army — ^- 331, 3i>0, 395 Marine - 539, 444,545 Beardsley, Charles, Fonrth Auditor of the Treasury, report of. 256 Bem't, Stephen V., Chief of Army Ordnance, report of 443 Blank Agency esliraates 835, 85;{ rUackfan, Superintendent of Foreign Mails, report of 945 rUunt, A. J'., Brevet Colonel, report on the Leavenworth Military Prison.. _ 4;J4 Board of Visitors to the Naval Academy, report of — .542 Botanical divLsion of the Department t)f Agriculture 9.')2 Bonds, redemption of, remarks of President Arthur concerning the _.. st.atement of the Secretaiy of the Treasury, concerning 32 Boys, training for seamen 477 ]U-ooklyn, New York, navy-yai-d 490 Briice, Blanche K., KegLster of the Treasury, report of.. 297 Bnilding, Departments, construction of, report on 431 Buildings, public 72, 323 Building, ship, remarks of President Arthur concerning 18 Burchard, Hor.atio C, Director of the Mint, report of 182 Bureau of Construction and Kepairs, report of the Chief of the .'>30 Engraving and Printing, remarks of the Secretary of the Treasury con- cerning 72 Equipment and Recruiting, report of the Chief of the 497 Internal Eevenue, report of the Commissioner of the 79 Military Justice, report of the Chief of the 370 Na\igation, report of the Chief of the 499 Ordnance, report of the Chief of the Army 443 Provisions and Clothing, report of the Chief of the Navy 537 Steam-Engineering, rejwrt of the Chief of the 522 Yards and Docks, report of the Chief of the 489 C. Cadets, at the Annapolis Naval Academy 473, 544, 546, .548 West Point Militaiy Academy 306 Capitol, the remarks of the Secretary of the Interior concemtng the 59;*. report of the Architect of the 7.i6 Casey, Thomas Lincoln, Lieutenant-Colonel, report of, on the Department build- ings . ___ 4:51 Cemeteries, national military ,, 311. 394 Census, statement of the President concerning the 21 Secretaiy of the Interior concerning the . 590 Chandler, William E., Secretaiy of the Navy, rei)ort of 4.53 Charlestown navy-yard 489 Chili, relations with, remarks of President Arthur concerning 7 China, relations ■Rath, remarks of President Arthur concerning 5 Civil service, remarks of President Arthur concerning the 23 the Commissioner of Internal Eevenue on 87 Claim agents 311, 398 Claims against the government _ 47, 247, 389, 393, 406, 407 for quartermaster's stores _.. . . 398 Clark, Edward. Architectof the Capitol, report of— . 756 Clothing and equipage of the iVrmy 39:1 Coast and Geodotie Survey, statement of the Secretary of the Navy concerning the . 4T5 statement of the Secretary of the Treasury concerning the 65 INDEX. 1009 Coin and paper cun-oucy, distribution of 13-"i Coinage, statement of the Director of tlio Jlint couoeruinj; 1? i President concerning 10 .Secretary of the Treasury couceminK 3S, I'l Treasurer of tlie United .States concrniing 'JUd Collisions at sea, prevention of, remarks of the President concemiug the 8 Columbia Institution for the Deaf and Dumb 597 ( ommercc and navigation, remarks of the SceretarA' of the TroaHury concerning. . 5!) Commerce, relations of the Navy to, remarks of the .Secretary on the... /|7!t Commissary-General, report of the o9!) Commissioner of Agriculture, report of the !l9l Customs, rei>ort of the. "JlO Indum Aflau-s, report of the 01:5 Internal Ii'evenue, report of the 7i> Land Office, report of the fiOl) Pensions, report of the 7;J1 liailroads, report of the 6'7l Commissioners of .Soldiers' Home, report of the irii; Comptroller of the Currency, report of the-.. 117 I'irst, of tho Treasury, report of the 210 Second , of the Treasury, report of tho 217 Confederate ^var-reco^ds, remarks of the Secretary of War concerning the :Wl] Conger, P. II., Sn]X'rintemk'nt YelloAvstone National Park, report of 7n"> Contagions of domesticated animals, remarks of the Commissioner of Agriculture on - 99t Crane, C. IL, Snrgeon-General of the Anny. 40r' Currency, reiwrt of the Comptroller of the 117 Customs, Commissioner of, repoil of the , :21',' statement of the Secretary of the Treasury concerning the revenue from -W Customs eases, the triitl ol". remarks of the Secretary of the Treasury concenung- . 17 D. Dtad lettersin the ro^t-tJlliic IXpartuunt.. 811 I)e;»f and Dumb, Columbia luslitution for the r)ft* Debt, public, statement of the Set-retarvof tlie Treasury oone the Secretary of the IVeasury cimeerning ";: Divide nds of iwlional b.iiiks _ Id!* Drum, IJichard C. Ailjutant-Gcneral, re^wrts of :}:>{, :{(j I Dudley. William W., Commissioner of Pensions, reiwrt of. 7ol Duties on imports, remarks of the Secretary of the Trca.sury on .").". K. Jjtlucation in the Army, remarks of the Ailjutaut-Geucral ou :!;;7 Education, statement of the Secretary of the Interior eonceniing r>(>l-.">6U War concerning- - oI5 61 Alj 1010 INDEX. Page. Ela, J. H., Sixth Auditor of the Treasury, reports of.. .280,957 Elections, remarks of the President concerning __ 25 Khiior, Ivichard A., Second Assistant Postmaster-General, report of— 840 ]':n<;ineer Department, remarks of the Secretary of War concerning the 316 Engineers, report of the Chief of Aniiy 435 Enlistments in the Army .._ - - - --". 316, 334 English, Earl, cliief of Bureau of Equipment and Recruiting, report of 498 Engraving and Printing, Bureau of, remarks of the Secretary of the Treasury con- cerning the Ti Entomological Division of the Department of Agriculture, statement of the Com- missioner of Agi'iculture concerning the 995 Epidemic diseases, preventing the spread of, remarks of the Secretary of the Treasury concerning 70 P^quipment and Recruiting, Bureau of, report of the chief of 497 Estimates for the fiscal year ending June 30, 1882 27 1883 30 1884 _ 31 Executive appointments, statement of the President concerning 24 Expenditures for the fiscal year ending June 30, 1882. _ 27 1883. 30 1884. _. 31 Exports and imports 60 Extension and imiirovement of the Capitol gi'ounds 593 F. Fermented and distilled liquors, internal-revenue tax on 88, 100 Ferriss, Orange, Second Auditor of the Treasury, report of 231 Finances, remarks of President Arthur concerning the 8 Folger, Charles J., Secretary of the Treasury, report of 27 Forage for the Army 310,388 Ford, S. Calvert, inspector of gas and meters, report of 795 Foreign coins, value of. 190 commerce, statement of the Secretary of the Treasury concerning 58 mail service 816 Forestry', remarks of the Commissioner of Agriculture concerning 1003 statement of President Arthur concerning 22 Fractional paper currency, statement of the Treasurer of the United States con- cerning 290 Free del i very of postal matters, statement concerning 802 Freedman's Hospital, report of the surgeon-in-chief of 762 statement of the Secretary of the Interior concerning 595 Funding the puhlic debt, remarks of the Comptroller of the Currency conceniing. 127 Secretary of the Treasury concerning... 43 G. Gallaudet, Edward M., President of the Institution for the Deaf and Dumb 763 General of the Army, report of the 327 Geodetic Survey, statement of the Secretary of the Treasury concerning 65 Geogiaphical and Lake Survey maps 441 Geologiciil Survey, remarks of tlie Secretary of the Interior concerning... 588 GilfiUan, James, Treasurer of the United States, report of. 281 Gold bullion _ _.. 39,136 certificates, the issue of, remarks of the Secretary of the Treasury concerning. 36, 37 INDEX. 1011 H. Page. Hancock, "Winficld S., Major-General, of the Army, report of. 357 Hattou, Frank, First Assistant Postmaster-General, report of 846 Hazen, A.. D.,^Third Assistant Postmaster-General, report of 918 Health of the Army - 410 Navy 472 Horses, mules,, and oxen purchased for the Army 310 Hospital, Freedman'a, report of the... 762 • statement of the Secretary of the Interior concerning 595 Insane, report of the Board of Visitors to the 775 statement of the Secretary of tlie Interior concerning 596 War concerning 308 Marine, statement of the Secretary of the Treasury concerning 66 Hospitals, appropriation for . 396 Hot Springs reservation 598, 603 reiwrt of the Superintendent of the 788 Howe, Timothy O. , Postmaster-General, report of 799 Hydrographic Office, Superintendent of the, rejiort of 509 I. Immigration to this country, remarks of the Secretary of the Treasuryconcemlng.. 68 Imports and exjwrts 10, 60 Indemnity funds, remarks of President Arthur concerning 5 Indian Aflairs, report of the Commissioner of.. 1 613 statement of the President concerning 620, 21 Secretary of the Interior concerning 555 War concerning 325 Indian agents _ 615 Indian education, remarks of the Secretary of the Interior concerning 565 prisoners, supplies issued to 405 reservations, remarks of the Secretary of the Interior concerning 560 titles to lands 558 trust fund 561 Infantry and Cavalr;^ School, at Fort Leavenworth, remarks of the Secretary' of War concerning 306 Ingalls, Rufus, Quartermaster-General of the Army, report of 12^ Insane Asylum, report of the Board of Visitors 775 statement of the Secretary of the Interior concerning the . 596 War concerning the 3O8 Hospital. 367 Inspector-General of the Army, report of the 340 Inspectorof Gas and Meters, rejiortofthe 795 Interior Department huilding 59I Interior, Secretary of the, report of the 555 Internal Kevenne, remarks of the President concerning H report of the Commissioner of 79 statement of the Secretary concerning 47 Interoceanic Canal, remarks of the Pre.«iident concerning the _ 3 Internal ta.xes, reduction of.. 4g Invalid pensions ^q- J. Japanese Government, relations witli, rrniarks of President Arthur concerning.. 5 Jeannette expedition, remarks of the Secretary of the Navy concerning the 463 1012 INDEX. Page. Johuaon, Henry C, Coniinissioner of Cii.stoms, report of _ 219 .Jolinson. r. C. Chiof Sifitiul Ofilwr, report of. -. GIO Judge-Advorfitc-Gonoral of tho Army, report of the .._- 370 Keightly, E. \V., Third Auditor of the Treasury, report of 21:5 Kellcy, B. F., Superintendent of Hot Springs Reservatiou, report of. 788 Knox, John Jaj-, Comptroller of the Currencj', report of 117 L. Laud-grant railroad.s - .-..21, 310, 392, 400, 581 Lands, public, statement of the Secretary of the Interior concerning ."569 La wrence, William, P'irst Compt roller of the Treasury, report of 210 League Island, navy-yard at 491 Leavenworth military prison 349, 424 Legal-tender notes, statement of the Comptroller of the Currency concerning.,. 126, 171 Secretary of the Treasury concerning 37, 72 Life-vSaving Service 63. 477 Light-house eetablishment, remarks of the Secretary of the Treasury concerning- (H Light-house Service and Coast Survey, transfer of, remarks of the President con- cerning 17 Lincoln, Robert T., Secretary of War, report of ^504 Loring, G eorge B. , Commisvsioner of Agriculture, report of 1>91 M. McCawley, commandant of the Marine Coii)s, report of 53d MacDonald, C. F., Superintendent Money -Order System, report of 938 McDowell, Irvin, Major-General, report of 363 McFarland, N. C, Commissioner of the General Land Office, report of 600 Macfceley, Eobert, Commissary-General, report of 399 3Iail depredation, statement of the Postmaster-General concerning 817 traiLsportation, remarks of the President concerning ^ 18 Major-General of the Army, report of 357 Maps, Army 441,442 post-route 817 Signal-Service ._ 502 Mare Island, California, navy-yard at _ 49:; ;Marine Corps, remarks of the Secretary of the Navy conceniiug the 472 hospitals 488 Medical Dei>artment, Army, report of the Surgeon-General of the 40S ptatement of the Secretary of War concerning the .. 313 Medical Museum and Library of the Army 415-417 Merchant mariHe, decline of the, remarks of the Secretary of the Xavy concerning the _ 4S0 :Messag© of the President to CongreSi=i, the annual 3 Mexico, relations Avith, remarks of President Arthur concerning 6 ^lilitary Academy, statement of the Secretary of War conceniing 306 cemeteries _ 311,394 coU^es 306,333 .Justice, Bureau of, remarks of the Socretaiy of War concerning the 309 l>ost« _ 305,306,333,333 prison at Leavenworth, Kansas, ioi>or t concerning the 424 INDEX. 1013 Pa -I. Military prison at LoavonATortli. Kansas, statement of the Secretary of War con- cerning tlie ?>08 reservatiou-s •'^''' sites in Texas "'i'^ -Militia, arming and equipping the 419 Mint, report of the Director of the l*^-- Miflsissippi Kiver, improvement of the ir>, 141 Money-<)rder postiil system, report of the rostmaster-Geueral concerning •"> Monitors, donble-turretcd, remarks of the Secretary of the Navy conceniing 4T0, 472 report of the Chief of the liureauof Steam-F.nijiueering concerning. - -- "'"-9 N. National-hank notes, redemption of, remarks of tlie Secretaiy of the Treasury concerning the •''1 National banks, dividends of Ifi" redemption of •-!•.") remarks of the Secretary of the Treasury concerning 41 taxation of '"^ 1*'' National Board of Health, remarks of the Secretary of the Treasury concerning the . 7( t National military cemeteries, remarks of the Secretary of War concerning oil Nautical Almanac and Anieriaiu Ephemeris '>0-> Naval Academy, remarks of the Secretary of the Navy concerning 473 report of the I'.oard of Visitors of the •'»4:'2 Superintendent of the «>4U Advisory Board, report of the •>36 affairs, remarks of the President concerning ll> report of the Secretary of the Navy on -15;; asylums 174, 495 bureaus 474 cruising stations 46;2 wiuipment and recruiting 4C9 expenditures 1 474 hospi ta 1 improvements 462 hyd rography oO'i Jeanuette expedition 4G3 Marine Corps 47'2 medicine and surgery 47:i Observatory .* _ .173 Signal Service oOl steam-engineering 46I( squadrons ._ 453, 4G3 yard a and docks 4 69 Navy, reconstruction of the, remarks of President Arthur coucerning the 17 Navy-yoids, report on the, at — Brooklyn 490 Charleston _ _ 4^9 Key West 494 Le;»gue Ishuid 491 Mare Island 493 Norfolk 492 Pensiicola 492 1014 INDEX. i Page. Navy-yards, report on the, at Portsmouth, N, H -- 489 "Washington - 491 Navy -yards, workmen in, remarks of the Secretary of the Navy concerning _ 459 Newcomb, Simon, Prof. , Superintendent of Nautical Almanac, report of 520 Newspaper postage, remarks of the Postmaster-General concerning 818 Nichols, Edward T., Chief of Bureau of Yards and Docks, report of. 489 ISftcholson, "VV. L., Topographer Post-Office Department, report of 953 Norfolk, navy-yard at * - 492 O. Observatory, Naval , Superintendent of the, report of-. 504 Ocean mails, statement concerning the 81G Oflicers of the Army, retirement of, remarks of the Secretary of War concerning.. 324 Official salaries, remarks of the Secretary of the Interior concerning. 572 Ordnance, Army, reiwrt of the Chief of 443 statement of the Secretary of War concerning 318 Navy, statement of the Secretary of the Navy concerning 468 Oregon and California Railroad Company.. _ 709 P. Pacific Railroad, sinking fund, remarks of the Secretary of the Treasury concern- ing - 29 Pacific Railroads, report of the Auditor on 719 Paper currency, remarks of the Secretary of the Treasury concerning 36 Patent Office, statement of the Secretary of the Interior concerning the 573 Patents, the Commissioner of, remarks of the Secretary of the Interior on report of. 573 Pay of the Army, remarks of the Secretary of War concerning 315 Paymaster-General of the Army, report of the 421 Pensacola, navy-yard at 492 Pensions, Army ^^307,411 Navy 585 report of the Commissioner of 734 ' statement of the Secretary of the Interior concerning 585, 586 Treasury concerning 53 Political assessments, remarks of President Arthur relatingto 24 Polygamy, remarks of President Arthur concerning 21 Porter, David D., Admiral, report of 549 Portsmouth, navy-yard at 489 Postal money-order system 815 savings depositories _ 821 service, remarks of President Arthur concerning 19 telegraph system 821 Postmaster-General, report of the 799 President, annual message of the, to Congress 3 Presidential elections, remarks of President Arthur concerning 25 Price, Hiram, Commissioner of Indian Aflfaiis, report of C13 Prison, military, at Leavenworth, report concerning the 424 Private land claims, report of the Secretary of the Interior concerning 571 Public buildings, remarks of the Chief of Engineers concerning 440 report of the Secretary of the Interior concerning 573, 593 statement of the Architect of the Capitol concerning 756 Secretary of the Treasury concerning 72 INDEX. 1015 Page. Public debt, reduction of the, remarks of the Secretary of the Treasury concemuig. 42, 49 Public lands, statcmeut of the Secretary of the Interior conceruiug oG9 Public moneys, statement of the Secretary of the Treasury concerning 45 Purvis, C. B. , Surgeon-in-chief of the Freedman's Hospit;il 7G2 Q. Quartermaster-General, report of the ^•'^l Quartermaster's Department, statement of the Secretary of War concerning 309 Quarters and barracks, statement of the Quart emiaster-Geueral concerning 31)5 li. Railroad, Pacitic, Atlantic and Central ._ 719 Central Branch Union 581,714 Kans;is G97 Missouri 712 Northern ._. _ 1 578,702 Sioux City and. -_ 581,728 Southern — 579,720 Texas 71G Union 575, 57G, G94, 714 Railroads, statement of the Quartermaster-General concerning the 391 Secretary of the Interior concerning the 574 Railroad transportation of the Army 391 Ramsay, F. M. , Superintendent of the Naval Academy, report of 540 liatiou, the Army 312,405 Rauiu, Green B. , Commissioner of Internal Revenue, report of 79 Receipts and expenditures of the government 29 Records of the war of the rebellion, preparation of the 323 publication of, the report of 423 Recruiting for the Army 340 Navy 498 Redeemed securities, destruction of, remarks of the Secretary concerning the 72 Redemption of national-bank notes 42,51 United States bonds ...1 32 Reduction of taxes, remarks of the Secretary of the Treasury concerning the 48 Refunding cortiticates 33 Register of the Treasury, report of the 297 Ragistercd letters, remarks of the I'ostnuister-Gencral concerning 815 Rep-irt of the Adjutant-General of the Army ^ 334 Architect of the Capitol extension 75G Auditor oftbi' Tiv:i-;my, First 224 Second _ 231 Third 243 Fourth ._ _ 25G Fifth 272 Sixth „ 280 Board of Visitors to the Ins;iue Asyhim 775 Naval Aiadeniy 512 Chief of Engineei-s i'.lTt the Bureau of Ck)nstnu-tiun and Ifepair, Navy 530 Eiiuipment and Kecruiting, Navy 497 Military Justice, Army 370 ii'avigation, Navy , , 499 1016 INDEX. ra;;'c. J,'('1i(m( ol'tlic CliiiroC 11?l> !'.nvf;m of Ordnance, Army --- 4^1:5 I'rovi.siojisi and. Clot lii ng, Navy 537 Steam Engi neci'iii g, Na\-j' - 5212 Yards and Doeks __ Af<9 ChicfSignalOiriccrofthoNavy 51!) Commandant of the Marine Coiiis — 5:!k Commi.ssarj'-Gcncral of Subsistence :VJ9 Commissioner oi' ,\griculture — 991 ( 'ustoms 219 Indian Ailairs Olo Jnternal Ivcvenue 79 Land Ofilce GO!) Pensions 7:M Jlailroads 071 Commissioners (jf Soldiers' Home - 120 Compti'ollerof the Cnrreucy 117 Treasury, First. 210 Second 217 Director of tlu' i\lint 182 Union Pacific liailroad (>94 G eneral of the A rmy of the United States 327 . ou the LeaveUAVorth military iirisou 333 Hydrographer to tlie Bureau of Xavigation 509 Inspector-General of the Army 342 Inspector of Gas and Meters 795 Judge-Advocate-General 370 Lieutenant-G eneral of the Army 353 ]\Iajor-General of the Army 357 Paymaster-General of the Army 421 Postmaster-Geueral 799 President of the Deaf aud Dumh Institution 597 l^esident of the Naval AdAisoiy Board 536 Publication of war records 423 Qilartcrmaster-G eneral of the Army _ d^l Kegister of the Ti-easury 2!)7 Secretary of the Interior 555 Navy 453 Treasury _ 27 AVar 301 Signal Oflieer of the Na\y 51 9 Supcrintendetnt of the Blank Ag^icy .- 835, 853 Foreign Alails 945 Hot Springs Reservation 788 Ilydrographic Office, Navy 509 Institution for the Deaf and Dumb 703 Jloney-Order Sv-stem __ 938 Nautical Almanac 520 Naval Academy 540 Observatory 504 Railway Mail Ser\-ice 895 Yel lowstone National Park 790 Surgeon-iu-Chief of the Frecdman's Hospital, reiwrl oi*. _ 702 SuTgeon-Geueral of the A nn v 40S INDEX. * 1017 I'age. IJcport of tlic Topographer of the Post-Oflice Dt-partinent 95:5 Treasurer of the Ignited States •J'-'l Visitors to the Insuiie Asylum TTf) licserve of the national banks .jr2,2S} l^osunipliou of S|»ede payments, remarks of the Comptroller on 1"'(> President on 10. 11 iSeoretaiy on '■'' Treasurer on '2Mo llevouue from customs for the fiscal year 4G llevennc marine, statement of the Secretary of the Treasarj', concerning the H'* Reynolds, Poljert M. , First Aiiditor of the Treasur\*, report of - '22 1 Iwifle jnactii* in the Army 341 Kiver and harbor improvements, remarks of President Arthur concerning 11 roi)ort of the Secretary of War conc« rning :UT Uochester, William I>., Paymaster-fJencral of the Army, report of.- I'il JRowan, S. C, Admiral. Superintendent of the Obsen'atory, report of 604 S. Sacket, 1). 15., Inspeotor-( k-neval of the Army, report of 342 San Carlos reservation, reniarks of the Secretary of the Interior concerning the.. .'jof. Savings banks 120, 156, 157 Scott, Capt. Thomas X., report of, on the publication of war records 42.'5 Sea-c«ast defenses -_. -. 14, 316,436 Sheridan, P. H., Lieutenant-CJ Shennan, W. T., General of the Army, re)x>rt of 327 Ship-buildiug, remarks of President Arthur concerning 18 Shock, W. ]{., Chief of the Bureau of Steam Engineering, re^wrt of 522 Shufeldt, K. W., President of Xaval Advisory Board, re^wrtof 536 Signal Coi-ps 305 ^Signal Service, remarks of the Secretary of War concerning the 321 Silver bullion 39, 41, 185 certificates, statement of the Secretary of the Ti'easuiy concerning 35 coinage _ _ 10, 11, 35, 36 remarks of the Direi'tor of the Mint on 182 President on 10, 11 Secretary of the Treasury on 3S United States Treasurer on 288, 290 Signal OfScer of the Xa\'j', report of llie Chief 51 9 Sinking fund, remarks of the Secretary of the Treasury concerning the 28 statement of the Secn-tary of the Interior concerning the 577 Six jxT cent, and five per cent, bonds, statement of the Comptroller of tlie Ciir- reuiy concerning 127 Smith, J. A., Chief of the Bureau of Clothing and Provisions, rejiort of 537 Soldiers' Home, Commi.^sioners of the, report of the 426 remarks of the Secretary of War concerning the 30S South Pass of the ^lississippi Piver, improvement of the 318 Specie payments, statement of the Secretiiry of the Treasury concerning 36, 37 Trciisurer concerning '2"<5 Spirits, distilled, statistics concerning 96 Siiuadrons, remarks of the Secretary of the Navy ctmceming the 4©2 statement of l*resident Arthur concerning the 16 Stamps, internal -revenue, redemption of 89 post;il.vci>ort on 923 1018 INDEX. Pago. Standard silver dollar, fltatemeut of the Recrelary of the Treasury concernin ^AJiaAINft-]^^'^ ^vlOSANCElfj^ ^/Sa3AINf]-3WV ^IIIBRARYQ^ ^&Aav!iaii# ^vWSANCFlfj> UNIVERSITY OF CALIFORNIA LIBRARY Los Angeles This book is DUE on the last date stamped below. t . '^/SaJAINQ 3WV vvWSANCELfT> ^^^OFCAIIFO/?^ ^OFCAllFOff^ aWEUNIVER5'/a AINIV3WV "^OAavaaiH^ '^^OAHvaan-^'^ o ;au^ ANCElfXvj. 'Aa3AINn3WV ^lOSANCElfX;^ ^/ia3AINii3WV ^^l•LIBRARYQ;lOSANCElfX;^ %a3AiNn3\\> O ^ 5 ^/^aJAINll 3\Vv ^^OFCAllfO/?^ ^<9Aavaaii-^^' r\f.rAtirno., S^ <^^HIBRARYQ<■ . ^'clOSANCElfj> o ^^^lllBRARYQ^ ■^TilJONVSOl^ "^/Sa^AINO^Wv -^(tfOdllVJJO^^ ^OfCAllFO% .^MEUNIVER% o .>:lOSANCElfj> o %a3AiNn-3\\v ^OFCAIIFO%, >&Aava8ii-# ^>;lOSANCElf/^ A^tllBRARYQ^ ^ILIBRARYQ^^ "^/^ajAiNn-dWV^ %ojiivDjo'^ ^^ \WE UNIVERS/A o (^ ^OFCALIFO/?^ ^WUUNIV '^^^AUVaaiH^ o %1DNVS0V^ vj o ''^/^ilJAlNO ]\\V ^vj '^/SaiAINd 3\\V ^^^^lllBRARYQ/: .^.OFCAU ^'OAavagiii^'^