Newspaper of The New York Herald, December 6, 1861, Page 2

Newspaper of The New York Herald dated December 6, 1861 Page 2
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OUR POSTAL AFFAIRS. Postmaster General Z2 lair's Report to the President. Interesting Information for Let ter Writers. IVwr Oh'ick dki-ahtuknt, Her. 2, 1881. I Sin ? Ro, -poet iug the o) orations mid condition or thin de. partmont, during Hi ? past fiscal year, ending June 30, 1861 , I tiavu the honor to io|Kir< as follows:? AITOINTMKNT Of kick. Tho operai ioui of the appointment office, for the year ending June HO, 1861, show tho following result:? Tho whole number uf post ollicos in operation on tho 30th ol June, IKOO, was 2S.498. Tin* whole number on tho 30th June, 1861, wag 28,586. The not increase of post offices during the year ending the 301 h June, 1861, is 88. Tin' total number of post ofllccs at which appointment^ ?ro made by tho ProaiUout of tho United States, ou the 90th June, 1801, was 434. i Tho table (No. 1) Annexed to this report shows i >> Bumbor of each class of oftlcoe iu tho several States and Torritorios of tho Union. The ? ljoto number of cases acted upon during the last offici.il year, including tho ap|iointmont* ordered by the President of the United 8 tut on, was 10,638. Tho whole number of appointments made by the departmont durinS that your for all causes was 9,236. The number of ap. poiutmant* ordored by the President during thofum,, period wan 337. The classillcnlioa Of theso changrs by States will appoar in tho tablo (No. 2) and a summary o>' thetu in the tablo (No. 3) annexed to this report. The whole number of post ofllccs in operation in tho Uuited States, on tho 1st day of Docoruber, 18(11 , excluding tboso discontinued by spccial order, and including those suspended iiy the general orders of May and Juno last, was 28 ,6 JO SPECIAL AUBMTH, ROUTB AtlKTW ANP LOCAl AOFNT?. Tho number of spccial agents in tho employment of tho department on tho SO'.h of Juno last wob eixtoon. The extraordinary condition of tho country au<t the cxlgeti cies of tic service in certain Slates rouderod it necoss.u y to tocrcase this number, up to the present time, to twenty. During the last fiscal year tho numbor of route agents in the servico was four hundred and seventy lour, at an anuual cist of $37 "J 240. Tho number of local agents was forty, at an annual cost of $25,479. At the< I so of the year, on the 80th of June last, the number of route agents trim reduced to throo hundred and ninety two, at a cost of $'2J4,JG0. The number of local agents was roducod to thirty-live, at a cost of $10 ,710. Thes) agents are paid salaries generally ranging from four to eight hundred dollars per annum, and from tho large proportion of railroad trans]<orti< n h ive become an important and indispensable branch of tho service in dis tributing and despatching the mails. The social agents are the eye# and bauds of tho department, to detect and arrest violators of tho law, and to render tho mails a safe and r.tf.id moans of communication. In their selection i have endeavored to secure the qua! ties of integrity, saga city and oillcictiey. While the duties of route agents are dillbront, they are always of greater importation and more onerous than h commonly apprehended, aud re quire, to a great degree, tho qualities of character above described FORWCiN HAH. BUtVICK. Tbo aggregate amount of postage (sea, inland and foreign) on mads exchanged with tho United Kingdom, was $7 SO .274 67 Ho. do. Prussia..... 206,275 33 l)o. do. Trance 2"-'),;i94 31 l)o. do. Hamburg... 41,280 05 Do do. Bremen.. .. 36, MS 29 Do. do. Belgium.... 10,888 10 Total (Kiatageson European mails $1,362,036 70 Being a decrease from thu amount report J" od for tile preceding year of i 14, COS 55 The soa conveyance of these mails was p-r.ormed as follows. ? Pi/ l'it tied Males Mail Parke' t. Oftha New York aud Havre Steam ship Company f 105, 057 58 Of Vanderbllt's E iropean line 66,804 16 Of the Noi tii Atlantic Steamship Company 41,706 25 $203,657 99 li t Pireirjn Steameri Employ*! ar I'nitnl Suit/* Packet!. Of the Canadian line $169,803 42 Of tbo Liverpool and Now York and Philadelphia Steam.-liip Com piny 131,071 51 Of the North German Lloyd Com pany 112,748 18 Of the Now York and Hamburg Steamship Company 65,761 00 $479,384 11 By British Contract Mail Pad, 'is. Of the C inar.l lino $050,310 81 Of the t. ilwuy hue 28,683 79 678,994 60 Total $1,302,036 70 Of iIuh amount $SI4.444 39 was collected in the United States, and $547 ,bVJ 31 iu tho United Kingdom, i'ru sia, France, Hamburg, Bremen uml Belgium. K.xccss of collection Id tho United States, $260,852 OS. The cost of collecting which, in commission at United Stole* post oflices, at an estimated average of 40 percent, would amount to $106,740 83. Tho number ot letters and news|>aj ors exchanged in the mails betweon tlus country and Kuropo was as fol lows ? Letters sent from tho United States 3,086,121 Letters received from Kuro)>e 3.059,700 Total 6,146,821 Newspapers scut from the United States 2,484 ,367 Newspapers received from Kuropo 1,033,633 Total 3,617.990 It appears that the number of letters sent to Kurope exceeds the number received from Kuropo by 26,421. Tho excess iu the number of papers sent (Tom the United Mates over those received from Europe is 1 450, 724 The amount of letter postage on malls sent to Great Britain was $375,754 36; to Prussia. $141,612 07; to France. $106,46'' !'2, to Hamburg, $27,089 04; to Bremen, $19,713 31; and to Belgium, $5,358 59. Tola] sent, $675, ?97 29. On tho mails received from Groat Britain. $410,620 31; from Prussia, $124,663 31 ; from France. $113,034 :t9;from lUmb'irK. $1 1.171 91 . from Bremen, $17,229 9S: and from BoSglutn . $5,520 51. Total received, $086,030 41. Tin oxoos.i of postage ou - malls sent from tho United States to different countries of Kurope over that accruing on mails received from tho same countries was ns foj. lows ? Prussia $16,943 76 Hamburg 12,917 13 Bremen 2.483 33 Total $32,349 22 The cxcoss of postages accruing on mails received over thosu sont was as follows: ? Groat Britain 34.765 95 Fraud' 7,454 47 Belgium 170 92 Total $4l>,391 34 The weight of closed lotter mails was as follows: ? Prussian elosod mails received, 133,774>? ounces; cent, 149,572 "-j ouncop. Total, 283.347 ounces. British closed uiaiis for Canada, 42,068% ouuecs; Canada c'osed mails f?r Great Britain. 25.000% ounces. Total, 67,059 ounces. British and California closed malls received, 24,323% ounces; sent, 6,412?* ounces. Total, 30,741% ounces. British closed malls for Havan*, 8,922%. British ciuiei mails for Mexico, H24 % ounces. The amount paid Great Britain for the sea and territo rial transit of United States and Prussian cl< bed mails through the United Klndom was $121,408 55 %, and the amount received from Groat Britain for the sea and terri torial transit ol British closed mails through tho United Stales, was $38,322 63%. Balance due Groat Britain, on adjustment of accounts for tho year eliding Juno 30, 1861 $149,935 24% Balance iue to France (ttrst, second and third quarters, IHOO) 24,782 13 Balance due to Prussia: for the year ending June 30, 1860 41,252 47 Balance due to Broinen 18,073 13% IJalanco duo to Hamburg $16,749 63# Balance due the Unite! .-States on adjustment or accounts with Belgium, for the tlrst, se cond, third amhrourth quarters of i860, and first quarter of 1861 5,150 71 The am mils paid to the different lines of transatlantic s:eam?hi|m employed by this department, for service j.or f >rmod during the'year, under the provisions or tiie exist ing law, which limits the couij eusution to the sea and in laud poslMcns on the mails transported, if tho conveyance is by an Americau steamer, and to sea pottage oniy if by a foreign steamer, will appear by the table (N'o. 4) an nexed to this report. Tho total coet of this service was $392,887 03. Of th,s amount $157,174 09 was earned by American steamers, perpirmin, iweniy-tbreo round trips, at the soa and United States iula:.d postages, and $236, 718 54 by foreign steamers, performing eighty six round trips, at th* sea |>ostago only. Tho aggregate amount or postages on the mails ex changed between the United Wales and tho British North Amorican provinces during the year was $186,600 50, of which $90 304 07 was collected in this Country aud ijt) 696 43 in the British provinces. Tho United States postag< s on tho West India mails wos $5J,544 48, all of which lias been paid to the tlirt rent lines of American steamships conveying the mails to an J from Havana, Matanzas and St. Thomas respectively. Tiio United States postages mads forwarded to nnd received from Vera Cruz, Mexico, amounted to $4,370 08, which has been in like manner 1 i t to tlic steamers and sailing vessels performing the k i !rans|>ort?tlon between New Orient: a id Vera Cruz. Tiie United States postages on the correspondence for \v. i 1' d to an.i received from Central and South America i. i],ulco (M 'xico), by the California line ol steamers, \n < ua, during the year, amounted to J12.100 35. T> i *i;fornla mail service wns tran.-ferr, d from t is to the overland route on the 1st or July ' ilimns, O'ntral and South American inul , 1 by t!io California line of si amera ..v, i '' nits Dip compensation to i. ' i. 1 e m tils transported, Cor - ? 'C ol tlio .ine, h iving -t.ai.-es until ' o.ngrcss i- L , ?: lutkiug MVUtfU ivrv permanent provision " It in claimed by him that the postages 011 those mails fall far short of a fair mm proper 1 remuneration for the sorvico performed in their trans poriatlon. In view of the Importtnoo of keeping up a direct communx atlon with tbo Isthmus of l*ttiuuna und the countries on the Pacific coast of Central and South Amcnci, I respectfully recommend (ho subject to tbo early consideration of Congress. Additional article* to the United States and French Pofttal Convention of tho 21 of Htrcb, 1857, bavo boen mutually agreed upon, establishing new exchang ing offices, on tbo fcido of tlio United Slates, at l'ort I aid, Detroit and Chicago rospocti\e!y ; mid on the shlo of France, at Purls, and providing for an exchange of in ills by the Canadian mall tiackols plyl'ig between Liverpool and Portland, or between Liverpool and Kiver du Ia>^i{>; a copy of these articles aocmniiaulea this rep >rl (No. 6). Additional articles to tho postal convention with Prussia, of Iho same character, huvo also boou agreed upon with tbo general Post Office at Berlin, establishing, on the part of the Uuitod States, new offices of exchongo at Portland, lietroit and Chicago, respectively ; to ex change closed mails with Aachen (Aix-la-Cnapelle), through Fngland, by moausof the Canadian lino 01 mail packets, a copy of which is annexed to this report (No. 6). Those arrangements have greatly expedite! tlio transmission of Kuropeun correspondence to and from tho Western states, and givo outlio satisfaction to that por tion of the country. 1 have hud the satisfaction of arranging the terms of a postal convention with Mexico, which was concluded with the Mexican Minister on the 31st of July last, sub ject to ratillc:ition, within six months from tint dato, by the President of tbo United {Hates by ami with the ad vice and consent of the Scnato, and by tbo President of tho ropublii of Mexico with tbo approval of tho Mexican Congress. This convention was approved by tho Sonato of tlin l.'nitod States on tbo Oth of August htst, but no elhcial information ha* yot been received of the action of Mexico thereupon. Its principal provmiouaarc: ? 1. The establishment of direct mail steamship ? or vice between New York and Vera Crux, either direct or via Havana, tho expense of which Is to b.i l>orno equally by the respective jtont departments of the two countries. 2. A uniform rale of postage betwoeu the two coun tries of twenty flvo cents for a single letter under half un ounco in weight, and an additional charge of twoutv tlvo cents for each additional fraction of half an ounco, pre payment of which is obligatory, and each country to retain all the postage It collects, which dispenses entirely with any postage accounts between tho two countries. 3. Willi respect to printed matter of every kind, each country is to levy and collect its own postage only at the established domestic rates, and tbo despatching country is to charge and collect, ia addition to Its regular domi s tic iuland rata, a soa rate of one cent 011 each newspaper, and one eont per ounco on pamphlets ami other kinds of printed matter. 4. 1 aeh country grants lo tho other the territorial transit of closed mail bags through its lorritonoj, free from all duties, tax, detention, or ex<#n Illation ; the means of transporting such bags to bu furnished, and tho Co. t thorcot to bo pan), by the country lo which Iboy muy respectively belong; and tho carriages, cattle and men, exclusively employed in the service, to ho free from arrest, charges, or molestation of any kind what ever, except for somo flagrant violation of tho laws of the country through winch tho closed bags are convoyed. If tiiis convention should be ratified by Mexico, special legislation will bo necessary to provide for the portion of tho expenses to be paid by ibis depart ment in maintaining a regular line of mail packets between New York and VoraCrux, as the provisions of the existing laws limit tho compensation for soasorvico to tho p' stages, which will bu wholly iuadoquato to sus tain surh a lino of packott. A special appropriation from the treasury will bo ro quired to enable the Postmaster <iotier.il to carry this convention into operation. It i.< not only important as a postal arrangement, in view of the presout interruption of mail comtiiUiiloutiun via New Orleans, but it is a'so re garded as a measure of great political uud commercial importance to the rospoctive countries. ? Propositi on* have been submitted for postal arrange in. 'nts with the governments of liosta Kica and Oua.enia la, respectively , which aro now under consideration; anil the department has othor arrangements in contemplation for improvements in OUT postal intercourse with foreign countries by the reduction of rates of po-,tagi< and in creased cortuinty and clllcicucy in the ti asportation of the mails. Tbo negotiations with tbo British office for a reduction of postage, which have been pending sinoo 1857. wero 1111 successful, chiefly, as 1 understand it, because of tbo dif ference of the offices as to whether the steamers employ ed should receive a greater or less proportion of tho post age remaining, after deducting the United Mates inland rate of Hue- conts. Tins point did not seem to mo 10 be of sufficient significance to be allowed to dofcat a men ure of so much imjiortanco to the commerce of both countries as tho reduction of fifty per cent of the ratcuf postage. Although fully concurring with my prodccegsors that the basis proposed by this dojiardin lit was tho more just, as it recogni/ 'd and was founded upon the inland roles established by th? laws of the twocountrioe,] have, on a review of tho whole subject , concluded to accept the division of rates as proposed, which grants to the United Kingdom the same rale of inlaud postage, rather than lenger delay an arrangement si desirable as that sought to be attained by tho proposed reduction ol tbo inter national letter postage fiom 24 to 12 cents the single rale. I have, therefore, formally accepted iho basis for International letters as originally proposed by the British office on iho 13lh of February , 18f, 7, that tlio benefit of tho reduction may accrue 10 tho written correspondence between the two countries as early ss practicable. The othor propositions relating lo priutod mailer and territo rial trunsit charges ure held for further consideration and arrangement, as soon as tho respectn o departments Uud It practicable to give them attention. I trust that a re view of these subjects, by the respective postal adminis trations, may result in further advantages to the people engaged in this intorcoutse. MHXICAN MAILS OM TDK FAC1H0 COAST. I commend to tho consideration of Congress tho pro priety of an appropriation to sustain a reliable mail com munication on the const between San Francisco and the several ports of the Mcxlcan rej ublic on the Pacific. CONTRACT onus ? IKANSIVRTAHOS STATIS1IIK In consequence of the defection of tho insurrectionary States, and the termination of the mail service in those states on tho Mist of May last, under the act of Congress approved Feb. 2S, 1S01 , (with the exception of scrv.ee in Western Virginia,) it becomes necessary to present tho transportation statistics in iwodivistons. These arc shown in tahles A and B, attached to this report. Table A exhibits tho service aa It stoo l onthe30ihof June last in the States of Maine, New Hampshire, Ver mout, Massachusetts, lihode Island, Connecticut, New York, New Jersey, Pennsylvania, Delaware, Maryland, Ohio, Western Virginia, Michigan, Indium, Illinois, Wis cons.n. lows, Missouri. Minnesota, Kentucky, Tennessee, California, ( 1 egou and K insas, and the Itrritorles of Now Mexico, Utah, Nebraska and Washington, at which time there were in operation in those States and Territories 6 340 mail routes, tho number of contractors being 5,644. 'I be length of these routes was 140,391) mllea, and the mode of service divided us follows, via: ? Itailroad 22,618 Steamboat 5,339 Coach 30,733 Inferior 82,309 The annual transportation of mails wag 54 ,455,494 in ilea, costing $5,509,454, divided as fellows, viz ? Mil**. f'ntl. A vragt. Ilaiiroad 23,110,823 $2,543,709 He. Steamboat 1,830,016 290,659 15% Coach 10.655.783 1,171,295 ll' Inferior modes. . .18,852,838 1,303,891 7 The number of routo agents in tho service was :;92, at a compensation of $204 4d0 CO The number of local agents was 35 , cogting . 19 ,7 19 to Tho number of mail messengers was 1,532 costing 188,936 89 The number of railroad baggage masters in charge of the express mails was 48, cost ing 5,760 00 Total $608,875 80 This sum, added to tho cost of service in operation on the 30ih of June 5,809,508 00 Makr* tha total on tho 30th of Jims last $5,818.3?tf 89 The letting* of new contracts lor the term com mencing July 1,1861, ami ending Juno 30, 1805, cm brace tlie routes in the States of Maine, New Hampshire, Vermont, Massachusetts, Rhode Islam!, Connecticut, anil New York, and tho following shows the service under these loUings for the first quarter of tho contract year ouded 30th of September last:? M lie* Annual Mil'*. Transportation. Cod. Railroad 6,546 7,553,070 $753,814 Steamboat 403 283,302 16,463 With "celerity, certainty, and security" 16,533 5,964,562 263.730 Total 23,542 13,800.(194 $1,034,007 Compared with the service on the :i0th Juno last the length of routes is diminished fifty-seven miles; but from tho increase of trljis, especially upon railroads, the an nual transportation is increased 447.178 milis, and tho cost $24,154. Table B shows tho length of routes in tho States of Vir ginia (exclusive of Western Virginia), North Carolina, A.uth Carolina, tJcorgia , Florida, Ala'unma, Mississippi, Arkansas, I,ouis:ana nnd Texas, on the 31st of May lust, to have been 96,015 miles, divided as follows: ? IUIlroad 6,886 .Steamboat 7,716 Coach '12,711 Inferior modes 68,702 Tho total annual transportation was 24,122,711 miles, as follows: ? Railroad 5,701,093 miles, at $078,010 Steamboat 1,721,850 " 574,699 Coach 4,709,740 " 824.393 Inferior modes . . 11 ,930 ,028 ' ' 803 ,179 $3,241,181 To which add 121 route agents, costing. 8?,400 Seven local agents 3,760 lbO mail mMseugers 28,115 118,275 ?Making tho total cost of the Rcrvice in those states, discontinued on the 31st of May 3,359,456 To this add tho cost of the Borvice in Ten ne-?eo,a3 il stood on June 30, 1861 250,232 Also, the amount of compensation to route agents, at the same date 12.300 Local agents 1,000 Mail met eengcrs 3,739 Total $3,626,727 OVKKLAKO aUKIHMi MAIL. Hy the ninth section of an act of Congress approved March 3, 1861, entitled "An act making appropriations for the servicoof tho Tost Office Department during tho fiscal year ending Juno 30, 1862,'' authority is given to the Postmaster Cenaral todiscont nne the mail service on the Southern overland route (known as tho ''Butterfleld" route), between st. Urals and 'Memphis and San Francisco, and to provide for the convoy: t. ? I y tho same |urt.os, of a :i i x times n week tint I by tho '-central route;' that is, '?from somo point on tho MIvmutI i i v < ? r , connecting with the I .'Hi . to I ..'n er\ :l!e, Calilornia," in pursuance of this act, und i ho acceptance oi ji - term, bjr the mail com puny t an ord r wi s mado i n the 12th of March, 1861, t-. modify tho present contract, so astodlfoon'itiuo.jervliorn tho 8 itttteri route, and t > p: , Wi f.r tli ? trims p. nation or the out li e letter mail sit tint'* k on t V <e:itrnl route, to be carried through In twenty days eight nnnihs in the yeaf.aud m twcnty-il ?? edaj/ t ur months in tho J?W| tiviu ?t. Jo?o|ih, (vi AuU.sou, Kainjx ), tu 1 Placer ville, and also to convey tho ontiro mail throe times a week to Denver City and S ill Kiko; tho entire letlormall to California to bo carried, whatever may bo iti woight, an I in cue it should w t <?mo lit to COO pounds, thou suf ficient or otU r mail to booari l?d ouch trip to make up that weight, tho residuo of u!l mai1 matter to bo convoyed in tiiii ty flvo days. with the privilogo of sending it from Now York to fan Francisco iu twenty-five days, by sea, and tit ? peblio documents in thirty live days; a pony ex press tn lie run twice a weok uut;l tho completion < X tho overland t lei;ra|ih, through iu Uia days eight months, and twelve days four nvjoths, in tho ytar, conveying for the gnverlnn tit, li ne ol charge, flvo jm?uii s of mail lint t r . ihu (Villi Kinnation for tlio wh ile service lo b ? ono million of dollars i?er anutim, payable fiom tho general treasury, ns provi ied t?y tlio act; tho fo. vUo to coin menco July l, 1801, and turmiuato July 1, lst>4. The tranafer oi slock irom tho Southern to tuo Central route was commenced about thy 1st of April, and was com pie tod so that tho iiist mail wan started I'roiu St. Jo.-oph on tho iluy proscribed by tliwonlor, July 1,1801. Whlo (ho carriages have, it is believed, departed regularly since that time, tho mail service has not been entirely satisfac tory to tho dopartineht. Tho pauses or complaint, h *w e\ or , it is h(>|K!d will be removed by the measures now in progress. I ho route solocted iu that by Salt Lake City, ho t!iut that ofllco has now tho advantage of a daily mail, ami Denver City Is supplied throo times a work. T!iu overland telograph having boon completed, tho running of tho |>ony express was discontinued October '20, 1801. By the terms of th> law tbo contractors were required to convey only the California letter mall on o ich trip by tho short schedule, and thiw they wore to do whatever might b i its weight ; but by voluntary agreement they stipulated that in cano it should fall short of nix hundred |h>uii(!h on any occasion they would lake other inailu so as to tiuike that weight. As the loiter mails tu o seldom or never equal to 600 pounds in weight some papers are conveyed in con no* ion with tho letter ma ills each trip by . the short schedule, while others are nocessai ily delayed. This has occasioned complaint, and complaints have ulao been made of other delays, aud that bags of printed mattor have been thrown off en route for tho admission of pa* Bongei 8 and oxpress matter. Those charges are denied by tho contractors; but while the corn) ilitns of the con tract, fixed by law, allow a longer time for the transit of soino m ills than other*, Conij Jaiul and disappointment must of necessity occur. At the comtneueemeul of threatening disturbances in Missouri, iu order to secure this great dally routo from interruption, I ordered the incroase of tho weekly and Wi-wcekly service then existing between Omuha aud Fort Kearney to daily, and an Increase of pay tborcon of $14,000 |>or annum. Ily that moans an alternative and certain daily routo between tho Kast and California was obtained through Iowa, hy which tlio overland mails have boon transported when they became uusafo on the rail road routo In Missouri. In sending them from Davonjiort, through the State of Iowa,. joining tho main route at Tort Koarnoy , iu Kansas, tho only inconvenience experienced was a slight delay, no mai's being lost so fur as known. NKW VC.HK AN11 KORTIIN MCIT1 MA It,. This important addition to tho facilities for convoying correspondence between these clt i s, nnnoinced in liie last annual report as h ivlng been commenced an a three months experiment, proved to bo so satisfactory nnd sue CCSsful that the arrangement, was continued with the si me companies, viz: those composing tho inland line, through Hartford and Springfield, until tho 1st of August Inst, when negotiations with those corporations tailing to secure a renewal of their sor vices, tho mail was trans ? ferred to the ''shore line," from New liaven, through Now Iiondon, Stoning ton and Providence, over winch line it is now carried with great regularit y , and much to the satisfaction of tlio citizens interested aud of tha de partment. N It II IT MAM. KIIOM NKW VOtlK TO WASHINGTON. This mail leaves New York at 11 in tho evening and arrives at Washington by 9:^0 the next morning. Con nections are thus made at New York with railway trains from Montreal, Ogdensburg, Buffalo, Are., arriving ai 10:."!0P. M., and by a recent change in tho hour of do parturo of Hie expres ; train at Boston from 3 to 2 P. M., connecting with that t ruin also, so that malls and pas songers leaving Boston at '2 I'. M. arrive at Washington by 9:"0 A. M., or in less than twenty threo hours. This U about tho timu occupied hy the otlior lines, but it constitutes the third dally direct and unbroken hue of travel for mails and passengers from city to city, and at hours causing the least loss of business time. F1VAKCK (IKPI'H. Tho details of the financial operations of this depart ment during the liscal year ending Juno :!0, 1801. are fully exhibited In tho accompanying very elaborate aud interesting roport of the Auditor for tins department, from which the following statement is derived: ? Br?fnne and Kru ndit ure?. The expenditures of tho department in the fiscal year 1 ending June 30, 1801, mounted to 913,606, 759 11, viz: ? For transportation of inland mails, includ ing payments to route agents, local ngeuts and mail messengers $4,400,652 51 For transportation of foreign mails, to wit : ? Between New York, Southamp ton ami Havre f260.549 05 Between New York, Queens town and Liverpool 44,733 31 Between New York, New Or leans and Havana 4.R03 2.1 Between New York and Havana. 37,51*7 64 Between New Orleans and Ha vana 10,422 27 Between Portland and Liverpool 76,418 52 440,524 02 Between New York and San Francisco 290,2.10 99 Mai's across (he Isthmus of Pa nama 25,000 00 Expenses of government mail agents at l'amima 1,857 80 I 320,097 35 For compensation to Postmasters 2,514,157 24 For clerks in l'ost Offices 047,206 31 For ship, steamboat and way letters 12,007 06 For office furniture for Post Offices 2,177 55 For advertising 40,752 70 For mail bag? 60,906 61 For blanks 79,859 18 For mail locks, keys and office stamps 8,050 14 For mail depredations and special agents.. 47,8:17 22 For postage stamps and stamped euvelopes 92,772 70 For wrapping paper 50,9'J0 96 For payments to letter carriers 149,073 62 For repayments for dead letters 9 48 For interest under act of Feb. 15,1800.... 4.Oj0 54 For miscellaneous payments 271,440 61 For payments for balances due on British mails 120,507 82 For payments for balances due on French mails 24,440 59 Actual expenditures for 1861 $13,606,759 IX Tin- expenditures for the year ending June 3<>, ISO), were $14,874,772 89 Tlio expenditures for the year ending Juno 30, 1801, were 13,606,759 11 Decrease In 1861 $1,266,013 78 The gross revenue for the yeur 1861, Including recoipts from letter carriers and from foreign poetages, amounted to $8,349,290 40, as stated below: ? Letter posiago $646,498,14 Registered letters 19,306 <56 Stamps sold 6,864,791 43 fiawspapors and pamphlets 671,200 28 Fines 20 00 Receipts ou account of emoluments 94,503 45 Receipts on account of letter carriers 149,07;! 62 Miscellaneous receipts 3,834 82 Total 8,349,296 40 The balance to the credit of the department, on the books of tho Auditor, June 30, i860 $1,211,860 1 7 The roceiptg of tho department from all sources during the year 1861 $3,340,296 40 Ralanco on credit accounts closed by sus pense 6,902 90 Amount of various appropriations drawn from tho Treasury during the year, as specifically shown by the Auditor, was.. 4,645,994 40 Total receipts $14,21^)53 87 Tho whole amount of expenses in the year $13,606,759 11 Add amount oft accounts cloaud t>y bad debts 407 17 13,607,166 28 l.eavingtothocreditof thereronueaccount $605,887 69 Tin' expenditure tor 1861, inclusive of bad dobts, and exclusive of credit balance, on accounts closed by suspense, as exhibited 13.001,263 38 Deduct the revenue for 1861. $S, 349,290 40 Add the earnings of this de partment In carrying free mail matter 700,000 00 - ' 9,049,296 40 Deficiency $4,551,900 98 The estimated detlciency of means for 1S61, as presented in the annual report from this detriment. December 3, 18e9, was. .$5,988,424 04 Deduct actual detlciency 4,551 'JtiO 98 Excess of estimated deficiency over actual deficiency $1,436,457 06 The revenue from all sources during ths year 1860 amounted to $9,218,067 40 The revenue from all sources during the year 1861 amounted to 9,049.296 40 Decrease of revenue for 1801 $168,771 <t0 Slatrmmt of Or OM and Mel i'rocralg from Port Officii in the Luyal and I >u loyal Slates, for the Pucal Ttart Ending June 30, 16 JO unrf 1861. J OV^t ST ATM. Comjieruattim to Pott. motor* atul Iwtdent Tmr. Grou Proceed*. al Exprv**. AX Proreetlt. 1660.... $0,693, 012 85 3,003,321 09 3,088,690 50 1661.... 0, 8?0, 097 20 3,088,610 12 3,801.487 08 Increase in 1861 $112,796^52 WSI.OVAl. WTA1B-'. Commentation to Pott mcutsrtand Incidental Year. Grotl Proceeds. Kxjcmei. AX VrncttU. i860 .... $1 ,517 ,540 65 090,994 04 *20,546 51 1861 .... 1,241,220 05 663,513 35 677,706 70 Decrease in 1861 $142,839 81 The decrease in 1S61 from tho net proceeds of 18 00 in all tho States appears to be $30 ,043 29. Statem>nt <f th'eReeiftt and KxpeUturet of Ik' Oi loyal SUttei, and Artvunt Alleged to t ,r One to tbntractort; oim, t\>- Amount Ar'uallv I 'aid to Contractors J rom July 1, 1860, to Miy 81, ltfal. Total expenditures $3,899,150 47 Total gross receipts 1.241,220 05 Excess of oxpedltures over receipts $2,457,930 42 Amount allege I to he due to contractors i'or transportation $3,136,037 12 Amount actually paid for train.- >rt.uioti.... 2, 32.;, 001 03 Leaving amount all ged to i> ? duo and i n l?ild $912 675 49 The Ubulnr statement of tl ?? A . tor, marki d No. 3, exhibits in di't.'i 11 th?' I eceipts f , :i ; tt.e exo tit. ires in, I lie i ' l ? Ji -s !?. nl! '? e ,ie , n, , | j , 10,1'thc ' v> .ill the orn'dlll! |>;:|"1, S'l I r ?'(. ?i t -, lo bo dttc, t ( ..! tiu tor foi the tilfh-p rt . n .. ... , ? No, 4 preeeuts a Biiatiar cxl.i a 1\>. ill . t: loyal Stat' s alone, with a statement of the wholo amount of "trans pirtatlon" accrued thoroln, which inclinloR not only tlie amount actually paid, but also tlx* coat of tbo service known to have boon performed, payment for which is willih Id , and (ho additional amount which would bu duo on tlio assumption thai Iho poslal kuivico wan milliter* ruptcd until discontinn d by the Postmaster General. fjtUnudi'n fur 1802. Tho estimate# of rocelpts and expenditures for tho fts ml year nudum Juno 30, 1802, and of the reacting dell'mncy far tliu same year, which wore submitted in the last annual report from tola department, were bmd on the existence ol' i*>ntal sor v ico throughout tli" Union. Should such Hurvice remain suspended, during tho yen , iu Status whore It Is now wholly or partially dis

continued, iho estimated deficiency of $>, '210,42(1 03 would lie reduced to $2,747,000, according to tho ratio ot ro ci'il'U and expenditures iu that section iu 1800. I'h? amount appropriated by the 3d section of tho act 1 approved Match 2, 1801, tu supply duQciunces in iho ro- { venue liir the yeai 1802, wns 31)1 ,350 03; and, i! Iho cost ol' a daily mail on the central route is tu bu |>ai 1 out of tho resources of this departmont, thoro will bo an un expended halanoe of thtt appropriation Julv 1 , 18G3, ol' about $1,000,000. Sections 9 und 11 of tho act approved March 2,1801, (i h iplor 73), seoinod clearly to authorixo this payment nut ol the troasury for mail service six tunes a week on tho central route to California. Hut tho word '? dally," used in tho llth section, id connection with the appropri ation, has induced the adoption of a different construction at the treasury. H lwnaU of llec*ipls and FrpetulUuret for 1303. UXI'KMIirrUKKS. For traiW|Kjrtatlon of the maila inlaud $0,901 ,0<M) For compensation of |>OHtiiia.storH 2,231,000 Fordukl of post oillccs . 840,000 l or wjnp, steamboat and way letters 12.000 For olllco furniture for post ollices 2,000 00 I-', ir advertising 30.000 00 l.'or mail bags T 5,000 00 For paper fur blank* 60,000 00 For printing blanks 12,(100 CO For wrapping paper... 46,000 GO For mail locks, keys and stamps 50,000 00 I i r mail depredations aud special agents. . . 75,000 00 Wot miscellaneous pHflttl 187,000 00 For jiostnge stamps and stampod onvolojies. 90,000 10 For payments of balances due to foreign co untries 230,000 00 For payments of letter carriers 162,000 00 Total $ll,0C3,00tt 00 To tbo above est (mate must bu added tho cost of transportation of "foreign mails," which was formerly paid out of the appro priation ol' the Uftli section of the act ap proved June 14, 1858, but which tho Xecre tarv of tho Treasury , on tho (1th of August, 1801 , decided not to bo payable therefn in, since the passage of the act of Juno 15,1800. K timn.fr for (Ut T,vLn*i>orlalii>n of Mails for 1SC3. Between N'ewYork, .Southampton and other Kurojiemi ports 2)5,000 00 lietweou Now York, CJueinstown and Liver pool 60,000 00 llel ween Portland and Liverpool, aud Quo hoc and Liverpool 80,0c0 00 ISelwneu Uuito l States, Havana, Cuba anil otNer West India ports 00,000 00 Total $11,528,000 00 The est mi uto for the transportation of tho mails inland docs uot include tho sum of j.1 000, 000, which it was presumed that Congress intended lo appropriate from tho treasury by the 9th secticn of the act of March 2, 1 Htt 1 . for a daily mail on tho cen tral routo, but by a decision of the First Comptroller of lie Treasury, dated October 31, lHGI.lt is declared thai this sum was imt thus appropriated. Unless, therefore, a specific approprial ion for this object he made by Congress, tho abovo estimates will be subject to a fur thor addition of 1,000,000 00 Kxponditures for 1803 $12 528,000 00 ' MKAN.S FOR 1803. The gross rovonuo for tho year 186.'!, including foreign postages, lees paid in by letlor carriers, and miscellaneous ro coi|t.<, Is estimated at au increase of four per c 'Ut on tbo rovmuos of 1801, making -.. $8,683,000 00 Kstimatod deficiency or re venue , compared with ostimated expenditure 3,846,000 00 Duducl appropriations made by the Ads of March 3 , 1 847 . aud March 3, 186 1 , for c icrying free mail matter.. 700,000 00 Which would niako the whole amount es timated to be requiro I from the treasury for 1863 3,146,000 00 Exclusive of the earnings or the <lopart mont lor carrying freo matter under tlio A < le> of March's, 1847,(iiui March.'!, 1801. $700,000 00 The cat i mat o of (ho total expenditures for 1863 is somewhat less than I bono for previous years heretofore submitted. This difference ari.es from the fact that only partial estimates ore made for the cost of postal servico in States where it is now suspended. It is assumed that the restoration of such sorvice in these States will take place gradually, and that in tlio process m.iny oxponsive mail routes, from which but little revenue has bean derived, may be curtailod or dis continued. Most of the estimates for expenditures in the disloyal States for 1!!63 arc calculated at a flxod proportion of the amount expanded in that section of the country under tlio various heads of appropriation while its relations to this department were undisturbed, which amount was about ouo quarter cf the expenditure for the whole Union. 'Ihe estimates for blanks and Wrapping paper are nearly the same as in former yoars, as, in ense of tlio resump tion of pos'al sorvice iu the disloyal States, a largo quantity of blanks, wrapping paper and other supplies furnished by blank agents would undoubtedly bo re quired , as the ixjst officcs within tho limits of these states would be entirely without such supplies. For reasons stated below, there has been no diminu tion in the estimates for tho cost of mail bags, locks and keys for tho year 1K63. Since the discontinuance of tlio postal service in eleven States of the (Jnion the expenditure for mail bags has linen greater than during any corresponding period of the preceding year. Tho causes are as follows. ? 1st. Ihe abstraction In those States, immediately preceding open rebellion, of considerable quantities of mail bagi from tho general supply in circula tion on the principal routes between thn North and the South, by withholding, in disregard of an established rule, the return cf extra bugs, which, by the course and exchanges of mail matter, always accumulate in tho Southern StuteB, and by exchanging, and sending hack with the mail? old bags nearly unserviceable tor new ones received. 2d. The vast increase of mailable matter incident to the war. 3d. The difficulty (arising from the robeliion and the exigencies of war) in procuring mail bans, made as here tofore, of cotton duck or canvass, in sufficient quantities, thereby rendering necessary the pureliasc to a great ox teut of such as arc made of leather. Uuring the fiscal, year ondiDg 30th June, 1861, there were purchased, under contract, and put into the service, 7,787 locked pouches and bugs, (used for the transmission of letters), which cost $20,697 51, being about thirlv geven per cent more iu number, and nbout soventy-tlvo por en V moro in cost, than tho locked pouches nnd bass procured during the year next preceding; also, 22 OtH canva?s sacks, (used for the transmission of newspapers and other printed matter), which cost $20,305 78, being slightly more In number, and about live and a halt per cent l?*ss in cost, than the canvass sacks procured during the same period. The amount of $30,000, Tor mail locks and keys, would be a sufficient estimate for the wants of the mail service within its present limits only, including the coat of an entirely new issue cf mail locks nnd keys, rondored indis pensable for the safety of the malls, in consequence of tho rebellion existing within a large portion of the former limits of the service, where tho locks and keys of this department nre still iu use. After due advertisement, 1 have made n contract for now locks and keys, which, in rcspoct to the quality ami price of the articles to bo furnished, Is more favorable than any hithorto made by this department. Assuming the ro-eslabllsbment of tho mail service throughout the Stair? n^w under insurrectionary control, the additional supply requisite to cover that extent of servico will, it is bolieved, cost $20, Ouo more, making the total sum requisite in that case $50,000, as ostimated. Although the revenue of 1801, as compared with that of 1860, shows a diminution of nearly two per cent, yet it is anticipated that the revenue of 1863 will exhibit an Increase of four per cent on that of 1861, or uenrly two per cent on ihut of I860. This estimate is justified by a comparison between tho proceeds of tho larger offices during tho quarter ending September 30, 1860, and the corresponding quarter of the present year, which shows a .small excess of rcveuue during the latter period. In the appendix will bo found a detailed statement of tho annual revenues and expenditures from 185.1 to 1801, inclusive, together with estimates for 1862 and 1663. POST GFHICKS. The number of post offices in operation during the year was ?8,586, ond the number of quarterly returns received therefrom was 105,066. The number of post offices In disloyal States which have made no returns for the third quarter of 1861 is 8,535. In the State of Virglnio 167 oOices continue to send in their quarterly accounts regularly. DRAFTS AND WARRANTS. The whole number of drafts and warrants issued daring the yeir in payment of balances roported by the Auditor to be duo mail mail contractors and other creditors of tho department, was 21,977. The warrants were drawn on eighteen United States depositories, and the drafts on thirty Post Office depositories and postmasters at draft offices, with whom it is necessary for this purpose to keep s-'immnry cash accounts, as well as with 937 deposit ing offices. At the depositories and draft offices $2,796,011 76, which Is more than throe-flflha of the net revenue of tho department, was concentrated and disbursed during the year. The remainder was collected by mail contr^tors by mean* of orders on postmasters at "collection offices," prepared anil sunt out by tho Auditor. From the 11th of July to the 13th of Septombsr, thirty one hundred and seventy seven Treasury notes, bearing six per cent interest, and payable two yonrs alter d^te, were registered and paid to contractors and others. Tho aggregate amount of th ?se notes wns $1,010,800. Tho number of each denomination of postage stamps Issued to postmasters during each of the four quarters of tho year ending June 30, lhMl, was as follows, viz:? t>nartrrir?i'<. ? 1 -in). H-cent. been'. 10-, nt. S>pt 30 '60.. 12, 756.100 30.512, 700 146,920 922,150 Dec. 31. 60. .14,778,08ft 89.171.800 178,040 1,154,910 M'i h 31. '61.. 14. 171, 768 41/122,066 223, COO 862.9'iO ( Juno 30, '61.. 12, 184, 839 08,616, SCO ttS.OJO 095,710; Total 53 s'13.792 161.223,060 677,21.0 3, 926,690 I 0" 'i1er rnd'g ? 12"",'. 24 -ren'. CO nut. 90 -int. root 30, '6t>. . 884.800 1 70,000 1' . BtiiJ 11,960 lie':', :s I, ??;<>.. 243, K26 201.169 105, 9t0 6,200 M'rh 31, "61.. 2.(2 100 147.: .5 6T..040 4.110 Jm o ?0, 61.. K?2 hT5 132 l-'o 05,1 ;'0 2,010 : X-tal I,0o;,'i00 COvOd $40,000 . 84,886 I TUo number of stamped envelopes iisuod during tho above |>eriod wiw mi follows, viz: ? 3 cents, 3 emit, 10 cents, 6 cents, Quarter cnci'j ? tioU Kite. letter rise. 1-tU'r s iie. official. Sept. 30, '60. . 189 ,250 6,777,980 27,760 10,250 Doc. 31, '?<>. . 146,050 3,76:1,200 16,350 14.650 M'cbai, '01.. 82,150 3,657,600 50,150 6,800 June 30, '61.. 53,000 2,456,700 38,500 9,750 Total 471,350 15,655,450 131,750 40,450 1 cent, 4 cents , 3 cent', Quartir tutting ? letter ii:e. Idler size, note size, rid. Sept. 30, 'CIO ? ? 28,450 Doc, 31, '00 504,500 35,000 40,350 M'chai.'Cl 636,250 ? 6(l,;i50 Juno 30, '61 403,500 ? 31 ,H00 Total 1,534,250 35,000 166,(150 3 ends, 1 cent, 4 cents, Quarter ending ? teller Me, rid. letter sac, rid. letter tite ,rlJ . Sept. ."0, '60 668,750 _ _ Dec. 31, 00 1,657,750 412,000 46,060 M'ch 81, '61 2.541,150 627,750 ? Juno 30, '61 1,778,700 271,000 ? Total 0 616,350 1,310,750 35.000 Wlmlo number stamps, 211 ,788,518; valuo. .$5,008,522 60 Whole number stamped enveloped, 26,027, 300; value 781,711 13 Total amount for 1861 $6,61)0,233 73 Total value of postage stamps ami stamped envelopos I -sued during the your ended June 30,1860 6,870.310 19 Dccreaso during 1801 $180,062 46 Tim aggregate value of the envelopes included in tho above statement is $781,711 18; but thin sum does not Hive a correct idea of the roal amount of postage ropro s<uted, inasmuch as it include*, the cost of tho envelopes as well :is the valuo of the stamps. The postage represented U $734,354 60 I.< uv mg as tho cost of tho onvoloiws and of their distribution 47,360 63 The above decrease in the issuer of postage stamps and stain pod envelopes Is contiary to all former experience, ami is to be attributed to the thou anticipated interrup tion of mail communication with the disloyal i>ortion of the o'untry , as the amount of each distributed continued steadily to mcrease u;> to tho commencement of the second quarter of 1861, at wliic'ijtime orders from postmasters in thut section wero wholly or partially sus ponded. It was not deemed advisable to fill orders from postmasters in States which claimed to have "Receded ," without first ascertaining their dis|K?sition to hold themselves person ally responsible for such amounts as might be soul them. With this view a circular was preparu'1, about twelvo hundred copies of which were addressod to diU'ercnt |>ost ma* loin upon tho receipt of their orders. Niue hundred replies whio reoeivod, all hut twenty of which avowod tho personal responsibility of tho writers for all revenues accruing at their resimctivp ofllcos, and their regret at tho action of their Slate authorities. Stamps were ac cordingly s -nt thoin until Juno 1, when it apiioared that the |>oMal service could no longer be safely continued. The balan o oT stamps an?l stamped envelop s remaining unaccounted fur iu tho lands of postmasters in disloyal States on t!io>xl of October, amounted to $20 1' ,000, with out reference to c mirilssions and allowances which may be placcd to their credit in tho future settlement oC their accounts. Tho total amount of |>ost.iga stamps and starapod enve lopes sold during tho year was $6,861,781 43 Amount u<vd in prepayment of postage aud cancelled was 6,459,622 05 leaving alloat and In the possession or pur chasers. and being used to same extent us enrroncy $405,169 38 The contract fur tho manufacture of poslugo stamps having expired on tho loth of June, 18G1, a new one was entered into with the National i tank Note Company, of New York, upon terms vary advan tageous to the department, from which there will result an annual saving of more than thirty per cent iu tlio cost of the stumps. In order to provont th > fraudulent i:so of the large quantity of stamps remaining unaccounted for in the hands of postmasters in the disloyal S' .lea.it was deemed ?disable to rhsngs the design and the color if thoss manufactured under the new contract, and also to modify the stamp upon the stamped envelopes, and to substitute, as soon as poss ible, the new for the old issue, It was the design of the department that the distribution of tho new stumjis and envelops should commor.co on the first of August, hut, from unavoidable delays, that of the Iatt?r did not take place until tho Uftccnth of that month. The number of postage stamps of tho now stylo issued up to the 9th of November was 77,117,520, and the num ber of new stan\|icd envelopes 8, 030 ,050. All post < dices in the loyal States, with th ? exception of certain o dices in Kentucky and Missouri, have been supplied thurowith. Those of the old issuo liavo boon exchanged and super seded.. The old stamps on hand, and such as wore rc ceivod" by exchange, at the lurgar offices, have been to a great extent counted and destroyed, and thoro at the smaller offices returnod to the do|>artment. It U proper tostato that, in anticipation of tho substitution of the new stamps and envelopes for tho old issu", 1> it limited supplies rf tho lattor wore sent to postmasters during Juno aud July, so that tho amount thereof remaining iu their hands was comparatively small. The additional oxiwnso incurred by the change is very inconsiderable, m view of tho greatly diminished cost of tho uow stami a as com; ared with that of the old, while tho prevention thereby of tho use of stamps tinac counted for ill tho hands of disloyal postmasters saves the department from sovoro loss. Although the enume ration and destruction of the old stamps and envelopes is not yet completed , there is ample evidenco that few re colvod In exchange were sent from disloyal States. Envelopes of odloial size, at higher rates of postage, viz:? Twelve cents, twenty-four cents and forty oents, have been prepared during tho past year, for the purpose of mailing largo (lockages and for foreign correspondence. Thu aggregate number of these issued is 20,100. Of the patent ruled envelopes nearly 2,500,000 have been dis tributed to postmasters, together with 79,150 letter sheets and envelopes combined, and 180,700 nenvpapcr wrap pers. The demand for the latter has of lato rapidly in creased. It is bolioved that a chango of tho present system of ise' ing postage stamps and envelopes would prnvo to be highly advantageous. Instead of being delivered, as at present, on orders from postmasters, and charged to their account, the litter might be roquired to purchase a sum cient quantity to meet the wonts of tliuir respective ofllcos. This would simplify the accounts of the depart ment, expedite the collection of its revenues, obviate losses from bad debts and supersede the necessity of liti gation for their recovery. It is. therefore, respectfully reccmmended to the consideration of Congress. DEAD I.KTTKKS. Tho whole number of ordiDary dead letters roceivod and examined during tho year was about 2,5.>0,C0O. The number of these letters containing money which were registered and sent out during the year ending June 30, 1881, was 10.5S0. Tho number containing deeds, hills of exchange, draft* and other articles of value, was 10,2:.5. For dotuils, see Tables (\*os. 7 and 8) hereto appended. There have been received and examined 1-5,000 letters which could not be forwarded to their destination, be cause of unpaid postage or carriers' feeg, or because mis directed, Ac. Of these there were sent out 58,9:14. From tho 1st of June to tho 1st of November there were received at tho dead letter ofiee, in consequcnce of the suspension of postal communication, 76,709 letters, ori ginating in loyal States, and addressed to :eselents of dis loyal states. Of this number there wore returned to tho writers 26,711 During the same period 34,792 foreign tetters, destined for that section, were returned /is ''dend," and 2,2-16 of them were deliverod in tho loyal States to authorized agents of the partiea.addres.sed, making tho whole num ber sent out 103 ,b86, which is considerably more than three times the quantity sent out during the previous year, when the number was unusually large. In addition to the above, about 40,000 letters from dis loyal States, addressed to parties in the loyal States, wero sent to the d?ad letter office alter the suspension of the postal service, a lurpe proportion of which were forwarded to their destination, ihe last threo classes arc not em braced in the above enumeraiion of ordinary dead letters. fotie:gn i j;7ters. Tho number of dead letters returned unopened to foreign countries during the fiscal year was 111,117, divided us follows:? JViumod to Fnglar.d. . .. 68,069 Returned to France 10,0S8 Returned to Prussia 11,584 Returned to Hamburg 2,si3 Returned to Bremen 3, "02 Returned to Belgium 113 Returned to Canada 22,:t37 Returned to Nova Scotia 1 .125 Returned to Now Brunswick 1 ,i'i33 Returned to l'rincc Ed ward's Islaud 183 Total.. ? 111.147 Which added to the number of domestic letters (I03,8t'?) sent out as above, gives the whole number sent out from the dead letter odlco for the year, 215,033. are expended, for which the ordinary loiter postage Is scarcely u sufficient recompense. For the same reasons unregistered letters thus returned might be charged with double lates. PRSI'AYJtKM OK FOSBAGK. My predecessor called attention to tho fact that largo numbers of unpaid letters continued to be posted, not withstanding the act of March 3, 1865, making prepayment compulsory, aril stated that the practice of notifying tho parties addressed that such letters would be forwarded on receipt of postage had been abandoned, because it ap peared, after trial of more than five years, that the evil ccutinued unabated, showing a determination on the part or many correspondents using tho mails to evade tho postal laws. By immedlotely sending this cla?s of letters to the dead letter office, it was expected that a proper compliance with the law would be enforced; but so inr from this being the case, the number after one year's trial exceeds ten thousand each month, and the attention they require imposes considerable additional labor and expense on this department. The practical result of this decision of my predecessor is so different from what was anticipated that I liavo beeu induced to revive tho former regulat on, re quiring postmasters to notify persons to whom unpaid letters are. directed, that they will bo forwarded on re ceipt of the postage enclosed in a paid letter to the post master. Thus the number refumed to the dead letter office will be reduced at least two-thirds. The detailed statement of the expenditures, under the head of miscellaneous payments, required by the act ap proved June 15, I860, will be found appended to this re port, as furnished by tho Auditor's office. MtaCEI.LANF.Of8. ATTROPWATIOKS KIR CAIIKIHMA OTWlt-ANTt MAIL. I have in a previous part of this report alluded to tho refusal at the treasury to pay the appropriation for the overland mail service to California. It seems to mo so ovidcutty to have been the purpose of Congress to ro Tiiro tho payment of tho amount stipulated from the treasury, under tho 9th and llth sections of tho act, that I again ct 11 the attention of Con g, ops to the subject for such further legislation as may bo required. It certainly cannot l>o supposed th.it a c n tract of that magnitude enul l bo required by postal in terest aloi e. Ine general lr.t0f0.Ms of tho country re quired It, mi l th c- mpi n-atl n should thoref?ro bo made by a getvra'. ,i| propr, it. n from t:ie ticii -.v as this do p. i. 'intent pros mcs to lnvc been tho intention o.' tho law. T. ?>. I'o.-T OtTMT. Tll l.iMI AT Mtf loRK. Owing t-j the extraordinary demauds upouthc tre.is rry for the maintenance of tbe higher Interests Of the oountrr. I have not deemed it prudent to proceed, at present, with the erecliou of a new building for the New York Poet office. Tbo balanno of tbe approbation heretofore ina<1e for that purpose, after paying tor Iho situ purchaiied, remains therefore unexpended*. tiik ro.tr orru k bcii.imnu at futi. ADiti rtii a. In view of tlie prossiug need of Improvements in (he Post Olllce accommodation* at Philadelphia, and in con nection with tho Htrncture designed for both Post Office and United States Court rooms, the commission invited plans ami propi sils for adapting to these uws tho build ing which hi.B been already purchased, 'lliin has roswllod iu tho odor of a plan which appears to ma .-atinfact rv, and which, in my judgment, will answer the purp < os proposed for many yearn to come, and will also incut the demands of g. oil taste and convenience, at a cost not ok cacdmg $.10, (XX) tor which the existing appropriation is suf Uclolit. The question of its acceptance is now (tending bofore my associates, an provided by law of the last Congrosa. noSTo* wr omnt. 1 have made arrangement* by which tlio Post Office la Ih3 city of I lot; ton liat< been restored to its former sito on Stato Ftroet , without additional expense to tho depart ment. it wan done the more cheerfully because it ei. allied me to Hignify my ruprobatlou of tho uoudticl of a public ofllcur using the influence of his official position to promote bis private ends, In disregard of the public inte rest. This order, it is also believed, was in accordance with the wishes of a decided majority of the business in tercuts affected by it. In connection therewith 1 w;ia able to terminate tho claim 011 tho fund of $12,000. formerly dujiosited by certain parties, for tho return of which, after deduction of tho expenses of (*>0 removal each way , Coo Br< sb passed an act approved March 2, lKUl The sum of 84, was required to cover the double runt ac crued during tho period when the first removal was sus pended. In my judgment this was to bo deducted, as it was expressly understood it should bo at tho timn of tbo contract of indemnity. The settlement was effected 00 this basis, and the sum of $3, 01ft 18 was roturnod under that provision of law , and the account ciosod. IHOlXMIil) AUt.HUHB.VIM OK TUB I.AW. By tbe act or Congress, approved July 2, 1H38, (58tat., p. 84, aec. 33), it is provided that the appointmont of Postmasters at office* where the commissions allowed to Postmui tors amounted Umiiic thousand dollars or upwards in any 011c yoar, terminating on th<< 30th day of June, should bo inaito by the President , with the odvico and con sent or the Senate. In several ciutes offices which have once earned tliat amount in 0110 year have subsequently fallen below it, and becomo permanently reduced in value. Doubts have existed whether, by the letter of tike law re ferred to, the ap|ioiutineiit novel thelcssilld not conlinuo to bo presidential. It is recomnieiidod that this doubt lie removed by an amendment to the law providing that the appointment shall ociibo to be presidential whenever such commfst long Khali have been ascertained to be less than th.i snm of one thousand dollars for tho fiscal year nest preceding an appointment. 11IK TOOTH ASTKKS IK VNK1NO rRIVIt.WIK. The franking privilege is iu this country groatly o? touded. In tho United Kingdom, the only other country In which vary low rates ol inland postage prevail, It ap pears to be limited to addresses and pot it Iocs to tho Queen, und petitions to cither house or Parliament. All other mailable matter is chargeable with fioBtng*. llence, in part, tho success there of tho low postage system in poiut of revenue. In this country , however, It is extended to cover a large class of |x>sUe asters, probably the majority. During the same |>eriod the Bumot' $53,f>t)& 00 in money, and bills of exchange, drafts, chocks, and negotiable notes to the amount ot' $2,-130,046, found in dead hilars, wore returned to the owners or writors thereof. Iu consequence of the great accumulation, after tho suspension or mail servico, or loiters originating in or addressed to tho disloyal States, tho attention or tho clerical force of the dead lettor oflico was necessarily diverted from its accustomed duties, hence the causes of the lion-delivery of vaiuablo letters wore not ascertained to so great an extent as was intended, or as could be wished. The result of succors fnl investigation in 7,500 cam, however, confirm* tho past expcricnco of the depart ment, that the faiiuro of it letter to reach its destination is, in the vnst majority of instances, the fault nloue of tho writer or Mender. Out or tho above 7,500 valuable dead letters, 2,095 were directed to the wrong ofllce; 407 wero imperfectly add res-sod; 412 were directed to transient persons; 257 to panics who had changed their residencos; 821 were addressed to fictitious persons or firms ; 83 wero uncalled for; 10 without any directions; 2,136 wero not mailed for want of postage stamps; 79 wero missent, and for the failure of postmasters to deliver 133 no satisfac tory reason was assigned. Tho department, therefore, can justly be held responsible for the non-delivery of but 212 of tin-Be letters. In the examination of 110,487 letters not mailed for want of postage or carriers' fee?, or because misdirected, &<? (of which Dumber 60,381 were contributed by tho olllees at the twenty-four largest cities in tho oouatry), it was found that 82,532 were detained for non-payment of postage, 6,119 for want of carrier's fee, 5,947 were mis directed mid 3d0 wero destitato of address or direction. Of Hie above letters 1 ,339 contained money, amounting to $7,37250, and 1,353 checks, drafts or negotiable paper, the value of which was $259,710 50. Letters of the last class wero generally from mercantile firms or from bankers, by whom they Wero carelessly mailed either without the proper address or without a postage stamp. it is worthy of remark tbatoutof 70,709 iettors.be foro alluded to, originating in the loyal States, aud ad dressed to residents of disloyal Slates, 40.000 could not bo returned, cither because the signature of the writer was incomplete, or because the letter contained no clue to his residonre. The experience of the department shows that a large proportion of domestio letters written by edu cated persons, and particularly by women, are dellcient In one or both of those respects. Tbo sixth section of the act approved February 27,1861, authorizes the application of the unclaimed monoy from dead letters to promote tho eRicicncy of the dead letter ofllco, by providing for a more careful examination of let ters, and the return of a larger number to tho writers, with or without valuable enclosures. Hy virtue of the authority thus granted, from the 10th of April to the 10th of October tho average number of clerks employed per month was nine, and the average compensate n paid each per month was $08 58 13, which, together with incidental expenses ($21 38), amount! d to $4,544 11, learing a balance to (lie cielitof the dead letter fund on the 31st of October of $765 89. As stated above, the suspension of postal communica tion with tho disloyal States produced an unprecedented accumulation of dead letters, which rendered tbo em ployment of these clerks in the examination, registra tion and delivery of such letters an absolute nocessity. It is, however, tho oarnest desire of tho department that the dead letter fund should be exclusively devoted to in creasing the number of ordinary dead letters returned to th? writers, and to insuring the utmost promptness in th"ir delivery. Notwithstanding the manifest advantages of tho law of February 27, 1861, requiring mi. re frequent returns of dead letters to the department, tho majority of i ost mastors, particularly these at the smaller offices, fail to comply with the necessary regulations under that law, although duly notified thcrecf. In order to carry out the salutary reform contemplated by Congress, every post master'wbo is delinquent in this respect is reminder of what the law requires, and his immediate compliance therewith requested. This correspondence, and tho con sequent return of a larger amount of loiters to th- owners Involves much additional labor, tending to increase the efficiency of the dead letter olllco. According to the experience of the last year It would appear that the projiortion <tf tbo deed letters sent out which would be received by the writers is mu -h larger than was formerly estimated bv this department. Out of 53,934 dead I-.ttcrs hold for postage, misdirected, Ke., which, though not containing valuable enclosures, were sent out for delivery, but 4,460, less than one twelfth, were not delivered, because refused .or for othar causes, and were again roturned to tlia dead letteroillce. ft in truo that with dead letters of all kinds the proportion return ed a second time to the department would b- somewhat larger; but If it wero increased to one-fourth of all dead letters sent out, ttic return to tho writers of all such correspondence, suscoptible of restoration, would in volve no additional oxpense to tho department, while it would bo generally gratifying and often extremely useful to the public. About 2,500,000 dead letters are annually received, nnd, excluding letters without tho signature or Sd dregs of the Wl'jt"'S, andjtjoso C'?J}tMni!& CifC?ll;jf hiauiieslly Wi ft m.s? mallei , li Is ostiuwtoil that l,;i(Xl,(Jo5 could bo returned to the post otllce of the writer. If one fourth of these were refused or uncalled for, the depart ment, under existing law, would recolve from po3tagoa on the remaining 1,125, COO the sum of $33,750. Tho number of clerks required to oja-nine and seud out 1,500,000 letteis would not e\eeed twenty-lire, anil their compensation, at $800 per annum, which is deemed suffi cient for tlio nature of tho service to bo performed, would amount to $20,0C0, leaving a uet revenue to the depart ment of $13,750. In view of the encouraging results already attained, by the partial use of the unclaimed dead letter money for this purpose, I would respectfully recommend that, au thority be granted by Congress to employ the pro t used clerks, and that $20 ,000 bo appropriated therefor, in addition to the ordinary appropriation for officers and clerics In this department. I would also suggest that valuable dead letters, when returned to their owners, should bo charged with treble the ordinary rate of p< stage, comprising ono rate for re turn transportation to the dead letter office, ono rate for registration there, and ono rate for return transportation to tho writers or owners. It has al ready been shown that the failure of such letters to reach their dc.-tiuatien is rarely Attributable to tho de partment, while in their restoration mucb timo and l vlwr Hy the lirst section of the act approve I March 2, 1847, each deputy postmaster, whose compensation for the last preceding vcar did not exceed two hundred dollars, may send througli tho mails all letters written by himself, and receive all addressed to himself on privato business, rree of postage, tho weight not exceeding a half ounce. This privilege is greatly abused, and ought to be re voked. If other compensai ion Is du9 to a p. sttnaster be yond his commissions, it should be in tho discretion oi tho Postmaster Genera), not exceeding??? percent ad ditional to that now allowed, that it may go to tho intel ligent and faithful, not to the shrewd and unscrupulous, ns it chiefly does under the existing law. Privileges rest ing In the conscience of the recipient, aa to their extent, are dangerous. , ... , , I recommend the repeal of th.s clause, conferring tho franking privilege on postmasters whoso commissions do not exceed two bundud dollars; only letters certified to be on post office business shall bo allowed to bo sent or re ceived by postmasters, free of postage, and this enforced by proper penalties. CSrtJJKTIO* OF l'OSTAflK OS PRIST*) MATTRH. Great losses to tho postal rovonue arise from the neglect of postmasters to collect the | oetage, as rciuirel bylaw, on printed matter, boll) transient and periodical, stnt through tho mails. It is known to have been left la arrcar for years. Tho rates on transient printed matter and on that sent to regular subsrtlbers are different, being higher on tho former. m The evil. It is believod, will be greatly remedied by an onactment providing that unit copy of printed mattor upon which the postage for at lea-t one qunrtc shall uot have been prepaid, either at the office of mailing or of delivery , shall be rato.i as transient in.<tter, and iho pos tage th-reon collected on the d< livery .<? each <" py. l'owcr should also be given to the department to flue, at the discretion of tho PostmfMter Geunl, uot exceed ing the s m <if five dclla, s for each offence, any post must i who shall deliver, with mt payment of postage ,w requited by law, ar.y printed mattor arriving th ou^lx.

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