1SGG. G TUE DAILY .ifiKiKG TKLEGIUIIa. -rilUJELrillA, TUlifeDAY, UlX'KiMBElt 4, Ccntinitril frwn '.h Ttc.ond Paqe 1 It Imi been brought a trie notice 01 thin oHice m re. est.tciiflly iiiulim t'e rXislycar, Him, trom mini pro Inn' Ion of ilio bt . i-otiKhlcraijln sums of moncv have lwn erronrou- ly collected oi taxpayer! in the 8 ate' lnlilT l l-urivMiM which sums bve been p - Id into the trw.sury te- United fctutcs. t'la'ins lot re unilitiil tnese sums out, in several ms amies, boitn pro.iontoi, kut as the r lave bewi ennvye i into ihs treasury no eihcei 'in vitlirir.cil bylaw to mike restitution. Tn iwretary ot ,n( TonMlr,( tliroutrh this oftlco, lis ivu 1I cr.ons onder wh'ch their precise amount win he ase'rcalm-d, together with si, tne circtiinttani;es under "hUhut Nmnwtn paid. It it revpecttuny rnoom an'iB.tMt that, tho It be no amended that the . -orotarv tee Vreamry may reiun t such sums M be shall una a lc-ue. . . 'I k4 nnslflnn nt Wo Vlro-tnln with reference tO the jfireot tax Ian m a peculiar una Tne an wttlunmnnt to VlriUnln of IHI M m mails heiore West Vltiilnla i "we created out o a pottrnn ot tint f-tatot and while the llrem tax commwaniiera htfre pro-eeutod 'be r lutnni tn Vlr. In la In ormtonnPy vlth the act of IHul. i ' Wnlftt Virginia ,- m.i 4iOfN fltlS'lor. J!e1 tO aMUlQO hOT M-oortloiiinem. nor. Indeed has Its amount boom nra- rwrly determined, its odlcers aim It representative both branelxM of I'opernfs, have exnrossel their ' leartlnen to discharge their obligations wuenever thev -arepioper ves'.abtMir-d the apportionment shoifl 1 Iw 'made by act oT conic at It next session and the privilege of lit ttsiuu pt Ion by the stato bs given a In otter cases. 1NCQMR TAX. Th port' awiof tlio law of 1R64 which ro'atos to Iwsoms wa but ml fyitty touched by the act panted at the last ss slonotl'o attrrn. VarroireaniendineuUts It were adopted by the I jt,aq oi Kcpresentailves materia ly improv ing It nmcirv- and wcneial requirement; but the wnpossil ot iheir passage in season lor the annual assessm , ni .ol ihe current . ear and -the stesstire oi n ore It flnomant business, Induced the rtenate tod.or tbelrc oldertou 'ibcy wil piobab y -lie presented liuusi curing tbe coming winter iu a nm m uuui m tlM-e amendments the most Important wa. p hups . Hie exemption noin tax oi one thousand iloliu mnt 1. . .it hnnHmii la tiiw Drnvldcd. li WM. per- unit oi cn we the purpose of the law to exompt so mucU ol ,le a. Wlx hundred dollaiswa believed to be the mint m' n expense of such at the tlmo oi the passage ol ti e 0 lit law. Hlnoo then he IntiTnal'tax upon coininoill- ii the Increaae of eulonn dutt, and the depreciation ' tf thecturency have wrought aa almost unlveriial ad vance in prices and I oe iVve the same reason now vslet to tlra Increase ot tnei-amonnt of exemotion which atflriit'ccureii any exemntion whatever. Hh"ii d this change be made, ihero snould bo acorrea inondlng ainenUiiu nt to thatluortion of the law relating io the tux" uium salaries of persons employed in the aer vlce of tbe ii neml government. In determining the amount of taxable Income andor ' Hiie pro- n' law profits and lose iroin transactions in real estate are cons Ider 'd only when Its sa'e Is In tbe mim i ear with lta purchase This nrbltrarv rule Is not wade' applicable to poraonal nropo tv, and as there .seems to bo little reason lor Its existence at ail, I believe It should be amended , , The ptesent Income law expires br limitation In 1870 OTUEB HOIlFr0AmOK8 Or THS LAW. ' Various amendments. In addition to what I have sag- Vties ed above, seem necessary in order to make clear Mid positive wbat Is more or less Involved and doubt ul In teverai parts of the law. but tbeir propilety can bo more fuHy and atUfactorllv presented to the anentlun f the appropriate committees of Congress whea a revenue bl I is before them tban within tbe proper - limits of this roport. . . . Tbe Immense rcvenne of the last fiscal year wat ralsed-wltb probabl' less pressure upon tbe people than tba of smaller amounts In previous years. 'I heir enterprise and spirit ol accumulation have prevented the depression of business which ordinarily attends 4ieavv taxation. Their means for the ultimate extinc tion of the national debt are rapidly multiplying, from tho Increase of population and the constant develop ment of new sources of wealth. The reduction of taxes will stlmn ate production, and in a tew vears the national debt will cease to be an oMect of anxiety or ' -even annovancc to a ttreat and united pcoole. The unusual deirauds upon tnls office, arising from the extension of the revenue system over the South, ana ihetadlcal changes in some parts of the law from its recent amendments, have for a t.me larger ln- reaned Its labors and responsibilities and I chuer.nlly .jtoJtnowlcdge my Indebteduess to tbe uouoiab e Hocre- tarv .of the Treasury for his nnltorm support, and to the officers and clerks associated with me. who have jalthlullv and diligently discharged their duties. 1 am, sir, wlin great respect, your obedient servant, E. At ROLLINS, iHon. n. Mcrrjtxocn, Cowm'ssloner, Secretory oi the Treasury. INTERIOR DEPARTMENT. ""Report of the Secretary of the Iutcrlor, Hon, O. II. Brownlufr. - DePARTMKNT 07 THE lKTERIOR, W ABniOTON, D. t! , iNoveinber 19, ltJOU Bin I have thu honor to fubnnt the loilowintr exhibit of tho operations ot "this Department, and of the varied and (iivorilletl interest, connected with the branches oi the pubiio service committed to its supervision During tho llscal year endint? Juno 80, I860, puilio ,' lands were disposed of as tollows: ores sold lor cash. 838,24 15 ' euteied midor tho homestead acts. 619 8J " loeated with military warrants. ... 4' '8,1811-0 J " approved to Htatesas swamp 1,199 6o8'27 " approved to Statot tor railroads... 91,598 99 " located with agricultural collena ' , Msrtp 651050 60 1 4.629,812 87 During- 1be same period, 6,423 084 13 acres were - offered tor sale. The cash receipts Irom sa'ej and mother sources were $824 64d'0d. The number of v boniest ad entries exceeded that ot the preceding 'jear by more than sixty per eent. there are sixtf -one land districts and ten urver "Jog departnmi.ts. During the past year surveying operations bave been prosecuted with enerxv in , Jdiiitiesota, Dakota, Kansas, Nebraska, Colorado, CaJilornia, Oregon, Kevada, and Wielniiton, but liave boon acterred, ou accuuut ot Indian hostile ties, ln MentMexico and Arizona. The anomalous , toudition ot a Hairs in Litah has prevented any sur x reys there s nee the Tear 1857. At that date two a md a half million acres bad been surveyed, lu order l tat they may be , disposed ot, it is recommended ti tat a land dibtnct be created in tbat I'erritory The eut re amount ot the public domain is 1 . Mtib 468 8U0 ao es, ot which 474,160, 6il acres have be en surveyed. 1 '.t bas been the cherished policy of the Government to assure upon the most literal conditions to tue act nal tettlir a title to his borne and improveraonU. ii,s preleronoe right of purobaso is not confined to lam w which were surveyed at the tim of his settlo toei) t "" be rtqu red to pay lor them, or lor tbos surveyed but unolered, until tho day desig latei t by the l icniuent's proulamntion lor the pu ilio .sale. Diflbrences or opinion exist as to tiia applica bility to particular localities of some of tne acts of ti ongi vss piescnblua- the period wl.biu which the ax e at itory stalemont lor nnsurveyed lauds must be 6H6d. distinction ought to be made in regard lo ttu tint e allowed lor the payment for uuotfered lands ul ' th.o which bave been oAered. 1 co .cur iu oia ,on the Conunlssioucr oi the General Land OUs ,lle chaueit that might be advantageously mait' ln xi8tiD' pro-eruption laws. Tbey also shoh 1 fS timpUned and rendered more uoi lorm t n tJteir operation. In this way controversies such a ' littv0 eea occasioned by incongruous and coi.flict 1'rovisions will be avoided, and tbo benefit of uis wio juot po lcy eliectua ly aecuroil. . . - T he rim " the pro emptor attaohos from the date of l. '"Val Personal sett omontj that oi tho bomcbtead "ettlur Jrom tbe rfuto ol Ins entry at the local land oAV?0- 14,8 lRtlor 48 confined to surveyed lands. Id etv ner cas the title may be consummated by a lull corn,,",nc w'th the terms and conditions linposed by U' 'w undor ivstieh it was initiated. A warty wbo t'9 settled, with a. view to pro emp tion,tupon;apat tlcuiartract.and thus excluded others Irom ai quiring aright thereto, -should ,not be per muted to alwvJt. ln his original claim and. enter tuo lrnd undei -the iomestad law. tiutih a privilege would, in nianysViwandos, Inevitably lead to groat abuse. The modes presented lor actjutrlng title to land by these fa,Wtuieut essentially .dtHer; and it the claimant auvr a preemption law Jails to per lorfi tbe condition whiotr Jt enjoiue, he -sbould ir ear the consevUL' es otsutw failure. Aalbority shovld 1 e given to the ivad of the de partment to close. np Vie local oUtce, aadtnuister i s aronitv'j, where tbo lauds ln a tate are aarly all .dispose! ot. I be lowet vested tn tbe loeaf ollicors tnigbt If conferred Upon the Ccmmissioiuer oi tho Oueral land office,- to enable him to give ft'.tle on the ia.eo( tue lew ieius&u!ir tracts. A lew tr;ts have ;been. entered in Calrorala at ihe m-nlmipr. price ofrwenty dollars per acre, under be supplemental act tif March 8, 1865 . lor the dis posal ot coai tvods. The propriety of reducing; tills minimum, wburo the coal is of inferior jaa ity atid cannot be obtained without Cilhr ulty, is submittoii lor consideration, i'be srtij ot theoal Igutis ot the United States is esti.'i'Wtcd at two luidred ttttmsand Aqnare miles. iand olllccs bave bet n reo-peheJ In Florida, Ala bama. Jdississippi, JUvU iana, aud Arkansas. By the act approved June lh6', public iacde in thosa States are reserved exclusively tor how at lead en tries; and for tbe period ot two years fromibe date of its passage, only eighty acres can be eutt ed uy one person. The opinion ot' the Attoruoy-ljevoral that pauints for lands sold tuider the revenue iw ' must issue Irom theUoneral lyaadOuioe, will govt ti tbe action of this department. The law lorbids any inoumbent in the General Land I dice to pun-base public hinds. I surest tbe propriety of extending it so as to inoluae every ollioer in any way connected with tbe administra tion of tho laws relating to thorn, Tbe grant to Iowa for tbe Improvement of the Ues Moines river bas been lully satjad-d. item tjiaoed eight hundred and thirty-three thousand and seventy-nine and ninoty hundredths acres. There still remain unaold seventy-seven lots, situ ate witbiu the Fort Howard reserve, in Wisconsin. They will be disposed of in accordance with tbe ao ol July 4. 1860. , Up toVuue 80. 1866, lorty three million two hun dred and lour tbouaand seven hundred and seveuty Juux fWvf ft fwawp Unit bail imu itwN t tn srviral Htote, and the ffirregato I" rfemnity to thorn , on sccoiiiil ol ucli lr,d. sold prt otlirrwiso ti Imposed ot by the United Hlaies was tl, ssh, llvo hundred 1 and ninoty revet thousand (,0 ,unnr,.d Hj ono do iars and thirty seven a .nu, and. in other land, ! lonr hundred ami sevy cinhttlioman I mid thirty- six and ninety tliierv O'jntlreilt acres, ltisrocmn- ! mciideu Ibat tbp .jw.o lor nurnitf so ections ot such I lauds t liroito',, t two yCRri atter iho oillciftl p'.at is received at t'o focal olco. and ttiai tle purpose ol t oogiess li4 tftAtion to this nu Ject be exu icitly d ! eland. luMrvct tis have brn issnod to the 8rvevor- Cji-Micvti I Wid tho loo illliccrs la t:nlll'tnia to 'rvo lull and Ttnnmarv efltat to the provisiiins of iho HSt Ol Jnly "l!8 18, "toqiiint land titles in California." i lie legtstots ana reco vers SM)t as aein " tri rn nt to prevent trespassers on the rwhltc lands I rem removing; timber tlurelrom. Hy imubsinft tlifs. and cumtrolling tbe offenders to enior the Uots tresi assexl on, thP tiovcrnmcnt lias been, to a considerable 'ent, 'protected in Ms 'rich's. A bona itie eettlvr is allowed to life the timicr on bis o aim only m tar as may te necessaiy lor indispen sable Dfcs. TIho tonimi s oner presents the impor! slice oi prosnotmg by legal onao ments the p anting and growth rl trees tun the iiuhiie domain, aud ho sugg' sts tbe modo by which that Object may bo accomplMtrd. Under the donation laws, pntrrits for one million two hundred and elght-two thousand four hun lred and twemy-tbreo and ninety-three hundrentlis acres f land in Oregon havo be. n Issued. Add tional legislation Is rcoommended to enlorce tho survey ol ilona4tn-olaims on which settlement was made prior to the public sutvejs. ItrolTi' .'bundred Indian patents were Issued during the lust fiscal year, lor two hundred and nit.f ty-e icht thousand two hundred and fifty-six acres ol land. . . ... Attintien bas been repeatedly invitod by this de partini nt to the tmmeuse valuo ot the deposit of I fcctoiis tuetals within our territorial limits. The mmeial lauds on the Paclflo flopo beiong to tba Oovernmoit. but it basnot provided lor the disposal cithern, or lor tho development of the treasure which they contain. In the absenoe of legis atiou by Congress, and with it taoit consent, these mines have Leon worked by lndiviauals, vast expenditures jtiartp. and a species of possessory right acquired which has been recognized by State laws, and main tained and vindicated bv Btati tribunals The act of 1-eliunry 27, 1865, decla es that no actiou in the courts of tlio L'nljed (States tor tho recovery ol any milling title, or for damages there o, shall be aficcted bv the tact that the paramount lit o to the laud on winch such mines are, Is in the Un ted States and the rjupreme Court has held that mining interests, apart Irom tbo fee simple rights m tbe soil by patent, txistcdbclore tbat act, with the implied sauction of tbe Kedoiul Government. Tbe exploration and woikingol these mines have Jargoly contributed to the national wealth, aud our legislation should, I submit, be controlled to some extent by existing rights and interests, which are the legitimate results oi our policy of inaction. The wisdom of Congress can devise roeaurcs which, by placing, this vast interest under the control ot positive law, will render it UiLutary in a gi eater degree to the public piopj erity. Uy reason of tbe increased rates of pension, more than thirty-three millions ol dollars vill be required lor this branch ot tbo servico during the next Usual yiar. Sumuel Douniner, of Edinburgh, Saratoga county, Keu York, is tbo on y surviving so (her ol the Revo lution. His name was lnadvoi teutly omitted in the lusv annual report ol the 1'eusion Bateau to this deportment. II e i,amesol nine-hundred and thirty-one widows ot revoiuttonarv soldiers appear on the pension rolls at tho close of tho last fiscal year. 'Ihe invalid pensioners disaoled In the wars prior to that of 1SU1 do not execeo t.ireo thousand. Ihe widows and minor chiidienwho reci'ive a pension by reason of tbe services and death of tl ose who served in such wars, number oue thousand two honored ar.d twenty-teven. During the last fiscal year twentv-t wo thousand six bunored and foity five original applications for invalid pensions were granted. At au aggregate annual rate of one million soven hundred and filty six thoosaud eight hundred and twelve dollars and twenty cents. Ihe number of such pensions th tt were increased was one thousand t vo hundred and aaxty-thre, at an annual amount ol increase of iorty-three thousand nine huudred and forty-six dollars and t went) -Ave cent?. The total amunuc awarded to army invalids during the year thus appears to be one million eight hundred thousand seven bundred and sixty-four dollars and forty-five cei.is. During tbe same period Iwenty-seven thousand and seventy six original applications of widows and dependent reiauves ot otheer aud so diers of tbe aimy were allowed, at an aggregate rate ot two million seven hundred and ort -three thousand seven hundred and eleven dodan and sevonteen cents per annum. The incrcastd a lowanco to sued petsoi.s was two hundred and ninety-nine dollars and ten cents-: so that tho i-um nqu'ioa to moot pension claims of this t'escrlptiou allowed during the past year is two nut Ion seven hundred and iorty-ldur thou-and and ten dollars and twenty seven cents. The whole number ot rew army pensioners of all classc. added to the rolls during the year end ng June 80, 1866, was, accordingly, lorty-nino thousand seven hundred and twenty-one, and requiring lor their pavment lour millitn Ovo hun Ired thousand live hundred and twenty-three dollars and thirty seven cents per annum. 'J he numberdropped trom tbe rohs during the samo period, on account of death or other causes, was n-ne tbou-and three bun dred and lorty-two, whose auuual a lowance amounted to eight hundred and eighty thousand one bundled and seventy-three dollars and sixty two cent. On the 0'h of June last there were on the pen sion roll nltv-lour thousand six bundred and twenty Invalids, w bote j early rate ot pensions was liur million one bundred and twenty-eight thao'and seven hundred and eighteen dollars and fifteen cents; and sixty-nine thousand eient hundred and eighty nine widows and dependent relatives at a yearlv rated seven million two hundred and e gbty tour thousand tour hundred and tour dollars and eleven cents muklng a total c.l one hundred and twcbty-lour thousand five huudred and nine army pensioners,. at an annual aggregate ot eleven million lour bundred and thirteen thousand one hundred aud.twci ty-two dollars and twenty-six cents. Inc'uding pnyments to pension aveDts, the amount paid during theyear tok evolutionary pen sioutrs was two hundred and titty-two thousand two bundred and lour dollars and thirty-eiglit cents; to army invalid pensioners, three million eiaht bundred and tllteen thousand eight buu- drtd aLd lire dollars and tour cents; and to widows and dependent relatives (not Revolutionary), nine million one bundred and nine thousaud tour hun dred and thirty-six dollars and seventy cents giv ing the total sum ef thirteen nil lion oue hundred and seventy -seven thousand lour hundred aud lorty-stx dollars at d twelve cents. During the jear, two hundred and thirty-eight original applications lor navy Invalid pensions wore allowed, at an aggregate amouut ot eighteen thou sand nine hundred andtno dollars and fifty oeuis per annum. 1 wentt-llve such pensions heretolore allowed were increaseo at an aggregate aunual rate ot nineteen thousand eight huudred and nineteen dohais und fifty cents. Two hundred and eighteen original applications of widows and dependent re a tives ot cfjicers and sean cn were allowed, at an aggrt gate ot thirty-two thousand nine bundled and Beventv-LX dollars ier annum. The total number of navy invalid pensioners on the rolls at tho c ose ol the fiscal year was one thousand aud thirty-t vo, at an aggregate annual rate ot seveuty-two thou sand six hunured and ten dollars and live cents. Tbe number of wiuows and dependent relatives was one thousand oue hundred aud eighty-one, at an aggregate annual rate of one bundled andewacy, eight thousand seven hundied and iorty-two dollars making tbe who'e number of naval pensioners, of all classes, two thonsand two hundred and thirteen, requiring lor their annual payment two bundred ana sixty-one thousand three hundred and filiy-:wo dollars and five ceata. The total number of pensioners of all .classes, army and navy, on the ioi s June 80, 1866. wan one hundred and twenty-six thousand seven huudred and twenty-two, aud the amouut paid pensioners, Including expenses of disbursements during tuo last fi-cal year, was ihiiteen mUltou lour hundred aud filty-nine thousand nmo huudred and ninety-six dol ars io i tony-three-ceats. 1 his amount includes ninety-Line thousand two bundred and thirty seven dollars and 111 tee u cents paid to one thousand and iortv-tbiee pensioners residing in the H tutts whose inhabitants were lutely in rebellion. From (be date ot tbe rsecuuve proclamation de claring tha inhabitants ot auv Male to be in a state of Insurrection agauitt tho United States, tbe names of nil pensioners residing ui.aiich ttute wero stricken Irani tbe rolls. Intercourse with them wai, by tue Jaws of war, the legislation of Congress and the 1're sidiMifs proclamation in pMrtma.uce thereoi, sus pended so long au such hostility .continued, but the right of inch pensioners as renmuied lota to tbe UnitCkl Mates was saved by the act of February 4, 18b2. Their names, on making the r wnlred proof of cautioned loyalty, are accordingly astored to tbe rolls. Air Atioruey-liaueral fenced, wlume opinion on tbe subject was taken by my piwsecessor, hold that the retored pensioner was entit edca the arrears Oi the W nslon which bad accrued since tbe last pay uu t-t to him prior to the tfebeliion, and the pruc tic oi the Government has Uwn iu coulorinity to that ot)ii.nion. - " i Tba nuVT pension lund, accialua from the con rleiunation tind the sale ot prizes, and invested In bands of th L'JiMed Klales, amouuU to eleen mil lion seven bundled nd nlty thousand dolltra. The mbaiest on this iUy;stroent is more than doth' Uia aiuaunt neceaaary to fy tbe navy pensions There 'is a so an uninveatd surlui ot two hundred aud , liv tbobiwpd seven huudtaj 4ld thlrty-oigui 4l' . art and thirty five ccaie. IMirin't the ast year four hundred and six bou ity land wt'iraula weieisuod f.r sixtv ilnoe thounl iibt hui dretl aim nxty acres ot land. 1 1 e Cimmissitiiier ot rcn-tons reprr ti l ihtt a coiisiceisb'o number Ol addsiional e'erkj iainds- ii sable 10 the prompt and (IViuHjnt transaction ot t.ie busiiii ss ol nis ollioe. The bi.ltti rcorpanizo thu ch inal oico oi this departtnont, revoiiimoinloil ny my picdec sor ai dpa-sed by tho Senatj at lliolrtt fi'tnon, wou d liae atrorded a partial lemcdy; but thu cl anpes mado In the pension laws subsequent to its miroduct on reuilor lis provision Inanequ lie to the picent and Increasing wan a of the sorvico. 1 1 e esses during the yeur exceeded, bv tenty-Hv0 percctit , those d aposcd of lunn that wtiio.i pro ceded it. I ho labor ot the Hlioe during lla current year bns iticcaseo In a Trmch creator ratio, aud is narlv II i ot quito twomld groater than i ever de volved upon it lor the same length ol tlmo sjiico its otgaiiization. NfitAithstanrt ni Xh-.a lmnerativo ni ccsnitv for a well oteaii aed loieo, sevoiul years have oiapsod since any poimanont addit on to it was mado. t'he auihontv t -einplny tempoiarv cerks ot the first class has been given, but it scauie oniv the ser vices ol iirc copy is I. The business ot the bureau must tall In arrear when in-utlicient means are Inr riifbed lor trsnsaoung It. ISO d ley, -other than that alnob is unavoidable, should be suffered to occur in awarding the pensions provided bv the country lor tnose wbohave such slreng claims upon iia kratice and latitude. I n case is respect itil y piescn cd to Congress, who can alone turnlan tbe unrerty, and whose early lavoraole acilon is spe cially ano earnciiy invoaea. Dtliug the year ending beptenber 80 1860, there were tnurleen thonsand and tlmty nine autiliea- tlons lor patents. E.ght thousand seven bundr d and six een patents (including reissues and assun) wfin issued t lourteen huudred and fifteen au.'l cn- tions wero allowed, but patents have not issued thereon ly reason ot the non-payment ot tho final ' leesi tvent) -five hni.died and seventy-nine caveats ere filed, and tittv -live extensions ol patents were gianicd. During the same period the rec tints wore four hundred and sixty thousand leui bundled and six teen dollars aud ciKbty cents, and the expenditures three hundred and loiti -turee thousand six huudred aud ninety-seven dollars aud seven tv-three emu, It aving a ba ance ol one hundred aud sixtoen thou sand teven iiunoted and nineteen dol ar and soven ceuis. which, added to one bundred and e even thonsand live hundred and seventy-eight dollars and nine cen cents, the balance on hand September 8J. lfcO, nmkes the amount now in iho treasury to the credit of the patent fund two hundred and soventv eigbt thousand two hundred and ninety-seven do! lais and seventy-six cents. The company xcpoittbat In April, 1865, Ihoir en ginter commenced an extended reoonnotssauce of the country east ol Great alt Lake, with a view to find a practicable route over tho Wasatch mountains to Green river via Hpanish Fork aud the Winta. After at-cending the Spanish Fork to its headwaters, he explored the whole distxiot ot country lying be tween the huudred and tenth and hunured and eleventh meridians ol longitude, and between the parallels of lortv d-grres and forty d'greos aud thirty minutes xf latitude. 1 be results of these ex aminations satisfied him that such a route could not be lonnd. Ihe survey of the line by the way of the valny of the hwtet -yater, the south pa s ol tho Kocky Moun tain, and tho valley ot black's Korx of Green nvor, was then commenced. It oi ablished the important lact that the summits of all the passes of which sur veys had been made in tho great ranges of those mountains have very near y the same altitude above tide-water. Further examinations were made by the company's engineer in tbat region, the detai.s of wbioii l ave not betn furbished to the department. One of the mot important ot ibis Company's stir veys extends lioin Great alt Lake we-t to the Hum bo at valley, botween tbe hundred and fifteenth and the but dred and sixteentb merid an ot longt udo, traversing the dieat American desort. Although incomplete, it has rotulted in tbe di.-coveiy of a line, with grades not exceeding sixty teetpermiie, Irom Great ealt Lake City to tae valley ot the Hum boldt, across tbo Humboldt range ol mountains, a distance ot to hundred and eight miles For about oue hundred and fifty miles across the deseit no Ircsh water was found by tbe engineer, lie U satisfied, bowevtr, from his examinations, that it can oe obtained in the t asses over Cedar mountain, on Ihe en tern sine ot the deseit and the hrst rauge west ot the desert, leaving only sixty miles without flesh at r. The aoil ia admirably adapted to a Une baxi read bed Tbe resuiia oi the eurvoy are satirlactory tl the company, and .-how tba- tho dif ficulties to be overcome are much lets formidable than were anticipated. " - - - Ibe Comjany report that Iho amount actually expended on tbe road in money is uine million six hum-red and ninety thousand and eight t-two do -lara and one cent. Oi this amount throe million ono bunored and tbiiteen thousand two hundred and twenty one dol'ars and twenty-live cents have bee a derived from the sale of three million two hundred and pigmy thousand dollars ot Government ootids, three million nine hundred and oue thousaud three bundled aud fitty-seven dol ars and one cent from loans, and two million five hundred aud eight thou ana a yen bundrea aud twenty five dollars liom stock subscriptions, fhis amount does not emoraoe the indebtedness to the contractors lor tbe first two hundred and forty-six miles ol road, expending from Oiuaba to the one hundredth meridian. Their com raot expired by the completion of this : poit ot tbe line, and when lue wboio inuebtednesi j ol tbe company is adjusted, the entire expenuituie, j iuo.uding a million ol stock, which the contractors agieed io take, will not tall short of twelve million j five hundred thousand dollars. 'Ibe amount ot ihe ! company's loans is three m liion six. hundred and sixtve'ght thousand two bundred and birteen dol 1 Jars and ninety-five cents, lo meet ibis debt It has five mil too tour bundred and eighty thousand dol I lars of its first moitgage bonds unso d, and live bundrec and sixty thousand dol.ars ot Government bonds. Ibe amount of bonds actua'ly executed is three mil ion live but dred and sixty thousand dollars. i Ihe ccmpany is entitled io issue tue io lotting ' amounts: First, for two bundred and forty miles of road accepted bt the1 Govornmon', thrte million ; debt hundred and forty thouand dollars; second, for one hundred miles in advance, one million six , hunaied thousand dollars, making a total of five million lour uundred and lorty thousand dollars. Kone of these bonds bave been oll'ored lor sale. They are made, bv the act of Congress a lien prior lo that of the Government, and it was de -med advi sable to wait, Lelore negotiating them, until the work bad made such progress as to give to tue publio the assurance that its successiul completion was no longer a matter of doubt. They have, thero lore, beeu used to a limited amouut as a basis lor tempoiary loans. The rol'ing stock on the road consists of twenty one lee-. mouve, one hundred and fifty-six Oit, lorty bix box, tbirty-iive hand, and live passeuxer cars. the Union Pacific Kail way Company, eastern div.s'on, havo oonstructeu their road to f ort linev, one hundred and thirty-five niile arestot the Mis souri river, ot which one hundred and thirty have been accented by tne Government, thus tiivmg a continuous line of rai.road aud telegraph lour hun ortd aud eighteen miles west ot St I.ouis. They have a so cons ructed branch road, thirty miles lr length, Irom Lawrence to Leaven wor b, which affords ihein another line ot communica iou to tbe Missouii river. The Commissioners, under date of September 28, report that they havo examined, and they ruooin mei d the acceptanceoi, an additional seotion of the road of tbe Central l'acifio Kailroad Company of California, making a distance oi seventy-four miles trom Sacramento. Tho Company reuorr, under date ol the 18ih ultimo, that they havo constructed an additional tection ot twenty ratios, reaching at the teiunuus an elevation oi about sixty-one bun drtd leet above tlde-waier atSacrameuio. , A force often thousatd men is now engaged in grading the next two sections; the ties are red stood, equal to cedar in durability, and number about twenty-live hundred to the mile; and the cu. verts are constructed of sri.nl e, or other hard stone, ex cept in ihe valley, where bard-burnt brick is sub stituted, as stone cou d not be procured. Tbe bridges are madeofthe best quality of red fir. 'Ihe drainage is ample, and the road well ballasted with with gravel and broken roak. The trades are necessarily high. The maximum authonz d by law bas been readied for a distance ol thiee and one-half ones. There is no dithcuty in operating the e poitions ot tbe road. 'Ibe passenger trains make tweutv-flve and the li eight trains t weave miles per hour, Ibe company expect to reach, during next veae, the Big licnd oi the 1'ruckce liver, to which po ut the toad has been permanently located, a distance oi one hundred and ninety-five miles trom Hacrainouto. Taey allege that their expenditure exooous twe ve million dollars, and they entertain no doubt that tbo road will le completed to eialt Luke City during tuo year eighteen hundred and seventy 1 he Atchison and 1'iae'a l'eak Railroad C mpaay have completed lorty miles ol their mad v. est from Atchison. Ibe coiu'iany report t.iat they bava on hand six locomotives, two passenger, oue baggagd and exiprcs-, lourteen box, and thirty-two flat ears, three tanks, and two turn-tablos, etc, with a ma chine shop and a blacksmith shop e tnpiete. be touner beuv built ot a' one masonry aud covered With an vo root, aud they are now engaged in .he erection ot a round house Tbe road is generally built la a very substantial manner; nearly all the bridges and ouiyert are ol tne best quality oi solid masonry- The lunger span bridges are of the Howe truss patient. Tie road-bed for the next thirty n ilea ia nearly ready for the superstructure. The ' ties. Ir.-n, chains, and spikes for the same are on hand or in transitu. The eoinpaay rupoit au expen diture, in Ihe construction and equipment oi tbe Into, of two million three hundred aud seven thou- sand six hundied aud liity dollars, They onti (tl txf eel t'.at sixty mile.'ol road will be com peted I y u; 1st it Januuiy n -xl. i ne i siiru I n ci io ll.jilro.id Lomiiinv mod, on the 3 I. oi Use July , tl tir occep ance ol the pro- svtiis and rotirtilioiis of I no resoltrion oi t tin- cvTss extend n Ihn time for tho construction ol HO Sirsi section ot twtnty n lies of i heir road, approve I Alai 21 lUifi. On the ill iustitnt this Uepmimonl r i cm veil llm tenort of tie Government Coiiimis- fl. ntrs, slit wing the completion ami iqulpinent of that section It extends Horn .-aii ,ioso, in no dinct.on of Facramcnlo, io a point in Alameda county, a distance ol twenty miles. the report ot tlio 1'rcsulent ot the Floux City and l'ao flo HailrcBd Company, under date ot theltitii instant, sels mrth that renewed surveys by their enameers, during ti e tast sea-on. junily and cou Dim the opinion that tne most aircct and practica ble route irom Sioux City to a point which ihuy have selected upon tho Union 1 ac tic lUilread from Oiuaba, u on tho eat silo of tho Missouii r.vor, to aciosslng near Ue 8oto, Uicuro via Fish creek lo the t'lalto Valiev, ami thence to the point oi con nect on with the latter road at Fremont, forty-six and ore-hall miles wet Irom Omaha. It is also slated that the graoing ot the northern sixty Piuiit miles has Leen placed under contract and a force already enraged on Iho worit. The company a t anancd to construct about a-x miles of road.wliion will connect its line very advautageously with the Ccdar-KapidB lUilroad, at a point where it is ex pected that the latter road will roach the Missouri ltiver valley in a low davs. 1 bore is nothing on fl.o In tho department to show that the C ompany authorized to construct tlio At lantic and l'acifio Jia.lroad by the act ol Cougress approvtd Ju y 27,1866, have accepted tun piovisious ol the act. The work en tho wseon road from Jfiobrarato Virginia City has been continued, though wit'i seri cus annovanco irom hostile Inoiaus. Ihe route has bed shortened nearly one hundred miles. Cpriations on portions of tne pmjooted road trom Sioux City to the mouth ot the liig Choyeuiie river have been prosecuted wit a great aotivnv and sue-cts-. That pari between taeini ial point and Vault ton, with tbo exception ot tuo oridges, is finished ana in pertect oraer. The bridpe over the Big Sioux liver is leing built. If ibe construction of it does not eLsorb the appropriation now on bund, tho re mainder will be applied to tho completion of the bridges over the Vermilion river and the James, A prthenced Indian d fliculties nave prevented tbe extension ot the toad Irom the mouth of the liig tluyti.no. Iho superintendent of the road f om Virginia City, MontanD, to Lewistou, reports that a conside rable lorce is employed. Tte tunds at his com mand will not, In his opinion, more than sullies to locate and cleat out a trail ten or twe.ve leet vide Irom Lewiston to tbe valley of the Bitter Root. Fiom thence loads are already open to Virginia City, be pielers tbe rou e by thu Loo-Loo Fork , though it, in common with the other-, is subject io obstruction Irom snow during one-ha l of the year. F'tom the report ot tne architect ol the Capitol extent-ion, it aupcars that tbe uoithein aud western porticos oi tho norih wing are competed, and the columns of the southerntportico are soon to besot It is believed that the ensuing year will witness tha completion of all tbe porticos. Llfbru have been mane, which it is hoped will ptovo successiul, to lmi rove the imcerfeot aid objeotiouabio ventila tion ol the Senato chamber and hall ol the Uouso ot Kepresentatives. In order to obtain a suppty of a r that shall at the same time be pure, aud, in tne summer, oooi, it is proposea to construct trom each bail an underground duct, opeuing in tbo cenireot a louni am in the eastern grounds. The jots and overflow would at ouco assist in cooling tbo air, ana serve to roiieve U ol all mechanical im purities. The balance on hand of the appropriation for the fapl'ol extension, October 81, 1866, was eighty thoubane lour hundred and ten dollars aud eigbty tl. roe cents. 1 he architect estimates that to bun died and fifty thousand dollais wid be requ red to continue Ihe woik during the next fiscal year. iheapptopnation lor lighting, by means of gal vanio electricity, tne one thousand and eigbty-turco gas-burners of the dome, has proved a complete success. Tbey can bow be lighted in a few miuutes Au Interesting report on this subject has been pre. pared, at ihe icqutst of the commissioner ot fuulio buildings, by tuiee e.ectricians ot reputanou, and is annexed to his annual rapoit. 1 he sum of foity -eight ti.oin-aud four hundred and eight) -one dollars and seventy-nine cents was ex-, ponded on tbe dome during the year ending October 81, lHtxl at -which date there wa on banu a balauco Ol one thousand Ave hundred and tinny nine d-. liars ana hfty-nino cents. An appropriation! ol lliteea then and dollars will be required to complete tb a woik. Tbe belt bet een tho second and third cor mots of tne rotunda should be ornamouied by a series ol national pictures, or in some other appro priate moni.er;aDd dosians lor Iho purpose 'V ill bo lLvncd Irom eminent artists, it Congress confers tho rcquuite authority. i iboextens on ot tbe library is nearly completed.: Tbe work bas been done in the most substantial ar.d e'erant style, and tho rooniB are now an appropriate' setting lor tbe rich literary treasures within them.1 it is proposed to heat them with steam irom the boiieis in the basement, by means ot Gou'd's appa ratus. The Commn-sioner oiL'ublio Bui dings urges, on sanitary grounds, the nicessityot warming ibe pastagi s oi the centre building, and improving the manner of heating and ventilating tho feuprome Courtrooms, Tbe expenditures ou the Horary ex tension irom Oo.ober 81, 1866, were one huudred snd thirtj -seven thousand nine hundred and twenty six do.lars and sixti-ono cents, leaving a ba'anco of thirty-one thousand one hundred and twenty-nine dollais and Ulty cents. Tbe architect lepcats the reoommendation mado in his preceding report in favor oi iho extension of tbe central poitico. in conlormtty with the plan proposed by bis predecessor, Ihomas U. Waiter. Fcq. i I ould this recommendation be sanctioned by Congress, it wou d be advisable to commence the work at an early day, while operations ou the other portions 1 1 tbe edinco are in progress, and before the cartcm grounds are improved, tn v.ew of the anticipated early completion of tho Capitol, should the cential portico not be exterded, it is recom mended that Congress authorize enclosing the public groundsnorth aud south of tho building, and cquares numbered six bundred and eihty-sevon and six hundred and eighty-eight, sbou d the bill which pat std tne fcenate at the last sesrion providing for the purchase oi them become a law, and improving tbe Capitol grounds in a style befitting the magnifi cent eoiiice which crowns their summit. About three-. ourths of tho material necessary to coniplete tbe northern portico ot this department is on the ground, and it is expected the work will be completed next st ason. - An appropriation of twenty-five thousand dollars lor this objiiot will be required. 'a he appropriations for repairing and furnishing the Executive Mansion have been expended in a Judlolons ard satisfactory manner, and the grounds between it and the Tn asury Department havo been improved and embellished. I cannot too strongly urge apon Congress tho necessity hich exists lor the erection of suitable buildings lor tbe Federal courts. 1 be Department is now compelled, in many instances, to lease pro per. y which is lll auapted lor tbe purpose, and where adequate security is not provided for the records and files. Few bouses belonging to private parties have been constructed with reference to Judi cial uses. An exorbitant rent is olten demanded, and the Government, in more than one instanoe, has been constrained to submit to unreasonable exactions. Every consideration ot economy and propriety requires that tbe United States should bo the proprietor ot the buildings whore Its courts are holdeu, and tbat the most amplo accommoda tions shouid be luruishod the Judges and Ulcers lor tbe porloimance of their highly responsible duties. fcl am, sir, veiy respectfully, your obodlent servant, O. U. UltOW.NINQ, The resident. . Secretary of the interior. OUR POSTAL SYSTEM. Report of tbe Postmaster-General, IIou. A. W. 11 and all. Tobt Office Department, November 26, 1806. Sir: Tho revenues of this department for tte yoar ending June 80. 1806, ere $14,386 886 21, and the expenditures 16,852,079 80, showing an excess ol the latter of C965.093-09. Anticipating this doQ cienoy, a spcoial appropriation was made by aot of Congress approved July 28, 1866. The duciease of revenue compared with the pre vious year was 115 l er cout., and tho Increase of expenditures 12 per cent. Including: the standing aipropnatlon for liee mail matter, $700,000, t a legitimate portion of tbe revenues yet remaining unexpended, the aotual deficiency for the past year i only 8206,008 0U within il,141 ol amouut esti mated in the annual repc-t of 1864 1 hat portion of tbe levenues aceumu ated in de- f ository and draft o dices, under the supervision of he "lluanoo office" of this department, was 96,751, 655 80; collected by the Auditor, 2,641 07 t88; and retained bv postmasters lor salaries and ottice ex penses, f 4,904,256 44. the estimated expenditures for the year ending June 80 1S68. are 17,583,000 Tbe revenues estimated at 0 per cent, over last yeai $15 106 835 Appropriation lor free matter. 700,000 16,806,335 Excess of f xpendituies 1 776 065 For this deiieleucy no special appropriation will be required. The standing appropriations lor free mnils . unexpended lor several yuan, are deemed i suihuient. T-ue jgiiowiujc suivunia will, However, fcerquiretl tioui any liwne in the Treasury ii' ethers no api-roprmioil, vl.. : For ovenund mall trnn' nation between Atchison snd Kolsoni, and lor mar- Hf) ma i transportation between Aew orh and Ca ImrDis anno fK.K) For bt aiTtsliip ervi04 betwee' ROj.' fau. Cisco, Japan, and China i.r'one jear irom Ju y 1, lbOi it , ' , oOJO)0 lor sieamship ervice, bV.ween tno" Ciuted States nd Brai, jor tll0 ,MP0 period. . . 150 000 VrjijO.OtiO Foi detailed Information as to tho finances ot the department, reference Is made to tho lull and sails- lac ory repoit oi me Auditor lieroto appended. I he number of postngo stamps issued during the year was 347.734,325. representing CIO 816 (Kilt stun rod envelopes, 3' ,;S6 200, roptcsetitiujr $9a, 600 60; stomped envelopes tearing printed caros snd leqitesis, 7,t8 525, representing S230 000 75; stamped wrappers 1025,000, representing l'0fnH; msk ngin all ll,0R8 608 V6, a doorcase of CS68,76tf ii as eompareo with tlio previous year. 1 he avpropa e of starrped enveloi es and stamped wrappers lsstied dunng tte year cnoed June 30, lHt;6 was 80.(104 725, icprefentinK Sl,172 007 25, an Increase oi 12,H88,50. representing f 424 507 26, or m arly 60 per cent j being largely in excess ot issues during any previous year siuco the introduction of stan ped envclopts. The sale of stamps, envelopes, etc., dnrlng the past year amonnten to 12,204,729 64, or 216 .001 29 more than the issues; showing the absorption to that extent ol the stock remaining unsold in thi hands of prstmasier, which amounted on tbe 1st ot July, 1H66, to f 447,710. I he issues of posts ge stamps and stamped en velopes during the current fiscal year, from 1st of July to 1st Aovemoer. are $800,765 In oxo"si ot the Issues lor tho corresponding teriod oi last year, being at the tale of more than one million ot dollars I er annnm. The increased demand since 1st July for envelopes with printed caids and requests lor returning direct to tbe sender, if not promptly delivered to the addiess is very notable, leug about 60$ porcont. T be general ute ol suoh envo opes will tend largely to ret nee the number ot dead lottrs. liurtng tho year sixty-six cases of claims, on ac count of robberies by armed lorces, involving an amount ot C422C 00, have been acted upon F'lltv seven ol theso c aims, amounting to ft3852'04, have leen allowed nnder the provisions of the acts ap piovid April 2!) 1804 and .March 8, 1866, and n ne, aniouutli g to 8374 02, have been rejected as not coming within tho provisions of the law. Contracts. There were in the service of the Department on the 30th ot June, 1866, 6069 contractors lor tho trans por ation ol the mails. Of Mad routes in operation there were 6080; aggregate length. 180,921 miles; aggregate annual transportation 71.837 814 miles; aggregate aunual cost (7,630,474; including the compensation of route agents, local agen s, mail mo.seugers, postal railway clerks and baggAgc-ma crs inc argeof mails, via., C779.710. ihe argregate annual costfwas 8,410,184. '1 his service wjs amdr-d as tollows: Kailroad routes-Leng h, 32 092 miles; annual transportation, 80 609,467 miles; annual cost, 3,801,602, about 11 cents per mi o. Steamboat routes Length, 14 846 mtlos; annual ti asportation, 8 411,962 miles; annual'coBt.t 403,844, about 13 cents per mile. Coleuty, etc. Kouies' length, 134,483 miles; annual transportation. 37.816. 485 miles; annual cost, $3,708,038, about 10 cents per mile. The length ot routes was increased over the pro cedinr year 88,581 miles; ino aunual transforation, 13 724,420 miles; aud tho cost. Ct,808r90, the in crease arising principally Irom tho rostoialiou ot si rvice in tbe Southern states. A tab e herewith annexed shows the late of pay per annum lor mail transportion lu operation in ihe late insurgent States on the 3(th June, 1866, Cl 170 529, compared with the amount oue for ser vice actually rendered in those (States in the yoar ending with that date, S769 21S; tho dillbrence, 4013,11, re-ulttng from the fact that much of the soi vice was in ooeratiou only part oi the year. 1 ho net postal recemts from those fttates lor the same period being 8698,835, the liabilites (without in cluding tho compensa ion of route agents, local agents, and mail niessenyt-rs) exceed the roosipti by C75 88. A table is annoxed sbowinr the mail service in operation in these Slates September 30, 1866, com pared with the condition ol tlio service in the same B ates, Novimber 1 18HG, titer date to which the Btalemouta on Uita aaLjeot were mailt nomine last annual report. From (his table i- will be seen that there are in operation in the Slate enumerated ninety railroad routes, with an aggregate length of 8170 miles, at a cost oi 45S7,681 pur annum; twenty six steamboat routes, with an aggregate length of 5567 miles, at a cost of $195 666 per annum; and 1137 "star routes" (celerity, etc.). with an awre gale length of 46 442 miles, at a cost of SI 062 477 64 per annnm ; nraking Ihe whole sorvice now in ope rat'on in these Stares, of a'l grades. 1253 routes, with an aggregate length ot 60,170 miles, at a cost ol Cl 846,623 64 per annum. Compared with tbe service in operation, on the 1st November, 1865, viz. : Seventy one railioad routes, with an aggregate length of 6,242 2-10 milts, at a co-t of 437,257 per annum; twelve stenmboat routes, with an agercgato longth of 3869 miles, at a cost of C98 260 per annum; and 154 "star service'' routes, with an aggregate length ol 8186 j miles, at a cost ot S177.743 per annum, tbeie appears an Increase ot nineteen routes 1,928.65-lbO miles, and C150.324 annual cost ol rail road service; fourteen routes, 2971 miles, and $102,306 annual cost of steamboat Bervioe; and 983 routes, 88,266 miles, and C884.734 54 annual cosi of "star service;" making a total increase of 1016 routes, 41,b72 66-100 miles, and Cl 137,868 64 annual COBt, ..... Another table is annexed showing the number, tcimini, and length of Southern railroad routes not in operation September 80, 1866: tho number being only lourtetn, and the aggregate loug h 69612100 mines. Comparing this with ninety routes in opera tion, having an aggregate length ot 8170 nnh-s. shows a remarkable progress in the resuscitation of the railroad system of the Hoti'h. There being two thousand two hundred and fifty routes in all tbe States enumerated, these stat menia snow more t'tan half the wholo number to be in operation, co-uprising nearly nine-tenths of the railroad routes. All the routes in these States were duly advertised to be let to contract a part from 1st of January, 1866, and the residue from 1st of July, 1866; but on a large numlerof them no proposals were received und. r tho advertisement, and on many others the bids were extravagantly high. In the latter caso, oilers of the highest admissible rates were submitted by the Oe parlment to the lowest bidders; and in some in stances negotiations were opomd through soocial agents, postmasters, and lead ng citizens- B- all these means combined, the amount of sorvice hore stated bas been obtained. The existing contracts in all the States named, ex cept lennessee, will expire on tbe 80tu of Jane, 1867. New advertisements, inviting prooosals lor four years' service irom 1st of July. 1867, are now being i-sued, under which it is hoped all loutos ol real utility in tbe whole seel ion will be let. Foreign Mail Service Tbe aggregate amount ol postage, sea, inland, and foreign, upon tbe correspondence exchanged with loietgn countries, was C2 289.219' 80 being an in crease ot (460,290 70, as compared with tbe previous year. Of this amount tl, 810, 8 , 0 02 aocrued upon the mails exchanged with Great Britain, France, 1'iussia, Bremen, Hamburg, and Belgium; C828,84l8on mails exchanged with the Bn is n North American frovincoa, and $120,077 06 on tUe correspondence transmitted to and from the West Indies, Mexico, Central and (South America. 1 he transatlantic mail steamship lines employed in the. soi vice ot foreign Governments conveyed mails, Ihe postage on which amounted to 696,100 23, aud those employed in the seivioe of tbis depart ment convened malls, the postages on which amount d to $866,001 69. Ihe United States' portion of the postages mon tbe correspondence exchanged with Great Britain and tbe continent of Knrope amounted to $776,647 59; with the British North American FrovliiotB, C188 883 63; with the West Indies, Mexico, Central and South America, C120 t)77 05 l be number ol letters exchanged in the mails with foreign countries was 9 430 646; ot which 4,886,916 were sent from aad 4,643,630 received in tbe United btatts. Ol this number, 8,664,847 were exchanoi a with Kumpean count los, an laureate of 1,861 880 ever tho number exchanged In 1866. Ti e number of newspapers sent to foreign coun tries was 2304, 444, and ibe number reooived from foreign countries 1,881,724. miking a total oi 4 186, 166. Ol lb s number 8,828,135 were exchanged with Europe, being an increase of 29,167 ou the number in 1866. Ihe increased correspondence with foreign coun tries, paiticu'arly with the confluent of Europe, during the) ear, is unprecedented, amounting to more than twenty. live per cent, as compared with tbe previous year. - The cost ot transatlantic mall service pefrorniod by steamships employed by this department, under the provisions of the existing law, whioh allows the sea and inland postage to American and tbssea post ago only to foreign steamers, was $525,807 46. Hie cost of ocean transportation of m ills to ard from the West Indies, bv steamers receiving dilfer nt rates of compensation within the limit ol the post ages was $67,871-69. being $20,742 82 less thau the ainot nt of United States postages npou tlio niahs conveyed. 1 he amount paid for sea and Is'hmus trausporta tion ot tbe malls exchanged with Cent! a. and South Ainenca, via 1 anania, was $17,377 46 The exoess of postage collected in the United S ates upon Ibe correspondence exohauged with Gr at Britain and, the continent of Eu.ope was $600 627 "16; causing bulauoes agaluat tho United til I MM ,n HMttLtllLIIlt fit 111.) InU.nnl .,.,(. .... couiils, nmoiit . 1 11 1 k in, hn 11a. re ;nlo to 52',8,7M A Mtrul t)ii!-t!il coi vnlion h-.g lecil cone ifded with tle till pin in ol Itu.y. which a topis the le , unj re oin s 111 iiiternntiotiai P" nl into, course r coiu rr.f Tided by the pnt-tul conletenco ho d at l'a -i 111 iv, lt;) It wnsneyotnled ami si-med at I'u.-in on U1118I1 ol July, ln.'l, and tbo inline. ttioi a t .'reof wero lorinabv t-xeban: nd nt F erenn . on tl s 1 ,h ol June, lhtiO. 1 his riinvt-iitibn will be earned int 1 exe cution as soon as no'ice is leieivod Irom tie post department 01 Italy ot the mute or routes of ransit by v. bieh the exchange of correspondence tn c'.osodV bascflii tc can be cfli ceed. Notice was given by Iho Itritlsli Gover nncnt, under date 01 Jn'y 26. 106. el its purposo to term! unto tbe rx'sling po'-al convent on beiweeu this countty and tbo Uiii'cd Kingdom on the ltol Janu aiy, 1868. mini taneouly with the exuiratlon ol the. mail mi s-dv cnutiact with lio Cuuard line) ao conipamed with an a-suiauce of the desire ol that Government to eono'udo a new convention on a moie liberal basis, reducing ho piesent rates of inttrtiational postaao, aud ersnting enlarged mail lacliities. Iho neco s.ry steps were at once taken to accomplish that object, aud I have iho satisfaction of announciiw that a prelim. narv bas s tor anew postal convention has been bp reed upon by th two post departments, reducing tbo interna iouul charge on a single etu r from twenti-'our to twelve cents; admitting Into tbo mails printed matter ot every kird, ar.d patterns oi merchandise, at suoh rates as Ibe despatching country shall establish; and grant ing to each country, reciprocally, too r-glu to trans nut correspondence In c osed bags, or in the ordi nary nial n through tbe other, at the samo ru'os of charge paid by tbe inhabitants of the country through blch the correspondence is lot ardvd. 'I he principal advantages ot the no anangement rr.ay be briefly stated a follows: 1. A yen notion 01 the in ernattonal letter postage to one-ball ol tho existing charge 2. Ihe removal ot alt restrictions urtn the ex change of printed matter in tho mails at reduced postage charges. 8. Tbe compulsory prepayment of postaee npon letters and other mail matter, avoiding entirety the keeping ol complicated postage accounts upon In ternat onal correspondence. 4 A reduction ot postage wl'h all other eoun'rios to and trom which correspondence; u transmitted in . the British mail, or in closed bags through the United Kingdom. 6 The establishment of uniform and reasonable charges for the sea aud territorial transit 01 corres pondence In clofod mails; and graut'ng to each post department the r gut to make use ot all mail ' communications established underline authority ot the other, lor thedopatcn ot correspondence either In opt n or closed mails, on tbe same terms as (hose applicable to the Inhabitants of the country pro viding tho means of transmission. 6. ihe poniage ol all international letters to belong wholly to the despatching country, aud no charge vbat'Ver to be mude by the recoiving country on, delivery. 7. Each post department to mako its o vn arrange ments tor tbo despatch of mails to tbo ot.'ior, by well-appointed ships, sailing on stated cays, and to pay tho owners of suoh ships lor tbe conveyance of tbe mail-, which it despatches. fVo time has jet been agreed urton for carrying the new convention into operation, out It is confi dently expeoted tbat the 111 in-li ollioo will consent to name as early a dato as praoticablo, that the pub lio mav rece ve, without unnece sarv delay, the benefit of tne ruuucud rates ot ostago, as well as of. more liequent means ot mail couiinuuioaUia between Ihu two countries 1 he postal convent. ou with Venezuela roferr- d to in tbe last report was executed 011 the part ol Vene zuela on tbe 26th ot . une, aud wtut iuto operation on the 1st ol October last. Negotiations have been eommooced with the post departnieut ot lirazil, lor a postal convention to rcgulato the exchange ol corre pondenoe with that empire by means of tbe direct line of subsidized mail packets rljme between Now York and Rio de Janeiro, via St. lhoinas, t'ara. remambuoo, and Babia. Ihe draft ot artiolos submitted by this de partment a tbo basis of tbe convention, proposes tbe establishment of low rates of postage botn apon letters ard primed matter, tho avoidanco as far as practicable 01 postage accounts between the rejpeo- . tive post departments, and adopts the leading im provements recommended by the Pans International postal cotlerenee. . Tbe Pacitlo Mail S'eamsliip Company ot 'New York, to which was a varded tho oontiact for the China mail service, authorized ly the -act of February 17. 1866. ha exeontea a contract lor that service, 'iho high reputation of this company, their experience and undoubted resources and tbe teal and energy whioh they bave nisniiusted in making preparations for tbe service, afiord a guarantee of the sucoess tf tbis groat naiionai enterpiiae to extend aud develop Ameri can commerce bv obtaining oontiol of tbe vast anal constantly increasing trade of Jaoan and China, which the advantare ot our geographical position, should enable us to possess. Ihe contract is for monthly trips between San Frai crco and Hong Kong, touohinc at tbe Ports of Honolulu in the Sandwich Isiands, and Yoko hama (Kanagawa) in Japan, both on the outward and inward passages, by a line ot first-class Ameri can sta-going side-wneel steamships, oi not less than 8600 tons burden, Government measurement, and ot sufficient number, not less than tonr, to per lorm the siii u I ated service. ibe Gnat Uepubtia, tbe first of the new steam ships buibllr.g speoia lv for this service, was launohed at New York ou the 81b ol November instant. Is now 'receiving her machinery, and is expeoted to bo ready lor sea about tbe 1st ot May, 1867. She will tegisier over 4100 tons, Government measurement, or 1100 tons more tban the minimum tonnage named in tue law her extreme length is 840 feet; extreme breadth, 60 leet; depth of bold, 60- leet; and her diaugbt, when oldinari.y loaded, wi.l be 21 feet. The second steamship, ot simitar size and propor tions, is 1 o be launched ear y in December ot this year, and will be prepared for servioe about ibe 1st of July, 1867; and the machinery for two others ot like dimensions is in course ot construction. An inspection of tbe hulls and machinery ot te-e ships, as wed as a general knowledge ol tue preparations making by tbe contractors bas satisfied mo that every possible exeition is being used to (11 fil tbe re quirements of the law and contract ... ibe company bave tendeied the r ilist-c'assa earn ship Colorado to take the mat s Irom San Franoisoo on ihe 1st of January, 1867. the day named in the -law. This ship, which has been withdrawn irom tbe Panama and San Franoisoo line to prepare ber for servioe on the China route, Is of the requited tonnage, and will, it is behoved, fully comply in other respects with tbe terms of the law and con tract, althoogh the report ot ber inspection by a naval oenstruoto' , under instructions lately given by tbe Secretary of the Navy, bas not yet baen re ceived. Appointments. Ihe number of l'ost Offioes established dur ing the year Number discontinued Increase of officer 1143. 636 607 Number of Post Oihces in operation on tbe au h June, tbuo Toti.l number wypperation tin the 80th June, 20 650 "23 828 NumLer ol i'ost Offices in the States not en gaged in the HebeUion. ...... "... 20 55Q Number in the late insurgent States, of which 2778 were reopened during the year Number 01 offices subject to appointment by tbe President - 8 838 709 23,119 Number by the l'o-tmanter-General Number of offices reopened in the Southern States np to November 1 Appointments made to fill vaoancies by re-. sigua'ion ol postmasters To & 1 vacancies in susDended oihoea . 8,234 : 4,679 U.778 By removals. ..' 1,066 by change of names and sites 102 By death of postmasters 1 ' 817 By establishment ot new offioes 1,143- Total number of appointments. ... 10,074 Number of cases acted unon 10,816 No. o1 special gents 9u Aga'e compeii8ation.9l.8ftS No. of postal rou e clerks 13 Ark's compersatlon IMS iWU So. 01 route agents Ml Auk's compensation.'. Ko of bcal mail agents.. 88 Auk 'e compensation 38 Mlg &o 01 baggage wasters.. SOjAgg'a compensation. l,txm Total. ..13t . Total ataO.'AM Ihe free delivery system is In operation in lorty six 01 the principal cities. Tbe number of carriera employed was 803, at an aggregate compensation, ot $689,236 41. This mode of delivery has steadily grown In favoc with tbe public, and in several of the large cities, where its progress bas been most marked, the local postage shows a gratifying increase. Experience, has show lis tuoerlority over the old system of box oeiiver?, aud the results ol tbe last two jears com mend it to Congress as a permanent branch of tin postal servioe. Its effects in saving time to thtt public; in imuring tbe correct delivery by inducing tne habit ol directing letters to street and number; in reduomg the great number of advertised audduad letters; in facilitating correspondence, especially local; in obviating the necessity of the niaoy rruit Jess calls at the 1 ost office, are re led "njo prove it advantages over the old system of office delivery.. . Dead tellers. The whole number ot dead letters reooived, oar. smiued, and disposed of during the year a as about lour and a ball nililicus upwards ot forty per cent. 01 whioh were Irom forty-seven ot the Ja-gcr post offices About six huudred thuu.-and other letter were woeiv. d, bem uumaiiab e for want of pre-pay ment of postavo, or ou account 01 misdireo 10a or illegible address. During ihe yoar there were reglsred and re. niai ed 10 the respective owners, as euc'o-ing m, meg In sum of one dollar ana upward 82 811 letter containing au aggregate of -2i4 584 09 of liioh nuibbr 27 HO, containing f 221,060 10, were Oelivvrvw