THE DAILY E VNG TELEGRAPH PHILADELPHIA, WEDNESDAY, DECEMBEK 9, 1868. THE WAR DEPARTMENT. Annual Report of Sec. Schofleld. Th following are the portion! of Secretary choBfld'i ftnnnnl report which we did ot publish yesfrdayi - War DkpArtmf.st, Wasiiisoto CiTr, Nov. 30, 1H(8 Mr. Prrslilent: I linvo tlio honor to submit a general report of the operation of this Vpsrtmrut since the lust annunl report of the f ccrctory of War, with tho reports of the clilufs f bureniiB atid .military commanders for the uaic period. - APJUTANT-OKNK.lt At8 llRPAHTMKNT. The strennth of the army on the noth of Septem ber wna 48,JHl, which by the 1st of Jitnmry n;xt will be reduced, by the esplr.ttioii of term of scr Tice alone, to about 4it,0)). " Orders were Issued in Novewbir last to rodiioo all rrft'imrntd of infantry nii'l artillery (exempt 10 light batlerlcii) to 60 men per eom,)ny. S t rc rruitinir, rendezvous are now la operation except for the cavalry service, and the expetine of Vw re cruiiitiK service is reduced to the minimum. All volunteer oQlccrs except one h:ivo been mustered out of service. At the ttiKKCHiion of Lleiiteinnt-OcnnTal Sher man, iiutliorhy was given on tlio 6tli of O.rtolmr last lor the mueter-iii of one rwlmcnt of volun teer cavalry from the Suite of K msns for survtao against hoxtlle Imliuns. The scrvico of this regi ment is not expected to exceed six months, lifter which it is hoped the regular cavalry will be aulll ck nt for the frontier service. It niny be reasonably expected that ft consider able reduction of the infantry of tho army may be made within the next year without detriment to the interests of tho country. I recommend that such reduction be authorized by law to bo made irrodually by ordinary casualties, by dis charge of incompetent and" unworthy oiliiers, and by consolidation of rcglinenU. I also re commend that the four regiments constituting tlic Veteran Reserve Corps bo disbanded, olU jots unlit for active service to be retired, and all others .to lie transferred to active regiments. The term of enlistment for all arms of tho ser vice tliould be Increased to live years, as it ineo sure of economy and elllcluncy. V . INHPKCTIOS MCRVIC-R. Through tho agency of the inspection branch of the service, the entire army, with a low excep tions, otherwise especially provided for, his teen thoroughly and constantly inspected during the year, and numerous special investigations liavc been made, resulting in material improve ment In the elUciency of the troops, in tlio eco nomical management of the administrativo branches, and in the care and disposition of public moneys and property. Both here and abroad inspections havo como to be regarded as indispensable, to successful manage ment of a military establishment, and tho con viction of the usefulness is every where gaining ground. The importance of tho duties to be performed, and the insullieient number of ollicers of the regu lar inspection service, has resulted in the adop tion of a system whereby the required number Will be supplied by detail of Held ollicers in iU li tion to the regular inspectors, the se.lectiuu.-i u be made by the War Department. This pi m is designed to secure ollicers of proper rapacity, judgment and experience, and to obviate tho ne cessity of un immediate increase in the corps of inspectors, which now numbers but nine ollicers. BKJNAI, NKHVK'U. Provision has been made during the past year for such general instruction in military telegraphy and signalling as may be necessary for the service. Books of Instruction have been furnished each company and post, and steps havo been taken to provide necessary telegraphic apparatus and tho equipments for signalling. The courses of study in military telegraphy and annulling have been pursued with success at tho Hilitary Academy at West Point. By concert with tho ufllcers of the navy, nearly similar courses of study and practice in these branches Lave been had at the Naval Academy at Annapolis. A drill with a field electric telegraph train has been introduced and practiced at West Point, the cadets discharging all the duties of running out and erecting the lines, working tho telegraphic Instruments, and sending and receiving messages by sound. A school of telegraphy and signalling has been established at Fort U rebel, Maryland, and is in successful operation. At this school selected ollicers and enlisted men are instructed in all the duties pertainiug to tho servico with electric tele graphs and signals. A Bimple telegraphic code, easily acquired, is used lor this-purpose. The report of the Chief Sigual Officer, and tho sub-reports covered by it, give details of the du ties of his ollicc for the past year, and the results so far obtained. QUARTKRMASTEIt's DEPARTMENT. The report of the Quartermaster-General shows the total expenditure of that department during the fiscal year ending June 30, 18(18, including claims for stores taken for the use of the army during tho war, to bo f 33,60(,381-u3. Claims for property taken during the war have been allowed to the amount of $DiM),Sl3-28 ; rejected, $2,651,-430-38 ; and are still pending to the amount of 6,906,691-18. Iu the national cemeteries 316,233 remains of soldiers have been collected, of which 175,761 are idcnliticd.,, The total cost has been about 2,700,000. The lire-proof warehouse at the Schuylkill ar senal has beeu completed, and tho expense of rent greatly reduced thereby. Tho warehouse authorized at Ji-tFersonville will not bo erected, aa that depot will bo broken up. Tho $150,001) appropriated for that warehouse has been re mitted to the treasury. Of the debt of the Southern railroads for mate rial sold to them after the war, 1,027, G'Jj-77 re main unpaid. The erection of a suitable building to accomo date the several branches of the War Department is recommended as a measure of economy and efficiency. , An appropriation of ;J.r0,000 is asked for a stock farm to supply horses for the cavalry, No appropriation for clothing or cutnp cqulpago is required. An increase of the number of assistant quarter masters to fifty is urgeutly recommended us ne cessary to the proper administration of that de partment. Attention is invited to tho operation of tlio Joint resolution of March 30, 18CH? by which the con trol of the appropriations lor tho War Depart ment is taken, in a great measure, from the Secre tary of War and vested in the accounting ollicers of the Treasury, in consequence of which large Bums have been and are being paid from those appropriations contrary to the advice and opinion ol the War Department. M EPICAL 1EPARTMF.ST. Ko cases' of the epidemic cholera or yellow fever, which prevailed among tho troops at the dale Of the last report, have been reported during the present year. One hundred and flirty-six thousand one hun dred and ninety-seven eases (being an averagu of three for each man in service! received medical treatment during the year ending .fuuu 30, lfctW, of which about 00 per cent, were cases of disease and the rest of wounds, accidents and injuries. Tiie total number of dcutlis from all causes was 1C21, of which about 88 per cent, was from disease and therest from wounds, Injuries and accidents; 452 deaths were from yellow fever and 228 from cholera. ; Tlio discharges upou certificate of dis ability number 1071. The strength of tho army during this period was 50,000. . Sixteen casualties' (includiug five deaths) have Bct.urred In the medical corps, and there ure 10 vacancies in the grade of assistant surgeon. The uctual e xpenditures during the fiscal year were H42,124-20, and the balance on hand was l,473,7S2-20 on the 30th of June last. EXOMiKKB DF.l'ARTMBNT. All officers of the Corps of Engineers, except ifteen, are employed on various special and de tached duties engaged upon tho permanent na tional defenses, survey of the lakes, improvement ef rivers and harbors, explorations, command and instruction of engineer troops, and in charge of the pul lie buildings, grounds and works, iu the litrk't lit Columbia. Work vu the piTuiuucut defenses lias been con tinued on a smaller scale, and reduced appropi i i tions are asked to c ontinue such work as is not liable to future modification. Experiments with iron targets, shields, and other structures .designed, to resist heavy ord nance, have been and arc being contiuued. OlUlftAXCK rllCrARTMKST. ! The expenditures of the Ordnance Department during the last fiscal year, for all purposes, in clusive of the payment of war claims, were a little more than three uiiilions -less than threo lirths of the expenditure of tho preceding year There arc 27 military arsenals in oil, including the National Armory at Springfield. Tho work done at them by the hired mechanics and en listed men of the ordnance corps, undor tho di rection of skilled ollicers of the corps, h t beau economically and satisfactorily performed. -, Highly favorable reports of the breach-lonTmir converted Springfield musket have been received from those portions of the army where it has been distributed. . A few emooth-boro end lifle guns, of heavy calibre, are being made, for trial of their, power nnd endurance. When tho most suitable kinds have been determined, a large number of guns ftr fortifications will havo to bo made, and au thority to make them as fast as cm bo douo is asked. MILITARY ACADEMY. The corps of cadets on June 1, lS'H, numbered 210 members, under the care and Instruction of a superintendent, eight professors and thiriy-two ollicers of tho army. Fifty-four members of the first class were graduated June 15, and appointed to the army. During the past academic year Oil candidates have been admitted to tin! aca l.miy, nnd 37 rejected. The cadets now at the acadjuiy number 225, which, under existing laws, can eventually le increased to 2!K). Tlio necessity of a further increase is again mentioned, anJ tli'i superiority of the Military Academy overall other plans lately proposed for meeting that want is pom led out by the Inspector in his report. The great value aud importance of tho annual B nrd of Visitors, both to tho academy and tho covcriimeiit, is referred to, nnd the report of tlio board for 1808 is attached to tho Inspector's re port. The board report very favorably upon tlio discipline, Instruction, administration and iUcal affairs of the academy, and recommend several appropriations as especially necessary to bo made, They highly commend tho public value of the in stitution, and ask for it a generous support. Tho favorable report of tho board is concurred in by the Inspector from personal ob-tervatiou during his semi-annual inspections. The charges once but no longer directed against tlio Military Aca demy, oi its alleged costliness, exclusiveness, and the disloyally of its graduates, are referred to and refuted by facts and figures, among the most interesting -of which are tho statements that during the late war, of the graduates from all the Southern States, one-half remained loyal ; that ol the graduates from the actual- llcbcl States, more than one-fourth remained loyal; and that of the graduates eugnged on tho side of the Union, one-liflh lost their lives. The pastliouorable record of the Academy, and its present nigh standing at home aud abroad, ai cited as evidence of the great usefulness to which it will iu the future attain. AIlTlI.t.KUY SCHOOL. This school was organized at the close of 18(57 by order of the General of the Army, and Brevet Major-Ueneral Barry, Colonel Second Artillery, was assigned to its command. It was established nt Fortress Monroe, and one battery from c icli of tho five regiments of artillery was ordered to that post as tiie instruction batteries for the first year. The course of instruction adopted for the school is both theoretical ami practical, embracing a va riety of subjects, nnd is pursued both by the olli cers nnd non-conunissioned ollicers of tho batte ries. The practical course for the present year has just been completed by an examination of the ollicers under instruction. The theoretical part of the course is now in operation, and will likewise be closed, by an examination, before the 1st of April next. It embraces mathematics, military surveying and engineering, artillery, military historv, aud military, international and constitutional law. AllSTRACTS OF KKTOUTS. Military Diruiom of the Missouri. This divi sion, commanded by Licutcuant-General Sher man, is composed of the military departments of the Missouri, the Platte and Dakota, embracing the territory west of the Mississippi river to tho Rocky Mountains, and commanded respectively by Major-Gem nil Sheridan and BrevcGenerals Augur aud Terry. The war of races, which is the normal condition of things on the plaius, has continued without In terruption during the past year. The Indian Peace Commission, created by act of Congress last year, to devise a practical aud, if possible, a peaceful solution of our Indian troubles, and of which General Sherman was constituted a num ber, gave the unanimous opiuion that peace with the Indians cast of the Rocky Mountains could only be secured by their collection on reserva tions and maintenance by the governmsnt till able to provido for themselves. Two such re servations were selected by the Commission and treaties made with several" tribes to go on them; but the necessary legislative action, setting apart the reservations and providing necessary govern ments for them (these being the vital principles of the plan), was not taken, and to this in my attribute the failure of ar lasting peace, and the oc currence of a costly war with lour of tue princi pal tribes with whom treaties were made. Concerning tho existing war, it is proved be yond dispute that it was begun by the Indians without any provocation whatever on tho part of the whites. Its object is supposed to be to pro cure the abandonment of the Smoky Hill route, the best hunting grounds of America"; and those engnged in It are believed to have been instigated by the Sioux, to whom tho Powder River road bad been abandoned at their cutreaty, principally because it was of uo further value ; but they at tributing this action to fear, doubtless so repre sented to tho other tribes, thus lending them to believe thnt they, too, could enforce a compliance with their demands. The troops havo been re inforced by seven companies of cavalry, aud a mounted regiment of Kansas volunteers will soon be in active service. With theso it is designed during the coming winter, the only time for effi cient operations, to punish the hostile Indians so that they will not again resort to war.and to collect them by force upon their reservations and compel them there to remain. It is useless any longer to attempt the occupation of these plains in com mon with these tribes. The country is adapted only to grazing, which necessitates scattered set tlements, while tho horses and cattle tempt the hungry Indian, who, deprived of his accustomed subsistence, will steal rather than starve, and will kill in order to steal. With such opposing in terests the races cannot live together, and it is the Indians who must yield. Thcv have been as signed reservations "which, In fifty vears, will en rich their descendants, and mean tune they must be fed while learning to cultivate the soil and rear domestic animals. The plan of the Pence Commission is, by Gene ral Sherman, believed to bo tho only means of saving the Indians from total annihilation, nnd he urges upon Congress Its immediate adoption. Meanwhile, his purposes nre declared to bo: To protect the Missouri river traffic and the Union Pacific Railroad w ith jealous care; to gather iu the wandering bauds of Sioux to the reservation selected north of Nebraska, and feed and protect them to tho extent of his means, and to destroy or punish, to his utmost power, the hostile In dians, till they ure willing to go aud remain upon the reservation assigned to tbem at Fort Cobb, where he is prepared to provide for them to a limited extent. This double policy, of peace within their reservations aud wur without, nun t soon, in his opiuiou, bring matters to a determi nation. ' Military Division of tho Pacific This division, commanded by Major-General llalleck, includes three military departments, embracing three States and four Territories, with an area of nearly 1,25U,(j(j0 square miles; more than 12,000 miles of sea coast, and a population of about 700,000 whites aud 130,000 ludians. IHvo regiments of cavalry, cue regiment of artillery and four regi ments of Infantry compose the military force of the division. i The Department of Alaska, commanded by Brevet Mnjor-Gcncral Davis, comprises the terrl toiy lately kuown as Russian America. Its area 1 about &78,0WI square, miles, und its population. about 2000 whites and 60,000 half-breed and In dians.. The military force of the department con sists of five companies of artillery and one of In fantry, distributed at six military posts. The remarks of the -Department Com tmntW respecting the best policy to pursne .towards the Indians, the needlessness of a civil governuunt for the Territory at present, and his especial re commendation that no Indian agents or superin tendents be sent there nt this tinro, are com mended to attention. . The Department of the Columbia, commanded by Brevet Major-Oeneral Crook, includes tho State of Oregon and the Territories of Washing ton and Idaho. Its area is about 27.,0')1 squ ire miles, with a population of 130,000 whites and 35,000 Indians. Twenty companies, distributed nt fifteen military posts, constitute tho luillury force of the deoartment. Tho Indian war, which for many years has been waged in this region, has by the skill and energy of General Croik been brought to a virtual termination. No depre dations have lately been committed. A reduction of the military "force may probably bo mule next yenr. The Department of California, commanded by Brevet Major-General Ord, includes tno States of California aud Nevada and tho Territory of Ari zona, with an area ol about 't'15,00 ) square miles, nnd a population of 55i,O00 whites and 3.1.000 Indians. Forty-eight companies of troop of all arms constitute tho military force of tlm depart ment, of which twenty-nine companies uro serv ing in Arizona alone," though the 8iMM Inhabi tants of that Territory aro far from b. ing satis lied Willi that number. The crc lion of Arizona into a separate military department, and an increase of the force, with a view to more energetic operations ngdnst tins Aj ache, the worst of all Indians, Is rocomm-inbd by the division commander, who speaks .highly of the agricultural rapacity of tho Territory. J)'piitmmt of the Soul. Tho second und third mili.nry districts, composed of the St iles of North Cnrtllnn, South CaroHna, Geomla, Alabama and Florida, were in August last, after tho admission of tl.osc States to representation in Congress, organized into the Department of the South, and Major-Gencinl George G. Meado assigned to the command. The department commander issued orders conforming the action of the mili tary to the changed state of all' drs in tho several States, and adopted such measures as to make. the transition lrom military to civil au thority gradual aud almost Imperceptible. Tho troops h:vo been so distributed throughout the (lillerciit States composing the department, that thev could at any time be used to co-opcrato with nnd sustain the State authorities ; und the olli ;ers nnd men of the army have, as a rule, conducted themselves in the discharge of tlieir delicate and responsible duties in a manner creditable to them selves nnd conducive to the best interests of the people in the States where they are stationed. Jtrpartment of the Cumbrrlmd. This depart ment embraces' the States of Kentucky, Tennes see nnd West Virginia, and is commanded by Mnjor-Gcnerni Thomas, to whose accompanying report attention is invited. lie report no im provement in the state of public and social nifties, nor does ho look for any immediate improve ment. 4n some sections nlfairs are decidedly worse, and, generally, the necessity for the pre sence of troops Is as great ns heretofore. The lawless operations of a mysterious organi zation known as the "Ku-Klux Kl.in," and the terror inspired by it in Tennessee, arc described nt length, together with tho action taken by the State authorities and himself respectively. Considerable lawlessness Is also reported as prevalent in Kentucky, and the services of troops havo been called into requisition for the protec tion of various Federal civil ollicers hi the discharge of their duties. The attempts of certain railroad companies to evade their obligations to the United States aro mentioned iu the report. Military Division of the Atlantic. This Division, composed of tho Department of the Lakes, De partment of tho East, and Department of Wash ington, was created bv order of the President on the 12th of February, irtOS, nnd Lleutcuant-Gcneral Sherman assigned" to lis command, with head-, quarters ut Washington. Genera) Hancock, how ever, was afterwards substituted for General Sherman, and assumed command on the last day of March. The division embraces the States of Ohio, Michigan, Indiana, Illinois and Wisconsin, the New England States, New York, New Jersey, Pennsylvania, Maryland and Delaware, and the District of Columbia. The headquarters of tho division have recently beeu transferred to New York city. Dtpartment of Jjouisiana The Department of Louisiana, consisting of the States of Louisiana and Arkansas, was organized on the 28th of July, niter the t dmisslon of those States to representa tion iu Congress, and Brevet Major-General L. II. Rousseau assigned to the command. Prior to the arrival of General Rousseau nt the head quarters, on the 15th day of September, Brevet Major-General R. C. Buchanan commanded the department. The duties of the department commander have been principally to preserve the peace aud sustain the State authorities ol the newly organized State Governments of Louisiana and Arkansas. Tho diflicullies experienced in carrying out these objects and tho means adopted to overcome those difficulties nre set forth In his report. First Military District. This district consists of the State of Virginia, nnd is commanded by Brevet Mnjor-Gcnernl Georgo Stoueman. who succeeded Brevet Major-General J. M. Schofleld on the 1st of June. The, military force of the district is composed of two 'regiments of infantry and one compnuy of artillery, which force has been found sufficient to protect the citizens iu their lives nnd property nnd preserve the peace iu the district. Second Military District. At the date of tho last report of the Secretary of War, the Second Military District, composed of tho States of North Carolina and South Carolina, was under command qf Brevet Major-General E. R. S. Can by. The principal duties of tho district com mander were those assigned to him by tho Re construction acts, under which he so established the jmy system in tho States composing his dis trict that the jury lists embraced all citizens who wero Identified with the community in which they resided by the payment of taxes, and were mentally nnd morally qualified for tho proper performance of jury duty. Measures wero adopted for tho purpose of securing quiet and order by tlio enforcement of the Slate laws for the prevention aud punishment of crimes, through aud by means of the local authorities, nnd not to interfere with the usual mode of pro ccedure, except where tho proper civil authorities refused or failed to net, or wliero it became mani fest that from past political action, or by reason of prejudice against color or caste, impartial jus tice would not bo administered. In both North and South Carolina elections were held for the purpose of deciding whether there should be a Convention for framing a new constitution for the State, nnd electing delegates to the Convention. The elections passed oil' quietly, nnd n majority of the electors having Voted for a Convention, tho delegates were called together, and after having framed a constitution which was submitted to the people aud adopted by them, nnd the representatives elected under that constitution ail mi tied to their seats iu Cou- ?ress, under the net of Congress of Juno 25, 1808, he military district ceased to exist, and was merged into the Department of tho South, under command ol Major-Geuerul Mendo. Third Military District. At the date of the last annual report, the Third Military District con sisted of the States of Georgia, Alabama nnd Florida, nnd was under the command of Brevet Major-General John Pope, who remained iu com mand until the Hth day of January, 18(58, when ho was relieved by Major-General George (. Meade, who assumed command in compliaueo with orders from the Wur Department. ' At the time Major-General Meade assumed com mand the condition of affairs in the several States composing Ida district was as folio ws: ' In Georgia a convention, elected under tho Re construction laws, was in session in Atlanta, but hampered and embarrassed for want of funds. Iu Alabuma a convention hnd met, framed a constitution, nominated a ticket for State olUacrs, ami adjourned. In Florida an election had been held for mem bers of a convention, but under General Pope's orders was not to meet until the 20th of January. Purine, General Meade's admluiotratioa the fol lowing events oernrrcd prior to the discontinu ance of the district: In GcorgiB, the ollicers of the. State Government having refused to recognize tho authority of tho District Commander, because, as tho Governor nilcged, the reconstruction acts wero unconstitu tional, General Meade removed the Governor nud two other ollicers of the State Government, and appointed ollicers of the army to their positions, who continued to fulfill the duties with faithful ness and efficiency until the qualification of State officers elected under the new constitution which was framed by tho convention aud ratified by the people. In Alabama, the constitution framed by the Convention was submitted to tho people, nnd al though, in the opinion of General Meade, it was rejected by the people, it was adopted by Con Rrcss. In Florida, the Convention assembled, and, after a grent deal of bickering and dissension, adopted n constitution which was subsequently ratified by tho people of the 8tnte. Congress havinc ndmittcd the States of Georgia, Alabama nnd F'londa to representation iu Con gress, orders wero Issued from licidquarters of the nrmy, dared July 28, 1808, discontinuing tlio third military district, nnd assigning tho States composing It to the Department of the South. J'vnrth Military District. At tho date of the last fin mi al report this district comprised the States of Aikansasiind Mississippi, and was eominin l id by Brevet Mnjor-General E. O. C. Ord, who was relieved on tlio Hth day of January last by Urcvct Major-General A Ivan' C. Gillem. " On tho" 2Hth of July last, Arkansas having, iu compliance with the liccoiistruction nets, adopted a constitution and been admitted to representation in Congress, was detached from tho Fourth Military District nnd attached to the Department ot Louisiana. The State of Mississippi having rejected tho con stitution submitted by the Convention convened under the Reconstruction acts, is still retained as a military district. The citizens of tho State of Mississippi have do voted themselves to repairing the losses resulting from (lie war, nnd the following extract from tho report shows the present agricultural and finan cial condition of affairs in the State: "Thanks to cncriry and industry, favored by n good season, an abundant crop of corn nvro thnn n year's supply, nnd by some estimated ns a supply sultieleut loir two years has been secured, while the yield of cotton in the State is very great, estimated ns high ns 350,000 bales. At present prices this will produce more than $30,000,000." The civil courts have continued to dispense jus tice under the supervision of the military authori ties, nnd there has been no necessity for the use of the troops stationed in the State. , Fifth Military District. This district, com posed of the States of Louisiana aud Texas, at the date of the last report was under tho tempo rary command of Brevet Major-General Mower, until tho nnivul of Major-General Hancock on the 2!Uh of November last, when that officer as sumed and exercised command until relieved on the 28th of March. 1H(W, the command of the Fifth Military District being devolved, first upon Brevet Major-General Reynolds, and subsequently upon Brevet Major-General Buchanan. The State of Louisiana having adopted a con stitution and been admitted to representation in Congress, orders were issued from headquarter. of the army, on the 2Hlli of July, 18i!8, reducing the Fifth Military District to the State of Texas, nnd assigning Brevet Major-General J. J. Rey nolds to the command. General Reynolds reports the existence of armed secret organizations in tiie State, tne ob jects of which seem to be to "disarm, rob, and in many cases murder Union men and negroes, and, ns ocension may oiler, murder United State ollicers and soldiers." "The murder of negroes is so common ns to render it impossible to keep nu accurate account of them." "Theso organiza tions nro evidently countenanced, or at least not discouraged, by a majority of the white people iu the counties where the bands nre most numerous. They could not otherwise exist." "Free speech nnd frce press, ns the terms nre generally under- 1 I -.1 CI. . A ,. .. siuou iu oiucr states, nave never exisiuu in Texas." In consequence of this state of affairs, General Reynolds has found it necessary to withdraw troops from the frontier iiosts "to such an ex tent ns to Impair their ellieiency for protection against Indians; but the bold, wholesale murder ing in the interior of the State seems ut present to present a more urgent demand for troops than Indian depredations." DISCII'I.INR OK THE ARMY. During the short time I have had charge of the War Department, it has been my constant aim to systematically reduce the expenses of the depart ment; to improve the discipline and ellieiency of the army; to prosecute such experiments iu en gineering and ordnance, and to continue such in struction of the ollicrrs and men as are necessary to the perfection of our military establishment; to give all needful strength to the forces operat ing against hostile Indians; and to give the great est practicable assistance to tho civil authorities in the States where recently organized govern ments need military support. The discipline or tlio army is believed to bo better than ut any previous time siuce tho late war. MILITARY AID TO STATE GOVERNMENTS. The relation of the urmy to the civil authorities in the States recently restored to civil govern ment has been a subject of no little perplexity. While those governments were yet imperfectly organized, lacking to a grent extent the sympathy and cupport of the most influential citizens, with out organized police or militia forces, without arms nud without money, aud without even au thority of law to organize and arm a militia, the military government, which the people had learned by more than three years' experience to rely upon for protection of life and property, was suddenly withdrawn. Immediately followed an exciting political canvass, having for its alterna tive results, in popular expectation, the support or overthrow of those newly-formed govern ments: The result bus been unusual disposition to lawlessness and crime, and comparative inelll cicney of civil government in those States. The only laws of Congress providing for the employment of the military force of tho United States in support of the government of any Slato wtre passed in the infancy of the Republic, with a jealous care to avoid undue interference by the National Government iu State nlfairs, and not de signed for such a condition of society as now exists iu the Southern States. Hence, with an earnest desire to do all in tho power of tho Executive to preserve peace iu tlioso States, and enable the people to fairly decide at the polls the exciting questions involved in tho canvass, it has been found possible to attain thco objects only in nn imperfect degree, but it is be lievtd that, considering the dilliciilties of the situ ation, there is abundant reason to be satisfied with the comparalive good order that has prevailed throughout the eouutry. The instructions 1-isucd from tliis department with the President's sanc tion, for the government of department com manders, and correspondence with llioso com manders aud Governors of States, are submitted with this report for the Information of Congress. J. M. Sciiokiki.u, Secretary of War. CHINA, GLASSWARE, ETC. EC0RATI0N8 ON CHINA AND GLASS. D INITIALS, CRESTS, AND ALL KINDS OP DUOIUHO.XS (Hi 111 ISA AM) (JL1SS, DOKE 10 OIII) Kit BY TYIMDALC & MITCHELL, Ko. 707 CIIESXUT fSTKHET, ' INSURANCE ? COMPANIES. OFFICE OF THE DELAWARE MUTUAL SAFETY INSURANCE COMPANY. rniLADEXmiA. Bovembe 11, 166. The following statement of th attain of Ins Com pany laioblisbed U conloimltj with s provUloo of IU Cnartar: PREMIUMS RECEIVED From November 1, 1WI7. to October 81. On Marine and Inland Klsks ..K0H.506'74 On It'iro lilahSw. ..., ...... ........m ...... A45,AXO0 Premiums nn Polioles not marked off Nov. 1, lb7, 918,7tlHO 406,84571 Sl.a55.A67 51 PREMIUMS MARKED OFF Aa earuKl trotn t,ov. 1. 17, to Om 81. 1808. On Marine and Inland Risks ...S7 tfl.oul 77 Ou Fire Risks....... 118,817 7i Interest dnrlng the same period Sal vages, eto.... Stft,923 49 107.408-82 SI OOJ 422 81 LOPSES, EXrENSES, ETC, w-,- lmtltig toe er hm ttuove. Marine huo inland Wuvlga- tiou l.nbes. ....$ 421,052 74 Fire Lossfs 7S4H,"j7 Helnrn f rcmiums.... Ml, Ml (fi Rtdnsuraiirts 80.100 61 Aiceucy COurea, AUverila log, FtIdiiuk. etc 0,530 63 Taxes Unlied fttiuea, bhate and MunlolDHl Thxph jLxpeuses 43.555'89 Zi tf jtf 05 $710,837 81 2th,5K0U ASSETS OF THE COMPANY November 1, 1808. flPO.OtO U. B. 5 per cent Loan, 10 40s. i'MVi) U. H. per cent. Umu, ISM... bU.UKl U. pr eeiil. Loup (tor i'aclllu Uallroud) ..... 200,000 Blute ut 1'euuajlviiiila 0 per cent. Lohu 125,000 CUy ol fhllaUoiptila 0 pur cent. Lomu (exempt from Tax) 50,000 Blaie ot Ktw Jereey 0 per cent. Loan 20,000 FtuutyivaDla RalirouU 1st Morinuge 6 per cent, funds 25,000 Ten nny Ivan in. Railroad 2a Mortgage 6 per cent. Roads 25,000 Wehleru Penn'a Railroad Mortgage 6 per rent, Bonos (t'ruu'u Railroad - guar antee) 30, CC0 Stale of Tennettsee 5 per cent. Loan 7.000 B ale ot ItDDOhnte 6 per cent. Loan 15,000 GerniHinow n Ua Coin puny; prinelpai and In eresi gonr Huieed by ineClty of I'ol ladelplila, 8W) Hiiares stuck 10.0C0 renoh) 1 vuuia Railroad Com pany, ilOO suaitB Htoek 6,000 orlU fennsylvanU Rail road Compauy, luo shares Mock 20,000 FbllaoelpOia and HoutOem Mail HleaiuBblp Company, 80 fcharvs stock... . 207,000 Lohu s on Bond aud Mort gage, first Ileus on City I'loptrtiea M 8208 500-00 iM.mi oo 60,000 00 211,375 00 128.591 CO 61.500 00 20,200 00 21.000 00 20,02500 21,000 00 6,(K;125 15,000-00 11,300 00 3.300 00 13.000 00 207,900'OU tzs mwfimrp PHILADELPHIA. PATENT BD P1NT8 SCOURED i ND fcTktt-TlllfcU front 1 to Inubea, at .Mottot French HU-ui Dyeing and HflonrlPg, HO. i M AUttlJl fetuses MaMo.TM MACS butwl I M 10 t J .ltO.WJO Par Market value. S1,130.8A5 25 Cost, f l,0U3,00t'2U. Real Estate 30,000 00 Bills Receivable lor loaur- aucea made 32,180 94 Balances due at AgenoieH Frtuilamson Marine fan cies. Accrued IniereBt.aud otber deots due ibe Com pany.. 40,17888 Block aud bcrlp ol bundry Corporations, $31u6. Kail- mated VMlue 1,813 00 Cash in Bank lltt,150 118 Casb In Drawer...... 4 13 65 118.663 73 1,647.307 80 Philadelphia, November U, 1858. The Board ot directors bave itila duy declared m CASH DIVIDEND Of TEX PICK CKXT Oo the CAPITAL BTOOK.and BIX PEKCHJXT. Interest on tk SCRIP of Ibe Company, payable oo and after ibe 1st December proximo, free of Rational and Btate Taxes. lieybava s so declared a 80S IP DIVIDEND of TU1HTY iEK CERT. on Ibe EARNED PKEMIDMS fur Ibe year ending ouiober si, 188, cenlUoates of wblcb will be issued to the parties entitled to tbe same, on and after tbe 1st December proximo, free Of National and State Taxes. Tbey bave ordered, also, tbat tbe SCRIP CERTIFI CATES OF PKOFITdot tbe Company, for tbe year ending October II. 184, be redeemed In CASH, at tbe Office ef tbe- Company, on and after 1st December proximo, al) Interest tbereon to cease on tbat date, tar By a provision ol tbe Charter, all Certificates of fecrlpcot presented for redemption within five years after pnbllo notice tbat tbey will be redeemed, snail be forelttd and eanceUti cm tht Muoktuft Company, tfiriio certificate aj pinftU issued under fza, y jJK Act of Jncorporatiun, ' no certificate shall issue un ess claimed within two yean after the .declaration of the dividend whereof it is tvulence," Thomas O. Band, .VUU v AfMTM, Jatuiea C Hand, 'ibtupi lliia fkuldlug, JtiM-ph It, fetal, Rugn fcimg, Ji.iiu it. fKuroie, Jucob P. Juus, Jaiue 'I ikqumr, Jul a d DainiiKten, it, Juuea inu. . Jm-a U. lcai)'d, iuwuro JLi,iur.ae, JutbuaP, A.) re, jLduiiind A. Bond a t aiiiuel K. etuk es, WlUlauj C. i-udwlg, ueoigaU LeiMr, Htujy C. Di1Mu, Jr., John U. Iaiur. Ueurge W. Hetuardon, WlllmuiU iljuHoii, Jitcuo ueel, bpeucer A1I4 value. Julia a. tMu.pie. PlUs., A. a, Merger, Uo 11l '1'. Murvdri. THOMAb II. HA Nit fmliUnr ,..,r TT J?,1 u DAVlo, Vice-Piealdent. liis.JSlY UaLIm AMlatkut fctcretary. 11121m IgJIJ-CllAIlTEU PERPETUAL. rraiiLHii Fire-insurance Co. r j-mitaiiAu-ii w, OFFICE t Mos. 135 and 132 tlLESSUT STBEUT. ABtSETS) ON JAMVAUT 1. 1SSS, M,00a,7400U. OA p rr a i"'"---- 4to,oeo-oe iS.,1 l,olls-B th A Al J tJIO...,..,,.,,,,,,.,, t , 1 m 4.84tf-a UjbArTllLi ULAJJaB. USVAJMSi HUH Us; 8S.Difs assti ,000-00. MMMmtM PAID SINCE lftitV u VKit o 000,000. Perpetual and Tempmaxy PoUoim un .Liberal Terms DIRECTORS, Cbarlea N. Bancker, Uou.ge Pales, Tubiua Wau. Alfred Filler. eu.u el Utant, , Frucis vV, Lewis. V n MeorW Richard. l honiks srus, luaacLea, William tt. Urant. CHARLES N, HAJMJA.AU. President, Oa-ORoK FaLEtt, Viuo-Preaiuent. IAS. W. IdoAiiaiAK, tworeiarv iro Mm. Ejicept at Lt)Xlut'u, Kentucky, tola Company hsi no Agencies West of Puiabtug. 1 14 raSUBAjNGfi COMPANY NORTH AMER10A, No. 233 WALNUT STREET, FHILADA. INCOJaPOBATAD 17UA. CU AM f EH PEUPail'UAX Harlue, JuluuU, uU Aire Insurance. A8BKTB JANUARY 1, 1868, - 2,00L2rjtJ-73. 10,000,000 Losses jVaid in Cash feinr iu Organisation. DIH.1U.TORH. Arthur O. Coffin, George L. Harrison. Samuel W, Jones, V . . , A U . I barlos 'i ayltr, Ambrose W bite, WillUni Wei.b, billiard D Wood, H. Morris Wain, John M juin , ABTBTTR O. COFFIN, President. 1 Chablbb Platt HtHTxtary. WILLI A 14 BUEULKK, Harrtsbnrg, Fa-, Centra Agent tut Uisbtate of Peuuajrlvauia, skj Franuli B. Coue. toward H. Trotter, Edward tt. Clarke. T. Charlton Uwnry, Alfred l. Jmaup, Joho P. Wl.lta, LuulsU. Madeira. INSURANCE COMPANIES UNITED SECUIUI j M F F. INS U RA i AND IKlsI 1 J COtYlPArfY, or PEN N SYLVAN OFFICE: ' I 8. E. Corner FIFTH and CHESWT FBI L ADA LPB LA. ,., CAPITAL, - - SI ,OOQ; D I U K O T O H S. I PHII.ADKLmiA. j GFfmOK H. PTUriT, H. H. nOTtflTMAN ('KlhHK : W. ( n ILL), A.J DhKXKu A. 1'OKIHI, JOWKPH CAT I'KR? V. A. DkJJKL, Wm. c. HuUdl'U-'f WM.V Mi KHAN. J. J HOLM. i TiiOMAtt W.. AVaftS. UhMtY J. K001. KKW VUKK. I JAMKS M. MOJlTtl ON, Preside ttMVihaUanl JOJ;lU b'lCAKT, ol J. J. Muart & Co.,lii BON. E. S, TOBEY, lat President Brard of Ti CINCINNATI. i A. JT. CHAMBERLAIN, of Cuamberlain A Ca CHICAUU. ' i 1. 7. LTITF.R. of Flel l LMtor A Oj. J I. At. bUlTil, ol Uvo. C hiul.h A .Brothers, Bat LODIHVILI.B KT i WILLIAM GARVIN, of Garvin, Bell , KT. IXJOIN. JAMF8F. YBATMAN, Cashier Merchi NKW HAMMIR)C. HON. J. W PA Tl KHwuN. U. . Senator. BALTiHoaa. WILLI M PBKSt OTT hMITH. Bnnnrlnte Cormoiltialtd Railway Hue, &w Yin Mstblrgion. . P. M. MioKMaKKR, of Adams A Co.'s Kxaret I II Rl VI IAN AX. of O. W. Wall S Al, 1 lRAJt'l T. AlNU, Premueut Ctttitral Bji iiauk. j G FORGE H. STUART, President. IJKNKV K. ROOD, Vice-President C F. RETT Secretary. 1 J. L. LUDLOW. CoiitulilagPbysld B. M. OIRViN, M. D., 1 .,.., , , . Jos F. KOk.RPJb.rl. Al. B.,j Medical Hxamla C. HI DART PAT TERbON, kiChAKu LUDLOW, I Counsel. Tbls Company imups Policies of Lite Insu nfon all tbe various plans tbat bave been pi by tbe experience of European aud American paules to be safe, sound, aud rellauie, at ral LOW AMD UPON TEH 3 AS FAVORABI.l THOSE OF AKY COMPANY OF EUUAL i B1L1TY. s All policies are non forfeit lble after tbe payt of two ot mo, e auuual premiums. 11 la iuiw PIlCEMX 1NSUHANCB COIIPANyI rnlLADFil'UlA. j INCORPt'tta lEi lbU CHARTER PERPETI JSo. k.l Wli tT O rett, oiooaue the Axutiaj Tbls Compauy luuurt-a iroru ,os or damage by. on liberal terms, on biillumtio, mercband sn, furnf eic, lor ilu..ta periods, aud permaueutly ou B 11 k by depo.it ol prmiuu,s, 5 J Le j. lui'Miiy uaa Oteu iu auuveoueraiion for than fclX l V VEAHo, durlug w blub ail Iuasus been promptly aajumeu aud iail, Oo. 1 1 ala Nat I John L. Hodge, Ai. a. Aianoi.y, jouu 'I. Lewia, Wll lam H. Urart, Robert W. Ltumlng, Jj. Clark Wbaitou, Lawience Lewis. Jr., Lav id Lewis. be' Jautin Entng, Tuoutas M . Pun are. A.R. AluHa ,ry, Adu u d Caul II Ion,: Ssaaiuel vvucox, JOdN R. VVLlCUERALlt. Prftllrfrf oahuil niLtux, otoxetary. s Ti'lRlS JASt'RAMCE EiCLCSlVELY I J' t AJNJNbx LVAAlA iltto. loURANUki HM-Jucw uul.ita lbttr Cliarlttr hriMu.t Stu W ALA U'l bueet, opi usiie luuopendenoe bu Tnis Couiuany, lavorab.y kuown 10 tbeoomms for over lony yean, cuiiuuea to luaure against I or damage by Ure oo Public or Private Bund tuner peru.aurnuj or for a llml ed time. Ala, Fur n n ure blocks ot Cioods, and Merchandise a rally, ou liberal terms, 1 hilr Capital, togeili. r wi'h a large Surplus W Is mveneo lo tbe moot creiu, uiauuer, wulob ea tiiem to offer to the laiturea an undoubted seenrb the case ot loss, , Daniel Smith, Jr., i John Deverenx: Alexander JBeuson, I Thomas omttii, I lnaac xisslehurst, I Heury iwls, I Tnoinas Bobma, I J. oiuingham FelV Daniel Baddi ck. Jr. DANH-LoktlTu, JjLjrea!0e QTRICTLY MUTUA 1 PROVIDENT LIFE AND TRUST ( Or PHILADELPHIA, 1 OFFICE, No. ill H. lOlHTU STREI Organised O promote ttUfsb AAaUKAJgUJf Inemoers ol tne . BOCIBTT OF FRIKNDS, Good risks ol any class aooeuteo. Policies lasatd upoa approved pians, at tbe lot PrealdenV 1 BA.MTJEL K. BHIPLKY. ? Vice-President, vV i la a St C. LowuaTRKTH.1 Actuary, ROWLAND PAJUll The adTantages offered by this Company are JSimtUL 1 IKE LMSLRiACii COMl'lJ LOB) DON. ESTARLISUED 1803. Paid-up Capital and Aocamolated Fonda, 80,0 0 0,0 0 0 IN GO LI jPKtVOST eV II ERK1NO, Agent, j 1J i 8m. aJ07 fcouth THIRD Btreet, Phils STEAMBOAT LINES. exnZZs PMILlUiSLtHIA AND TBE sia.i 'in an.iL. tin bieamuoat iaue. Tue aieamb JUl uAtREoT leave ARCH street Wharf, f Tieiitun, stopping at Tacoay, 'lorreadale, Beveri Burllogiou, Bristol, jVlorenoe, Kobulus' Wharf, s vVUlt JjLsllla I Leaves Aicb BUeet Wbarl Haiurday, Lec. 6, dot 't go Monday, " T, 7 A... Tueaoay, " S, 8 A.JM Weo'oay, ' , a A.jM Ihuraoay, 10, 8 AM Irloav. M 11. lu A.JM Para to Treutuu, 40 ceni places, 86 ceuui. Leaves Houtb Trenton.' Saturday D C. S. Aj Monday, 7,11 A.) Tuuaday, " 8, .8 Wed day, "81 pj Ihuradsy. lu. I P. Friday, " H, P eacn way; uitermeais H OPFUSITION TO TUB CO BlMCD RAILROAD A24D RlrfJ UYLVE'TER will make dai 1Mb . . i - Hieamer JOHN excursions to Wilmington (bauuaysexoeotetl). louol ng at Chester aud kiarcua JUook, lwvlnc Aim buelba. f at 8 46 A.M. andS-MU P. ft. I reUirula UW' SaSaV rnrZjs FOBRBWYOBK-8WIFMDE aiiii i ii ! iiiTl Tr i "'1 n Cuuipauy Deepau a u ewiit-.ure Lluea, via Delaware aud Rariu Canal, on and after tue Uth of March, leavlug dally I l'i at. and S P. Ii connecting wiut all tiorthern a4 Ktern tinea. . , Por treltrbt, which will be taken on aooommodattii terras, apply W WILLIAM hi. BAIRD AOU, i U Ko. m K DELAWARE Aveaas, TO RENT. J F O R RENT rKE3UE8, Ko. 809 CIIESXUT SU, FOR 8TORB OB OFFICK. ALSO, OFFICES AND LARUE BOONS soltabl for at omiutrclalcolltge, aomyat i 4lf lUNE OF THE REPUBLIC. J 0H N CARPENTER c AND R u r.i BUILDER, Bbopsi No. 213 JLOIEMrf t, and No. 173 CHENKir bfreel, Pll 1 1. A DKl.VTT r a . COTTON AND FLAX. i BAIL DL.-t ATCD CANV48. ( Ol all ouaiber aud brands Tent, Awelnr. Trorh, aud Waon Cover uuok. Al.n, paver jMHUiileiiierN' Orlor PhIu, from our toseveial leet via: Paoin, B-mng h! i wlae.etu He. R JON JUS' AUaTi