Beport of the Postmaster General. ; Post Office Department, November, -26, 1866,— Sir: The revenues of this depart-; ment for the year ending Jane3o,lBBB, were ,-$14,386,986-21, and the expenditures $16,352,- . ..079 30, showing an excess of the latter of $965,093 09. Anticipating this deficiency, a special appropriation-was made by act of Congress approved July 28,1886. . i : The decrease of re venue compared with the ' previous year was 11-5 per cent:, and the in-‘ -creasoof expenditures 12 perbent. > Tnclud ing the standing appropriation for free iffiaii , matter, $70p,000, as a legitimate portion of the revenues yet remaining" unexpended,th“ ..actual deficiency for, the past year.isonly! ',5265,093 09—within §51,1410f amount, esti mated in the annual report of 1831. ', . . ! » • That portion of the revenues accumulated in depository and draft offices, under the . supervision of the .“finance office” of.this department, was $6,751,655 39; collected by ' the Auditor, $2,641,074 38; and retained by ' postmasters for salaries and office expenses; $4,994,256 44. ~ The estimated expenditures for the year end ing Jone SO. 1868, are.._ ....117,583,000 The revenues estimated at 5 per . cent, over last y-ar *15,108,385 ' Appropriations for free matter 700,000 Excess of expenditures , 1,776,6555 For this deficiency no special appropria tion willlbe required. The standing appro priations for the free matter, unexpended for several years, are deemed saifioient; The following amounts will, however, be required from any money in the treasury not otherwise appropriated, viz: For overland mall transportation'between Atchison and Folsom, and for marine ma'l transportation between New Tork ! and California 49C0.C00 For steamshlpservlcebeiween San Francisco, Japan and China, for one year feom Joly, l. 1867 .. 530,000 Por steamship service between tbe United States and Brazil, for the same period, For detailed information as to the finance a ef the department, reference is made to the full and satisfactory report of the Auditor, hereto appended. The number of postage stamps issued during the year was 347,734,325, representing §10,816,661; stamped envelopes 30,386,200, representing §921,500 50; stamped envelopes bearißg printed cards and requests 7,683,525 i representing §230,006 75; stamped wrappers 1,025,000, representing §20,500; making in all §11,988,668 25; a decrease of §858,769 25, as compared witn the previous year. The aggregate of stamped envelopes and stamped wrappers issued during the year ended June 30, 1866, was 39,094,725, repre -1 sen ting §1,172,007 25; an increase of 12.88 S - 550, representing §424,557 25, or nearly 50 per cent; being largely in excess of issues during any previous year since the intro duotion of stamped envelopes. The sal#of stamps, envelopes,&o., during the past year amounted to §12,204,729 54, or §216,061 29 more than the issues; showing the absorption to that extent of the stock re- I maining unsold in the hands of the pest masters, which amounted on the Ist of Julv. 1865, to §447,710. (See Appendix.) The issues of postage stamps and stamped envelopes during the current fiscal year, from Ist of July to Ist Novemder, are §360,- 765 m excess of the issues for the corre sponding period of last year, being at the rate of more than one million of dollars per I annum, I The increased demand since Ist July for 1 envelopes with printed cards and requests I for returning direct to the sender, if not I promptly delivered to the address, is very | notable, being about 663 per cent. The I general use of such 'envelopes will tend I largely to reduce the number of deadil letters. I During the year, 66 cases of claims, on ao- I count of robberies by armed forces, invol- I vmg an amount of §4,225 06,have been acted I upon. Fifty-seven of these claims, amount- I ing to $3,852 04, have been allowed under I the provisions of the acts approved April I 29,1864,and March 3,1865,ana nine,amount- I ing to §374 *j2,have been rejected as not com- I mg within the provisions of the law. I COUTBACTS. There were in the service of the depart ment on the 30th June, 1866, 6,069 contract ors for the transportation of the mails. Of mall routes in operation there were 6,930; aggregate length 180,921 miles; aggre gate annual transportation 71,837,914 miles aggregate annual cost $7,630,474; including me compensation of route agents, local agents, mail messengers, postal railway clerks, and baggage-masters in charge of mails, viz., $779,710, the aggregate annual con was $8,410,184. Thisseryice was divided as follows: Railroad routes: length 32.092 miles; an nual transportation 30,609,467 miles; annual cost $3,391,592, about 11 cents per mile. • Stsamboat routes: length 14;346 miles annual transportation 3,411,962 miles; an nual cost $440,844, about 13 cents per mile Celerity, &c,: routes’ length 134,483 miles annual transportation 37,816,485 miles l annual cost $3,798,038, about 10 cants per mile. -The length of routes was increased over the preceding year 38,581 miles; the annual transportation, 13,724,420 miles; and the cost, $1,393,590, the increase. arising princi pally from the restoration of service in the Southern States. A table herewith annexed shows the rate of pay per annum for mail transportation m operation in late Insurgent States on the c Mth June, 1866, $1,170,529, compared with the amount due for service actually ren- S? 1 ? j 1 1? th 9 se States in the year ending with ■that “date, _5769,218; the difference, $401,311 resulting from the fact that much of the .service was in operation only part of the f^K D6t postal receipts from those ttt&tGß tor tno same p9nod betas* &iQ3 the without including tlie compenl station of route agents, local agents, and mail messengers) exceeded receipts by $75 383 A table is annexed showing the ser iate operation in these States,September 30,1866, compared with the condition of the ?®roce same States, November 1. 1855, the date to which the statements on were made np in the last annnal From this table it will be seen that “ ofPeration 0 f P er ation in the States enu merated ninety railroad routes, with an Hraate length of 8 1703 miles, at a cost of nam; tw ®nty-slx steamboat routes, with an aggregate length of 5 557 ■“Ues.'.at a coat of $195,665 per fnnum; and „ Btar service route?, (celerity, & 0 ,) With an aggregate length of 46,4423 miles at a cost of $1,062,477 54 per annum; making the Whole service now in operation in these States, of all grades, 1,253 routes, with length of 60,1704 miles.at a cost of $1,845,623 .54 .per annum. Compared with the service m operation on the Ist of Nov. 1865, viz, seventy-one railroad routes With anafggregate length of 6,242 2-10 mUes at a cost of $437,257 . per annum; twelve steamboat routes, with an aggregate length of 3,8694 miles, at a cost of $937260 per fn nnm; and 154 “star service routes, with an aggregate length of 8,1861 miles, at a cost of $177,743 per annum, there appears an in crease of nineteen routes, 1,92855-100 miles and $150i324 annual cost of railroad service fourteen routes, 2,9714 miles, and $102,305 annual cost of steamboat service; and 983 routes; 38,2564 miles, and $884,734 54 annnal costof “atar service;” makin a totalinoreasn of 1,016 routes, 41,872 55-109 miles. and $1,137,363 54 annnal cost. .Another, table Is annexed showing the number, termini, and length of southern railroad routes not in operation September 30,1866; the number being only fourteen and the aggregate length 696 12-100 miles! Comparing, this with ninety routes in opera tion, having an aggregate length or 8,1703 ggtiles, shows a remarkable progress In the Pwnsoltation of the railroad system of the being two thousand two jknndredand fifty routes in all the States ■nnmierated, these statements show more uun halfthe whole number tobela opera- i THE DAILY EVENING BULLETIN.--PHILADELPHIA. TUESDAY PECEMBEIt 4.1866-TRTPLrt SHEET. tlon, comprising nearly nine-tenths of the onroad routes. All the routes Jin thea. states -were duly advertised to be let to con ract; a part-from the Ist January,-1866, and he residue from.'lst July, 1866; but on a -targenumber of - them- no proposals—were received under the advertisement, and on many others the bids were extravagantly nigh, In the latter case,-offers of the highest admissible rates were submitted by he department to the lowest oidders; and in some instances negotiations -were—opened through 1 special agents, postmasters, and leading Citizens.; By all these ineans combined;:the amount of service here stated has ' been ob tained. The existing contracts in all the States! L al ? e< i’ : except Tennessee,wi 11 expire on the 30th June, 1867. New "advertisements, in-! vitmgproposals-for four-years’ service from! Ist July, 1867, are now being issued, under which it is hoped all routes of real utility in the whole section will be let, ! By a recent order ©f-the department, the! overland mail route to California, of which Atchison, Kansas, had been the. initial pouit, has been changed so as to have two points of departure—-one from Junction city, Kansas, on the. Union Pacific Railroad route division),running from Wyandotte, Kansas; and the other from Port Kearney, Nebraska, on the Union "Pacific Railroad . running from Omaha city,Nebraska, the lines from these two points meet at Denver city, in Cqlqrado_Territory. The JUnction City road connects at Wyan dottewith the pacific-railway from St.Louia, Mo., making a - continuous rail way connec tion with the eastern-cities. By this route ihe stago travel is diminished one hundred .nd sixty-eight miles, and the time occupied in the transit should be proportionally re duced. The mails to and from California, which before were sent via Chicago and St. Joseph, were consequently ordered, on the 15 th of August last, to be sent via St. Louis’ Wyandotte and Junction City. The reports so far received of the actual running of the mails since the change took effect do not show the average diminution of time in the performance of the through trip which the department was led to expect, though the capacity of the route for superior expedition is proved by the fact that in one or two in stances themails have beenreceived at New Yorkinnineteendaysfrom San Francisco, a day. less than the shortest time ever made previous to the change. Subsequently, however, the extension of the Chicago and Northwestern Railway to Omaha City, which is necessasy to form a continuous fine by rail to Fort Kearney, has become so nearly completed, that, on the 13th of No vember instant, orders were issued to for ward via Chicago, Omaha City and Fort Kearney, all mails destined for the overland route from the distributing offices at Port end. Boston, Hartford, Albany, New York, Philadelphia, Pittsburgh, Buffalo, Cleve and and Detroit—the expectation being that mails from that portion of the country represented by these distributing offices will find their quickest transit by the northern route. The preparation of post-ronte maps for publication has been continued by the topo grapher, and is well advanced. Two sheets, .exhibiting the post offices and mail service of the New England States, are in the hands of. the engraver, and will be ready for dis cribution and sale early this winter.- Ther amount of fines imposed and deduc tions -made from the pay of contractors for failures and other delinquencies during the year was $62,956. 48, and., the amount remit ted for the samp period was $6,654 39, leav ing nniount of fines and deductions sdb,3Q2 09, * J r ; A table is annexed, showing the number, description, and cost of mail bags,; looks and keys purchased during the year; the amount expended; for mail bags of all kinds being §53,627 60„ This compared with the expenditure of the preceding year. (891 - ; 715J!6,) shows a curtailment of $38,088 36 ! ■ .. foreign maix, service, ' • The aggregate amount of postage, sea, in land, and foreign, upon the correspondence foreign countries, was 82.- 289,-19 30, being an increase of ,$469,290 70 as compared with the previous year! Of this amount $1,840,800 92 ac orned upon the mails exchanged with Great Britain, France, Prussia, Bremen. Hamburg and Belgium; $328,341 330 n mails exchanged with the British;North Amorim Provinces, and $120,077 05 en the corres pondence transmitted to and from the West Indies, Mexico, Central and South America. The transatlantic mail steamship lines em ployed m the|servicejof foreign governments conveyed mails, the postages on which amounted to $975,109 23; and Uiose employed in-the service of this department conveyed “ a ’ la -, th e postages on which amounted to §0b0,691 69. . . The United States’ portion of the postages upon the correspondence exchanged with Great Britain and the continent of Europe amounted to $775,647 69; with the British American Provinces, $188,883 53- with the West Indies, Mexico, Central and South America, $120,077 05. The number of letters exchanged in the mafia with foreign countries was 9,430,546; 4,886,916 were sent from,and 4,543 - 630 received in The United States. Ofttfis number 8,564,847 were exchanged with Eu ropean countries, an inorease of LB5l 330 pwr the number exchanged in 1865. The number of newspaperssentto foreign oonntaes was 2,804,442, and the number rl celved from foreign countries 1,381,724 a m S fe atotal of t lB6 ’ 166 ’ °ft his number 3,828,135 were exchanged withEurope.be ioSr 811 mcrea6e of 29,157 on the number in lOvvi fi he Increased correspondence with for- °s^ ntrles ’ Particularly with the conti -25?f ° f dpnng the year is unprece dented,amounting to more than twenty-five percent, as compared with the previous jcaTi rJSIL 00 !. 1 of mail service per bjl steamships employed By this -department’ under the provisions of the ex- W| allows the sea and inland pos tage to American and the Bea postage only foreign steamers, was $525,307 46/ J C £. B } Pfooesn transportation of mails to and from the West Indies, by steamers whwL differentiates of compensation within the limit of the postsces was KK,f 1742 32 Ims thaif thTamount wimyfd. toteS pos^es n P° n the mails The amount paid for sea and isthmu trmisportauon of the mails exchanged with %£g Amerioa ’ Raffia, -The f? c « SB of postage collected in the United States upon the correspondence ex • changed with Great Britain and the conti nent of. Europe was $500,627 76; causing baiance against the United States on settle ment of the international postage accounts aggregate to $278,714 19 h or full.particulars of the operation of the foreign service reference is made to the P nexed heTeto to ““ rBP ° rt ° f the Auditor oonvention has been con eluded with the kingdom of Italy, which n^foi BleadinSreforms 8leadin Sreforms in international postal intercourse, recommended by th* P° B , tal T “ Df6reiloe held at Paris in May, 18q3. : It. .wan negotiated and - signed ;a' Turin on the Bth of July, 1863, and the rati fications thereof were formally exchanged on the 14thof June, 1866. This «® v « ntion ’a COPY of whioh is annexed, wiU.bejCkrried into execution as soon as nofice fe received from the post department ° f . ltal Y of the route or routes of transit by 10 h Jh® exchange of correspondence in closed bags can be effected. Notice was given by the British govem “e”'t’.™der date of July 25,1866, of its pur pose to terminate the existing postal con- between this country and the United fungdom on the Ist of January. 1868 simnl- expiration of the mall subsidy contract with tbo Cnnyd line; ao- .. 150,000 eimpanied with an assurance, of the desire of that government to conclude a new con vention on a more liberal basis, reducing be present rates of international postage and granting enlarged mail facilities. The necessary steps -were at once taken to accomplish that object, and I have the satisfaction of announcing -that a preliminary basis for-a-new postal con vention has been agreed upon by the two post departments, reducing the’ interna tional charge on a single letterfrom twenty four to twelve-centsreadmitting into the mails printed'matter of every kind, and patterns of-merchandise, at suqh rates as the despatching country shall establish; and granting to eachcountry, reciprocally, the right to transmit, correspondence in closed bags; or in the Ordinary; mails;, through the other, at the same rates of charge paid by the inbabitantsof the'country through which -the correspondence is forwarded. • ' (The principal'advantages'of the new 'ar rangement may be briefly stated as follows: 1. A rednotion of the international letter postage, to one-half of the existing charge. : 2, The remorhl of all restrictions upon the exchange of printed-matter.in the mails at reduced postage charges. ,3. The compulsory, prepayment of postage upon letters and other'mall matter,’avoid ing entirely the- keeping, of complicated postage accounts upon International oorres pondence.-' • : = - - ; 4. A reduction of postage , with all other countries t p and from which correspondence is transmitted in the British mail, or in closed bags through, the United Kingdom. The establishment of uniform and reasona ble charges for the sea and territorial transit of corresponaence in closed mails; and granting to each post department the right to make ..use. of all - mail communications established under the authority of. the other, for a despatch of correspondence, either in open or closed mails, on the same terms as those applicable to the inhabitants of the country providing the meansof trans mission. 6. The postage of all international letters to belong wholly to thedespatching country, and no charge whatever to be made by the receiving country on delivery. 7. Each post department to make its own arrangements for the despatch of mails to the other, by well appointed ships, sailing on stated days, and to pay the owners of such ships for the conveyance of the mails which it despatches. No time has yet been agreed upon for carrying the new convention into operation, but it is confidently expected that the British office will consent to name as early a date as practicable, that the public may receive, without unnecessary delay, the benefit of the reduced rates of postage, as well as of more frequent means of mail communication bet ween, the-two countries. The postal convention with Venezula, re ferred to in the last report, was executed on the part of Venezula on the 26th or June and went intooperation on the first of oW her last. A copy thereof is annexed. Negotiations have been- commenced with the post department of Brazil, for a postal convention to regnlate ■ the exchange of cor respondence witn that empire, by meansof the direct line of subsidized mail packets plying between New York and, Klo de Janeiro, via St. Thomas, Para, Pernambuco andPahia. - The draft of articles submitted by this department as the basis of the con vention, proposes the establishment of low rates of postage both upon letters and printed matter, the avoidance as far as practicable of postage accounts between the respective post departments, and adopts the leading improvements recommended by the Paris international postal conference. A cppy cf the contract for the mall service to Brazil, which was executed by the. United States and Brazil Mail Steamship Company on the 29th of August, 1865, is annexed hereto. The Pacific Mail Steamship Company of New York, to which was awarded the con tract for the China mall service, authorized by the &ctof February 17,1865, has executed a contract for that service, a copy of which is annexed. The high reputation of this company, their experience , and undoubted resources, and the zeal and energy whie they have manifested in making preparah lions for the service, afford a guarantee of the success of this great national enterprise to extend and develop American commerce by obtaining control of the vast and con stantly increasing trade of Japan and China, which the advantages of our geographical position should enable us to possess. The contract is for monthly trips between San Francisco and Hong Kong, touching at the ports of Honolulu in the Sandwich Islands, and Yokohama (Kanagawa) in Japan, both on the outward and inward passages, by a line of first-class American sea-going side-wheel steamships of not less than 3.500 tons burden..government meas urement, and of sufficient number, not less than four, to perform the stipulated service The Great Bepublic, the first of the new steamships* building specially ior this ser vice, was launched at New York on the Bth of Novemberinstant, is now receiving her machinery, and is expected to be ready for sea about the Ist of May, 1867. She will re gister over 4,100 tons, government measure ment, or 1,100 tons more than the minimum tonnage named in the law; her extreme length is 380 feet, extreme breadth 50 feet, depth of hold 50 feet, and her draught when ordinarily loaded will be 21 feet. The second steamship, of similar size and propertions.is to be launched early in December of this ?'h„^f ll^T W l llb , e oPI epar ? d , for service about the of July, 186/; and the machinery for twoothersoflikedimensions is in course of construction. An inspection of hulls and machinery of-these ships, as well as a gene ra knowledge of the preparations making by .the contractors, has satisfied me that very possible exertion is being used to fui fil the requirements of the law and contract The company have tendered their firat gfoBB steamship Colorado to take the mails l^riSw ? n of January, 1867, the day named in the law. This ship which has been withdrawn from the Pa nama and San‘Franolsco line to prepare her tor sendee on the China route, is ofthe r£ qttired tonnpge, and will, it is thieved,fully comply in other respects with the terms* kit nnntraot, although the report of j her inspection by a naval constructor, under latel y given by. the Secretary of the Navy, has not yet been received. y fnthf building of steamships for this line anoonntered a practical diffi culty, arising out of two conflicting condi shto« tw 1 ’ th . e . necessity of construotiog ? nnnld make ihe long voyage of Eton e Font wn?® 11 £ l an S and object for whioh Congress authorized the w 3? e * nt °/ the llne > an d secondly, the practicability of securing that object with theships to large r to pre elude j by tiieir hcEvr pitity of entering the harbor of Honolulu" which nas a depth of water, under favora ble circumstances, of barely 21 feet. Thi«o two conditions, they allege, were inconsistent, smd theylh’erefore filmed the responsibility of so constructing ?thh ships as to attain the more important nh! fots of the subsidy, while necessarily plac ing a practical difficulty in the wayoftha ?„ cc °“P llah “ en i of the lesser, believing this to be the only course open to them without disregarding the main ends of thelr con traot, as well as the wisest for the public in torests to be promoted by the establishment of the line. They are, consequently, build ing ships of much greater cost, by reason or increased size, and proportionally moreex pensive to keep in service, than was neaea sary tomeet the minimum requirement of Uie Jaw. Although the law,wnd the con traot executed in pursuance thereof; name Honolulu as an intermediate pori/ th! fact, appears to. be well" estififldkZs l b /w«whtoh 6 offloia ltafofmttion,'that the Zaws which govern the navigation of the Pa- cificccean, render it un wiBe,if not incompa-' ti ble with the oomplete success of the euter i to require the steamships to touch at the Sandwich Islands bn : their passages be-- tween San Francisco, Japan and J China.: Ihis iB conclusively shown by the report of my predecessor to the Senate Committee on! v Post Offices and Post Roads, dated June XLj in which are embodied explanations tarnished by Rear Admiral C. Et. Davis.su perindent ofthe United [States Naval Obaer vatory.respecting the proper routes to be! pursued by steam // vessels navigating Pacific ocean between San Francisco Kanagawa and Hong Kong Admiral Davis, referring to the ad- 1 vantages of the great circle, or direct route between China and San Bfcancisco.so clearly defined by natural laws, uses the following explicit language: “It is impossible, id es tablishing a route between two continents for-the improvement of intercourse and trade, ! overlook or ; neglect such advan tages as these. It is hardly too .much tosay that it would amount to an absurdity to se lect the models of our ships with special re ference to speed; and to propel them through the water with engines of enormous power, and: then: to permit those aids and advan tages which nature offers to ns as her own means, of . co-operation. At any rate ' w . o ... Prepared to do so! j we must also be prepared to leave this field w.enterprizeatnodiatant day to those who » A. obey 13,78 governing the navigation of the great seas. These considerations with regard to the eastern voyage appear to dispose of the whole' question. .They show that touchingatthe Sandwich Islands on the return from China would prolong the voyage so many days unnecessarily: I that an additional line of steamers must I soon be established, provided the inter- I coarse between China and America is to ac- I quire that importance which is confidently I expected.” J I A careful consideration of the subject has satisfied me of the conectness of the viewß expressed by my predecessor in that reoort. that the steamships ofthe mainline between oan Francisco, Japan and China should not be required to touchat the Sandwich Islands does not, in my judgement, admit of reason able doubt; but the condition upon which such release should be granted is a q uestion exclusively for the determination of Con-' gress. A wise and liberal policy towards a notional enterprise of this magnitude would : seem tojestify the release without imposing : onerous conditions, in consideration of the increased expenses incurred in building ships for the service of great size and aug mented speed, as well as of the important public interests involved in the success of ine line , APPOINTMENTS. thftvps? erof poBtoflices daring Number discounted"..!!!!!! *•**•••*• **£{ 3 Increase of offices ~..-...!.7!T!!!!.V.“.V — Sr lB6? 051 offl c«a In operation on the soiii 1 1866 "ontheMlh oFjvinßl \Z etHCe,S ,ullllectto appointment by ' Number by the Bo»Sa«iier"Senei»j'“" M.llO A umber of offices re-op toed in the (Southern States up to November i,— Appointment* made to fill vacancies by resie- ; nation of postmasters K , _ To fill vacancies In suspended offices. ySI; By removals.. _!T__ B* change of names and sltM.."'~7"'",'~'~; ~ ‘‘VS S 7 de £.A.°f postmasters. By establishment of n*w offices Total number of appointments Number of cues acted upon " ln »ic Ayjro'e ocmpen’n* *32 sss No. ofpottftl route clerks 83 AggreocoiDDen’n ql’-wj v2* ** ents 58 Aggre*e compen’n sj^i# °* aaaieia ,3a Aggre’e compau’n 1,890 Tot*! ~Zf re? deU f system isln'operaUoa “ of the principal cities. The number of carriers employed waa 863, at an aggregate compensation of 8589,233 41. This mode of delivery has steadily grown in favor with the public, and in sevtralof the large cities, where its progress has been mo ! ! t ,S ark - ed * the local postage shows a gratifying increase. Experience has shown us superiority over the old system of box delivery, and the results of the laßt two years commend it to Congress as a perma nent brandi of the postal service. Its effects in saving time to the pnblic; in insuring the correot delivery by inducing the habit of directing letters to street and number- in reduoing the great number of advertised and dead letters; In facilitating correspond ence, especially local; in obviating the ne cessity of the many fruitless calls It the post office.arerehedon to prove its advantages over the old system of office deUvery. (See tabular statements in the Appendix.) DEAD LETTERS The whole number of dead letters received examined and disposed or during the year was about four and ahalf millioiis,upwards of 40 per cent of which were from forty seven of the larger post offices. About six hundred thousand other letters were re ceivea, being unmailable for want of pre payment ot postage, or on account of mis direction or illegible address, Daring the year there were registered and remailed to the respective owners, as enclosffig money m sums of one dollar and upwards, 32,814 letters, containing an a°- gregate of §244,589 99, of which number 2?!- 948, containing 5221,066 19, were delivered. i 9O per ”*> The “amber of letteri enclosing sums of money less than one dol- Iq r io r f maii . ec ? *? the respective owners, was <»ntainingan aggregate amount of olfi, s were deuf^eV 1 ’ 175 ’ containin S The number of letters containing papers of value other than money, as deeds, bills of exchange, drafts, checks, &0., received, re gistered and returned for delivery to the owners, was 26,610, and the nominal value of the enclosures therein was $7,826 881 as arUdes of jewelry, was 67,016, of which 53, ■ 572 were sent out, (containing for the most The number of letters returned,unopened TOuntriea durlßg the year was 193,754, the amount of unpaid postage on which was $9,879 40. The number received from: foreign- countries in the same condi tion during the same period was 72 440 and o ?Pnr f n^Pi ai **““8 347 more than at the date of the last annual report, and be6n fakeh to estab and TerrnSf^® 068 States The number of orders Issued durlne thn “■“W * 5D 2B T? 6^ o i-“£S-be-sddSi 49 : amount of orders repaid to ' purchasers Excess of issues over oav- ' 1 men ts.—. From tile establishment of the system on November .1,1564, to July l, 1865, a period fo Vffiftn*}™ to&theoxdera issued amounted to §1,360,122 52, and the orders paid and repaid to §1,313.677 08, On comparing these corresponding transac tions of the last fiscal year, it appears that the business has been almost tiebled. The average amount of each order issued during the year was §l6 32. The whole number of duplicates was 1,432 of which 1,124 were issued to replace origi nals lost in the mails or otherwise, 296 were in lieu of orders invalidated by age, and r> to replace orders illegally indorsed. The sum of §2,710,685 53 being surplus lunds accruing at the smaller offices from the transaction of the money order business, was transmitted to first-class offices used as depositories, either by national bank drafts or m registered packages by mail. The re ceipts and expenditures for the last fiscal year, as adjusted and reported by the Audi tor, were as follows, viz: _ Beceipts: Fees on order* Issued ...... Premium received on exchange Expenditures: Commissions to postmasters an 432 49 ClerS hire.. „ , n J: Book, and stationery f IS miom paid on drafts... " « Miscellaneous, including furniture ana lintuiea ~ Etmitunces lostln the maii-IIZZ E 3300 Excess of receipts over expenditures.™. 7 Tnis sum represents the gross soioani of 75 ?£l™, ae „ on 019 Principle that it should be self-supporting. It is a great publicnecessity, to accommodate pri vate citizens, and it willnot do to say that no mail route shall be opened, or post office established, until the business on the pro- - posed route or of the proposed office shall pay all expenses. Large sums of money are paid every year to contractors for carrying mails beyond our frontier, across the central wilderness, to the Pacific States; and other large sums are paid for service on lines tributary to the maJ n lines, to accommodate as yet sparse settlements. From these, comparatively small returns come back in the shape of postal revenues. Yet these very agencies invite settlement and enconrage enterprise m material development,so that there comes back to the people in real wealth almost as many millions of dollars as the government expends thousands in this particular branch of service. ; Congress has wisely appropriated five hundred thousand dollars per year to Day for carrying mails from San Francisco to China. There is an excuse, in sending mails for paying this money to a private company in aid of a great commercial enter prise. This money, so expended, will come back from the China seas in goods and wares and merchandise to our own markets, or in seeking European markets, in transpor tation paid across the continent. Whether the people pay in postage stamps tor transmission of letters through the mails, or whether they pay by appropria tion of public money, the ends sought and the ends attained are the same.. While a lavish expenditure of public money is to be avoided, there ought to be a liberal expen diture for extending mail facilities by land and by sea. In another, respect I recommend more liberality. The clerks and employes of the Post Office Department have not been well paid for the services they have performed. The salaries of clerks in the Post Office De partment during the four years of war were not increased, while all the expenses of living were more than doubled. The sala ries were fixed in times of peace and low prices. They were not raised when war raised prices. Clerks were compelled to rnn in debt, and, and, In many cases, their families suffered from want. They worked faithfully and skillfullv and honestly in discharging important duties for the Go vernment. I submit that they ought to have Borne reasonable allowance for the past, and an increase of salary in the fu ture. Clerks in post offices, letter carriers, and route agents are not paid what they ought to be paid. Honest, industrious men are re quired for all these duties, and they ought to be paid a fair and living compensation for their labor. Their employment is unin terrupted, except by sickness. The letter*, carriers claim peculiar consideration. They travel every day from early m the morning until late at night, m beat and cold and rain and snow, all through the cities, distributing letters and papers without compensation enough to pay house rent* I feel that the government ought to pay all these employes better, be cause they earn more, and because the government can afford to pay more. I plead the cause of all these employes because it is just to them that I should, and I ear nestly ask permission and means to pay them better. The foreign, postal service has grown to such magnitude that increased care and re sponsibility fall upon those having the direct charge of it; and I respectfully ask that authority be given to appoint a super intendent of foreign mails, and an additional clerk for that branch of the service. 3,903,890 22 $35,799 S 3 203 I also recommend that authority be given to appoint a superintendent of the opening and distribution of dead letters. The law regulating the franking privilege ought, in my opinion, to be amended. Ido not think the privilege should be abolished. I think it a necessity for the different de partments, as well as for Congress. But great abuses have grown np under it. To avoid frauds and a misuse of the privilege,- I recommend such a change in the law as to require the written signature of the person exercising the privilege upon the matter franked; and to relieve the heads of depart ments and bureaus of great labor, that a franking clerk be authorized by law for each department, of the government, with the right to frank all matter pertaining to the department for which he is appointed^ . Kespectfully submitted: Alexander W. Randall, General. The President i fIA-pmm, &c.—ouvee mew vy (Btaffed Olives),Nonpareil anfsaperflne Onea; anaxrenchpuyes; freeb goods, landing ex Napoleon