The New York Herald Newspaper, December 6, 1869, Page 4

4 THE POST OFFICE Report of John A. J. Creswell, Pos{master General. Post Orrico’ D&PrakTMENT, WASUINGTON, Noy, 15, 1569, ‘The ordinary revenues of this department for the facal year envied June 30, 1869, were $18,344,510, aud the expenditures $23,893,151. For the year ended June 30, 1863, the ordinary revenues were $16,202,600, and the expenditures $22,739,692. The Increase of revenue for the year 1869 over the pre- coding fiscal year wa $2,051,909, and the increaso The increase of revenuo of expenditures $90 for 1863 over 1867 was $1, expenditures for 1363 over 1887 was $3,495,109. ratio of increase of revennue for the year 1369 18 12.59 per cent, avd of expenditures 4.25 per cent, compared with receipts and expenditures for the year 1803. Tne increase of revenue for 1309 18 greater than the increase for 1563 by $996,335, and the increase of expenditures for 1869 43 less than the increase for 1863 by $2,527,570. If, therefore, the increase of receipts be compared with the increase and with ® ytew to obtain data upon whioh to base tuo readjustment of tne rates Of pay for toe transporsation of matls on railroad routes in those Staves for the new term commencing July 1, 1869, cirowars were sent out in February last tothe pro- prictors of all such routes, requesting them to ‘weigh the mails they conveyed for thirty days from the ist of Maron. and report she result to tae de- partment, avd to furnish, iso, Geacriptions of the accommodations proviaed for mails and agen’ togeiver with statements showing the number oi times per week the matis were conveyed in each direction, ‘The information obtained in answer to this call is comprised in table E of the report of the Second Assistant Postmasier General, hereto ap- pended, in which there are also embraced returos from @ Dumber of routes in other States, made at various times since the publication of a in the annual report Jor 1867, It 1s t! the departmeat tn the future to make a similar call upon tue proprietors of ratiroad routes, near tho @ of the coutract term in each of the four con- ections Info which the country 1s divided, 89 ne readjustment of pay in every case may be made upon new aad corrected returns, (ne rates hereto:ore paid for railroad mali servico in New Kngland and New York have teen carefully compared With the returns just received from those States; and in every instance in which the amount aracter of the service have been found to pe ry insuiiicient to justly the rate allowed a com- nsurate deduction has been made. On the otaer baad, whenever @ demand for Increased pay has been made which tue re.uros appeared to warrant such Lacrease has been allowed. Changes have tuus been made in the rates of pay on more than filly railroad routes in that section, comprising over ono- third of the who.e number, ‘T'nese roads have been of expenaitures for the year iast ended, i¢ will ap- pear that the Increase of receipts exceeded the in- crease of expenditures in the sum of $1,084,371; while a like comparison of the receipts and expen- ditures for the year 1868 will show an excess in the increase of expenditures over the increase of re- ceipts for that year of $2,439,635, ESTIMATES FOR 1871, ‘The estimated expenditures for the year ending June 30, 187i, BFE... ee ee ee + ++ $28,581,093 The revenues, estimated bf om er cent increase over las voar asses sesehenrs sant ncsr=s emia en nding appropriation Jor free bs Hea teseeee 700,000 —-——_ 00, 878, 981 Leaving a deficiency of ee ee $4,702,132 clade the foliow- The foregoing estuna " in the nature of subsl- jal aDpropriauou For mail Francisco, Japan and China... For like service between the Un and Brazil...... enone eonaugensplele See For like service between San Francisco and Sanmawich Wwlands......sceseerserererererer Of the deficiency appropriated tor the ear 1869 there rewains unexpendea a ANCE Of..... 20 sesererssreverercsences Against which there are properly oharge- able sundry unliquiaated accounis, Which caunot exceed the following esu- matess— For balances to foreign countries. $250,000 For mail service under contract and recognized....... seseeees 284,186 For mali service unrecognized.... 150,000 teamship service between San a «$500,000 150,000 15,000 $1,500,000 684,186 Leaving 4 net balance, after settlement and payment of all iiabilities, of. ++ $815,813 STAMPS AND STAMPED Ei 23, The number of postage stamps issued during the year was 420,890,040, repre- sentin, cosceecccsencesesscce «+ $12,700,220 The number of periodical stamps Was 150,920, reprosenting......ss.eeeeeeeeeee 16,348, Stamped envelopes, plain, 46,265,750, rep- TOSEDUDL.....00eeseeeee «+ 1,332,862 Stamped envelopes, request, 31,814,100, representing. ASD prt 950,720 Newspaper wrappers, 3,505,250, represent- if The whole number of stamps, envelopes ace and newspaper wrappers was 602,722,500, of Lhe aggregate value of... $15,078,051 The increase thereof 1s beat exhibited by the fol- lowing table:— Fiscal year ending Description, | Tune BO. en ir ae. Postage stamps 11,753,264) 12,700,220) 969,956, 6 38-100 Newspaper and pe Tiodioa! stam 14,760) 16,848] 1,898 |10 63-100 Plain stam en velopes.. -.. 1,985,21] 1,289,882] 47,644) 3 70.100 Request stanipe! en volopes... ve y 191,906) 25 17-100 Newspaper wr'pp'cs 4,533] 6 (2 109 Aggregate. ‘6-100 ‘The issue of perivdical stamps was discontinued by my predecessor about February 1, 1869, The number of packages of postage stamps lost in the maiis auring the year was twenty-two, repre- senting $818, and of stamped envelopes fifteen, rep- resenting $259, Veing much leas tan the losses from Mdke de.lnquencies in 1863, CONTRACTS. There were in ihe service of the department on the 80th of June, 1869, 7,056 contractors for the transpor- tation of the mails, Of mail routes in operation there were 8,449, ag- gregating in length 223,731 miles; in annual trans- portation 90,723,403 miles, and in aunual cost $10,406,601. If the compensation of raliway post oMice clerks, route agents, local agents, mail mes- sengers, mai: route messengers and baggage masters in Gharge of malls, amounting to $1,275,227, be added, che aggregate annual cost will be $11,631,723, Tuis service Was divided as follows:— Railroad routes—Length, 49,437 miles: transportation, 41,099,204 miles; aunual $4,723,689—about 11.41 ceats per mile, Steamboat routes—Length, 20,779 miles; transportation, 4,331,011 mules; $774,536—about 17.38 cents per mile. jerity, certainty and securiiy"’—Length, 163,415 miles; annual transportation, 44,993,108 miles; an- uuai cost, $4,0.8,255—abuut 10.9 cents per mile. ‘There waa an increase over tho preceding year in length of routes of ,803 miles; in annual transpor- tation, 6,499,075 miles; and in cost, $140,445. To the last add increased cost tor railway post office clerks. route, local and other agents, $160,594, and the total increase o! cost wili be shown Lo be $301,039, The foregoing siatemeuts of distances and costs do not inciuue service of “special! oMces. There were at the close of the year 1,902 of these ofices, each with a mail carrier, whose pay from the de- partment is not allowed to exceed the net postal Yield of the oflice. “Speciai’’ routes and their car- Tiers are iuciuded in the number of contractors and foutes as given above, OVERLAND MAIL, The contract or agreement entered into on the 21st of Uotober, 1363, between the Post Oiice Department and Messrs, Weils, Fargo & Co. for the transporta- tion of the United States malls betwoen the western terminus of the Union Pactiic Railroad aud the oast- era terminus of the Central Pacific, for the term o7 ene year froin Uciober 1, 1863, or unttl the two rail- roads should meet, at the rate of $1,750,000 per an- num, subject io deduction pro rata for every sec- tion of Hity miles of railroad compieted and reported to the department ready to carry the mails, expired on the'th of May, 1669, the railroads having effectea ® junction and reported ready to carry mas through on the 10th. When the contract was entered into it was estimated that the junction would not be iormed betore the Siat of July, it being supposed that the severity of the weather would compel 8 suspension of work on the railroads during the montws of January, Feb- Tuary and Marco; and it was jurther estimated that the cost of the mail service under Wells, Fargo & Co.’8 contract would amount to $670,144. The weather proving unusualiy miid, however, and the progress of the roads being uninterrupted, thelr com- fon was accelerated nearly three months, and ence the co*t O1 the service under the contract with Wells, Fargo & Co. was reduced $214,439 below the estimate. The amount actually paid to them for t! whote period irom lst October, 1463, to 9th May, 1869, inclusive (221 days in ail), after making deduc- tions for compleved sections, Was $455,504, The temporary contract entered into on tho 3ist of annual cost, annual annual ovst, < Uotober, 1868, With the same partie $79,000 per annum, for that division of the overiand mail route extending from ihe terminus of the ngas Pactiic Railway to Denver, numbered 14,167, and known as the “smoky Hill route,” expired by limitation on the 30th of June, 16) The route had been curtailed in the meantime 60 as to commence at Cheyenne Wells, being coincl- dent that far with the daily route to Santa Fé, and $14,149 deducted from the annual pay for thirty-six miles decrease, reducing the pay to $64,851 per an- num. ‘the route as thus curtalied, and numbered 17,0348, was aavertised under date of Janu- ary 6, 1869, to be let from the lat of July then next, the department offering to receive proposals ‘unt the 7tn April aud to decide thereon by the 14th of the same month. Under this advertisement several bids were submitted, the lowest being $84,600 per annum. Jt appearlug, however, from the specitic reports of postmasvers, that the mail matter conveyed over tue route had become incon- siderable, owing to the transmission of the arg mails for Denver over the Union Pacific Railroad, alter its completion, via Cheyenne City, aad tnat there were no vost oifices whatever between Cheyenne Wells and Denver on route 17,034, the con- tinuance of “the service was not deemed to be of suMcient importance to justify the expense it would Involve, and the route was consequently leit out of operation from 80th June, 1869, The contract made on the 28th of October, 1963, wits Weils, Fargo & ©o., to carry the malis for one year from October 1, 1864, on route 17,035, from Cheyenne City to Denver, 102 miles and back, daily, at E aha per annum, expired on September 40, 1869, and the route was reiet from October 1, under the above mentioned advertisement of January 6, to the same parties, they being the lowest bidders, at $5,640 per annua, ‘Fis i# all that remains of the Olu overland mail service, and this will doubuess be superseded in @ few months, @ raliroad between Cheyenne City and Denver being now in rapid course Of construction. READJUSTMENT OF PAY ON RAILROAD ROUTER, Tn anticipation of the close of the contract term in the New Lugiang states aud the State of New York, Ciassified and their pay readjusted and estapisued in strict conformity with “the conditions pre- scrioed by law, to wit, ‘the size of the mails, the speed with which they are con- veyed and the importance of the service.” Tas details of this Ciassificacion and readjustment appear in tabie F of the report of the second Assistant, a!80 hereco appeuded, Which emoraces also a number of reutes in other States on which changes have been made, On application by tue proprietors of the several roads, at aufereut times since the prepara- tou of the ias¢ annua) report, Oa ail of tuese routes together, Seventy-eight in number, ths former aunua pay amounted \to $742,852 ‘Toe annual vay, a8 readjusted, DOW amounts to $su3.7ud, slowlug Au excess of the presont over the former amount Of annual pay of $62,353, in these tabies (# and F) as tu similar ones hereto- fore published the routes are arranged not by States, but according to the rate of pay per mile pec an- num, Lue aighest being trst. uch 19 accompanied by an aiphsbelical index, for easy reiereuce. Great complaints have been made by some of the Principal railroad companies ta relation to tue wileged laadequacy OL their compensation for oarry- lng the maily, They assert tut the rates of tueir pay were uxed by the act of 3d March, 1845, and have remained ulcuanged for nearly twenty five years; and that aitnough the pay thus estabiishea was at the time of tne pussage of the act just and ample, i¢ ow fails auort of what they are fairly entitiec to. I¢ cannot be denied that, since tue pi of the act of 1845, important changes have taken place, the most conspicuous of wiich are the followmg:—A large tn the quantity and weigut of mall matier; an additional number of trips per day to meet the necessities of the service, and tne introduction of railway post omices, requiring much heavier and more expensive matl cars. ‘Taese changes have imposed addito! dnue3s upon the raliroads constituuog the great trunk lines, and have largely tucreased tuelr ex- peuses. In justice to this ciass of roads, I respect fuily recommend @ careful revision and readjust- meut by Congress of raiiroad Snteyreye and the estabizhmen of suck rates aa WLil bo Just and equit- abie to ali concerned. FINES AND DEDUCTIONS, The amount of fines imposea on contractors, and deductions made from their pay, on occount of fal- ures aud other delinqueaciea Turing the last year Was $94,193, and the umouut remitted was $43,950, leaving We net amount $5,242, THROUGH MAILS, Since the completiva of tue railroad line to the Pacitic, arrangements have been made to have ro- coras kept showing the time occupied in the transit of mais from Washington, New Lork, Boston, Chi- cago, Cincinnati acd St. Louis to Denver City, Sait Lake City, bacramento City aud San Francisco aud vack, Tue appeudix contains a copy of tie circular giving the necessary instructions to postimastera aud others. fhe records Of arrivals on the Atlantic side during the month of October have reached the departmeat, They show that mails are carried tarough frum san Francisco co Washington in 6 days, 23 hours and minutes; to New York, iu 6 days, 16 hours and 20 unluutes; to Boston, in 7 days, 4 noura; to Chicago, in 5 days, 7 hours and 80 minutes; to Cincinnati, in 4 days, 22 hours aud 20 minutes, and to St. Louts, in 5 days, 1 hour and 30 minutes, The above figures show the ime of the shortest trips. ‘ne average time Was:—10 Washington, 7 days, 7 hours and il minutes; to New York, 7 days, 2 hours aud 23 min- ; to Boston, 7 days, 19 hours and 25 miautes; to Chicago; 5 days, rs and 65 minutes; to Cinclunatt, 6 daya, & and 32 minutes, and to St. Lous, 5 doys, i6 hours and 23 muinates. Compared with tne time from San Francisco we time from «to cay ts 6 hours and 2 minutes less; from Pro. ory, 24 and 10 minutes less; from Salt Lane City, ud 9 hours lees; trom Denver city, | doy, 25 nours and JO minutes less, and from Omaha city, 4 days, 7 hours and 30 minu:es less—Salt Luke City beluy distant from the railroad 29 miles and Denver cily 102 miles, Under the old overland mail contracts the time from the Missouri river to Folsom city, 23 miles east of Sacramento city, was 16 days, from April to December 1, and 20 days for the remainder of the year. Mails have been transmitted twice a day each way between New York and New Orieans since the 1st of March last, once over the Southwestern route, via Washington, ). C., Lynchburg, Va., and Knoxviile, ‘Tenn., aud once over the Western route, via Louis. ville, Ky., and Humboldt, Tenn. By the latter roate @ portion of the trips have been made in snorter “me than by the former, tae shoriest being 78 hours and 30 minutes going south, and 76 hours aad 15 minutes gong north, while the shortest by the former Was 54 hours and 25 miautes golag souta, and 85 hours and 240 minutes going north. Greater regularity exists on the Southwestern route, however, 02 which the average time from March to Septemper, inclusive, was 69 hours and 29 minutes going south, and 90 hours and 59 minutes going north; while tue average on tae Western route for the same period was 92 hours and 13 min- utes going south, and 99 hours and 14 minutes going north. Taking both directions togetuer tuere were carried through, from Marca to S ptember, inclusive, on the Southwestern route 429 malis, at an average speed of 00 hours and 14 minutes; and on the Weat- ern route 359 mails, at an average speed of 91 hours and 18 minutes. By comparison with the through mail tabies in the last annual report it will be seea that the average time on both these routes is sensi- bly improved. A greater expedition has recently been obtained between New lork and Chicago, one of the three daily trips over the Allentown route, via Pittsburg, belong made in less than 31 hours each way. SPRCIAL AGENTS. The number of spectal agents in the employ of the department during the last fiscal year was forty- eight, at an aggregate compeusation of $134,342, Under the beg gee taat this force was excessive, Congress, 1n the Appropriation act for the current year, appropriated $100,000 “for detecting and pre- venting mail depredations and for special agenis,’’ and then restricted the action of the department by declaring that ‘no greater sum shail be paid special agents tuan 18 hereby provided.” ‘The aepartivent, desiring to conform to the law, and at the same tim to render the force of special nts as ecient possivle, deemed it necewsary reorganize tha branch of the service, RAILWAY POST OFFICES. On the 30th June last there were in oporation 87 lines of ratiway post offices, extending tn the aggre- ate over 7,201 miles of railroad and steainboat ines—being an increase of 3 lines and 182 miles of service over the year 1868, The number of clerks employed during the last year was 824, at an anoual cost of $584,300, During the raat ‘ear the num- A ber of clerks employed was and the amount ex- pended in compensation $329,700, No increase was made during the last year in the twice daily ser- vice, except by interchangable pouches between the principal post offices and between the several lines, ‘ne railway post office, by reason of the additional facilities it affords in mailing important letters uw tw the moment of the departure of the trains, an: in receiving, assorting and distributing the mails during their transit, thus saving many hours, and in sume instances days, in the communication between important points, has become an essential part of the service. It 1s, in fact, indispensable, and, as the population and wealth of the country shail in- crease, it will be necessary to extend it to keep pace with the wants and demands of the people, FOREIGN MAIL SERVICE. The total number of letters passing between the United States and foreign countries (Canada ex- cepted) during the last year was 12,696,654, of which 6,638,868 Were sent from and 6,957,796 received in the United States. The increase over the number ex- changed 1n 1863 is 1,465,122, Estimating the num- ‘ber exchanged with the Dominion of Canada, of which bo accurate account is reported, at 3,000,000, the whole number of letters exchanged in the mails with foreign countries exceeded 15,500,000, ‘The total postages on letters exchanged with foreign countries, és! ing the postage on letters to aud from Canada 50,000, amounted to $2,014,183, The aggregate amount of postage, inland, sca and foreign, upon the leter correapondence exchanged with Great Britain and other European countries during the year 1369 Wag $1,503,773, belng $202,604 less than tlie postage recetpus of the previous fiscal year. The number of lecters (single rates) ex- changed in the mails with the same countries was 11,428,661, am increase of 1,559,892 over the number exchanged in the previous year, Novwithstanding the recent redactions Of postage to all the.countries of Europe, except France, amounting in most aiances lo fifty per cent, the increased correspond- ence has produced revenue only twelve per cent lesa than that derived from the higher rates of the preceding year. The post upon letters sent to Furopean coun- tries exceeded the postages upon leitera received from Europe in the sum of $44,968, the excess of letters sent being about six per cent, This very small excess of On correspoudence sent over that on correspondence received is a convincing argument in favor of simplifying our postal arrange- ments with other countries by dispensing with the present complicated and expensive international ostace accounts. This can be readily accomplished by adopting the rule of compulsory prepayment of postage, and by providing (upon tae general prin- ciple, now well eatabiished, that every letter brings ® reply) that the postages collected on ali interna. tonal correspondence shall belong wholly to tne dis. patching pee ee no charge whatever shall bo made at the oMce of destinauon in the country wherein ‘he correspondence may delivered; and that in all cases the despatching office shall defray the ox- pense of intermediate transmission. The inconsid- erable pecuniary disadvantages wnich might result to eltherpost department under the praotical work- tug of such stem would be more than compen- convenience of the arrangement aud Lhe abolition of intricate and vexatious accounts, Tats principle has already been adopted in the con- ventions with some of the countries with which tho United States has direct postal relations, and it 19 hoped that ihe post departments of others will also see the propriety of adopting tras 8 means of s1in- plifying and promoting tniernational postal ex- changes. The excess of col'ections in the United States over the postages cotiected In Europo upon the letter cor respondence exchanged with Great Britain, the North German Union, France, Belgium, the Nether. lands, Switzertand and Italy was $374,924, sixty-two per cent of tne entire international postage cuarges having been collected in this country, ‘Tals result 13 owlng mainly to a failure to prepay postages abroad, ‘The excess of like collections Rating the previous year was $474,020, These excessive coliections of postage in tae United States cause heavy balances against this departmeat on settlement of the quar- terly accounis with the respective foreizn posi de- partments, Daring the last fiscal year the aggregate of such balances anounted to $185,385, The sieamsuip linea employed by this department in tie transportation of the matis to Great Briain and the Continent of Europe performed four weekly services from New York, a wovkly service irom Que- becin summer and Portland in winter, and three outward trips from Balumore, receiving as compen Balion the sea postages on the mails conveyed. The earnings of the respective lines amounted to the suin of $538,207, as follows: — Tho North German Lioyd hae, for fifty-two trips from New York to Southawupton. $60,432 The Cunard line, for fiity-two trips from York to Queeastown.. + 71,578 The Hamourg-Amertcan 6 pany, for fifty-two trips co Southampton, &0, ‘e3- timasing fourth quarter at $20,000)......... 103,839 The Inman line, tor tifty-two trips from New York to Queensiown.. seceseeeereccs Th 503 The Canadian ine, for Afty-two trips to Liverpooi... toes seseessscecesees 6,750 The Baitimore and Liverpool sSteamsnip Company, for three trips from Baitimere €O LAVOFPOO]..eocceeseceerercecveceveneseves “4 aaMoking 9 total Of.....0..20c.esesseeneeeee 6 8000,207 Tue cost of the United States transatlantic mail ateamsnip service for the fiscal year 1867 was $551,533; and for tho year 1858, $421,774—1ue reduced races of sea postage estaclished oy the present postul cou- vention with Great Britain having beon iu operation duriog the last six mouchs of the year 1843. ‘Lhe United States poscages on the mails conveyed to and from toe Wes: Indies amounted to $33,954, and the compensation paid tor their trausporiation Was $69,862, Taere was also paid to the owners of steamships conveying mails to and from Central Amertoa, Mex- ico, Nova Scotia, &c., under the provisions of the general iaw limiting tue compensation to the post- ages, the suai Of $12,272, making an aggregate ex- penditare for ocean mail transportation under tho general law of $418,341. Aone the special appro- Priations for the mail steamsuip service to Japan and Caina, to Brazil, and to the Hawauan Islands, waloh amount to $125,000, the total cost of to United States ocean mail service for the year 1869 was $1,143,341, The tabular statements tn tue ap- pendix furnish detalied information of the opera- tions of the foreign mail service during the year. Eleven round trips were performed during the year by the steamers of tho Japan and Ohuina line, the regular monthiy service required vy jaw i: been commenced in the moath of August, 1363, subsequently maintained witaout interruption. attention ot Congress was called by my predecessor, in o18 last annual report, to tte expeaiency of pro- viding for an increase of service On this line on the completo of the Pacific Kaiway across our conti- nent, ‘This grest na-ional highway has been opensd during the last yearto the Pacific Ucean, piacing San Francisco 1n direct, speedy and certaia commu- nication by rail with the Commercial cities of tue At- lantio (seaboard; and the period is not distant wuen our rapidly increasing commerce with Japan and Caina will require the emp.oyment of additional steamers on tai3 route. Tae question of providing for an increase of mail service to semt-monthly, on such terms as Will, under the circumstances, be just, as well to tho coatraciors #3 to the government, 19 respectfully sudmicied to the discreuoa of Vougreas, ‘rhe necessity of some legislation to eacouraze tae re-estao.ishmeat of Amevicau lines of trausauaniio steamers 1s apparent trom tae fact that, ol tue many lines of steamsaips now profiiaoly employed iu tue carrying trade between taois country and Europe, there 1s not one steamer bearing tue American flag. lt 19 humiliating to our National prive to fad out only thas our vass commerce with Europe is mou0- polled by foreign steamship Lines, Dut tuat even the mails we send abroad bave to be transported under the protection of foreign goverameats. ‘he experience of the last few years clearly de- monstrates that saillag vesseis can no longer suc. cessiuliy com pece in the carrying trade of the worid with vessels propelied by steura. Tiis fact admitted, it follows that some legislation 1s required to en- courage American ocean steam navigation, and to revive the great Maritime interests of the country. ‘Lhe subject occupied the atvention of Vongress at the last seasion; but the muitipliciiy of steamship projects presented and the rivairy of opposing tu- leresta seeking government aid prevented any ap- propriate action. Propositions have been made to this department by parties represented as responsibie and experi- nce 1 1 ocean steam navigatiun to contract for tho conveyance of the United Statea wails to uropean poris by American staamsuips of tue orst class and of equal speed to the fastest steamers now carrying the mails, at @ compensation limited to tue amount of sea postages, upon condition that the department should bind itself jor a long term of years, subject to the approval of Congress; and some nave otfered in tuis Conuection to ix the rats of sea postage at two cents per haif ounce. But, as the general law relating to contracts lor carrying the mails on tue 8288 expressly limits the autuoricy of tho department toa term not exceeding two years, | have deciined ail proposals to contract for a longer time, not de- ‘lug 1n @ay manuer to forestall the action of Cou- gress upon & subject Of SO MUCH 1Mportance, lf 1% be possivie, I shoud greatly prefer such legislation by Congress as would so far revive and encourage our own shipbuilding interesis as to enable American builders and mechanica to enter into active competition in the construcuon and equipment of steam vessels with the builders and meonanics of other countries. Il, however, it shouid be decided that this cannot ve done, then I would reapec.tully suggest the propriety of so modifying our vavigativu laws as to authorize the issuing of American registers to such foreign built steamers as may be purchased and employed by citizens of the Untied states under contracts with Ce pind amet e in tho transporiation of our foreign mails, Shoald oither of these recommendations ve adopt- ed, and authority given to the Postmaster General to contract for the conveyance of muils by #63 for a term of ten or fitteen years, at @ compensation not to exceed the ocean postages, it is believed that lines of first class American steamers would be speedily estaolished for the conveyance of our mails and freights across the Atlantic, aud that tuerevy great benefits would inure to the commercial and other luterests of the United States. An additional article to our postal conventions with Switzerland and italy, reapeciively, has vee ex- ecuted, which medifies the ruie of accounting on w paid and inauilicientiy prepaid correspondence ex- changed in the mails with each of those countries, Copies thereof are annexed. ‘The esforts of this uepartment to conciude a postal convention with Brazil, regulating the reciprocal exchange of correspondence with that cinpire by meaus of the subsidized line of mali steamships plying between New York and Rio Janeiro, have nut oen attended with the success anticipated. A mod- ified projet of articles has recently been submitted by this department, through the Departmens of State, which it 1s hoped will be accepied by the government of brazil. ‘The present postal convention petween the Onited States and France was conciuded on March 2, 1857, It establishes a combined rave of taternational post- age at iifteen cents per quarter ounce, equal to thirty cents per half ounce, a higher rate than is charged upon Correspondence between the United States and any other civilized nation with which we are in direct communication. It is incomplete in that it makes no provision for the exchange of maliabie other than letters. It adopts an exceptional sta ard weight of one-quarter ounce for the single rate of letters, differing from the uniform standard of one-half ounce established with ail other countries, The postage charge for letters is exorbitantly bigh, compared With the cheaper rates recentiy adopted wits all countries of Europe. In ite details aud practical operation it # very unequal, giving unfair advantages to the French post departinent, aud fails utteriy to moet the advancod opinions of the times in regard to international postal intercourse, and to afford the public benefits that postal conventions are intended to secure. The apparent unwillingness of the French post department to modify the provisions of the present convention in conformity with the more liberal prin- Ciples alopted in our postal intercourse with otner countries of Europe induced my predecessor, on the 8th of January, 1868, to give the required notice to terminate that convention on the ist of February, 1869, and at the same time to request the French post department to send an agent to Washington suthorized to enter upon the negotiation of a new convention. This invitation was deciined by the French aditnistration, Afterwards, on the appli cation of the French oMce, the duration of the con- vention Was projonged until the Ist of April, 1809, Soon after assuming charge of the department I learned that no progress had been made in adjuat- ing tue basis of. new convention, and that unlces a recond extension could be had the subsisting con- vention would expire before any further action could be taken for its reformation. Impelied by an earnest desire to maintain our direct postal relations with France on an improved basis of liberal tually advantageous to the pnbiic of both countri 1 proposed to tue French office, under date of 10th arch, to farther prolong the duration of the pre- sent convention unui January 1, 1470, A letter from the French Director General of Posts, dated March 3, Making the same proposition, crossed my own transit, a was received at tits depart ment on the idth of the same month, A second extension having been thus effected, I im- mediately reopened negotiations. Being fully satia- fled from an exchange of letters that there was no prospect of harmonizing the conflicting views and propositions of the two departments through the ordinary medium of epistolary correspondence, I decided to make another effort to adjust the points of disagreement by direct personal negotiations at Paris. I very tortunately bad it in my power to avail myself of the services of Hon. Alexander Ramsey, chairman of the Senate Committee on Post Ome nd Post Roads, who at my solicitation consen to undertake these difficult negotiations. He was | accordingly designated ® special comutasionor oa behalf of this departments to negotiate with tho general Post ONoe at Paris the basis of @ new postal convention with Franco. isn rE bere od J on the 234 yay, and immedia en! upon tue importan Guties intrusted to him. Since that date several proposais and oounter y submitted end considered, personal inter views had with the Frenen Director Geu- eral of Posts and the Minister of Fiuvance for mutual interchange of opinions and explanations, and yet no progress has been made towards the conclusion of & new convention, on sooount of tae Peace ge adnerence of the Frenca postal adminis. ration tO impossible propositions aud condl- tions, so flliberal and unjast toward the United States that considerations of national self-respect would alone forbid their acceptance by this depart- ment, The negotiations of Governor Ramsey at Paris, whica have been conducted with great ability, pa- tience and perseverance on his part, nave, [ regres to state, been terminated, after thres months? eiforts, without any reasonable hope of an agreement on che leauing provisions of the proposed new arrange- mens; and It seoms probable, therefore, that our direct postal relations with krance Wil cease on tue 1st January next, Passing witbous Comment other unreasonable and illiberat propositions, the io\lowing may be meu- tioned as among tne impossible conditions persist- ently insisted upon by the Frepeh post depart- ment:— First,—That France shall have a double share of the interior rates of postage—a demand #0 extraor- dinary and 80 mauifestiy unjust as to require no argument to demoustraie its infairness, in view of the weil known tac: that the expense of our interior service is not on'y greater than that of France, but ita extent vastly larger, embraclag a territory (ox- beg pe of Alaska) fourteeu times greater than that of France, _ Second—That the Unite d States shall establish a line of mail packels petween New York aad Brest for the performunce of @ regular semi-monthly ser- vice similar to the service performed by tue subdsl- dized line of Frenca packets Oovween tucse ports, or else pay tae entire expense of the sea and British iniand traasporiation of ail mails couveyed by way of Bugiand, wh.ch constitue at present moro tuaa four-iiths of the entire Ourrespoudenve exchanged with France. A postai convention has been concluded with Great Britain, establishing a reciprocal exousnge of correspondeace between the United States and the colony of British Houduras, @ dopy of which is an- uexed, ‘The provisions of our postal convention with tne colony oi Liong Kong have been extendea wo book paccets, sudject to the same Conditions as nows}a- pers and prices current, and to the regulations yov- erning the transmission of book pacseis oe.ween tua country anu the United Kingdom, Negotiations have aiso been opened with tne British post department for @ furtier reduction of tne international letter tage between tue United states and Great ‘tam. The existing postal convention with Great Britain, which went into operation on tne ist of Jan- uary, 1868, @stabushed @ reduced international lester rate Of sixpenco (twelve cents), aud provided that the question of s further reduction should be considered a$ the expiration of twoive months from that date. Agreeing with the very gon- eral expression of opinion on both sides of tle At lantio in favor of the esiablishment ef ocean penny postage between the two countries, I made & pro- osal, under date of 8th Votover last, to the Geueral Post Office in London, to further reduce the posiage on letters tu three peuce (six Cents) on the 1st Jan- uary, 1870, of which oue penny (two ceuts) should vo the sea postage, and one penny (two cents) whe inland postage of each country. Intellizeuce bas late, been communicated by sue Briiish Minister, throug! the Department of Stave, of the readiness of tue British government to reduce the ele rate of pos- tage ior prepaid letters to thesum above mentioned, It may, therefore, be safely announced that this tin- orwmas Measure, so long and so earnestly desired yy the people of thé United States and tie United Kingdom, a8 a@ means of furtner promoting their mutual prosperity and happiness, has been vartually accompished, The contrast between the policies of tha postal administrations of Great Britain and France 19 moat striking. Considering the pro bapilities of tne future, 1 cannot refrain from an ex- ression, on the one hand, of my great satisfaction hat on the 1st of January next the people of the United States and Great Britain wiil be enabied wo enjoy more cordial and intimate relations by means Of their enlarged postal 1aciiities, aud, on the ovber, of my profound regret thas on the samo day all direct postal communication between the United States aud France will cease, because of tie unwii- lingness of the later to unite in any arrangement that will afford equal facilities and reciprovai advaa- tayes to ooth coaracting partied, and at the same tune keep pace with the liverai sentinents of the day tn relation to postal intercourse betweeu eaterpris- ing and eulightenod nations. APPOINTMENTS. The report of the appolmtment ofice shows the foliowiag:— Number oi post offices established during the JOA. s+. 0sserensserve Number discontinued... Tncrease.......+-...+ sees 625 Number ia operation on June 30, 1863. 26,451 Number in operation on June 30, 1569. 106 Number of oitices to be dlled by appointments Of the Presidevt...... ceeeereseseeeersecscere Numoer to be filed by appointments of tue Postmaster General... seeeseeeverees Appointments were made during the year. On resignations. Va remov: On changes On deaths of postinusters. On estadlisumens of new 0: Tota: appointments Number of cases ac! Dp x The number and aggregate compensation of special agents, rouie agents, mull route messengers, postal raliway cCierks, local agents and baygago niasters in service during tue your ended June 30, 1569, were Foriy-eight special agents........ Five hundred and three route azeats. Seventy-four mail route mossengers, s Three huudred and twenty four postal rail- WAY CIETKB..0. 0. ..00 00 Sixty-seven local agents os One hundred and sixty-one baggage mas- WOTB cee cenereceeeeeeeeeererenseeeweeeerees. 9,680 WAtAS: caaros doniissieedsscs onthe svanannnes rep LON I Fall paruculara of the operations of tue appoiat- Ment Ollive are exhibited in the appendix. FRER DELIVERY. The free delivery system has been in operation during the year 1a forty-eight of the principal citica, with the following aggiegate resulis Number of letter carriers 1,246 Mail letters deiivered. 80,071,062 Local letters delivered. 15,380,627 Newspapers delivered 21,954,898 Letters collected... «+ 89,836,009 Amount paid carriers, including inciden- tal expenses... = $1,193,915 Postage on looal matiel 696,167 ‘This shows an increase over last year of— Lettor carriers. . 4s Mail letters delivered 15,730,568 Local lettera delivered . 4,298,721 Newspapers delivered.... 6.044,183 Lettera collected: oe ++ 26,720,584 Amount paid carriers, including inoideatal expenses.... sees seeeee §157,980 Postages on Joval matter. 190,185 The free delivery system, though replay. improv- ing, has not attained such a degree of efficiency as to command the aniversal confidence of the pubic, Much can yet be done to promote the celerity and precision of the collection and delivery of mail matter, and thereby commend it to popular favor. For some time to come the attention of the depart- ment should be directed to ttainment of more thorough organization and more satisfactory results in the cities wherein tae system has already been established, rather than in seeking its furtuer exten- gion. The number domestic and foreign, DBAD LPTPERS. 7 the soveral classes of letters, Fecetved atthe dead letter oMice during the last fiscal year was as follow: Domestic letters, cinssed aa— » 2,887,472 150,000 Unmailable. Hotei Fictitious. Registered.... Returned from foretga countries...... Total domestic letters 3,759,676 Foreign letters...., 193,186 Whole number..... 3,962,862 Of domestic letters 18,227 contained money amounting to $94,710, In sums of one dollar and up- wards. Of these 16,157, containing $82,570, were delivered to the writers or persons addressed, and 2,040, contal $12,140, wore filed for reclamation by the owners or were outstanding. The number inclosing summa less than One doliar Was 14,323, CoD taining $3,472, of which 11,566, containing $2,789, were delivered to the writers, and 2,757, containing $684, were flied for reclamation by the owners. The number of ietters containing bank cnecks, Aratts, deeds, &c., was 16,925, of the nominal value of $3,011,984, of which 15,256, of the nominal value Of $2,709,114 were delivered to the owners, and 1,639, of the nominal vaiue of 2,240, were outstanding or were flied for reclamation. Tho number of letters aad packages containing Jewelry, books and other Piney was 9,071, of Which 6,337 were delivered and 2,734 were filed for re- clamation, The number containing fo dattet was postage stamps and articies of smal) value was 414,185, of which 103,529 were delivered and 10,606 were fled for reclamation or destroyed, ‘The number of letters classed as ordinary domos- tic, without enclosures, remailed to the writers, was 2,998,252, of which 2,003,624 Were delivered and 804,728 were returned to the oMce and destroyed, Tue number of jettera not signed by the writers, Hlegible or containing circulars, &¢., and couse- quently destroyed, was Lt Of the uumailable ietters 246,307 were detained for Postage, not Lass! prepaid, aa required by law. hey were either wholly unpaid, not prepaid one fuil Tate or wore stamped with 1 or revenue Biamps; 70,429 were misdirected, the Post Ofiice, State or some poy of the address being omitted; 2,678 had no addrese whatever and 2,570 Wore addressed to piages where there Was no mall service, ‘The number of applications for dead letters was 763, and in 1,266 cases the letters wore fouud and ‘ded to their owners, The amounts deposited in the treasury wero:— For unclaimed dead letter money. $14,685 For proceeds of sales of waste paper. + 2,067 Total 16,062 serene NEW YORK HERALD. MONDAY, DECEMBER 6, 1869.-TRIPLE SHEET. The largely tncreased ase of stamped envelopes Dearing “return requests,” that 1s, roquosts that they de returned to the writers after a stated num- ber of days, has operated to decrease in & jer able dogree the number of doad letters. While tie number gnd value of money letiers received are sbout the same as of those of ite preceding year, the poreentage of decrease in leiters containlag other valuables ranged as followa:— pity r Letters containing bills of exchange, drafts, checks, deeds and o:her valuabie papers.. 19.85 Letters containing jewelry and other prop- ase Leiters postage atamps, DI 9.66 Ord letters wit 11.92 Ordinary letters and circulars destroyed.... 74.14 These Ngures demonstrate conclusively tne great utility of the “return request” sysiem. If generaily used, the foros now empioyed in the dead letter oilice could be largeiy reduced, tf not altogether dis- pensed with, The department would thus be revved from @ vory heavy expense, while at the samo time the vexatiun and loss lo correspondents caused by the delay and uncertatnty ioident to che presout syate:n wouid ba almost entirely ooviated. At first & was required that there suould be a formal requeat prinwd or writvea oa the envelope for the return of the letter to the writer, if unclaimed. For the greater convenience of the puolic, it is now provided by law tuatany writer of @ letter on whica the postage 18 prepaid rt sooure @ return thereof, without additional alter remaining unow/led for thirty days, by mer endorsing bis name aud address thereon. This ap- peering to be the simplest expedient tha: can bo devised, compatible with safety aud accuracy, the departmoeut urges 1s universal adoption. with a cau- toa, however, thatevery writer should endorse us own udd7e3s, and not trust to the business card of a hotel or frm wih which he is not connected. Let- tora returaed to one address cannot ve remailed, even if tho residence oftue writer be Known, With- Oub addidonal postaze, POSTAL MONEY ORDER SYSTEM. The whole number of money order post offices in operation during the last fiscal year was 1,463, Two Of tuese, Roxbury, Mass., aud Fort Leavenworth, Kan. were discontinued, ctrcumstances having rendered them upucoossary; aud 219 Dew money order oillces Were establianed July 12, 1s6J, Making toe proseut whole number 1,635. The eT ae hae during we your was 1,264,143, Of the aggcegal Value Of......+ seneeeeenee es eG 24,848,058 Tho number pat w: 4, amouutiog ta eee + S24, 447,376 To which shouid bo added tne amount of orders repaia to purchasers + 906,746 ———_ 4,654,128 Excess of issues over payments......... $193,035 The amount received by postmasvers as feos ror the issue of orders was $176,190. During the pre- vious fiscal year, ended June 30, 1863, the aggregate S@nount of Orders issued was $16,197,858; Of ordera paid and repaid, $16,118,537, and of fees, $124,437. it appears upon comparison of these sums with the corresponding transactions of the last fiscal Year, as avove stated, thas there has been an increase over tne year 1848 Of $8,650,200, or of 63 2-5 per cent, 1n the amount of issues; Of $8,535,686, or of 53 per H cens, in amount of payments, and of $51,703, or of 41} per cent, in the a@mount of fees received. The smaller peroent- age of inorease in the fecs, as compared with the issues, isto be attributed to the fact tnat by the act of July 27, 1863, the fees for issuinz money orders were diminished. Before that time the fee for an order not exceeding twenty dollars was toa nd for an order exceeding tweaty dollars ta; but by the act last mentioned the fee for an order for one dollar or any sum not ex- ceeding twenty dollars was fixed at ten cents; for an order exceeding twonty dollars and not exceed- Ing tuirty dollars, at Diveon cents; for an order ex- ceeding thirty dollars and not exceeding forty dol- lars, as twenty cents, and for an order exceeding forty dollars, at twenty-five cents. No change was made tn the Maximum amount for which an order can be issued, which 1s limited to fifty doliars. Tae average amount of the money orders issued during the last wus $19; during tae year 1808 it was $19, and during the year 1807 it was $l9—showing that there baa been bus a slight variation io tus amouut for tne last three years. The tendency of capital towarda the centres of trade aud commerce is well tllustrated by the Overa- tions of the money order syste. The smaller oifices almost invariably issue more orders than they pay, white at the larger oney the payments largely exoeed the Issacs. Upon @ comparison of the money order business in the new States with that of the older States a like condition of things will be foand to exist. For example:—In Califoraia, which has fifty-one money order oitices, the number of money orders issued was 30,335, amouutiug to $1,034,780; the Dumber paid was 8,688, amounting to $345,674, Lo Massachusetts, whica has fifty-four ofices, the nuiber of orders issued was 45,927, of she aggrega(e amount of $963,539; the number patd Was 142,546, atnuuuting to $2,270,907. In the city of New York the payments during. the yoar were $3,' 02,805, While the issues were Dut $513,200. Toe whvie number of dupitcate orders for the fiscal y' $69 Wad 6,530. Of these 5,461 were issued to replace originais lost in the mails or ovuerwise- fifty-six were in lieu of orders readered tavalid be- cause not presented for payment until more than one your after date, and thirteeu were in lieu of orders made invaiid by More than oae endorsement, During tue previous year 3,573 dupiicates were issued. There has been, therefore, an increase dur- ing the last year of 1,057, or nearly forty-three per ceui, 1a the number of duplicates, waich is, however, ten per cent iess than tue ratio of increase in the orders 1s3ued. The receipts and expenditures during the last fiscal year, a3 adjusted and reportod by the Auditor, Were as (o.lows, ViZ.:— Fees recet\ou for money orders issued......$176,190 Amount received fur premium ou drafis.... 58 Total...... Aeeeee seeeeeeeeees see ee $176,247 Comunissions to postmasters and al- lowances for clerk hire... + $101,062 Allowances for remittan ny transmission oy mat + 6,797 Incidental expenses y gad fixtures vee 8,834 — 110,694 Hxcess of receipts over expendi. —- tures, being the amount of proiit to tue departuwent trom mouey order business. . Peererrre terry 65,553 The sum of $16,392,818, being surplus funds which had accumulated at the smailer oifiees in excess of what was required to moet payments, was trans- mitted, by meaus of either national bank draits or registered. packages, to first class offices used as de- Positories, The loas by registered packages durin, tue year amounted to $3,186, of Which the sum of $532 was aliowed, before the end of tuo year, to post- mnasters wio had remitted the same; the sum of $323 was allowed a(ter the close of tne year, and is not, thereiore, inciuded in tho present aauual statement of expenditures, but will be entered in the next re- port; and tue maining sum Of $1,831 is covered by claims still pending. Tne total of allowances made during the year for lost remittan Was $5,797, out of this the sum of $5,294 Was on account of five lost remittances sent by the postmaster of Austin, Texas, to the postmaster at New Orleans, La, in the first quarter of 1868, which were stolen in the office of wu ae: credit for which waa not allowed to amb Postmaster uutil after the commence- me! oe tne last fiscal year. Henco this allowance coustitutes @ part of tue expenditures of the year 186), and is included in the avove statement tuereol. Jn the trausmission of these surplus fuaas in regis- tered packages by mail tuo department, in consid- eration of the fees received froin the sale of orders, assumes the risk of loss, Such losses, nowever, Tarely ocour im any but sparsely settled localities, that havo not yet entirely recovered from the eifects of vi lence and disorder during tue rebellion, During the year payment of six money orders was obtained srauduiently by forgery of the payee’s sig- nature or by means of iaise pretenses. In four ot these cases the amount of tue order was refunded to the remitvor by the issu ng postmaster, in compll- ance with insiructions from the department. In Pi der was directed to pay & like sum to the true eyes. In the remaintpg case the person who im- properly obtained paymeat of the order was com- pelled to pay over tue amount thereot to the rightful owner. ‘The transfers made by postmasters from the post- age to the money order account, for the put of mecting orders dee i! for i a amounted to $1,826,077, and toe trensfers from ihe money order to the postage account to $1,461,078, leaving at the ciose Of the year @ balance in favor of tue latter accouus of $135,001, Icannot better illustrate the great success and rapid extension of the domestic mouey order system than by ® presentation of its operations from its estabiishment on the Istof Novembor, 1394, to the gy time, @ summary of which is contained in he following tabie:— 1868, as No.of mo'y order oj. fees... Miyata) asa) naa), 4e Ian $1,t60,114| 3,977,260] 9.209, au7| 16,197 38 24,844,008 Paymente..| -1,518)577| 8,008,800] 9{071,240| 16,118,887 |94,604; 128 Revs from 11,693| 5,505] 70,890] 14.609) 176,247 Imaal aioe] adn] TU] 10,604 64108] 60. The great and constant increase, from year to year, In the transactions of the mouey order system Clearly indicates its utility as @ saie, convenient and expeditious mode of making sinall remittances, and shows that lt issteadily increasing in favorgwith the public’ as practical experience demonstrates its a vantages. [ regard it as thoroughly established, an Tecominend ite universal use by the peopie wherever practicable. With a view to ita (further emctency I respectfully recommend additional logisiation to authorize iis extension to the stations, or sub-post offices, In the large cities, This cannot be done at present, because the postmaster, who bas the control and supervision Of subordinate stations, ia not empowered by law to tsane money orders payable by himself or by his ote, In the opinion of the department, the catablishment of the money order business at stations Would be ® substantial advantage, as Well a8 @ groat convenience, to residents in their vicinity, They would thus be enabled to purchase orders aud recotve payments without Sean compelled to resort to the wain omce, They would furthermore be furnished with # convenient and secure mode of transmitung sm money from one part of the at wo Srrangement would not only tend tq exclu from local lettera bat would fackiitare tu tion of business at tue main OM, by reileving fone extent of & constantly in/easing crowd of Picante for the purouage OF payment of orders, = it to ti en a has been for years in sucodseful ion tn the large cities of other conntries ad there appears (0 be no valid reason aganast its atepduction here, Detatiod regulations for the exesution of the con- Vention of October 12, 1867, for a exchange or posval orders betwoon the United States and Swit #eriand were finaliy agreed upon and st Washingtoo July 2. 1869, by tho Postmaster General, under tue autuority given by the act of July 27, 1868, and at Berao on tho 26th of July, 1869, vy the chief of the federal post department of Switzerland, This Orst attempt to establish an international money order system by this department was put invo opera:ion, by mutual agreement, on tne 1st of September, 1569, and, novwithstandiag frequent and considerable Mucvaavioss in the value of currency, it has been conducted without dtiiculty, and thus far has worked suiisfactoriiy in all ite details. ‘I'he number of offices at present authorized to issue orders for sums to be remitted to Switzerland, and to pay orders for sums remitied from that country, is 150, The amount of orders remitted from this country to Switzerland from tue 1st of September to the 16th of October was $2,619, gold value, equiva- lent to $3,515 in our currency at the time of trans mission; @nd the auount of orders sent during the same tine to the Untied States was $3,191 in gold, or $4200 in currency. A cupy of the convention, with tho desatied regulations, and of the ‘nstrac- tions relative to tie International system’? issued to postmasters by thus departmout, will be found in the appendix, MISORLLANEOUS, When I accepted at your ands the position of Poatiaster Genecal, | propuunded to myself two questions:—How cai tue posiai service of the Coun- wy be made most eiicicné? andl, Low Can it be re- lieved from the heavy dedciencies annually obarged against it? Kuowing it 40 ba your desire that Whe department should be restored to a se f-sustatoing condition a3 rapidly ag a faicolul discharge of 1s duties woud permit I bave diligoutiy sought tae true answers to the above questions. As lar as I’ in wy power, during my short administration, have reuuced the expenditures and increased the revenues of the department; but, nobwisnsiandia, my eiorts, [found imyseil, at the ead o! the iso: year, comtronted wita a dedoit of $6,554,62). Thought tis amount 1a leas than tue deticis provided for by Q@ppropriauous If 18 yes large enough vo suimuiate me tO Inquire careiully into the Causes Of such enormous arrears, ‘he principal causes operating to prevent the de- Partineut frou becoming seli-sustauing are three, Wwit:— Fira'—Tne depreciation of the paper currency. Second— Unpaid postages on priuted matior, Third—Vhe irauking privilege, ‘The first of these is temporary, and will in a shore time, it is hoped, cease to operate. While it con- Unues, however, It greatly affeots the proportion be- tween tue receipts aud expenditures of tae depart ment ‘The truvi of this will be aumitied when 1b is stated tat tue postages are tixed by law Bud remaim tie sme nominally, no maser what may be the fuctuauous in the value of the currency; while, on the otner hand, ail contracts wade by the department, except tuose ior Tauroad bri ‘tation, ure based on curreus races, Whatever tuey may be, Hence, when pa; cur reucy is depreciated the postages are juced in eiieos by tue exact amount of the depreciation, 60 Uhaé When gold ws quoted at 143), the singie rate of lever postaye 1a no longer toree cents, bus, in reality, only two aud @ quarter cents, Again, tue departiuent ts defrauded outof a large amount of postage on newspapers by parties who, wuulo professing to be sending out payers from known Oiliccs of publication to regular wad bona Ade subscribers, are, 10 tact, loading the mads with ‘spe- cimeu” papers anu mere busiuess circulars, disguised in tne forum or mewspapers. ‘ne act of Maro 3, 1503, and tue regulaious made in pursuance thereof require that all such matter, u swora burough tie malliug oitice, suall ve sent to tne oilice of deilvery, aud that’ the posiages, wheshor charged as uewspaper rates or at lester rates by way ol fine for iraud, shall be collesied by the oiies of delivery. if mos paid for and delivered i otten happens that no otuer disposition of this mauer oan be made than to retura it to the mailing o1ice for the prosecution of the offender. The douvie transit thus enoouraged ts fequenuy attenued wita no resulé, except tuat vhe mater is lefé in the ofice aud ultimately sold for waste paper. For this mischief there is but one adeyuute remedy, and that ig to require prepaywent on ail printed matter, A due regard to the convenience of tue publishers of newspapers would require that postage oa newspapers saouid be charged according to tue welgut of packages. To accomplish tus reform & Gunsideravio reduction on present raies uught be conveded vy the vepartinent. ‘to maxe the remedy of prepayinent coimpiete it woula bo necessary, furtuerimore, to conier ample power on postuusiers at mailing Ofices to open and inspect suspected packages Of newspapers ana to im; upoa them, UM iound tu be visated by fraud, tull letter postage, to be paid ipvariavly in advance, ‘Ths sUuMinary proceeding slouid not reileve tne oiender irom lability vw prosecution aud punish. meat by the imposition of Uke tive aiready provided by law. Tho ds St sre evils which doubtless ought to bo correctwd. It i possible, however, for tie de- par.neat co endure them and ye retaia a fair degree ot efiiciency, But the remaiaiag oause of compiatat has become iMivierabie and muss be removed if the department ts to be saved fom utter demorauzation, ‘The franking privilegs has xrowa to be an abuse 80 monstrous tat it now tureatens te vory life of the ae.vice. : Fechad approach the discussion of tho franking privliege. ‘rue first objeotion that presents itself is that tt is @ speci.l privilege grauced Lo @ favored Class at he expense of tas many, ‘Yo this it ls no sudiciens answer to say that it is exercised solely in the laterest of government. If the views already pro- senied are correct, governmeut bas no right to appropriate to itse.l, iu pact or 1a Whole, the beuclita O; @ trust the adiminisiration of which has beea come mitted to 16 for the advantage of others; and to show that I am not singular ia tuts opiuion Abutro- duce tas foliowing frou the admirable reporg dated Decoinver 8, 1859, of my disuuguisued prode cvssor, Hou, Judepl Lote There ts no more reason why the Post Ol\ce Dnpartment, through its contractors, should perform tals service (the oon: Yeyatice of gorernmont osrrespoadeaco) gratuitously for the gvverament than (here 18 that the siwamboats and railroad companies of the country should trausport ts roo; u sores without cumpensation, f and amount of writen or printed documents forwarded on behalf of ol my purpose as presen: i 0 maintain y the yeaeral proposition that whether the writen Aud printed matier be qreat or amail, if it be despatched Ia the name and in the taterest of Ul governineut end by its ‘agents accredited for the purposo, {should be charged with precixely the same rates of postage to which it wou have been subjectea had it been forwarded by private citizens. Tho franking privilege, aa accorded to various ouicers of the government, was, from thw beginuing, mod atill is, am Snomaly in the postal system, and iu direct conflict with the true theory of {us creation. Had this de Mean placed ae charge | upon the id were it essentially a poitiical instrumentaity property of tue nauon, i would be as in- uous for it to demand remuneration for ite ser, to the government as {t would be tor the army and ry to do 80; but this ts not at thes been tts actual or theoresical satus. Beyond 1 jcal authority in estab: lishing the department and its revisory powor over ite admin- {airation, the relations of the government to it are 4 those of ‘the private citizen. ‘Tals bas boon distinctly revog- nized in the several acts permanently appropriating bed per annum for tue transportation of “free mattor.” This is Dot, iu tue language or spirit of the act of 186, & provision Trea- made for jupport of the artinent from its owa reve: hues, but ia an appropriation fom the public treasury, wad fa, (nite ter: pectic componsation for the tranauilssion of the correspondence and documents counocted Administration of the gorerameat, At this point it may be asked, Is it not bottor for t! en eet that goverment should maxe deticiences, ratuer than simply pay its owa post- ages? ‘To this quesiton the answer should be an . emphatic negaitve. Lt 1s not better that government should continue to blindly pay all deticiences, Neo policy could be more unwise, both for itself and the department. 1t 18 uajust to government, because 16 thereby assumes to pay postages not only on its owa matter, but also on aii fraudulent majler that may im its name and under cover of the counterfelt franks of its oniciais be foisted into the mails, thus doubiing the necessary expenditure, It i# unjust to the depart- ment, because in so dealing with & government does not respond to its call as to the claim of a creditor who bas rendered importaut services, and who, in consideration thereof, ts entitled to demand & juat compensation, but rath its gates appealing in bis helplessness for chat This 1¢ @ great moral and polluical wrong. It Teduces the department to @ state of hopoless dependence, and destroys to a great exteut its usefuiness. 1t makes it the p. ckhorse of every other branch of the pubic service, and compels it to assume, Without @ question, whatever burdens may be laid upon ite back. Work as steadily and aa skilfully ag tiey may, the managers of the depart- ment koow that at the end of the year their accounts aust suow the Inevitavbie deficieney, Is this just? Wil this encourage activity Vigilance? With this promote economy and em ? When the departuient, with its forty theasand or more employes, Das labored to discharge every duty faith. tuily, carried its matis minety-oue muiluons of miles and disiribuied them aecording to order among forty millions of people, te accomplish tois bus fought every inch of ite way against frauds Which government itself nas lieemsed, it is at loast entiued to a respectful recogaiien ef its services, inswad of being consigaed to everlasting insol- vency. ‘Turning from a subject the eonsideration of which discourayes every man connected with the service, it may be added that there mover be an invelit- gent admiuistration ef sno tment until an rate knowledge be ov ed of its resources habilitues, its revenues and expenditures, ‘This is impossibie #o jong a3 tae Mankiag privilege shall be allowed to obstruct #0 maby of Re 1Mporiant ave- mation. a} po the “special priviloge” claimed for vernment. a ht much more can be said tm favor of extirpating this e The cowt of “frea matter’? has been in- creasing from year to year wntil at last it weigia down the department inte eontinuous insolvency. The tdaitioual expense to Which it subjects the ser- vice is counted by millions, walle there is provided to meot it only the standing apaual appropriation of $700,000, It ‘Was slated ten yoars ago that vo de partment actually expended, at that time, in tie erformance of the duties Whica the franking privie ge imposed, little, Mf any ting, snort of $4,400,000, Since that tine the expense has largely increased, nd [am convinced that 1 now exceeds the enor. mous sum Of $5,000,000, of Which about one-balf is paid on iraudulent matter, Tiiat this is not an exag- geration will appear from an examination of te woight of mi Washington © of January, ment. by t {ree let ters ty with we Matter sens and received at tie Post office from the 1itn to tho sist 1869, as oMcially reported to the depart. bis return it appears that the weignt of 1b Was 16,346 pound: ab Tree let. 16,006 po making for trea.