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tion of enemies' vessels." This amount was distributed to all the captors. There remains to be appropriated by Congress the sum of $143,644.47. Forty-four vessels were admitted to share in this award, and the number of persons entitled to share is more than five thousand.

BOUNTY, ARREARS OF PAY, AND GENERAL CLAIMS DIVISION.

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Of the number of claims settled in this division, 824 were for the three months' extra pay authorized by the act of February 19, 1879, for services in the war with Mexico, and amount to the sum of $34,800.33 in the aggregate.

Complaint has been made in some instances, 'originating, no doubt, from a misapprehension of the facts, that the construction placed upon this law has, to a very great extent, defeated the intention of Congress. The act provides that the gratuity is to be paid subject to the limitations contained in the act of July 18, 1848. That law was passed for the exclusive benefit of persons who were employed in the military service during the Mexican war, and limited the payment to those who "served out their term of engagement, or have been or may be honorably discharged," and to the widows, children, &c., of those "who have been killed in battle, or who died in service, or who having been honorably discharged have since died, or may hereafter die, without receiving the three months' pay." The term honorably discharged, as used in the law, applied to the enlisted men, and to the volunteer officers of the army who received an honorable discharge when mustered out at the close of the war, or when their services were no longer required. It will be seen, therefore, that the "limitations" of the law of 1848 necessarily excluded those officers of the Navy and Marine Corps who resigned their positions or remained in the service, and also the heirs of those who resigned or died in the service after the 19th of July, 1848. A bill amending the act of February, 1879, is now before Congress, and if it should become a law it is presumed that all officers and men of the Navy and Marine Corps who were employed in the prosecution of the war with Mexico, and who have not been dishonorably dis charged, will become entitled to the gratuity.

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Date.

ARREARS of PENSION PAID Under Acts of January 25 and March 4, 1879.

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Accounts Accounts
received. settled.

Amount involved.

$54, 064 03

79, 016 02

30, 444 15

30

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Number of widow
pensioners and de-
pendent relatives.

Total number of

Navy pensioners.

at

Disbursements
each agency for
the year ending
June 30, 1880.

Boston, Mass
Columbus, Ohio..

Chicago, Ill.

Concord, N. H.

Detroit, Mich.

Knoxville, Tenu.

Louisville, KY
Milwaukee, Wis..
New York City
Pittsburgh, Pa
Philadelphia, Pa.

480

464

944

$168, 551 28

46

96

142

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24,922 23 29, 677 CO

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56, 994 90

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San Francisco, Cal..

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104, 139 20

8, 384 21

8,033 33

Washington, D. C

350

447

797

144, 041 63

Total

2,076

2,369

4,445

758, 916 48

Number of accounts on hand June 30, 1880, 9; vouchers examined, 14,075.

NAVY PENSION FUND.

At a very early period of the government Congress enacted that all money accruing to the United States from the sale of prizes shall be and remain forever a fund for the payment of pensions to the officers, seamen, and marines who may be entitled to receive the same. The aggregate amount of this fund now on deposit in the Treasury of the United States is $14,000,000, on which the government pays interest at the rate of 3 per cent., amounting to $420,000 a year. If the interest paid on this fund were 4 per cent., the lowest rate at which the government has yet sold any of its bonds, the amount realized would be $560,000, a sum sufficient to meet the annual pension claims.

Notwithstanding the sacredness of this fund, there are annually bills introduced into Congress designed to make inroads upon it, and to divert it from the righteous purpose to which it has been so justly appropriated. It is to be sincerely hoped that all such designs will fail, and that the principal shall remain intact, while the interest is annually devoted to the just and worthy purpose of compensating officers and men, their widows and children, who have so freely given their services to the government. Instead of dissipating this fund it ought, if possible, to be still more carefully guarded, and secured beyond all peradventure of loss or diminution.

I take pleasure in expressing my obligations to William B. Moore, the long-time faithful and efficient deputy auditor, to the chiefs of divisions, and to the clerks and employés generally, for their devoted and capable service and close attention to their respective duties. While there may be and probably is room for improvement in the condition of the public business committed to my charge, I am glad to believe and to report that it has been carefully attended to during the year, and so conducted as to merit your approval and commendation.

I have the honor to be, very respectfully, your obedient servant,
CHARLES BEARDSLEY,

Auditor.

Hon. JOHN SHERMAN,

Secretary of the Treasury.

REPORT OF THE FIFTH AUDITOR OF THE TREASURY.

TREASURY DEPARTMENT,

FIFTH AUDITOR'S OFFICE, Washington, D. C., November 1, 1880. SIR: I have the honor to submit herewith the operations of this office for the fiscal year ended June 30, 1880.

The adjustments required the examination of one hundred and eighty-six thousand seven hundred and seventy vouchers, amounting to eight hundred and six millions, five hundred and twenty-nine thou sand, seven hundred and ninety-five dollars and eighty-three cents ($806,529,795.83).

The several clerks engaged in the examination and adjustment of accounts, and keeping the records, and the copyists employed, have been

faithful and industrious, and have given great satisfaction by the manner their respective duties have been performed.

Hon. JOHN SHERMAN,

Secretary of the Treasury.

J. B. MANN,
Acting Auditor.

REPORT OF THE SIXTH AUDITOR OF THE TREASURY.

OFFICE OF THE AUDITOR

OF THE TREASURY FOR THE POST-OFFICE DepartmeNT, Washington, D. C., October 26, 1880.

SIR: I have the honor to submit the following report of the business operations of this office for the fiscal year ended June 30, 1880. My annual report to the Postmaster-General, now in course of preparation, will exhibit in detail the financial transactions of the Post-Office Department during the past fiscal year.*

NECESSITY FOR THE INCREASED APPROPRIATION FOR WHICH ESTIMATES HAVE BEEN SUBMITTED.

I have the honor to invite your attention to the large increase of business in this office over last fiscal year, as shown by the reports of the several chiefs of division, especially of the Money-Order Division.

The general average of the increase of work in the various divisions is as follows:

Examining Division, six per cent.

Registering Division, ten per cent.

Bookkeeping Division, thirteen per cent.

Stating Division, nine per cent.

Collecting Division, seven per cent.
Foreign Mail Division, eleven per cent.

Pay Division, ten per cent.

Money-Order Division, thirty-two per cent.

In my estimates for the service of this bureau for the fiscal year ending June 30, 1882, I have asked for an appropriation for fifteen additional clerks, and I refer to the foregoing statement as conclusive evidence of the necessity for that increase.

There was also submitted an estimate for one chief clerk, at $2,100 per annum, and, in support thereof, I have to offer the following reasons: The force now employed in this bureau is greater than that of any of the other bureaus of the Department, and the details of business prob ably more numerous. Much of the time of the Auditor and Deputy Auditor is occupied with routine office affairs which could very properly be disposed of by a chief clerk.

Under the present organization, no provision is made for filling the place of the Deputy Auditor during his absence or sickness, or that of

*NOTE.—A summary of the principal labors performed by the several divisions of this office will be found in the pamphlet copies of the Auditor's report.

the Auditor. The appointment of a chief clerk would supply an officer upon whom this duty could devolve.

By the last reorganization of the clerical force of this office, the position of principal clerk of the Law Division was abolished, and it is intended that the duties formerly discharged by that officer-namely, the preparation of cases for suit and the conduct of the correspondence arising therein-shall be performed by the chief clerk.

I have fixed the compensation at $2,100 for the reason that the duties and responsibilities proposed to be assigned to the chief clerk would, in my opinion, fully justify such a salary, and in order that the rank of the position may be superior to that of the chiefs of division, over whom he would be called to exercise authority.

This additional appropriation is earnestly recommended as much needed, and in the confident belief that it would materially facilitate the transaction of the business of the office and advance the public interest.

I am pleased to report, in conclusion, that the work of the bureau, in all its branches, is in excellent condition. The accounts of the PostOffice Department, numbering over four hundred thousand, and involving over two hundred million dollars, have been promptly settled, collections made, and liabilities paid, with a loss so slight as to be scarcely appre ciable. Never, since the organization of the government, have the accounts of the Post-Office Department been in so satisfactory a condition as at the present time.

To my efficient and faithful Deputy Auditor, Mr. F. B. Lilley, the chiefs of the various divisions, and to the conscientious and untiring efforts of the clerks and other employés of this office, I am indebted for this very favorable condition of the work, and I commend them all to your special favor and confidence.

I am, sir, very respectfully,

Hon. JOHN SHERMAN,

Secretary of the Treasury,

Washington, D. C.

J. M. MCGREW,

Auditor.

REPORT OF THE TREASURER OF THE UNITED STATES.

TREASURY OF THE UNITED STATES,
Washington, November 1, 1880.

SIR: The following statement of the transactions of this office and of the condition of the public business therein, during the fiscal year 1880, is respectfully submitted.

From the tables in the appendix the following facts appear:

The receipts of the government compare very favorably with those of the previous fiscal year, and show an increase from customs, internal revenue, and sales of public lands, of $59,811,505.78, and a decrease in those from miscellaneous sources of only $112,079.26. The expenditures show a slight increase of $695,074.25 in the aggregate as compared with the previous fiscal year, caused by an increase of $22,395,040.06 in the payments on account of the Interior Department, but show a decrease

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