tion must be exercised to protect the Government from handling, at a great loss, publications which are in reality skillfully disguised advertising sheets or circulars.

The correspondence of this office, as compared with the past fiscal year, has increased more than 12 per cent.

When it is considered that every letter written in this division involves an examination to ascertain the exact bearing of the laws or regulations upon the particular 'question submitted, and the careful preparation of an answer that shall be in entire conformity with all other rulings which may have been sent to any other postmaster or private individual upon the same subject, some idea of the clerical labor performed may be had.

SALARY AND ALLOWANCE DIVISION.

The volume of postal business transacted by this division during the past year exceeds in many respects that for the previous year, though the increase of postal work for that year was unprecedented.

With a view of giving a succinct statement of the important duties assigned to this division the following summary has been prepared, viz:

DUTIES ASSIGNED TO THE SALARY AND ALLOWANCE DIVISION.

The most important duties of this division are the adjustment of the salaries of Presidential postmasters, or postmasters of the first, second, and third classes; the consideration of applications for allowances for clerk-hire, rent, fuel, light, furniture, miscellaneous and incidental expenditures; the examination of the quarterly returns or accounts of postmasters at offices of the first and second classes before they are finally passed by the Auditor of the Treasury for the Post-Office Department; the regulation of the salaries and duties of the employés necessary for the proper transaction of the postal business in the larger post-offices; the supervision and regulation of box-rent rates and deposits for keys for lock-boxes, and the management of the large correspondence incident to the transaction of the important duties as above stated.

The duties of this division have been largely increased by the act of Congress approved March 3, 1883, which requires an annual adjustment of the salaries of Presidential postmasters, to take effect at the beginning of each fiscal year, July 1, instead of a biennial adjustment as heretofore. The second annual adjustment of the salaries of Presidential postmasters was made upon the basis of the gross receipts accruing at the respective offices for the four quarters ended March 31, 1885.

In addition to the regular duties of the division, as herein before stated, the work of reviewing and readjusting the salaries of postmasters at offices of the third, fourth, and fifth classes under the act of Congress approved March 3, 1882, was assigned to it by verbal order of Postmaster General Gresham, April 7, 1884. This work, which is of considerable magnitude and importance, has been carried on under the personal supervision of the chief as rapidly as possible with the limited additional force of detailed clerks at command.

The various operations of the division within the past year have been tabulated as follows:

Tabulated statement of the operations of the salary and allowance division, for the fiscal year ended June 30, 1885.

Number of cases sent to Chief Post-Office Inspector for information

89

Number of fourth-class offices reported by the Auditor, where the annual compensation of the postmaster amounted to $1,000, exclusive of money-order commissions

44

Number of fourth-class offices assigned to the Presidential class

44

Number of special adjustments of postmasters' salaries.

Aggregate amount required to pay the salaries of postmasters at the above
Presidential offices (44) for one year

47, 000 00

82

Aggregate sum required to pay the above increased salaries for one year.
Number of postmasters' salaries reduced and discontinued

71, 000 00

134

Allowances for clerk-hire reduced and discontinued

Total amount required for salaries Presidential postmasters as above (2,233) for one year...

Number of third-class post-offices (salary of postmaster $1,000 to $1,900 a year)
Total number of Presidential post-offices June 30, 1885

Aggregate amount saved by salaries reduced and discontinued as above
Total number of salaries of postmasters adjusted during the year
Aggregate amount of salaries involved in the (2.435) adjustments as above..
Number of first-class post-offices (salary of postmaster $3,000 to $6,000 a year).
Number of second-class post-offices (salary of postmaster $2,000 to $2,900 a
year)..

139, 300 00

2,435

3,701, 600 00

71

383

1,779

2, 233

3,630, 600 00

720

Number of applications for readjustment of postmasters' salaries under act of March 3, 1883, received and placed on file

Number found below the 10 per cent. requirement of law

Total number allowed to date

32, 440

16, 521

10, 621

The number of letters received for the fiscal year ended June 30, 1885, amounted to 21,873; an increase of 4,036, or 22.6 per cent., as compared with 1884, and 16,975, or 346.6 per cent., more than the number received during the year 1880.

The number of letters written amounted to 28,332, an increase of 6,939, or 32.4 per cent. over 1884.

Twenty-four thousand nine hundred and forty-four circular letters were sent out, an increase of 3,716, or 17.5 per cent., over 1884.

The allowances made for clerk-hire were 3,352; a decrease of 565, or 14.4 per cent., as compared with 1884. This decrease was occasioned by the limited appropriation for clerks in post-offices.

The total number of applications for clerk hire declined was 1,688, an increase of 369, or 27.9 per cent., as compared with the year 1884. There were made 1,690 allowances for rent, fuel, and light; a decrease of 828, or 32.8 per cent., as compared with 1884.

Applications for allowances for rent, fuel, and light, to the number of 507 were declined, a decrease of 460, or 47.6 per cent., over 1884. The allowances for miscellaneous items made, numbered 4,709; and 1,356 applications for allowances for miscellaneous items were declined. As compared with the year 1884, this is a decrease of 257, and for the year 1883, a falling off of 1,145. This satisfactory exhibit is largely owing to the operation of the regulation requiring postmasters at the larger post offices to make application for each quarter in advance, for authority to make expenditures for miscellaneous purposes.

The allowances made for furniture numbered 578; and 595 applications for furniture were declined; a decrease of 184, or 23.6 per cent., as compared with 1884.

There were 50 applications for stationery declined These requests all related to amounts disallowed for stationery for the fiscal year ended June 30, 1883.

There were 232 allowances for advertising made the aggregate amount allowed being $10,314.87. One hundred and thirty applications for advertising were declined.

Only 44 post-offices of the fourth class were reported by the Auditor where the annual compensation of the postmaster amounted to $1,000 for four consecutive quarters, exclusive of money-order commissions. All of the said offices (44) were assigned to higher grades, the aggregate salaries of the postmasters thereat making a total of $47,000.

The special adjustments of postmasters' salaries numbered 82, involv ing an aggregate amount of $71,000 for salaries. There were 134 salaries of postmasters reduced and discontinued, making a saving of $139,300.

The total number of salaries of Presidential postmasters adjusted during the year amounted to 2,435; and the aggregate amount involved for salaries in all of the adjustments amounted to $3,701,600.

The allowances for clerk-hire reduced or discontinued during the year numbered 720, making a saving of $110,530. One hundred and ten allowances for rent, fuel, and light were reduced or discontinued, making a saving of $24,457.90.

The work of reviewing and readjusting the salaries of postmasters of the third, fourth, and fifth classes, under the act of Congress approved March 3, 1883, was assigned to this division by the Postmaster-General, April 7, 1884; and since that date 32,400 applications for review of sal aries under the said act have been received and placed on the files of the Department.

The number of applications reviewed and readjusted was 16,521; and 5,900 were allowed, involving the additional amount for compensation or back-pay of postmasters of $378,922.96. There were 10,621 applications reviewed and found to be below the 10 per cent. requirement of law.

The following tabulated statement showing the operations of this division for the fiscal years 1880, 1881, 1882, 1883, 1884, and 1885, and the increase of work since 1880, is submitted, viz:

Table showing volume of business transacted in the salary and allowance division, office of the First Assistant Postmaster-General, for the fiscal years ended June 30, 1880, 1881, 1882, 1883, 1884, and 1885, and increase of work since 1880.

ADJUSTMENT OF PRESIDENTIAL POSTMASTERS' SALARIES.

In compliance with the requirements of the act of Congress, approved March 3, 1883, making provision for annual instead of biennial adjustments as heretofore, the second annual adjustment of the salaries of Presidential postmasters or postmasters at offices of the first, second, and third classes was made upon the basis of the gross receipts which accrued at the respective offices for the four quarters ended March 31, 1885, to take effect July 1, 1885.

This adjustment was made upon the gross receipts for one year, or four quarters, upon the new or reduced rate of postage. The salaries of postmasters at 2,353 post-offices were reviewed; 71 offices were assigned to the first-class, 383 to the second class, and 1,765 to the third-class, from July 1, 1885. There were 14 new offices (all third-class) added to the Presidential list from July 1, 1885, making the total number of Presidential offices July 1, 1885, 2,233; 134 offices were relegated to the fourth-class from July 1, 1885.

The aggregate amount required to pay the salaries of Presidential postmasters was $3,630,600; and the grand total of gross receipts which accrued at the same offices for the four quarters ended March 31, 1885, amounted to $31,792,220.55. The aggregate salaries of the postmasters will absorb 11.42 per cent. of the revenue of the Presidential offices. The grand total of gross receipts which accurued at these offices for the four quarters ended March 31, 1885, is 75.36 per cent. of the revenue of the Department for the same period.

With a view of showing in a concise form a comparative statement of the adjustments of Presidential salaries made in accordance with the requirements of the act of Congress approved March 3, 1883, which took effect October 1, 1883, July 1, 1884, and July 1, 1885, the following tabulated statement has been prepared, viz:

Comparative statement of the adjustments of salaries of Presidential postmasters which took effect October 1, 1883, July 1, 1884, and July 1, 1885, in compliance with the requirements of the act of March 3, 1883.

A tabulated statement by States and Territories, showing the number of Presidential post-offices, the aggregate salaries of postmasters, and the aggregate receipts for the four quarters ended March 31, 1885, is also submitted.