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These figures place the saving for the present year at a minimum amount, since the actual issues are likely to be in excess of the estimates, and the real saving will be in proportion to the increased number called for. For postage-stamps, stamped envelopes, and postal cards, the contracts for which are for four years, the amounts saved will be largely augmented to correspond with the increased issues during the later years of the contract term. The new contracts will be dwelt upon at some length in my annual report, the preparation of which will be commenced at once.

The present great saving is the more conspicuous in view of the fact that it follows a steady and large reduction in cost during the past few years, the prices in the late contracts for adhesive postage-stamps and postal cards, and in the present contract for stamped envelopes and newspaper wrappers, having been considered very low when the contracts were made.

To show how great the past reductions had been, the total number of postage-stamps, stamped envelopes, newspaper wrappers, and postal cards issued during the year ended June 30, 1877, was 1,060,253,919, at a cost of $783,283.36, while the total number furnished during the year ended June 30, 1885, was 2,142,678,890, costing $946,925.39, an increase of 1,082,424,971, or 102 per cent., in the number of articles, and an increase of only $163,642.02, or 20.8 per cent., in cost.

The total number of postage-stamps, stamped envelopes, newspaper wrappers, postal cards, registered-package, tag, official, and dead-letter envelopes issued during the year ended June 30, 1877, was 1,075,564,619, at a cost of manufacture of $834,757.47. The total number of the various articles to be furnished during the year ending June 30, 1887, as contemplated by the foregoing estimates, is 2,476,103,852, at an estimated cost of manufacture of $956,000, being an increase of 1,400,539,233, or 130.2 per cent., in the number of articles, and an increase of cost of manufacture of only $121,242.53, or 14.5 per cent. The decrease is therefore a little more than one-half of the cost in the contracts of 1877 for like quantities.

The total appropriations for the service of this office for the year commencing July 1, 1877, amounted to $1,151,150, or 3.3 per cent. of the amount ($34,622,577.54) of the appropriations for the entire postal service for that year, while the estimates ($992,400) for this office for the fiscal year ending June 30, 1887, represent only 1.8 per cent. of the total amount ($54,986,166.89) estimated as the cost of conducting the postal service for the same period.

I have the honor to be, very respectfully, &c.,

Hon. WILLIAM F. VILAS,

A. D. HAZEN, Third Assistant Postmaster-General.

Postmaster-General.

No. 2.—Statement showing appropriations and expenditures for the year ended June 30, 1885.

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No. 3.-Statement exhibiting the receipts and expenditures, under appropriate heads, by quar

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Fines and penalties..

Postage-stamps, stamped envelopes, newspaper wrappers, and postal

cards..

Dead letters.

Revenue from money-order business

Miscellaneous

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Comparison, including revenue from money-order business:

Decrease of receipts from year ended June 30, 1884, $765,114.98, or 1.7 + per cent.

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Mail depredations, post-office inspectors, fees to United States marshals,

Compensation of railway postal clerks.

Compensation of mail messengers

Mail-locks and keys...

Mail-bags and catchers.

attorneys, clerks of court, and counsel.

Postage-stamps

Distribution of postage-stamps.

Stamped envelopes and newspaper wrappers.

Postal cards..

Distribution of postal cards

letter envelopes

Advertising

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Distribution of stamped envelopes and newspaper wrappers

Registered-package envelopes, locks and seals, and official and dead

Ship, steamboat, and way letters

Engraving, printing, and binding drafts and warrants

Miscellaneous, office of Postmaster-General.

Foreign mail transportation

Balances due foreign countries.

Miscellaneous, Second Assistant Postmaster-General

Miscellaneous, Third Assistant Postmaster-General.

Furniture, money order business

Raw-hide trunks, railway mail service.

Compensations of postmasters under readjustments.

12, 037, 430 71 12, 338, 702 23

188 82 78, 124 09

14.00 231 30 403 23

89, 834 69 17, 531 78

148 00 280 25

ters, for the fiscal year ended June 30, 1885, compared with fiscal year ended June 30, 1884.

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Comparison, excluding revenue from money-order business:

Decrease of receipts from year ended June 30, 1884, $666,724.47, or 1.5+per cent.

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Total expenditures for transportation of the mails for year ended June 30, 1885..$21, 479, 097 48 Total expenditures for transportation of the mails for year ended June 30, 1884.. 19, 542, 206 16

Increase for 1885...

1,936, 891 32 (or 9.9 per cent.)

Increase of expenditures over year ended June 30, 1884, $2,912,227.76, or 6.2+per cent.

A. D. HAZEN,
Third Assistant Postmaster-General.

No. 4.-Receipts and disbursements at Treasury depositories during the fiscal year ended June 30, 1885.

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