labor and expenses. The amount expended for salaries was $6,433.15 less than the appropriation, and the amount charged to the appropriation for labor and expenses was $176,352.22 less than the amount appropriated, making an aggregate saving in the appropriations of $182,785.37, which will be returned to the Treasury unused. Advantage was taken of the large unexpended balance to buy, at a post of $15,195.75, a number of steam-presses and other machinery of permanent value to the Bureau, and not properly chargeable as a part of the cost of the work turned out during the year. During the last month of the fiscal year there were printed internal-revenue stamps costing, at the established rates, not less than $17,000, for which the appropriations for the Bureau could not be reimbursed, on account of the exhaustion of the appropriation from which their cost should have been defrayed. If allowance were made for these two items, the saving in the appropriations made directly for the support of the Bureau would be $215,000. A large share of the saving is due to the decrease in the work done, but at least $125,000 may fairly be set down to the credit of the econo mies which have been made in the management of the Bureau.

APPROPRIATIONS AND ESTIMATES.

The estimates of the appropriations for the support of the Bureau for the current fiscal year provided for all of its expenses, in lieu of the former system under which more than half the amount spent was drawn from other appropriations. The estimates were divided under the four heads of "salaries," "compensation of employés," "plate printing," and "materials and miscellaneous expenses." Provision was made under the head of "salaries" for the officers, clerks, and others whose salaries are fixed by law; under the head of "plate printing," for the plate printers and their assistants; and under the head of "compensation of employés," for all of the rest of the employés. Appropriations were made in exact accordance with the estimates, except that the appropriation for compensation of employés, instead of fixing the number and wages of the persons to be employed, as the estimates provided, was made in a lump sum, retaining, so far as that part of the expenses is concerned, the defects of the old system of making appropriations. In submitting the estimates for the next fiscal year the estimate for the appropriation for compensation of employés has again been so framed as to fix the number and pay of the persons to be employed. This plan, if adopted, will place a limit which cannot be exceeded upon the number of persons who may be employed, and will prevent the expenditure of more than a proper proportional share of the appropriation during any part of the year. Annual salaries are estimated for, instead of the present daily wages. Provision for such salaries, on the one hand, will prevent the allowance of extra pay for "overtime," as required by the present system of daily wages reckoned on the basis of eight hours a day, and, on the other, will permit the granting of reasonable leaves of absence, with pay, to the employés, should the condition of the work warrant it.

The estimates for the expenses of this Bureau for the fiscal year 1888, as compared with the present fiscal year, are:

The increase of $106,640 is due to the increased quantity of engraving and printing which the various Departments and Bureaus of the Government estimate that they will require of this Bureau. The estimated number of sheets of securities of all kinds to be produced in 1888, is 35,992,794, as against 26,655,496 sheets delivered in 1886, and an estimated production of 29,532,550 during the current fiscal year. As compared with the estimates for 1887, the estimated increase in production is 214 per cent., while the increase in cost is only 133 per cent. The estimates of the appropriations to be made are based upon a careful calculation of the number and wages of the employés, and of the cost of the materials needed to produce the securities required. The only additional employés estimated for are those who will be actually and necessarily employed in the various processes connected with the engraving, printing, and finishing of securities. No provision is made for any additional superintendents, clerks, watchmen, or messengers. On the contrary, the number of some of these classes of employés is cut down below the estimates for the present fiscal year.

Plate printing being paid for by the piece, the estimate for this purpose is simply a matter of calculation based upon the number of sheets of securities to be printed. The increase in the estimate for this item conforms, therefore, to the increase in the work. The estimate for plate printing for 1888, as compared with that for 1887, shows an increase of $59,120, or more than 19 per cent., while the increase in the estimate for compensation of employés is only $24,640, or less than 8 per cent. For the first time in the recent history of the Bureau the amount of the wages of the employés, other than the plate printers and their assistants, is brought below the cost of plate printing. As compared with 1885, the expense for salaries and compensation of employés is reduced from $471,757.20 to $369,830, while the cost of plate printing, which is the index of the work done, is increased from $330,764.22 to $366,500. It is proposed to produce in 1888, 35,992,794 sheets of securities at a cost of $901,030. In 1883, when the work done approached most nearly to that to be done in 1888, 33,330,746 sheets were printed at a net cost of about $1,088,000. The estimated production for 1888 is, therefore, 2,660,000 sheets greater, and the estimated cost $187,000 less than in 1883.

THE FORCE EMPLOYED.

There has been a steady reduction in the force employed, month by month, since March 1, 1885. The number employed on that date was 1,145; on May 21, 1885, when the present Chief of the Bureau entered upon his duties, 1,040; on July 1, 1885, 912; on July 1, 1886, 839; and on October 1, 1886, 824. The latter number includes seven persons detailed for duty in the office of the Treasurer of the United States, so that the number actually employed in the Bureau on October 1, was 817, a reduction of 328 since March 1, 1885. This result has been accomplished only by taking advantage of every opportunity to simplify the methods of doing the work and to dispense with unnecessary employés. A special effort has been made to reduce the number of employés not directly connected with the printing or finishing of securities, like the clerks, messengers, and watchmen. As instances of what has been done in this direction, the annual expense of the force of watchmen and guides has been reduced from $33,590 to $16,790, or more than one-half, and of the clerks and messengers from $62,393 to $37,060.

From May 21, 1885, to October 1, 1886, a period of more than sixteen months, 41 persons have been taken into the service of this Bureau.

Of these 23 were operatives trained in the various processes, who were recalled from time to time as need for their services arose. Of the remaining 18, 3 were employed in the place of relatives whose health had broken down in the service, and 3 were transferred from the Treasury Department, leaving but 12 original appointments. This number is made up of 1 laborer, 1 binder, 2 charwomen, 3 engravers, and 5 printers' assistants. Under this policy the pressure for employment has greatly diminished.

The force now conforms very nearly to that estimated for, and it will be necessary to maintain it at about its present number in order to produce the work required of the Bureau. In consequence of the large demand for the new silver certificates and the increased orders for internal-revenue stamps of all kinds, and especially the oleomargarine stamps, for which no additional appropriation was made, this work now largely exceeds the expected production on which the estimates were based. It is not doubted, however, that by close management the Bureau will be able to meet all reasonable demands upon it during the remainder of the fiscal year.

I have the honor to be, with great respect, your obedient servant, EDWARD O. GRAVES,

Hon. DANIEL MANNING,

Chief of Bureau.

Secretary of the Treasury.

REPORT OF FIRST COMPTROLLER OF THE TREASURY.

TREASURY DEPARTMENT,

FIRST COMPTROLLER'S OFFICE,
Washington, D. C., October 1, 1886.

SIR: In compliance with the request contained in your letter of August 24, 1886, I have the honor to submit the following report of the transactions of this office during the fiscal year which ended June 30, 1886.

The following described warrants were received, examined, countersigned, entered into registers, and posted into ledgers, under their proper heads of appropriations, viz:

DELIVERY OF DRAFTS TO ATTORNEYS.

Questions are constantly arising in this office for decision thereon, where claimants having just demands against the Government authorize attorneys under properly executed powers of attorney to prosecute their claims and receive the drafts to be issued in payment thereof, then revoke such powers of attorney or substitute other attorneys under subsequent powers of attorney, and, in some cases, even after the allowance of their claims, but just prior to the issuing or delivery of the drafts, substitute still other attorneys in the places of the substituted attorneys under powers of attorney of yet a later date. In such cases it becomes necessary to determine the conflicting rights of the attorneys to receive the drafts, or, at any rate, the proper attorneys or persons to whom to deliver them. Much inconvenience and delay are oftentimes thereby caused the claimants on the one hand, and the attorneys frequently claim that they are deprived of the just proceeds of their professional labors on the other. The exercise by the Comptroller of the jurisdiction to determine these questions seems in many cases at least a doubtful

one. While the authority to decide as to the proper indorsement and collection or payment of the drafts is vested in him, for the reason that he must necessarily pass upon the same in revising and settling the accounts of the Treasurer of the United States, yet his authority to exercise the jurisdiction above referred to is only such as is conferred upon him by the regulations of the Treasury Department on that subject. These provide (copying here only so much thereof as is material to the present point) as follow:

The claimant may change his attorney at any time, with the consent of the proper officers of the Department. * ** The Secretary reserves the right in all cases to make such special orders as may be proper. (Circular of October 10, 1876-Department No. 130.)

Hereafter the accounting officers will decide what persons as attorneys or claimants are entitled to receive drafts under the rules of the Department. (Circular of July 10, 1880-Department No. 62.)

The revocation of a power of attorney, or other authority to prosecute a claim, by a claimant or his legal representatives, will not be recognized, unless by decision to that effect by the proper accounting officer. # * (Circular of February 6, 1886Department No. 13.)

Even holding that under these regulations the jurisdiction mentioned is conferred upon the Comptroller, yet it seems a very doubtful question at what stage of the passage of claims through the Department, under what circumstances, and for what reasons, may claimants properly revoke powers of attorney duly executed, or substitute other attorneys in the places of those already duly authorized to act for them.

*

The statutes provide, that "the head of each Department is author. ized to prescribe regulations, not inconsistent with law, for the govern. ment of his Department, the conduct of its officers, and per formance of its business" (Rev. Stat., 161)-the delivery of drafts to attorneys being a part of the performance of the business of the Treas ury Department; and further provide:

That the Secretary of the Treasury may prescribe rules and regulations governing the recognition of agents, attorneys, or other persons representing claimants before his Department. (Act July 7, 1884-23 Stat., 258.)

Hence, I deem it a matter of great importance, and well worthy of your consideration, whether regulations covering and governing the subject-matter above referred to should not be issued for the guidance of the Comptroller and other accounting officers, as well as attorneys and claimants; or whether the matter should not be called to the attention of Congress for the enactment of some statute to the same effect; and in this connection I respectfully ask leave to call your attention to the following former regulations of the Treasury Department on the same subject, in addition to those already cited:-Circular of Second Comptroller of April 25, 1867; Circular of May 23, 1872-Department No. 53; Circular of December 18, 1872-Department No. 138; Circular of March 19, 1874-Department No. 16; Circular of April 16, 1875–Department No. 45.

ASSIGNMENT OF CLAIMS UPON THE UNITED STATES.

There is a subject of a somewhat kindred nature with the above, to which I think the attention of Congress ought to be invited, in order that some definite determination of the same may be arrived at in the accounting system.

Section 3477 of the Revised Statutes prohibits "all transfers and assignments," and "all powers of attorney" or other authorities for receiving payment, "of any claim upon the United States," except such as are duly made and executed at the times and under the conditions and circumstances named in said section. (And at this point I will state

there are certain special exceptions to this general prohibition, where assignments are expressly authorized by law in a few cases.)

Two of my predecessors, Comptrollers Whittlesey and Porter-the former in a circular of some length dated May 2, 1853-held that the term "claim" as used in this section did not apply to salary-accounts and other demands of a like nature, certain, fixed, definite, and undisputed in character; and that, therefore, assignments, and powers of attorney to receive payment, of these, were not prohibited by the statute and would be recognized. This view seems to be concurred in by Solicitor-General Phillips in an opinion given in a letter to the Secretary of the Treasury of May 28, 1883, which is approved by Attorney-General Brewster.

On the contrary, my immediate predecessor, Comptroller Lawrence, and Second Comptroller Upton, rendered opinions, both of which are contained in the printed reports of this Office, construing the term "claim" as used in the above section to "embrace every claim against the United States, however arising, of whatever nature it may be, and wherever and whenever presented "-whether certain, fixed, definite, and undisputed, or uncertain, unfixed, indefinite, and disputed. Since assuming charge of the duties of this Office I have followed the latter construction, for the reason that I deemed it in accordance with the principles settled by the decisions of the Supreme Court construing said section, in the cases of United States v. Gillis (95 U. S., 413), Spofford v. Kirk (97 U. S., 489), and Goodman v. Niblack (102 U. S., 560). See, also, 9 Op. Att.-Gen., 190; and 16 Id., 262.

It thus appears, that there have been opposing opinions by the accounting officers upon the proper construction of the said section; and I am informed that the present accounting officers do not agree in their interpretation of the same. These conflicting constructions, all founded on reasonable doubts as to what is the proper conclusion at which to arrive, are productive of considerable confusion in the process of accounting.

It seems, therefore, that much of the uncertainty and inconvenience now encountered by the accounting officers in their construction of this statute would be removed by an explanatory act of Congress defining the term "claim" as used above in such manner as to leave no doubt of its proper construction. Hence, I urge upon you the necessity of calling the attention of Congress to the matter for its appropriate action thereon.

COMPENSATION OF COMMISSIONERS OF THE CIRCUIT COURTS.

Accounts of United States district attorneys, marshals, clerks of courts, and circuit-court commissioners are revised and settled in this Office. The compensation of the two first-named officers is derived from the fees of their offices together with a small nominal annual salary, and of the two last-named entirely from the fees of their offices. In the case of district attorneys, marshals, and clerks there is a limit placed by law on the amount that may be retained by them of the fees and emoluments of their offices earned during a year (Rev. Stat., 835, 841, 839); but in the case of commissioners there is no such limit under existing law.

Thus, in many instances, as shown by the records of this office, the fees earned by, and allowed to, commissioners during a given year amount to more than $5,000-an annual compensation greater than that of most of the United States district judges, and very little less than that of the United States circuit judges.