ment has been encouraged by the Commissioners, because the accommodations at the Home for resident inmates are so limited. A very large amount of money remains due to the Home from the old unsettled accounts in the Treasury Department This money, together with the amount now in the "permanent fund" and in bonds, must form the reserve fund and afford an interest revenue, which, with the income from settlement of current accounts, must provide the means to maintain the Home in the future. Every encroachment upon this reserve is a matter of serious consequence. The current income, apart from the interest upon the reserve fund, appears to be diminishing. This income is the deduction of 123 cents per month from the pay of each soldier, and the stoppages, fines, and forfeitures coming from month to month upon the accounts of the Pay Department of the Army. The settlement of these accounts during the past three years shows the alarming diminution referred to. In 1884 the amount derived was $128,026.65; in 1885, $122,528.91, while in the last year the amount was $87,704.34, a decrease of $37,573.44 from the average of the two preceding years. The Commissioners are unable to explain why this should be so, and inasmuch as the Army has been no smaller, and the amount of pay no less, it is hardly supposable that the causes which create the source of this income have so greatly abated as to make such a difference as has actually occurred. It must therefore be attributed to the settlements in the Treasury Department being less in number or of accounts covering shorter periods or fewer payments to the Army. Whatever it may be, the fact remains that, in order to maintain the Home during the year, the current income had to be supplemented by a little more than $47,000 from the reserve fund. It is a matter of very little consequence how current accounts may be settled, provided the work proceeds uninterruptedly as rapidly as it accumulates, but there seems to be room for improvement in existing methods, and if there could be brought about a mutual agreement and arrangement between the Pay Department of the Army and the accounting officers of the Treasury Department, it might be possible for the former to ascertain and certify the amounts due the Home before the accounts pass to the latter for final settlement. Such arrangement would appear to insure regularity at least, and if it shall be found upon further consideration to have any promise of feasibility, some recommendations upon the subject may be submitted hereafter. The treasurer's accounts show that there remained in his hands September 30, 1885, $23,531.17, and that he received the following sums during the year: From the "permanent fund," upon requisitions by the Commissioners, $136,020; interest, $55,718.65; rent of property at Harrodsburg, Ky., and miscellaneous sources, $2,555.14; effects of deceased inmates, $482.38; total to be accounted for, $218,307.34. Of this sum there was expended for the Home, for the purposes shown in the treasurer's statement, herewith, $192,920.88, and $1,000 (which was received for property taken by the United States in connection with the extension of the water supply for Washington City) was deposited in the permanent fund, leaving a balance in the treasurer's hands September 30, 1886, of $24,386.46. It is the regular practice to draw from the United States Treasury the funds required for the expenses of each month only a few days before its close. The "permanent fund" account in the United States Treasury showed a balance to its credit September 30, 1885, of $445,182.90. The amount placed to the credit of the same fund during the year was $219,601.11, making a total of $664,784.01. The amount withdrawn for the use of the Home was $136,020, leaving a balance September 30, 1886, of $528,764.01, a net increase of $83,581.11. This fund bears interest at 3 per cent. per annum, which is paid to the treasurer of the Home quarterly, and forms a part of the current income. The payments received during the year amounted to $14,318.65, and were for the year ending June 30, 1886. The interest for the quarter ending September 30, 1886, amounting to $4,018.49, was under certificate, but had not been paid to the treasurer at the date of his report. The balance of the income reported by the treasurer as interest received is made up by interest for fifteen months on $780,000 United States 4 per cent. bonds ($39,000) and interest for one year on $40,000 Missouri Pacific 6 per cent. bonds ($2,400), making, with the $14,318.65 above mentioned, a total of $55,718.65. Exhibits with the report of the treasurer show that the value of the farm and dairy products, estimated at regular market prices, exceeded the expenses of these departments, making a profit to the Home of $4,806.66, while the account with the garden, against which is charged the expense of keeping the ornamental part of the grounds in order, shows a balance against that department of $1,647.99. The account with the inmate pensioners, which is a trust imposed by law upon the treasurer of the Home, shows that the amount received by him during the year was $47,383.57, and that the amount paid by him to the individual pensioners was $46,534.83. The Commissioners have heretofore expressed their views upon the payment of large pensions by the General Government to men who have all their wants supplied from the funds of the Soldiers' Home, and deem it futile to make any further endeavor to secure a modification of existing law regulating the subject, but it should be remarked that a sum of money almost equal to onefourth of the expenses of the Home is not only paid to inmates, the most of whom have very little profitable use for it, but an officer of the Home is obliged to become the custodian of the funds, and perform a great amount of labor in keeping an individual account with each pensioner, to whom payments must be made frequently and in small amounts. No building operations were carried on during the year and no real estate was purchased. In January, 1886, the Secretary of War approved a request of the Commissioners for authority to purchase from the Rock Creek parish a piece of ground containing a little less than one-fourth of an acre, which some years ago had been inclosed with the Home grounds by a permanent stone and iron fence, built along the road which separated this small piece from the main property. The parish is not yet ready to receive the purchase money, and it remains subject to their order. In the last report of the Commissioners it was stated that a balance of $9,935.56 was due the contractors who built the new annex building, then just completed and occupied. The contractors made a claim prior to final settlement for a considerable sum for extra work upon the building not included in the contract. This claim was duly investigated, and, as a result, an award of $500 was made by the Commissioners, and, with the balance due on the contract, has been paid. Still further space for cooking and messing, as well as for dormitories, is demanded by the increased number of inmates, and plans have been adopted and are now being prepared, with estimates, for a large extension to the main building, which it is expected will cost about $150,000. At their last monthly meeting the Commissioners authorized the gov ernor of the Home to place inmates in the building which has heretofore been reserved as a summer residence for the President of the United States. It had become absolutely necessary to so occupy it in order to relieve other overcrowded quarters. The Commissioners desire to call special attention to a matter of regular expense to the Home in maintaining a large and handsome park and an exceedingly well-planned system of beautiful drives, and to urge that a strong appeal be made to Congress for some measure of relief by an appropriation to keep up the repairs to road-beds, bridges, culverts, gutters, &c., for about 10 miles length of drives within the Home grounds. In the effort to make these extensive grounds attractive, a park has been formed, which has become a necessity, as a resort not only for the people of Washington City, but for the multitude of strangers who visit the national capital. It is the only park or place accessible to this city affording suitable conditions for riding or driving for pleasure, and the people who seek this enjoyment are not influenced through any interest whatever in promoting the happiness of the old soldiers whose money, ассиmulated from such apparently insignificant contributions as 12 cents per month, has provided so convenient and inviting a place for healthful recreation. It is true that the grounds might be closed and the use of the roads prohibited, but it would manifestly be an unwise thing to do, as it would not only be a great deprivation to the people of Washington City, and in a measure to the people of the whole country, but it would result in a waste of property and impairment of the improvements which could hardly be justified. The expense of keeping up these drives is burdensome to the Home, and ought not by any means to be longer imposed on its overtaxed income. There can be no doubt of the propriety of seeking and obtaining an appropriation from the public Treasury to meet the expense. Its use in maintaining a public privilege of the most acceptable kind is abundant reason for granting it. The form in which it shall be made and the channel through which it shall be applied may be left for consideration at the time of legislation, when more particular information can be given with respect to the amount of money required and the special uses to be made of it. The Home continues to hold its property at Harrodsburg, Ky., and has kept it under lease at a rent of $600 per annum. Early in the past summer a complaint that a pond upon the property was a source of disease affecting the inhabitants of the town close by, was received by the Commissioners, and upon their request a medical officer of the Army was ordered to inspect the place and report upon its sanitary condition. His report showed that the part of the town which would be most exposed to any contaminating influence from the pond had been quite free from that type of disease supposed to have its origin in impure water or pools and swamps, and the Commissioners decided that they would not be justified in incurring the expense necessary to abolish the pond. The property itself is for sale, and if at any time an offer shall be re ceived of a sum sufficient to yield at 3 per cent. per annum an amount equal to the present rent, the Commissioners will no doubt deem it their duty to make a sale at public auction under the terms of the law which gives them authority to do so after advertisement. The property has been once so offered, but no bid equal to the minimum price was received, and it was withdrawn. The stock of the Young Men's Christian Association Joint Stock Com pany, in which the Home has $62,500 invested, has not yet acquired a market value. There is a debt of $33,000 upon the property which will become due in June, 1889, and if the company shall be able to continue until then to increase their sinking fund at the average rate of the past few years, there will be about half enough money on hand to pay th debt. A new loan for the balance at a lower rate of interest will no doubt be obtained, and the whole indebtedness may be paid in five ot six years more. The law of Congress authorizing the loan requires the debt to be paid before any dividend can be declared for the stockholders. The papers accompanying this report are the annual report of the governor of the Home, treating of the internal affairs of the institution; the report of the treasurer, accompanied by six financial statements; the report of the attending surgeon, and a list of names of 208 men admitted to the Home during the year for which this report is made. Sixteen of these men are soldiers on the retired list, 53 are discharged soldiers who have served twenty years or more as enlisted men in the Army, and 139 discharged soldiers who have served less than twenty years, but who have been found to be entitled to the benefits of the Home by reason of disability incurred in the line of military duty of such degree as to disqualify them for further service. The roster of officers at the Home remains as it was given in the last annual report, and no change has occurred in the Board of Commissioners except the retirement of the Surgeon-General of the Army August 6, 1886. I am, sir, very respectfully, your obedient servant, P. H. SHERIDAN, Lieutenant-General Commanding the Army, The SECRETARY OF WAR. REPORT OF THE BOARD OF VISITORS TO THE UNITED STATES MILITARY ACADEMY. REPORT. The object and purposes of the establishment of the United States Military Academy are too well known to require reference at this time. Its conception originated in the wise and thoughtful mind of George Washington, and it has been fostered with almost religious care from its foundation to the present time. The fortunate selection of the historic spot it occupies for its location has largely influenced its success, since no spot so isolated and yet so accessible could possibly be found possessing at the same time the advantages of a close connection with the "outside world." It is, by virtue of its topographical position, so entirely removed from the realms of commerce and trade and of population that no extraneous influence can be brought to bear to disturb its quiet seclusion as a place of study or mar the effect of its enforced discipline. In pursuing its investigations the Board, having in view the practi cal value of the institution to the country and its economical administration, deemed it necessary to ascertain 1. If the discipline exercised on the cadets is in accordance with justice and humanity, and if its effects upon the individual results in developing and maintaining a high tone of morality and manhood. 2. If the course of instruction is in keeping with the advancement of knowledge, and especially if the improvements occurring all over the world in the art and science of war are recognized and taught. 3. Whether the system adopted for the conduct of the fiscal affairs of the institution is calculated to secure the best results through a judicious and economical expenditure of the moneys appropriated for that purpose. METHODS OF APPOINTMENT OF CADETS AND THE RESULTS. There are allowed by law, through the nomination of members of Congress, one cadet for each Congressional district and ten appointments by the President, making the legal number at present 344 cadets. There are now at the Academy only 269 cadets, arranged in classes as follows: This shows a deficiency in the maximum number allowed of 75 cadets; that is to say, there are 75 vacancies in the corps as now organized. When the present first class graduates, on the 12th instant, there will be 77 more vacancies, making 152 in all. To fill these vacancies 136 candidates for admission have been named, which will still leave 16 vacancies, even should all of those who present themselves for admission pass both the physical and mental preliminary examinations, while experience has shown that at least 24 per cent. fail. To supply the possible failure of some of these, 31 alternates have been appointed to be examined in case the principal appointee in the particular district from which they are appointed should fail. These alternates will have the effect to reduce the percentage of failure in the preliminary examination, but there will, in all probability, remain from 34 to 40 vacancies in this class when it begins the academic year. Adding to this about 50 per cent, who fall out of every class between the time of entering and graduating, there would be left a large and increasing diminution in the strength of the corps during each year. It was probably in view of this fact, among others, that Congress, by a law since repealed, authorized the President to appoint ten cadets "at large" each year. This authority is now limited to ten appointments of this character in four years. Recognizing the fact that the pay of an individual cadet is small compared with the total expenses of the Academy, the Board consider that it would be an act of sound public policy to give to the President the authority to appoint ten cadets each year, not only as a means of maintaining the strength of the corps, but also of providing for many deserving young men who can in no other way secure admittance to the Academy. It was probably intended by conferring this power upon the President to afford an opportunity for the appointment of sons of officers of the Army, who, by reason of their duties, had no permanent residence in any Congressional district, and by a natural sequence the sons of those who served in the last war as "volunteers" have had their claims recognized in the number appointed by the President. The applicants for these appointments are very numerous, and the solicitations very pressing. If this number should be still further increased, by authorizing each United States Senator to name a cadet, it is believed that there |