ble advantage of somewhat better methods in the future. The pub. lisher derives considerable gains from the pages allowed for advertisements and from sales of the annual Guide to the public. These will be greater sources of profit if his rights as publisher are secure for a long term. On the other hand, the publication requires so considerable a stock of printers' material and machinery to produce with promptitude the large number of copies demanded, that competition for a single year's contract is much limited. On both sides evident reasons manifest the advantages to the publisher of a long contract, and therefore the probability of a better price to the Government for the copies it requires. There is good reason to believe that the contract price for the current year could be abridged by one-quarter to one-third if a term of eight or ten years were offered to the successful competitor, and at the same time every necessary provision be made for the probable changing needs of the Department during its continuance. It would be at once a measure of economy to the Government and of fairness to the contractor.

A Fourth Assistant Postmaster-General was recommended in the report of last year, and reference is again made to the reasons then suggested in favor of providing such an officer. Additional experience in the Department adds confirmation to the opinion expressed. No private business well conducted, of far less magnitude, would long want such an official. The Government should save many times his salary within a year by the retrenchments in expense which his steady superintendence might enforce. The heavy duties of the present officers leave it possible only to see what might be accomplished in many features, if time were afforded for the requisite constancy of labor and study. I commend the reading of Postmaster-General Howe's piquant report for 1882 on the distribution of salaries and allowances in this connection.

The Department.-The following table exhibits the expendi tures of the Department during the fiscal years 1885 and 1886.

Table showing appropriations, expenditures, and unexpended balances of appropriations for objects pertaining to the care of the Post-Office Department building, for the conduct of the Departmental service, and for salaries of officers and employés of the Department; also amount and rate of decrease of expenditures for 1886 as compared with 1885.

The diminishment in expenditures during the last year took place without diminishment of any proper provision for the comfort or health of the clerks employed. Indeed, many improvements have been made much contributing to both. The plumbing and gas-fitting of the De partment building were seriously defective, and have been renovated with good effect, and attention has been given to render the place of daily labor of the departmental force as cleanly, comfortable, and agreeable as the building will admit. Especial commendation is due the chief clerk and the superintendent for the excellent results accomplished and the economy in expenditure.

The Money-Order Building was leased for five years from the 1st day of October, 1882, at $8,000 per year. As the term expires during the coming year, and the room space now in use is indispensable, it becomes necessary to solicit from the Congress some new provision, either by a lease of the same or some other building.

It is no longer a matter of foresight that enlargement of the Depart ment building or the construction of a new one has become a duty. Three buildings in addition to the Department proper are now rented for its service, at an annual cost of $14,000; and before the probable completion of a new structure their capacity will have been outgrown.

I wish to avoid every perfunctory phrase, but to express in terms intense with sincerity my gratitude to the assistants and heads of bureaus and offices, the chief clerk and chiefs of divisions of this Department for their loyal and efficient co-operation, counting no hours' and sparing no personal inconvenience to promote the common object intrusted to our care. Fidelity and attention have been conspicuous among the clerical force, and the corps of inspectors has well earned acknowledgment of their diligent and valuable service. The justifiable pleasure with which the improving condition of our postal administration is now exhibited to you is the joint possession of all these officers whose patriotic labors have wrought for its accomplishment. WILLIAM F. VILAS,

The PRESIDENT.

Postmaster-General.

PAPERS

ACCOMPANYING

THE REPORT OF THE POSTMASTER-GENERAL.

REPORT OF THE FIRST ASSISTANT POSTMASTER

GENERAL.

POST OFFICE DEPARTMENT,

OFFICE OF THE FIRST ASSISTANT POSTMASTER-GENERAL,

Washington, D. C., October, 20, 1886.

SIR: I have the honor to submit the following report of the work of this Bureau for the year ended June 30, 1886.

APPOINTMENT DIVISION.

Statement showing the number of post-offices established and discontinued, the number of postmasters appointed, and the increase or decrease as compared with the previous year.

The above statements show that the number of post-offices established the past year was 3,482, an increase of 1,361 over the number estab lished the previous year; also that the number of offices discontinued was 1,120, an increase of 234 over the number discontinued the previous year.

The extraordinary increase in the number of post-offices established the past year was, in a great measure, due to the fact that a large number of applications for offices filed in the latter part of the previous year were left over and acted upon during the past year. The increase and decrease in the number of offices, arranged by sections, States, and Territories, were as follows: