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The ten States and six Territories of the West and Northwest.

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It will be observed that the greatest increase in the number of offices in any of the States and Territories the past year was 197 in Virginia, though North Carolina followed close, with 193, and Texas with 146. The largest increase the previous year was 100 in Virginia.

The decrease the past year was 16 in Colorado; 6 in Arizona; 6 in Wisconsin; 2 in Nevada, and 1 in Rhode Island.

The six States having the largest number of post-offices June 30, 1886, were as follows: Pennsylvania, 4,001; New York, 3,215; Ohie, 2,763; Virginia, 2,281; Illinois, 2,229; and Missouri, 2,057.

By the annual adjustment of the salaries of postmasters, 45 offices of the third class were relegated to the fourth class, and 24 offices of the fourth class were assigned to the third class, leaving 2,244 Presidential offices in operation June 30, 1886.

As heretofore, New York had the largest number of offices of this grade, 216; following were Illinois, with 176; Pennsylvania, 159; Ohio, 133; Massachusetts, 121, and Iowa, 120. The greatest increase in such offices was seven each in Nebraska and Kansas.

The total number of money-order offices at the close of the fiscal year was 7,356, an increase of 287 over the previous year. Of the whole number of offices of this class, Illinois had the largest number, 590, Following were: Iowa, with 522; New York, 496; Ohio, 468; Pennsyl vania, 402; Michigan, 344; Kansas, 342; Indiana, 315; Missouri, 213; and Wisconsin, 271. The greatest increase in any State was 25, in Kansas.

The number of postmasters appointed during the year was 22,747, while the total number of cases acted upon, including the discontinuances and names and sites changed with the retention of the incumbents, was 24,456. Compared with the previous year, there was au increase of 2,908 in the number of appointments on resignations and commissions expired, of 8,756 on removals and suspensions, of 175 on deaths of postmasters, and of 1,361 on establishment of post-offices.

The number of postmasters who died during the year was 587. The increase in the number of cases passed upon was 13,253 over the previous year.

For further information relative to the establishment, discontinuance, and change of names and sites of post-offices and the appointment of postmasters, reference is made to tables marked A and B appended to this report.

BOND DIVISION.

To this division is assigned the duty of recording in proper form the appointments of all postmasters, whether made by the President or the Postmaster-General; the establishment, discontinuance, and changes of names and sites of post-offices, and the preparation and transmission of the necessary letters of appointment, together with blank bonds and oaths to be executed by all newly-appointed postmasters. Upon the return of these bonds and oaths, duly executed, they are carefully examined, and, if found correct, the bonds are submitted to the Postmaster General for approval, after which the names of the sureties are recorded, the postmasters' commissions prepared and transmitted, and the bonds and oaths filed in their proper order.

Of all these transactions full and complete reports are made daily or weekly to the various branches of the Department proper and to the Auditor for the Post-Office Department.

In addition to the foregoing is the preparation, examination, recording, reporting, and filing of all new bonds required for various causes, and a vast amount of correspondence with postmasters and the general public.

The amount of business transacted during the year was unprecedentedly large, in consequence of the great number of appointment cases handled, and of new bonds required by order of the PostmasterGeneral.

The official order (No. 120) of the Postmaster-General, issued May 21, 1885, has been executed, every postmaster of the fourth class who had remained in office for five years from the date of the taking effect of his latest official bond, having been called upon to furnish a new

bond.

The number of postmasters required under the said order to renew their official bonds was 14,063, or about 27 per cent., distributed among the States and Territories as follows:

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Eleven thousand three hundred and forty-five, or 80.6 per cent. of those called upon, have furnished the required new bonds, and the same have been accepted, recorded, reported, and filed.

The number failing or declining to meet the requirement was 2,718.

The following table is designed to show the work done by this division, in so far as it is susceptible of tabulation:

A statement of the operations of the Bond Division for the fiscal year ended June 30, 1886.

bonds, &c., were mailed

Number of Presidential cases recorded and upon which appointment papers,

Number of bonds returned for correction.....

Number of appointment bonds examined, indorsed, and submitted to the
Postmaster-General for approval

Number of cases of the fourth class recorded and upon which appointment papers, bonds, &c., were mailed

1,600

23,521

21.091

Number of appointment bonds filed.....

4,087

Number of new bonds sent upon requests from postmasters..
Total number of new bonds required

Number of new bonds required upon recommendations of post-office înspectors....

Number of new bonds required in consequence of the extension of the moneyorder business

Number of new bonds received, examined, indorsed, and submitted to the
Postmaster-General for acceptance

Number of new bonds reported to the Third Assistant Postmaster-General.
Number of new bonds reported to the Auditor .

Number of new bonds reported to the Money-Order Office.

Number of new bonds filed

Number of new bonds required upon request of surety to be released..... Number of new bonds required at the instance of the Third Assistant Postmaster-General.

Number of new bonds required under the Postmaster-General's order of
May 21, 1885.....

21,091

14,063

501

121

127

502

497

15, 871

12,936

2-4

12,936

1,292 12,936

Number of jackets prepared in sending new bonds.....

Number of commissions prepared and mailed to postmasters..
Number of commissioned postmasters reported to the Auditor

Number of commissioned postmasters reported to the Third Assistant Post-
master-General....

Number of commissioned postmasters reported for publication in the Postal
Bulletin.....

Number of commissioned postmasters reported to the Money-Order Office..
Number of blank designations and oaths mailed to acting postmasters.....
Number of designations and oaths of acting postmasters received, examined,
indorsed, recorded, and filled .....

Number of acting postmasters reported to the Auditor

Number of circular letters sent on appointments, establishments, changes
of names and sites, and discontinuances of post-offices..
Number of circulars sent with new bonds....

Number of circular letters relating to terms of service of postmaster sent..
Number of circulars sent to appointees delinquent in the execution of their
official bonds

Number of circular letters accompanying bonds returned for correction..
Number of circulars accompanying commissions sent to postinasters
Number of surety circulars sent to Chief Post-Office Inspector....
Number of notifications sent to sureties relative to postmasters' failure to
pay amount due the United States

Number of circulars sent to postmasters delinquent in furnishing new
bonds....

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Number of circular letters sent notifying sureties of death of postmasters.
Number of manuscript letters written

518

1,057

Number of blank oaths for assistant postmasters, clerks, and employés mailed..

Number of post-office inspectors' reports on responsibility of sureties received, examined, and filed...

7.606

65,579

Number of oaths of assistant postmasters, clerks, and employés, received, examined, indorsed, and filed

Number of establishments, discontinuances, and changes of names and sites of post-offices reported to the Second Assistant Postmaster-General. Number of establishments, discontinuances, and changes of names and sites of post-offices reported to the Third Assistant Postmaster-General......

40,50

5,129

4,329

Number of establishments, discontinuances, and changes of names and sites
of post-offices reported to the equipment division

Number of new offices reported to the division of post-office supplies
Number of discontinuances reported to the Anditor
Number of entries made on the books of the division...

Number of current records in use...

Number of blank forms in use.

DIVISION OF CORRESPONDENCE.

4,329 2,963

905

156, 247

36

75

The following is a summary of the work performed in this division during the fiscal year ended June 30, 1886:

Number of letters written to postmasters and private individuals involving decisions under postal laws and regulations...

Number of telegrams sent in reply to communications requiring the immediate action of the Department..

Number of newspaper and periodical publications claiming the right of admission to the mails as second-class matter, examined and admitted or rejected

Amount of money collected from publishers of second-class matter for violations of law in mailing third-class matter inclosed with their publications at second-class rates.

16, 632

66

4,380

$2,086 14

The increase in correspondence of this division over the fiscal year ended June 30, 1885, was over 33 per cent. It also shows an increase over the year ended June 30, 1882, of nearly 100 per cent.

The number of newspaper and periodical publications submitted for classification exceeded the number submitted during the year ended June 30, 1885, by about 15 per cent., and 1882, by about 40 per cent.

The collections, amounting to $2,086.14, were made through the office of the Third Assistant Postmaster-General, and were the result of decisions made in this division.

The duties of the division are well set forth in its title. It is a division of correspondence, to which are referred all letters received at the office from postmasters requesting in ormation concerning the performance of their official duties, and from the public in regard to the classification of mail matter, the delivery of mail the ownership of which is in controversy, the proper construction of the laws and regulations of the Department, &c.

It may be proper to state that the correspondence and items referred to in this report do not fully cover the work of the division. Many questions were personally submitted of which no record could be kept.

DIVISION OF POST-OFFICE SUPPLIES.

This division supplies post-offices of the fourth class with thirty-two different forms of blanks, canceling-ink, stamping-pads, eight-ounce letter-balances, marking and rating stamps, and, if the salary be $50 or more, with twine and wrapping paper.

The same supplies are furnished to offices of the third class as are furnished to offices of the fourth class whose salary is $50 or over; and, in addition thereto, with the same blanks as are furnished first and second class offices, except such as relate to the free delivery service.

Offices of the first and second classes are furnished with twine, wrapping-paper, canceling-ink, letter-balances and scales, rating, canceling and marking stamps, stamping-pads, stationery, and blanks.

The following tabulated statement shows in a concise form the growth of this division during the past five fiscal years:

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APPROPRIATIONS AND EXPENDITURES FOR TWINE, PAPER, SCALES,

STAMPS, ETC.

The appropriations and expenditures for the foregoing articles for the fiscal years 1884-'85 and 1885-'86 were as follows:

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The sum of the appropriations for the fiscal year ended June 30, 1886, amounted to $403,612, and the expenditures for the same period were $327,520, about 82 per cent. of the appropriations. This left at the close of the fiscal year ended June 30, 1886, an aggregate of $76,091 unexpended. This, however, does not include the stock on hand at the beginning of the fiscal year, amounting (estimated value) to about $5,000.

STATIONERY.

Of the $65,000 appropriated for stationery, only $41,039 (63 per cent.) was expended.

The expenditures for the past seven fiscal years were as follows:

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