hereafter said clerks shall be classified and compensation regulated in the same manner as "civilian employés" in the other staff departments of the Army.

I would again urge the necessity of consolidating the appropriations for the pay of the Army, mileage, and general expenses under one title. The amounts to be disbursed under the above titles are, with two or three exceptions, limited by statute law. If the appropriation is in excess of these demands the excess cannot be disbursed, but will be carried by operation of law to the surplus fund, but if the appropriation is not sufficient to meet the demands the excess becomes a valid claim against the United States, and the subject of a deficiency estimate, thus forcing a very worthy class of claimants to a delay that is oftentimes very embarrassing. The interests of the service or economy in expenditures do not therefore demand the separation, while on the other hand there are good reasons for consolidation. Many of the items are estimated npon expenditures of prior years-the best data obtainable. This estimate may be in some cases excessive and in others not sufficient, but in the aggregate the amount appropriated will be sufficient to meet all demands, if the excess in one of them can be used to supply the deficiency in another; and thus a matron in a hospital will not be obliged to go without her pay until Congress meets and makes an appropriation for that purpose, while there is more than sufficient funds to pay the soldier whom she nurses. Again, the division of the appropriations into three heads, for each year, makes it necessary to keep in the hands of each disbursing officer a balance of funds much larger than if there were but one appropriation for each year, as he is obliged to carry a working balance under each appropriation. This, in the case of a limited appropriation, makes it very difficult to properly distribute the funds over so scattered a field as that occupied by paymasters.

Attention is invited to the report of Maj. A. B. Carey, paymaster, U. S. A., hereto appended, under whose immediate charge the payment of claims for bounty, arrears of pay, prize-money, &c., due soldiers, both white and colored, has been made, from which it will be seen that the payments devolved upon this bureau by the act of March 3, 1879, have been prompt, satisfactory, and economical.

The system of identification of claimants and placing the money in their hands seems as perfect as it can be made, and I have no change to recommend.

I am, sir, very respectfully, your obedient servant,

N. W. BROWN, Paymaster-General, U. S. Army.

The Hon. the SECRETARY OF WAR.

WAR DEPARTMENT, PAYMASTER-GENERAL'S OFFICE,

BOUNTY DIVISION, Washington, D. C., September 30, 1881.

SIR: In compliance with your instructions, I have the honor to submit the following report for the fiscal year ending June 30, 1881, relative to the payment of claims for bounty, arrears of pay, prize-money, &c., due colored soldiers, sailors, and marines, or their heirs, under joint resolution of Congress of March 29, 1867, and section 2 of an "act making appropriations for sundry civil expenses of the government for the fiscal year ending June 30, 1880, and for other purposes, approved March 3, 1879."

July 1, 1880, there remained in my hands 328 claims received from the Freedman's branch of the Adjutant-General's Office, aggregating $33,773.78; of these, 23 were paid, aggregating $2,430.46, leaving on hand June 30, 1881, 305 of these old claims, and $31,343.32 for their payment.

There also remained in my hands at that date, 79 Treasury certificates adjusted under the act of March 3, 1879, aggregating $7,828.94.

During the fiscal year, 2,209 Treasury certificates were received from the Second Auditor, making a total of 2,288, aggregating $203,945.58. Of these, 1,936, aggregating $159,621.93, were paid, leaving on hand June 30, 1881, 352 certificates and $44,323.65 for their payment.

All claims were prepared for payment in this office, and payments made as follows:

One hundred and forty-nine claims, aggregating $15,503.80 were paid through the Post-Office Department by post-office money orders since March 3, 1881, the date on which the appropriation for the expense of these payments became available.

The total expense of all these payments during the year was $3,275,56, of which $1,950.05 was from the appropriation for the support of the Army for the fiscal year ending June 30, 1881, and $1,325.51 from the $5,595.02 appropriated by the act of March 3, 1881, which left a balance of $4,270.51 available for the fiscal year ending June 30, 1882.

The cost to the government in paying these claims for the last fiscal year was a trifle over 2 per cent. of the amount disbursed, or $1.67 for each claim paid.

In addition to the claims of colored soldiers paid as above, there has been paid from this office, by check, to white claimants, 3,925 Treasury certificates; aggregating $432,506.05.

Very respectfully, your obedient servant,

Brig. Gen. N. W. BROWN,

Paymaster-General, U. S. Army.

A. B. CAREY,

Paymaster, U. S. A.

Statement of the account of the Pay Department with the several appropriations subject to its control during the fiscal year ending June 30, 1881.

Statement of the account of the Pay Department with the several appropriations subject to its control during the fiscal year ending June 30, 1881-Cont'd.

Pay of volunteers Mexican war..

Pay of mounted riflemen volunteers, serving General John C. Frémont in

Military Academy allowances to graduating class 1879-80

Bounty to Fifteenth and Sixteenth Missouri Cavalry Volunteers
Bounty act July 28, 1866

45, 366 09

Pay of two and three years' volunteers

Bounty to volunteers, widows, and legal heirs

Pay, &c., of the Army, 1878 and prior,.

Army paymasters' collections.

Collection and payment of bounty, &c., due colored soldiers and sailors,

Collection and payment of bounty, &c., due colored soldiers and sailors,

Collection and payment of bounty, &c., due colored soldiers and sailors, 1881, 1882

Pay of two and three years' volunteers, 1879, 1880

Pay, bounty, &c., due colored soldiers.

Commutation of rations due colored soldiers.

Pay, bounty, and prize money due colored sailors, &c.

N. W. BROWN, Paymaster-General, U. S. Army.