ate, 4 of those appointed had rendered previous service
under the Department, 8 were made of persons who passed a satisfactory
examination, 7 were appointed to places not included in the order of
September 20, 1895, and 4 appointments, as above stated, involved no
change of incumbency.

The inspection of consular offices provided for by an appropriation for
that purpose at the last session of the Congress has been productive
of such wholesome effects that I hope this important work will in the
future be continued. I know of nothing that can be done with the same
slight expense so improving to the service.

I desire to repeat the recommendation contained in my last annual
message in favor of providing at public expense official residences
for our ambassadors and ministers at foreign capitals. The reasons
supporting this recommendation are strongly stated in the report of the
Secretary of State, and the subject seems of such importance that I hope
it may receive the early attention of the Congress.

We have during the last year labored faithfully and against unfavorable
conditions to secure better preservation of seal life in the Bering Sea.
Both the United States and Great Britain have lately dispatched
commissioners to these waters to study the habits and condition of the
seal herd and the causes of their rapid decrease. Upon the reports of
these commissioners, soon to be submitted, and with the exercise of
patience and good sense on the part of all interested parties, it is
earnestly hoped that hearty cooperation may be secured for the
protection against threatened extinction of seal life in the Northern
Pacific and Bering Sea.

The Secretary of the Treasury reports that during the fiscal year ended
June 30, 1896, the receipts of the Government from all sources amounted
to $409,475,408.78. During the same period its expenditures were
$434,678,654.48, the excess of expenditures over receipts thus amounting
to $25,203,245.70. The ordinary expenditures during the year were
$4,015,852.21 less than during the preceding fiscal year. Of the
receipts mentioned there was derived from customs the sum of
$160,021,751.67 and from internal revenue $146,830,615.66. The receipts
from customs show an increase of $7,863,134.22 over those from the same
source for the fiscal year ended June 30, 1895, and the receipts from
internal revenue an increase of $3,584,537.91.

The value of our imported dutiable merchandise during the last f