e elsewhere. On all grounds it is exceedingly desirable
that the convicts confined in this penitentiary be allowed to resume
work of this description.

It is most gratifying to note the satisfactory results that have
followed the inauguration of the new system provided for by the act of
May 28, 1896, under which certain Federal officials are compensated by
salaries instead of fees. The new plan was put in operation on the 1st
day of July, 1896, and already the great economy it enforces, its
prevention of abuses, and its tendency to a better enforcement of the
laws are strikingly apparent. Detailed evidence of the usefulness of
this long-delayed but now happily accomplished reform will be found
clearly set forth in the Attorney-General's report.

Our Post-Office Department is in good condition, and the exhibit
made of its operations during the fiscal year ended June 30, 1896,
if allowance is made for imperfections in the laws applicable to
it, is very satisfactory. The total receipts during the year were
$82,499,208.40. The total expenditures were $90,626,296.84, exclusive
of the $1,559,898.27 which was earned by the Pacific Railroad for
transportation and credited on their debt to the Government. There was
an increase of receipts over the previous year of $5,516,080.21, or 7.1
per cent, and an increase of expenditures of $3,836,124.02, or 4.42
percent. The deficit was $1,679,956.19 less than that of the preceding
year. The chief expenditures of the postal service are regulated by law
and are not in the control of the Postmaster-General. All that he can
accomplish by the most watchful administration and economy is to enforce
prompt and thorough collection and accounting for public moneys and such
minor savings in small expenditures and in letting those contracts, for
post-office supplies and star service, which are not regulated by
statute.

An effective cooperation between the Auditor's Office and the
Post-Office Department and the making and enforcement of orders by
the Department requiring immediate notification to their sureties
of all delinquencies on the part of postmasters, and compelling such
postmasters to make more frequent deposits of postal funds, have
resulted in a prompter auditing of their accounts and much less default
to the Government than heretofore.

The year's report shows large extensions of both star-route service and
railway mail service, with increased postal facilities. Much higher
accuracy