ith such scandals and unfair practices as seem unavoidable,
should remain for a time at least as common land or be sold by the
Government on behalf of the Indians in an orderly way and at fixed
prices, to be determined by its location and desirability, and that the
proceeds, less expenses, should be held in trust for the benefit of the
Indian proprietors.

The intelligent Indian-school management of the past year has been
followed by gratifying results. Efforts have been made to advance the
work in a sound and practical manner. Five institutes of Indian teachers
have been held during the year, and have proved very beneficial through
the views exchanged and methods discussed particularly applicable to
Indian education.

Efforts are being made in the direction of a gradual reduction of the
number of Indian contract schools, so that in a comparatively short time
they may give way altogether to Government schools, and it is hoped
that the change may be so gradual as to be perfected without too great
expense to the Government or undue disregard of investments made by
those who have established and are maintaining such contract schools.

The appropriation for the current year, ending June 30, 1895, applicable
to the ordinary expenses of the Indian service amounts to $6,733,003.18,
being less by $663,240.64 than the sum appropriated on the same account
for the previous year.

At the close of the last fiscal year, on the 30th day of June, 1894,
there were 969,544 persons on our pension rolls, being a net increase
of 3,532 over the number reported at the end of the previous year.

These pensioners may be classified as follows: Soldiers and sailors
survivors of all wars, 753,968; widows and relatives of deceased
soldiers, 215,162; army nurses in the War of the Rebellion, 414. Of
these pensioners 32,039 are surviving soldiers of Indian and other
wars prior to the late Civil War and the widows or relatives of such
soldiers.

The remainder, numbering 937,505, are receiving pensions on account of
the rebellion, and of these 469,344 are on the rolls under the authority
of the act of June 27, 1890, sometimes called the dependent-pension law.

The total amount expended for pensions during the year was
$139,804,461.05, leaving an unexpended balance from the sum appropriated
of $25,205,712.65.

The sum necessary to meet pension expenditures for the year ending June
30, 1896, is estimated at $140,000,000.

The Commissioner of Pe