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the 30th September last, and by the terms of their contracts sixty
days more are allowed for the settlement of their accounts before the
Department could be called upon for payment.

The great difficulty and the great hardship consisted in the failure
to provide for the payment of the deficiency in the fiscal year ending
the 30th June, 1859. The Department had entered into contracts, in
obedience to existing laws, for the service of that fiscal year, and
the contractors were fairly entitled to their compensation as it became
due. The deficiency as stated in the bill amounted to $3,838,728, but
after a careful settlement of all these accounts it has been ascertained
that it amounts to $4,296,009. With the scanty means at his command the
Postmaster-General has managed to pay that portion of this deficiency
which occurred in the first two quarters of the past fiscal year, ending
on the 31st December last. In the meantime the contractors themselves,
under these trying circumstances, have behaved in a manner worthy
of all commendation. They had one resource in the midst of their
embarrassments. After the amount due to each of them had been
ascertained and finally settled according to law, this became a specific
debt of record against the United States, which enabled them to borrow
money on this unquestionable security. Still, they were obliged to
pay interest in consequence of the default of Congress, and on every
principle of justice ought to receive interest from the Government.
This interest should commence from the date when a warrant would have
issued for the payment of the principal had an appropriation been made
for this purpose. Calculated up to the 1st December, it will not exceed
$96,660--a sum not to be taken into account when contrasted with the
great difficulties and embarrassments of a public and private character,
both to the people and the States, which would have resulted from
convening and holding a special session of Congress.

For these reasons I recommend the passage of a bill at as early a day
as may be practicable to provide for the payment of the amount, with
interest, due to these last-mentioned contractors, as well as to make
the necessary appropriations for the service of the Post-Office
Department for the current fiscal year.

The failure to pass the Post-Office bill necessarily gives birth
to serious reflections. Congress, by refusing to pass the general
appropriation bills necessary to carr