at
the naval school, the vacancies caused by the neglect or omission to
make nominations from the States in insurrection have been filled by the
Secretary of the Navy. The school is now more full and complete than at
any former period, and in every respect entitled to the favorable
consideration of Congress.

During the past fiscal year the financial condition of the Post-Office
Department has been one of increasing prosperity, and I am gratified in
being able to state that the actual postal revenue has nearly equaled
the entire expenditures, the latter amounting to $11,314,206.84 and the
former to $11,163,789.59, leaving a deficiency of but $150,417.25. In
1860, the year immediately preceding the rebellion, the deficiency
amounted to $5,656,705.49, the postal receipts of that year being
$2,645,722.19 less than those of 1863. The decrease since 1860 in the
annual amount of transportation has been only about 25 per cent, but the
annual expenditure on account of the same has been reduced 35 per cent.
It is manifest, therefore, that the Post-Office Department may become
self-sustaining in a few years, even with the restoration of the whole
service.

The international conference of postal delegates from the principal
countries of Europe and America, which was called at the suggestion of
the Postmaster-General, met at Paris on the 11th of May last and
concluded its deliberations on the 8th of June. The principles
established by the conference as best adapted to facilitate postal
intercourse between nations and as the basis of future postal
conventions inaugurate a general system of uniform international charges
at reduced rates of postage, and can not fail to produce beneficial
results.

I refer you to the report of the Secretary of the Interior, which is
herewith laid before you, for useful and varied information in relation
to the public lands, Indian affairs, patents, pensions, and other
matters of public concern pertaining to his Department.

The quantity of land disposed of during the last and the first quarter
of the present fiscal years was 3,841,549 acres, of which 161,911 acres
were sold for cash, 1,456,514 acres were taken up under the homestead
law, and the residue disposed of under laws granting lands for military
bounties, for railroad and other purposes. It also appears that the sale
of the public lands is largely on the increase.

It has long been a cherished opinion of some of our wisest statesmen
tha