l provide adequately not only for the present preparation, but
for the future maintenance of our naval force. The Secretary of the Navy
has during the past year been quietly putting some of our most effective
monitors in condition for service, and thus the exigency finds us in a
much better condition for work than we could possibly have been without
his action.

POST-OFFICE DEPARTMENT.

A complete exhibit is presented in the accompanying report of the
Postmaster-General of the operations of the Post-Office Department
during the year. The ordinary postal revenues for the fiscal year ended
June 30, 1873, amounted to $22,996,741.57, and the expenditures of
all kinds to $29,084,945.67. The increase of revenues over 1872 was
$1,081,315.20, and the increase of expenditures $2,426,753.36.

Independent of the payments made from special appropriations for mail
steamship lines, the amount drawn from the General Treasury to meet
deficiencies was $5,265,475. The constant and rapid extension of our
postal service, particularly upon railways, and the improved facilities
for the collection, transmission, distribution, and delivery of the
mails which are constantly being provided account for the increased
expenditures of this popular branch of the public service.

The total number of post-offices in operation on June 30, 1873, was
33,244, a net increase of 1,381 over the number reported the preceding
year. The number of Presidential offices was 1,363, an increase of 163
during the year. The total length of railroad mail routes at the close
of the year was 63,457 miles, an increase of 5,546 miles over the year
1872. Fifty-nine railway post-office lines were in operation June 30,
1873, extending over 14,866 miles of railroad routes and performing an
aggregate service of 34,925 miles daily.

The number of letters exchanged with foreign countries was 27,459,185,
an increase of 3,096,685 over the previous year, and the postage thereon
amounted to $2,021,310.86. The total weight of correspondence exchanged
in the mails with European countries exceeded 912 tens, an increase of
92 tons over the previous year. The total cost of the United States
ocean steamship service, including $725,000 paid from special
appropriations to subsidized lines of mail steamers, was $1,047,271.35.

New or additional postal conventions have been concluded with Sweden,
Norway, Belgium, Germany, Canada, Newfoundland, and Japan, reducing
postage rates on correspo