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ton of annual revenue within five years, ending 1st July, 1928, of $4Y3, ,79o, sum exceeding by $19;654, a similar increase for eleven years preceding 1923, and fall ing short only $l65, AIS, of being equal 10 the total revenue of the Department in 1912.

 Within the same time there have been established 3,O52 additional post offices, being greater number than was in opera ton in tue United States in 1915.

 From the most accurate calculation that can be made for the year ending July 1st, 1923. the mail was transported in stages four millions four hundred and eighty-nine thousand seven hundred and forty-seven miles: and on horseback, five million five hundred and eleven thousand four hund- red and ninety six miles; making total transportation of ten millions one hundred thousand two hundred and forty miles an- nually. Since that period there has been added transportation of one million nine hundred and forty nine thonsand eight hundred and fifty miles annually in stages and on horseback one million six hundred and fifty eight thousand nine hundred and forty nine miles; making an increase of three millions six hundred and eight thous- and eight hundred and forty nine miles, which adds two hundred and seventy five thousand and fifty three miles more than one third, to the mail establishment of the country in 1923. And the augmented stage conveyance falls short only two hun dred and ninety five thousand and twenty two miles of being eqnal to. .one-half of the entire stage transportation in the Union at that time. This extension of the mail has been accompanied by great increase of cx- petition OR almost all the important routes. On many of them it is now conveyed at the rate of one hundred miles day.

 As Congress at their last session declin- ed making any appropriation ot the surplus funds of the Department,w with the expecta- tion, as we believed that they should be ap- piled in diffusing mail facilities throughout the Union, and increasing them where re- quired by the public interest, and augmen- tation to the conveyance of the mail olive hundred and thirty seven thousand two hundred and sixty four miles in stages, and two hundred and sixty-one thousand sev- en hundred and four miles on horseback :; making a total of seven hundred and nine weight thousand nine hundred and sixty miles, has been made the past year. This with the additional compensation to post masters, arises from increased receipts, the accumulation of free letters, for which two cents each are paid, and incidental expen- ses, has added to the expenditures of the Department within the year, the sum of two hundred and fifty thousand six hund- red and ninety-four dollars forty six cents, the, augmented revenue of the Department since the 1st ofJuly, 1923, has been suffi- cient to meet the annual expense incurred by the increase of mail facilities and leaves the sum of one hundred and eighty thousand three hundred and two dollars & fifty two cents uneApended.

 It is believed to be good policy to keep the funds of the Department actively em- ployed in extending its operations, until the reasonable wants of every community shall be supplied. By withdrawing mail accom- modations from unproductive routes, and substituting horse for stage transporta- tion on many others, a very large surplus of funds would annually accumulate: but the public convenience would be greatly less ened, and the means of information with held from districts of the country scarcely inhabited. There is no branch of the Government in whose operations the peo- pie feel more lively interest than those of this Department it's facilities felt in the various transactions of business, in the plea- sures of correspondence, and the general diffusion of information. In the course of every year.no inconsiderable amount of the active capital of the country, in some form or other, passes through the mail. To connect important places by frequent lines o1 intercourse, combine speed with all the security possible and extend the mail wherever 1t may be wanted, constitute the objects which have influenced the policv ofthe Department.

 It may be advantageous to the public & the Department, at some future time for if to become insurer for monies transmitted in the mail, become authorized to charge a higher rate of postage in such cases, to in- demnify for the risk incurred. To guard against frauds, this responsibility must ne- cessarily be limited to packets mailed at the principal offices, under such regulations as shall afford the greatest possible securi- ty.

 Some pains have been taken to ascertain