The further pruchase of animls and supplies was prohibited and officers urged to reduce expenses. In consequence of this order, immense quantities of camp and garrison equipage, quartermaster's stores, and serviceable transportation was poured into the depots. The store-houses were filled to repletion, and the labor incident to the receipt and proper disposal of such a vast amount of material increased the labor of the department for a while, but with the disposal of this property came a lull, which was taken advnatage of to further systematize and reduce expenses. Simultaneous with the order above alluded to, circular were issued directing immediate steps to be taken to cause all unserviceable property to be inspected with a view to its condemnation and sale. So well was this matter attended to that at the time General Orders, Numbers 113, War Department, current series, was received, a large quntity of stores at Nashville, already duly inspected and condemned, was advertised for sale. The sale was at once postponed, and the list of stores submitted for action in accordance with the order. In the meantime the vast amount of stores accumulated at the depots were concentrated in as few warehouses as possible, and all private buildings not reuqired for the public service returned to their owners. At the depot of Nashville quite a number of hospitals were vacated by the medical department. The most of these buildings were churches, and in several instances orders were given for their repair. In a number of cases, however, and solely with a view to reduce the number of employes, I had an estimate made by my master mechanic of the damage done and the cost of repair, and then proposed to the trustees that they should take a certain sum of money, say 15 per cent. less than the estimate of my master mechanic, and forego all claims against the United States for damages. When such propositions were accepted I have submitted the same to you, with the recommendation that the money be paid. I have no doubt that ultimately all claims for damages to buildings occupied by the United States belonging to loyal owners will be paid. As time rolls by these claims will swell in amount, and my opinion is that they had better be settled at once, on estimates made by ourselves, instead oto be made by others who will be interested in presenting them.

STATEMENT OF PUBLIC MONEYS.

On hand July 1, 1864............................ $720,516.68

Received from officers during the year......... 2,044,005.97

Received from Treasury Department during the

year............................................23,431,470.06

Received from sales of property and other

sources during the year......................... 9,730.72

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Total...........................................26,205,723.43

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Expended during the year........................

Transferred to other officers during the year...24,821,005.79

Remaining on hand June 30, 1865................. 1,384,717.64

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Total...........................................26,205,723.43

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The balance on hand is deposited as follows:

Assistant Treasurer United States, New York..... 376,743.04

First Nationa Bank, Philadelphia, Pa............ 1,007,974.60

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Total........................................... 1,384,717.64

In this connection I wish to call your attention to statements (marked Exhibit Numbers 2*) of my disbursing officer, Captain Charles T. Wing, assistant quartermaster, appended to this report. Captain Wing has performed

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*Omitted.

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