upon all contractors. In many cases this is wholly undeserved, and to none will the advantage be greater than to the bona fide contractors themselves of a change of system which, once in regular operation, will relieve them from imputations of dishonesty or extortion. In no class of persons are the qualities which distinguish the best business men of our country - talent, integrity, enterprise, resource, perseverance - more needed than in them. but if wholesale slurs affecting their character, because of their relations to the Government, finally render the very name of a contractor a reproach, what can be the result, except that the honest and reputable will stand back, and that their places will be filled by men careless of their good name, if only money can be made by the sacrifice?

We beg, therefore, respectfully, to urge the expediency of adhering, in all future contracts for ordnance and ordnance stores, to the principle of advertising, so earnestly impressed by the law and the regulations of your Department. This law and these regulations embody the wisdom which long years of experience have taught, and they rest upon a profound knowledge of human character- of the unscrupulous avarice that is to be baffled on the one side, and of the infirmity which is to be guarded against temptation on the other. The absolute necessity of the course suggested is more powerfully illustrated by the facts we have brought to your notice than it would be by any arguments we could employ. This course on your part would furnish a prompt and complete remedy - and it is the only one - for the evils of extravagance and alleged demoralization, of which so much and such lamentable complaint is heard.

That was interests and influences will array themselves against a restoration of this branch of the service to the basis of the law, may well be expected. Opposition to this great principle, which has so faithfully guarded the public treasury, has been signally manifested in past years, and the success of that opposition opened then a wide field for rapacity on the one hand and fraudulent collusion on the other. The abuse in a particular branch of the service assumed such proportions that Congress, feeling itself called upon to interfere, declared, by solemn enactment on the 31st of August, 1862, that "all contracts, of every description, which have been made without public notice having been given, shall be canceled." While in dealing with illegal and irregular contracts we have sought to act in harmony with the spirit of this legislation, we have done so with a tenderness of regard for the interest of bona fide contractors which, it is believed, will protect our action from all imputations of harshness or injustice hereafter.

We cannot close this report without bearing testimony to the constant aid and support we have derived from Major Hagner, who has been associated with us as an advisory member of the commission. His labors have been arduous and incessant, and this thorough knowledge, as an accomplished ordnance officer, of the subject-matter of all the contracts submitted for our examination, has enabled him to render us invaluable assistance, alike in our investigations and in the preparation of our decisions.

We are, sir, very respectfully, your obedient servants,

J. HOLT,

ROBERT DALE OWEN,

Commissioners.