Received since June 30, 1862, on account

of damages to arms in hands of troops,

from sales of arms to officers, from

sales of conned stores, and from all

other sources not before mentioned. $146,152.84

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Total.................................. 75,831,774.56

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Amount of expenditures since June 30,

1862................................... 42,313,630.21

In the Government depositories to the

credit of disbursing officers, June 30,

1863................................... 2,505,107.81

Remaining in the Treasury, same date... 31,013,036.54

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Total.................................. 75,831,774.56

The estimates for the next fiscal year have been prepared with care and will not admit of curtailment. They are based not only on the probable wants of the Army during that period, but embrace also the cost of fabrication of all the heavy guns and carriages which the united industrial forces of the large foundries and our arsenals can supply for the better arming of the sea-coast and frontier fort and batteries. Our supply of guns and carriages for these places is now far behind what it should be; and it is not only desirable, but of the utmost importance, that ample means should be placed at the disposal of the department to put them in a complete state of defense as speedily as possible.

The principal articles of military supplies which it is the duty of this department to provide, and which it has procured by fabrication and purchase, and which it has supplied to the Army during the fiscal year ending June 30, 1863, and also the number or or quantity of each which remained on hand at the arsenals and depots at that date, are stated in detail in the accompanying statements.

From these it will be seen that the principal articles procured were:

Field cannon of different calibers...... 1,126

Siege cannon of different calibers...... 335

Sea-coast cannon of different calibers.. 116

CANNON BALLS, SHELLS, and other projectiles.

For field artillery service............. 1,099,622

For siege artillery service............. 106,426

For sea-coast forts..................... 45,947

Artillery carriages for field service... 965

Artillery carriages for siege service... 261

Artillery carriages for sea-coast forts. 307

Mortar beds............................. 99

Caissons, traveling forges, and battery

wagons.................................. 871

Small-arms for foot soldiers............ 1,082,841

Small-arms for mounted troops........... 282,389

Infantry accouterments....sets......... 901,667

Cavalry accouterments.......do......... 18,009

Horse equipments.............do......... 94,639

Artillery harness for two horses, each..

..........................do............ 3,281

Gunpowder..........pounds............... 5,764,768

Lead and lead bullets.......do.......... 48,719,762

Ammunition for artillery....rounds...... 1,435,046

Ammunition for small-arms......do....... 259,022,216

Percussion-caps......................... 347,276,400

Friction-primers........................ 3,925,369

In addition to the foregoing principal articles, finished complete, an immense amount of material has been prepared and advanced to different stages toward completion at the arsenals, embracing iron and wood work for artillery carriages and implements, projectiles and ammunition of all kinds for cannon, bullets for small-arm cartridges, leather work for harness, equipments, and accouterments. A large