enabled the department to meet successfully all the requirements of the war, and to keep an army of great magnitude operating over no limited space adequately supplied at all points with ordnance and ordnance stores in quantity and quality heretofore, it is believed unsurpassed. In this connection I would also beg leave to call your attention to the military store-keepers and paymasters of the Ordnance Department. It is believed that no class of officers, in view of their responsibilities and duties, are so inadequately compensated; and I see no just reason why they should not be, within certain limits, placed upon the same footing with paymasters and quartermasters of the Army.

The enormous increase in the Army during the year 1861 has, necessarily, greatly augmented the business of this office, and hence it became indispensably requisite that some system should be adopted by which this vast increase could be managed and controlled. During the past year this has been most successfully accomplished. The office is now separated into eleven divisions, each distinct in its duties and organization, but each forming part of the whole system of executive administration. Each division is in charge of an experienced clerk, through whom all business appertaining to the division is conducted. There are now in the hands of the Army, and stored at the forts, floating property to the amount of over $40,000,000. The property accountability for these stores is a most important matter, and here the value of the system introduced is well illustrated. The number of property returns received during the year 1862 was 2,690. During the same period there were 20,000 officers who were accountable for ordnance stores, from whom 80,000 returns were due, but from whom only the above number were received; whereas the number of such returns which will be received at this office during 1863 is estimated at 60,000. In the other divisions of the office the absolute necessity of the system introduced is daily shown.

Congress at its least session increased the clerical force in this office to thirty-six. Since that time this number has been found totally inadequate to meet even the demands of the daily business, much less to prepare and arrange the necessary data which should be always at hand in an important department like this. After a most careful consideration of the subject I most earnestly recommend that this force be increased so as to authorize six clerks of class four; nine of class three; fifteen of class two, and one hundred of class one; three folders and pressmen, and seven messengers. It will require this entire forc for at least one year to bring up the arrears and enable this department to keep up with the advance of the times.

I cannot conclude this report without calling your attention to the many facilities and courtesies which have been extended to this department by the very efficient Ordnance Bureau of the Navy, and which it affords me much gratification to acknowledge, and also to state that the two branches of the service act in harmonious concert to promote the greatest good to the public interest intrusted to them. I have the honor to remain, very respectfully, your obedient servant,

GEO. D. RAMSEY,

Brigadier-General and Chief of Ordnance.