arranges the payments to the troops, and superintends the performance of all the duties required of the Pay Department in such district. I believe it to he highly important for the interests of the service that these chief paymasters should have a rank above their subordinate officers, and would respectfully recommend that Congress be requested to authorize the appointment of a limited number of paymasters, say twenty-three, with the rank of lieutenant-colonel, to be chosen from among the most efficient officers of this department now in service, and who can then be detached as chief paymasters of districts, or for such other special duty as may be of particular importance. The additional expense to the Government under this plan will be less than $7,000 per annum, and can be much more than compensated by the increased, efficiency of the force and the ability to dispense with the services of several paymasters now required in the different pay district and who will not be needed under such new organization. During the Mexican war it was found necessary to appoint two deputy paymasters-general, with the rank of lieutenant-colonel, for a similar duty, and that grade and number of officers are still retained, but are entirely inadequate for the large of paymasters now in service and the numerous and widely separated armies,&c., in which payments should be properly superintended. The large increase of the number of paymasters, the consequent multiplication of the if accounts, and the other constantly increasing business of the Paymaster-General's Office have rendered an addition to the number of clerks authoritized for this office absolutely essential. I would, therefore, respectfully request that authority be asked to increase the clerical force by adding five clerks of class three, ten clerks of class two, and fifteen, clerks of class one.

I have the honor to be, sir, very respectfully, your obedient servant,

T. P. ANDREWS,

Paymaster-General.

PAYMASTER-GENERAL'S OFFICE,

Washington, December 4, 1863.

Honorable E. M. STANTON,

Secretary of War:

SIR: In obedience to your instructions I have the honor to submit the following supplemental report concerning the operations of the Pay Department of the Army from the close of the last fiscal year, ending June 30, 1863, to November 30, 1863. This report I respectfully request may be considered in connection with the one made on November 3, 1863:

On June 30, 1863, there was in hands of paymasters the

unexpendent sum of .............................. $34,279,702.35

There was also in the Treasury, in the shape of

requisitions in favor of various paymasters, not

then issued, the sum of .......................... 32,816,000.00

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Making a total then to be accounted for of........ 67,095,702.35

Between June 30, 1863, and November 30,

1863, requisition in favor of paymasters were

made to the amount of............................. 59,100,000.00

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Making thus a grand total to be accounted

for on November 30, 1863, of......................126,195,702.35

Of this amount requisition are still in the

Treasury unissued amounting to.................... 6,500,000.00

---------------

Leaving the amount in the bands of paymasters

for payment up to November 30, and balances

on hand at that date of.......................... 119,695,702.35