Treasury, and to inform the officer in advance of such defects as require to be remedied before a final settlement can be made. After this examination the accounts, are returned to the auditor for final examination and settlement.

The property returns are transmitted direct to this office, and after a rigid examination, forwarded to the proper auditor of the Treasury for final settlement, as heretofore. I consider the system a good one and advise its continuance.

TRANSPORTATION.

Of the means of transportation, there were on hand at the beginning of the fiscal year, July 1, 1862, 14,842 horses, 16,899 mules, 1,727 oxen, 4,645 army wagons, 551 ambulances, 149 light wagons, 39,366 wheel and lead harness. There were purchased during the year 174,832 horses, 86,254 mules, 60 oxen, 12,730 army wagons, 3,511 ambulances, 77 light wagons, 111,978 wheel and lead harness. There were captured during the year 7,783 horses, 6,915 mules, 223 oxen, 421 army wagons, 104 ambulances, 50 light wagons, 3,013 wheel and lead harness. In all, amounting to 197,457 horses, 110,068 mules, 2,010 oxen, 17,796 army wagons, 4,166 ambulances, 276 light wagons, 154,357 wheel and lead harness.

There were condemned and sold, died, lost by capture, destroyed, worn out, &c., during the year, 57,576 horses, 17,170 mules, 1,486 oxen, 816 army wagons, 232 ambulances, 41 light wagons, and 11,825 wheel and lead harness.

There were on hand at the end of the fiscal year 45,755 horses, 46,226 mules, 1,276 oxen, 10,729 army wagons, 1,805 ambulances, 1,263 light wagons, and 98,817 wheel and lead harness.

Of forage there were on hand at the beginning of tJuly 1, 1862, 22,046,951 pounds oats, 37,417,934 pounds corn, 22,294,697 pounds hay and fodder, 17,250 pounds mixed grain. There were purchased during the year 340,906,893 pounds oats, 282,940,284 pounds corn, 578,113,890 pounds hay and fodder, 95,437,787 pounds mixed grain. There were captured, gained in issuing, &c, during the year 10,394,402 pounds oats, 14,453,870 pounds corn, 28,764,537 pounds hay and fodder, 374,769 pounds mixed grain. In all, amounting to 373,348,246 pounds oats, 335,812,088 pounds corn, 629,173,124 pounds hay and fodder, and 95,829,799 pounds mixed grain.

There have been sold, lost by capture, destroyed, expended, &c., during the year 15,550,268 pounds oats, 33,851,736 pounds corn, 25,152,583 pounds hay and fodder, and 28,172 pounds mixed grain.

The amounts remaining on hand at the end of the fiscal year are 44,495, 38,907,116 pounds corn, 30,960,467 pounds hay and fodder and 21,936,338 pounds mixed grain.

Of coal, there were on hand at the beginning of the fiscal year, July 1, 1862, 914 1/2 tons. There were purchased during the fiscal year 130,820 9/20 tons. There were captured, &c., during the fiscal year 15,477 5/12 tons; amounting to 147,212 22/60 tons.

There have been sold, lost, and expended during the year 82,779 1/12 tons, and remaining on hand at end of the fiscal year 11,821 1/2 tons.

Of public funds, there were on hand at the beginning of the fiscal year, July 1, 1862, $5,201,300.12. There were received from sales of property, &c., during the fiscal year, $1,541,397.50. There have been disbursed during the fiscal year, $212,112,064.65, and the balance on hand at the end of the fiscal year was $14,555,004.80.