to say that the water transportation has been chiefly under the supervision of Major Kirkham, quartermaster, to indicate that it has been promptly and efficiently performed, and with a constant reference to all practicable economy. Our land transportation has been performed in part with our own six-mule teams and army wagons, in small part (as in the mountainous of the Humboldt district) by pack-mule trains, and upon the longer and principal routes by contract. Forage supplies in Arizona and Nevada during the past year have been very limited and the price very high. In most other portions of the late Department of the Pacific they have been abundant and much more reasonable in price. At the present period forage of all kinds, except on the extreme frontiers, is 100 per cent. lower than I ever before knew it to be in the Department of the Pacific. We are sufficiently provided with all necessary quartermaster's stores. Excepting in some few articles, our supply of clothing is ample to meet out wants until the receipt of our annual supply from the East in October. The exceptions can be purchased here on very favorable terms. I have been greatly aided and the Government greatly benefited by the receipt of funds upon back estimates up to the 28th of February last, inclusive, by which many old claims were paid off, the credit of the Government better sustained, and purchases made on better terms for cash. Owing to the very considerable appreciation of "legal tenders," I have been able to pay all claims three months ahead of my received estimates, and have been able to omit my estimate for funds for the month of August, instant. (See my letter of July 10, 1865.) In consideration of the prospect of active service Arizona, I respectfully suggest the expediency of forwarding the amount of my estimates for March and April at an early date.

Respectfully submitted.

Your obedient servant,

E. B. BABBITT,

Colonel and Chief Quartermaster.

Statement of public funds received and expended on account of the Quartermaster's Department during the fiscal year ending June 30, 1865, by Colonel E. B. Babbitt, chief quartermaster Department of the Pacific, San Francisco, Cal., made in compliance with General Orders, No. 39, Quartermaster-General's Office, Washington, July 1, 1865.

Received from officers during the year............ $24,331.00

Received from the Treasury Department

during the year.................................. 6,340,024.00

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

Total............................................. 6,364,355.00

============

Expended during the year.......................... 10,714.26

Transferred to officers during the year........... 5,467,022.20

Remaining on hand June 30, 1865.................... 886,618.54

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Total............................................. 6,364,355.00

============

The balance on hand is deposited as follows:

In the hands of assistant treasurer of the

United States, San Francisco, Cal................ 871,648.76

In hands of assistant treasurer of the

United States, New York.......................... 14,703.12

In my hands....................................... 266.66

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Total............................................. 866,618.54

E. B. BABBITT,

Colonel and Chief Quartermaster.

CHIEF QUARTERMASTER'S OFFICE,

San Francisco, Cal., August 15, 1865.