The estimated appropriation required for the Medical Department for the next fiscal year is $90,000.

The Pay Department remains without material change. In consequence of additional labors imposed upon this branch of the War Department by recent Congressional enactment, and in order to promptly pay the large issue of Treasury certificates, it was necessary to retain temporarily a number of additional paymasters. The financial summary exhibits-

A balance on hand at the beginning of the fiscal

year...................................... $120,106,999.32

Received from Treasury and other sources

during the year........................... 163,426,228.97

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Total..................................... 283,533,228.29

Accounted for as follows:

Disbursements to Army and Military Academy. $10,431,004.42

Disbursements to volunteers................ 248,943,313.36

Unissued requisitions in Treasury.......... 10,750,000.00

In hands of paymasters June 30............. 13,408,910.51

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

283,533,228.29

The total disbursements of each class during the fiscal year is as follows:

To troops on muster out.................... $205,272,324.00

To troops in service....................... 30,250,010.00

To referred claims......................... 7,662,736.00

To payment of Treasury certificates........ 16,189,247.00

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

259,374,317.00

The estimated appropriations of the Pay Department amount to $17,728,560.60 for pay of the Army for the next fiscal year.

The Corps of Engineers at the close of the fiscal year consisted of ninety-five officers, the battalion of engineer troops, and the Military Academy. Thirteen officers were on detached duty, serving in command of military departments, on special service connected with the levees of the Mississippi River, on the Light- House Board, with the Department of the Interior upon duties relating to the Pacific Railroad, on military surveys and staffs of the General-in-Chief and commanding general of the Military Division of the Gulf; the remainder were diligently engaged in the duties of their profession, officers of desirable experience and practice having direct supervision of the more important works. The engineer troops were distributed between the Military Academy and the two depots of engineers supplies located at Willets Point, N. Y., and at Jefferson Barracks, Mo. The condition of the battalion with regard to discipline and instruction is reported as satisfactory. At the engineer depots much valuable war material has been collected from points where it had remained after the close of active operations in the field, and it is proposed to keep on hand a complete outfit on a moderate scale of such engineer, bridge, and siege equipage as would be most likely to come into requisition to supply unforeseen demands in the field. The Chief of Engineers suggests a modification of the act of June 23, 1866, in respect to the manner of procuring labor and material for improvements of harbors and rivers. The estimated appropriation required by the Engineer Bureau for the next fiscal year is $5,140,000.

66 R R-SERIES III, VOL V