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The report of the Postmaster-General shows a most gratifying increase and a most efficient and progressive management of the great business of that Department. The remarkable increase in revenues, in the number of post-offices, and in the miles of mail carriage furnishes further evidence of the high state of prosperity which our people are enjoying.

The report of the Postmaster-General herewith communicated contains a detailed statement of the operations of his Department during the pass year. It will be seen that the income from postages will fall short of the expenditures for the year between $1,000,000 and $2,000,000.

The extension of the free-delivery service as suggested by the Postmaster-General has heretofore received my sanction, and it is to be hoped a suitable enactment may soon be agreed upon. The request for an appropriation sufficient to enable the general inspection of fourth-class offices has my approbation.

Millard Fillmore and his partner, Nathan K. Hall, soon to be Postmaster-General, were of his fold, together with Hiram Barton, the city's mayor, and other figures locally noteworthy. Fillmore was only an accidental President, dominated, no doubt, and dwarfed in the perspective by greater men, while the part he played in a great crisis brought upon him obloquy with many good people.

The suggestion of the Postmaster-General that the insurance of the safe transmission of moneys by the mail might be assumed by the Department for a moderate and competent remuneration will deserve the consideration of Congress. A report from the commissioner of the public buildings in this city exhibits the expenditures upon them in the course of the current year.

The President took his seat directly opposite the Speaker, and the seats at his right hand were occupied by Secretaries McCulloch, Stanton, Welles, Harlan, Postmaster-General Dennison, and Attorney-General Speed. Secretary Seward's health was so precarious that it did not permit him to be present. Mr.

In his last annual report the Postmaster-General recommended a reduction of postage to rates which he deemed as low as could be prudently adopted unless Congress was prepared to appropriate from the Treasury for the support of the Department a sum more than equivalent to the mail services performed by it for the Government.

Once, in complaining to Jay that the Postmaster-General under the Confederation had delayed the Virginia mails by using horses and showing an antipathy to patronising the stages, Washington had said: "It has often been understood by wise politicians and enlightened patriots that giving a facility to the means of travelling for strangers and of intercourse for citizens was an object of legislative concern and a circumstance highly beneficial to any country."

No such increase as that shown for these three years has ever previously appeared in the revenues of the Department. The Postmaster-General has extended to the post-offices in the larger cities the merit system of promotion introduced by my direction into the Departments here, and it has resulted there, as in the Departments, in a larger volume of work and that better done.

The deficiency as stated in the bill amounted to $3,838,728, but after a careful settlement of all these accounts it has been ascertained that it amounts to $4,296,009. With the scanty means at his command the Postmaster-General has managed to pay that portion of this deficiency which occurred in the first two quarters of the past fiscal year, ending on the 31st December last.