reports the financial condition of the Post Office Department at the close of each fiscal year, and such reports are required to be made part of the Postmaster-General's annual report to Congress for that fiscal year. (Act July 12, 1876, Stats. 19, p. 82.)

654. He is required to report to the Postmaster-General any case where the aggregate annual compensation, exclusive of money-order commissions, of a postmaster of the fourth class amounts to one thousand dollars, that such postmaster may be assigned to his proper class, and that his salary may be fixed accordingly. (Stats. 19, p. 82.)

655. The Deputy Auditor supervises the general business of the office, distributes the business to the different divisions, and, as an aid to the Auditor, has a general direction of the clerks and employees. In the absence or sickness of the Auditor he acts in his place.

656. The duties assigned to the several divisions, in the order in which they have been mentioned, are as follow, beginning with

I. THE EXAMINING DIVISION.

657. This division receives and audits the quarterly accounts current of all post offices in the United States. It is subdivided into the opening room, the stamp rooms, the examining corps proper, and the error rooms.

1. The Opening Room.-All returns are opened as soon as received, and if found in accordance with regulations they are entered in the register, and then forwarded to the stamp rooms.

2. The Stamp Rooms.-In this subdivision the returns received from the opening room are divided alphabetically among the stamp clerks, whose duties consist in comparing the stamp statements of postmasters in the accounts current with their own books and with the returns made to

them from the Stamp Division of the finance office, whence stamp orders are issued and receipts for the same received and forwarded to the Stamp Clerk. The returns thus approved or corrected are passed to the examiners.

3. The Examining Corps Proper.-Here the quarterly returns of postmasters received from the stamp rooms are divided among the examiners by sections, each section comprising several States, or parts of States. After the examination of the accounts current and the stamp account, reviewing and refooting the transcript of mails received, and examining all vouchers belonging to that portion of the work, the balance is drawn on all accounts of the third and fourth classes. The returns, thus examined and completed are forwarded to the Registering Division, to be entered upon its books.

4. The Error Rooms.-This subdivision reviews and reexamines the error accounts received from the Registering Division, and forwards to each postmaster a copy of his account as stated by him, and as audited and corrected by the office.

II. THE REGISTERING DIVISION.

658. This division receives from the Examining Divis ion the quarterly accounts of postmasters, reëxamines and registers them, placing each item of revenue and expenditure under its appropriate head. The register in this division exhibits at the end of each fiscal year (June 30) the total amount of receipts and expenditures for that year. To this division is also assigned the duty of entering in the change books, prepared for the purpose, all changes of postmasters, and the establishment, reëstablishment, discontinuance, and change of name of post offices reported from the appointment office.

III. THE BOOK-KEEPING DIVISION.

659. To this division is assigned the duty of keeping the ledger accounts of the department, embracing those of postmasters, late postmasters, contractors, late contractors, and those of a general, special, and miscellaneous character. Other books are kept in this division, viz., a cash book, warrant register, ledger of warrants and deposits, stamp journal, transfer journal, and deposit book: Accounts are also kept with the several appropriations, receipts, and expenditures of the department; with the Treasurer of the United States, the executive departments for official stamps, foreign governments, special agents, and consuls acting as foreign mail agents. This division also prepares and records all requisitions on the Treasury for the service of the Post Office Department.

Over sixty ledgers are opened in this division, containing about forty-three thousand current accounts.

IV. THE STATING DIVISION.

660. This division has charge of the general postal accounts of postmasters, and those of late postmasters until fully stated. These general accounts show the balances due the United States or the postmasters at the end of the quarters.

V. THE COLLECTION DIVISION.

661. To this division is assigned the duty of collecting the balances due from all postmasters, late postmasters, and contractors, and of paying any balances found due to late and present postmasters. It is charged with the adjustment and final settlement of postal accounts. The particular duties in this regard are to examine postal and contractors' accounts carefully, and explain by letter, when

necessary, the correctness of balances due thereon, and to submit for suit or criminal proceedings accounts of defaulting officers and contractors; also to issue drafts upon postmasters and contractors for balances which are required to be paid, and to notify the Post Office Department of balances due to late postmasters; also to compare with the ledgers all accounts of late postmasters, and to close as "uncollectible" or by "suspense" all accounts so designated; also to prepare for suit all cases of defaulting postmasters and contractors, by proper transcript of accounts, and certified copies of official bonds and other papers to be used in evidence.

VI. THE FOREIGN MAIL DIVISION.

662. This division has charge of the postal accounts with foreign governments, and the accounts with steamship companies for ocean transportation of the mails.

VII, THE PAY DIVISION.

663. This division makes collections quarterly, from all collection post offices on the line of mail routes, of balances due the United States, and adjusts and reports for payment all accounts for the transportation of the mails by ocean steamers, railroads, steamboats, mail messengers, mail carriers, or other mode of conveyance; also the ac counts of superintendents and assistant superintendents of the railroad postal service, railway postal clerks, route agents, mail-route messengers, and local agents; also all accounts arising under appropriations for prevention and detection of mail depredations, and for special agents; for the free-delivery system; for postage stamps, postal cards, and envelopes; for postmarking and cancelling stamps; for post-route maps, wrapping paper, twine, mail-bags, maillocks, engraving and printing drafts and warrants; for ad

vertising; for fees of United States attorneys, marshals, and clerks of court in postal suits, &c.

664. All orders issued by the Postmaster-General through the contract office, originating new accounts or affecting old ones, are examined and verified in this divis ion.

665. The accounts of failing bidders and contractors are stated in this division, for collection by suit or otherwise.

666. This division has also the passing and registering of all drafts, and the passing of all warrants for the payment of accounts; also the custody of the archives of the office.

VIII. THE MONEY-ORDER DIVISION.

667. This division is charged with the duty of receiv ing, examining, registering, adjusting, and settling all accounts pertaining to the money-order business. The law requires that the accounts of this business shall be kept separately from all other postal transactions, so as to show the number and amount of money orders issued at each office, the number and amount paid, the amount of fees received, and all the expenses of the money-order business.

The weekly money-order statements of postmasters are here carefully examined; the paid, repaid, and unissued orders are checked by reference to the money orders themselves, which are received in this division from the numerous paying offices, and assorted according to their particular office and their serial numbers. Quarterly statements are made of the accounts of the different money-order offices, showing the transactions each week in orders issued and paid.

668. In this division the money orders received from the numerous offices in immense numbers are critically