regiments. There are also six special depots for recruits enlisted in rebel States by agents from loyal States.

Boards of examination have been kept up to inquire into causes of absence from duty and alleged offenses by officers. The effect has been to diminish the number of cases published and referred to the boards to 364 for eleven months, whereas before their organization from 100 to 200 were reported monthly for absence without leave alone.

The status of chaplains seems to be misunderstood. From the wording of the act of April 9, 1864, section 1, it is thought by some chaplains that a new rank between the grandees of major and captain is intended for them. This is supposed to be an error growing out of the use of term 'surgeon" in the act instead of "medical officer." The former assimilated rank of chaplains, in reference to allowance of quarters and pay proper, was "captain," and such should now be their rank.

Over 200 flags, captured from the rebels, have been received, properly labeled, and deposited for safe-keeping.

Medals of honor have been awarded in numerous instances to privates and non-commissioned officers for gallant services. The plan of awarding gold and silver medals to officers instead of brevets, to a certain extent, is commended to notice. It should not supersede the conferring of brevet, especially in cases where such rank might be exercised in thigh commands.

The work of preparing official reports of battles, &c., for printing, in compliance with the resolution of Congress of May 19, 1864, is progressing as rapidly as possible, and all officers from whom such reports are due have been called upon for them.

The Paymaster-General reports that the entire Army is paid to Augusta 31, 1864, or in process of pay as rapidly as the Treasury can supply funds.*

He calls attention to the defective organization of his Bureau, and strongly urges that the Paymaster-General have the rank of brigadier-general; that there be two assistant paymaster-generals with the rank of colonel, and ten deputy paymaster-generals, in addition to the two now provided by law, with the rank of lieutenant-colonel. He also recommends the adoption of a provision of law to the effect that any paymaster or additional paymaster selected by the Secretary of War to take charge of a geographical pay district shall have the temporary rank of lieutenant-colonel during such charge.

He also reports that the clerical force of his Burau is efficient, and that no increase is believed to be at present required.

The Chief of Ordnance reports that the fiscal affairs of that Bureau show--+

Balance July 1, 1864............................... $3,122,979.11

Appropriations..................................... 42,015,000.00

Miscellaneous receipts............................ 141,023.01

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Total means........................................ 45,279,002.12

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- Expenditures during the year...................... 38,502,822.99

In Treasury and public depositories June 30,

1864............................................... 1,797,387.16

Amount of appropriation remaining in

Treasury same date................................. 4,978,791.97

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45,279,002.12

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*For report of the Paymaster-General see p. 869.

+For report of the Chief of Ordnance see p.799.

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