The results of the recruitment under the act of July 4, 1864, for recruiting in rebel States. are reported as unfavorable.

Fourth. Commutation money received up to November 1, 1864, from drafted men, while permitted by law to secure exemption by payment of $300 each, is appropriated by act of Congress "for the expenses of draft and for the procuration of substitutes." A large part of it has been used, and the remainder is required for other purposes.

Fifth. The Provost-Marshal-General reports activity on the part of his officers in the arrest of deserters and stragglers, 39,392 having been arrested between October 1, 1863, and October 1, 1864, the total number arrested, from the establishment of the Bureau to October 1, 1864, being 60,760.

Sixth. The Provost-Marshal-General reports the Veteran Reserve Corps as consisting, October 1, 1864, of 764 officers and 28,738 men; its discipline and instruction good, and that the entire corps is doing duty which would otherwise have to be performed by an equal number of able-bodied troops detached from the armies in the field; and that it is yet inadequate in number to fill the demands made upon it.

Seventh. The medical statistic of the drafts, presented in series of tables, are referred to by to Provost-Marshal-General as worthy of special attention.

Eighth. The total disbursements on account of enrollment and draft, including all the expenses of the Bureau for the year ending October 31, 1864, are given at $4,016,728.55. The amount expended during the year ending September 30, 1864, from the appropriation for collecting, organizing, and drilling volunteers, is given at $4,199,071.17. Amount expended from same found during preceding year, $7,789,237.40. Amount expended during the year ending September 30, 1864, for pay of advance bounty to volunteers, $14,658,203.

No appropriation of money is asked for any branch of this Bureau during the ensuring year.

As will appear from the accompanying report of the Judge- Advocate-General,* the business of this Bureau has continued steadily to increase. Its important duties are believed to be faithfully performed, while, as was anticipated, the new organization given to the office by the act of last session is found to have added much to the efficiency of its operations. A digest of the opinions of the Judge-Advocate- General upon current questions of military law, which has been published and distributed throughout the Army, will, while affording valuable instruction to inexperienced officers, contribute to produce that infirmity of decision and action so much to be desired in the administration of military justice.

The general exchange of prisoners effected under the instructions of this Department by Lieutenant-General Grant is in course of diligent execution, and it is hoped hat all of our prisoners who are in the hands of the rebels will soon be returned. A furlough of thirty days is extended to them as they are returned to the camp at Annapolis.

To the chiefs of bureaus and their subordinates the thanks of this Department are due for their unwearied industry, vigilance, and general fidelity in the discharge of their respective duties.

EDWIN M. STANTON,

Secretary of War.

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