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ward repaid to the remitters; and the number paid in the United States was 2,053, amounting to $53,795.72.

The fees received for Swiss orders issued amounted to $2,296.25.

A comparison of this business with that of the previous year exhibits an increase of $12,655.41, or 15.89 per cent., in the amount of orders issued; of $13,370.77, or 33.08 per cent., in the amount of orders paid; and of $339, or 14.77 per cent., in the amount of fees received. The Auditor's statement of the Swiss revenue and expense account for the year ended June 30, 1877, is as follows:

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EXCHANGE OF MONEY-ORDERS WITH GREAT BRITAIN.

At the commencement of the last fiscal year 1,003 money-order offices were in operation, authorized to issue orders payable in the United Kingdom of Great Britain and Ireland, and to pay orders drawn in that country. Eleven offices were added to the list during the year, making a total of 1,014 in operation at its close.

The number of such orders issued in the United States during the year was 55,346, amounting to $807,183.32, of which amount $2,960.47 was afterward repaid to the remitters; and the number paid was 21,167, amounting to $363,203.18.

The fees received for orders issued amounted to $25,075.75.

A comparison of this business with that of the previous year shows an increase of $1,844.69, or 0.23 per cent. in the amount of the orders issued; a decrease of $29,563.01, or 7.53 per cent., in the amount of the orders paid; and a decrease of $581, or 2.26 per cent., in the amount of fees received.

The Auditor's statement of the revenue and expense account with Great Britain for the year ended June 30, 1877, is as follows:

Amount received for fees on orders issued.....
Net loss...

$25, 656 75

2,084 18

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EXCHANGE OF MONEY-ORDERS WITH GERMANY.

At the commencement of the last fiscal year 628 money-order offices were in operation authorized to issue orders payable in the German

Empire and to pay orders drawn in that country; 31 offices were added to the list during the year, making a total of 659 in operation at its close.

The number of such orders issued in the United States during the year was 43,314, amounting to $783,416.84, of which amount $4,326.80 was afterward repaid to the remitters; and the number paid was 29,411, amounting to $666,812.70.

The fees received for orders issued amounted to $21,610.50.

A comparison of this business with that of the previous year exhibits an increase of $51,543.04, or 7.04 per cent., in the amount of orders issued; a decrease of $37,023.66, or 5.26 per cent., in the amount of orders paid, and an increase of $1,474.70, or 7.32 per cent., in the amount of fees received.

The Auditor's statement of the revenue and expense account with Germany for the year ended June 30, 1877, is as follows:

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EXCHANGE OF MONEY-ORDERS WITH CANADA.

At the commencement of the last fiscal year 352 money-order offices were in operation, authorized to issue orders payable in the Dominion of Canada, and to pay orders drawn in that country; 23 offices were added to the list during the year, making a total of 375 in operation at its close.

The number of such orders issued in the United States during the year was 13,586, amounting to $259,382.43, of which amount $1,186.44 was afterward repaid to the remitters; and the number paid was 20,134, amounting to $339,184.89.

The fees received for orders issued amounted to $6,054.50.

A comparison of this business with that of the previous year exhibits an increase of $32,166.21, or 14.15 per cent., in the amount of orders issued; of $41,346.89, or 13.88 per cent., in the amount of the orders paid, and of $820.90, or 15.69 per cent., in the amount of fees received. The Auditor's statement of the revenue and expense account with Canada for the year ended June 30, 1877, is as follows:

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EXCHANGE OF MONEY-ORDERS WITH ITALY.

In pursuance of the provisions of the postal convention between the United States and the Kingdom of Italy, which was concluded at Wash ington on the 31st day of March, 1877, the exchange of money-orders with the latter country commenced on the 2d day of July, 1877. During the year 142 money-order offices in the United States were authorized to issue orders for payment in the Kingdom of Italy and to pay orders drawn in that country.

The number of Italian orders issued in the United States during the year was 3,949, amounting to $105,433.53, of which amount $409.50 was afterward repaid to the remitters; and the number of such orders paid was 281, amounting to $7,871.42. The fees received for orders issued amounted to $2,816.50.

GENERAL FINANCIAL RESULTS OF MONEY-ORDER BUSINESS.

The gross number of domestic and international money-orders issued during the year was 5,733,905, amounting to $83,490,061.73; and the gross number paid, 5,652,387, amounting to $82,202,323.11.

To the net revenue derived from the transactions of the domestic money-order business, reported by the Auditor at $202,952.37, should be added the net revenue derived from the exchange of money-orders with foreign countries, not yet ascertained by the Auditor, but estimated at $9,000. This estimate makes the total net revenue for the year $211,952.37, exclusive of the additional expenses, paid out of appropriations, hereafter mentioned.

In addition to the expenses enumerated in the foregoing statement made by the Auditor, the following items of expense, amounting to $208,923.91, which are fairly chargeable to the money-order system, were paid out of general appropriations, viz: Salaries in the superintendent's office, $35,642.86; salaries in the money-order division of the Auditor's office, $112,200; books, blanks, and printing furnished for the moneyorder system by the Public Printer, $56.081. 05; and books, blanks, and stationery not included in the last item, estimated at $5,000.

NET REVENUE OF MONEY-ORDER BUSINESS.

After deducting the above-enumerated items of expense from the total net revenue, stated as above at $211,952.37, there remains an absolute net profit to the credit of the system amounting to $3,028.46 in excess of all legitimate expenses.

The sum of $209,647.89, being the net proceeds of the domestic moneyorder business for the fiscal year ended June 30, 1878, added to the net proceeds of the international business for the previous year, as reported by the Auditor, has been deposited with the Treasury Department to the credit of the United States for the service of the Post-Office Department. The sum of $201,162.45, due the postage account, by reason of the excess of transfers, heretofore mentioned, from that account to the money-order account, has been paid over.

FOREIGN MAILS.

WEIGHT OF MAILS.

The total weights of the mails dispatched from the United States to Postal Union countries during the year were as follows: Letters, 96,398,276 grams, equal to 3,400,711 ounces; printed matter and samples, 411,842,398 grams, equal to 14,528,862 ounces, being an increased weight, over 1877, of 176,284 ounces of letters, and 1,219,975 ounces of printed matter and samples. A statement is appended of the weight of mails dispatched to each Postal Union country. (Pages 413-417.)

The number of letters exchanged with other countries not embraced in the General Postal Union, the Dominion of Canada excepted, was 697,551, of which number 394,313 were sent to, and 303,238 received from, such countries.

COST OF OCEAN MAIL SERVICE.

The total cost of the United States Ocean Mail Service, for the year 1878, was $197,276.15, being a reduction of $10,310.18 from the cost of the same service for the year 1877. Of this sum, $152,661.13 was paid for the trans-Atlantic service, $9,389.25 for the trans-Pacific service, and $35,225.77 for the service to Canada, the West India Islands, Mexico, Central American and South Pacific States, Venezuela, Brazil, Uruguay, and the Argentine Republic. The particulars of these several services are appended to this report, page 371.

The additional sum of $24,792.22 was recognized and paid to the steamship companies for the transportation of British closed mails from New York to England from April 1, 1876, to September 30, 1877, inclusive; and credit claimed therefor by this department in the quarterly accounts with the British office.

POSTAL CONVENTIONS.

A postal convention was concluded with the Colonial Government of Victoria (Australia) on the 28th of June, 1878, regulating the exchange of correspondence with that colony, a copy of which appears on page 375 of the Appendix.

An amended article to replace Article 3 of the postal convention between the United States and the Colonial Government of New Zealand has been executed by the respective post departments, a copy of which will be found on page 374. This article provides for the full prepayment of postage on printed matter, &c., to destination in either country.

ADMISSIONS TO THE GENERAL POSTAL UNION.

The territory of the General Postal Union formed by the treaty of Berne has been enlarged by the accession of the following countries and

colonies under the provisions of the special arrangement signed at Berne the 27th of January, 1876, viz :

The Argentine Republic, admitted from April 1, 1878.

The Dominion of Canada, admitted from July 1, 1878.
Peru, admitted from October 1, 1878.

Newfoundland, British colonies on the west coast of Africa (Gold Coast, Senegambia, Lagos, and Sierra Leone), the Falkland Islands, and British Honduras, admitted from January 1, 1879.

Copies of the several diplomatic acts confirming the admission into the General Postal Union of these several countries and colonies are appended to this report.

THE INTERNATIONAL POSTAL CONGRESS.

The International Postal Congress, called to revise and improve the system of the General Postal Union established by the treaty of Berne, was convened at Paris on the 1st of May, and continued in session until the 4th of June, 1878. The following countries and colonies were represented by delegates: The United States, Germany, the Argentine Republic, Austria, Hungary, Belgium, Brazil, Chili, Denmark, the Danish Colonies, Egypt, Spain, the Spanish Colonies, France, the French Colonies, Great Britain, certain British Colonies, British India, Canada, Greece, Hayti, Hawaiian Islands, Italy, Japan, Liberia, Luxemburg, Mexico, Montenegro, Norway, the Netherlands, the Netherland Colonies, Peru, Persia, Portugal, the Portuguese Colonies, Roumania, Russia, Servia, Salvador, Sweden, Switzerland, Uruguay, Venezuela, and Turkey.

THE UNIVERSAL POSTAL UNION.

A new convention extending and perfecting the provisions of the General Postal Union treaty concluded at Berne on the 9th of October, 1874, was agreed upon and signed on the 1st of June, 1878, by the delegates of all the above-mentioned countries and colonies except those of Chili, Hayti, Hawaiian Islands, Liberia, Uruguay, and Venezuela, who, although approving of its provisions, were unable to sign, not having received from their respective governments the necessary powers to that effect. This convention forms, under the title of "Universal Postal Union," a single postal territory for the reciprocal exchange of corre spondence of every kind between the Post Departments of the countries which concluded it, or which may hereafter be admitted to be parties to it, upon their demand diplomatically notified to the Swiss Government and by that government to all the countries of the Union.

PROVISIONS OF THE NEW POSTAL CONVENTION.

No change is made in the present low Union rates of postage for letters and post-cards, but many modifications of existing rates and regulations are adopted, the principal of which are

1. A reduced sea-transit charge of 15 francs per kilogram of letters for

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