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General object.

Expenditures Appropriations Estimates for the fiscal for the fiscal for the fiscal year ended

year ending year endidg June 30, 1901. june 30, 1902. June 30, 1903.

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MILITARY ESTABLISHMENT-continued.
Engineers' depot and school
Equipment of engineer troops.
Assistants to engineer officers.
Ordnance Service..
Ordnance, ordnance stores, and supplies.
Manufacture of arms...
Ammunition for morning and evening gun
Artillery targets........
Military Academy.....
Emergency fund, War Department
Expeditionary force to Cuba.
Total military establishment....

PUBLIC WORKS.
Arsenals, etc......
Guns and mortar batteries
Torpedoes for harbor defense.
Sites for fortifications and seacoast defenses.
Preservation and repair, and plans for fortifications..
Bea walls and embankments
Armament of fortifications...
Board of Ordnance and Fortification...
Other fortifications appropriations ....
Buildings and grounds in Washington, etc.
Erection of monuments, etc..
Buildings and grounds, Military Academy.
Military posts ....
National military parks ..
River and harbor improvements under the continu-

ing-contract system .... River and harbor improvements under the Missis

sippi River Commission River and harbor improvements under the Missouri

River Commission..... Improving rivers and harbors under the Chief of Engineers

Total public works .......

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MISCELLANEOUS.

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National cemeteries, etc........
Surveys, maps, etc .....
Artificial limbs and appliances...
California Débris Commission..
National Home for Disabled Volunteer Soldiers
Aid to State and Territorial homes......
Bringing home the remains of officers, soldiers, and

civil employees who die abroad....... Prevention of deposits, harbor of New York Miscellaneous items.......

Total miscellaneous..
Grand total.....

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Expenditures from indefinite and permanent annual appropriations and appropriations for war claims and relief acts are not included in

the above statement, but are shown in Appendix H to this report, which is a complete and detailed statement of all appropriations under the direction of the War Department for the fiscal year ended June 30, 1901, showing the balances from appropriations of the preceding fiscal year, the amount appropriated under each title of appropriation, the amount drawn from the Treasury upon requisition, and the unexpended balances June 30, 1901.

There was allotted to the War Department from the $50,000,000 national defense fund (act of March 9, 1898) the sum of $18,969,627.68 for the purposes indicated in the following tabulated statement: Condition of the special emergency appropriation for national defense (war) under the War

Department.

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The expenditures from this fund during the past fiscal year amounted to $900,233.

The balances shown in the above statement as remaining to the credit of the several bureaus of the War Department on June 30, 1901, have been held by the Comptroller of the Treasury to be no longer available for expenditure, the appropriation having lapsed on June 30, 1901, by reason of the limitation of the acts of March 9, 1898 (30 Stat., 274), and January 5, 1899 (30 Stat., 781).

The summary of expenditures for the fiscal year 1901, appropriations for 1902, and estimates for 1903, is as follows:

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I annex hereto, marked “Appendix I,” a statement of the fisca. affairs of Cuba for the year ended June 30, 1901, showing the classified revenues and expenditures, compared with the previous year; and as “Appendix K,” a schedule showing the revenues and expenditures in the Philippine Archipelago, and the customs receipts, by ports, from the date of the American occupation, August 28, 1898, to June 30, 1901.

I submit herewith the annual reports of the heads of the bureaus of the War Department and of the Lieutenant-General commanding the Army, to which are appended the reports to him by the AdjutantGeneral, the Inspector-General, and the division and department commanders, including separate reports of military operations in the Philippine Islands and of the termination of military operations in China.

I also submit separate final report on civil affairs within his jurisdiction from Maj. Gen. Arthur MacArthur, late military governor of the Philippine Islands.

The report of Brig. Gen. Leonard Wood, military governor of Cuba, when received will be submitted as a supplemental report.

The reports of the Board of Ordnance and Fortification; the commissioners of national military parks; the Board of Visitors to the United States Military Academy at West Point; the Superintendent of the United States Military Academy; the Board of Commissioners of the Soldiers' Home, District of Columbia; of inspection of the Soldiers' Home, District of Columbia, and inspection of the National Home for Disabled Volunteer Soldiers are also submitted.

I submit also the report of the Philippine Commission for the period ending September 1, 1901, received in Washington on Thursday, the 21st instant.

ELIHU Roor,

Secretary of War.

APPENDIX A.

MEMORANDUM FOR A GENERAL ORDER.-SUBJECT: INSTRUCTION OF OFFICERS.

With a view to maintaining the high standard of instruction and general training of the officers of the Army and for the establishment of a coherent plan by which the work may be made progressive, the Secretary of War directs that the following general scheme be announced for the information and guidance of all concerned:

THE SYSTEM OF INSTRUCTION.

There shall be, besides the Military Academy at West Point, the following schools for the instruction of officers of the Army:

1. At each military post an officers' school for elementary instruction in theory and practice. 2. Special service schools

a. The Artillery School at Fort Monroe, Va. b. The Engineer School of Application, Washington Barracks, D.C. c. The School of Submarine Defense, Fort Totten, N. Y. d. The School of Application for Cavalry and Field Artillery at

Fort Riley, Kans. e. The Army Medical School, Washington, D. C. 3. A General Service and Staff College at Fort Leavenworth, Kans.

4. A War College for the most advanced instruction at Washington Barracks, D. C.

The War College shall be under the immediate direction of a board of five officers detailed from the Army at large and the following ex officio members:

The Chief of Engineers.
The Chief of Artillery.
The superintendent of the Military Academy.
The commanding officer of the General Service and Staff College.

The War College Board shall exercise general supervision and inspection of all the different schools above enumerated, and shall be charged with the duty of maintaining through them a complete system of military education, in which each separate school shall perform its proper part. Such officers as shall be requisite to assist the board in performing its duties will be detailed from time to time for that purpose. It

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