The distribution of officers and men would then be about as follows:

The battalion of engineers would remain as now with 4 companies of 500 men, making an aggregate of 27,850 of all arms, and a sufficient number remaining for the hospital corps, non-commissioned staff, ordnance detachment, Indian scouts and other unattached men, to make a total of 30,000. When deductions are made for the sick, absentees, etc., the effective strength of the Army would be about 25,000 soldiers and 40 field guns.

The formation desired admits of rapid and great expansion to meet the exigencies of actual warfare, and is especially adaptable to the small force constituting the peace establishment of the United States. Twelve years ago, before retiring from command, Gen. Sherman pointed out the great advantage of the formation in enabling us to put a large and effective force in the field upon short notice, by merely enlisting a sufficient number of additional private soldiers, the officers and organization being always ready for this expansion.

The promotion of 80 lieutenants to regimental adjutants and quartermasters is without expense save as to the cavalry regiments, and this amounts to but $5,600 per annum.

In order that promotions in the different arms of the service may in the future be more nearly equal than in the past, and that a surplus of lieutenants of artillery, not required in the new organization, may be absorbed, it is proposed that a considerable number of those lieutenants should, upon their own application, be transferred to the infantry in present order of relative rank.

Resolving the effect of these changes into money it appears that for pay, rations, and clothing of the increased number of enlisted men proposed an increase of $1,200,000 in annual appropriations will be required. Retrenchment in the administrative branches of the War

Department has reduced expenditures for the current fiscal year by upward of half a million dollars compared with last year, and the estimates contemplate further retrenchment for the coming fiscal year. These economies in the administration of the War Department may properly be turned to the benefit of the Army, and so regarded, the proposed increase in numbers and the higher efficiency in organization of the enlisted men may be obtained at an increase of only about $700,000 over sums hitherto appropriated annually to the War Department.

The proposition outlined contemplates an increase in the number of line officers, involving an increase for salaries of about $200,000. This increase of expenditures should be met and more than overcome by reductions in the expenditures for the staff.

The officers of the Army are now distributed by law to the staff and line of the Army as follows:

Ordinary business prudence suggests a consolidation of the Quartermaster's, Subsistence, and Pay Departments into a bureau of supply, to perform also certain duties connected with the furnishing of sundry articles of equipment now imposed on the Chief of Ordnance. The only reason for their continuance is the fact of their existence in the

past. Their maintenance as separate departments adds largely to the number of officers on staff duty, and involves an expense not justified by the service required.

The simple statement that it cost the Government last year the equivalent of a commission of 12 per cent to buy provisions for the Army, with attendant expenses, exposes the defect of the present system of supply. The disbursements on account of such purchases were $2,168,165, and the expenses $258,026, not including $41,929.40, the salaries of retired commissaries and commissary sergeants.

The expense attending the paying of the Army was $269,739.17, the amount of money disbursed by paymasters being $12,054,152.54, or about 24 per cent, requiring the services of 31 officers, whose lowest rank is that of major. Already a number of posts are paid by check, and with the mail, express, and banking facilities of the present day, and the proximity of troops to towns and cities, this plan could well be extended to cover the entire service, the actual distribution of the funds being devolved on the commandants of garrisons and their subordinates.

The transfer of the duties of these two establishments to the Quartermaster-General would simplify business and effect a marked saving in expense, while the organization of that department would require little increase. If the expediency of this proposition is doubted by Congress, then I earnestly urge the reduction of these departments by the early enactment of legislation suspending further appointments to the Subsistence and Pay corps until the number now fixed by law is considerably reduced.

The decrease in the number of posts-a reduction that must be still further extended—already renders unnecessary and redundant a number of officers in both of these departments. This proposition, together with possible reductions in other staff departments, would go far toward meeting the increased expense for strengthening the efficiency of the line. However contrary to the traditions of the Army these sugges tions may be, they are in accord with the progressive methods of the present day, and it is believed their adoption would work marked benefit to the service.

CONCENTRATION OF TROOPS.

The policy of concentrating the troops and abandoning unnecessary posts has been prosecuted throughout the year. Where practicable small garrisons, remote from railroads, whose further retention has

become unnecessary by a change of conditions, have been consolidated with garrisons at more important centers, thus reducing the cost of maintenance and transportation and utilizing improved facilities for the prompt dispatch of troops to any point where their services may be required.

The changes made have in no instance lessened the protection afforded by the Army to any region in which a garrison has heretofore been stationed, but have considerably augmented the extent of territory over which that protection can promptly and effectively be afforded. Companies hitherto widely scattered have been brought together, as far as practicable, in their respective regimental organizations to promote their efficiency and esprit de corps. Many commands which have served continuously for long periods at isolated posts have received the consideration in more desirable assignments which their arduous services have justly earned. Besides materially adding to the comfort of enlisted men, concentration gives officers the opportunity to become familiar with the maneuvers of larger bodies in battalion and regimental formation.. Improvement in the morale, discipline, and education of the Army has been no inconsiderable additional benefit.

On June 30, 1893, the Army was distributed among ninety-five independent posts. During the last year the number of posts was reduced to eighty, with garrisons ranging from 60 to 750 men. The aggregate area of the military reservations abandoned since the last annual report is upwards of 208,000 acres.

Ten of the twenty-five regiments of infantry have been concentrated at single posts. Sixteen garrisons now exceed in strength a full regiment of infantry, and twenty-two others consist of from four to seven companies each. Nine posts remain garrisoned by single companies, and fourteen by only two companies each. Except in so far as determined by acts of Congress for the creation of posts, the disposition of the Army has been made, according to the best judgment of the Department, to obtain the most useful results for the country from the force available.

It is respectfully urged that the establishment of new military posts by Congress in response to the appeals of local interests is likely to disturb a distribution of the Army which aims to secure with the small force under arms the highest efficiency and the fullest protection for the greatest extent of territory, and that the ambitions of localities should not be favored by legislation at the expense of the general welfare.

All the foot artillery is serving near the seacoast fortifications.

One-half of the field artillery, more than two-thirds of the infantry, and nine-tenths of the cavalry are still retained at posts west of the Mississippi river, while eight regiments of cavalry are in garrisons within or near the great mountain and plain region lying between the onehundredth and the one hundred and fifteenth meridians. It is to the sparsely settled portions of this pastoral and sterile belt that the Indians would resort in the event of their breaking away from their reservations.

The distribution of the Army by geographical departments on October 31, 1894, was as follows:

The abolition of the three recruiting depots and changes in the method of recruiting have already resulted in adding 1,500 men, equiv. alent to two regiments, to the effective strength at the military posts, and directly and indirectly will reduce expenditures about $250,000 annually.

Heretofore three large depots, at which recruits were detained for weeks or months before joining their regiments, have been kept up at heavy expense. About 100 officers were required for the recruiting service and the average number of enlisted men, including those under instruction, was 1,600. Last year, of 8,000 recruits enlisted, over 3,000 were secured at military posts without any charge against army appropriations. The remainder, slightly less than 5,000, recruited under the old system, before they reached their regiments cost $185,000, but this did not include the cost of maintenance of the depots, and the salaries, pay, and rations of many officers and several hundred enlisted men withdrawn from their regiments.

Post or regimental recruiting, which involves no charge against appropriations, will be extended and encouraged, and further reductions in the general recruiting service can undoubtedly be made.