The estimate of expenditure for 1864 was fixed at $13,000,000, in which was included the sum of $1,000,000 specially appropriated for the overland mail-service, being $355,213.80 more than the amount actually expended. On the other hand, the revenues of 1864 were estimated at an increase of five per cent. on those of 1862, making $8,714,000, while they actually reached $12,438,253.78, or $3,724,253.73 more than the estimate. This increase equals 42-5/8 per cent. The increase of expenditures in 1864, compared with those of 1863, is 11-5/8 per cent., and the increase in the revenues for the same year 11-3/8 per cent. This exhibit promises an increase of the revenues for 1865 over the estimate submitted in the report of last year. The revenues of this department for the year ending June 30, 1865, were $14,556,158.70, and the expenditures $13,694,728.28, leaving a surplus of $861,430.42. The ratio of increase of revenue was 17 per cent., and of expenditure 8 per cent., compared with the previous year. ESTIMATES FOR 1866. The expenditures of all kinds for the fiscal year ending June 30, 1866, are estimated at $14,098,500 00 The gross revenue for the year 1866, including foreign postage and miscellaneous receipts, is estimated at an increase of six per cent. on the revenue of 1864, making 13,184,547 79 ————————————— Estimated deficiency of revenue compared with estimated expenditures 913,952 21 From this sum must be deducted the amount of the permanent appropriations to compensate the department for carrying free mail-matter, under acts of March 3, 1847, and March 3, 1851 700,000 00 ——————————— By which the estimated deficiency is reduced to $213,952 21 The grants for the transportation of free mail-matter for the last two fiscal years have not been expended. Assuming that the amount of $700,000 for the last year is still available, no appropriation for any deficiency in the revenues will be required. In making the estimate of probable expenditures for 1866, the amounts actually expended under the several heads during the past fiscal year have been taken as a basis; but an increase in several of the items named has become necessary, particularly in the appropriation for postage-stamps and stamped envelopes, the estimated cost of the latter being increased $140,000 per annum, according to the terms of a new contract elsewhere referred to in this report. _IMPORTANT FACTS._