"The proportion of bearing to paid or stamped letters is 0.974 to 1, which shows a progressive increase in the number of the former. This may be fairly attributed to the general habit of the natives, especially those in the army, and also among lower classes to despatch their letters bearing, more particularly at this period, when, from the constant movements of the troops from one place to another and the disturbed state of the country, they are undoubtedly liable to miscarry. "I may also observe that a very large number of letters posted by the military and lower classes of the people are intended for places in the interior of districts, and, as the District Post establishments have not yet been fully reorganized, there is no guarantee for their punctual or safe delivery. Natives, being real economists, naturally prefer the despatch of their letters bearing, and so prevent any loss from prepayment of postage. "The staff of the Department was much reduced by casualties during the late mutinies, and much difficulty has been experienced in procuring properly qualified persons to accept employment. A large number of offices having had to be hastily reopened, the demand for English-speaking clerks has been unprecedented, and, without raising the salaries, I could not fill up the vacancies in the Post Office. "It is not a matter of surprise that extraordinary difficulty has been experienced in reorganizing the Post Office in such a crisis, when it is recollected that the salaries allowed to the officers of the Department are on a scale below that generally obtained in other Departments, that there are no holidays allowed them, and that leave of absence, excepting on medical certificate, is in a measure prohibited, owing to the establishment being generally on such a minimum scale as not to admit of any one being absent without providing a trained substitute. "But notwithstanding an increase to the salaries of the officials having been generally granted to the extent that I have represented as necessary, I regret to have to record that I have not yet been able to complete the revision of all the office establishments to my satisfaction. There are still many incompetent officials in the Department, whom I am obliged to tolerate, until I meet with better qualified persons to take their places.