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AMERICAN NATIONAL RED CROSS.

Under the provisions of the act of Congress requiring the War Department to audit the receipts and expenditures of the American National Red Cross, the Secretary of War, under date of April 16, 1917, directed that this audit, beginning with the accounts for the year which ended December 31, 1916, be made by the Inspector General's Department.

For this purpose an addition to the clerical force of this office of three bookkeepers and accountants has been requested.

INSTRUCTION.

European war conditions have caused throughout the Army many radical changes in methods of instruction.

Instruction in signaling during the year has greatly improved. At garrisoned posts the work of garrison schools has been satisfactory.

CLOTHING AND EQUIPMENT.

Reports of inspections have noted certain defects and deficiencies pertaining to clothing and equipment; but as war conditions will bring about desirable and needed changes, comment at this time. would, it is believed, be inappropriate.

RESERVE OFFICERS' TRAINING CAMPS.

The management and conduct of the first series of camps instituted after the entry of this country into the war were characterized by lack of uniformity, especially in the status of the reserve officers, in carrying out the schedule of instruction and in the methods employed by the instructors in rating those undergoing training. These defects were to a great extent remedied in the second series of camps. As to the results accomplished in these camps, I hear nothing but good. They have provided a most satisfactory solution of a very difficult problem, viz, supplying junior officers for the National Army.

NATIONAL GUARD.

During the summer and fall of 1916 special field inspections were made of National Guard organizations called into the Federal service.

The armory inspections required by the national defense act of June 3, 1916, had been nearly completed when the work was interrupted by the declaration of war.

As the outcome of this war will determine the future military policy of the United States, comment upon the National Guard as an institution is at this time uncalled for.

DISPOSITION OF UNSERVICEABLE PROPERTY.

The present system of disposing of unserviceable public property, which has worked satisfactorily in time of peace, will not, it is be

lieved, prove satisfactory during the war, when the quantity of property of various kinds which will become unserviceable will be enormous. To meet war conditions a system of "salvage" has been recommended.

ARMY TRANSPORTS.

The administration of the trans-Pacific transport service has been satisfactory. The trans-Atlantic transport service was established just prior to the close of the fiscal year.

POST EXCHANGES.

Auditing officers and post exchange councils have in some instances failed to perform fully their duties as prescribed by Post Exchange Regulations, yet as a whole there has been marked improvement in the management of post exchanges.

DISCIPLINE AND EFFICIENCY.

Conditions in the Regular Army, brought about by its expansion and by the loss of officers, noncommissioned officers, and experienced privates incident to the organization of the National Guard and the National Army, are unsatisfactory, and while unavoidable, are none the less unfortunate. However, those who are left will, I believe, prove equal to the situation and in due course of time will bring the Regular Army back to that high standard of efficiency which has always characterized it.

Very respectfully,

The SECRETARY OF WAR.

J. L. CHAMBERLAIN,
Inspector General.

REPORT OF THE JUDGE ADVOCATE GENERAL.

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