The increase in value is from $751,183 in 1868, to $1,870,285 in 1872. It is gratifying to be able to report the general and very encouraging success of the Indian policy. There is nothing in the sporadic incursions and outrages to weaken confidence in the final success of measures now in force for the treatment of the Indian tribes. So far from any change of policy being decided upon, or being indicated as necessary by the events of the year, there is abundant reason to take all proper steps to render the policy more efficient wherever it may be found necessary, and to extend it over tribes where it has not yet been established. The aid and co-operation of the various religious associations of the country have been of the highest value. In no case has there been the slightest misunderstanding between them and the Department, and they have, in all cases, responded promptly to my wishes and suggestions. They are, without exception, doing all in their power to render the humane and peaceful policy of the Government as efficient as possible. In every missionary society having a part in this great work the Department recognizes a most valuable assistant, thus largely increasing the working force of the Government, and without expense.

The report of the Board of Indian Commissioners for the past year not yet having been received, I am unable to state anything with regard to their operations during that time.

If the policy now in force with regard to the Indians can be maintained and perfected, until it reaches all the tribes now occupying our soil, I feel confident that it will result in the amelioration of their condition in every respect, make many of the tribes self sustaining, elevate them morally and mentally, and greatly reduce the present expense of their maintenance. To effect this in the shortest time, it will be neces sary to have the policy so clearly defined and established that it cannot be misunderstood, and to secure the completest co-operation of all the influences which have been invoked in its behalf.

The missionary authorities have done well in their portion of the work They have not only generally nominated, as agents, good men, whose hearts are in the work, but they have molded and directed a healthy public sentiment favorable to the Indian policy, without which no meas ure of governmental policy in this country can be entirely successful. They have done so well in their branch of the work that I am loth to

assume the appearance of suggesting or advising any change in their methods. Yet I cannot refrain from quoting an extract from a report by the Assistant Secretary of the Interior, who made a very extensive. tour of inspection among the wild tribes of the Upper Missouri River during the past summer:

"I have returned from my three months' tour among the Indians, more than ever convinced of the propriety and the feasibility of the President's policy in the conduct of Lidian affairs. If time be given, it must more and more commend itself to the Christian people of the country. It is of so recent origin that it is, as yet, not fairly inaugurated in all its details. It seems to me, however, that some of the church missionary authoriti's have not yet fully realized the importance of the work which the President, in the establishment of his policy, invited them to perform. They were requested to select agents, and the Depart ment expected them to name men of integrity, business experience, and capacity, s ufficient to conduct the affairs of the agency honestly and efficiently This has been done in a highly satisfactory manner. But the new policy contemplates the moral and religious welfare of the Indians, to effect which the agents should be men, not only in favor of the new policy, but who will take an active part in promoting it in all its details. This can only be done properly, as I believe, by men of pronounced religious convictions. * * It is not enough that agents are willing to tolerate missionary work among their people; they should be men who can and will render efficient aid themselves in the work, and cordially acquiesce in all proper missionary appliances There are men now on duty as agents who, although good business men, have no confilence whatever in the capacity or disposition of the Indian for moral or mental improvement, nor any desire, apparently, to see the experiment tried. Such men are obstacles to the missionary branch of the present policy of the Government, whom I am well satisfied the churches which nominated them would promptly remove if their attention were invited to the subject. These same remarks apply to all Government employés at the agencies.

The success of the present policy is so encouraging that I would gladly see it perfected and carried out to its fullest extent and capacity. The religious bodies have rendered such valuable assistance in the past, and seem so heartily in accord with the Executive and the Department, that they will undoubtedly act upon the suggestion made above, and wherever it may be necessary replace unfit agents by those who wil be entirely satisfactory to the Department, while at the same time carrying out, in other particulars, the details of the peace policy."

I concur in the suggestions made by the Assistant Secretary; and the Department has received evidences from a majority of the missionary societies having a part in this work that those suggestions are received in the most cordial Christian spirit, and will be acted upon wherever it may be found to be necessary.

The duty of the nation toward the original occupants of the soil, who have become the wards of the nation by the fortunes of conquest and territorial acquisition, seems to me plainly marked out. The Executive is endeavoring in good faith, and in what is deemed the most proper and efficient manner, to fulfill the nation's duty toward a helpless and benighted race. He has sought to combine influences which may effect their physical and moral elevation and improvement. The missionary authorities have an entire race placed under their control, to treat with in accordance with the teachings of our higher Christian civilization. Their work is immense, and while results may not be en

couraging within a very short time, they must lose faith in the power of our aggressive civilization if they refuse to accept the truth or forego their efforts in this direction until complete success is attained.

Even though the success we hope to attain may be but partial, yet the very efforts the Government is making in so righteous a cause must redound to the substantial good as well as to the honor and glory of the country by attracting public attention to so commendable a work, and educating the people into a higher conception of the duties of the nation.

PUBLIC LANDS.

During the last fiscal year public lands were disposed of as follows:

a quantity greater by 1,099,270.25 acres than was disposed of the previous year. The cash receipts, under various heads, amounted to $3,218,100. During the same period there were surveyed 22,016,608 acres, which, added to the quantity already surveyed, amounts to 583,364,780 acres, leaving unsurveyed an area of 1,251,633,629 acres.

The Commissioner's report is accompanied with the usual papers and tabular statements, showing in detail the transactions of his office for the past year. The reports of the United States surveyors-general, which form the appendix to his report, are replete with the most interesting information in regard to their respective districts. They all make mention of the fruitfulness of the soil during the past season, and the increased yield of all manner of produce. Even in those States and Territories where mining is the principal pursuit, the agricultural products have so far exceeded the local demand as to cause large shipments of cereals to the Eastern States. The Commissioner's suggestions in reference to the propriety of consolidating into one statute the principal fentures of the pre-emption and homestead laws, are, in my judg ment, specially worthy of the attention of Congress. The necessity of a re-organization of the clerical force in his office, and of vesting him with authority to appoint special agents who shall bring the subordi nate land officers more immediately under his supervision, is clearly and forcibly stated, and the matter will, I earnestly hope, receive the early and favorable action of Congress. I take great pleasure in bearing emphatic testimony to the marked zeal, integrity, and efficiency of the

head of this Bureau, and the intelligent promptness with which the duties of his office have been discharged. By his unremitting efforts, seconded by the cheerful industry of his clerical force, not only has the rapidly increasing current business of the office been expeditiously attended to, but the accumulated arrearages of years have been brought. up to date, thus placing this important branch of the public service in a condition eminently satisfactory to all who have to do with it.

PATENTS.

Needed reforms have been made in the condition of the Patent-Office during the past year, the most noticeable and important of which is the abolition of the old form of Patent-Office reports, and the substitution therefor of the Official Gazette of the Patent-Office. Defective as the old reports were, and published from two to three years after the date of the issue of the patents reported in them, their discontinuance seemed to greatly alarm the inventors and manufacturers of the country, and the demand for their restoration, or an adequate substitute, was so great as to require prompt action in that direction. During the last session of Congress authority was given for the publication of the Patent-Office Official Gazette, comprising the Commissioner's decisions, the decisions of the Supreme Court and the circuit courts in patent-cases, all changes in the rules of practice of the Office, notice of all applications for extension of patents, a brief of the specifications, and the full claims of all the patents issued, together with such illustrations, taken from the drawings of the patents, as would give to the public a clear idea of what is patented. It will thus be seen that these publications embrace very much more than was contained in the old Patent Office reports; and, instead of being two or three years behind date, as the old reports were, they are issued within three days of the delivery of the letters-patent. This work seems to meet the demand, and is received with universal favor.

The number of applications for patents, including re-issues and designs, during the year ended September 30, 1872, was 19,587; the number of applications for extension of patents, 284; the number of applications for the registering of trade-marks was 589. During the same time there were issued 13,626 patents, 233 extensions, 556 certificates of registry of trade-marks, and 3,100 caveats have been filed. This shows a small increase over the number of the preceding year. The fees received during the same period, from all sources, amounted to $700,954.86, and the total expenditure to $623,553.90, making the receipts in excess of the expenditures to the amount of $77,400.96.

It will at once be perceived that the addition of about twenty thou sand applications for patents every year must greatly increase the work of the office. Over 200,000 applications for patents have been filed since 1836, and about 133,000 patents have been granted. The drawings, models, and files accompanying these applications must be so classified and arranged as to facilitate access to them, otherwise there

would be constant danger of duplicating patents upon the same inven. tion, and each year's accumulation adds largely to this door. The office is now being adumistered under substant ly the same Law and the same general organization adopted at its matriniton, when only from one hundred to five hundred ap; beatiors were made per „zzam. The office has outgrown the plan of organization that was så sent for it then, and a new organization has become atmolitely Lovessary to secure to inventors and to the country the benefits of our potent system. I invite attention to the communication forwarded to Congress stizzesting a reorganization of the Patent Oce.

The Commissioner urges the importance of a setration of the PatentOffice from the Department of the Inter: r. This matter is ezbriced in the b'll now pending before Congress for a re-organization of the Burean. Another subject to which attention is eattesty invited is the Lecessity for more room for the work of the Pitent-Omes. A pan has been devised by which it is th nght the model g dery will be still tent, in all time to come, to store such models as it may be desirão e to ret ain in the office, but for the working force and the necessary iles of the office there is great want of room. It is imposs,e to transat the basiness of the office, with safety to the inventors or the manufacturing interests of the country, exe-pting with more room in which to arrange the files and drawings that must be consalted hourly in the transaction of office business,

The work of the office has been conducted in the most satisfactory manner during the entire term of the present Commissioner, and I most cheertally attest his efficiency and capacity for its mantoid and delicate duties

PENSIONS.

There are now on the pension-rolls the names of 578 widows of soldiers who served in the revolutionary war, a decrease of 56 since the last annual report. The names of 1,157 widows and children of soldiers who served in the wars subsequent to the Revolution, and prior to the late rebellion, excepting the war of 1812, are borne on the rolis, being 57 less than the preceding year.

During the last fiscal year there were examined and allowed 6,317 original app.ications for invalid pensions of soldiers, at an annual aggregate rate of 124,620,50, and 5,116 applications for increased pension of invalid soldiers, at an aggregate yearly rate of $261,165,50. During the same period 7,120 original pensions to widows, orphans, and dependent relatives of soldiers were allowed, at an aggregate annual rate of $950,798, and 290 applications, of the same class, for increase of pension were admitted, at a total annual rate of $15,853.35. The number of claims, original and increase, admitted during the year, was 18,843, and the annual amount of pensions thus granted was $1,652,433.35. On the 30th day of June, 1872, there were on the rolls the names of 95,405