A proper attention has been directed to the prevention of waste or
extravagance, and good results appear from the report to have already
been accomplished.

I approve the recommendation of the Postmaster-General to reduce the
charges on domestic money orders of $5 and less from 8 to 5 cents. This
change will materially aid those of our people who most of all avail
themselves of this instrumentality, but to whom the element of cheapness
is of the greatest importance. With this reduction the system would
still remain self-supporting.

The free-delivery system has been extended to 19 additional cities
during the year, and 178 now enjoy its conveniences. Experience has
commended it to those who enjoy its benefits, and further enlargement
of its facilities is due to other communities to which it is adapted.
In the cities where it has been established, taken together, the local
postage exceeds its maintenance by nearly $1,300,000. The limit to which
this system is now confined by law has been nearly reached, and the
reasons given justify its extension, which is proposed.

It was decided, with my approbation, after a sufficient examination, to
be inexpedient for the Post-Office Department to contract for carrying
our foreign mails under the additional authority given by the last
Congress. The amount limited was inadequate to pay all within the
purview of the law the full rate of 50 cents per mile, and it would have
been unjust and unwise to have given it to some and denied it to others.
Nor could contracts have been let under the law to all at a rate to have
brought the aggregate within the appropriation without such practical
prearrangement of terms as would have violated it.