No. 10.

REPORT OF THE COMMISSARY GENERAL.

OFFICE OF COMMISSARY GENERAL OF SUBSISTENCE, Washington, November 2, 1849. SIR: I have the honor to submit the following report of the operations of this department during the past year.

At the termination of the war with Mexico, the army was distributed over the extended territory of the United States, not only occupying the posts garrisoned prior to the war, but assigned to points in Texas, Santa Fé, California, and Oregon. A large portion of the troops have been in movement towards the points to be occupied; and this, together with the want of time, prevented contracts for the past year being formed. Supplies were therefore purchased in the open market; and the effort to furnish good and wholesome provisions at every point has met with complete

success.

In July last, advertisements were issued for proposals to supply by contract, for the year commencing July 1, 1850, that portion of the army then stationary; but ere the bids were opened, in October, a large part of that portion was in movement. Contracts were therefore made only for the troops at those posts which it was supposed would remain garrisoned during that year. The remainder of the army must be supplied by purchase.

The system of "contracts" is so objectionable, that I respectfully recommend that it be abrogated altogether. The bids are received, and contracts formed, nine months prior to the first, and eighteen months prior to the last delivery. During these intervals, fluctuations in the price of the rations usually occur. If the price falls, the United States lose the difference; if it rises, many contractors fail in their deliveries, and the department is compelled to purchase under the most disadvantageous circumstances, to prevent suffering to the troops. Changes are frequently made in the position of the troops during these intervals, and the department is burdened by the provisions being delivered at points where they are not required.

'Thirty years' experience in directing the operations of this department has convinced me that the army is supplied with better provisions, and at a less cost to the government, by purchase in the open market, than by the system of contracts.

It affords me pleasure to state, that all accounts of officers and agents of this department, up to the third quarter of the present year, have been examined in this office, and transferred to the Third Auditor; and that, in consequence, I shall be able to dispense with two of the three additional

clerks authorized by the act of August 12, 1848. The correspondence and general business of the office still being large, the services of the third are necessary, and cannot be dispensed with.

Most respectfully, your obedient servant,

GEO. GIBSON,

Commissary General of Subsistence

Hon. G. W. CRAWFORD,

Secretary of War.