ould involve
their ruin; in others, they must act judicially upon legal questions
affecting large private and public interests, as to which their
decisions are practically final. It is a just subject of congratulation
that, during the last year, there has been among these officers no
instance of fraud, defalcation, or gross neglect of duty. The
department is a well organized and well conducted business office,
depending mainly for its success upon the integrity and fidelity
of the heads of bureaus and chiefs of division. The secretary has,
therefore, deemed it both wise and just to retain and reward the
services of tried and faithful officers and clerks.

"During the last twenty years the business of this department has
been greatly increased, and its efficiency and stability greatly
improved. This improvement is due to the continuance during that
period of the same general policy and the consequent absence of
sweeping changes in the public service; to the fostering of merit
by the retention and promotion of trained and capable men; and to
the growth of the wholesome conviction in all quarters that training,
no less than intelligence, is indispensable to good service. Great
harm would come to the public interests should the fruits of this
experience be lost, by whatever means the loss occurred. To protect
not only the public service, but the people, from such a disaster,
the secretary renews the recommendation made in a former report,
that provision be made for a tenure of office for a fixed period,
for removal only for cause, and for some increase of pay for long
and faithful service."

The chief measure of importance, aside from the current appropriation
bills, acted upon during that session of Congress was a bill to
facilitate the refunding of the national debt. It was pending
without action during the two preceding sessions, but was taken up
in the early part of the third session. As the bill was originally
reported, by Mr. Fernando Wood, from the committee of ways and
means of the House of Representatives, it provided that in lieu of
the bonds authorized by the refunding act of July 14, 1870, bearing
five, four and a half, and four per cent. interest, bonds bearing
interest at the rate of three and a half per cent. to the amount
of $500,000,000, redeemable at the pleasure of the United States,
and also notes to the amount of $200,000,000, bearing interest at
the rate of three and a half per cent., redeem