Newspaper of The Chicago Tribune, December 4, 1866, Page 2

Newspaper of The Chicago Tribune dated December 4, 1866 Page 2
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Cljicago TUESDAY, DECEMBEB 1 ISG3. JOUNSON O.N HKtiOXiITXtUuTIOK. The President seems to have learned fr.g from the severe experience of theipast l year. lie prates with nnabated flippancy upon the “right” of therebcl States to rep resentation. He ignoresmil the law- and the fact, and assumes that, by his royal procla*. Elation be-has restored the ten States 4h Ihelr pAslioc life Un- ion. That portion of his message relating; lo reconstruction Is nothing bat aweakrep: ctition of the address of the Philadelphia; ConTcntlon,and of his own speeches'while' swinging around the-cirrle.- He boldly Sass Eimies that the ten States never ceased to be States in allegiance to the Union; that their' Governments have ‘-never forfeited the recognition that was givcn_ _to them previous* to the war; that the rebellion In ho wise changed the relations between the United States aud those State Governments that had rcoudiated the Union and had enrolled tlumselves os Governments of State? in Jeff. Uavis’e Confederacy.', .'As- Euming these thitigs with an atrogant defi ance of the truth, he argues that'll is not In the power ol Congress, directly or indirectly to deny-those States the representation to which they would be entitled had their con ; cUioi*. like that of New York and Illinois, changed. The President, with that obstinacy'and Fcir-tsteom which seem to be part of his na ture. declares that in defiance of the popular a ill and Ihc national judgment, he adheres lo the policy which he expressed n year ago. He repeats the silly argument that because ao amendment to the Constitution giving t State a less representation in the Sen ile eau he adopted save by the consent of all «hv Mates, that therefore every State most at :i .\ times have two Senators In that body, cr the Constitution will be violated. The qu. &ti> n at issue now is not whether “loyal representatives” shall be admitted, or Whether cither of these Slates is entitled to two Minton-on an equality with the other States, l»ul whether there Is in either of thim anything known to or recognized by the United States as a Slate organization or government entitling them to representation at aU. N j one proposesTo interfere with the equality of the Senatorial representation of the States ; hot tne country has just affirmed ihe constitutional rule, that there most he Male organizations, and governments in al’egtance to the United Stales, republican in foim, and h. harmony with the Union be fore thin* can he any representation what ever. Congress hits decided that no such organizations exist in the ten rebel Slates, ond that until ihc>e do exist there can be no repre-entalion either in theßcnate or in the House, and the people have ratified that de ck-ion. - - Hit* Pnfidcnt, In the face of t’ic popular Verdict, lias the effrontery to advise the lm* mediate admission, of representatives from the rebel States, a recommendation which bo n'.ust Irave known that the people have ii>i hi-truotcd Congress not to respect. Noiwhustandlng the fact that he asserts 4 l :it their admissi-m is all that is necessary o make reconstruction complete, we think t i reliable that Congress in a few weeks rill t. aoh liirti am] his rebel clients a differ* >::t kcMtn. There is no reason why tcrrlto* rial governments should not be established R ’.tin ut delay in each of the ten Slates, and lia> t'-.-t the validity of the President’s as- Fumption, that In those States there ate now lawful Slate Governments. 'ii.c Prcsldeut ignores all mention of the Con-!!!nUf.Tul Atnemlincnt, but that is of little consequence. Ii is a matter in which lu- Iras no offielabconoetn; triton tbo amend ment shall have been ratified by tbe Legis lature? of ihrcc-fourlbs of the Slates in the Iri I*, it wiH be bis duty to execute the ft-b :t.:i declaration of its being part ofthe C"i t trillion. Unlil then, his professed igno >*f the auicndmcnt can be treated vrith tin- contempt it dt serve*. T o v. < rk of reconstruction, however, is no 2 0 *-- I '*" in imy form within the President’s jm.?. inicn. The people have disposed of Lu- p-licy. nnd at the same time have com 3i.i:t. d th«- whole subject to the discretion of C't etv??. ‘Whether the President approves CTM-ppproves, whether he thinks it right or wruig, can make no possible difference. C«*tigicss has the power, Congress has the will, and reconstruction will now go forward !'• a c 111,-lction, in obedience to the instruc tieiis '■! the American people. Tnr: TBEASITty ÜbPOilT. T:ie Ih-p-rt of the Secretary of the Tru>ury, which we insert complete, will he 'canned pretty attentively by business men and the public generally. It will be seen that Mr. McCulloch s 111 adheres to the hy hftn in his “Port Vi ayue Speech,’* and the report submitted by him at the last session of Congress. After enumerating ti c many evils and finan cial demoralization which must of necessity grow out of a redundant and inconvertible currency, he suggests five remedies, which, In his opinion, will cause the resumption of specie payments as early as July, ISOS. The remedies proposed are; 1. Central redemption of the National Bank currency. 2 curtailment of the currency to tlie legitimate demands of trade. 0. Revision of the tariff for the purpose of liarmnuizing it with the internal taxes on nil l-ranchcs of home industry. 1. The is.-ue of bonds, not having over '■rcenty run, hearing interest at not over live per cent., and payable in England Dr Gern any. 5. The rehabilitation of the Southern Slater. “These mesenres look to an increase of labor, and consequently of production—to a fulfilment of the obligations of the Govern ment and the Banks—to a reduction of the pv.Mie debt at the same time that taxes are equalized and lessened—to lower prices, and apparently harder, but really more prosperous times—to a restoration of tpecie payments without the financial trou bles which usually precede a resumption after a long period of suspension and Infla tion. M Accompanying the report is a do lniii d account of the expenses and receipts Cl the Government for the fiscal year endin' l ' June!<*>•,. Tiie first proposition Is embraced In what i- Kii'.wc as “ Hooper's Bill,*’ presented at 11a- hir-t session of Congress, and laid over f>r future consideration. The National Banks Ihn ughout the West arc diametrically op pos'd to this scheme. Some three months a convention of the National Banks was h !d lore, at which the central redemption plan «a? unqualifiedly pronounced inimical to th>* banking interests of the West,and the lutmU- rsof the convention pledged them feivcj- to use all endeavors to prevent its l-;wugc. will deny that in order to restore the country to a healthy financial condition, the currency must be contracted. This is self evident. Trices are greatly inflated, and every one knows that the present cost of living almost if not fully equals that of two years ago when gold was 200. But the great question arises. “ How far can the currency be contracted to meet the actual want? of our internal commerce ? n Our Industrial interests have become almost revolutionized since the spring of ISfil, our population has largely' increased aud the yield of our fields, mines, fisheries and lutu* rigi.iiis has proportionately expanded. To list our present situation by that of the past would he Insufficient. No approximate comparison could he made. During a season Df commercial depression—when all classes cf traders feci that prices are too high and must decline—when business commences to languish, aud transaction arc re stricted to the actual wants of the consumer, then a proportionately large taouut of the currency can - be safely with rnwn, and the contraction policy cao bo Uir.-ued without being detrimental to the tnmuerce of tbo nation. Under these cir tnn-ianccs the people look for nothing else, tul place themselves in a position to meet it. The spirits of the American people arc how ever 100 elastic long to allow a depression In trade. Business would again become buoy, mt. speculation rampant, s and every one on Ihe seemingly high road to wealth. Thea the sontraction policy, b pursued to the same extent, as In dull tunes, would undoubtedly taiiM- a -harp reaction—somewhat similar to that which occurred a tew days ago iu Wall El net, only in & much larger projKjrrion. The substitution of five j»er cent bonds for tho.-c already issued would be acceptable to the masses. TheEngllsh National debt, which as perpetual, only ]mye an interest of three per cent, and there Is no reason why the United Slates, with a population greater and r< sources exceeding those of England, should pay six per cent, la our credit only half so good that twice the Interest? The raving of one per cent on the interest Would of itself aid very materially in paying Dff the debt, or if nut applied to that pur pose, would assist in relieving the people of a portion of the burthen of taxation. It is not likely I hat Congress will make any por tion of our debt payable in Europe. Wc lave too much national pride, and the American people would rather sacrifice a little and carry the entire debt without the hid of foreigners. While the rebellion Teas in progress we never asked the assistance • of Europe, and there is now ®o necessity for negotiating a foreign loan. Our bonds are finding their way to Europe fast enough without holding out special In ducements to foreign capitalists and specu lators to absorb them.. The public will !n --eist on larger reductions of internal taxation fian the Report recommends. The enormous Jvcnue flowing into the Treasury is not ceded. One hundred millions of it can be . Ifely and judiciously left In the pockets of £»c people. The necessity for excessive tax won nu longer exists. We look confidently ( > Congress to grant this relief to the ludus s»7 of the country. THE NATIONAL BALANCE SHEET. Report of the Secretary i of the Treasury. Receipts, - - - $i ,273*960,215 Expenditures, - 1,141,072*666 TM Public-Debt ITovember 1, $2,551324,121. Specie Payment to be Safely Re sumed inrises. -tr, e Tr«.-J BKA s. iniTl * El,AU,n *w« I tkc D< !<SSS«l««ri? l v requirements of law, inc re .? ort l or ‘ aer dat < of the 4th of Decom tv Secretary estimated, according to fciiKothSjTSS 6 !- hy tills Department and .£2 ° ther rnmts, that the expenditures I ? e flfCa] jSe ?C5 ’ 7T oa^d £*9«d the receipts 8112,1904?.vO waa widely dizfcreuL The receinta ex ceeded the eslimaia - . 889.y05.905.41; theerpcndl- Ures fell sltort of the estimates The fohowlng sutement exhibits ibe Itemsot in ctcase of receipts and decrease of cxpcndlturca In controTisoa with the ostimaica: 1 eTATETENT OP THE ESITUATED AND ACTUAL US- Ctirrs AND EXPENDITUItEB OP THE UNITED states rnos octobeh 1.1805, to june so, ISC6: Bxcnpts. _ Efdmated. Actual. Customs 8i00,003.000 fisc.txr: oea t sy&.o&i J-ar-d-*.. 500,000 533,110 3-1110 laltnisMtmaiie 175,000,000 JlS.fiOLarr S7.6OLW TMr»r» SOfiOOfiOT 45.».ia5 15,253.1» Direct Tax 1.V43,W3 LV(3,642 Cashtalaaceocu lsos^looo k Br2.GSSJIS f«Tk561,420 XXPESDITCEES, „ Excess ot _ . Estimated, Actual. E»tlwatea. Ctrl* wnice..... s 52,*»«,1!53 530.45i.500 { J,5C3,.51 Per-rions audio. * d«an- 32.»fi.790 War Department 501.7RJ.7M 319.05a.464 IBv.«(MASfi Navy Departn/t. 35.00u,0» S,I97^SJ Jnter.Ht on pub llcacDl Dednctdi*CfJcucy In «-«Umate for lni-re»t on pub hi.- tUbt 84SLSM462 IKLXM.2T? BECAPII elation. (Actual receipts, tnclodlDc cosh once *162.561.420 Estimated receipts. Including Cash balance '. 572.655A19 t sees* of receipts over esti mate* Fftln.alcd cxpocdilcrcs if 4 Actual expenditures 251,751527 Actual expenditure* leas than estimated DFCEIPTS AND EXTENDimtES TOR THE YEAH. The following is a stiitement of receipts and cx pcixituicfi for the fiscal year ending June 30,1300: llalante In Treasury, agreeable to warrant. July I,ISKk |B3ikSo9 Towiilcii add balance ot sundry - tract funds not Included In the above balance 2.517,735 balance, .lolv 3,153, tn cUidingtrustlund. 03,076.013 From Van* TtiSilAM From rnatums 179.0tfi.rai Kr< n- lands Fr*>n: dlrert tax 1d»71.75l Froi: iLicTtial revenue SC9.St«<,BU rij.'un; mUctliancoc* tcureea.... 67,U9.3u9 _ , . kAI'UUIUIX), KMcir.ptlon of pub lic detit 86M.521.75S Civil rervicc. 41.03C.9d 1-cut iidb and In dians 18.832,416 3V«r Department....Wi.4W,7tfl Navy Department... Interest on thgnab dett.. .....133,067,711 Lear tnc a balance in the Treasnrr and the first day of Joly, 1866 : 8132,687^49 HECUPTS AND ESPENDITCnES FOR LAST qUADTEIL Tbe loliowing is a stau tueni of the receipts and expenditures tor the quarter eudmg September BU, Btianc** In Treaanrv, agreeable to warrants, Jiuy 1, 160 C f1T2.85T 519 From loanfe 17k01LCa tn u; cuftoms.... 5(L5t3.772 Fr« r.: lot ds 223,759 Fn-n: direct tax 510.194 Fr, n Inti rxtal reveau** 99.1Wri«4 Tn m tnlsct-ilancous tourccs... 7,991,764—133A61,556 _ EXTEsmrrBES. Tbp redcmptlcn of the public „ dtfci - s2l3.7T«.S’n »lm civil ««avlcc* 11^93.7^6 l'erifi(.n» nml Indltup 11,75»,9»S 1 Jk? wsir !>• partment 13.5CW14 Hie r>HV> Department 7j0 , .f09 interest on the public debt J 83,9CV15«-352.0U.758 leaving a balance in the Treas ury on the llret day of Octo ber. IWfi. ol c 142,415,799 INCREASE AND DECREASE OF rCBIJC DEBT, n be following statement exhibits the items of in create and decrease oi the pnhlic debt lor the fis cal year ending June 30, itCh: Amount of pubheflebt. JuneSL . I*s —: .752,695A93,026 Amount ofcaeh In Treasury.. SSS-309 Amount of public debt, June 30, ISO, less each in Treasury *2.631.731.717 A tin mat of public delt,June3o. 1*« ?2,753,<55^9 -A.-owHI Of U. 1-1 XK7.M9 Amfvn of public debt, June S0 f lS6fi,leai each in Treasury' f2.ffi3.s3Vß) Nft decrease | 31,197,3*7 inis decrease was caused os follows, by pay ments and wrraw of cath in Tnaeuru: Bomb, c n- r cent, acts July si. IMI, ana April 15,1 WV $116^39 Treamry mtes.6 per cent, acts Ix ccmbt'rSS, its;, and March v, ■ * IHII 2,200 Bonds, 5 percent, actScptimbcr 9. IKVt, iTvxaa Indemnity) 853,000 Treasury notes, 7AO, act,Jnlyl7, ISO SSC.7SO CcrtiCcatesof tndtbtcdt.isL 6 per cent, act March t, 1861 89.851.000 Treat ury cotes. 5 per cent, ote *ta i« o-ycar. act March 3.1K3. SS£S4.4SO Con.pound intcust cobs, 6 per cent, act Junea'.lSCt 31.7i3.9t0 Bonds 3 per cent, act March 3, I* - -!..- 1,551.000 UnlUO Stabs notes acts July 17. 3NBJ. and Fcbmary 12.1P® 200.441 United States noun, acts Februa ry 85, July 11, JbtC, and March 3, P< f-tai currency, act July 17.JSC2. Ca»b In Treasury, Increased 132,0».vu9 Gross decrease 1332,523,633 Fr« m wblcb deduct for increase, by— Bonis. 0 percent., acts Ja’yl. ISfcT.and Julv 2. IH4, l-med to central Pacific 1 tail road Company. Ac., interest pay able in lawful money $ 4,781,000 Treasury notes, 7.3 b, act* June 30, Jsftt, and March 3,1865. It tcicst payable la lawful money 131,611,150 Tenipirary loan. 4.5, and 6 per (tut, aria July n, ISCJ, and Jut-e ISO 4 50.i59.133 Geld ccruflcalis, act March 3, ISfiS 10.713.150 Fiartlntal corrcnry. act March S.IH3 4,919,756 Bonds. 6 per ct_ act JulvlT. ISCI $116,050 Bonds ft per ct„ act • March &I#4 3.552A00 Bonds, C per • U, act June 30.1864 f ,211,000 Boods6perct., act March 3,15G5..... 1C3.542AC0 Krtdemate *3U9V3S7 Tec following statement exhibits the Items of increase and decrease of the public debt for the four months from June SO, XaGG, to October 31, At- oirnt of public debt, June :i). IMft .$2,783,423,579 Aiuouot of cub in Treasury... 132,897,519 Amor.ntof public debt, June SO, 18GG, less cash in Treasury M Av ounl of public debt, October J* I .7*t* —,...ft,68J,C35A« Arc aniooud of old funded ana t debt. Inrladcd la i-i'tt of Jane SO. isCd, not In tin cmenu 114.113 . . . . J.wi,~l.osi Ar-oi nt of cash In Trcasmy... i3OAW.9i'O Almit tit «.r public debu October si, iB6O, cath In Treasury.: f3A31.421.121 Net decrease $99.111jti3 Wlikh decrease was caused as follows, by pav ek-hts— ’ J * ‘ B«iid*,c per ccauaet JalySt. l*qi Situ April 15. m 2 <l4 500 Bondn. C per cent, act January T IM7 1,C«2,450 Bonds, 6 percent, act March 21, i>ubd». 3 per ernu act Feptcm u-rit. VOO (Texas lidenmity) lAOOO Bends Spec ctnu act March 3, (Tvn.forttc*) .7 119,750 * } G2M3O Treasury Note*. 6 per cent, act* December .3. isj., and March 2,1861 tiaj Temporary loan. 4. a. *na C per cent, acts February 25, March 17, July 11,1862, and June SO, 1964 75,172,997 Certifies trsoflndeMcdnuss. f. percent, acts March 1. vf«?, and March & 36,203,003 Ircatury note*, 5 per cent, one and two v«.r. act Mairn IH3 500,000 Treasury notes, 7-50, act July 17, jSfil 11 •■OO Compound Interest note*, b per cent, act .Jure 3U.1861 ?..... . 10A00.009 1 TrtjMjrj- notes, 7-SO.acts June 80,1964, and March a, 1863 r 337*50 ur lu cl Sta P-s notes, acts July 17,1861, and I cl rnary 12,1502 a>M ci it. <1 Mates notes, acta February 25.1563. Jmy- 11, 1562, and Mvrrh 0.1963 10.fi51.7D 1o.Il! tunrncy, act July 17, IS&t Gross decrease $206,653^12 rrum which deduct for increase of debt sort decrease of cash In Trca-»arr: Lond*. cent, act July 17, lf*>J t 7,050 Bonds, 0 per cent, act MarchS, . IXu JOL73SJOO Boro-. 6 per cent.acts Jule 1. Wf, and July i, tsro, is/ncd to i cntral l*aclflc Batlroad Company, Ac., interest paya- I'le in lawful money aamrwr Ci« let certificates, act March X JBC3 1g1,5W 1 cnrrrncy, acta sUrrh3.fe6S.aodJane3o.ltei Ca>b inlrcatury,docreased... Kei decrease 933,164.333 Tie Following eJalement exhibits' the items of increase and decrease 01 me pnhllc debt from the higher-! point. August 31,15C5, to October 31,1300: Amrtmt of pah tc «:tU Anc.hi.iam, * ns i«-r suicmrot. 32345.907 06 Amount cfold fttnd- ’ * <-d and unfunded dclt 114.115 Amount of cash in Treatnry. Amennt of public debt August St, tBGS less iSSStflPpffiife- watsata ftel.t Oct. si.iscfi, aa per Amount oroio fund td and unfunded debt 111,115 . «3.C51.751.031 Amount cf cash In Treasury.. isy^CAiKO Amount of public debt, October St, 1566.1«*f caah In Treasury 3£SMJUJI 9XAU73 565 Which ccoease was caused as follows by pay ments and increase of cash In Treasury • Bonds, 6wrcent, act January as, imt t 1.672,133 8 Ptf cent, acts July tl.isil, and April 15, 1842,..,,...,,,,....,,,..,, 11LOM B'-ul-.C per cent, act March Si, 1&48 617 uu B< uds, 5 per cent, act Match 3,18&4 1 tw'm Iknds, 5 per cent, act September 9, tub, ' (Tvxaalndrmntty) 453000 Tt« BKQry notes. Cper cent, acts December ii! March 2, IS£l ayy; Temtorarai7Uan.4.S.and6 tmt cent, acu htlruary 23,1SGL and Jose 90, C<-rtiiicatesotlndehtedne«s,6 per cent, acts March 1, IFC2, and March S, 1663 81,911,003 TresKurj notc»A per ccnkoae and two years, act March 8, IDAI 3L050.CW1 Tn-t-tiiy notes, 7-80, actJuty 17.1961 255J00 CtmjKinnd Interest note*, 6 per cent, act out.*-50,1864 €3,512,020 Tnascrv note*.»ct June 3d, 1864, and • MarcbS, 1865 10X933,73) United Mate* note*, acta July 17,156 t, and Ftbruaryi2.iß« 13L6X0 UnludStatca note#, acts February 25. ISO. July 11, IS*2, and 51aren a,lsa 42.933.171 PcMaJ turrencj, act July 17, IBul 3.02J.MJ buspetded re-qouiuou 2.111 un ■ Incrfasecfcashtn Treasury. Gold decrease. From which d*-rt«ici for inrrcas*— lienor, fa per rent, act* Jmy li and Aupoii 5, a 114 730 x- ndt-, 6 per cent, act March 3, . i«v s,aa^oo c per cent, act Jane 39, M*J 8.311.090 I 6 per cent, net March 3, . it'd 305,381,00) | jV»<ds. 6 per cent, acta July l, ; W-V, and JulyjjßM, Irtard to C«i:tral rat ire railroad Com* ftanj. Ktcre t pay»b.e In tvfll iroDfj 8.0)4.000 3'raotit nal correiicr, acts March ■ 3,iHKs,andJnnt*l.lßt>l....... . titMOT <Uold rcnlCcatcs, act March £ . . U«. 10*6*0* 1 5941,50.137 Ket decresae .... <0900*9,566 1 m HEIJtJCTIQH OPTUK SITIOSAL JJKBT. L,.,., st *‘£s)®' ta are id the highest decree en couagirp. _Thcy arc conclusive evidence of ibo .t eM *i our Wfott 'CCß, ard they clearly Indi cate the patience of the people under self-imposed •rv?«rJi lf \. an<l tbeif unwillingness that this debt tShotiid be a perpetual incumbrance noon the country. r 'iK«& notexpc S l tcd « llor 14 It perhaps desirable, jihat the same rate of reduction should becontin ■u£a*. ~ copMdetahle dlnimuliga of taxes was Mlccted by the Itneadmrriis ol the Internal Reve nue law.«tthe'laat seerion-of-Congress. Afar tn!rr diminution ol Inlerna! taxes, and a modifi catlon of the tarilt which will donbtleaa lead to a ifi.» n t 1 t CD o* customs Unties on many articles, win do required, In order that production may bo Jncn msed at drew life Infused Into certain branches of industry now la’igulebing under the hardens which have been imposed upon them But aiier"lhc~ proper‘and* necessary reductions aha:] have been made, the revenues will doubtless oe sufficient, If tte Goremmenl eball be economically admmls'ered, to pay-toe current cr- P- I’aen, tbe interest on Ihe.pnollc debt, and re al.. “ tboprlncipal at the rate of from four to five m Ihciis per month In order that this may be none, however, there mast be no additional do nations to railroads, no payments but Intnefnl filmeut of contracts, and no'unnecessary expendi tuicof money lor ary purpose whatever with proper economy In all the Departments of the (•ovemnem, the' dcot can be paid by the cciicra lion that ci rated it. If wise and equal rurenue laws shall be enacted and continued by Con ,T ie?B, and these laws are taiihimly enforced by the offi cer cbaiged with their execution. That It is the will ol the people that It should be paid, and not perpetuated, la clearly Indicated by the favor with width Its rapid reduction doting the past year has teen regarded. The Idea that a nanooal debt can be anything else man * burden—ln which there are some compensations, - but still a bnracn, a mort gage upon the property and Industry oftbeneo pie—is for nnaicly not an American Idea. In coutm leg in which the public expenditures are ao beary, or the resources arc so small that no reduc tion of their public debts is practicable, and wheie natb-ual securities become monouolized cspiraliuibe bands of monied aristocracies, who not ou]> nbsoib the means but give direction to .the sennnieni of the people, public debta may be regarded as public ble.-b>ggs; but no such fallacy vilitvci be countenanced by the free and Intelli gent I eopli- ol ihc Untied States. Nothing In our history has created so much sur pme, both at home ana abroad, as the reduction of our national debt, Ihc wonder excil -d by the rapidity with which It was crested Is greatly ex ceeds by the admiration of the resolution of the inx-payt-ra thcmselvCa that it shall be speedily ex. tingunhed. The conviction Is »*ecoming fastened upon the popular mind that it Is Important— loi economy Id Uie national expenses, for inc maimcracce of a true democracy m the adminis tration of Uie Government, fbrtho cause ol good morals and of public viiitie—that the policy of a stcadv atnmti icduciion of the debt should be d'fiiliclT and iiftropablv established. Nothin" short ot this, and that economy In the national ex penditures which mil lender It practicable, will reconcile the people to the burdens of taxation. A i atienal debt mast ever be a severe strain upon republican institutions, and oars should not be s-nbj. ct to It one day longer than is ne cessary. To the perpetuation of the cxiatmg debt ci ihc united Slates there are also, it may be proper to remark, serious objections glowing out of the circumstances under which It was cr£ ated. Ahhungh incurred in a great struggle-for th«- pi€fer\atnn of the Gonrument, and there fore crticcially sacred In Its character, its burdens ate tone snared by those to whom it is a remind er of b« initiation »nd defeat. It Is exceedingly desirable fa* this, with other causes of heart burnings and alienation, should be removed as rwpldlv as possible, and that all should disappear wlti the jpieMnt generation, so that there may be notringln the future lo prevent that unity and good leedng between the sections which trene* cctsaiy lor iruc notional prosperitv. nmutmocEiss towards specie pathents. Ti e M citlai v tegi els, notiviibeta*-ding the large reduction of the national dclr, and the satisfac tory condition, in other respects, of the National Trea/nry, that little progress has been made since ms Jati report, townm specie payments. The view* presented by him In that report, although cndcracd Ip the House of Representative)* by a neatly nrfnlmons vote, were not sustained by coim ponding legislation, instead of being au thorized to redmethe paper circulation of the county, accoidiog to his recommendations, the amount of Untied Males notes which he was per mint dto retire was limited to *lo,tiod t OOO for the six im rihs ending October 12, and lo f LbuO.OOO per month fhercaitcr. in the meantime, (he re qnctiu:. of the.-c notes and of the notes ol the Stmc Banks, baa been nearly balanced by the in crease of the circulation of the National Banks; end specie commands about the same premium u did when the last Treasury Report was prepared. Haw g been thus prevented trom taulnp the first Important step toward a return to specie payments, the Secretary las mainly di r»ctt-d ids attention to measures looking to an In create ol efficiency in the colleetlou of the rev enues, to the conversion of iutereat-bearlog notes into live-twenty bonds, ana to a reduction ot the public debt, what has been accomplished in tcese ropects. and i- 1 not already understood by lie country, la explained elsewhere in this report. The Secictaiy bas also deemed it to be his doty to nt-e such means, within bis control, as were. In bis judgment, best calculated to tocp the Imsioesa of tl.c country as steady as possible, while con ducted on the uncertain basis of an irredeemable curicncy. To accomplish this, he has thought it necessary to hold a handsome reserve of coin in the Treasury. For doing so be has been criticised by many Intelligent persons, some of whom have condemned the policy as Involving a heavy loss to the country, lo the way of interest; others have objected to it as a failure on his part to avail bimselfof means within his control for reducing the price of com, and thus approximating specie payments: on the contrary, not a few have pro nounced all sales ot gold by the Government un wise, on the theory tliat if the coin received from customs, and not required for the payment of In terest. should be permitted lo accumulate until it shonld reach about the same prODomnn to the outstanding United States notes that, in former days, ihe coiniu the vaults of well-managed bank ing intiUutlcns sustained to-heir immediate lia bilities, cpi-et* payments mlfrht be resumed, wllh* out a reduction of the currency, and without re gu:d :o the condition of trade between the United Matts and other nations. OFFICIAL ACTIOK OP TOE SECUETAUT. Under these circumstances, feeling sensible of the great responsbi.lty ofhls position, the Sccre taty ha> deemed it safer nid better for the country, to act arcotrting lo the dictates of his own j'nd"- mcm, catcfnily n-gaidng the condition of the matkett and ofthc Treasury, rather than to take ms diu-ciion from those who, however Intelligent and able, were under no official obligations to the Govertmeut, and might he h*s* accurately ad vim dm regard to the actual state of Its financial afiairs. He basicgaided a steady market as of more importance io the people, than the saving of a tew millions o: dollars in the way of Interest; and obrervatlon and experience have assured him that. In order to sicurc this steadiness Id any con siderable degree, while business Is con ducted on a paper basis, there mast be power In ihe Treasury to prevent suc ceEfeial combination to bring about fluctuations fot purely spicniatlro purposes. He has also been clear in nis convictions that specie payments me cut u. be restored by an accumulation of coin in Ihe 1 rearury. to be paid oo* at a tuture day In lb*-redemption ot Government obligations; bat rather by quickened Industry, increased produc tion, and lower prices, which can alone make Ihe Cni'cd M.tes wnat they onght to be—a creditor and not a debtor nation. These views explain the emm e that has bicn pnrsacd with the cold which, during Lis administration of the Department, has come into the Treasury. He has permitted it to accmnniatc "ben the use or the sale of It was not necrasary tor paying Government obligations, or to prevent commercial panics, or success ful combinations against the national cred it ; and be bos sold whoever sa’ca were necessary to supply the Treasury with cur rency, to vat a off financial crises, or to save the paper circulation of the country, as far as prac ticable, Item nnnecessaty and damaging depre cta t ten. For making sales he alone Is responsible. It In conducting Item, any favoritism has been shown, or If ihe Interests of anv particular class have been especially regarded, Ufcasbeen without bis Lt-uy ledge, and in violation ofhls instruc tions. He has not the slightest reason to suppose, however, that they have noi been conducted hobctUy, fairly and judiciously. HIS VIEWS ON TUE SPECIE STAND ADD. It may he h idly necessary for the Secretary to remark that his opinions have unoergone no uiance in repaid to the importance of a restora tion of tie specie standard, or the means necessa ry to crtect Ik He trusts, however, that he has not been understood as entcrta nlng tte opinion tlat a reduction of the currency would of Itself necessarily bring aboutspecle payments, although the chief and essential means to effect Ihe desired lernlt. He tcgaids a redundant legal-tender cur rency c» the prime cause of our fluanclal difficul ties. and a curtailment thereof Incti<pcnsahlo to an increase of labor and a redaction of prices, to an augmentation of exports and a diminution of alone will place the trade between the Liiitca Mates and other nations on an canal and satisfactory footing. In older real his views on this point mav not be misapprehended, the Seer tary trusts that he will be random d for referring (oven at a risk of a repe tition «t what he has heretofore presented In othir communlratiom* to Congress and in other wavs to the counity) to certain laws, well nmleratoorl' hot too oltcti disregarded, which regulate Internation al trade and control the movements of coin. Wo have travelled so far from the specie standard, and are so bunded in regard to our actual finan c a* cot.u tloa and our relations with other coun tries. by an inflated and Irredeemable enrrenev, and by the exportation of our securities, that fre quent recurrence to inexorable commercial and financial laws Is necessary. 8200,009,626 500A39.»3 1,513,960,215 $465,4C0AJ6 BALAXCIB OP TEADE. Ever since trade commenced between thepco- P’e of dmerem nation#, gold and sllverhas been tire only reliable and recognized measure of value and medium ol exchanges. While in ihetr Inter till tiarte other represen'alivcs o! value have, to a greater or lets extent, been used by all nations, n oi'cy made of these metals has been pronounced by tbc.iudginent of the world the only currency puasessing the attributes necessary fur a uniform and ciiivc'eal circulating medium. From thl* ji.dgiunt there is no appeal. Not only Is It the mu m.d m.ivcrsalSy acknowledged measure of value and tncoluiu of exchanges, hut by Its regu lating How u indicates the condition and the re sults ol trade between different itatlons. Water does not more naturally seek a level than does specie ilow f. om one nation to another for the pay ment of balances created by an unequal exchange of commodities. Trade between nation# la gen erally and chiefly conducted by an exebatgre of li fir productions: but as these exchanges are never exactly eqna), there arc constancy oc curring b-lnnce# to I* paid In something' cl«c* and in tnclr payment, nothing bntthepreclons metals is a legal tenuer. it is thR necessity for rating balance* Iu ruin which regulates the trade of nations. It is tub great commercial and finan cial law whUh makes the nation that ee.b more than It buj>, the creditor nation, and the nation that Lnj e mote than it sells the debtornation, and tccogi Izct no mcainm bat coin In the payment ot halatccs, ilia* determines the quesuou of the ability ol the Ut>lkd States (o resume and main tain fjete pat mem#, if the balance lain our lavor, or if m-t in onr lavor. If the balance against us is » o small that It can ne paid without an ex bar.Mlt.gdtalu upon our procions metals, specie paynivuvcau at once be resumed. Such, unfor tunately. Is not th.? fucL Notwithstanding our heavy ex* orts during the post year (that of cotton raying luvn Qn,G7S,S2O pounds, or nearly 1,000,000 hale#, a quantity greater than our entire cron of Uie presmi y. ar). the United Sutes are largely a dc’li.r io F.monc. b J A levy tacts vvlU pnt us Tighten thla polsL Bc tvuen tbejear 184-, when gold was first al-cov crcitin Callioruia. and the first i>f July, iS6t» the ptcduct ol the gold ard silver mines or the United Mates was about f1,100,1X0,000, nearly all of which has gone Into the world's general atock; and it is uot piohable that the amount of gold and silver non in the United Sutes Is very much laigi i than it was eighteen year* ago. re uiHK * be ? ,cal W ending J one 30, 1566, the United Mates Imported: Foreign mirchaudUe free of doty tSSLSBL7S9 Fenian merchandise paylnc cu, - v 368^03.061 Of torclcn merchandise there W2,,5j9,810 w*.» rcK-x ported: l-rieofduty fU807.157 Dutiable.... Iota! (mixed cold and cmrency value) |IUIW» wblrtu trtdrrcd to currency value, was equal to 9ir,26k233 Total net Imporrs torclcn mer- ” chandlH% valued lb gold ...<417X4615T7 In tarts, sire|e 410,329,136 Of v nidi Ibcte waste exported 8,400.697 Kel ItnpctU, specie 6423.159 Tf tsl net Import foreign merchandise and fptcle. Dvripc the n*cai year ending June B#, ' t.c Unltco State# exported domestic mer ibcrdhe,currency value, - O- ucd to cild value f3XL£2,{K3 bptue exported Bi,64i^7i Total domestic exports, rained In gold 4i?,yg.a? Al psin t balance of trade, valued to g01d... ricrzii-vALtiTioy or veociiaxpiss. But these figures, taken fiom the reports of the starve: •41,108.9^ cmtomhon e«, do not nrcArnt iho «h j 1 t truth Fur many vca.B ihv-rc lias been a sy-tMiati: tin ccr-valua'lou oi foreign mncbaiidl- lai >oitoJ Into ibe United 3'ates, and large amounts hare pctii ►mitgcled into the country along oar ex tended sea coaaU and frontiers. To make no for utider-valoationti and emnggllng, and for coal ol transponation paid lo lorelgu shipowners, twenty Py w. tal lea*t abonld be added to the imports, which would ma';e the balance for tho nasi year ffali'M U>e United Male* nearly |ino,o»,o'ja U Is evident that Ibe balances bare been largely arnluft the United States fur some years past, whatever nay bare been ths custom bouse re tains.-On no. other giontid can the fact bo ac conuted for, that a wtj large amonnt of Ameri can bonds Is now held to Europe, .which are esti mated as follows, lo nit: : United omits b0nd5........ ......,*350.003 003 Mate sad tuunblpal bonds I>Q OOJ 009 UaUroad and other stocks andbonds, lO^itoC.wOO THE BALANCES AGAINST OK. iti* evidem. fiom these figures, that the bal ance* are against ns, and, chiefly by the exporta tion ol onr Govemmrnt bonds, are being tem* and improvident*?- arranged; leapor •»«y, because a targe portion of those bonds irtXi \ ce ? bou « bl on /peculation, ar.d will he ikdy to be returned whenever flnaaclal troubles in tie countries In which they are held shall make It necessary for the holders to realize apou them, or- woenever eatlt-factory proflts can be made hr rclnming Hum, which - will be wbeu the? nearl? approach Ihelr par value Is coin; teprovidmUy,- oceanse they are • being purchased at very low prices, ana ihelr -.exportation stimulate Import*, and thns cripples 'home Imtu-iry. Nothing U more certain than the fact that there can be no permanent resumption of specie pay ments in the United States until the balances be tween them and other nations shall be mads easy by an exportation of commodities. Including the products of the mines, equal at lea<C toourlm pollutions, and ontil provision shall be made for returning bonds, or lor preventing their return at onpropldona umes. This state of Ininas, it is conceived, cannot bo erected wilhoat a change in onr financial policy. DISADVANTAGES OF PAFEH CtmUBNOT. There being but one universally recognized measure of value, ana that being a value la itaeP, costing what it represents ts the labor which Is required to obtain it,the nation thaiadop e, either from choice or temporary necessity, an inferior standard, violates the financial law of the world and. Inevitably suffers for its violation. An irre deemable, and consequently depreciated currency, drives out of circulation the currency superior to itself; and irmade by law a legal tender, while its real value Is not thereby enhanced: It becomes a false and demoralizing standard, under Uie infln ccce of which prices advance in a ratio dlMprapor 4ioned even to tta actual depreciation. Very dif ferent Irom this u that gradual, healthy and gen etal advance of prices wUlchls the offset ofthe increase of the precious metals. The cola which is obtain, din tbo cold ana silver producing dis tricts, altiiungn it first aQecta prices within each districts, following the course of trade, aad in obedience to its laws, soon And* Us way to other countries, and becomes a pari of the common stock ol the nations, which, increasing in amount hy the regular pi oduct ofthe micas, and in sc tivUy by the growing demands of commerce, ad vances the price of labor and commodities throughout the commercial world. Tims, the products ofthe American. Australian and Russian mines tend firaLlo advance prices l’i their respec tive localities, but tbe operation of trade soon dis tributes ihes products, and enterprise everywhere feels and responds to the increase of the.nnivorßa! measure of value. All this la healthful, because slow, permanent and universal. The coin pro duced in any country will be retained there no longer than its productions and sales keep the balance of trade to its favor. As soon as it be comes cheaper <.if this word can be properly used In regard lu the standard of value) in tbu country iuvhicbitis produced than in other accessible conn tiles, or rather wnen I' will purchase more In other countries (adding interest, the coal of irana poriatiutv.dnties, and other nscessarr expenses) than in that in which it m prodnerd, or when it is required to pay balances to other countries. It flows to them by a law as regular and as certain as gravitation. Hmce, although the piecious metals are produced in considerable quantities tn but a few countries, they uilcrt the prices In a'l. Not so with a paper currency, which is local in its me ard in its influence. Its au> vantages, when convertible, are aflinTtcJ ; for, if convertible, although it swells the volume of cur rerc:., it rather Icm-aecs emvrpriv? than prices He convertibility prevents expansion, while Us larger volume gives impetus to trade and creates demand lor labor. But wn n a paper currency Is, an inconvertible currency, and especially wnen, b« lng to. it is made by the sovereign power a legal tender, it becoues prolific or mischief. Then tpeclebecomes-demouLtized, and trade is uncertain in its icpuits, because the basis is fine mating; tiicn pricr-s advance as the volume of currency increases, end require as they advance further additions io ibe circulating medium; then speculation becomes rife, ana “the few are on rlcbcd at ihc expanse of the many then Indus try declines, and extrava ance Is wanton; then, with a diminution of products, and consequently of exports, there is an Increase of imports, and higher tariffs arereqnired on account ofthe gen eral expansion, to which they, in their turn, give new stimulus and support, while the protection intended to be given by them to borne industry is Ic a great mea»‘Uro rendered inoperative by ibe expansion. This, notwithstanding oar large revenues and the prosperity of many branches of industry, la substantially tbe condition of the United Mates, and tbe important question arises, » Lat are the remedies f —MbUlbl). With entire deference to Congress, the Secre tary suggests that they are to be ound— First. Hi compelling the National Banks to re deem their notes at the Atlantic cities, or, what would be belter, at a single city. ikeond. In a curtailment of tbe currency to the amount required by legitimate and healthful trade. 77dtd. In a careful revision of the tar 12, for tbe pntpose of harmonizing It with onr Internal taxes —removing tbe oppressive hardens now imposed upon certain branches of Industry, and relieving altogether, or greatly rehering, raw materials from taxes, in order that the product of labor may he enhanced and production and exportation In creased. fourth. In (be Issue of bonds, payable in not over twenty years, and bearing Interest at not over fire per cent, payable in England or Ger many, loananonnt sufficient to absorb the six per cent bonds now bold in Europe, and to meet the demand there for actual and permanent In vestment : arm— F\ffTt. in the rehabilitation of the Southern Stake. nEDnimoN or national bake notes. First, ibe utility ol compelling National Bonks totedeem their notes at commercial centres, as veil as at their own counters, is apparent. The object of Congress, in the establishment of the National Banking System, was to furnish the peo- File with a solvent currency ol uniform value hroughont the United S ates. The solvency of the notes of the National Banks Is secured by a depositor bones with the Treasurer at Washing ton; not, as tho Banks arc scattered throughout the conntiy, and many of them arc in places dliH cull of access, a redemption of their notes at their respective counters is notull that Is required to make them throughout the United Stares a par circulation, it is true that the notes of all Na tional Banks are receivable for all public dues, except duties upon imports, and moat be paid by the Treasurer in case the Banks which Issued are unable to redeem them, but It will not be claimed that the notes of Banks, although perfectly sol vent, hot situated in interior towns, are practical ly as valuable os the notes of Banka in the sea board cities. It may be urged that, to compel remote banks Urns io redeem, would bo a hardship: but as very fuw wOi-manageu banLlrg insUintlons In the United States fail to keep accounts and balances In t-orro ot the Atlantic cities, tbu hardship would be lound, upon trial, to be imaginary, ratbortbau rial. But if it should be a hardship. It would be aneccsbaryone.and the interests of the banks muM bind to the Interest* of the people. Besides, without 9vch redemption, there will be practically none at alt. at least until specie payments are re sumed : and when there are no redemptions, there is always a constant tendency to nidation ami Illegitimate banking. The frequent and reg ular return of their notes Is needed to be j p the business el the hanks in a healthy condition, and thus invariably proves no less advantageous to the stockholders than to the public. Utiiess the hanks shall be compelled to redeem in United States notes, many of them will neither lend their influence in favor of a return to specie payments, nor be prepared for th"m when witliont their agency specie payments shall be brought about. If the determination ot the question was left to tbe secretary, ail the banks would be required to redeem in New York, tbe acknowledged commer cial metropolis of the Union. The designation of that city as the redeeming point for all National Banks would not only give absolute uniformity to their circulation, but would so facilitate the as sorting and returning of notes that practical and pcin-ra] redemption would be emoreed. It is'cer tain that this will cot be done under the existing provisions of the law; it is not certain mat it will be, unices all banks shall be compelled to re deem at a single point. This might be objected to by the banks In o>hcr Atlantic cities on the ground that it would aggrandize New York at their ex pense. Bat New York is alreadv the financial em porium of ttieUnion. Most of the interior banks keep their chief balances in that city, because they ate more available and valuable these than elsewhere, and lo compelling all tha banks to re deem at the metropolis of trade, Congress would be only Yielding to an unwritten bat con trolling law to which statutes should conform. The course of trade comnels and will compel, those National Banks whose Dullness if based upon the produces of the conntiy ,aad there must always constitute a majoriiy) to keep their chief balances in New York, whether they redeem there or not. If exchanges between tnab city and other cities should be in favor of the lat ter, tie redemption by tfitlr banks would be made at their own counters, and no sacrifice but that of local pride would be Involved in their being re quired by law to redeem at the common centre. ji> hen New T ork shall be a debtor cliy t.>"Bo-«ton and Philadelphia, the notes of the Boston and Phil adelphia banks will go home, and not to New York tor payment. t\ hat is required is an Active regular and actnal redemption oi vie notes of all the National Banks. To etiect this, local pnde should be sacrificed and minor interests should ho disregarded. What is said open this subject by the Acting Comptroller of the Currency is tally cndoited. ccnrAiurrsT or cvcnrscr. The second remedy anggesicd is a curtailment cflbe currency. The views or the Secretary upon the question of a reduction of the currency ha'clicen so frequent ly expressed, that li Is only necessary now to con sider whttuerthe curtailment should Jhc of the \ n « ra . Slai £? notes or of the notes of the Nation al Banks. On this subject his opinions have un dergone ro change since he communicated them mins reports as Comptroller of the Currency. Banks of issue, organized under Stale laws, havo been In existence ever since the formation of the Oovkimnent. By the decisions of Ihe highest tri bunals of ihecDonlrr their constitutionality has oocn arnnned, and they have become* so* Inter* wo» en with the business of the country, and such Jarce Investments have been made in them, that their destruction would involve consequences ot a very serious character. Whether or not the coun try, would have been more prosperous without thcm—wbether the stimulus they have glen to en*-rprise and the facllt- Hies they have extended to trade have or have rot been conn'crbalanccd by the artifi cial prices which they have created, and the actual losses which the people have sus tained by the crises they have occasioned, and by their snspcnfilons and lailures—ft Is too late to consider. When the National Currency act was passed by Congress. State Basks were in full operation, and no: less than four hundred millions ot dollar* were Invest* din them as capital. In some Mates, by Judicious legislation and careful management, they had afforded a local circulation satisfactory and safe. In other Stales, where no r* liable security, or Insufficient secnrlic, had been required for the protection of the public, and their management bad been confided to Incompe tent cr dUnonest hands, there had been numerous failures, and heavy losses tad been sustained by the holders of their notes. Soon alter Hie commencement of the rebellion, ll became appatrni that a heavy rational debt was to be created, the internet and principal of which could only oe paid oy a genera' syMum of internal taxer, involving a necessity for a circulating me* dlam cqnni in value thvongsont the country, and stfe for the Goiernment to receive m pavmcnt of dues. Tills sublet, of coarse, received ’the earn* t*l ai>d caiefhl consideration of the distinguished cectlttoan at that time the financial minister of the Government, who caused to prepared and submitted to Corgress a bill “to provide a na tional currency secured br a pledge ol United P'attfi bonds, and to provide for the cli eolation and redemption thereof,'* which, alter having been careinllyconsidered and thoroughly discuss ed, became a law on the 25th of February, isilk l*iior to ice passage of this act. Issues by the Government had been authorized, and a large amount of Government notes had been pat itro circulation. Bm there Is nothing In the acts au thorizing their Issue, or in the communications of the Secretary, orin the discussions of Congress, to justify ihc opinion that they were Intended to be a permanent circulation. On the conti ary, the provisions In the la * for their conversion Into bonds, and the arguments of the advocates ol their issue, afford ample evidence that they were regard ed as merely Umporaiy, and Justifiable only by an • m.igeucy which It was supposed nothing «lse coulo so adequately meet Ua ■it been proposed tliat these noies should boapeimancnt circula tion anu take the place of bank notes, there Is food reason 'Osnppoaethat thcpioposlUon ■•ould are bad few. If any, advocates. Nor was the National Banking Sys-em prepared by Us author, nor adopt'd by Congress, to desirov the State Banks, ncr 10 divert capital from backing, but lather to compel ail banking ions Issuin'* iioU-i- as money to secure them, beyond auv cob" cclvablc ccnilngincy, by depotUs with the treas urer of the United Mates; thus, wi hoa the agen cy of a Natonal Bank, providing a national cur rency which would save the Government and peo ple from lofset, of which theie was cucstnnt dan per. from a local and unsecured circulation. The National Banking System was Intended. while cot invsdlt g the lights of the States, nor daiuag. ing private interest*, to JarnUh tnc people with a permanent paper rlirn'allntt. The United States i-olCßMeie luicndcd to n.ccta tempers, y emer ge' c>, and to be retired when the emergency bad Tbe,.resent Secretary wa, not the 'advocate of the>atlonnl Bankltc System, amt cJamu only the credit of haring need hla best effort-* as Conmuoller, topntlt Into auccessful operation. 2JM ho l-ns no he-ltattou In pronouncing U a ran ImjnoTeineiiinpoD the system* wbicu ii anner rt. and one admirably adapted to ourpicu liar form ot Government. There are substantial objections to all hanks ol Issue, and If none ex istec in U.c United States, It might he very no, a itonable It any thoold be Introduced; but bating lahen th<- place of the State Banks, and furnishing as- they do a circulation as free from objection as ;any that is likely to bo provided, the-Secretarr is of the opinion t tube National Banks should be Mi**. that the paper circulation ..rue cotirlr.v morl'i be »educed, not by compeiiiug t,.tm io retire ihclr notes, but by the withdrawal ol il e United state* notes. Ibe Secretary is not tmmlndfnl of the savin* of Intel cm which results to the Government hv'tne uMTfits own currency, nor of the favor with which (Lis currency Is retarded by the oeonle* but all cor siderations of this nature are tnoretnan connicr-balanccd by the discredit which attaches to too Government by failing to pardtreotes ac cording to lbelr4enor,bx*llic b*di«\nnmae ofttui voluntary discredit upon the public moralr. Sid the W/fte-departure whlch-a: contanood issue of. hcal-lenormotes Involves. from past n*a*er If not frem thd leaching* of the Constltntionnsclf: The Government canhCH exercUe powe*a not con fpned by rta organk law or recestary for lu own preservation, nor dishonor its own engagem 4B j B wner> able to m»et them, without either a&ockliic 5Jf dimorallzlng the sentiment of the people; and the tact that the indefinite of the cir ctilailon o> nn Inconvert'ble but s<!H lecrUeuder currency te so generally advocated. Indicates how **f,. we « c "“dewi from old landmarks belli in finance and ethics. The views or tne secretary on this point were so tnllv B *. pie-red In hla former report that It Is notneces- Mry to restate them. It is sufficient to say that h £. °P mlona I unchanged, and that reflictlou and observation during the pastjear have assartd him ol their correctness. Anxious as ho is to lighten the public burdens and reduce the nubile deor, he does not hesitate to advise tbattuere notes ne withdrawn from circulation, and that th« furnishing of what paper currency may he required be left to corporations, under exuiln* laws ana such amendments of these laws as ex perience may dictate, fur Ibe better protection and advancement of the public Interest. How rapidly they may be ictired must depend upon the effort which contraction msy have upon business and m dust it, and can be better determined as the work progresses. The reduction could probably bein.- creased from four millions per month 'as contemplated by the act of Anm ? 12. ! 3H3C,£. to six millions per month for tho.preeeot flreal year, and to ten mUlions per mouth thereafter, without preventing a steady conversion of the interest-rearing notes Into bonds, or injuriously a dec line legitimate b-isl. ness. No determinate scale of rcouclton would, however, in ihe present condition ol our altilrs. be advisable. The policy of contracting the cir culation of Government notes should be definite ly and unchangeably established, aud tic process should go on Jnn as -rapidly as possible without pioductng a nnandal ertefs or seriously embar rassing those branches of Industry and trade open which oor revenues are dependent. There is a great adaptability In the business of the Uni (cd states, and it will easily accommodate itself to any policy which the Govemmeit injy adopt. Tuv. tic policy indicate* Is the true and-«aleone Ibe Secretary is thoroughly convinced. If it shall not be speedily adopten and rigidly bnt Judicious ly tTforced, severe financial troubles ate in store terns. |6W,Wu,WO , Secretary cordially approves what Is said by tbo Acting Compti oiler of me Currency, In h s report. In recant lo tne Importance of furnishing ihe people of the South with tho bank-note circtx laitou which their business may require, and agrees with Imn in the opinion watch be expresses of the beneficial results, political, financial, and social, to be eEected by the organization of Na tional Backs in the Southern btates, but he cau not iccommend an Inctease ot the bank-note cir culation of the country beyond three bandied niiUious of dollais, and hopes that ibe necessities of ihosc States may be supplied rather by a reduc tion ot the amount awarded to oilur States than by an increase of the volume of currency. ■ revision or the taru?t. The third rutneuy suggested u a revision of the iaiiti. for ihepnrnosc of harmonizing irwith In ternal luxes, a redaction of taxes upon raw mate rial. Ac., Ac. 'i lie sizir sixth section of the act entitled •*An act (o reduce internal taxation, etc.,” approved July 13, lsCC,pjov:dcs: “mat the Secretary of the Tieasnryis hereby authorized to appoint an ofllccr m Lie dupnnim-nr. who shall be styled 4 Special Commissioner oftuc lleveuoe,* whoso odea shall (ei minute in four years fiom the thirlietb day of June, eighteen hundred and sixty-six. It shall be the duty of the Special Commusionor of the Revenue to Inquire into all the soutccs of national revenue, aca the best method oi collecting the revenue: the relation oi foreign trade to domestic liidnstiy; themulnal adjustment of the systems of taxation by customs and excise, with the view of Insuring the requisite revenue with the least disturbance or inconvenience to the progress of industry and the development of the resources of the country; and to inquire, from lime to time, un der the direction of theSeciclary of the Trea sury, into the manner la which officers charged with tho administration and collection of the revenues perform their duties. And the said Special Commissioner of the Reve nue e ball, ft om time to time, report through the Secretary of the Treasury to Congress, eluter in the form of a bill or otherwise, such modifications of the i ntes of taxation, or of tho methods of col lecting the lexemes, and such other facts per turning to the trade, indusliy, commerce, or luxa tion oi the country, as he may find, by actual ob servation of the operation of the low, lo be con ducive lo tbc public interest." On tho Ititb of July last, Mr. David A. Wells was appointed Special Commissioner of tbo hevenue, under the authority above rcctled, and be was instructed to proccc'd at once to perform the contemplated work, giving bis clilei attention to tne una; with the view ol ascertaining what modifications are required to adjust it to the sys tem ot Internal taxes, stimulate Industry, and make labor more productive. The ability displayed by Mr. Wells In the per formance oi h's duties as ono of the commission eis for the revision of tbc internal revenue laws, and the heartiness with which be is prosecuting his Investigation?, give the best assurance that he will perlonn the work m a manner creditable to himself, and satisfactory to Congress and the peo ple. Ibc Secretary addressee to him on the lourtcenth day of September, 1806, a letter, from winch the following is extracted: “in view of the fact that the revision of tbo tarlu is certain to cn fage the attention of Congress at its next session, consider it especially desirable that the Treasury Department should Ire prepared to furnish as much mformaiioi pertinent to tho subject as be obtained and collected within the limited lime avnilublc for the necessary Investigations. You are, therefore, her- by requested lo give tho sub ject ot the revision of the tarifl' especial attention, and to report a bill which, if approved by Con gress. will be a substitute for all acts Imposing custom unties, and which will render tlio ad ministration of this branch o> the revenue sys tem more simple, economical, and cficctive. “In the discharge of this cuiy, you will con sider the necessity of providing for a large, cer tain and peitnanent revenue, recollecting the lact that the existing tarlS has proved inostedertiTc In this direction. You will, tbcrelore, endeavor, first, to secure for the Government a revenue com mensurate with Its necessities: and secondly, to propose such modification of the tarltf laws now in torcc as wilt belter adjust and equalize the duties upon toreigu Imports with the internal taxes* upon home productions. If tills last result can he obtained without detriment to the revenue, by reducing taxation upon raw znaletlals and tbc machinery of home productions, rather than by increat ing the rates ol Imports, it would, lu my opinion, by deen a.«ing the cos of production and Inct easmg the purchasing power of wages greatly promote the Intq-csis of me.whole country.” T here Is no subject which ha? in times pastnro voted so much discussion, and in regard to which opinions have differed so widely, as the tariff. It Las been a standing matter of sectional and po litical stnfe for marly half a century, and the sen timent of the people in regard lo it is still quite as much divided as when the discussion of it com menced Always a complex and difficult ones lien, it Is particularly so at the present uue. Trior to the reltclliou it bad uo relation lo internal taxes, for this form of federal taxation wa« tnen vnkn wn to onr people. It had Hule connection with ibc curreucv, for, until tbo year ISI2, al though the banks had repeatedly suspended spe cie payments, specie was tbc only legally recog nized standard of value in tho United States. Sow tbc question ot the tariff Is to be considered in connection with a permanent system of in ternal taxes and a depreciated, but it is hoped a temporary legal-tender currency. It Is obvious thata scale of dniles upon Imports which might hate bt on sufficient, judicious aud beneficial when there were no internal federal taxes and business was conducted upon a specie basts, may be insuf ficient. Injudicious aud injurious now. A large revenue Is at present indispensable lor tbo pay ment of the ordinary expenses of the Govern ment, the interest upon the public debt, aud for a fradual and regular reduction of tho principal, tee trade, although in accord with the princi ples of the Government and the instincts of the people, cannot be adopted as a policy as long as the puolic debt exists in anything like Its present magnitude. The long-hoped-for period when ibt rcj-ballbeno legs! oosirnctions to a free ex change of commodities between the United rits'es and other countries is still lar in tho future. Da lle? upon Imports aro not only necessary for revenue, but also lor protection of those home interests upon which heavy internal taxes arc to be assessed. Tho question now before he coonirv is therefore one of adaptation, rather than principle. Dow shall the necessary revenue be raised under a system of Internal <iud external taxes without sustaining monopolies, wilbont re* pressing industry, without discouraging enter- Erisr, without oppressing labor? In otherwords, ow shall the revenue be raised In a manner tho lean oppressive to tho people, without checking the pjofpcrity and growth of the country ? The Secretary i? not disposed lo discuss the question In this report. Tnls will, it Is expected, ue done elaborately and thoroughly in the report of Ibe Commissioner. Uc desires, however, to call at tention to a few important facts In regard to some branches of business In tbo United Slates, the consideration of .which may tend to give a proper direction lo the public mind upon a question so absorbing and imports uL 3>o single interest to Ibe United States, fostered although it may he by legislation, can longer prosper at the expense of other great interests. Nor can any other Important interests be cru-hcd uj unwise or unequal laws, wilbont other Inter cuts being Ihcieby*prejudiced, for illustration: the people of the United fctates are naturally a commercial and maritime people—fond of ad venture. bold, enterprising, persistent. Kow.lbe of:-agreeable fact must be admitted, that, with unequalled facilities for obtaining the materials, and with acknowledged skill in ship-building— with thousand? of mile? of sea-coast, indented with tbo finest harbors In The world—vrkn surplus products tbat require In their exportation a large and increasing tonnage—we can neither probably build ships nor successfully compote with Eng lish snips in the transportation of our own pro ductions. Tweotv years ago It was anticipated 4hat ere ibis the United States would betho first maritime power in the world. Contrary to our anticipations, our foreign commerce has declined nearly fifty per cent within the last six years. The tonnage of American vessels engaged in tho foreign carrying trade which entered United States ports wa^— In P«h 8,921,'?83 tons. In S.fMa/’GI “ in tR?O 3,3:2,1W) “ The tonnage of each vessels which were cleared from the United States was: In i*f>o 0,163,924 tons. In IM S 2,025,131 •* In 3f»G 2.330,176 •* The tonnage of ft reign vessels whicn entered onr ports waa: , In led) tons. In IK-5 JUJQ,93» “ In IBOC 4,410.431 ** 2he tonnage of foreign vessels which wc-e cleared was: In IMO 2,634,005 tons. In It 5 a,y«\W3 “ In 19.6 4.133,381 “ 111? tine that a Urge proportion o( this diminu tion of snipping and snlp-bnildlng wa.- tbe elect of tfcc war. The great aentnetion ol merchant ve'St-Is by rebel ci msera not orlr induced sales to centrals, bat disionraged ballalng. After the war, how. ver, the scarcity of American vessels ought to have preduceo, and. bat for a redundant currency and high taxes, wunld have produced ac tivity in onr snip-yards and a rapid increase of tonnage; bnt this has not been the case. The prices t-i .abor and materials are so high that sblc-bullding cannot b# made profitable in the bulled Males, and many of onr ship-yards are being practically transferred (o tbe British Prov inces. It Is only a few years since American ships were sought after, on account of their superiority and cheapness; and large numbers or vessels were-built in Mait.eand otner States on foreign ac count; or sold to foreigners, while, at the tame time, oar own mercantile marine was being rap idly increased. Now, many of onr ship-yards are abandonee*, and In others very little activity pre vail . It is true there ha* recently been some In crease in onr foreign tonnage, hoc a good part of this increase Is apparent only, and Is the result of the Hew rule of admeasurement. It is an Im portant truth that vessels can be boilt very much cheaper In the British Provinces th»w In Maine. Nay. farther, that timber can be ta&en from Virginia to tbe Provinces, and fium these Provinces to England, and there made Into ships which can be sold at prodt? while the same kind oi vessels can only be hnilt in New E» gland at a loss, by tbe most skilful and econ omical builders. Bat the evil docs not stop here: if the only loss was tbat which the conn t'v sustains by tbe discontinuance of ship-balld ing, there would bo less cause of complaint. It is a v ell established general fact, tbat th- people vbo build >blpa cavipae them, and thatanauon vhicli ceases to build ships ceases, of conse qntnee, to be a commercial and a maritime nation. Unle-o. therefore, the causes which picxcnl tbt building of ships tn tbe United S'atcs shall cease, tne torclgn carrying trade, even ol cur own production, must be yielded toother Mil if-j iho pcopi. ?. ,v v ltfd , J-,alcs « u-.h' not to be f-übiecicrt. It vlhcr tranche* 01 tedu-lryare to prosier if agriculture 1* to be profitable, and uacnfactarea ate to be extended. Hie commerce of the coautry mitft be. lesion d, sustained and increjsed mi Ut li ed Plate* will not be a first pow er amone the ra.icns, nor will her othci luda»uial interest remit m- long to prosper as they ought, if her comim ice shall he permitted to langur-h? ihe came came*—a rednudsm currency and high taxes—that prevent sblp-hnlidin*: tend to pitvect the buldl'g of houses and even of manu factories. So high are pi Ices ot every deVcript on hat men ho.liatelobuGa dwelilnga asSEi aS t* l '? ■** squired, and thus rente are so advanced as 10 he oppressive to'‘]>dthirbealtby growth of io»- ns and attes ts retarded. S 6 If Is tn reraid to manufactories, Billie which were built before the war tan be run profitably, but so ex pcmlu* ate labot and.msierials ibatnewmils carnot bo circled and pm into operation with any vitsiectof 'i ir returns upon the invcstmt-ni, un less upon vbe exp ctailon that taxes w iUrmualn as U cy are. ana price* lie sustained, if they are cotsdißxcid. Ihe same canses arc inhzriouslr aavcticc agriculture au<i other Intcrote which It te not twHsry to nartienlame. It Is every vteicobteivd that exl-Ucg htgh prices aronot oolv orpressirg the ptoses oj the peutile, but aw set lon sly. check hig the development, Growth! an« r piost>eruy of the country It is not ?en2d ffiri tire-Wa-which WMlij.hSSSgeSfJi. f. b i e w.?n « d -i” rn k 7 1110 ? u one “ttee of exist|j,n p-jces , but mainly they are the result of a redundant currency and high taxes. ■Jo take-the large revenue which Is now re nulrtd, by system* of Internal tod emeSSl dn ties, w|.i«h, working In harmony, sball neither i ? p T» ! »^. lllcl 2 st, i y or eheck enterprise, and which ii. i°. deY L cd 88 l P taxation bear most htavlly npfin those who are most tienefitted by taxes and by the debt wulcb render* taxation 1 tmmy, requires greal practical knowled ct and vise na»tsmtin?hip. This subject, alway* an in tci. sling one to the heailly indebted nations of 1-nrcpc, has become, as oue of the resnlis of the war, Iweresili g to the people of the United btates. Ibe Secretary does nor, as before stated. Intend to discuss it, «nt be ventures to suggest tlmt the following general principles, some of

uteeb have tern acted upon by Congreis, and the correctness of all of which have been proved by other nations, may be satcly adopted as a guide to the legislatte it toat Is now required : • “ let. Jbat the fewc-i nnmotr of arilclea, coo sment with the amount cl rev-nne to bo raised should be subjected to Internal taxes. In order Ihcl the ryatero may be simple In Ira execution, and as imie of entire and annoying as possible tu the tax-payers, £d. 11 ar the duties npon imported commodities sbcnld correspond ann harmonize with the <■*»* npon tome pronuctlons; and that these duties should cot Iw eoh-gh as to bo prohibitory, nor to Imildnp btme monopolies, nor to prevent that free exebanre 01 commodities which 1* the life of comnreice. Nor, on the other baud, thonld they be *o low as to seriously Impair the revenues, nor to subject the home manufccinrer•, burdened wjth heavy Intcinal taxes, to a compediio * with cheap labor and larger capital which thor mar be um.Uo to sustain. ', ’ Bd. That the taw materials used In building and mat.ulannrlDg, and which arc to be largely en hanctdm value by the labor which b to be ex pel ded upon them, should be exempted from lax arioo, or that the taxes npon Ihemaoonld below Ui comj arisou with tto texeu upon of-er articles. 1 a f V? Uf l oj. e? IjLlencd nation., and It la Lelievcd that the diminution ot direct revenue which it would Involve, if adopted by the Lmtea would be more than made no by the augmented value which it would give to laoor. ami by the Itcrcaae of pi eductions and of exports which would be sure to result from it. U should be constantly borne m mind, that taxes npon raw materials directly Increase the cost of production, ana thus tend either to reduce Ibe product of la bor or to prevent exportations to foreign markets. 4iD. Thai the bullions of taxes should fall chief lyuton those whose interests are protected by >ax&itoc,and npon tho*e to whom the public deUis a source of wealth and profit, and tightly upon the laboring classes, to wbou taxation aud the debt ore without so many compensatory ad vantages. ISSUE OT BONDS. H e next of the series of proposed remedies te an Ireueqf bonds, bearing Interest at the rale of not exceeding five per cetuand pa>ahl-io Emope, to an amount sufficient to absoibtheeix percent bonds in foreign banns, and supply the European demand for United States securities for permanent iD'cstnunt. No one regreu more tlian the Secre tary, t he fact that so large an amount of our bonds te held abroad, or theimtortnnateconduion of our Itaouwhich transfeired them thither. Tlie opinion that the country has been beirefltied by the expor tation ol It* securities, Is founded npon the sun peretlcn that we have received real capital in ex change for them. Tbl> supposition te, to a large extent, unfounded. Our bonds have gone abroad to pny for goods, which, without them, might not have oecn purchased. Not only have wo exported ibe snrjiins products of our mines and onr fields, with no small amount ol our manufactures, bat a large amount of securities also, to pay for the arti cles which we have purchased from other coun tries. That these purchases have been stimulated and increased by the lacility of paving for them In bonus, can hardly be doubted. Oor impor tations of goods have been increased by nearly the amount ot the bonds which have been exported. Not a dollar in five of the amount of the fivc-iwcmies now hold lu EngtiiLil and npon the continent, has been re tnircd to the United Stales lu the form of real capital. But if this were not ft true statement of the cure, the fact exists, as has been already stated, that some thiee hundred and fitly millions °l Government bonds— not to mention state and railroad bonds aid other securities—are In the haul* ut the citizens of other countries, which may be retained at any lime for sale in the United States, and which, being so held, may seriously cmbairawj our edoits 10 return to specie pay ments. After giving the subject careful conrid cration, the Secretaiy bas concreoed that it is ad* vteabie that he should be anthorized to Issue bond not having more than twentvyi-ara to run, and bearing a low rate of interest, payable In England or Geimany, to be used in taking np the six per cents now held abroad, and in meeting any foreign demand tor Investment that may er tel. Ibe question now to be considered is not bow shall our bonus be prevented from goln<* abroad, tor a laige amount bas already gone, and otbeißwill follow as tong as our credit Is good and wc continue to bay more than we can pay (or In any other way, bnt how shad they be prevented from being thrown upon the home market, to thwait our efiorts in restoring the specie standard. The Secretary sees no practica ble method of doing this at »n early day, bnt by substituting for them bunds which, being payable .principal and interest In Europe, will be less like- to He when their re (am w tho least desired. The holders of our securities tn Europe are now subject to great inconvenience and not a little expen-e In collecting their coupons; and it IB snptM sed that five per cent, or perhaps four and a nail per cent bonds, payable in Londoner riaiiAiott, could be substituted for our els per ccnte, without any other expense to the United States than the trifling commissions to the agents through whom the exchanges might be made. TLctnvxng of interest to be thus effected would be noincousideiablo Item; and the advantages of having our bonus lu Europe placed In the bands of actual investors te too important to be dlsre gatuco. REBABIUTATIOK OF STATES. Fifth. The filth and last remedy suggested is, the ichahlniaiion ol the States recently in Insur rection. Jn lallcdiitg'(° this subject, the Bccro*a:y feels teat be steps upon dangerous ground. and that he raay be charged with introducing a political topic id a financial report; but, Id his opinion, there is no queHion now before the country more impor tan i in it* bearings upon our finances than the po litical and consequently industrial status of the Southern States. Embracing, as they ao. one tbitd part of (he richest lauds la the country, and producin'? article’* of crest value fbr home nee and for expot ration to other countries. Ihelr position with regard to the General Government cannot remain unsettled, and their Industrial pur suits cannot continue to bo eenonsly disturbed, without causing such a diminution of the produc tion of their great staples as must necessarily arect our revenues, and render s'lD more unsatis factory than th»y now.are,our trade relations with Europe. As long as the present anomalous con dltlou of these states continues—as lone as they have no participation In the Government, to the support of which they fampto contribute —it Is Idle to expect tbatthdr industry wUJ bo restored or Ihelr productions increased. On me contrary, there is reason to apprehend that nntll hiimoniou* iclations again exist between the federal Government and these States, the condition of their industrial Inter ests will become day by day more uncertain ai:d unsatisfactory. There will be no real piosp* nty in tbeso States, and consequently no real prosperity iu one-third part ot the United States, until all possess again equal privileges ntder the Constitution. Cun the nation be ro garded as In a healthy condition when the Indus- I try of so largo a portion of it isderanged? And ; can the labor question at the Somh be settled as . ‘w/w political status of the South is uaset , lied? Can the national credit be elevated and the I public debt be rapidly reduced unless the South- I em States shall largely contribute to the public revenues; and can such contributions bo relied upon as long as they remain in their present dis- J franchised condition ? ’Will the tax-payers of tho I North continue to be patient, unless their burdens I of taxation can be lessened by being equally • shared by the people of the South? Itegarded t thus as a purely financial question, the relation of j tlicsv Stales to the Federal Union is an excccd ■ Indy interesting and Important one, and as each I it demands the ca.m and carelnl consideration of 1 Cornices ntsmrnoK op erects pitxtst. I The Secretary has thus presented In each man , ner as his pressing ofllcLU duties would permit, : bis vowt of the financial condition of the counity, I (he causes of trouble, present and prospective, ! and iLt remedies for the same. If these remedial measures shall he approved by Congress and en forced b* appropriate legislation, be is confident that specie payments may be resumed by the time our interrst-bcaringnotes arc retired, which must be done In lea.- than two years, and probably will be iu a much shorter period. These measures look to au Increase of labor, and consequently of production—to a fulfilment of obligations by the Government and the Banks —to a reduction of the public debt at the same time that taxes are being equalized and lessened —to iowct prices, and appaicntly holder, hut real ily more prosperous times—to a restoration of I f-pec.e payments without the financial troubles | which usually precede a ri-somptlon altera long I period of suspension and filiation. The (secretary | dues not mean to assert that the adoption iof all these measures (although he re ; gards each as important) Is absolutely j necessary to a return to specie pay -1 menu:, nor that other remedies may not be adopt ed Ly Corgi ess to rescue the country from im pending financial troubles. He presents, as he ' considers it to be his duty to do, bis own vie»s. and a-ks that they may receive carefnl considera tion. ai d be adopted if they commend themselves 1 to iho wisdom of Congress, and rejected if measures heuer calculated to secure the oes.'red end «.an he devised. The most sanguine and borctnl most perceive that the business of the country cannot foramneb longer rime be ran upon the present high level with safety. Tue speculative iai'-xoct, large and powerful lo itself, is receiving daily new accessions of strength hy the increase of iuoivlcnal credits; acd when speculators and | debtor* control the financial policy of the coun try. a flnutcral collapse U inevitable. These un toward at*, dangerous influences can now be re sitted. and the true interests of the people re- should be misted promptly and ro!>a'i»iactoryas Is, in many respects, ourcon there is cause for congratulation that we -have thus far escaped those severe financial troubles which usually befall nations at the dose ot expensive atd protracted wars. With our vast resources and the buoyant and persistent energy o: a tree people it wlti be our own fault if we do : net escape them altogether. The tjccrclary baa pointed out the financial dan rets arornd and bi-foie us, in order ttat the* mar 1 be considered and avoided before they culminate In general disaster. Suongaslshls conviction lhal we have been tor reme time, and still are, moving In im wrong direction, and mat much of onrpros pcrityl* unreal ai d unreliable, his confidence In the ability of the conntnr to riAt itself speedily la ursbaken. We have hnt iourted the surface of onr resources—the great mints ol onr tiational wealth are yet to be devel oped. The experiences ot the past fouryeats have only assured na of onr >uecgth. Ills only m cctfary that oar true situation be understood in order mat the proper remedies maybe applied. IT ere la no insurmountable obstacles lo the way of restoration lo perfect financial health, without the pairlul trials 10 which it has been apprehend ed we must first be subjected. To be a co- worker with Congress and the people In efiecting this most desirable result ha* been, and will condone to be, tbc highest aim of (he Secretary. After acsieful survey of the whole field the Secretary Is of the opinion that specie payments may be resumed, and ought to nc resumed, as earl} as lie first day of Jnlv, ISCS, while he In dulges the hope lhal such will be the character of future legislation, and such the condition of our productive Industry, that this most dcHi-ablc event may be brought about at a still earlier day. statxxxst or renue DEBT. The follow leg Ls a statement of the public debt, JurcED. 8 C, exclusive of cash in Treasury • bonds. ip-(j*s, 5 per cent, due In 1**.... ...fITUIMW B<icv, faciDc Rillreil (Mr C«CT, dee Id lt&6 and IS9&. 6,045400 Fcbcw 5-‘.t*a 6 per ccst, dne la Eotd*,6p*rceot,doelnl«l.... 20,*n.793 Bu.d.*,6ptrcent,dnelnis&o.... 18.41X000 mi:s.s i'»r cent, dne to ifti.... ’ Jo,ao.i<n EctCf.spcrcent,durlnisir.... t,ot*,ooo. Boi da. 6 p*r ernt. dnolo 1508...' &s«^4i ,Ulo,aWoo LkiQStiltlClßt, ouelfi 1667.... 9,41X90 c< Interest nou*,dcela IHI aoslStS 159.015J10 740 Txmury boUb. due ta 19CT acd u(8 80X91450 Bord*, Tau lodeianlty, put 983497451 dee. picaented. $353,000 Eoi d#, Trtuufj iotca.XcL.put Cnr.Lol pretcaied. 3415,69] Trirprrary lean, ten data* bo- 4,574.075 tUt 130475,196 Ccmdcaica of UOtbicdteas. ra*tdnc,DOl presetted 2643J.DC0 Uplted sratea cotes f4«^njes rra< iion»» mmno 37.070.876 Gold certificate* of deposit 10,71X110 Tetri t2,753,12X879 Caxb In Treasury, |ia^B7^(s.u. BTA, uS-u K^T,.’^ r rtJ ® uc ocTonra Jd, Wnnn. irir? X ?' l ‘ ,IVE OT CASB *■ TUKAgfUr. * Bonos, IWC'S, 5 per due In * * PoLc«,“r«cific &YlVoaV,«*^r* 171,069,550 _®nt, floe m IS9& aiiQ uyo apnoea 6-30**. 6 per cent, cue in _ 16£lf, li3sl ted 158... muim Botdc, 6 per cent, rtne ta 3^171,750 Botd*,«pereent,onelniWo... ta,415.a» Bom a, 5 reruot, duels 1874 . IO.iCG.OOO BocCs,sp«reent,duelalS7i... 7ny>w Navy pension fund, 6 percent.. 11,'80.000 Btmds, 6per"cent, due in 1965.. - s^ja* l4,7 * <07,1 M Bones, 0 per cent, das ia 1567.. tltuSoo CoDip'-oud l&itrttt notes, doe • *ipj ßl ’" ftnd 145A12,M0 *•-«' and lew 724,011^100 Bonds, Texas Indemnity, ps«t 838,5684*1 dne, not present* d.. . 534.000 Bond*. Ir««sary Botes. Ve»- !win. cetiiCciiM of tedebtedneas, put dae. noipmcated. 56.60i.0w United States Botes t30C.U5.78fi Brsetioßaicnmiicy..:..; Gold certificates ol deposit. ]( *K« | q<in • - C9.680.7g ; Cashm'iTeaenrV,' ; . THZASCRT RECEIPIS. .hiTKi^ r s tßrar «'to»tiaa that the xocelpU fot STlivfS- q arten ending June SO. IsOlTwifi be as pffiiss sse cca ... 30,030,000 - -—SVu t rvx)jnQff - wilTJ e e^ cadlture *» according to bis estimates. |Vr the civil service ......... 57405.94) Indians 1)463417 tor the War department, laclnd. - t°£jD® “*vr .Bepiiapent i£044.610 Fer aitcrest on the public debt.. L “ T I ln e * snrplns of estimated receipts over estimated expenditure# of. 13430A56 i«-i e^ c pla < , r or t ? c next flscai year ending Jnno »> e estimated as follows; From ctulomj *1454)06.000 T?y“ fwenuo *365,0c^000 ttym lands 1.000.000 From mixedliaeoua sources... .. 35.00U,000 Fo?u,.'J3Kf‘' lUn . r “ * re Mtim.ted mmSS?** i or the civil service. M0.067A43 vifr tMlans JOJS3.O Department, Includ- Pf.-^^v 000,00 ? r ° r bountic* 110,861,961 r or ihe Navy Department 3X351.605 ror Intereaton the public debt.. 133,618443 tsOmaten ciDcnduarea of. **0.717,7*1 TRADE HEnVEEN CAXADA ASDTQX CHITSO STATES. cojoperclal Inlerconrse between the United btates and Bntlsb America, the Secre tary adhere* to the general opinion expressed In his report of IS6S, iba? until our revenue system ta I#%'^ r ®2j flC <i«hd a.ijpptcd to the financial situation S f i“ e f°P n,f y» tbla enhlect should not be placed beyond the control of Congress, but should bo left !2-rtl Dcarrel,l -i e S ifll * t io7i and such regu iiious as I? . eaau, T_s epar i Ine c m *7 be authorixedby law to prescribe. Another reason for arrange ments thus flexible rspiesented by the nnceit&lnty of the political sltnatfon of Britten America. The scut me of confederation, which proposes to trans fer questions of revenue and external trade to a single central aotboritT. has not bcenadopted at'o the ojiposition to loc mcasnre may prcvaU with the n.w ministry of KugUnd, cl her to modify materially the terms oflhe Quebec Con vention, or to subject the whole measure to the hazards of a popular vote In the Provinces. However the political problem may hesolved, it is not unlikely that when the United Stales shall have simplified existing methods, agd reduced existing rates of taxation, so as to receive the largest amount of re venue with the least burden to industry, British America will he prepared to undertake a system of public improvements along the channel of the St. Lawrence and tbroogn Noitbwcst British America to Ibe Pacific coast, which, by the financial necessities attending Us adoption and the administration of a federal gov ernment, will snggcit a Zollvcrcln, or a complete assimilation of excb-c aud custom duties on each side of the northern frontier. At present, inaction upon this subject would appear to bo the true policy of the United Stales. SALE or WAilOtS HOSPITALS. Under the authority conferred by Congress at Its last session, the Harioe UospboiS at Burling ton, v 1., at Chili Jetton, S, C., and at Cincinnati, 0., have been sold, and proceedings have been taken to dispose of others not required for service, when It shall be found possible to obtain lair puces for them. A sale has also been effected of the old marine bosplial ot Chelsea, Massachusetts, on satis factory terms. The’ new hospital building at Cbcteca, and that at Cleveland, tibto, have received such additions and repairs as were necessary to pat them in serviceable condition, and all marine patients within practicable reach of tin n>. have been gathered there lor treatment. A similar plan 01 concerUatlcg the patients at prominent points bas been, as far os practicable, pursued throughout the country, by which, together with a rigid adherence to tne fundamen tal principles on which relief should be afforded, the expenses of tbe establishment In the Northern Males have been materially reduced, although the enlarged demand for hospital privileges at the &uuib, consequent upon the reopening of that sec tion to commerce, in connection with tbe very ex orbitant prices prevailing there, will canse the total expenditures to be somewhat Increased. It is hoped,however, that this Increase will be at tended by a corresponding addition to the collec tion ot tuxes from the seamen. _ nEVEXCE CUTTERS. The revenue cutters on the Atlantic and Pacific coasts, and on the lakes have been diligently and usefully employed In preventive service dur ing the last year. It v»as found inexpedient to sell, as authorized by Congress at its last session, the vessels hereto fore reported as unsuitable for tbe cutter service, (wi-b the exception of tbe Cnyaboga, the largest of tbe class, which has been otteredforsale. ont bas not yet been disposed of,) until their places should be supplied by others. Consequently they have been kept on active duty, and will not be withdrawn until the small sailing vessels, eight la number, which have been rej-enfly contracted for, shall be completed, as they are expected to be. lu the course ot two or three mouths. So soon as these ran be assigned to duty tho olherawlllbe withdrawn and sold. mikes. On the second day 01 August last, in accordance with the provision contained In the Civil Ayoro- 6 nation acr, approved on Ibe 2£th of July, 1500, ir. J. Boss Browne was appointed a special com mifsioner to collect statistical information con cerning the gold and silver mines of the States and territories west of the BocLy Mountains; and on the 12th day of September last. Mr. James W. Taylor was appointed a commissioner to pertonn the same work in tbc States and Territories east of the mountains. Tbcir preliminary reports have not yttbcco received, but it Is expected that they will be In season to be laid before Congress early in the session. The wet! known energy of these gentlemen, and their familiarity with the subject of mines and mining, leads the Secretary to ex pect .bat their investigations will be thorough, and their full reports Interesting and valuable. A copy of the instructions (which contain an outline 01 the duties devolved npco them) accompanies this report. ‘ _ TUB CALTTORXIA MIST. On Ihe third day of June last, Mr. John Jay Knox, a clerk in this Department, a gentleman of excellent judgment and business halilts, was sent to Califorcla to examine into the condition of the Mint, and ofthe office of the Assistant Treasurer in San Francisco, and to took after some other matters in -that quarter, of interest to this Department, ilia report contains so many vain* able suggestions that It bas been thought ad visable to append itto the report of the Director ofthe Mint. Particular attention is requested to that part of It which refers to assay offices, and their inutility In remote districts, if, as he con cludes, the business of assaying can, not only without detriment, but with positive advantage tu the mining interest, be lelt entirely to private enterprise, where there arc no established minis, the Government should be disconnected from it in such districts without delay. THE STATISTICAL BUREAU. The Statistics] Bureau, authorized by the act en titled “An act to protect the revenue, and for other purpose?,” approved July 43,15-6, was or ganized on the fifth day of September last, by the appointment of Mr. Alexander Delmar as Direc tor. Mr. Deltnar deservedly enjoys a high repu tation as a statistician, and it is expected that, unoex bis direction, this Bureau will bo of great benefit to this Department and to the country. Alter putting in proper condition the numerous books relating to commerce and navigation, which have been transferred to this Bureau, the Director will prepare reliable statistics of the resources of the country and the extent to which they are being developed. Monthly rcootts of imports and ex: ports, taxes, impests, wages, products, and mar kets viil also be regularly prepared, and every means employed Jo ascertain tbc progress of pop ulation and industry. The Secretary Is happy to be able to state, although little more than two months have elapsed since tbc Bureau was or* gunited, ibol good progress baa been made In the WOtk devolved D"on it. 1 icnT-norsr board. • (WUJ'UUIQb DVAJO*. Accompanying this report will bo found a high ly Interesting report from the Ught-Hoosc Board, which presents In a condensed forma history 01 their operations from 1882. tbc date of (he organi zation of the Board, to the present lime. In no branch of the service have more skill and ability been displayed, than in this, and m none have the outlays been productive ot more satisfactory re sults. COAST SURVEY. The work nrder the Coast Survey basbeenpros ecuted durirg the pa*t year with accustomed energy, and Hr operations have been lecommen ced on tbc coart where they have been for some years past interrupted. The importance ol these surveys was fully established during Ibe recent civil war, and they cannot fail to be of constantly increasing value to commerce The work is steadily advancing towatd completion, and the Secretary recommends for it the proper and neces sary appropriations. TOE butt. For the detailed' operations of the Mint and branches, 1 respectfully refer to the report ol the Director ot the Mint. The total value of the bullion deposited at the Mint ai.o branches during the fiscal year was J3-,W7,186.85, of which £37,223,610 17 was In gold and $1,728,510.71 In silver. Deducting the rede posits, the amount of actual deposits is £^•1,011,71924. The coinage for the year was In gold coin, £25,313,914.10; gold bats, £9,115,4884**: silver coin. iCtO.iW.Bti; silver bare, £9.6,36208; cents coined, one, two. three, and pieces, £640,570. Total coinage, £29,6W,;7J.40. Total bars stamped, $10,031.9 4.80. ibe gold deposits of domestic production, were, at Philadelphia, £2,618.616.34; Ban Francisco, 517.4M.431U8: 2?ew York, Denver, t1C0,952,VL The silver deposits were, at Phil adelphia, 18C.U8.61; San Francisco, $623,063.21; J«ew York, £213,461. The cold and stiver deposits of-forelgu produc tion were £2,017.674.76, Tbc amount ol gold coined at Philadelphia was J1u.016.C48: at San Francisco, £15.217, t>00; of stiver, at Philadelphia, £310,714.80; at San Francisco, KSb.9BO; of bronze and nickel and coppers, at Philadelphia, f‘■50.2C4.50. ArrausEMCSTS. The law enacted at the ia»*. session’of Congress. pTO'ldtng for the rcoicamzauou of thesTStem.of appraisements at the port of New York, has been carried Into effect. So little time bas elapsedslneo U.c new Board was organised, that the necessary reiuime have not yet been consummated; but they have been undertaken with so much energy ana Judgment bv the Appraiser. Mr. Thomas Me- Eiiatb, that the best results are confidently actlo patec from the reorganlxation. THE EVEJiUiQ STAB. Recent calamities at sea. especially the disaster to the eteamrhip Lventng Star, on the third of October last, whereby two hundred and fifty Uvea were lost, indicate a necessity for the enactment of Judicious laws for the government of onr mer cantile marine, with especial refetence to the more complete security of passeogen. It u be 11* red Oat in this particular we A f«rbehind some other nations; and while this la the case we sha-1 not attain that maritime strength and pros perity to which we should sspttc. An inquiry mto the cause of the disaster to the “Evening alar,” made by Captain W. M. Mew, under instructions Crom this Department, elicited several frets, to which eameat attention is Invited, showing as they do'be radical defects lo existing laws, and indicating the legislation (required to prevent loss of life and to enhance the value and security of property in «hips. A copy of Captain Mew's report fa herewith transmitted. bcuxau ntpoirra. Ibe attention of Congress is respectfully caTed to the accompanying inurtstiog reports of the heads of the respective Bureaus, all of which contain valuable information and suggestions, and indicate the aatisfactory manner in which the rercral business of the Department is being con ducted under existing laws and regulations. r ile efficiency of all the Bureaus would, oowever, have been greatly increased, and the expenses tbettof would doubtless have been reduced by ti e passage of the bill for their reorganization, wbico was under consideration attfce last session. The machinery of tbe Department, sufficient for the prompt acd proper performance of the public buMness before tbe war. Is insnUiclent now. Tbe But ecus need ri-organizatloTi, and justice and ccoucmv demand higher compensation to officers acd dciks. * The becrttary is under obligations to tbs officers rr.acKrl.B 0f the IKparmeni for the very satia faciory manner in v.hlcb, with few exc pilous, they hare cnting the rast year performed toalr impor tant and lesponeihle duties. Huou McCullocs, Secrctaiy. Hon. Scnun.Kix Couas, Speaker of the House of Representative*. REPORT OF THE COHHTSSIOBEB OF IKTERNAL BETEMUE. TteAatnnr Detahticiwt, Omct op Ixtesxal I Kivmri, nxaniBOTOB, November 30,18G0. f 1 have delayed the preparation of my annual re port for the htcal \ur l-t-6 somewhat past tbs time when required by law. In urthrio avail mv . self of the latest n.-tninairoro the officers of the several collection di-trici*', and to present, so far as I osfible, seme of the results of the law aa amended by tire scl of July 13, which mainly look &vct on the Ist of Aogmi last. n lib the slncle exception of the relief of para* one oil and crude petroleum from lax by the Joint resolution of Slay a, 18»Ts the receipts of the last y*ar were from the law as amended by the ? c, .£* Naich, JSCS, For the first time, therefore, in the pillory pf the office, Ihe tabular statements compiled in its annual report substantially ex nibii the proceed?, from vailons source*, of statutes existing through an entire year. Tnclr aggtet ate amount is considerably In excess of this efaUmarcatlhe date of my la>t report, and. as I have reason to believe, of the estimate of others S s , Tcn Jboupht toth? subject and were ff®* 1 of ancces-fsl operation of the law. Ihia excess rame largely from marnfac tbe opening of Southern markets, and from cotton, of which there was a greats supply than waa anticipated. Theamo mt Jtatlf la not far short of the revenue for the two years next pnceding, and very considerably In ex cess of iheßriilehri venae for the*ear 1308 from ennomp, exdfe, stamps, property tax, and post office. Indeed,- lb? entire revenues of the empire exceeded those of thla office only in the stun of It cannot be denied that (be payment of this. enormous tax has presi ed heavily upon all classes ofcnrdtlxene; hntjbey have teen encouraged, bythercmembcrtnce that not only were the cur tent expenses of the Government defrayed there* by, but that the national debt. Incurred for the preservation of the national life, was ibna grad ually wearing off. 1 bave thought it adrlssblc to present a state ment of the aggregate receipts of Internal revenue for the past year, at d of their principal sources, in connection with a bke statement for the years lf€4 and IKS, that comparisons may be made of the proceeds of different laws. AQOUOATZ »» nMS. Toe • sere sale xeceipla of internal revenue were for tne year HSft ISC6 •55906.W4J7 These ataonnla include drawback*upon goods exported and anionnta refunded as erroneoaslr u-eeeed and collected, bat are exclusive of the direct tax upon lands, and the duty upon the cir culation and deposits of National ; BASKS, TBCBT COBFABZXS_AK2> UATCICS ETSTITO- 38(4. Dividends and addi* lions to 8nrp1ne...f1,5^,010.73 R,657,8C9.6S $4,188,023 78 Circulation. S,CoR,UUbSO 1,953,661.54 999,338.11 Diposira.... 780,723.03 8,043,541.08 2,090,635.63 Capita] 003,307.33 374.07441 Doting the year IHJ4 the taxnpon dividends was three peranum, while in 16G5 and ISGOU was five per centitn. >lbe, tax upon circulation and deposits waa In* meaeed for the Taa two years. The dlmlnntlon of the receipts Is doe to tbe conversion of'be state banka into national associations, which pay the tax upon their capital, circulation, and deposits to tic Treasurer of tbe United States. was flm taxed by the act of Jane SO, BAiLnous. I*lll bIIUAUC. lEG4. iy h 5, J 866. piTldendf..fS27,QS3.Bß $2,470,316.69 $2,200,801.15 Interest on bonds... 694,859.09 647/83.61 3,255,918.98 The receipts for ISC4 were from the tax at three per centum; those for the two subsequent yean at five per centnm. Tbe law of June ah 1861, first imposed a dnty upon profit* carried to the account of any fund, or used fu construction ; and the re ceipts from that source arc included In the divi dends of 1605 and 18t6. ISBURAHCS COMPAHTES. Dividends and additions to surplus $443,806.17 $7M,655.35 $707,231.12 Pieminms and assessments. 523.552.42 961,502.99 1,109,723.23 " he taxation of dividends of insurance compan ies during these three years was the same as that of banks. Ihetaxnpon the gross receipts of premiums and assessments was one per centum for the year 1504; afterwards, it was one and one-balf per centum. * TAX OH SALAUIES O T OFFICE-HOLD EM. “J® 8,717,394.69 TLe tax was three per centnm for the year 1864, five, and was uniformly imposed upon the excess of compensation above tbe rate oi ICUi per annum. 'lhe increase for tbe yearlSCO above the previous year Is in part due to toe three months 1 extra nay allowed to those honorablydis ebarped trom the military and naval service, the late settlements of many disbursing officers,and the large amounts paid as prize money for ves sels captured prior to, but adjudicated upon dur ing, that year. .... BEVEHTE BTAXTS. I s # U,162^02.14 ItW 15,944,373.15 The receipts of JSCS were Increased by additions to the stamp schedules under the act of IjCL and those ot ibOG above those of by the uso of stamps In the States prior to that lime in rebel lion. During the last j ear the sain of $1,7112.412.63 lias been neeived trom the sale of one cent stamps, and 1hat0f53.59*,465.b2 tor stamps from special dies for matches, perfumery, cosmetics, medicines, and other proprietary articles. Ihe double neralty Imposed by law Is o great security to its falthlm observance. Be cause of the Invalid ity of an unstamped Instrument, the party receiv ing it. and to whom it may be of value. Is likely to insist upon tbe attachment of the appropriate stamp. It ia this penalty npon the receiver which especially enlorc* s the requirements of the stat ute. I believe they have been more generally re gaided dating the past year than in any one pre ceding. ARTICLES EX SCHEDULE A. is&l $529.«3.35 164.0 1,692.791 65 Gold watches and piano-fortes were added to the* schedule before tbe annual returns were made in 1£65; and In IrCfi, {426,557.1; were received from tbe lotmer, and Irom the latter $403,5?ix7. The receipts of the year 1865 were but slightly affected by the addition, os they tuclndc hot a very small portion of the proceeds of the annual list of that year, ihe annual list ol May. 1803. was mainly col.ccttd alter June 50ib, and increased the re ceipts of iho fiscal year JWiO. }®s 12,599.(511.25 Ihe Increase of receipts in 1863 waaduetothe increased classes of persons subject to charao un der the act oi ltG4; to ihe Increase of ihe license duty upon several kinds of business, and to the reassessment of wholesale dealers under the same statute. The increase In ISO 6 arose especially uom the operations of the law over that portion of the South irom which, prior to that time. It had been shut ont by the rebellion. The receipts for the fiscal year 3861 were mainly from the annual assessments of 1563 upon tne In come of 1502. Receipts of 1563 were from the In wn.e of ISC3, and those of 1506 largely from that Ot lhe collections !n 3664, s6.9l3,BSi.S9werefrom incomes taxed at five per centom; $7,930,970.77 at three per centum ; and $75,373.98 at one and one hali per centum. Of those of ISGS, $691,941.99 wei e returned at ter. per centum; $9,931,758.55 at five per centum; 59,6u7,-.M!5.96 at three per centum, •y* vloiMUa.lij at one and one-half per centum. Of the reret] ts in the fiscal year IsGO, *26,570,809.55 were at five per centum; and $31,501,122.61 at tea per centum. The country Is now divided Into two hundred mid forty collection districts. From one hundred and eighty-five of them the desired returns have been received. Of the $39,953,110.51 collected In the Tailed Slates np to November first—as repotted to this office by the federal c011ect0r5—5'4,798,726.10, or nearly elebty-eeven per centum of tQe entire amount, was assessed in these one hundred and eighty-five districts; and ol the persons who wtre assessed in bese districts, t90,J89 returned an income of less than one thousand dollars; 102,513 of more than one thousand and not more than flrejbonsana dollars; and 31,009 of over five tliousantrdollars. These sums were allin excess of six hnndred dollars exempt by law from taxa tion. 3 his ratio will be chanced somewhat when the full returns are In, as a greater proportion of the largest incomes are acquired in the older States. Tbe whole amount received from the tax upon Incomes dree the passage of the law of IS? 2, and including the collections during the Present fiscal year, already reported, to ills office. Is $164,665,018.05. BOS AND STEEL HV THE VAR I O tTB PORES WlUCti ABE SPECinCALLT NA2LLD Ct THE LAW. JgO *3,«H,165.)9 ■g* 9,51W8.63 16 “- iVss, jne ta-iipon tli6:3 Articles waa Increased at evety fcefion of Congress until tbe last, when it was very largelt reduced. The increased receipts were due not more to tbe increase of production than to the additional number o: articles made taxable and the increase ol tbe duties upon those previously taxed. BETISED PETOOLErar AX® coal oil. Jgs $V55£23.50 • •• 5.317,396.05 Refined petroleum paid ten cents per gailon,and dunlltd cotl oil eight cents, until Jane SO, >SGI, when the rates wete respectively changed to twen ty cents and fifteen cents. The receipts Tom these articles, It will be seen, are rapidly advancing, indicating their largely in creasing consumption. CIGARS AXJ> CBEROOTS. 1564 $1,255,424,19 D 65--- 31U72.1T6.50 LriJ 3.474.139.91 During tbe year lS6t and for ten months of tbe year IBts the receipts were from specific taxes, graduated by tbe different values of the cigars. There taxes were largely advanced In ISCt, aud by the act of March 3, 1865, a unltorm rate was im posed often dollars per thousand. The rece pts after May Ist of that year were almost entirely from that tax. CIIEWIXO A3TD SStOKrifO TOBACCO. I?C4 $ 7,068,6*4.74 18C5 8,917,020.63 1606..... ... 12,339,921.93 The'tax npon smoking tobacco was Increased from five to twenty-live cents per pound In Jane, 1664, and to thlrty-fivo in March, l&S. except npon that made exclusively ol stems, which remained at tn et ty-fivc cents. Fine-cut chewing and ping mainly paid fifteen per pottnd. until June, 1861; after that thirty-five, until March, 1865, when the tax was increased to forty cents. lhe production of taxable tobacco In 1963 was 23,R. k P.(56 pounds; that of 1364 was 63,372,428 pounds, ot which more than 10.009,000 pounds were retained In Jane, to avoid tbe additional duty under the new law then shortly to take ef fect ; that of 19C5 was 3629,020 pounds, and that Of UC6, 35,746,851 pounds. large quantities of tobacco manufactured in the South before the war and during lU> progress were thrown upon tbe market dnriig tbepa-t year, to the great derange ment of trade and tbe embarrassment of regular manufacturers. Regulations, so far as wnsutent with tire law, were adopted by the department for the collection of the required duties when this tobacco came in competition with that which had paid the tax. but its sale and consumption In the south were permitted without charge. That man ufactured and removed from the place of manu facture pner to September l, 1562. was, of course, not anywhere subj ret to tax, an d It was this which so senon-ly disturbed the interests of manufac turers. It has now, however, nearly, If not alto gether, disappeared from the market, and most of the tobacco which is now consumed secures rev enue lo the Government. I anticipate largely in creased receipts from this source. ITEXXETZD UqroSS. During the rear 1565-*6C tbe »ax was one dollar per ban cl. Tbe collections for ten months of tbe year JEW were at the rate of sixty cents. This in crease for the year iB6O came both from increased consumption and from improved thoroughness in tbe operation of the law. DimLivn spians. rii , fii ttJMJTUS In ISM the tax was twenty cents per gallon, until March 7, of that year, when it was raised to sixty cents. From July 1, ISC4, to January I, was one dollar and Arty cents, and after wards two dollars. Much of tbe consumption of ISGS was of spirits dl-tilb d in previous yeara, a anlidpailoa of hi created tax. Tbe receipts danog the several mouths of the last fiscal year were as follows: July Angum .... s*pu mber. Ociotcr.... November. J eceiuber. Ja< uary... February. March April.. jure.. During the current fiscal year the receipts were !s- Jnly $3.0154990 Acgu>4 Scilen ber October (m> far as reported). These amounts are all exclusive of the lax upon BTlilte dLctUled from apples, peaches andgrauo*. ~ t opptarßth:jl tlie total from ditU l lcd erl»»e v for the Tear from November 1, I . 18, A to November I, wore *37,127, £0 43, . I Trere la mote uniformity in the monthly re- ! “'P'* f heu- in the dHchlTTlop of spirilla fret ' wUcb arises front tUnaae of bonded warehouses, withdrawn m,tu tha satnoerw Wauled’for*'consumption;* wfacn-the ' lax i* paid. ; Ibcre Is probably no tax Imposed by the law i which is bo largely chatted b» those subtree to Ua I BrovltlOLaasUeuixupon distilled spirits. Nor ; i there anjjiom the .ration of which ao large, toe.' tunica lo the 7 government, unless it' be that ■ open trecine. *" U will lc.abtfdrvcd«boweTer, ibatUiere has been ,a ihe monthly re m “OPthplnta, arising, undoubtedly, from the i v« c iil lßl , l^ e stock which hi»d . accumulated In tbu I“®°£ obtains has been consnmed; that (hede !" «« c - no ola 1 , « i? , y '\fucb accflnnt3 or the e»- oald nTv-n? In u .'.' ,lllc "« a™ «JJmie4 mrf ’paid n.aKe It impos-itde—o-rive a perfectly ao t xw ? ie o?«!*«Slueai»d collection thcifeventfo fbr the Near 18u6.'-M«it' expewes mourn* finch* the-year .wereTnotpaid : -until after raclose, imo amounts were paid .on iccotnt of cipeufiM cl previous year* ediuaied last 3 ear. , - ~ . ■ . Frcm an eoctmioatkmef the allowances nade to the ditboraiLg oflicirs. the payments on account of this office, and the statements of assessors' com* pematlon and expenses, made by toe Filth Anchor of tie Treasury, the expenses of the past fiscal year appear to bo as follow^:- AttesfOrs'ct.m’r-atioD and cxp , ae?r...f' 053,073.09 AsMstant Assessors'compensatioti. .. 3,069,961.60 ColUctor.*’compensation and cxpS*es, 2,161,710.14 i*upip. cf exports and drawback 16,714.00 Bienne agents 33,455.79 Special agents assigned to thla office.. 17,226.59 Revenue Jm-pemon.. r.r....... 121.073,70 Special revenue commiaaion........ . 22.050.G0> and cleika in this boread....'. 277,672.71 Stamps and cotton tape... - . - .* 17T,US9SS Other inndentaUxp'sesofibiaoffico. 40,093.98 CommUfcion on sale of stamps 756,536 oi T/59.TU0.48 This Is less than two and cne-haU per centum of tbe total receipts, exclusive of drawback sad emus refunded as erroneously collected. The ptrcenlagn of expense is less than for the pterions year, because the receipts were largely Increased without a corresponding increase in the cost of collection. rnonanLE nrcszm for - thz nutarsr fiscal It is not easy to estlnjte with confidence the futmerevenneof a conntryao extended as onw, especially when It la drawn from ?o many and aucb various sources. The difficulty increased when oiflercnt classed' ot business are acHonaly disturbed, a* they must be by the various Infill* encte which always adect them at the close or a Cieat war. T* ere is an uneven piodnctloa of taxable articles; of some the prodoctioo la silmnlaled, while of othera It is retarded, or pe> liaps altogether destroyed. There are certain as certaiLab-c oats, however, which bear upon tbe subject. and 1 herewith snbaut a tahnlar state ment of tbe receipts during the months of July, August and reptember, of 1864,1565 and ISCfI. as shown by the certificates of dcpositwbich reached this office doting those months respectively: Jtecelpts la 1964. te». * ig6«. , fiwpwjsjo tn.rau.47e.T3 tr.ow.iaus Actual.. is,«lift%st bepumber.... lSAtS.77q.7a 57,389,4t5Al 53,714,718.66 Total Is this connection thc'Veceipts from several large sonrecs of revenue for the firstquarterof the pres-m fiscal year JSGB may be regarded is im ppnzut. Tbe retan-B arc not tally received front al! the collectors at the time of mi wrt inn. Tney are required monOily from each of ;the tiro hun dreo atd loriy collectors—ln all, seven honored and twenty fprtbennarier—and all bat twenty tiro ate included in the following statement* Beccipts from— ' Clothing. iDcludlngbooUand ISoft. ecoes and other articles of tec fabrics a-ade of coin a. 2.439.2J3.53 SJ7S.G39 9S Cloth tod all textile or knit- ted Übrlcs made of w 001... 2Aa,70302 rams j? atasMTg;! 1 506^tR,f« FcinunU-a liquors v jo tplnudUUUed Horn apples, _ peaches and grants St.tSS.7l rtowci Spirits distilled irom other materials.... Eefiaid petroleum and coal oil Clgan, cigarettes ana efie- «ots ‘60,75351 1,060,61155 Tciscco, smoking and chew fcnuu IS4.IOUU Oil er rnasulactnres and pio duciloca not enumerated ab0ve................... w .. 15,190,467.17 15,751,10165 Gro»h receipu ot railroad, 10-uranct-. expreas and tc.e , graph companies, &e 5.614.799.43 1554.531.40 J-vcanw 123J16.49 st\3dS.Ts SS*" 10 "" 1 over fttu and not over 55.C40 17,50W31.E8 15^55346.73 Iriomts over |CIO and over I 5.10» 24.773.763 06 OCL3ia.3a9.T9 Btamps In all dUtrlcta JLOIO43SJ7. 5^470117 The articles named in the free lh>t of the act of July last w ere exempted Horn tax from and after the passage of the act, or tbe thirteenth day of that month. Tbe redaction of tax upon other articles acd objects of taxation which that law provided, took efiect on the Ist day of August following. Tbe taxes which accrued during August aud Sep tember were respectively payable in the months of September and October. 1 have endeavored to secure from the several collectors their abstracts ol collections during those months, in order to exniblt. as far as possible, tbe product of th I .* new law for August and Sept* xnher— the first two months of Its operation—in connection with* that of the former statute during the same time last Tor. Seventy-nine of the four honored and eighty abstracts due have not been received: but tan able to Indicate very nearly what sum the total receipts will reach by giving, together with the iccttpis reported a> compared wpb the receipts nom ifie same districts last year, tbe total receipts from all tbe districts during September and Octo ber, ISCS: ■. CoUoctlrns Total coulee* _ ... .... reportrutor ttonstor S?pt. Clothing. Including boots, sept and 04C, andOcu slovs, cloves, liatn aid 1&& other ankles of dress.. M.’Kj.t'j.Ti Cloth ana all textile fabrics w*. . ..» of cotton 1.642 A IJ9 7.0 3.931 JO Cloth and all textile fabrics „ot wool I.o99JiAat 1.965.051J3 S tnneuted liquors 1.075X7L56 »h *»w*m Spirits UUtUiid from apples. wa,«s».w peaches, or grapes 69A9CL26 iiaisjo Spirits dt'tiiied from other ”* 3SWU * 14^jis.49 materials 5,557,17083 1131,637^9 Bcflaeu ptttolcum and coal OH 643.9W.96 1,153,96118 Cigars, cigarettes and cbe- _««u 50370. U 5C7.551.73 Smoklcg aid chew Inc to> „ bacco 3.033.C68.43 I'W.Wa.KS SnutT. 150413.79 113.73348 Iron m 1U vanooa tormi and conduit os ra.513.29 132131745 Other m&ocQkcturea and production! not above enunciated. Total of maunfaitorea and piococttoos ; Grew receipts of railroads, Iciorance companies, Ac.. I.OOXSPBJ7 .fU.019.T0i3 . 30A&',3i0.W . S).«ft,t».SS The tax upon boots and shoes and most wearing appatel not exempted was reduced from six to two per centum. That upon cotton was increased from two cents to thiee cents per pound, but the receipts were Ices than last year, because of the accumulated product of previous rears, which was at that time brought to market. The lax upon refined petroleum and coal oil has been some what modified m its application, toe heavier oIN being exempted, and the tax upon some of the lighter being reduced from twenty to ten cents per gal lon. Ibe duty upon low priced cigars has been reduced, and that upon those of greater value in creased. The gross receipts from transportation of property are no longer subject to tax. It will he observed that the increased revenue for these two months from distilled spirits, fermented li quors and tobacco,above that received lor August and September, Is nearly equivalent to the loss which resulted miring the same period from the reduction of taxes upon other articles. Tho com pensation will not be continued, however, and the receipts for the lasi three quarters of the present fiscal year will sot equal by several millions of dollars the collections for the same time last year. Fram a careful consideration of all the facts m my possession, however, 1 believe that the re ceipts of the fiscal year 1507 will reach the anm of two hundred and eighty-five millions of dollars; (S2SS,UK>,Ct9.) T«f per cmi'M rnuLnss. Tbe addition of ten par centum as a penalty for the non-payment of the tax on or before a certain day is sometimes a severe hardship, from which there Is no relief even in cases ot sickness or ac cident. In some Instances large manufacturers, punctual usually in their payments, from the failure of a mail or the unexpected absence of a clerk, have been subjee’ed to thepaymentof seve ral thousands of dollars. Embarrassment would often arise to collectors If they were clothed with power to add or omit the penalty at discretion, and I belLvc that a penalty ot five per centum for neglect or refusal, and interest at the rale of twelve per centum per annum from the time the tax is payable, will be amply sufficient, while from its greater equity U will occasion less complaint SPECIAL TAT. Tbe special tax ac: of July 13, 1533, is a snbrii- Inie foi the license tax of the eariier laws. For cvjdlnp its payment when due the law provides Imprisonment not exceeding two years and a fine of not more than five honored dollars, or both. 'Where the Imprisonment is never visited, and the fine la made the nominal eotn of one dollar ouly, as it is represented to this office it is in some Judi cial districts, regardless of circumstances, that which seems to have been considered by Congress as an offeree worthy of special punishment does not bring upon the delinquent even the amount of the penalty imposed tor failure to make a monthly return of manufactures. 1 recommend that tbe imprisonment, except for violation by distillers, rectifiers, and manufactur ers ot tobacco, snuff, and cigars, and dealers in liquors, be abolished, and that the minimum fine for failure or evasion of payment be fixed at ten dollars. With this change, relief by positive en actment should be given certain classes of per sons against whom it has never been deemed ne cessary or Just to enforce the penal provisions of the statute. Teddlert.— To those articles which persons are authorized to peddle without payment of a spe cial tax, 1 recommend tbe addition of fruits, vege tables, pies, cakes,and confectionery when sold uy persons on foot, tans protecting many poor wo men and children striving to earn a livelihood, and who. In numerous Instances, have been sub jected to anxiety and cost. and retail df alert in liquor.—lhe law of 1862 discriminated between wholesale and re tail dealers in liquors by the quantity of single sales. A sale ol three Gallons or more at one time constituted a person a wholesale dealer. The present statute provides an additional test, and any person whose annual sales, including sales of other merchandise, exceeds $25,00u, la a wholesale liquor deafer. The tax upon a retail dealer in liquor is twenty five dollars; that of a wholesale dealer one hun dred dollars or more. Many dealers whose aggre gate sales are small may occasionally sell to quan tities of more than three gallons. Oue snch sale Impose.- anadoiricn of seventy-five dollars. Itis difficult for revenue officers to ascertain in such cues when such liability has occurred. It is bur densome for the dealer to pay the amount. Tbe law often falls ot its legiUmateparpose,and I rec ommend its modification by rriklng out the limit in quantity, leaving only that of value or receipt. DtPc/rer*.—Butchers are required to pay a. spe cial tax of ten dollar, and ate not regarded as dealers. The repeal of the tax upon animals slant htered has removed tbe reason for tbe measurable relief of butchers from special tax, and I respectfully recommend that when their annuel sales exceed the sum of $25,090 their tax should be increased precisely as that of dealers Is increased. Humber* and gat-fitter*. —These persons now pay ten dollars only, tfaw same amount which is paid ire retail dealers. I see no reason why they should not be taxed npon their sales as dealers are taxed, and as wholesale dealers when their annual rales exceed $25,000. Equality of taxation is greatly de.ired in revenue laws. DISTILLED SPOUTS. The provisions of law beating upon the distil lation of spirits were essentially defective prior to Ifcc set ol July. They were Insufficient, even in the bauds ol the most experienced and vigilant officers, to prevent frauds, cither In large or small distilleries. 3,537,151 is 3Jts!t«U9 Great numbers of small aLQIs, for the illicit man ufacture of rum from molasses, were secreted la the garrets and cellars of the most populous cities, while many of the recognized and licensed distil lenes were run by night, their proprietors keep ing Indolent accounts qf their consumption of grain and other vegetable substance?, and Ueir production of spirits and the sale or removal ihereoi to bonded warehouses. In every distillery, the daQy production of which was one bundled gallonsurmore,assessors were instructed to place an assistant, whose doty should be to record the removals of all articles to and from tie premises, and generally to ace that all the reqnltements ot the law were piled with. Collectors were urged to onasasl watchfulness for’he minor andjaillcensed ilislil leiles; ard every thing was d«be which wan be lieved to bo valuable, add which the law would authorize, to check the frauds, but without the desired success. The new law has mo.-e produc tive power than the old one. Its punitive pro visions are more numerous and stringent and toe the spirits from the ae nal aijd ox clmlve posscs-ion of their owner. Immediately upoc their distillation, 1 have no douot, will be of acTantage to the Government. If In times of political excitement U were prac tical lo to appoint men to tbe office of Inspector fer Ibelr Incorruptibility and general fitness, men who love honor more than money, rather than those who are pressed for place as a reward or aa Inducement (or political ehorl, the appointment of an Inspector to every distllleiy might be profit able to the Government, It requires a man of 535125U5 TS.GSU'S 1.366.00.0 3,057,10^0 3 73309.71 5.7!3J3&9t 3,04.701.47 5J31, 3.056.17t37 3.1(1,196^1 i537.613A0 3 0M.3J7J0 a.Msma tried integrity to resist the nattering tnupta'lons of a con opt di>ii]|vr. Ten thousand dollars adroitly and wickedly expended may bide the > manolactore of i thousand barrels of wines, which sroold ,'ield a thousand dollars •i for the public revenues!. If,an Inspector haxfor i gotten ma duty to a single Instance, be is ta tbs pow er of his porchaicr for all subsequent traxu -1 actions, becoming Lx. constant 'protector,' and hla' ■ j ready wltneas_acalnsttbc Government. 1 Cm 11 feme sort of metre is found which, while I the f till iuelf under the and seals of the Coven men, shall Infallibly register tbe distills. UC " for 4 he IDB£CC»iop_Of. Iwn nr pnrn offiCCIS, eacb'o be a check upon the other, trust must, mote or it-fs. he Imposed In a tingle man. 1 re ?Lcr®*b«« cter, such modification of tha tavr . nt °. ri ? e collectors to faicrchange the ; uirpecton. of the several Uhtlllerfds within their . We » ioth « several persona may; an * « IrrognUr iritecvalv . ci f. B *°L“'J l “'•“ni'nj. tins to ransoi-- tent lee ting the talihtnltcas of each other, while ■ | together they may pment the conamximaiiun of■ frauds by the matmf-cinrcr. ! I cotroji. . .-j : ' Curing tte coniinnaccc of the rebellion it was .impracticable to the ’ax upon cotton in the. fdiftrieti of ns procucrton. 11? a»«e«smeiif, where ' ■ever.found, was.anostulous, but neeevary. (Atlhe lasteesaioo of Congress no incon«ldetabu»4 amount of time was speu by the commUtees hav ing the subject in ctarse In deriving a method of taxation which ebonld be somewhat analogous, at. least, to existlt.g provisions to otbvr taxable ar-, tides,and which should bcsafetathe’Goremment whi e. It muserved the rights of-pcodncere and Ehippers. The plan adopted allows the nnobsiract ed movement of colUm in any collect ou district °»lts niodncUon, but permits Its removal from 5; PC “ diUKlcVouly upoupajment ni the tax, ornn cer tec pcitnlt r>t the x-tcesoiiupon the execution - oi such iran?port*f3n bonds or other seenritv, fiQcil rcgnlationß as shall 'b® Commiaaloner of Internal 6u bj'‘Ci to the approval of the Secretary tlfiri!* Ik 11 t 45 Dnl been deemed'prac llnn t in, ,^rreß^ ~bc °\J Uf wcuritv thantrausporta-: and no other has ueeu proposed to Ibo, CIQAU9. ?Li en^°^ ar ' cr thousand upon alb J lsar * {['‘Vvstti by the act of Mare > 3. 2^k Wa *j mo^ cn^ llormly paid than ihe tax under SSJ ?£? loa# Itw * F *' wer desrs escaped Uxnt'os. ’bere « as no opportunity for fraud when theft lull number was returned to the as-e*aot ' - The diderent qualities of lohacc , and’tbe virr ing coats ofmanniadare in different pang 0 f tfai • country, induced a change at the last session a’ Congress in the mode or taxation, with wi?Si* ’ relieve neltheribemannfretnrecsnorihe rerenm oCccrp are folly satisfied. revenm - On drars, the market value of which is mr over eight dollars per thousand, the tax is now Im o dollars. the market value in over el"ht dollars aid aotoycr u.ehc, the lia la roar <fo“ ls»f. mod In addition thcrero twenty per Centura ad valorem on the market mine thereof. *.stv obeer ‘ ed *?’ tae appJicat‘dn of this I C f b« r e were cigars of the market vaj t e of fliteen dollars, they wonld be subject to me specific tax of tour doDars, and the cd caldron frx of tL:»*e dollars,making seven dollars; leav ing only eight dollars forme manufacturer, or the tame he would receive should he sell them at twelve debars per thousand. No advantage can accrue to any party bur the Government from rales at overtneive and lesathan fifteen coltuv and ta a consequence there are no sorb soles* The tax beats very heavily, too, until the market valno is veiy constderaoly above fifteen do br ibe Goveiument setting the major part of the r eera unol the value is twenty douara or uio. There « very great difficulty, too. In dercrminir the market value." Upon other manufactures subjecUo an adr rtm tax, the basis of taxation is oy law the “a. sales _ made by the manufacturer. It is clan that clears ate sold for more and sometimes • than their “market value." On the other bt it Is c erlalnJy utterly impracticable lor ts«la» asseseoi?- unacquainted with the price and qa ties of cigars, to asceilaln what that market val la, and there follow therefore umnbt-rlesa rrauu and great Inequality of asseesment. So muchot the lax as is aa r tlorem should be levied upon tbo exetes above twelve dollars, and It should not be npon the market value, bat upon the value as esti mated by actual sales. In this connection I would also recommend. If the fax I* to continue to be estimated by refer etice to nine, that the privilege of removing cigars JnbooQ be withdrawn, with the stnele extepaot, of cigars, all a:ticlcs whichare remov able in bond nrdir the internal revenue laws are subject to specific taxes, so that >he amount of duty can be unerringly ascertained i.yiho use of the scale, the hydrometer or the gaugin'* rod. When cigars are placed in bond, it becnmejMnxes fary for a valne to be placed upon them, and as the£yecm under which bonded warehouse's have been established did not contemplated the em ployment of competent appraisers, the result la cons'am uissatistattiun ai.o complaint. EEDVCISG THE MUSED or Taxamt ADTICLES. nesr.tmcgtLar the necessities of the treasury will allow itc gradual reduction oi taxes*, 1 would, express my belief that In mi other way can ino measure of relief be granted, both to tno public ami to revenue officers. as in tbe reduction of »hc cumber id taxable articles. The ad column tax of five per centum upon manufactures “not otherwise provided fur/’ added to the tax upon those specially named in vatious pans of the Uw, I* becoming a source of Irritation and oppression. Taxation is the rule, but, an early as practicable should be made «he exception. The sou.c»*-*of rtvenne, which ought to ue few. may be counted by hundreds. Protection, should he cnooma"ed. as it is the foundation of the individual arm no- Ilona] wealth. Whatever constitutes an eh meat in tbe maculactaie of another and a taxable arti cle >honld itself be exempt from lax. I;h>tnc ultimate product ibclf which should he ns-essed, ami then only from nccessliv. lr U „ L«er. too, to levy a Urge tax noon a lew articles than a sm il tax upon everything- It is less expensive and annoving. Experience is rapidly te-cbing this Tcseon, which we mrgbt r.avc Icaraeit Irom older nations. England and Fra-cc, alike, derive almogl their entire excise la* from four or five specified articles.-il ma» not be practicable for us immi diately io secure fi om so few sources the large amount vv Mch we now require through Indi net taxation, hut additions of such Congress shall dtteimlnc should be tnauu to the list of these exempted aa rapidly aa the amount to i.c derived from such taxation can be salciv re duced. THE PtUECTTAX. The collodion of direct taxes inffac £tatc« which were lately continued thron-’h the last fiscal rear ana thereafter, until. u*»dcr tne amhonty ot the Hlb section of the act of Juh es. l&C, itwas suspended bvti.u order of the setrc lary of the Treasury, bcailug date from the .Jd day cf August follow lug. Xo lands Lave been sold for unpaid taxes since the suspension of such sales bv uie order of the secretary of tbe Treasury, issued May I7,i&w. INCOME TAX, V V/ B I. > A- That portion of the law of IS<U which relate* to Income was hut slightly lunched by the act at lie last session of Cong.-ess. "Various amend* ffient* to It were adopted by the Uoa-e of Keyre scutatncs materia]]/ improving it* svmmat y aud general requirements; but tne uiTpossihtlitv of then passage m reason for the ammal of the cm rent year, and the pro- suit- or more im portant business, induced the Senate to dt-fer their consideration. They will probably he pre sented again during the coming winter in a new bill ft om the Lions-c. M9J,9TOJS 5,73J,9®.73 Of thc-e amendments lhe most important vra», ptrhcps, the ixempnon frotnrax of one lUoaraml douar?. Instead of six hundred as is nowp.-ovrdcd. It Teas, of course, the purpose of the la»vto ex empt so mneb of one's income as was demanded by his actual necessities. Six hundred dollars w«» hclievettoto betheminlmnm expense of such at the time of the passage of the flr 3 t law. Since then the Internal lax npou commodities, the In crease o! easterns dut», and the dupreclatiou of tbecnriency, have wrought an almost universal tdvpnce in prices, and 1 believe th* same reason' now exists for the increae of th; amount ox ex emption which at first secured any exemption whatever. .Z&TVX&n 27,653, 1X.77 1^66.667.05 Should this change he made, there should be a coi responding amendment to that portion of the law relating to th*? tax up n salaries of persons employed in the service of the General Govern ment. In determining the amount of taxable income under the present law, profits and losses front transactions n real estate are consliferel only when Its sale Is in the same vear with its purchase. This aibitrsry rule Is not made applicable to per feuuai pTojicinv, and as th te see »-s to be little rea son for its existence at all, T believe itshonlubc amended. Tbe present Income law expires by limitation in onitn aronmcATiox* or nrs law. Various amendments, iu audition to what I have enego-ted above, seem necessary in order to make clear and posltivewhal is more or le-s in volved anil doubtful In several parts of the law, but their propriety can be morefnllv and satis factorily presented to the attention of tns appro priate committees ot Congress when a revenue bill is before them than within the proper limits of this report. 1 am, sir, with great respect. Your obedient secant, E. A. Rollins, Commissioner. Hon. 11. McCcllocu, Secretary of the Tieoiury. REPORT OF THE COMMISSIONER OF THE GENERAL LAND OFFICE. The following tea synopsis of the Commis sioner of tne General Laud Office, to tuc Secretary of'hc interior: lhe public land*, in 1733, amounted to about , 354,000 square miles, 226,560,909 acres. The whole . of litis area has been completely surveyed, and . the field notes recorded, all taaccordsncc with the | rectangular system. Since tuat period the area of oar domain Las Increased to 1,455,4>>8,500 acres, I with a •ea coast on the Atlantic, the Gulf. Facie I and Puget Sound, equal to s.i2omtles. The po litical subdivisions' over which surveys have al ready been completely extended, are: Ohio, In diana, Illinois. Michigan, Wisconsin, 10-va, ills som I, Arkansas, MU-u>sppi, Alabama, and nearly so in Louisiana and Florida, and those in walch this tyelem has further to advance, are. Minnesota, Dakota, Montano, Kansas, Nebraska, Colorado, New Mexico, Arizona, Idaho, Utah, and Washing ton Territory, and the fatales of Oregon, Nevada and California. Tbe aggregate area surveyed in all tbe States and, to June 3J, iB6O, is 474,166,551 acies; nnsurveyed. 99,.3J9,2D acres. The aggregate lu miles whten has beenren and marked on the earth's ratface, ia establishing these surveys. Is 755.129. For the pas* fiscal year the cash sales, hound locations, quantity taken under the homestead act, and tor swampln plan, tor swamp indemnity, for railroad grants atm agricultural college scrip,-re equal to 4,029,322 acres; and the cash receipts for the same period, $521.645.C€. The theory of conceding for actual settlement in preference to'cash sales, is examined hy the Commissioner, mid prominent authorities are mentioned who have favored the some. The quantity of land surveyed on June 3>, 1806, tnclcdlng private claims, is equal to 831.259 farms of 160 acres more than t,5U0,900 of SO acre tracts. Besidtb the municipal conces sions for military service and Internal improve ments, there have been granted for schools, seminaries of learning, universities, agri cultural and mechanical colllegcs, 3i,645.D00 acres, while the estimated area des tined to pass for educational purposes m territory west of the Mississippi River is 56,155,099 acres. The area already awarded tor rad and wagon roads, with that yet to be segregated, will . be equal to 157,>33,731 acres; some for the con stmcimn of great highways ot travel to the Pacific, - and others to link together lotermedfete points, lhe commissioner gives a sketch of the pre-emp tion system from ISUI to iSlLaud tbe pre-emption laws of IS4I and 1843. Tbe spirit of these enact ments first manifested In 1891, though, checked three years afterwards, was developed In sixteen different statutes during the in'ervcnlog period of forty years, and until IS4I, when the prospective pre-emption were incorpoislcdlnto onr legislation as aperma nentpollcy. those laws reaching surveyed lands offered and unoffered; later legislation extending the privilege to nnsurveyed lauds, with excep tions, from tbe Mississippi to the Pacific. ±Te emptionsaunder the act ol 1853, are allowed on even-nun tiered sections along tbe line of rail roads, when settled upon and improved prior to final allotment of gran’ed sections, also to lands ' where coveted hr French, Spanish, or other grants, declared Invalid by the Supreme Court. The art of 27tb of March. 1831, recognizes the set tlements made prior to the withdrawal of lands from market. * Ihe municipal town .site law ot ISM, and the pre-emption provision in tbe graduation act of lSsi,bave given way, the one to Ihe town property arid coal-land laws of 16GJ and ISCS, the other to tbe homestead laws of ISC2, ISW, and 16C6. Tbe CotnmlsJioutr discusses tbe provisions of tbe Homestead law: Tbe purpose of this measure 1- to bold out incentives for Imtal grants to identify themselves with the broid fielos ol the West, and to secure their labor for such a fierlod in the strecrlA of manhood or mammy of ife as will insure stability in settlements, devel opment of arable resources, and steady increase ot agricultural wealth. This great origvial meaa nre should stand unimpaired to us lull vigor, and ita results wiil continue to increase thu producing power of tbe country. It has been sug gested whether the privilege should not be enlarged by opening npunsorveyed lands to Its operation. This question is discussed by the Comi'd&lorer at length. Iron and cqjl property on ppbllc domain; the three broad belts stretching across ihe country c ontaining the precious met als ; petroleum in California, and JegldlaUJu rc fallng 10 minerals are touch-d upon. The lands ottered at public sale in the tot fisc»f year amount to 6,i£VJSt acres X in addiliou to whl<b other lands, heretofore wuhdrtwn ftom - sale or citry, have been restored to market. All accounts of receivers of public mane', and - disbursing agents have been adjusted 'o tb-*clo.-e of tbe fiscal year; all Are percent- due tie land Mates hate bees sojosted as far as accrrvd. The system which controls In adtustment* o'recclvars and disbursing agents* accounts, and **o relation this cias of officers hold In irgsrd tr h o acquW tlunol liilc, by pureha>e, or otherwi*, of pu-‘lc lands Is discussed, un»* the c*utmiss'Ooer recommends that the iii’crdlct 10 peel, that a plies L> •J-.-r. ral Lao* Office employes shall bo made general In ••stard to all employes in laud adxui&UtrtUMt* “» d -Dea