Newspaper of The New York Herald, December 6, 1845, Page 1

Newspaper of The New York Herald dated December 6, 1845 Page 1
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THE NEW YORK HERALD. Vol. XI., No. XJG--Whole No. 4188. Plica Two CwiU. REPORT OF THM SECRETARY OF THE TREASURY, ON THE FIXA.NCJS8 OP THE GOVERNMENT. Treasury Dkpartmknt, > December 3, 1846. > In obedience to the "Act supplementary to the act to estnblish the Treasury Department" the un derpinned respectfully submits the following re port: The receipts and expenditures for the fiscal year ending the 90ih June, 1845, were as follows: Receipts AMD MliHi. From cstoms $37,638,113 70 From sale* of publio Unda 3.077,033 30 From miscellaneous sources 163.994 60 Total receipts.. . , 39 769 133 66 ! Add balanoe in Treasury, July 1, 1841.... 7,867,370 64 Total mean* 37,636,613 30 Ths Expenditures during the same fiscal year amouuted to 3t,968,306 98 Leaving a balance in Treasury, July 1st, 1846, Of 7,<68,308 33 As appears in detail by accompanying statement A , the estimated receipts and expenditures for the fiscal year ending 30th June, 1846, are as follows :? Receipts. From Customs, 1st quarter, by actual re tarns $ 8,861,983 14 For 3d, 8d, and 4th quarters, as estimated . 16,033,087 86 Total from customs 34,600,000 00 From sales of public lands 3,300,000 00 Frooi miscellaneoul and incidental sources. 130,000 00 Total receipts 36 830,000 00 Add balance in Treasury 1st July, 1846. . . 7,658 306 34 Total means, as estimated 34,478,306 33 ExncnoiTuaKs. The actual expenditures for first quarter, ending 38th of September, 1846 were. . .$8,468,093 41 The estimated expenditures for the oilier three quarters, from 1st October, 1846, to 80th of June, 1840, aro : ? '' list, foreign inter and miscellaneous s 6,739,311 06 per 3,694,736 06 ions, ordnance, arm itia, fcc 3,346 778 83 partment 1,649,791 94 1,366,668 03 on public debt and ry notes 866,976 48 ion of residue of loan 39,300 00 r notes outstanding. 687,764 18 tablishment 4,803,846 S3 "39,837,061 90 V> deducted from total means above , will leave in Treasury on 1st Ju> 18, an estimated balance of 4,861,364 33 hie balance is subjected to be decreased by idditional appropriations as Cougress shall to be expended during the fiscal year ending h June, 1&16, and to be altered by the sums mny be presented for payment of the old 1 ana unfunded debt and old treasury notes, i estimated receipts, means and expenditures e fiscal year commencing 1st July, 1846, and g the 80th June, 1847, are as follows, viz:? Receipts. customs for the four quarters $33,600,000 00 public lands 3,400,000 00 miscellaneous and iaoidental sources 100,000.00 $36,000,000 00 estimated balance to be in Treasury July, 1846 $4,861,354 33 Total estimated moans for fiscal year end ing 30th June, 1847 $39,851,364 83 Eipesmtcsu. The estimated expenditure during the came period, viz : The balance of former appro priation* which will be re quired to be expended in this year $1,441,457 10 Permanent and indefinite ap propriations 3,997,916 73 Specific appropriations asked for this year 31,079,440 43 Total estimated expenditures 36,618.813 36 Which is composed of the following psrticulars: Civil list,foreign intercourse, and miscellaneous f$6,936,393 63 Army proper 3,364,468 93 Fortifioations, ordnance, arm ing militia, !tc 4,381,809 93 Tensions 3,607,100 00 Indian depurtment 3,314.916 18 Naval establishment 6,339,390 88 Interest on public debt 836,844 73 $36,618,813 36 Which, de luded from the total of means before stated, gives an estimated balance On ItlJUly, 1847, 01 $4,333,441 07 The receipts <or the flrBt quarter of this year are lean, by $2,011,986 90, than tne receipts of the same quarter last year. Among the causes of decrease u the progressive diminution of the importation oi many hiL'lily-protected articles,and the substitution ?of rtvai domestic products. For the nine month* ending June HO, ltM3, since the present tariff, the uver?t:e of duties upon dutiable imports was equal to 37 8-1 1-10 per cnt; for the year ending June 30. 1845, 33 85 9-10 per cent; and for the year ending June 30, 1845, 29 90 per cent?showing a, great diminution in the average per centage, owing in part to increased importation of some article* bearing the lighter duties, and decreased imputa tion ot others bearing the higher duty. The revenue from ad valorem duties last vear exceeded that real ized from specific dutieti, Hlthou?li the average of Ihe. ad-vuiorern duties was only 23 57 per cent, and the average of the specific duties 41 30?presenting another ttrong proof that lower duties increase the revenue. Among the causes tending to augment the revenue, are increased emigration, and the annex ation of Texas The estimates for the expenditures ot 18-16 are based chiefly upon appropriations made by Congress. The estimated expenditures of 1847 are founded upon data furnished by the several de partments, anu are less by $4,108,23865 than those of the preceding year. These estimates are submit ted in the full conviction that, whenever Congress, guided by nn enlightened economy, can diminish due expenditures without injury to the public inter est, such retrenchment will be made, so as to light en the burden of taxation, and hasten the extin guishment ot the public debt, reduced on the 1st ol October last to $17,075,445 52. In suggesting improvements in the revenue laws, the following principles have bem adopted:? 1-t. That uo more money should be collected thun is necessary lor the waiits ot the government, economically administered. 2d. That no duty be imposed on any article above the lowest rate which will yield the largest amount of revenue. 3d That, below such rate, discrimination may be made, descending in the scale ot duties, or, tor im perative reasons, the article may be placed in the list ol those tree from all duty. 4th. That the maximum revenue duty should be imposed on luxuries. Bth. That all mimmuma, and all specific duties, should he abolished, and ad-valorem duties substi tuted in their place?care being taken to guard against fraudulent invoices ana under valuation, ami to assess the duty unon the actual market value. 6th. That the duties should be so imposed as to ojierate * eqi' illy as possible throughout the Union, discrir neither for nor against any class ot al scale of duties is recommended; b< scale would be a refusal to discrimi ni' ? ue, and might sink that revenue be ?<> ?t 'he government. Some articles w lrgesi revenue at duties that would be rtially prohibitory in other cases.? general rule, will bear the highest re ? but even some very costly luxuries, ? a * '!? w'l| bear but a light duty for reve nu er articles, of great bulk and weight, wi terduty for revenue. There is no mi the knowledge ol this department ot al tariff ever having been enacted by the nations of the world. There nt unation for revenue, or the burden ot st be augmented, in order to brine the it of money into the treasury. It ia difl < ? adopt any arbitrary maximum, to wli ible adherence must he demanded in all i, upon brandy and spirits, a specific d'lt i an equivalent ad-valorem from 180 to 2 yields a large revenue; yet no one *'t 41,648,997 for supplying deficiency of reu Be, and also f3#0,000 tor postages of < on xecutive offices, are included in the abcr 037,66190. |1 11,060 tor debt assumed for the cities in the lumbia, the sum ol *1,000,000 for sup in revenues from postage, and *360, iwoi r CoBgiesg and Kxecutive dapaitmeiits, ma he loicgoing sum ol $6,936,393 63. would propo.se either of these rates as a maximum. I These dunes are too high for revenue, from the en couragement they present for smuggling these bane fuNuxunes; yet a duty of 20 per cent VoTLandy and spirits would be far below the revenue stand ard, would greatly diminish the income on 1h2? imports, require increased burdens upon the neces saries o He, and would revolt the moral sent o* - the whole community. There are many other lux uries which will bear a much higher duty tor reve n.Urht,r^rcent ' a*"1'he only true maximum ;s tnat which experience demonstrates will brinsr !!l = CHm ' u ^e9t reve,,ue at 'he lowest rate ot duty. Nor should maximum revenue duties be imposed upon all articles; for this would yield too large an income, and would prevent all discrimina tion within the revenue stand;ird, and require neces saries to be taxed as high as luxuries. iJut whilst it is impossible to adopt any horizontal scale ot du ties, or even any arbitrary maximum, experience proves that, as a general rule, a duty 0/ 20 per cent, ad valorem will yield the largest revenue. There are, however, a tew exceptions above, as well as many below this standard. Thus, whilst the low est revenue duty on most luxuries exceds 20 per cent, there are many costly articles, of small bulk and easily smuggled, which would bring, perhaps no revenue at a duty as high as 20 per cent, and* even at the present rate of 7J per cent, they will yield, in most case*, a small revenue; whilst coal iron, sugar arid molasses, urticles of gre^t bulk and weight, yielded last year six millions of revenue at an average rate of duty exceeding 60 per cent ad valorem These duties are far too high for revenue upon all these articles, and ought to be reduced to the revenue standard; but if Congress desire to ob tain the largest revenue from dtties on these articles those duties, at the lowest rate for revenue, would e*Tu. 'Hfr ?ent ad valorem. There are appended to this report tables, prepared with great care and labor, showing the rates of duty eac^ year, on each of these four articles, and the equivalent ad-valorem, from the organization of the government dowu to the present period, with the revenue collected every year upon each; from which tables, Congress will be enabled to judge how far the present rates exceed the lowest revenue duties and how mueh they must be reduced, so as to yield articles1"6 * lhat now obt,uned from these It is believed that sufficient means can be obtain ed, at the lowest revenue duties, on the articles now subjected to duty ; but if Congress desire a larger revenue, it should be procured by t&xinw the free articles, rather than transcend, In any "case, Uie lowest revenue duties. It is thought, however, that without exceeding the limit in any case, an adequate* revenue will still be produced, and permit the addi tion to the free list of salt and guano. In one of his Con'ireJmfh 8' Mr' Jefl**r80n recommended to Congress he suppression of the duties unon salt " Potion of this duty is exhausted inheavy expenses of measuring salt, and in large sumu paid for fishing bounties aud allowances in lieu of the ^oth which expenditures would tall with a repeal of the duty?which repeal, therefore, can cause no considerable reduction of the revenae. bait is a necessary of life, and should be as free from tax as air or wkter. It is used in large quantities by the farmer and planter; and to the poor, this tax operates most oppressively, not only in the use of the article itself, but as combined with salted provisions. The salt made abroad by solar evaporation is also most pure and wholesome and, as conservative of health, should be exempt from taxation. ,uPl The duty on cotton bagging is equivalent to So 20 ioq i?n' valorem on the bcotch bagging, and to 123.11 per cent on the. gunny bag; and yet the fr,?rn, ,he*e duties has fallen to *W>,064 60. Nearly the entire amount, therefore, of this enormous tax makes no addition to the re venue, but enures to the benefit of about thirty man SH' 'ive-8!Xths ot cotton crop*iTex imnnW ^r?K i * samc* l>roPort'on of the bagging around the bale is exported, and sold abroad at a heavy loss, growing out of a deduction for tare Now, as duties are designed to operate only on the domestic consumption, there ought to be a draw back of the whole duty on cotton bagging re-ex !L0h te. ?ro""d jh* hale, on the same principles on which drawbacks are allowed in other cases. The cotton planting is the great exerting interest, and sutlers from the tariff in the double capacity of^con , Burner and exjwrter. Cotton is the great basia ol 1 our foreign exchange, furnishing mot,t of the mean?. 10 purchase imports and supply the revenue It i? thus the source of two thirds of the revenue and of our foreign freight and commerce, upholding our commercialrnarine and maritime power. It is also a bond of peace with foreign nutions, constituting a stronger preventive of war than armies or navies lorts or armaments. At present prices, our cotton crop will yield an annual product of $72 000 000 and the manufactured fabric $504,000,000, furnish ing profits abroad to thousands of capita/ists and wages to hundreds of thousands of the working classes?all of whom would be deeply injured bv any disturbance, growing out of a state of war, to the direct and adequate supply of the raw material U our manufacturers consume 400,000 bales it would cost them $12,000,000, whilht selling 'the manufactured fabnc for #8*4,000,000; and they should be the last to unite in imposing heavy taxe'* upon that great interest which supples them with the raw material out of which they realize such im mense profits. Accompanying fie drawback ol the duty on cotton bagging should be the repeal ol the duty on foreign cotton, which is inoperative ducer ' 1101 de8ired by Uie d?m?tic pro The condition of our foreign relations, it is said should suspend the reduction of the tariff". No Ame rican patriot can desire to arrest our onward career "h lTJiCE aud Proe/)entv J hut if, unhappily, such should be the result, it would create an increased ueressity tor reducing our present high duties in order to obtain sufficient revenue to meet increased expenditures. The duties for the quarter ending September, 1844, yielded $2,01 1.S35 90 more n the 'lUiir,er tuauig 30ih September 184o showing a very considerable decline of the revenue,, growing out 01 h auniniHiieu importation of ihe highly protected articles and progressive sub stitution ot their domestic nvuls. Indeed, muny ol these duties are becoming dead letters, except for the purpose of prohibition, and, if not reduced, will ultimately compel their advocates to resort to direct luxation to support the government. In the eveut of war, nearly all the high duties would become pro hibitory, from the increased risk tuid cos: of impor tations ; and if there be, indeed, in the opinion ol any, a serious danger of such an occurrence, it ap petite most strongly to their patriotism to impose the lowest revenue duties on all articles, as the only means oi securing, at such a period, any considera ble income Irom the tariff The whole power to collect taxes, whether direct or indirect, is conferred by the same clause ot the constitution. The words are: "The Congress shall have power to lay sni collect taxes, duties, imposts, and excises." A direct tax or excise, not for revenue, but lor protection, clearly would not be wittiin the legitimate object ol taxation ; and yet it would be as much so as a duty imposed lor n simi lar purpose. The power is " to lay and collect tax es, dunes, imjWBts, and excises." A duty must be laid only that it may be collected ; and, if it is so imposed that it cannot be collected, in whole or in part, it violates the declared object oi the grunted power. To lay all duties so high that none ol them could be collected, would be a prohibitory tariff.? To lay a duty on any one article so high that it could not be collected, would be a prohibitory tariff upon that article. 11 a duty ol 100 per cent was imposed upon all or upon a number of articles, so as to dimi nish the revenue upon all or any of them, it would operate as a partial prohibition. A partial and a to tal prohibition are alike in violation of the true ob ject of the taxing power. They only differ in de gree, and not in principle. If the revenue limit may be exceeded one per cent, it may be exceeded one hundred. It it may be exceeded upon any one ar ticle, it may be exceeded on all; and there is no es cape from this conclusion, but in contending that Congress may lay duties on all articles so high us to collect no revenue, and operate as a total prohibi tion. The constitution Heel area that " all billi for raising revenue shall originate in tha House of Representa tives." A tariff bill, it is conceded, can only originate in the House, because it is a bill for raising revenue That is the only proper object of such a bill. A tanil is a bill to " lay and collect taxes." It is a bill for " raising revenue and whenever it departs from that object, in whole or in part, either by total or partial pro hibition, it violates the purpose ot the granted poster. In arranging the details of tha tariff, it is believed that the maximum revenue duties should be imposed upon luxuries. It is deemed just that taxation, whether di. roct or indirect, should bo as nearly as practicable in proportion to property. If the whole revenue were , raised by a tax upon property, the poor, and especially i those who live by the wages of labor, would pay but a very small portion of such tax ; whereas, by the tariff, the poor, by the consumption of various imports, or of domestic article* enhanced in price bv the duties, pay a mljch larger share of the taxes than if they were collec ted by an assessment In proportion to property. To i counteract, ns far as possible, this effect ol the tariff?to , equalize its operation, and make it approximate as near ly as may be to a system of ttxes in proportion to pro perty?the duties upon luxuries, used almost exclusive- : ; Iy by the rich, should be fixed at the highest revenue standard. This would not be discriminating in favor ol the poor, however just that might be within the reve nue limit i but it would mitigate, as far as practicable, that diicrimination against the poor which result! from 1 ?very tariff, by compelling them to pay a larger amount ol the taxes than if assessed and collected on all property in proportion to it* value. In accordance with these principles, it is beliered that the largest practicable por tion oi the aggregate revenue should be raised by maxi- : mum revenue duties upon luxuries, whether grown, pioduced, or manufactured, at home or abroad An appeal ha" been made to the poor by the friends of Iirotection, on the ground that it augments the wages of i abor. In reply, it is contended thit the wages ol labor < have not augmented si-ce the tariff of 1842, and that in ( some cases they hnve diminished. Where the number of manufactories is not great, the power of the sy?tem to regulate the wages of labor is ' inconsiderable; but ns the piofit of capital iuvested in ' i manufactures is augmented by the protective tariff, j there if a corresponding increase of power, until the control of such capital over the wage* of labor become* | iireMKlible. Ai tbia pownr is ?xoreiMd from timo to ! time, we !ind it resisted by combinations among the working classes?by tun ing out for higher wages, or : for shorter time; by trades-union; and in some countries, I unfortunately, by violence and bloodshed. But the gov 1 ernmeut, by protective duties, arrays itself on the tide of the manufacturing system, and. by thus augmenting its wealth and power, soon terminates la its favor the struggle between man and money?between aapital ai.d laborJLWben the tariff Of 1843 was enacted, the muxi mum duty was 90 percent. By that aot, the avsrage of unties on the pro tea ted article* was more tiian douhled. But the wage* of labor did net increaso in a aorraspond ing ratio, or in any latio whatevor. On tto contrary, whilst wages in tome cusea have diminished, the prices of many articles used by the working classes have greatly appreciated. A protective tariff is a question regarding the en hancement of the profits of capital. That is its object, und not to augment the wages of labor, which would re duce those profit*. It is a question of par centsge, and is te decide whether money vested in our manufactures shall, ' y special legislation, yield a profit of ten, twenty, or thir.y per cent, or whether it shall remain satisfied with a dividend equal to that accruing from the same capital, when invested in agriculture, commerce, or na vigation. The present tariff is unjust and unequal, a* well in its detail* as in the principles upon which it is founded. On some articles, the duties are entirely prohibitory, and on others there i* a partial prohibition. ,t ii?cummates in favor of manufactures, and against agi!?? ;i ituto by im posing many higher duties upon the manufcc tired fabric than upon the agricultural product out <ri which it is made. It discriminates in favor of the manufacturer, and ugaimt the mechanic, by many higher duti<**> upon the 1 manufacture, than upon the article m >de out af it by the 1 rer, and Rgainst the merchant, by injurious restrictions upon trade and commerce ; and ngainst the ship build ! ing and navigating interest, by heavy duties on almost every article used ii build.ng or navigatiug ves els. it discriminates in favor of manufacture*, and against ex ports, which are as truly the product of American .aulas try as manufactures. It discriminates in favor of the ; rich, and against the poor, by high duties upon nearly all the necessaries of life, ami by minimum* anil specific duties, rendering the tax the real value much higher on the che.iper than upon tne finer article. Minimum* are a fictitious value assumed by law. in stead of the real value, and the operation ol all mini mums may be illustrated by a single example. Thus, by the tariff of 1843, a duty ol 30 per cent ad valorem is levied on all manufactures of cotton ; but the law fur ther provides that cotton goods " not dyed, colored, printed or stained, not exceeding in value twenty cents per square yard, shall be valued at twenty cents per squaie yard.'' If, then, the real value of the cheapest cotton goods is but four cents a square yard, it is placed by the law at the false value of twenty cents per square yard, and the duty levied on the fictitious value?rais ing it fivo times higher on tho cheap article consumed by the poor, than upon the fine article purchased by the more wealthy. Indeed, by House document No. 30t>, of the 1st session of the '28th Congress, this difference, by actual importation, was Co per cent between the cheap er and the finer article of tho '20-percent, minimum, 131 per cent on the 30-per cent minimum, 48$ per cent on tho 36 per cent minimum, 84 per cent on tho 60-por cent minimum, and 84 per cent, on the 76-por-cent mi nimum. This difference is founded on actual importa tion, and shows an average discrimination against the poor on cotton imports ol 8-2 per cent beyond what the tax would be if assessed upon the actuul value. The operation ol the specific duty presents a similar discrimi nation ugainst the poor and in favor of the rich. Thus, I upon salt, the duty is not upon the valuo, but it is eight cents a bushel, whether the article be coarse or fine?showing, by the same document, from actual importation, a discrimination of 64 per cent against the cheap, and in favor of the finer article; and this, to a greater or less extent, i? the effect of all vpecific duties When wo consider that $2,892,0'21 74 of tho revenue last year was collected by minimum duties, and $13.311,08a 4ft by specific duties, the discrimination against the cheaper article must amount, by estimates founded on the same document, to a tax of $d, 108,422, exacted by mini mums and specific dutios annually from the poorer class es, by raising thus the duties on the cheaper article above what they would be if the duty were assessed upon the actual value. If direct taxes were made spe cific, they weuld be intolerable. Thus, if an annuul tax of thirty* dollars was assessed on all houses, without respect to their actual value, making the owner of the humble tenement or cabin pay a tax of thirty dollars, and the owner of the costly mansion a tax of but thirty dollars on their respective houses, it would differ only in degree, but not in principle, from the same unvarying specific duty on cheap a* on fine articles. If any dis crimination should be made, it should be the rererso of the specific duty, and of the minimum principle, by es tablishing a maximum standard, above which value the duty on the finer articles should be higher, and below which they should be lower on the cneaper article.? The tax upon the actual value is the most equal, and can only be accomplished by ad valorem duties. As to fraudulent invoices und under valuation, these dangers are believed to be arrested effectually by the stringent provisions nnd severe penalty of the 17th section ot the tariff of 184-2; and now one half the reveuue is collected from ad valorem duties. ; mechanic. It discriminates At least two tbitd* of tbe taxes imposed by the pre sent tariff are paid, not into the treasury, but to the pro tected classes. Tbe revenue from imports last year ex ceeded twenty-seven millions of dollars. This, in itself, is a heavy tax; but tho whole tax imposed upon the peo ple by Hie present tariff', is not lens than eighty-one mil lions of dollars, of which twenty-seven millions are paid to the government upon the imports, and fifty-four millions to the protected classes, in enhanced prices of similar domestic articles. This eFtinvpto is ba.-ed upon the position that the duty is added to tfcfe price of the import, and also ot its domes tic rival. If the import is enhanced in price by the duty, so must be the domestic rival; lor, being like articles, their price must be the same in the same market. The merchant advances in cash the duty on the import, and adds the duty, with a profit upen it, and other charges to the price?which must, therefore, be enhanced to that extent, unless the foreign producer had first deduct ed the duty from the prico. Hut tnis is impossible; for such now is, and long has been, the superabundance ot capital and active competition in Euro|ie, that a profit of six per cent in any business is sufficient to produce large investments of money iu that business; and it, by our tariff, a duty of forty per cent be exacted ou the pro- ! ducts of such business", and the foreign producer de- ! ducts that duty from his previous prico, he must sustain | a heavy lois. This loss would also soou extend beyond ; tho sales for our cousumption to sales to out merchants 1 of articles, to be. re-exported by thein from our polls i with a drawback oi duty, which would bringdown their price throughout the markets of the world, llut this, the , foroign producer cannot afford. The duty, therefore i must be added to the price, and paid by tho consumer? i the duty constituting as much a part ot the price, as the , cost of production. If it be true that, when a duty oi forty per cent is im posed by our tariff", the foreign producer first deducts the duty from the previous price on the sale to our moi cbant, ft must be equally true with a duty of one hun dred percent, which is exactly equal to the previous price, and when deducted, would reduce the price to nothing. The occasional fall in price of lomo articles after ii tariff', is no proof that this was the effect of tiie tariff'; beeause, from improved mach neiy, diminished prices of the raw material, or other causes, prices may fall even after n tariff' but they would in sucu cases have la'len much more but for the tariff' The truest comparison is between the present price of the same article at home and nhroad; and to the extent that the price is lower in the foreign market thau in our own, the duty, if equal to that difference, must to that extent enhance the price, j and in the same ratio with the lower duty. The dilt'e- I rence in prico at home and abroad ii generally about ! equal to the difference in the cost of production, and pre sents, in a series ol years, the snrest measure of the ef fect of the duty ?the enhancement in price being equal to that difference , if the duty be higher than that diffe rence or equal to it, or if the duty be lower, then the en hancement is equal ?o the duty: and if the article is pro duced, like cotton, more cheaply heie than abroad, the duly is inoperative. The great argument for the tariff' is, that, foreign labor being cheaper than our own, Hie cost of foreigu production, it is said, is lessened to that extent: and that we must make up this difference by an equivalent duty, and a corresponding enhancement of price, in our own market, both of the foreign article and oi ite rival domestic product?thus rendering the duty a | tax ou all consumers, for the benefit of the protected i classes. If the Marshal were sent by the federal govern ment to collect a direct tax upon the whole people, to be i paid over to manufacturing capitalists, to enable them to sustain their business, or realize a larger profit, it would j be tbe same in effect as the protective auty, which, when analvzed in its simplest elements, and roduced to actual ! results,is a mere substraction of so much money from the people, to increase the reveaues oi the protected classes. Legislation for classes ia against the doctrine | of equal rightj, and repugnant to the spirit of our free institutions, and, it is apprehended by many, may be- I come but another form for privileged orders, under the name of protection, instead of privilege?indica- | ted here not by rank or title, but by profits ard di- I videnda, extracted from the many, by taxes upon i them, for the benefit of the few. No prejudice is felt by the Secretary of the Treasury against manu- j facturers. His opposition is to the protective sys- i tem, and not to classes or individuals, lie doubts not that the manufacturers are sincerely persuaded that the system, which ia a source ol so much profit to thein, ia < beneficial also to the country. Ha entertains a con- ' trary opinion, and claims for the opponents of the sys tem a fettled conviction of its injurious effects. Whilst a due regard to the Just and equal rights of b11 clas. es i forbids a discrimination 111 favor of the manufacturers, i by duties above the lowest revenue limit, no disposition is felt fo discriminate Rgainst them by reducing such duties i.s opeiate in their favor below lhat standard. I Under revenue duties, it is beliared, they would still receive a reasonable'profit - equal to that realized by those engaged ill other pursuits; and it i* thought they ahould desire no more, at least through the agency of governmental power. Equal rights and profits, so far as laws are made, best conform to the principles upon which the constitution wan founded. and with au unde viating regard to which all its functions should be exer cised? looKing to the whole oountry, and not to clasiei or sections Boll, climate, and other causes, vary very much, in dif feieut countries; the pursuits which are most profitable in each, :uid the prosperity of all of th?m ?jl be best promoted ?>y leaving them, unrestricte i by legislation, to exchange with ?aeh other those fibrici and products which they severally raise most cheaply. This is clear ly illustisted by the perfect free trad* which exists among all the Steles of the Union, aud by the acknow ledged fact that auy one of these States would be in jured by imposing duties upon trie products ot the othors. It is generally conceded that reoiprocal fren trade among nations would best advance the into- , rest of all. But it is contended that we must meet the tariff* of other nations by countervailing restrictions. That duties tijion our exports by foreign nations lire prejudicial to us, is conceded; but whilst this in- ; jury is slightly felt by the in nufacturers, its weight lall?%lnj?-t exclusively upon agrioulture, commerce, and navigation. If those interests which sustain the

loss rto not a<-!i countervailing restriotions, it should not be demanded by tue manufacturers, who do not feel the injury, and whose fabrics, in faot, are not excluded , by the foreign legislation of whioh they complain Tba' agriculture, commerce, and navigation are injured by foreign restrictions, constitutes no reason why thev should be subjected to still severer treatment, by add,* tional restriction* and countervailing tariff* enactel ut home. (Commerce, agriculture, and navigation, harruss ed as they may be by foreigu restrictions, diminishing the amount of exchangeable products which they could otherwise purchase abroad, aie burdened with heavier impositions at home. Nor will augmented duties here lead to a reduction of foreigu tariff*; but the reverse, by furnishing the protected classes tliero with the identical argument used by the protected classes hore against re duction. By countervailing restrictions, we injure our own fellow citizens much more than the foreign nation ' at whom we purpose to aim their force; and, in the con flict of opposing tariffs, wo sacrifice our own commerce, agriculture, and navigation. As well might we impose i monarchical or aristocratic restrictions on our govern- | ment or people, because that is the course of foreigu le gislation. Let our commerce be as free as our political institutions. Let us, with revenue duties only, open our \ ports to all the world, aud nation ufter nutiou will soon follow our example. If we reduce our tariff, tho party opposed to tbe corn laws of Eugland would soon pro- | vail, and admit all our agricultural products at all time* i freely into her ports, in exchange for her exports. And j if England would now repeal her duties upon our | wheat, flour, Indian com, and other agricultural , products, our own restrictive system would cer tainly be d lomed to overthrow. If the ques tion is asked, Who shall begin this work of reciprocal reduction 7 it is answered by the fact, that England hat already abated her duties upon most of our exports. She has repealed the duty upon cotton, and greatly rcduced the tariff upon our bread s tuffs, provisions, and other articles?and her present bad harvest, accompanied by a reduction of our tariff, would load to tho repeal of her corn laws, and the unrestricted admission, nt all times, of our agricultural products.? Ths manufacturing interest opposes reciprocal free trade with foreign nations. It opposed the Zoll-Verein treaty?nnd it is feared that no other treaty producing a reciprocal reduction of our own and foreign tariffs wi'l t receive its support. If that interest preferred a recipro ' cal exchange of our own for foreign fabrics at revenue ! duties, it would not have desired a tariff operating, | without exception, against all nations that adopted low, I as well as high tariffs ; nor would it have opposed every amendment proposing, when the tariff of 184i was under consideration, a reduction of our duties upon the ex ports of such nations as would receive, free of duty, our flour and other agricultural products. If that in terest desired reciprocal free trade with other nations, it would have desirod a very different tariff from that of 184-2. It would have sought to confine the high duties to those casos where the foreign importer would sell his imports for rash only ; and admitted a drawback of one half of the duty where American exports would j be taken abroad in exchange?not an actual barter of foreign imports for an equal amount in value of our pro ducts, but without any barter, where a sum equal to the value of their exports was used in purrhasiug heie an equal amount in value of any of our products ; and the shipment made abroad of theso products, upon the same piinciplo under which a drawback of duties is now al lowed on the re-exportation of foreign imports. This would be less simple, and is not recommended in lieu of that absolute reduction of the duties, which will accom plish the sume object of unrestricted exchange. But such a provision would be a sell-executing reciprocity law, ;inl should Hot bo desired by those believing in coun ter ailing tsiiffk against foreign nations, but in recipro cal lieotiade wuh all-thus enabling our farmers and planters to sell their products for cheaper foreign manu factures, getting more for what they sell, and paying less for what they purchase in exchange. It seoms strange, that while the profit of agriculture varies from 1 to 9 per cent, that of manufactures is more than double. Tho reason is, that whilst the high duties se cure nearly a monopoly of the homo market to the man ufacturer, the farmer and planter are deprived to a great extent of the foreign market by these duties. The far mer and planter are, to a great extent, forbidden to buy in the foreign market, and conlined to the domestic arti cles enhanced in price by the duties. The tariff is thus a double benefit to the manufacturer, and a double loss to the farmer and planter?a benefit to the former, in nearly a monopoly ol the home market, and in en hanced prices of their fabrics ; aud a loss to the lat ter, in the payment of thoso high prices, aud in total or partial excluaion from the foreign maiket. The true question is, whether the farmer and planter shall, to a great exteut, supply our people with cheap manufactures, purchased abroad with their agricultural products, or whether this exchange shall !!?? forbidden by high duties on such munufactuies, and their supply thrown, ns a monopoly, at large prices,by high tariffs, iuto the hands of our own manufacturers. The number of manufacturing capitalists who derive the benefit from iflu heavy taxei extracted by the tariit Irom twenty mil lions of people, Joeh not exceed ten tuousand. The whole number (including the working duisei engaged in our manufactures) deriving any benefit from tbe tariff, does not exceed 400,000, of whom not more than 40,0oo have been brought into this pursuit by the last tariff. But this small number of 40,000 would still have been in the country, cousuming our agricultural products ; and in t lie attempt to secure them us purchasers, so small in number, ana not consuming one-half the supply of munj counties, the termer and planter are asked to sacrifice the markets of tiie world, containing a population of eight hundred millions, disabled from purcliasiug oui products by our high duties on all they would sell in ex change. The farmer and planter would have the hom? maikct without a tariff; and they would have tho lureigi. matket also to a much greuter extent, but lorthe totaiwi partial prohibition of th? last tariff. Wu havo moie ferule laud' than any other nation, can raise a greater vatiety of products, and, it may be ?ai i could teed and clothe the people of nearly uli the Wu.hI The home market, ol itself, is wholly inadequate for aocu pro ucts. 'I'hey must have the foreign market, ora laig.. surplus., accompanied by great depression in price, rau?i be the result. The States ol Ohio, Indiana, and Illinois, it cultivated to tneir lullost extent, could, of themselves, rai?e more than Fuffijieut lood to supply t.ie enure homo market. Missouri or Kentucky could mure than supply it with hemp ; already the State ol Mississippi raises mors cotton than is sufficient for all the home market, Louisiana is rapidly approaching the same point as to sugar ; and there are lands enough adapted to that pro duct in Louisiana, Texas, and Klorida, t> supply with sugar and molasses nearly all the markets of the world. 11 cotton is depressed in price by tho tariff, the conse quence must be a comparative diminution of the product, and the raising in its place, to a great exteut, hemp, wheat, corn, stock, and provisions, which otherwise would be supplied by the teeming produota of the West. The growing West, in a series of years, must bo the greatest sufferers by the tariff, in depriving them ol the toreigu market, aud of that of the cotton growing States. We demand, in fact, for our agricultural products, specie Irom nearly all the world, by heavy taxes upon all their manufactures; and their purchases from us must there foie be limited, as well as their sales to us enhanced in price. Such a demand for specie, which we know iu ad vance cannot be complied with, is nearly equivalent to a docree excluding most of our agricultural products from the foreign markets. Such is the rigor of our restric tions, that nothing short of a famine opens freely the port* of Europe tor our breadstuOs. Agriculture is our oilioi employment; it is best adapted to our situation, and. if not depressed by tbe tariff, would he the mest pro fitable. Wo can raise a larger surplus of agricultural products.and a greater variety, than almost any other na tion, and at chea|>er rates. Hemove, then, irom agricul ture all our restrictions, and, by its own unfettered pow er, it will break down all foreign restrictions; and, our own being removed, would lecd the hungry and clothe the poor of our fellow men througuout all the densely peopled nations ol the world. But now we will take nothing in exchange for these products but specie, ex cept at very high duties; and nothing but a famine breaks down all foreign restrictions, and opens for a tnoo the ports ol Europe to our breadstulft. If, on e reduction of our duties, Euglaud repeals her ooru lawi, nearly all Europe must follow hor example, or give to her manu facturers advantages which cannot be successtully en countered in most of the markets of the world. The ta riff did not raise the price of our breadstuff's; but a bad hiirvustin Kugland does?giving us for the time that fo leign market which we would soon have at all times, by that lepeal of the com laws which must follow the re duction of our duties. But whilst breadstuffs rise with u bad harvest ia England, cotton almost invariably fails; because the increased sum which, in that event, England must pay lor our breadstuffs, we will take, not in manu lactuies, but only in specie ; and, not having it to spare, she brings down, even to a greater extent, the price of our cottou. Hence the result, that a bad harvest in En gland reduces the aggregate price of our exports, often turns tbe exchanges against us, carrying our specie abroad, and inflicting a serious blow on our prosperity. Koreign nations cannot lor a series of years import more than tney export: and, if we close our markets against their import* by nigh duties, thoy must buy less of our exports, or give a lower price, or both. Prior to the 30th of June, 184-J, a credit was given Tor the pay niont of duties; since which date, they have been collowted in cash. Bel re the cash duties and the taiiff ol 1MJ, our trade iu foreign imports re exported abroad art'omed large and profitable employment to our mer chants,and freight to our commercial marino.both lor the 'inward and outward voyage; but sinco the last tariff,this trade is beiag lost to the country, as Is proved by the tables hereto annexed The total amount of foreign im ports re-exported during the thtee years since the last tariff, both ol tree and dutiable gooils, is $38,384,394 ? be ing tar lee* than in any three >ears (except during the war) since 1793, and leu than was re-exported in any one or the eight several years The highest aggregate of any three year* wm $173,108,911, and the lowest ag gregate $41,315,70.1-being in the years 1791,1795, and 1790. Before IS20, the free goods are not distinguished in thij particular ftm dutiable goods; but since that date, the return* show the following result: During the three years since the UrifT ot 184J, the value of duti able imports re-exported wn $12,590,811 ?being lest than in any one of seven years preceding since 1420, the lowest aggregate o( any three years since that date be ing $14,918,111, and the highest $57,727,293. Even be fore the ca?h duties, for five years preceding the high tariff of 1823, the value of dutiable goods re-exported win $94,796,241; and for the ft'e yea s succeeding that tariff $68 784,192 ?showing a 1 >is of $28,020 49 of oil - trade in foreign exports after the t >ritT of 1823. The great diminution of this most valuable branch oi commerce has been the aombined result of cash duties and of the high tariff of 1842 It the ca h duties are retaine 1, as it is beli ved they should be, the only <ure method ot re ?tor.ng this trade is thu adoption of the wa ehousing sys tem, by wSic'ri the foreign imports m?y be kept in store by tn# goT<rument until they ?'o requir d for re-expor tation 1, or consumption at home?in which latter coMmg-noy and at the time when for that purpose they ure Mkn i out of thaie stores for consumption, the duties are p*??t nn 1, if re expor ed, they pay no duty, but only tre exp <nte of stoi age Under the present lystem, the m > o i n*. introduces foreign imports of the value of $1 >0 00J He must now, oesides the advanoe for the go ids m*ke a further advance in cash, in many cases, of l< ) >>0 for t'id duties. Under such a system, but a sm?ll nmo'irtt of goods will r>e imported for drawback*; ai t the higher the duty, the larger must be the advance no ' ti > smaller the imports for re-exportation. Tie inports before payment of duties, under the same regulations now applied to our imports in transit to Ca nada, tnay be taken lrom warehouse to ware house?from the East to the lakes,?anl to Pittsburg, Cincinnati, and Louisville?from New Orleans to Natchez, Vicksburg, Memphis, and St. Louis,?and warehoused in these and other interior ports, the duties remaining unpaid until the goods are taken out of the warehouse, and out of the original package, at such ports, for consumption, thus carrying our foreign com merce into the interior, with all the advantage of aug mented business and cheaper supplies throughout the country. It will introduce into our large ports on or near the seaboard asiorted cargoes of goods, to be re exported with our own, to supply the markets oi' the world. It will cheapen prices to the consumer, by de ducting the interest and profit that are now charged on the advance rate of duty, building up the marts of our own commerce, and giving profitable employment to our own commercial marine It will greatly increase our revenue, by augmenting our imports, together with our exports, and is respectfully recommended to Con gress as an important part of the whole system now proposed for their eonsi leration. The act of the 3d of March last, allowing a drawback on foreign imports exported from certain ports to Cana da, and also to Santa Ke and Chihuahua, in Mexico, has gone, to soma extent, into effect under regulations pre scribed by this department, and is beginning to produce the most happy results?especially in an augmented trade in the supply of foreign exports to Canada from onr o#n ports. Indeed, this law must soon give to us the whole of this valuable trade during the long period w hen the St. Lawrence is closed by ice, and a large pro portion of it at all seasons. The result would be still more beneficial if%Cana la were allowed to carry all her exports to foreign nations in transitu through our own railroads, rivers, and canals, to he shipped from our own ports. Such a system, whilst it would secure to us this valuable trade,would greatly enlarge the business on our rivers, lakes, railroads and canals, as well as augment our commerce', and would soon lead to the purchase, by CanaJa, not only of our foreign exports, but also in many cases, of our domestic products and fabrics, to complete an assortment. In this manner, our commer cial relations with Canada would become more intimate, and more and more of her trade, every year, would be seeured to our people. Connected with this department and the finances, is I the question 01 tue vales o! the putiuc lanas. ine pro ceeds of these sales, it is believed, should continue to constitute a portion of the revenue, diminishing to that extent tho amount required to be raised by the tariff.? The net proceeds of these sales paid into the treasury during the last fiscal year, was $1,077,041 30 ; and Irom the first sales in 1787 up to the 30th of December last, was $118,607,3,<4 91. The average annual sales have been much less than two millions of acres, yet the ag gregate net proceeds of the sales in 1434. 1833, lS3i, an l 1837, Was $51,208,617 HJ. Those large sales were almost exclusively for speculation ; and this can only be ob viated, at all times, by confining the sales to settlers and cultivators in limited quantities, sufficient for farms or plantations. The price at which the public lands should be sold is an important question to the whole country, but especially to the |>eople of the nnw States, living mostly remote from the seabuar!, and who have scarcely felt the presence of the Government ia lo jai expendi tures, but chiefly in the axhii'istiou of their means for purchases of public lands and for customs. The public lands are not of ihe same value, yet they are all fixed at one unvarying price, which is far above the value of a large portion of these lands. The quantity now subject to entry at the minimum price of $1 25 per acre, is 133,307,457 acres, and 109,035,346 in addition, to which the Indian title has been extinguished?being an aggre gate of 242,342,802 acres, and requiring a century and a quarter to complete the sales at the rate they have pro gressed heretofore?without including any of the unsold lands of Texas or Oregon, or of the vast region besides, to which the Indian title is not yet extinguished It is clear, then, that there if a vast and annually increasing .surplus of public lands, very little of which will be sold within any reasonable period at the present price, and in regard to which the public interest would be promoted, and the revenue augmented, by reducing the price. The redu:tion of the price ol' the public lands in favor of settlers and cultivators, would en hance the wages of labor. It is an argument urged in Uvor of the tariff, that we ought to protect our la bor against what is called the pauper labor ot ?urope. But whilst the tariff does not euuauce the wages of labor, the sales of the public iautis at low prices, and in limited quantities, to settlers and cultivators, would accomplish this object It those who live by the wages of labor, could purchase 320 acres of land for $80, 160 lor $40, or 80 for $20, or 40 acre lots for $10, the power of tha manu facturing capitalist in ruducinj tho wages ot labor would be gieatly diminished; becauss, wlion tnese lands were | thus reduced in price, those who live by the wages of la | bor could purchase tarms at these low rates, and cultivato i the soil tar themselves and familes, instead of working I lor others twnlve hours a-day in the manufactories. Ke i d-icu the price which the laborer must pay for the public douiaiu bring thus the mean* ol purchase within his pow , pi. vem a.l speculation ami monopoly in the public ' ia.ivl-, cu ihue the sales to settleis and cultivators, in lim | u?J q > ?ul.net; preserve these hundreds of millions of ?cr< ? u. ?^os to come, as homes for the poo. and op ,i ro.eii, reduce the taxes, by reducing tue tariif, and j aown the prices which the poor are thus com t>?UcU io ,iay for all the necessaries and comiorts of life -an i Sum Will be done tor the benefit ot Aineriaau la 'ur, iu*.i it millions weit added to tne profits ot manui'ac u 104 capital by the enactment ol a piotective tarilt. 1 .it secretary of the Treasury, on comin g into utilce, toil .1 mo revenues deposited with banks. Tne law e?ta n .? uu? the independent treasury was repealed; audtho jjnemij had no power to re-establish that system. Con gress nad not only tepealed that law, but, as a substitute, hnd adopted the prosent sys'em ot deposite banks, and pi ohibited changing any one of those tor another bauk, exctpt lor specihed reasons. No alternative was lelt but to continue the existing system until Congress should think proper to change it. That change, it is hoped, will now be made by a return to ths treasury el the constitution. Ono of the great evils ot banks is the constant expansion an l contraction of the currency ; and tliis evil is augmented by the deposite of the revenue with banks, whether state or national. Tho ouly proper course lor the government is to keep its own money se parate from all banks and bankers, in its own treasury - whether in the mint, branch mints, or other government agencies? and to use only gold and silver com in all re ceipts and disbnrsemants. The business ot the country will be more safe when an adequate supply ot specie 1* kept within our limits, and its circulation encouraged bv all the meaus within the power ot this government. It this government, and the States, anl the people, uiutu 111 suppressing the use of specie, an adequate supply, tor want ol a demand, cannot be kept within our limits ; and the condition ol the business and cnrieney of the coun try will lie perilous and uncertain. It wilt be complete ly within the power of the banks, whose paper will con stitute the exclusive circulation of the wnole communi ty. Nor will it be useiul to establish a constitutional ? reasury, if it is to receive or disburse the paper of banks Separation from the banks in that oase would only be nominal, and no ad.lition would be made to the circula tion of gold and silver. Various lorms of paper credit have been suggested, as conuected with the operations of the constitutional trea sury; but they are all considered as impairing one of the great objects ot such a treasury?namely, an augmented circulation of spccie. It papur, in whatever form, or trom whatever source it may issue, should be introduc ed ss a circulation by the constitutional treasury, it would, precisely to mat extent, diminish iu use as a meaus 01 circulating gold and silver. 'I he constitutional treasury could be rendered a most powerful auxiliary of the mint in augmenting the specie circulation. The amount of public money wuicli can be placed in the mint U now limited by law to one imliiou of dollars , aud to that extent it is now used as a depository, and as a means ol increas ing our coinage. It is suggested that this limi tation may be so modified as to permit the use of our mint and oranch mints lor a much larger sum in con nexion with the constitutional treasury. The acaouut ol public money received at New Yor* greatly oxcecds taat collected at all other points, and would of itsel: j seem to call for a placo of public deposite there ; in view of which, the location of a branch of the mint of ' the United States at that city would be most convenient and useful. The argument used agdinst a constitutional treasury, of the alleged insecurity of the public funds in | the hands of individuals, and especially the vast amount ! collected at New York, will be eutuely obviated by such an establishment. The mint of the United States has now been in existence ni yoars. It has bad the cus tody of upwards of Il4,0>i0,000 of dollars .; and during this long period of time, there never hxi b?ky a loss 01 any of its specie in the mint by ihc gtf^psildut. The mint at Philadelphia is uow conducted wuu gtcat -ffioi ency, by the able ana faithful officer at tno hoai of mat establishment, waoso general supeivisory authority, without leaving the parent mint, might stiU he wisely extended to the branch at New York. B tides the ! utility of such a branch as a place tor keeping salely and | disbursing the public mouey, it is believed that the coin- | age might be greatly augmented by the existence ol ? { branch of th? mint at that great city. It is there that 1 two-thirds of the revenuo is annually collected-the , whole of which, under .he operation ot the constitution- : al ueasury, would be received in speoie. Ol that amount 1 ? very large lum would be received in coin of oth? countries, and o?p? cially in fo eiiu gold coin*?alio which could b i ?peedily converted, upon th- ipot. into our own coini of gold and *ilver. The amount also of luch foreign coin brought by emigrant* to the oitjr ef New York ii very comiderable; a large portion of which would Hud iti way to the branch of the mint for re-coinage 'Eh* foreign gold coma do not, and it i? feared will not, circulate generally a* a currency, notwithstanding they are made a tender by law. The rate at which these coin* are fixed by law i* not familiar to the people; the denomination of such coin it inconvenient; the part* into which it u divided are not decimal*, the rate* at whiob it in taken vary in different part* of the Union. It u incon venient in the way of ready transfer in counting, it is more difficult, in common me. to di*ttngui?h the genuine from the counterfeit foreign coin; and the atamp upon it i* not famiiiir to th* people?from all which causes, a foreign gold coin does not, and will not, circulate gene rally a* a currency among the people In many ef the bank*, nearly the whole of tneir specie i* kept in every variety of foreign gol 1 eoin; and when it i* tendered by them in payment o( their notes, the great tody ef the people, not being familiar with those coins, do not re ceive them; ay thus the circulation of a gold cur rency i>, to a ff*?t extent, defeated If theie eoin* were converted at our mint, or branch mint*, into the eagle, the half eagle, and quarter-eagle, we , should speedily have a large supply of American gold ooin, and it would very soon be brought into com mon use as a currency, and tnm give to it greater sta bility, and greater seaurity to all the business of the . couatry. A considerable amount of foreign gold ooin has, daring the present year, under the directions of thi* department, been oonverted into Amerioan gold coin, but the precet* would be mueU more rapid if aided by the organization of the constitutional treasury, and the ettablishmeut of a branch of the mint at the great com mercial emporium of th* Union. With the mint and branoh mint* as depositories, the sum remaining in the : hands o. other receiver* of public money*, whether of lands or customs, would be inconsiderable, and the gov ernment could be readily protected from all losses of such sums by adequate bond*, and the power, by law, to convict and punuh as criminal! all who enabeszle the public moneys. It is belkved. under such a system, that no default* would take place, and that the public moneys would be safely kept and disbursed in gold and silver. This gov ernment is made, by the constitution, the guardian of a specie currency. That currency oan only be coined, . and its valu ? regulated, by thi* Government. It ia one 1 of it* first dutie* to supply such currency, by an effi cient mint, and ty general regulations of the coinage , but in vain will it attempt to perform that duty, if, when coin it made or regulated ia value, thi* Government ?liopeni.es with its use, and expels it from circulation, or drive* it out of the country, by substituting the paper of banks in all the transaction* ol the Government. There is nothing which will advance so aurelv thai prosperity of the country aa an adequate supply of specie, diffused throughout every portion of the Union, I and constituting to a great extent, the ordinary circula I tion everywhere among the people. It is a currency ' that will never break or tail?it will neither expand nor contract beyond the legitimate business of the country ; it will lead to no extravagant speculation* at one time, I to be followed by aertain depression at another ; nor will labor ever be robbed of its reward by the deprecia tion of suah currency. There is no danger that we shall have too much gold or silver in actual circulation, or too imall an amount of bank paper, or that any injury ever will he inflicted on the buiinea* of the country by a diminution of the circulation of the paper of banks, and the substitution in its place, to that extent, of gold and silver. Even their most ardent advocate* must admit that bank* are luhjectto periodical ?xpan*ion* and contraction*, and that this evil would be increased by giving them the funds of the Government to loan, and by receiving and disbursing nothing but their paper. It is believed tbat the permanent interest of every class of the people will be advanced by the estah liihment of the constitutional treasury, and that the manufacturers especially will derive great benefits from its adoption. It will give stability to all their operation*, and insure them to a great extent against those fluctuations, expansions, and contraction* of the currency, so prejudicial to their interests. By guard ing against inflations of the currency, i* will have a tendency to check periodical excesses ofioreign impor tations purchased in fact upon credit; while loans from 'lutiks, or dangerous enlargement* of their busines*. and excessive issue* of their paper, will be greatly diminish* ed. Whilst a sound and stable currency guard* tne ma nufacturer against excessive importations from abroad, it pritect* him from disasters at home, and from thoM ruinous revulsions in which so mauy thousands are re duced to bankruptcy. Tne tariff, if followed, as in th? absence of adequate checks it certainly soon will be, by an inflated currency, whilst it thus enhance* the expen i sos of manufacturing at liome, wui speeuuy ?uu uiwiu Iy raise prices up to the whole amount of the duty, so aa .0 repeal the operation of that duty in lavor of the manu lacturer, and enable the foreign importer again to llood 1 the market, at the enhanced price* arising lrom an infla j :ed currency. But soon the revulsion comes, and all ire overwhelmed in a common ruin. The currency in . reduced below the wants of the country, by a sudden and ruinous contractien, and the labor and industry of year* ire required to repair the mischief. Stability, both in the tariff and the currency, is what the manufacturer should most desire. Let the tariff be permanently adjust ed, by a return to reasonable aud moderate revenue du tie*?which, even when imposed truly and in good taith for that purpose, will yield sufficient advantage to afford reasonable profits; and let this permanent system (and none other cau be permanent) be established, and accom panied by a stable current-and the manufacturer, m a series of years, will derive the greatest benefits from the system. The present system cannot be peimanent. It is too unequal and unjust?too exorbitant and oppressive, and too clearly in conflict with the tundaiueutai prin ciples of the constitution. If the manufacturer thinks l that this system cau lie permanent, let him look to the constant changes which have attended ail attempts to establish aud continue a protective tariff. The hint tariff ' was based in part upon tue principle of very moderate protection to domestic manufactures; and the ie>>uit has , ueeu, as appears by the table hereto aunexed, tiiat the tariff has beea chauged aud modified thirty tunes lines that period?being more thau once, on an a emge, for every Congress since the government was lounded ; and one of these tariffs wasiniisell a system ot succes sive annual changes, operating through a period ef ten years. Of tBese chances fourteen nave been gene ral, and sixteen special. From 1816 onward, th se changes have been most lrequeut; and it it vtiu to ex pect peimaneucy from anything but ? revenue tainf.? Stability is what tlii manufacturer should desire, and especially that that question should betaken out of the arena of politics, by a just and permanent settlement. A great number >>f tables, illustrative of the effects 11 tue tariff, compiled from official documents, accom pany this teport. Some of these tables exhioit the operation of each of our tariff*, lrom the organiza tion of the government to the present periox In order to enable tUo Secretary to comply wiin tue Ji rections of the acts of Congress, requiring him in hn> annual report to suggest "plans for impiovmg or in creasing Hie revenues," and to give " imonuatiou to Congress in adopting modes of raising" the revenue, two c0b mars were issued, published, ami generally distribu ted, propounding various questions connected with this subject, and tequesting replies. -Some answer* have been received, from Irieuds as well us opponents, of the tariff; but the Secretary regrets that the manufacturers, with very few exceptions, have declined answering those questions, or communicating any iniormation as regards their profits and surplus, or iu relation to the wages of laoor. An abstract of sill that is deemed useful in tnese replies, togetner with a copy of both the circu lars, is appended to this roport. The coast survey is rapidly progressing?having been extended eastward to tne eastern coast of Maaaa chussetts, and southward nearly to the dividing Una ot Maryland and Virginia, on the Chesapeake. '1 wo new centres of operation have been opened, undar the sane tionol'this department, in North Carolina, aud ou the (?ulf of Mexico, lrom which the work may be spread un til the parts unite. Important positions fur fort*, navy yards, harbors, and light-houses present themselves along Litis interesting portion of the coast of Louisiana, Missis sippi and Alabama, aud the tslauds guarding the interior channel between MoOue and New Orleans, iiieat eco nomy exists iu the administration ul the lund appropriated tor the coast survey; aud every effort is inada by the su perintendent to press the woik onward to a completion Three charts resulting lrom the survey nave been published within the past year, aud live mora are nearly ready for publication. This great werk is nest koaer able to the toieuce ol our country, most useful U aur aa vy and commercial marine, and, in oounemian with our light-houses, must decrease the cost ol freight and in surance, as well as the risk of lite and property. Great attention has bean given by tbis department to the very important subject ol our light-house system. The various improvements suggested by experience at houie or aoroad?the relative advantages ol gas and oil, ol ledac tors, lenticular and revolving lights,the location ana con struction ol the buildings, as wall as tka mode of keep ing the lights?are all tieing fully and oaratuily invest - gated, and a repoit, it is believed, will be reauy during tne present session of Congress. Krom the Chesapeake to the Cape* of Florida, and thaaoe westward, our ooa*t is badly lighted, as well as the great lakes ol the north and west; and numerous wreaks, often accompanied with loss of lite and property, seem to require the interposi tion of Congress. Such portion of the charts of the exploring expe dition as were placed ut .er the charge of thi* depait ment weie disfriouted fu. the benefit ot our whale thip?. These valuable charts embrace the survey of ma"y hitherto almost unexplored regains and isli nds ol the Pacific, as well as a part of tne coast ot Oregon, and must be eminently useful for many purposes, but espe cially to oar seamen and merchants engaged in the whale fishery. In pursuance of a resolution ot Cougress, a report is in progress of preparation as regards the banks and currenoy, aud also in relation to statistics ; and these, with all other reperta required lrom this de partment, will be presented at the earliest practicable period of the present session. In presenting his annual report, in obedienoe te the law, the Secretary of the Treasury submits his views with undissembled diffidence?consoled by tne redaction that all his errors of judgment will be correoted by the superior wisdom of the two Houses of Congross, guided anil directed by that overruling Providence which has blessed the unexampled progress of this great and nappy Union. K. J. WALKfcR, Secretary of the Treasury. Hon. John W Davis, Speaker of the House of Representatives. On the 2tith ult, two bills were introduced into the legislature ol South C irolina, which propose te in corporate certain manufacturing companies ? one with a capital of >300,"W, and another with a capital ui >j0O,OiHj One ul tneie uciories, at least, is i|e?igne>: to be ioca ad m Cnarlestou

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