NEW JAMES GORDON BENNETT, Proprietor. IMPOHTANT STATE PAPERS RECEIVED AT THE NEW YORK HERALD OFFICE B* SPECIAL AND EXCLUSIVE EXPRESS FROM WAIBZNOXON OZTT. THE ANNUAL. REPORT OK THE HON. ROBERT J. WALKER THK SECRETARY OP THE TREASURY. n?.? * Deoember nth. 1817 ^ la obedience to law, th? following,report 1h respectful* Jy submitted : ? t'h? receipts and expenditures for the fiiaal year ending 30tb June, 1847, were, From >iust">ini $23,747,801 69 " Public. lands 2,498 35.) 30 " Miscellaneous sources 100,670 61 " A vaiLs of I'reasury notes and loans. 25,879,199 4ft Total receipts $52,025,939 81 Add balance in the Treasury 1st July, 1846 0,126,439 08 Total meant 901,162,428 90 The expenditures during same flioal year were 69,461,177 65 heaving balance in the Treasury,1st July, 1847, of $1,701,361 35 ?As appears In detal by accompanying statement A. The estimated receipt* and expenditures for fiscal year endin* 30th June, 1848, ars From customs, first quarter, by actual returns from Collectors $11,106 357 41 " Customs for seoond, third and fourth quarters, as estimated 19.893,742 69 $31.000 000 00 From sales of public lands 3,600.000 00 11 From miscellaneous sources 400 000 00 Total receipts $34 900,000 00 From avails of Treasury notes and loans 6,28* 294 65 $41,186,394 65 Addbalanoe in the Treasury 1st July, 1817 1,701.351 35 Total means, as estimated $42,886 646 80 KxPKNDITUagl. ?ix.: The aotual expenditures for first qunrter. ending 80ih September, 1847, wer?$16 469 194 69, as appears in detail by accompanying statement B. The estimated expenditures for the publio serTioes. during the other iorn? quarters, irom isi uctoDer, IB 17, to 30th June, 1848, are, Civil list, foreign intercourse and miscellaneous $6,480,180 4'J Army proper, Inoluding TOlunteers .19,080,865 58 Fortifications, ordnance, arming militia, Uo 3 036 446 50 Iadian department 1,730 660 26 Pensions 1 063 623 66 Naval establishment.. . .10,341,072 47 Interest on publlo debt and Treasury notes. . . 2,250,687 18 Treasury notes outstanding and payable when presented .. .. 367.139 31 68,616,660 07 Excess of expenditures orer means, 1st July, 1848 $16,729,114 37 The estimated receipts, means and expenditures for fiscal year onmmenolng 1st July, 1848, and ending 30th June, 1849, aro From cuetoms $33,000,000 00 ' Sales of publlo lands 3,000.000 00 " Miscellaneous souroes 100,000 00 Total revenue $35,100 000 00 Dsduot deficit. 1st July, 1848 16 729 114 27 $19,370,886 73 ExrEifuiTuam. The expenditures during the same period, as estimated by the several departments of State. Treasury. War. Navv I and l'c?tmutir General, are, The balances of lormer appropriations which will be required to be expended In this year $1,476,310 77 Permanent and Indefinite appropriation* , , 4,687,677 M Specific appropriations asked for this year.... 49,663,168 IS $66,944,941 73 This sum is oomposed of the following particulars: ? Civil list, foreign intercourse, and miscellaneous $5,613,001 63 Army proper, volunteers and military aoademy.. 33,007,038 43 Fortifications, ordnance, arming militia, &.O.. . . 3.046.169 90 Pensions 1,694 318 84 Indian department 930.401 81 Naval establishment .. . 10,906,668 66 Interest on publia debt and Treasury notes.., 3,463,403 08 $66,044,941 7J Deduct means remaining, applicable to serrioa of fiscal year ending 80th Jane, 1649 $19,370,866 73 Excess of expenditures over means, 1st July. 1849 $36,374,066 99 It will be pereeived that If the war is continued until the 1st of July next, and no additional revenue provided , by Congress. nor any sums reoelved from military contributions in Mexloo, there would be a deficit in the treasury, on tbat day. of $16,739,114 37. F r the rea sons hereafter stated, under the operations of the oonstltu ional treasury it will not be necessary hereafter to retain in the treasury, to meet the wants of the govern iueut anu ?u?ru a oodiudc supply lor ail tneir enlarged operations to the mint and branch mints, a lum exceed$?,000,ooo. Adding this to the deficit in th? treasury on the 1st of July next, It makes the ran of $18,719,114 37, te be supplied during that period ; to meet which, If the expenditures authorised and estimated should take place prior to that data, a loan for that som would be required, if no additional revenue was derived from any source whatever. It Is believed, however, that If Congress would adopt the following measures, which are reoommended to their fkvorable consideration, additional revenue, to the amount of $4 600,000 per annnm, might be realised First, from a duty on tea and coffee of 3* per cent ad valorem. $3 000,000 per annum; from the reduotion and graduation In the prioe of the public lands, $ 1 000.00? per annum; and from the extension of the pre-emption privilege tofevery bona fide settler on our unsurveyed lands, whenever the Indian title may be extinguished, $600,000 per annum Should these measures be adopted by Congress, the loan might be reduced to a sum not exceeding, at the most, $17,000,000 In estimating the loan at $17 000,000, allowance Is mad>for tbe raot that these measures for additional revenue could not all go into effeot so as to produce the lull amount during the time intervening between tbe present period and the 1st of July next. After that date it is not doubted that they would produce the full amount of $4,600,000 per annum The President of the United States h.u, however, directed contributions to be levied in Mexico, in every lorm that may be sanctioned by tb? law of nations These contributions consist, first, In diminishing the estimated expenditures, by obtaining. I# as far as practicable, supplies for the army in Mexico; second, by duties upon imports as a military contnbu uvu , buiru, iij ouiuruiun mo mciioaQ auij Upon 01 port!; fourth, by directing the seizure, and appro printing to toe aupport of the war aDd the army, or all the Internal rumum of Mexloo, except transit dotiei wfcether assessed bj the general government ot Mexico or by any department, city, or town theraof By the acta ot September 2d, 1789, and the 10th of May, HrtiO, It is the duty of .this department to report to Congress estimate* of the probable amount that will b? derived from all sources combined, In order that no larger loan may be asked or effected than would be requisite, after deducting the amount thus estimated The sum to be realized Irom thee* military contributions will depend upon future contingencies. If our armies are wlthdoawn from the capital and porta ot Mexico, uothing would be received from such contributions If tbey were withdrawn from the capital, retaining the ports, no safe transit being open for imports late the intericr, and to the rich and populous portion of the country, including the mining region, a very small revenue would be derived from this source, as shown by p<st experience, probably not exceeding $1 000 000 per annum If, however, the porta at present occupied by our forces, be retained, and all the rest seized or blockaded, so aa to prevent the carrying of Imports Into the interior thtough any other ports than those held by our foroes? if ihe roads were then opened into the interior thriu^h the city of Mexico and the mining region, antl the rouio of commerce across the Isthmus rendered secure, it is my conviotlon that the revenue from all those sources above specified, ought not to b? less, so far as the duty on i xporta and imports Is concerned, tban bag heretofore been collected by the government of Mexico. 1 have not been able to obtain any reliable statement of the amaunt of duties reallied In Mextoo upon expoita If, however, it were fairly collected npon ail the exports of specie from Mexiao, it would probably not amount to less iban >l,ooo,000 per annum It is not known, however, that so large a sum as realized rrom this duty, was ever recorded on the custom house returns of Mexico, t'nder these circumstances, it i? extremely difficult to evtimiU tb? amount if duties whion would h? (Wired from thii iourc?; but tlif? PUtftU not to till below MOO.OQl) y?r woiuu i b? hem <u?r on lawfe ffitottf bf YORK NE\< Mexloo havs varied from six to twelve millions of dollar* per annum, and 1 think It ought not to ba less,with tha port*, and Interior, and .the roads In our possession, and rendered secure for exports and import*. There ara man/ reasons why It ought to be greater. I The present duties are framed so as to yield the largest revenue; whereas, the Mexican tariff wis in the highest degree protective and prohibitory; the duties, even when the goods were admitted, being generally adverse to revenue. There were also sixty artioles, the impor- , tation of whloh was prohibited altogether, among which were sugar, rloe, cotton, boots and half boots, ocfTie, . I nails of all kinds, leather of most kinds, flour, cotton j . yarn, and thread, soap of all kinds, common earthen- j ware, lard, molasses, timber, of all kinds, saddles of all I kinds, cotton goods or textures,chiefly suoh as are made ] ! in the United States, pork, fresh or salted, smoked or I | cured, woollen or cotton blankets, or counterpanes, ; , gbOfN ftllH llnno*. ? v. a. S - ? - ? wuo?mna grain or all Kind* The JmlnHiou of the prohibited goods at reasonable rates, the change if tbe protective into thu revenue duties. an'J the abolition of the heavy transit charges, must of coursti increase imports and revenue, and greatly enlarge . our trade with Mexion, bringing back specie in ro urn ; for our goods imported thern. No nation, in proportion i to it* wealth, cau tfford to import more than Mexloo, because her great staple export hein,; speoie, is sought by all nations in exchange for their goods imported th?re. Under our bravo officers, the money will not be I lost as it was to a great extent, by pu ulation, uoder the Mexican government, and the lower duties, will, to a great extent, prevent smuggling The duties also being oolleuted on the goods Imported from one Mexican port Into another, will be an addition to the amount exaoted by the Mexluan government On the whole, I cannot believe that under the circumstanees and oondltlon of thlDgs above suggested, as the moat favorable to augment these contributions that the duties on Imports, with all the ports, t he roads, and interior, in our military possession. would be less than it wai under the government of Mexico, eapcolally under the guaranty already given, that in any treaty of;peace, it wM. aa announced, be provided that the goods imported should neither be confiscated, nor subjected to any new duty bv Mexloo. The Internal revenue collected by the Mexican government, as well as departments, was about $13,01)0,000 per annnm. 1 do not believe, however, that any very large portion of this revenue oould be colleoted uoder our military system, aad I hare no sufflolaat data upon whlob to base any reliable estimate as to these sources of revenue. Under these ciroumstanoes, It is Impossible to name any precise sum as that which probably would be derived from military contributions in Mexloo. The more oomplete, however, the possession ot the country by our troops, the larger would be the revenue. Thus much I have thought it incumbent on me to say; and without being able to fix any precise sum. It Is my eonvlotion that the revenues ihat may be derived troci these various souroes in Mexico, would be very considerable, and augmenting from time to time, j la view, however, of the uncertainty of the amount of | the oontributions at present and the delay of carryin g them futly intoelfeot, If the measures proposed for aug- j menting the revenue by dutlrs upon tea and coff -e, the j reduotion of the prioe of the public lands, and the ex- I tension of the pre-emption privilege.should not be adop- I tttfi bv flnnoTiM I MftnmmsnH ~l~ to negotiate a loan for the Bum of $18,AOO (X)0 upon the terms authorised by th? act of 18th January last,should the war be continued until 1st July, 1849, and additional loan amounting to $20 600,000, would be neoesrury if no additional revenue be granted by Congress, and no contributions are levied in Mexioo. As It is believed, howover, that a considerable sum must be derived from these contributions, no further loan beyond the amount oi $18,600,000 is asked at this period; and it is bulleved that this sum is all that will be required in all probability, until the meeting of Congress in Dnoember, 1848. It Is poaalbla, however, that a further loan for a sum not exceeding $6,000,000 may be required before that time. Should this be the case, there will be ample time to oommunlcate the information to Congress, and ask* further provision for that amount. A duty of twenty-flve per cant, ai uaUrtm, on tea and coffee, is again respectfully recommended By referenoe to the table hereto annexed, it appears that the aggregate value of our imports of tea and coffee is progressing, and that the impost suggested would probably yield an annual revenue of $3,000,000, ruduoing the loan, aiding the credit and finances of the government, and with our other resources,securing prompt payment to our gallant army and navy, who are vindicating the rights, sustaining the honor and elevating the character of our country. The experience of thelast year preves that no ud- j dltional revenue, or none exceeding a few thousand dollar*, could be obtained from any augmentation of duties upon the dutiable imports No suoh augmentation is recommended, mil scnroely any revenue could be derived, (rom the few remaining article* or the tree lift Is is a sound rule when contracting a publio debt, to provide,at the time^uch revenue as will be adequate for the prompt payment of the interest, and the gradual but certain extinguishment of the principal if the debt. 8o long aa this rule is pursued, there is no d ?nper of any alarming accumulation of publio d?tii, tm; uny apprehension that the publio credit will be impaired or embarrassed. To refuse the tax at tais time, would be to accumulate a large debt with an h u<uir n< ir.amount of Interest* and with no certain means provided for the liquidation ofsuoh engagements The credit of nations is best maintained when, for all their obligations, adequate provision Is made at the time; aud there id danger that inoreasing debts, without any additional revenue, might expose our fiuan.oes to ^reat hazard. Diminishing expense* being one of the best means of Improving the finances, the charges of collecting the revenue from cur.oms have been carefully examined, and every retrenchment made compatible with the publio intereat. The saving thus effected, notwithstanding the vast increase of business, will amount, it is believed, to nearly $M'0 000 per annum; not by reducing wages, or reasonable compensation, but by dispensing with every officer or agent not absolutely required for the public seriloe; by curt lillog the expenses of the revenue murine; by introducing a more rigid and perfrct system of accountability ; by classifying the expenditures and arranging them in tables under distinot heads; and, above 11, by subjecting them to the same checks under the supervision of the accounting offloers of the treasury, as apply to appropriations made by law. la regard to whloh, Congress will, no doubt, be guided by that wise and en ii|uwuou owuuiuj, ? liupuriaDi si mil lUDO w we maintenance of the public credit. The reoommcatlallon* in my flint, u well u second, annual report, of the redaction of the prico of the public land* In favor of settlers and cultivator*, together with the removal of onerous restriction* upon the pre emption law*, are again respeotfully presented to the ccnoideration of CongTess. Sale* at the reduced prion, it ia thought, should be confined to lettlera and cultivators, in limited quantities.sufficient for farms and plantations, and thu pre-emption privilege extended to every hona Jiile settler, tad embrace all lands, whether surveyed or unsurveyed, to which the Indian title may be eitlnguish*d. Tiie landa remaining aulject to entry, nt private sale, on the drat of this month, were 15*2,101 O01 acraa, and the unaurveyed landa, to which thu Icdlan title haa been extinguished, 71,048 214 acres, per table /. The adoption of theae two mruuna, for the reaaona stated in my previous report*, would augment the revenue a million and k half of dollars per annum; operating, as they woul1, on 323,149,415 acres. It would, at the same time, increase the wages of labor, by enabling a muoh larger number of the working classes to purchase farms at the low price, whilst it would at the Sim* time augment the wealth and power of the whole oountry When the public lands have been offered a long time for a price the* will not bring, the failure to reduce the prioe la equivalent, in Its effootg, to an enactment by Congress that theae lands shall not be sold and settled for an unlimited period. The caae is still stronger aa to unaurveyed landa, there being an act of Congress forbidding their sale or settlement, and denouncing aa oriminala and trespasser* the American pioneers who would desire to enter in advance into the wildernnaa. cover It with farma and towns, with the ohuroh and the aohool-house, extend over It the blessings of our free lnatitntiona, and enlarge, by the axe and the plough. vu? cumnwu ?r?? 01 me American Union Should the system proposed be now adopted, the survived > well as the unsurveyad lands opened to pre emptors, and the Indian till* extinguished, within tbr oouiing year, or that which suooneJs It, In addition to Iowa and Wi?ocnsln, we should soon ba?e two new States?Mint-sola and.Itasca?In the great valley of the West, adjoining Wisconsin and low* Ins ei 1 of drainlog the old Stales of their population, the graduation ana pre-emption system will, in a series of years, in crease tcelr prosperity, bv giving them customers In the West, who will nairy to them their products, and receive their imports or fabrios In exchange, increasing tie transportation upon our railroads anil canals, and augmenting our foreign as well as coastwise tonnage. The distribution of the proceeds of the sales of these lands Is prevented for at least twenty years, by the act of the JtJth of January, 1847, setting apart andfpledgln^ these prooeeds to the extinguishment of (he public debt. Ho far, also, as the distribution may have been advocated with a view to favor a protective tariff, It Is uow proved that * tariff fur tevenun not only yields a Wrger inccm< than the protective system, but ftlsi advances inoru rapidly, in a series of years, tho prosperity of the manu faoturer* themselves, by the augmen'ation of their lorelgn and domestic market. Kvery reason, therstore, which haa heretofore opposed the removal < f all restrlc Hons from the pre-emption system, or the reduction and graduation of tim price of the public lands having ceased to exist. It is hoped that this measure may receive, during the present seas ion, the favorable consideration of Congress. The mineral landa wera transtcrred by Congress to | this department, by acta of the 1st ftnd 31 of Maroh, 1847. After obtaining all the Information in my power, the law was oarrled into effect by the appointment b) ma of Dr. ( F. Jackson, of Boatod.Io wake the geological surffey of the l.itke Superior land district, In Michigan ; and of Dr. D. D.Owen, of Indiana, to make a similar survey of the Chippewa district In Wisconsin and ! Northern Iowa. The appointment of agent, to oollsrt the rents, &o. by those acta, was conferred by me upon > ??. m?n?ir, ui I\rjnic?y Wlin Wtioiu wa* e.ernelated Oen K. J. Kubtrta, of Mlohlgan, m an ^distant Copies of the Instructions which were gi?en by me iu 1 April Ust to Meaars Jackson and Ow? n an well a* to i Mr MoNalr, the agent, and Uen. ltobrrta, hla assistant, I are hereto annexed , and these four gentleman hare all I zealously performed their duties. It will be perceived, | , that the instruct ion* giTen by thia department to i \ Messrs. Jackson and Owen o?n' luplate complete g oUgical and topographical deiwi rf thla great : 1 legion, together with tha bar'/ii.ui ileal end hygroma- | 11 ir.nl observations. and a serie.i at oh..'. ratltM on the dip and intensity of tha needl' , it lotimal-ly connected with the geological and mir? m g ca) cfcaiactir of the 1 country, and aa leading to riaiilt.s m-erection to thecau*" , of general iclence. Krarn the prrl.iaiuAry reports already | iaaJii by l>r?. larkfon ??< Ones, tbla cUiiwuuut fedt I well mmiiip<I thai Ml? th" * KouU?mea will fully ?u?tkii> thkt hUh reputation for parllout hh<1 laborious (union ' I loo of n??r rffJow, n w?U m for hi|ii rcHBll?? ?U?lq? mBssBsmmmmmaBmrnrnrnsm HERJ V YORK, FRIDAY MORI* mrnts, which induced thi? department to oonfer these appointment* upon them. It tu bit pleasing duty to direct all the geological and mineralogioal specimens obtained tn conformity with the act of 10th of August ls4?i, establishing the Smithsonian lostltutoln,to be deposited, with a view to their transfer to I'rofesear Joseph Henry, the seeretary thereof, whose great disooveries have contributed so large and important an addition to the cause of tcienoe, conferrred so muoh honor upon this, bin native country, and attraoted the admiration and applause of the distinguished men engaged in scientiflo pursuits in every portion of the globe. The oountry feeing surveyed abounds in mineral wealth, and especially in oopper. and when the mines shall become the property of individuals, and theadjaoent lands set- i tlnd and cultivated, so as to unite there cheaper subsistence, with more abundant labor. It is bellsved that this great region, occupying a position nearly oentral between the Atlantio and the PaoiQo, must beeome an Important portion of our country. Muoh time and labor were devoted to the preparation of these instructions, c tiling to my aid the very able and efficient commissioner 01 the <>nDerkl Land Oflloe, to whom the subject wu then | tru inferred by me, retaining only the supervisory power ; required by l>w. By the not of the Uth of February, 1847, a bounty In land was designed by Congress lor tbe benefit of the | braru men who are vindicating abroad the rights, and maintaining the honir, of tbolr oountry. By the proviso to that aot, the salu of thuse claims is prohibited until a warrant or certificate hit issued, Indicating, as it ia believed, the benevolent intention of Congrees to secure homes to our soldiers and volunteers. It is deeply to be regretted, however, that the intentiona of Congress In thla respect, are to be defeated by sale* ot these warrant* or oertitloates, at a great sacrifice, whioh will be obviated to a very great extent tor the future by further reatrietlons by Congress upon theae assignments, and especially by forbidding the sale until the patent shall have lasued. If thla Is not done,but very few of theae brave men, when their toll and perils shall have terminated, will have retained the right to the homes Intended for them by the benevolent policy of Congress With a view at far as praotloable to induce the soldiers and volunteers to retain their rights, it was decided by thla department, after a conference with the Secretary of War, who concurred In this opinion, that if the soldier and volunteer became a pre emptor, he might um his warrant or owtificate in purohaae of the lands upon which he had tattled; but that no assignee or purchaser could thus use such warrant or oertltioate In payment of any lands that had not been offeied at public sale. Under this deolslon, the warrant or certificate is of more value to ihe soldier aud volunteer than to the purohaser, and there is an additional motive to retain the warrant or certificate, instructions have also been issued by this Department to the various registers and receivers ef land offices that they cannot become the purchasers of these warrants or ocrtiQoates, or any other land sorip; nor must they beoomougeuts fur the sale, deposite or exchange of the same; butoentlne themselves as far a? these warrants or cerllUcatesare concerned, exclusively to receiving the same wh?n offered for location, as prescribed by law.? Tbe public revenue would thus be augmented,and a just and liberal policy adopted, if tbe settlers upon the lands within the prescribed limits of the Milwattltie and llock lUrer canal were permitted to purchase these settlements at the usual minimum price per acre; and such modification of the existing law for the benefit of these meritorious settlers,* as well'as with a view to augment the revenue, is reooiumended to the favorable consideration of Cougrras. The recommendation oontalned in my last report for tbe establishment of porta of entry in Oregon, and the extension there of our revenue laws, is again respeottullv presented to the consideration of Congress, together witu donations of farms to settlers and eint 'rants, and the grant of a school section in the oentre of every quarter of a townahip, which would bring the school-house within a point not exceeding a mile and a half in dlatanee from the most remote inhabitant of suoh quarter township. This measure would be highly beueflolal in all the new States and Territories. In Oregon, aa a feneral rule, tbe lands are muob less valuable than hose in tbe great valley of tbe West; andl important as it is to all eur great Interests, and especially aa connect ed with our commerce with Asia, and the Western Coast of America, that Oregon should be rapidly settled with a .large population, these measures would be attended with the most happy reaulta. Such a system, whilst it would atrengthen tbe attachment to the Union of tbe inhabitana of that diatant region, would rapidly augment Its settlement and population, and bring back in large revenues, through tbe cuatom bouae, an ample return to tbe government for the adoption of a policy so just and liberal. Table D contains a full statement of all the treasury notea paid under the act of the loth of Auguet laat, amounting on the first of tbe present month to tbe sum of $33,007 04 Table E exhibits the amount of the public debt and Interest paid from 1st December, 1840, to 1st Deoember, 1 a 17, including the relmburaments of treasury notes underacts prior to act of SidaJuly, 1840; underact of JJd July, 1840, and under ao of-J8th >anutry. 1847. amounting in principal to tbe uum of $9,040,611 8ft, and In Interest to $l,433,8a0 29. Ta*>lo K, heievo annexed, shows the public debt due on the 1st Deoember, 1847, $45,0M>.0VJ 40; the amount of the debt due on the 4th M?rcn,l84u, $17,788,79!) 04?leaving tbe balance, b'icg the debt Incurred sinoe the 4th | vieruu, io-?o, o/u,oo? /a i nn same taote exQtblts the reduction of the dfbt due on the 4th March, 1916, by payments m tit siuce that date, to $10,470 010 78. Tablii <? uxhiblts the amount available ou the lit October, 1947, ot the loans of 1840 and 1847, being of the loan of 1440, the available $1,048,900.05; and ol'the loan of 1847, $4,630,894 00; and of the aggregate of both, $6 285,294 05 Table 11 dhows the amount available on the 1st December, 1847, of the loan of 1840 and 1847; being of the former the available (902,950 .05, and of the latter $3 29,878; and of (he aggregate of both, $4,204,828 55. Table 1 exhibit* a statement of treasury notes under aot of 22d July, 1840, Issued in exchange for specie deposited in 1847, amounting to (905,750. Tcble K exhibits a statement of 0 per cent treasury notes, irsued in exchange tor specie deposited to tli* ere Jit of the Treasurer of the United States, under an act ot 23th January, 1847, amounting to $15,409,800 Table I. exhibits the amount of treasury notes issued at 6 2-5 per oent interesr, in exohanga for specie, under aot of 28ih January, 1847, amounting to $471,000. Table M exhibits the reimbursement of treasury notes monthly, from the 1st December, 1840, to that of 1st December 1847, amounting to $8,971,791 00 Table F K gives the items In detail of the debt of the United States due on the 4th of March, 1645 Table N shotvs the transfers m*de to New Orleans In specie, from the 1st January, 1847, to the 1st December, 1847, being $8 010 517 30 Table It K exhibits the amount of treasury notes p*ld in for duties from 1st December, 1810, to 1st December, 1847. including the amount of $101 850 paid in April laar, at par, being the month lor which the lo?n for $18,000,000 was negotiated; fro ' wbioh Congress will observe the gradual appreciation of those notee In the market, and their diccintinusnce for u short time In revenue pay-mebtr, and the subsequent renewal of those payments for duties. Table P. exhibits separately the monthly issue of Treasury notes from 1st January, 1847, to the 30th Nov. 1847, Inclusive, uuder the aots of July 22, 1840, and of 28th January, 1847, being under the former aot, $1,794,100, and under the latter $17,702,950, and in the aggregate c f both, $H> 657,U50. Table exhibit* the yearly paymmU on acoount of the prinoipsl and interest of the public debt from 1791 to 1H17, both inclusive, amounting in the whole to the snra of $18S,800,J98 79. This table Is tue recorded evidence of the will anil ability ot the American Union to discharge all its obligations?the amount of debt now due being $46,059,0)9 40?a sum less than one-tenth of the amount of priuoipai and Interest of the pubilo debt which we have already rv.l.l ih>u TLi.m.nU _?> .> in a ,1.. _lik n.llk.... ....... , - r_, , ??" - tua'.lty and eomeniency.wlth heavy .amounts,at period* whrn our p< puis,tun was greatly less than onr-Ofth of It* present numbers, aoil when its ability to meet its Managements was even inftsmaller proportion. It is Impossible for any American ciltsen to rejird this evIdetce ol tbe booor and good faith of his country with uy other feelings than those of pride and satli>f?ctlon In war and in peace our country has maintained ber honor unsullied, and resolved, thro ugh every sacrifice of blood andtreanre, that it must aud shall be preserved Tbe ocD'ttUu ional treasury went into effect on the ' 1st of January lust, and under th's act. dutin i the last eleven mot. the, as appeal* by table from the records of th? Treasury hereto annexed, there was received In specie fcr loans, customs, lands and miscellaneous collections, tbe sum of $4H,667,8h4 18 in specie, and the sum of >J8,'iifl,6l6 31, daring the same eleven months, disbursed in M[? cm In New York, (see table V ) during the mocih of August lar.t, $3,340,706 4h in specie was received by tbe co.lector tf that port, and in the last eleven months, in specie. >1H6I/V,42i M During the same month of August, there wa? d-posited, (see table U. <i ) the sum of r?-2,with tbe Assistant Treasurer of that city, and transferred from or disbursed by that officer. The receipts and disbursementso' the go- i veruiuent in specie, duriug,the.lai:t eleven months have I amounted together to tho sum of SO'I.ho^.joj 40, rod not a dollar hts been lost to tbo tnvisury, nor any Injury indicted upon any branch of commerce or buMuehs The constitutional treasury bns boen tried during a period of war, when it was necessary to negotiate tery large loans, when our expenditures were being increas 1 ed. and when transfers, unprecedented in amount, were 1 required to distant points for disbursement. During the Ism eleven months, tha government linn received, transferred, ami disbursed mora specie than duriug the whole aggregate period of fifty-scran yearn preoedikg, sino* the adoption of the constitution. To render the system still mora safe, useful and eoonomloal, to define more clearly the powers of the department, anil especially to render tnora secure ' the public money in the hands of disbursing agents,'' the amendments suggested in my last annual report (Including the establishment ol a branch mint at New Vork.) and which rtceived this sanction of the House of Keprtsentatlve* duriug the last session, are again recommended to the favorable consideration of Congress During the year ending 30th June, in 17, our imports of specie were $44,1*41,980, (see table T,) most of which, under former systems, must have gone into the banks, to have been made the basin of isausa of their paper to the additional amount of fifty or sixty millionsot dollars. Such an expansion during the last spring and summer, accompanied by still higher prices, and followed by a greater tall, and by bankruptcies in Kngland, to an extent heretofore unknown, finding our bank* and credit greatly expanded, and re-acting upon this expansion, would have produced revulsion hare exceeding any thst has heretofore occurred in thacountry. A general suspension of the banks would probably have resulted, depresilng the wa;;en of labor ami prices of properly and product*, adectiuis injuriously tho oj>er#tlona and credit er?n of tha i?cit nolrmU, nud producing utensli* bMkruplot??. From this r?vul*lon w? b?v? i>?en *??el t>y U* MMttUttoMi tm??wji by nbiv>to (&? rpvolt iw lLD SI riNG, DECEMBER 10, 18 ported, ins.ead of being converted lnt? bunk ls*u?a. hM been mada to olrculate directly. to a great extant, m a ourrency among the people, havin; been reoolnad barn during the last eleven months by tha new order* of thin department undar tha act of t?th February. 179S, and tha zealous oo operation of the abla and eflloient bead ot the mint at Philadelphia, to tha unprecedented extent of $1U,7S8.04H 13, and there are thousands of oar cltliens now solvent end prosperous, who have bean saved from ruin by tha wholesome operation of tha constitutional treasury. The banks that so unwisely oppose J tha nystem, have bean resound probably from another suspension; their stockholders,depositors and note holders. from levere losses, and the oountry and government from the ruinous effeots of a depreciated paper ourrency. If the union of the government with the banks had continued, and their suspension and tbe depreciation of their paper oeonrrad during tha war, requiring large specie disbursement*, which suspended banks could not furnish. oonsaquanoee tba most disastrous to tha honor and the interests of the country must have ensued. The govnromeat Is now disconnected from banks, and yet Its stock and notes are at par, although we have bean constrained to contract heavy loans, and to keep larger armies In tha field than at any former period. Cut during tha last war, when the government was oonneoted with banks, Its six per cent stock and treasury notes were (Icnm^iafuit faesntw "? * ? *- - 4 ' - i ?~v. ?ntu?/-uTO )id( uoui, iu Man paper twenty ptr cent below par, thus amounting to a loss 1 ot forty-five cents in every dollar,upon the operations of the government. In my first annusl report to Congress, on the 3d of December, IB 15, la recommending the adoption of the constitutional treasury, the following observation! were made "Ner will it be useful to establish a oonstl atlonal treasury. If It is to receive or disburse the paper of banks " "If paper, In whatever form, or from
whatever source It may issue, should be introduced as a I circulation by the constitutional treasury, It would, pre- ! clsely to that extent, diminish Its use as a means of olrculatlng gold and silver." During and before the eommencement of the last session of Congress, it was thought by many, that this measure oould not operate successfully during war, and that large lotin*could not be negotiated, if the payments were required in specie. The department,however, adhered to the reoommendations of its first report, believing that the government would be rendered stronger by the dlvjrce, and thai if the treasury should resort to banks to negotiate its loans or supply Its revenue, that bjth, if tbe war continued, would be involved, as they were in the war of 1812, in one common ruin. During the months of June, July and August last, (per table N) the sum of $0 000.0(K) was transferred from the Assistant Treasurer of New York, for neoeseary disbursement at New Orleans and in Mexico. Heretofore, the public money, beln< deposited with the banks, and loaned out to their customer*, when such enormous transfers were made, a contraction of t'ie |,bauki, with ruinous losses, muit have ensued; but the money of the g vernment Is now transferred from New York to New Orleans, and scarcely affect* business or the money market, because the transactions of the government are disconnected from those of the banks. When the government formerly received and disbursed only the paper of banks,whenever a revulsion and numerous bankruptcies occurred in Kngland, they uuiversally reacted upon our perilous paper system, so as to create a pressure In our money market, a large and sudden contraction ot the paper currency, a calling In of heavy loans by the banks, and as a oonseqnence many failures, andjmost frequent suspensions of speoie payments Now, for the first time in our I history, although failures In Kngltnd of the most unprecedented magnitude have oocurreJ, including banks and bankers, yet our banks and oredit are sound and stable, and the business of the country is still prosperous and progressiva. Nothing la moro injurious to all classss, but especially to our manufacturers, than theexpansions, contractions, and fluctuations of the bank paper system, vibrating with every considerable change of the public moneys held by tbsm as depositories. This perilous and ssducUve bank paper system opens temporarily, and beyond the wants of the country, a market.here for foreign imports, not In exchange for exports, but for credit, the redemption of whioh drains the country of its specie, oontracts the paper currency, forces, at a aaorldoe, the sale of dnmestio fabrios, and depresses the inlustry of the whole oountry. Domestic manufacturers require for their permanent and successful operation the basis of speote,checking vibrations and inflations of the paper system, confining our Imports to the wants of the oountry, and preventing the temporary purchase of foreign goods for ortidlt and not for exports, which always results In disturbance of the money market, and in injury to the oountry If our manufacturers desire great advantages from the home market, It must be abundantly and permanently supplied with a larga specie circulation, which alone can sustain that market for a number of years, and prevent those oalamitiea which must follow an inflated paper currency. A home market for our manufactures, when baaed upon speoie and low duties, Is solid, permanent and augmenting; but when founded upon paper oredlta, It ta inflated one year, only to be depieaaed the next or some succeeding year; thus depriving the manufacturer of auy well assured and permanent domestic market. The bankdeposlte year, 1*38, when we were importing grain, contrasted with 1HI7, Ui? year of divorce ef the government from banks, exhibits the delusive inflation of the one,with its aucceeding I uuh?i>, mii mv buiiu prunpeniy 01 tne omer, resisting Chun far,to great extent, the revulsion In Kngiand, and I proving the good effects of the union of low duties and the specie-receiving and specie-olrculatlngoonstitutional treasury. I renew my former recommendation for the establishment of a branoh of the mint of the United States at the olty of New York. During the last eleven months, commencing on the lit of January lan, the amount of eoln notually paid in to the Assistant Treasurer at that city, i as per table U H, was $i9 904,744 10, nearly all of which was In foreign ooln, a large portion of which, as far as practicable, was transferred and recoined into our own ooln at the mint at Philadelphia The whole of that foreign eoin, however,ought to have been at onoe re-coined at tbe olty where It was recnived; and In addition, the Urge amount of coin and bullion whioh is constantly arriving there, and does not find Its way into the ofllce of the Assistant Treasurer, but as foreign ooln.is deposited with the btnks and never becomes a circulation to any greatextent among the oommunlty, all which would also be at onoe converted into American ooln, without loss or delay. If a branch of the mint were located at the great emporium of the oommerce of the Union Under the salutary provisions of the constitutional treasury law, the experience of this year has proved that a sum not exoeeding $3,000,000 la all that need be retained in the treasury as a surplus to meet the wants of the government, or to supply tne mint and branch mints an abundant amount for coinage, thus saving la this way (he laterest on $1,000 000 to our country. The Treasurer at the mint in Philadelphia and the branoh mint at New Orleans, ar* -ilso Assistant Treasurer*, to and from whom transfers of speoie (nearly all of which is received In foreign celn) can be made ander the provisions of the constitutional treasury Under tbe act of 9th February, 1793, providing for the re-ooinsge of foreign eoin at the mint, instructions ware Is*iied by me to carry that act fully into effect. Under these orders, transfers are made of tbe foreign coin to the mint and branch mints for re-coinage, and the amount coined since the 1st January last, up to the 1st I)ec?mber, was $10,748,048 12; of whieh the sum of $3 0?A,9.'i3 80 w.is oolned iu the month of November, 1847; and If i his should be oontlnusd for the present month, it would make the coinage of the first year for the constitutional treasury, $13,814 001 0-J Table K exhibits the yearly coinage from 1793 to 1st December, 1847. amounting In tbe whole to $143 Ml,870 J>4, showing that the amount oolned this year would be about one-elxth of the aggregate coined In the Ufty-flve years, from the fltst coinug? in 1703, to the close of the present year. Table H, gives the coinage each month this year, from the 1st January to the 30th November. \1na? r?f thin r?n4n*t*a hu haun h? rnnvprHnir fnp?i?n gold coin*, wbioh will not clrcnla'.e among our peopia, into American gold coin, which is now going into muoh more general circulation; and during the enduing Tear It 1ft expected mat the coinage of specie from the (liver that must b? brought In from Mexico in exchange for our imparts tbore, as also for the new is?He ol treasury noteft now axked from Congresa, an conntltuting a part of the loan recommended, will, It 1? believed, greatly augment the coinage of silver during the ensuing year. Under the export duty upon specie,now exiatiag in Mexioo. it 1ft believed that when the n-w treasury noteft now anKed tor rhall be issued, they may be nold to a conrider ible extent oa account of the government for specie, at a premium, in Mexico; and aft the gov-rument | funds will uot be ftul jejt to the export duty, the specie may be brought into the country by this dopirtcnout In exenange lor thMe noteft, and refined at the mint tn I New Orleans Into American coin. I It ha? been seen th*t the amount |ef foreign coin or bullion coined this yrnr at one mint, and branch mints, under the new orders of thia department, eatlmating Deoember the aame a* November, would be I,no i Oi, at which rate we would ftoon supply our own people with our own coin, and In time also with our augmenting commerce, Americanise, to n great extent, the coin of the world, and thur Introditoe our dimple and beautllul decimal currency,gradually, throughout allJiaUona, ftubsikutlng it for ibe complex syNtain of pounds, ahllllngft, and pence, or of doubloons, ducats and rupees, which r?t?rd bunlne*s. and complicate accounts. Heretofore the world ha* supplied us with foreign coin, which will not circulate among our people,because of Its ettreme complexity, but now our own coin is (lowing into the channels of our own circulation, and rau-t noon bagln to diffuse ltaelf inio other natlona. for I their benellc eft w II aft our own The three thlnux which most concern tbe progrea* of the w??lth of th? world. ate frtrade, and uniformity to coinage mi l lo weight*, and in?*Mir?-e ? oina, aa well aa weight* and meaaurr*. for tho benrfltaf all u&tiona, ought to be uniform throughout (be world, uud If our declui*l eyetero i ol coinage kUi.uM be mom pimple and perfect ibau tb?i 01 an; oilier nation, It ought to h?, and ultimately will be, adopted, and lead to tbe Introduction of the decimal ojHtMia of weight* and meaaurra, ni far an practicable, to taut ultimately the coin, and tbe wmgbta ami measure*, may be atrnple and uniform ihroiigh<.ir. the world Table T **towa th* Import* and export* ol apaola for tbe Hical yiam ,-udiug il'lih June IMJo. and 3Uth June, IH47, bring for 1H4?, au Import ol >.J 777,7?i, and tbe u port fa,4dl,4l7, leaving the gam ol apeole mat year, f J'Jtt,3li, and In 1847. the *p?nie Import- d wan VJ4.I.II, ih?, aid the export |>I 845 lilt leaving the fpecle gained in 1847, -J70,I10 Table U *bowa tbe amount reorlvrd In apeole from all ourceR, ouatome, lauda. mine tllaneom and loana, from Int January. 1847, lo list December, IH47, b*inB>W,b<i7,888 18, and the amount of disbursement* In npeole during the nam* period, $48 JJttftle SI, abowlng the aggregate of reoeipu and disbursement* In spaole during the tlrrt eleven month* of the new *j*tpm,>l'tt,t4W 4,40J 4tt,and proving that the department b"i been enabled, dnrlng the Ia?t Hev'U month*, to circulate, by iJ^burwineotB wnouij tbe p?opl?i th? ?un? of IWiWWfl ?U, uu4?r th? uperle rnce|nr.|| Und 'pft'i* QOVfllwtwMl UMWxy JPPLE1 47. "on Annexed are t tblea marked 1 and 3. showing the mtrkut Talus, a also the actual sales, o( treasury notes and United States stock lu the Market at New York and New Orleans, from the prloe# current of those clttea, from December I, Iflltt, to lat December, 1817, ae also i a table showing the amount of treaaury note* reoelted each month In payment of public dues from lit December, 1840, to lat December, 1847, from which Congress may judge of the probable rate at which another loan can be effected Th?<se tables ahow how muoh theae atocki and notes hare ttuotuated, being at a rate occasionally below par, for a long time at par. subsequently several per oent above par, and again upon the 11 rat of the present month, at par in New York and New Orleans. These notes per table K K.wern paid In for publlo duea from 1st December, 1840, to lat Decumbor, 1947, to the amount of $'J,Oi0,iH>O; aud during April, the month ia which the loan for them was negotiated at a premiun, they were paid in for customs alone to the amount of $101 M>0. They ara now being used to a considerable extent in payments to the government, and may be regarded as at par. The total amount of lb* treasury notes advertised, was eighteen millions of dollars, aad the amount of the bids, as exhibited in table 3 hereto annexed, $67,lii.'JSH, of which the sum of $1.H39,800 was bid for at par, and $64.883,1H3 above par The notes were assigned to the highest bidders, at rates vsryiog Irom of one per oent to i per oent above par. all the lower bids being ifi uuuino rrjruvrvv >n<i vii" miiio iisi. mania uiBUiiuueti will exhibit lully aad In detail ths oourse pursued on that oooMion. The law conferred the pownr, to have changed all these note* for specie,wttnout advertisement, with any one at or above par. but in hope* of obtaining a premium for the loan In whole or in part, bids w?n ; invited for the amont of $14 OUO 0<>0. Annexed ia a oopy ' of the advertisement of this loan, marked 5, dated 'Jth of February, 1817, having been issued during the teaslon i of Congress, and extensively published throughout the | Union, from the D.h of February to the itith t>f April, 1H47. The remainder or the loan beyond the amount advertised, wm exchanged at par, partly for money to be deposited without] oharge at New Orleans, where the wants of,the government were great, and the rest paid out chiefly In treasury notex at par, to the Smithsonian Institution ; also to other creditors of the government; the notes at that time being generally at par, and the wanta of the government requiring the use of the money befora it oould be obtained upon the advertisement. On the 2'2d of October, 18-itl, as per printed notice hereto annexed, marked 4, the department advertised for tha exchange of $3,000,000 of treasury notes for specie at par. for depositee of speole with the Aesistant i Treasurers. For a] constd*.-*^ time but very few of such depositee were made iV~>xsury notes thus taken, and from this long delay ud. .<htinurd rtluotance upon the part of the community in taking these treasury notes at par. although at any time a.ter the tfUth or January iait, they were convertible into the twenty years six per cent Ntock, at par; many of the note* heretofore offered at par, not having b?en taken at the date of my advertisement of the !llh ot February lest, serious doubts were entertained whether the whole of the loan oould be taken at or above par. It had been usual heretofore, with my predecessors. In advertising for loans, U emit no sum to any individual under $-J?,000; but with a view to ensure the largest possible subscription, end at the best rates, and to diffuse the loau as far as praotloaI ble throughout all classes of the community, bids were I authorized to be received by the advertisement as low as the lowest denomination of treasury notes permittted by law, uaiuely: fifty dollars. It | was the duty of the department to accept nothing but specie, being the first loau over negotiated In specie from the fouudation of the government down to that date, and the first loan, except thatot last fall, ever thus negotiated at or above par during a period of war. The magnitude of the loan, the fluctuations below par of the previous stock and note*, the untried, and to many, alarming restraining operation of thn Constitutional Treasury, the heavy expenditures of the war, and the requirement of all the payments from time to time In specie, were deemed by many as Insuperable obstacles to the negotiation of the whole of the loan at or above par. But under the saluttry provisions of the Constitutional Treasury, the oredit of the government was in truth enhanced by reef iving and disbursing nothing but cola; thus plaoing all Its transactions upon a basis more sound, and entitled to higher credit, than when it held no speoie. had no money in its own possession, and none even in the banks to pay Its creditors but bank paper. Tbeu it was dependent upon the credit of the banks, and was subjected to every fluctuation which affected their ore- ; dlt; now it stands upon the basts of specie, so as to be above all suspicion of dlsoredlt, whilst by its demand for | ooln for reveuue payments, it sustains,not only its own oredit, but renders more safe the oredit and ourrenoy and business of the whole Union. By the act of t'ougress, of 3rd Marob, 1816, this department was authorised to select a plan for the erection of a custom house In the oity of New Orleans. By the act of 3rd March, 1847, the sum of $100,000 was appropriated towards the ereotion of the custom house on the the custom house square, or no muoh thereof as could be procured tiy the department. After iodi delay, I wag enabled to obtain a cession from the 1st Municipality of New Orleans of the whole of this square: which munificent donation to the government has been estimated as of nearly the Taiun of $500,000. Commissioners have been appointed to aid in carrying the law into effect, and Instructions issued to them, a copy of which is hereto annexed. Muoh time was oocupied, and great attention bestowed, in eiamining the various plans and estimates submitted. As a custom house Is designed exclusively for the transaction of business, everything calculated merely for ornament or display was rejected, and that plan selected which unlt.-d good taste with the greatest economy, and the largest and best accommodations. In a building of suoh magnitude and importance, it appeared to me necessary before expending any part of the appropriation, to procure the iMst talents that could be obtained to direot the construction of the work, and 1 have, it is tillered, succeeded in securing the services of a gentleman of high scientific attainments and great praotioal experience. Upon my appltca'ion to the War department, Msjor William Turubull, of the Topographical corps, will, it is hoped, be detailed for this work. The great aqueduct across the Potoman at Georgetown, admitted both in Kurope and in this oountry to be one of the greatest work* of the age, whs constructed under tha direction of this gentleman; and wherever he is known, the great?st confidence is reposed in his talents and worth, and especially in his judicious and eoonomioal expenditure of the public money. Further estimates and specifications will be submitted to Congress at the earliest practicable period. The thank* of this department have been already tendered to the 1st .Municipality of New Orleans, for the munlUoent donation of the entire Custom House square, made by them to the government. In other cities where custom bouses have been erected, large sums were paid by the government merely for th* ground; but here the best site in New Oileans, covering au cutiie sq iare, has beeu bestowed as a Kilt, and tins IttCt, together Willi itie great anil growing commerce of !New Urk-mis, the lucieaied and increasing revenues collected there?brum the depot of (lie Krcate.it and richest valley of the globe. and destined to surpass in business, wea th and puliation nearly every other cily?render ic jmt a-i<l MlfSrUMtI building couiioei.iur.ue with the Intnre Krowlli and progiess of Mew Orleaut should be erected, an1 tint it should be placed up.iu an ei|U tl footiug with other cities where t.ougreis have paid both lor die ground and the building: and ilwill lie i he iniioui desire ol this depmumit, with ilie sanction of ConI gress, to make tlie building >i model ol' urefulueii and ecoun my. The action of the department, a* to t'le cection of other cu-itoin homesauthorised by i;ongreu, will be made the subject ol a special report ai au early period of the session. The Department has proceeded, aided by the fifth Auditor of the Treasury,and the Chief of the Typographies! Bureau, lo carry into ell'ect the set of I lie :id March, Ibl7, requring the Secretary ol llie Treasury to came certain lighthouses, and other public works, to be erected, ai well us to execute the I other duty devolved upon the Depaitmeut in regard to the Ii.<litli<inv4 11' w *1 Mould evtrn?4 iiiir lorciifu mid coastwise trade, lutl make our country the depot of universal commerce. onr coiar aa well a* fake* uuit he well Incited, ai.d the coast auivey mint aarertain *uii give accurate, minute and faithful charts of nil th' poiuta ncceauMe to cominfice. In uiy rep ir. to Congress of i?i- Jtli An*""it. IRIS, our lighthonie i) tcni was I nily ditcuiaed, a comparison u. stunted between it and the Kuropeau ay stem. and the refracting or Irtticuli r apparatus strongly recommended to the ado|itiou of Cougien. At the tame litre, the (Jepa tmeot suggested the otg 11111111.10 of a board, attemied ?i h no expense, consisting el the lifth Auditor, the Superintendent of the (J Mat Survey two olficera of the Nary, an ofl'teer of the Kngmeer m alan ol the Topographies! Corp*, wli > would combine the ml itmation postesssd By no our individu >1 aa regard* our coast and navigation, the loe.itiou aud construction of me liotMea, the proper apparatus tlo lie emplov ed 111 lighting, as well aa to the adinimutative dutira eppeit lining to the system A? Ihe aafrf^ i,l J if*-. as wrll as property, la iiivolv-d in the unpmvctnai.t of onr IikIi h uie system. theorganmtion of tlin board n respectfully irr -iftuienCed to the consideration of C< ngrrss. Jin survey of "'-e Coast ol the United State*, under the oprriutri.deuc* < I Profenor A. I) U ache, Ins made great and rap.d p.rgrevs, having *ctn tamed On lug the past t ear into i eighteen rtitti ou ihe Atlantic and Ui'll oTMmib ', including Maine on the Noith Cast, and Trias on the H iath \Vr?t. | The publicat.nn of the result* his al? i kept pace with the | extension of the Held work. The plan developed bv the Sllj pe luleiidenr, lu successive anr.it.il tepoilt, for the execution I ol I his woik, a?u the estimates, hare r'Cmrd the approval ol | | this Department. The snmiaslted for are hrlirvrd to he the : smallest, consistent with d't* piogriss ol this great work The i ' introduction of steam vessel* in 'he hydn gnphy, will tena ; i greatly to expedite tl'Ubraac1'of the coint survey Annexed i* a t .ble mi l ?d containii g th? val'ie and description ol fireign good* iit irwrhnuw ?t the close of the ! Ia?t niaiier, inihritvet.il porta of the I'uion. By Ihe warehousing a't, thia J'r artin'ut is requited to mase snrh .emulations Irotn time to time, r.s mar br necessary ' to give lull effect to Ihe law, and to r? port to each snrceedn g session u( Co- g.e- inch regula'i?us Th ise heretofore made ' under the luge au.i cmtinnons ditc'ctioaat) powers granted by tins set to the Pepirtment, wrre reported to Coueress at ill* Isstsessioi. .Alter examining the practical worsing ol the syatem tiu<trr these resulsti in, it termed to me suseeptible of improvement,a?d ? it wis entirely r.rw he e, I proceeded to coll'et lulormatiou 11 irfard to tt in th sr countries where it lisi been lor so mmy )'0"s in lull ml sncceisful operation tccorrtiugly, Mei sri. t'. C. Waldeu and D. P. liuh/ift, of the ' New Vora ' ustom-hnnse. weir seut by rne to Kit rope la* A ugost. under specific and detailed mil ruction* (t copy of I wIt rh n annried) to inveitigate the rperationol theavstetn I I lirrat Britain, aod elaewlief in buiop*, and report to me the lentlis. The waiehonaing system. o? it exis** in (Iteet < ?? * " it-'..... ?... ....e.tn.. , hv ii'111 iii," ?|?u la i' m _ I them, the fulleat information bring amdly alTordt-d lo them by the lirntlrmen connected wiili th.iae enahliihiaent* abroad, mid a<|ceiall) in Oreat Britain All llieiletaila were obtained ! hy litrin. "id c mmunica'rd m mi able and vulaiiiin km repoit i 10 m?,with an rendu eorerinj Mtml rolnmixil gener?l i n> will ? atxiihi nil detailed inform iliou. u gethei with nil iIip I?>init fix il.< uanMCtiou ?l huaintia, and the m.?' full ar d mniuU inform iliuii (i Hi* mode of conducting thi- ?*ti j i he ayitrin w aa luiiinl In hi I He moat peiffrt in I hml IjiiMm, it had Iouk bren in inccenifiil operation, mid iheriahrd by all piniei, whetl <-r lor or againit prM action. It none of til* principal nwaua by whicti lireat Biitvn hu built up her cum netca and Hangatmu, eateutc J the marlut for lirr labrica, and | l ? fd under lirr control, I n an many Marl, the mcli mgea a id t ade of Ih* world. Hip Iih thin made L Ion tie ureal dep it. w li*r? not only all lirr own l.ibr n could be pinch aed, bin alao aaaoite'l cutanea <f lh? product* end fibriciof a t other nation*. Aceotdiig to the report of iheae gei.tlrinen. tli* v ilur rf !h* voodi of all kind* in warehoua* in Ureal Brilaiu, la $117 2(NI Mi:i The bnildiuga. doi ka aud atructurei I ereeled, umler frta coinpetiliou, almoat eiclnairely hy )iriT*ta enlerpriae, for llie convenient atoniue nf theie good* in I.ondun, i xtimittd lo |iire coal Vi'M'OO.OfO, Ureal aa waa the uni orivirv itturlied t; lint De|-arlraen'. lo lh? lUUodijetion i.'.'f Mtb* III .. IV>MM M4 MfNMM Waa the it. oiimuirndUioB Iter il in ui> Ii'?t uimtl i*poiii Mil' rriulia 41 -UKflUlliM M ftl)?U?H|l lUfllWI l?|T llpfg WENT. It-West Corner of Fulton and IVmmu IU> tatious. There it ii regarded by their intelligent null Iscturers, si among the most important means.of bringing customers to tneir own iluwi, to purchase assorted cargoea, including their own manufactures. It I* thus (ireat Britain seeks fu' the ptuducts of all her industry the markets of the world, ami tins i* what we must do if we would com,iete with her suce.esslully for those markets lor the produc of all our industry, deluding manufactures The report of Messrs. Walden and Bathydt his beru very recently mide tame, ead le herewith ci.intnunica'ed to i.ougress, retaining for lefereooa the volumiuous appndiiti iu tiie depirtmeut, subject, however, st all timrs, tothe call of Cook rex. At the earlieat prae ticablr period, 1 will make audi furtoerlregulations aa are autko. riled by th<i powers dslrgaiad to me,by the S'h aectionof the Wartliousmg Act, aud will r?|>ort the aame to Congress. 1 tie American m-nufacturer, the farmer and planter, in enlarged markets at home ami abroad, aud in the aale of their products and labrics to complete assortments, will duriT* the g.ralest advantage fro i the system, whilst the merchant aud those coucerued lj navigation will had an increased hasmess and augmenting proliti; property mour warehouaing citiee will be rendered more valuable, aud every branch of iudaat>ir stimulated and improved. A commercial nation without wsis* liousiug accommoditieus is like a merchant without storehouse, and no nation can enter up in ihe field of fair aud opea competition with other countries wi'.honi snch a system. The new ten If has now been in operation more than twelve months, and tits greatly augmented the rcveune and prosperity of the country. The uet, revenue from dutma during the twelve months, ceding 1st December. 1(17, under the new tariff i. en 'jiii hi,ii ri?>, ... * a 'j j Mi, M,?a tk .....?i J? lug die twelve mou'hs preceding, under the Uriff of 1H2 The nttrevsuue of the firs: qu?rter of Uie first liical year, under tin- new urilf, WJI s41. whilst in the sun* quarter of the pre -r Oiug tnr, under ilie tariff of IIO, the net rrreaaa wus only tti.liil.KM it If the revenue for the three remaining quarters should equal in the avenge (he first, then the art rrveuue from duties' duriug the first fiscal year of the new laritr would be >44,425.02'.i St. If, however, the comparison is louuded ou all the quarieily icturus for 41 years, (as far back as giveu qjarteily in the 1 reasosy records,) and ihe same proportion fur the several quarters applied tit the first quarter of ill! I \ear, it would make its net revecue. (per table C.) $40,38u.C4i. Although the uet revenue from duties already received, lieing $IJ.50tl,257 41 during the five months of this fi'Cal year, would stem to indicate its probable amonnt as not lass than $36,0110 OflO, yet it is estimated at $11,0*0 000 for the fiscal year eudiug 30th Juue, iaig.au JO 2,000 00? for the succeeding year,iu the view of the |h?isiI>I? effects of tha revulsion in Ureat Britain. Although our prosperity is ase.ribed by sosse to ihe famiue there, as though Providence had made the advance of one country to depend upon the calamities of another, yet it is certain that onr tiade with Ureal Britain moat be greater in a series of yeats, wliru prosperity woald enable her to bay mote trom as, (vid especially cotton,) and at better pneas, and seII us mjte m exchange, accom;*auied by aa augmentation ot revenue. In my report of the 22 J July, ISM. it wat shown that the ani.u\l vislue of oar products exceeds three thoasaad millions of dollars. Our populatiou doubles once ia every 13 years, aad our products quadruple in the nme period, that being the tins withiu which a sum compounding itself quarter yearly, atsii per reut. i terest, will be q >adrupl<d, aa is sastained here by the actual leaulta. OI this three thouiand millions of dollars ouly $ 150,000 LOO was exuorted abroad, leaving $3 050.000.000 used at horns, of which at least joo.uoo.ooo is annually luterchansej between the several Staiea of tt\e Union. Under this system, the larger the area and the greater the variety of clim tie, soil, aud products, the moie extensive is the commerce which must exist betweeu ths States,uid the greater the value of the Uuiou. We see, then,here, under the ststein of free trade miutnj ill* Hfnlfg iif fh? I Tniiui an ? f tl.e auuual value ol at leaat tiuO.OOA.OO0 amour our 21 million* of people, whiiat uiir total exluugea. including import* and export*, with all the world betide*, containing a population of a thouauid uliilioua, ia still about >300.000,000. Although, iiuder the new tariff, theae exchange* increased nearly (100,000,000 the laat year, yet thoao betweeu oar State*, consulMg of a population of twratf-nae million*, being of the yearly value of fJOO.uOH 0<0 exchanged, make* such exchange in our o urn country equal to S23 81 per individual, aanually, ol our owu pruducti, and reduce* the exchange of oar own and foreign product*, oar import* find eiport* with all the real ol the world to the annual value of thirty cent* to each individual. T at ia, one person of the Union receive* and exchange* aunuilly ol" our own product* a* nuch aa seveatynine persons of other countrie*. Were this exchange with foreign conn trie* extended to ninety c?ut* each, it woald bring our imports ami eiport* up to $1100 OOO.OM per annum, and raiae our annual revenue from dutiea, to a aum exceeding (90,000,000. An uddition of thirty centa each to the conaumption of our products exchanged from State to State by our owu people, would furuiih au increased market of th? value unly of $6,300,000; whereas an increaae of thirty cent* eseh by a *vateui of liberal exchaugea with the people ef all the world, would give u* a market for an additional value of $300,000 000 per annum, of export*. Such an addition cannot occur by refusing to receive in exchange the product* of other nation*, and demand inf the $>#0,000,too per annum in apecie, whichcould never be supplied. But by receiving foreign product* at low dalie*, ia exchange for our export*, such au augmentation might take place. The only obatacle* to auch exchange*, are the dntie* and the freight*. Hut the freight from New Orleau*t? Boston, differ* but little from that between Liverpool and Boston, and the freight from many points in the interior, i* greater than from hngland to the United State*. Thu*. the average freight from the Ohio river to Baltimore is greater thau from tt.e aame place to Liverpool: vet, the auuual *xchangea of prodncta between the Ohio ana Baltimore, exceed by many millions that between Baltimore aud Liverpool. The Canada* and adjacent province* upon our border*, with a population leu than two millioai, exchange impoita and export* with n*, leaa in amount than ihe Sta'e of Connecticut, with a population of 300 000, showing that if these province* were united with ua bv free trade, our unuual exchauge* with thein would riae to SM.tOO.OM. It i* not the freight that create* ihe chief obatacle to inierchaace* of producta between ourselvea and foreignfcouatriea, but the dutiea. When, then, rcflect.alao, (hat exchange of rroductadependa chiefly upon diversity, which i* greater between our owu country aud the rot of the world, thau between the difI fsreut State* of the Union, under a *y*tem of reciprocal free trade with all the world, the augmentation aridng from great' cr uiTcrvuy ui itwuhvis, wuuiu rqnsi uiiniiQiuon ciDKi by freight. TDM. th- Southern States exchange no cotton with each other, nor ihe Western States Hoar, nor the menafacturiug States like fabrics. Diversity of products is eseea* tial to exchanges. aud if KngNnd and America were Baited br absolute free trade, the rec procal exchanges between then would soon far exceed the whole lotiii commerce of both; and vv iti> reciprocal Irea trade with all nations, onr own coantry, with lis pre-eminent advantages, would meaaure its as uual trade in imports and exports by thonsands of aiUioM of dollsrs. In my last aui/ital rei>ort, and thit which preceded, It was proved that the home market was wholly inadequate for oar vast agricultural products. We have long bad for grain aad provisions, the undivided markets of onr own people; bat these are not sufhcient, and in a single year, we have, with abundance of food retained at home, supplied the world with an addition, at once, during the last year, as showa by table A. A , of$? 1,331 28> in value, of breadstuff* and prnyiiioo*: bringing the value cxi>orted that year, up to 965 9M.27S Onr manufacturers could not have cousnmed this surplus, aor their non consumirg machines,which are substituted in their workshops for the labor uf man. If tne energy olour own people can add $11,331,2*2 to the export and supply of oar breadstuffs aad provisions >u a single year, what could they not add to ?uch products, if they eujojed, lree of duty themarketsof the world ) U y table BU, hereto annexed, it appears that the augmentation of onr domestic exports, exclusive |of specie, last year, compared with the preceding, was 941,DM Ml, or upwards of 41 per cent Jand at the same rate per cent per aanum of augmentation, would amount in III#, per table CC, to $129.9)U.9U], or much greater than tlis domestic export from State to State. The future per csntage of increase may not be so great, but our capacity for sach increased productioa ie proved to exist, and that we could fnrnish these exports br I above the domestic demand, if they could be exchanged, free of duty, iu the porta of,all nations. The energetic American freeman can and does perform far more effective labor iu n day, than what is called by the re strictiomsts, the pauper labor of Kurope; and, therefore, the employer here can pay more for a day's toil to oar workmen. iMetiiired by the day, the wanes here may be higher than in Kurope. but measured by the work done on that day, there is but little difference. And when all our capita ists, (a* some alieidy have,) shall Dud it to be their trae interest, in addition to the wanes paid to the American workmen, to allow him voluntarily, beceuse it augment* the profit* ofcapitsl, a fair lutrrest in those profits, and elevate him to the tank of a partner in the concern, we may then defy allcompe tition This ii the sime priucinle illustrated by uniform *? | i rience, proving, that lie who rents his farm, builds hi* liouie, sails his ship, or couducts any other busines* upon h irea, realizes the largest return, aad thst he who works by the job, produces inorr inithe lametiine than the laborer whoee wages am paid by the day. The skill, eoergy aad la da* try, tne interest and pride iii success, the vigilance and perseverance that will be manifested by onr intelligent workmen. uimrr iumii ?)?icin, ry *ij tai imiiv uwh iviuhu b i racn reasonable i?articip?tion in iti rouia, and enable anch Amencmi establishments to supply *11 the nauona of the world. The introduction of this syatem will be voluntary, bictaie It is moat juat and briieliri.il ti *11 parties. It u the partiaipatioa of nil our ixoplt iu tbr government thai la one great cause of our proa|?rny, noil the participation of oar workmen lathe profna ul ?ur ludnst'ial establishments would exhibit similar inults. Oni whale nud other fiahi riea prr?eut strong evidence of the success a> tending Anu'ticaa industry. when our intelliK**ut fieemen, the working rnru ofihe concern, stimulsted by a j uat (aiitintM in the profits, bare driren from the napst aistaut seas the whale alupa of moat other nationa, ana nearly inonopuliaed llna pursuit The intelligent woiking men rf oar couu ry are far better prrpared for the adoption of thia truly republican ayatem than those of any other nation, and thi* elevat'on cl'the toiling millioni of Aine ieato a juat jwrtieiwtioa in the profita of that capital which la made fruitful otuyby their industry, will yet enjoy aa great a tnnasph a? that anleuered trade and united and uureatricted labor with which it ought to be, and certainly yet will be, proudly associated Under thia a>ateni. the lahonng men, whilat they received the lull ??gea heietofore allowed ihern, would alio participate to a reaionubla eitent iu the profita, aa *.u addition to their wagea aiid aa a moat powerlul Mid certain stimulus to render their labor more prodii tive, dud tliui increase for the beaefit of all concerted thr cipitaliita ?nd the workmg men, the p oflts of the establishment. What ii called the pr.uper labor of Kbrope, ia already inferior to our labur, but would t>e rendered si11i tnoie powerless to rompetu with ua when labor here participated with c.ipit?l in 'he profita. When we reflect thil the workiog freemen of (lie Union rnnit conatitote the great maae of the |<eo|fle whose rotra will control the Uoveramaat aa4 direct ine policy of tbr nxliou, the auperior comfort,ednra iea, intelligence and information nnceirarily reitiltmg to them from this improvement of our social lysiem ia important Ut the aaccraalul pmgreia ami perpetuity of oor free inatitatious, aad mu<t lie giatrful to every repuhl cau, i?trint. and lover of in in kind. W hilar all have derived it r rat benefitafrom the new tinlf.it I" labor that haa realiaed the largtat reward. It waa couteuded by the adrocatra of protection, that It enhanced the wsges of lab ir, and that low dotiea would reduce wagea here to the rate allowed for what they call the poorer labor of iLeropc. I in ths contiar y. the opponent? of high tariffs man ted that tabor lef. to see* Ireely the mirketa of the world, would rind for lit producta ti e keat prieea and at a nonre<]ueiice, the higheat reward for the labor by whieh they werr prodared. The datiee have been reduced. and yet wagea have advanced, and are higher now than under any protective tariff. There are maar tool i workmen conrerned in r ther pursuits than ia man u far tores, and with mnch leaa machinery aa a substitute for labor, and by tdepri isu g agrirulime, commerce and navigation, br raatncting ihnr liu?iu??a and ihe maikeis tor their product#, the wig" of those engage d in such pursmtsare rednced. maar workmen also lose employment and competing for work in manufacturea. the wiiges ol all are dimin ahed. I It ia not only the reduced dotiea thathaie produced the** happy K-aulti. hut l'ie mode of rr.lurtmn, the aaliitiiution of I . .i.. i I n ni.r rnl and oppreaanc minimum and ape , Iftc duties 1 lie luglier duty w?s ihua always imposed, by 'he trry uatnrr of the dsty, upon the article of the loweet I - .?-.I ku Il.i II....I UD^ ik? liiwff di.tv mtftuil MrMM the titirie of highentaiue by t-.e more wealthy, often OVtrHlai at mint v i f 10, 10, or .in per cent npoo the high pticei coodt, niM ofiloo or 200 per rent ad i nlorrm upna a-tirlet of lower price Ne*il> the entne burden of tne tariff wit thai thrown uimi lab'ir, by w ho?r waurt rhir fl y the ehturrti tlclea were purehurd, whilit rapittl, wuh whoee pr< fiti the more rotily iwbtNN bnuitht, wee ilmnK exempt from tho in It nerer w.ulii Imte been tolerated In luir imi'iH iluiyol 10. In, or :ii |>er rent by in me uihmi roetly ?rtn let, ud ol 100 or ^iiu per cn.t upon cheaper Mirier, where the n4 m'jiih r?iei would hive eihibited the injustice ned la e luility of tSe duly; bnt it w?? accomplished by m niiniiin ami tpecilie duliei. which k?t< a<ed a higher duty in proportion <o **lue otoa the tbeai er aitir'et, end ih? lower dutr ui'i ii similar articles more rntly in price; fiat in p mir the luyher duly upon labor and the v. met ol Uoor. aa effrctmlly at tlmtixh the lai ua'here' had collected from the w rlnnitniiu a third or fourth of hit wages rvrty ilnT, whilat ctpital was Comparatieelv eiempt frtm isiatioa Hu?h la the t\tiein wbn Ii h ? been iiveithniwn by il.<* tobttiiunoo of tlie redurrd nd ruleirm, operating 'be rererte of the former sy?tem, in I irui ol the poo: mid the t? ?? <>f " * ,l,r " "T (%> iH can .O oper.te, tml.M vre.ee, ,?en with lower dntiM collecting k h.Efr \ '*? '? P"<! <"?<?> V* "> *?? cf in?pM : u j . ; !() 0) ?*i *lw?V$ l?# / out which it ire tf ' 't 'i ' 'I'lOi Whl' i dur?fc?fifi >i ?!