Newspaper of The New York Herald, December 9, 1857, Page 2

Newspaper of The New York Herald dated December 9, 1857 Page 2
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Uirio- quarters of the pre?ent fiscal year w II, in *11 proba bility , be ux i i'&mhI from the cause* set forth iu Hit? t e|K>rl of the Secretary Hi* suggestion, therefore, that autlwri ty ahould be given to supply any temporary deflciency by the issue of a limited amount ol treasury notes, u ap proved , and 1 accord nijt 1) MOOBBend the passage of nuch a law nm tariff A* stated id the report of the Secretary, the tantl of Match 3, 1H57, has be?t) id operation for so short a pe tt'HJ of time, an 1 under rircum-tanoss no unfavorable to a lust developement of its results as a revenue measure, that I sliould regard it a? inexpedient, at least for the pre sent, to iuulertak<- it? revision I transmit herewith the r<>|>orts made to me hy the Se crelarie* of War and of the Navy, of the Interior and of the IVwtniast.T General They all contain valuable and important information and suggestions, which 1 commend to the favorable consideration of Congress INCXKASK OK Til* ARMY T have already recommended the raising of four addi tion. t reg. meets, and the report of the Secretary of War pre*, nts -trong reason* proving this increase of the army, voder existing circumstance? , to be indispensable. IMCHKASK or THK NAVY I would call the Hjtecial attention of Congress to the re- ommendation of the Secretary of the Navy tn favor of tbe construction of ten snail war steamers of light draught Kor some years the governmedt ha* been obliged on many occasion# to hire such steamers from iu dividual* to supply its pressing wants. At the present moment we have no armed vessel in the navy which can peneti ate thf river? of China We have but a few which can etler any of the harbors south of Norfolk, although many millions of foreign and domestic commerce annu aiiv pass In and out of (lies.- harbors Some of our moat valuable interests and most vulnerable points are thus left exposed. This class of vessels of light draught, great speed, and heavy gnus would be formidable in coast de fence The cost or their construction will not be groat, and they will require but a comparatively small expand! tare t" ke?*p them in commission. In ttme ol peace they wiK prove as effective a- much larger vessels, and often more useful One of them should be at every 'Station where we maintain a squadron, and three or four should be constantly employed on our Atlantic and Pacific coasts. Economy , utility , anil efficiency combine to recommend them as almost indispensable Ten of these small ves sels would be of incalculable advantage to the naval ser vice, and the whole cost of their construction would not exceed two million three hundred thousand dollars, or $?230,000 each. Tlie report of the Secretary of the Interior Is worthy of gTavo consideration. It treats of the numerous, impor taut and diversified branches of domestic administration entrusted to him by law Among these the most pratni nent arc the public lands and our relations with the Id dians THK Pt'BUC LANDS. Our system for the disposal of the public lands, origi uat'ng with the fathers of the republic, has been im proved as experience p unted the way, and gradually adapt> i t" the growth and settlement of our Western State- and T rritones It has worked well in practice Already thirteen Mates and seven Territories have been carved out of the.-e lands, and std! more than a thousand millions of acres remain unsold What a hound les pros pect this presems to our couutry of future prosperity an 1 pawer' We have heretofore d.sposed of 363,Sf>2,4'M acres of the public Und. Whilst the public lands as a source of revenue are of frreat importance, their importance is far greater as fur homes for a hardy and independent race of hon est and industrious citizens who desire to subdue and cul t:\tlc the soil. They ought to be administered mainly with a view of promoting thi? wise and benevolent jtolicy. In appropriate them for any other purpose we ought to use even greater ecotiony than if they had been converted into money and the proceeds were alp ady in the public treasury To squander sway this ricln-st and noblest Inheritance which any |>eopl? have ever enjoyed uponob jecls of doubttul constitutionality or e*|?edieney, would be to violate one of the m?M im|K?rtant trusts ever com milted to any people Whilst I do not denv to Congress the power, when acting fiile as a proprietor, to give away |?>rtiottf of tb?-m for the pur|?>se of increasing the valuf of the remainder, yet. considering the great temp tat. or to a^usc this |?>wcr, we cannot be too cautious in its exercise Act .ill settlers under existine laws are protected against other purchaser* -it the public sale*, in their right <>r pre emption , to the ext. t.t of a quarter section, or 160 acre* 0 land Tin' remainder inay then be disfsised or at pub lie or en(er?i1 at private sale 111 unlimited i|iantities Speculation ha* of late rears prevailed to a great ex - v'u. in the public land* The consequence has been that large jiortions of theni have become the property nf lndi viduals aud companies, and thus the price in greatlv eU nance I to those who desire to purchase for actual ? nient Tn order to limit the are* ? .Hna-mu-li as |>oasible, the extinction of th< Pidiat nd the ? - ten.-. >t. of the public WIH ought wiUi the tide of emigration 1 ,*CL If Coogresa should hereafter era; i alternate section* to States or companies, as they b r me heretofore Ire command the intermedia'' t on? retained br th? ?fltlet|1BCW'll0Uldb< pre emption by actual It ought ever to be our carl, nal policy to reserve the pul lu lanh. at much a* ma> be for actual settler.-, au l Uia at m iderate prices. We .-hall tbus not oniv best pro mole the prosper ty of the new KtUo* and Territories and U* power of the I nion, but shall secure home, for our posterity for many fenerations. TH* INDIAN TRIBES. Tbe extension of our limits has boought within our jurisdiction many additional and |>opulou- ti ! . (1f tu dian*. a large proportion or which are wild, untractable and difficult to control. l'redator> an< warlike in their disposition and is impossible altogether to re strain Uiem from committing aggression* on each other a* well as upon our frontier citrzeu* and those emigrating tooiy disum state. ?ud Territories. Hence exi">n*lTe military expedition* are frequently Mceasary to overawe and chastise the more lawle-s and hostile The pre?ent system of making them valuable presents to influence them to remain at peace has proved inefec tual It is ih lieved to be the better policy to colonize them 111 su'taale localities, where th. v can receive the ru d menu of education and be gradually In Juced to adopt babiU of industry. So far a* the experiment ha- been trie.! it has worked well in practice, an 1 it w II doubtless prove U> be leas expensive than the present system Tli. whole number of Indian- within our territorial limit* IS believed to be, from the beat data in the In ter tor Department, about 325,000. Tli triVs of Cherokee*. Cho.taw?, (Vckasaws an I C re< ? - -ettled :n the territory wet apart for them w.wt <>r Arkansas, are rapidly advancing n education and in nil tfoo art* of cirilisat mi an-l nHf forcrom^Dl and miy indulg. the agreea'de ant. pation that at no very dtftaat day they will be incorporated into the I'mot, a- one ot the aoveieign sute? tjik n*r o?nr? MTtmciT It will be seen iron, the re|?>rt or the Poetmaater (Jene ra. that liu* r<mt ofTk <? Im partm?*ut Mill c?>nt.uuoi to <Je peril on the treasury, as ? has been compelled to do for ?evrai year- pa-t, tor a;i important portion of the means ?T fusuming and extending it, operation* Their rapid growii and exjiausion are?!inwn by a decennial statement 01 tin number of po?t offices, and the length ot i>os| roais coinih. I ? Ill* w ill lie je .r ls:7. In that year there were' . <*>) post , rn e. .11 IKIT. 11. ITT, in 1MT, lf>.14? and m It.,, they '.M.6W In thl- year 1.71* post offWs f'V' V\"V!.Ml",ll~ "i1""4 l- ontlnue.l leaving a net increase of l oil The postmasters or are ?p pointed by the Pre idt-l.t 1 1*27 wai l%,:i3fl miles: in 1iT, 141,242 Mies, in 1*47, 16.; .SI S mile-, and ,u the year IK", there are ^.M l miles of po-t road, loelud.u* S?ft30 mi^ of ratlr.?a?J. <>u whn b th t ina.U a r?- trau. pork'o The expenditures of th. ! partment for the I seal v oar ending on the *i|, Jull, , i?j7 adjusted l.v the Audi tor , amount dm ill >C.*t7o To defray these ex;-ndi tUV " l. " T " '' 1 r' 1 ' "f ,li? department on the m July. 1? ?, the -liB. ot r S.i.fl??, tbe (ff.H.s r. venue << Uje)<ar mclj' the annual allowances Tor the trans portal. >b o! fii . mail mi't r, produced i? o.W. ?(H and t IC rem*:i. V| w? ? ippii. t by the appropriation from the treasury o i :.26o,'*?, gr .nted by the art of Congrns* ?JL }Hf" 1,'', hF sil'ropriation i<r ! } lb* "x " 3. leaving ?-,2,.?3to hecarrt. i to th - . red.t of the de,.?rtm?nt in the arcMiuts of the currr, | J(.,r I commend to your " ^'".1? I' ,,K ,r' '*,r' "f 'h* department in relation to Ui i e taiiii.hmc Bt ?> mail route fr>m the ?tHS ?- P|. rtve- toSan I snci-co, (aiitomia The ro ue wa. ,e ? ted wdh my 'H,- r,lrr,.tlf(. a. the one, in my co^mp'atlTb^ 1 "?,u"nib fjrr*A* ?ci*r? i rorsijcno* Theute du^troe. m.n-iar. revulsion m,y have one flood effect should it ? ause b th the government and t'ie peonletr to tf.< pru t of a wise an ! Judicio'i ?r moti.r bo(hm pub! < and pr.vate exix-nditures An orsrtl'iwirjg treasury has led t'> l.ablts of prodiiralitv and ext-araianre la our legislation It has in l>if d (W gre- t. make urge ?,,pr ,;M ?? nl.jrrte for wh eh * ?' " v'r w',ui ' provide ! had it been neeessarv to raise tbr amount oT revtn'ie required ti meet them t>v i.'Krea-ed taxation oe l,j I ?in We are now compelled ? r?" r- ?? ?' ? ???rut. n!i? our etpe:,.|ttqr.* mit . t... ulifi'Mi v tine xu 1 id |?frf??rmhj|r Ihif dutr, rorn^i "cv r? ' " ' tf" mT ooosutat onal I 1?^ ob?r rv ed a1 th? same t;m< that true pub cow ... i"'y not eoi . -i in withholding th" mean* ri" i , / 1 fT?!h? tivi|4vfiayit oatfona! ' '?' "lit' i o, and e.pwjaiijr .urf, a* may be oft Vr " n,n' " '"trT>*-e 111 the preeetd i-risi* tooh^M. V tl, . rhJ' , ?"r "pproprl ,tl<ei* to in l \ .,,v- inai i it it i , j""t" ' eve^r,. , rfc. t' ? '"Ur?e In all Congres. sha! t h/ve pasli'd the mM.', R^Z.e'nKt'iv. "aM shall, before it be-om- a ,?? h . ,b! P" ,u? by tie President and f t,,ii a t.. ^ " "i'*"'''1 turn it with his obj< > tior.- t that L" . r*' ?Bed." In order to ^rform??1I h7i. ?.Th'eh " or,.?' tim^ mum ??< atlowH u* ! iJr**T,f,V read and examine every bill pr. "nTel u, proval t 'li lees Ibis Ih- afford, d, the constitute? ?!* JUL a d??d letter m thm particular, and even ??r?. ,< i a mean* of dece,*??, o lr . <m?*ta ' trie pre> dent ? ap|ifoval and signature attached t/ i a-t of <v>iigrea*. are mduc.ed to believe that he hu v,. 1 perform' th s duly, when, id truth not! i ? mai v ca?"s. more unfounded ' n From the (Tract** of Ornirev, stieh an egam nat m of r?.; iT "ft!?*1 "r"< I. iliT. i imt?.rtant busin ss or evb *<w*i ? m iK d^v . 1 1 " "? r"bPf ?" vl"u'" bills w, I, for wai t on ' ,,0"rlK i""k ? n e examine ' ,.r ?. i , . Im|s#saible he should country and Ind'ivt !ual- i'" He..4,? ? nrirVi i 'r '"*? incmvenieooe rig u.e Wheel* of the KovernmeM k. I hftl K-trmerl) .m i " ?PP^' ><*- my own ptrt Thare dcliberatel* determ u i . leWI^r^ren.hl" which I have not e,.? ne1. aai'1 SL alnT* * hn,i '"-rent nweasVr I ^UsU< tHf me to depart rrotu tiiu rule 1 therefore respectfully, I>ut earnestly, rooomtnonl that the two bouses would allow tbe President at least two day* previous to tbe adjournment ot each sos pioti within which no new bill shall be presented to him for approval Under the existing Joint rule one day is allowed, but this rule bus been hitherto no c<m stantly suspended in practice that important bills con tinue to be presented to bim tip till the very last moments ot the session In a large minority of oases no gr.vtt public inconvenience can arise from the want of time to examine their provision*, because the constitution has de clared tlmt if a bill l?e presented to the President within the la*t ten days of the session be is nol required to re turn it. either with an approval or with a veto. 4 ? m which case it shall not be a law." It may then he over and be taken up and passed at the next session Great moon venit nee would only he experienced in regard to appro priation hills; hut fortunately, nnder the late excellent law allowing a salary, instead of a |?r diem, to members of Ocngrebs, Uie expense and inconvenience of a called session will he greatly reduced. I cannot conclude without oouuien ling to your favor able consideration the interests of the people of this Dm triet. Without a representative on the floor of Congress, they have for this very reason peculiar claims upon our just regard. To this I know, from my long acquaintance with them, they arc eminently entitled. JAMRS BUCHANAN. Wakhiwutow, Dec. 8, 1857. THE TREASURY REPORT. TMAsrRT iiKPAimnnrr, Dec. 8, 1867. Sir? In compliance with the act of Congress entitled " An act supplementary to an act to establish tho Treasu ry Department," approved May 10, 1800, 1 have the honor to submit the following report:? On tiie 1st of July, 1866, being the commencement of the fiscal year 1867, the balance in the treasury was T.... $19,901,326 45 The receipts iuto the treasury during the fiscal year 1857 were $68,631,613 67, as follows:? For the quarter ending Sept 30, 1866 ? From customs $20,677,740 40 From public lands 892,380 39 From miscellaneous sourcoe 365,310 57 For the quarter ending Dec. 31 ,1866:? From customs 14,243,414 90 From public lands 808,252 86 From miscellaneous sources. 123,999 69 For tne quarter ending March 31, 1857: ? From customs l!?.0r>5,328 55 From public lands 1,065,640 11 From miscellaneous sourcos 274,054 90 21,926,431 36 15,171,867 36 For 'lie quarter ending June 30, 1857? From customs 9,399,421 20 Froni public lands 1,063,213 28 From miscellaneous sources 172.756 92 20,395,023 56 11,135.391 40 The aggregate moans, therefore, for the ser vice ol the tUcal year ending June 30, lHfiT, were 88.532, H39 12 The ? xpendlturea during the fiscal year ending June 30, 1M7, were $70,822,724 85. I'.< iiig lor the quarter ending Sept. 30. '56.. $18,615,113 21 Hciug tor the <iuarter ending I>ec 31, '56. . 17,940,877 90 Hoiig fur the quarter ending March 31, '57. 17,245,032 OS tor the quarter ending .lune 30, '57. . 16,960,801 06 Tota'. $70,822,724 85 ? Which was applied to the several braucheit of the pub lic service, as follows: ? Civil, foreign intercourse, and mlscellan's. $27,531,922 37 Service in charge of Interior Department. . 5,358,274 72 S-rvicc ill charge ol War Department 19,261,774 16 Service m charge of Navy Ik-jmrtraent ... 12,726,856 69 Purchase of public debt, principal, premium and interest 5,943,896 91 Total $70,822,724 85 A~ .-hown in detail by statement No. 1. Deducting the expenditures from the aggregate means during the fiscal vcar a balance was left iu the treasury on July 1,1857, of $17,710,114 27 During the first quarter of the current lis cal \ear. 1858, beiug from July 1. 1857, to Sept 80, 1857, the receipts into the treasury were: ? From custom* $18,573,729 37 From public lauds 2,069,449 39 Fr< in miscellaneous sources 296,641 05 20,929,819 81 Tlx Miniated receipts during the three re maining quarters r.f the current fiscal year to June 30, 1858, are: ? From customs 33,000,000 00 Fr< in public lands 3,000.000 00 From misccllanejus sources.. 750,000 00 36.750,000 00 ? Making an estimated aggregate of means for the service of the current year $75,389,934 08 An expo*itsH) of the grounds on which this amount of revenue from customs during these three quarters has been cstimatnd, is given In a subsequent part of this report ? The expenllturesof the first quarter, ending September 30. 1M7, of the current fiscal year, were $23,714,528 37; being for Civil, loreign intercourse and miscellaneous service* $7,315,789 00 Service in charge of luterior Ivqwrtment . 3 ,'240 .098 99 Service in charge of War l>ei?artment 7.2W.950 H3 Service in charge of Navy Department 3.915.906 99 Purchase of the public debt, principal, pre nnumand interest 1.951,782 56 Total $23,714,528 37 (See statement No 2.) The estimated expenditure* during the three remaining quarters of the current fiscal year to June 30. 1858. are $51,248,530 04 Total . $74,903,059 41 ? leaving an estimated balance in the trea sury on July 1 , 185R, which will of course tie affected by any reduction or increase of ex|>endititrc not contemplated, of $426,875 67 K-TIMA7VS FOR CHS FlXTA!. YKaR. r*o|| jrLT 1, 1S5H. TO JfWK 30, 1859 Fet mated li ilance in the treasury on July 1, 1868 $426,875 67 !>t mate of receipts from customs for the year ending June 30. 1859 69,500 000 00 F.-tm.ited receipts from the sales of public '?"?'a 5,000,000 00 FMimated leceipt* from mi?cellaneous screes 1.000,000 00 Acgr<'B?te of mean' for the service of the fl>eal year to June 30, 1859. as estimated 75.026,875 67 Tlie i xpenditures are estimated as follow* Balance ol i xisting appropriations fur the ee of tie present fiscal year, which mm he applied to the aervice of the year eMing hm W. MM $16,586,568 35 An ount of lieu finite and permanent appro piiation* 7.16'i,224 49 Fst 'mated appropriations proposed to be made for the service of the fiscal year fr< m July 1 , 1*58. to June 30, 1859, as detailed in the printed estimates 50,312.943 13 Aggregate estimated expenditures for the mttio of (Wat year to Jane 30. 1859. .. 74,064.755 97 ? I,ea< In* an c>t, mated balance id the trea It I) < ii Ju!\ 1 1850. of 1.862.119 70 It i.' difficult at all times to estimate in advance the |.rt t at le rece pis into the treasury for the next one and two years. Our revenue being derived prln-ipally from ut e* on .whirled merchandise entered at the Custom lloii-c for consumption lite amount is neeiuwarily depend ent not only upon all those causes which aff'-ct trade and comttH-rC" . but on such as control the Inclinations and at liity of the )?eop!e in the purchase of mch merchandise for cot>-iimpt<of) Ordinarily an approximation can lie made to the proba ble result, provided no unlooked for cause shall inter vene to disturb the usual course of trade and con ranpMi Tit* ? T' nU <>f tin jiTownt (l?r*l year rumlxli a *trilunjj iillu ?ttatkit <<f (lie uncertainty of all ?ocb ? tliaam from th<' ofw ration of unfor-?ecu cau*e>- which exert ? con trollia* influence over the revenue from cuatoma Wl? the e*t mate* for the lament lt?cal year wore ma <!? to the taut (onRrea* by my predec.-.;?.,r. it wa-i im |?>Mlbl> to lore*ee either tl.e material change in the rate* i'iiIv . which were among It* la*t MM, ft llie pfMMl r> * !?' on in trade and OMMM r. e, both which hare deep ly affect"') Ihe retenue, and catudartnrily account for the d fl. retire bflVM th' eetimate* and tho*e now *ubmit t' 'I Vt th thcee two (li-lurlniiK cau.-e* now in view. It ia vi ry iJ.H1' nit to form *atl*fattory i ntimate* of the proba nlf rcipt* frcm ritftomf The tariff act of March 3. 1887, ha* not l#ea In operation Ion? eniugh to tout it* ef fed- upon the revenue even wider ordinary clrcum PUnre* Pimultaneou# with Ihhi art (?oin? into opera lion. Uie country I* nubjected to a dl*a*tro'i? rev.L-on To what extent Importation- would have 1 1 pen an- > ted bjr It had there been no revuMloo n trade and commerce, i? now a* ranch a matter of conjee tur< II WW before tbe paaeagc of the art. Rxperleaoa l>a* thrown n* i.ght on the *ui?ject. TV prota'dUty >a that it ? ruld, to a Uni ted extern, have fccraaeed Ifc nor land.-. tie ugh not t? the ext. tit of ;"ipfriylnK the deft c n ncy i rented hy tbe r<'duetiot> of the dutie lii miIhiiIUIiii nfbt11"" "i.'ler th?*e cimnxliam. e-i mate* of the r> celpt* for the pfe?*nt and ne*t fiacal year. It ? domed prti|>?r U> i?c< "mpanj th< m with a ?Cite ni? nt of fact* and principle* ujion whiihthey have been made in order Cotigraea tnay pae* it* own Judgment u|?iii the i re. 'it to win. li they are entitled. -he > xport- nod Import* of the 1'nited State* hare al mu h-.Mie a r? latirc proportion, the respective amount* ??H often d Her ng materially from e,?. h other. Both hav.| ?teadiiy increased, with ocia-ional exception*, w ill tint f rowtb and progrena of Ihe country In *eekmg, th?re ton t' H?r<TU? the probable importati >n* 11M0 the <??n try, the nmo'iot of our probable export* eon*titui?- ?u tn| M i t e|i met.t in the calculation. Th" "*|p'ut.* 1 <<r the } ' ir eni ' g . 1 une SO, 1*57, amounted to |V.?,'?4'i.l It. and ill i!i|- rt- far Ihe MtBe period were 141 The atiH 'iiii ef wif wuBfH de|iend not only on the quantity . hut the v. lint of the article- exported. The quantity o "mm 1,. 1 ihe talue of other* maybe ? oaaMeraMy di mi -lied and yet the defli ieii''y thuj' created may I'' *' ri ed i'.y either fje increased n lantity or value or other article*. It la prohable that tin* \.r> -tate of thing* may oecur ?lurl*?i? the pre?< nt fi*cal ye*r The Indlcationii at l>r"?rt'i |)IH, P)lp?rl, (lf |irea?l*tiilT< and pr<?\ Jlo?H will dccreaae '<oth In .|iiantity rind VHliae , but the lBcr?a? rd value uf r?4 to*, and it* probable prlree, which oonflt tute? tuuch the large*! item of otir export* *..iil I tn%k 1 lip *urh liefleierir y Krum the be*i information which oa i tie obtained, the opinion m enteruined thai the . sport* for Ihe present fl?-a! yi ar will not fall below ihoae of laat )e?r more than ten per ceat'im l/?'king to Ihe tmport*i">n? <* the lw<t ten year*, It may be -aMy ?tated that the ratio oi annual int r a*e hM not been la** than len per centum tb'^igh within that perlo I theft were two year* in which there ? falflne off Tliif wan attrlbuuble, dimbtlean, t? temporary caa*i" which d" not affect the general proportion The foreign merchandiae *u'?ject to duty import" 1 during the flnt quarter, ?ulujf iWUi September laat,oCtU? present fiscal year. hy the statement marked 8, amounted ! to $88,819,385, and tire customs received during that quar | tor wore, as stated in the estimates, $18,073,729 37. The , tni iff of the Sd of March last having gone into operation I on the first duy of 11 lat quarter, the circumstances under | v hick a considerable portion or that amount was realized vrere to exceptional as to form no satisfactory guide for the remaining three quarters of tlie priweut fiscal v ear ; and il becomes an important consideration, in view of the pro bable means in the treasury U> meet existing appropria tions, to approximate the amount of merchandise subject to dutv which will be entered for consumption during that period. In making the estimates herewith submitted, the amount of tnercbardise subject to duty Imported during the cor rewinding three quarters ot the last fiscal year were taken, beirg $210,000,000, to which ten per centum was added for the annual increase, had tliere been do disturb it g cause* ? giving for the amount of merchandise payin duty, under the then existing tariff of 1840, an aggregate of $231 .000,000. The inquiry now presents itself, to what extent will this approximated amount of merchandise paying duty be diminiihed by the revulsion which has come upon the country. An answer to this inquiry constitutes the most serious difficulty in the way or making an estimate of the receipts into the Treasury from the customs. Lookin-, howevor, to our probable exports, the great resources of our coun try, ilH unexampled prosperity in many branches of in dustry. its cajiacity to recovor from temporary pressure tn its trade ami business, the opinion is expreqped, with some confidence, that the reduction from this cause will not ex ceed twenty flvo per centum. This would bring the amcuntof merchandise paying duties down to about one hundred and seventy-four millions for the remaining three quarters of tile present fiscal year. For aoveral years tlie average rate of duty upon all dutiable merchandise by tho tariff of 1846, appears to have been within a fraotion of twenty-five per centum, which would produce on that amount forty three millions of dollars. Tlie next jxiint of inquiry is: How much will this sum be diminished by the rcduced rates paovidod by the act of March 3, 1867V From the calculations made of duties under that act upon Hie importations of the last fiscal year, compared with the amount of duty actually realized under tlie tar Iff ol 184C. it appears that about one quarter should be de ducted for the effect of the tariff of 1867. Ten millions of dollars have, therefore, been deducted on that account, making the probable receipts from customs during the remaining three quarters of the present fiscal year thirty three millions, which lias accordingly been placed in the estimates. It will, of course, be understood that the returns of du tiable merchandise, from which these inferences are drawn, are of merchandise imported, while the cus toms revenue is exclusively derived from merchan dise entered for consumption. In these estimates the amount of merchandise imported is gup|>oscd to equal the amount entered for consumption. In periods of commer cial difficulty like the present, the amount of merchan dise imported and placed in warehouse without payment of duty will tto doubt exceed the amount entered for con sumption; but such excess is generally temporary, and is soon obviated by diminished importations and increased withdrawals for consumption, which restores the equili brium without giving occasion for the discussion of such details in any general statement of the revenue. Ibc receipts from customs for the next fiscal year, from July 1, 1858, to June 30, 186ft, will depend in a ureal mea sure upon the extent to which commercial and monetary transact.ons shall have returned to their ordiuary channels. It is probable that the immediate effects of the present re vulsion in trade will have ceased by that time, and that the usual amount of Unliable merchandise will be required for consumption. Tlie estimate submitted is based on the amount of three hundred and seventy millions of dutiable merchandise, being the amount assumed for the present fiscal year with the usual increase, and without any de duction for the effects of the present revulsion. Upon this amount the customs, undertlieact of 1840, with the deduc tion heretofore explained for the effect of the tiriff of 3d March last, would produce about sixty nine and one half millions of dollars. Tlie annual estimates in detail, as prepared by the Re gister of the Treasury, are presented separately, by this department. These estimated expenditures are divided into throe classes: ? 1. Balances of unexpended appropriations which may, and probably will, be required by the respective depart menti- in the course of the next fiscal year. 2. Expenditure* under indefinite and permanent appro priations. In this class was placed the standing appro priation made by the joint resolution of February 14, 1850, of $2,450,000 for expenses of collecting the diatoms. It is proposed to change this permanent appropriation for annual appropriations of increased amounts, for reasons set forth in another part of this report In the mean time, as the proposition has not been sanctioned by Con gress. the estimate remains in this clafs. 3. In the third class are comprised the estimates sub mitted by direction of the several executive departments, as necessary to be appropriated to carry on the several branches of the public service in their charge for the next fiscal year These three classes comprehend tne estimated expenditures for the fiscal year ending June 30. 1859, as set forth in this report. Neither these estimates, nor those for the remainder of the present fiscal year, include any provision for deficiencies or other objects which the several detriments may ask for during the present se.s sion. nor for any expenditure whatever, which may ariae out of the original action of Congress during the session. To meet surh additional expenditures as may be required from these scurces further means must be provided. Tlie efficiency of the public service, as well as the secu rity of the public credit, requires that this department shall be provided wilh means to meet lawful demands I without delay Ihinng the remainder of the present fla { cal year It is estimated, as before stated, that sufficient re j venue will be received in the course of the year to meet I tlie ordinary outstanding appropriations. Hut the great 1 bulk of the revenue being derived from duties on mer j chandise j>ayable only w lien It Is entered for eonsump ' tkui, the period when such duties will be realised is en ) tirely uncertain, being left by law to the o|><ion cf the im porters during three years The pretont revulsion has caused a very large portion of the dutiable merchandise import) d since it commenced to be warehoused without pa\ ment of duty. To what extent this practice will lie pursued during the present fiscal year is to., much a mat ter of conjecture at present to risk th>- public service and the public credit upon the probability ol an immediate change In this re?|>ect. It may l>e safoiy estimated that In the course of the present fiscal year a large i?>rtioo of the merchandise n^w in \y?rebou*e will Ite wltlidi awn and duties paid thereon: but, in the meantime . adequate means for meeting lawful demands on the Treasury should bo provided. Such provision should be made at the earliest practica ble period. as a failure of suftclent ottK i the Treasury miiy occur at aii early day The oxtgi-ncy being retarded a.- tcm|torary. the mode ?f providing fur it *hould be of a temporary character. It i*, theretore, ret >mroended that authority be itlven to tbts de|?rtmeu? by law to issue treasury no es for an amount not to exceed twenty in 1 l:ons of dollar*. payable withm a lim ted time and carrying a specltfd rat?' of" mtere-t. whenever the immediate de mands of the public service may call for a greater auiount of money than shall happen to he in the Tn-isury , subject to the Treasurer's drafts in payment of warrants Tlir fact that !>uch temporary exigency may ari-e from Clrcvmstanees beyond the fore-iKht or control of till' de jmrtment, stake* some adequate provision to meet it in dispensable to the public security. previous to the passage of the art of March 3. IM'i, which requires all money receivable from customs and other sources to be paid into the Treasury without abate ment or diminution, (be wbole ex|ten*esof collecting the revt mie from custom" were defrayed from the moey* collected, and the balance only was paid Into the Treasury. The expense* of collecting the customs in California and < iregnn were excepted from the operation of that act by the third section of the act of September ?>>. IWH). and the mode of defraying the expense* of collection. wHcb ex luted pre vioui" t?? the act of March 3, 1S4H, has tieen oonse qucntly cm tinned at the custom bouse* on the I'aciflc coast up to the present time. The jr. ut resolution appeared 14Mi February. 1*50, makes a permanent appropriation for the expense* of col lec'jng the custom* of ?ne Bullion two hundred and twentl Ave thousand dollar* fur each half year, together w,th such snm* as may be received for storage, , an til Congress -liall a. t apoa the subject. Curing the flr-it four years of the o|h ration of the act of the 3-1 March. IMS. the expenses did not equal the amount of thi* ap propriatu n. and a considerable balanre bad accumulated, which bas enabled this depart sent to defray the ex peases of the last four year*, which have coasitleeably eaceedod the amount so appropriated, as i* shown hy nan mi nt marked 4. Th s accumulation hav ng become entirely exhausted, this department will not be aide longer to defray the cx pense* of collet tmg the customs unless Cbngre** shall now art upon the subject In <tnler that this Important branch of the public scr Vice may be conducted with promptitude and effr jency, I recommend that Congress shall, at tt* present session, le gislate upon tb< subject, to operate from the 1st of .lannary, 1*M, which will put an end I" the permanent appropriation under the Joint resolution from that date. Kor the fl?t al year ending th" 30th .tune. 1*57, the ex peases of collecting the customs considerably exceeded three nidliou* of dollars, exclusive of those of the ports ?>n tbe I'aciflc r<>a'i, which amounted to nearly half a mil lion, as shown by -tatcmetit marked 5 Fur the half of the current iwcai year, extending from l*t January to .'?/it h June, lHftS, at least one million six hundred thousand dollars wiil Nrtmlndll #sfray these expense* Ml the Atlantic Mates, and I recommend that sum to be appro prated for that period Tilt r< serins win h originally^- d to the cxc'pt.on of the custom bouses on tbe Facte* t^ast from tbe o|s>ration of the general law of 1MV no longer exist In the same force as formerly. t<ut the system caiiiiOt be suddenly changed without MM tMBhventence I prupo*e that, during the remainder of the cafttM flscal year, these expenses be defrayed, as heretofore , out of the accruing revenue; but, from the commence meM of tie fl-t ?l year <mthe 1st July, IW.that provision bt male by Uw that the whole re oetpis from customs snd sll other source* on the Pacific onset be |*itl into the TreasWJ untler the act of 1MB, snd tho egpenses of collection be defrayed out of approprle tton it.r that nnrpose To meet the expenses of collecting the custom* throughout the entire I'Mted Hute* during the Pstal year ending ;/th June, 18.r>fl, will probably require g4.otm f* t> The stateni' nt before referred |o shows the progressive increase m these expenses, ffotn year to year. sTnos the passage ? I tin act ot IMP It ai-o show* * corresponding increase in the amount of men handlae imported and th" duties paid. Rut the latter are not stiff ient to ex plain so large an addition to the expen?<<* of collection, is nearly the ?itno number of ofli -ors are required to ci>l!e<* the smaller at the larger amount* Other cau-ee have largely contributed to swell these expense*. When the I uldlt" revenue happens to l>e abundant, many projet is are listened to anil adopted by Congre-t* without careful r< tan! to the burdens they may permanently Impost. Til.- building new revenue cutters, not needed for the enforcement of this revenue law*, the multipll* cation of |*.rt* of entry and port' of del rery, for Iih al and t. iup?*ary coovenii nee, ?t not rn*j-iinr?'l for the col I <t tlon of tne revenue, ami the erection of ex pensive buildings for officer* of the customs and other public offl. "is sre of this ? lass The original outlay for these project* is usually provided for by spe iij appro pr atlon- . and their amount i* the principal object that attrai t* att. nlion. Put, untler tho exiating system, every one one of 4ie*e appropriations of necessity imposes an additional and permanent charge upon the ef|>en*c for t?l let ting the t ustoms. New rev??'ie cattors must be equipped, kept in repair, provided with cfll t-r* snd m?*i. and maintained In a state of efficient1/ at a large annual charge upon tbe expen*ea for collecting the custom*, that thev msy be In constant readiness to relieve ve^taeU In dist ress, or perlortu some other duly equally remote (root i! eir appropriate and legitimate function* of enforcing the I i wv New port* of eulry or delivery created by law at joints remote from the ordinary diauaels of direct fo- i reign commerce must be provided with officers paid by annual salaries or otber emolumeuta, at. expenses of col lecting the i ustoma. New buildings must be furnished, warmed, lighted and kept in a state of repair and cleanli ness, under the direction of suitable officers, with proper | compensation. All charges of such character are now defrayed out of the appropriation for the excuses of col lecting the customs. While the public revenue lias re cently rapidly diminished, those charges arc daily in creasing iu amount. The public debt on the 1st July, 1R67, was $20,060, 386 60. gince that time there 1ms been paid the sum of

$3,M>5.232 39 ? leaving the public debt at this time $26, lrfl.iM M. Since the 3d March last, there has been paid of the public debt $4,K7H,877 fa. Tha details are shown by the statements marked 6, 7, and 8. The departmont continued the purchase of stock as long as the law and a proper regard for the public interest would justify. The object was to redeem, as far as possible, our outstanding debt which had a number uf years to run, whilst the pay meut of the large sums from the treasury required for this purpose was affording relief to the commercial and other interests of the country , which were then struggling to ward off the revulsion which finally came upon them. At that time it wan not seriously apprehended that the re vulsion would so greatly affect the trade and business of the country; but. looking even to tho most unfavorable result that could happeu, it was thought that the treasury, if comju-ll^l to resort to a loan to meet auy temporary de ficiency that might occur, would suffer no injury from having the character of the loan changed from debts fall ing due at a distant jieriod to treasury uotes, at a less rate of interest, and which could be redeemed at tho pleasure of the department. A revulsion in Uie monetary affairs of the country al ways occasions more or less of distress amoug the people. The consequence is, that the public mind is directed to the government for relief, aud particularly to that branch of it w hich has charge of its financial operations. There are many persons who seem to think that it is the duty of the government to provide relief in fill cases of trouble aud distress. They do not stop to inquire into the jowcr which lias beon conferred by the peoplo ii|>on their agents, or the objects for which that power is to lie exercised. Their inquiry is limited to the simple fact of existing embarrassments, and they see no other agency capable of ufl'ordiug relief, and their ne cessities, n?t their judgments, force them to the conclu sion that the government not only can, but ought to re licve them. A momeut of calm reflection must satisfy every one that such is not the true theory of our govern ment. It is one of limited powers, to be exercised for specified purpose*. Its operations, political and financial, should be conducted within these prescribed limits in that manner that it will most certainly effect the object for which the power was conferred. In doing this it should be Uie policy, as it is unquestionably the duty, of the gov eminent so to conduct its affairs as to confer the greatest good upon the greatest number of the people This mis apprehension of the powers and duty of the government has led to the suggestion of measures of relief, which have been pressed w ith such earuestness u|Mm this do. partmont as to demand a brief consideration of them. A private individual who tluds that his income is reduced, at once feels the piopriety of bringing his expenditure within his reduced means. The suggestion to such a per son to increase his expenses woull instantly be rejected. To characterize such advice as folly would not be con sidered harsh or unjust. Thj.> estimates of receipts into the treasury for the present flscul year exhibit the fact that the income of the government will be considerably reduced. In tins state ol things it is seriously urged that our expenditures should be increased for the purpose of affording relief to the country. Such a |>olicy would doubtless furnish employment to large numbers of wor thy citizens. It would require the use of large amounts of money , to be raised either by a loan or the issuing of treasury notes, and would thus afford temporary relief to the country to an extent limited only by the discretion of the government in this unauthorized use ol the public treasure and credit. But where shall we look for the power to do this in the constitution? What provision of that instrument outhorizes such a policy? The absence of a satisfactory reply to these Inquiries is an unanswerable aigument to the suggestion. Iu the discharge of its legi timate functions the government is required to expend large sums of money in the building of vessels of war; the erection of custom houses and other public buildings; the pre|iaration of the defences of the country, and In a va riety of other ways, which give employment to labor, and draws from the treasury the money which has been collect ed from the people for these purposes. There might and would be Just cause of complaint if the government, un der the pressure of either au imaginary or real monetary crisis, should suddenly stop these extensive operations, and by throwing large numbers of employes out of ser vice add to the distress and suffering which the revulsion had nlready created. Being engaged in the prosecution of necessary and legitimate works for the public service, it would be the policy and duty of the government to con time their prosecution, even though it should occasion the necessity of increasing its available means by some extraordinary measure. The discontinuance of such works has not been und is not now contemplated, and to this extent the country may look with propriety to the ojierations of the government ) for relief. There are other public works of i Use necessity, winch for a variety of causes have not beeu ! commenced A temjorary postponement of them will I violate no existing contracts . will deprive no one of em 1 ployment to which he is authorized to look: will inflict no : wring upon any portion of tho people: but will enable the | go\ eminent to realm- its means in advance of its expen diture of them, and perhaps avoid the necessity of in creasing the public debt A system of public economy, ' regardful alike of the just claims of the people and the ! protection of the treasure aud credit of the government, must command the approval of the country: and It isupou I such principles it ts proposed to aonduct the financial de |?rtmenl of the government in the present crisis. As a measure of relief to the country it is proposed to ' increase the tariff A return to a high protective system i is regarded by som" as the surest mode of extricating the i country from Its embarrassments, and affbrding immediate 1 as well as permanent relief to the public distress. The 1 jx.ople are already suffering from distress, and tho propo | sitioii seeks to diminish their suffering by adding to their I burdens. The earnestness and ability which have been : brought to the support of this propositsm demand that its I merits should be examined with some care: and without attempting an elatmrate exposition of a question which has heretofore commanded somu< h of the public attention. I it is deemed proper to refer to some of the considerations winch render the adoption of such a |*licy unwise and Imjvo)**. Tbe theory of Ihe protectionists i* this ?That under la t< w UniT the Importations of foreign manufac. 1 tnren arc e ncouraged . and. being brought into the coun I try at lower price* than they ran be procured, the coin Ertition With the domestic mauufact'irer i* ruinous to ha usiness The remedy la, to ramp the duties upon the fo re gn article to audi a js'int that either it will bo exclud ed . ao<l thua give to the domes t-c matiufacttin r the entire heme market, or else It will be so Increased In price by U>? additional duty a* b> enable the doMaUe maoufartur ' cr to receive a remunerating price for hie pfodtMUooa. That the cfR?ct would be temporarily for the benefit Of the manufacturer la conceded, but that the ultimate effect would be alike Injurious to htm a* w-< II as all other Interests is equally clear. In lt?>klng upon the ojierattnii ax a men ?ure of relief, we mul conalder Ita effort* not only upon the d< me*tic manufacturer, but nleo upon the noMaumer. If Die increased duty neither dim ? la hew the Importation* nor Increase* iho price, it i* manifest tliat no advantage 1 1 a> bees derived by the domestic manufacturer. If the effect shook! be to "exclude the fom(t article, then the domestic marufni turer moaopoitnen the home market, and commands hi* own price. The relief he need* U a bifiher price fllf hi* goods; and. aa a matter of oowm ? ut.r? - trained aa be will then be by the lawi of comix t>ti?o ? he will so raise Ma pricee aa to remedy the evil of low I ru t * of which be had complained Tlie effect upon tbe consumer I* clear He must pay the Increased price thus ptif u|>on tbe nrticle of consumption Nor doe* it stop tb< re I'nder the existing state of thing* when he haepur chased the article, he ha* not only formatted hiniself with the f."od* he needed at the reduced price, but at tbe same ttnc baa paid Into the treasury the tas required of hitn for the support of government Tbe im-aaiire ot relief pro pO'-ed by the protectionist* Increa*** the price he I* re quired to pay for bl* food*, and where the foreign artfle ts excluded Waves hit ux unpaid Him deficiency In Uie rerenw tBUft be aupplled, and he is called upon lo p*y it from hie other resources The proposed mearare of relief thua ii|on him tbeee additional burden* tu tbe Increased price of hts (food* and the additional price he hi required to jmy If, b<iwever. the twewnoed duty should not exclude tbe imjs.rtation of the article, but *ituply ad ranee the price to a remunerating point to the domestic manufacturer, the effect upon the consumer would be to r< qnin him to ;>ay the additional price, not biily npon the foreign article, Mt also upon tbe domestic manufacture Tlie :< mouni of taxation put upon him for the benefit re* pecttvi ty of the treeMry and the domestic manufli< turer. will >le|s iid upon the relative proportion of the foreign ai d demeeur article be may consume. la no event can the Inc reared duty operate to the advantage and relief of tl e manufacturer eicept by a l iillt upending Injury to the con-umer The amount of benefit conferred and injury ?ustait'ed by the pr?>jsi*pd relief measure would depeint u | on the relative number of manufacturer* and consumers r.t the articles ui^m which tbe incre.ised duties were laid and aa the number of consumers esneed the number of manutactnri'rs. ?o would the injury sustained exceed the bencflt coi ferred. A policy an partial end unjust m its opi ratii rs uar iMd romniiiml Ihe approval of ihe country ticgardii ir the scggc?Son a* a |>roj*i*iiion to return to tbe protective sy *tcm . It i* obnoxious to all the objections which have l? . ti heretofore so forcibly and sncceaafully orti d against it. Tlie day baa |***ed In tbie country for increesing the restrictions upon commerce, and It i* lioi>o<i that the same remark w;ll soon be applicable to all other countries. We are accustom) d to look at the amount of our rxporta and ! ini|*irts a* evidences of our growing wealth To encour age commerce, enlarge n.* operations and extend its limits, have tv en reguqded by all portion- of our people as ob ject* worthy of tnctr united ? flort* One branch of com merce cannot long exist without the co operation of the Oilier. We cannot expect to furnish the world with our c tton. brcedituff*. tobacco, rice, and other production*, i:tilw* we are willing to receive in return tneir prod >tc lions. Tin r? must b? mnlnality betwi en nation* as be tweet Individuals If a policy i* to he sdopted by which the product*** Of other countries are to l?' excluded from ours, for ihe benefit of the duattallc producer Of sur-har ti< lea. Justice to other lntere-u< demand* that therp hould be adopt? d a jtolic y by which the producer* of our present r xjsirtashoeld also be furnished with a market for the fruits nf their industry To do thin Is Impracticable, not to do It would be nnjti- 1 Mow strangely Inconsistent is the doctrine of Ihe pro tccUosMa With the prnctlce of the government' We an nually expend InVgc ?ums of money in maintaining a navy, whose chief duty it is to give protei tion to en? nom merce In all parts of the world Appropriation* are aaked *n1 Ircely given to send our flag in search of new avenues for our Increasing trade. Tlie American officer who relume to hie conn try. to annmtnee the auec<s<sful termination of Ins mission. In having made new and fevor able c< mmerclal treatlne, Is hailed a* a public benefa-tor, and all classes unite in doing him honor In these de moestralions no one participate* more cordially than tbe protectionists If, upon the announcement of the dlacovery of a new country which promised a large and lucrative commercial Intercourse with our own, N should be aitnul taneoualv proponed to Impoae npon that commerce re strlctiottf tnat wfinld close our ports to the entry of Its productions, tinder the false theory of pretexting Imnte In dustry. What would be the Judgment Of an enlightened public opinion upon the wisdom of a people who Brnt ex jieuded their treasure in discovering new mnrte of trade, and uamoJiuHly <^ui?d thcBuch???lt the i>ri>t*Uv4 bo ? neflts to be derived from it f III the casn stipi*<sed, the |H*0|i0sili0a would be mure startling, but not uuire unrea ! sonable, tliaii when applied to our intercourse with those : countries between whom aud ourselves a commerce has gi own up from small beginning u> its present Urge di mensions. This bat. beeu ac< ompii^hed through a p>llcy inaugurated by our own government, ami which ha* com- I maudt-d the approval of eolighteLcd minds throughout the world. Other countries have, in tlieir legislation of late ' years, manifested, t>y reducing their duties upou import*, j a desire to co 0|>erate in the work of throwing off those shackles upon Uie freedom of commerce which false theories have placed upon It. It would present a strange spectacle if the United States should be the flrst to cum mence a retrograde movement The sentiment among our people in favor of free com merclal intercourse is manifested in their domestic as well as fareign policy. The strong feeling in the public mind for the extension of our territorial limits is generally at trlbuted to the desire for more land. That it operates to some extent to freely admitted; but such a cause fails in its application to those cases where the ac quisitlon ol new territory brings with it no proprietary title to the land. And ytt the public sentiment for ac quiring territory, where every loot of it is held by pri vate titles, is as decided aa In any othe* case. , It is ac counted for satisfactorily only upon the theory that, as our territorial limits are extended, we. enlarge the area of free trade, openiug new markets for the productions of our Industry, untiamraelled with those restraints which a restrictive international policv has imposed. It is an error to supjiose that the occasional revulsioba which have to seriously affected our manufacturing inter est is attributable to the want of a high protective system. Iu the policy which the government has adopted of allow ing many ot the riw materials used by them tc come in, either free of duty or at low duties In the incidental pro tection which a tariff laid for the purpose of rovenue gives i hem? iu the increasing consumption of their productions, brought about by the general prosperity of the country, i hey will find the motit ample cuoourageiuent that could reasonably be expected or demrvd. J'fco all oilier inter est# Ui Uie C6unlry, they suffer from the too frequent changes of the tariff, and from those fluctuations in busi ness which flow from causes wholly distinct and separate from the tariff question. What they need is steady prices, a sound currency and protection against the ruinous effects of expansions in the credit system From a free and un restricted commerce with the inUrest in our country would derive a more certain and permanent bene fit than the manufacturers. Rejecting the proposition to raise the tariff as a measure of relief, and looking to the probable receipts aiid expen ditures for the present and next years, no change is re commended iu the act of March 3, 1857, at this time The present tariff is not regarded as perfect ? far from it. It has, however, been iu operation less than six month* ? a length of time too short to judge of its workings, even un der the most favorable circumstances. This fact, in con Becliou w ltli the revulsion iu business, makes it wholly impracticable to form a correct judgment upon its merits There are changes which should be made as socn as it can be done with propriety. A return to the decimal division in the rates of duties, a more accurate classiflra tion of various articles, and other amendments, wjuld greatly improve the law, even if it should be found by experience unnecessary to make any radical change in It* general provisions. The propriety of postiwniug any ac tion upou the subject, until an opportunity ha* beon offered of testing its general merits, seems to admit of no ser>ouj aouhi. Returning l? the question of relief which is expected rom the govern men t, it becomes necessary to inquire uto the cnufce ol the present revulsion, as preliminary to the consideration of a proper remely for it. Public opi nion generally holda the banks responsible for all our em bavrafftnents. The true cause is to be found in the uudue expansion of the credit system. The banks constitute an Important part or that system; hut there are other ele ments entering into It, which, equally with the question of the banks, demand public consideration. Credit, confined to its legitimate functions, is the rcpre tentative of capital, ami when used wilt in that limit, may extend and invigorate trade and business; when it ceases to be such representative,:! stimulates over trading, excites speculation, and introduces an unbound stale of things in the business of the country. It is this undue ex|*nsion of credit w hich has brought the country to it* present embar rassments. Tbe extension of hank credit- and the over issue of bank notes, ia ? part, and a very important part, 1 of this undue expansion. A Spirit of speculation being | created, a demand is made upon the banks for the u.?e of their credit. and yielding U> the pressure, they rcfqiond by the increased issue of their note? and by enlarging their discounts. The extent to which the banks have en'arged their credit beyond iu proper litniw is not to be measured alone by the amount of their circulation. At the time the New \ ork city banks sus|H>nded specie payment* iu <>cio her, they reported a larger amount of s|>ccie In their vaults than their totes in circulatkxi. ami, notwithstanding this tact, Ibey were unable to meet the demands ol their ere ditors promptly with specie, owing to their credit opera lions under their deinwit system. Having extended the r own credit, and enabled their customers to do the satm' they were unpre|>ared Tor the revulsion which came u|s>u them. If it be true that ourembarra.-.-menb' have been oc casmned by the cause here assigned, we mast look bei ond the action of tlie banks, to the operations of other corpora tionsas well asindiriduals, to fathom the entire c ause of our difficulties. The limits cl this report will not ndmit of a detailed examination of this subject, but a soli tary illustration will preseut the subject in its proper light. In answer to a circular letter addressed to the va rions railroad cor|>oral ions of the country, the informattoo contained m table No. U has been obtained It api*>ais from this statement that the capital of these companies amounts to $4U1 .436,661, their indebtcdnisw to $417,243, W4. Tlie annual interest iijsm the latter sum is $2f>,UW 303. their annual income was $48,406,4(18. It is proper here to remark, that this statement ia not entirely accurate:some ol the companies failed to respond to the circular of the department, and in such cases the returns made by them during the preceding year, 'and contained in the last report ol my predecessor, have been Used iu the pre|>aration of the table Whilst it cannot, therefore, be considered as perfectly accurate, it approxi mates it sufficiently near for tlie illustration of my argu ment It exhibits the extent to which this class of oorpo rations has contributed to that extent of expansion of cre dit which is pro|N-rly chargeable w.tii the recent revul sion. It is due to a large class of our railroad < ompanles to state that this excessive indebtedness W not equally dis ' tributed among them. Some have conducted Iht^ busi III -- ? lib the Utmost propriety and ?ne< , w Inlst others I have SO tar exceeded tho-e limits as to present the Tore 1 going aggregate result of railroad opcrats>n* in the United Mates. The undue expansion of credit which stimulated in some I an eager desire to borrow, and in others a willing disposi i lion to lend, which engendered schemes of improvident speculation, leading to rapid I! ictuations in prices and I habits of extravagance. I regard as the principal cause for j the embarrassment existing iu the com inert e of the coun try The only efficient remedy for such evils is to be found in a return to the prudent courses at*l steady hah U which, for a time, were unhappily laid a.<ide ThH government could do but little toward extricating mdivid al.?. corporations or communities from the pernicious con sequences of their extravagant eiiiendituriw or ill con ceived enterprises When credit luis I extended so r?r beyond thi? bounds of legitimate confl. enee as to ere ate s revulsion in trade, oc< astern ng a fall o: price- an t a destruction of private credit, a s|>ee l)r adjustment of the relattons between creditor and debtor by liquidation and settletni nt Is the surest tinsie for the restoration Ol the equilibrium Wild and chimerical speculations will thus have their ' termination, industry will be better enabb d t., nuilise iu sober expectations, snd Uie substantial interests of societj I being relieved from the noxious influence of excitement rye ruction and disorder, will resume their iccu- iome.| ,.n' n communicating a henlthti W. the business of the country Tlie prof* r agency ol the i government in such a case is t > remove whatever im *?i, m< nt may <\ t to the ? rts? of the i , | j'ty . and to extract from the experience they have gained leseoni to be embodied Id wholesome and W?l| cobsi lered laws to prevent the recurrence ot the evil ^ ts ev ident that the great moneyed corpo rations created under the laws of the Htat?* have had a controlling influence in the undue expnnekm of prtrati . r- in in mm of U* rmm ike In j gislation in res|iect to the-,. i? stringent, ami cmh>vti<>* msny of the safeguard* t|Mi . \|- i.u. ... their regulation Rat it will not be denied that till* legislation has been nugatory. The state authorities have almvtv manifested ; *n eager di?p<~ition to relieve them from the penalties they have incurred, and to dispense. n- far *? they were able with the |HTformance of the obligations they had ex from them wh-n they ?..rc ornnr(.. | nil, I, M I t<een done, in some ca<es. without an inquiry into their condition or management, or iheir capacitv to resume their position as solvent m-titutioii". i* even to proto. t thee, m muruty from a depreciated p iper currency In my Judgment, the |H-rtod has arrived f.?r tv*,gre?s to employ the powers conferred by the Constitution Ulsin it to mitigste the prevent evil, snd io prevent a cat* irophe of a similar kind in future: and fi>r this purpose a cnmiMil sory bankrupt law. to include two rla-wea of cor|s>rntions and companies, Is necessary It should be a law for the protection of creditors, ins the relief of debtor* to pre rent improper credit not to |?y improvident debts com pulfoiy not voluntary Tlie t of such a law would be felt more m its restraining Influence than m its practical execution. I do not recommend a law similar to either of th<-e which have heretofore existed, and were abandoned after a short and unsttis fa(tory experience. The first was adored the 4th April, 1*00 and was repealed the IWh I?ert mber, iao8. It pro' Tided for a compulsory process of bankruptcy against those merehants snd commission sgents, st the suit of creditors whose insolvency h?d tx'eome manifest by cer tain overt acts of frsud or defalcation, and eft cted a col lection and distribution of the estate of the bat?ru|>t tlironirh tlie jndii ml tribcn.ils ct the l'i t, if Mate* which was followed by his dis? Imrge from the debts VI- estate had not satisfied Tlie second a< t was passed 12th August, 1M1 . and was repealed the .td March, 1*1.7 Thi- act. be sides the compulsory system of the art of i?no, contained a system of i?nkru|<tcy. to i>e applied < i in insolvent debtor, of any class or profession, and to re suit in his relief from his debts and engagements, uimn the surrender of his property and compliance with other renditions of the set Tlie re are grave objections to the present adopt sm of tlie system" developed In these stntut<? The voluntary feature of the act of 1M1 is rejected as unwise, un Just and unnecessary. It was this provision which rendered that law so Justly odious in t ho public mind, 'l ropose to ext. ml th*pro\ ion- even of a com pulsory I ankrnpt law to the numerous ca->es covered by tot I *41 It is better to leave to the o|M-rilion ..t the Insolvent and brnkrupt laws of the several ftates all esses wbw h de not, from their msgnitnde snd lm|*.rUni e, sfleif the genersl commercial ami hu-"lnees lntere-ta of the country It ta believed that the power of the States is ample to meet fu< h cases and the propriety and policy of exercising sik-Ii powers will, sooner or later, be devel oped by the lessons of hitter experience The two cases which it is now proposed to bring under the operation of a compWsory hank nipt inw nre Mnks and railroad corporations Ttv* immense capital employed by these companies, IhHT rotilrolBng power and influence in the commercial and h?t sinesf operations of the country, lhe?r <Hs|s?sltt..n to s? patid snd enlarge their credit, and the rnlnous efTects pro duped hy their operations when carried beyond legitimate hounds. imj*?e iij?>n the government the dntv if pre- I Ing by every con^itutional means in their power, for Ihn ssfe, prefer snd legitimate condm t of such corporations The facts which are presented in other portion? of this re pwt, developing the rendition and operations of these two clas?ea,of i orporatlons, wtll fully Justify the p> 1 recommended. n?e object in not to injure them, Imt to I'rotwt Uw ?vmn?uiiiij, Pm *Ul to rettUalu their operation* within |>r<?|>*-r liuiitM. ami thereby injure to the country nil the benefits Uii-y are capable or confer, nut;, without the atiboiupunyiiig hiiztrdH of wild specula tions and ruinous revulsions. In clotting my obser* ul ions on tl>U subject, it is proper to state that these recommendations are not formed in any spirit ot hostility to theee corporation* and companies, nor am 1 insensible of their vast importance in the cma niorcial system of the United Stated. Nor have I any dia jMibition to denounce any punishment, nor to subject thi-ai to any loss, in the preseut conjunction of their affairs. My object is to place them in subjection to wholesome laws, so that, while the benefit* they yield to the community may be preserved, their excesses or errors will be coun teracted or prevented. The details of auy act, formed on the principle I hurt suggested, should bt> adopted after an euluiged inquiry into their condition, and should embody the most libera provisions for the security of the rights of the persons in terested in them. A reasonable time should also be al lowed to the corporations which are now in default to re establish themselves before this ast becomes operative. During this financial crisis and general derangement of the currency, the collection and disbursement of the pub lic revenue nave proceeded without loss or embarrass ment. The operations of the independent treasury sya tem, in ordinary times, had been found by experienos eminently succeaolul. The danger of loss from unfaithfti and inefficient officers, the expense of conducting its ope rations without the intervention of bank agencies, its dele terious effects upon commercial progress and the gonerM bus mess of the couti'rr ? all of which was apprehended by the opponent.-* of the measure at the time of its adop tion?have been demonstrated to be unfounded. It only remained to encounter a commercial crisis like the pre sent to vindicate the justice and wisdom of the policy against all cause of complaint or apprehension. A brief comparison of the operations of the Treasury department during the suspension of 1837 and the present time wl place the subject before the public mind in the most satis factory manner. Ou the 30th June, 1837, immediately ?after the general suspension, the deposit banks held to tho credit of the Treasurer of the United States, and subject to his draft, the sum of $24,994,158 37? a larger amount in proportion i to the receipts and expenditures of the government, than there was in the treasury nt the time of the suspension by the banks the present year. The funds of tbe government being then under the control of the bank*, and they either unwilling or unable to pay, the govern ment was placed In the anomalous condition of having an 1 overflowing treasury, which it was seeking to deplete by 1 distribution or dei>oslts with tbe States, and yet uwiblc te meet its most ordinary obligations. It had either to make its payments and de?|K>sit* iu the depredated currency I which suspended banks forced upon the country, or post pone their pax rncnts until, from its credit or othor ordina ry resources, it could command the means for that pur pose. It Is unnecessary to detail the expedients to whioh the government was forced to resort at that time. The embarrassment consequent upon this state of things trM be remembered by those who participated iji the scenon of that day. It will be realised by every one from thto brief presentation of it. The effort of the government to withdraw its deposits and get control of its funds was folk as an additional blow aimed at the bauks. Every dollar which could thus be drawn from the vaults of the banlcn diminished to that extent their abili'y to afford relief te their customers. Their loans had to !)'? contracted, and the demand made by them upon their debtors for settle ment Increased the pressure already felt in the money market, and thereby added to the general panic and want of confidence, which are the usual atteudauta of a monetary crisis. The government was not only embarraased for the want of its money, but in the effort to obtain it became ob noxious to the charge of adding to the general digress, which man\ persons thought it w is its duty te relieve. To avoid a recurrence of these difficulties, the plan of separating the government from all connection w ith the bituks was suggested, and iu lsio was perma nently adopted. The result Is before the country in the occurrences of the last few weeks. Tae banks, as in ! 1837, have suspended -iieclc payments, but the analogy I ceases there, so far as tue opcr.-.tiftb? 0l the Tf?*a'ii"y de partment iu it diaburt emf nts are coneertieu. The ge | vernment bas it- money in the hands of its own rtfilcera. and in the only currency known to the constitution. It has met every liability without embarrassment. It ha* | resorted to no ex|?dient io meet the claims of its credi 1 tors, but with promptness pays each ono u|ion prcsenta j tion. If the contrast between tbe o|*ration* of 1837 ami , the present Imie stopped here, it would be enough to via , dicate the policy of tho lnde|>cudeut treasury system; but it docs not. The most remarkable feature distinguish I ing the two |*riodn has reference to tlie effect upon ths commercial and geneial business interest of the country pnxluccd by the present operati 'tin of the in<le|>endcut treasury. It is the relief wb<ch ha.- been afforded to the 1 money market by tbe disbursements 111 specieof the gene ' ral government. lu IK'." tlie demand of the government I for its funds, with which to meet .U obligations, weaken I sd the banks, crippled their resources and added to the general panic and pressure. In 1*67, the disbursements by the government of iu tucn, which it kept in its own vault.- , supplied the banks with specie, strengthened their hands, and would thus have enabled them to afford relief when it was so much needed, If thev had been in n condition to do it. Their inability or unwilling liens to do so, under Mich favorable circuui stance*, only shows how much worse thn Anbarrassment would have been if the government was now demanding paymeut from them, instead of fur n idling them the means of relief. At the time, and subsequent to the passage of the Inde pendent Trea.-ury act of 1H4?, the greatest apprehension wax expressed, and no doubt felt, by its opponents, of ths effect of such a policy. Tlie accumulation of specie in the vaults of the government, the distress it would occasiaa in tlie collection of the public dues In specie, and particu larly its o]*eratiinis in a monetary crisis, were regarded m rertain sources of inevitable evil. The idea that it would afford relief at such a time w as looked upon as will and 1 visionsry by it? opponent", and not very confidently anti i ci|?ated by its friends. Tlie success 01 the policy should I be as gratify ing as it w as unexpected to those who resisted its adoption w it It so much teal and ability. Whilst the nmnmitl of the ay-tern apprehended from ; it tlie most ruinous effects ti|*m the banks and the curren cy , i Is fne teLs looked confidently to its operation fur a wholMOBie check U|x>n oxe< s.ive issues by the banks Kx perience has show u that the apprehension* of the on* were groundless, snd the|iations ot the others were well founded, to a limited extent The increase of the cir culation of the banks at the time they were used as puh llc de|**itories, compaiedwith their circulation at other periods, and particularly since the ado|*lon of the mde liendent treasury system, affords the moat salnitaciory evidence of the restraining influence of the system u|>oa the tendency of the bauks t<> < xtend their credit and in crease their Issues It is impossible to estimate with accura cy the extent of this n tiueu. e There are so mauy elcnieuta which euler Into the tlnaiu ia< < pe rations Of a groat and extended country like ours, that no man can pretend u? analyre the many catiscs nt w< rk with a view of aasigmiq; to each its m pnrate and legitimate efl. ot. No one doubts, however, that the cffect of collecting the public revenue* iu the notes of the banks, and depositing the funds whew collected with them, would be an extension of the credit of tin bank , and an addition to tbeir circulation propor tioned to this increased demand tor the use of their not<m. To the extent that this tUliiulant it credit has been with held, to that extent, certainly, ht? tbe re-training in fluence of tbe Independent treasury upon exoe**tvs bank Issues been felt. Tlie coUci'tkin iinnually of about 170.000,000 in the notes of bank*, and ? large a nount at all time* remaining in their vnulis as deposits, wiwld afford facilities for extending their credit, winch the past history of these institutions slmsr they would not hesiUM tii avail themselves of. If such a sy-tcin had prevailed for the last ten years, the strong probabilities are that the present criwi W'<i .d have been tncrh sooner reached, and the effect would have Iteen more Hi i trim i . tu raits* niore extended . slid With fewer sources of relief. If the tx'iietti ial eiT. < ts of the Independent treasury systim in restrnunng the hanks from extending their ereilits have not be? ii over estimated, snd it Is confidently believed that they have not, it is respTtiully submitted to public eonslderal w>n whether the adoption of the asm* principle by the respective State governments would not complete the work of reform and prevention sgainst bank suspensions, *e h.ipily inaugurated snd sucecwfully practis I by the general gov I em men t The v arwms Slate p vernment now collect an nually about $f?o ,(**). rs*t Tins amount is collected mainly in bank notes, and, when not immediately disbursed , st cither kept iti the lorm of batik notes in the vaults of the Plate treasuries . or dr|*>*ited directly with the banks. 1 let the several State* collect their revenues m specie, and tb?nce is withdrawn from the banks a stimulant to over banking to the extent of the facilities now afforded them by this use ef their notes. The remark - already made in connection with th* inde pendent treasury of the general government are here ap plicable to the eib et tluit wi uld tie produced by such s pe ls y The colled on and disbursement lo s|>eci? of tbe rev?mues of both the general and Plate government*, not to speak of tie various cttv , town and connty corporations, would constitute such a demand for ipecic, at all times, an to rcqnirc its retention in the country Tin- banks, know ing that they wi re liable to furnish their note holders wita this specie, would regulate tbeir l?sues accordingly, and would con?e<|ucnt!y be restrained from > xcesslve over Issues, whteh render stis|>ensio?i of specie |?yments by them Inevitable when a crisis comes, which requires th>nx to do whst thev ought always to be ready to da ? pay their debts Tne apprehension thst sn< h a requirement by the Stale governments would operate oppressively upon the |s>opte. wo'.M prove as unfounded as it did In thn case of the general government. ??iatc taxes are now paid, most generally, in bank note* These note* profess to be the representatives of S|>ei ie If they are, the tax payer could eaeily convert them into specie. If they are not, then the y cttgM not to be received as such, either by the State governments or the people. Tbe very object of ihe law is to guard against the latter renting) ncy. and thu? to secure to tl.e country a sound proper currency, always convertible Into spcrte' Indsr the operation of an independent treasury system, adopted by ea< h of the State ? there would be no difficulty In retaining In the country a sufficient amount of specie, not only for the purpose* of the government, but also4? secure a sound pa|>er currency As long, however, a* the present system lasts, this result cannot be looked for. <>ne would suppnse that the larg" inerea?e of gold In the last few vears would have enabled the banks to have pro letted themselves sitsin-t the necessity of suspending SpMflS payments Until should have been the case, but il liai- not l>een, and will not be, until SOtBe policy, such as m here recommendeil, Is a loptcd. which will f om|K>l them ts keep sufficient Specie in their vault* to meet their issues. Smce the discovery of gold in filiiornia In 1M0, there has I" en coined at the mints of the t'nlted Stales the sum of, and even a larger amount ha* been a>tded from that source u the ^old ot the world. At that time it was estimated tltst there was In the 1'nited stale* 9120,000 000 of spci ie. t?f that amount the banks held 913,000.000; upon which they issued a c reation of 9111,748,415. Tneir doimsits at that time amounted to 9"1,I79, 033 it is e-timat< d thst there is now In the Catted mate* 9W0,. 000,000 of specie, and ef this sum the bauks have 9*1, too.noo. upon which they have toned a circulation of 9214.77W.S22 and their deposits have tirreased to 92oO .361 ,3V2. H will be -sen from this statemool that, with ihe Increased <|wantity of specie In the country, tit* banks have only increased their s|#cte from 943,msi.000 to 900,000 ooo, wli?l t they have ta< sensed tlietr rirrul% tton 'rem *114,743,419 to t21?,77?.*22 Ne one supposen that Stirh would have been the < ar? if, during Ihts period, the operats.ns of the various state governments bad b? en <ond?rted upon the principles ?/ the in<1e|>eod. enl tr asury svsb m It is ccnMesUy believed that site* a policy would have saved the country from the present btnk suspension. If at the lime the general government was m iku g Its disbursements m specte at the commence. ment of the pre-ienl cruis, the same operation hsid gmuf f(vtA (he vtffr^ut Sutc Uooturies, tUe effoot