Newspaper of The New York Herald, December 4, 1866, Page 4

Newspaper of The New York Herald dated December 4, 1866 Page 4
Text content (automatically generated)

mltted U areomalate ant u should reeck ?imt proportion to the oktaodlng United Statas note* that. In former days, the no tB the vnulu of well man ?tied banking Institutions blamed to their Immediate liabilities, ipeole payment* tgbt be resumed without a reduction of the currenov eQaiibout regard to the oon dltiou of trade between the \u?xl Slate* *bd other un it on*. am- or bold re.>> tiii tksasPRT. "~ter thoee oircumstauie* feeling sensible of tie great respouoatltiy of tits potion, the Secretary hu deemed it safer ?a better lottbe country to act ac cording to the ilieraua of bi* tjB Judgment, oarefnly regarding the oouditiob if the iivkel* and of theTreast ry, rather than to take hi* dlrhion Irom tboae who, howeter Intelligent ana etjle, wet under no official obi gatlone to the government lAihi be lass accuraldy adv ated in regard to the ?(Vual T^teotiu fln.ncal ?ffaiTH He bar regarded a strajy market M of more m ponanoe to the people thuu thg, ^ .few million of dollar* lb the way of micro*, fed observation aid experience bare assured him yw. tB ora#r o secure this steadiness In a% considerable de gree. while bos nees ia conduy,^ on a p?|fr basts, there must be power In tbe Trev.? prevent? ?? ceasful combinations to bring ahoy flU(.iuations ?r purely speculative purposes. He has a*, W(.n clea m bis convict ions that specla pay menu wa not to * re restored by an accumulation of oola in lbs Trtuuui# 10 be pa d out at n future day In tbe redemptus 0f g?v?rn rnent obligations; but rather by a qulckenet tndutry, Increased production, and lower prices, which can atono malte me United state* what tbey o?gt to be?a creditor and not a debtor nation. These view ex plain the course that has been pursued with the gold which, during his administration of tbe Depsrimonl has come Into the Treasury. He hss permitted It 0 ac cumulate when the uee or the sale of 11 was not recs oary lor paying gerernment obligations, or to prreat commercial pantos, or successful combinations spins* the national credit; and he has sold wbanerer **** to supply tha Treasury with rif off financial crises, or to save ??? j of toe oountry, as far as J*c unnecessary sad damaging decree*"0" 1 he alone is responsible. If, In cond0""* m^r^m tlim has been shown, or If tho of any jMrttealsr class bare boon especially nr??i 11 has boon without his knowledge and in ??olatlor*' bta> ntroeUoos. He lias not tho slightest reason ( Suppose, however, that they bare not been conducts honestly, (hiriy andjud ciously. mnuTun or in* ccrrsxct?men tux orT siahdaro or TiLca It mar be hardly necessary for the Sec"*1*1? to remark that bis opinions have undergone no c**n8" 'D regard to sag importance of a restoration of the'P"018 standard or tbe i??ai)g necessary to ellect It. Heif'ui however, that be has n*( been understood as eo^ltaining the opinion that a reduce.,,, 0| tbe currency woulf of itself necessarily bring about sp?.te payments, althfiuyh the chief and essential means to ??*ct m? desire! result. He regards a redundant legal tender currency xs tho prime cause of our financial difficulties, and a cgrtallment thereof In dispensable to an increase of laior and a reduction of prioes, to an augmentation or exports and a diminution of Imports, wnlch alone will pltpo the trnde between the United Slates and other nalionspn an equal and satisfac tory footing. Y In order tbat his views on this hdnt may not be mls apprehended, tbe Secretary iruBUXihal ha will be par doned for referring (even at a risk >( a repetition of what he has horeioiore presented In othoi communications to Congress and in other ways to tbe country) to certain laws, well understood, but too often disregarded, which regulate International trade and oobtrq the movements of ooln. We bave travelled so far frorx the specie stand ard, and are bo blinded in regard to our actual financial condition and our relations with other countries, by an infla'ed and Irredeemable currency, mndby tbe exporta tion of our securities. that frequent recur-enae to Inexo rable commercial ana ficancial laws is necessary. Ever since trade commenced between the people of different Rations gold and silver have been the only re liable and recognized measure of value and medium of exchanges. While in their Internal trade other repre sentatives of value have, to a greater or leas erent, been used oy all natlans, money made or these metals has been pronounced by the judgment of the world the only ourreuoy pos-ewlDg the attributes necessary for a uni form and universal circulating medium. From this Judg ment there is no appeal. Not only Is it tha tris and universally acknowledged measure of value and medium of exchanges, but by Its regulating flow It indicaus the condition ana the resubs of trade between dlfbrent nations Water does not more naturally seek a level than does specie flow from one nation to another for the payment of balancex created by an unequal exchaiqje of commodities. Trade between nations is generally and obiafly conducted by an exchange of their productions; but as these exchangee are never exactly equal, .here are ooostnatly occurring balances to be paid in to me thing else, and In their payment nothing bat ths pre cious tuotnls It a legal tender. It Is this necessity for paying balances la coin which regulates the trade of na tions. It Is this great commercial and financial law which makes tbe aatioa that mils more than It bays the creditor nation, and tbe nation that buys more tban it ?ells the debtor nation, and recognises no medium but ooln In the payment of balances, that daterralnes the question of the anility of tbe United States to resume nod maintain specie payment*. If the balance Is in oar fever, or If not In our favor. If the balance against us is so small that it can be paid without an exhausting drain upon our precious metals, speote payments can at onco be resumed. Such, unfortunately, Is not the fact. Not withstanding our heavy exports during the past year (that of cotton having been 650,672,830 pounds, or nearly 1,000,000 bales, a quantity greater than our entire orop of the present year, the United States are largely a debtor to Europe ?xroRts or arson?trade bxlxscrs laruilt aqaibst ths ovrrxD stars. A few facts will put us right on tbls point Between the year IMS, when gold was first discovered In Califor nta, and the 1st of July, 1800. the product of the gold and sliver mines of the United Slates was abont $1,100,000,000, nearly all of which has gone Into tbs world's general stock; and it Is not probnbto that tbs amount of gold and stiver new la ths United States is very much larger than It was eighteen years ago. During tbs Oseal yonr ending July SO, 1800, the United States Imported Foreign merchandise free of duty $58,801,750 Foreign merchandise paying duty 808,608,051 Total $427.300,110 Of foreign MtcbullN there *ureexported ? Ho* sf duly $1,007,117 Dutiable 0,434,203 Total, nixed gold end currency ralue.. $11,341,420 Whab, reduced to currency value, wax equal to 10,203,233 Total act Import* foreign merchandise, rained In geld $417,044,377 Imports, specie. 10,320.100 or erhieh there was re-exported 3,400,007 Total net imports, foreign merchandise and $423,073,004 During thu flsoal veer ending June 90, 1440, the United States exported domes tic mer bandies, currency ralue, $444, ? 044,003,reduced to gold ralue. 333,322,046 Spools exported 42,043,374 Total domes lie exports, valued In gold., 416,003,439 Apparent balance of Hade, valued In gold. $8,000,377 But these drums, taken from the reports or the eas tern houses do not present the whole truth. For many wean there has been a systematic under valuation or foreign merchandise Imported Into tbe United Staler, and large amoums have beea amugsled tato tbr country along our extended aeaooaete and fron tiers To mako up for under valuations and smuggling, and lor coat df transportation paid to foreign shipowner*, twenty p> r cent el least should be added to the imiiorta, which would make the balance for tbe past Ctar against tbe United Statee nearly $100,0U0.00O. It evident that thn balances have been largely against tbe I nl ed Hia'ee lor some years past, whatever may have b rn tbe Oust im House returns On no other ground can the fact ba accounted for that a very large amount of American bonds la now bold la klurope, which are estimated ax follows, to wit:? Halted Mutes bond* $330,000,000 Blate and municipal bonds 160,000,Onti Bsilruad and other stocks and bonds 100 000 000 Total $400,000,000 I'^^vMent, from those figures, that the halauce* ere agaib^^y sad, chiefly by the exportation of our gov. aramaut ".ends, are being tempirartly and impruvl deatly arranged; temporarily, because e large portion of these bonds have been bought on speculation, and will ha likely to bo returned whenever financial troubles in the ooualrtea In whkjh they ere bold shall make It neces nary for the holders to realise upon them, or whenever satisfactory profit* earn be made by returning them, *hMth will he when they nearly approach their par value la coin; Improvldeatly, because tbey ere being pur chased at vary low prions, and because their exportation l very low prices, and because their exportation ? Imports, and thus cripples home Industry Nothing I* mora certain than the fact that there can be BO permanent resumption of apale pay menu in the United Hieiee until the balances between them sad other nations shall be mad* easy by poctailen of commodities, Including the products 0< the mines, equal at least to our Importation*, until tpravtstoa shell be mad* for returning hoods, or for preventing their return el nopropiiioue limes. Tble slat* of things, II is conceived, cannot bo e(Tectad with out a change in oar Ononeml policy. none ovils or a neraetureo ccnanftrr. There being but one universally rooegnlsod measure of ralue, sad that being a vahiaia luelf. rooting what it repreaenu la tbe labor which la required to obtain It, 4he nation that adopts, either from choice or temporary a < a?tly, aa Inferior standard, r atal** the flasocial law of (he world, and inevitably suffers for Ha violation An Irredeemable, sad roanequonlly depreciated cur leeev, dtlvva out of circulation the currency superior tc Hwlf. sad If made by lew a legal lender, while Ita real vaibe la not thereby eahaaoad. It becomes e false and demorai ring standard, undar the InHueno.-s of which proea advenes in a ratio dieproportioned area In Ita actual depreciation. Very different from thta I* that rlaal, healthy and general advaar* of priooa which the effict of tbr iucreaae of the precious MStaiS. The coin which Is obtained In lb* gold and Silver producing dietrlrta, although H Aral agte ta prices within snob dutnru. following tho course of trade, and In efestlieeo* to its laws, anon finds Ita way Is other cousin**, sod becomes port of the common stock of tbe wen, which, ln< reaeng in amount by tbe regular ?redMl of the mlnse, and In activity by the growing demands of commerce, advance* the price of labor and MS* throughout the commercial world Thus, the ?fife* American, Australian and Ruaaiaa mines prices in thstr respective looalllles, E37S But tfe* snsrsllsn of trade em* dieiribuie# mess pro dnota, M< Ifelsiprt** everywhere frnl* and respond* to tfe* lnorwass9f tfe* univsraai meaaara of ralue All the I, hlliSSSI slow, per man-at sad univsraai , of vaiw*) la the oeeetry la whirH? is are Juoed than la other ecoaertM* couatriea, or rather wVeu It wtii mirahas* mora la stksr oountrisa adding interest, the oost of traowirietlrs duties u4 otoec urMtf Z VZt it it twqulabd to-pa# balances to etoer Mum, H flow* to them by a U?u regular and M oertaln aa gravitation. Hence, although the precioas metals are prodooed ia considerable quantities 4o hi a tow countries, they affect the prices in all. Not so with a paper currency, which te local in Us use and la its influence. Itoa4een Um, when convertible, are admitted; for, If con vertible although It ewella the volume of currency, It raiher incresees enterprise than prions. Its converti bility prevents expansioa, while lie larger volume fives impetus to trade end creates creator demand for labor But when a paper currency is an incon vertible currencv, and especially when, being so, it is made by the sovereign power a legal tender, It becomes prolific of mischief. Then epeoie tiecumee demonetized, and trade it uncertain "* results, because the basis te fluctuation* *wen prices ad vance as the volume of curnarw mcraaeen, hod require ss they advance furth- addltlona to the circulating medium; then w?undloa bsosmas rito, and "the tow are enrich*-' ??*?*" "peine nf the many," then industry | itecl>-toid eitravaganon to wanton; then, with a I uiiuinuiioo of products, and aensiaaeptly ef exports, there I- aa Increaee of Imports, and higher tariffs are required on account of the general ex pension, to which tbay, in tbetr torn, give new eUmnlue and support, while the proteouoa intended to be given by them to home industry to in n great measure rendered mepera tive by the expansion. This, notwithstanding onr large revenues and the prosperity Of many branches ef In dustry, is substantially the coed Pisa of thn Untied stsiee, and the important question arioso. That are the remedies r TUB BBMBDIM. with entire deferenon to Congress, the Secretory sug gests that they are to be found Ant?In own polling the national banks to redeem their notes at the AtlanUo cities, or, what would bo hot ter. st a single oily. Seosad isaamtotfsMuOafehncunaaaytotbenmnnwt; required tor legMtomtoogd hMKhfui tndoi s cental rorlstoe ef thn tonff, tor the nur poeaefhareso?iaglt-wtth oar internal taxae-remov lag the oppressive burdens now imposed upon certain breaches of Industry, and relieving altogether, or grasttly relieving, raw materials from taxes, in order that the pmduot of labor may ho eohansifl and produotlon nod exportation increased. fourth?In the tome ef bends, payable ta net over twenty yean aad bearing tatrrsst at too rate of not over five par cent, payable in England or (>ermany, to an UMuntsufltotontto absorb too au percent bands now held in Europe, and to meet the demand there for actual and permanent Investment; and? AftK la the rehabilitation of toe Southern States. First The utility of compelling national baaka to re deem their notes at commercial centres, as well as at their own counters, Is apparent. Th? object of Congress, in the establishment of tbe national banking aystem, was to furnish the people with a solvent currency of uniform value throughout tbe United Slates. Tbe sol vency of ibe notes of tbe national banks to secured by a deposit of bonds with the Treasurer at Washington; but, as the banks are scattered throughout ihe country, and many of them are in pieces difficult nf access, a redemp tion of their notes at their respective counters is not all that la required to make tbem through out the United States a par ciroulation. It is |true that the notes of all national banks are receivable for all public dues, except duties upon Imports, and must be paid bT tbe Treasurer in case tbe banka which Iss led ere unable to redeem them, but It will not be claimed that the notes of banks, although perfectly solvent, but situated In Interior towns, are prac tically as valuable as the notes of banks in the seaboard oi'les. It may be urged that to compel remote banks thus to redeem would be a hardship, but aa very few well managed banklDg institutions in the United States fail to seep accounts and balances in some of the Atlantic elites, this hardship would be found upon trial to be Imavinary rather than real. But If It ahonld be a hard ship it would be a necessary one, and the internets of the banks must bend to the Interests of the people Be sides, without such redemption there will be practloallr none at all, at least until sp ele payments are resumed, and when there ere no redemptions there is always a constant tendency to Inflation and illeglilmato banking Tha frequent and regular return of their notes to needed to keep the b leinese of the banka In a healthy condition, and thus invariably proves no less advantageous to the stockholders than to the public. Unless the banks shall be compelled to redeem In United States notes many of them will neither lend their Infloence in favor of a re turn to speolo payments nor be prepared for them when without their agency specie payments shall be brought about. If the determination of the question was left to tbe Secretary all the books would be required to redeem in New York, tbe acknowledged commercial metropolis of the Union. The domination or that city as the re deeming point for alt national banks would not only give ab-olute uniformity to their circulation, but would so faollitats the assorting and returning of notes that practical and general redemption would be en forced. It is certain that this will not be done under the exisitag provisions of the law; It is not ? erialn tbat it will be, niriaas all banks shall be com pelled to redeem at a single point. This might be ob jected to by the banks hi other Atlantic cities on the ground tbat It would aggrandise New York at their ex pense. Bet New York to already the financial and com mercial emporium of tha Union. Host of the interior banks keep the*- ohief l stances in that city, because they are more available and valuable there than elan wh?re and In compelling all the hanks to redeem at the metropoli- of trdle, congress would be onlv yielding to aa unwritten bat controlling law to which statutes should conform. The course of trade compels, snd will compel, those iwllooal basks whose business to based upon the products of the country (and these must always coast'tute a mswrity) to keep their chief balances in New York, wh?law they redeem there or not. If ex clianges between that city aad other cities should be In faverof the latter, the redemption by tbetr banka would be made at their own counters, and no aecrlQce hot that of local pride would be involved In their being required by law to redeem at the common centre. When New Yofk shall bo a debtor city to Boston and Philadelphia the notes of tbe Boston end Philadel phia banks wit I go home, and net to New York for pay ment What Is required to aa active regular aad actual redemption of toe notes of aN the national bank a. To effect this leeOI pride should bo oacrlfloed, and minor In terests should be disregarded. What Is said upon this subject by the acting Comptroller ef toe Currency to fully endorsed. The second remedy suggested Is a curtailment of the currency. too at imroxaa trownrnemm aa a ncaxaxxirr oiarvtanox. The views of tos Mcretary upon the question ot a re d nation of too wniswty hove been so frequently ex pressed tbat It Is only neoeaary now to oobslder whether the curtailment should be of the United States notes or of the aetes of the national banka. Oa this subject his opinions bare endergooe no change since be cntnmonSeated them In his reports as Oorap t roller of too Otrrancy. Banks ef iaeue, organized tinder Bute laws, have been in existence ever since the t urination of tbe government. By the decisions of tbe highest trlbonatoof the country their constitutionality haa been affirmed, and tbey have become so tnterw iven with the business of the country, and suoh large invest ments have been made la them, that their destruction wonld Involve ooaaequencee of a very serious character. Whether or not the conniry would hove been more pros porous without them? whether tlie stimulus tbev have given to enterprise sod the facilities tbev have extended to trade have or have not been counterbalanced by the artificial prices which they have created, and tbe actual losses which lhe*people hare sustained bv the crises they bsve occasioned, and by their suspensions and fail ures?It Is too late to consider. When the National Currency act was pursed by ('-engross, State banks were in full operation, and not lose than four hundred millions of dollars ware Invested In them as capital. In some States, by Judicious legislation and careful management, they had afforded a local circula tion satisfactory end safe. In other States, where no reliable scrunty. or In sufficient security, had been re quired for the protecilon of the public, and their man agement had been confided to incompetent or dishonest hands, there had been numerous failures snd nsavy lo'?M had been sustained by the holders nf thnlr eot?s Soon afier the commence me at of tU' i-bellinn it he rame sppa ent that a haavv national debt was to he created, tbe Interest and principal of which could only be paid by a general system of internal taxes, Involving a neres-lty for a circulating medium equal in value throughout the country, and safe lor the government to receive In payment of dues This subject, of oourse, demanded and received thn earnest and careful consideration of the distinguished gentleman at that time tbe financial minister of Ihe government, who caused to be prepared sed submitted to Congress a bill "to provlto s national currency secured by a pledge of United Stat A bonds, and to provide for the circulation and rcdomptlon thereof," which, after having been carefnlly considered and the roughly discussed, became a tow on tbe lililb of February, lsflj. Prior to the passage ot this art, issues by the gov ernment had bean authorised, and a large amount of government notes had been put into circulation. Dal tuere Is nothing In the ecu anthortxiog their Issue, or In the communications of the (secretary, or In tbe discoe sious in Congress, to justify tbe opinion that they were intended to be ? permanent rlrriistion. On tb" contrary, tbe provwions In the law for their con version into bonds, snd the argument* nf tbe advoreleo of tbe r issue, afford smpie evidence that they were regarded a* merely tem porary, and Justifiable only by an emergency which It was supposed nothing else could so adequately meet. Had It been proposed that these notes should be a per mansiii c rnulailon and take the place of bank notes, there a good reason to suppose that the proposition would have bed few, if any, advocates. Nor was tbe national hanking syatsm prepared by Its aatbor. nor adopt*,! by Congress, to destroy tbe Huts banks, nor lo dlvsrt capital from (tanking, but rather to compel all hanking Innitnuons iseu.ug notes aa money to secure them, lieyon l any conceivable contingency, by deposit* with Ihe Treasurer of the Celled (hates, thus, without the agencr ot a national hank, providing a national cur rency which would save the government snd people from looms, of whlrh thsre wa* constant danger, from a local ?ad unsecured circulation The nations! hanking syetem woe reloaded, while not Invading the righto of the State*, nor damaging private Interests, lo furnish lb* people With e permanent paper circulation. The Unltod Stales notes were intended to meet a temporary emergency, end to be retired when the emergency had passed. raw ee<it*TiST in ravo* or *r*T?mrtn m strtosat bask warm asp wrntnaswisu loosi rasnsss The present Secretary wa* not th* advocate of the natloual backlog system, and ctaima only tbe credit of hsvieg oaed his beet effort* se Comptroller, to put it Into sacceesfut eporalion. But he he* no hesitation In protmiiorleg II e vaet improvement upon th* systems which it rupereeded, and on* admirabiv edapiod toner peculiar f?rm of government. There are substantial objections 10 all been of tone, snd if nuns existed In the United dtetoo It might be very questionable If any should be inirodueed; but having taken (he place nf the Stat* banks, end furnishing a* tbey do a circulation as free from objection te any that to likely ta be provided, the fee rotary to of the opinion thai tbe national hanks should he Mstaiaod, aad that lb* paper circulation of to* country should be reduced, not by compelling them to retire tbetr eotos, but by to* withdrawal ot tbe lie ted Hist** Tbe decretory to not unmindful of th* a set which results lo toe joveremeat by own currency, nor of the rotor witn whirl to regarded by lb* people, hut an ooaride ivtag of inter __ , the use of IIS which this currency consideration* of this IW1W thou cniI?Wnm4 ty tt* dlnrMM 1 MIMM0 upo If ftpil to wr itt ?otto according to tMr tenor, by the bod tnfiueaoe of this voluntary discredit upon the jwWtr morula, u4 the wide departure which ? oonltnued issue of legal tender note* involves, from pMt uterus, if not from the,teach ing* at the oonstttutlou itself. The government oaneot exerotae powers not ooaferrod by itaertanle law or neoet aary for lu own pr seer ration, nor dishonor Its own en garerannta when able to meet them, without either shocking or demoralising the sentiment of the people; and the fact that the indefinite continuance of the circulation of an Inconvertible but still legal tender currency la ao generally advocated, indicatea how far we have wandered from old landmarks both la finance and ethics. The views of the Recretary on this point were ao fully expressed in bis former report that It In not necewary to restate them. It la sufficient to my that bla opinions are unchanged, and that reflection end observa tion daring the past rear have assured him of their cor rectness. Anxious as he la to lighten the public burdens and reduce the publio debt, he does not hesitate to ad vise that tbeaa notes he withdrawn from circulation, and that the furnishing of what paper currency may ha re quired be left to corporations, under existing laws end such amendments of these laws aa expertsnoe may dic tate for the bettor protection and advancement of the public Interest. Row rapidly they may be retired must depend upon the eltbet which contraction may have upon business and industry, and can be better determined aa the. work pi ogreuses. The reduction could probably be Increased from four millions per month, aa oontemplated by the act of April IS, tflflfl to six millions par.month for the present fiscal year, and to ten millions per month thereafter, without preventing a stead v coo version or the Intoreet-beartng notes Into bonds, or injuriously effecting legitimate b urine*. No determinate eoaje of reduction jflMlflr however, in the present condition of our affairs. M advisable. The policy of contracting the circulation of koverument notes should be definitely and unchange ably established, and the process should go on jnst aa tapUUyaspsm?wmWhato proriarflag a ? epttifi eftgNar aertouety latirrniit (boas branches of Industry and tends upon which our revenues are dependent There is a grant adaptability lu tbs buainaaa or the United Slates, and it will easily aooommodmto ItseU to any policy which the government may adopt That the policy indicated la the true aud safe ens, the Secretory ta the roughly ' ptafl and ?t| vtaeed. If H shall not ha speedily adopted and rigidly hut judiciously automat, severe flaancial tree Ma* are fit store for ua mwtn or quo 1st pro umimul nans a in eocaero* The Secretary cordially approves-what la aud by the Acting Comptroller of the Currency, in hta report in re gard to the importance of furnishing tbe people of the South with the bank note circulation which their busi ness may require, and agrees with him In the opinion which he expresses of the beneficial remits, political, financial and social, to be effected by the organization of national banks in Ihs Southern States, but he cannot recommend an increase of the bank note circulation of the country beyond $300,000,000, and hopes that tbe ne cessities of those States may be supplied rather bv a reduction of the amount awarded to other States, than by an increase of the volume of currency. rwvi?io!? or tit* Tinier. The third remedy suggested It a revision of tbs tariff for the purpose or harmonizing it with internal taxes, a red notion of taxes upon raw material, Ac., Ac Ttie 00th section of the act entitled "An act to reduce Internal taxation." Ac., approved July 13, 1R00, provides "that the Secretary of the Treasury Is hereby authorized *o appoint an officer in his department who shall be styled 'Special Commissioner of thn Revenue,' whose office shall terminate in four years from tbe 30th day of June, 180A. k shall be the duty of the*8pecial Commissioner of the Revenue to inquire into all the sources of national revenue, and tbe best method of collecting the revenue; the relation of foreign trade to domestic Industry; the mutual adjustment of the sys tems of taxation by customs and excise, with the view of Insuring the requisite revenue with the least disturb ance or inconvenience to the progress of industry and the development of the resources of the country, and to inquire, from time to time, under the direction of the Secretary of the Treasury, into the manner In which officers charged with the administration and collection of the revenues perform their duties. And tbe said special commissioner of the revenue shall, from time to time, report through the Secretary of the Trea sury to Congress, either in the form of a bill or other wise, such modifications of the rates of taxation, or of the methods of oollectlng tbe revenues, and such other facts pertaining to the trado. Industry, commerce, or taxation or the country, as he may find, by actual obser vation of the operation of the taw, to be conducive to the public Interest" On the 10th of July last. Nr. David A. Wells was ap pointed Special UommlSHloner of tbe Revenue, under the authority above recited, and he wae instructed to proceed at once to perform the oontemplated work, giving his chief attention to the tariff, with the view of ascertaining what modifications are required to adjust It to the system of internal taxes, stimulate industry, and make labor more productive. Tbe ability displayed by Nr. Wells in the performance of his duties as one of the comnrisaloners for the revleion of the internal revenue lawn, and tbe heartiness with which he Is prosecutive his Investigations, give the best assurance that he will perform tbe work In a manner creditable to himself, and satisfactory to f'ongreas and tbe people The Secretary addressed to' him on the fourteenth day of September, 1806, a letter from which the following ts extracted:?"In view of the fact that the revision of the tarifl Is certain to engago the atten tion of Congress at Its next session, I consider It espe cially deetrable that the Tr asurv Department should be prepared to furnish aa much information pertinent to tbo subject as can ho obtained and collected within the limited time available for the necessary Investigations. Ton are, therefore, hereby requested to give the subject of tbe revision or the tariff especial aitentioa, and to report a bill which, If approved by Congress, will be a substitute for all aoto imposing customs duties, and which will render the administration of this branch of tbe revenue system more simple, economical and effbccttva. "In tbe discharge of this duty you will consider ths nrcessltv of provl 'lnc for a large, certain and perms neat revenur, to o"e t ng the lact that the existing tar ff has proved most efieouve la this direction. You will, therefore, endeavor, first, to secort for the government a revenue commensurate with Its necessities; aert secondly, to propose suoh snodlfloatlens of the tariff laws now In force aa will better adjust and eqasltse the duties upon foreign imports with the Internal taxes noon borne productions. If this last result can he obtained withoat detriment to the revenue, by reducing taxation upon raw materials and the machinery of home produc tions, rather than by Increasing tbe rates of Imports, It woald, la aay opinion, by decreasing the east of pro ductlon and Increasing the purchasing power of wages, greatly promote the Interests of the whole country." Thorn la ao subject which has In tlmsa past provoked so much discussion and In regard to which opinions have dlffbred so widely aa tha tariff It has been a standing matter of sectional and political strife for nearly half a century, and the sentiment of the people In regard to It Is still quite as such divided as when tbe discussion or It < ommenced. Always a complex and difficult question, it is particularly so at the present time. Prior to the re hellion It had ao relatiea to Internal taxes, for this form of federal taxation was then unknown to our people. It had little connection with tbe currencv, for until the year 1302, although the bank* had repeatedly suspended specie psvmeots, specie was the only legally recognised standard of value In the United Mates. Now tbe ques tion of the tariff Is to hocoostdsred In connection with a permanent system of Internal taxes and a depreciated, hut, it Is hoped, a temporary legal tender currency. It is obvious thata seals of dalles upon imports which might have been sufficient, judicious, end beneficial when there ware no interns! federal taxes and business was conducted upon s specie basts, may be insufficient, Injudicious and Injurious now. A large revenue Is at present indispen* abls for the payment of ths ordinary expenses of the government, the Interest upon tbe public debt, and for s gradual and regular reduction of the pr.nolpal. free trade, although In accord with tbe principles of the gov ernment and the instincts of tbe people, cannot l>? adopted aa a policy as long es the pahltc debt axlsts in anything like Its prea-nt magnitude. The long-hoped-for period whan there shall he no legal obstructions to a free exchange of comu odtllev between the United States and oilier countries Is still Tar In the future. Duties upon Imports are not only necessary for revenue, but also for the protection of those home interests upon which hssvy internal taxes are to be sseessed. Tbe question now licfure the country is there: ore one of adapts Hon, rather than principle. How shall the nerossarv revenue be raised under a sys tem ot internal and tzleraal taxes without sustaining monopolies, without rapraamng industry, without dia rourngtng enterprise, wlthoutopnreselng labor? In other words, bow shall the rtvesne be raised In a manner the least oppressive to tbe people, without checking the of the coui prosperity and growth of the country f The Secretary la not disposed to diacuss the question in this report. Thla will. It Is expected, be done elaborately end thoroughly in the report of the Commissioner. He de sires, howsver, to call attention to a few Important facia In regard to some branches of business in ths United Stales, the consideration of which may lend to give s proper direction to the public mind upon s queetioa to sbsarblng and Important nuriiiiATMK or oca roasKis onwwxnra?SBASwa roll rr. No single inearest la tha United Stales, fostered al though It rosy be by legislation, can long prosper st the expeuso of other great interests. Nor can any Important Interests be crushed by unwise or unequal laws, with out othar interests being thereby prejudiced. For Illus tration: the people of the United Mates are naturally a commercial im maritime people?fond of adrenture. bold, entorprtelng, persistent. Now, the disagreeable fact must be admitted that, with unequalled facilities (or obtaining tbs materials, and with acknowledged skill in sbipb'iildTng?with thousands of miles of sea coast. Indented with the Unset harbors In tbo world?with ear plus products that require in their exportation a largo and Increasing tonnage? wa can neither profitably build ships nor sucoemfollr ooui|>ete with Fog I lab ships In the transportation or our own prodactlona. Twenty Bajre It wsa anticipated that art thla tha United would bo the first maritime power In tha world Contrary to our exportation*, our foreign mmmeree has fifty per cent within the loot sit ye declined nearly fifty per cent within the laat sic yean Tbe tonnage of American vessels aagaged In tha foreign carrying trado which entered United 8tales porta wsa Tom la IteO...- 4.WUAA la IW 4 444,Ml

la IMA 4,314,000 Th? tnaaago ofauch tmmIi which war* claarad from M* or aocn a (ho llallod ^ la 1M0 4,1A6,?M la IMA 4,044,144 la IMA *443,174 Tha toaaaga or foreign morula which ealarad oar porta Ttmt. la 1M0 *444,411 la IMS *414 441 la 1AM 4,414,424 Tha lannaga of foreign rnaoala which wara ciaarad TVau. la 1M4 *444.004 la 1444 *444,144 la 1AM *441,344 It la (rat that a largo proportion of thta AlmloaMon of ahipplag aaA ohm hollaing waa tha a ANA of Mm war. Tha graal rtawraetioo of marrhaat raaaaia ha rahai araia ara not aalf iwdomg aalaa (a oaolraia, hat dtaaaaragod t>uii<Mac After tha war. how** or. tha ararodg <* SBArt* -TV activity la uarAlpfirti aod a rapid Hiirian -^r''mii tut this has oMbswwMtaaaao nepriaT*k??EA materials are so high that ship bonding cum a* made profitable la the United States, aod many of o*Hklpyerd* are being practically transferred to th* BritishpSwSSH It la only am year* alaaa American ships sen sought a/tar, on aeeonat of thalr suprtonlv and cheapness; and large numbers of vessel* were hulll la Ma as and other 8iates on foreign account, or sold 10 foreigners, while, at the saaaa time, oar owa mercantile marine was being rapidly increased. Now many or our shipyard* are abandoned, and la others eery little activity prevails. It Is irue there baa reoeotlv been some Inoreaae in our foreign tonnmge, but a good put of this increase is ap parent only, and la the raault of the new rule of ad measurement. It la an Important truth (bat vessels can he built very much cheaper la the Briiiah province th" u? *?'??- Nav, further, that timber can be taken from Virginia to the provinces, and from these prov Inces ts England, and thorn msdo into ships which oan bn aoldata profit: while the same kind of veaaels oan 2?,.T? ,n Borland at a loss, by the most skillful and economical kulidura. But the evil does not atop bora: if the only lose was that which Hi* w by the dlaeontlnuanca of shipbuilding, there would be leas cause of complaint. It Is a wall e?tabll?h#d<general fact that the people who build eh pa navigate them, aod tbat a nation whioh oaasas to balld ships oeaace, of consequence, to b* ' oommarclal ahdmarltlme nation. Unless, therefore, ?rhi0^ T**"1 "?? building of ships in the United State* shall cease, the foreign carrying trade, even of o? own production* must ha yielded to other "''?'!* _,f0 thl* humiliation and lorn the people of the United Bute* ought not to be iSjocuJl If other b^obu of Industry ore to prosper, if agrioulture la to bo prbOuMe, and manufactures are to be nstandsd, the Mid increased. The United Slates will sot he a first ?rr so oaewrn sn raosraarrr or on oontir. The same oaaaas?a redaadeat ourrency and high taxre?that prevent ship hulldmr. land tTprwveni the building of hvnoMand ereo of mimfociS^arhJSh ^ ovary daaortplion that man hesitate t* illd 4 wettings as folk as they an required, and thus tmH rental ,n?,, wmum the healthy growth of towns anTclues"s*retarded! *8e it is la regard to asaautacterim Mill* which were buiU before tbe war can bs run profitably, but so expensive are labor and materials that new mills cannot bo erected and put Into operation with any prospect of fair returns upoD thfl Investment, unless upon the expectation that taxes will remain as they are. and prices be sustained, If t?ey.?r* not *dvance<l- Tbe same causes are injuriously affecting agrlcultfire and other interests which it Is not necessary to particularize. It Is everywhere observed that existing high prices ere not only oppressing the mas-sen of the people, but are serlouslv checking tbe de velopment, growth and prosperity of the country. It Is not denied that tho looses which the country has sus tained of ablebodled men by tho war Is one cause of existing high price*; but mainly they are the result of a reduudant currency and high taxes. nia navBxuB QUBsnow. To raise the largo revenue which Is now required, by cystoma of internal snd external duties, which, working in harmony, shall neither repress industry! nor ohock enterprise, and which shall bs so devised as to make taxation bear most heavily upon those who are most benefitted by taxes and by tbe debt which render* taxa tion necessary, requires great practical knowledge and wise statesmanship. This subject, always an Interesting one to the heavily Indebted nations of E iropo, has be come, as one of the results of the war, deeply Interest ing to the people of the United States. The Secretary does not, as before stated, intend to discuss It, but he ven tures to suggest tbat the following general principles, some of which have been acted npon by Congress, and the correctness of all of which have been proved by othor nations, may be safely adopted as a guide to the legisla tion that Is now required Tbat tbe fewest number of articles, consistent with tbe amount of revenue to be raised, should bs sub jected to Internal taxes, in order that ibs system may bs simple In its execution, and as little offensive and annoy, lug as possible to tbe tax payers. $re ?d?That the duties upon Imported commodities should correspond and harmonize with tbe taxes upon home productions; and tbat these duties should not be so high as to be prohibitory, nor to build up home mo - ?_ /1 *.v# w irugiu UU IIUulV BO> nopolies, nor to prevent tbat frea exchange of commodi ties which Is the life of oommoroo. Nor, on the othor uus wuicn IS ma me or oommoroo. Nor, on the othor hand, should they be so low as to seriously Impair tbs revenues, nor to subject tho home manufacturers, bur dened with heavy internal taxes, to a competition with cheaper labor and larger capital which they may bs una ble to sustain. Third? That the raw materials used In building and manufacturing, and which are to be largely enhanced in T*,u? bytbe labor which Is to be expended upon them, I should be exempted from taxation, or that tbe taxes upon them should he low in compariaon with the taxee [ upon other articles. This is tbe polloy ef other en lightened nations, and It la believed tbat tho diminution of direct revenue which It would Involve, If adopted bv the United States, would bo more than madeup bythS augmented value which It would give to labor and by 1 the Increase of productions and of exports which would b# sure to result from It. It should be constantly borne In mind that taxes upon raw materials directly increase the cost of production, and thus tend either to reduce the product of labor or to prevent oxportations to forelga markets. Rmrth?That the burden* of taxes should foil chl?fly upon those whose interests are protected by taxation "J1 ?P?? 'boae to whom the public debt Is a source of wealth and profit, and lightly upon tbe laboring classes, to whom taxation and th* debt are without V> ml-? compensatory advantages. Twesrrr nan mnou?rsncir*L aao arum patabui I i* xcnopc. ?f ?? series of proposed remedies Is an Issue of bonds, bearing interest at the rata of not exceeding five per cent, and payable in Europe, to an amount suffi cient to absorb the six per cent bonds In foreign bands ?.!op?T lhe Earopean demand for United States as ?k ?? -r POfBAQOht Investment. No one regrets more '*cl that so largo aa amount of our bonds Is held abroad, or the unfortunate ooodltion of our trad* that has transferred them thither The opinion thai th# oouutry has hoan benefitted by the ex portation of its securities la founded upon tbs supposi tion thatws have received real c.pitallu exohugete supposition Is, to a largo extant, unfounded. 2?th^?ta^m,r#mr>iJ? *bTtl *? toT *ooda which without thorn might not bars been purchased. Not only bay* wo exported tho surplus products of our mine* nnd our fields, with no small amount of our manufac ture4, but a large amount of securities also, to P*r . f?? the articles which ws hays pur chased from othor countries That these purchase* bars been stimulated and Increased by the facility of paying for thorn In bonds, can hardly bo doubted Our Importations of goods have been Increased by nearly tb* amount of the bonds which here been exported Not one do'tar In five of the amount of the Ova twenties now held la England and upon tho oontlnent, haa been re turned to tbe United Statu In the form of real capital But If thla were not a true statement of tbe case the fact exlsia, a* baa been already stated, that soma three hundred and fifty millions of government bonds?not to m-ntion Hiate and railroad bonds aod other securities? nro in the hind* of tho citizen* of other coontr ee which may be returned at any time for sale in the United Slates, and which being so held, mav seriously embarrass our efforts to ret ore to specie payments. After giving the subjeot csreful consideration, tho Secretary ha* con cluded that It is advisable that hs should bs author Izsd to Issue bonds not having more than twenty years to run, and bearing a low rate of Interest, payable In England or Germany, to bo used in taking up th* six per cents now held abroad, and la meeting any foreign demand for Investment that may exist The question now to be considered is not how shall our bonds be pre routed from going abroad, for a large amount has already gone, and others will follow as long as our credit is good and we continue to buy more than w# can pay for In any <*h#r way, but how shall tbsy be prevented from being thrown upon tbe home market, to thwart our efforts In re,taring the spec* standard Tbe Secretary see* no practicable method of doing this at an early day but by substituting for them bond* whUh, being payable prin cipal and interest In Europe will be less likely to be re turned when their return Is tbs least dssired. The hold er? of our securities In Europe sre now subject to great inconvenience and not a little expense in collecting iheir coupons; and II Is supposed that Ave percent, or perhaps four and a half per cent bonds, payable in London or rrsnkfort, could be substituted for our six per cents without eny other expense to the United .Stales than the trifling commissions to the agents through whom the exchanges might be made. Th# saying of Interest to bo thus enacted would bs no inconsiderable item, aad the advantages of baring our bonds In Europe placed In tb* hand* of actual Investors n too Important to be dime .arded Tbs fifth and last remedy suggested Is the rehabilitation of the Slates recently In insurrection ntcmitt or tni MNAiui.rTAnon or ma noithun iriTK la alluding to Hit* anbject' tbo Secretary feala that ha *tap? upon dangeroua ground, and that ha nap bo cbargad with introducing a political topic In a financial report; but in hi* opinion tbcre li no question now before tbo country mora Important In Ita boar log* npon our flnancaa than tbo political and ron**quently InduMrtal itatns of the Southern Slot**. Embracing, aa they do, ooo-thlrd port of tbo rtchaa! lamia of the country, and producing article* of groat ralu* for bom* u*a and for oiportotloa to otborcoan trtoa, their poeltlon with regard to the general gorern ment cannot remain anoettled, and their Industrial pureuite cannot continua to be sarioaaly disturbed, with out caomng each a diminution of lb* production of tbelr great eta plan *a mu*t n*ce*oarlly alTbel our rerenuea, and render wtlll more unaatlofactory than they now are, our trad* relation* with Europe, A* long aa th* pr*e?nt anomalous condition of lb*** State* continue*?aa long aa they bar# no participation In tba government, to tbe rnpport of wbleb they ere compelled to contribute?It la Idle lo expoct that their toduetry will be reetored or their production* Increased. On tbe contrary, there I* roeeoa to apprehend that until harmonloue role Hone again eilet between the federal govern ment and lhe*a State*, the condition of tbelr industrial Internet* will b*com* day by day more on certain and u Manufactory There will b* no real pronperlty In than* State#, and ooneequenlly no real pruepwrlly la on*-tblrd part of the bolted Suttee, until nil possess again equal privileges under the oooetltutlon. Can the naUon be regarded aa In a healthy condition when the industry of so large ? portion of It I* deranged? And can tha tabor aeration at U>* South be nettled aa long aa tbe political Main* of tb* South I* unaeitled? fan tbo notional credit be elevated and tba public debt be rapidly reduced nnlee* lb* Southern mates shall largely roe tribute to tbo public revenue# ? aod can such contributions he railed upon na long a* they remain in tbelr pieennt dlefrancblaed condition? will tbo tax pavers of the North oontlnn* to be patient, unhwa tbelr burden* of taxation can bo l?mii by being equally ?harod by tha paopt* of th# South ? Ragardod thue aa a n financial qoeattoa, th* relation of th*** Bute* to leral Union la an ateaaSinglT tntaraating and im portent one, and aa aucb It daman na th* calm and care re! caaoMoratlon of (ingrmn, arncia ntinn bat an anuin c* Lam toax two nana. Tb* ncuratory ha* thna prn*a>*< la ouch man a or aa hla pramlag ofSclal deltas would permit hM rtewe of th* ?nonatol oondiMon of the ooentry, the onnaaa of trouble. nm And enforced by ippioprlt^ Nililitiop, " ld*nt that specie payments may t*|r**,'"n*f ,|? oar Interest heart of not* are ?*t*ed,whten. mamaa <t?? ta lee* two yean, and probably will be to a These m- aeures look to an lD']r<!V*L*^?atil?isMnSS aeqneatly of production. to a fuiaitaeat of oNlfMwns by the government sod tbe banks, to a reduoUooi of Un public debt at tbe same time that ^*an being equal zed and lessened, to lower prices, snd apparently harder, bat really more prosperous times; to a restora tion or speaie paymenu without the financial J*?"*1?? whiob usually precede a resumption alter alongjmrtodof suspension and Inflation. The Secretary does not tnean to assert that the adoption of all tneaa though he regards each as important) Is absolutely necss sary to a return to specie payments, nor that other rem* ediea may not be adopted by Congress to rewiu* the eonntry from lmpeoding flnancial trouble*. He presents, as he considers it to be bis duty to do, his own views, and asks that they may receive careful consideration, and be adopted If they commend themselves to the wis dom of Congress, and rejeoted If measures better calcu lated to secure the deetred end can be devised. The most sanguine and hopeful must perceive that tba business of the country cannot for a much longer time be run upon the present high level wlib safety. The speculative In terest, large and powerful In lttelf, la reostvlng dally new acoessleaa of strength by the increase of individual credits: and whan speculators and debtors control the financial policy of the country, a flnancial collapee is taavitabla. These nntoward and dangerous influences can now be rented, and tbe true interests of tba peopis require that they should be resisted promptly and deci sively. Unssttsfhctary as le, In many respects, our condition, then is causa for congratulation that we have thus far escaped those sever* flnancial troubles which usually befall nations at tbe cloe* of expensive and protracted m. wmh ear wast leeeureee sod tbe buoyant aod mhMnI energy of a free pewpK # *01 ha our own teultir we do not escape themaltogether. The Secretary has pointed out tba Qnsscial dangers around sad before us, la order that thay may he con sidered sad avoided before they culminate la general -??Strong m Is his coovlctton that wa have beea time* aad sttU are. movtsg la the wrong di recti en. aod that much of our proepactty la unreal ^uWWEle, his oeafldenos In the eblfoy of the country to right Itself speedily Is nnshaken. We have but touched the surfaoo of our resources the greet mines of out national wealth are yet to be developed, Hie ox perleoces of the past four years have only assured us of our strength. It is only necessary that our true situa tion be understood in order that the proper remedies may be applied. There Is no insurmountable obstacle In tbe way or restoration to perfect financial health, with out the painful trials to which It has been apprehended we must first be subjected. To be a coworker with Con gress and tbe people in effecting tbu moat desirable result bas been, and will continue to be, the highest aim of the secretary. . , ? . _ After a careful survey of the whole field the Secretary li ol opinion that specie payments may be resumed, and ought to be resumed, as early as the first day of July, 1888, while he indulges the hope thet such will be the character of future legislation, and such the condition of our productive Industry that this most desirable event may be brought about at a still earlier day. sraTiMiirr or tux public df.bt junx 30, 1180, sxclubivb OW CASH W TRXASCRT Bonds, 10-40'a, 5 per cent, due in 1904... $171,210,100 Bonds, Pacific Railroad, 8 per cent, due in 1895 and 1898 ????? 6,042,000 Bonds, 5-20's, 8 per cent, due In 1882, 1884 and 1886 722,206,500 Bonds, 8 per cent, due In 1881 2?5,317,700 Bonds, 8 per cent, due In 1880 ill'iH'ISS Bonds, 5 percent, due In 1874 Bonds, 5 per cent, due In 1871 7,022,000 Total "fl,210.221.300 Bonds, 8 per cent, due In 1868 Binds, 8 per cent, due In 1887 9,416.2o0 Compound Interest notes, due In 1887 and 169,012,140 7-30 Treasury notes, due In 1887 and 1888 . 806,251,550 Total L $983,587,281 Bonds. Texas Indemnity, past due, not presented 959,000 Bonds, Treasury notes, he., past due. not presented 3,815,876 Total $4,374,676 Temporary loan, ten days'notice 120,176,196 Certificates of indebtedness, past due, not presented .6,391,000 Total $*146,567,19 tinned States notes. Fractional currency 0/0,876 Gold certificates of deposit 10,713,180 Total $438*^75,424 Total debt June 30, 1866 $2,783,425,879 Cash in Treasury $132,887,549 RiTUZZf OV TS? PtlSUO DCBT OCTOBXR 81, 1866, BICLO hivs ov cam is trxahitrv. Bonds, 10-40's. 6 per oent, duo in 1904 $171,069,350 Bonde, Psclllc Railroad, 6 per cent, due In 1895 and 9,882,000 Bonds, 5-26'a, 0 per oent. due In 1882, 1884 and 1885 823,944,000 Bonds, 6 per oent, doe In 1881 265,324,760 Bonds, 6 per oent, due In I860 18,416,000 Bonde| 6 per cent; due In 1874 20,000,000 Honda, 5 per cent, doe In 1871 ^2 Navy pension fund, 0 per oent 11,750,000 Total TTwTotW.lOO Bonds, C pe? cent, dae in 1808.. Bonds, 6 per oent, due 1a 1867 7,742,800 Compound intaroat notes, duo In 1887 aad 1888. 148,512,140 7-30 Treasury notes, due In 1807 aad 1808. 724.014,800 Total $888,680,181 Bonds, Texas Indemnity, past due, not presented 384,000 Bonds, Treasury not*, temporary loan, certificates of Indebtedness, ho , past due, not presented 38,804,000 Total $88,008,000 United States notee 300,195,785 Fractional currency 27,588,010 Oold oertifloate* of dapoait 10,898,980 Total .""$428,080^775 Total debt October 31, 1800 $2,081,830,000 Cash In Treasury $180,328,060 ?enjsara ascairro aid xxraxornraM n? m thru QUABTUS8 BSDISO JOSH 30, 1887 The Secretary estimates tflat the reoetps for the three quarters ending June 30,1887, will be as follow* ? Receipts from customs $110,000,000 Reoelpta from lands 500,000 Receipts from internal rev... 180,000,000 Receipts from miscellaneous source* 20,000.000 I $318,500,000 The expenditures, according to ble estimate*, will be? For tbe civil service $37,405,047 For pensions and Indians.... 12,263,217 For the War Department, in cluding $16,000,000 for buunllee 58,804,857 For the Navy Department,... 23,144,810 For interest on public debt... 106,101.512 ' ? 237,100,143 Leaving a surplus of estimated receipts over estimated expenditures of $70,390,856 Tbe receipt* for the next 6scat year ending June 30, 1888, are estimated as follows:? From customs $146,000,000 From internal revenue 265,000,000 From lands 1,000,000 From miscellaneous sources.. 25,000,000 $436,000,000 The expenditures are estimated as follows .? For the civil service $60,067,342 For pensions and Indians.,.. 25,388.489 For the War I>? pertinent, in eluding $64,000,000 for bounties 110,881.961 For the Navy Department.... 30,251,606 For Intereet on the public debt 183.678,243 360,247,641 Leaving a surplus of eetimated receipts over estimated expenditures of $*5,752,Sil r>c* "oumbiuial ivrsaoorma wrrn earna* iintCi In regard to the commercial Intercourse between the fnlied Stales and British America, tbo Secretary adheres to the general opinion otprcaood In bin roport of lMt, that until our revenue system la fully ret lied and ad Justed to the financial situation of Ibe country thta sub ject ibeold not be placed beyond the control of Con a reee, bet abotild be left to concurrent leclalatlon and such retulation* aa the Treasury Department may be autbor laed by law to preecrlbe. Another reason for arrange ment! thus fleiible la preeented by the uncertainty of the political situation of Bntleb America. The scheme of confederation which propones to transfer questions of revenue and external trade to a single central authority baa not been adopted, and the opposition to the measure may prevail with the new ministry of England. either to modify materially the terms of tbo Quebec convention or to sntfiect the whole measure te the baaarde of a popular vote la the Provinces, However the political problem may be solved, It la not unlikely that wban the United -tales shall have simplified estating methods and reduced timing rates of taxation no aa to receive the largest amount of rev enue with the learn burden to Industry, British America will be prepared to undertake a system of public lm provemenle along the channel of the 8t. Lawreoca and through Northweet British America to the Pacific coast, which, by the financial nereaeltiee attending lie adop tion aad the administration of a federal government, will suggest n Zollvereto, or a complete assimilation of exclae and custom ditties on eaob tide of the northern frontier. At present Inaction upon this subject would appear to be the true policy of the Tolled States. uaiuhs noamsut t'nder the authority conferred by Concrete at Its last ?esaiou tbe marine hospitals at Burlington, Vt , at C ha rim ton, 8 C, and at Cincinnati, Ohio, bare been sold, nod proceedings bare been taken to d'spusc of others not required for aerv Ice, when it shall'* found poaathle to obtain fair prices for them. A sale baa also bean effected of tbe old marine hnn Blal at Chelsea, Mass., on satisfactory terms. Ibe new wpltal building M Chelsea, and that at Cleveland, Oblo, bare received such additions and repairs is ware necessary to pat them In aarvicaabla condition, and all marine patients within pracilt abla reach of tham ham been gathered there for treatment. A similar plan of concentrating the patients at promi nent points has bean, as far ar practicable, pursued throughout the couetry, by whloh, together with a rigid adherence to the fundamental prlaclpiaa on which relief Mould ha aflbritsd. tbe espenaas of tba establishment la the Northern 8tatae have been materially redeem, al though the enlarged demand for hospital privileges at ths Smith, oaaaeuueat snog tba reopening ef Qm* P* pondlngaddttlou to the collection of tnxee f*?m The The revenue cutter, on the Atlantic end Pacific? coaaln and on the lekee here been diligently end ueefully eas nloyed In preventive service during the lent year. P It was found Inexpedient to sell ai ?rnnn at in Uit b4mm1ob, thi vtj?Ui hsrWwort reported an unsuitable for the cutler service?with the excapUo. of the Cuyahoga, the Urgent of the class, which has been offered for sale, but has net yet been disposed of?until their places sbould be supplied by others. Consequently they have been kept on active duty, and will not on withdrawn until the small sailing ber. which have been reoentl P contracted completed, as they are expected to be, in * iffo or three months. So soon a. these can be assigned to duty the others will be withdrawn and sold. minmo sTiTsmca. On the second day of August last. In acnorda.ee with the provision contained In the Civil Appropriation Mk approved on the 28th of July, 1888, Mr. J. Hoes Browse wsls appointed a special commissioner to oelleot reliable statistical Information concerning the g^d andidrnr mines of ths States and Territoriso ?J JSbefuaL Mountains; snd on the twelfth day of Sepumber ls*. Mr Jamet W. Taylor was appointed a commlsstqaor tw nerform lha same work In tba States and Territories SWJ of the mountains Their preliminary reports havn nst yet been recelvad, hot It U expecu/that they will be t. season to be Kid before Congress Thdi wftll known CB6f|7 of tolN jiftUiBliOi Vw ?*nr familiarity with tha subject of mines and mining, lead# the "ecretsry to expect that their lnveatigatana will ho thorough, ohd thelrfull reports Interesting sad valnabta. tsi causobsia mwr. On tha third day of June last Mr. John Ja^ 22 snus^vsmtsftMit bbubb ibib Uw cbbBiMob BT JBb Bj'lbbB q! IB# the Assistant Treasurer In 3an this department. Hie TepertewW^w ?Myewwwo lar attention Is requested W i^.?me^is!lim^It without detriment, but with P?111" mining interect. bo left entirely to private ?1tuiuux where there arc no established mints, the gov sbould be disconnected from It In such districts without delay. THS STATISTICAL 8CRSAC. ?,i,l?A Ths Statistical Bureau, authorised , by tha act entiua. "An art to protect the revenue and for other pur pooea. approved July 28, 1888, was organised on the 5th day or September last, by the ap^lntmcnt of Mr Alexandee Del mar as Director. Mr. Del mar domWsdly ? blgli reputation aa aaiatlsticlan, and It Kexpecw that under his dlreotlon this bureau will be of great benens to this department and to the country^ After putting la Rftpbr condition the numerous books relating to commerce and navigation whiqh bave bee. transferred to this bureau the Director will ^parem llable statistics of tbs resources of the country * ? d"}* extent to which they are being developed reports or imports snd exports, taxes, impoet^ wagse, products snd markets will also be regularly and every means employed to ascertain the program or population and industry. The ^''ba'T able to slate, although little more than.l"?, elapsed since the bureau was OTganiz^that good pro gress has been made in the work devolved upon It. 6 THS COAST SURVEY. The work under the coast survey has been proeeouted during tho psst year with accustouaed operations have been recommenced on the OTWd where they bare been for some years past Isterropt^ tm Importance of these surveys was fully the recent civil war, and they cannot Tail to be of oo^ ?Untly Increasing value to commerce. The work* r teach I y advancing towarda completion, and the ?**!!L tary recommends for it the proper and necessary appro PrWi0M- WTWT STATISTICS. ? Th. total value of ths bullion deposited at the Mini and branches during tba fiscal year was*M,MT,156,of which 837,223 640 was In gold and ?1'P3^1?.1" "AilSL Ded noting the redspoalta, the amount of actual deportte U M^for the yenrwas in gold coin, gold bam, 89,115,485; silver coin, lesO^siHverbarsk $916,382: cents coined, one, two, threeLJDd piece". $648,870. Total coinage, 829,040,779. Total ''"he^golTdeposits of domestlo productlon were^nt Philadelphia, 81815,618; fsa 1 I^^Wer N?w York $8 66T.664; Denver. $160,882. The sliver deposits were, at Philadelphia, $56,118; San Francisoe, 0. IWK. .m $10,096,645; at 8aa rnncneo, $18,217 300, ?fstlvor. ? Philadelphia, $399,314; at San Fraodxco, 3M0^ot bronze and nickel and coppers, at Philadelphia, f Ago 264. no Ann or AvmAwnrssT. The law enacted at the last session of Congress, P? Tiding for the reorganisation of tba ?y?tem ? JXSTnu! menu at the port of New York h" ^7w board effect Bo liifle time has elapsed since the new MM was organised thet the neoeasary refo. ?'? hava not pH been consummated; but they bave been undertake, with so much energy snd Judgment by the apprs Thorns# MoElrath. that the best resulU are oonfidsnMy anticipated from the reorganisation. MBCB8SITT Of MORI iWWOWT LAWS FOB TH* OOVE*. ERY Of OU1 MSECAimLS MaRIKS. Recent calamltlee at sea, eepeelmlly the dtaeat^to the steamRhtp Evening Star, on the 8d ^ whereby two hundred and 8fty lives w?s loot, a necessity for the enactment of Judicious laws for Ote government of our mercantile marine, with especial rsf erenoe to tha taoro complete security of paeast'l1*" J; Is belloved that In this particular we are far behind ansa. other nation*; and while this 1" .VmwbIch WO uln that marttlm# strength and prospectty to whion wo ^'tnqedry Into tho cause of the d'^ur_!;0dJ^ mg rttar, made byCaptain W. M. Mew, tion* from this Department el^led esrer^ tuau, so which earnest attention Is invited, "V.^7 ,?? the radical dafecU In existing laws, and legislation required to prevent lorn or ltf? and to *?banco tha value and aecurtty of property in ships. RsoanAHiSATioR of in narA#?J". The stlontton of Cougrees !** accompanying Inureatlmr reports of the heads of the ro spectlve bureaus, all of whlcV contain vmleabU isfbrme Hon and auggesUons, and Indleau the satisfactory ossa n?r in which the general business of the Is being conducted under existing laws and reemn tiona The efficiency of all the bureaus woold, hsw ever. have been grcaUy Increase*, and the expewss thereof would doubtless have been reduced, by the pM sage of tha bill for their reorganisation, which was under coaslderatloa at tha last seueion Tb? ?Vcblnery of the department, sufficient for the prompt and proper performance of the public business before the war, Is Insufficient now. nT. bureaus M?d rsorgyixstlon. juatlca and aconomy damand higher oompensation so "'^rTsecretary la under obligations to the officers snd clsrts oTtM department for the very satisfactory man ner in which, with few exceptions they have, durtng the past ywr, performed their important apq rwpona* b" HL'CB MrCt'LTXlCH, fecretary. Hon. Scnm** Couax, Speaker of the House at Ptep reeaaaairee. tTATtaciT o? nrt Rscairr* ado axravmnraia or tot IIITtP RTiTSS DrmiSO Til* flKCXL TIAR IROtRO ran 80 1868, AORRRABLT TO WARRANT" IMl'Rn The receipt* Into the Treasury were u follow* ? From custom*, flat? During tbe quarter coding September 00, 1867 $47,000 698 During the quarter ending December31, H#8 30,216,330 Dunng tbe quarter ending March 31, 1816. 46.646,007 During tbe quarter ending June 30, 1866 46,17b. 130 Total $119,046,661 From *ale* of public landa, via? During the quarter ending September 30, 1866 $132,800 During tbe quarter ending December 31, 1865. 115. M0 During tbe quarter ending March 31, 1806 180.110 During tbe quarter ending,June 30,1866 l!6,TtO Total $665^31 From direct tea, eld:? During the quarter ending September 30, 1865 $31,111 During the quarter ending December 31, 1805 366,840 During the quarter ending March 31, 1006 1,060,101 During the quarter ending June 30, 1800 481.600 Total $1,014,744 From Internal reman*, via.? During the quarter ending September 30. 1866 $96,618,600 During the quarter ending December 81, 1806 82,691,180 During the quarter endiug March 81, 1800 66,158.031 During tbe quarter ending June 80, 1860 7. 63,651,110 Total ~$309,226,610 From mtrceilaneoua end incidental eourrea, vis:? 'TC* !t.WUT..^m*.9TT. $16,634,084 During the quarter ending December .. ... . 81. 1864..7 17,031,010 ^84 n'l866* qU,rt*r 11,118.008 * ?mwii* Total 061.110. too Total recelpta, exclusive of $851,000,000 From loans, via.. sis per ncnt, twanty-year bonde, per act July 17, 1601 $12,900 United States eotee, per act February 35. 2 322,610 Temporary loan*, per acta of February and March 17. 18b2 ......... 236,090.144 Certiocatea of Indebted .<*?*, per acta of March 1 and 11, 1662 ????:?;? 44,240,008 Poatage end other stamp*. per act Ja)y llTim 10,800 Frarttoaal currency, per act March 3, 1808 11,081,700 gla per cent 1801 booda, per act March 8, 142 060 CertlOcatea of geld depoetta, per art March 8,100$ 06,083,088 Flm-twaoty year hoeda, per act March 8, 1804 $.801,100 Tm-'octy year boa4a, per act March t, 1804...... I0t 8*0