mS DAILY EVENING TELEGKAril. PHILADELPHIA, TUESDAY, DECEMBER 4, 18G0.
nu Ihod ofrti liu thin tu mi eurlv ilay, but by substitu
ting lor i hem bonds w lilc li being payable principal
Ami Intcre-t In ! urnpo. will ho less likely In be ro
lurncil wlirn their ro'orn Is the b ust desired. The hnl
l rsol oiirsei in itn-a In Kunpe in e now subject to great
tin onvonicnoe and not a Itulo expense In collecting
tin ir coupons; nncl It is supposed Mint per coin, or pcr
HH four and it bull per ct lit. bonds, payable In lon
don or Kraoatiort, could be substituted lor our six per
cents, without nny other expense to the United mates
limn lh triWng i-iimnnsslnns to tho nu-cnls through
whom thoexchiinces mlithl bo mndo. The saving of
Interest to bo thus etfi ct ed would be no Inconsidera
ble itmi: utal the intvani ages of having our bonds In
Kurope placed In tne lin litis ol acluitl Investors is too
nitortrit to be disregarded.
Illtb. The fifth ""d last remedy suggested Is, tlie
rehitbilltailnn ol I lie tstutes recently In Insurrection.
In alluding lo thin subject, the (secretary feels that
lie steps upon dangerous ground, mill Unit no limy bo
charged with tin roducing 11 political topic in nllnnu
clul report: bin, in his opinion, lliere Is no question
otw before the rnuuiry morn iinporlanl In Hi
earing upon nr tinunces than the political and
om-cquenily Imlustrlul alums ol the Southern Slat"".
Kmbrneing, ns they lo, one-third part of the richest
lands ol the Country, uml producing article or great
yahie for home one and lor exportation to other coun
tries, their n silinn Willi repai d to tho Goneial U
eminent cannot remain unsettled, and lliotr In lm-
1 1 lit I pursuits I'liiinol conlliino to be seriously disturbed
wilboul causing such a diminution of the production
if their great siaplt-s a" must necessarily affect our
revenue, and render Mtill more unsatisfactory than
they now are, our fade reliitlona with Kiirone. Am
Ionic aa the present ationiitloim condition of these
stales coiillnueH an long us they liavo no participa
tion In ihedovernmeiil, lo the support of which they
are compelled to contribute it is idle lo expect thut
their iiitlimlry wilt be restored or their productions
Increased, tin the contrary, there is reason to ap
prehend that until harmonious relations again exist
between the Federal (lovcriiiiient and these states, llio
condition ol their Industrial Interests will becomeday
by (lay more uncertain and unsiHislncioiy, There will
be no real prosperity In these tstaies.nnil conieiiueni ly
n) real prosperity in one-third part of the United
l-'iutes. until all possess anal u equal privileges under
the Constitution. ( an the nation be regarded us in A
healthy condition when tho Industry of so large a por
tion of It is deranged ? And can lite labor qu 'Sliuii at
Die Booth be settled ns long as the political status ol
the South is unsettled? Can the national credit be
elevated and I he public dobl be rapidly reduced unless
the Southern states shall largely contribute lotlie
public revenues: and can such contributions be relied
upon us long ns they remain In their present distrnn
cbiHed comitlon? Will I lie lax-payers ol Hie North
continue lo be patient, unless Iheir burdens of taxa
tion run no lessened by belli s equally shared bv the
people ol the South ? Regarded thus as a purely finan
cial question, the relation ol these States to the federal
Union Is an exceedingly interest Inn and important
one, uml us such it demands the culm and carelul con
sideration of Congress.
The secretary has thus presented in such manner ns
tils pressing ollicial duties would permit, his views of
tree llnauclal condition cf the country, the causes of
(rouble, present and prospective, and Hie remedies lor
the same. If these remedial measures shall heap
proved by Congress. and enforced by appropriate legis
lation, he Is confident that specie payment may be ro
mimed by Die time our Interest-bearing notes are re
tired, which must be done In less than two years, and
probably will be In s much shorter period.
These measures look lo an Increase of labor, and
"otiseqiieully ol production to a (iillillmnnt ol' obliga
tions by the Ciovornnient and tho banks to a reduc
tion of the public debt ul the same time that taxes are
being equalized and lessened to lower prices, and ap
parently harder, but really more prosperous limes-to
u restoration of specie payments without the
financial troubles which usually precede a re
sumption alter a. long period of suspension and
Inliuiion. The Secretary does not mean to us
serl that the adoption ol all these measures (al
though he regards ouch as important) is absolutely
necessary to a return lo specie payments, nor that
other remedies muy not lie adopted by Congress to
rescue Hie country Irom impending lliiaucial troubles,
He presents, as ho considers It to be his duly to do,
bis own views, and asks that thev may receive careful
consideration, ami be adopted I r they commend them
selves lo the wisdom of Congress, and rejected II mea
sures belter calculated lo sveure the desired end can
be devised. The most sanguine and liopelul must per
ceive that Hie business of the country cannot for a
much lunger time be run upon the present high level
with safety. The speculative Interest, large and pow
erful In itself. Is receiving daily new accessions of
strength by the Increase of Individual credits; and
when speculators and debtors control the llnaneial
policy ol thecotiutry, a tiiiunclal collapse is Inevitable.
These untoward and dangerous Influences can now be
resisted, and the true interests ol the people require
that they should be resisted promptly and decisively.
Uusutisfuclory. as is, iu intuiv respects, our condi
tion, there is causo for congiuiuluiioii that we have
thus tar escaped those severe llnauclal troubles which
usually b fall nations at the closeof expciislveand pro
tracted wars. With our vast resources and the buoy
ant and persistent energy of a tree people, it will be
our own taull If we do not escape them altogether.
The Secretary bus pointed out the liuanciul dangers
around uml bulore us, in order that they may be con
sidered and avoided before they culminate m general
disaster. Strong us is bis conviction that we have
been rbr some time, and still are, moving in the wroug
direction, and tout much of our piosperlty is un
real anil unreliable, his confidence In the ability of
the country to right itself speedily is Unshaicen.
We buvu but touched the surface of our resources
the greai mines of our uniionul wealth are yet to he
developed. The experiences ot the post lour years
:. have ouly assured us of our strength, it is only neces
sary tbal our true situation be understood in order
thai the proper remedies may be applied. There is no
insurmountable obstacle In the way of restoration 10
porlecl tiiiunclal health, without the painlul triuis to
which II bus boon upprcliended we must lirst bo sub
jected. To be a co-worker with Congress ami the peo
ple iu ullcctliig tliis most desirable result has been,
and will continue to be, the highest aim of the fc)efr
tury. H
, Alter a care In 1 eurvev of the wholo field, the .Sec
retary is ot the opinion that specie payments may
be xeenmed, and ought to be resumed, as carlv as
the lirt da; of July, 1868. while he indulges the
tic tie that such will be the character oi luture legis
lation! and sucb the condition of our productive in
onrr, that this most desirable event may be
brc vglit about at a still earlier d ay.
T.Ve following is a satement ot the publio debt.
Jund BO, 1806, exclusive ol earn in Treasury :
due la lull.
171 .219 lOU'VO
6,042,000 00
722,205,500 00
265,817. 700-vtl
18,415,000 00
20.fC0 0M)0O
Bouus. PsaiUc liallrosa. 6
per ctnu aus la lb!) 6 aad
1H(6
Bonds 5 2H s, 8 D r cent.,
due In 1H32 1884, end lheS
Bonds t per cent., due in
1H1
D units. 0 per cent., due In
iteu
fonds, ftpcrcoi t. , due In
U14
onas. 6 per cent., cue In
urn
Bonds 6 per cent, due In
1W8 ,....,.
Bor(lB,""pe'r"c'eit.,'.iUe In
IfcOl
Confound interest notes,
due In 1(67 and 18(8
1'30 'treasury notes due in
1861 and 1868
Bonds, Texas Indemnity, j
past due. not presented..
Bonds Treasury notes etc.,
past due, not presented..
Temporary loan," ten days'
notice
Cerillioates of indebtedness,
past due, not presented..
7 022 000 CO
1 21) 221,300 00
8,908,341 80
9 415,250 00
159,012,140-00
SOO.'Sl 850-00
983 537 281 80
559,000 00
3 615 675 80
120 176.106 65
26.391 010 00
4,374,675 8.)
111,56713
United States notes
Fractional currency
(Juld ctriilleatt s of deposit
144 0 801 308 00
27 07t),87ti-9
1U.713 180-otl
433,6T',424 96
Total...
Cash in Treasury, 132 887.M911.
,.2 783 42,VH7,ivi
Statement of the publii debt, October 81 3'-J, rr 't'
$we of cath in Treasury.
Bonds, ltMOa, 5 per cenf.,
due in 11HJ4 5171 069 350'0v
Bonds, 1-KOibo Bailroad, 6
per cent., eue In lbtio and
IoV6 8.882,000 00 '
Bomls. S 20s. 6 per cent ,
due In lb82, 1884 and 1886. 823,944,000 00
Bonds, 6 per eent , due in
1881 260,324.750 00
Bonds, per cent , due In
lhw?... 18,418 000 00
Bonds, t per cent., due In
lb74. 1..... 20 000.000 00
Bones, 6 per cent., due in
171......
Kavy pension lund,8 per cu
7,022 000-00
11,750.0110 00
-01.327 43 10-1-00
ItAna S a .Ml ittiA In
lsb8.'.... 8.?30.M1-I30
Bonos, ptr cent., due in
1867?.. ..V. 7 74J.80010
Compound inteiest notes,
due in 1867 and 1868 148 812.140 00
T39 Treasury notes, cue in
186 1 and i860
124.014,300 (0
384,000-00
84 560,1 -60
Bones, Texas Indemnity,
past due, not presented..
Bunas, Treasury notes,
temporary loan, eertlti
cuws ot indebtedness, eio ,
past due, not presented,.
SO 604 9- 9-il
36 938 0971
I'nlied Mates notes ,....tH,lS 7s6 0
s racnonsi currency 2I.DN) uill-M
liold ceitiilcaiesoi deposit. . 10,oM4,980IO
428,6 10 ,775 33
Total , s2,i8i ,618 ceoTi
fash In Treasury, 8130,32b 960-62.
The Secretary estimates that the reopts for the
three quartets ending June 80, 1867, wm be as fol
lows i
Ueeeipts from customs 8110 600 Ooo-oo
keeeipts Iroin tsnds stiO OuO UO
ru....!n 186,000.000 00
Jlcceipis from misoella- . ...
The expendltttiet, acooraing to n s estimates,
will be:
Fort be civil aervles
For pensions and Indians..
For the War Department.
Including 18,(u0.vli lor
IfUUUtM!,
7 40,947-9
1262311-21
68 804 657-08
Fertile Nsvy Department. 23,144 810 31
For latere t in the publlo
Ltbt 105 581 012-00
an.nn.'iioB
l.(vlns rarplus of estimated receipts
ottr e tiuikted txpendltures of. 71 330,c56-,14
1 tie rece pti for the next flrcal ytar, cudiiig June
flfl, 18C8. tre estimated as lollows:
Krom cusM tn am 0(10 OOfl-00
f lotn Inierral revenue...,. WW.Om) net) ( 0
I lorn suns I (KKl.OnO 00
JUicceilan's sources.. iiW'.ounoO
Htnc.lKO.OOOO)
The rxrenditurcs are estimated as lo lows:
For the ch II service M W7 Man
For rem ons und Indians. 2" 3ss 4K9'M
for the Wr licrartment
Inoiuiling l4 I (W,a,o tor
boontles 110 Ml.iWl 81
For ll e Navr Deparlmcnt. 30 Ml 615 M
For Interest on the publio
acUl .. S.1,S7B Hltsj
03.W247.W1W
Lenvlng mirp'us o' esilmated receipts
over estima ed expenditures of... ......
S3 752.3.S8 6fl
In regard lo tho coinmerclftl intercourse between
the United States and British America, ihe Secretary
nil hi res to the general opinion expressed 111 bis re
port ol ISiVi, tlial iinlll our revenue system Is fully re
vised and adjusted tn the llnaneial situation of the
coiintrv, this Biihject should not be placed beyond tho
control of Congress, but should ba lull to coiicurr.Mit
legislation and such regulations a.s the Treasury De
partment may be authorised by l:w to prescribe.
Another reason for arrange incuts thus flexible Is
presented bv the uncertainty ol the political
situation of British America. The scheme of con
federation, which proposes to transfer questions of
revenue and external trade lo a single central au
thority, has not been adopted, and the opposition to
the nicisure may prevail with Ihe iie-v ministry of
Knglnnd, either to inolliy materially the terms of
the IJiiebec Convention, or to subjoin, tho vvliule mea
sure to Die hazards of a popular vole In Ihe l'ro
Tinci a.
However Ihe political problem may be solved, It Is
not unlikely thai when mo United r-taies shall have
simp Ifled existing methods, and re.l'tce I existing
tub s of taxation, so as to receive the largest amount
of revenue Willi the least burden lo Industry, ilrttish
Ameilca will lie prepared to undertake a system ol
inlilio Improvements along the channel uf Ihe St.
.nwrence and through Morihweat llritlsh Ame
rica to the I'ncitiu coast, which, by the
fiiiiiliiial necess.lies attending Its ndoptlon ami
the administration of a federal government, will sug
gest a Zollvereln, or u complete assliullat on of ex
cise and custom duties on each side of the Northern
frontier. At present, Inaction upon this subject would
i.ppear lo be the true policy nt the United istates.
Under the authority conferred by Congress at Its
last sission. the Marine Hospitals at llurliiiglon, Vt.,
ul Charleston, H. c, and at Cincinnati, Ohio, have,
been sold, mil proceedings have been taken to dispose
or others not required for service, when it shall bo
lound possible to obtain fair prices for them,
A sale has also been etTecled of the old Marine Hos
pital at Chelsea, Muss., on satisfactory terms. Tho
new hospital building at Chelsea, and that at Cleve
land, Ohio, have received such additions and repairs
ns were necessary lo put them In serviceable condi
tion, and all marine patients within practicable reach
of them have been gathered there for treatment.
A similar plan of concentrating the patients at pro
minent points has been, ns tar as practicable, pursued
throughout tliecoiintry, by which, ingot her with a rigid
adherence to the fundamental principles on which
relief should be u Horded, t he expenses of the establish
ment in Ihe Northern States have been materially re
duced, although the enlarged demand lor hospital
privileges ut the South, consequent upon the reopen
ing of that section to commerce, iu connection with
the very exorbitant prices prevailing there, will cause
the total expenditures to be somewhat increased. Jt
is hoped, however, that this Increase will be attended
by a corn spending addition to the collection of tuxes
lrom the seamen.
'1 be revenue cutlers on the Atlantic and Pact lie
coasts, and on the lakes have been diliireutly and, use
fully employed in preventive service diiring too last
year.
It was found inexpedient to sell, ns authorized
by Congress ut its last session, the vessels here
tofore reported as unsuitable for the cutter service
(Willi the exception of tho ( Vyt'ioio, tne largest of
the class, which has been oll'ered for sale, bur has not
ycl been disposed of), until their places should lie sup
plied by others. Consequently Uiev have been kept
on active uuty, ami win nutjip w undrawn until mo
small sailing vessels, eight til number, which have
been recently contracted for, shall lie completed, as
they are expected lobe, in the course of two or three
months. So soon ns these can be assigned to duly
Ihe others will be withdrawn aud sold.
On the 2d day or August lust, in accordance with the
provision contained In ihe Civil Appropriation act,
approved on the 28th ot July, lsiifl, Mr. J. Hoss
Browne was appointed a special commissioner to
collect reliable statistical lulormatlon concerning
the gold and silver mines of the Slates mil
Territories west of the Itocky Mountains: and
on the i-tli day of Heptombor last, Mr. .las. V. Taylor
was appointed a commissioner to perform the same
work in the States and territories east of the moun
tains. Their preliminary reports have not yet been
received, but it is expected that they will be in season
to he laid before Congress early In Hie session. The
well known energy ol these gentlemen, and their fa
miliarity with the subject of mines and mining, leads
the Secretary to expect that their investigations will
be Hum ugh, and their full reports Interesting and
Valuable. A copy of the instructions (which contain
an ontip eol the duties devolved upon them) uccom
pnu es this report.
( n the 3d day ot June last, Mr. John Jay Knox, a
cleik lu this Department, a gentleman of excellent
jurfcment and business habits, was sent to California
to t xamine into the condition oi the Mint an J of the
olllce of Hie Assistant Treasurer in San Francisco,
and to look utter some other innliers lu that
quarter of Interest to this department. His re
1 ort ccntulns so many valuable, suggestions that
It has been thought advlsublo to append it lo the
lepui ioi the Director of Hie Mint, l'artioular atten
tion Is requested to thut part of It which refers to
assay cilices, and their Inutility In remote districts.
II. as lie concludes, tho business of assaying can, not
only without detriment, but with positive advantagu
to the mining ititeiest, be ! It entirely to private en
terprise where there are no established mints, the Uo
vernment sh uld be disconnected from it lu such
districts without delay.
The Statistical Bureau, authorized by the ant en
titled "An uct to protect the revenue, und lor other
purposes," approved July 2S, lsi;6, was organized on
the tilib day of September last, by the aiinointmeiit
of Mr. Alexander Delmarns Director. Mr. Delniar
deservedly enjoys a high reputation as a statistician,
and it is expected thut, under bis direction, this Bu
reau will be of great beueiit lo this Department aud
to the country.
Allir putting In proper condltition Hie numerous'
bt oks relating to commerce and navigation, which
1 ave been li ansferrcd to this Bureau, the Director
will prepare reliable statistics of the resources of Hie
country and die extent to which they are being devo
lopi d. Monthly repoiis of Imports and exports, taxes,
Imposts, wages, products mid markets will also be re
gularly prepared, and every means employed to ascer
tain the progress of population und industry. The St
crelary Is happy to be able to state, although little
more than two months hare elapsed since Hie Bureau
was organized, that good progress has been luado la
the work devolved upon It.
Accompanying this report will be found a highly In
leiesting report lrom the Lighthouse Board, which
presents In a condensed form a history of their opera
tions from 1852, Hie date of the organization or the
Board, to the present time. In no branch of tho ser
vice have more skill and ability been displayed than
in this, and in none have the outlays been productive
of more i-ailsfactory results.
'J he work under the Coast Survey has boen prose
cuted during the past year with accustomed energy,
and its operations have hceiO seommenced on the coast
where they have been for some years past luturruptod.
The Inipoi tunce of these surveys was itilly established
during the recent civil war, and they cannot fail to be
of coustiiutly Increasing value to commerce. The
work is steadily advancing towards completion, and
the Htcreiary recommends lor It the proper und ne
cessary upproprtuliotiH,
For the detailed operatlonsoftlipMlut and branches,
I rtspecllully leler lo the report of the Director of the
Mini.
The total value of the bullion deposited at Hie Mint
and blanches during the fiscal year was .fUl7,l ti-ss,
of which t:t','2-2:t,ii(0-7 was In gold and I,7il,5hi7l tn
silver. Dcauctlng the redeposits, the amoutituI autu.il
deposits is fil.UI 1,719-21.
The coinage lor the year was in gold coin, $Js.3i:,-944-utl;
gold bars, ii.llii.ii -lu; silver coin, wWo.siiir.V';
silver burs, (!)1H,hk2 U8: cents coined, one, two. throe
and live-cent pieces, J-ii(ti,.ri7o. Total coiuage, fj'j.uiu,-TTD'-io,
Total bars stamped IO,e:.s:i7'j(i.
The gold deposits, of domestic production, were, at
Philadelphia. 02,816.616-1)4: sail l-'ruuclsco, fl7,4i,4u-ls;
New York, t8,Si7,titH; Denver, eloa.'.'si'lil. The silver
deposits were, at Philadelphia, $",0, lid SI; Sim Fran
cisco, 2a,i2 21; New York, $!I:i,1hi.
The gold and silver deposits of foreign production
were t-2.M7,674-76.
The amount of gold coined at the Mint ut Philadel
phia was vlo.lKMi.li-l.,: ut San Francisco, l.217,!joo; of
silver, ut Philadelphia. 4!tUW,H14-n': at Suu Fraucisc j.
T'.'i,ti,-o: of bronze and nickel and coppers, at Philadel
phia. OBMI.itM 60.
The luw enacted at Hie last session of Congress, pro
viding for Hie reorganization of the system of u,-
firauscments al Ihe port oi New York has been carrion
mo ( licet. So little lime lias elapsed since the ue
Board was orgunlzed, thai the necessary reforms have
not yet I een consummated: but they iiave been under
taken with so much energy und Judgment by the Ap
praiser, Mr. Thouius MeK I rath, that the best results
are confidently anticipated from the reorganization,
BecenL calamities ut sea, especially the disaster to
the steunislilp Kin iiiiifj ,tai oil the third of October
lust, whereby two hundred und llfty lives were lost.
Indicate a necessity for the enuctment ot J ulioiouh
laws lor the government ol' our meicantile mariim.
with especial reference to the more complete security
ol i avengers, it is believed thut In this particular
we are far behind some otlior nations; and while this
is tl e case we shall not attain thut muritime strength
and prosperity to which we should aspire.
An inquiry Into the cause of the disaster to the Exn
lull t-tu; made by Captain V, M. Mew, under Instruo
ttoi s from hils Department, elicited several facts, to
wl.lcb earnest attention is Invited, showing us they
do the radical delects in existing laws, and indicating
the legislation required lo prevent lossof life und lo
enhance the value und security of property in ships,
A cony of Cuptnlu Mew's report is herewith trans
mitted. The attention of Concrress is respectfully called
to the accompanying Interesting reoorts of the
heads of tne respective Bureaus, ail ol which con
tain valuable Information and suggestions, and indi.
eate the satisfactory manner in which the general
bni-iness of the Department isbelngeonduoted under
existing laws and reflations. The eOioiency of all
the bureaus wou'd. however, have been greatly in.
Cf-aoed aud the expends thereof wou:d d lib J
i svobie i reduecd) bv ilin pu'a-'o ol the bill lor
tin ir irorran ration, wlncli was uncior consider bin
t the lost tffsinii Ihe inaoli ucry ol tho Depart
merit, iullicifiit lor 1 tie promp' and proper prioim
tire of the tub 0 t tisiiicss bnlure Itie war, is In
mil cli tit l ow. Tho lMireatis need rcoriramzatio i,
ai d justice snd eiononn demand liigacr coinpon a
non lo flicets siid cleriis. 1
Ihohecie bit is under ob'iBBtloni to thoodlCTS
nd clerks ol tho Department for tho verr satisiac
iciytnsLDcr in v. Inch, with few excep ions, thev
have, dunii? the psst yesr, pcrtomiud their impor
tant nd responsible dut rs
Hcoh McCtTtLOCH, Pecrefary.
Hon. Fchnfler Collsx, hpesker ol the House of
Krpiesenta.tives-.
II KPOHT OF TUB COM M Isjsl IO.N R 1
OP IMTERSIAf IlEVKNt'E.
'InBASfltT TlEPARTMEVT, OfPIC O? IXTEBNAL ReVI
nck, Washington, Kovomber30 1868 1 bars delayed
the preparation ol my annual report lor the Oscalycir
1866 somewhat psst the time when -iqulred by law, In
oider to avail my scit ol the latest returns from tho
officers of the several collection districts, and to pre
sent so far as possible, some cf tbe results ot the law
as amended by the act of July 13, wtilch mainly took
effect on tbe 1st of August last.
With the slng'e exception of the relief of parnfllne
oil and ciude pelro'eum from tax by the joint resolu
tion ol May 0, 1866, the receipts ol the last fiscal year
were from the law as amended by the act of March
18(5 For the first time, therefore. In the history 01 the
cfllce, the tabular statements comprised In Its annual
report substantially exhibit tbe proceeds, from various
soutccs, of statutss existing through an ent're yes
Ihclr aggregate smcunt Is considerably lo excesi ot
tbe estimate at the date ot my last report, and, as I
have reason to believe, of the estimate of others who
had given ihougbl to the subject and were mosc san
guine of the successful operation o' the law lhii
ezvets came largely from manufactures stimulated by
the opening ot e out hern markets and irom cotton, o.
which tbcie was a greater supply than was anticipated,
lie amount ltsell Is not far short o. the rcvonuelor
the two ) ears next preceding, and very considerably
lu txcees of the Brltl-h revenue lor the year iK6j from
customs, excise, sumps properly tax, and post otllco.
Indeed, the entire revenues of tbe empire exceeded
those of this ofllce only In the sum of twenty-two mii
lk n dollars.
It cannot be denied that the payment o' this ennrmnm
tax has pressed beavhy upon a 1 chisses ot our citizens:
but thev have been encouraged bv the reiiiirii,run,.j
that nut oiny were the current expenses ot the Uovern
iin ni doll aj ed thereby, but that the national coin In
cut red lor tbe preservation of the national lile, was th.is
graxually wearing away.
1 have ihongut it advlsab'e to present a statement ol
tbe aggrt gale receipts ot internal revenue for the past '
year, and ot their priucipa1 sources lu connection
with a like statement lor t ie years 1664 ana 1865 that
tomparisoi s may be made of the proceeds ol oiilero, t
laws.
AOORBGATl BKCEIPTS
The atferetate receipts ol Intornul revenue weie for
the year
lft4 1.7 148 74HS2
1615 211,12tl,529 17
1 U 310 IMN 064 J 7
'1 he amouuis Include drawback upon goods exported
and amounts reiundeu as erroneous, v assessed and col
lected but are exclusive of ihe direct tax upon lands
and the duty utio' the circu atlon and deposits of na
tional banks. These amounts are as to. lows:
Drawback. Ain't re'undei.
1(64 6s7 4;il-91 tj'Jj
1W 69H6S--96 422 73 ah
1H66 71)8 666 73 514,644 4?
KFCKIPTS ROM SPECIAL SOOBCE1.
The amounts received from several ot the most Im
portant sources oi revenue are herewith presented who
sucb explanatory remarks as are deemed necessary i
Banks, 'trust Companies an" eatings Institutions.
14. 1665. l&M
Dividends and addl Wm :
tious to surplus.. el 577 010-73 83,081,209 65 84 186 023-72
(uxuctlon 2,066 9(16 80 l.t)i)3 6ul 64 9t)t) gzs 11
Deposits. 760,123 51 2 043,641 68 2 0s9 6363
Capital 9eH.3't7"J8 374 0:4 11
During the J ear 1864 Ihe tax upon dividends was three
per cent .while In 1665 and 1666 it was live per cent
The tax upon ciicula'iou and deposits was Increased
for the last two years. The diminution ot the receinis
Is due to tbe conversion ot the stste banks Into national
associations, which pay ihe tax upon their capital, cir
culation, and deposits to the Treasurer of the United
b laies
Capital rtas first taxed by the act ol June 30. 1864. 1
hailuoads,
1864. 1865. 1rc
D'vldends B27 8i3 38 $2,470 616-89 $2 21 5SJ4-S
interest ou bonus... 56 WW 19 647,663 61 l a.v?miM
'Ibe receipts lor 18a4 weie from the tax at three uer
cenum: those lor the two subsequent yearsatflve tier
cet turn The law of June 30, ls64, lirst imposed a din v
upon profits carried to the account of anv lund, or used
iu cons rue lou; and tbe receipts lrom that sourca u,
included in Ihe dividends ol 166i sal lt-68.
ltiSUBANCE COMPANIES.
1664. 1865. 1861
Dividends and addl- 1WJ' 1
Hons to surplus $443,360 17 7t4 668 38 a767,233-i
Pieuiiums and assess
ments 523 582-42 961,6(12 09 1 160.722V3
Hie luxation ol dividends of insurance compsuies
audng these three years ws tbe same as that oi bungs
'I he tax upon the iross teceipts ol pretn'ums and as
sessments was one per centum tor the year 1864 ; altur-
wards. It was one and oue-baif per centum.
SALARIES OF l'EKSOf-H EMPLOYED IN TUB 8EEV1CE OF THE
tMITEU STATES.
J6 1 705,134 Ii3
1865 2.86 3.13 37
16J6-... 3 717.304-60
'1 he tax was three per centum 'or the vear 1864, sub c
quent y bve. and was uniformly imposed upon the ex
cess ot compensation above the rate oi six hundred dii
lars per annum. 'Ihe Increase lor tne yesj l-sjj
above the previous year Is in part due lo ihe three
moi ths' extra pay allowed to those houora
biv ditchared irom the mliliarv and naval service tbi
late leti.cuiouts of many dlsbutslng ofhcors. ian l th
amounts paid as prize money for vessels cant Jed pti -i
to but adjudicated upon during that year.
REVEMUB STAMPS.
W 5,8T4 P4" 1 .
Ib66 lit 044 37;j ,
'i he receipts of 1865 were Inorea.ed by additions to tb
stamp schedules under the act ol 1864 and those of Mi i
above those ot 18(5 bv the use ot stamps In the titutc
prior to that time In Kebelllon During the last yet,i
the sum ol 1,702 442 63 bss been received lrom the sale
ot one cent siaiups and that of 03 603 465 82 lot staiinx
lrom special diet ior matches, perfumery, cosmetP-f
medicines, and other proprietary attio es. Ibedou' le
pensltv iinaoscd by law is a grcai security to its laith
1 ill observance. Because ol tbe Invalidity of an un
stamped Instrument, the parly recelvlnr It, and to
whom It may be of value, is likely to Insist upon the
attachment ot tbe appropriate stamp. It Is this penalty
upon toe receiver which especial y enforces the re
quirements ot the statute. I believe tbiyhave been
more genera ly regarded duriug tbe past year than In
any one preceding.
ARTICLES IN SCHEDULE A.
j; WS20,28V35
770,061 7')
It66... 1,602 76 6
Go d wa cbes and piano-lortes were added lo the
schedule before the annual returns were made In 1865
andlnl6C6 426 557 17 were received from the former
and ftom 'he latter 4i 3,572-27. The rccilpls of the year
1668 were but slightly affected by be addition, as tlicy
Ino.ude but a ver small portion ot the proceeds of t bi
annual list of that jear. The aunuul llsi of May. IHii't,
was mainly collected after Juno JO in and increased tue
;celuU ol tbe flf cal ) ear i860.
LICENSES.
1 , 07,145 3SS 11
1866 , 12,508,681 vii
1866 18,018.713-
Ibe Increase oi receipts in 1865 was due to tho ln
cteased classes ot persons subject to charge under the
act of 1864; tee Increase ot the license duty upon seve
ral kinds ol business and to he reassessment of whole
sate dealers u ider the same statute 'ihe Increase In
1K66 arose especls ly from the operations of the law ovo.
thai portion oi the South irom which, prior to that
time, it bad been shut out bv the Bebelilon.
IKOOUK.
014 019 270 58
f6 20 57 3 )6 in
166 ; 60 804 I485
lne annual hat, so called, comprises schedule A,
llccu es, ami Income
i he recelp's lor the fiscal year 1846 were mainly from
tbe annual asses-meuts ol ls63 opon the income oflsoi
Ueeeipts or 165 were from the Income of 1663, and t loie
ot 1666 largely .from thai of 1664.
I have endeavored to ascertain Ihe precise number o.
peisous who were assessed ior an Income-tux iu the
annual list ot 1866, but the assessors' reports, especially
those of the Pacific slope aud other remote dlstrlo s,
have not ad been iccelvcd
'i he ceuntrv is now divided Into two hundred end
toity cn lection districts. From one hundred an I
eighty-live of tbetu ihe desired return havu beei
received
Of the 036i'53 440 81 co lecled In the United States up
to ho ember first and reported to this ottice by h
seveial collectors $i4 708 726 16, or noar.y elghtr -seven
per centum of the entire amount was assessed in then
one hundred and elghtr-Ove districts: aud ot the per4
sons who were assessed in these districts 190 Is.) re,
tuiued au Income of less tban one thousand do iarJ
i62 613of more i ban one thousand and not more than
five thousand dol ars and 81 106 of over live thousand
dollars. These sums were all In excess oi s.x buudied
do lars exempt bylawtroiu tuxalm 'I b'g ratio wilt
be ch-nged somewhat when the iu I returns are u a
greater nropor Ion of the larger Incomes are acquire I
lu the older Bta es ,
liie wboe au ount received from the tax unon In
comes slLce th passage ot the law of 1662. ad iuo ud
inu ilie collecllous during ths present tlso year i
a ready reported to this olllce. Is 0164.668,018-05.
1BOX AtlD STEEL IN TUB VARIODS VOBUS Vt'UlCU AUK
tPECiriCALLr NAUKO IN TUE LAW.
186' . 1,8I4 16? 49
1st 5 9 218,81)6 6:1
M6 13,78,131 3
Tbe lax upon these articli s was Increased at every
sessiou ot Congress until the last when It was large! v
t, Cueed, The luceed reuelpts weie due no, more t
Ihe Increase oi production than to the additional
number oi articles made taxable aud tbe Increase of
iu oiHieJi upea uiose pievioa jy igitut.
F.I H AN D COAb OH.
M.2M 328 M
8 "17 212 77
ft H17 S'lO'l))
W4....
IHIP...,
11-66....
h linen petro eum pmd ten cents ser galhin, anu i is
tli edcealoil eight cents, uutli Juno ;)il, Irdl, whoo Hie
rates wtre respective y cbunged to twenty cen s ana
li tt i n tents.
'1 be rt celn s from these articles It will be seen, nrp
rsphllv advancing, Indicating their largely inureadug
consiimp.ion.
C!0 VBS AND CHRBOOTS.
1WI 12M42I7')
it65 3 l7 47'i 5-i
IHiC 3 474 4IIHI
l uring His year 1H(,4 and or ten months oi t ie jour
1K5 the lecelpls were, irom sprrldo i axes, grsdua'ad by
the ditlerent values of clgnts. I tie.- taxes were Ismely
advanced in lHn4. and hv the act ot March I. Iii5 a unl
fi nn it ( was Imposed ot ten do lars per thousand I he
leci I U stter Uay 1st oi that jear were ainiost entirely
lrom that lax.
CrLWl);0 AKD 8U0KINO TOBACCO.
:k.... 7 0s,J4 74
18i 8 6l7.tr.O uj
,666 12,311,9.1 l)
'Ihe tsx uoon sniosing tobacco was inuiesscd lrom
five lo twenty tl- e cents per pound In June, 1664 an to
thirty five in Usrch lsiift, except upon that niado ex
cluslveif ol s ems which remained a . twcuiy-llve ccm.
rlne cut chewing and )lu mainly paid tlltem cen s
per pound antll June 18(4: alter that, thut; -five, until
March, 1st 8, when tne tax was Increased to torty cents
The production ot taxable tobacco In 1st,.) was
23,660 056 poundi-t that ot 18h4 was 63 372,426 pounds, of
which more than lOXOotwO pounds were returned in
June to avo'd the audltloual duty under the new taw
then i-hoitly to take t (Tect : ihst oi .665 was 36 610 0
pounds; and that ol lt-66 35 748 351 pounds.
FERMENTED LIQIOES.
1)64 02.23J 710-73
1H5 3 6r7 lSltiO
jtS 8,155 140 44
1 uilugthe year i Hi. 5-1,6 the tax was one dohar pur
barrel, 'ihe collections t lor ten months oi the year
I us.-4 were at the rate o sixty cents. The increase (or
the vear 1668 came both Irom Increased consumption
and' in ui ,iupiovid thorouiihncs in the ojieiatlou of
th e law.
PISTII.LKO 1-riRITS
1f.R4.. 2S;" 7D7-81
ISM , 15t)!)5 il)l 66
28(6 .l.,6i.4 li
in 18(4 the tax was twenty cents per ga'lon, until
'. aichOo. that tear, when it was raised to sixty cents.
FiomJulv 1. 18;4, to January 1,1868, It was one do lur
snd tiny cents, auu aiterwards two dollars.
.vucb of the consumption ol 1665 was or spirits dls
tilled in privloks years, in anticipation o Increased tax.
Hie receipts duriuv ihe several uiouths of the lust fiscal
ycarwiress loiiows:
July
Audits'
sepun ber
October
oveniber
Dcceu-ber
Januaiy
February .,
t352 25!-11
287,457 8-t
755 66i-flri
1,366 025-J3
3 .167 165 NO
3,763 251-71
8,9 W 301 01
, 3,654 700 47
2.051 34 1(4
3.HH6 170-27
March
Aim
yi
3 036 054-60
3,144,I86M4
iuiie..j
DHiiiig the current, nscat year tne receipts were iu :
July. 3 1118.838 31
August il 891 645 40
heniember 8 051 227 50
Octiber (solar as repor.ed) 2 502 043 32
'1 bese amounts ate all exclusive ol tbe tax upon ipirits
dtsillied trotn ai p.es, peaches, and grapes. From this I'
apiiea s that the total receipts from distilled spirits tor
the tear irom November 1, 18(jA, to Kovembei 1, lf6ii,
were 37,627,595 45. , M ,
1 here is probably no tax Imposed by the law which Is
so largely evaded by those subject to Its prov.slous ss
the tax upon dlstd ed spirits. Jior Is there any irom
tne evasion ot which so large loss Inures to tUoUov
ernment uule.s It be that uuon income.
It will be obsetved. however, that there has been a
very considerate Increase in the monthly recelp.s
from spirits, arising undoubtedly irom the tact that the
etock which bad accumulated in tbe hands ol dealers
has been consumed! that the demand is now. there
lore, tor produc Ion which pats duty, and that the new
law bssadvunlages which were wanting in the old one
EXPENSE Of COLLECTISO THE BBVENUK.
The different ways In which accounts of the various
Internal levenue otllcers are adjusted aud paid make i t
inipotsible to give a per eeuv accurate statement oi tho
expense ol assesqngand col ecting the reveuua ior tho
year .865. Many expenses Incurred during the yeai
were not paid unlit alter its close aud large amounts
were paid on account ot expenses of previous years
aflJuHtd lf.st year. .
fc roin sn ei animation of the allowances made to the
olsDurslug olhcers. the pavments on account of this
ollice. and the sutements of assessors' compensil ton
and expenses, mace bv the Fifth Auditor ol the Tr-a
etirv, ihe expenses of the past llscai year appear to be
as ioiiowb :
Afsessors' compensntion snd expenses
Assistant fpuMti' compensation
Collectors' compel: sauou and expenses ...
Superintendents oi exports anu urawbavk
Keveiiue agents v.'-'-i,-
bpeclal agents assigned lo this ofllce
Kt venue inspectors
Special revenue commission....
Otllcers and cierkslnthls bureau
Hiamps and cotton tags
Otter Incidental expenses of this olllce. ...
Commission on sale oi stamps.
. DOS .070 (19
. I OoS.tMlll,
,. 2 161,710-14
Id 714-U.i
35 4u 74
17,226-8-J
,. 121018 70
22 08 1 60
. 277 672-71
. I77 6-I9-65
40ICIJU2
, . 7s6 5 16 01
1 be arti.-les named In the free Ht of the "act"oirJuTv
last were exempted rem tax irom and alter the passage
ol the act or the thirteenth day ol that month, .he
reduction oi tax upon other art'cles and objects of taxa
tion which that law provided, took eUect on tho first
day o; August loi'oalug. The taxes which accrued Dur
ing August and September sere respectively pavab.e
In the months of September and October I have en
deavcrtd to secaro lrom the several collectors their
abstracts ot eol ectlons during those months. In order to
exhibit as lar as possible, the product of the new law
lot August and Sep. ember ti e first two months o Its
operation in com ection with that ol the former statute
during the same time last i ear. Seventy-nine of tho
luurbunereda d eighty abstracts due have not b en
received: but I am able to Indicate very nenrl? what
pum the total rece'pls will roach by giving together
with the receipts reported as compared with tho re
ceipts from the same districts last year, the to at re
cciiits irom all the districts during ceptembor and
October, 166T5:
rki'imd rrritoi
5a o o
C w -O
Ch e & s?
tfs lis- i: ;
sir a- oa-
' iisi 2?l
"$T,7I4 301-61 3 634,310 24 3 7:5, 8VJI
1,642 Ml M 1,068 053 7. 2,045 931-81
1 059 2 K 1 .836 508 46 1 ,985 ,038 98
1 044 809-60 2,420,713 22 J. 368.301 01
1,078,271-56 , 769 060 43 1 898,6!:ri)J
I I
69 890 26' 12 631-87 14 315 41
8 657 170 62 1,3120.' 62 2,121 687-20
643,994 96 904,872 13 1,139,961-08
662 870 4s 481 043 70 867,581 75
2 023 608 4 1 729,421 66 2 082 203 61
Mlbi6 4t)! 114 1i5 4o 118,782 0.1
I
823 818 20 1 775 449 09 1,956 817 2-J
716 402 62 881 li91-27 B 6,07o "6
8 404.070 16 6.0411,242 86 6 15,860 li
n S72,08-2 23 966 8'5 41 )27,6a 49577
11,003 808-1 01771 537-2 01 056 612 OS
Clothing
( loth and all
textile laoilcs
ot cotton
( loth snd all
text le labrki
o' wool
Paw cotton....
Feimented II
quore !
Spirits dls I, ied
irom apples. .. i
Spirits distilled
uomoiner ma
terials .,
Refined petro
leum and coal
oil....
( lgars cigaret's
ai d cheroots..
Hmok'cA chew
In tobacco...
I-nut)
Iron In Its va
rious torms 4
conditions ....
Leather.
Other manui's.
Total of tronufr
A productions.
- tvasL I
Gross ice pis o
rellroads, ink
co's, etc
The tax upon boots and shoes and most wearing app i .
rel not exempted was reduced lrom six to two p r
centum. I hat upon ootton was Increased lrom tw
cents to three cents per pound, but ihe receipts were
less tntn last 5 ear because ot tne accumulated produ-t
ol previous tears, which was at that time brought to
market, 'the tax upon retlned petroleum and coal oil
has been somes-hat inodllled In Us application, tho
heavier oils been exempted, and the tax upon some o
the lighter be'ng reduced irom twenty to ten cents pot
gal on. 'ihe duty upon low-urlcei cigars has boen
reduced, and that upon those oi greater va ue Increased.
The (irons receipts l orn tianspottatlon ol properl? aro
no longer subject to tax. It will be ob.erved thattbe
increased revenue for these two months iroin die tblod
spirits, fermented 1 quois and to' axo, s'iovo thut re
ceived for Augns: and September. Is nearly ctjuiva e.it
to ibe lots which resulted during the same period from
the reduction ot tuxes upon otner articles. The com
pensation wi. not be continued, however, and tbe re
ceipts lor the asi three quarte s oi the present lisou'
year will nut cuuul bv teveral ml Huns of dodurs the
colleciions or the fame time lost year. Fro mci eful
consideration oi all ihe tacts lu my possession ho
eter. I be ievo that the receipts of the flscsl year 1 -UK
wl 1 reach the sum ei two hundred aud eight' live mil
lions of dollats (2 0,0(0,610 J.
'Ihe aununl list lnoiudes the tax upon Income, car
riages gold w a ches billiard tables, aud gold and silver
plale aud the special ux uuou personseugaged in trade
or busies Beiurns tor this list are required Irom tlm
tat psyer en or before the II nl .Monday o Ma, lu each
year and the taxes are pavable on the 3ilth uav ot June
loilowlui For tarious lessons It seems desiraote th
Iheielurns suould be made at an earlier dste. The,
auiiunt of one's Ilcoiiks txcept In cases where regular .
books oi account at e kept can oralnarli' be aiore aucu
rate ytdeu-rmlned nearer tke close of the year during
which it aci ruid. Many taxpayers lucltidinif a larse ,
majori y of those eiuaged in aurlcuitural ourauitt.
have mo'e leisuio at that iline lor th ureoiratlou of
their letuinsi while many residents ol cities aud indeed
cf the wanner portion of t6e couutry generally, desire
to leave t) elr ills rlcts ior purposes of buliie4 or p e
sure beiore the annual lists under the present law cau
pass to the colleo or irom t he hands ot the assessor, 'a !
such cases no lltt e annoyanoo snd comnlalnt eve
arisen, widen the uuiost vigilance of Ihe re veins
officers cou d not fully avoid. .....
Tbe special tax is pavab'eon Ihe 1st of May, on or
More which time ihe psrtv sublet to .It li
required to register his name culling, eto . wl h
Ihe xlslsrit ussscr ot his assessment "is-
Irlc. The assistant as es.or litis afterwsnts to
make his cr itiea e to Die a"i ssot sn l eoi color and
O t i o'ieo or usual y awaits ihe pniiual list ir m the
rsscs'or Ik Icro coiiiiiitnenig his co lections Yet thn
law provides that nnv one who sliall carrr on anv bust
Hers or do an, act meMloned In the sta utn or ills
rising o-which a mrial tax Is linpo-ed, wltlioat pay
ment thereof .or without producing his receipt tor so h
pay tnent l:en rallea upon bv anv Internal revenue
ttlcer, shall lorcve j such offense, besides being llsble
to the p mentof the tax, he snbject to Itnpt tsontnent
or fine, l eilolers. loo, engsged In busli ess without pay
ment of Ibis ax and producing such rccelot are llsb, e
to i lie forfeiture oi ad tbe proicrl' which tl ey usi or
employ. It Is not known that liaiOVbl) bits arisen
by the too ilgo cus enloiceineut ot the Isw:
but wrong Is liable to remit or the revenue be
dcirnudcd. by the exercl-e nf c enionry to those
Incintd to attempt 10 violate It altogether he.
caufe I's precise requirements cannot be r
gsttled The law shouiu not make Its cons. ant violn
Hen a nrcs v. 1 ircommend, tb -reio e, that rj ur. s
lor the erntiai list. Inelud'ng ihe regisin for the an, clul
ax re r, uitlrcd on the first Mondav of Mar-bin -urii
year, and ttae tax ne mad: psyab ou the thlrtl th day
tl April fo'lcwlng. '
TEN 18R CtSTVM KNALTIFS.
The ailciltion ot t n per oentnm as a penalty fcr the
Be n-paTQient el tlio tax en or belor- a certa-n day is
rou.t tln.es a severe hardshio, Irom which tbetu Is no
le le even In canes oi sii-knefs or accident in sums
Instances lare manufacturers punctual usually In tuetr
pavments. lrom the ladureof a niah or the unexu;cte-l
aosence ol a eierk have been subjected to the p.itment
oi seTirai thousands ofdol ais
:nibarrosmeuts would oilen arjse to collectors If they
vera clothed with power to add or omit the penal y at
dbcreilon. and I believe that a penalty ol live per
centum .or negiect or leiusal and Interest at the rate of
tweive per cm turn per annum irom the time the Ux Is
pat able, will be smplr sufficient, while Irom Us greater
equity, tt will oct a-ion ie complaint.
SPECIAL TAX.
Ibe special tax ot tho act ol July 13. 1 i6, f a nurml
tnte for the l'cense tax ol ibeeinlier laws. Forevsdlns
I s pavment when due, the luw provides imprisonment
not exceeding two years and a line of not mere than
live ni ntireu ao ibis, or Do'h. wneie the imprisonment
Is never rlsiird anaiheiluo Is made the nooiins. suin
ol ene dollar on'y, as It Is represented to this otllce It is
In some Judicial districts, regardless ot circumstances,
that wblct set ms to have been consideied liy Conr s
as an offense worihv ol special pun. aliment does not
bung upon Ibe delinquent even Hie amount of hs
penal y imposed for lallure to make a monthly return
Ot manuiactures
I recommend that Ibe Imprisonment, except for vio
lation by aistlilds, recili.ers and u anuiacturers et
tobacce, tnufl, and cigars, and dea.ers in liquors, be
alolsbtd aud that be ininlu.om Cno lor lai.uru or eva
sion of pavment le fixed at ten dollars With this
charge, relief by positive enactment should be glvon
ctrtuln classes of persons against whom It has never
been deemed necessary or Just loeulorce the penal pro
visions ot the s'atu e.
I ecdlera - To those articles whloh persons are anthor
Ized to peddle without payment oi special tax I reootn
mend ti e addition ot fruits, vege sb es, pies, cases and
conlcctionery when sold by persons on toot, tans pro
tecting many poor women and chihlr n striving to earn
a livelihood, and who, lu nuniercus Instances, have bcon
subjected to auiietv aud coat.
Vtloh sae and retail dealers In liquors. The law of
18(2 dltcrln mated between wholesale and retail
dealers by the quantity or single sales. A saio ot
thice gal ons ot more at one time constituted a person
a wbol sa e dealer 1 be present t-tatus provides an ad
d tl nal test, and anv person whose annua: se es, in
cluding sales ot other mer.handls.-, exceeds 025.00.), is
v wholesale dealt r.
ibe tax upun a retail dea'erln liquor is twenty five
dollars ; that of a win lesale dealer one hundred dollars
or moie. Many dealers, whose aggregate sales are
small, may cccsslona ly sell in quantities of moro than
thre egal ons On such ale the law hupot.es ao addition of
teven.y-flve dollars It is dill, cult ,o rev nue otllcers
to ascertain in such cases when such ilatdil v hus
occurred. It is burdensome for the dealer to oay tbe
emount. 1 he aw otteu ths oi its legitimate purpose;
and 1 recommend Its modification by striking cut the
limit In quantity and leaving on y that of value or
leceipt.
Butchers are reaulrcd to pay a special tax of ten dol
lars, and are not regarded as dealers. The repeal ot the
tax npon animals s atuliK red has removed tbe rea-ou
for ihe mearurab e relief ot buioheis irom special tax,
and I reanecilully recommend thai when their annual
tales exceed the sum of 0-5 660 their tax shod d be in
creased prec eely as thut ol other dealers Is lncreusod
numbers and ga-fl tiers. These persons now pay ten
dollars en y the if, me amount which Is paid by retail
dea era. I see no reason why thev should not be taxed
up ou their sales ss dea ers are taxed, and as wlioemW
detlits wben their annual sales exceed .25 600
tquulity ot taxation is greatly desired in revenue laws.
DISTILLED SPIRITS.
The provls'ons ol law bearing npon the distil atlon oi
iplrlU were essentially do ectlve prior to tbe sot of July.
They were lnauttlo ent, even In the hands ol tbe most
experienced and vigilant otllcers, to prevent frauds,
el l er In large or small distl lerles.
Great numbers ot small Hit s lor tne Illicit manufae
ture oi rum irtm molasses, were eeore ed in the garrets
and cellars of the most populous cl les, while many
of the recognized and licensed dls. II cries were run bv
night, their propitetors keeping fraudulent accounts of
taeir consumption oi grain anu oiuer vegetso e sub
stances, and their production oi spirits ana .the ealo or
rt nioval thereof to bonded war, houses.
In every distillery, the dal y production of which
was one hundred gallons or moro. assessors were In
structed to place an assistant, whose duty sbou d be
to record the ren oval of all articles to and irom the
uients ot the law were tully compiled with, collectors
woeurgcato unusual watcrmtuess rur the mluor and
unlicensed distilleries, and everything was done which
was be.ieved lo be valuable and wh'ch the law would
authorize to check the irtnds, but without the desired
seccese. Ibe new law baa more productive poser
than the od one. Its punitive prov sions are ru-re
numerous snd stringent! and the withdrawal o tne
spirits from toe actual and exolusive possession oi tholr
owner, lmiredinteiy upon their disti laiion, 1 have no
doubt, wl 1 be oi advantage to tbe Government
It requires a man ot tried Integrity lo resist hs flat
tering temptations of a corrnp distiller, 'fen thoutaid
dollars adroitly and wickedly expended may bide the
manufacture oi a thousand barrels of wines which
shou d yield a hundred thousand dollars for the pub lo
levenues. It an inspector has forgotten his duty iu a
sintle Instance, be is In the power of his purchaser tor
all subsequent transactions, becoming his constant pro
lector, and his ready witness agamst the Oo-eruinent.
Until tome sort of metre Is lound which, while the
still Itself is utder ibe locks and sesli of tne Oovern
ment, sbali Inial iblv register the dis II atlon for the In
spect cno two or more olhcers, each to be a check upon
the other, trust uinst moro or less.be reposed in a
single man. 1 recommend, however such modification
oi the law as will authorize the col ectors to in er
chauge the Inspectors ot the several oiatillunes within
their o'stricts at pleasure, so i bat several peiso is may
from time to lime and at Irregulur interval, have
charie ot each distil ery thus to some extent testing
the falthluiness el each other, while together ihey may
prevent ihe consunmia ion ol frauds by ihe munutao
turer. Ihe Fecrcta'y of the Trcastirv will not understand,
from what 1 have written that I mean to depreciate
the usefn nees or tho reputation ot those who uro now
employee in this Important branch ot the service I
only speak ot the ilabl lty ol their posit ion to abuses
aud became of the occasional di-covery ot coir ption,
and the pain ul rumors constantly received at the De
paitmei t, advlne how their services may be made more
profitable and the credit of the honest be saved from
s- crltlce or suspicion The Government owes protec
tion to Its just distil ers. and un ess they are saved
irojn onstant loss by the low nrlco of II iclt whiskv.
their business wilt pass entlielv into tho hands of
thcee striving to accumu ate lortunes by robbing the
national treasniy.
COTTOH.
During Ihe continuance of tho Kebelllon it was, of
course impracticable to assess the tax upon cotton la
the districts oi its preduction. Its assessment where
ever lound was anomalous, but was necessary. At tae
last session ot Congress no Inconsiderable union nt of
time was spent, by the committees having tbe subjoi t
in charge. iud,vlsiug a method of taxation which
should Be somewhat analogous, at least, to existing
provisions lor o her taxable artio es, and which suould
be safe lor the Government while It preseived ihe lights
oi producers and shippers. Tbe plan adopted shows
the unobs-iuctcd movement oi cotton lo uuv collection
diatilct ot Its production, but permits its re
moval Irom such Glottic t only noon pavim-nt of
the tax, or under the penult ol the assessor
upon be execution of s tch trauspor ation bonds or
other security., and in accoidaooo with such regula
tions as ihsl be prescribed by tbe Co.mu ssioaor oi In
ttmal Kevenue. subject to the approval ot tho Hecre
tary of ihe Treasury. It has not been doomed piacti
cuble to prescribe other security than transport iiIdu
bomls, and no other has been proposed to the otttoa.
Ihe regulations ol tbe department Issued at ihe tbne
the law took etlect. provided, as do tho e covering the
shipment ot dls; ltd splr.ss, obcco and cigars, thattbe
transport-Ion bona should be givon to tho collector of
the district In vhhb be purinlt is ,obe issued and where
the cot on is produced. Tbe experience of reveiue
otl.cera and tax-payers alike had proved this praCt'ce
to be ordinarhy the most couve tent and desirable.
Il soon became apparent, however, that the Hues of
tbe collection districts, es uhilshed without teganl to
tbe chan e s of tiado were shutting out whole counties
r in their natural markets for o-tton, aid liuponug
burdens upon small p sitters unwarranted by the ad
vantage u tbe revenue, aud so isre y impoJing ship
ments, too, ss lo be a source ol annoyance to growers,
transportation companies and factors.
'loremtdy the ex Is tiug evils, it was at first proposed
to request the Trcsldun' to exercise the authority wl h
wit ch he u clothed by law to chaugo the iinof the
collection districts, buch chsuge, however, culd
turn If h only partial relief, as each collection district
must be coi lin-d lo a slrglo Utate, and au al.eration of
the lines so as to Include less than al, the cotton-growing
Mutts in a single dUtrici wou d on y create new
sources ot complaint, or make the operations of tuo
luw suiarently more arbitrary and unequal.
lt was tor Hils reason, aud the dltposl. ion prevailing
among all the otliceis o, the Department tn remove,
so ar as consistent w ith the law and the protection of
the 'J rea-urv, ai obstacles to theordtnarv and natural
translerol cotton. Iliat In October lust auu? emuntary
regulafiotis were Issued. These It is be leved, were
luily authorized uticlir be p an iroouimended bv thn
comiiiitiecs and approved bv t ouress giviug disore
tlouury power to 'he tiecrolary o the roasury and
tlie oinmlssioner ol Internal Kevenue upon a l rant
tors to w hich tl ey relat 't hese refutations, in addi
tion lo the tormer and without tholr repea'. allow a
contluuing oouu to be given In Iho reooiviu lusad
of Hit) slilpplng d strict, and tiie removal of cotton
unCerthat bond upon ibe simple permit of the 4
sesior Ktcurity n ay now be given by toe holder or
the tactor. aud the cotton web bed and mar.td by the
(ioveiniiicnt offcer In either district, at Ibe choice of
tbe partv in Interest , .
From Into. inatlon received from various souroet and
dil'.eient points in tne tsouth. I am hajpy to report h -t
Ihe proper and convenient assesmuent of tax uooo cot
Ion seems now to require lew. It any. chances sit'ier o
law er regulations, .- i i
CIQAB4.
Ibe fas of ten dollars per thousand opon all domestic
cigars mi pi rid bt Hie act ol March S. P65, was more
iii.iiern ly pa d than :ho tax tit der any previous 1 svr.
Ft w er c gars cfcsped taxation and there wus no oppor
tunity lot irsud when t-eirfai. uuu.boi was returned
to the assrsMir.
Ihu ditlercnt qna I lea of tobacco and tbe varvlng
curls 1 1 iiianuiac. ure in ilitlorent D irts o.' the couutry
lnt! need a change at ihu la t s nun of ( oiigress lu the
n.ode of taxa Ion with which 1 believe neither the
r, anu acturers nor the revenue olllce s are fully
satisfied.
ll w In he cb'erveil In tho;npn Icatl n oi this law, that
11 ilie e were clxars ol the market value ot tlCeeu dol
lars they would be subject 10 the speciflo tax of lour
coiais and the ad valorem tax ol three tioliais loaning
seven dollars, leaving only eighi donars lor the uisnu
tne titer or the same he wou d rccnle should
bo sell tt.cin at tweivo to isrs ler thousand.
No autantsg can accrue to anv party but the
Ut.vcrnu ent ircm sales nt overlvtclve and leas than
tltten Co lars and as a consequences there arc n such
rales -iho ax bearsverv hean.y too un II ihe market
v.luo Is vey coualiiriabiy above i lieeu dul ant, the
liiernn eel getting the ina.ior part c tbe execs- until
ti e value Is twenty oolh is crimri. 'ILcie is very
great iiLcuty, too, In dctciuiinlug tie 'market
value."
I'pon oilier manufnetnrts subjec to an ad va otem
tax. il e bests o: taxation is bv.awths 'actual sulrs"
made by the manufacture. It is cl ilmei that ciga s are
sold ior nu re and pometlmes or lets than their mirket
vane." tin the other baud Ills eerta n v utterly im
practicable loraaalsiant assessors unacquainted w ith the
pi Ices slid qualities ot cl.ars. to ascert-ln what that
market t a ue Is and there lol ow thereiore nuinoerlcs
Irauds and great inequality of asse-sment. Ho much of
the tax as Is ad tali rem Bhmi.a be levied npon the ex
cess above twelve dollars, and It should nut be upon .he
mar act vaiue, out upon me va ue as es JuialeJ by
actual ales.
I In this connection I would also recommend. If tbe tax
Is lo continue to be emulated by reteiunce o alue,
that the privilege of removing cigars In bund be witu
(Iraan. wllh Ilie single exception o clais, all articles
whhh are removable in bond under tbe Internal reveaue
law are subject to spccltlo taxes so iht.t the amount of
duty can be Unerringly ascertained by the use ot Hie
scale tbe byoromtter, or the gauging rod - Wtuii
clters are pluced in bond. It becomes necessary or a
value to be nluced upon tnein. and as the system nnder
' which b. piled w aiehouses have been establ shed did not
cot. template Ihe employment oi competent appraisers,
' the r suit Is eonsiiim tlissatitfacilon and couipia'n:.
I Were cigars o domtstio manuiacture exported in such
quantities as to be an Importan element in our ime'gu
trade, it would doubtless be well to adapt tbe bonded
system In such wire ts to remetly tho evil; i ni since the
' 3i Hi day o JuLe, 1864, wLen a drawfaok ceased to ne
allowed upon cijars, tbe whole number oi oignr. ex-
I ported has been butatrsc.ion over two hundred an I
, sixty thoussnd, npon which tLe taxj was but O'zoses'.
In lew ot ihis small amount ot loieign trade It would
le far better to allow cigars to be exported ior Oevitit ot
1 ilrawba-k. than to make tbe needed change hi the
, bonded system.
t-bou d the lex be made purely specific as nnder the
I act i t March 3 186- no dltliculiy will arise Irom eon-
tlnuing the practice ol bonding
i In n,y last antual rcoort I re erred to the decisions of
the courts oi several States In relation to tbe cons I. u
tioDaiity ot so much ol the law as requires the use of
' stamps upon writs orot' ci process Ly which suits sue
i commenced in a court of record. As none but a psrt.tr
to such suit can carry the quesuo " to the highest aqpel
I late court, it la uncertain w hen a final and sutboti a'Jve
. cecision w ill be retcl.ed. I cannot believe that the legal
objettlons to the d-tv ore wrU tasen but admit the
pioprle ) oi exempting such proceedings, with itw ex
cetitions becauFe ol other considerations.
It Is ildmarily hoe who are agviievcd whs seeg the
I Iniervciitltn of judicial tribunals, and applica'lon to
I them for rel ef irom injury o person and estate tbould
be unobstructed.
Jto Stamps are sow requireu upon aiuunviis in legal
proccedlius. It Is claimed that a 1 proceedings are legal
which are not II egal, and It Is practical. y impossible to
Pmlt tbe exemption to affidavits tor are In rroceedings
In courts. The magistrate who subscribes Ihe jurat has
usual, no niters-1 in its validity, and as certain affida
vits not well Ccscrlbcd are exempt it lol tows that there
is a general bablt of failure to attach stamps to any
sttitaviis. I respccttully recommeud that ail affidavits'
be expreesly relieved
rales ot real estate are taxed through tbe me ofstampa
Of on ceeds of conveyance. Mortoauus tor the security
of Ite payment of anv sum exceeding one huLdreu dol
lars pa) uuty In the tame manner and to tbe eatne ex
tmt as convet antes. , .
it Is tho rulo of this ofllce sustained by we't con
sdired Knglbb decisions, tuatwheie property la so d
subject to moitgnbe the stamp upon ibe deed oi con
vey aioe sl ould be determined by the value of the pre
m scs unincumbered, this value being ascertained by
adding the amount pale for tbe equity of redemption to
the amount ot the t'ebt secured by the mortgage. I
Delleve tie: aw mould be amenued so that tbe tax upon
such conveyances sbou d be measured-by tbecon
sU'eiation or the value ot the property above t,ie In-
0UApoSwcf 'of at:ornoy to coavev real estate' Is subject
to a stamp duty ot one dohar. A like instrument ior
any other purpose ban ihat mentioned lu the statute
requires otlr a stamp ot tho value ol'tluy cents. -
teJmg ,hut lt mlky used ior the eonve-auce ot rea.ty.
, ! . ,hi .Hma dutv as Is reou.red ot an express
J fceVtor'Kti
11 IB IiCtu tnat wtieu nanaui vt puiuuiii; is iu 9UCII
warrant wt u a De eiupioyeu iuo miuireu la&suumu
be as clear'y stated as possible in the stamp schedule
I sell and us wl.aieter conveyance is made under a
power ot attorney lor Ihat purpose is subject to the
same duty ss In other cases. 1 recommend that tee tax
upt-n the power be reduced to fitly ten s
slam na. in anv ease, may be at ached In the pres?noe
of tie collector ot the proper district to au unstamp ed
lars and the mice ot the aoDtoDrU.e s tamos, tone t tier
wlihtbe Interest. In tertain cases, from tbe oay when
such stamps ought lo have been affixed.
Hie aw riohlblt ng tie sale, or exDO'ure for sa'e of
prop ietary snd other articles named In robedue C,
when unstamped as In Ihat schedule is required, has
been so long In operation, aud manufacturers and dea ers
now to horoughly understand the ob dustbins it Im
poses, that a more convenient and icady remedy ,hon
is now provlced seems cot lnappioprlste to prevent Ha
irrqueni violation.
tt I assessors, In certain cas s were authorized to decree
lor eiture ot piopuiy exposed for sale in fraud ot the
law, and collectors to sell at auction after suoh decree,
as In the case ot peddlers doing business without license
or payment ol specie, tax a more uul.orin observance
ol ti e aw would be secured without undue banlabip
upon taxpayers. Such authority would not oeriumiy be
liable to abuse If it could only be exercised lor . tola
Hods after peraonsl no Ice if liability, ,
BEPUClVO TBB NUMBER OS TAXABLE ARTICLES.
Presuming that the neces itles of tbe treasury will
allow tbe gradual teduo Ion ot taxes 1 would express
my te le that In no other way ca-i the aauie measure of
rebel be granted, both to tbe publ.o and lo revenue ottl
ccts as lu tbe reduction of the number or taxaulo artl
c es. Ihe an valoiem tax ol live per centum anon manu
factures ' not other ise provided lor,'' added to tbe tax
upon those specially named tn various parts of tbe law.
Is becouiing a soatce cl irritation and oppression. Tasst
tlon is he ru e. but, as early as practicable, should be
made the exception, ihe sou ces oi revenue, which
ought to he few mat be counted by hundreds Produc
tion should be encouraged, as it is the loundatlon or in
dlvldua and national wealth. Whatever constitutes an
element in the manufacture of another and a taxable
aitic.e sheuid itself be exempt from tax. it Is the ulti
mate product alone which siiou d bo asacsacd aud then
only bom i ece-aity. It Is wiser, too, to levy a lare tax
utnn a lew articles than a small tax npon evaryUn . It
Is less expensivo and anno lug. Fxpsricnoe is n; idly
teaching this 'esson which we might luve learned from
the olttei ua't ns I unbind aud France, alike derive)
almost theli entlie excise iux from tour or five specified
ariio es. It may not oe practicable for ns Imuirdiately
to secure irom so few sources the !aro amount which
we now require through indirect taxation, but auditions
ot eucli ariio es ss t ongiess sha Ido ermine should be
made to tbe list of those exempted as lapidly as the
amount to be derived lrom such tuxa Ion can be sa co
nduced. TBB DIUECT TAX.
The eolle ctlon or direct taxes In the tatn w"i'o.h
were laiely In Insurrection was cantlnucd tliroagb thu
last fiscal .tear and thereatter, until, under tin au
thor ty ot the lltb section ol the actot Ju y 21 IBM. it
was suspeiideti ly the older of tbe secretary ot the
Ireusory, bearing date from the 3d day of Auuus. fol
ic win g.
'o lands have been sold for unpaid taxe sin: the
suspension oi such sales by tho order ot the Secetary
of tbe ' reasitry issued May 1 7, 18j5.
The following is an atstraot irom tho repor's f the
fecial commissioners, so lar as received at ilils
oll'ce, oi their receipts and expendltu es since June ao,
165:- .
Tax, inte II eel ved ,,
States.
r st and from o her i,i.
nnnulhua si.niAni. " VJl
e- . ,.
Virginia
orth (Joto ias. ..
Mouth Carolina...
(leotLia
Florin u
Louisiana
' exas
Tennessee
424,18) 66
Sf 447 63 .
137 S67 03
82 621 84 .
8,206 66 1
213 834-12 .
126 67 1 57 1 .
2,8 811-571.
0185 61
ii',i72:52
"iVosi 33
3 7i6 81
16,064-56
11 f6i 74
10 608 42
M.087 6)
28,2 8'6i
22,6i2 to
19 656 81
FsrtUi.
In addition to the aubursetpents bj tho Commiisioners
for t-euth ( arollus, as stated above, tln-y have ex
pendeo tiO 666 01 in prosecuting tbe su vevs ot lands
ioneitcd to the United states aud assui 92 for the au,.
I port of schools established accordance With inttrac .
tions Issued by the 1'iesldeut Hept-iubcr 10 lst mr be
' education of colored and ludi,eut white children in St.
Helena par.sb, fsouth C'uroUua
The authority conferred upon the Secretary or the
i Treasury by the act o July last to suspend the luriUur
1 enilecilon ol the direct tux has been exercised, bjt still
turtbei legislation ina be necesssry to etluct me lull
purpose oi l digress In this behalt. Tho States lately Irt
insurrection aro not now authorlieJ to assume the
amount apportioned to tnem repeuuvcly nor so much
ol the same aa now ren alus unpaid. If It acre inteiided
that such asruuiptlou in grit fid ow the postponement of
tbe collection of the tax autu rlty for it sboul I be
tronttabt amecdinent 1 1 tbe law. 1 here seems to have
been no nruent reason ior such postponement If, at lis
close the collection i ,ut lntcrrup.ed and dulaiei ia to
be lesunit d. . , . . . .
h or can it be supposed that Congress designed that
the direct tax cmi inbsions with iheir full delicti
force were to be kept in session during all this petlod.
luimedlaielv alter the order ol suspension was issue),
iberoiore, aud as a preliminary s ep to closing tho coin
uilssioiis, diiectlons wire tent lo the several bodds to
Eiepare mil snd final accounts oi all theli p-oceedings.
The I ouimissioners f.ir Nonh Carotins were the first
to con pl with these directions, 'their sooouats bsve
been rendered to this ortlce accoinnatiled by iheir resig
nations which ave beeu acoepted, to take elfestoa
the lat oi December.
Htieh t utles In Ike adlu-fnient of rights of relemiKlon
snd otter pilvato rights as now Mua n sobs peno-msd
by Ihe c n uilscloners of Direct tax. may be dev tlvatt
upon soma oifcrr or ofticers of tbe ressurv Iesrt
n entln the oily of Washhnr on, tho naities in Intc-nM
being slewed under 'he dire -Hon ol sues otlrnr t)
lake evidttco In ibe several Htales
CdUitnnfil on the Stalk JUgt.) - : i