wp'Imfa$K Volume XYlI-ga 83. Lancaster Intelligencer. TUESDAY EVENING, DEC. 7, 1880. IE NATIONAL MANGES. BEPOKT OK THIS SECRETARY Or THK TREASURY. TREASCBY IEPAITMENT, t VTasuimites, U. C. Dec. 6. 1880. Sir : I have the honor te submit the following annual report : The ordinary revenues, from all sources, for the fiscal year ended June 30, 1880, were: Frem ctibteuia $ 186,522.051.60 Frem Internal revenue 124,009,37X02 Frem galea of public lands l,0IC,50C.CO r rem ibx en circulation ami uc uc uc posltsef national banks. Frem repayment of interest by Pacific Itullwav Companies.... 7,011,971.14 1,707.307.18 Frem sinking lunil for 1'ucilic Kailwav Companies 780,021.22 1,143,800.16 2,337,029.00 282.010.50 2,792,160.78 1,509,409.70 Frem customs tees, fines, penal- Fimn leeH consular, letters-pat-cntuml lauds Frem proceeds of sale et Uovcrn Uevcrn mciit piepcrty Frem profits en coinage, Ac Frem revenue or tin: District e! Columbia Frem miscellaneous be u ices 4,039,003.88 .$ 3CJ.52I5.C10.SS Tetul ordinary receipts. The ordinary expenditures for the same period were : Fer civil expenses l5,r.!(.;,!W3..M Forferoigu lnlerceiir.se 1.211,490.58 Fer Indians 5,913,457.09 Fer pensions, including $19,311, 025.20 arrears of pensions 50,777,171.41 Fer tlie military establishment. Including river and harbor im provements and arsenals 38,113,914.22 Fer the naval cstabllslinient, in cluding vessels, machinery and improvements at navy yards.. . 13,500.951.71 Fer miscellaneous expenditures. Including public buildings, light houses and collecting the revenue 11,533,691.00 Fer expenditures en account et the District el Columbia 3.272,384.03 Fer interest en flic public debt.. !iu,757,57S,ll Fer premium en bends purchas cd 2,7!t5,320.42 Total ordinary cxpcudituie-,... 207.64 2,957.78 Leaving a surplus revenue of... $ 05.83,053.20 Which, Willi an amount drawn Irein cawii balance in Treasury, of 8,031,43 1.21 Making 73.980.0S7.41 Was applied te the redemption Of bends ter the sinking fund.... Ol Iractieuul currency for the sinking tuiul Ol the lean et 1858 Ol temporary lean Ot bounty-land scrip Of compound interest notes Of 7.30 notes of 18G4-05 Ot one and two year notes Of old demand notes r3.052.900.00 251,717.41 40,000.00 100.00 25.00 10,500.00 2.050.00 3,700 OJ 495.00 73.908,087.41 Tbe amount due the sinking fund for this year was $37,931,643.55. There was applied thereto, from the redemption of bowls and fractional currency, as shown in the above statement, the sum of $73, 904,617.41, an excess of $35,972,973.86" ever the ameuut actually required for the year. The requirements of the sinking fund law have been substantially observed, and the principal of the public debt, less cash in the treasury and exclusive of accruing interest, has been reduced from $2,75G, 431,571.43, its highest point, which it reached en August 31,18G5. te 81,81)0,02.1, 740.89, en November 1, 1880 a reduction of $8GG,405,830.54. Compared with the previous fiscal year, the receipts for 1880 have increased $62, C29, 438.23, in the following items : In cus toms revenue, $49,272,010.90; in internal revenue, $10,447,703.31; in sales, of pub lic lands, $91,725.54 ; in tax en circulation and deposits of national banks, $207,471.12; in proceeds of sales of government property, $101,487.00 ; in consular fees, $142,551.32; iu custom house fees, $92,403.03 ; in steamboat fees, $12,063.39 ; in marine hospital tax, $27, 183.29 ; in interest en Indian trust-funds, $640,901.59 ; in sales of Indian lands. $272,883.54 ; in deposits by individuals for surveying public lands, $380,062 33 ; and in miscellaneous items. $880,924.55. There was a decrease of $2,930,011.71, as follews: In premium en leans, $1,490,943.25 ; iu repayment of interest by Pacific railway companies, $999,833.85 ; in profits en coin age, $132,751.89 ; in premium en sales of coin, $8,104.38 ; in customs fines, penalties, and forfeitures, $39,726.78 ; in customs emolument fees, $4,748.35; and iu un enumcratcd items, $247,903.21 making a net increase in the receipts, from all sources, for the year, of $59,699,426.52. The expenditures slmw an increase ever the previous year of $25,190,360.48, as fol fel lows : In the interior department, $22, 395,040.06 ( Indians, $739,348.01 ; and pensions, $21,655,692.05) ; in premium en bends purchased, $2,795,320.42. There was a decrease of $24,495,286.23, as fol fel fol eows: In the war department', $2,308, 744.51 ; in the navy department, $1,588, 142.10 ; in the interest en public debt, $9,570,373.89 ; aud in the civil and miscel laneous, $11,028,025.73 making a net in crease in the expenditures, for the year, of $695,074.25. Fer the present fiscal year the revenue and expenditures, actual and estimated, is as fellows : Total receipt, actual and esti mated 1350,000,000.00 Total expenditures, actual and es timated 260,000,003.00 90,000,000.00 39,601,834.48 Estimated amount tine the sinking dull Leaving a balance of 50,198,115.52 The act of February 25, 1862, amended by the act of July 14, 1870, providing for a sinking fund for the payment of the public debt, is in conformity with the policy which lias prevailed since the adoption of tbe constitution, et regarding a public debt as a temporary burden, te be paid off as rapidly as public interests will allow. The previsions of these acts have been substantially complied with.They were ex ecuted literally, until the panic of 1873, by largely decreasing the revenues of the gov ernment, rendered it impossible te meet their requirements. The deficiency en the sinking fund account is as fellows : In the fiscal year 1874 $16,305,421.96 5.996.039.62 1875.. " 1876.. " 1877.. " 1878.. " 1879.. - 1,143,709.82; 18,415,557.31 30,231,632.87 Total ameuut due en sinking lund Less the payment made duringthe past liscal year In excess of the amount required, as above set lerth 87,317,508.21 73.80 Leaving a balance still due en ac count et the sinking fund of. 51.311,591.35 Or nearly the same amount as the bal ance of estimated receipts ever the esti mated expenditures as shown above. Thus it is probable that there can be applied te the purchase of bends for the sinking fund during the present fiscal year an amount sufficient te cover the whole defi ciency new existing en the account of that fund, thus making geed the whole amount el the sinking tuna as required by law : Fiscal YeM 1882. The revenues of the fiscal year ending June 30, 1882, upon the basis of existing laws, will be $350,000,000. a Excluding the sinking fund, the csti- mated expenditures will be $259,914,882.08, showing a surplus of $90,085,117.92. The secretary respectfully renews his recommendation of last year that, with a view te promote economy iu the public service, a permanent organization of an appropriation committee ler each Heuse bi established, who shall have leave te sit during the recess of Congress, with power te send for persons and papers, and te ex amine all expenditures of the government ; that rules be adopted by the respective houses limiting appropriation bills te items of appropriation and excluding legislative previsions ; that all appropri ations, except for the interest en the pub lic debt, be limited te a period net exceed ing two years, and that the expenditure of appropriations be strictly confined te the period of time for which they arc appro appre priatcd. Reduction et Taxes. It appears from the foregoing state ments that the surplus revenue, actual aud estimated, for the fiscal years 1880, 1881 aud 1882, after providing fur the sinking fund of each year, is as lollews : Fertius year ended June 30, 188O..$27,952,O09.6 Fer the year ending .!une ), 1381.. : 0,198,1 15,52 Fer the year ending June 30. IS82.. 4,i.,v:,i.vv This naturally presents te Congress the question whether the surplus revenue ac cruing after the present year should be applied te the further reduction of the public debt, or whether taxes new im posed should be repealed or modified te the extent of such surplus. The mauy and sudden changes thai have heretofore occurred in the amounts realized from our system of taxation arc a sufficient warn ing that revenue should uetbc surrendered unless it satisfactorily appears that the surplus is iwrmaucut, aud net merely tem porary. If the taxes imposed by existing laws are uet oppressive in their nature, it is perhaps better te bear with them than te endanger the ability of the government te meet the current appropriations and the sinking-fund. A large portion of the surplus of revenue ever expenditures is caused by the reduction of the rate of in terest and the payment of the principal of the public debt, lhe reduction el annual intei est caused by refunding since March 1, 1877, is $14,290,453.50, and the saving of annual interest resulting from the pay ment of $109,489,850 of the principal of the public debt, since that date, is $G, 144,737.50. The interest is likely te be still further reduced during the next year iu an ameuut estimated at $12,101,429.50, by the refunding of bends as hereinafter, proposed. Te the extent of this annual saving, amounting te $32,539,620.50, the public expenditures will be permanently diminished. The laigc increase of reve nue from customs en a few articles during the last year may be somewhat abnormal, and the estimates based upon it may net be realized. It is a question for Congress te determine whether any material reduc tion should be made at a time when the whole surplus revenue may be with great advantage applied directly te the payment of accruing debt, and when Mich surplus is an important clement in aid of refund ing. If it should be determined by Cen- gross te reduce taxes, it is respectfully re commended that all the taxes imposed by the internal reveuuc law ether than these en bank circulation aud en spirits, tobacco aud fermented liquors be repealed. Tiic tax en the circulation of national banks is levied partly in the nature of a moderate charge for a franchise conferred by the government, and partly te furnish means te pay the expense of printing and issuing national bank notes. It is easily col lected by the treasurer of the United States, aud is a just and proper tax, whether rcgaided as a charge for the fran chise or as a means of reimbursing the government the cost of printiug the notes. The tax en state banks is of the gravest importance, net for purposes of revenue, but as a check upon the renewal of a sys tem of local state paper money which, as it would be issued under varying state laws, would necessarily differ as te condi tions, terms, aud security, aud could uet, from its diversity, be guarded against counterfeiting, and would, at best, have but limited circulation. Kefumling. A large portion of the public debt be comes payable or redeemable en or before J July 1, next, as fellows : Lean of February, 1801, 5 per cent., payable December 31, 1880, $13,414,000. Oregon war debt. 6 per cent., payable July 1, 1881, $711,800. Lean July and August, 1861, 6 percent., redeemable, June 30, 1881, $145,780,500. Lean of 1863, (1881's) 6 per cent., re deemable June 30, 1881, $57,787,250. Funded lean of 1881, 5 per cent., re deemable May 1, 1881, $409,051,050. Outstanding November 1, 1880, $687, 350,600. The bends maturing December 31, 1880, will be paid from accruing revenue. The surplus revenue accruing prier te July 1, 1881, estimated at about fifty million dol lars ($50,000,000), will be applied under existing law te the purchase or payment of the bends above described, thus leav ing the sum of $637,350,600 te be provided for. The third section of the act ap proved July 14, 1870, for refunding the national debt, uudcr which the five per cent, bends, maturing May 1, 1880, are redeemable, requires the secretary of the treasury te give public notice three months in advance of their payment. Te enable the department te avail itself of the option of redeeming these bends at their ma turity, the necessary legislation for that purpose should be passed prier te Fcbru 1, next. The live and six per cent, bends are net, by their terms, payable at a spe cific date, but they are redeemable at the pleasure of the United States after the dates above named. They bear a much higher rate of interest than the rate at which new bends can be sold. Any delay in providing for their redemption will com pel the continued payment of high rJtcs of interest; it will .make necessary the issue of a new scries of coupons te the holders of coupon bends, aud may post pone te a less favorable period the com pletion of the operations of refunding. Under existing law, there is still available for this purpose four per cent, beuds au thorized by the acts of July 14, 1870, and January 20, 1871, te the ameuut of $104, 052,200. Thcse could new be sold at a large premium, and, in the absence of legislation, it would be the duty of the secretary, when any bends became redeemable, te sell the four per cents and apply the proceeds te the redemption of such bends; but the amount of four per cents authorized is inadequate te the purpose stated. It is therefore advisable, oynew ana compre hensive legislation, te authorize the sale of ether securities sufficient te redeem the whole sum seen te be redeemable. The terms and conditions of (the securities tube authorized for this purpose have received the careful attention of this department. Hitherto the policy has been te sell beuds bearingas lewja rate of interest as possible running a number of years ; but in view of the requirements of the sinking fuud, it is believed that a large portion of the public debt te be redeemed cau be pro vided for by the treasury rates, running from one te ten years, issued in such sums as can, by the application of the sinking fund, be paid as they mature. The pur. chabe of bends net due has heretofore in- velved the paymeut'ef prcmiums,"which it is believed can, in future, be avoided by the issue of such treasury notes. The large accumulation of money new seeking investment affords a favorable opportunity for selling such notes bearing a low rate of interest. It is believed that they will form a popular, security, always available te the holder, and readily convertible into money when needed for ether investment "or busii ness. 1 hey should be in such lerm and denominations as te furnish a convenient investment for the small savings of the people, and fill the place designed by the tcH dollar refunding certificates authorized by the act of February 26, 1879. Ne ether United States bends than these stated be come redeemable prier te the 1st of Sep tember, 1891, the date of maturity of the four-and-a-half per cent, bends. The re quirements of the sinking fund prier te the maturity of the four-and-a-half per cent, bends, for a period of ten years, from 1882 te 1891, both exclusive, arc estimated as fellow : Fer the fiscal 30.1852 ycarcndmir June $41,30,015.00 45,122,110.81 40,92-J,993.2l 4s,S0 1,075.01 7,75ti,23S.0l 52,780,487.50 51,837,917.07 57,0!,8'il.9ft 53,377,019.55 01.752,721,33 Fertius fiscal vear ending June 30,18S3 Fer the tiscal year ending June 30. 1SJ4 Fertlie tiscal vcir intlin June 30, 155 Fer the hScal year ending June 3 188. Fer the lineal year ending June 0, 1887. ........................ Fer the liscal year ending June 30,188.3 Fer the liscal year ending June .", IS.-.) Fer the tiscal year ending June Fer the liscal year ending June 30,1891 520,901,707.58 It may be that during this period, by the change of our financial condition, or from unforeseen events, the government will net be able, as in time past, te apply sums se large te tli- reduction of the debt ; but it is probable that any temporary de ficiency would .seen be made geed by in creased rcveuut. This contingency may by provided for by the terms of the bends. The secretary, therefore, recommends th.it prevision be made for the issue of an ameuut net exceeding $400,000,000 of treasury notes in denominations net less than ten dollars, bearing interest net ex ceeding four per cent, per annum, and running from one te ten years, te be sold at net less than par, the amount maturing during any year uet te exceed the sinking fund for that year, and the proceeds te be applied te the payment of five and six per cent, bends, maturing in 1881. It is be lieved that, with the present favorable state of the money market, a sufficient amount of such treasury notes, bearing au annual interest of three per cent., can be sold te meet a considerable portion of the maturing beuds ; but it is better te confer upon the department a discretionary power te stipulate for a higher maximum rate, te avoid the possibility of failure. Such a discretion is net likely te be abused, while a power tee carefully restricted may de feat the beneficial object of the law. It is also recommended that authority be given te sell at par an amount net ex ceeding $400,000,000 or bends of the char acter and description of the four per cent, bends of the United States new outstand ing, but bearing a rate of interest net ex ceeding three aud sixty-live one hun dredths per cent, per annum, and redeem able at the pleasure of the United States after fifteen years, the proceeds te be ap plied te the payment of bends redeemable en or before July 1, 1881. Though the amount of the two classes of securities recommended exceeds the amount of bends te be redeemed, no meie can be sold than the beuds te be redeemed, while the alternative authorized will permit a limited discretion te sell the securities most favorable te the government. With the authority thus recommended, it is be lieved that the department cau within a year redeem all the live aud six per cent, bends new outstanding, and thus reduce the interest of the public debt $12,000,000 per annum, and leave the debt in a form most favorableforgralual payment by the application of the sinking fund without cost or premium. Resumption. Nothing has occurred since my last an nual report te disturb or embarrass the easy maintenance of specie payments. United States notes are readily taken at par with coin in all parts of this country aud in the chief commercial marts of the world. The balance of coin in the treas ury available for their redemption en the first day of November last was $141,597, 013.61, and the average during the year has net materially varied from that sum. The only noticeable change in the reserve is the gradual increase of silver coin caused by the coinage of theVilver dollar and the i redemption et lractienal. silver coin, mere fully stated hereinafter. The amount of notes presented for re demption for one year prier te November 1, 1880, was $700,658. The amount of coin or bullion deposited in the treasury, assay office, and the mints during the same period was $71,390,535.07. These deposits have usually been paid for in coin, through the clearing house, but at times, when the currency in the treasury would allow, and at the request of the depositors, they have been paid for in United States notes and silver certificates. Geld ceiu new enters largely into general circulation. Of the revenue from .customs collected iu New Yerk for ene year ending November 1. 1880, .57,475 per cent, was paid in geld coin, .00,125 per cent, in silver coin, .31,087, in silver certificates, and .11,813 per cent, in United States notes. While no distinction as te value is made between coin and notes in business transactions, a marked preference is shown for notes, owing te their superior convenience iu counting aud carrying. Many of the cur rent payments from the treasury arc nec essarily made in coin, and much of the funds held for the redemption of national bank notes and of notes of banksjthat have failcdjer suspendedisin coin. The total ceiu in the treasury, at the close of business, November 1, was $218,710,15,4, of which $141,597,013.G1 constituted the reserve fuud for the redemptieu of United States notes, as above stated. All the requirements of the resumption act have thus far been executed, aud its wisdom has been fully demonstrated. It only remains te inquire whether any further measures are necessary or expedi ent te secure the maintenance of resump tion. The secretary expresses the utmost confidence that without new legislation the entire amount of United States notes new authorized and outstanding can be easily maintained at par in coin even if the present favorable financial condition should change ; but, in order te accom plish this,, the ceiu reserve must be kept unimpaired except by such payments as may be made from it in redemption of notes. Notes redeemed should be tem porarily held in place of the coin paid out, especially if it appears that the rail for coin is greater in amount than the coin coming in due course into the treasury or the mints. Ordinarily the superior conve nience of notes will, as'at present, make a greater demand for them than for coin; but in case of an adverse balance of trade or a sudden panic, or ether unforeseen circumstances, the ample reserve of coin en hand becomes the sure safeguard of re sumption, dispelling net only imaginary fears, but meeting any demand for coin LANCASTER PA., TUESDAY. DECEMBER 7, 1880 that is likely te arise. In a supreme emergency the power granted te sell bends will supply any possible deficiency. It is suggested that Congress might de fine and set apart the coin reverse as a special fund for resumption purposes. The general available balance is new treated as such a fund, but, as this bal ance may, at the discretion of the secre tary of the treasury, be nnduly drawn upon for the purchase or payment of bends, it would appear advisable that Congress prescribe the maximum and minimum of the fund. United States notes arc new, in form, security and convenience, the best circulat ing medium known. The objection is made that they are issued by the govern ment, and that it is net the business of the government te furnish paper money, but only te coin money. The answer is, that the government had te borrow money aud is still iu debt. The United States note, te the extent that it is wil lingly taken by the people, and can, be yond question, be maintained at par in coin, is the least burdensome form of debt. The less of interest in maiiituiniug-the re sumption fund, and the cost of printing and engraving the present ameuut of United States notes, is less than one half the interest en au equal sum of four per cent, bends. The public thus saves ever seven million dollars of annual iutcrest, aud secures a safe anil convenient medium of exchange, and has the assurance that a .sufficient reserve in coin will be retained in the treasury beyond the temptation of diminution, such as always attend re serves held by banks. Anether objection te the issue of United States notes is that they are made a legal tender in the payment of debts. The question of the constitutional power of Congress te make them such, is one ler another branch of the government. The secretary of the treasury is still of the opinion that this quality of legal-tender decs net add te the usefulness, safety, or circulation el United slates notes, be far as it exeites distrust and opposition te this form of circulating-notes it is a detri ment. The fear that a withdrawal of this attribute will contract the currency is as delusive as was the fear that resumption would have a like effect. The notes would still be received and paid out by the government, and, like bank notes, would net be refused in payment for debts while they were redeemable and promptly redeemed in coin en prcsenta prcsenta tatien. As the quality of legal-tender was attached te these notes when first issued, and was then essentia te their value and circulation, the public mind is sensitive when any preposition is made that by pos sibility might impair their value, but it is their redemption iu coin that makes them new equal te coin and of ready circulation iu all the marts of the world. While this is maintained it becomes comparatively immaterial whether they are a legal ten der or net, and if by the action of Con gress or the courts they are deprived of this quality they will still be the favorite money of the people. Anether objection te United States notes is, that the amount of the issue may be enlarged by Congress, and that this power is liable te abuse. A sufficient answer is that, since their first issue, they have been carefully limited iu amount, and invested with every quality te improve their value and circulation. Every effort te increase the amount, made during a period of great depression, failed. New that theyare re deemable in coin there is no temptation for ever-issne. These objections will, no doubt, iu due time receive the careful consideration of Congress, and any practical difficulties in maintaining resumption will be met by new legislation. But the secretary ven tures te express the opinion that the pres ent system of currency, the substantial features of which are a limited amount of United States notes, (with or without the legal-tender quality), promptly redeema ble iu coin, with ample reserves hi coin and ample power if necessary te purchase coin with bends, supplemented by the cir culating notes ei national uanKs issuea upon conditions that guarantee their ab solute security and prompt redemption, and all based en coin of equal value, gen erally distributed throughout the country, is the best system ever devised, and mere free from objection than any ether, com bining the only safe standard with conve nience for circulation aud sceurity and equality of value. The coinage executed at the mints due-' ing the fiscal year has exceeded in value that of any provieusycar since the'organi the'ergani the'organi zatieu of the government. Its total ameuut, net including the miner coinage, was $84,100,172.50, of which it is estimated $62,000,000 was probably from domestic, and $21,000,000 from imported bullion. Iu compliance with the previsions of the act of February 28, 1878, during the last fiscal year 24,202,571,38 standard ounces of silver bullion, costing $24,972,101,81 (an average of $2,081,013,48 per month), were purchased, of which 21,005,5GG,4t were coined into 27,933,750 standaid silver dollars. The total coinage of standard sil ver dollars since the passage of the act, up te November 1.18S0, has been $72,847,750, at which date $47,084,450 were in the treasury. Of the latter amount $19,780, 241 were represented by outstanding silver certificates, the amount in actual circula tion at that date being $25,763,291. Since the passage of that act, the de partment has issued numerous circulars and notices te the public in which it has offered every inducement which it could under the law, te faciliate the general dis tribution and circulation of these coins. It has required United States disbursing of ficers te pay them out in payment for sal aries and for ether current obligations, aud it has offered te place the silver in the hands of the people throughout the United States without expense for transportation, when sent by express, and at an expense for regfstratien lce only, when sent by reg istered mail. Notwithstanding these jeflerts, it isfennd te be difficult te maintain in circulation mere than 35 per cent of the amount coined. While at special seasons of the year, and fox special purposes, this coin is in demand mainly in the Seuth,, it returns again te the treasury, and its reissue involves an ex pense for transportation at an average rate of one-third of one percent, each time. Un like geld coin or United States notes, it docs net, te the same extent, form a part of the permaucut circulation, everywhere acceptable, and when flowing into the treasury, easily paid out with little or no cost of transportation. The reasons for this popular discrimination against the sil ver dollar are : 1st. It is tee tyilky for large transac tions, and its use is confined mainly te payments for manual labor and for market purposes or for change. The amount needed for thcse purposes is already in ex cess of the probable demand. 2d. It it known te contain a quantity of silver of less market value than the geld in geld coin. This fact would net impair 'the circulation of such limited amount as ex perience shows te be convenient for use, nnt it does prevent its being held or hoarded as reserves, or exported, and pushes it into active circulation, until it returns te the treasury, as the least val uable and desirable money in use. Fer these reasons the secretary respect- fullybut earnestly recommends that the fur ther compulsory coinage of the silver dol lar be suspended, or, as au alternative, that the number of grains of silver in the dollar be increased se as te make it equal iu market value te the geld dollar, and that its coinage be left as eth?r coinage te the secretary of the treasury or the di rector of the mint, te depend upon the demand for it by the public for conven ient circulation. The continued ceinage of the silver dol lar necessarily involves the expenditure of two million dollars per month of the cur rent revenue, the proceeds of which must, as experience shows, mainly lie idle in the treasury, involving a large expense for storage and custody. When issued, a considerable expense Ter its transportation is involved, it is taken reluctantly by the people, and is seen returned te the vaults of the treasury. The tendency of this process is te convert into silver com the reserve of geld ceiu held in the treasury te maintain United States uetcs at par. The inevitable effect of the continuance of this coinage for a few years mere will be te compel the department te maintain its special reserve in geld coin, irrespective of the silver en baud, or te adept the single silver standard for all government pur poses. The object manifestly designed by the passage of the act for the coinage of the silver dollar was te secure te the peo ple of the United States the benefits of a In-metallic standard of value. It was for cibly urged that te demonetize silver would increase the burden of debts, and rest the value of all property upon the quantity en hand of a single metal. It was net the intention of the framcrsef the act te demonetize geld, but te maintain both geld aud silver as standards of value. This has been done for theuasnds of years ; but only by adopting, as nearly as possi ble, the relative market value of the two metals as the ratio for coinage, and by changing the ratio adopted whenever for a period of years it was demonstrated that the marke ratio had changed. 1 lie U uited States has conformed te this custom of civilized nation!,', and the constitution re cognized it by authorizing Congress te coin money aud te regulate its value. Under this authority Congress provided, iu 1793, that the ratio should be one ounce of geld te fifteen ounces of silver; aud en the 28th of June, 1834, it changed the ratio te one ounce of geld te sixteen ounces of silver. It would appear that Congress -somewhat overrated silver in 1793, and under rated it in 1834, but it is new certain that sixteen ounces of silver are net worth one eunce of geld, and if silver were coined without limit en that basis, it would eventually bring us te a single silver standard, aud reduce geld te a commodity or drive it te foreign countries a result net intended by the act of February 28, 1878. The average cost of the silver iu as and ard dollar, as shown by the purchased for the government from the date of the re sumption act te this time, measured by the geld standard, is $0,900, or in a ratio of 1 te 17.64. Upen this ratio a silver dollar, in order te be of equal value te a geld dol lar, should contain 455.3 grains. feVs the expense of coining a silver dollar is equal te the value of about five grai::s of stand ard silver bullion, it is confidently believ ed that a silver dollar containing 450 grains, based upon a ratio of one of geld te about 17.5 of silver, could be safely coined as demanded for use or exportation, with out demonetizing geld or disturbing con tracts or business, aud with great advan tage te the silver-mining interests of the ctsuntry. Upen the facts stated, it weuldl seem te us wise policy new, iu the spirit of the constitution, te regulate by law the ceiu value of the two metals se as te con form te the market ratio. The cost of rcceining the silver dollars already issued into dollars of the weight suggested is estimated at about ene per cent., or $728,477 50. Much confusion and delusion have arisen from treating as a profit the difference between the cost of the silver bullion coined into silver dollars and the face-value of the dollars coined therefrem. This difference, from Febru ary 28, 1878, the date of the act author izing their coinage, te November, 1880, is $8,520,871.45. Frem this should be deducted the expense already incurred in distributing the coin and by wastage, which amounts te $262,008.01, leaving as the net nominal profit the sum of $8,258, 863.44, of which $7,198,294.50 have bceu deposited in the treasury, and $1,060,563. 88 remain in the mints. This nominal profit is burdened with the nccessity of re ceiving, and thus practically redeeming, these dollars at their nominal value in geld coin, and of reissuing, transporting and maintaining them in circulation. This burden will seen exhaust the nominal profit. AVhcn held by the government the coins are of no mere real value than an equal weight of standard silver bullion. Te the extent of the difference between their bullion and nominal value, they arc purely fiat money. This nominal profit applied te the purchase of silver bullion would be sufficient te meet the entire cost of con verting the present dollars into an equal number of the proposed dollars ; or, in ether words, if the present dollars were converted into the less number of the pro posed dollars, the nominal less would be fully covered by the nominal profit new in the treasury and the mints. It may be better for Congress at the present time te confine its action te the suspension of the coinage of the silver dol lar, and te await negotiations with foreign powers for the adoption of an international ratio ; but, compelled by official duty te report en this subject, the secretary feels bound te express his conviction that it is for the interest of the United States new, as the chief producer of silver, te recog nize the great change that has occurred in the relative market value of silver aud geld in the chief marts of the world, te adept a ratio for ceinage based upon market value, and te conform all existing coinage te that ratio, while maintaining the geld eagle of our ceinage at its present weight and fineness. He confidently believes that the effect of this measure would be te make our geld and silver coins the best in ternational standards of value known. Already the double eagle, issued without cost for coinage, and iu greater sums thau any ether geld coin, and of equal v.iluc te any ether coin, whether measured weight or tale, is received without question in all commercial countries as the most conven ient medium of exchange. It is believed that a silver dollar of the weight and ratio of the proposed ceinage would be the best silver standard for international exchange, and that it would tend te fix the market value of silver bullion at the ratio pro posed, and.weuIdthus,as far as practicable, avoid the changing relative value of the two metals, while giving a steady market for the silver product of our country. In this connection, the attention of Con gress is respectfully invited te the opera tion of the act approved June 9, 1879, re quiring the redemption in lawful money, at the office of the treasurer or any assist ant treasurer of the United States, of the silver coins of the United States of smaller denominations thau one dollar. When fractional silver coins were au thorized by the act approved February 21, 1853, they were made te contain 381 grains of standard silver te the dollar. This was subsequently changed by the coinage act of 1 873 te 25 grammes or 385.8 grains. They thus contain 26.7 grains, or nearly 6 per cent., less than the standard dollar. Prier te 1853, by reason of the large production of geld in California, the standard silver dollar and its fractional parts had risen in market value above par in geld and were largely exported. Te prevent their exportation and in accordance with the example of Great Britain, the policy was adopted, by that act, of reducing the weight of the miner silver coin, and this policy operated well until, in the spring of 1S62, both geld and silver ceased te circu late as money. Duringthe suspension of specie payments a remarkable deorease in the value of silver occurred, and new the market value of the silver iu a dollar of the fractional coin is only 821 cents. The amount coined prier te November 1, 1880, under tbe previsions of the re sumption act, which substituted silver for fractional currency, was $42,974,931. Te this has been added a very large sum issued before the war, and again intro duced iute circulation since the resump tion of specie payments. It is difficult te determine the amount of such old coinage in circulation, but it is believed te exceed $22,000,000. Prier te the act of Juuc9, 1879, this fractional com filled the channels of circulation, especially in commercial cities, and gave rise te the passage of that act. At that date there was in the treas ury $6,813,589 fractional coin ; en the 1st of November, 1880, the amount was $24, 029, 1S9, from which it appears that $17, 815,900 has deen redeemed with lawful money. The whole ameuut in the treas ury is counted as a part of its rescrve, al though it is a legal-tender only in sums net exceeding ten dollars, aud is, there fore, net available as cash for general pur poses. It would seem wise that the excess net needed fur change should be coined into standard dollars, and that any further fractional coin, hereafter needed, should contain silver of approximate relative value te the standard coin. The nominal profits heretofore derived from this coinage is quite sufficient te cover the cost of this change. It is also respectfully suggested that the act of July 9, 1879, should be re pealed. When fractional coin is issued as r.ioney, it should be treated like ether ceiu te be received by the government upon the saine conditions as by the people, but net, like paper money, te be redeemed. If it must be classed as money te be redeemed, it should be supported by a reserve like ether redeemable money. National Hanks. The capital stock of the national bauk, ou October 1, 1880, was $457,553,850 ; sur plus, $120,518,583; and the total circula tien outstanding, $3-13,949,892. ' National banks are ergauized iu every state of the Union except Mississippi, aud in every territory except Arizona ; and the total number in operation is 2,095, which is the greatest number that has bceu in operation at any ene time. The capital stock of the national banks is $47,000,000 less and the surplus nearly $14,000,000 less than at the corresponding date in 1875. The leans of the banks at the date of their last returns were $1,037, 000,000, and the individual deposits $873, 000,090, the highest points reached since the organization of the system, the leans being $207,000,000 greater and the indi vidual deposits $253,000,000 greater thau in October, 1878, wuile the capital and surplus at the previous date were $5, 000,000 in excess of their present amounts. The individual deposits and the public, private, aud bauk deposits net deducting the amount due from banks and the amount of the clearing house exchanges, have increased mere thau $322,000,000, and amount te the unprecedented sum of $1,155,000,000. The comptroller states that the abun dance of money, and the low rates of in terest, have made it difficult for capitalists te lind satisfactory investments, aud that he has, therefore, examined the statements of the banks for a series of years te ascer tain if the banks have feuud use for their increased deposits. The amount of the leans of the banks iu New Yerk city, in October, 187ff tnd 1880, was 70.8 per cent, of the capital surplus, and net deposits ; while iu 1878 it was 05.4 per cent.; in 1877 OS per cent.; and in 1876 65.1 per cent; and the leans are new propertionably higher than at any time since 1873. The resources of the banks in the ether princial cities of the country are shown by their reports for October 1, last, te have been then mere fully employed than they were at the cor responding dates for the two previous years, although their business was net se much extended as it was during the four years following the crisis of 1873. The ratio of the .leans of the banks in the country districts te their capital, surplus, and net deposit was, en October 1, 7.3 per cent, less than it was at the corresponding date in 1875, and 5.3 per cent. less than in 1877. The opportunities for using money in this group of banks is net in proportion te the increase of their deposits, and their balances in ether banks have by no means been diminished. The tables given by the comptroller show that, during the past two years, the leans of the banks in the city of New Yerk have been extended te a much great er degree propertionably than the leans in ether parts of the country, and that the cash reserves of the banks in New Yerk have been nnprccedcntcdly low. While the aggregate lawful money reserve has, as farjis known, always been held by this class of banks, it has frequently been very close, seme of the banks expanding their leans beyond reasonable limits, and rely ing upon imports of geld and purchases of bends by the treasury te replenish their deficient reserves a The act of. June 20, 1874, repealed the law requiring reserves te be held upon cir culation, thus largely reducing the amount of legal rsscrve required. The enormous increase of individual and bank deposits during the last year should net be accom panied with a proportional increase of leans, since such increase would, it is be lieved, have the effect, indirectly, of in creasing the market prices of many rail road and ether stocks and bends largely beyond their actual value. .The banks in New Yerk city held mere than $100,000,000 of the funds of ether banks, which are payable en demand, and it is of the greatest importance that they should at all times exhibit great strength if they would keep themselves iu condition for an adverse balance of trade, and for the legi timate demands of these dealers who con fide in them. The comptroller gives seme interesting tables showing the amount of coin and currency in the country en the day of re sumption of coin pay mcnts,and en Novem ber 1 of thp present year, together with the amount of coin and currency in the tresury and in the banks, and the amount in the handB of the people outside of these depositories, from which it will be seen that while the amount in the treasury and the banks has increased mere than $50, 000,000 during that period, the amount in the hands of the people has also increased mere than $195,000,000. The most gratifying exhibit in the con ditien of the national banks is, that they are new doing business upon a specie basis the amount of geld coin held by the nation -al banks having increased since the day of resumption from $35,039,201 te $102,851, 032, which te but about $18,000,000 less Price Twe Cents. than the whele cash reserve required by law. The national banks held nearly 200, 000,000 of United States bends which will matare en or before July next. The whole amount of United States bends held by the national banks as secur ity for circulation and for ether palpates is $403,369,350, aud the average amount of capital invested by the state banks, sav ings banks, and private bankers for the six months ending May 31, 1880, as shown by the returns te this department for pur poses of taxation, is 8228,053,104, making a total of 631,422,454. The Drefit UDen circulatioe. te the na tienal banks, at the present price of bends in the market, is estimated net te exceed 11 per cent, upon the capital invested, and the amount of state and national taxes is mere than 4 per cent, upon the amount of circulation. The banks aud bankers of the country have complained that the taxes upon bank deposits and bauk capital since the pass age of the first internal revenue act, have been greatly dispropertioned te the amount paid by ether classes of property, aud it would seem that the time has new arrived, as hereinbefore recommended, wheu Congress might properly repeal all taxes en capital aud deposits, retaining the present tax en circulation. The national banking system has fully realized all the expectations of its found feund ers. It has furnished a safe currency, of uniform circulation, carefully guarded against counterfeiting, protected by ample reserves, aud promptly redeemed both at the banks and the treasury. Ne ether legislation in respect te the-se important corporations seems te be required at the present session. I'ubllc Aleueja. By reference te the table ac company lug this report, it will he seen that, since tin; organi ergani 7.ii' ion of the government there lias liecn paid into the treas ury te the close of the last fis cal year $18,570.34.4,047.03 Aud that there lias been paid out upon warrants in censu lt iiunce al nppreprlat ions made bylaw, te sum of.... ine saint same date, the is,.;i,K.)i,aii.ej Leaving uncxpeiided.charged le the treasury, thesiini of 115,191,115.43 rilii This amount, however, is net all in ac tual cash, but is made up of items as fol fel lows : Amount deposited with the states Under act et Congress approved June 23, 1830 Amount arising irem defalca tions, irredeemable bills, 4u... $28,101,611.91 2,703,931.18 201,683,830.34 235.494,443.43 A "l As the two first items are net available for. disbursement, it would seem unnecessary te carry them longer as part of the balance ; but neither of them can be disposed of without authority of law, though the amounts represented have passed beyond the control of the department, or entirely disappeared. The first ameuut was by law deposited with the states, net paid te them, and the department cannot withdraw it without further authority. The second item men tioned arose many years age from the fail ure of state bauks te redeem their notes which the government held, and of public officers te properly account for moneys re ceived by them for the credit of the treas ury. These items, for ceuvenience, have already been informally emitted from the current cash books and the monthly debt statement of the department. There are also a few ether items of like character, still treated as cash, en which no such ac tion has yet been taken. Te their amount they would further reduce the available balance en hand. A full statement of theso unavailable amounts has been pub lished for several years in the annual re ports of the treasurer of the United States. It is recommended that authority be given te reimburse the treasurer for these unavailable amounts, they being no longer under his control, though he is charged therewith, aud te charge the ameuuts te the parties from whom they are respec tively due. Such a course would take no money from the treasury, would relieve no public debtor from any legal liability, while it would greatly simplify the ac counts of the treasury, and would cause the books of the department te show, always the real instead of the apparent balance of cash en hand available for dis bursement. It will be understood that the apparent discrepancies which have arisen Irem these unavailable amounts are due te no fault of accounting or book-keeping. On the ceutrary, it is worthy of note that the amount of these unavailable items, to gether with the actual money in the treas ury, makes precisely the amount of the moneys received by the treasury and net expended, as shown by the books of the several bureaus ef-tlie department. Ne better proof of the accuracy with which the accounts of hc great liscal operations of the government have been kept could be asked feV or obtained. The ameuut of money reported en hand te the credit of the treasurer is net, how ever, the entire amount of public moneys held by independent trexsury officers and depositary banks. As fiscal agents of the government these officers and banks have held the funds advanced for disbursement te public officers, and also ether funds in trust for tbe redemption of national bank notes aud for ether purposes, aggregat ing a monthly average during the past year of ever sixty millions of dollars. Un der the existing system, by which the gov ernment practically holds and disburses its own money and that of its officers, the fiscal operations arc conducted without disturbance, embarrassment or favoritism, and with satisfaction te all concerned. Customs. The revenue from customs for tbe year ended June 30 1880, was $186,522,004.60 ; the revenue for the preceding year was $137,250,047.70, an increase of $49,272, 016.90. This large gain was due in part te an exceptional demand for certain classes of foreign merchandise, principally iron aud steel and their manufactures, which is net likely te be maintained duriug the present year. Of this sum about $42,000, 000 was collected en sugar ; $18,500,000, en manufactures of silk ; $19,000,000, en manufactures of iron and steel ; $10,000, 000, en manufactures of cotton ; $29,000, 000, en wool and manufactures of wool'; and $6,000,000, en wine and spirits, mak ing a total of nearly $125,000,000 collected en these six classes of articles. The pre cise amounts, however, cannot be gives, because the statistics are based, te a cer tain extent, or unliquidated entries. The expenses for collection for the past year were $5,995,878.06, an increase ever the preceding year of $510)95.03, occa sioned te a large extent by the increase in the importation of bulky articles. The present taiiff is but a compilation of laws passed daring many sacceealBg yean, and te meet the necessities of the government from time te time. These laws have furnished the greater part .of our revenue, and have incidentally .pro tected and diversified hOBM manafactares. The general principle upenwkick they are founded Is believed te be wise and sal utary. Ne marked or sudden change, which would tend te destroy or injure cUmm raestic industries built upon faith ttin.ttv 'i
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