[Continued from the Second Page] stall ba insufficient for the purpose, the pub < £o faith is-pledged to make up the deficien ts hut ifit should be more than sufficient the surplus shall be applied to the making provision for the comfort of dis shled officers, Beamenand marines.” 1 "he efficient and aotive vigilance ol the navy in capturing prizes, and the prompt ness With -which their adjudication has been S? , ce ° > kas placed In the treasury a fund the,income of which is more than sufficient to pay the pensions at present rates. Fur „ th®* 1 legislation is therefore required in or der that “the surplus shall be applied to the making of further; provision for the comfort or disabled officers, seamen and marines.” The subject is submitted for consideration that the necessary provision may be made - to carry into effect the pledged faith of the government. PENSIONS. On the first of November last thepension Toll waa as follows: 1 j 057 invalids, with annual pen ' ■ . .eiona amounting to - - 578,637 05 widows and orphans, annn • ally receiving - - 192,102 00 2,265 persons receiving a total an ; nual amount of 1 - -§270,739 05 ' This amount wilt be some what increased by virtue of the provisions of the acts of Jane 6 and July 25,1866. COMPENSATION OP CLEBKS, The compensation to the clerical force of the Department is small for the service rendered, and insufficient for the support, in a manner becoming thpif position, or the clerks and their .families -“ii P er s°ns who have fixed incomes are injudiciously affected by our expanded currency. With the ruling high prices for rents and the necessaries oflife, the struggle of suoh as have low salaries and dependent families is extremely severe. A fair com pensation on the part of the government to those who faithfully serve it is undoubtedly the best policy. An extra allowance, if made to the em ployes of any department, should be ex tended in like manner to the clerks in the other departments, who are as faithfal and as meritorious, and subject to the same ex penses as those who have received the spe cial benefaction of Congress. The discrimi nation which is made is not only invidious, bnt in its effect most disconraging upon those who, while laboring with equal fidelity and assiduity in similar positions, are denied cor responding remuneration. No money of the government is more judiciously expended than that which is paid to the capable and faithful clerical force in the departments;' and that of the. Navy Department I earnestly commend to the special consideration of Congress. EXPENSES AND ESTIMATES, The available resources of the - department for the fiscal year ending June 30, 1866, ■were ... - §142,291,919 40 Expenditures, - heaving a balance at the com mencement of the fiscal year of - ' - - - - The appropriations for the cur rent year amout to - Making the total available re sources for the fiscal year ;.. ending Jane 30,1867,. - 117,644,060 48 As several of the bureaus will have un expended appropriations-, which will be ample for some time to come,they have made no estimates fbr the fiscal year ending June 30,1868*- _ The following amounts were asked for : Pay of officers and men of the navy, ' - Pay for labor and superin _tendence in navy yards, - 7,976,192 00 Bounties to discharged seamen, 500,000 00 Navigation, Naval Academy, Observatory, &c., - - Magazines, &c., . Surgeons’ necessaries and hos pitals, - - - ' - Contingent expenses, Support of marine corps, Total, §23,568,436 16 The large unexpended balance in the trea sury at the close of the last fiscal year is em braced in appropriations under more than one hundred different heads. Many of these are continuous, have been made for years, their expenditure will be pro tracted through years to come, and. though assisting to make np a large balance, cannot be dispensed with. There are large amounts, however, under the heads of “construction,” “steam engi neering,” “ordnance,” “provisions and clothing,” and “fuel,” which can with pro priety revert to the treasury. No appro priations under these heads were made for the current year, and for the ensuing year . none are asked. In the course of time the appropriations would be exhausted, but it ib not believed to be in accordance with sonnd public policy in time of peace to con tinue suoh large amounts at the disposal of the department.' 11 Liberal appropriations for the naval service were made during the exist ence of the war, but the funds of the de partment were always carefully and eco nomically expended. This feet is attested by the numerous olaims of contractors for relief now before Congress; and the result’ is, that the department is able to complete all the vessels and engines contracted for before the close of the war,’ and designate appropriations to the amount of about fitty millions of dollars that can be relinquished to the treasury, or may be otherwise dis posed of by Congress. It has heretofore been deemed essential to correct administration that there should be annual estimates for proposed expenditures and specific appropriations therefor after examination by Congress, and this menthas no desire to evade this annual scrutiny. Tan BUREAUS. The reports of the several chiefe of bureaus and of the colonel commandant of the ma-r eo /R?. “J® appended, and are referred to for full information of the operations of' their several departments. A brief abstract only can here be given* The chief of the Bureau of Yards and Docks giv?a in detail a statement of the repairs and improvements at the navy yards, the present condition of the work and his views of future wants The expenditures for permanent improvements were necessarily small during the last four years, and now that the war is dosed, it is thought to be sound policy to supply many of the wants and correct the defects which a state of war has developed. The Ports mouth yard has been extended by the pur chase of Seavy’s island, and arrangements nave been made, subject only to a grant of ‘ jurisdiction by the New York legislature, for extending the Brooklyn yard 'by incor- ■ porating into it property known as the Baggies estate. The means for executing at the Philadelphia yard are very limited, and, in consequence of the want of ■shops and machinery* large quantities of work have been done in ; private establish-’ ments which could have been performed more economically, and perfectly in the' navy yard had the facilities existed- Tt" is a lso recommended that that ttfe wash -be extended by : the purchase of additional property. “Four wt^. e ?°i an ? s have been admitted to the Naval Asylum during the year* nine bave died, and one has been sent to the In- Total number on the rolls, 3!!SSS “ d NsnHL?A S i BrVatory ’ H y dro g r aphio Office! Nautical Almanac and the sohool for naval apprentices, and a survey of oreratioM ta ©ach of these departments is given in the re- port of the chief of the bureau. The subject of the local deviation of compasses, arising l ■ from the use Of large quantities of iron in • the construction of vessels-of-war, is occu pying the attentipn-of the bureau, and the 1 results of some important observations will soon be made public. To collect data for this purpose, an officer was' especially sent to San Francisco in the iron-clad Monad nock. A Hydrographio Office has been es tablished in this city,- -under : autho rity of an aet of Coqgress passed at its last- session. .It 'will .be the central-depot from which charts’ sailing directions and nautical books in general will issue. The new' buildings for the Nava! Academy authorized by Con gress will soon be other- im provements have been -completed' The Superintendent-of the Naval Observatory reports that there has been added to the in- Btrumentsof that institution a great Transit Ciiolei which restores the observatory to the rank, of a first-class institution, and will largely extend its sphere of usefulness. The result thus far of the naval apprentice s ?^. en i. haa nGt ' 111 opinion of the chief ot the bureau, disappointed, theexpeotationa ; .of ite most Banguine advocates. of the Bureau of Ordnance re ports the sale, durihg the past year, of Un serviceable cannon and'surplus powder to ■ the amount of =5337,364. Other ordnance material which the close of the war has left • on hand, and is not needed for the present or prospective wants of the squadrons, will he disposed of, . So states that the most satis* - lactory results have been attained with cans cast either solid or hollow,' and nothing has transpired abroad, in the efforts to produce a Bteei or ateepand wrdught-iron gun better than ours, to. induce a fear that cast-iron ordnance will be surpassed in any essential of endurance,eltheras smooth-bore or rifles.. In gun carriages a decided improvement has been niade in the substitution of iron . for the cumbersome wood ones so long in use,and a carriage has recently been designed upon which a fifteen-inch gun can be safely! handled in any weather in which an action may be fought at sea. Th.e chief of the Bureau of Equipment and Recruiting reports that seven fiUndred and thirty-one tons of hemp of a value of $296,- 489, have been used at the government ropewalk ’at Charlestown. A board has been organized' to examine and test the comparative strength of wire and hemp rope, with a view to its more general intro duction into the navy, should the report be favorable. It is believed that by the use of wire instead of hemp rope, a vessel of the Wabash class will be 'relieved of over four tons’ weignt aloft, and that there will be a large saviDg in the original cost, as well as increased durability in the rigging of a vessel. The coal contracts for the current year are for 40,069 tons,delivered at Phila delphia,at $5 61 per ton, , and. 12,000 tons delivered at New York, at $7 28 per ton. But little coal has been sent abroad during the.year. Especial attention is' invited to the suggestions relative to the enlist ment of seamen, both for the naval and merchant service. • The report of the chief of the Bureau of Construction and Repair is .chiefly occupied with the prospective wants of his depart ment. To ffiace the government dock-yards in such a cpmdition as the experience of the past few feaiß has shown to be necessary lor efficient-service, will require the erec tion of a numbers of new buildings. The vievfs-pf the chief of the bureau are detailed with ' some minuteness,' and should . command attention. During the war it became necessary to build many vessels of unseasoned timber,- but such vessels are of short durability, and true economy will be consulted by laying in for future use a large supply, particularly of oak and yellow pine timber. Special appropriationsa few years for this purpose are recommended. During the year the force in the naVy yards’has been princi pally eagaged in placmg in efficient condi tion the vessels which had been almost constantly employed during the war, and but little progress has been made upon the hulls of the new vessels. 43,3241526 42 98,967,392 98 18,976,667 50 - §10,826,280 00 612,239 15 80,000 00 386,513 00 - 1,592,000 00 - 1,595,212 01 The chief of the Bureau of Steam Engi neering reports that no new work has been undertaken during the year in his depart ment. All the new work under construc tion was commenced before the close of the war, and a number of engines are now com pleted, for which the vessels have not been commenced. This will be taken off the con tractors hands and stored. The machinery for the Idaho and Algonquin, designed by E. N. Dickerson, has ' proved a failure in each case, and been rejected. As the navy is almost wholly a steam navy, it is sug gested that increased facilities be afforded lor the construction and repair of steam ma chinery in onr navy yards, and to this end estimates, amounting to about one million and a half of dollars, are submitted. The chief of the bureau suggests that in view o the importance of the engineer corps, the rank and pay of engineer officers should be increased; also that the age qualification for cadet engineers be extended to twenty-one years. ,The chief of the Bureau of Provisions and Clothing calls attention to the very great evils ©f the present system of supplying a sailor with his outfit. The market rate for the various articles he is compelled to pur chase is now so high than when a sailor has received his advance money, and drawn his clothing and Bmall stores, he finds a debt of about a hundred dollars standing against him, which he cannot expect to work out, after leaving a half-pay allotment for hfe family, in' less than a year. The chief of the bureau recommends the erection of ah additional storehouse* at a coat of §150,000, upon the new purchase at Brooklyn,known as the “Buggies property.” The chief of the Bureau of Medicine and Surgery calls attention to th& nedessity for increased hospital accommodations at the Naval Academy, Annapolis, and suggests that i a 'sufficient sum be appropriated to purchase a proper site, andto erect a hos pital commensurate with the necessities of the institution. He represents .the hospital now in use as wholly insufficient for the present number connected with the acade “y-He 'also urges .an' appropriation, of ?150,000 additional to the amount already appropriated to build a hospital at Mare , Island, to.answer the growing necessities of that.distant station. He represents that the building in which the. naval laboratory is carried on is small,-and so inconvenient as* to seriously embarrass its operations; that the machinery, ‘apparatus,' manufacturing department, store-rooms packing and dis pensing rooms, are all crowded inone small building. He submits an estimate of $3O - ,000 for.additional laboratory acoommoda- ; tions. Interesting tables connected with the casualties of the navy during the rebel lion, and showing its sanitary condition are given. The number of persons wounded during this period was 4,030, of which 3,- 266 were from gun-powder,4s6 were scalded ■in battle, and 308-drowned in battle. ■ The casualties incident to service in thenawmot connected wltbbattie during the same time, were 2,070. The aggregate number of deaths in ihe navy from casualties of ail kind duripg tlje rebellion was 2,282, as fol lows: from_ gunshot fractures, 495, from gunshot flesh wounds, 1,309; from incidental 373; died m rebel prison pens 95 The colonel commandant of the marine . corps reports that at his annual inspection he found good order and disoi- P 11 ”®. sufficiently . marked to reflect credit npon both officers and man SalteS t * e strength of The Is attached to vessels upon foreign service the remainder is em ployed in guarding the navyyards and naval magazines, and being instructed m the duties of soldiers. Ho dif ficulty is experienced in getting number of recruits. and of* betterclass than formerly. The commandant of the carps recommends that new barracks be ereoted in Washington to displace those at present occupied, which were erected in 1805, and tRS BIIIY EVENING BTOLETINT IPHIIiAIiEtPHU, TBESBAY, „ W besides being dilapidated and not adapted to the heaUh feed comfort of the men. are wants of the service., It is also recordodeiided that steps be taken towards secariag. a convey ? s^ e for-to©niarine barracks at Nor *plk| there are, lio suitable accommo dations for the marines. Attention is called to the fact that, although < the corps is a mili tary or gaDization numbering some thirty six hundred men,itecommandant holds but the commission of a colonel. Strong interest is felt that the. grade of brigadier general should -be conferred upon . the highest officer lh'a corps whoße numbers and ser vice-would jfeern, to * justify; it, particularly at a time when, so , many 1 army officers are honored-with that ,position. __ v, ■ : CONCLUSION. ’• I baye in this report presented to you, and stated for the information of Congress; the present condition of our naval 1 fordo at home. where its preparation for efficiency is still proceeding,' thongh on ■ a - properly reduced : scale, and . 'its \ arrangements and operations ' abroad,: where; follow ing in the track of our expanding com : merce, it keeps faithful watch over our national interests and honor. I have added to this description such suggestions as I deemed most worthy of favorable cpn f sideration, looking, with a due. observance of economy, to further improvement of its organization. The calm whichsucceeds the great tempest through which our country has: passed, gives me the gratify ing oppor tunity, while stating the movements iof our naval force in distant seas, to suspend dor this year the five times resumed narrative of its. mighty growth and ever, memorable achievements.: -Yet in closing: this report I again exhort-the' government and the country to realize promptly and prac tically that the maintenance of our navy in an amplitude of power adequate' to any emergency, is intimately blended with our hopes of lasting peace, with the aug mentation of our vast' commercial 1 enter prise and prosperity, and, above all,'with that grand and imposing naval renown, which has come in Our age to be: manifesto the surest and the cheapest defence of a great nation, Gideon Weli.es, Secretary of the Navy. To the President. Keport of the Secretary of the Treasury Tbkasoby Deeabtjeent, I Washington, December 3. lSg3. / In conformity with the requirements of law, the becretary has the honor to make the follow ing report, > . „ v. ln under date of the 4th 6f Decem ber, ]E6o, the Secretary estimated, according to the data furnished him by this Department and by the other 1 epartments, that the expendi tures of the government for the three quarters of the fiscal year ending June SO, 1860, would exceed the receipts $112,191,917.20. The result' vas widely different. The receipts exceeded the estimates 559.900.905.41; the expenditures fell short of the estimates $200,529,235.30. Tne fol lowing statement exhibits the Items of increase' of receipts and decrease of expenditures In com parison witn the estimates * Statement of the estimated and actual receipts ana expenditures United Slates from October 1, iSfio. to Jane 30, 1869: EECEIPTS. _ . ___ Estimated. Actual. Customs.... -$100,000,000.00 $132,037,0^8,35 Land 8.............. 500,000,00 53^110.10 internal revenue 175.000,000.00 212 607 927 77 Miscellaneous 30jj00.000.00 45,255.125;90 Direct tax....._ 1,913.012.82 Total CasfibalanceOctober 1,1865 67,158,615.44 • G7.158.515.4J Customs....;-.. .Lands;.: Internal revenue— Miscellaneous Idrect tax ...... —- 559.905.905 4i EXPENDITURES. , Estimated. Actual. Civil Service $32,991,052 38 SSO.iSS 500 55 Pensions ana Indians. 12.256,780.91 11.06L255 79 War Department. 507.788.750 57 119.650.161.50 Navy Department 35,000,000.00 26 802.710 31 Int’est on Public Debt 96,813,868.75 ,96 89^260.19 Civil Service Pensions and indisins. War Department Navy Department £fdn«'aefi=iencvln-^Umat«ior Sm ' G 2 6 Interest on public debt, EECAPITULATIOK. Actual receipts, in cluding cash balance $162,564,420.88 Estim’d receipts, in cluding cash balance 372,658,615.44 Excess of receipts over estlm's....... 80,905,905.44 Estlm’d expenditures 484,853,462 64 Actual expenditures : 254.524.i27.34 Actual expenditures less than estimated 200,529,28530 10183 $290,435,140.74 The following Isa statement of receipts and for the fiscal year ending June 30, Bale nee in Treas ury, agreeable to i warrants, July 1, 1665..................... 5555.509.15 To which add bal ance of sundry, trust funds not In cluded in the above balance...... 2,217,732.94 Making balance, July 1, 1860. In cluding trust land Receipts from leans Receipts from cus _tOms..-. 179,016.651.58 Receipts from lands 665,031.03 Receints from di rect tax 1,971,754.12 Receipts trom in- >• , temal revenue..., 309,221,813.12 Receipts from mis- ' cellaneous sources 67,119,369.91 : 658,052,8a).08 T0ta1.......... - «... 1.273,960.215.20 _ expenditures. , Redemption of public debt.. 8620.32L725.6i For civil service.... 41,056,861.64 For pensions and - _1nd1an5.....„........... 18,852,416.91 For the War De. apartment....—...... 284,449,70L82 For the Navy De- partment. For interest on pub ■ He debt •; 133,067,741.69 43,324,118.52 Leaving a balance In the Treas. Tho^iwKf Bt 1 day °f J qI V,IBSB. : *132,887.549.11 _ l~ e following la a statement ol tile receipts tembfrsTlMß- 168 *° r ttie I narter ending Sep- Balance in Treasury, agreeable to warrants . .. Receipts from customs 50,843,774.24 Receiptalrom lands..... 228.889 72 . Rectiptsfrom direct tax 840,454!89 Receipts from Internal . . . 99,166,993.98 Receipts from,miscel»; > ; - laneous sources I ■ 7,981,76124 ( ■ ' ' • i ■:» ESPENDiTOKES, : For the redemption of".' • thepublic deb,t....'......243,782, 833.44 FoJ^l^lfe'W 6 - 44 Fo^e'-W^ep^:- 11 ' 787 ' 975 - 66 ; men) ; 13 BS3 214 AS ‘For the Nfivy Depart • . ment, For interest on the pub lic debt..::...............;;'... 33,865:899.99 Leaving a balance In the Treasury on the first day ofOctob9r,lB66,of 8142,418,789.19 The following statement exhibits the Items of increase and decrease or tbe public debt for the fiscal year ending June 30.1868: • ’ - ' Amount of public ■ - 1 Am^n'tTcaahm 22 " 682 - 593 ' 026^ Treasury 858,309.15 Amount of public debt, June 30,• ai5.500.000.00 395.405,905.1; 5ara.655.515 44 5462.564.420.5 S , Excess receipts. ■ s32,oJ7,fM>s 55 —• ' 32,140.40 ....—. 57.607.927.77 18255.125.90 1,943,612^2 $184,853,462.61 284,324,227.11 iZccc&SQf estimates. 52^08^51.53 : 1,195.505 15 155.705.256 07 8,197,253.60 80,381.44 8200,629,245.30 £3,076,042.90 712,851,503.05 520.750,940.48 ...... £1,141,072,668.09 158,561,386 57 .....465,460,557.92 7,878,609.17 323,041,768.73 Treasury. :132,887.549,U., . 0t p l blld debt, Jane 30, ■ V. , 1866, less cash in Trea5ury.........82,650.538, 330.10 July at, 1841, and •i iA&lfli 15,: ». , $116,139.77 Treasury notes, 8 per. >--t cent., acta Uecem her 23, 1857,' and ■ 1 1861, 2,200.00 Bonds, 5 per cent., ... ; act September (9, ,; r . ; : , - j.-1850, (Texas indent-: - ~1 • 283,000.00 ' '■ Treasury.notes, 7-30, : ; . ..N;:. - July 17, 1861,....., 380,750.00 Certificates of lit* ~ - ■ debtedness, 6 per i cent,, act March V :_1802.89,381,000i00 ' ': Treasury noteSi 5 per ■■ cent; one . and twa-year, act 38 ' 8841480 - 00 ' - est notes, 6 per cent,, act, June 30. , , ~ ..... 31.743.9t0.00; -Bonds, 5= per cent., _act March 3,1864....... 1,551,000.00 united States notes, acta July 17, 1861, and, Feb ruary 12,1862.„ united States ■ notes, 'acts Feb ruary: 25, July. 11, • J§62, an|ebeat point, August 81,1865, to October 31, Amount of public , i debt August 31, 1865, 88 pet state- , . , . A '«atnt ......... 52,815,907j#.56 Amount of old a funded:and un funded debt........ . 114,115,48 ——82.816,021742.04 Amount of cash in Treasury 88,218,055.13 Amoun t of publlo debt A ugust 31, • ISCo. less cash In Treasury.,.. £2,757.803,688,91 Amouni of. publlo . , • ■debt October 31, , . , 1866, as per state-, 8,, 8 ment.. $2,681,636,966.34 Amount. of old funded, and un funded'debt.... Amount of cash in Treasury. Amountbf pnbH6debtOotober3l, cash In Trea5nry........;i|2,551,424,12l' 1 2a 1 206,870,565.71 decrease /was caused as follows by aucf incretis&ofccLshiii Treasury*. vS??5 8 »? P er cent »vaot January 28, ; • 81.672,450.00. Bonds, 6 per dent;; acts July 21; 1811, _;Bna ; Apriii5, 1842.u.i;..............t.'._.i 144,039,77 Bonds, 8 per cent;, act March 81, .; 617,400.00 ’ 1,700,750.00 Bonds, 5 per cent., act March3,lB6l, v 455,000.00 Bonds, o percent, act September 9, : J^Tex'as , 'lndemmty,........4ss,ooo.oo ■ Treasury notes, 6 percent,, acts De .cember 23,'4867, and March 2,1861;' • 1 8,200.00 Temporary loan,- 4,5; 'and 6 per . : cent., acts February 25, 1862, and.' . JuneBo, .1864.;....;....;............,;....'.;...; 62,146,714.27 Certificates' of Indebtednesses per cent.i sota Maroh 1,' 1882, and : 3', 1863..;.....;;.,;;.........;..84,911,000.00 Treasury notes; 5 per cent., one and _*wd years; at Mar0h5,1865..i...;...-.. 31,000,000.00 Treasury notes,'7-30, sot July 17, • “61 ...i 295.100.00 Ooxupond Interest notes, 0 per cent., act June 30.1804 68,512.020.00. Treasury notes, 7-30. aot June 30. 1864, and March 3, 1865 105,985,700.00 United States noteß, acts July 17, aoo;4n.oo' 134,611,150.00 10,713,180.00 185,547,221.33 —— 115.782,059.00 —.301,329.271.31 114,115.48 130.526,900.62 617,490.00 175,000.00 75,172,997.76 io;50o,ooo.oo 691,031.75 109,533,103.0 114,115.48 >2,681,751,081.82 130 326,960.62 tt lB ,? l ’a£ d February 12,1862 “W? 1 ? “ otes - aew February >^,J 862 . Jnly U, 1862, and March 3, JujylifrimC 3!029’739.‘63 suspended, requisitions ; 2,m;ooo.OO T0ta1...„ Increase olwggh in Treasury.',', Gross decrease. From which deduct for increase. Bonds, 6 per oent., . acts July 17 and Au gust 5, 1861.. $114,750.00 Bonds, 6 per cent., act ..March % 1864...... 3,882,500.00 Bonds, 6 per cent., act ' 8,2u.q00.0a Bonds, 6 per cent., act ’ - 1865 ~- 205,281,000.00 Bonds, 6 per cent., acta . July l,lB62,andJnly 2,1864, Issued toCen . ~tral Pacific Railroad Company, &c.. Inter est payable. In law .• numoney Fractional currency, , acta. March 3, 1863, . and June 30, 1864. 4,273,007,45 Gold, certificates, act hfercb, 3, ’63 ....... 10,896 980.00 ;fI6Cr6fIBO M , M „„, MM „„ ' " IWfift !?7Q Ue >t» tChesQ statements are in thA highest decree T faeyar * ocmSS^RSdSSS °{, onr resources,and they clearly JSjto'f-®? toe patience of .the people under self- WMPs9R?*a«a fvri»^L°.L <^ p^ ct, .® d ’ ? or 18 it perhaps desirable, “P! 10 rate of reduction should be con tihbed.. A considerable diminution of taxes was effected by the amendments of the Internal StTw 1 a^, the i*st session ol Congress?A Internal taxes, and a modification of the tariff, which will doubtless lead tp a seduction of customs duties on manv required, In order. S^f )e iJ J;lcre S s6d a hew life infused intocertaln branches of Industry that are now languishing under the burdens which have been imposed upon them. But,' after the proper and necessary redactions shall have been made the will doubtless be sufficient, if the gov-' eminent shall, be economically administered nnfin? SS, curr f nt expenses, the interest on the pumlc debt, and reduce the principal at the rate OTsS?«,£? p «,". to flve htliliens per month. In that this niay be done, however' there must be no additional donations to railroads mentB bul 111 thefulhlment of contracts’ a “ d no unnecessary expenditure of money for whatever, with proper economy )-h ell the departments of the government the SJ?- b 6 said5 aid by , 016 generation that created e( l, aal revenue laws shall be en acted and continued by Congress, and thesA laws are faithfully enforced by the officers charged with their execution. That It Is the will of the people that It should be paid, and not Perpetuated, Is clearly Indicated by the nast r isk K s rapld reducti on during the past year has been regarded. Theidea thori a na y on nl debt can be anything else than a burden —in which there are *°“ e but suila bnrdema mort gage npon ih© property and Industry of the people—ls fortunately not American idpa «? ich 016 publio expenditures are to heavy or the resources are so small tn a r Public debts is practlca ble, and where national securities' become monopolized capital in the hands of moneyed aristocracies, who not only absorb the means but give direction to the sentiment of the in our history has created so much sorprise, both at home and abroad, as the re duction of our national debt. The wonder ex- 1 with which lt waa created is greatly exceeded by the admiration of the Jhnn’>«° E e **£ payers themselves that it shaUbeispeedily extinguished. The convlcUon fastened upon, the popular mind Important—for. economy in'the na tional expenses, for, the maintenance'of a trne to the admlnlstrauSHf the go ” SiSS- nt f { or t ? n ? e of good morals and of public ylrtne—that the policy of a steadv an nr>rl\nt? aet debt Bhould be definitely and inexorably established. .Nothing short of this, and that economy in expenditures which will render it practicable, will reconcile the people to the bur dens of taxation.. A national cleht must ever b ®? uponßepublican instUuUons, fito ours should not be subject to It one day longer iban Is necessary. To the perpetuation of Irnlo’ftm? 8 * ebt of tb e United States there are f. I®® 1 ®®- l i™ a y be proper to remark, serious objec li??®.Brpwtog out of the circumstances under which It was created. Although incurred in a I fS rU V e Preservation ' eminent, ana therefore especially sacred in its burdens are to be shared by thosa a reminder of humiliation and wwtfiiwiS exceedingly desirable that this. ns€s of heartburnings and allena tioh, should be removed as rapidly as possible and that all should disappear with thepresent K?pe ra |ton, so that there may be not hing In the vS!S-.f„ l „ 0 ,P reveD t that unlt y and goodfeeUng between the sections which are necessary for true national prosperity. . regrets, notwithstanding the large reduction of the national debt, and the satisfactory condition. In other respects, of the Tr s^ s ? ry .’ ,bal utlle Progress has been made since his last report toward specie pay ments. The vlews presented byhlmin that re port, aithoagh endorsed In the House of Reo resentaiiyes by a nearly unanimous vote, were r‘° t ® nK ' a ‘ ne d by corresponding legislation. In stead of being authorized to reduce the paper circulation ol the country, according to his re commendations, the amount of United States notes -which he was permitted to retire was tonlted lo $10,000,000 for the six months end- l2, and to $4,000,000 per month thereafter. In the meantime, the reduc «.S blB P® ll , to ay»U himself of means within his control for reducing the price ol coin, and thus approximating specie payments: SSi^A, 0011 ! ? ot a few “aye pronounced all SOvernment unwise, on the theory that If the coin received from customs,, ?S£Ss t^ that been .pmsned with ,tbe sold which , ?°rlng his administration ,of the Department, . has come into the Treasury.', He has permitted It to accumulate when -the-use or theissde of It was notnecessaryforpaylng government’obU gations. or to preveni commercial panics, at . successful combinations agalnst the, national' credit; and he has sold whenever sales werene- • cessary tostipply the: r Treasury .with ourranoy, to ward offflnanoial crises. ortosave the paper circulation of the.conntry, as far as praotlcahie, from unnecessary and damaging depreciation. For making sales he 'alone ls responsible. If in condnetlng them, any lavoritism has been snown, or If the Interests of any particular class have been especially regarded.it has beenftvith- Wlthont his knowledge, and In violation of Uts 334,610.00 He baa not the slightest reason :< T'S^rfs?^^^3niSS£B?. befa a^^jgsßsaaags ationoftiiSmeSA O «sSi m S ortance of a roator c£SS!r ? r the meatiB ne pessary 10 enact it. He trusts, however that: he has not been understood as entertain!„VfSa opinion thata reduction of SKSSSwwould or itself necessarily bring about anfinto W Satr ments, although the chief and essenSadmSfua to effect the desired resul dundant legal-tender currency as ttamim« cause of our financial difficulties, and a nn/tnii pent thereof Indispensable, to an labor and a reduction of prices, to an anemeS tatton ofexportsand a diminution of imnTrtn which alone will* place the trade -betweantha United States and'other nations on and satisfactory footing, et *- uai In order that his views on this point may not be misapprehended, the Secretary trusts that he will: be pardoned for referring(even at a risK of a repetition of/what he has heretofore presented in other communications to Con gress and in other ways to the couatry)to cer tain laws, well understood, but disre garded, which regulate International trade and control the movements of coin, We have traveled so far from the specie standard, and are bo blinded in regard to.our actual financial oondltton and our . relations with other coun tries, by-an inflated and Irredeemable cur- • the exportation of our securi ties( tnat frequent recurrence, to Inexorable commercial and financial laws is necessary. ■ commenced between the inherent nations, gold.and silver halve Sf?SiSL e o o^^ 1 - e i?' sle recognized measure pEblnm of exchanges. While In irUernal trade other representatives of a greater or less extent, been SffttV?? a iJ nations, .money made, oftoase metals hashMn prononnoed by, the judgment SttS" 1 the only currency poasesslng the attributes necessary for a uniform and unl ™lP? 1 «P lrenl ? ,lne medium., From this , judg ““‘there Is no appeal. Not only Is It toe SSS? n i!i5 nivel s? lly acknowledged measure'of value and .medium of exchanges, but by its ff|P?atlng flow, it Indicates toe condition and between different nations. Water does not more naturally seek a level, specie flow from one nation to ahi ™^ or H l6 Payment of balances created by an unequal exchange of commodities. Trade rinhP^ generally and chiefly con aatof productions; but SSSSTS a T a en k paStogtalauces to coto whfeh S&tte trade of nations.. It Is. this: great commercial and financial law which makes the nation that fSa B tu lore l? an ,J? 8 . 1 5 lys ’ the creditor nation, apd the nation that buys more than It sells k£? be , bt ? r potion, and recognizes no medium but coin to the payment of balances, that de toe question of toe ability of toe United States to resume and maintain specie payments. If the balance Is In our feyor. or If not to our favor, if toe balance against us is so small that It can be paid without an exhaust tog drain upon our precious metals, specie pay ments can at once be resumed. Such, unfor tunately, is not toe feet. Notwithstanding our heavy exports during i he past year (that ofcot i°(shrivi V iP\ s been 650,672,820 pounds, or nearly 1,600,000 bales, a quantity greater than our en tire crop of the present year), toe United States are largely a debtor to Europe. ‘ k few fects wIU put us to right on this point. Between toe year 1848, when sold was first dis covered in California, and toe first or July, 1566. toe product of the gold and sllvermtoes of toe .United States, was about.SI.IOO,OOO.OOO, nearly all of which bas gone into tbe world’s «mtar»* stock; and it Is not probable that the am!unt §f gold and silver now to the United Slates, Is very much larger than it wbs eighteen yearn ago. , tbe hscal year ending June £KJ IS6S toe United States imported: >, . » Foreign merchandise free of duty $55,801,7a9 Foreign merchandise pay lug dutyi. .... 368,508,041 To! .. 405,553,891.07 42.108,905.49 447,062,803.16 8,624,000.00 $211h!83,237.45 ital Of foreign merchandise there was re-exported: Free of duty. 5',907,157 Dutiable 9,134,263 Total (mixed gold, and cur acy value) 11.311,420 ' Which, reduced to cur rency value, was equal to $10,26^233 Total aet imports foreign merchandise, valued in - Bold ........ 417046,577 Imports, specie 10,329,156 Of which there was re-export- Net imports, specie 6,923,459 3 otal net Imports, foreign merchan- During the fiscal year ending June ‘ - 00,1866, the United States exported domestic merchandise, currency value, 5465,010,903, reduced io Bold vahie 333,322.055 \ Specie exported 82,613 374 Total domestic exports, valued in gold Apparent balance of trade, valued Jn S°ld _ $3,009,577 But these figures, taken from the reports of the custom houses, do not piesent the whole truth For many years there has been a sys tematic nn der-valuation of foreign merchandise imported into the United states, and amounts have been smuggled into the country along our extended sea coasts and frontiers To make up for nnder-valnatlons and: smug gling, and for cost of transportation paid to foreign shipowners, twenty per cent, at least should he added to the imports, which would ™ a ,se the balance for the past year against the Jjnited States nearly $100,000,000. It Is evident that the balances have been largely against the United States for some years past, whatever may have been the custom-house returns. - On no other ground can the fact be accounted for that a very large amount of American bonds is now held in Europe which are estimated as follows, to wit: , United States bonds $350,000,000 State and municipal bonds 150 000 000 Kailroad and otherstocks and bonds. 100'000 000 T ° tal $609,000,000 . It Is evident, from these figures, that the balances are against ns, and, chiefly by the ex portation of our government bonds, are being .temporarily and improvldently arranged; tem porarily, because a large portion of these bonds have been bought on speculation, and will be lixely to be returned whenever financial troubles In the countries In which they are held shall mahe It necessary for the holders to realize upon them, or whenever Satisfactory profits can be made by returning them, which will be when they nearly approach their par value In coin; Improvldently, because they are being purchased at very low prices, and because tbeir exportation stimulatesimports, and thus cripples home Industry. Nothing Is. more cer tain than the fact that there can be no perma nent resumption of specie payments in the United States until the balances between them and other nations, shall bemadeeasy bv an exportation of commodities I' inclutflne the prcductsof the mines, equal at least to our Im portations, and until provision shall be made lor returning bonds, or for preventing their return at nhproplfions times.' This state of ihings.lt is conceived, cannot be effected with out a cbangein ourflnanclal policy.: There being hut' one universally recognized measure of value, and that being a value m itself, costlpg what it represents in the labor , whlop is required to; obtain it, the nation that adopts, either from choice or f temporary ne cesaty, and Inferior standard, violates the financial law or the world and Inevitably suf fers for its violation; *An irredeemable, and consequently depreciated, currency, drives out or circulation the currency superior to itself; ..audit made by law a legal tender, wtUle Its real value Is not thereby .enhanced, becomes alalse and demoralizing standard.fmder the influences of whioh prices ad vance'ina ratio disproportloned to its dctuail depreciation. Yery different from this is that gradual, healthy and general advance of prices which is-the ef fect of the Increase of the precious metala The coin'whicb is obtained in the gold and Silver-” producing districts, although it first affects pri. ces within sncb districts, following the course of trade, and in obedience to its laws soon finds its way to ■ other ■ countries,: and ,9^ mes , of. the; common stoote of the satioDß, which, increasing in anxotmi bv the regular product of the mlnea, and In activity ”■ by the .growing .demands of commerce, ad. ' and commodities throughqntftie commercial world. Thus.the products.of the American ./Australlanand Bus -1 Sl all , ll 'ite eB ,^ el ?flS rst ? o a d v an c e prices in their , respect!velocaHt leg, hut the operation Of: trade S,isdii trlb ’J te ? tlle ? e P ro