tries,- It Hows to them by a law as
regular and as certain as . gravitation.
Bence, although the "precious metals are
produced In considerable quantities In but a
- Tew countries, they affect the prices in all. Not
bo with a paper currency, which is local in its
use and In its influence, Its advantages, when
convertible, are admitted; for; if convertible,
, although It swells the volume of ourrency, it
rather increases enterprise than-prices. Its
convertibility prevents expansion, while its
larger volume gives impetus to trade and
creates greater demand : for’labor. But when a
■oarer currency is an Inconvertible > currency;
and especially when, bolng so, it is made by
the sovereign power a legal tender, it becomes
hrolifloof mischief. Thenspeoie becomes de
monetized, and trade is uncertain In its results,
because the basis is fluctuating;’then prices
advance as the volume of currency increases;
and reqnire as they advance'farther additions
to the'circulating medium; then" speculation
- becomes' fife, and f’the few are enriched at
the expense of the many;” then- industry de
clines, and extravagance Is wanton; then, with
- a dinibution of prooucts, and Consequently of
exports there is an increase of imports, and
: higher tariffs are required on acconnt of the
general expansion, to which they, in theirturn;
- EiVe new stimulus and support, while the pro
-tection Intended to be given by/ them to home
industry is in a great measure rendered lnopi
’ erative by the expansion. This, notwithstand,
ing our large revenues and' the prosperity-of
’’ many branches of Industry, is substantially the
condition of the United States, and the impor
tant question arises, ’What are the remedies? i
- Wlih entire deference to Congress, the Seore-
: tary suggests that they are to be found— *> i
’ First, In compelling the National Banks to re
deem their notes at the' Atlantle oitles, or,
1 what would be better, at a single city. '"
Second. In a curtailment of the currency to
the amount required by legitimate: and health
' ful trade. ' : i
Third. In a careful revision of the tariff, for
the purnose of harmonizing it with oili internal
’ taxes—removing the oppressive hardens now
■ imposed/upon certain branches of industry, and
relieving altogether, or greatly relieving, raw
materials from taxes, in order that theproduct
of labor may he enhanced and production and
exportation increased. 1 "
- Fourth.' In the issue of bonds, payable in not
over twenty years and bearing interest at the
rate of not over five per cent., payable inEng
■ land or Germany, to' an amount suflloient : to
absorb the six per cent, bpnds now held in Eu
rope, and to'meet the' demand thefe for actual
and permaiiferitinvestment; and—
Filth. In the rehabilitation of the 'Southern
ptfltfiß.' 1
First. The utility of compelling National
Banketo redeem their notes at commercial
centers, as-well as atthelr own coUntersVis ap-
Sarent. The object of Congress,-in the eitab
shment of the National Banking System, was
to furnish the people with a solvent currency
of uniform value throughout the United States,
The solvency of the notes- of the National
Banks is secured by a deposit of bonds with
the Treasurer at Washington; but as the Banks
are scattered throughout the country, and
many of them are in places difficult.of access, a
redemption of their notes at their respective
counters is nbt all that is required to make
them throughout the United Btaies a par circu
lation. It is true that the notes of all National
Banks are receivable for all public dues, except
duties upon imports, and most be paid by the
Treasurer In case the Banks which issued are
unable to redeem them, but it will not be
claimed that the notes of Banks, although per
fectly solvent, but situated in interior towns,
are practically as valuable as the notes of
Banks in theseaboard cities.
It may be urged that, to compel remote
hanks thOB to redeem, would be a hardship; but
as very few well-managed banking Institutions
in the United States fell to keep accounts and
balances In some of the Atlantic cities, this
hardship would be found, noon trial, to be im
aginary, rather than real. Bat If it should be
a hardship, it would be a necessary one; and the
interest of the banks must bend to the inter
ests of the people. Besides, without.such re
demption, there will be practically none at all,
at least until specie pavments are resumed; and
when there are no redemptions, tjiere is always
a constant, tendency to inflation and illegiti
mate banking. The frequent and regular re
turn of their notes is needed to keep theonslness
of the banks in a healthy condition, and thus
invariably proves no less advantageous, to .the
stockholders ■ than to the - public.-•• Unless
the banks shall be compelled ’ to
redeem in United' States notes, many
of them will neither lend their influence
In lavorof ajjretnrn to specie payments, nor bs
prepared tor them when without their agency
specie payments shall bebronghtabont. If the
determination of the question was left to the
Secretary, all the banks would be required to
redeem la New York, the acknowledged com
mercial metropolis of the Union. Thedeslgna
tion'of that oity as the redeeming point for all
national banks would not only give absolute
uniformity to their circulation, but would so
facilitate the assorting and returning of notes
that practical and general redemption
would be enforced. It is certain tnat
this will not be done ■ under the ex
isting provisions of the law:-It is not
■certain that it will be, unless all banks shall be
compelled to redeem at a single point. This
might be objected to by the banks In other At
lantic cities on the ground that it , would ag
grandize New York at their expense. But New
York is already the financial and commercial
emporium of the Union. Most of the interior
hanks keep their chief balances In thatclty, be
cause they are. more available and valuable
there than elsewhere, and incompelllhg all the
banks to redeem at the metropolis of trade,
Congress would be only yielding to an unwrit
ten but controlling law to which statutes should
conform; The course of trade compels, and will
compel, those National Banks whose business
Is based upon the products of the country
(and these must always constitute a major
ity) to keep their chief balances In New
York, whether they redeem there or
not. If exchanges between that cltv and other
cities sbonld be in favor of the latter, the re
demption by their banks would be made at
their own counters, and no sacrifice but that of
local pride would be involved in their being re
quired by law to redeem atthe common center.
When >ew York shall be a debtor city j,o Bos
ton'and Philadelphia, the notes of the Boston
and Philadelphia banks will go home, and not
to New York, for payment. What is required
is an aetive regular and actual redemption of
- the notes of all the National hanks. To effect
■ this, local pride should be sacrificed and minor
Interests shonldbe disregarded. What Is Bald
wpon this subject by the acting Comptroller of
the Currency Is fully endorsed.
: The second remedy suggested is a curtailment’
of the currency.
The views of the Seretary upon the question
of a reduction of the currency have been so
■frequently expressed, that it is only necessary
- now toconsiderwheiherthecurtallmentshould
i; be of the United States notes or of the notes of
. the national banks. On this subject his opin
ions have undergone no change since he com
-1 municated them tn his reports as Comptroller
of the Currency. Banks of Issue. organized un
derstate laws, havebeeninejdstenceever since
' the formation of the government. Bythede
: . •cislqns of the highest tribunals of the country
;' their constitutionality has been, affirmed, and
they have become so interwoven with the busi
' ness of the country, and such large investments "
/.have been made in them, that their destruction
would involve consequences of a very serious
• character. Whether or not the country would
have, been more prosperous without them—
whether the stimulus they have given to enter
. prise," and " the facilities. they have
■extended to trade, ‘have or have not
/ been counterbalanced by the artificial prices
'Which they have created, and the actual losses
which the people have sustained by the crises
they have occasioned, and by their suspensions
. and failures—it Is too late td consider. -When
"V. ' .the Notional Currency Act was passed by Con
cress. State banks were In full operation; and
1 Zuotless than four hundred millions of dollars
J \ / were Invested in them as. capital. In some
States, by judicious legislation and careful man
agement, they had afforded a .local circulation
satisfactory and safe. In other States', waere
. no reliable security, or insufficient 'security,
Had been required for the protection of the
public, and' their management had been con
fided to incompetent or dlshonest’hands, there
had been numerous failures, and heavy losses
1 / bad . been sustained by the holders of their
v. ‘ notes. ~ '
Soon after the, commencement :of the rebel
lion it became appafeht that a heavy national
debt was to be created, the Interest and prlncl
pal of which could only, be paid by a general
system of Internal taxes, involving a necessity
for. a circulating medium equal In yalne
throughout the country, and safe for. the gov
' ■ . eminent to receive In payment of dues. This
• ■ subject, of course, demanded and received the
. earnest and careful consideration of the dis
tinguished gentleman at that time the financial
minister of the government, who .caused to be
i ' -prepared and submitted to Congress a bill “to
, - ' provide a national currency secured by a pledge
, or United States" bonds, and to provide for; the
. circulation and. redemption thereof,” which,
• : after haviDg been; carefully considered and
> ’ thoroughly discussed, became a law on the 25th
•/ " Of February, 1563, Prior to the passage of this ,
"■' /aotJ Issues by the" government had been an
- thorlzed, and a large amount of government
notes tad .. been, put into circulation,. ;Bnt.
- ■ - there is nothing inthe acts authorizing' their
Issue, or In the communications of the Score-'
tars, or in the discussions In Congress, to j ustify
the opinion that they were intended to, be a
' permanent circulation. " On, the contrary, the
/. provisions in the law for theif conversion Into
■i , bonds, and th« arguments‘of the advocates of,
. . their Issue, afford ample evidence that they,
6 were.regardedas merely temporary, and; just 1-
■iks flfthle only by an emergency, which it was sup--
■#. nosed nothing elseOcould so adequately meet,
■r Bad It beenpropbsed that these notes should
ta apormanent circulation and take the place"
THE DAILY EVENING- TmLLE’LTN ■ PHILADELPHIA, TUESDAY, DECEMBER 4,IB66.—TRIPLE SHEET
or Bank notes, there Is good- -reason to suppose
that the proposition would have had few’, If any,
advocates. Nor was the -National Banting
System prepared by itaanthor, nor adopted by
Congress, to destroy the State Banks, nor to
divert capital from banking, hut rather to
-compel all banking institutions 'lssuing notes
asmoney tosecnretheni..beyond any conceiva
ble contingency, by deposits with the Treasurer!
of the United-States; thus,without-the? agency
of aNational Bank, providing a national cur
rency :: which would’ save ■ the-govern
meht and people from losses, nf ; which
lucre was constant danger, from a local
«r, d unsecured circulation. The National Bank
ing Ss stem- was Intended, 1 while not invading
the rights of the Stateß, nor dath'aging private
interests, to.furnish the' people with ft perma
nent paper circulation. The United States notes
were intended to meet a temporary emergency,
and to be retired when the emergency had
passed. .. '
The present Secretary was not the advocate of
theiNalional Banking System, Snd claims only
the credit of'having used his'best efforts, as
Comptroller, to pnt it Into successful operation.
But he has no hesitation in’ pronouncing It a
vast Improvement upflin the systernWhlch It
superseded, and one admirably adap'ted to'.oar
peculiar form of government. , There are 1 Sub
stantial objections to all banks of issue, add if
none existed Iff the United Statee, it' might be
very questionable if any should’be' Introduced;
bnt having taken the place of the State'Banks,
and furnishing as they: do a circulation' as free
from objection as any that is'Ukely to Be pro
vided, tne.S’ecretary Is of the opinion that- the
National Banks should be sustained, and that
: the paper circulation of the country, shpuid.be
reduceaynot by compelling them to retire their
notes; bnt by the withdrawal of the
'States'notes.;-. ;
The Secretary Is not unmindful of .the l saving
of interest which results tothe government by
the use of its own currency.' nor, of the favor
with which this currency is regarded by the
people: bht all considerations of thishfitute arp
more than by the discredit
Which attaches to the government by falling to
pay, its notes according to their tenor,' by the
bad influence of this voluntary discredit upon
the public morals, and the wide departure
which a continued' issue of legal-tender notes
' involves, from 'past usages, if 'pot; from the
teachings'of the Constitution Itself. • The gov
ernment Cannot exercise powers' not conferred
hy its organic law. or necessary for itaown
preservation, nor dishonor its own Ongage
mentswhett able to meet them, withont either
' shocking or demoralizing the sentiment of the
people: and the fact that the Indefinite con
tinuance of the circulation of an Inconvertible
bntatlll legal-tender currency Is so generally
advocated,indicates how fer'we have wandered
from old landmarks b9th in finance and
ethics. The views of the Secretary
ton this point were so fully ex
pressed in his former report that it is not ne
cessary to restate them. It is sufficient to say
that his opinions are nnchaneed,and that reflec
tion and observation during the past year have
assured him of their correctness. Anxious as
he is to lighten the public burdens and reduce
the public debt, he does not hesitate to advise
that these noteß be withdrawn from circula
tion, and that the furnishing of what' paper
currency may be required be left to corpora
tions, under existing laws and such amend
ments of these laws as experience may dictate
lor the better protection and advancement of
the public interest. How rapidly they may be
retired must depend upon the effect which
contraction may have upon business and In
dustry, and can be better determined as the
-work progresses. The rednotion could probably
be increased from four millions per month, as
contemplated by the act of April 12,
1566, to six millions tier month for
the present fiscal year, and to ten millions par
month thereafter, withont preventing a steady
conversion of the interest-bearing notes Into
bonds, or injuriously affectlne legitimate busi
ness. No determinate scale of reduction wou id, -
however, in the present condition ol our affairs,
be advisable. The policy of contracting the cir
culation of notes should be defi
nitely and unchangeably established, and the
process should go on just as rapidly as possible
-withont producing a financial crisis or. serlons
ly embarrassing those branchesof Industry and
trade upon which onr revenues are dependent.
'There Is a great adaptability In the business of
the United States, and It will easily accommo
date Itself to any policy which the government
may adopt. That the policy indicated is the
true and safe one, the secretary Is thoroughly
convinced. If it shall not be speedily, adopted
and rigidly but Judiciously enforced, severe
financial troublesare in store for us.-
The Secretary cordially approves what Is said
hy Acting Comptroller of the Currency, in his
report, in regard to the importance of furnish
ing the people of the South with the bank-note
circulation which their business may require,
and agrees with him in the opinion which he
expresses ofithe beneficial results, political,
financial, and social, to be effected by the organ
ization of national banks in the Southern
Hates, but he cannot recommend fin Increase
of the bank-note circulation of the country be
vond three hundred millions of dollars, and
hopes that the necessities of those States may
be supplied rather by a reduction of the amount
awarded to other States, than by ah increase of
the volumei of currency.
The third remedy suggested is fi revision of
the tariff for the pnrpose of harmonizing it
with internal taxes, a rednotion of taxes upon
raw material, &0.,&c.
The 66th section of the act entitled "An act
to reduce internal taxation, &c.,” approved July
13, 1866, provides: "That the Secretary of the
Treasury is hereby authorized to appoint an
officer in his Department, who shall be styled
‘Special Commissioner of the Revenue,’ wnose
office shall terminate in four years from the
thirtieth day of June, eighteen hundred and
sixty-six. It shall be the duty of the Special
Commissioner of the Revenue to enquire Into
all the sources of national revenue, and the
best method of collecting the revenue; the re
lation of foreign trade to deffiestlc industry;
the mutual adjustment of the systems of tax
ation by customs and excise, with the view of
ensuring the requisite revenue with the least
disturbance or Inconvenience to the progress
of Industry and the development of the re
sources of the country; and to Inquire, from
time to time, under the direction ot the Secre
tary of the Treasury, Into the manner in which
officers charged with the administration and
collection of the revenues perform their duties.
Andthesaid Special Commissioner of the Rev
enue shall, from time to time, report through
the Secretary of the Treasury to Congress either
In the form of fa bill or otherwise; such modi
fications oi the rates of taxation, or off the
methods of collecting the revenues, and such
other facts pertalnlng to thetrade, Industry,
commerce, or taxation of the country, a 3 he
may find- by actual observation of the opera
tion ofthe law, to be, conducive;to]the public
Interest.”
On the 16th day of July last, Mr. David A.
Welles was appointed Special Commissioner of
Revenue under the authority ■ above recited,
and he was Instructed to proceed at once to
perform the contemplated work, giving his
chief attention to the tariff, with the view of as
certaining'whai modifications are required to
adjust itto the By stems of internal taxes,stlmu
late industry, and make labor more produc
tive. - /": - ■' ’ * :
The ability displayed by Mr. Wells in: the
performance of hlsdnties as one of the commis
sioners for the revision of the Internal revenue
laws, and the heartiness with whicn he is pros
ecuting his investigations, give the best assur
ance that he will perform the work in a manner
creditable to himself, and satisfactory to Con
gress and thepeople. i The Secretary addressed
to him on the 14th day of September,lB66,aletter,
' from which the following Is extracted: .“In view
Ofthe fact that the revision of the tariff la certain
to engage the attention of Congress at ite
next session, I consider It especially desirable*
that the Treasury Department should
pared to furnish as much Information pertinent
to the subject as can be obtained and collected
within the limited timer available for the neces
sary investigations. ■ Yon are, therefore, hereby
requested to give the subject of the revision of
the tariff especial attention, and to reporta bill
which, if approved by Congress, will De a. sub
stitute for all acts imposing custom duties,
and which - will render the administra
tion of this branch of the revenue
system more simple, economical, and effective;'
“In the discharge of this duty, you will con
sider the necessity of providing for a large, cer
tain and permanent revenue, recolleoting the
fact that the existing tariff has proved most ef
fectivelnthis direction. Yon will, .therefore,
endeavor, first, to secure for the government a
revenue commensurate with Us necessities; and
secondly, to propose such modifications of the
tariff laws now in force as will better ad j uat find.
equalize the duties upon foreign imports < with
the internal'taxes upon home productions. -If
this lastresult can be obtained without detrW
ment tothe revenue, byreduolng taxation upon
raw materials and l the machinery of home pro-:
dnctlons, rather than by Increasing the rates of.
imports, it would, In my opinion, hy decreasing
tbe cost of production andjncreaslng- the pur
chasing power of wages, greatly promote j the
interests of the whole country.” ■ ! ;
Therels no subject; which has In times past
provoked so muoh discussion, and in regard to
which opinions have differed so ■ widely , as the.
tariff.: It has beena standing matter of section
: al and political strife for nearly half a.century,
and tbe sentiment of the people In regard to it
is still qnite as much divided as when the* dls-.
• cussion ofiit commenced. Always; a complex
and diffiohlt questien.lt is particularly so,at the
> present-time. Prior to the rebellion.ltliad no
- relation to Internal taxes, for this form of fede
ral taxation was then unknown .to our, people.
It had little connection with the .currency; for,
until the year 1862, although the Banks hal re
peatedly: suspended Bpeoie payments, .speole
' 1 was the only : legally-recognized standard of
value in the United States,Now;the.question
ofthe tariff is to be considered In, connection
with a permanent system of Internal taxes and
a depreciated, butltrie hoped a temporary ls-gal
tehder currency, i It la obvious that a scale, of
• dutieß-uponimports which mlght have been.
sufficient, judicious, and benefiqial when there
werenolnternal federaltaxes and business was
conducted nponaspecie basis, maybelnsufficlent
iuj udlclous, Injurious now. A large revenue is
at present Indispensable for- the payment of Che
ordinary expenses of the government, the In
terest upon the public debt, and fcr a gradual
and regular reduction of the principal. Freed
trade, although m accord with the principles or
' the government and the instincts of the people,
cannot be adopted as a policy as long as the pub <
11c debt exlsis'in anything like its present
magnitude. The long-hoped-for period -when
there shall he no' legaiobstruct ions to a free’
exchange of commodities- between the United
States and other countries Is still far in the fu
ture Duties npon imports are not only necessary
for revenne, but also for; the protection of those
home interests upon which,'-heavy intarnal
taxes are to be assessed. Thequestlon now be
fore the country is one of: adaptation;
rather than principle.;" How- shall-: the ne
cessary'revenne be raised'under,a system
ol internal '(did .external taxes without-sus
taining monopolies,.without repressing Indus
try, wlthout’- dlseouraging enterprise, -without
oppressing labor? In other wOrds, how shall the
revenne be raised In a manner the least oppress
si veto thepeople, without checking the. prosper?
ity and growth dr,the country? TheiSeoretary IS
not disposed to discuss tne question in t his re
port, This will, it is expected, be > done elabo
rately and thoroughly in the report of the Coml
missioner. Be desires, - however; -to call altea
tion to a few important facts In regard to sPme
branches of business in- the United States; the
consideration of which - may-tend to give a
proper direction to the public, mind,upon h
question soahsorblng and important. , , i - . -
No single ' Interest In the United- States,- fos
tered although It may be by legislation, can
long prosper at the expense of other great in
terests. Nor can any Important interests be
crushed by unwise-or unequal laws,-without
other interests being thereby prejudiced.- For
illustration: the people of the United States are
naturally a commercial andmarltlinepaople—
fond of adventure, bold,: enterprising; .persist
ent. Now, the disagreeable. fact.must be ad
mitted, that, with unequalled facilities for ob
taining the materials, and. with acknowledged
skill In ship-bnilding—witbthousands of miles
of sea-coast, indented iwith. tbe..finest harbors
in the world—with surplus . products , that re- r
quire in their exportation a large andinoreas
lng tonnage—we camneither profitably build
ships nor successfully compete with English.:
ships In the transportation ef .ourown produo- -
tions. Twenty years ago. it was anticipated,
that ere this theUultedStates would be the first
maritime power lb the world. Contrary to our
anticipations, our foreign commerce has de-’
clineanearfy fifty per cent, within the last six
years. The tonnage of American vessels en
gaged in the foreign carrying trade which en
tered United States Dorta waa—
In 1860 10,92,280 tonß.
In 1865 2,94:1,661 tons
In 1866 ...- 3.372,060 tons.
The tonnage' of such vessels which were
cleared from the United States was—. .
In 1860..... 6.165,924 tons.
In 1865 3,025,134 tons.
In 1566 - :.... 3.383.176 tons.
The tonnage of foreign vessels which entered
our .fort* was—
In iB6O 2,353,911 tons.
In 1865 3,216,967 tons.
In 1866 : - 4,410,421 tons.
The tonnage of foreign vessels which were
cleared was—
In 1860 - 2.624,005't0n5.
In 186> - 3.595,123 tons.
In 1866 4,438,834 tons.
It is true that a large proportion of this di
minution-of shipping and ship-building was
the effect of the war. The great destruction of
merchant vessels by rebel crullers no. only In
duced sales to neutrals, but dlsoonraged build
ing. Alter the war, however, the Bqaretty of
American vesselspugbt'lto have produced, and,
but for a redundant currency and high taxes,
would have produced activity .in our ship
yards and a rapia increase of tonnage; but this
haß not been the case. The prices of labor and
materials are so: high that ship-building can
not be made profitable in the United states,
and many of onr ship-yards are being practi*
. cally transferred to the British Provinces. It
is only a few years since American ships were
sought after, on account of their superiority
and cheapness; and ; large numbers of vessels
were built In Maine and other Slates on foreign
account, or sold to foreigners, while, at tne
same time, onr own mercentile marine
was being rapidly increased. Now many of
our ship-yards are abandoned, and in
others very little activity prevails. It is
true there has recently been some increase in
onr foreign tonnage, but a good part of, this In
crease is apparent only, and 1b the result of the
new rule of admeasurement. It is an important
truth that vessels can be built very much
cheaper in the BriilshProvincea than in Maine.
Nay.further, that timber can be taken from
Virginia to the provinces, and from these prov
inces to England, and there mode into ships
which can be sold at a profit; while the same
kind ofvessels can only be built in. New Eng
land at a loss, by toe most skillful and economi
cal builders. But the evil does not stop here:
if the only, loss was that which the country sus
tains by the dißfcohtinuance of ship-building,
there would he less cause ol complaint.
It is a weU-establtshed general, fact, that the
people who build ships navigate them, and
that a nation- which ceases to build ships
ceases, of consequence, to be a commercial and
maritime nation. Unless, therefore, the causes
! which prevent the bidding of ships In the
' United Stateß shall cease, the foreign carrying
1 trade, even of onr own productions, must be
yielded to other nations. To this humiliation
and loss the people or the United States ought
not to be subjected. If other branches of In
dustry are to prosper, if agriculture Is to be
profitable, add manufactures are to be extend
ed, tbe commerce of the cbnntry must be re
stored, sustained and increased. Tne United
States will not be " a first-class power among
the nations, nor will her other Industrial In
terests continue long to prosper as they ought ,
if her commerce shall be permitted to lan
guish.
Tbe same causes—a redundant currency and
hlghtaxea—that prevent ship-building, tend to
pi event the building of houses and even of
manufactories. So high are prices of every
description that men hesitate to build dwell
lrgs as last as they are required, and thus
rents are so advanced as to be oppressive to
lessees, and the healthy growth of towns and
cilleß Is retarded.. So it is in regard to manu
factories. Mills which were built before the
war can be run profitably, but so expensive are j
labor and materials that new mills cannot be
erected and put into Operation with anynros- I
pect of fairretums upon the Investment, unless i
npon the expectation that taxes, will remain as
t hey are, and prices be sustained, if they are not
advanced. The same causes are injuriously af
fecting agriculture and other Interests which It
ls notnecfeßsary to'particularize.: It Is every
where observed that existing high prices are
not only oppressing the masses of the people,
but are seriously checking thfi development,
growth, and prosperity" of the country. It Is
not 'denied that the losses which the
country has sustained, of able-bodied
men by the war is one cause of'existing high
§rlces;bnt mainly they are the-result ofa xe
undant currency and high taxes.. ‘ .
Toralse'the large revenue which Is now re
quired, by systems of internal and external du
ties, which, working In harmony, shall neither
fepress industry nor check enterprise, and
which shall be so devised as to make taxation
hear most' heavily upon those who are most
‘ benefittedhytaxea and by the debt whioh ren
'dfers taxation necessary, requires great practi
cal knowledge - and - wise statesmanship: CThls
subject; always an interesting one to the heav
-1 lly indebted natlons of Europe, has become, as
oneof the 1 results of the war, deeply Interesting
to the people of the United States. The Secre
i tary does not, as before stated; intend to dis
cuss it, bnt he ventures to suggest that the fol
lowing geneml principles, some of which have
been acted ttpbn by Congress, and the correct
ness of all of which have been proved by other
nations, may lie safely adopted as a guide tothe
.legislation that la now required: i : !
■ l.'That the fewest-numDer of articles, con
sistent with the amount of' revenue, to be
ralsed. Bhould be subjected to internal taxes, In
order that the system'-may be simple, in Its
'execution,-and as little offensive and annoy
ing as possible to the tax-payers, ..
2. That tbe duties upon imported commodi
ties should correspond and harmonize With! the
taxes upon home, productions; and 'that these
duties should not he so high as to be prohibi
tory, nor to.build up home monopolies, nor to
prevent that, free exchange of commodities
Which Is the-llfe of-oommeroe. Nor, on l the
cither hand, should they be so low as to seriously
-impairthe revenues, nor to subjeot the hbme
manufacturerS.burdened with heavy Internal
’ taxes, to a competition with cheaper laboriand
larger capital..which ..they, may be unable to
'■sustain.: ■, . ... ... F
. 3. That therawmaterials used in building and
manufacturing,, and which are to be largely en- :
hanced.in.valne.by.the. labor which Is to be ex
pended upon them, should be exempted from
' taxation, or that tbe. taxes upon them should be
low In comparison with the taxes' npon other
. .articles... This la the pplioy. qf. other enlightened
.nations and p lt:i& believed that the diminution
of direct revenue which it would Involve, If
adoptedby .the. United IStates, would.: be more
than made up ..by the,augmented value which
- it would give to labor, and hy the inorease of
productions and of exports which would be sure
to result from it. It should be constantly borne
In' mind, that taxes upon raw materials dlrpqtly
Increase tbe cost of production, and thus tend
either to reduce the product of labor oi; to pre
sent exportationß.to.loreigiimarkets.
4. That the burdens of, taxes shouldSSfaU
. chlefly.unon .those whose interests are protected
by taxation; and upon those to whom, .the pub
-1 lie debt , is a source of. wealth and profit, and
lightly upon the laboring classes, to whom taxa
tion and the debt are without so many compen
satory advantages.
She next of the series of proposed remedies Is
an issue of bonds, bearing interest at the rate of
not exceeding five per cent, and: payable in.
Europe, to an amount. sufficient- to absorb the
six per cent, bonds in foreign hands; and sup- .
ply the European demand lor • United states
securities for permanent investment. No one
regrets more than the. Secretary, the fact that
so large an amount of our bonds is held abroad,
or the unfortunate condition Of onr trade that
has transferred themthlther. The opinion that
the country has been benefited by the exporta
tion'of its securities, is founded upon thesup
: position that we hav«MW?ceived real capital in
exchange for them. This supposition is, to a
large extent, unfounded. ' Our bonds have gone
abroad topay for goods, which, without them,
might not have been purchased, i Not; only
have We exported , the surplug products of our
nixies and onr fields, with no small amount of
our manufactures, but a' large amount 6f secu
rities also, to pay for the 1 articles which we
have purchased- from other countries. That
these purchases :have been stimulated and in
creased by the facility of haying for them in
bonds, can hardly, be. doubted. Onr importa
tions of goods' have been '.increased bynearly
the amount of '• the bonds which have hsenex
- ported. -Not one dollar in five of: the .amount
of the five-twenties now. held in England and
upon the Continent, has. been returned to the
United Statesin the form of real capital; But
If this were not a true statement of the case, the
faot exists,' as has been already stated, that some
three hundred and fifty millions of government
bonds—not to mention State and railroad bonds
and other securities—are in. the hands of the
citizens of other countries; which may be re
turned at any time for sale in the United States,
'and which; being so held; may seriously em
bs rrassour efforts to return te specie payments.
■ After giving the subject careful consideration,
the Secretary.basconeluded that it is advisable.
that be should be authorized to'lssue bonds not
: hiring more than twenty-' years to run, ana
: bearing a low rate of interest, payable in Eng
land?® Germany, to be used in taking up the-
Six per cents now held abroad, and in
meeting any foreign demand for investment
that may exist, 1 The question howto be con- -
sidered is not how shall our bonds he prevented
from going abroad, for a large, amount has.
already gone, and,others will follow as long as
onr credit is good and we continue to buy more
than we can pay for in any other way, but hbw
shall they .be prevented from being thrown
1 upon the home market, to thwart our efforts in
restoring the specie standard. The Secretary
sees no practicable method of doing this at an
early day; but by substituting for them bonds
which, being payable-principal and Interest in
Europe, will be less likely to be returned when
their return is the least desired. The holders
of oar securities in Europe are now subject to
great inconvenience and not a little exDense in
collecting their conpons; and it is supposed
that flve per cent. 1 , or perhaps four and a half
per cent, bonds, payable in Condon or Frank
fort, conld-bnsufcstitnted for ourrsixper cents,
withontany other expense to the United States
than the trifling commissions to tbe agents
through whom the exchanges might be made,
fi be saving of interest to be thus effected would
be no inconsiderable Item; and the advantages
of having onr bonds in Europe placed in tne
bands of actual Investors is too Important to
be disregarded. <'
Fifth. Tbe fifth and last remedy suggested Is.
the rehabilitation of the States recently in ln
snrreciion.
In alluding to thls-snbject, the Secretary feels
that he steps npondangerons ground, and that
be may be charged with Introducing a political
toplo in tbe financial report: bat, in his opinion,
there 1b no question now betore the country
more important in its bearings upon our finan
c»b than the political and consequently indus
trial statuß of the Southern States. Embracing,.
as they do, one-third part of the richest lands
of the country, and producing articles of great
vulue tor home use-and for exportation to other
-countries, their position with regard to tbe gen
eral government cannot remain unsettled, and
their industrial pursuits cannot continue to be
seriously disturbed, without causing sucha
diminution of the production of their great
staples as must necessarily affect onr revenues,
ana render still more unsatisfactory than they
now are, onr trade relations with Europe. As
long as the present anomalous condition of
t hese States continues—as long as they have no
parilcipatlonin the government, to the support
of which they are cpmpelled to contribute—it
is idle to expect that their industry will be re
stored or their productions increased.
On the contrary, there is reason
n> apprehend that until harmonious
relations again exist between the Federal gov
ernment and these States, the condition of the'rr
Ir.dnstrial Interests will becometlay by day
more uncertain and unsatisfactory. There will
be no real prosperity in these States, and con
t eqnently no real prosperity in one-third part
01 the United States,-until-all possess again
equal privileges under the Constitution. Can
ibe nation be regarded as in a healthy condi
tion when the industry of so large a portion of
it is deranged ? And can the labor question at'
tbe South be settled as long as tbe political
stains of the South is unsettled V Can thena-
floral credit be elevated and the public debt be
rapidly reduced nnless the Southern States
shall largely contribute to the public revenues;
and can such contributions be relied upon as
long as they remain In their present disfran
chised condition? Will the tax-payers-of the
horth continue to be patient, unless their bur
dens of taxation can be lessened by being equal
ly shared by the people of the South ? Regard
ed thus as a purely financial question, the rela
tion of these States to the Federal Union is an
exceeding,y-lnteresUng and important ono.and
as such itdemands the calm and careful con
sideration of Congress.
The Secretary has thus presented In such
manneras hls pressing, official duties would
penult, his views of the financial condition of
ibe country, the causes of trouble, present and
prospective, and the remedies for the same. If
these remedial measures shall be approved by
Congress, and enforced by appropriate leglsla
-1 lon, be Is confident that specie payments may
be resumed by the time our Interest-bearing
notes are retired, which must be done in less
than two years, and probably ,wiU be in a much
st or ler period ■
These measures look to an Increase of labor,
and consequently of production—to a fulfll
. incut of obligations by the government and the
banks—to a reduction of the public debt at the
same tlme that taxes are 'being equalized and
lessened—to Jower prlces,ahd apparently harder,
but really more prosperous times—to o restora
tion of specie payments without the financial
troubles which nsuallyprecede a resumption
alter a loDg period of suspension and inflation.
The Secretary does not mean to assert that the
adoption of all these measures [although he re
gards each as important] - is aosolutely
necessary to a return to specie pay
ments, nor that other remedies may not be
adopted by Congress to' rescue the country
from impending - financial troubles. He pre
sents, as be considers-it to be his duty to do, his
own views; and asks that they may receive care
lul consideration, and be adopted ill they com
mend t themselves to the wisdom of Con
gress, and rejected if measures - better calcu
lated to secure the desired -end can.be devised..
Tbe most sanguine and hopeful must perceive
that the husipess of the country cannot lor a
much longer time he rnn upon the present high
level with safety. The, speculative interest,
large and powerful in Itself, is receiving dally
new accessions of strength by the Increase of.
individual credits; and when speculators and
-debtors control- the- financial polioy of the
country;-a financial collapse is inevitable.
’ These untoward, and dangerous Influences can
now be resisted,,and the true interests of the
people require that they should be resisted
promptly and decisively- • !
Unsatisfactory as Is, In many respects, bur
condition, there' !b cause for .congratulation that
we have thus far escaped thosesevere financial
troubles which usually befall. nations at the
close of expensive and protracted wars. With
our vast resources and the buoyant and persist
ent energy of a free people, it will be our own
fault If we do hot escape them, altogether. '
The Secretary has pointed out the financial
dangers around and before ns, In order that
1 they may. be considered and. avoided before
tbey can culminate In general disaster. Strong as
is his conviction that we have been for some
time, and still are, moving in the wrong direc
tion, and that much of our prosperity
is unreal • • and - unreliable, his confi
dence in the ability of the country to
right Itself speedily ,is unshaken. We have but
touched the surface of our resources—the great
mines of our national wealth are, yet to bdde- :
- veloped. The expeelences 01. the past four
years have only assured us of our strength! It
Is only necessary that our true situation beun
derstood In order that the proper remedies may
be applied. There is no Insurmountable obsta
cle in the way of restoration to perfect financial
health, without the. painful trials to which It
has been apprehended.we must , first be sub
jected. To-be a-00-worker with Congress and
tbepeoplein effecting this most desirable result
has been, and will, continue to be, the highest
aim of the Secretary. .
After a careful' survey cif the whole field, the
Secretary is of the opinion that Bpecie pay-'
ments may be resumed, and ought to be re
sumed, as early as the first day of Jnly,lB6B.
while he indulges the hope that such will be the
character of future legislation; and snob the
condition of our productive industry, that this
most desirable event mav be brought about at a
still earlier day. ' -
Tbe following is a’ statement of the public
debt, June SO, 1866, exclusive of cash in Tseaa*
. ury: ' .
.. IBonds, 10-40’s, 5 per
cent,,.due In 1904 $171,219,100.00
JSonds, .Pacific Rail-,,
road, B per cent.,
, . due in 1895 and 1i96 6,042,000.00
■ Bonds, 6-20’s.' 8 per ,
l cent., tide in 1882,
1884, and 1885 . 722,205,500.00
Bonds, 6 per cent., ■ ; '
. due In.lBBl 285,317,700.00 .
Bonds,6 per cent.,due
In 1880 18,416,000.00 :
BondB,spereent.,dne •
In 1874?.. 20,000,000.00
Bonds; 6 per cent.,
due In 1871............ 7,022 000 00 ■
v.;. , --—-81,210,221,300.00
Bonds, 6 per cent.,
due In 1868.™....... 8,908,341.80
Bonds, 6 per cent., ' '
dnein1867.......:;..;... 9,415,250.00
Compound Interest 1 - ; .
notes, due In 1867
and 1568...... J. 59,012,140.00
7.30 Treasury notes,
due in 1867 -and'
1868....:
806,251,550.00
-—: 983,587,281.80
Bonds, Texas
.nlty, past Sue, not
'presented..;:. $559,000.00 .
Bends, Treasury ■ -;- - i
notes,ic;, past due,
not presented.... : 3,815,675.80 ; ■
, , . . 4,374,675.80
Temporary loan, ten ,
day5’n0tice............ 120,176,196.65
Certiilcates-. of • in-- ;
. :debtednees, pasfc <
due, notpresented 26,391,000.00 < . ,
:• : . ■ —146,557,196.65
United States note's $400,891,368.00 :
i'raetional currency 27,070,876.96
Gold certificates of -
deposit ....... 10,713180.00
• ... -p $438,675,424.96
T0ta1.............................. —...........82.783.425i879.21
Cash'ln Treasury, 8182.887,549.11.
Statement of the publiedebt, Ootober 31,.1886,
eaclußivnof cash In Treasury: . ..
Bonds, 10-4 Q’s, 5 per
ct., aue1nJ904........ 8171,06?,350.00
Bonds; Pacificßall
■ road, 6 per cent- .i ■;
' dnern‘lB9s'and ? 96 9,882,000.00.
-Bonds, 1 5-20’s, 6 per. .. . - .
cent., due In 1882,
•3884, and 1885,,.;...... 823,944 i 00a0Q
Bonds, 6 per cent,
due in 1881....... 265,324,750.00
Bonds, 6 per cent, •
due In 1880 18,415,000.00
Bonds, 5 per cent.,
due in m4..‘.;..—...! 20,000,000.00
Bonds, 5 per cent.,
due In 1871. . •
Navy pension fund,
6 per cent... 11,750,000.00
r -81,327,407,100.00
Bonds, 6 r per cent.. •
due in 1868... 8,290,941.80 ■
Bonds, 6 per cent.,
due In 1867... 7.742^00.00
Compound interest
notes; due In 1867
and 1868...:..... 148,512440.00
7-10 Treasury notes,
due in 1867 and ’6B 724,014,300.00
■ 555,560,181.80
Bonds, Texas in
demnity, past due,
not presents! 384,000,00
Bonds. Treasury
notes, temporary
loan, certificates
of indebtedness,
&c„ past due, not
presented... 36,604,909.21
oo oqa qoq 91
United States notes 5390.195.780.00 ' '
Fractional Cur
tency 27.588,010.33
Gold ceruacates of
deposit - 10,896,980.00
428.650,775.33
Cash In Treasury, $130,326 960.62.
. The Secretary estimates that the receipts for
; the three quarters ending June 30,1567, will ba
as follows:
: Receipts from cus
toms 8110,000,000.00
- Receipts from lauds. 500,000.00
. Beceipts from inter
nal revenue- 186.000, OOOBD
Beceipts from mis- %
cel laneons sources. 20,000.000.0i\
r-t5316.500.000.00
The expenditures, according to his estimates,
' will-be—
For the civil service. 37,406,947.39
For - pensions and
Indians-.... 12,263^17.21
For the War , De
partment, Includ
ing $15,000,000 for
bounties- 58,804,657.05
For the Navy De
partment ..... 23,144^10.31
For interest on the o
public debt 105,551,512.00
237,169,113.96,
Leaving a surplus of estimated re
ceipts over estimated expendi
tures of. 79,330.856.01,
The receipts lor the next fiscal year, ending.
June 30,1868, are estimated as follows:
From customs. -.5145,000,000.00
From internal reve
nue— 265,000,000.00
From lands 1,000,000.00
From miscellaneous
sources. 25,000,000.00
5436,000,800.09 •
The expenditures are estimated
as follows:
For the civil service— $50,067,312.0S
For pensions and In
dians 25,355,459,09
For the War Depart
mentinclnding $64,-
600,000 for bounties... 110,861,961.89
For the Navy Depart
ment 1 . 30,251,605.28
For interest on the
public debt 133.678,213.00
350,247,641.32
Leaving a surplus of estimated re
ceipts over estimated expendi
tures of—. 555.752,355,65 in
in regard to the commercial intercourse be
tween the United States and British America,
the Secretary adheres to the general opinion
expressed In his report of 1865, that until our
revenue system Is lully revised and adjnstsd to
the financial situation of the country, this sub
ject should not be placed beyond the control of
Congress, bnt shonid be left to concurrent legis
lation and such regulations as the Treasury. De
partment may be authorized by law to pre
scribe. Another reason for arrangements tuns
flexible is presented by the uncertainty of the
political situation of British America.. The
scheme of confederation, which proposes to
transfer questions of revenue and external
trade to a single central authority, has, not
been adopted, and the opposition to the meas
ure may prevail with the new Ministry of Eng
' land, either to modify materially the terms of
the Quebec convention, on to subject the whole
measure to the hazard of a popular vote In the
Provinces..
However the political problem may be solved,
it is not unlikely that when the United States
shall have simplified existing methods, and re
duced existing rates of taxaliouko as to receive
the latest amount, of revenue with the least
bhrden to industry,. British America will be
prepared to undertake a‘ system "of publle Im
provements along the ehannelof the St. Law
rence and through Northwest British America
to the Faclflc coast, which, by.the- financial ne
. cessitles attending itsadoptlon and the admin
istration of a"federal government; wlllsuggest
a Zollvarlen, or a complete assimilation of ex
cise and custom dntlesohe ach side oftheNorth
ern frontier. At present; Inaction upon this
surjeat would appear to be the true policy of the
•United States.
Under the authority conferred by Congress at
its last session, the Marine Hospitals at Bur
lington, Vermont,at Charleston, South Caroli
na, and at Cincinnati, Ohlo, have beensold,and
proceedings have been taken to dispose of
others not required for service, when It shall be
louud possible toobtaln fair prloes.fdr them.
A sale has also been effected of the old marine
hospital at Chelsea, Massachusetts, on satisfac
tory terms.- The new hospital building at Chel
sea, and that at'Cleveland, Ohio, have received
such additions and repairs as were necessary to.
put them In serviceable condition, and all ma -
rine patients within practicable' reaoh of ;
i them have been gathered , there for treatment.
a similar plan or concentrating the patients
at prominent points has been as far as practi
cable pursued throughout the Country, by
which together with a rigid, adherence; to the
fundamental principles on. which ' relief
should be afforded; the expenses of the
establishment in the Northern States
have been materially redneed, although the en
larged demand for hospital privileges at■ the
South, consequent upon the reopening of that
section to commerce, in connection with the
very exorbitant prioea prevailing; there, will
cause the total expenditures to he somewhat
increased. -It is hoped, however, that this in
crease will be attended Dy a corresponding ad
dition to the collection- of taxes from the Bea
rn en.
The revenue cutters on the Atlantic and Pa
cific coasts.ahd on the lakes,have been diligently
and ÜBeftuly employed In preventive service
during the last year.
It was found Inexpedient to sell, as authorized
by Congress at Its last session, the vessels here
tofore reported as unsuitable fbr the entter ser
vice, (with the exception of the Cuyahoga, the
largest of the olass, which has been offered for
sale, but has not yet- been disposed- of,) until
their placeß should be supplied by others. Con-,
seqnently they have been Kept on active duty,
- and will not be withdrawn until the small sail
ing vessels; eight in number, whloh have been
recently contracted for, shall be completed, as
they are expeoied tobe, In the course of two or
: three months. So soon as these can be assigned
to duty the others will be withdrawn aad Bold, .
On the second day of August last, in accords
ance with the,pro vision contained in the civil
appropriation act, approved on the twenty
eighth of July. 1866, Mr. J. Boss Brown was ap
pointed a special commissioner tooallect relia
ble statistical information concerning the gold
and silver mmeßof the States and Territories
west of the Rocky Mountains; and on the twelfth,
day of September last; Mr. James W. Taylor was
appointed a commissioner to perform the same
work in the States and Territories east of the
mountains.. Their, preliminary reports have
not jet been received, but it is expected that
they will be In reason, to be laid before Con
gress-early in the session., The well-known
energy of these gentlemen, and their familiari
ty with the subject of mines and mining leads
the Secretary toexpect that their investigations
will be thorough, and their full reports interest
ing and valuable; A copy of the. instructions
(which contain an outline of the duties devolved
upon-them) accompanies this rgnort.' .
. On the third , .day of June last, Mr, John Jay
Knox, a clerk in this;Department, a gentleman
of excellent judgment and business hablts,'was
sent to California to examine into' the condi
: tjon of the Mint and of the.offioe of the Assist
ant Treasurer in San Francisco; and .to look
after some other matters In that. quarier, of
interest to this Department;- Sis report con
tains so many valuable suggestions that it has
been thought advisable tor append it to the re
port ofthe Dji-estor of the Mint. Particular at
tention Is requested to that part of it which
refers to assay:offices, and'their inutility in re
mote districts. l If, as he concludes, the business
‘of assaying can, not .only without detriment,
but with positive advantage to the mining
interest, be left entirely to private enterprise
where there are no established mints, the gov
' ernm'ent should be disconnected from-it in such
districts without delay. •
1 The Statistical Bureau, authorized by the act
entitled “An act to protect the revenue, and
for other purposes,” approved July 23,1866, was
organized on the fifth day of September last, by
the appointment of Mr. Alexander Deltnar as
Direetor: ' Mr. Detmar deservedly enjoys a high
reputation as a statistician, and it is expected
that, under his, direction, this Bureau will be
of great benefit to this Department and to the
country. : ~
After nutting in proper condition the numer
ous books relating to commerce and naviga
tion, which have been transferred to this Bur
eau, the Director will prepare reliable statistics
of the resources of the countiy and the extent
to which they are being developed. Monthly
reports of imports and exports, taxes, imposts,
wages, product?, and markets will also be regu
larly prepared, and every means employed, to
to ascertain the progress of population arid In
dustry, The Secretary is happy to he able to
state, although little more than two months
have elapsed since the Bureau was organized,
thafrgood progress has been made in the work
devolved upon it.
Accompanying this report will be found a,
highly Interesting report from the Light-house
Board, wbicb presents in a condensed form a
history of their operations from 1852, the date of
the organization of the board, to the present
time. In no branch of the service have more
skill and ability been displayed, taatr in this,
and In none have the outlays been productive c IT
more satisfactory results.
The work under the Coast Survey has been
prosecuted during the past year with accus
tomed energy, and its operations hava been re
commenced on tne coast where they have been
for some years past interrupted. The impor
tance of th ese surveys was 4 ully established dur
ine tbe recent; civil'war, and they cannot fail
to~be of constantly increasing value to com
merce, The work is steadily advancing towards
completion, and the Secretary recommends Li
lt the proper and necessary appropriations.
For the detailed operations 6f the Mint and
branches, I respectfully refer to the report of
tb e Direetor of the Mint.
The total value of the bullion deposited at
the Mint and branches during the fiscal year
was $38,947,156.83. ol which $37,223,61017 was in
gold, and $1,723,516.71 in silver. Deducting the
redeposits, the amount of actual deposits in
$31,911,719.24.
... $2,681,636,966.31
The coinage for the year was in gold c01it
528,313,944.90; gold bars, $9415.485.46; silver coin.
$680,264 58; silver bars, 5916.352.C5: cents coined,
one, two, three, and flve-cent pieces; $646,570.
Total c0inage,529,610,779.40. Total bars stamped,
$10,031,867.50. .
The gold deposits, of domestic production,
were, at Philadelphia, $2,815,616 34; San Fran
cisco. $17,436.49948; New York, $3,557,681; Denver,'
$169,982.94. The silver deposits weTe, at Phil
adelphia. $56,118.81; San Francisco, $623,682.21;.
New York, $213,481.
The gold and silver deposits of foreign produc
tion were $2,047,674.76. The amount of gold
coined at Philadelphia was $10,096:645: .at San.
Francisco, $18417,300; of silver, at Philadelphia,.
$399,314,50; at San Francisco, $280,950; of bronze
and nickel and coppers, at Philadelphia, $680,-
264.50. .
The law enacted at the last session of Con
gress, providing for the reorganization of the
system of appraisements at the port of New
York has been carried into effect. Bo little time
has elapsed since the new Board
that the necessary reforms have not yet been
consummated; but they have been undertaken
with Eomnch energy and judgment by the Ap
praiser, Mr. Themas McElralb, that the best re
sults are confidently anticipated from the reor
ganization.
Recent calamities at sea. especially the dis
aster to the steamship “ Evening Star,’' ou the
third of October last..whereby two hundred and
fifty lives were lost. Indicate a neeessi'y for the
enactment of judicious laws forthe government
of onrmercantile marine, with especial refer
ence to the more complete security of passen
gers. It is believed that in tots particular we
are far behind some other nations; and while
this is the case we shall not attain that mari
time strength and prosperity to which wo
should aspire.
An inquiry into the cause of the disaster Jto
the “Evening Star,” made by Captain AY. iL.
Mew, under instructions from this Department,
elieited several facts, to which earnest atten
tion Is invited, showing they do the radical de
lects in existing laws, and indicating the legis
lation required to prevent loss of life and to en
hance the value and security of property in
ships. A copy of Captain Mew’s report Is here
with transmitted.
The attention of Congress is respectfully
ealled to the accompanying lnterestlngreports
cube heads of the respective Bureaus, all of
which contain valuable information - and sug-
gestions, and indicate the satisfactory manner
in which the general business of the Deuart
ment is being conducted under existing law
and regulations. The efficiency of all the
Bnreans would, however, have been greatly 5 1-
creased and the expenses thereof would doubt
less have been reduced by the passage of the
hill for their reorganization, whloh was under
consideration at the last session. The machine
ry of the Department, sufficient for the prompt
and proper performance of the business before
the war, is insufficient now. The Bureaus need
reorganization, and justice and economy de
mand higher compensation to officers and
clerks.
The Secretary is under obligations to the offi
cers and clerks of- the Department for the very
satisfactory manner-In which, with few excep
tions, they have, during the past year, performed,
their Important and responsible duties.
HughTHcGuixosh. Secretary.
; HoD. Schuyler Colfax, Speakerof the House of
representatives.' , r
THE FIME ABTte
iOOEING GLASSKS.
JAMES & EARLE & SONS,
■with greatly increased: facilities, said a large oorps ot?
first-ejass workmen*, are now manufacturing a
LARGE STOCK OF
LOOKING GLASSES,
puara-teedthfeßEST FRENCH PLATES ONLY OR
NO BALE, and would call attention to thea-daily aug
menting ASSORTMENT aa UN EQUALED ana at
..... .
VISY MODEBATE PBIC3S.
816 CHESTNUT STREET.
r —H W A TTVFfI' BROS.’
IkjSShßve dealt in them for 14 years, andlhJafyi
ITT zT! guarantee each ifor 5 years. Prices'* '
from {3OO te $5OO, J.E. GOULD,
poioititsp ■ Seventh and ooestpnt.
omcKßßran upright pianob.
914 CHESTNUT STREET.
ItT<T' OCS-tf-IP W. H. DUTTON.
STECK <£ CO.’S PIANOS.
JEjSISII HAINES BROS.’ PIANOS.
ITTZIiAIAbON & HAMLIN’S OABINET'II *■» •
Only at J. E. GOULD’SHeventh * Chestnut, nio.tsp
" MONEY TO ANT AMOUNT LOANER
N UPON DIAMONDS, WATCHES. JEW
JL JL ELBY, PLATE. CLOTHING, &C-. at
B W JONKS-ACO’S^__
OLD ESTABLISHED WAN om®
Corner of THIRD and GABKILIi Streets,
Below Lombard. ... „ CTt
N. 8.-DIAMONDS, WATCHES, JEWELRY,
BUNB, Ac.. . , ■ ■ ■
ron basis at ,
remarkably low prices, noffl-imi,