IConeintiedfrom the First page.l Ibis exhibit shosva that the largo , sum of 51,4. m2,660,537/68 was expended in the payment of. the interest and of other demands upon tho: Treasury ha three years and seven months, being'. an average annual expenditure of ft508,6*.16, 861.68. • - • If the statement of the debt on the first day of April, 1865, had i ruled all debts due all that time ; and $1,822,6. ,537 68 had really heed expended in payment of the interest on the pith-L. to debt, and the current expenses of the Govern 4 merit between that day and the first day of No- t umber last, there would have been a profligacy .and a recklessness in the expenditures of the public moneys discreditable to the Government, and disheartening to tax-payers. Fortunately this Is not the fact. That statement (as is true' of ,all other monthly „ statements of the Treasury), exhibited only the adjusted debt according to the-books of the Treasury, and did not, and could not, include the large - sums duo to the soldiers of the great Union army (numbering at that time little less than a million of men) for "nay" and for "bounties." or on claims of we'll one kin& which must of zit cesslty have been un settled. For the purpose of nutting this matter, right, the Secretary bus endeavored to ascertain from the War and Navy Departments how unfelt of their respective disbursements, since the close of the war, has been in payment of debts proi perly chargeable to the expenses of the war. The Yellowing is the result of his inquiries: By the War Department ... 9Q By the Navy Department... 35,000,000 00 it has been impossible to obtain an exact state ment of the amount of such debts paid by the Navy Department, but sufficient information has been received to justify the Secretary in estima ting it in round numbetnnt thirty-five millions, which is probably an under 'rather it an ovee-es liniate. The expenditure& of the War Depart ment have been furnished in detail, and are be lieved to be sebstantially correct. These figures show that the money ex pended by the War and Navy Departments, be ' Sweat the first day of April, 1865, and the first day of November, 1868, on claims justlycharge able to the expenses of the war. amounted t 05630,421,125 90 _ _ To which should bc•added amount advanced to the Pacific roads.. Amount paid for laska $679,825,125 90 Deducting this sum from the amount of the re venues, $1,662,476,06220, and $160,174,47548, tho Increase of the public debt—the remainder, *1,142,825,411,078 or an average of $318,928,02189 per,annum, is the amount actually expended in the payment of current expenses and interest. It is thus shown that within a period of three „years and seven months, the revenues or the re ceipts from all Foams of revenue reached the 'enormous sum of $1,662,996, 062 20, and that *630,431,125 90 were paid on debts which were actually due at the close of the war, and for bounties which, like the pay of the army, were a part of the expenses of the war. Adding the amount thus paid to the debt as exhibited by the ..booke of the Treasury on the first day of April, .1865, it appears that the debt of the United States at teat time was $2,997,386,203 24, and that the actual reduction has been $470,256,650 42; and .but for the advances to the Pacific roads, and the amount paid for Alaska, would have been $519,- 650650 42. Nothing can better exhibit thegreatness of the resources of this young nation than this state ment, or show more clearly Its ability to make "short work" of the extinguishment of the pub lic debt. It will be borne in mind that these im mense revenues have been collected, while one third part of the country was in a state of great destitution, resulting from its terrible struggle to separate itself from the Union, with its political condition unsettled, and its industry in a great degree paralyzed; and while aidd the other two thirds were slowly recovering from - the drain upon their productive labor and resources—a ne cessary accompaniment of a gigantic and protrac ted war. The Secretary has noticed with deep regret in dications of a growing sentiment in Congress— notwithstanding the favorable exhibits which have been from time to time made of the debt paying power of the country—in favor of a post ponement of the payment of any part of the principal.of the debt, until the national resources shall be so increased as to makti the payment of it more easy. - If this sentiment shall so prevail as to give direction to the action of the Govern ment, he would feel that a very great error had been committed, which could hardly fail to be a severe misfortune to the country. The people of the United States will never be so willing to be taxed for the purpose of reducing the debt as at the present time. Now, the necessity for its creation is better understood and appreciated than it can be at a future day. Now it is regarded by a large majority of tax-payers, as aJ part of the great price paid for the maintenance of the Gov ernment, and, therefore, a sacred debt. The longer the reduction of it is postponed, the greater will be the difficulties in tee way of ac complishing it, and the more intolerable will seem to be the burden of taxation. The Secre tary, therefore, renews the recommendations made in his first report, that a eertain definite sum be annually applied to the payment of the interest and the principal of the debt. The amount suggested was two hundred millions of dollars. As the debt is considerably smaller than its maximum was estimated at, the amount to be so applied annually might now safely be fixed at one hundred and seventy-five millions of dollars, according to the estimate already made in this report. The subject of the currency in which the five twenty bonds may he paid—agitated for some lime past—was freely discussed during the recent political canvass, and made a question upon which parties, to some extent, were divided. The premature and unfortunate( agitation and discus con of this question, have been damaging to the credit of the Government, both at home and abroad, by exciting apprehensions that the good faith of the nation might not be maintained. and have thus prevented our bonds from advancing In price, as thcs otherwise would have advanced, after it was perceived that the maximum of the debt ...ad been reached,and have rendered funding at a low into of interest too unpromising to be undertaken. In his report in 1865, the Secretary used the following language: "Before concluding his remarks upon the na tional debt, tee Secretary would suggest that the credit of the five-twenty bonds, issued under the acts of February 25, 1862, and June 30, 1864, would be improved in Europe,and,consequently, their market value advanced at4tome, if Congress should declare that the principal as well as the interest of these bonds is to bo paid in•coin. The policy of the Government in regard to its funded debt is well understood in the United States, but the absence of a provision in these acts that the principal of th:, bonds issued under them should be paid in coin, while sueh P. , rovialon is contained in the act under which the ten-forties were issued, has created some apprehension in Europe that the Sve-twenty bonds might be called in at the expl eation of five y,,ars, and paid in United States :notes. 41though it is not desirable that our se curities should be held out of the United States, it is desirable that they should be of good credit le foreign G ..rkete on account of the influence which these markets exert upon our own. It is, therefore, important that all mb3apprehenelons on these points should be removed by an explicit declaration of Congress, that these bonds are to paid in coin. Without intending to criticise the inaction of Congress in •regard to a matter of so great im portance, the Secretary does not hesitate to say that, if his ..ecommendations had been adopted, the public debt would have been much lees than it is; and that the reduction of the rate of inter est would ere this have been in rapid progress. The Secretary doBs not think it necessary to dis cuss the question in this report. His opinions upon it are well known to Congress and the peo ple. They were definitely presented in his report for 1867, and they remain unchanged. He begs leave merely to suggest, as he has substantially done before, that alleviation of the burden of the public debt is to be obtained—note.in a decrial of the national credit—not in threats of repudiation—not in a further iseue of irredeemable notes—not in arguments ad dressed to the tears of the bondholders—but in a clear and explicit declaration by Congress, that the national faith, in letter and spirit, shall be in violably maintained—that the bonds of the United States, intended to be negotiated abroad, as well as at bored, are to be paid—when the time of payment arrives—in that currency which is alone recognized us money in the dealings of nation 'with nation. Let Congress say thing promptly, and there can be but little doubt that the.eredit of the Government will so advance that within the next two years, the interest on the larger portion of the debt can be reduced to a isatisfaetory rate. Ile therefore earnestly recom mends that it be declared, without delay, by joint reaclagion, that' the principal of all bonds Of the United States is to be paid in coin. It is also recommended that the Secretary be authorized to issue $500,000,000•of bonds, eno,- 41gai.000 of which shall mature annually; the Unit 0b0 2 000,000 to be payable, principal and interest, D mural- money—the principal and interest of the rest in coin; and also suck further amount of Sends as way by necessary to take up the ov.t- standing six per cents. and,the non.interest bear- t hag debt, payable in coin thirty years after date, , and redeemable at any time after ten years at the pleasure of the GpVernment—the interest to be paid semi-annrArin'coin, and in no case to ex-, cud the rate of flveper coat:'; provided the Beer& tary may, in Ips t , disemtion, make the principal and interest of 000,000;000 of these bonds pay able at such city or cities in Europe as he may, dcem.best. , The, met that; necording 'to ',the re,Comnenda-, lion, $50,000,000 of the bonds to be leaned are to become duo each year for ten consecutive years, (at the expiration of which time:all of the bonds would be under the coLtrol of the Government) would ensure an annual reduction of $50,000,000, of , the, public. debt, and impart a credit .to the other bonds which 'would ensure- the of them onftivorable terms. * * * w * * In recommending the issue of bonds beating a lower .rate .of intereSt, to be exchanged for the' outstanding six per cents., the Secretary must, not be understood as having changed his opinion in regardto the expediency or the wisdom of thO, recommendation in his last report: "That the stet of March , 3, 1865, , be ao amended as to authorize the 'Seeretary of the Treasury to, issue six per - cent. - gold-bearing bonds; to be known as the Gonsolidated debt of the United' States, having twenty years to run, and redeem able, it it may be thought advisable, at an earlier; day, to be exchanged at par for any and all other obligations of the Government, one-sixth part of the interest on which, in lien of all other taxes, ateach•semi-annual payment, shall be re served by the Government, and paid over to the States according to population.' He refers to What ho then said in advocacy of that recommendation, as an expression of his well-considered opinionS at the present time,and be is only prevented from repeating the recom mendation,, by•the fact that it met with little ap prove] at the last session, and has not grown into favor since. Ho sincerely hopes that the future history of the debt will vindicate the wisdom of those who are unable to approve the proposi sition. , The following is a statement of the pablic debt on,the let of July, 186 a: )I+llT MARINO COIN INTEREST 5 percent bonds 46221,589,480 00 6 per cent. bonds for 1867 and 42,194,000 00 7,200,900 00 per-1868 ti cent-nnittinni 6 per eent p. 20 bonds Nairy pension fund.. 6E03,441. 80 . 283:677,200 . 00 .. .1 657,644.600 00 13.000,000 U 0 $2083,003,64180 DEBT BEARING CI7P.,RENGT INTEREST. per ceut bonds... .. . . $29.088,000 Od 3-year compound interest notes 21,604 890 00 a year 7.3onoies 25,634 900 00 3 per cent. cor.ificates 50,000 OM 00 126,228,790 00 MATURED DEBT NOT PRESENTED FOR PAYMENT. 8-year 7 10 noteO, due August 15.1867, and June 15 and July 1 5.1 186 a..... • • ... $12,192,750 00 Compound interest notes, matured Jtuital), July 15,• August 15, O cto b er. 15, and December.lsll367,,And May. • 15 leak ....... . . .... .. 6,556:920 00 Bonds, Texaaisdemnity.... 256800 00 Treasury .notes,nets July 17. 1861, and prior thereto.... 155,111 64 Bonds, April 15 1842 ... . ti,UUJ 00 Treasury notes, March 8, • .1868 555.492 00 Temporary loan. 797,02.9 00 Certiticata of indebtedness, 18,000 00 20,527,302 64 DEBT BEARING NO INTEREST. • United States notes.... $256,141.723 00 .1. factional currency 32.C6 951 75 tlold certificates of deposit.. 17,678,640 00 Amount in Trevaury, coin.. :5 $ 61 28 27 4 1z 06, 6 : 23 7,3 7704. 1.4 , ± Total deb 159 L Amount in Tioaeury,cur.3o 505,970 97 ...... $1 1 31.096,532 25 reneY• • • • • " • " ...... --- Amount oe debt, less cash in Treasury .. 2,505,200,516 Pi The following is a statement of receipts and ex penditures foi the fiscal year ending June 80,1868; Recatpts from $164;454.509 56 Receipts from lands.... 1,348,715 41 Receipts from direct, 1,788.143 85 Receipts from internal revs. - nue. . .... . . ..... , 191,087,'w 41 Receipts irom sources (of which mint theta was received for pre mium on bonds sold to re deom Treasury notes, the sum of $7,078,203 42)...'....• 48,949,033 9 Total receipts, exclusive of loans... IL. $405,018,1183 M Expenditures for the civil service, (of which amount there was paid for pre mitim on purchase of Trea sury notes prior to matm rity, $7,001 151 0i.... ...... 560,011,018 71 Expenditures for pnsions and ... . 27,883,069 10 Expenditures by War De partment 123,246,648 62 Expenditures by Navy De _rartment.. . interest on 25,775,502 72 Expendi turee for the public debt 140.424,045 71 Total expenditures, excin. • ive of laitcipall of public debt............ $377.340,284 83 The following is a statement of receipts and expenditures for the quarter ending September 80, 1868: The receipts from customs $49,676,594 67 The receipts from lands... . 714,895 03 The receipts I tom direct tax 15,533 02 The receipts from internal revenue 313,785,836 tiB The receipts from miscel laneous ourcen (of Which amount there was received from premium on bonds sold to redeem Treasury Dotes the sum of $587,72512) 6,249, 979 97 --- Total receipts, exclusive of 10am....... $95.35, 868 77 Expendituree for the elvil e. rvice (of which amount there woo paid as a pre mium an purchase of Tres spry notes prier to mato. xpenichtute 8 , 300,C00 8121,227,106 33 for pensiLias and Indians— ..... 12,358,647 70 War epartment.... ...... 27.219.117 01 Navy Department.... . 5.64,7E15 3i Interest on public debt.... 38.742,811 37 Total expenditures, cadmic° of principal of public debt . ........ ........ ..... 105,152.470 73 The Secretary estimates that, under existing laws, the receipts and expenditures for the three quarters ending June 30,1869, will be as folio we: krona cuetonia. $12.5,000,000 00 Lando 1.1,00,0 W 00 Internal revenue. 100,000,000 00 Dliscellnneoua sources.. 20,000.000 00 .. ........ ...... And that the expenditurea for the same period, if there be no reduction of the army, will be— For the civil t'el vice Pensions and indlane.... War Department, inclu ding $6,000.01 , 0 bounties. 66.00w.w0 00 Navy Department........ interest on public debt.. p 1 1)00,500 Expendlturca 231,030,00(1 00 The receipts ana expenditures under existing' laws for the fiscal year ending Judo 30, 1370 , are estimated as follows: suldOoo,ooo uu - 4 , k Internal 14(1,003.000 00 ..... 2,030.01 X) 09 Mieeeltantoue eolareet3 !25,u.0,000 00 Receipts • 1 1 11 t 1 7.000.1100 011 The expenditures for the same Period, If the expenses of the army should be kept up to about the present average, will he as follows For the civil eervice....... . & 60,000.000.00 Peneioua and diens... . War Department.. Navy Department. Intueet OD Public debt Earenditurem ....... OM, 003,000'00 The accompanying report of .the Commis sioner of inicrnal Revenue gives the neceSsary information in regard to the Bureau, and con tains many veryjudicious recommendations and suggestions which are worthy the careful con sideration of Congress. The' internal branch of the revenue service is the one in which the people feel the deepest in terest. The customs. duties are collected at a few points, and although paid eventually by the consumers, they aro felt only by the great mass of the people in the increased cost of the articles consumed. Not so with the internal taxes. These are collected in every part of the Union; and , their burdens fall, to a large extent, directly upon the tax-payers. Assessors, collectors, inspectors, detectives-- necessary instruments in the collection of the revenues—are found in every part of the coun try. There is no village or rural district where their faces are not seen, and where collections are not made. The eyes of the whole people are therefore directed to this system, and it is of the greatest importance that its administration should he such us to entitle it to the public respect. Un fortunately this is n% the case. Its demoraliza tion is admitted; and the question arises, 'where Is the remedy ? The Secretary is of the Opinion 'that it is to be found in such amendments to the act-as will equalize the burdens of ta.zatio;n, and in an elevation of the standard of qualification for revenue offices. "'Upon the subject of internal taxes the Secretary has already spoken. In regard to the character of the revenue °dicers he has only to say, that there must be a decided change for the better in this respeet if the system is to be rescued from its de moralized condition. After careful reflection; the Secretary has come to the conclusion that this chane would follow the -passage of the bill. reported by . M.Jenekep from-the Joint Commit tee on Retrenehinent and Ittifornr, - .on the l•ith of May last s entitled "A bill to 'regulate the civil service and orovaote thu eilleieney thereof." Die Secretary gives to this bill his hearty approval, • TH4'1)4111;1 7 , EV EIIINGr BULLEVN7-PHILADELPIIIA; WEDNESDAY, ;DECEMBER, 9;.1868.7-TRIPLE -SHEVIAf' $2413,000,u0u 041 9340.00th000,0u ia,uuo.mo uo so,000 • 000,00 76,0tX),01MuU 20,1100,0U0,(X) 128,0va,000,0u and refers to the speech which was mado,upon ite introduction, by the gentle - man who reported it, • for an ahle and lucid exposition elite provisions, ' and for a' truthful`and graphic description of the evils of the present system of ,appointments to office. • ' On the fifth day of October last, the day for their regular quarterly reports, the, number of National Banks was sixteembundred and forty four, seventeen of ,whieh were in-voluntary liqui dation.„ • • Their capital wa5....,.... .. .. $420,634,511 00, do.. discounts. ' .. .. 655,875,277 35 . do. circulation .. . ..... ....... 295,684,244 00 ,'do. ..,. _601,830,278 40 In no other country was . so large a capital ever invested in banking, under a single system, as is now invested in the National Banks; never before were - the interests of a people so inter-, woven with a system of banking, aa3aro the In terests of;the people of the 'United States with their National Banking system. It is not strange, therefore, that the condition and management of the National 'Banks should bey to them and their representatives,a matter of the deepest concern. That the National Banking system is a perfect one it not asserted by Its friends, that it is a very decided. improverneittras far.as , circulation is regarded, - Itp - on - thd systetn - whiehlt has super seded, must , be ,admitted ,by its op-' ponents. Before it 'was established, the several States, whether "in conformity , with the Constitntion or not—jointly with the General Government, during the existence of the charter of the Unikd States Bank, and solely after the exygration of that charter—axercieed the power ofissuing bills of credit, in the form of bank notes, through institutions of their own crea tion, and thus controlled the paper money, and thereby.a in nO small degree,. the business and commerce of the country. In May, 1863, when the Nahanni Courtney Bureau was established in Washington, sane-fifteen hundred banks, organ ized under State laws, furnished the people of the United States with a bank-noto currency. In some of the States, the banks were compelled to protect—partially at least—the holders of their notes against loss; by deposits Of sectulties with the proper authorities. In other States, the cap ital of the banks (that capital being wholly under the control of their managers) was the only se mirlty-for the redemption of their notes. In some States there was no limit to the amount of notes - thatmight - be - issuedTifseent - e - d according to the requirements of their statutes,nor any ne „gratify relation' of circulation 'to capital. lik e , others, while notes could be issued only in cer tain proportions to capital, there was,no restric tion upon the number of banks that might be or ganized. The notes of a few banks, being pay able or redeemable at commercial centres, were- current ' in most of the States, while the notes of other banks (perhaps just as solvent) were uncurrent beyond the limits of the States by whose authority they were issued. How Valueless were - the notes of many of the State banks is still keenly remem bered by the thousands who sufferedliby their in solvency. She direct lessee sustained by the people by tal juisecured bank-note circulation, and the indirect losses to the country resulting from deranged exchanges, caused by a local cur rency constantly subject to the manipulations of money changers, and from, the utter unsuitable ness of such a currency to the circum stances of the country, can be counted by millions. It is only necessary to com pare the circulation of the State banks with that furnished by the National Banks, to vindicate the superiority of the present system. Under the National Banking system the Government, which authorizes the issue of bank notes, and compels the people to receive them as money, assumes its just repensibility, and guarantees their payment. This is the feature which especially distinguishes it from others, and gives to it its greatest value. The object of the Secretary, however, in re ferring to the National Banks is not to extol them, but to call the attention of Congress to the accompanying instructive report of the Comp troller of the Currency,especially tolhat part of it which exhibits the condition and management of the banks in the commercial metropolis, and to the amendments proposed by him to the act. On the fifth day of October last, the loans or discdruits of the banks in the city of New. , York amounted to $163,634,070 23, only $90,000,000 of - which consisted of commercial paper,the balance being chiefly made up of what are known' as loans on call, that is to say, of loans on collate rale, subject to be called in at the pleasure of the banks. Merchants or manufacturers cannot, of course, borrow on such terms, and it is under stood that these loans are confined mainly to persons dealing, or rather speculating, in stocks or coin. This statement shows to what extent the business of the banks in New-York has been diverted from legitimate channels, and how deeply involved the banks have become in the uncertain and dangerous speculations of the street. The deposits of these institutions on the day mentioned, amounted to :$226,645,655 80, and of their assets $113,332,689 20, consisted of certain cash items which were in fact mainly certified checks, which had been passed to the credit of depositors, and constituted a part of the $226, 645,655 to of deposits, although the banks always deduct such checks from their deposits, in mak ing up their statement for the payment of inter est, and their estimates for reserves. It Is under stood to be the practice of a number of the banks (perhaps the practice exists to a limited extent in all) to cer tify the checks of their customers in ad vance of the deposits out of which they are*e.x. pected to be paid; in other words, to certify checks to be good, under an agreement between the banks and- the drawerS, -that the money to protect them shall be deposited during the day, or at least before the checks, which go through the clearing lionse,can be presented for payment. The secretary has learned with great surprise that a number 'of banks—generally regarded as being under judicious management—certify in a single day, the checks of stock an,l gold brokers to many times the amount of their capitals, with no money actually on deposit for the protection of the cheeks at the time of their certification. A more dangereiu.; practice, or one more inconsistent with prudent, not to say honest banking, cannot be conceived. It is unauthorized by the act, and should be pro hibited by severe penalties. Aside from the risk incurred by this reckless method of banking, the effect of such practices is to foster speculation by creating Inflation. It is in fact part atul parcel of that fictitious credit which is so injurious to the regular tiusiness of the city, and to the busi ness of all parts of , the country,. which' feel and are affected by the pulsations of the commercial centre. It is this very dangerous practice com bined with the more general practice of making loans "on call," which leads to unsafe exten sions of credits, and makes - many of the banks In New York helpless when the money market is stringent. Can anything be more discreditable to the banks of the great emporium of the country, or afford more con clusive evidence of their imprudent management, than the fact,that with a capital—including their surplus and their undivided profits—of one hun dred millions of dollars, the withdrawal from cir culation of ten or fifteen millions of legal -tender notes, by combinations for speculative purposes, can create a money stringency,by which not only the stock market is broken down, but the en.ire business of the city, and to some extent the busi ness of the country Is injuriously affected! If the banks were no more• extended than they ought to be, or had proper control over their customers, no such combinations would be likely to bo formed, or if formed, they would utterly fail of their object. These remarks do not of course apply to ail of the banks in New York; for some of them are strictly commercial institutions, and are under the control of men who are distinguished alike for their talents and their conservatism. They are, however, applicable to them as a class, and they undoubteely apply in some measure to many banks In other cities. The recommendation of the Comptroller that all National Banks be prohibited by law from certifying checks which are not drawn upon de posits actually existing at the time the checks are certified to be good, is heartily concurred in. The Secretary has long entertained the opinion that the practice of paying interest on deposits— tending, as it does, to keep the hanks constantly extended in their discounts—is injudicious and unsafe. Be therefore approves of the reeme mendation of the Comptroller that National Banks be prohibited from paying interest on bank or individual balances. The Secretary also agrees with the Comptroller in his recommendation,. that authority be given to him to call upon the banks for reports on days to be fixed by himself. If a reserve is ne cessary, it should bo kept constantly on hand, and the business of the country ought not to be disturbed by the preparation el the banks for the quarterly reports. The views of the Secretary in regard to the ne cessity of a central redeeming agency for the National Banks, have been frequently , presented, and it is not necessary for bin to repeat them. There are other suggestions in the Comp troller's report deServing the attention ot_Con gress, which. the eneretary lacks the time to con sider. There Is., one subject, however, not dis cussed by the Cornptroller,to which the Seeretary invitee-special attention. I.3thougb the NatlOmad Bulking oyeWai kltuir/d be relieved from the limitation s - now' - imposed .. upon the aggregate amount of notes that may be issued, this cannot eafelY be done' us long as the euspension of specie payments contianes. Never theless, measures should at once be adopted to remedy, as far as practicable, the ineqciality.which' exists - in the distribution °PHI° circulation. <As the Government has .bythe tax upon the notes of State banks, deprived the States of the power of furniehink facilities to their citizens, it is ob viously Just that those States, which are thua de prived of these facilities, or svhieh do mit ehare equally with other States in 'the benefits of the National -Banking system, should be supplied with both banks 'and notes. . There are - two modes by `which'this may be accomplished.. Ono by reducing the circulation of the banks of large' capital only—the other by limiting the,amount of notes to be furnished to all the binkti-L-say to seventy por Cent. of their resioective capitals: The latter mode is pref re ble, as by it no disetimlnation would be mad be tween the banks, and all would be strengthened t by a reduction ofheir liabilities,and by a release of a port of their means now deposited with the Treasurer, which would be of material service to them in the preparation they must make for a re turn to specie, payments. If a redeeming agency should be established, the reduction of the circu lation of the existing banks could •be effected as rapidly as now banks can be organized in the Western and Southern •• States where they aro needed. s . The new Territory of Alaska bas been the object of much attention during the past year, but its distance, and the uncertainty and infre quency of communication with it, and our imperfect knowledge of its condition, have somewhat embarrassed the Department in or ranizieg therein a satisfactory revenue system. Under the authority of the act of the last ses sion. the administration, by • special ' agency (which in the absence of the regularmachistery was of necessity resorted to), has been super eeded by the appointment of a collector to reside at Fitka,' who left for his pest in Septetabeflat, ii7 , -.1 has probably, ere this, entered upon the dis charge of his duties , ' - - • ,• A gentleman from this Department accom panied him to assist in establishing thetollection service on a proper foundation. and in perfect.; lair arrangements for the prevention of snsug- RecogniAtiralsb - thevastimportancei of relia ble information on matters not imufediately con nected with these objects,but having nevertheless a most important' bearing upowthem more or lees direct, another agent, long familiar with that country,' was, at the same time, despatched with directions to apply himself to the ascertainment of its natural resources, the inducements and probable channels of trade,and the needs of com merce in the way of lights ann other aide to navi gation. He was also particularly entreated with a supervision of the fur interestesandthe enforce ment of the law prohibiting the killing of the most valuable fur-bearing animals. , The existence of coal at numerous points has been known for years, and some of the beds were worked by the Russians with indifferent success; none;hoWever, has been hitherto pro- Ors d on the North American Pacific coast equal to that from the Nanaimo mines, on Vancouver'd island: and this, though raised from considerable depth, is not of superior quality. The officers of the cutters were therefore instructed to ex plore the coast as far as practicable, for the pur pose of ascertaining the supply and the quality of coal in the Territory. A number of localities producing coal were visited, Including the aban dontd Russian mines, but at none did the -out croppings exhibit any flattering 'promise except on the egad of Cook's inlet. There, near Fort KenayMibout seven hundred miles from Slikei, were found upon the cliffs numerous parallel veins extending many miles along the shore. Some of the coal taken from them proved to be superior to that from the Nanalmo mines. The indications are that the supply is abundant and the quality faits - _ _ _ The protection of the fur - bearinganimals is a matter of importance hardly to, be overrated. In consequence of information received last spring, the captain of the 'Wayanda. was - directed to visit, as early in the season as practicable, the is lands in Behring's sea, where the fur seal chiefly abounds...On hie arrival at St. Paul's and SL George's islands, he found there several large parties engaged in hunting the animals indis crimately, and in traffic with the natives in ar dent spirits and other forbidden articles. Quar rels had arisen, and the natives complained that the reckless and unskilful movements of the new hunters bad already driven the animals from some of their usual haunts. The captain of the cutter instituted such measures us he felt au thorized to institute for the maintenance of the peace and the protection of the animals from in discriminate slaughter. The preservation of these animals, by the ob servance of strict regulations in hunting them, Is not only a matter of the highest importance in an economical view, but a matter of life or death to the natives. Hitherto, seals have been bunted under the supervision of the Russian company, and exclusively by the natives, who are trained from children to that occupation, and derive from it their clothing and subsistence. They have becifgosierned by exact and stringent rules as to the time of bunting, and the number and kind of seals to be taken. It is recommended that these rules be continued by legal enactment, and that the existing law prohibiting absolutely the killing of the fur seal and sea otter, be repealed. as starvation of the people would result from its strict enforce ment. The natives (with the exception of the Indians in the southernpart of the Territory, who are fierce and warlike) are a gentle, harm less race, easy to govern, but of great enterprise and daring in the pursuit of game—many of them passing annualy in their skin canoes from the main land and Aleutian islands to the islands of St. Paul and St. George, a distance of about one hundred and fifty miles, thretigh a strong sea,and returning with the proceeds of their hunt. The seals are extremely timid and cautious. They approach their accustomed grounds each year with the greatest circumspection, sending advance parties to reconnoitre and at once for saking places where they are alarmed by unusual or unwelcome visitors. They have been in this way - driven from point to point, and have taken refuge in these remote islands, whence if they are now di iven, they must resort to the Asiatic coast. There can be no doubt that, without proper regulations for hunting these valuable animals, and the more valuable but lees numer ous sea otters. a very profitable trade will very soon be entirely destroyed. - - ' " . The United States cannot of course administer such a trade as a Government monopoly,and the only alternative seems to be to grant the exclu sive privilege of taking these animals to a re sponsible company for a series of years,limiting the number of skins to be taken annually by stringent piovikions. ' A royalty or tax might be imposed upon each skin taken, and a revenue be thus secured sufficient to pay a large part of the expenses of the Territory. Our relations with the Hudson Bay Company, and the regulation of the transit of merchandise between their interior trading posts and the sea coast, by ' way of Stikine river, will doubtless re quire early attention, but at present the Secre tary is not sufficiently advised to offer any recom mendations upon the subject. The recent political changes in Spain, and the indications of a more liberal commercial policy on her part, before thorevolutlini took place, add force to the remarks and recommendation of the Secretary in his last report,in regard to our com mercial relations with that -country. Ho again stitongly recommends the repeal of the acts of July 13, 1832, so that Spanish vessels may be sub ject to our general laws, which aro ample to af ford protection against unfriendly Spanish legis lation, and are free from the innumerable diffi culties of administration, which exist under these special enactments. . The Secretary asks attention to the necessity of more exact and stringent lams respecting the carriage of passengers, and also of such legiela don as shall settle, as far as they can be settled in this manner, some of the vexed questions ari sing under steamboat laws, It is necessary merely to repeat, what has been at other times stated, in regard to the insuffi ciency of the tax fund to meet the necessary ex penses of the marine hospitals, notwithstanding the economy which, during the past year, has re duced the expenditures more than $12,000.• It is impossible to ignore the fact that these hospitals are and must be, unless the rate of the tax is largely increased, a constant drain upon the Treasury.- The revenue cutter service now comprises twenty-five steamers aud seventeen sailing steamerss. Of the six steamers on the lakes all Yes bat one are at present, agreeably to the views of Congress, .ont of commissiOn, the "Sheyman" alone being In active service. Five of the steamers on the seacoast are:small tugs, from;forty to sixty tons bUrden, thq utility and'efficiency of which at the leading;-ports--as substitutes !or ordinary row boats' on the < one broaa.'and for thelightentters on the other, both In the harbor duties of Inspection - and police, and in the prevention and detection of smuggling— liaVe'been so thoroughly - tested by OrPerience, that it la 'thought they should be emplpyed.'sttll more ex tensivelY awn theYxiciW, are. _.::Upon_ the Woe In' particular,. they would hoof rue greatest 'ollie,. and they should be autatittit4 tor the large steamers now there, which should, with one exception c be sold, as they are depreciating in value and area useless expense. The exception is the B. P. Chase, which is of such dimensions that the might bo 'brought tethese t-coast, where she could be need ; to, advantage. , . ,This 'would prub..l- 10 bd preferable to a sale Of her where she lies. The schooner 'DUO," being old and not lit for thither service,bas been sold. The "Morris" also is 'about to bo disposed of for the same reason.. Tbetteamer "Nemaha," stationed at Norfolk,bas been destroyed by accidental fire. r On the Pacific r.coast are the "Wayanda" in Alaska, and the "Lincoln" at tan ' in Excellent ccindition• the schooner "Reliance," recently ordered to Bides, is also is good order. "The schooner -." Lane," at Puget Seknd; ,is Old and 'unfit for, the', requirements, of at station. • "the addition of several thousands tulles of sea ' coast, by the purchase Of Abiska,renders the cutter force in the,Pacitle inadequate for even the-ordi nary duties pertidning to the service; without re guru ,to the additional demands upon it for the prOtCctiOD of the fur-bearing, snituals. Tete re commendation heretofore made that two' first close steamerg be built or, ptirehased for the West ern coast le therefore renewed.-- A steam cutter is also needed for Charleston, and one for the coast ot Texas. In the Coast Survey forty. eight charts have" been entirely or partially engraved daring the year, of which nineteen, have been published. Regular observations of the tides at seven princi pal stations have been kept up, and tide tables, tor all parts of.the United - States, for the ensuing year, have been published. A new edition_of the Directory or Coast Pilot for the western coast tas been prepared, and a preliminary gtilde fur the navigation of the northwestern cosst bas been compiled. , The attention of Congress is called to the an -final report of the Director of the Stint, which - contains the usual statistics of the coinage of the countrY, and various suggestions and recommen dations, which are svorthy of consideration. The total value of the bullion depoaited at the mint and branches during the fiscal year sas $27.1.66,318 70, of which 15:15,472,894 8:2 was in gold, and $1,98.3,423 - tis in silver. Deducting the redeflospa theiltlloOnt.f4ffielltaldeposit.was.s24,, — 59132 - 5 - 84. The coinage for the year was In gold coin SlB,- 114,425; gold bars, $6,026,810 06 ; silver coin, $1,136,750;:5i1ver bars, $456, 23640; nickel, cop per• and bronze coinage, (one, two. three, and five-cent pieces,) $1,713,355; total coluage, $20,- 964,560 ; total bars stamped, $6.483,016 &t. The gold deposits of domestic produedon were at Philadelphia, $1,300,1338 53; at San Francisco, $14,850,117 81; at New York, $5,•109,:)96-55; at Denver &357,93511. The silver deposits were at Philadelphia. $67,700 78; at San Francisco. $651,- 289 05; at New York, $262,812 96 ; at Denver, $5.082 67. The gold and 'sliver deposits of foreign pro duction were $1686.602 35. The amount of gold coined at Philadelphia was $3,864,425; at dan Francisco, $14,979,558 52; of silver, at Philadel phia, 6314,750; at San Francisco, $822,000; of nie_kel,copper and bronze at Philadelplaia.s 885. Total number. of Denver struck, 49,7115,840. The branch mint at Denver has never coined money, and its expenses are entirely out of pro portion, to its busineea. The law tun', which It was organized should be repealed, , , the insti tution reorganized as an away. Mil During the past year the brans , a int building at Carson City, Nevada, has bet t completed. and the necessary machinery and fixtures have been forwarded. It will be ready for work early next season. The mint at Philadelphia and the branch mint at San Francisco have the confidence of the peo ple and of the government, and when the new mint building in Ban Francisco is erected, these mints will be of ample capacity to supply coin age for the whole country. The business of coinage requires large and expensive establish ments, under charge of men of science and of undoubted integrity; and such can be successfully maintained only at commercial centreS, where bullion of different degrees of fineness is con tinually offered for manipulation.' The establishment of additional branch mints is, therefore, unnecessary, and would be injudicious. The entire deposits at the branch mint in Sin Francisco wereiormerly In =parted-bullion; now nearly two-thirds of the amount is deposited in bars, refined by private establishments. The law requires that the parting chime shall equal the actual cost of the process; but the experience of the past four years shows that not leas than thirty thousand dollars annually may be saved to the government by discontinuing the business of refining upon the Pacific coast; and it is,there fore, recommended that the Becrettuy htr author ized to exchange the unparted bullion deposited at the mint for refined bars whenever, in his opinion,it may be for the public interest to do so. it is also recommended that authority be given for the redemption of the one and two-cent pieces by the Treasurer, under such rules and regula tions as may be prescribed by the Department. During the war the business of the Treasury De partment was so largely and rapidly increased, and so many inexperienced men were necessarily employed, that perfect - order and system could not be enforced. Many accounts were unsettled, and some branches of business had fallen into confusion. Much attention has been given by the secretary "to straightening up" the affairs of the Department. He is now - gratified in being able to say, that order and system have been in troduced *here they were found to be needed; that the Bureaus are in a good working order; and that the "machin ery" of the , Department Is in - as satisfactory condition as perhaps it can be, un der existing laws. The result of the examina tions which he has caused to bo made has excited his admiration of the wisdom displayed by Mr. Hamilton in the system of accounting which he introduced, and most favorably impressed him with the value of the services of the men, who, - poorly paid, and little known beyond the walls of the Treasury building, have for years con ducted, with unfaltering fidelity, the details of a business, larger and more complicated than was ever devolved upon a single Department by any Government in the world. In concluding this communication, it may not be inappropriate for the Secretary, in ..a tow brief words, to review some points in the general pol icy of the administration of the Treasury for the past four years. - The - following statement—published in the lastt Treasury report--exhibits the condition of the , Treasury on the let of April, 1865 ; Funded debt.. Matured Debt - - - Temporary loan certificates Certificates of Mdebtedneaa. interest-bearing notes Suspended or unpaid requisitions United States notes, legal tenders Fractional currency Caeh in the Ttenaury By this statement it appears that, with $50,- 481,924 84 in the Treasury, there were requisi tions waiting for pay Mfgit (the delay in the pay ment of which was greatly discrediting the Gov ernment) to the amount of $114.256,548 93, that there were $52,452,328 29 of temporary loan certificates liable to be presented in t'rona ten to thirty days' notice, and $171,790,000 of -certifi cates of ind ebt ed nesswhich had been issued to con tractors, for want of •the -money to pay the re quisitions in their favor, and which were matur ing daily. At the same time, the efforts to nego tiate securities were not being attended with the usual success, while the expenses of the war were not less than two millions of dollars per day. The vouchers issued to contractors for the necessary supplies of the army and navy—payable-one-half in certificates of indebtedness and the other half in money—wore being sold at a discount of from ten to twenty per cent, indicating by their de preciation how low was the credit of the Govern ment, and how uncertain was the time of pay ment. The fall of Richmond Mid the surrender of the army of Virginia under General Lce, (which vir tually closed the war,) had not the effect of re lieving the Treasury.. On the contrary, its em barrassments were increased thereby, inasmuch as it, seemed to leave ^the Government without excuse for not paying its debts, at the:same time that popular_appeals for subscriptions to the public loans were divested of much of their strength. As long as the Governinent was in danger, by the continuation of hostilities, the patriotism, of the people could b e Emcees , hilly appealed tO , for , the purpose of raising money and sustaining the public credit ; without which the war could not be vigorously prosecuted. When hostilities ceased, and the safety and unity of the GoVernment . were assured, self-interest became again the controll ing power. It will be remembered that it was then generally supposed that the country was al ready fully supplied with securities, and that there was also throughout the Union a prevailing ,apprebension that financial disaster would speedi ly lollow the termination of the war. The great ness of the emergencv . gavtithe Secretary no Lime to try experiments for borrowing on a new seen aity, of long time and lower interest; and -removed from bid mind. alidonhts or hesitation in regard to the muse be , ptireued. It , wati estliditted that at least seven hundred , millions of dollars should be raised, in addition to the revenue re ceipts, for the payment or the requisitions already drawn, and those that must aoon follow s -- preparatory cto the disbandment of, the great • Union army—and of other dethande upon the Treasury. The anxious inquiries thea were, by what means can this `large amount of money be raised and not what will be the cost of raising 'it. ' Howe.= the ioldiera be paid, and the army be disbanded, so that the extraordinary expenses of the War Department may beiltopped? and not what rate of Interest 'shall am • paid for the money. These were the inquiries pressed upon the Secretary. lie answered them by calllng to his aid the well-tried agent who had been, em _,ployed by his predecessors and by of ' tering the seven and three-tenths note;—the most popular loan ever offered to the ocOplo—in every city and villoge, and by securing the advocacy of, the press, tbrOughout the length alad"breadth of the land. In less than four - months from the time the work of obtaining subscriptions was actively commenced, lino Treasury was In 4 con dition to meet every demand upon it. -But while the Treasury was thus relieved, the character of the debt was-by no means satialac .tory.--On- the first day of-September It consisted - of the following items Funded debt Matured deht': ........ . . . . . Temporary lottii " Certificates of indebtednors.........-. rive per cent lora tender notec stemmas Interott leinti.tender notes.. Sloven-thirty 'totem.. . • z • .. totted States n ote s , lcifattenilerf.. FreCtlOnsl currencyq. Suspended Indldir/U .pas zor•• • • • Total. . . . . liceucietinif . Balance. .... ........ 2,757.6M671- a3 Prom this iditni;mea it wiltVe perceived that 491.276,94,123_25 of tbe_punimasensgemeene s i as villeins forms of temporary securities; $4.33,160,- 560 of United States notes—the e;cesa of which. over $400,000,000 baying been put into circula tion in payment of temporary loans—and $26,- 344.712 of fractional - currency. Portions of this tempos rY debt were maturing daily, and all of It, including $18,415 00001 the funded debt, was to be provided for within-a period of three years. The seven-thirty notes were, by law and the terms of the; loan, convertible at maturity, at of theholder s into - five-twenty - hondssor payablelike the rest of these temporary obliga tions in lawful money. it WS of counsel necessary to make provision for the maturing debt, and also for taking np, from time to time, such portions of it as could be advantageously converted Into bonds, or pail in currency, before maturity, for the purpose of avoiding the, necessity of accumulating large sums of money, and of relieving the Treasary froiii the danger it would be expostal to-if a very considerable portion of the debt were permitted to mature with' no other Means far paying It than that a ff orded by sales of bonds, In a market too uncertain to be confidently relied upon in an emergency. In addition to the tern - portuy loan, payment of which could be demanded on so abort a notice as to make it virtually a debt payable on demand—the cer tificates of Indebtedness, which were maturing at the rate of from fifteen to twenty millions per month—lbe five per cent. notes which matured in January following, and the compound interest 1101tSwhich were payable at various times within a period of three years--there were e 830,00,000 ol eeven-thirty notes which would become due as follows. viz.: Atottyl 15. MI; . ....... 83:0,101rso &met% 2tAtot.traf July t ... ....... :Montan As the option 'ea" conversion . .... with the holders of these notes, it depended upon the condition of the market, whether they would be presented for payment in lawful money, or to be exchanged for bonds. No prudent man, in trusted with the care of the nation's interest and credit, would pernaltlwo or three hundred mil lions of debt to mature, without making pro vision for its payment; nor would he, if it could be =avoided , accumulate large sums of money in the Treasury which would not be called for, if the price of bonds should be such as to make the con veys-lair-of the notes preferable to their payment in lawful money. Thapolley of the Secretary was, therefore, as ho remarked In a former report, de termined by the condition of the Treasury and the country, and by the character of the debt. It was simply, first, to put and keep the Treasury in such condition as not only to be pre pared to pay all claims upon presentation, but also to be strong enough to prevent the success of any combinations that might be formed to control its management; and, second, to take up quietly, in advance of their maturity,by payment or conversion, such portions of the temporary debt as would obviate the necessity of accumu lating Large cut rency balances in the Treasnry,and at the same time relieve It from the danger of being forced to a farther issue 0110 gal-tender notes, or to a sale of bonds; at whatever price they might command. in carrying out this policy, it seemed also to be the duty of tees, Sec retary to have due rented to the interests of the people, and to prevent, as far as possible, the work of funding from disturbing legitimate busi ness. As financial trouble hoaalmost invariably followed closely upon the termination of pro tracted ware, it was generally feared, as bar-been already remarked, that such trouble would be unavoidable at the close of the great and expen sive war In which the United States had been for four years engaged. This, cf course, it was im portant to avoid as its occurrence might not only render funding difficult: but might pros trate those greatinterests upon which the Gov ernment depended for its revenues. It was, and constantly has been therefore, the aim of the Secretary so , to adm inister the Treasary, while -borrowing money and funding the temporary obligatione, as to prevent a commercial crisis, and to keep the business of the country as steady as was possible on the basis of an irredeemable and constantly fluctuating currency. Whether his efforts have contributed to this end or not,he does not undertake to eayinnt the fact is unques tioned, that a great war has been closed—largo loans have been 'effected—heavy revenues have been collected, and some thirteen hundred mil lions of dollars of temporary obligations have been paid or funded, and a great debt brought into manageable shape, not only withodt a thaarl, cial crisis, but without any disturbance to the or dinary business of the country. To accomplish these things snecessfally, the Secretary deemed it necessary, es has been before stated, that the Treasury should be kept constantly in a strong condition, with power to:-prevent -the credit of ' 9 ' the Government and the great interests of the people from being placed at the mercy of ad verse lulluences. Notwithstanding the magni tude and character of the debt, this power the Treasury has, for the last three years, possessed; and It has been the well-known existence, rather than the exercise of it, which hasaits repeated in stances, saved the country from panic aneldises ter. The gold reserve, the maintenance of which has subjected the Secretary to constant and bitter criticism, has given a confidence to the hoiden) of our securities, at home and abroad, by the constant evidence which it exhibit ed of the ability of thes • government, without depending upon purchases in the market, to pay the interest upon thespublic debt, and a steadiness to trade, by preventing violent fluctuations in the convertible value of the, cur rency, which havo been a more than ample com pensation to the country for any loss of interest that may have been sustained thereby. If the gold in the Treasury : had been sold down to what was absOlutely neededfor'-the pa - V . 1316A of the in tercet on the , public debt,not only would the pub lic credit have beeri endangered,but the currency, and, consequently, the entire business of the country, would - have been constantly,subject tes the dangerous power of speculative combina tions $1.100,384241 80 52,452,103 29 171,7901X:0 to 820,812 800 00 114,256,50 93 433 160.569 00 A 254,094 07 2,423 1 437.002 18 5b,481,82,1 84 2.3e6.953.077 • . - • ' Of the unavailingg - Wert that was - made by the to Contract, the currency, with the view of appreciating it to the specie standard he forbears to speak:. Ills. action in respectto. con traction, although authorized, and' for. a- time sus . tained, was subsequently' disapproved , (as he thinks unwisely) byteongress. This is a ques tion, hosever,thgtein be-Jiatter deternined her eafter ° than now. Compinint has been made that in the administration of the Tram-Airy Department since the war there has been too lunch of interference with the stick and money market. This complaint, when honestly mado, hiui been the Jesuit of a want of rallecti , n or of imperfect know ledge of the financial coudi tiou of the government. 'The transactions of- the Treasury have from mecca sity been connected with . the stock and money• market of New York. if the debt after the clot) of the war bad been .a funded debt, ; with. nothing to be done in relati•m to it but to pay the accruing Interest. or if business had teen conducted on a specie baste, and consequently been free from-the constant changes to whirb in has beetrand must be subject as. long as there is considerable , difference between the I,gcl and commer cial standard of Value; the 'rrenstry - could have. been managed with entire independence of the exchange .or the gold room huh, however. wits not the fact. More than ote.half of the national debt, according to the, fore going exhibits; consisted of temporary obligations, which were to be made igt lawful money or converted into bends, and there vies in circulation a large amount of redeemable prondees, constantly ehallging in their con vertible value. Tho nocretary. therefore, could not be in different to the condition of the Market, nor avoid' con nection with it, for It was, in fact, with the market he had to deal. Ile would have been happy had it been otherwise: • if bonds ware to ha old to provide tho moans foE paying the debts that were pay able iu lawful money it Wan matter of •, great impedance to.' tho Treasury that the price of bows should not be-depressed by • artificial Drowses. If the seven.thirty notes were to be converted into five twenty bonds it was equally iiffportant that they should mist sin sucirrelatioas to , fto b e th e r in m'Cgard to prifm.g , that conversions would be effected. If bonds were eta wecount the notes would $111,5301191 Bo toosozo 03 167.148,71310 25,0/Kkooooo f6mXso oo 217 024,169 001 870.0Y3,000 001 160,553 oci 15344,143 51 • 2311,000 ou Ml 5 907.613 80 1118,036 13 . • be preseuted for payment in legal tenders, mid these amid only be obtained by further issues or thetale of some kind , of securities. -For ft:wee years, therefore, the state of the nuir.kr,t brut hese* matter of limp solicitude to the ectetsr.v. II be bed been indifferent to it • r felled car , folly to study the influences that controlled it, or had hesitated to :ercerelso the power with - which congrest had clothed him for successfully fun ins the temporary debt by conversions or satea, he would have been false to hie tried. The t ask of convert , ink a thousand millions of temporary, obligations into funded debt on a market constantly smith:et to natural and axtilicial fluctuations, without dopreßring the prices oflmnds, and without disturbing the businets of the country. however it may be regarded now when the work has been . accorni lithe& was, while it IVILS JUR- Pe' formed, an excesdinely dell.ate one. it Is = but timple justice to say that lta successful accomplishment is, fir great measure, attributable to tho judicious action of the Assistant-Treasurer at New York, M.r. Van Dyck- Similar complaint has , also been made of the manner In wish gold and bonds have becrt dta. Dosed of by what hat been styled 'secret sales. , and yet precisely the same course as been pursued in theme gates that careful and pflurent men pursue who sell on their own account. Tito sales hams been made when currency Waif needed and pricers were satisfactory: ilt was not considered wise or prudent to advise the dealers precisely when and to what ap 01114 • gales were, to be read°. No vane men operating midis own account would have done this..lßat all ERICA of gold have been• made in the open market, and of bonds by agents_ or 1.110 AllllBl4lll. Treasurer in New York in the .ordinary' way with a view Of obtaining the very best prices and with the least possible di•turbance of business. In tho large transactions of the. Venality. agents haVo been in. dhpensable. but none have been employed when the could be done r•loudly welt by the oflicers of the do Partmeot. Whether done by agents or officers. the Soc. retary has reason 10 suppose that it has not been done skilfully and bonmtly an well as economically., lie te now gratified in being able to say that unless a very stringent market. such as tram produced *few weeks RRO hy prry.yerf corribinatirms in New York, should wend to the Treasury large amounts •of the three per cent. certificates for redemption no further retell_ of bonds are likely to be necessary. • La th, however. the receipts from internal revenues are Increased, the necessities of the government requirrrthat the sales if acid shall be continued. These sales are'now being made by adverthements for grated bide,'lns'ead 01 the agencies heretofore enielnyed. The-result to far has not been entirely eatisfactory, but a proper_ternett_for what.flecordin to.the tone of the pros, nomiredfo be thoplibilc sentiment. seemed req tire it. The unit bib's will he fairly tested and continued, if' it can be without a sacs Itiee of tau public intereat. The Secretary hat thus referred to a few points in hit admin• istration of the Treastiry for the purpose of.. explain Ina Nome things which may have been imperfectly under- Mood, and not foists purpose of defendiner-hts own sac. !lon. Deeply sensible of the responsibillries resting neon him, but neither appalled nor dishearten by tbelar Ile has performed the duties of hie of fice according to th e nest of hit judgment - and the lights that were haute him without dsprecat• ing criticism, and plainly and earneatly presented his own view s without seeking popular favor. has been his good fortune to luivo had for immediate - predeomrstes tire of- thee aelest men.-tn-ther-countrv. to whose ludic:out labors be has been greatly indebted for any ElY.ceos that may have attended Ids administration of the Treasury. Nor it hs under less obtigation to his associates. the Officers and leading clerks of the depart moat. whore Ability nod whose devotion to the public eervice have ibinmanded his respect and dmf ration. HUGH IIeCULLOCII, Secretary of the Treasury. To lion. Fcbuyler Colfax, Speaker of the !louse of I re, urea r. as natives." xtio]Poa_vr Commissioner of Inlernal Revenue TRZAICZY DEPAZTIMT, OFFICE OP INT7rONSL H.ZPTL'NUC, 'Matamoros. November2o, 1868. tlin. The first measure adopted by Congress after the outbreak of the rebellion, pravlding revenue from internal taxation, wee approved august -5, 1861. From that date until the summer of 1805 too costa of the war were annunllyincreasne, and these costa coupled with the interest on the rapidly augmenting public debt.and the necessity of preserving the national Credit made constantly increasing taxation absolutely Indus penreble. During all that Period the attention of the Treasury Departmt ntand of Congress tees continually employed in the dletxtvery of new objects of taxation and addi tional sources of revenue. That the people carried thelturdens thus imposed upon them so universally, and carried them, too, so unctitinpliErdinglY, will for ever be evidence to their prosperity of cue: power and their loyalty. It was not until the authority of tee government had been fully established, its liabilities determined and a its finandel capacity ld, and • re thorngh.ly proven to the wor that any relief from tax was fazinshed, or even generally • de eirea, The largest receipts of internal revenue were daring 1 the fiscal year 1866. when taxation bad reached ite highest limits, The estimates of the reductions since that period. made from time to time, with refer nnee to proposed legislation, were: Annual/v. By statute of July 13, 1866 . ..... 865,000,000 By statute of March 2, 1867 . 40.000,000 By statute of February 3,1168... 93,000,000. By statute of Mara 04 1943 By statute of July 20, j 45,000,000 _ . The receipts for the lasiCkf , 1% i year were from the statutes misting July 1, 3Eki7, modified by the act of March 31,1569. _ . The frtatute of February relates to cotton, and re lieved only that grown Alter the year ISO 7. 2.0C111G ATE U.rcEIPTO The aggregate receipts from internal revenue. ex clusive of the direct tax upon lands and the duty upon the circulation and deposits of National banks, were for the year— __ $310,90r3,951 17 20,920.474 65 —191,160,561 28 RECEIPTs YIIOM SZvERAL tfOVBCDS. .Banda. Trtmt Compahies. al fit 1 4 \avinga h a tit t giou lbtk. 125G3. Dividends and additions to surplus $4,166,023 72 63,774,975 $3,1324,;7499 990.338 U 209,276 07, 26,901 99 Dep05it5......... 2.099,635 83 1,333,31. t 9S 1 - ,4 , k4,512 Capital . 374,974 ii 476,847 71. 399,562 90 Raitivade. 1666 Dividends and Inprofits 2 .02,205,801 45 . 1 3 -, 262 rj i 2,630,174 08 on bonds 1.Z5.910 ff 7 " ' 1,2.59,155 80 Gross receipts 7,614,418 12 -11:.,2M 21 :3,131,397 19 Daring the 'decal year 1606 and two months of 1867 the tax collected was from assessments upon the gross receipts for the transportation of property as well as of persons. Inaurun,•t Curnpk, (es. 1)44. 1867- 18138. Divrea and addi tions to surplus. 6767.231.12 950.473.93 6605,489.78 Premiums and as- . sesaments 1,169,72 - 3.23 1.326,914.351.2,743.79 Groan Receipt , Tdclraph Companiee. ... 6309,437 62 239,691 93 214,699.18 Grose Receipt ,. uY E.rpre..g Companies. 6615,769. Oa 55% 359 28 671,919,42 Re rehtte Stamps 1866. 615,011,373.18 1867 A 16.094.718A1 1868 1.1X2,252.02 In 1587 $1,i17,117 56. and in 16t4.82,026, 623, were received from the sale of one cent stampa. The slim of $3,231,247.27 in 1867, and of $3,549,177.9.2 \ 110868, was received for etaMVO from spelal dies for ruutuhtu. perfumery, cosmetics, medicines, and other proprietary articles. - Legaelfd and SfteCessionv, 81,168,765.59 1,8i1,429 16 2,818,751.97 1866 860,891,185.85 . 57 040,690.67 1868 82,027,610.76 The amount collected in the fiscal year 1866, and,,,, four-fifths of that collected In 1867, were assessed at she highest war rates, and the increase of exemption appeared for the first time in the returns of 1862. The assessments on the incomes forihe calendar year can not ell be collected in the same fiscal year, although „great progress towards this end 'was made with the last annual list. The total amount thus far reported from the tax onincomes of the calendaryear 1866 is *27,417,956.6E and from that of 1867 $22,236.301.79; of the former amount $9,173.858 were collected in the fiscal year 1867, and 617,694,098 ,in 186 i. Of the tax on incomes of 1867 $11,389,781 were collected In the fiscal year 1868, and bat $7,84¢„600 in 1869. There "remain several districts from which full returns have not been received, and it is believed that the amount actually collected• upon the incomes of 1867 exceeds .123,000,050.. The number of persona assessed for an income tax on the annual list of 1865. before the increased ea emptien, was 460,170. In 1867 the number Was :259.385, and in 1868;-1n 222 districts, from Which reports have bten leceived, the number was 222,775. In the 18 missing diatricts the number in 1867 was 20,948. The e6mparative receipts from several sources dar ing the , last two years are presented in the following table: Apothecaries Auctioneers.. Bankers Brewers • ..... 238,155.14 270,265.22 I.lrokens of various sorts.. 1,98,854.94 588,417.48 Claim agents 84,627.49 63,149. 90 Dealett, retail 2.047,860.77 2,18.,,4132.00 Dealers, wholesale 1,880,281.13 1,854,387.80 Denier's, retail liquor 2,966,688.73 3,242,915.81 1... 'are, wholesale liquor.. 987.134.91 592,045 72 Dist - filers, coal oil 21,809.32 19,629.66 Distlllers,spirituous liquors 174,445 71 121,863.92 Dtetillers, apples, erapes... 57,332.15 • 74,188.45 Hotels.... . ... 663.656,32 656,705 41 insurance agents 148.617.85 152,148 51 Lawyers 857.248.41 383,0341,95 Manufacturers....... ....-1,296 487.27 1,427,688 52 reddlers... ..... : ..... 708,1.13.28 • 724,210.29 Physicians and surgeons.. 549,368 64 580, 566.31 Rectifiers • 8 0 , 470.06 87,770.28 Cation. '' . . $18.409,651.110 .23,769,0713.80 1.1,500,1147. ii Cigars, Ciffitrettrs foal Cheroots . 1566 $3,4-70,236.80 1867.... 3,661.981 39 1868 t 1,951,6715.20 During the Racal year ISB6 the tax upon cigars Was $lO per thotteand. From Au.euet 1,°1866, to March, 1867, the rate waripartly epecillc and in part ad 'ado. Afterthe laet , named date the tax was uniform, and at $3 per thoneand. Since the act of 1562 the rate upon cigars has been frequently changed; but as their OF TOE 11E67. : • _. 1868. 8.55.;447,41 &58,572.46 98,081.8 i 97,448.14 1433,716.79 1,400,383.95 • , • , .• • " , •• ' , ' •• • • . •,„ • • • , • , • •'• • , • • , •,r, • • , • . •-• • , k , T :I).Aitir - tEitIN.G,..BIILLETN-7PIIILADELPH I .4,:-..WEIWESDAY;..DE.OEUJIER • . • number has always been en , element tn. .deterullatug the amount of tax, it has been , pract(cahle evory, year to compute from the returns of, the local ollielre them:antler of clkare uPon which the ter, has been col iccted - From . there it appears that the number in the fiscal. years 1013 true ... . . 193,e86,231 1b64 4er.IBQ.IVO )FCS 66 ... .. . . . 668,t40,089, 1E56 " . . 317.443,e01 1667 6 ' ......... •.. 483,800 456 1068 66 . . 5:0,83,0:52 Chewing and Smoking Tobacco. ........ 15;246,477.61 14.317,167.58 2 4 ~j6 1~~ Tbo amount stored in bonded warehouse on tirst , day. of July, 1866, was 4,123,631 pOunds; /807. 7 , 6 2 5 . 001 pounds; 1888,1 s, 280,53 poundis. The amount exported in bond dash:lz 1867, was 11;015, 608 pounds; 1869, 11,062. 670 pounds. Fermented LiporA. 1806 184.7 - 1568 _ 5555,603 The tax at St per barrel has neen uniform daring tboyear.- Spfrifrand Brandy. • Die. spirSlS. Drantly -029.11*.678.15 ,_ $288:49904 .." 28,290461 31 - N 848.W.5.03 13 419,002.74 871,638.21 Ibo 7 • • The frilling error r4reipts in 1888 resultedin some degree from the general expectation that. the tax. would be reduced, and the consequent unwillingueas to withdraw spirits from bond at the higher rate., but mainly from the frauds which made each rethicttort indlaperisably. necessary. In my lasi annual report, I discussed at so great length ;the nature and=excent of these frauds, and that. too. after so long and, so care ful attention to the subject, that it Is unnecessary, for me further to dinner, them. Their remedy; lies in the improved chracter of the revenue and judicial Mlle :era, rather than in the increased stringency of the law or improved regulations and requirements of the department. The above figures do not include the receipts from forfeitures. The amount of spbits in bonded warehouse Ju'y 1. ISO. was 0,081,5151 gallons ; inlBo7, 17,857,272 gallowl in 18hcl, 27,278,420 gallons. The quantity oat •of warehouse under transporta tion bonds'at. the beginning of the fiscal year 18. Si and of IE4B was at each date considerably in excess of ;1,000,000 ttallom There was none at the commence mint of lbisi). The quantity:exported , in bond in 1687 was, 4,654.810 gallons, and,in 4,128.1884za110n5. 7'he number of gallons removed to "Claes 2 ware houses," in 18417, for the manufacture of, cosmetics. medicines,-cordials, for exportatton, was 892,- 727 ; while In 1868. allowed by' law during only a portion of the time, it was 98,213. Z.ICIRZNIMI Or COLIZOT/150 TUE InMENITEr. The major part of the cost of assessing and collect ing the revenue is the compensation of locaL °Dicers, including assistant assessors and rummers' clerks, who are paid a fixed and dednite sum per day or year, re,gardlms of the amount accruing to the Treasury through their services.< llnhi the statute of March, 1601, and the' close of the last fiscal year. it was found .necessary to retain in most of the collection districts the full number of en*ordinate officers, and the effect of the reduction since that time will not appear until the next annual reocrt of this °Mee. Experines of axPeNting ay4 colt cling inlgrnal men fie for theffreal ware Eitding June 80, 1807, a 94 1868. 1667. 1803. Compensation and ex pulses to ass°. sots and assistant, assessors..' -. 81,811,05.62 0,181.179.97 Compensation and ex penses to collectors 2,153 050.89 2,262.231 69 Superintendente of exports 15,431 71 204335.97 Revenue agents-. . 45.61L85 61,210.32 Special agents to this office 39,812.00 91.00.99 Revenue inspectors........ 169,27L8t 371,518.73 Special revenue commis sion... 1,22.5.85 Officers and clerks of this bureau 290,f+09.75 316,709 82 Stamps and Cotton tags... 186.234.61 139,305.71 0. her incidental expenses of this office 87,999.69 Commissions on vale of 05,53822 805,4138.69 Total ...... 58,982,6861x3, $9,;3117,301.74 These statements comprise the accounts adjusted and passed by the accounting officers of the depart ment. and appear more in detail la the report of the Fifth Auditor. These amounts in the-shove statement have been charged. to their appropriate yean - -The increased coat for assesainglarll36B above the expereatof 1867 was occasioned main fromthe increase of the pay of as sistant assessors $4 to $5 per day. A much larger number of special agents and inspectors were in service during the lest year than in anyyear pre:- ceding but these were all retired by the act of July 20 1668. The number of assistant assessors in com mission on the Ist day of. November; 1867,-was 3,180. This number. with the sources Of revenue diminished by the act of March last, has been largely reduced, and on the first day of the present month bat 2,284 were in service. The slicnvance to assessors for clerical ser vice is, under the tams of the statute. - made by "the proper officers of the treasury." This language has been construed to mean the accounting officers, and. the Commissioner has no voice in determining the amount; but it is understood that it is being gradually reduced. - Te receipts of internal revenue for the fecal years 1866, 1667 and 1868, respectively, and the ratio thereto of the expenses during thesame periods, were as fol lows : Years. Gross collections. Refunded. Drawback. 1666.........5310,906,054 17 $514.6.14 43 5796.866 73 13,7 265,920,474 61 706.551 69 1.664.631 6.8 166.8 191,160,564 28 1,018,334 61 1,379.980 01 Yew. :yet wilting Expenses. Per cent. Per cent. gross cot- ne t col lections. lections. 1 6 66 - • 8:N.9,5 9 3, 2 73 0157,659,700 46 $2.47 $2.49 1867.. 263,319,261 28 8,982,680 03 3.38 3.4 t ' 1868.. 188,762.249 41, 9,327,301 74 488 4.94 The ratio of coats to collections has increased, of course, with the reduction of the latter. It has re quired the same machinery and the same number of officers to collect taxes at two or three per ceutam as at five per centum, and until the passage of the stat utes of the present calendar year it will be necessary to keep the Officers substantially to their maximum num ber. Fuer:ants BECEIPT3 FOR TUB P.RIMEAT FISCAL YEAR. It has always been difficult to make any accurate es timate-of tht- -eceipts for the future from internal taxation. Ti frequent modificationa of the laws themselves; varying condition of different manu facturing bil....szts, the shifti.ng values consequent upon paper currency, together with other disturbing elements, have materially affected the worth of data collected at this alas from which otherwise the re ceipts for any fiscal year could be foreshadowed with considerable accuracy. The reduction of the sources of revenue has now, however, somewhat diminished these embarrassments, and the collections for the current year can he cal culated with reasonable certainty. The following tabular statement presents the ag gregate of certificates of deposits by collectors received at this office during July, August: September, and October, for the fiscal years 1867, 1868, and 1869, re spectively : 1868. 1869. July ......$27,09,103 38 $21,731,656 14 $16,989,619 92 Auga5t....39.043,340 81 17,8 , 1051 29 13,900,385 70 66 13,183,606 99 9.760,798 29 Oct .213.414,430 29 114,486,636 10,092,835 24 Ot the amount collected in ltkir' there was from in come $43.403.695 43; In 1868 $17,783,71.1 04, and. in 1869 88,365,817 68. I herewith present, also, the collections from the several Bourses of revenue during the first quarter of the presentfiscal year in comparison with those of like character during the corresponding period of the fiscal year 1888. The monthly abstract of the collector of the sth district of North Carolina for August, 1868; and of the collector of the 3d district of Louisiana for Sep tember, have not been received, and the collections in their districs for the months stated are not included In the receipts for 1869. Jaly, August, July, August, and Septem• and Septem ber of fiscal bar of fiscal year 1868. year 1869. Banks and bankere,spe. • cial tax. and tax on . - capital, circulation, and deposits $1,090,661.26 $336,078.06 Other special taxes 4,053 22t. 87 2,969.497.27 Legacies no 277.97 278,590.36 Successions. 230,730.88 251,065,55 Articles in schdule A.... 997,900.34 300,849.69 PassportQ . . .... 1.9.M../5.00 8,66.00 Gar 313,076.70 811,127.72 Sources not otherwise herein specially edu merated, including cotton and manufac tured articles Penaites, &e, `St amps, other than those ror spirits, tobacco, - - and fermented liquors 3,12,970.23 3,3:13,471.73 Salaries of United States officers and em plo3 es Grand total „.. $53,897,963.01 $38,620,893.75 The principal cause of the reduction in the aggre gate receipts of 1E69 below these of 1668, as shown above, lathe repeal of the tax upon manufactures. , The stun of $5,059,492.60 was received in tiscal, year 1669 from the tax of 50 cents per gallon upon spirits in bond July 20, and withdrawn therefrom after that dEfe„ The sum of $062,136.3 4 was either collected prior to the act of July 20, 1608. and at the rate of $2 per gallon, or f rom spirits distilled after that date and removed from Itharehow3e at 50 cents per gallon. 01 the spirits in bond at the passage of the act in July last, 14,976.298 gallons were remaining on the Ist of November. This by . the requirements of law must all •be withdrawn on or before the 20th darof April next, and with the tax of 50 cents per gallon and 43-1 per barrel of forty proof gallons will yield a revenue of $8,605,779. From a careful eonsideration of the above, and of other data which the proper limits of my report will not allow me to present, I confidently believe that the receipts for the present fiscal y ear will reach the sum of $145,000,000. UNITED. STATES COURTS AND: ATTORNEYS . It is the duty of the district attorneys, under the act of March, 18G7, to make report to,thie °Rice at the doze of every term of court, of suits brought and the condition of all ' suits or proceedings in which the Putted States is A party,. , and,character of :these reports prevent the distribution of tbe suits throngn different fiscal years with positive' Accuracy, but the following statements believed:- to -be measurably> correct for the Year illeoai .umber of snits brought to federa contts, F 5 ,3 05 Of these 'the nuMber of proceed ma in rein -- • , I wigs .wrS. - • 2,21.11 Vamber of inolcaentil found and. tiled 1,081 Number of other proceedings in person am 1,033 guomutit recovered in proceeutngs for forfeiture. 1,261 Convictions on indictment, some includ• pit more tinuil 0110 person' Number of Dinmber of ar)tte decided in favor of the United Stales - 9,532 Number of suits decided against 'United States. . 382 number of suits settled or dia . missed.... 621 Number of mitts petding, July. 1, 1868... , 0J.5 Amouht of judgments - recovered In suits • • -- , personain $741,797.47 Amount collected from judgments and paid Into courts 127,810.01 Proceedso of forfeitures paid into courts., 1,130,150,73 . ..$5.116;14 0 ,40 6.819,34549 T0ta1.... -41,154,027.61 oisruxso smarts —OPne.6.TIOSISOP THE NEW TAW. The rernocelfing of distilleries to conform to the law and the reguiations, and the erection of distillery warehonees, have been the occasion of great expense and delay to their proprietore,whtle the survey , of tits ti Hertel'. the procureinent mid distribution of stamps, the preparation or Yforms and regulations, and the grcatly increased correspondento consequent upon the inauguration of the new law, has imposed an im mense latter upon this oflice,"aild - epon the local °fib cers.of the district where distilleries are situated. The nature and extent of this work will be beat 'exhibited.. by &brief refirence to epee of the most important re quireteents of the statute. Every dietillery, whether intended for use or other wise, must be registered with the • assessor of its dig tract. Its owner must file with' that ofilcer notice of its location, description and boundaries, its mashing, fermenting, and distillingcapacity, and its. ferment-- tee period , - together with the number, kinds, and con tents of , the tulle, boilers, tuba audjoisterns employed. An;accurate plan of the distillery and its apparatas, eliiving, the relative location 'of every atilt, boiler, doubler, worm-tub, cistern, Pipe-valve, and, other p_aris of the machinery , must be displayed upon the pretrifsee, and a copy tlled with ' the assessor. ' With - the aid of aperson _skilful and competent for such purpose, the assessoria required to make a survey of every distillery, and to estimate and determine its trueproduchig capacity, for- the purpose of assess mesh in case of-deficient returns. Coates of all the papers above referred to are sent to this office, where a full and complete record is kept'of ' every distillery. A warehouse meet be established for every distil- • Itry, and, under the direction and control of the col lector of the district, placed in charge et a more itesper appointed by, the Secretary of the Treasury. A bond in the penal sum of double the tax upon the possible production of the distillery for fifteen days must be given t y the distiller, with at least two sare ties approved by the assessor, creditioned, among other things. to a faithful compliance with all the provisions of the law. All this meet be done before a d istillerris allowed to commence operations Afterwards daily reports to this office ere made by ite storekeeper of all spirits entered end withdrawn from warehonee., and monthly reports of materials used, beer msde and spirits pro duced at the distillery. Reports of like character are made each month by the:assessors. based upon the tri-monthly reports to them front distillers, and including also their assess ments of deficiencies, and of the per diem and per bairel. taxes imposed by law. These various reports when received here, compared with and chsetred by each other, are dully , recorded and filed. The number of distilleries registered and thus far reported to this office.inciadinfr those not intended ' for present use and those for the distillation of fruit, is 1.290. The plans of 316 distilleries, other than of fruit. have been received and filed as in accordance with the law and regulations, and otherb - have been returned for correction. Of these, 64 arein Pennsylvania. 51 in Ohio, 41 in New York, fZ in. Illinois, 26 in Ken tucky. 16 in iudiptia. 14 in Virginia, 10 in Tennessee. 10 in fdissouri, 10 in Maryland, 7 in Massactitsetts, 7 la Wisconsin, 6 In Louisiana, 6 in lowa. 3 in West Virginia. 2 in Connecticut and 1 in each of the States of Alabama; Arkansas, Delaware, 11 pants, New Hampshire, New Jersey, and 1 in Utah. and 'l in Mon- 71.349 ES 11,806,928.4 9 $74,430.98 250,150.69 E 06,402.45 229,659.55 220,85u.53 costerrozahas, The power of compromise has been exercised with great cure. and only npon the recommendation of the i local revenue officers or district ' attorneys. and the approval of the Secretary of the Treasury. Nrtalleged violation by distillers had treets compromised except upon the opinion of the government attorney that the offence was technical, or could nor be proved to the The number of cases compromised during the year MB Oa From these there was received as tax.... $419.043.0 Assessed penalties. fixed, - by law . 142,0!. 3 - In lieu of flnes,penahes,and forfeltar,s. 002,027. ed No plans bave been received from the 'Pacific coast, although distilleries there have probably been pat in operation. Distillery Wharehowses have been establledied to the number of 459._ •• • rom the repo of the storekeepers it appmrs that •Af-i distilleries are in operation, with an aggregate daily producing capacity of 227.758 gallons. The number of Class.it wharehouses existing on the ist day of July last was 779. Their number was grad ually and rapidly reduced until the Ist tristard, when the number was 172, containing manufactured to bac= aid most of the _spirits distilled prior to the act of July 20, and still in wtuirehouse. The statute now in operation contains many im provements upon that of '1866, is faller and more definite in Its exactions, places the distilleries and their operations more completely in the hands of the government., and 18 more rigorous in its punishment of offenders, but its successful operation atter all must depend upon the vigilance and fidelity of the local officers. The corruption of storekeepers, gangers and assistant - assessors, even when assessors and' collectors are above euspicion, will always open sources of rain to honest tax-payers and loss to the treasury, which neither the 'wisest legislation nor the most stringent regulations of the department can MBE. Since the date of the present statute, however there has been a large reduction in the number of illicit stills in most parts of the country. Those properly registered and authorized have paid, it is believed, a greater proportion of their liability than under the previous law, and the receipts have been in marked and favorable contrast to those of the corre sponding time last year. t3PIRIT • ItETZHE. It-will be remembered that the joint resolution of February 3.1868, providing for the appointment of a commission to examine and test spirit meters, further provided that, until the report of the commission and additional legislation upon the subject, all work on the construction of meters under direction of the de partment should be suspended, Although this report was laid before Congress in. March, following, no ac tion was taken thereon until the act of July :10, by which the Commissioner of Internal Revenue was au thorized to adopt and prescribe for use such meters as he should deem necessary. The meters adopted by the Secretary of-the Treaso n, on the ltith of Aprll, 1867, and in progress of con struction at the date of the joint resolution above re ferred to. w ere three of Mr. Isaac P. Tice. of New York. That no injustice should be done distillers, who were required by law and regulation to purchase these meters, it was stipulated with Mr. Tice that their price should be fixed by a committee of three— one named by the Secretary of the Treasury, one by the Commissioner of Internal Revenue, and one by the manufacturer. CII. , LNOZEI OF BTATT". TSB Next to frequent changes of officers there is noth hag eo prejudicial to the personal convenience and in terests of tax-payers, and eo productive of loss to the revenue. as frequent changes of the statutes. The recent act relative to distilled spirits. tobacco. snuff and cigars, has been in force for so brief a period that but few modifications which its operations may prove necessary can now be recommended with confidence. I would respectfully suggest, therefore, that the general codification of the revenue 'laws, be gun at the last session of Congress, be postponed a and that tt this statute ma be more throu. aa a single act theny o be passed embgracing hly Lal that is valuable in existing laws, and of each char acter as to Inbar° it against the necessity of amend ments for several years. Some legislation, however. In addition to that re commended in my report last year, and not covered by the act of July last, is, I think, advisable at the present time. • LIMITATION OF COMMISSIONERS' AUTHORITY TO RE- - FUND TAEZ.9 FLBRONEDUEILT COLLECTED. The authority vested in the Commissioner of Inter n al Revenue to refund taxes erroneously collected has been the means of preventing muchinexpensive litiga tion, and hat afforded speedy and expensive relief to many persons who have been compelled to pap more.than was legally due. While a withdrawal of this authority would be productive of great hardship in many cares, I am satisfied that a statutory limita tion, of the time within which such claims must be presented would tend to prevent much abase. I would recommend that 110 claim be allowed unless it is presented within fifteen months from the time when 'the tax was paid: STAIIIPS UPON TAN-PAID TOBACCO - AND . SNUFF It having been found practically impossible to pre pare and furnish to collectors in all parts of the coun try within : sixty days from ths passage or the act of July 20,1668, the stamps required for distilled spirits and tobacco, the Secretary of the Treasury, lathe ex ercise of the authority conferred' open- him by the 108th section of the act, fixed. the 2d day of 'November as the - day for putting into operation the proviKons relative to. the use of stamps.: upon distilled spirits,. and the twenty-third day of No vember for atampa upon tobacce and. cigars. In anticipation of a much earlier nee of stamps upon tobacco, it was enacted that after theist day of .Tann ary, 1669, no smoking or fine cut chewing tobacco or snuff shall be sold or.offered for sale except at retal4 from: stamped wooden packages, melees put up in the prescribed form of package and duly_ stamped. It was believed that, by the close of the , cal endar year. the:: ,etock on the market , : when the use of ' staMpc should begin, =Would - be se nearly exhausted that it would not be bardensomd to impose a second tax upon the small remnant uncon slimed:- -- The short interval between the 23d day of: November and theist day of January will not give the Intended opportunity for the conaumption of un ataineed tobacco, and;Congress will probably see fit to 'enlarge it I. have been urged to recommend that provision be made for issuing stamps without charge,' to be affixed to all, such tobacto as may bet in the hands -of dealers on the appotnted day. Evasions of the law 'will be comparatively easy en hug as tobacco may be sold without stampe„ and prominent maunfactarers believe.that the advantage to the revenue of the early termination of thetas opportunitlea willmore than .compensate for the (Aliens° andlnconvenience attend lng it. I fear, however, that" if this method; Were' adopted:it would be impossible to Prevent the misuse of tie-free stamps upootobaccoproperly taxable' 'and' ;prefer, therefore. a poatponementt to vilWater tbamt the let dap of Januar. riatix.sna xsy Baomswe.sai,me . , ' I have heretofore, in ' annual reports, expreseed the opinion. that the attempt to et:Meet taxes by means of stampie upon !Detriments• having no permanent value for Purposes of evldericer woald prove a falters. Cettainty rather than Beverrity of punishment must be relied on to support the sanction of penal statutes. To no one ot-the various steata taxes now imposed do theee considerations apply with (creator force than to the memoranda required of brokers when making eales of coin and 80cl:irides. Theao memoranda aro in nokonse evidences of title. During tne fiscal year 1866, when the tax upon sales of this description was paid' Monthly to the collectors. the receipts from this source were in excess of 62,6(0,000. In Aagnst, 1866, the tax was reduced from one-twentieth to one-hun dredth of one per cent, and:made payable by stamps; bet at the same time such chenges were made in the tetras of the statute ae to render aubject many alai which had• before escaped taxstion, and thus to some extent to counteract the effect of the reduction in rate. eince that time the sates of stamps have been scarcely larger than before, and L am satisfied that a return to the for Mer method would ' esenre ca more thorough enforcement of the law and yield nincti,richer results. COMPENSATION OP ACTING cottecroits. By' the third section of the act regulating the tenure of offices, approved March 2,1867, it is provided that in awe no appointment is made to a vacant office der ive the eessiot of the tsenate„ "the office shall remain in oheYanOo without any salary, fees, or emoluments Attached thereto," and "the powers and _duties. be longing to such office shall be exercised by such other officer as may by law exercise such powers and duties in case of a vacancy in such office." Under the statutes relating to internal revenue a collector appoints his deputies and pays Orem oat of his cowl:Maidens, and when a vacancy, occurs in the office of collector, the duties of the office devolve upon one of his deputies. It follows that when a vaaincy in the office of collector of internal revenue Is not filled during a session of the Senate, a deputy Collector must act as coltector, while no provielon is made for conmensatang him for discharging the duties of either office; At the edjournment of.Cengress on the 3d of 'blotch, 1867, there were 69- vacancies in the-office of collector. Deputies of` the retiring' collectors re mained in charge of , their reopecttve offices until new eippointments were made, -- and they have - not received compezeation for their services. 1 recommend that some provision• bo made for paying them proper sal aries, and also to meet similar cases that may occur hereafter Much inconvenience and delay is now experienced in paying the ettbordinate officers in a district When ever a vacancy occurs in the office of collector, as the deputy who acts as collector is not authorized to act as disbaraing agent. I recommend either that the official bond of a col lector be made to cover his liabilities as disbursing agent; or-if-that is-not deemed-advlimble r then that the bond given by the collector in the cipacity of dis bureir g agent be made available upon the default of his deputy acting in like capacity, as the official bOnd of the collector now Is for the acts of all his deputies. ~~ ~s Y' ~ ess 1= s ~ ~ + The act of July. 1566,- provided a summary process for the sale by collectors. without the decree of for feiture, of goods seized for violation of the revenue laws, where the aggregate value of such goods should not exceed 61300. Ample checks are thrown around the exercise of this authority for the emtection of the innocent, and I believe that no serious complaint of its abuse has ever reached this office. The customs laws have long contained a similar provision, and I are informed that its working hes given general sat isfaction. .che statute in its terms now only applies to goods forfeited under the acts of 1866 and those of an earlier date, and it should be so amended as to apply to forfeiture for violations of any revenue law. The expenees attendant upon sales made in this way are eo small when compared with the costs which accrue before pro, err/ can be sold tinder decree of a United States court, that it would, in my judgment, be wise if the same method of procedure be authorized in the cave of goods of a much higher aggregate value. The act providing for the appointment of supervis ors of the revenue requires that each shall be assigned to a district composed of one or more judicial' die theta. The services of these officers ut k be princi pally devoted to matters having little r erence to the boundaries of judicial districts, sind a' much more convenient arrangement can be made if this particular provision is repealed. In each of the States of Penn sylvania and Ohio the amount of work has been thought to be such as to require the services of two supervisors, but the line between the two judicial districts in neither case coincides with the boundaries of collection districts. Two collection districts in the former State, and four in: the . latter, are thus placed severally under the jurisdiction of ,two super visors. ilgain, the proper supervision of the revenues in the five districts of New Jersey hardly , furnishes em ploymentfor one officer, while it is not convenient to . attach the whole State either to the districts inclu ding the City of New York, Or to that covering the City of Philatlelphia. Violations of toe revenue law in the northern part of the State will ordinarily be found connected with transactions in the one city, while in the southern part the connection will be with the other. In general terms the same may be said of many other parts of the country, and I would therefore recommend that the law be so changed that each supervisor may be assigned to a district in cluding such collection districts as may be deter mined, by the Commissioner of Internal Revenue. iIEVEYME BTAN.P9. ITPOI7 EECETPTES. . The written instruments subject to stamp duty are, with few exceptions, prepared by persons familiar with the requirements or law, and at places where stamps of the proper denomination are kept, and when 'neceesary may be attached without inconvenience. Among these exceptions receipts for money or the payment of debts exceeding $2O are the most prom inent. These are often given under circumstances when compliance with the law would be exceedingly inconvenient if not impossible. and by and to people ignorant of the obligations which the law imposes. It thus often happens that a person innocently issu ing an unstamped receipt may be put in peril of prosecution, while a person innocently receiving it may find, too late, that thq courts refuse to recognize it, and that he is wronged. Without remedy. I am convinced that there is no form of taxation which, producing so much annoyance to the tax payer, yields so little revenue to the goveynment. and I recommend that receipts be stricken from the sche dule of instruments subject to stamp duty. CIVIL SEEMVTCY. In my last annual report I p:resented the distinctive features of the civil service of Great Britain and of several countries of the continent, together with the reasons which, after a study of their superior work ings, had convinced me of the pressing necessity of a change for the better in the service of oar own country. My experience and observation since that time have deepened my convictions that justice to honest tax payers and due regard to our national reputation alike demand the elevation of the revenue service above indivianal preferences and the flucta Wens of Fades. I fully admit that the spirit of our people is some what averse to the permanent service I eo strongly re commend; that political aid from those in public positions is exacted by all political parties, and that rotation in office is the long-established practice under local as well as under the general government; but, unless free institutions mete prove failures, ballots Minn be cast:from honest convictions rather than the hope of political preferment or the fear of political displeasure. The inevetiable tendency of such prp t strce is-the demoralization of oar institu tions and the degradation of official position—good men in all parties relaxing their interest in public affairs when place-hunting instead of principle is the controlling power, and men of well-earned and established reputation refusing to imperil it In places which have been desecrated by in competency or fraud. The principles of Mr. Jeucke's bill, repotted to the House of Representatives from the Joint - Committee on Retrenchment, passed into law, would prove of immense public advantage. TEE OFFICE OP CODIRISSIONER.-A SEPARATE DEPART WENT. The bill 'reporfecT---by . the Committee of Ways and Means at the last. session of Congress, proposed to create this office into a separate department. with the Commissioner as its bead, instead of continuing lt, as it has hitherto been, a bureau of the Treasury - Department. My experience long ago convinced me that such a change would he productive of great benefit to the service; bat the sub )ect could so readily be made to assume personal and partisan aspects, thati have hitherto refrained from its advocacy. Jadginglrom tht past, the passage of no general revenue law can be expected until near the close Of the approaching session; and as the change,if made, will thus coincide with the incoming of a new administration, the question can now be considered solely in the light 'of its adminstrative merits. I believe the public interest would be best eel served by the erection of a new department, which Should embrace the collection of all the national revenues ex cept those derived.from thcsale of the public lands. I am, sir, with great respct, your obedient servant, B. A. RoLuss, Commissioner. Hon. H.MeCalloch, beeretary of the Treasury IBM .1E" 4001=1.7C OF THE SECRETARY OF THE INTERIOR. DEPARTMENT OF THE INTERIOR, Nov. 30, 186'3. have the honor to inform you that the reports received by this Department from its bureau and'other officers have, pursuant to law, been transmitted to the public printer. During the last fiscal year 6,655,7422,4 acres, of public lands have been disposed of. Less by 885,372 acres that than disposed of the previous Tho cash receipts of the office during the same period, from all sources, amounted to $1,632,- 145, which exceeds the amount received from the same sources the previous fiscal year by $2.84,883. Lands still undlsposed of are 1,405,366,678 acres. Of the two Revolutionary soldiers pensioned by special acts of Congress in 1867, John Gray, of Ohio, has' died. The other, 'Daniel F. Bakeman, of New York, is reported as living. There are at the present tithe , ou the rolls' the' names of 888 widows''Of 'ReVoltitlonary soldiers and 1,803 widows and' children of, soldiers , who 'served in. Wars finlisequentte;the Itexelutio.o,444 prior to the rebellion. ) During the past year theni weie exaniiirect 011 owed. 9,825 Iterr apPlieatiOtts for invalid pen __ 'Mons of soldiers Man aggregate annnal - rate ~ of' $628,271, and 4,854 applications .for, increased pension"of Invalid-soldiers, at an anneal aggre gate rate of $280,487. Daring the saute period . 19,242 original pensions to widows, Orphans and dependenrrelatives of soldiers wore allowed, at tm aggregate annual rate or $1,01a,202, -and 27,053 applications by the same Class for in creased pay were also admitted; at; a total annual, rate of $1,725,960. On the 30th" of June,4lB6B, there were on the rolls 14,782. invalid Military pensioners, whose' yearly , perisione amoanted to 186,828,025; and _92,213 .widows, orphans and dependent relatives of soldiers, whose yearly pensions amounted to $12,065:068, making the total aggregate of army pensioners 167,095, at a total annual rate of $18,893,094. The whole amount paid during the last fiscal Year to ', invalid military' pensioners was $7,484,780; to widows. orphans and dependent relatives $l6,- 173,801, a grand 'total of $23,658.598, which in-, eludes the expenses of the disbursing agencies.' During the same year there were admitted 135 new applications for invalid navy pensions. at an annual rate of $12,890; fifty applications for increased pensions of the same class at an annual aggregate of $2,994;;219 original applications of :widows.. aena_ and_deperidept _relatives of, those who died in the navy, at an aggregate rate of $26,012 per annum, and 'seventy-twopen sions of the same class were increased nt a- total yearly rate of $3,600. On ,the 30th of June,lB6B.tbe rolls of the navy pensioners bore the names of 1,175 invalids, at an annual aggre gate of $94,833, and 1,443 widows, orphans and dependent relatives. at an aggregate annual rate of $236,256. The amount paid during the'last fiseal year to navy invalids was $97,340, and to widows, orphans and dependent relatives or-offi cers and seamen _of _ the_ navy,_ $255.013; a total amount of $352,383: • • '44 During the year there were added to the number of - pensioners of all there--were dropped, from various causes, 14,752, leaving on the rolls, January` 30;'1868,169,643. The total amount paid for pensions of all classes, including the expenses of disbursement, was $24,010,981, a sum greater by $6,391,025 53 than that paid the previous year. There were 1,077 bounty land warrants is,ued for 167,720 acres. The expenditures for special agencies are largely exceeded by the pecuniary gain to the govern ment. Over NU claims 'have .thus been Rand fraudulent, amounting to $27,000 per annum. An act approved March 2, 1867, established a Department of. Education, entrusted the manage ment thereof.to a commissioner, provided for his appointment, and authorized the employment of sundry clerks, who wort made subject to his ap pointing and removing power. It devolved upon him the duty of presenting to Congress annual reports, the first of which was to contain a state tnent in relation to the land grants made by Con gress to promote education. An act of the last session declares that the Department of Educa tion shall cease from and atter the 30th of June next, and that there shall be established and at tached to this department an office,to be denomi nated the "Office of Education," the chief officer of which shall be the Commissioner of Education. As In the past so in the future, when new States &all be admitted into the Union Congress will grant tbem land for educational and other purposes, and the •administration of the fend derived from the sale of it should he confided to them. Interference by Congress in matters of purely local concern can be productive of nothing but unmixed evil. should, however, "the Office of Education" be perpetuated, I suggest the propriety of enacting by whom the - Commissioner shall he appointed. - The act of last session in other respects. should 'be modified. Under the constitution "Congress may . by law vest the appoint ment of such Inferior officers as they think proper in the President alone, in the courts of law or in the heads of departments:" It has been Judicially determined that clerks are offi cers within .the meaning of this provision, and the power of appointing such as this bureau may,, in the opinion of Congress, require, would there fore be vested in the Secretary of the Interior. The Commissioner s as other officers of like grade, should be required to report to the department under whose supervision he acts, and not to Con gress. An appropriation for the next fiscal year of $6,000 will be required to pay the contingent expenses of the office„salaries of the Commis stoner, and two clerks of the first class to be ap pointed by the Secretary of the Interior. This sum will be ample if the office be economically administered. No greater clerical force 'should be authorized. During the year ending September 30, 1868, there were 20,112 applications for pat:ODES; 14,153 patents (including reissues and designs) were issued; 1692 applications allowed on which patents did not issue owing to the non-payment of the final fee: 3,789 caveats filed; 180 applica tions for the extension of pilots received, of which 133 were granted. TII receipts were $696,786, being $l7l less than the expenditures. Congress, on the 20th of July last, directed that all moneys standing to the credit of the patent fund, or in the hands of the Commissioner, and all moneys thereafter received at the Patent Of fice Should be paid into the Treasury without de duction; appropriated $250,000 for salaries, mis cellaneous and contingent expenses and other purposes, and reouired it to be disbursed under the direction ci the Secretary of the Interior. The cash then on hand, $63,025, was accordingly paid, and the amount of the credit of the patent fund transferred on the books of the Treasury. The expenses from that date to the Slat of Octo ber were $173,461. The expenses for this and the following month, including the outstanftg chime, are estimated at $120,000. An appro priation of $360,000 will be repaired for the re mainder of the fiscal year. At the date of my last annual report you had accepted four hundred and ninety miles of the road and telegraph line of the Union Pacific Rail road Company, and the Commissioners wore then engaged in the examination of an additional sec tion of twenty miles. Since that date, including said twenty miles, 330 have been accepted. The commissioners have submitted reportg.nion four additional sections, amounting to 100 miles. By a report from the government directors it appears that the expenses for operating the, road for the year ending September 30, 1868,were $3,- 21.1,565. The amount received from passengers during the same time was $1,109,501, of which $130,239 was from the United States. The amount received from freight was $3,077,33e, of which the government paid $550,759. This Department, on the 25th of September, represented to you that the time had come for such revision. Brevet Major-General Governenr K. Warren. United States Army: Jacob Blinkers-. dei fer, Jr., of Ohio, and James Barnes, of Mas sachusetts, were appointed commissioners for that purpose. The first 14 an accomplished ofil-T cer of the corps of engineers, the other gentle men are civil engineers of large experience, and ate reputed to be thoroughly versed ir. the science and practice of theirprofession. The commissioners' report has just been re ceived. The trust confided to them appears to have been executed with intelligence and fidelity. , A description of the location of the road is given. The elevation at Omaha is 946 feet above tide water, and at the head of Great Salt Lake. 4,315 feet. The sum of the ascents going westward is 12,995 feet, and the consequent sum of the de scents is 9,626 feet. They are of the opinion that the location of the road, as a whole 'and in its different parts,is upon the most direct, central and practicable route, but that the . line is not in all respects well, adapted to the ground, as there are points where the full capabilities" "of the country have not been developed, and otharti Where, in its details, the location is ,radically wrong. This has been occasioned by a 'desire to diminish the cost of work by the introduction of more and sharper curves than the circumstances require, although the saving in cost was but small in comparison to the permanent Injury of the road. The commissioners are of opinion that the line, as built, should not be permanently adopted, and that economy and the beet interests of the road require alterations and improvements to be made. The road, when examined, was built 890 miles from Omaha. Its construction, so far as exca vations and embankments were required, was easy. From Omaha to a point 5'35 miles west there •are no rock excavations, and the natural surface of a great portion of the in termedlate country presents nearly practicable grades. From the latter point to the end of the track, the work Is less than on Eastern roads of the same length, and the moat difficult parts are light'in comparison with roads in the Allegheny mountains. There is but one tunnel. It is on the bank.of St. Mary's creek, 230 feet in length. The rolling stock ol the road consists of 117 locomotives, 19 first-(lass and 8 second-class pass senger cars, 15 baggage, ' 442 •box, 1,227 Ilat, 43 coal and 72paboose Care, besides hand and other ears suited to special purposes., Thelocomotires are well constructed and the nUmber, on hand ~ I:!rtibably'suflielent for the present want''of the road. An additional firinabnn Will he required, foe, thatpart the road where the line is open for' through traffic. The ma are Ciptal to those on ,ttio' best roadai and thhaccounnodations for the dare., ,Maintenance and repair...9f the rolling stet* are now sufficient tanleet curient idnlnitfidEcinat .abet effiraged !nine' to meet' , -in clueing neceeoitiCo of tlto rod. • The CorelniesionerB submit the fellowleg mate of expendlture'whicli will reqnired to render the first 890 milea sof tee rot4',equal to ar t • fully completad flrst-crags.rallroad:': Ne antes are made for workinProgmasormaterifq # l and equipments ordered or reported ,10 be 8n transit:, for delliery or already delivered, exctot So far as they are placed in position in. Rao strusot lures themeelves-46,401 4 ,550. • ' -The following estimate Is furnished by the Commissioners of the cost of constructing *el fully equipping the road from the month -of tbe Weber canon to the head of the Great - Balt litke —43,5 . 15,550.. _ As the actual cost of this road 13 a matter of public interest, I deem it proper to present, In tal cendensed form, the estimates subtnitted,.on the 14th inst.; by Jesse L. Williams. Ile states . that • the cost of the road as shown on the tho Woke of the railroad company is, of course, equivabint to the contract price per mite. The actual cost to the contractors, forming an association which embraces most of the larger stockholders of the tempany, is shown only by their '011 2 ; vato :books, to which the government directors , . have no aecess. • The calmly,- Lions were, therefore, made from the most scan - .7; rate, aVallable.dataankthe estimated _cost of the first 710 miles of the road was taken as the basis for computing that of the whole Ilde. Shetridt the road, as is expected by the company, form' a junction`with that of the California company, near, the northern`extreme, of Great Salt Lake, a. little west of Monument Point, its length wont& be ablaut 1,110 miles. The cost of locating, cae-: strutting and completely equipping, it And the telegraph line is $38,824,821,an average per miler of $3.1,977. • • The government subsidy in bonds for that 4 dltt , tanceat par amounts - to $20,501,000, an 'aver - eget '- per mile of $26,580. Thu company's first more gsge bonds are:estimated at 92 per , cent:, and; would - yield - $27,143,680: The fend realized by.- - - the company from these two sources amounts , $56,647,680,being an average per mile of $51,03f, exceeding by $10,056 the actual cost ofconstrae,t7 big and fully, eqUipping the reed - ; end yielding it' profit of more than $17,750.000. The Central Pacific Railroad Company, of California, have constructed 390 mUes of, their road and telegraph line, of which 203 were con- '', etnicted and accepted since my last annual re port. ,This cOmpanyfiled a map of the dedett* location of their road from Humboldt;Walls, by. 4. way of the head of Great Salt Lake, to the,mouth of Weber canon. .On the 15th of Slay last 'gave my "consent,and approval" to the location, as far as the head of Great Salt Lake, a distanee of 140 miles. Subsequent surveys corrected 'and improved the unaccepted part of the llnec - ittni,ott the 14th ultimo they tiled a map and profile from the head of Great Salt Lake to Echo Summit, to; which - which - location I gave my "consent awl appro val." The company state that their earnings for the 4 six months ending June 30, 1868, were, from pas sengers, $145,048, and from freight, $261,410. Their expenses for the same period - were $157,031 and their indebtednces at that date, $23.862,727, of which the sum of $7,340,000 was on account of bonds issued, by the United States In aid of the construction of the road. _ _ _ On the 13th ultimo Special Commissioners Sherman Day, United States Surveyor General of California; Brevet Lieutenant Colonel „R. S. Wil llamson, United States Army, and Lloyd Tevis were appointed to examine the roads and tele- graph lines of the Central Pacific Railroad Com- - patty of California and the , Western Pacific Rail-; road road Company. They were instructed to report in regard to the location. road-be.d, ewes -ties, track-laying, ballasting, rolling stock: repair shops ; station buildings,, culverts, bridges, mkt- ducts, turnouts, and all Other appurtenances of the roads, and the amount of expenditure re mitred to render them, so;far as built, equal in 'every respect to fully constructed first-class rail , roads. No report has been received. At the date of my last anneal report the Mien Pacific Railway Company, Eastern Division, had constructed 305 miles of their road and telegraph. line, and 285 miles thereof had been accepted, Since that date 88 9,425.10,000 additional miles have been constructed and accepted. The amendatory act approved July 3, 18C6, :authorized this company to designate anew wide and file a map thereof. They: wererequired, however, to connect with the Union Pacific, at a- ; point Rot more than fifty miles westerly 'from . the meridian of Denver, in Colorado. • Their right to, bonds was limited to the amount they would have received had, the road been constructed on the original route to the one hundredth meridian of limagitude. No accept able survey had been made from Fort Riley to that meridian; and as the department was not officially advised of the exact distance between those points, Brevet Major C. W. Howell, Cap tain of Engineers, United States Army, was, at my request, assigned, on the Bth of Jane last, by the Secretary of War, to make such survey. He executed the duty and submitted a report under date of September 28, 1868. He determined the distance to be 258 9,495-10,000 miles. He. also also ascertained that the meridian is 9,300 feet west of the point desiguated .by the Union Pacific Railroad Company. This survey was approved by you. The distance,.. for 'which the company was entitled to bonds is 393 and 9,425-10,000 miles. The following sum mary is made from their report: They have . con,, strneted and operated the road , 195 miles west of the initial point. It, has been provided with round-house accogratodations . repair , shops - turn tables, water tanks , sidings, Av., to meet the immediate wants of business, and the neees-' -1 eery warehouses and depot buildings have been erected at the stations for the accommodation , of passengers and freight. The equiPment is as follows—Twenty-nine locomotive' ' engines, twenty-one passenger, and 87K" other care. The aggregate earnings from Sep- , tember 1, 1867, to August 31, 1868, were $1,878,- 588, and the expenses $1,247,816, leaving the net earnings $630,771. The average length of road , operated during the year .was 331. a miles, and the average earnings per mile.ss - ,669. Surveying parties employed in examining the routes of the thirty-second and thirty-fifth parallels, have ells-, covered on the latter a practicable routs westward from Albuquerque to the Pacific. It crosses the Colorado river south of Fort Mohave,. and thence runs westward to the city of San Francisco, through Tchaehepah Pass of the Sierra Nevada Mountains, which is only _4,020 feet above the sea. The highest point is la ,the San Francisco Mountains. 7,461 feet. The entire line is exempt from obstruction by snow, and traverses a country rich in mineral wealth-:and, abounding in timber and coal. Surveys have also been made from Fort Mohave; on the Colo rado river, to San Diego, [Lad from Fort Wallace, Kansas. by way of Puede Pass and San Louis Park, to Albuquerque. The cost of surveys in -1867 and Dela was about $225,000. Sixty-nine and one-half miles of the ;road and • telegraph line of the Sioux City. and Pacille , Rail- , road Company were completed, equipped and accepted in March last. About thirty-one, and a half miles, necessary to make a connection with the 1.7r.i0n Pacific Railroad, are under contract and in process of grading. The iron has been purchased and is 1U tre2lainl. The company has secured a water (rout of about one mile on each side of the Missouri river; and has con- - tracted for a steam ferry to pass the cars over. the river. The indehteduess of the compaaa is represented to be $3.299,801. fire amount received is given as $96,699; opar , acing expenses, $53,184. The company have six first clasa • 'ocean:dives , and ninety-nine passenger and other cars in use. They expect to have the whole line of road com pleted and in operation next month.' No track has been laid by the Western Pacifie Railroad Company within the past year. They, however, reported on the 15th of September_ last _ that the grading of theuhfinished part of the road would be completed and ready for the track in 'a • • few months. No portion of the Northern Pacific Railroad; has been constructed. The company report that surveys have not been continued - diving the past season for want eta military escort \ to pro- tect surveying paeties. In 1867 two routes were run - rom Lake Supe rior. One commencing at the west end of the lake and the other at Baytielda The first, follow- ing a westerly course, crosses the Mississippi about twelve miles above Crow Wing; thence rens south of and near to Otter Tail lake, and, pursuing the same general courses intersects the' Red river at a point botween,Fort Abercrembie. and the mo u th of the Sioux Mood river. The second follows a southwesterly courser for fourteen 'miles to Pleasant bay; thence Wester ly to within eighteen miles ,or auperlera thence its course is direct to the Miseissippl,crossieg that river at St. Cloud; thence northwesterly up the Sauk Valley to the Sioux' Wood river, a little to a'; the south of Whertait joins the Otter Tail river. Both of these , lines have with a`direction on ap proaching the Red or - Sioux Wood rivers that: wherecontinued westerly they will pass to the south of and near the Cheyenne river in Dace tah.. The dietaries of the first Is 232 miles;and its estimated cost $7;a67,000, being an .avorAgo per tale e 114,857:, The distance of the iteemid is ! aa.'7, Milos and its estimated ,$1.1„815,000, , k4a. 1 , the alt average per mile of $37,236- The *Eget nianViefavorablOnii both rendes. The Ittraidoip* , [o(irititiacel an ago Eiska Pasuj •
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