The press. (Philadelphia [Pa.]) 1857-1880, December 11, 1863, Image 1
nm paxes, rPJUBHID DAILY (SUNDAYS gXOETIDI. n JOHN W. FOKJfKT omci. No. 11l SOUTH FOBETH STMNT. ■HI DAILY PBKS9, limat Qivn Pa* Wire*, par»We to ttif wriwi; Mailed to BnbHriban out of the City at Satrra Doha** Pi* Avmrxi Thau I)oli.ar3 a*d Fifty Ghntb for Bnjt Booths; On Bomi ari> Sbvbhtt-fjvb Osots »o*J SnuKoim, laTarlablTin adranoe forth* Un*or | dered. WAdTertlMMente lneerted at the ninal rate*. Hx [laee gonitltnta a aanare. VIUE VRI-WKKKX.X PM.JCSS, Hailed to BnbMiibsrs out of the City at Fooa DoiiWUU Pi* inn, InadTanee. ' JngjJe FRIDAY, DECEMBER 'll, 1868, EEPORT OF THE SECRETARY OF THE TREASURY. In submitting to the consideration, of Congress the re* .Jport on the state of the finances, required of him bydaw at the commencement, of each session, the Secretary of the Treasury lias much satisfaction in being able to s&y, in general, that the operations of the Department en trusted to his charge have been attended,during the last fiscal year, by a greater measure of success than he ven tured to anticipate at its beginning. At the bcginuiog of that year all demands on the trea sury had indeed been discharged, and there remained a balance to the credit of tho Treasurer of >513,043,516.51, 3utthe Urge disbursements, constantly demanded by military and naval operations, reduced, by comparison, this seemingly considerable balance to almost Incon siderable, proportions, and the practical operations of the rettrlctive provisions of the acts authorizing tho ne f;otiatton oflhe bonds known as fiye-twentiea, the most mportant loan acts not' already fully availed of, made mew negotiations for adequate amounts and ou adm'ssl fcle terms quite impracticable The reverses which befel cur arms in Jane, July, and August, increased the diffi culties of the situation, so that, thongb the Secretary Was en&bltd under existing legislation to provide large ly for the increasing disbursements, there remained ne cessarily unpaid, on the first day of the last session of .Congresfi.reqnisitiona on the treasury, chietly from the “Warand ft’avy Departments, amounting in the aggre gate to the -sum of $46,594,876.80. To provide for these requisitions and for current de mands, Congress,on the 17th of January, lSa3. authorized an additional issue of Untied Stages notes to the amount of one hundred millions of dollars; but did not reach any definite conclusions in regard to loaasin time to em body them in an act before the day on which tho session dosed. On that day,March 3» 1863, tho act to provide way i and means for the support of the Government received the approval of the President and became law. In addition to various provisions for loans, it contained clauses re pealing the restrictions affecting the negotiation of the five-twenties, and thus disengaged that important loan irom the tmbarrassments which had previously ren dered it almost unavailable. A week earlier,on the 25th of February, an act, even more important to the credit of the Government—the act to p: ovide a national currency through a national bank ing system—had received the sanction of Congress and the President. The salutary effects of these two great acts were soon conspicuous. • • ~ Notwithstanding the aid afforded by the additional . Issue of United States notes, under the joint resolution, of the Secretary had found it impossible to pre ■vent a gradual increase, during the session of Congress, Kin the amount of unpaid requisitions. Those which were Unsatisfied, at ;he beginning of the session were indeed large sums were applied to new demands current disbursements. But the aggregate of dis agreements, remaining necessarily unpaid, increased notwithstanding all efforts to prevent it. until it the session, the sum of #72,171,- (Theloan act and the nationat banking act were fol llowed by an immediate revival of public credit, Success ■quite be) ond anticipation cro fvned the efforts of the Se- Icretary to distribute the five-twenty loan in all part 3 of ■the country, as well as every other measure adopted by |him for replenishing the treasury. The result was, that' pwithintwo-months after the adjournment of Congress Lthe whole mass of sutpended requisitions had been sa tisfied, all current demands promptly met, and fall pro ■vision made for the pay of the army and navy. During the remainder of the fiscal year no embarrissments at ■tended the administration of the finances except those fcvhich are inseparable from vast expenditures. Not pvtihstandieg these expenditure), It is gratifying to be ■tbie to state that daring the last year the total of dis* ■bnrsements did not greatly exceed, while the increase of ■the public debt did not equal, the estimates submitted to ■Congiesß by the Secretary at the last session, Tacts, Kvhlle It was then estimated that the public debt on the ■3oth of June, 1863, would reach the sum of $1.122.297,403.24, |ts actual amount on that day was $1,098.703,151.37: Kind while the disbursementsfortheyear were estimated ■it $693,346,321.45,the real total was $714,709,995.P8 aggregate receipts from all sources, including the ■Glance irom the preceding year,as shown by the books fcf the treasury, were, during the last -fiscal year ,$901.- K 25,674.86, and the aggregate disbursement $595,796.610 65; ■feaving a balance on the 30th of June, 1863, of $5,329,- ■44.21. Bnt sums borrowed during the year.and applied ■during the same time in payment of debts, affect on ly no fminally iheutal of receipts and of disbursements. The sums thus borrowed and applied during the last fiscal , year amounted to $151,056,635 07, This aggregate, there fore, should be deducted from both sides of the state ment, making the true amount of receipts, including ba lance from lass year $720,039,039 79. and the true amount of disbursements $714,709,996.68. The balance,of course, remains the same. It is gratifying, also,to be able to state, that while debts did not reach the amount anticipated, the receipts from all sources of income, except internal revenue, exceeded ihe estimates. Thus the receipts from customs, estimated at $G5,C41,736. were actually $:9,069,642.40; from lauds, estimated at $55,724 16, were $167,617.17: and from mis cellaneous sources, estimated ac $2,244,316.32, were $3,- £46,616,36. Din ct tax receipts were estimated 620,717 99, and this amount, or nearly thi3 amount, has boon received in the form of payments for military sup plies and services by the States.ior which they are enti tled to credit beyond their several proportions of the tax. In consequence, however, of incomplete settlements, only the Burn of $1,485,103.61 appears on the books as re ceived into the treasury. While the receipts from other ordinary sources of re venue thus closely correspond with, taa estimates, or largely exceed them, the receipts from internal revenue have alone disappointed expectation. The estimate, in deed, was made of the operation of a law recently enact ed, and necessarily imperfectly executed: hut such, cars had been taken to obtain correct premises that it was hardly thought possible that the conclusion deduced from them could be wide of the truth Under the in structions of the Commissioner, at the instance of the Secretary, a very competent gentleman was for some time employed in ascertaining, with the aid of practical men, conversant with business, the probable amount of revenue from each object of taxation. The result of his inquiries was the estimate which, sanctioned by the Ccmmltsioner, was believed to be correct by the Secre tary, and therefore submitted to Congress. Experience has oemorsirated its error. The estimate was j s2fi,4£G,SQ3.73, while the actual receipts were $57,640,787.95. A part of the deficiency may oa attri buted to the imperfect execution of the law, and a part to the changes made in it by Congress after the estimate was made ; but it is sot probable, had neither cause ope rated- to reduce receipts, that the revenue from this source Would have exceeded half the estimated amount. It is clear that the law, unless materially amended, will not produce the revenue expected from it. The whole of the receipts and disbursements for the last fiscal year may be more easily understood from a somewhat more formal statement. The receipts estimated and actual, then, for the last fiscal year, ending on the 30th of June, 1863, were, In cluding balance from the preceding year, as follows: 1 __ Estimated. Actual; From customs $68,041,75&59 $69,059,642 40 Fxom lands 88 724 16 167,617 17 From miscellaneous 2,244 316 32 3,046,615 35 From direct tax 11,610,717 99 1,485,103 61 From internal revenue. ..... 85,456 303 73 57,640,787 95 Balance from, last year 13,043,546 81 13,013,546 81 Total receipts from all ordi* nary sources $180,495,345 60 $124,443,313 2? The additional sums, actual or estimated, necessary to meet disbursements, were, of coarse, derived, or esti mated sb derivable, from loans. The disbursements, estimated and actual, were as fol lows .~532.511,543 23 $23,253,922 OS .. 598 J, 906 43 4,216,520 79 .. 747,359,828 9S 699,293,603 S 3 ... 82.177.510 77 63,211,105 27 ... 25,014,632 07 24,729.846 61 The civil service Pensions and Indians. War Department Navy Department.... Interest on debt....... Total gross e5timate......5593,346,321 48 $714,703,595 5S But this amount, it was sup posed, would remain un drawnatondofyear, and was therefore deducted from the gross estimate.. 200,C00.000 00 Jdakingactual e5timate?*..5693,346,321 48 In bis last report, the Secretary state! that if the ap propriations should equal the estimates, the balance un expended at the end of the year would probably reach $200,0(0.000, and that this sum should therefore be de ducted from the departmental estimates to make the a? • gregate correspond with probable conditions. The above statement shows-that the aggregate of estimates, thus reduced, was $093,346,321.43, while the expenditures were $714,709,995.58, exceeding the reduced estimates $21,383j 674.10. I From the actual expenditures, $714,709,995.58, there .mutt be deducted the actual receipts, $124,443,313.29, in -order to show the amount derived from loans, $590,266, •662.29, which sum. added to the amount of the debt on the Ist July, 1862, $508,626,499 OS, (heretofore erroneously stated at $554,211 371.92.) gives as the true amount of debt t-n the Ist July, 1563, $1,093,793,181 37 The estimatea fo-r the current fiscal year 1861 next-claim attention. These are founded on actual receipts and dis bursements for the first quarter, which coded September 80, 1863, and on opinions formed upon probable events .and conditions as to the other quarts rs jThe following statement exhibits what is actually . -known, and what, aftercareful reflection, the Secretary + thinks himself warranted in regarding as probable: For the first quarter, ending September 30,1863, the'flcmalreceipts were: From customs. $22,562,018 42 From internal re venue 17.559,713 69 From lands.-.a 136,182 09 'Fromniißsailaneous sources 641.642 04 Total actual receipts for first I quarter ...$40,939,456 14 'To which add balance July - 1 1, 1863.- , - 5,329,044 21 .Jfakingfolal leceipta of first quarter, ex- _ cept loans $l5 268 oOQ 35 Fortbree remaining quarters, ending on the3Uh of June, 1264, it is estimated there will be received: _ From customs. $50,000, COO 00 From internal revenue 60 COO, 000 00“ From lands. 300,(00.00 Frommiscellaneoussources 6,000,000 00 5115,800,000 00 Slaking a total of receipts from ordinary sources, actual and estimated, and in eluding balance, of,»«,«* $161,568,600 33 To whien add the actual and estimated re< ceiptsfroiu loans ■ Ka> ing a total of actual and estimated re ceipts from allsourcee, forJB64 $755,568,500 35 The expenditures may be stated as fol lows: For the first quarter, ending September 30, 1863, the actual disbursements have been: Tor the-civil service $7,216,939 31. Tor pensions and Indians. . 1,711,271 95 For war Department...... 144.357.473 97 Tor Navy Department...... 18,511.618 86 For interest on public debt. 4,283,628 37 Actual expenditures for first quarter..... $176,110,932 4$ For the remaining three quarters the estimates, founded on appropriations and estimated deficiencies, are as follows: Tor the civil tervice.... $27,050,672 21 Tor pensions and Indians,. 6,129,0-12 86 Tor War Department....... 741,092.037 14 ForlTavyDepartment...... 94.467 667 74 For interest on Public debt. Jim 503 01 „ Slating a total aggregate of actual and estimated expenditures of. .. ....$1,099,731,269 42 Bat as these estimates include all unex pended balances of appropriations from former years, they are necessarily much too large, and there may be safely de- ;■ ducted fro 01 their aggregate, as likely . to remain unexpended at the close or _ __ the fiscal year, theisura of. .•. ■• ■ • $350,000,000 00 BlLeaving the total actual and estimated • ' 1 expenditures for 1864 $749,731,960 42 W 'The total of exoenditurea being deducted r from>the to’al of receipts, there will be i an estimated balance on the :10th of June, 1564, of. $5,836,539 93 From this statement it appears that the total rfcaipts required for the probable disbursements of the year, and in cluding estimated .balance at its close will amount to. i * $750,£63 500 35 Of which there have been provided and • applied during the first quarter........ 176,110,031 ‘l6 leaving to-be provided- Of which It is estimated there will be re ceived fo m ordinary sources dar'-ng the three otter quarters 115,300,C00 00 leaving yet to lie provided by loans *1M,157,507 89 The amount of debt created during the anarter is ascertained hr deducting from the total expenditures *176,110,952 16. the aggregate of ordinary receipts and balance from last year, amounting together to *40,265,- 600.85, which gives as the increase of debt *129,842,432.11. To this sum. If there be added the sum yet to beprorlded by loans. SUM. 157,667.69. the result will be *591.000,000, from which, if there lie deducted the estimated balance on the Ist or July 1864. $5,830,639 83,-the remainder will be $689,163,460 07. and will represent the total increase, on the DBBia of tktse estimates?, of public debt duringthe year. Ibe deb: on the Ist of July, 1853, was $1*098.793,- 181.37; to'wbieh if this estimated increase be added the total debt on the Ist of JaJy, 1861, will be $1,635,9)6, 641.44, instead of $1.744,635,6«G. 80, as Q3tiraited in the report of last December. It is not certain, or perhaps probable, that the actual expenditure? or actual-debt will quite reach the amounts now estimated. Indeed, if the expenditures for the first quarter; $176,110,932.40, and the ordinary receipts, *40,050,45614 for the same quarter, bo taken as the standard, the total expenditures of the year will be $764 443 729 S-l. and the total receipts $183,767 624.56. To these receipts, if the balance on the Ist of July, 1853, $0.b20,044 21. he added, it will, make the total ordinary resources ®H9,C80.£68 77; and the subtraction of this anm from the-tot3l expenditures will give the whole amount to be provided bv loans during the yooras $W d, 3 j 6,811.07. This sum will, there'olo. be, on this hypothesis, the in crease of debt /or the year, and, added to the debt exist ing on the let of July, 1883, will make the total amount ■on the 30th of June. iSB4, #1,634,150,G4144. Jt is not impossible that vigor in the prosecution of the War, and economy in every branch 01 expenditure, en forced by wiee legislation, may reduce actual disburse ments and I'onteqaent increase of debt av*n balow.iheie: figures, andlrertatnly few things can bo more desirable than snch ledoctlors. . .. .. The nctiou necessary to these ronuts. is not. how ever except as to the comparatively small expendi tures of th» Treasury Department. within tho sphere as islKMa to tu«-'SgeretOT' Be to accept Estimated. 694,000,000 00 .4570,457,567 89 VOL. 7—NO. 113. the estimates of the several departments, and the actual appropriations by. Congress based apou thorn, deducting only that proportion which experience has indicated as likely to remain as balances u.nexpouded at the close of the year. He thinks, too, that sound prudence requires adherence to tho rule he Pj escribed to hitnself from the first, of overstating rather than understating the bur dens created by the war and the demands thence arising upon the resources of the country. He lias sought to avoid exaggeration on both Hides, but be has thought It more prudent to exetio a little too much apprehension than to encourage too sanguine hopes. The real riifiicnl ties have been, and are, too serious, and the real bur dens too great, notto warrant earnest demands on ail the resolution, all the energy, all the wisdom, and all the economy, which the strongest representations, sanction ed by reason, could or can bring into action. In addition to the estimates for the carrent year just stated, the Secretary is required to submit estimates of tbe receipts, and expenditures of the next fiscal year. These estimates, always uncertain, must, in the present condition of the country, be even less reliable than -usual. . Bat the Secretary is encouraged to attempt them by the circumstance that the estimates for the fiscal year, 1664, submitted in his report of December, 1862, are less ma terially modified than might have been expected by the actual receipts of one quarter, and by the probabilities affecting those of the other three, and the general result is more favorable 1 han was anticipated. Tbe aggregate receipls for )S6i were estimated in that report at $223,025,000, while the actual receipts, other than from loans forthe first quarter, and the aggregate of expected like receipts for the remaining quarters are now stated at only *161,668,600 85, in consequence of the large deficiency in the receipts of internal reveaae. On the other hand, the aggregate expenditures were esti mated last year at $845,413 183 56. and are now estimated, on. the basis of actual returns for part and of estimates for the remainder of the year, at $755,663,503 33. The subtraction of receipts from expenditures -Shows the amount now estimated as required from loans for the year 1864 to be $594,000,000, in dead of i 622,353,183 .Iff, as heretofore estimated. These figures show that the esti mate of expenditures is now $59,844,683 21 less than the estimate of last year; so that, although the ordinary re ceipts' as now estimated will be $6l 4*6,499 45 less than was anticipated a year ago, still the increase of debt will bo $28,365,183 56 less by the present than by the former estimate, which, it should be remembered, as sumed the debt, on July 1, 1563, at $L 122,297 403 24. whereas, in fact, it only reached, at that dale, the sum of $1,098,793,151 37 With these ilhutiatlons of the uncertainty of estimates for a year, which is to commeace more than six months after the makiog of them, and without professing any sanguineeipectations that the estimates now to be sub mitted will, when tested by experience, prove, like the last, less favorable to the country than the actual results of administration, the Secretary sub mils the required statement for tbe fiscal year 1865. founded on the esti mates of their piobaiile requirements famished by the several departments, and on what seem to him proba bilities concerning receipts from ordinary sources of re venue. He 66tint>ates the probable receipts as follows: Estimated balance, July 1, 1854 $5,836,539 93 From customs 70,600,000 00 From internal revenue 125.000,000 00 From lands 1,000,0C0 00 From miscellaneous 50urce5...........5,000,000 00 Making estimated aggregate receipts..., -$206,836,539 93 And he estimates the expenditures as follow*: Estimated balance of former appropriations, unexpended July 1,1864 $350,000,000 00 For the,civilservice. 27,973,194 Si For pent-ions and Indians..... 9.631,304 73 For the-War Department. 636,204 177 77 For theNdvy Department. ...» 14?,6t8,785 40 For interest on public debt. 4 95.837 677 15 Making the aggregate of estimated ex ' penditnres.. ~„sl,lsi t Sls,C&S^S3 But he estimates as likely to remain un drawn on the 30th Jane,U6s, and there fore to be deducted from this aggregate.. 400,030,000 00 Making the real estimate of expenditures for the year ‘.‘5751,815,053 86 From which deduct estimated receipts from ordinary sources, as before stated. 205.826,539 93 heaving to be provided by 10an5..;*..., $54*,973,545 93 Tbe sum to be provided by loans represents the in crease of debt during the year. Assuming, tnerefore, the correctness of the estimate which puts the debt on the Ist July, IStti, at $1,685,956,641 44, It will result,from these estimates, that the whole debt will have reached on the 30th of June. 3865. the sum of $2.2:311916,190 87. Tables are appended to this report exhibiting, in more ae ail and in a different form; ihe general results already stated. The first shows the actual receipts and expendi tures for the fiscal year ending Jane 30, 1863; the »econd, the receipts and expenditures, actual and estimated, for the fiscal year ending June 30,1554, and separately for the two-months of October and November, 1833, with notes, showing in detail the amount received from new loans and applied in discharge of existing debt daring the first quarter and the first two months of »he second, and the amount yet required from loans for the year, and the probable inci ease of the public debt; the third shows the estimated receipts and expenditures for the.fUcal year ending June 30, 1565; the fourth i 3 the Regi-ter’s statement of revenue and expenditures daring the flscsl jtar ending June >O, 1563; the fifth is a similar statement trom the same office for the first quarter of the fiscal year 1564 enoing September 30,. 1863; and the sixth is a complete statement of the. origin, progress, and condi tion, on the 30th June and 30th September, 1863, of the national debt. The reports of the heads of the several bureius of the Department, including that of the Comptroller of the Currency .and the Commissioner of Internal Revenue, will also accompany this report of the Secretary. They show in detail the operations of ihe several bureaus, and the statements and suggestions made in them are commended to the consideration of Congress. .Another statement, showing the prices of the leading articles of cojuumption at New Xork, on or near the first day of each month, for thirty-nine years, commencing withlSJo, has been prepared under the direction of the Secretary, and accompanies this report From this statement he hopes that some help may be obtained to ward correct opinions on many important questions,and particularly those concerning the contraction and ex pansion of currency, whether metallic or paper. It has bee a already seen that the amount required for general disbursements, • exclusive of payments on ac count of public debt, for the three last quarters of the current fiscal year, was, on tae Ist of October last, 8679,467,£67.89, of which sum, $115,800 030 was expected from ordinary sources, and the remainder, $464,157,567 89. wsb expected from loans. - The receipts and expenditures during October and No vember, other than on account of principal of debc, amounted each, as far as has bsen ascertained, to *147,060,731 16, without balance. Of these receipts, $35,629,703. IS were from ordinary sources, and SUI, 931,- 027. 9Slrom loans, either temporary or permanent, leav ing t<y be obtained during the remaining seven mon* hs from ordinary sources $79,670,296.82, and from loans, $35*2,226,5£9 62.: On the basis of these two months, the receipts and expenditures from ordinary sources for the last three-quarters of the year wilL respectively exceed the general estimates by $43.033.664.31, and $39,532,257.72, making a difference in favor of the country of $3,501,- *.6.59 1 The Secretary admits, therefore, no apprehension of deficiency on comparison with estimates, in any of the ordinary sources of income, except, perhaps, the inter nal revenue: nor does he anticipate any formidable difficulty in providing the amount to be obtained .from loans if the successes vouchsafed by a gra cious Providence to our armies during the last nine months snail continue to attend them. .. But no one can be more profoundly convinced than himsell of the very great importance of providing even a larger amount than is estimated from revenue. To check the increase of debt must be, in our circumstances, a prominent object of patriotic solicitude. The Secre tary, therefore, while submitting estimates which re quire large loans, and while he thinks it not very diffi cult to negotiate them, feels himself bound by a pra dent regard to possible contingencies, to urge on Oort* giess efficient measures for the increase of revenue. It is possible that .a limited additional amount of in come may be derived f romijudicious modification of some provisions of the laws imposing duties on foreign im ports; but the chief reliance for any substantial increase, and even for the prevention of possible decrease, must be on internal duties. The Commissioner of Internal Revenue recommends an increase of the tax on Ebank-noie circulation to two and two-fifths per cent.; aj increase of tne duty, on dis tilled spirits to sixty cents per gallon; an increase of duty on tobacco to twenty cents per pound on leaf, and from five to twelve cedts, according to quality, on manu factured; a duty of ten cents per gallon on crud * petro leum: a duty of two cents per pouadon cotton; the re peal of the tobacco and petroleum drawbacks; and va lions other changes of the internal revenue laws, de signed to augment the receipts from this sonree. In the particular recommendations jusi mentioned the Secre tary fully concurs, and commendß all his suggestions to careful attention. The enactment of such laws as will secure an increase of the internal revenue to the amount originally estimated, ofone'hundred and fifty millions a year, is required by ihe strongest considerations of pub lic policy. Hitherto, the expenses of the warjhaye beengdefrayed by loans to an extent whichnothiog but the expectation of its speedy termination could fully warranc. In his fir<t r report, submitted at che special session in July, 1861, the Secretary stated his conviction that, to a sound financial cobdition, a system of taxation certain to produce a sufficient revenue to pay the whole ordi nary expenses of the Government in times of peace, and the entire interest on the public debt, and to create a gradually increasing fund for the redemption of its prin cipal, was indispensable It was not important, bo long as it seemed highly probable that the war would be speedily brought to a successful close, that the revenue should largely exceed the ordinary expenditures and the interest. On the contiary;it seemed wisest toob* tain the means for nearly the whole of the extraordi nary expenditures by loans, and thus avoid the necessi ty of any considerable increase of the burdens of the people at a time when the sudden outbreak of flagitious rebellion bad deranged their business, and temporarily diminished their incomes The financial administration of the first fiscal year after the outbreak of the rebellion was conducted upon these ideas The acts of Congress at the extra,session of July,lB6l, were framed with the intention of supply ing the full amount ol revenue demanded by them. But receipts disappointed expectation,, and it soon be came obvious that a much larger proportion of the means needed for the fiscal year 1562, than the principle adopted would allow, must be derived from.loans, When, therefore, Congress assembled in. regular ses sion on the first Monday of December, 1831, the Secretary directed attention to the necessity of increased.taxation. The responsibility was promptly assumed, by Congress and the internal revenue law was enacted, and such mo’ difleations of the tariff! act were made that amnle-pro vi sion for the desired objects was now supposed to have been certainly secured. It was not expected, however, that the influence of this legislation would, affect the re-- suits ol the then current year. Nor did it affoetthem, The total receipts from ordinary sources to the close of that year, June £0,1862, w«re insufficient for the pay ments expected to be made from, them The receipts were $51,^35-720.76 while the disbursements tor the-civil ser vice, for Pensions and Indians, and for interest, were $37,701 801.11; leaving only $14,2-3,919;65. for the War and Navy Departments, the expenditures of which in the last year of peace had been $27,922,917 2-1, and no thing at all for extraordinary expenditures or a sinking In his report at the December session. IS&3, the Secreta ry, considering, this deficiency and assuming the cor rectness of the estimate of $1(0,600,000 as the amount of receipts from internal dutieß, and taking doable the-ex pem es of the War and Navy Departments in the last year of peace as the amount likely to be annually re quired after the suppression of the reoellion, expressed the opinion that the probable receipts under tho legisla tion of the preceding session would meet ail ordinary expenditures for the fiscal year of 1863, and interest* and leave a laige surplus to be applied, fir tha preient, to the extraordinary disbursements of the war, or, tfier its close, to the reduction of debt. In that repor., the. e fore, and in his subsequent communications to the proper commits es, tbe Secretary suggested no increase of taxa tion, but confined his recommendations to .other mea sures for the improvement of the public credit, among which thofc relatix g to loans and to uniformity of cur rency held ihe foremost place. : ~, , . Congress gave effect to these recommendations by the loan act and the national banking act. but at the same time somewhat diminished tha expectations of income •by modifications of the internal revenue act. Notwithstanding this dim nation, however, and not withstanding the much larger diminution caused br the failure ol receipts expeoted from internal duties unaf fected by tbiß legislation, the Secretaryhasnowthe/ia tisfaction of being able to show that th e actual receipts of the last fiscal year did pay the,-whole interest, the whole amount of ordinary expenditures, estimated for the army and navy at double those of the last year of peace, and a portion of the extraordinary expenditures which, undtrthe circumstances, was equivalent to a payment in the sinking fund. Thus the total amount of receipts during the fiscal year lSG3was $124,443,313 29 ■White the expenditures were For the Civil Service, and foiJPensiona and • • Indians : $27,470,442 87 For interest. 24.729.846 61 And would have been for ordinary dis bursements of War and Mavy Depart ments, estimated at double those of the last year of peace 65.815.834 48 • -$108,040; 123 06 Leaving difference between receipts and ordinary.expenditures applicabte to ex -18,397,139 83 Had it been possible, therefore, to suppress rebellion and restore expenditures to a peace basis after oneyea? of war, and beforo the Ist of July 18b2, there would have been a balance on the Ist of July. Ices, of in ore than sixteen millions of dollars applicable to the reduc tion of debt. , - ■■ . . . So, assuming as correct the estimates of receipts and uis burttinsnts for tfce current year 1864, based on actual re ceipts and expenditures of one quarter, aou making tus total amount of receipts $l3l 563,600.35, and taking the dis bursements for the Civil Service. Pensions, and Indians to be $42,108,126. &3 fur interest, $59,165 136.38, and for the .ordinary expenses of the army and navy, as before tj bo double those of the last year of peace, 0r.553,845 S« - 48. and deducting the total of ? hose disbursements, $157,- 119,097 i‘J from the total of receipts, and theretvill remain an unexpended balance of $4,040,403 10. flad it been possible to suppress rebellion after two years of war, and before July, 1863, this sum would have been appli cable to the purpose of a sinking-fund. ; - So, also, assuming again as correct the general esti mates of receipts and exi>eaditares for the next fiscal year, 186 f, the total receipts for the year will bo $200.- £86.639.93; while the expenditures for the Rivil Service, and Pensions and Indians, will be $37,604,499.64; for in terest, $85,387,676.16; and for the army and navy ob serviDK tbe rule alveady stated, $56,846,814.48 making a total of $178,838,010.17, which sum\ if deducted from the total of receipts, will give a. remainder of $27,993,- 629 76. Should the rebellion be suppressed after thres venrs of war, and before the lirst of July. 1534, that re maludei will be applicable topayment of debt. These statements are subject to some moditicationsbe sides those which may result from errora of estimate?; but these cannot reduce, though they may Increase, the applicable balances, and therefore cannot affect unfavo rably any deductions from the flgares which have been aSateinontßilluatrato the great importan«|-of pro viding, beyond all contingency, for ordinary expend!- turns aud it terest on debt, and tor the largest possible amount of extraordinary expenditures,-by taxation. In proportion to tliei amount tha .neowarj* sums for ordinary demands will be the diminution of doW, tuo dimimuioa oj jmteKUt, and tb« topwvsrant oi credit. It is hardly too much—perhaps hardly enough— toeaythat every dollar raised for extraordinary ex penditures or reduction of debt is worth two in tho in creased value of national securities, and increased fa cilities for the negotiation of indispensable loans. These statements illustrate equally the importance of flu economical and vigorous proaecatlon of the war. No prudent man Will recommend economy at tho expense of efliciei cy. Such nominal economy is real extravagance. But efficiency is not promoted by profusion, or waste, andSleait of all, by misuse of public money or public property. Every dollar and every man are freely offer ed by a generous people; how 6acred the obligation that notone man should bo wasted, and noloue dollar mis applied. Nor is rashness. in war, vigor. But the vigilance that misses no opportunity, the energy that relaxes no effort, the skill that . vitalize* all re sources, and the perseverance that never grows weary— these make true vigor If by such vigor the rebellion can be suppressed, and the war ended before the Ist of July next, the country will be saved from the vast in crease of debt which must necessarily atteud its continu ance during another year, and the debt itself can at once be placed in a course of steady reduction. And when ever progressive payment shall begin, the value of na tional securities will rapidly rise, and reduction in rates of interest will gradually diminish, tho hardens of debt. While the Secretary thus earnestly urges that the largest possible proportion of expenditure d* provided •by. diiect contributions from the property and incomes of the people, he is aware that n still larger proportion must, as yet, be provided by loans. In the creation of debt, by negotiation of loans or otherwise, the Secretary has kept four objects steadily 1° \iew: (]) moderate interest? (2) general distribution; (3) lutur© controllability ? and (4) incidental utility. Towards tho accomplishment of the first object, the nearest approach that seems possible has been made. The earliest negotiations were at the highest rates of in* terests for it is a distinguishing characteristic of oar financial history in this rebellion that the public credit, which was atithe lowest ebb in the months which pre ceded its breaking out, has steadily improved in the midst of the terrible tria’s it has brought upon the coun try. Tbe first loans were negotiated at seven and thirty hundreaths per cent,; the next at seven; the next at six; more recently large sums have been obtained at five and four; and the whole of the debt which is repre sented by United States notes and fractional currency bears, of course, no interest, - The interest on the debt which exists'in tho form of treasury notes and certificates of indebtedness or of de posits, and is called temporary debt, is paid in United States notes; while the interest on debt which exists in the foim of bonds, and is called funded debt, is paid in coin—a diecrimtiatlon which is intended to bring the payments of coin interest withiutaoderate compass,and at the same time to offer special inducements to invest ments in bonds, in order to avoid a too rapid increase of circulating notes and consequent depreciation. The average rate of intereston the whole debt, without regard to the varying margin between coin and notes, was, on the firatjday of July. 1862, 4.3Bper centum; on the first day of January, 1853, 401 per centum; on the first day of July, 1563, 3.77 per centum; and on the first day of October, 1563. 3 95 per centum. it will not escape observation that the average rate is now increasing, and it is obvious that it must continue to increase with the increase of the proportion of the in terest-bearing to the non-interest bearing debt. And as the amount of the latter, consisting of United States notes and fractional currency, cannot be materially ■ acumen ted without evil consequences of the most serious character, the rate of interest mast increase with the debt, and approach continually the highest average. That mast be greater or less in proportion to the duration and cot t of the war. • The general distribution of the debt into the hands of the greatest possible number of holders has been the second object of the Secretary In its creation. This has been accomplished by the universal diffusion of United States noteß and fractionalcurrency, by the distribution of certificates among great numbers of contract creditors and temporary depositors, and by arrangements to popu larize the loans by giving to the people everywhere op portunities to subscribe for bonds These subscription arrangements have been especially useful and success ful. They have been adopted as yet with reference to /only two descriptions of uonds—the two commonly known as seven-thirties and five- twenties, t o named, fhe first, from tholr rates of interest, and the second from theirperiods of payment. The plan of distributingthe seven-thirties was that of employing a large number of agents in many places, and directing their'action from the Department.. It worked well for a time, but was soon found inadequate to tbe financial necessities of ihe Go reminent. For the distribution of the fi ve-twentie?, there fore,a different plan was adopted. After ascertaining by inquiry tbit they could not be disposed of to aapi ialistsin amounts sufficient for prom&t payment of the army and navy t snd for the satisfaction of the. just claims of public creditors generally, without serious lost, the Secretary determined to employ a general agent, under adequate bonds, and confide the whole work of distribution, except so far as it could be effected by the Treasurer, Assistant Treasurers, aud Designated Depositors, to him and to sub agents designated by him and responsible immediately to him Under this plan, and chiefly through the indefatigable efforts of the gene ral agent and his sub-agents, five twenty bonds to the amount of marly four hundred millions of dollars, in denominations of fifty, one hnndred, fi ?e hundred, and one thousand dollars, were distributed throughout She whole eountry not controlled by the rebellion, and among all classes of onr countrymen. The hisiory of the world may be searched, in vain for a parallel case of popular financial support to a national Government. 'Jhe Stcretary is unable to perceive in what batter or more effectual mode the important object of distribution be accomplished, and he proposes no departure from.it, except such as considerations of economy, har monized with efficiency, may suggeit. The object of future controllability has also had a pro minent place in the regards of tbe Secretary. Under the conditions which existed at the outbreak of the re . bellion, he acquiesced in the necassity which seemed to dictate the negotiation of b nds payable after twenty years; but he acquiesced with reluctance, and, as soon as permitted by circumstances, recommended the enact ment of Jaws authorizing the issue of bonds payable after shorter periods, as well as the creation of temporary debt in other forms. In harmouv with those viows Congress provided for the issue of ihe bonds known as the live-twenties; and--ai3o for the issue of treasury - notes payable three years from dace; for certihcuoj of indebtedness payable in.one year; and for temporary loans by deposits, reimbursable after ten days’ notice. At the last session Congress repealed some embarrassing restrictions of former acts, ana authorized the issna of bonds payable, after ton years, and of treasury notes payable at pleasure or three from dat*. These treasury notes were made legal tenders for face value or convertible, for amount and interest into Untied States notes. ' The Secretary availed himself of this legislation by placing with the people as large an amount as possible of live-twenty bonds, and byu6ing the other powers so as to put the whole debc, except the long loans first negoti-. ated, in such a shape that prompt advantage can be taken of'favorable circumstances to diminish the bur dens it Imposes oi industry. Whenever the constitu tional supremacy of the nation shall be re-established over all its parts, it w;ll be completely within the power of Congress and the Secretary to’fund the whole or any part of the temporary debt in bonds bearing a very mo derate interest, and redeemable at the pleasure of the tho Government, after very brief periods, o*. perhaps, at any time after their issue. Nothing further seems de sirable on the score of controllability . The final object o 1 the Secretary was to extract from tbeunavoidab.e evil of debt as much incidental benefit as possible. To this end, he desired authority to>recaiva temporary loans in the form of deposits, reimbursable after,a few days’ notice. This measure was retarded by many with something less than favor at first; bnt Congress, after full consideration, authorized the receipt of such depo sits, at an interest not exceeding five per cent., to the amount of twenty-five millions of dol ars; then raised the limit to fifty millions, and then to an hundred mil lions; and provided a reserve of fifty millions of United States notes to meet demands for reimburßerninis beyond other convenient means of satisfaction. It was not long before the: e deposits reached the highest limit, and, be fore the Aow could be well checked, somewhat exceeded it. The utility of tfia measure was very conspicuous on the recent occasion of great stringency in New York, when the Secretary was able to reimburse over fifty mil lions of these deposits during the last weeksbf the year; : by which action the pressure was sensibly alleviated, with the use of only a fifth of the reserve. In former reports the Secretary has stated his convic tions, and the grounds of them, respecting the necessity' and the utility of patting a large part of the debt in the form of United States notes, without interest, and adapt ed to circulation as money. These convictions remain unchanged,'and seem now to be shared by the people. For toeifiret timein our history has a real approach to a been made; and the benefits of it, thbugh still far from the best attainable condition, are felt by all. The circalationhas been distributed through out the country, and is everywhere acceptable- It is a gratification to know that a tribunal so distinguished by the learning and virtues of: its members as the Su preme Coutt of New York has given the sanction of its judgment to the constitutional validity of the law. So, too, real and great advantages are derived from the wide diffusion of the debt among tbepeople, through bu siness transactions, and through the exertions -of the officers of the Department and the agents for loans, al ready noticed. ... It is impossible to estimate the advantages to national unity and national strength secured by thiß distribution- Every holder of a note or bond, fromm five-cent frac tional note to a five-thousand-doHar bond, has a direct interest in the security of national institutions, and in thestability of national administration. And it is an other and no small advantage of the distribution, that the burdens of debt, always heaviest when loans are held by few, and especially.by foreigners, diminish ia propoitionas the receivers of interest become identified with the payers of taxes. • . . _• Another incidental good growing from the bitter r >ot of debt has been fully explained in observations hereto fore submitted on the national banking system. Ex cept through such a system, no sure way is seen to the complete and permanent establishment of a uniform cur rency; and a system of national banking, fair to all and secure for all, can only be safety and firmly established by making use of a portion of the national debt as secu rity for thenationnl currency. In these several ways majKeven such great evils as are brought upon ns by rtbellion be transmuted, by a wise alchemy, into various forms of utility. The Secretary has endeavored to use this alchemy, with what success the country will j ndge when time and trial shall have app'ied to hiß work their unfailing tests. additional loans sre repaired, and, aslegla latiTO now stands, several modes are open. The limits of deposits for temporary loan are fixed at one hundred millions of dollars.. The amount of Ahia deposit on the first day ol December had been reduced to $4-5.5(6,120.01, and payments of $10,000,030 had been made from the reserve. The additional payments will bj con fined within the narrowest possible limits, and can hardly exceed tweoty-ftye millions.' The reflow of de posits has already begun, and will probably soon exceed reimbursements, and so arrest payments from the re serve. The whole reflow beyond the amount of these pay ments will be available as part of the additional loan requiied, and may be stated, without much risk of mis take, at twenty-five millions of dollars. The Secretary perceives no solid reason for retaining the restriction on loans, in this form, to one hundred millions. It may, as be thinks, be usefnlly removed!. As the advantages of these deposits become better and more generally under stood, tbe loan iu- this form-will, doubtless, in the ab sence of restriction, be largely increased, and the possi bility of demands for reimbursements, bevond means to meet th»m, can be fully provided for by an increase of the existing proportion between deposits and reserve. Such an arrangement, the Secretary inclines to think, i would operate beneficially by increasing the amount of currency when unusual stringency shall require in crease, and reducingits amount when returning ease shall allowurednction. / , , Another portion of the additional loan required may be obtained through the- sale of the remainder of the bonds known as five-twenties. The amount of these bonds unsubscribed for on the first of December was $1 1,059,600. It willnotbe difficult to dispose of these at par, and it is possible that a small premium may be ob tained on apart. ■ ~ 4 , , In a former report, the Secretary placed the limit to which the loan in the form of certificates of indebtedness could be carried, at one hundred millions of dollars Experience has shown that it can be carried to one hun dred and fifty millions, and that Its natural limit is about that sum. On the first of December the amonnt of these certificates was $145,720,0C0. It would he unsafe, therefore, to rely on any substantial increase of loan in Tbe limit prescribed by law to the issue of United States notes has been reached, and the Secretary thinks it clearly inexpedient to increase the amount, when circulation exceeds the legitimate requirements for reel payments and exchanges, no addition to its volume will increase its value. On the contrary, such addiiion tends inevitably to-depreciation; and depreciation, if addition be continued, will find its only practicallinnt in the utter worthlessness of the augmented mass.. When Congress authorized the creation of debt, to a certain extent, in the form cf United States notes, and 1 impressed on these notes the qualities , of a circulating medium,, its action was justified by the disappearance of coin in consequence of the suspension of spasie pay ments ; by the necessity of providing a medium in which, taxes could be collected, loanß received, and payments made; and by the obvious expediency of providing that medium in the lorm of national issues instead of resort ing to the paper of banks. Under the circumstances, its action was wise and necessary; hut it was equally who and necessary to limit the extent of the issues by the necessity which demanded them. They were wanted to fill the vacuum caused by the disappearance of coin a.nd to eurply Ibe acditionai demands created by the in creased number and variety of money payments. Con- Kiess belitved thatfoiw hundred millions would suffice fi r these purposes, and, therefore, limited Issueßtothat 6 *The Secretary proposes no change of this limitation,. ai.d places no reliance, therefore, on any increase of re sources from increase of circulation. Additional loans in this mode would, indeed, almost certainly prove il'uEory; for diminished value could hardly fail to neu tralize increased amount. ' , fcnfficient circulation having been already provided, the Government must now borrow like any other em ployer of capital temporarily.requiring .more than in come will supply, and rely for the credit which will se cure advantageous loans upon good faith, industrial activity, accumulated thoughnot immediately available capital, amt satisfactory provision for punctual payment of accruing interest and ultimate reimbursement of principal. lt _ To subscriptions for the remniningfive-twentles and deposits lor temporary loan, therefore,must ba directed all reasonable expectation of means fOT ihe service.of the current year, except from negotiations uuder the act of Jastscesicn. Thosumstohe looked for from these two eonms have already been stated, and amount to $126,* OC9 6(0 Iftbisaggregiitebededacted frorn the amoimt lo be provided by loans for the last current year, already shown to be $052,226,539, will jemain tne sum of $2i6,1C6,&D9 to bo provided.by : negotiations under.the act of last session: and, under eome like act, must be provided in like manner, if the continuance of the war shall make it nece<s-»ry,_ the sam -of s64* 978.648 93, estimated as likely to be required from last tho loans supposed to he required for the fiscal years of 1E53 and 1864; and. of ihe amount required for the service of these two years to the first of December now current, one hundred'.and fifty millions in United States notes, and fifty millions by a ioan for two yesrs five per cent, treasury notes bfrve alrrady been provided under that a» tis so wall cniceiTPd and expressed that llttio other KtfllSttSftor th “Si« -of ISM Lnd JS6S will be paired then the application to those Years of Us loading pro visions.' It will doubtless be thought thia. i se»sioD, as last seseiou, to authorize tbe borrowing, in. a* me form, of three hundred millions ,or the current, and six hundred millions for the next, flsoal year. I?* r deed, the only modifications of the act of last session { - bvUptUtotfi.9 rsquiMUW&teor tas PHILADELPHIA, FRIDAY, DECEMBER 11, 1863. and coming year se*m to be: (1) the omission of all re ference to United States notes beyond the giving a simple authority to the Secretary to ascertain from time to time the amounts destroyed or lost, and to replace them by new issues; (2) the repeal-of the existing limitation of the deposit loan to one hundred millions of dollars, and the substitution of a provision for & reserve equal in amount to half the deposit; (3) the permission of the ne gotiation of loans redeemable absolutely at pleasure, or atpleasnre after a time fixed, not more remote than forty years: and (4) the omission, perhaps, of tha.clause taxing circulation and deposits, as being more appro priate to an internal revenue bill. It is hoped that tbe other provisions of the latt maybe retained in the new loan act. Under such legislation, the Secretary entertains littlo doubt of being able to obtain whatever funds will .be needed, through loans, at reasonable rates of interest, for bonds or treasury notes.* For a warrant of this confidence, however, he must not omit to Eay that he relies much on the support to be Riven to tbe public credit by the national banking sys tem, and by the nationalization of the currency. There is. as he thinks, no possibility of & permanently success ful administration of the finances, under circumstances involving the creation of large debts, unless loans can be effected in a medium of general and equal credit throußhoat tho country, and not liable to variation in. quantity or in value except under the operation of na tional legislation t>nd the general laws of trade. Only two kinds of currency fulfil these conditions: the first, a circulation of coin; the other, a circulation of notes of uniform'd ascription and value, issued by the Government, and either paid directly to Government creditors, or supplied to banking associations to be em ployed in general business. The circulation, now generally used in this country, except so far as it consists of bank notes, is of the latter sort* and no circulation, not immediately convertible into coin, can be bettor. It is an error to suppose that the increase of prices <is attributable wholly or in very large measure to this cir culation. Had it been possible to borrow coin enough, and fast enough, for the disbursements of the war, al most if not altogether the same effects on prices would havebeen wrought Such disbursements made in coin would Lave enriched fortunate contractors, stimulated lavtih expenditures, and so inflated prices in the same way and nearly to the same extent as when made in notes. Prices, too, would have risen from other causes. The withdrawal from mechanical and agricultural occu pations ef hundreds of thousands'of our best, strongest, and most active workers, in obedience to their country’s summons to the field, v> onidunder any system of curren cy, have increased the price of labor, and, by consequence, the price of tbe products of labor; whiLe the prices of many things would have risen, in part from, other causes, as for example, theprico of railroad bonds from vast increase of income, through payments for military transportation; and tbe price of cotton from deficient sujply. hluch the greater part of the rise of prices not account ed for by the causes just stated, as well as much the greater part of the difference between-notes and gold, is attributable to the large amount of bank notes jyet in circulation. Were thoee notes withdrawn irom use, it is believed that much of the now very considerable differ- ; ence between coin and the United States notes would dis appear. Certainly there ought to be no difference.in favor of coin, when it is remembered that Untied States bonds bearing six, or even five, per cent, coin interest aie intrinsically worth, unless the theory of-national hid faith or national insolvency is to be admitted, more than their amount in coin; and yet snch bonds can now be bad for their amount in Untied States notes. &or can a condition of affairs m which excessive prices prevail, or national notes command less than par in coin, be regarded as of permanent duration. While it lasts, it . must be borne'with patience, and made tolerable by eco nomy. Ho useful remedy will be found in extravagant increase of salaries and disbursements, but. an aggrava-: tion rather of the evil. All proper measures should, be adopted to hasten the return to the normal- condition of prices and business; the patriotism and intelligence of the people must be relied on for the rest The Secretary has heretofore expressed the opinion that whatever may be the true degree in which the cur rency of the country is affected by a bank-note circula tion, issued without national sanction and by corpora tions independent of national authority, and not receiva ble for-national dues, it cannot be questioned that in some similar degree, • the negotiation of national loans must be prejudiced,' and their value to the national finances diminished. This opinion is confirmed by obser vation and experience. Impelled, therefore, by a profound sense of the present necessity of a national currency to the successful prose cution of the war against rebellion, and of its utility at all times.in protecting labor, cheapening exchanges, facilitating travel, and increasing the safety of all busi ness transactions; and at the same time unwilling to urge even salutary and necessary reforms in such a way as needlessly to disturb existing conditions lor impair the value of existing investments of capital, the Secre tary recommended, in two successive reports, the autho rization of national banking associations, to which the capital of the corporations now issuing notes for circula tion might be transferred, with advantage to ths parties in interest as. well as to the general public. The sanction of Congress was-given to these views at the last session: and the simple assurance thus given that, henceforth, the country is to have a national cur rency. secured by a pledge of national bonds, and the belief that this currency will, at no distant day, take ihe place of the heterogeneous corporate currency which has hitherto filled the channels of circulation,- at once in spired faith in the securities of the Government, and more than any other one cause enabled the Secretary to "provide for ihe prompt payment of the soldiers and the public creditors If tbe policy thus indicated shall be fairly and judi ciously pursued* and proper measures adopted to induce the convert ion, at the earliest practicable period, of the bank corporations of the States into national thanking aseociat ons, and of the corporate circulaiioninto na-; tional currency, the Secretary believes, and, as he thinks, not without good grounds, that all the money nfeded for prompt payment of troop 3, and for the most vigorous prosecution of the war, can be obtained by loans on reasonable terms; while all interest on debt, and all ordinary expenditures, and a considerable'part alto of the' extraordinary expenditures .caused by this war, will ba met by the ordinary resources. Nor does he doubt that, through wi«e.leiislation, sustained by in telligent popular will, and supported by prudence and energy in ciflil and military administration, national cuirency canbeso approximated in recognized value to coin that a resumpuon of payments in specie can be brought about much sooner than even sangaino persons now permit themselves to hops. . The Secretary has already referred in general terms to the reports of the heads tf the various bureaus and b) anches of administration in his Department A pecu liar interest is felt at this time in their operations, and especially in the operation of those moat recently brought into existence The Comptroller of the Currency reports the organiza tion under the national banking act, prior to the 20ch of November, of one hundred and thirty-four sssociations; all which,'upon the suggestion of the Secretary, have adopted the name of Naiioual Banks, distinguished by order of organization and by locality. These banking associations bavedieen formed in seventeen States, and the District of Columbia, and have an aggregate capital, of s2b‘,OS3,fCo- The great care and labar required for ihe preparation of suitable notes for the new national cur rency hag delayed its issue beyond expectation j but the printing is now begun, and the severa* associations will be supplied with the amounts to which they arereapec tively entitled within a few weeks. Besides the asso ciations reported as actually organized, there are many others in process of organization. There is hardly a State cot controlled t y the rebellion, and'hardly a con siderable city, in which a national banking association has not been organized, or is not being organized. Sven New Orleans is not an exception to this statement. Thus the great work of introducing a permanent na tional currency has been entered upon in a spirit and with an energy which promise perfect success. The Secretary thinks he risks nothing in saying that, within the present 5 ear, the benefits of the system will have so Reproved themselves to the sense and patriotism of the people, that it will be beyond the reach;of successful ascault. ~ „ , . The Comptroller has indicated some amendments to ihe law which the Secretary concuts]with, him in regard ing as important to its success. As among the most es semialof these, the Secretary asks the special attention of Congress to the proposition for a uniform rate of inte rest, and the repeal of the section which connects the issues of national currency in. any degree with State banks. The Secretary also recommends, aslikelytobe useful, a provision to he made bylaw for the deposit with national banks, and also with the Treasurer and Assisiant Treasmers, at such rates of interest and for such periods of time as the Secretary may prescribe, of moneye paid into or invested under the orde s of j udicial courts. It is not impossible that in this way many mil lions would he placed in the treasury at moderate rates of interest, ; . The Secretary has already referred to the recommenda tion of the Commissioner of Internal Revenue, in favor of Increased duties. Be cannot add anything to the general considerations ho has already urged in favor of augmenting revenue by these methods. H may be use ful, however, to invite special attention to some con siderations which enforce the recommendation of a duty of two and two-fifths per cent, a year on corporate note circulation. The proposition contemplates a duty of one fifth of one per cent, per m >nth on circulation: and the Secretary suggests, in addition, one twenty-fifth of one percent, on deposits in each month, making twelve twenty-fifths a year. Under the existing law the duty on circulation is one percent a year on a certain proportion; two per cent, on amoants exceeding that proportion, and one fourth of one per cent, on deposits. The small addition proposed will not be regarded as unreasonable or one rous. when it is considered that ail corporate circulation is in fact a loan by the people to the banks cost, except that of preparation, and without interest, except the duties imposed on it. The whole question then re vives itseli into this: Is the duty proposed, added to the Slate taxation, and the cost of preparation, more than equivftleDt to a fair interest for the loan ? If not, smeJy it should be paid withoui’demur as a leasoaa ble contribution to the common welfare. The duty pro posed on deposits is much lighter for obvious reasons. its whole amount is lees than one half of one per cant, per annum; and being in the natnre of a tax on profit?, rather than on property, will distribute itself among all who partake of the benehtg of the deposits, and press hardly on none. . Itisproposedto make the duty payable in small percent-, ages, because it will be thus distributed over the business ofibeyear; and, because, by requiring monthly returns of circulation and deposits with reference to the duties, in formation will be regularly obtained in respect to the amount of circulation of all descriptions in the whole -country the publication of which will be an important benefit to all men of business, as well as a valuable guide to financial legislation and administration. monthly returns are now required of many of the na tional banking associations, and should be required of all; and from them, as well as from the banks not organ ized under national legislation, should be required a fair con-ributlon to the general burdens of the oeopte. The Secretary refers to Congress the question, whether the duty on national currency, and the deposits of na tional banking associations, shall correspond with the duties on other circulation and deposits. He thinks that for the present, at least, some discrimination in. favor of the.national associations may be properly admitted in consideration of the indispensable importance of a na tional currency, not adapted, only. Hire United States notes, to temporary- emergencies,. but. permanent in its very nature, and adequate to all demands of business, ai d capable, at no distant period, of being made equal to and convertible into coin, and therefore its real repre sentative and equivalent. The operations of the Mint have been of less import ance than usual during the last year. The amount of coinage was increased over that of last year at San Francisco alone. The value of the bullion received $24. 824,101 31; in gold $23,149,495 41; and in silver $1,67'4,605.90; from the total of which, must be de ducted the bars made at one branch, and deposited for coinage at another, making the actual amount deposited $23,701,837.31. Thecoinageof theyearwass24 688,477.12; of-which $20,695,552 was gold coin; $1,919,877.90 gold baTs; $1,174,092,80 silver coin; -$390,204 42 silver bars; and $478,450 cents. Of this coinage 'sl-181,497*37 in 49 108.402 pieces was effected at Philadelphia; $18,551,- 59S.eSin 2,872,173 pieces at San Francisco,.and $2,137,- 642.82 in 3.404 gold and silver bars at New York. - The branch mint at Denver has been organized and pnt in operation during the year, but its operations are con fined, for the present, to melting* refining, assaying - , and ttamping bullion. „ , A report has been made on a sice for a mint in Nevada, and measures will be taken for its establishment as soon as possible. ' The Secretary renews the recommendation of prece ding i eporta in relation to the universal- measure of com m*-Tcial values by an International decimal coinage. The operations of ihe treasury proper, have reached unprecedented magnitude. These are conducted under the direction of the secretary, by the treasurer, the as sistant treasurers, and the-designated' depositaries, by whom moneys which come into or go oat of the National Treasury are received and - disbursed. As receipts and payments have increased in number and amount, and aseumed new forms, the labors and responsibilities of these officers have taken vaster proportions of magnitude aid importance. The general operations of the year are seen in the statements already made of Receipts and Ex penditures, tut no general statement can convey an ade quate idea’ of then - variety, extent, and perplexity. The labor, and car« , and anxiety incident to the borrow ing, receiving, and paying of the sumsiecesiary to meet the* debt becoming due during the year; or, in other words, the making and applying of the loans necessary to the renewing of maturing loans, make little show in the report, and yet embrace transactions, often complex, and necessarily multitudinous, which reached, daring the year, an aggregate of more than a hundred and eiihty-one millions of dollar*. The responsibility aad labor of the whole! money operations of the Treasury may be inferred from this statement concerning a com paratively small part. . ' . • , . The receipts at the office of the Treasurer in Washing ton during the last fiscal year were $1,348,029,543.93, aud the disbursements $1 334,615,175 67. At the office of the Assittant Treasurer in New Fork the receipts were 63, and the disbursements $622,542 627.92. At the t files of the Assistant Treasurer in Boston the receipts were $118,900.(00, and the disbursementssll6,7so,ooo At tl-e cflice of the Assistant Treasurer in Philadelphia the Yecßiut* were $ll3 245.031.27, and the disbursements 'ihe receipts and disbursements at the offices of the Assistant Treasurers at San Francisco and Bt. Louis, ■ and of the Designated Depositaries, especially at Balti iru're, Cincinnati? and Louisville have beau lai’ge be yond precedent, imposing labors and responsibi.itea coueFpondiDßly large. The secretary cannot express too strongly his satisfaction with the manner in which theta officers have generally performed their onerous and mnAifoim duties. • • t . . . ‘J be act of Congress relating to captured and abandoned, property, approved March i 2. 1863. and the proclama tion of the President of the 3lstof the same month, de volved upon the Secretary tho-duty of regulating com mercial intercourse* in conformity with the acta of- July 13 'B6l and May 20, 1562, aDd under license of the Pre sident. between the States Aaq'ared to .he.in : insurrec tion and the other States of the Union; or, touso the de - scription commonly employed, between the rebel aud " the loyal States. This duty'has been found exceedingly Biducuß and perplexing. - - ■ • - Prii r to the act and proclamation of/March» the Secre tary bad attempted soma restrictive regulations with, the view of preventing supplies to rebels rbut the state of the law, and the terms.of tho original prcnlamation, made it difficult to act'with much efficiency or useful ut:*F, and the of ihe trade was assumed al most exclusively toy the military authorities, Immedi ately, however, on' the publication of the proclamation of March; the Secretary issued regulations of. hade, frsmed on thq best information and with the best con-, sideratioa ho was capable of giving them; and earnest and pers6veiln g endeavors were made to bring the whole subject under lh.ehr coi.trol and under proper supervi sion. Experience revealed defects in the regulation", and they were revised, amended, and republished in ; The subject is too vast and complicated, the appetite i tot mil too eawt a sA wetlog, aa<lUw tojatistwa ol all restraint, however salutary or del 'essary, is too great'to allow any hope of avoiding man y and some times just com pi iota. Bat the has kept steadily, in view the plain duty prescribed by ?' preventing any supplies from being carried inti l , districts controlled by rebels; the equally plain duty t'i allow* ing and securing, so far aB practicable, }u teicouree with rebels, supplies of necessaries to the in habitants of districts in which the rebellion has ’ ireem suppressed; and the clear policy-of supporting And facilitating the efforts of loyal citizens to obt.'tD» wherever obiainable, without going beyond .'he lines, of national military occupation, cotton, snga'r, tobacco, tar, rosin, and such other products.of the rebe'l Slates, for the benefit of loyal commerce. To this end be bas'selected persons of known intelligence and pro bity as supervising special agents, and through them others of libo character as assistants and local special aiente, to exercise the necessary powerover intercourse, and has imposed, with the sanction of the President, acd as conditions of license, such fees and contributions on th e trade permitted as were thought necessary to de fray the cost of supervision, and add something to the means for the prosecution of the war. Tj&e'agents of all grades have generally been diligent and faithful in the discharge of their several duties. Af*w of subordinate fti&de have proved incompetent or unworthy," and have )een dismissed; and the same measure will be promptly applied to all, of whatever grade, to whom pnDlic duty may require its application. ' By an order of the Secretary of War Is Basil on tho last of October last, the .care of anaadoned plantations and oimr real estate has been devolved upou.thesapervieing dgfnts,.who ; baye .been Instructed to accept the charge and use their best endeavors in its execution. The Charge Of RDftndOhed lands and plantations necessarily carries with it, to some extent, ihe charge of freedmen. - J ,be w'buie charge is at present under military sanction only; for the acts-of Congress concerning abandoned property, relate exclusively to personalty. The order is of too recent date to allow receipts of reports concerning its practical effects. It is only very clear that some sys tem should be adopted and steadily pursued which will best Berve the great objects of restoring tranquility, order- and prosperity to the States and parts of States in wh Ich the n ation al authority is or may be re • established, and at the6ame time securing the righiis and welfare ofr the loyal and enfranchised people. Tb these result.* the labors of the Commissioners of Direct Taxes, as well as judicial action, under the acts relating to confiscation, must largely contribute. Already, tinder the sales for direct taxes in South Carolina, considerable prooart es divided imp small tracts have passed .into loyal posses sion, and are cultivated successfully by the labor of frtedmen. Iffthis connection tbe Secretaryasks permis sion. to repeat a sugßestion heretofore made, that the proceeds ot cotton-raised by the freedmen before emanci pation, and collected from those properties, should bo applied in some judicious way for’the benefit of those who raised It. The whole subject will doubtless com m*Dd the attentive consideration ofrCongress. The important and responsible duty of securing and keeping, undor the dirtetion of the President and War Department, commutation money from drafted citizens, hߣ been assumed by the collectors of internal revenue, at tbe instance of tbe Secretary of. War. In the judg mentof the Secretary of the Treasury, this money should be paid directly into the Treasury, and drawn out upon requisitions for Ihe purposes to which it is appropriated bv CoEgiess. The Secretary.of War thought, however, that the other mode of collection--and disbursement would be less burdei some to drafted men and more con venient for the payment of substitutes His.wlßh.es weie promptly complied with, and the whole matter is i ow submitted to Congress > Under a resolution, of. the Senate, adopted on the 12th of March last, the Secretary has taken measures forthe preparation erthe fullest etalement possible, with ex isting means of information, of the foreign and domestic commerce of the United S:ates; including that of the Pacific coast. The learning and ability of the gentle men; employed in. this work warrant the expectation that a very instinctive accounftwlll be obtained of the condition and prospects of our foreign commerce from and to the Atlantic and Pacific coasts, as well as over land, northward and southward, and of our internal and inter-State commerce, including the trade between loyal and rebel States, and between the bread producing and gold and silver producing districts of our country. The materials for a proper Statement of this internal commerce must be sought in reports of State commis sioners of statistics, of boards of trade, of railroad and canal companies, and occasional or periodical publica tions relating to trade and business. 2 his is a depart ment of statistics comparatively now and difficult of ex ploration, but no paias will be spared in the search, in the hope of being able to submit to Congress a result of no insignificant value to the business community and to those charged with, the duties of legislation and ad ministration, which will itself suggest the action ne cessary to enlarge and protect the important interests involved. ” Under the sanction of the nets relating to the-subject, the Secretary has taken measures for preparing and printing fractional currency bonds and notes in the Treasury Department, with a degree of success which already assures decided economical advantages, and The Secretary hfcs alreaay inviti d attention to the re ports of the-Register, the Comptrollers, and the several Auditors, Tbe Report on Commerce and Navigation for the fiscal vear 1562, prepared in the Register s office, has been greatly delayed by causes explained in his report. The same Report for the fiscal year 1363 is also nearly ready, and will be sent to Congress within the.next month. Its important information will be founts much better classi fied and arranged, and much more clearly stated 1 , and therefore much more acceptable for use than heretofore. The Secretary suggests that it will promote the interests of commerce and expedite future reports if provision be made for the raontnly, or at least semi-annual, publica tion of the returns of imports and exports: ~ The suggestion of the Second Comptroller that the salaries insthe offices of the Comptrollers should be higher than those inthe Auditors, and that-promotion should take place from the latter to the former, is re spectfully commended to legislative consideration. If sanctioned by law, it will doubtless promote accuracy and promptitude in the ravision of accounts. , The vast expenditures of the war, 1 in l life and treasure, have devolved Unexpected labors on -the/Auditora’ Bmeaus, and-especially those or the Secohd and Third Auditors; and the difficulties, attendant on the organi zation of a proper force foirihesettlament of theeuddenly accumulated accounts, have-caused some delays, which the most strenuous efforts have been made, ia vain, to av. id, It is hoped, however, that the accumulatiou' will now be arrested and henceforth steadily reducad. The Secretary respectfully suggests that .some' provision he made by which officers of the Department may be en able d to attend tbe armies and collect -information, and • especially in regard to the wounded, the missing, and 1 the killed, which will facilitate the promptest settlement of the claims made in beha.f of- destitute families,- and widows and orphans The Report of the Solicitor will exhibit the action of that officer in the investigation of frauds perpetrated by certain persons formerly employed in the New York custom house. 'The -legislation; of last session, the prompt dismissal of the guilty parlies yet remaining ia office, and the*measures of prevention devised-and adopted, will, it is believed, sufficiently protect the Go •cosnmfnt against the repetition Of these or the commjb sion of like frauds. .- The Secretary renews the recommendation, submitted in his last report, of the purchase of the Merchants’ Ex change in New York, now occupied under leas 9 as a custom house. The operations of the Coast Survey have been -distiu ' guished.by even more than usuaL activity. On the northern coast the work has been vigorouslyjprosecufced, notwithstanding the existence of the war; while,ia com pliance with application* from military and naval com manders, parties have been detailed for work on the coast, on the rivers of the interior, and, in deed, wherever their services conld be made available. From these labors, of an importance cordially acknow ledged by the officers to whom they have been rendered, the value of the survey, and the- merits of those by whom it is conducted, receive fresh illustration. During last summer a number of rebels ran into Port-* land harbor in the night and revenue cutter lying there, its commanding officer being sick ou shore, and a portion of the crew absent on leave. They suc ceeded in leaving the harbor-unobserved: but early in the morning the Collector of the Port, hearing of the af fair. tcokinstant measuresforpursuifcby chartering two patsenger steamers arming them with whatever could be most promptly obtained, and providing the necessary force of volunteers, citizens and s oldieis. In a lew hours the rebels had been compelled to abandon their prize, after setting her on fire, and being themselves taken pri soners. The vaiae of this captare can best be estimated by tbe damage inflicted on commerce by the same rebels intheTacony. a vessel every way inferior to the one they bad seized. The Secretary deeply regret? tnafc the Collector no longer livts to read this acknowledgment of his prompt, energetic, andjudteious action. The Report of tbe Board of Supervising Inspectors of steam vessels, to whose supervision Congress has wisely committed tbe employment of steam in water transpor tation, is herewith transmitted. The importance of its action may be inferred from , the simple statement that there have been inspected during the past year 9J3 steam vessels, valued at $10,135.057,C00, with au aggre gate tonnage of 405,000 tons, which have carried, for shorter or longer distances, 6.420,000 passengers. The becretary invites attention to the suggestion of a safe ■system of signals, by sounds and lignts, adapted to the use of steam vessels, whether in the merchant or na tional service; and which may, perhaps, be extended so as to embrace sailing vessels'also. Such signals, under stood by all, might avert many disasters and be th 9 means of many benefits, without at all interfering with any peculiar system reqaired for special communication between vessels of the navy. The Secretary renews the recommendation of his last report, that authority be given 10 sell the buildings erected, but not needed or used, for hospitals, and also such other buildings aj are unoccupied or not-required for the objects of their intended purposes. The operations under the charge of the Light-house Bureau have been sati-sfac.orily prosecuted during the year. The Gape Charles light-nouse, at the entrance of Chesapeake bay, was destroyed: by guerillas in August last. Its reconstruction is of great importance to com merce, and should be immediately authorized and pro vided for. ; ; 'J.... , The light-house system'of the United • States, unlike those of-commercial nations generally, is maintained wholly at onr own cost. - The Secretary suggests the ex pediency of providing for its support and enlargement rererfter, so far as treaty stipulations will permit, by a small duty on tonnage for llght-houte purposes. The benefits of the system accrue to -foreign as well as to American commerce, and its burdens should be appor tioned accordingly* In this reoort, the Secretary necessarily omits rniny things; but he cannot omit the expression of his cordial appreciation of the zeal, intelligence, and fidelity which the officers of the Department generally have brought to the ditchaige of their several duties. To their labors he sensibly feels and gratefully acknowledges that he is in debted, in great part, for the measure of success which has attended his administration. Still less could he excuse himself should he omit to say haw distinctly he recognizes, on looking back through, the year, the tokens of that Divine Providence which has led our country through perils of every kind. How steadily and grandly, under that benignant care, the Great Republic has moved on. -How confidently may we trust its future, to the same sacred guidance. * 5. P. CHASE, Secretary of the Treasury. Treasury Department, Dec. 10, 1863. KEPORT OF: THE; SECEETAKY. OF TJHE INaRERIOR. DEPARTMENT OF THE INTERIOR, : ’Washington, December 5,1863. Sib: I have the honor to inform you-that manuscript conies of the: several reports, and accompanying do cuments, from the bureau and other subordinate officers of this Department , for the current which it has hitherto been customary to communicate to the two houses of Congress with the annuai message, have been plTiced in the hauds'of the Superintendent of the Pablic Printing, in obedience to dhe requirements of the joint resolution * ‘ to expedite-the - printing of the President’s: message and accompanying- documents,” approved the third of March, and-sixty-three. For information, in detail, as. to the operations of the public land system, reference is made and attention spe cially invited to the comprehensive and able report of the Commissioner of the General Land OfiSce. It will be seen from it that the* quantity; of land disposed of during the last fiscal year, for cash,’by the location of bounty land . warrants, as swamp and overflowed land, for railroad purposes, and-under, the homestead law, wa52.966.695. 43 acres, as against 1,377;922 acres disposed of during the previous fiscal year, and during the-first quarter of the present fiscal year 874.850.66: acres, making the entire quantity thus disposed of during the period named 3,841,£49.C9 ; acre5. 7 he increase arises chiefly from the operation of the homestead law, under which alone 1,456,614.96 scres.were taken up since the Ist of January,. 18 3. when it took effect. ’ , The revenue derived from the sale of the public lando during the last fiscal yearamounted to $136,077.95, being an increasuof $11,029.65 over the previous fiscal year. During the quarter ending 80th September laet the sales amounted to $90,090.65 which ie- $77,60.59 more than was realized during the quarter ending September 30,1861 The rapid increase now observable ia the sales of the public lands affords additional evidence of the entire confidence ofrthe people in the stability of the Government, and thabthe in dustrial resou ces of the nation have not been material ly diminished, .'notwithstanding the immense armies it has placed in the field. - No subject committed to the management of this De •panment is of greater importance tianthatof the public lands, nor has any been more prolific of legislation. Congress, at an early period, recognized the expediency and importance of the speedy settlement of tlm pnbho domains and of a liberal policy towards the actual set tler. The prudence and wisdom of the syatem thus early inaugurated, and which has finally culminated in the enactment of the homestead law, are attested.by the vast extent of fertile country which, has been re claimed and formed into now populous and flonrishine States, which contribute of the superabundance of tbeiy agricultural and mineral productions to the necessities of tbeeatlier settled portions of the country and to £e reisana-ions. " . „ ; , „ Tr.e progress being made in the of a railway to unite still morec l osely the States ontho-At -1 attic to those t .ou the Pacific will sowi attract settle ments aloQglts entire route, and'tbe Commissioaer of the General Land Office, with wise forecast, has. with tbo approbation of the Department, sljghtly increased ilie usual i uxveying estimates, in order to meet ihe exi gencies which will thus be created. . . Jn order to obtain the benefits of the act of May 20,.. 1562, 4 to secure homesteads to actual settlors ontho public domain. ” cerlain preliminary acta aro required to be performed before the register or receiver for the district of lands in which the sottlement be made b 7 the party applyina-tA 33ersc». Thla re quirement of the Jaw is thongUi to operato invidiously towards persons who are engaged in the* military and naval service of the Uniied States, and, >to remedy the evil, it is respectfully suggested that jhe law- might, with propriety, be so far modified as to permit the wife or other proper of a person so employed in the public service to take the preliminary -steps for the legal inception of.hls claim : I also concur in the opinion expressefiibythe Commleeioner of Public- Lands, tbat ifc is expedient, and proper ta requireper- Bons claiming the benefits of tlye lakt to nay the full commissions of the sagUter and receiver at the time tho entry is made, instead of deferring the payment of - ’ one half thereof until iihe final issue oftlie certificate, at tho end of five years. AMhellme of the discovery of the great mineral wealth of portions of public domain-the nation was In the enjt yrif nt of domestic tranquility and unrivalled pros perity, and-could well afford to throw open her rich .mines of tie precious metals to the unrosUioted enter prise of tto world;.hut having now been forced into a war for ihd preservation of our national existence, as an. in expense as in magnitude, the question Whether we can, in justice to other branches ofmdugvry uad exempt U 49 of individual revenue from Ub equitable share of the pub lic burden, becomes of much importance. A small tax upon tbe net profile of the gold mines of the United btates would largely increase the means of the treasury; sndftftiio mod reason stems to exist why the n»tion should not, in its hour of need, derive some direct assis* lance from its extensive fi el d b of gold and silver mines, I .earnestly press the consideration of the subject with a view to that end. Jl’he attention of Congress la also called to thenecessity of providing br law for the appointment of a surveyor general, and the establishment of a district land office, m the Territory of Idaho. In view of the disturbing canoes that have existed, our relatione With the various radian tribes are as favorable as could reasonably be expected. The experience of the past few years, however, clearly iemonelratos the ne cessity of important cba'ngos in tlie’policy hitherto pur- towards them ' while the regions of country occupied by the laxtians rc-majned uninhabited by We whites, tba plan of setting apart separate reservations for different bandß of the 1 fie.me tube, or foreman tribes possessing similar habits ana customs,, and prlvileßed roam over common hunt ing grounds in*queat of the means of subsistence, as in Michigan, Wisconsin; Minnesota, Kansas,and Nebraska, Bennea wise and to promise suecets; but aB tbe country becomes settled, their dependonco upon game and the spontaneous production* of the easih becomes more and more, precarious, whtiS'tbe necessity for their keeping within'tbd" limits of thoir reservations increases: The Indians are'tbns left without i heir Rconstomedvesocrces, and in the msdst of a population with whose customs-and arts of life they.’ are wholly unfamiliar. They conse quently become'discouraged, and, looking splelytO their fccaniy ammitits horn the. Government, or to bagging and pilfering forthe necessaries of life; fail an easy prey to the sharpers and whisky traders who gather around' their reeervations-for the purpose ' of’obtaining their moufrys. The smaller tho reservation, the greater are the facilities for the oxercke of this pernicious influence, and hence tbe neceesityof concentrating scattered bands and tbeswaller tribes of similar habits, Jangnag*,aud cus toms, into as large communities as possible, and their loca tion upon themore remote portions of the public domain.- They will soon become extinct unless they acquire the aits<-of civilized life, and to this end it is indispensably necessary to place them beyond the reach of any influ ence cave that of their agents, teachers, and assistants. The vatt emigration to the uewlv discovered gold-bear ing regions of the interior has brought us into more im mediate contact with large and powerful tribes, with whom no treaties other than of amity have yet been negotiated, and all the energies .whiofr the Department can possibly exert in that direction will scarcely be ade quate to the pressing demands thlrt will be made upon it during tbe next few ytars by the exigencies of the In dian service in those regions. Immediate step's 6hould be taken to prevent collision between them and our own people, to provide suitable locations-for the Indians, and to induce them to settle upon, them acd engage in the cultivation of the soil, and the rearing of domestic animals, and In the meantime to fnfnish them such sup plies as may be absolutely necessary to prevent starva tion. Tbe number of Indians under the direct supervi sion of the Department is thus rapidly becoming larger than at any former period, and the wisdom of antici pating this increased demand upon its resources by a corresponding increase in the appropriations for the In dian service, whether we are to be guided by the prin ciples of justice and humanitj', or economy, must be manifest io all. Particular attention is also invited to the condition of Indian affairs in California. That State'has'hitherto been divided into two districts—the Northern and the Southern—each under the charge of a saperintending agen;, There is no good reason lor continuing thig ar rangement, and on the score of economy alone it ought to be abolished and our Indian relations throughout the Stale placed under the control of one superintendent. The good of the service and the fature welfare of the Indians also imperatively demand the establishment of two reservations in- the, northern part of the Stated-one near the coast, and the other in the interior—of sufficient extent for the accommodation of all the Indians in what is now designated as tbe Northern district, aod at least one suitable reservation for those in the southern portion of the State. The necessity for these different reservations arises from the great dissimilarity that exists in the habiisand'customs of the several, tribes for whom they are intended. The hostility of the powerfal tribes of the Apaches and ; Navajoes, mainly located in New Mexico and Arizona, is such, that for the present their management must fee left chiefly to the military branch of tbe Government; but measures should be promptly taken for the establish ment of writable reservations for the other Indians in those Territories, and for those now in hostility to the United States,- whenever th*y shall have been properly eubdned. The unforturate result c.f the effort made last spring to return the re ugee Cberokees to their homes has largely added to the number of refugees, and greatly increased the expense of then’ subsistence. This, together with the advance in ihe prices of clothing and provisions, has so augmented the expeu&eof providing forthem’as to ex bausi the funds set apart for that purpose, -and renders a further appropriation necessary. It is doubtful whether the supplies needed could, even now.be forwarded in time toprevent much suffering, and hence the importance of as early acfic-n by Congress in the premises- as maybe practicable. - The able reportof the Commissioner of Indian Affairs willbe found to be replete with interesting facts, and judicious suggestions on the subjects to which it relates. The number of Revolutionary soldiers borne upon the penfion roils had dwindled down to eighteen on the 30th of June last, of whom only ten had made application for their stipends on the 4th of March., Thenumberof widows of Eevolutionaij’ soldiers on the rolls, at tbe same period, was 1,573. The whole number of army in valid pensioners on ; the rolls the 30th. of .Tune was 7,245, most of whom were pensioned on : account-of wounds received or disease contracted in the service during the present war. The widows, orphans, and de pendent mothers of 3‘673 deceased soldiers of the present war were inscribed upon the rolls during the last fiscal year, making the whoie number of this class on the rolls at the close of the year. 4 Bio. The number of navy invalids on - the rolls at the close of the year was 541, and the number of widows, orphans, and dependent mothers of deceased officers and seamen of the navy, The whole numerof army pensioners added to the rolls da 1 lug the last fiscal year was 7.581, and of the navy,*3iB. Ihe number of armypeurioners,. of all classes, on the rolls on the 30th June las*, was 13,659; and of the navy, 1,132, The payment of the former requires the sum. of $1 227,041 SS, and the latter, $144, t7l 61 per annum. The remittances to the agents for paying pausio as have been so regulated aceordisg to law *•* as to prevent an undue accumulation of balances in their hands. ” Duringthe year 602 bounty land warrants have been issued, calling, iirthe aggregate, for 94;250 acres of laud. It appears from the Commissioner’s report that the whole amount of motey expended by the Government for pensions to the close of the la sfc fiscal year was $91.’893.- 660. fc7, and that the quantity of land granted for military and naval services was 65,896,142 acre?, which, at $1.25 per acre, would amount to $82,370,177.50. ’ Congress at ihe last session provided for an increase of the clerical force of the Pension Office, and I am happy in being able to say that it lias enabled the Commis sioner to dispose of-the greatly.increased amount of business thrown upon it with satisfactory promptitude. During the first quarter of the present fiscal year 7.162 claims were admitted,- and a- much larger number examined and suspended for farther.evidence. . The Comiuiisioner estimates the whole number of claims that will be admitted' during the present fiscal year at about 30,009. • The anuointmsnt of surgeons: as authorized by- Ihe act of July 14, ISO 2, to make the biennial examinations of pensioners, and to examine applicants for invalid pen sions, has been attended with marked advahtage-and saving to the Government. For the information of the public and those more immediately interested, the Com missioner has embraced in his report th e names of the Burgeons thus appointed in the several States, with their pcsi office address. The act of 3d March, 1859, requiring the biennial exa mination of invalid pensioners, prescribes that the exa- - minacious shall be made by two surgeons or physicians. The Commissioner is of the opinion, in which I.concar, that the examinations will be as satisfactorily made by a single surgeon, appointed by the office, and with less inconvenience to the parties interested, and a modification of the law in this respect is therefore recom mended. The increase of the navy pension fund from the sale of prizes ambunte, at the present time, to probably'one and ; a half million of dollars. . ; \ The old laws in relation to the navy pension fund seem ! ] to authorize and require the Investment of this money; \ 1 but as the question is not entirely free from doubt, I re- ! < commend the passage of a law authorizing the Depart- , 5 ment to invest the amount, which has been and may j 1 hereafter be derived from the sale of prizes, in Govern- ■ 1 ment bonds,'and p.puly the interest thereon to the pay- ' 1 ment of navy pensions, or that' the Secretary of the [ •= Treasury be authorized by law to’credit this fund with < 1 the interest which would semi-annually accrue thereon, t 1 if so invested. . 1 A decision has been given by the Department in a cas9.i arising under the act of July 14, 1552, and as it will fur- < 1 nish a rule of action for the Pension bureau, in con- I 1 riant y recurring cases of a like character, I beg leave to 1 ] refer to it specially s < The second, third, and fourth sections of that act make s provision for the widow, children, dependent mother, i ] or orphan siiters, as the case may be, of any officer or j < othtr person named in the first section, who has died ; 1 since the fourih day of March, 1861, or who shall there- j : after die. by reason of any wound received or disease • contracted while in the service of the United States and ; j in the line of duty.-: An officer of the navy had con- t tracked, under these-circumstances, a disease of which i he died. Some months previous to his death, he ten- 1 dered his resignation,'as his declining health, impaired ' by the disease which ultimately proved fatal, incapaci tated him for the efficient discharge of duty. His resig nation was accepted. 9he claim of his widow for a pen sion was rejected in the Pension Office, solely upon the ground that be was not, at the time of his death, in the naval service of the United States. The case was, by appeal, brought before the Department. * ' The action of the Pension bureau conformed to the con struction which had.been given to preceding acts of Con- J gress, granting naval' pensions. Some<of these acts ex pressly coniinedth'e right of the claimant to cases whera the death of the officer occurred during the period of his- i service. O.heracts such as that of 1813, and the second section of the act ol 1814, secure to the beneficiaries, for a - specific period, half of tbemonthly pay.to wh.ich.the de ceased was entitled at the time of hisidealh'. The late- Attorney General Butler decided that the death of an officer or seaman, before the expiration of his service, was not essential, under the latter acts, to the validity of hie widow’s claim-to a pension. He subsequently withdrew that opinion, and, although considering such a claim within the general equity- of the system he came to a conclusion, adverse to it under-those acts, owing to their peculiar phraseology, and from the fact -that Congress had given a construction to them by the continuing acta of May 23. IS2B,.and June 28,-2332. The act 0f1562 does not, in direct terms, exclude from Its benefits the widow or other designated relatives of pertons who, after their resignationor discharge, shall, die of wounds received or disease contracted in the naval service, and inthe line of duty, nor does.it determine the amount of pension r by the monthly pay-of the de ceased at the time of his death. The latter provision would £e?m to require that the connection, of the de ceased with the service shonld subsist until his death.. By the uniform practice of the. Pension bureau, under the existing act, a military pension .was granted! to the relatives of the party, without regard to the time of his death, if the claim in other respects was free from ob jection. Uniformity in the administration of. the act is desirable, and a settled interpretation of.it should be adhered to, unless it- be manifestly wrong. Although, in the former legislation of Congress, military and na valpensions wore granted under.separata and independ ent enactments, both classes of pensions arc.-pnmded for and placed upon the sam9 footing „by the act under., coisideiation. No distinction is made between the two branches of the service. I could not sanction.a decision, making such a distinction, and I was satisfied that the action of the Pension bureau, in regard.to military pen sions, was amply justified by the spirit, and*was not in violation of the letter, of the statute. - The effects and consequences of the opposite construc tion are worthy of attention.. Accordant to ia, no provi sion is made for the bereaved and often necessitous and helpless family of a deceased who has received a mortal wound or contracted a fatal diseass-in the line of ' duty, if hisdeeth-occurred after of the period of his rervice. Had the .wound or disease inflict ed a disability, it is clear that, .had rue survived it. he would have been entitled to a pension proportionate .to each disability. The pension vrou^d-not commence in any event until after his discharge. Should the disabled . and discharged soldier or seaman die after receiving his - pension, or before estabUshingbisxlaimto it, uis rela tives won 1 d.be excludsd from the oounty ot Congress,; although it couid be ihown by. indisputable proofs that his death was Ihe direct andlnsyitableiesult of a wound received on the field or the deck, from,she enemies of lus C °ltseemedtometobe'moreinAc.corSfincewßli the le gislative intention to. hold that, the death of a after his resignation or discharge, would not be fatal to the claim of niß widow,or relative* t*>a pension. Shonld I have erred in thisVsqewu Congress can app_y the appropriate corrective in regard) &o future ca«es. . I would advise, however, thatr3ome limit should ja . fixed bT-law, within which the dea'.h should occur--to entitle the beneficiariesnamedia,tha second and the fol lowing sections of the act to the benefit of its provision s During the year ending 30£h September last s,l3£*o plicaffions and 811 cayeats.w.ero received at the Patent Office 29 applications were filed for tbe extension of patents previously, granted, ; During the earns period , 3.8T7 patents were issmd and 40 extensions granted. Quite a diminution is observable in the number of riaims, oiv which patents.have been allowed, but not issued became of the non-paymanV of the final fee within the time prescribed by law, the number being abouh37o. The balance in Eho tteaaarv to the credit of the patent fund on the Ist of October, 1563, was 645.157.2 U The re ceipts of the office to September 30,1563, to . $179,378,55, making its entire resources for the. year $227,535.76 Tbe expenditures of the office during that; period have been $189,303.13. leaving a bailee, on hani on the Ist October. 1853,, of $37,732 63 The work of classifying the results or. the eighth census for publication has progressed satisfactorily, and the printing of Vnq volume of population statistics. ia,so . far advanced as to insure its completion and delivery early inthe coming session of Congress. The succeed,- ins volumes will be supplied to the two Houses as fast ns the capabilities of the public printer; will adm&. The marshals and assistant marshals in ,th» loyal Siates have generally beenpaid in foliior theirseryices, and the account* of those employed, to take Ste terri torial census of-Nevada, Dakota, and Colwado, for-v which provision was made by tbe sstof Mas an 3. 1063; have been paid-in part, and the arerin pro cess of adjustment. The final setUement of the accounts of 1,507 marshals and assistants In States afiected.by the rebellion has been precluded condition of public afi'airs and the refusal of those officers ta take the oqth proscribed by law asi a condition precedent to reports from th* Board of Visitors and the Superintendent of Constiuoison of tha Government llos • pltal for ihe Insane will by all with, muoh inter est Tbe advantages of iiis institution at the present time cannot be overestimated. Those who. while en gaged in the land aud. xaval service of the country, in this trying honr, for ihn preservation of our Government, are overtaken by mental disorders,, there find a refuge, and are treated wilh the highest skill which has yet beffli attaiiwd in the- treating Ihe Insane. The success wilehhas attended their treat ment, and the numbers who are the most flattering teßtimonlals in behalf of those who have had charge of inslltutlon. Theiv devotion to their calling is cnly ifi be fully appreciated when it is remem bered that a larger number of patients have been admit-, ted to this Institution duringthe last, year than have ever befow. been admitted into any similar hospital in this in the same space of time.. Although eo large a number have been admitted, ana the increase been Chiefly derived from the army and navy, it in grati-. fling to bo assured that neither the existence of the war, doubt a* to the justice of tho cause, nor distrust as to its I '‘final result, Is to be imputed as the cause of the malady E' wU’i trM* the patients liht« been sfflletea v l)Ut ijwtft THREE CENTS ig rather the result of overtasked efforts of coustitutiorcs previously impaired by sickness contracted in the liny of o’etf y. other advantages ■which this instittiUon afford Vrieth&ttbote who have suffered a loss of a limb in the k'ervlce may here have it replaced by an artificial one; fab Treated by persons of the highest skill, without cofct, the beiog maintained at the hospital, free of expent during the time the artificial limb is being prepaied, l.’iade familiar With its mech.aniam-and.ttBe, and thus aiU&Jed to adopt their new help with the greatest advi.'atage and ease to themselves. , ' During the year mcch difficulty and perplexity have been tx’Perienced by the Department in the admhaion of l'ntients to this institution under the pi stent laws. Jffany applications have been made for admission cf peisona who have sought refage in this district tot'have not their permanent homes here, so as to be clearly entitled to admission Into the hotpital, as tagldent paupers' at the time' of becoming Insane. Taese persons have, in many in* stances, been a fierlons charge upon the War Depart ment, which has been vflmpeiied to take care of them in camps and other unsuitable places forzuch persons, and coi-sequeatlv at groat expense and Inoonveniencs: It is recommended tha'i*exhting lawn on the subject be fo modified as to pern.’.it the Department, in the.ezercise of a proper discretion, to s,datlt this class of persona into the asylum Until they c.an Mmore properly of. I cannot conclude ray .notice of this institution without adding my testimony io thaS of all my predecessors-'.to the marked'devotion and ability and fit nets of the. gentleman vbo h£3-’oueupied potition cf fcureriutt-ndenfc from tk«-foundation of the naylazn. Ko dererveo the gratitude ofShecountryforhis ze alone? and perhigten ( t efforts to snake Institution under his charge a model one in every retpesfc in which it may be viewed. The appropii&tijUfl whivb are ?„b1 e-d for the’ensuing fipcal yearare earnestly recommended. Ko application of public money ba« ever keen moro wisely, ecocotal cally, and tatisfhotorily mads, thau-have' the de dicated by Cong«s»?o this humane and benevolent iu fctiruiion, The Colombia-Initttution for the•in&fcructioa c?tbe deafand dumb and- tira-blind has beoir managed IwUh great ability and success. The buildings, however, are manifestlyimufifbientftirilie proper accosnmodatioE’of the r upils admitted and the growing wants of this conh mnniiy. The report: of the presi dent of the institution will b& read with interest; It expresses an earnes&desdra forthe’ acquisition of more adjacent land—to the cxteaiof about thirteen the instruction of the pupils in horti tulture and agriculture? the erection of more-permanent and commodious'mechanic shops and other neaebsary boildirgs, and for the introduction of thfr Potomac ■water, and asks for these purposes additional appro priation s amount!* gto-abcu: $6O, COO If it be the inten tion of Congress to make this institution a receptacle or all who will probably apply for admission iatoit, the proposed enlargements c/ie-eminently.proper, I ’and?should be made without delay, in order to secure the requisite lands before they shall have advanced in price or bo otherwise appropriated. Butif it be only designed tomake provision for the unfortunates of this class inhabiting th e District of Columbia, and the children of persons in the military and naval service, who are unable to-pro vide for them elsewhere*, then it is doubtful whether it will be proper to increase the extent of the groundK or to construct the buildings, as proposed. In either case, bewever, the wooden structures now appurtenant to the buildings occupied are entirely unsafe for the'pur poses to which they are applied, and should be removed, and their places BUpnlied r by tubstantial brick building, tnd about two acres of land added, for the purpose of creeling thereon proper workshops. I abstained from submitting the estimates proposed for the larger sums, because I was-not prepared to eay what the wtil of Congress might be on the subject; but I' earnestly recommend that provision be made, if notfto the full extent asked, at least to that required for aud safe accommodation 1 of the children of the district who are entitled to admission into the institution. It ihould also be-supplied with water, and T r-commsnd the apprcp.iation of the amount asked for that purpose. : Satisfactory progress-has been made on the work of the Capitol extension and new dome, notwithstanding the difHctfUie* encountered in obtaining fhd marble for the former, and artisans of the-requisite skill and expe rience for the peculiar character of the work to be done on thelafcter- • r . ' " Slice tbe last annual report from this Department, the eastern l portico of-the-north wing has been. con structed, and much woTk’done on that of the south wing. The porticoes of the connecting corridors, and the aranite plaiiomsand steps between the old or central portions of the betiding and the nevrwings, as well as the ap proaches tobothwings on the western front, have also been completed. It is expected that the eastern, entrance to the north wing will alsobefinished the present season. The groop of statuary which was executed here in marble, from models madeby thelateThomasCrawford, forfbe pediment of the eastern portico ofthe north wing, designed to represent “the progress of civilization,” »nd ; rbeataiues of ‘‘ Justice” and '“History,” which were also designed by Crawford, and executed in Italy, have been put in their respective places, and attract much attention and merited admiration. The expensive and elaborately-wrought bronze door, designed by Randolph Rodgers, and cast at the Bavarian foundry, in Munich, and the marble statues of Franklin and Jefferson, executed in Italy, by Hiram Powers, under a. contract made by your immediate predecessor, under theaufhorily of an act of Congress, have also been received and placed in appropriate positions in the tui’ding. All there works of ait, and a few others not yet com . plated, weTe er-empted fromHhe restrictions which were imposed upbf. -the embellishment of the Capitol with statuary and*paintings by the recent legislation of Con gress, The colorsal figure of *. Freedom,"designed by Craw ford and executed by C‘ar* Mills, was, on the 2d inst, successfully raised to its elevated place on thejiew dome, and forms a grand and appropriate crowning to the Ca pitol of the cation. With a view to economy,* during the present year I abolished the office of architect of the Patent 'Office, betiding, nod added thedntiei of the same to those of tae “ architect of the Capitol extension. Preparations have been made for finisbingrbe 6alooa of the north- front, and for faraislun g the same with suitable cases for the reception and exhibition of-models. The work will be completed during the approaching season, and with the appropriation made at the lae-t ses sion of Congress for that purpose. The architect atrong lyurgesthe propriety and necessity of completing the exterior ofthe north front, and an appropriation for that purpose-has been submitted in the annual estimates. It became indispensably necessary,;for the proper ac commodation of the Sunreme Court of the District of Colombia, and the offiders• connected therewith, to make certain changes and improvements in the eistsm portion ofthe City Hall, which I have caused to be made, at the expense of the judiciary fund, upon which it has beeu ufcual to draw for such purposes, and the court is now enabled to dispatch the business coming before it with much greater convenience and satisfac tion to the public. * The report of the Commissioner of Public Buildings will indicate to Congress the alterations and repairs which have bten made to the finished portions of the ‘ Capitol, and v» hat additional improvements he'd eeme it advisable to have provided for by farther legislation. It also explains the mannerin which the moneys appro priated for the public works under his charge have been expended during the past year, and recommends other Improvements of the streets and public grounds, which recommendations will, no doubt, receive the considera tion of the appropriate committees of Congress. The duties properlylacpeitaining to the office of Com- • mifcsioner of the Public Buildings and Grounds have been greatly augmented within the past few years, and. sometimes by me imposition upon him of duties not strictly belonging to his office. In justice to him, there fore, as well as to the public service, at tha com nance- ; meat of the present fiscal' year I. relieved him, to some •; extent, by the appointment of a general superintendent and special disbursing agent for the Capitol extension, the Patent Office building, and the Washington aque duct. In making this arrangement, a saving to the Go vernment was effected, while I, at the same time, se cured for these important works the services of a pro fessional and practical architect. * The work on the Washington aqueduct has progressed, in pursuance of the act of Congress transferring the same to this Department, with but slight exceptions, and the water of the Potomac river been this day introduced into the reservoirs. The walls and banka of the dis tributing reservoir were designed, by the engineer who projected the aqueduct, to be protected with broken ttone, and a contract was made and the work commenced on tb at pi an; but it appeared to me to be so nnsnbstantial and insufficient for the purpose that I caused an inquiry to be made as to the manner of protecting similar em bankments in other localities, ana found that, with but few if any exceptions, the walls were lined wi r h solid stone masonry,laid in the best of cement. Influenced by the example and experience of others, and by the ad vice of eminent engineers, I directed a thin dressing of broken stone to be placed upon the interior walls for a foundation, and thevwhole to he faced with solid stone woik of about the same thickness as the contemplated riprap or broken-stone wail. According to the original plan ofthe aqueduct, the water from the Potomac is con ducted into a receiving reservoir formed by.a daimactoss a stream called Powder Mill or Little Fails branch, about nine miles below the head of the conduit, whence it is convey* d about two miles farther downto a distributing reservoir, divided into two equal sections, or basins, by. an embankment designed chiefly for. filtering purposes. It is thus always intermingled with the water ftom Powder Mill branch.-.' The latter stream drains a considerable extent of country,, and is subject to frequent and heavy^freshets which render its water unfit for immediate use. At limes this stream is clear, while the water of the Potomac is rendered impure, by reason of heavy rains nearer ita source. It is, therefore, important that should he so constructed , as to afford an adequate- supply of water from whichever of these sources may, for the time, be most free from impurities, and to exclude that which may be unfit for use. For this purpose, the engi neer in. charge proposes to connect the condnit abovethe receiving reservoir with that below it, so that the water from the Potomac may he brought directly into, the dis tributing reservoir without being adnlterated’hy that of Powder Mill branch. He also proposes to construct a gate-house in the dividing wall ofthe distributing reser voir, so as to admitof the use of the water from either . section, as may become desirable. By means of these improvements, the requisite supply of water may be drawn from whichever of four distinct sources msybe the purest and best, viz-:, the Potomac river. Powder Mill branch, or either section of the distributing reser voir; but, without some such, arrangement.. “anun failing and abundant. supply ofjgood and wholesome water” cannot at all. tlmeß be-ohtained. under these circumstances, I have deemed it necessary to orderthese changes in the original plan, and have made the esti mates of appropriations for the.completion of the work to conform thereto.. For information in,detail in refer ence to this subject, I invite attention to the full and able report of the chief engineer.. .. ... Certain parties having, from-time to time, made claim to heavy damagesfor the diversion of the water from the Potomac river, my immediate- predecessor, with a view to settle and end thisclainventered. into an agreement of arbitration with the claimants. Pursuant to thin 1 agreement,-the arbitrators, met from tinae to time, and finally submitted their award,, by which they adjudged in favor of the claimants upon each'and- all of the plans and modes submitted to them,, being three in number, for the construction of tbe dam .across- the Potomac, and also $12.C00 for their ownfees as arbitrators, ands7ol.S4 for tbe expenses of arbitration. The sums being solarge, I did not feel justified in, applying .the existing appro priation for the completion of the aqueduct to the pay ment thereof, preferring to submit the whole matter to Congress for ilB : determination. , Ifc appears from the re port of the experienced engineer, inensrge ofthe work,- as must be obvious to every observer, that an ampLe supply of water for the use of tte oit.es of Washington and Georgetown, for manr.veaca to come, can be ob tained from-the Potomac by.the.erection ofatightdam, extending from the Maryland, shore to Conn’s island, to* a height which will give a.head.of six feet of water in.- the aqueduct, and yteld.-a, dally supply of about-, 6G»CCO.OOO gallons, which, ris ..thirty-three and one-third per cent, more than was used, w the city-, of Eew York in the year IS6I, when its .population was over SOO.OOO- In view .of this fact, I-havs.ih&iructed the engineer to construct a dam of crit.stone,. with a base sufficient ho bear a superstructure of -tha.r&qaired height for the fall . icapacity of the aqueduct,- whenever it may be caned inio requisition:.. / , •, ... ... It in difficult to coiiceiv©-isaw a dam of this character can work any injury to of the watertight cUimed at the Great Falls. M the utmost.it could caly raise the water to alevel.&iittteheadof the island, while at ordinary stages and at lew water (the only timawhen any value, can properly ba-placed upon the rigptsv it would not increase or the flow ofwater.m the main channel on the wsst'Side of the island; and it sure ly cannot be pretended,that*the parties claiming the wa ter right can lawfully dlijerS the ordinary flora of the water on the east side cirthe island. A dam of the east cb annel that would.raise-the water to a height sufficient to fill the aqueduct would be a great advantage to tlie claimants.for the reason that it would enable them to avail th e luselves of ike-power by the but one dam. while one that wouH only back the water to the head of the island must be a matter of total indifference to them; because, in the very ns lure of thing®, it can work Iheinuodetrlment. whatever. ' _ T If this view shall be taken of the case hyCongress, I re commend that sum be fippropriaiea to pay the expenses of the arbitration, and that ths eetimate of the costof tho-.dam: aososs the main ci\>pnei be aimln ished to the estimated, eosfc cf the dam ojrm the east chan nel, thus leaving the greater expense of« the dam to be, provided for a's.the exigencies of the auies. of Washing:- ton and Georgetown, by tne increase oitheir popula,tloi^„ ths, engineer will ugil fail to arrest the* attentiosu of-Congress in another important particular.-. The immense volume of water which the aqueduct will soon furnish will afford an ample supply for fcun-- tains at all appropriate places, and. for cleansing the. streets and 'sevms of the city, keeping them at all times in a healthful and agreeable condition. But lu order to. the accomplishment of this mo.sk desirable obje4> .the present system of expenditure repairing and the comiiruction of sewera-mnst be abandoned, op modiffed-to snob an extent a& i;©. place it under aaa>con ,tr®l. I can perceive no good#reason why the»(?Qvern ment should take upon itself .the exclusive managemont amd repair of one or more sf who streets and ayenues of the cjty, while a.ll are eomlly necessary t-o.rtio ooa venience and comfort of hie citizens of the united States visiting ov residing in the city of Washington. The great width of its numerous, streets and av.enuea quite discourages any attemj&to completely ra,ve.them; nor is it desirable that it sX-inld be generally done, when we. consider the incieaesd amount of heat that would be radiated from their exposed surfaces, and the clouds of dust that would be constantly Bweepiiuf.over them. it is believed thcAthis may be avoided:to a great extent, by allowing in some instances tbe adjoining proprietors to extend the sidewalks into the streets, so as to reduce, the latter to a proper width for pavement'or concrete, and to afford, space for grass plots la, front of their dwell-' in rs, and in . other streets by making a park of proper width through the middle for the cultivation oJ trees and plants, sa& the erection of fountains. By the. adop tion of such a course, the streets and avenues of the city would bet reduced to sucli width as to admit of their being tl\o.#onghly paved at a reasonable cost, and the beauty and comfort of the city immemely increased, Butncdlher this nor any other, great improvement can he exacted tinder the present laws. They ebould be so modia-ed as to require a uniform and perfect system or sewerage throughout the city; and to superintend this, and improve and repair the streets,commissioners should be provided, one to be appointed by the Goyerumeut, and one or more by the corporate authorities of the cuy the money appropriated by Congress to be expencea in. such proportion to the sum provided by the city as shonld be prescribed by law, and the obligation the city to raise by taxation,’ annually, ® n ®*L sum as might be deemed by the commissioners necessary for the objects to he accomplished. , , t , _ An aot of Congress to extend Sthe andrla and Washington Railroad JJj} /&J other purposes, approved .March- 8,1863. authorized the company to ereot-nn additional structure or passage. way alopy eithw M 5U9 Ffftww* brl&n t?c W4’ TUE .AE FEEHEI (PUBLISHED WEEKLY.) m War Fmu Will be sent to subscriber* by mall (per usua it advance) iim , 00 Three a nn Ilweopte. ~ __ 8 oa Ten —~ls OO Larger Club* than Ten will be charted: at th* B %xne ate, IL BO per copy. &icmoney must alwayt accompany (he enter% meet in no instance can these terms he deviated/rom, as they afford verv little more than the cost of the paper.. are requested to act as Agents fry mWAnPnsßfl. To the aetter-ny of the Club ci ten or twenty, atf extra copy of the Paper will be given. fcut ?° aB not bincSer the general nee of said bridge for ordinary travel. The a array*, for the construction of this bridge. with a model of the proposed draw, were euh (flitted to and approved by me aB required by the act re« 1 erred to; and the company immediately thereafter eu* k r hf gn Ib located on a centre) line fc6venty-flve feet below the cfrntre line of the old oridge, and has progressed with such remarkable ca- f s . to Justify tie belief that it will be fallr com pieced daring the early part of the approaching session of -P,°£*^ B8 * it is expected that the railroad travel J” 1:l .Vto it, and the restored to th« u ®*;, o ® public, for whom it was'intended. a dilapidated condition, and there ig tB\\* s iumiediate repair. The iveport of the Police Commissioners will be found to be an elaborate and interesting account of tnelr opera* tioua dnring thfi past year, and folly attests the useful ness and importance of their organization. It, however, contains m any recommendations which if fully adout ed, wi‘! impose greatly increased expenditures upon the Government. Prom the examination which I have bean sole to give to the subject, I anrinclined to think an in crease of the force. and of their compensation, is expedi ent and proper, but aot to the extent indicated by the ~ commissioners. 1 have no* been able to convince myselfof the justice of imposing she entire support of this police system upon, the Federal Government, it was shown by the census of 1860 that the District of Colombia then contained seventy five thousand psimanent inhabitants, since which time its population has evidently been largely lucreised. ? *«*? v no city within the United States, it iB believed, in w cic’h propenty of all kind.Tyielda a larger income, in* iw vslne, and no" good reason exists why it phodd not nelp ts defray the expense of its own pro- S S 1 ,.! I ’.!, 1 ? 3 . 1 *? itt making this sasges txou, by the raci tha. She annuil tax imposed upon pro per, y in this District is much less than that imposed oa‘ ue prrreity in sny of the principal cities in the United ota tee. /xhe suggesSSoßß of the Commissioners of the PoDco for trc**ffiore economical and epeedy punishment of crime are just and proper, and deserve the carefal coaaideru i:ou of Congress Ahor.ee of correction andfor tie detention of juvenile ofieucers sbopla he provided, andaeystem adopted bv which ‘ragranis 'and petty oilenders, on conviction upon injamaiy trial before the rol.hh magistrates, shouid re ceive punishment, by being* compelled to work upon the street*, to break stoce in the quarries for their naproveraent, or to labor in eome other useful way -The wfcjtf of a penitentiary has been particularly fait id theadminifctrstfon of justice in-thie District during the past y€ 37. The vrioie number of. convicts now un der senteico from this- District is 179 ; of this number 343. have bee^conviewed and sent to the penitentiary at Albany, Kew-lork, sines the appropriation of the peni tentiary ofp* United States for the District of Colum brahy the The average coat of trans porting convict from ihis District to the penitentiary at j lb-Any is about fifty dollaie, and that of maintaining them there one cbellar and twenty-five cents per week, or sia ty-fcve dollars per annamv It is confidently be-' lieytd/that, wivh-'a penitentiary posaessing the an-' pliances necessary for the judicious application of the i abor of the convistv, they could be much more economi cally maintained iathigDistrict, and the moral advan tages secured to the «omm unity of having institutions of this character locatsd intfceir midst. nieGovemmeit nowowne atractof land, containing, two hundted'and eljihty-one acres, upon which the re ceiving reservoir of tte Washington aqueduct is situ ated, which embraced-several suitable site* for a peni tentiary, asd abouse for the detention and reform of juvtsile offenders. Thaeo lands are now lying vacant. *Jhere are excellent’ e&arriee immediately contiguous thereto, from- which substantial buildings could ba erected. They ceuid be-locate din close proximity to the canal, whence :uel could be-obtained at the cheapest rates, t’ewerage could be easily constructed, and alt ths nectsEarr waterpower for propelling the requisite ma chinery for the successful and proper employment of the labor of the convicts could be procured from the surpiua water of the reservoir at a very small cost I think It'- would be good ecoromy to provide for the erection of penitentiary baiUings- upon these lauds, and that it would be well for Congress; at ics approaching session. to make the necessary provision for ike commencement of ;he work. In a very short time many of the convicts could be provided with secure and comfortable quarters upon the premises, and'employed in qnarryinz stone, and other laboT pertaining to tie construction of sack works. The act of March 3, 3£53. making appropriations for sundry civil txpenses of the Government for the year ending June cC. 1564, and for the year ending June 30. 3562 1 , and for other purposes, transferred from the appro priation made and placed under the control of the Secre tary of the Tnaiury by the act of June 23, 1380, for the detection and arrest of counrerfeirer* of the coin ofthe Tnited States, the sum of eleven hundred and eighty fourdoll&TS. or to much thereof as might be necessary to enable the Secretary ofthe literior “ti pay detec tive police employed by a former head of the Depart ment, for expenses incuned and services rendered in the cities of Washington an a Philadelphia in the detec tion and arrest of counterfeiters of United States coin. Baving examined all tbe claims presented, and found thfm to have been liquidated and paid asper agreement mace with the'c’aimants-prior to the rendition of the service, ! recommend the passage of a lawto repeal tha provision alluded to in the act of March 3, 1333. and to lestcre the,amount thereby transferred to the control of ike fiecietaivof the Treasury for the purposes originiUy* designed; While the African slave trade is known to be still car ried on from some foreign poets to a lamentable extent, it is gratifying to he able to state that so successful have been the efforts of this Government to prevent citizens of the United Hates from engaging in it, that not a single vewel is known or believed fo have-been fitted outin car own waters for that purpose during tbe past year, and the wholesome examples wMch resulted from the energy and vigilance which have been an * are still being displayed by the cfiicers-fmroediately cnarged* with Ihe enforcement of the laws on this subject, to ■ i ether with the growing tenre of'justice among our peo ple towards the African race,-will, it is hoped, effectu ally deter persons from any future participation in so unrighteous a traffic. The officers' appointed pursuant to the requirements of the treaty of April 7.1552, with Great Britain, have re paired-to their several stations; and the mixed courts of justice, to reside at the city of 2few Tork. Sierra Leone, and the Gape of Good Hope, have been duly organized and established-. • The accounts of the American Colonization Society for the support o'recaptured Africans in Liberia have not yet been finally' settled, owing to tbe imperfect manner in which they have been kept by the resident agent of the United States in that Republic, and by the Liberian authorities after the transfer of the recautives tothem.’ The information and facts required to be re gularly reported not baving been recorded and praserved by them, it is feared they cannot"now he obtained with, the accuracy of- detail contemplated by the strict terms of the contracts, end hence it is respectfully recom mended that the Department he authorized by* law to au just -and settle the accounts on equitable princi- Kolfnrth er appropriation'is asked for this object, the unexpended balances of former appropriations being sufficient to meet all the legal demands that can possi bly be made during the'present and the next ensuing fi-caJ year. The re-enactment of the joint resolution of Ed of Mai cb last, respecting the compensation of judges and so foith, under the treaty with Great JBritian, and. other persons employed in the suppression of the slave trade,” will be necessary, however, to authorize the use of tbr-se-fand&for the service of the-fiscatlyear end ing the SOih of June, 1865. - I am unable to report any greater disposition, gone rally, among the colored persons, for-whose coloniza tion provision was madeby certain recent acts of Con gress, to emigrate,* than had been exhibited at the time oi your last annual message. Since that time, however, about four hundred snd fifty have been deported to the He a Vache, adjacent and belonging to the Republic of Hayti. The condition of this colony has been variously represented, and an agent has been deputed by the De partment to visit-the island and report the real situation of affairs, and the future prospects of the emigrants there They were emigrated under a contract entered into for that purpose, with persons who were repre sented &s possessing- every qualification and fitness for insuring ihe success of the experiment; but nothing has y et been paid them under it, nor will there be until the report oi the agent shall have been received and found toiustifyit. In depend ent of the seeming unwillingness of this class of persons to leave the United States,- the experience the country has derived since the passage of the acts of Con gress on the subject of colonization, and the action of tha ovemment towards them in adopting the able-bodied, men into its armies, render it a question of great im portance whether-the-efiort to colonize them beyond the limits of the United States should be continued, unless the way' should be opened for the establishment of a friendly colony.in some one of the Central American States, at a favorable commercial point,- for traversing that country by a new route to the Pacific. Although much prejudice has been-manifested through out most of the free States in regard to the introduction of colored persons therein, there is a place where many of them can now be'advantageously employed at remu nerative prices, and where tr-e objection to color does not exist. 1 refer to the line of the Pacific Railroad. Upon < this work there are already about three hundred free co lored laborers, ont of fifteen hundred employed, and I am assured they perform their duty faithfully and well. Tbe Department has been repeatedly urged to use its in- • fluenco to cause as many colored- laborers as can bs procured lobe employed on this work, and it is worthy of consideration, therefore, whether the money appro priated to remove those who are now a charge upon the Government, to foreign countries, will not be more ■ judiciously applied in transporting* them to those fields-, of labor within the dominions of the United States where they are’wantea, and where they will be welcemed. In this way the expfnse, to which the Government is now subjected, will be-greatly diminished, and we-shall have the satisfaction of placing these people in a position t of usefulness,- security, and peace, where.they will be - it strumental in the construction of a work in which the ration has of all others, save the putting down of this . rebellion, the.ereatest interest. The need at the seat of. Government of a Bureau of National Statistics has long been felt, and-often been called to and engaged the attention of Congress, but so . far without any p> actical result. The facts and Informa tion which a properly organized bureau' of this charac- .. ter would collect and exhibit are often indispensable, as well to the enlightened legislator, as to the several de partments of the Government and the people at large. It is confidently believed that it would contribute im- - men'ely to the advancement ofthe commercial, agricul tural, financial, scientific, manufacturing, and other in terests of our people, and, by the dissemination of cor rect information as to our national wealth, interests* and resources, lead to a more just appreciation of the value to all of the American; Union, and contribute, in , no small degree, to the more universal establishment and maintenance of friendly relations between ourselves.. and the other civilized nations of the earth. Such a bureau could be established now with but lit- tie outlay, and if made, to include the duty of enninera- . tin g the population of the TJni cd States, for which pur- . pose a bureau is now required to be temporarily or ganized every ten years, at considerable expense and ; labor, would effect a positive saving to the treasury, while tbe work would be better performed, as the office would then be permanent, and the experience gained in tie operations of one decade not wholly lost before the next was entered upon, as is. now the case, ifosten-. lightened nations have, perceived the necessity and utility of organized effort for the attainment of accurate . statistical knowledge, and to profit by their experience is the dictate of wisdom. Deeply impressed with the . importance of the subject, I venture to refer to it again, and to invoke for if the favorable consideration of Con gress. On the 3d of March, 1563, a joint resolution was an- . acted authorizing and'nirectirg the Secretary of the In terior. and. ail otter custodians thereof, to cause equal distribution to be forthwith made among tbe members of the two Houses of-the then-expiring Congress, of all hooks and documents which had' been.printed or pnr chaied at the cost of the Government, and not actually belonging to any public library, or the library kept for . use in any department of the Government, excepting, however, all isuch books and documents as were em braced in order for the distribution thereof • among the members of either.. House of .Congress. I -'found, on examination, that the numberof volumes of.- the.docuiEants referred to, thjaix incompleteness as sets . or works, and the uncertainty as to their value, aggre gately or separately, were .such as.torender.it wholly impracticable td'earry the provisions of the joint res/uo tion into Sect, and the subject is therefore.respectfnlly . submitted fbr the further* conn leration and action of • 'jotl™ past tlia Department has had to (ncouiitar difficulties in providin g suitable accommodations for th® TJniteu States courts in the dtr of New York. Congress.; alone can apply the remedy, and it should no.t ba, longer deferred- For many y jars apartments in the City .Hall wire used for this pnir-pse, but theincreasingnecesßities ofthe.mty demanded them, and they had tobe given up. Since then the Department haslbeen obliged..to rent oOerbuildings annually, or for a short term,Qf. years, and to-alter and fit haem up at. considerable expense. The premises -now umd were leased by the Department in the year 1858, for the sum of sixteen thousand dollars per annum. A large sum has been expepded.for altera tions, occasional repairs, and furniture,, amounting, jo six years, including, rent, to upwards of one hundred and.twenty-five thousand dollars. The present lease of • the sffopemy will, expire on tbe Ist of. May next. The owner of it handled since the original lease was made, and the executors, though still willing, to dispose of it at tbe price then^xed—two.hundred and fifteen thousand dollars—are averse to extending the lease, so that the , Department will soon hava to procure other .temporary accommodations for the courts Bitting at New York city, unless Congress, shall provide the means to secure per-. xmnentOßsa. The Government baa pnrehased or erected buildings at Philadalphia, Boston, and a number of loss important cities, for the. use of the' Federal courts and for other public purposes and aommencedfhe erection of one also. at Baltimore. The propriety of extending this prudent policy to the city of New York seems too manifest to re-, quire-argnment. Sconomy alone demands it. . The Department is not .prepared to say that the pur . chase of the building now. used,, for the fj¥± l M*®?v wouJd be the mbstadvantageons SvsSIJHJ; he made: buf.it would, in the the saving of considerable txnenee to the treasury. 1, therefore, eaSesbly reotsuamd thatthe Department be empowere* ly Cmireesto provide tuitable and permanent accom modaHnne htv the Suited States eonrts at Her" York, and. ftaten l/emmte a“ppr M riaSion be made for that pur-' Pacific Eailroad Company, chartered by. the act l entitled “An act to aid lathe con etrnction of a*ailroad and telegraph line from the Mis-. "tonri river to the Facifio ocean, and to secure to the Co vernmSt tne use of the same for postal military, anw other pnrpcefs,” approved Jnly 1, 1562, haa been or oflnltfld by the election, of directors and other officers, lid the subscription of tbe requisite amount of stock. ’ ova character and pecuniary ability of the stockholders ntfard the most ample guarantee that this gTeat worK •will be prosecuted to a snccsssful isbuo. The work upon, tbe branch lately located by you has already been com menced with a determination to press'll to. a rapid com pletion, despite the inclemency of the season and otiiec branch of the road, having-!it| terminus at the mouth of the Kansas river, and now known as that of tbe “ Pacific Bad Toad Company, eastern divieion.” is being constructed With tmpajflJlelGd energy. Since the first of September last,, about forty miles of this branch have been graded, tne ties made «a!y, the iron and rolling stock purchased and delivered or now in transitu. We have, assn rances upon which a well-founded belief maybe based, tbftt eaTlv next month it will be completed, and daring vfieaSS eSed to Fort KUey, a distance of about OD ThVprin e fipavl)hßtacTeto the rapid progresa of the work is the ecarcity of labor, which may be overcome by the employment of the freedmen, as before indicated in this branch of the Pacific BaUroaiiibsimi. coaijtf'Wife pisictlea'W,. despatch, gg.4 tbin »