firm. WEDNESDAY, DECEMBER 7, 1804. BSf In consequence of the unprecedented demand for our special report of the oil regions of West Virginia, Ohio, and Penn sylvania, we have to announce that it will be republished in Tun War Press of this Week. The War Press will appear on Thursday, and persons desiring copies Should order them ip advance. The Message of the President. Since the hour when Geoiums Washing ion wrote Bis Farewell Address to the peo ple of a chastened but united and tri umphant Republic, no Chief Magistrate has ever had the theme and the audience of Mr. President Lincoln. The occasion might suggest a similarity in the two men, but reverence which attracts us to Washington as to our religion would •make this inappropriate. The America Of to-day is in many respects the America that mourned over the retirement of Wash • ington. It had along, ex hausting, desolating war—not so ma jestic, but almost as important, as Our present war for freedom. Washington saw'his country emerging independent and successful from a contest with the greatest nation on the earth—a war that possessed the. elements of a civil strife, for it was the War of brothers and kinsmen. Lincoln Sees his country passing through the fourth year of a war that surpasses any contest ever known' in history, with every ma terial evidence of victory—the nation proud in its integrity, complete and compact in all of its relations? great tod piond enough 'to command the respect of the older nations of the world, and rapidly advancing iu every ele ment of civilization and power. He sees his armies in every Southern State, and one of his most accomplished captains marching proudly through the heart of Georgia. His navies . have so completely, Sealed up the coast of the Confederacy that nothing but Wilmington saves it from death by inanition. His captains have remedied the mistakes ofother captains, and not only regained the territory lost in the beginning, but advanced to new congests., His bonds are at a premium in the market; and so well has he preserved the national credit that timid, cautious capitalists abroad seek them in preference to their own se curities. All this time the foreign immi gration has supplied the drain of war upon labor, and the material prosperity of the country has greatly advanced. Provi dence has given us new sources of wealth, and contributed, as it were, from the sub stance of the rocks and hills for the sup port of the nation. Prosperous in war in finance, in the values of lands and in terests —he has accomplished more than any President since Washington, and enters upon Ms administration with every assurance of continued triumph. With a proud, but we might say modest, consciousness of these things, Mr. Lin coln in Ms message quietly proceeds to review the various relations of the country With as much calmness and courage as though he were writing of peaceful deeds to a peaceful nation. Compared with the message of Mr. Davis, we find it the ad dress of a wise, kind statesman, wMIe the rebel cMeftain has nothing but words of defiance, hatred, falsehood, and malignity. It is the message that the President of the United States should write, while the de monstration of Mr. Davis was appropriate as the whining appeal of a discomfited rebel cMeftain. Mr. Davis and his friends have no favors to expect from Mr. Lin coln, and are entitled to no terms of peace but those written on the edge of Grant’s gword. They have forfeited every claim to citizensMp, or even to the enjoyment of life itself, under the American Republic. Therefore, any terms that Mr. Lincoln may see fit to give to the rebellion must he generous. He tells the South that its people" can make no less an atonement for rebel lion than the surrender of slavery; that there can be no peace without Union, and no Urnon without an unconditional submis sion of the Southern leaders. Recognizing in the Southern States a deep, latent, and long-suffering Union feeling, Ms policy will be directed to the encouragement and development of that feeling. He does not believte that all men in the South became traitors merely because several Legislatures saw fit to pass angry resolutions, wMeh they call ordinances of secession. He can not tMnk that the millions of Americans Who happened to live below a certain de gree of latitude went to bed patriots on certain days in 1861 only to rise up traitors on the days following. What he does see there is a vast military power, sustained by the tremendous social power of slavery, and ’ maintaining itself by a conscription Which began in 1861, and has lasted until now this territory is one vast camp of in struction, with no citizens permitted to teach, or write,, or hew timber, or carry • Water, unless specially detailed by the commander-in-chief of the camp. The President proposes.by war to disperse the armed men of tMs camp, and to throw around those unarmed the protection of the flag, so that they may return voluntarily to their duty. Whether this Union sentiment exists or not we do not care to discuss as a. question of theory, but one fact must have impressed itself on the mind of the Presi dent, that wherever our armies have moved there they have remained, and we maintain Ho armies of occupation-in any of the con quered States. Statesmen as radical as General Butler are willing to admit that the olive branch will never be tendered in vain to these people when the military power that crushes them is so far removed that they may be able to reach forth the hand and take it. We cannot hid men to come forth unless their prison-doors are opened, nor to stand up, unless the chains no longer compress their limbs. TAopen these doors and break these chains Is the President’s purpose. "We are not at liberty to do more at present than refer to the message of the President, and the accompanying reports, to which, this morning, we surrender our entire space. When this pressure is re moved we shall return to these great papers again, and speak more fully our opinions upon them. The President’s Message. [From the Washington Chronicle of yesterday. 3 The most significant message ever sent to an American Congress is that we pub lish in our Extra this, afternoon. Awaited With anxiety by all classes in this and Other nationalities, it will he read with an interest commensurate to its grave impor tance ; for all nations are to be affected by this remarkable statement of the condition of the United States in its sublime and terrible struggle with rebellion and slavery. The remotest regions of civilization, and, indeed, of uncivilized mankind, have felt in their nearest interest the progress of the War. Hence, what the_ President of Iran United States may speak to his Countrymen, after his re-election by their enthusiastic votes, well deserves to be styled matter of universal concern. The first thing that will impress the student of ibis paper will be the manner in which it opens the voluTne of «©ur public affairs. Wo one can find in these words that the War has fatally dislocated our political sys tem. Observe how the foreign relations of the Federal Government are disclosed. If there is one powerM proof of this na tion’s indestructibility as against any mere human agencies, it. is in our present attitude towards other Govern- ments. First of all, w% have almost eom „pleted the great lesson of self-dependence. And it is a question whether, in acquiring this knowledge, the price we have paid to Secure it was not well worth paying. In deed, it may be safely asserted that, while foreign manufactures have suffered beyond measure and parallel by the withdrawal of that great Southern staple which has been the chief cause of their selfish sympathies With slavery, our own domestic concerns, including those connected with agricul ture, science, and manual labor, aud all the arts and industries, have never been more healthy. There is a world of meaning in the President’s delicate reference to the course pursued by certain of the Canadian authorities since the beginning of the re bellion, and especially within the last year, either in deliberately allowing the agents and emissaries of the rebellion to harbor in that British dependency, or in boldly conniving at their plots and plans to make of these British ports places of re fuge and repair for piratical vessels. And tMs allusion may well apply to the efforts of the British sympathizers with treason in England, and to the offensive demonstra tions in other quarters of the Old World, in violation of that decent neutrality be tween great nations,withoufwMch there could be no lasting peace and commercial reciprocity. The Canadian provinces and the great Power of which 'they are the creatures, will not, we opine, pass over that part of the message which refers to the mighty railroad j system connect ing the New England States with them.- There is in this passage food for wise and profitable reflection. The reader will per ceive that same earnest regard for the South American Republics that has always glowed in the annual messages of the for mer Presidents. The pragmatic European papers which have sought to make a case against our country because of the capture of the Florida by the Wachusett, in neutral 'Brazilian waters, may find some enlighten, ment in Mr. Lincoln’s reference to that newest bubble of the times. The compre hensive review of Japanese and CMnese affairs, and our growing importance in that distant Oriental region, is a chapter full of admonition to all who think we are losing caste in foreign lands because of our civil war, and a new hope to all who know that the war has only called forth the energies of the American people, and hardened them for the grand part they are here after to play in the world’s drama. But if we feel proud over the President’s language on these grave points, what should we say of the picture he presents of our domestic affairs? [Not of the war, for he seems to have first resolved to show our strength in other respects, including our connections with foreign Powers, before touching the war.] New States have been created, 1 or are in progress of creation, out of our increased territories. The Pacific Railroad is progressing. The great tele ' graphic line connecting us with Russia, Asia, and all the civilized and a great part of the uncivilized regions of the earth, is being pushed to completion. Our harvests are abundant, our farmers happy and con tented ; and labor, in all its relations, has never before been so well paid or so happl ly employed. But we cannot continue tMs review. Space as well as leisure forbids it. Now let 'us direct attention to what the President says on the war itself. Here we find an originality of illustration and a copiousness of fact which cannot fail to make a profound impression upon the coun try. So much stress has been laid upon the allegation that, thousands of lives have been lost in the prosecution of this war. for the maintenance of the Republic, and that the free States are being exhausted of their men, and must soon abandon the field and consent to a dishonorable peace, that the President’s extraordinary and irre sistible argument—showing what endless sources of warlike power are open to the uses of the Executive in the prosecution of military operations—will be hailed with a grateful satisfaction. We regret that the occasion has not "permitted ns more elabo rately to. discuss the suggestions of the President in reference to the conduct of the war. What he says upon slavery, and upon emancipation,, however, needs no extended comment. We wish Ms words on tMs subject could be read ana heard In every Southern house hold. We wish that every soldier in the rebel army could hear them. We wish that the rebel conspirators could be confronted by them when they next attempt in fIAPPITTO OTIfl tb PirJ. OP pip P 1..... two conditions are suggested as essential to peace—the one the restoration of the old order of things; the other the abolition of human slavery. If the reader will carefully observe tMs portion of the President’s mes sage, he will notice that nothing else is asked; nay, more, that every proffer that could he consistently extended is made to invite the deluded insurgents hack to their allegiance to their Government, The door of amnesty still stands wide open. No period is affixed to its closing, save that wMch ob duracy and. unworthy pride may hasten. On the financial issues, in some senses more important than any other of the grave ques tions to wMch tMs grave people is dedi cated, the President is most hopeful; pre ferring, however, to await the formal ex hibit of Mr. Secretary’ Fessenden, who, witMn a few days, will suggest such other and curative legislation as may be de manded by present and prospective public exigencies. Taken altogether, no such executive emanation has ever proceeded from the Chief Magistrate of the American Republic. It is to the impenitent foes of the old flag a flaming sword, tod they must at last realize the puissance of our Government, and must perceive th'at suc cessful opposition to it is no longer a possi bility. It is an olive branch, a pardon, a wel come to return to the old household,, to the penitent. Foreign nations will understand from its firm, yet temperate tod philosophi cal tone, that their intrigues have beenbaf fled, and their hopes for an overthrow an nihilated. To the loyal people—those who have laid their fortunes and the lives of their dead friends and brothers almost at the feet of the President, who have given to him their hearts’ best hopea and their entire confidence—to them, and, above all, to the brave spirits of the army and navy, whether general or private, whether admiral or seaman, Abraham Lingoes message tMs day read in the Congress of the United States, and published to the world, will come like a benefaction and a blessing. Live the Republic ! WASHINGTON. Washington, Dee. 6,1584, SAIMON F. CHASE COXFfSmEii is CHIEF JUSTICE OF THE SIiPfiEME COURT. The Senate to-day confirmed Sal iron P, Chase as Chief Justice of the Supreme Court or the United States. Mr. Chabe haring been a member of tbe Senate, aeeording to tbe usual courtesy In such casoß, his nomination was not referred to the Committee on the'Judiciary, but was acted upon at once, and was confirmed In Executive session, directly after the reading of the President’s message. The Chief Justice will reach Washington to-morrow. MB. STEVENS’ GOLD BILL. The bill introduced by Mr. Stbvens In the House, to-day, declares the fineness of the gold and silver coins of the United States. Second. That a dollar note Issued by the Government is of equal value for all purposes'as gold and silver coin of like denomination. Third. That a contract made payable in coin may be payable in legal-tender United States notes, and that no difference In sale or value shall be allowed between them. Fourth. That after the passage of this bill no person shall receive or pay, or contract to receive any profit or advantage for gold or silver coin or buUlon more than its legal value In lawful money, or any other article or commodity, by any device, shift, or con trivance whatever; and that anyperson thusoffend ing shaU be deemed guilty of a misdemeanor, and upon conviction shall suffer Imprison ment for a term of not less than six months, and shall forfeit the full amount of the contraot or transaction, one hall to go to the Informer, and the other half to the United States, Fifth, That no person Bhall, by any device, shift or contrivance, receive or pay, or contract to reeeiv B or pay, any treasury or other note issued by the United States for circulation as money and declared legal-tender, for less than the lawful expressed value, and any offender, upon conviction, shall suf fer Imprisonment not exceeding six months, and a fine equal to the full amount of the sum specified in said note. Sixth. That If any person shall, In the purchase or sale of «old or; silver coin or bullion, agree to receive In payment notes of corporations or individuals at less than par value, he shall be deem ed to have offended against the provisions Of this act, and shpll be punished accordingly. sot. STEVENS’ JOINT BBSOLTJTION. The following Is the joint resolution Introduced by Mr. Stbvbkb In the House to-day: That the tine construction and meaning of so much or the act to provide Internal revenue, ap proved June aoth, 1864, as refers to the tax or duty gn cigars shall bo as followB: The tax shall be as sessed on the real value; and the price for which the same shall have been sold, or alleged to have been sold, or offered for sale, shall only be an item of evidence to enable the Inspector and assessor to as certain the true value. The assessed value shaH never be less than suoh alleged price or value, and whenever the owner or possessor as agent of cigars THE PRESS.—PHILADELPHIA,' WEDNESDAY. DECEMBER 7, 1564. shall fix the value thereof, or allege a certain prise for which he pretends to have purchased them, or offors them for sale, If the Inspector or assessor shall deem snch price below the real value, he shall beat liberty to take the-Same at that prloe for the use of the Government, glvtog the owner or agent a certlfiaate of the value, who shall be paid the same on presenting It to tho Treasurer of the United States or his deputy. The returns relative to the kind of cigars required by tbe nineteenth section of the act may be made monthly or bimonthly instead oi weekly, as may be deoided by the assessors. Manufacturers of cigars shall be allowed to have their olgars Inspected and stamped, and to return and pay the tax upon the same at any time, before as well as at the time of sale. Tbe stamps shaU always Indloate the actual amount of the tax paid or payable. THE ATTORNEV GENERAL AND POSTMASTER GENERALSHIP. The nomination of Hon. Jambs Spend as'Attor ney General was in tho Senate to-day referred to the Committee on the Judiciary, and that of ex- Governor Dennison as Postmaster General to the Committee on Post offlees-these gentlemen never having been members of the Senate. THE NOMINATIONS OF ATTORNEV AND POST MASTER GENERALS NOT ACTED ON. The nominations of Jambs Spebd as Attorney General, and William Dennison as Postmaster General, were sent into the Senate, but not act ed on. THE BEADING OF THE MESSAGE, The reading of the President’s message In the House was several times Interrupted by applause, especially tbe oonoludlag portion, In which ha says he will not be the Instrument to reinslave such per sons as are made flee by the emancipation profile mation or by any of the aots of Congress, and that, in staling a single condition of peaoe, he means simply to say, “ the war will cease on the part of the Government whenever It shall have oeased on the part of those who began It,” The applause was by dapping of hands, with cries of 11 Good 1” “That’s right!” etc. The Speaker rapped with his gavel to prevent further Infraction of the rules, although It was evident that he himself shared la the declarations of the President. LORD LVONS GOING "TO ENGLAND. Lord Lvons, her Britannic Majesty’s minister, took leave of the President and Secretary of "State yesterday, and proceeded to. New York to-day, In a special oar furnished by the Government for that purpose. His health Is so seriously Unpaired as to require relaxation, with the benefit of his native air. He carries with him the respect, sympathy, and good wishes of the .Government and people of th® United States. J. Hume BabkleY, Esq-, will have Charge of the British legation during the ab £©noo of Lord LYOHS. THE WAR. GEN. GBANT’S ARMY. firing near tbe Jerusalem Plank-Boad. FBOXIOTIOTT OF GEWEBAI. MEADE AND OTHEB OFFICERS. The fight ft Gvaliarasville, South Carolina, THE REBELS ACKNOWLEDGE A DRAWN BATTLE. UNION BEUiFORDEMENTS GOING UP BROAD RIVER. ADVICES FROM NEW ORLEANS. BRUTAL MURDER OF A UNION OFFICER BY THE REBELS Capture aud Destruction of Blockade-Runners. GXiNEKAX GRANT’S ARE Y ■ BUTLER’S SOUTH CAROLINA CAVALRY—THE BEBBL MAJOR EITZ HUGH AND THE BOOTS—ALL QUIET BBEOBB TETEBSBUBO. -B. H. Mcßride. [Special Correspondence of The Press. 3 * Bbfobb Petbbsbubo, Deo. 4,1864. A new brigade of rebel cavalry confronted onr horsemen early In this campaign. It was command ed by a gallant fellow called Butler, and composed of fiery individuals from South Carolina. They boasted of their object in coming North, wbloh was to teach the Yankees how to fight. Custer and Merrlt got at these cavalrymen, who were travelling under Infantry protection, somewhere between Old Church Tavern and Cold Harbor. I have a distinct recollection of these doughty cavaliers fleeing through the pines while the benighted heathen they came to instruct in military science pursued .them nlghunt? death, One oi our office fs foil into the hands of this But ler. the bartering proclivities of rebels, the prisoner requested Gen. Butler to give -him a written protection from all such’persons who were in the habit of exchanging their filthy gray slothing for onr smart . blue—nnlfor-roa.—The . paraw .wM “smillngiyHSfided'lhe petitioner, whoTS&bied care. lessly along, thankful that his* easy and,elegant hoots were made safe by a written guarantee. Gen. Hampton and Btaffthen passed by." Soon after one of.tho majors belonging to Hampton’s staff returned, and evidently for no good purpose. “Pine pair of boots,” remarked the major, patronizingly. “ Yes, very comfortable,” wits the response. After an awkward silence, Major obliquely asks, “Wouldn't like to trade, eh 1” “Ho,” wasthean swer, curtly given, “ I intend to keep these boots.” “Youdo,” was the jeering rejoinder. “Ireckon you won’t, because I have just came after the ar ticles. So off with them,” was the' brusque com mand. The captain refused, and as a dernier resort presented Butter’s Yankee hoot protective. TMs enraged the gallant Major, who, drawing Mb re volver, fiercely commanded onr friend lo draw Ms boots. Plve minutes alter one officer had nothing on his feet; another had_an excellent extra pair of boots strapped io Ms saddie. - It was Gregg’s lubk to meet some of Hampton’s and Butler’s officers during the late raid. When the gallant charge wab made by our cavalry, whloh gained for ns the fortifications and depots at Stony Greek, and some prisoners, among the latter was a dashing-looking major, representing himself to he one of Hampton’s staff. An. aid to Genial Gregg espied the man, and abruptly Inquired: “ Is your name Pits Hughl” •< It is,” replied the hanghty-looking rebel. . “Do you know Capt. Leoßer'!” was the next in : terrogatlon. “ Yes,” said Fits Hugh 5 “ he Is a prisoner of war In Richmond.” “No he is not,” exclaimed Captain Treicle, quite sharply; “he has been exchanged, and informed us how you robbed him of his boots.” “Ob, I’ve paid for that since. One of your men took a gold watch from me tO'day,” explained the Major, In surly tones. “No, sir; you have not paid for that Indignity; and when you leam that any member of General Gregg’s staff steals the boots from the feet of their prisoners, let us know, and ho shall be driven from our midst.” . The Petersburg Eatress of the fid Instant notices tbe attack on the above named place. It ac knowledges their defeat, and says all communica tion with the South has ceased for the present, thb telegraph wires being down. Yesterday was unmarked by any disturbance. Deserters still find their way to our lines in undl mlnlshed numbers. The clouds which have been gradually but steadily mustering overhead,, threat en to break forth Into rain. Already showers have faUen. HIKING ON THE 4tH INSTANT—GENERALS EE3- VETTED. CBy Associated Press. I Hbadquabtbbb Abmv o» the Potomac, Dec. 5. —There Is nothing of Interest to report on the lines this morning. The enemy do not keep up quite such an Incessant firing as they did a short time ago. Quite a fusllade took place last evening In the vioiniir Pf Jerusalem plank road; but it did not last any considerable time nor effeot any important results. A number of brevets have been recently conferred upon officers In this department. Among the last are Major General Meade as major general In the regular army, Brigadier Generals Ingalls and Hunt as major generals of volunteers, and Major Biddle, aid to General Meade, brevetted colonel. These honors have been well merited by the reci pients, and there are others in this army whose names might have been included In this list. SOUTH CAROLINA. THE ENGAGEMENT AT GBAHAMSVILLE—A DRAWN BATTLE ADMITTED ET THE REBELS—UNION RB- INEOROEMENTS ON THB WAV. WABBiNGTON,Deo. B'.—The Savannah Republican or December Ist sayß it mentioned In a previous Is sue that a force of Federals had landed In Broad river, and were advancing on the railroad In the di rection of Grahamsvllle. During the night they (the rebels) had transported an effective force to that point, wblcb, uniting with that already on the gionnd, marohed forward on the 30th of November, nnder the command of General Gustavus Smith, of the Georgia State troops, to meet them. The Re publican says the Federal forces numbered S,OOO men, with sixteen gnns. Smith was attacked at a place called Honey Hill, three miles from Grahams villo. The rebels had only 1,400 muskets and seven guns. The fight lasted until dark. We (the rebel paper rays) repulsed every attack, and finally drove tbe enemy’s right and centre, but tbe left stood unmoved at the close of the action. The rebels received reinforcements, but notwith standing their boasting, admit that It was a drawn battle. - Last night, Nov. SOth, the Republican says, seven or eight transports loaded with troopß were rapidly going np Broad river, which gives assurance that the fight will be renewed to-day, and that Wheeler had managed Kllpatriok with all ease, DEPARTMENT) OP THE GULF. fiiryg-p AT. OAIfBT RAPIDLY BSOOV2SIK(HQSHBB/lL ULLMAN IN COMMAND AT HORGARZIA—HUBDBB OP LIEUT. THATCHES. •*, New Yobb, Deo. 6,—A letter from New Orleans, dated November 26, reoolvea'-vla the Mississippi river, states that rapidly recover ing, and is now able to attend to his official busi ness dally. ' . General Ullman Is In chief oommand of all the forces at Morganzia. mm’s celebrated 2d Massachusetts Battery Is now stationed at IVlorganzia. T.w«mnt A. D. Yaliade, of the 84th United States Infantry (colored), of New York, was killed in an affair of the outposts on the 23d nil. On the 28th of November Acting Lieutenant Thatcher, commanding the gunboat Gazelle, was murdered by $-6 rebels vyhUfi Mhos# on an l/fland below the moutk of ReS rlver, and Bis bo'dy.brutally mangled. The Mississippi river Bas risen eighteen feet at Morganzta In one week. BIACBABS RENNERS. CAPTURE OJT THE KEBBL BTB AH BE VIXEN. Washington, Dee. 6.—The Navy Department has reoelved information of the capture of the new steamer Vixen, hound In with a valuable cargo of arms, liquors, provltlons, &o. She Is said to have been owned by the rebel Government. BIXKEKG OP A BLOCKADE* RTTNNEB. g N*w Yobk, Deo. 6.— The steamer California from Hilton Head via Folly Island on the Sd instant, re ports that a side, wheel blockade, runner was sunk In Charleston Harbor on the night of the Art* Inst, by our gunboats. The oaptaln and pilot effifped, but the rest of the orew'were captured, CTKTBAI AND SOUTH AMERICA. AIIVTGES HROXC PANAMA—THB TBANSIT Off THE prisoners Acnoss ■ the isthmus ncrirsKn — THE SOUTH AMBBIOAN OONGRESS AT LIMA—THE SPANISH- PEBUVTAM QUESTION. " New York, Deo. 6.— The steamer Costa Bloa, from Asplnwall on tho 28th, has arrived, with *380,000 In specie., She reports seeing the brig Arabella affllreon Maraguaha Island and the crew ashore hi.tents. The vessel could not be gotten off. ' ■ • Nothing further has transpired relatival to the' eonsplraoy-to capture the Central American and California steamers. , The prisoners are still aboard the Danoaster, the Government of the State of Panama havtpg posi tively refused to pass them over the Isthmus. The captain or the Danoaster and a boat ! s orew of fourteen men left on the Guatemala on the 256 h. for Central Amerloah ports, In expectation of.«»P-,i turing seme of the accomplices of the pirates known to be on the coast. The steamer Chill, from tho South Paoipc coast, brought to Panama 2,200 bales of cotton for ship ment to Diverpool, principally from Perq, j The ‘ ship John Cottle was destroyed; ty flre In Valparaiso Bay. Her cargo was 2,500. tons of guano. j Advices from Feru state that no steps MO. been taken towards a settlement of the trcwbles with. Spain, " T.'’ The South American'Congress had mrt'qt Lima, andltsfirstmove'was to senda oommisaoi to the Chfnobas to request Admiral Pinzon to glje up tho occupation of the islands, on the ground seizure had been disapproved by the o|blnet at Madrid, Pinson’s reply his not Seen made puMic, but it was believed he had declined. r Fenian Biot at Toronto, j Tobonto, O. "W., Dec; a.—The excitement in tre gard to the Fenian Brotherhood is revived! and Be coming more and more Intensified. r , Last night an Orange Dodge was open and all Its property destroyed by the Fenians., Some fine portraits of her Majesty Q.ueea ivcroi dlsgracetaliy mutilated. , The excitement to-day is running- high, aid fears of violence are entertained. " v ' --■ ; REPORT OP THE SECRETARY OP THE TREASURY. . In presenting to Congress his annual report in the stale of the financee,ln obedience to thereqnireiMntS of law, the Secretary of the Treasury feele that while there is no occasion to dietrust the ability of people of the United States to bear tic great ihcreae ng bur dens imposed upon them hy the arduous and i oidhged “struggle for national existence in which the are en gaged, there is, nevertheless, much in the Lhaneial coudition of the Qovemmeut which rsquireTcarefalv and anxious consideration. . Among the serious duties devolved upon im, the Secretary recognizes a fuU and clear expoeitlc i or that . condition ae.iirst in importance, iu order that the wis dom of Congieee may provide a remedy forWistlng evHe, and guard against the occurrence or"simnsr evils m the ir.tine. The Secretary’s assumption of mice was so nearly coincident with the commencameit of the present neca! year that be wonld be naturally Impelled to begUbby stating the exact condition of the freMnry upon that day. Before proceeding to do So, botfCver. a brief review of tbe financial measures adonted trace the outbreak of the rebellion, and of tiSlr-operation and enter, may not be without value in sndeavofiig to ar rive at just con elutions with regard to tba fubtre,- fcOn tbe fourth day of March, A. D. 1881? thStaatiOnaL debt was eomnaiaiively so inconsiderable as firdly to deserve tbe name. Accustomed to a pros- Parity before unexampled in tbe history of the/nation** the people of the United States had grown rich and powerful without being conscious of nationaLburdens, and equally osconßcionß of their own vast and increas ing: ability to sustain a weight which, eouU it have been anticipated,might have seemed altoiefchsr,beyond their strength, Unaccustomed for a long bourse?"of. years to great national efforts, it was fortddate that their power of endurance should be tested only by de • giees, as the struggle which Providence had prepared lor them developedgits vast proportioh.s t'and.theineces sity oi great and long-continued effort became appa* rent. __ Bad. it been then foreseen that what was be lieved to be a contest for months was to for years, and that hundreds of million* ofpubUc debt would be swollen Into thousands of mmloiis before the close of that conflict, it,,may. well be doubted w he the r, ignorant as they were of their own tinmens* resources, the people might not have shrunk appalled from an un dertaking which contemplated a sacrifice sofar exceed ing all former experience. - T* In his fliat report to Congress, made on the.4th day of July , 1861, my predecessor estimated the whole amount fo i^ e sl r Tl ceof fiscal year ending Jane SO, 1862, at $318,519,581.87. To meet, this anticipated ex penditure, Congress, hyanactapprovfld-Jtily 17,1861, authorized a loan of $370,000,000, -which, jaalfch the ordi nary revenues, was considered ad an&lepfGvision for the exigencies of. tee year. By ait act approved August 5, IS6I, Congress further authonzed-a direct lax of twenty millions, and a tax of three per centum bn the excess of ail .incomes oyer eight hundred dollars petfannum. It was EC* anticipated, however, .that any, revenue derived from these lan- mennomsu he available Within the year. . “ -- T ' Experience proved that the estimate of fbe Secretary, though founded upon what seamed to be reliable data, was altogether inadequate, and iu his report of Betoni her 9,1661, he was compelled/to ask CoDgresS-to provide for aprobabledeficiencyxf#2iS,9o4,-42?rt>2 In theagme report he estimated the expenditures of the fiscal year' commencing on the Ist day of July, 1862, at $475,321, - 215,41. , ■ ! , ■ . On the 30th of December, 1861, and soon afterwards. ' prfaiTons to meettnypiihlie'gross' £a*eed various laws, which need only be alluded to. i had become manifest that, while much largest portion, of the amount required must- be provided by loans income form, resort must be,hi&o awider and more stringent taxation in bwer topWlervethe credit of the Government.- Accordingly, the-act of July Ist, 1862. called the Internal Bgvenue Lvcr, wa*rpa«sed, pro viding for a levy of duties on varfoW domestic manu factures, upon trades and occupations* and also provid ing a system of stamp income and other duties. This important measure, it was hoped, would, in connec tion with the duties on imports and the sums de rived from other sources, furnish, sueh a pro portion of the revenue needed as would place the national credit upon a stable foundation, through the evidence thus afforded of a readiness to impose on the present a reasonable share of public bnrdenr, leaving to the future no more than in justice it ought to bear. If these hopes were not realised, the disappoint ment was perhaps imputable, in a great degree, to the fast that tbe system adopted was one.to which the people had not been accustomed, thaiTthe machinery, was complicated, the officers who /were to execute it inexperienced, and that-sufficient' allowance was sot made for the important element, of time, which, alone can give to any such system the requisite efficiency. * with a like view* tomcrease the revenue and to sus tain .our own industry under 4h* burden imposed by the im ernalj'eyenue law* act approved July 14,1562, largely increased thraiees on -imports It was justly believed that theee measures could hardly fail to inspire confidence in the ability and-purpose of the nation to meet all its obligations in the present and the future. The necessities of the treasury wei e, how ever, immediate. To raise money inlarge amirantß by taxation, and even by loans, reouires more time than can always be afforded with large armies in the field and great, navies afloat. The-demands of war are imperative, and cannot await J th«?6low process of financial negotiations. To meet a demand thus urgent. Congress, by acts of February 25th and July 11th,*1862, saw fit io authorize the emission of United States notes to the. amount, including $60,500,000 of treasury, notes, previously authorized, which were ’to be re deemed and cancelled, of $BOO, as 'a tubstitute for com, dSciaring them a legal-tender, for detts, public and private, and clothing.them with iill the [requisites of curzen cy. These notes were convertible, it the will of the holder, into bonds of 4ke United States, paying interest at six per centum, semi-signally, jb coin, to secure which the revenue from customs, aißi payable in coin, was specially pledged. Toe same scfcbr Febru ary 25th, 1862, authorizea the issue of bofids to the amount of S6CO,COO*CCfI t increased subseqientiy to $511,000,000, receemable after five years, axil payable in twenty years from date. , jßGtwiinstanding the ample provision suppfsed to be made by Congress for tbe expenditures of the tscal year ending on the 30th of June, 1863; the report of the Seere . tary, submitted on the 4th of December, 1862,Bhowed a deficiency for the current year of $276,912,61566, while the estimated amount of. expenditures over receipts from ordinary sourtes for the succeeding, year was $620,388.166.66. To provide for the aggregtte of these amounts Congreis, by the act approved Hatch 3,1863, authorized a loan of three hundred'millions jor the then next fiscal year. By the second section of tie same act the Secretary was authorized to issue, as apart of the said loan, [5400,000,000 in amount of Treasury notes, bearing interest at a ratenotexceeding eixtyber centum per annum, payable in lawfal money, wMch notes, payable at periods expressed on their flee, might be made a legal tender at their face value. Hr the third cection one hundred and fifty millions in (amount of Dnited Mates notes, of alike character with those pre viously issued under the provisions of folmer acts, Were authorized as a part of said loau. It will be seen that by the several acts of Congress referred to, Go vernment paper, as a substitute for coin; uxHer the re spective designations ofU.S. Notes and Treamry Notes, might be issued to the amount of eight hundred and fifty millions of dollars, viz: U 8. Notes, riot bearing interest, to the amount of $460,000,000, bd of which fifty millions were to be held in reservelfor the re demption of temporary deposits, and tobereplaced as soon as possible, thus leaving the whole tmount in tended for circulation but $460,060,000, and *400,000,000 of Treasury Notes, bearing interest, and which it was hoped and Mleved w<?£]d pot remgg as they could be made a legil tender only fol.tlielr face value without interest. I In the preceding enumeration of the sereral acts paßsed by Congress with a view to provide the large means required to meet annualezpendituresioa period Including the fiscal year 1864, no reference has been made to several auxiliary measures designal to meet the exigencies of the hour, but neither enlarging nor diminishing the amount required, and serving no other purpose than a mere temporary resource. OFinch was tbe act of March let, 1862, authorizing the iesae of cer tificates of Indebtedness, payable one year oxless after date, with six per cent, interest, and the several acts authorizing tbe Secretary to receive depofitt at the Treasury for a period of not less than, thirty days, to be repaid at ten days 1 notice. Of a somewhit similar character, from its necessirily limited amount, is the fractional currency authorized by the 4th section of the act of March 3d. 1563. s t The object of the Secretary in calling attention to these various lets of Congress, in connection with the estimates of his predecessor, is to show* Ist.! The utter impossibility in times like the present of ascertaining accurately toe prospective demauds.upon the Treasury; estimates on the most liberal scale may .be* as they have* been, found inadequate. Hence arisajarge deflclencier, occasioned by an unexpected increase ofmtiitary force in the first plaee, and by a riae of prices for material invariably consequent upon militaiy operations con ducted on a gigantic scale, even if the currency could be maintained In a sound and natural condition. Secondly. The difficulty of fixing upon any,policy not subject to the contingencies of tbehour. » It is, In the Secretary’s judgment, not only difficult, but impossible, to apply fixed rules to a condition of affairs constantly changing, or to meet contingencies which no human wisdom can foresee, hy a steady ap plication of general laws, especially in a Government, and with a people where publU opinion is tha-control ling element, and that opinion not undet* the direc tion of those who may happen to administer public affairs. Accordingly, it has been seen that thb aitempt to conduct financial operations upon so immense a scale upon a specie basis soon proved impracticable. Resort to seme othtr species of currency of a national character became unavoidable, as was unanswerably demonstrated by my predecessor in lia report of De cember, 1862. fraught with, danger as Government paper has almost invariably proved, there was, under tbe circumstances, no other resource. Of course the danger increases with enlarged demands upon, the Treasury, growing out of increased expenditures, a rise or prices occasioned by an increase oftaxation on arti cles of consumption, the withdrawal of labor from pro ductive pursuits, accompanied by an aggravated de mand for products and material incident to a state of ■ war. The problem to be solved is how to mitigate the evil if it cannot be wholly avoided. If loans can be nego tiated at reasonable rates, and the Treasury can be thus kept in a condition to meet current demands, it hi not difficult to restrain the circulation of Government pa per within safe limits. But this, not always certain in a time of peace* though with abundant resources, it al ways should be, is often found impossible when war upon a large scale and long continued has oreated dis trust. Bence it has followed that under the acts re ferred to our bonds have assumed various forms, to suit what was supposed to be the choice of lenders. Our notes have shown a similar diversity of character, while it has been found impossible to avoid the neeet sity of using them to an extent which could not bfti ag gravate the troubles incident to the necessities of our forced to resort to the issue of paper for tire time, the idea of a specie basis was not lost sight of, ss tbe payment of interest on long loans in coin was amply secured. And though, in several of the acts au thorizing the issue of bonds at long periods, payment of the principal at maturity to coin is not specifically provided* the omission, His believed, was accidental, ae there could have been no intention to make a dis tinction between the different classes of *ecurities in this regard. It is respectfully commended to remove all doubt upon this point by proper legislation. Al though the wisdom of thus securing ih* payment of to* teieston bonds in coin has been questioned, aod the Pledge of tbe receipts from customs, to be collected m coin for that purpose, has, perhaps,, facilitated the ope rations of those disposed to enhance the gold for speculative purposes, the Secretary irof the opinion that these measures were not only wise, but necessary, at:the time, and greatly aided in sustaining public ° for the preceding, firni year bo W. D. MoG-. ellgbtlv exceeded ibe estbriatesof tha Department, th%t at tie lest sf*ei«n.of Congress it was not consicored ne cfes-ary io Increase the amount autnorized to be borrow ed by existing laws. Experience has shown,]however, thateome char-gesof form were advisab e. By an act approved March 8, 1864, antnority was given to the Se retary to issue bonds to the amount of $2C0,0 O f OOO. in lieu of so rcuch of the loan authorized by the act of March 8,166 i. redeemable after any ported not loss than five years, and payable not more Gun forty years from date, At a subs* quect period of the session, June 30th, 1E64, tbe authority conferred by tbe first section, of tho aet of March 3. 1563, was repealed, except so far as it affected en amount of seventy-five millions then advertised.'' and power was given to bor row four hundred millions of dollars' on bond* redeemable after five jvars, and payable not more than forty years from date. By the ee coxd sfct oc of the same act authority was conferred to i£Bu« in lb u of the same amount of bonds two hundred millions In Treasury notes which might be made legal render at their face vain-, bearing intercut at a rate not exceeding seven and three-tenths per cent., poyable la lawful money, and convertible at the pleasure of the neoietary, into bonds issued under the authority of said act. - Secretary was further empowered to substitute issued under former acts, an equal amount of botes, *uca eg were thereto authorized. A table is appended to this report, showing the amounts issued under the federal acts Jheretobefore referred to, to the beginptog of the present fiscal year, from which it appears that by tbe Jaws in force on that day, the .Secretary had authority to borrow, on the credit of the United States, the pmount* following, viz« 1- Under the act of March 3,1863, so much of seVenty five millions advertised previous to June 30, 1834, as had not been awarded to bidders, viz: thirty-two mil lions four hundred and fifty'nine thousand seven huh.- dredtioUars. y 2.' Under tfce act of March 3, 1864, so much as bad not been subscribed for and paid into the Treasury, viz: one hundred and twenty seven millions six hundred and three thousand fire hundred an I twenty dollars. 3. Under the act oi June 80, 1884. tour hundred mil lion dollars. 4. Amount of treasury notes issued under former ectr, which had been redeemed and cancelled, and which, tbe Secretary was authorized to replace by notes keyed undertbe act of June 30,1864, sixty two.mtiMons onfe hundifid and ninety-one thousand four hundred dcllars. . ' $ lie total available refpcrcor, under the laws autho rizing Joans, six hundred and twenty two millions, two hundred end eighty four thousand.* six hundred and twenty-five dollars. To this tußy he added tbo actual balance in the Trea sury, July 1, 1864, $18,812,688.71; total. $641,127,213.71. A fciaiemeiit of the receipts and expenditures eati-. muted ard actual for th* ye-r ending June 30, 3854, will show how tbi* balance is obtained, and the increase of tire public debt during the year, viz: B< Estimated, Actual. From Customs--......... $72.fi6?,H8 42 $102,316,15*92 From Lauds...-*. 4*,182 02 683,*32 29 From inifcceJlaneous....... 6,641,*42 04 47,M1,4-<8 10 From directi0n............ t ,v;‘Z'ZS”IZ **<•. 57,590,7i3'59 .Nfc.WlJiM 10 From internal revenue T0ta1.....-* $15*,23°,486 H $i60,63’,?17 ii Add balance July 1, 1863.. 6,329,044 21 5,329,044 21 Aggregate,, $161,668,50) £5 $265,061,761 63 Eitimahia receipts from leans 604,000,000 00 618,114,881 92 . -Total.,.*-—........... $766,668,600 35 $884,076,646 67 Expendhulpe*, Fcrr civil semes... $34,267,811 62 $27;5 ft 5,699 46 TensionF&udlPfii&nß.**.**- 7,8K>,314 81 7,617,5*30 97 W« Department* 886,470 611 1L 690,791 B*2 97 Favy Dej arriD-nt.,... 112 973.1£6 €0 , 87,733,204 77 Inteieetoadebt.... 60,165,136 %3 53,685,421 69 Total. ....$1,C99,731,060 42 $885,234,08785 Deetocteetimatedbatance overdrawn 35,000,000 00 $749,731,960 42 Estimated ba1ance........ $5,836,539 83 $18,842,558 71 From actual receipts fromloau-.,...... s6lB,m,eBi-ri Becuct balance on hand Julyl, 1§64,.,,, 16,^55871 from loans ap plied to rerviceof year, ending June SO, K 64............. .. $599,272,826 21 The statement may be more intelligible In another form, sb follows: Actual expenditures for fiscal year— $865 234,037 86, Beduct receipts from ordinary sources, and balance from preceding year...... 565,961,761 65 Balance provided from loans applied to service of the year..... 699,272,326 21 The amount derived from loans specifically stated is as follows, viz: . „ : From fractional currency .exceeding amount redeemed.-. $2,702,421 25 Five* twenty bonds, act of February 2f.rtu 1862.• ••-.«••.... 321.657,283 41 Six per cent, bonds, act of July 17th. 1661.. 30,565,875 45 Ten-forty bonds, act of March 3d, 1864. 73,337,690 00 Twenty, years six'per cents., act of MarchjS, 1863 - 42,141,771 05 united States notes, act of February 26th, 1662 43,859,821 46 One>year five-per cent, notes, act of & March 3d, 44,520,06000 Two-? ears five- per cent, notes, act of March 3d, 1663. 152,664,890 00 Three-y<aTB six-per cert., compound >*inteiesfc notes,.... 15,000,000 00 Certificates of indebtedness exceeding amount redeemed. 4,Q98,7£8 35 Whole amount $730,642,410 97 of which amount there was applied to payment of public debt $117,627,626 05. which deducted, leaves applicable to expenditure $618,114,884 92 Deduct balance July Ist, 1864, $18,842,568 71. Balance applied to service of the year, $599 272,326 21. The public debt, as stated by my predecessor in his report of Becember 10th, 1863, was $i,t98,713,181 57. To this should be added the amount paid into the treasury previous to July Ist, I£6 ? , for which e\ idencea of debt were subsequently issued, $23,763,423 20. Amount of debt July Ist, 1803, $1,122;- 675,6 i 467 cents. Add the amount of loans applied to actual expenditures, as above, and balance in the treasury July Ist, 1834, $6lB 114,884 92 cents, it gives the amount of public debt July Ist, 1884, $1,740,690.489 49 cents. The' very large comparative receipts from mis cellaneous sources require explanation They are ac counted for as follows, vis: From captured and ab&n- ' doned property, $2,146,715 09; premium on gold shipped from San Francisco to London,- $2,799,920 64 cents ; sales of prizes due to captors, $4,988 111 42.conts; internal and coastwise intercourse fees, $6, 6®, 487 20 cents; premium on sales of gold coin, 16,498,976 49 cents \ commutation money, $1,263,896 16 cents; all other sources, $3,716,- 542 11. Total, $47,5U,448 30.. . , , . The Secretary is of the opinion that not over iwanty five millions can be safely calculated upon as likely to accrue from similar sources during the current year. The item of premium on gold shipped from Ban Fran cisco to London may also require further explanation. In March ,1863. it became necessary to transmit a con siderable amount of inn d s*to London for a special pur pose, for which an appropriation had been made by Congress, and it was thought advisable to deposit a certain amount of our securities with an eminent London banker against which bills might be drawn. Five-twenty bonds to the amount of ten mil lion were accordingly placed in the hands of tiro distinguished citizens, to whose care the 'nego tiations were committed. The negotiations failed, and six of the. ten millions were returned to the treasury undisposed of. It was thought advisable that the amount foor milllons BiiOoid remain, and tbatex change should he drawn against it, and the bonds dis ncsed-of abroad if aJavorablemark*. should be found. It appears, however, that very nearly this amount ef issue is in excess of the five hundred and eleven mil lions authoiized bv existing laws, $510,756,900 haying been disposed of. The act of Jane 30,1864. authorizes the Secretary to dispose of any bonds known as five twenties remaining unsold. ~ , It is at-least questionable whether, by this clause, power is conferred to c ispose of an amount beyond that otherwise,- they may be cancelled. PAphwm>Aftwi«g been drawn, it became necessary to provide funds to meet the bills at maturity, which was accomplished by shipments of gold from California. The expenditures for the current fiscal year were estimated in the last re port of the Secretary as follows: 1 - Estimated balance of former appropriations, $350,* 000,COO; for the Civil 5ervice,.527,973,194.81; for pan sier s and Indians, $9,683,804.73; for the war debt. $436,- 204,127,77; for the Davy Department, $1*2,618,785.40; for interest on the public debt, $85,307,637.15. Aggre gate, $1,103,815,089.86. Deducting, as likely to remain unexpended on the SOth of June, 1864, $400,000,003. Leav og to be provided fo!r, B6; and the re ceipts from ordinary sources were estimated in the ag sregdte at $706,836,639.93; leaving to be provided by loans $544,978,543.88. This estimate, like all others of a similar character, was. necessarily based on past experience with regard to unexpended balances, and upon estimates from the different departments, which, In a time of war, must be liable, to great uncertainty. Additional information enables me to state the probable expenditures, with a nearer approach to accuracy, as corrected, by including so much of the actual balance of lormer appropriations as is liable to be used during the year, the'aaditional amounts called for at the lari session of Congress to meet probable deficiencies, an d by reducing the balance of unexpended appropriations at the end of the year as from amountsexpinfled during the first quarter would seem necessary. The estimate is as follows, viz: Actual unexpended balances,as above* •*• $380,387,050 23 •: For the War Department. 625,945,74165 For the Kavy Department.., 110,047,459 96 For the Civil 5ervice*.•»*.•«••.21,796,672 50 For Pensions and 1ndian5.6,590,089 12 Forindefinite Appropriations?.. 9,162,00711 Total. ................ .....*1,153,918,920 67 Add Interest on the public debt.......... 9i, 810,216 IS -Amount"•• ••• 245,729,135 75 .Add public debt matured and maturing during the year, viz; Certificates of Indebtedness 140,725,000 00 TeSas debt 214,900,000 00 Loan of 184% $1§6,805.45; treasury notes, under act of March 2, 1863, and prior thereto* $278,511.64. Total, $1- 409,(82,465.84. The amount of certificates outstanding on the Ist of November, 3864, was $238,593,C00 TMs being a much larger amount than ihe market ought to bear,it would not be wise to calculate upon those securities as available for the service of the year bejond $75,000,000. The available probable resources for the current year may then be stated as follows: From Cu5t0m5.......—".................. $70,271,091 93 Fnmlandß. 642,185 S 4 From Internal Eovenue- 219,662,899 92 From MiscelJanoorut sources 24,020,171 44 From Street Tax. 16,079 86 From Certificates of Indebtedness..,,...,. 75.C00.060 00 Total... .‘5419,951,386 02 To tfcto eli (mid be added: Provable unexpended balances. June 30, I€oo. . *...,.,.5350,000,000 CO Balance ofcaeh, July 1,1864.............. 18,842,668 71 Totalmoniccs-'.*.*.»***.............5788,864,947 73 Which .deducted from the expenditures,leaves a balance to be provided for by loan of 20,727,508.11, if, how ever, an additional sum of $50,000,000 should be re alized, se proposed by the Commissioner, from internal duties, the amount to be raised by loans would be $570,- 727,508.11, From till, should lie dedusted the public debt redeemed, $88,363,320.09 Leaving as increase of the pub! icoebt at the close of the year, $482,374, IBS. 02. [Note.—ln addition to the liabilities before stated, it may be mentioned that the seven* thirty notes (so called), the issue of 1803, and the one-year five per cent, legal* tenders, amounting to $43,685,000, also become pay able during the current year, The conversion of the for mer being provided for, however, by the act of August sth, 1861, and the latter by a power of substitution un der the act of June 30th, 1864, they have been excluded from the estimate. The amount of seven-thirty notes redeemed in mosey to November Ist, ISQ4, is-only $63,600, charged to current expenditure, while the whole amount converted to that date is $125,864,900.3 " Stated in the usuat form, by taking the actual receipts and expenditures of the first quarter as a distinct basis of calculation, the result is the same, viz: For the first quarter of the current year, ending, September 30th, 1864, the actual receipts shown by the boohs of the Trea sury were as follows: . .. • ... From customs ~«♦*«♦ .$19,271,09198 From 1aud5.342,185 84 From direct tax.....*.**. .*.*,***....* 16,079 86 Fiom interna1ievenue...................... 46,662,859 92 From miscellaneous 50urce5............... 9,020,171 44 Total receipts •*..*♦.♦»».•»*«•**«•• $76,212.389X2 A 0 d actual balance in Treasury, July 12fch, „• - . 1864 .. 18,842,568 71 Seceipts from all sources, excepting loans, $94,054,- 947.78. For the three remaining quarters, ending 30th of June, 1866, the estimate is: „„ Prom Customs...ooo 00 From Internal 8evenu*.....................203,000,000 00 From Lands «... 300,000 00 From Miscellaneous Sources.*♦— 15,000,000 00 Total*. ...*5269,300,000 00 Total receipts from ordinary sources, actual and esti mated, with balanco ou hand July Ist, 1864, $363,354,- 9 -*2the expenditures for the first quarter, ending Sept. 801 b, 1864, were as follows, viz. : For civil service .....@,717,422 51 Forpcneicns and Indians 4,835,179 31 For War Department .'••••286,200,788 52 For Saw Department 33,292,916 49 For interest on public debt. 19,921,064 48 Total, exclusive of principal of public . ' debt............. 5353,061,851 31 ■ For the three remaining quarters the estimated ex penditures baaed upon appropriations and estimated deficiencies are: . ' For the civil service....**.*«♦*»•**•♦*«#♦ $26,852,489 47 For pensions and Indians. 72 For War Department ~* 677,479,384 39 For Navy Department.. 109,929,644 16 For interest on public debt.**. 71,889,160 70 Total of expenditures, actual and eefci- nj „ Bnn __ mated........ $45,729,136 75 These estimates include all unexpended appropria tions from former years, and there may be deducted aa & probable unexpended balance at the close of the year, $360,000,000, leaving the total amount, actual and esti mated. for the current year, $895,729,135.75. Deduct from the total of expenditures the total of receipts, ac tual and estimated, there will remain $532,874,188,02. If Congress ihould adopt the measures for Increasing the interdfel revenue at an early day,, the Secretary believes there may be added to . the receipts from that source s6o,ooo,Cota which, being deducted, there would remain tone provided $482,874,188.02. , . . .. The public debt matured and maturing during the year ief as before stated, $163,363,220.09? from this may be deducted,as likely to beproyided bynew certificates of indebtedness $75,000,000. Add to this sum 320. C 9 to the baUnc* toJbe provided « WgMwwL? f the year, viz.: $482,374.18803, it makes the whole amount to be provided from loans $5p,727,M8. U, but as this would include so the existing public debt as would be redeemed within the year, viz,: $88,353,320.09* tnis sum is to be »issi'xa.r»'g.“SS7(7fi lie debt on iuly Ist, 1855, *2,223,084,777.61. subject to »nehlnc«aie as may be occasioned should Congress not provide for additionalrevenue.orshoiildthe income from ordinary source, fall Bhort or the estimates sub mitted. Any estimate which may be made of the pro bable receipts and expenditures for the n.X',fiscal year mimtneeessarilybe liable to still greater uncertainty. TUe remark applies more particularly to expenditure, for while the existing laws remain unchanged, the amount of revenue may be calculated with reasonable certainty. It is impossible to anticipate what the exi nancies of war may .require. Onitbe one band, this may call for increased effort, ■ bn the other it may be confidently hoped that the great struggle is near its termination, and tbal consequently the estimate now submitted will prove far. beyond the wants of the year. While any doubt remaioe. how ever. It would be unsafe to assume any other burn of calculation Burn one predicated upon the-existing 2&jsfer^uS?.n?a 4 Js^? JTP,»oO,[fd; internal duties, HO: miscellauerua ftonr^a* fcf96,(Xaooo. The expenditures are nM. lows* Balance of unexpend**d spnroprlatfonfl, *»w Ow, ocr*? thTo 8 i& In dims, 804.406.030 «; the War Department, fC8,1BI.11: Haey Department. WZ.218.8M 18, rate rest on the public debt, $127,000,000. Aggregate, from this aggregate there, mayJ>« p.d acted a* lifcely to reuaa’Q ttnoxpfoded at tbe ctos® of the *earsSsfi,ooe,C«). Total, SSII2 >0.0fi5.17. estimated leoipts from ordl- ary source? 1 , a.i90,(00,0w, an."- there will remain to be provided for oy loan $322,m0C0.i7. To this Should be adtkd for*ea?mp ti i )u of excess *t certificates of indebtoess $47,365/00, mak ing tfee who e amotjat to be provided for by Imas $468,921,cr0,17. penning the correctness of these eeti* mates, the whole doit on the first day cf duly. 1886, Wiuidfbe f<.nnd, by adding the foregoing amount ot $452,266. COP. 17 to tne estimated debt on July Ist, 1865, #x528,M54»G77.1P: giving $2,643,320,652.68 as the amount or the debt ai tbe close of the ct-xt fiscal year. This calculation s made on the same basis of receipts as that assumed for the current year. . It Ip quite proba ble, in the judgment of the Commissioner ,*>f Internal Revenue, that $900,000,000 may be received in another year from that source, without theaddlt onal legislation suggested by Mm. Should this supposition be verified, and the new taxes proposed for this year be laid and continued, an additional fifty millions might be ovpect ed from internal revenue. Tse Secretary has, however, thought it wiser to name $300,660,000 as all that would prtbahly be realised. It will be observed that the actual receipts from ordi nary sources for the lai-t fiscal year varied materially from the estimates, particularly from, customs aud in ternal revenue, This variation is imputable/ in great part, to the legislation of Congress at its last session, Increasing: largely the rate of duty on foreign and domes tic articles. It is apprehended, however, that similar results wi.*l not follow for the residue of the present year in both these, particulars. The increase of duty on. im ports, under the act of June 89, 1864, has already the ef feetto decrease importations to a considerable extent, and the same effect will ba likely to continue; eo that, estimating the receipts of the three remaining quarters by those of the first, in the light of former experience, it will sot be safe to calculate up *u re venue from customs much exceeding $76,600,(100 for the current year. In tbe judgment of the Secretary this disadvantage, in a financin' point of view, is more than counterbalanced by tbe fetimulus afforded to domestic industry,and, hy tbe consequent Increased revesue from that source and from internal revenue, a different and far more favorable result may be anticipated Ik will bani:dcedthat..inttend of $77,599,7(8 69, there was re ceived fi ore-this source, in the past yeat $U*8.26C,320. 69 under the same law, wbiotn in ten months of the preceding year, yielded only $37,646,787 95. The new law, which went into operation on tbe Ist of July last, largely increasing these duties, although it will probably fail to produce the amount of revenue hoped for, may, if not materially changed, together with the special income tax imposed by the joint retortion of July 2, 1864, be safely estimated to produce.tbc sum of $260,000,GC0, should the business of tbe country be ordinarily prosperous. The same cause which, under preceding laws, produced so large au in crease in the second' year w.ould'be'likely to have a similar effect to some extent under the new, so that at least the amount, $250,000,0(0* may be ex* peeled from it in another without the aid of a special income tax. Rut this amount is not, and ought not to .b?, satisfactory. Three hundred mi lions at least should be realized fro® internal duties. -It is for Congress ti eekct the resourced and devise the modes In which this most desirable result can be obtained, and tbe report of tbe ComxnibAic ner oi Internal Revenue is referred to for his views oo this important point, as we 1 l as for many valuable suggestions having reference to the same general subject. The Secretary will venture, with great deference, to remark that, m his judgment, a con-mission properly constituted for the purpose of inquiring as toprofilable - sources of revenue, and devising improvements in the medes of its collection, might. In a country of such va ried production. and among a people of each diverse industrial pur?)iits, elicit much which " rTCuAvi materially assist tne deiioeratiohs of Congress,, and lighten it* labors upon a subject so new to legisla tive experience on this continent. As, however, a re solutkn pointing to this end dicLaot meet the approval of Cotgre-B at its latfc session, W* Secretary did. net feel authorized to institute an inquiry through, such instru mentality, and he has been unable to adopt other effec tive measures for the same puxi>6*6. After much reflection, and a careful revision of MB opinion?, heretofore expressed 1n another place, to wMch, under the circumstances, he mar be pardoned for referring, the Secretary feels obliged to say that he sees no other resource for raising the additional revenae so necessary for the material credit than those pointed out by the Commissioner. He is aware of the great difficulties attending the collection of the : dudes pro posed, and feels al; the force of tbe objections hereto fore made to their imposition. Be nevertheless believes that a tax on tobacco, in ihe leaf or unmanu r astored, if it can be enforced, is the ons mode by which a duty on that article can be collected fairly and* equally, and through which an adequate amount of revenue can be obtained from it. He believes, also, that although a tax on sales Would probably fail of collection to some extent, yet on apply ing to it stringent roles requiring frequent periodical returns, verified by oath, coupled with tbe power to compel an exhibit of books of account*, it might be come a very large and imp? riant item of revenue. The Secretary would further suggest whether the in come tax should not be collected upon all, without ex emption. At the law stands, it opens the door to innu merable frauds, and in a young and growing country the vast majority of incomes are small, while all parti cipate alike in the blessings of good government. The adoption of a scale augmenting the rate of taxa tion upon incomes as they rise in amount, though unequal in one sense, cannot be considered oppressive or .unjust, inasmuch as ihe ability to pay increase) in much more arithmetical proportion as the amount of income exceeds the limit of reasonable necessity. From the results of experience, as well as from all ihe information received, the Secretary is well con vinced that much revenue fails to be collected through an imperfect execution or the law, and more through a fraudulent evasion of its provisions. Time and effort will, it is hoped, remedy these evils in. a great degree, and the confident expectations of those who framed it be realized. In the meantime, no effort should be Bpar&d to perfectit as faraß possible, and no experiment to increase its efficiency, of which there is a reasonable hope of succese, should be left untried. In connection with the subject of increased taxation, and the necessity of providing additional revenue from ordinary sources, the Secretary cannot but eall the at tention of Congress to our public domain, and mire etpecially to that portion of it abounding in the precious and other metal?, which by the policy of the Govern ment has been preserved to the nation. He can add . little, however, on these points to what has been here tofore so ably set-forth by his predecessor. The agri cultural region has, through the operation of the ho me stead law, almost ceased to afford a direct revenue. Whatever might be the opinions of the Secretary as to the good effects of this law?, either in a State or national point of view, it is not probable.that any expression of these opinions would tend to effect any material change or modification. Possibly;. had the struggle In which the nation is now engaged bo?n foreseen, or even apprehended, Congrees\might have deemed it prudent not io adopt a system which renders so large a portion of the public domain unavailable, as a basis of credit, either by way of a pledge of its proceeds, for an appropriation of those proceeds permanently ,to the creation of a sinking fund, for the ultimate redemption of the public debt. In either aspectihat domain might have been made to render material aid, but it may still fairly be questioned whether, and to what an extent, such aid hag not been afforded by the inducements offered to an immigration which is dailyungmentingthe resources and power of the Republic; With regard to its mix erallands the question Is freed from this embar rassment. These are still the. property of the nation, and may be disposed of as Congress shall determine. That they should yield a revenue to the owner, indepsnd * ent of the collateral advantages c eiived from individual, enterprise in extracting the precious metal s wo old seem io admit of so dispute. On the one hand it may be said' that to rail them absolutely Ibtopart wttkanuneqtialled and inexhaustible source of wealth and power, .the con- - trol of~whicb-sbonldniw»ifir«m^,, s « ™ hands dtiMb *. other, that all atfemnic EHnerto to realize any considerable amount of revenue from any System of routs have proved unsuccessful. It is to be hoped that'Congress may be able to devise some mode by which these lands may be made available to an ex tent in some just measure proportionate to their yearly production. The question is one involving a knowledge of the subject which the Secretary doss not now possess, and requiring an amount of study and reflection which thus far he has been unable to bestow. The attention of Congress is invited to a paper on that subject pre pared by direction of the Secretary, which accompanies this report, and will repay an attentive perusal. The act of February2s, 1862, provides that the coin received for duties and imports shall, after paying interest on bonds and notes, be appropriated to tbe purchase of one per centum or the public debt, to be set apart, with its accruing interest, as a sinking fand, as the Secretary might, from time to time, direct. All ex perience has proved that in a time of war, when ex penditures must largely exceed receipts from ordinary sources, and large sums are borrowed in each year, the attempt to establish a sinking fund invariably fails. It is in fact simply borrowing lo lend again.. Fdr this reason no attempt to carry out this provision has yet been made, As the time is approaching, however, ' when the present unnatural condition of affairs may be expected to terminate, it is well to consider whether some legislation postponing for a time the operation of the provision 'referred to and designating a board of officers as Commissioners of the sinking fund, uuder proper regulations, may not be advisable, their duties to commence at such time as the Secretary of the Treasury may designate, - - .-Such legislation would, at least, show that the provi sion for a sinking fond is not intended to remain a ‘ * dead letter ’ ’ upon the statute book, when peace shall return, and with it the power to render that provision effective. Should any further aid be neceesary, the Se cretary would respectfully suggest whether such in come as may be received from the public domain from sales or In the shape of -rents or royalty may .not be be nehcially appropriated to the same purpose. From the preceding statements, it appears that, ex clusive of the receipts from ordinary sources, ; the amounts following are to be provided, viz: For the fis cal year ending June 306 b, 1885, $570,727, JOS. 11; for the fiscal year ending lone 30th, 1866, $469,621,- 005.17. Total, $1,040,3*8,513 28. Deduct the amount now authorized, and the balance is the Trea sury, July Ist, 1864, $560,063,188.02, it leaves a balance to be provided for, by additional legisla tion of $480,285,825.26, It will be observed that this balance is predicated upon contingencies which may not occur, and calculationswhich may prove deceptive. It would be unsafe, therefore, to limit so closely the provision to.he made by Congresa formeetingthe ex penditures of this and the succeeding years. To raise a large portion of the amount necessary to meet these anticipated expenditures, it was obvious that recourse was to be had to loans which have been already in part negotiated.. 1-lie necessities of former years have led .to many expedients, as is apparent from the diversity of forms whieh our securities present. As the debt in creases from year to year* borrowing becomes more difficult. Embarrassed as the country is with two sys tems of banking* and obstructed as the Government ts by a currency wholly beyond its control, it is manifest that to push its own circulation far, if at all* beyond its present limit, could only be justified by absolute necessity. To thrust our securities upon the market in such amounts as it is not able to bear, and retain no check upon such stock jobbing combinations, must exercise a disastrous effect upon public credit, and operate injuri ously upon large numbers who have heretofore invested their means liberally and confidingly is Government issues. The Secretary is not unmindful that, in the opinion of many persona conversant with financial mat ters, recourse'should be had to foreign markets; and in two acts of Congress, one of which is still in force, au thority has beta given to negotiate a foreign loan. This, if practicable at all on terms which the Secretary could feel justified in accepting, would,‘in his opinion, at the present time; and under existing laws, be so in considerable in amount that ite effects would be merely temporary, 'and would afford an alleviation rather than a relief. , Our bonds havetalreadyjto a considerable amount been sought for abroad,, and to that extent the home market has been relieved and strengthened. Communication with Europe is now so easy, and regular intelligence is franemUted so rapidly, business facilities are so abun dant, that foreign markets are almost at our own doors, as d a demand abroad is felt almost at the moment and supelied without injurious delay. To effect % foreign loan would not, as it has seemed to the Secretary, add much, If at all, to the whole amount of sales unless stimulated by efforts and inducements whieh our finan cial condition has not as yet called for. And though a certain advantage might be gained in the power to con trol in some degree tne rate of foreign exchange by the deposit of a large sum, to be drawn against as occasion might require, the possible benefit ‘thence to be de rived t has sot seemed sufficient to counterbalance other and opposing considerations. This'nation has been able thus far to conduct a domestic war of un paralleled magnitude and cost without appealing for aid to any foreign people- It has chosen to demonstrate its power to put down an insurrection by its ownstrengfch, and furnish no pretence for doubt of its entire ability to do so, titber to domestic or foreign foes. The people of the United States have felt a just pride in this position before the world. In the judgment of the Secretary it may not be doubted whether the national credit abroad has not been strengthened and sustained by the fact that foreign investments in our securi ties have not been sought by . us, and whether we have not found a pecuniary advantage in self-reliance ; but however this may be, it seemed to the Secretary that even if inclined to attempt thenegoti ationof a foreign loan the time wa* unpropitious. and the difficulties attending such a negotiation, while ex change was subject to rapid and violent fluctuations, upon any safe terms, appeared almost insurmountable, whatever risk was to be incurred must necessarily fall upon the Government. He thought it wi*er, therefore, to wait.until events should have more fully demon strated the inevitably favorable result of the contest in which (the is engaged, which he believes to be near at hand, rather than venture upon an experiment whicl, if successful, could afford but temporary relief* and a failure in which might be attended with evils of a very serious character. Believing tlat the coni)try can, if it will, ensteto for a long time to come any burden, which the war is likely to impose, the Secretary has deferred an undertaking which seems to him sodoubtful of success, and so ques tionable in its result. It may be added to these consi derations that to have the interest on our public debt payable at home, and to our own rather than to a fo reign people, are advantages the value and importance of which can hardly be too highly estimated. The whole amount of National circulation not bearing Inte rest, exclusive of fractional currency and or notes is sued by the National banks, is limited to $406 000.000, subject to slight occasional increase from $50,000,000 held in reserve for the payment of temporary de posits of . five per cent, interest-bearing • notes. There were outstanding, on the Ist of November last, $120,519,110,000. To a considerable extent, these notes have been, and will continue to be, used as currency. .Those with coupons have been found particularly ob jectionable. Although withdrawn, to a certain extent, while the interest is maturing, they are liable to be periodically rushed upon the market. Zn consideration of this feature, a large amount, viz: about ninety mil lions of the original issue of one hundred and fifty mil lions of these coupon notes, have been withdrawn and destroyed, and their place occupied by notes, payable in three years, bearing interest at six per centum, com pounded semi-annually. This is believed tobe the best form of interest-bearing leral* tender notes,, as being more likely to be with drawn and held until maturity as investment. Of these, fifteen millions in amount were issued under the act of March 3d> 1863, and about ninety millions un der the act of June 30th, 1864. The total amount of intei tat-bearing notes outstaudiugon the 22d of No vember last was $210 r 222,870. v7hat proportion of these may he considered as an aaalttpn to the cir culation 1 am unable to determine, to that extent, whatever It may be* they contribute to the amount of the currency, and thus, in soma degree, oc casion, and in a still greater degree sustain,, an increase of prices and, tdepresc values. The amount of hills issued to the national banks, as ap pears from the books ofthe "Comptroller of the PKi* 2&1 of November, inclusive, $6£i»6G3,100.. As these banks have. abeoriied capital which might otherwise have been invested in State cor instances have taken the place of institutions by conversion, their Issaa* be te&rtvX %e jiftwwh, ,4(Utt«a t«ti» body ofcorreucy. The returns <vn fi e at: tb» Depart meat shew that the whole flitculatfoa of State beaks toitbe lsi January* 1561, wae Oid whole cirealaMch of such banks for tfce nrsafcii of Jnis .1864, ivtvwed to the Internal Eevenae and whfcrb embrace*. with a few trifling exc-piuras, ail ,c 1 these outside of the re fie i lions Sta-es was ©sly $)2,618<66G.6?2. The diminution is *{»B7f K2J328, which, deducted from $O5. 16V210, leaves $2-141,653.77J ae theamouitOf facrease to Noramber22j, 1851. * . Ojrthe Bttpp<witio3 that thecirculation of btitte banks bee net been enlarged since July, the subsequent re turaf r siH.urh inc* mulcts, would tend rather to show a diminution eii.ee that date. Arguing from the facitaat the notri* of the Sta s bank* have almost to be current in emus of the Jfonhweslsra Btatesit may whtl he doubted whf therunleisS the limitations of tue taw au . Homing hanks and the establir h met t of these Institutions has not had the eff-cfc rather to iiroifc than to eT’arye4he« , wfco>e amount of circulatlf n. Itlsobaerv able that no'witbstandtog the apparently TargacircaU tion of paper money issued under the authority.of-the various acts of Congress before enumerated, its scar city in the market has occasioned, no slight «m barra* truest in the negotiation of loans. This can be accounted for cnly upon »h* supposition. that large amounts are carefully,, held by the people, thereby exhibiting their confidence .in its charac ter and vane, and that the impetus given to trade of ev*ry description by the large and increasing wants of the tioverrmest, requires a largely increased apoun.i of the circulating medium. A nseof prices tends pro poticnately in the same direction. Believing, how ever that with the large addition made to the volumi of currency by Hat* banka, t hrough their various forms cf Credit, the whole amount far exceeded the limit or nccekEiiy. it was with extreme reluctance that the Se cretary telt himself compelled to replace the five par cent, coupon ncts>, which had. been withdrawn by an issue of six per cent, compound interest.notes, un<er . the actof June 30, 18*5, and even to exceed that amount to a small extent. Bat the necessities of the hoar leu him nocfc<nce.and he will now proceed to state the con dition of financial affairs which;.in hi* judgment, ren dered each action imperative. _ •». •• On assuming: office upon the fifth of fuly last, the Se cretary found his condition peculiarly embarrassing. The cash balance in the Treasury wa°; on the Ist of July;, as before stated, $lB 842-553.7 L; the unpaid re* quifcitionson thefitb, weres7lBl4 000. Theamoout of <-eriificates of Indebtedness outstanding was $l5l, - 7S6.GCO. The daily expend itures could not be calculated at fees than two and a quarter milH-ons.fcThe larger por tion of unpaid requisft ors was for pay to the army, and the Secretary was obliged, to lock forward to an in crease lr.-m ilie saftbe quarter of over fi?ty millions on the Igt of September. Thus situated, he coutd not avoid scrutinizing with some anxiety his probable means of meeting there most preset g claims n?oa the Treasury, and also providing for the additional daily . expenditures. fie couli look nowhere hut to the receipts from ordi nary kourcee, and to lie power to borrow money under exhttoglawe. From custom* be could expect no sub naotiaiaid, as the returns for ths first quarter of the current year will show that, beyond the revenue pledged to pay the interest upon bonds issued and to be hiued during the year, comparatively little assistance could be derived from this source wlthTeg&rd to iu tersal revenue, the Secret+rv felt more encouraged. Congress hi d wisely provided fora large increase of in ternal duties by a law which went into operation on. the first day of July. Under former laws the amoant received had been steadily increasing during the three preceding months, and In the month of Jane had reacted veTy nearly to $15,0CP,0-0. The Secretary c >aft dentiy hoped that for July, and the succeeding months, it would reach, i! it did not exceed, the daily.average of three-quarters of a million; bat this hop-', if realized, would still leave him with aotj large deficiency* to meet which* in part, he might issue certificates of in debtedness to public creditors. This was desirable, however, to avoid* could other means he fonaiof iu creHting the amount of these securities. He might have recourse to tbe power conferred by the act of June 80, 1884, and pot an additional two hun dred millions of legal*tender notes upon the market, and even .Idd ease tlias amount by some sixty millions in substitution for five per edits issued under the act of March 3, ISA which had been de stroyed, or were ready to be destroyed. Flushed as the money xoaikbt was with circulation, sufficiently at kart to meet the necessities of business, he was anx ious, if possible, to avoid so doubtful an expedient, Ibe prospect of negotiating a loan in the ordinary way Iras by no means flattering, as the SOtiss for a loan of $33,0Cb : «0, advertised the 25th day of June, had bean withdrawn on the 2d of July, the Secretary hiving reaeon to believe that such loan would not be taken on terms which U would he for the interest of the Govera men to accept. Under these circumstances the Secretary thought it advitable, in order to meet pressing emergencies, to borrow upon bonds or notts authorized toy the various acts referrebttol $50,000,C0Q of the banks la tbe cities of Eew Tori?, Philadelphia, and Boston, and mat the re preeentaiives of a large nniu ber of th««e institutions in fcYwYoik, for the purpose of effecting that object. The mult proved, however, that notwithstanding the S.cjetary was convinced .of real desire to aid r he Go vernment, these insticulionswere not able to famish tae assie ahctf required upon terms which, under exist ing provisions of law, the Secretary felt authorized to accept, fie had then no other alternative than to issue legal tender nofes to a very large amotnil:, or again to advertise tor a loan, and he had no hesitation as to which source should be adopted. Accorcinglv, oa the 25?h*of July he issued proposals for a national loan*-under the act of June 3bth, 1854, upon notes payable in thret years, with semi-agnual interest of 7 3-10prr centum per annum in lawful money. Be incurred a considerable expense in. advertiiingthis loan, believing that it should b* as'widely drffased and at generally uude» stood a- possible, and offered liberal inducements to stimulate the efforts of corporations and individual* to dispose of the n/tas. Ilia success, though n<t what be hoped for or anticipMed, has been suchas not to dicninifcli his confidence in tbe disposition and ability of the pec-pie to relieve the wants of their Go vernment. A serious obstacle to greater success has been, the Seeret&iy believes, the amount of other desirable na tional securities pressing upon the market and present ing more favorable opportunities for investments. Fail ing to raise the means in the ordinary mode, and urged by ihe conviction that the large amount of suspended requisitions, swollen to more than $130,000,000, should be reduced, the Secretary resolved to u*e ail the means at his ccmm&nd to pay so nauchat least as was due to our brave soldiers, who were suffering from the long delay in satisfying their just claims, but still continuing to serve their country withuaflicchlngccmrageand uncom plaining devotion. To effect this object, he was com pelled to replace the whole amoant of five per cent.- notes which had been cancelled, amounting in the whole to more than eighty millions of dollars, and even, slightly to exceed that sum More fully to accom plish his puTpise the Secretary resolved to avail himself of a wish expressed by many officers and soldiers through the paymasters, and offer to such as desired to receive them seven*thirty notes of email denominations. He was gratified to find that these notes were readily taken in payment to a large amount, our gallant soldiers in many instances not only receiving them with alacrity, but expressing their satisfaction at being able to aid their coui£ try by loaning money to the Government. Tee Whole amount of notes thus disposed of exceeded twenty millions of dollars, and the Secretary has great satisfaction in seating Ms belief that the disposal thus it log was not only a relief to the treasury, but proved a benefit to tbe recipients, In affording them a safe aad valuable investment as. d an easy mode of transmitting ft nds to their families. To meet other pressing demands, the Secretary again offend to public competition bonds issued under the act of March sd, 1863, amounting to about 532.c00.ee0. This offer was most lavorabiy received, the bids reacMug nearly S7O.CCS),IOO, and the whole amount offered being taken ata premium of four per ceu- um. andupwards, the Treasury reseivisg, premium inclu ded, the sum 0! $33,179.614.33. Subsequently,oa the lit of October, the Secieiary advertised for another loan, of foity millions, upon five twenty bonds, issued under the act of Jure 30,1864. At the time of this offer ihe money market was in a feverish condition,arising from vkki kffnctufttions in gold and other causes and serious d,oubts were entertained whether acceptable offers would he made. Bndeifthtse circumstances, and with the hope of affeccixgffavorably themarketprice of cer tificsios of indebtedness* which had bfecrme somewhat -ijkvrrfi««A &nuMw±~to'which the issue had -bcennecerearily <»»-» ■*— ceive one* fourth of the subscription in these securities!' The result was, that notwithstanding the anticipated failure of this loan, bids were received amounting to nearly and the whole amount offered was ta ken at a rate above pax* an d averaging to theGovemmeni a fraction less than one per centum. These negotia tions have afforded satisfactory evidence* not only of the ability of the people to famish, at a short notice, such/sums as may be required, but of the entire confi dence felt in the national securities. [Quarto. After Dearly four years of a most expensive and wasting-war, the means to continue it seems apparently Bndijninished, while the dsteimiaationto prosecute it with vigor to the end U unabated. In some particulars the Secretary has found himself embarrassed by the restrictive provisions of the act of July?, 1564, and he will, therefore, at an early day,' suggest such modification as he considers necessary. In 1 is judgment a wide discretion should be entrusted to the officer charged with the duty of negotiating loans, in order that he may be enabled to avoid unex pected difficult* e#, occasioned by possible conditions ef the money market. ' This delicate and responsible duty must necessarily be entrusted to somebody, and the people can have no other reliable security-tor faithfulness in its discharge than may be found in the established character of the individual charged with so important a trust, whoever he may be. The discretion thus confided should, in the opinion of the Secretary, include the power of increas ing the currency. To no individual would any con siderable addition to the cireulatiox, in any form, be more objectionable than to the present head of the Treasury Department, audio one would resort to such a measure, when the circulation was adequate to the wants of businesf, with more reluctance. Mor does he believe that a patriotic people, struggling for na tional existence, and possessed of ample means, * would compel him to adopt a measure so fraught with injurious consequence*, as an issue of pa per money beyond tbe limit so prescribed. The question, however, would be one for that people to de cide. They have pronounced for a continuance of the war until its great objects shall have been accomplished in unmistakable terms. It is for them further to de termine whether the necessary means shall be furnished by way of loan,and the circulation be restrained within safe limits, or whether they will prefer to endure the evils of exorbitant'prices, with a loss of credit in the present and a debt of needless magnitude entailed upon tbe future. Their financial officer can. only submit to their decision, and act as the necessities cf tbe occasion may demand. But the Secretary confidently believes that, judging from, P*st events and recent demonstra tions, there can be little question whit the public voice will be upon a question so vital. It is the province of Congress to Indicate and deter mine upon the terms that may be offered to those who are invited to Invent their means in Government securi ties; and it would seem both wise and prudent to make those terms sufficiently liberal. If our public debt must necessarily be la?ge and require a loisg course of yeaiE for Its liquidation, its wide diffusion is most de sirable. Such advantages should be off, red ax will in duce all who have anything to spare beyond the amount required for their own support or use, to invest that surplus, or a portion of it, in the national securi ties. These advantages can only be found in an in ert asedy ate of interest* an. exemption from public bur dens and security of possession. What limit should be fixed in either of these particulars it is for the practical experience and wisdom of Congress to ascertain and de termine. „ The experience of the few past months cannot have failed to convince the most careless observer that* whatever may be tbe effect of a redundant circulation upen the price of coin, other causes have exercised a greater and more deleterious influence. In the course of.a few days the price of this article rose from about $L 60 to *2. £5 in paper, for $1 in specie, and, subsequently, fell in as short a time to $1.87, and then again rose as rapidly to $2.60, and* all without any assignable cause, traceable to an increase or decrease in the circulation of paper money, ox an expansion or contraction of credit#, or other similar influences on the market, tending to occasion a fluctuation so violent. It is quite apparent that the solution of the problem may be found in tbe unpatriotic and criminal efforts of specula • tors, and probably of secret enemies, to raise the price of coin regardless of the injury inflicted upon the country, or desiring to tafiict it. All such attempts should be indignantly frowned upon by a patriotic community, ana the efforts of all good citizens invoked te counteract such nefarious schemes. A law providing for tbe exemplary punishment of combinations for such a purpose might tend to vindicate, if it could not pro tect, the public rights in this regard, and ehonld/be, so far as possible, rigidly enforced. But whatever success might attend any effort to check speculation in coin, or to counteract its injurious effect, it is still obvious that so long as there remains a large and increasing necessity for its use,.and* limited sup ply, it will command a price commensurate with the necessity and the difficulty cf obtaining, This necessi ty arises from the demand for foreign exchange, for customs duties, and to pay the interest oh the public debt. The matter of foreign exchange Ido not propose to discuss. The demand for duties on import*, and that to pay the interest on a large portion of the public debt, are so far identified that one is dependent upon the other. The laws anthonzljg the issue of tends tearing in terest m , eota. specifically pledged tie revenue from, customs to the payc eat of that interest, and provided /or the collection of those duties in the -asme currency. In the opinion of the Secretary that pledge should not beviolated A departure from it could, only be vindi cated by one of those State necessities which jwtify a action in temporarily postponing its obligations, in order to preserve the power to discharge them as a fu ture day. When the pledge was given no one antici pated a possible continuance of the war for such a length of time as would, involve , the increase of the public debt to the point it has a ready attained, or the possible payment of interest in coin to an amount be yond the ability of duties o: imports to supply. It will be noticed, however, that our annual coin ia tmest now exceeds fifty- s& millions of dollars. Should flm additional amount required for the expenditures of the present fiscal year be raised upon bonds bearing in tereat in coin, and the revenue from customs not exceed the estimate predicated on the receipts of the first quar ter, it is quite manifest that resort mußt Boon bo had to some other source of supply, or recourse must be had to the emission of securities of a different character. It could sot be expected that such securities would stand on a level with those the interest upon which.ls payable' in coin, unless an increased value, should be given them by a higher rate of interest, Sr their payment should be secured by a specific lien upon revenue. In view of the serious considerations presented by this question, whether as affecting the market value of coin, or the ability of the Government to meet its specie in terest. should the war continue, from the revenue now specifically appropriated to that purpose, the Secretary is forced to the conclusion that we should in future rely, for the most-part, upon securities bearing interest in currency conveitibleinto bonds, the interest of which is payable in coin> Notes bearing an increased rate of interest, payable in currency redeemable in three or five years, mid convertible at maturity into five-twenty bonds, would be preferable, iu the judgment of the Stcrettry, to any other form of security. Bonds at long dates, the interest of which 1b payable in currency at the usual rate, would be less attractive, and. In the end, involve much greater sacrifice. The 7*30 notes, authorized by the act of Juae 30, 1861*. mid now offered to the public, present as many advan tage aas any form of currency security, a high rate of interest with convertibility. At the period of their it may confidently be believed that the country wilt have bet n restored to a state of unity and peace, with all disturbing elements quieted, Us popular tion and resources increased ana increasing, its strength confirm with ample ability to meet aU its obliga tions from its ordinary resources. In the report of the Comptroller of the Currency will be found statements of the number of National Banks organlze&elnce his last annual report, the States and Territories wheiein. ogutized, the amount of capital paid in, circulation*, and the bonds deposited. The statement exhibits a la?ge and rapid increase, and demonstrates the popularity of thesystem. The rapid and extensive convertlonof State institutions of established character, conducted through a long series of years by, man of recognized financial ability into banks organised under the new system, could not have taken place unless after a full ana careful consideration as to iU safety and superior advances. If it should be said these advantages may be rather to those inoiviQuauy interested tt&n to the community at the lepiy Is that a ittpor&u turned 6 *^e<> <w y*: JftotbV **tat fe»s<| f i )7I „ H . . ’ 3 *u to tfceOoT«kJ n ia j ts V>-j . fatedfroniV l tho usc^f*,^ 1 aritps-froma. «ane tt «yotV»k cpt*o!, the advantage of j,;“ !c hV • these objects esn wmit tr was na among Ihv* fir-t tr>/, d ‘‘ J > by rptresfe, and -grbich r.J*’''"* nJ-- popular eencrji.n, Tm* *<,/** t * l-' rectp, however, convl/is»-d . °--&rv Without defter is hfweil u *i» B ITemft!e4 n 8 7 apparent that tie good” t,,. J 1 / 8 ' -1- uee *o lobk as anotfew »*„,** *»?*-« object eofcght’o b* aiiVuM * d .” *, T unebethed and nnecnrro i»4‘ Eecretaiy lfl i crseveremeasure*, *ikH}r»A e >r,:l^t .'., ;J the country. e*peciabr t??‘a U v ▼orsble that the niaoaaj it i " -'n vv' ,: ttmeielj- local f,»;!& indne* tip»i>bd>B.« at „ fa ,-/ .>■■: -t*..- iefßed under national anthW," 1 B n, cable moment. , a; • For a statement of th? ).«» v u during the past year \oa thereport of the Treagorcr are largely ircreeseri br .Which havebfeu detfcfo'&'eft Vr r' e ; Rational currency 'i i le , .v J f: . also those of t;e AisWdrt t n ‘ H/,1? cidwand tbadcpoHUr c' 6, ms, areneces"arlTp r .,D-n:““ ! -i l, H»*)t through their tear. *£; Bifciluies of tome are «r,cl>'<•. acter and capac.ty world sr*- are willing to assume i» snrropnd thunte’.Tea wiili /p-ss /- ants, forwhoae care ami t„L r - '' - able, and to gly 8 bends : :-■■> r S*" fortunes woulo meet, a ‘ tr. ■!:;* Qt-ircdl toendpretheneriocy,,-' - '- '■ < Of snch 8B office. In V!4»*'or : '•' •." much better coinp«nsarv oll n ’ U A . r : labors much iigbier ato nV f f Porifint, I cannot but rcctfni' the Treasurer and the As*l ‘ r .* the designated denofbai <» i E currfttt year. *h« A-.-bi-- V 1 ”-- bavjng Vra cosope’led b- r- i*' Jong and most osefol uad ? - ‘ 1 necessary to find a per*. of business andfln&?!c«»j ate'."’" , and acknowledged sldiit” u ■' 1 that most iirtpor.'iutt po:-i io be Hxtremelv difficult. p t cu«iary risk deb rr.-d inc-'u; : while the compensation *i«,.te Jiweruiaais customai jh n* ! f,‘■ fenor service, Tfce wW by the i present mcumi-r-nj ■ > r -»- honorable position, wish u , at the nr#e*ut solicitation i f*> J‘ a ware of political dutv. fcbietee’inir, tbo As»b-tant Tii - seated to withdraw bis - r ' r • '*> tendered to the Department ’ r >• - tHfet interests of tbe Gov^i*!:, ; n, compensation be paid to ail r „? T» - ble ibem to discharge tbe 1250 >, ' -■». , toe berassisiE cares and adequate incomes, and b*a,t k . 5 0 -- nature and anenne of * Pl £?' ih ' jv*. inadequate compensation has , V-- barxassment in other cm" . persons of esprrios*?* k:« < could readily commut e mtntelfe where, <f r te'- 5:5 v ’ partiaent. These -.places vu. 1 v ; c-, difficult to fill, althong.li jj*.-.,* et ,t complain of a lack of applied'*"' in.tbe vast and complicated kt./? . ej ' Pi? partment many persons ar* r; order of ability, derived l’ v ence, and witnent wh*K.<j a^ :: - not be wed and tp?edi>v rW* ~ l5» *; cannot be expected to reiaa-s * and be content with a t .s. # k * r » the daily wants of tb t>u.h it. 1 solicited to accet toibfrs {n x dr f rally ffTnuneratcd. ’Khi d t r docs nofcf&vorbigh sa’srie'-m* 1 one tbe necessity; of strre; er- i-m f' 1 ' 4 * state ibis condition 01 -v’ ‘ Congiess. • n 1 • i Theblghiafasof dutlesoß j rar -..| . JawsaSird etieh ? Cilitlos are presented f.-r sico-a i n »■ V : revenue law?, by ibe f rj-' 1 coast, and mere especially of ocr ? T w ceeeity ot strenuous efforts to fences of tbis kind is Impressed ur- .n 1 -' - with daily increasing force. 1 1 ‘ Tbe attention of Congte ? i* much of tbe report of tbe C .. relates to this very tmpKUut prevent smuggling; and > r Qih* 1 1 June 17, lfc6l, contains iuportaatr.* tv properly enforced, wiil,icis bei *v V. cient. fcuScient time, however, *v>f-.** v ' 5 necessary to carry these pro vm n » ; ■ yet been afforded. Inthem-sn u , , fry inspection has been made byl- e'-. 0r • instructions from tbe frontier lines, and the result of Us <>^ r tbe conviction that preparatiouK oa & * >~ progresK for extensiv*. and sy-* Pr ? smuggling across our noitbem £at der. To prevei t, or eve ato increase of preventive foree wiii as • sary, and means should be placed at V-» Depaitanentfor that purpose, to be manner as tbe exigency may require ~[V of the Commissioner, and tbe natur= .ft no Jess obvious that an increase revenue boats, especially on IV- \ only expedient, but necsrfsry, priations for that object should abo i. so as to meet the wants of tk» approved July 2,1384, entitioi f Anactk the several acts concerning cou-q?- c;kl ini tween loyal and insurreciiouaiv Siaicf.V for the collection of captured and afcac-i-ir. and lie prevention of fiaud& ia tbs «{£[*• insurrection, ’wasmodified in several is »v -lars by pre-existing laws m><*n azse “ ‘ much, of the actef July 13, 1661, s? ■■v.mfn* dent to permit commercial relatince in fetates and sections was repeated, specified cases The rules and rewlatious with regard intercourse previously adopts havefc«i . eordingly. The ascend section jar-eh powers and responsibilities of taft ft placing in its charge abandoned kids tenements, in insurrectionary states kr of occupation aid lease, aodstili lurthec that pjovision should be made in suck kt* wise, for ibe employment and general v* persons within the lines of National m:li tion, within said insurrectionary States, t as slaves, who are or shall become free. This danse is regarded as piecing aU n under the protection of this Departure l , ike their general welfare is to be provided for 1 rules and regulations to carry the prorisiozM into effect as directed in section 1!, sack as t-\ essential to the proper execution of tUepoven in relation to ireedmen were made and -j the President as required* It wa?, however, cpssary to nupend their operation for if clMs of persons had been, and were jtt, protection of the War Department, and ; sary provision for their welfare had t>« under military authority and suptrrhi?: rancements made for this purpose contempt tinuance of the system adopted through:: year. It was deemed advisable, the,'if: fer action in this regard until the tire- • rive for commencing the operations of a: and in the meantime to allow the fresh main as they bad been, under military; The eighth section of said act authorizes * tary of the Treasury, with the approral o? sident, to appoint agents to purchase, 01 specified terms, any products of States dedal snxrection.. The amount of fonds placed at tfc of ibe Secretary for that purpose was, how« mited, that large operations <m a cash ba-.fi OA uic'linwUwß. —In fits*, ti>« pwy?r «ke>,cs authority conferred by ihis provision •£ ia ha# 1 been attended with grew emharrassai much consideration, however, a serial lations were framed and approved, s ral agents have been, appointed, v: commenced operations under the taws, appointment is so recent that no suficieot elapsed to afford a basis for any reliable cpts probable result. The Secretary i?, opinion that, whether the hopes whiekna 1 ?: Indulged of a considerable revenue to it-h) from this source are realized or not. the i&d vantages of getting to market a reaioas&s the product* referred to would camivn*aK! made by Government in that <urec:o:i of the zules and regulations, as revise! with those relating to abandoned In: and tenements, providing for the em ployment of freedmen, and for tie p products, are appended to uite rsp n cretary has great satisfaction in .itena expenses connected with exetcusg " [ acts restricting commercial istercoam - much more than paid by fees regulations heretofore adopted, whils the :-s great pleaeure in stating that so fir . knowledge extends, and so far as be i» affairs of thi» Department have been we.«* torily conducted during the past year-- ! has occurred of a painful character. bleloss to the Government, and toidicr*- 1 * picions as to the integrity of swno ps®y employed in conducting its oparafrn&jf; day of June last, Mr. C- P. Bailey, ! Superintendent of the Doan Brines out* the Secretary’s office, addressed a tary, stating that one hundred boadsi r?F pared for issue under the acts of gust sth, 1851, of $l,OOO each, were u-M trace of them could be found. T& ■- numbered from 34,301 to 314/0 a part of one thousand transmitted »• -P, Bank Note Company, on the 26ib oi&ep:r2-_- his letter to the Becretary, Mr. Bailey - exhausted all the resources at ml.®**?; dcavoring to find them, and nothin? to report the facts. * * A strict Incaar connected with the afiairwas J f but no light was obtained farther toan tp»- the 28th of September previous, Hr. bonds in an open basket, w ith a weteanj**?? by two messengers, one of whom ws* nrr established character, to the Register offsied them to Hi* clerk, who coupon bonds; in the Register’s room* “fi , taking charge of them on the ground j ; place In the office where they coaM be requested that they might fee taken Branch, where there were good safes. Mr. Bailey was sent for, andafwr 5 _ - as tothe proper place of deposit, should be taken back and deposnw office, and they were according tgj;** - same messengers, taken out of tne -j table, and in the course c-f the d»i where they remained, as soppos?*. the Register. They were called t« t »«, a * time to time, from March 17th to the loss was discovered. The ties concerned in the case Is posted a and nothing has since trauspirsa hi ter or to furnish any indications as - ,v, 5 s of the missing bonds. As they baa S ; ; ,. the Register or sealed, tier cannot fcf -l, eil ckupone, however, weze sealed j B *a able to bearer on January and •' ct V.j ia j/is A careful examination was jnatrf <■ ... a pons paid on bonds of that 1 that any of them had been were known by the numbers. IwJJffj refallv f- 1 the Assistant Treasurers tojraf-a pone, but nothing further is, steps hhve been taken, as ,£1 esc*- attended with any effect. ”J*;‘Jfti«Tke3d not aware that any loss has wl* For the detailed operation? ike >-3 ee, I respectfully refer to tee repy■ l j u r :i ent of the Mint. The total ib; ed at the Mint and its SS s?' year, is $24.9/0,£08.47,. o f ,S? T . dedcctin* • gold, and $933,818.66 in «lvjr- 8 .. p f:; . posits, there remain the lz yJ y^ar 5 The coinage R* ccin, $d,649,546; gold bars c?:: » $548,214.10; silver bare, total coir sge, W aßdenominations coined was 4p ; ;-^■ # t ace, m 451,142.76 jusce i SSiaf *fß.e*,B®.(*. ta .Tiuisl’ friniteco, and ei,8J6,3J7.61 to mint at Deaw lias co ? e ,Kor ; .: to melting, retlning, assay lair, ;cj\; She rmmbsrof tots thns of *4BO- m. 97. ThO co«t of transpona ■ nor mint to tte seaboard, raupleii '' , l „ condltoin of too Indians on ttoroaie, (;i ,j fer to prevent too toll development or ;j . thisbranch mint. I have mating may prove successful so far 4 ; great pan, toe difficulties referrei '° i tit!* ft toe proposed site of toei brant ft B p anthorizedby Congress, has 'P* 8- torthersteffe from being taien toward and no further step*i can be token no “to for th?estoblishment of a branch ««*£ i ?ssa£jssssaas£^*gr.^ ment/ While its o^ er iJlwi?sQ»rrnP^^' ' have been continued witiujJJ* » the operation# of lts'officar^haT,,^ if nished to the army and navy, w o Et to-‘;; vices of^great importance mtoe® f vsn*:; of the Light Bouse Board, ■ their recognized standard of tfentiteS.'lti gestions axe made system still more efficient to esnr mates have been submitted. **L within the control of the : believed that the same w #• hibited before the to wjU along the ooast of toe United t»'-' 1 The Eecrctory refers vrith toe heads of theaeveathureacs m „ jbJ tog toe onerous duties devotvios ; gr«.t amount oftohorW-rmti “>‘ r kr* with few’ exceptions,.oestoweu e- ir3 d h ousiy. Anincrease of forces *i> reaus of Jtaaeecond and thio* prevent a. vast . menfe. The lease of the ? r ®ftvcir# -f‘ a custom house in jrewFetAwSsVii?^ . May. next. It may, tmdsc Of,, tract of lease, he is $1,000,000, if notice to Wfti e ®SJuas * r ,i , before its termination. The convenient for custom house P l5 -*- .< value than the sum named* . ■ If the purchase is to be . seaeouablyauthonaedtogivs , the necessary appronriatum iH H^ Iul = i y rnentof Conpes&_ TWapuwbi-e r..i in two«uccw/e 1 Secretary la idosingbis report the but follow the example of ticv; a<ac»owledgingr.ne »® t 6,. fwg* Secretaries, anAoih*r officy- : ,.a j ment, not only for toe cheerioi' *i which their-own peculiar t Bwic L. tffo and *e-y striven to lighten Wl la .\fi # 6 however impcarfccttjv the w » -.j and embarrassing position. r- t Son* Hasntbai. I stutS Mt'i miiidw- » £ tt>: 6
Significant historical Pennsylvania newspapers