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