Chicago Daily Tribune Newspaper, December 6, 1876, Page 10

*tho aubstitution therefor “excution of the pledge of th 10 of 1809, vided for the redemption of the Unfted Btates noten, and for the fssue of Natlonal Bank notes fu lfen thereof, and thus, amid conflicting the- ories, declared, in offécty a monetary system comblned of coln znd National-Bank notes re- deemable fn cofn,at the demand of the bolder, in harmony with the Constitulion and the tra- ditlonal policy of the Amerlean people. By this leglalation it will he perceived that the United Btates Is fully committed to the re- sumption of specle payments on & given day In January, 1879, by tho method of retomption of ‘United States notos current aslawful money, and of Natlonal-Bank currency, the equivalent of money by its con- vyeribllity into coin on demand, “The popular favor with which this cuactinent was bafled, looking to the consnmmation of an exigent measure of publie neccesity, was modificd only I:{ an_apprehension of the pasalble inadequacy of it terma Lo accomplish Its ond, A return to THE CONSTITUTIONAL STANDARD OF VALUES at any time will doubtless, Lo some extent, in- , ¥oive a reduction In nominal prices and consc- quent contraction of the volume of currency, bt this is not of ftaclt necessarily au evil, and, A it were, it I8 an evil Incident 10 2 viclous ays- tem, not cured by the continuance of the evil, while the measure Itself is demanded by the highest conomic vonstderations and principles of honest dealing among men. Beasides, the troubles likely to grow out of enforced rasump- tion are belleved to be greatly exaggerated. Restoration of the coustitutional standard of valies by resumption, aml the extinction of ir- redeemable notes current as mouey, and the enforcement of payment in coin on ilemand of the Natfonal-Bauk notes trealed as the equiva- lent of money, arc_ohvionsly altke of national obligation and public necessity, The suspen- . sjun was the act of the Natlonal Goverument, and to the National “Goverunicnt the peuple pnmcrlfi look to take the initiative in resump- tlon. Having, under its authority to cuin mon- ey, assumed to regulate the currency of tho - country, and ss the States are Inhibited “ to make anything but gold and silver coln a tender in payment of debts,” and as Irredeemable and Inconvertible paper currcucy ls csscotlally re- pugoant to the principles of tho Coustitution and the traditional polley of the Amcrican peo- ple, it 1s obvlously fncumbent on the Govern- ment to MAINTAIN AND FRESERVH THE MONRY STAND- AlLD of values of the Constitution, and to enforee the obligation of Envmun!. in coln on demand, at the option of the holder, of all paper money” Now, as for a long time herctofore it has been, a large prn‘mrnnn of the natlonal currency, a8 pre- seribed by tho Government of the United States, ta alike frredeemabls, Inconvertiblo, and dopro- cloted paper monoy; but it has been enforced ns a gubstitute for the money of the Constitution— cown, The United Btates notes, commonly kuown ns Jegnl-tender, regarded’ as a substitute for money, arc an nmmul{ In our mouctary sys- tem, tolerable and possibie only in the exigen- cles of ¢ivil war—the offspring of its perils and limited to its necessitics, To allow thelr con- tinuance, as such, after the causo which justificd thelr existence Las ceased, s to violate the con- ditions of thelr Inception, and to sanction what was only tolerablo as a necessity, by finpressing “{’"" it the stemp of legitimacy, "The purport of the legal-tender note was and {8 a promiso to vay. lts lu[inl characteristic has beon definitel reftled by the Supreme Court. Justice Brad- Iy, In speaking of it, says: Tt 18 not an sttempt to coln money ontof a valne- leas material, 1iko tho coinage of feather orfvor; or kowric shells, It is & plodge of thio nation] credit. Itisa promise by tho Governmont to pay dollars, ‘The standard of value is not changed. ‘Tha Government almply demands that its credit shall be accepted and recelved by public and pri- vate creditors during the pending exizeucy. . . Noone supposcs that thess tovernment corilf- cates ura never to be patd—that the day of specla rfl]mentfl are never {0 return. And it mattora not n what form they are fssued, . . . Throngh shatver changes they pass, thelr uliimiate destiuy a (0 Le pald, Yozt wiTn T QUESTION, Senator Sherman, Chalrmun of the Committeo un Fluance, ina recent speech In the Scoate, says: 1 might shaw you, fromthe contemporaneous de- hatos in, Congross, that ot every atep of tho War tha nolcs Wete regarded as 8 temporary loan, In the naturg of a forced loun, buta loan cheorfully Lorne, and {o bo_redeemed eoon aiter the War was over.'. . . Noone then questioned either the policy, the dnty, or tho obligation of the United States 1o redeen tlieso notes In coln, These noles did not and do not purport to ba money—~they are rather the u{lnhullc expression of the Government's author{ly In its extromity to supply its needs. The quality of legal ten- der with which they were ftnpressed should have been “coexistent .only with the necessities of which they were the offspring, Having served their end, the{ existed pmpcrl{’ ns evidence of Goverminent indebtedness, to bs provided for as other debt obligations. ~ Indeed this was the lugle and the law of the leral-tender notes {n their inception and treatment as Interpreted by the provizions of theacts by which issued, by tho Pruvlslom of law for their payment as part of thie public debit, and by the jndizment of tho Supreme Court of the United Stutes. At the close of the War thuy wote a portion of the pub- * He debt, and they uro a constituent element in our curreney t-day only beeause the original provisions for thelr funding have not been en- . forced, and that Tauelful and speculative the- orfes havo proposed thelr permanout fucorpara- tion Into our monetary system ua not incompat- itle with the hard niouey of the Constltution nnd the hard-motiey traditions of our people. That policy which folerated the contiuuance of these notes 83 money after the clogo of the War MUST BR HEUARDED A8 A PUULIU MISPORTUNE, “At that time they were, according to oviginal dusign, nml by the logh: of their “exisience, to be funded aR an obliratlor of jndebtedness,—to bo embudied with the publio debt, and not to be trented or tolerated as an vlement of the no- tional currency. They were to pass out of the category of currency and to take thelr place with the public debt. Congress, in 1869, treat- @l then osn portlon of the public debt, and pledged th fulth of the natlvn to thelr redemp- tlon, us such, ot tha earllost practicable perlod, and the act of 1873 _coutenplated their redemp- tlon In January, 1879, By this Iutter act, tho policy of speedy re- stiniption of specle-payments fs not only de- dared, but & wonetary system for the United Btates clearly [ndicated, with provisions for the redemiption ‘of frredeemublo paper current as money, and the issueyin liea theveof, of Natlonal- Bunknotes, redecmublo In cofn st the option ol thoe holder, and o return by that inethod to the wietallic stundard of Lhe Constitution. 1t remalus only to consller tho ndequacy of the provisions of ‘the incasure for resumption in 1570 to acomnplish fta ubject. As a further provison deomed essential to the purpuse of resiunption, 1t s rocommended that, i addition to the wnthority of the Secretary of the Treasary nlrvznl{ conferred, to provide” for the redempifon of legal-tender notes on aud uiter the duy providea for resumptlon, b avetimulution of an ud‘%.m amount of gold to meet the volume of 8300,000,000 of legal-{on- dernotes which will theu be outatanding, by the sale of Uunited States Londs, authorlty be, given him from time to time, 08 he may deem expedient aud tha stute of the fnances” admit, tu fund these notea nto a bond hearing a rato of lutercat not moro than 41 ver cent, with nut less thun thirty years to run, with sucn lim- itations g4 to the anivunt to be so funded {n uny .;ilvuu period us Cougress, Iu its discretion, may sdetennine, A SUDDEN ACCUMULATION OF GOLD (n minounts sutlicient to mecet 8o laree » demand as that contemnlated fn January, 1870, Is deeme «d impracticable; while to accumulats In ad- vanee of that time would be attended with uccessury luss of interest, would bellkely to dis- turb woney ¢xchange, and embarrasy the fund- inz of our hationalsecuritivs, The present time {3 regurded ns opportune for the gendual with- druwal of these notes, 1t is believed they would not be greatly wissed from the circulating ine- dium, a8 thelr place will readlly be suppiled by the tyaue of Nutlonal-Bunk notes under this met, Thie act of Jau. 14, 1875, entitled ** An act to provide for the resumption of specle payments,?” s methods of (s avcomnlishment, requires the redemptlon of the outstanding fractional cure rency i silver coln; the increaso of the volumes of gold coln by cheapentng the coinage of gold hullion; the substitution, ms the busiuess de- inandy of the country may require, of Natlonal- Bank notes for the legal-tender notes of the United Btates in excess of $:300,000,000; and the ulthinate redemntion of the entire legal-tender notes ou and after Jan, 1, 1879, as they shall be presented. Iu pursuance of thess provistuns the {ssue of subsldlury sllver coln aud the redemotion of fractionul currency are successtully progresstng; $22,000,000 of silver change hus been Inguerd, an $18,000,000 of fructional currency redeeted, TIE CAPACITY OF TIX MINTE Ia belleved to be equal to the coluage, in the present scal year, of the balance of the frace tonal curmw‘); outstanding, and they are now working at thelr full cupuclty. Legul-tender notes biave been reduced by re- dumption sud the fssue of Natlonal-Bank uotes to theamount of $14,484,254, leaving the amount ol legul-temters $307,535, 710, “Tne coluwse of ulJ Lullion for the past vear has been 1,640,403 pleces, of the vulus of $38,- 173,062.60—un lucreuss of §4,64,097.50 over the operutions of the previous year; which ls an In- crease colparad with the previous year of the mnount of gold oporuted on of §14,; 5 . As the demund tor Nytloual-Bank currency is Mmited, with alizht probanliity of fts [inmedia Increase, the contemptated reductlon of thess notes (o excess of §200,000,000 prior to January, #1619, fe not Mkely to by realized. It Is belleyed -that the larger portion of them will st thuy ¢ the {ime remaln outstanding, It will be observed that, in contemplation of the act, the Becretary is limited In the usc of silver coln by the s:un of fractional currency to ba redeened by i, and a reductlon of the legal-tenders to the ‘amount fn extess of $300,000,000. Besllea this he fix re- quired to make ndequnlc preparation nnd pro- viston for the redemption, fn coln, of Jegal-tens tler notes ottstanding at the prescribed perivd of resumption. It {s apparent that the BILVER COIN MAY DE SUBSTITUTED FOR TNR FRACTIONAL CURRENCY and the golil coin Increased, while there is little robability of retiring tho entlre amount of cfinnem ers in excess of the $300,000,000, It will bu observed that 1t Is Incutnbent on the Secrelu{ lo prvgmrc to provide for the redemp- tion of all legal-tender notes which may be pre sented on and after that date, and ‘that the means at his command, {o this end, aro the surplus revenues cxisting at that time not otherwise appropriated, and the proceeds of the Isstte, sale, sud Inpmnl of certain deseriptions of United States bonds at par in coln to the ex- tent necessary to carry this act into effect. This involves the necessity of tho accumulation of coln to theamount of the actual demand for redemnption of these notes on that day and any day thereafter. There will likely be at that time not less than £300,000,000 outstanding, and probably no inconsiderable amount in excess of that sum. Here, It will be scen, ia an Imperative re- " quirement of the Secrctary to redeem In coin, on & glven %, the fegal-tender notes amount- Ingz Lo §300,000,000, and authority to prepare und valde for It. 1lc may sell United States bonds 0 obtain the ncedful toln to the extent neces- sary to carry this act fully into cffect. TIHE ACT CONTEMPLATES the accumulation of the needful amount of coln against thoday of resumption, but, ua the nec- essary amount on & given day is (determinata only at the optlon of the hulders of the notes to be redecmcd, the amount to bo provided for ls necessarily uncertaln, and, as it will depend upon eventa ur a conglition of thiugs over whici hia bas little or_no control, impossiblo for - him to determine, e Is nutlorized, It in his judg- ment deemed necessary to carry the act into eflect, to aceumulate an amount of the legal- tenders outstanding on that day; but this, If it were not morally imposaible, would be so fnex- Eudlcnt. a8 8 fluancinl measure, that it [s not to ¢ preswued to have been contemplated by Con- grcu und 80 not fncumbent on the e retary. till he {s expected and required to meet the de- mand of redemption by the accunulation ot coln adequate fu ainount, at his discretion, with o certain data for Ms guidanco fu the excrclse ol It, What Is essentlal for him to know in or- der to the performance of tho duty Is, what amount of notes witl L’ertnlu!rv bo presented for redemption on the 1st of January, 1870, As this is CLEARLY NOT ATTAINADLE, hois left to deal with whatis provable, deter- miuablo upon the conditlon . uf such general ciuses as will be lkely to attend that cvent. It would not be dlllicitlt, in the present atato of monetary: nffairs, to make n probable estimato of the amount rcjnlrcd If the redemption were to take place In January next; and (t {s proba- ble that accumulation “of an mmount uf coln cqual to & molety of tho sum total of these notes would be an ample preparation; but, while It 1s to be hoped that the credit of our bonds may not he less in 1870, it may not bo kuown that in other respects the situatlon will favor such result. It is, however, deemed robable, in any uu}musnhlu condition of mone- ry alfalrs, that, i no fnconsiderable reduction of tho voluine of these notesshould bo tade in autlelpation of the redemption of 1879, the preparption required by acewnulation of coin for tha demands of January, 1879, nad imme- diately thereafter, must be at least an cqual proportion of the sum totul of the notes vut- standing. As to the surplus revenues as n micasurs of rerlcmrllun, such {5 the present and probable future of these rovenuesand the de- mands upon them that it is not deemed at all probable that any considerable sum nut othier- wise appropriated could by devoted to this end. In this conncetton, however, ft {s proper to ob- scrve Lhat now, for the firat time fn many years, owing to THE LARGE REDUCTION OF CURRENGY PAY- MENTS, - the sales of frold, Lo obtafn the equivalent cur rency therefor, are no longer necessary, and thus & conslderable accumulation of gold mny he antlelpated from the surplus from the cus- toms revenue. By theact Jan, 14, 1875, the limitatfon upon the fzauc of National-Bank notes was repealed, and the volume of currency left to be determin- ed hge the business demands of the cmmlr{y. Tho Becretary of tho Treasury was required o retire, of legal-tender notes, 80per cont of the sum of National-Bank notes'thon {ssued {n ex- cces of 3300,000,000. The amount of additionul currunumsucd since the passage of this actis $18,050,335, ond Jemaltendor notes to the amount of 314,464,933 have been retired, + By the act of Junc 24, 16574, National Banks might withdraw their circulation in whole or in part by depositing lawful moaey with the Treas- urer, and withdraw a proportional amount of tho hoknll; and it was madae the duty of the Becretlry to retive leaal-tender notes to thae ex- tent of ¥0 per cent of tho bank notes thereafter Issued, Under this act 852,853,500 of legal- tender notes have been deposited i the Treas- ury, und 37,122,000 of bank notes, accordlugly, have been redcetned and destroved. The amount of legal-tender notes outstandin Nov. 1, 1870, was 837,545,710, The umount ol sald notes on doposit for the purpose of retiring circulation was~ $20,010,040. "Ihe amount of Natlonal-Bank notes in cireulaton on that doy wis $20, 149,485 less, und of lezal-tender $14,- 404,284 less, than on Jan. 14, 1875—a tota) du- creasc In cirenlation, under the operatlon of the ucty of $13,607,748, From these facts, a8 well as from the large accumnulations of wiency at the money centres ond the lack of demand forit, it {5 npparent thnt the volume of currency s Tary ely In excess of the real demands of Tezitimaty business, and thnt a lmrtlnn of the legal-tenders mlzh{: be rradually withdrawn witliout sinbarresstnent to he business of the country. IN THE INTEREST OF UERMANENT REDEMPTION , and as a means of maintafnlng the same, it s decmed Importaut also, If not quits (ndispensa- ble, that provision should be made requiving the National Buuks to gradually provide coln in stiehi rotio ua the Secretury of the Treasury may direct, and to hold the swinvas a part of their legal money rescrve, so that suld reserye, on tho st doy of Januury, 1870, shull be equal in amount to thy entlre reserve roquired Ly Iaw. To the aame end, us the fractlonul currency (s withdrawn, It {8 deemed expedlent that not only the vaeuum caused thereby In the matter of change should be mado good, but that, ns addl- tlonul change, the volume of sliver chould be fucreased o tho wmount of ut least. 850,000,000, and silver mado a legul-tonder to the smount of $10 fu al) caves, except the oblizations of the Governinent of the United Statea und the cus- toms dues, ——— * BILVER, TAYMENT oF fluv:m‘;’mur OBLIGATIONS 1IN COIN. The veport of the Director of the Mint ahows that, notwithstanding the sliver dollar occupled i law, orior to Aprll 1, 1873, the position of an unlimited legal-tender, gold has, for many years past, been the money of payment In this country, ) 1t appears that a comparatively small sum in sllver-dollar pleces w as ever coind, and that Ity al no Lhine, conatituted an appreciable part of the cirenlation. This was duo to the fact that silver waa more valuable as bulllon than its stamped or legal-tender value In the form of dollars, 8lnce the fall of silver, propositions for the revival of the ellver dollar have been made, aud the positiuns which it would occupy with reference to unexpired coln obligations, should its cofnuge.with unlimited tender he agaln authorized, hos beon the subject of con- slderable discussion. The question whether the pledzed faith of the Unlted Statea to puy Its obligations fu coin would Justify thelr payment in the silver dol- lar, I3 of no emall importance as effecting pub- e securitiea of the United Btates, In any dis- cusalon of the question {t must be conceded In the outaet that THE SILVEK DOLLAR WAS A UNIT OF VALUE, having the quality of legal-tender tor atl’ sums and In all cases, and that the terms of the « Unlted Btates obliggations do not exchide pay- ment therein, aud that the act of 1809, in which 13 the pledge of payment in coly, docs nat, fn terms, discrhnioate agulust silver, These pro- visions are broad enough, In terms, to {nclude payment i elther gold or sfiver, und compels an'inquiry Into the history, production, issue, and subscquent treatment of “these obllzutlons, aud the relative condition of wold and sliver coin a8 woney of payment, in order to s correct futerpretation of the tanlug of the language (L knymem to be mude in cofn,” ot fong after tho close of the Civil War, which gave rlse to thewo abligations, doubts srose as ta the kind of imoney in which these se- caritles wers puyable, and which led to tho pus- sage of the actof 1s6d, eutitled * Anuct to strengthen the publlc credit*; and it was fn- tended to dispel all nesitation or doubt a3 to the vurpose of the Uovernwent unon the question, utd by which the falth of the United Stutes was ' pledged to the payuent in coln of w)l its obliga- llnm exvept those expressly otherwlse pro- vided for. This leglelative”wctlon was i hure mouy with that of the Executive Admiutitra- tion. What, then, was luteuded, and understood to tended, by this pledge of the Governmont 1 that the publie securities were to be pald n gold coin, or in sllver, or might be in elther? Itwill ot be questioned by any oneconversant. with the question at that tinie that the popular h|mm:ulnn, not to say general convictlon, was that TN PLEDGE WAS FOR PATMANT IN GOLD, Thia bellef may have obtained from the fact that the interest on this clnes of Db"finllulll, Suyablu in coln, had unlformly been pald {n gold, “that the customs reecipts had been sct apart Lothis end, and that these were pold in gold, and that the silver dollar had, as money of payment, theretofora gune into gencral disuse, especially in all lorge transactions, and cowid searcely bo conefdered as contemplated in any measure hav. Ing for its uh{cd to provide torpayment of sums 80 ample as the nterest on the public debt, at that l:mc amounting to the aum of $130,000,000. This view of the sublect recelves wo ficons siderable support, also, In the legisiation of Congress In 1873, by which the legal-tender uality of thesilver coln was limited to $5. forve of the laws of trade, quite independent of those of Cougress, tho leiual-Lender silver dollar hnd ucumllr disappearcd from efreulation 08 money, and aithough not abolished by act of Congress, it did not, as mattur of fact, exist for commerelnl purposes, and did not euter into money favments, TilH OUMRCT AND INTENT OP THE ACT of 187} was confesacdly to give Lo gold the l;rcmlencc In the statutes of the country ft held n the commerelal world practically, and to de- clare the gold dollar in law to ltu what it was In fuet, the represcutative of the money unit. Gold had for many years been treated as tho principal money of tofn payments in Jegislation aud In the transactions of the Treasury Depart- ment, By the act of 1863, the Treasury was suthor- 1zud tu recelve depositsof gold coin and bullion, and to lasue certificates therefor redeemable In gold coln, thus Indlcating that its oblirationa culled for payment, {n gold and not In sfiver. ‘This provision, it will be scen, i8 In consonance with ‘the fnct that our forcign exchanges for many years have been made upon the gold ba- als, and thus it Is apparent that the genoral un- derstanding has been of late yours, for the con- slderation stated, that the imoncy of coin pay- ments was goid, and an obligationto pay incoin required payment In gold coin. AS WA8 CONTEMPLATED DY CONORESS In the policy declared in 1869, tho public securl- ties then depressed immeiiately aroso to par in gold, aud have since maintabied an coviablo positlon _at the money voutres of tho world. The five-twenty "6 per cent bonds thon eelling at 83 “conts on tho dol- lar, soon roso to par In gold coin, and have sluce borne the nvnm{r premium of & per cent at homo and abroad, At the presont time, the borrowing power of the Governtaent Is somothing less than 43¢ por cent. 1ts 434 per cent bonds, un short time, are readily takeu at par in gold, and sold at a preminm in this coun- try and im Europe. If no disturbing element enters into our present monetary system, affeet- ing the Prcncnt poliey of tho Uovernment, it s ellevod that it will be found practicable, at no romote perlod, to fund the natlonal debt into o 4 percont bond having from thirty to ifty vears o run, and this at an annual saving fn"the fn- terest of the publle debt of $25,800,000, which, i Invested In a sinking fund at 4 per cent an- nually, would pay oft the present national fund- cd debt in a fraction over thirty years. 1T 18 A MATTER OF DEEP CONCERN that a policy o benetleent in results and ad- vautageous 1o the future should raceive no detriment from conflicting interests, policics, andd theorles, Whatever may be thought of the right. to pay these public sccurities [n cheapor money, ft will remaln true that 1t {s lawful to puy tiiem I gold coln, tnat tho beilof that thoy wera to be so pald has g practieal value in the probablo reduction of the publie debt equal to u‘me-lnnrm of tho amount of the annual juterest therenn. It is respectfully submitted that tho coin pay- ment to which “the falth of the natlon was pledged in 1860 was gold and not sitver, and that any other view of {t, whatever technleal construiction the Ianguege may he susceptihlo of, would be regarded as of doubtful good falth, nmlli‘ttu probable effect prejudicfal to the public credit, \ - Immediately upon the passago of the act of Aprll 17, 1876, the Department, through its reveral Independent-Treasury ofllees, began to {ssuc, in redemptlon of the outstanding frac- tlonal currency, the subsidiary silver which had been colned uiider the authorlty of the Resump- tion net of Jan. 14, 1875. To further relleve the pressing demand throughout tho country for money of emall denomluations, the silver coln {n the Treastry, previous to the passage of the act above mentloned, was also jssued in pay- ment of currency obtizations of the Govern- ment, 3 Under the authority for the fssue of silver coln granted by the act of July 22, 1870, the Departinent, in additlon to redeeming fractional currency, whenever presented for that }mrpunn. hns nljo ssued silver coin §n exchange for legal- tender notes us rapidly as tho colnage at the mints would permit. From tho date tirst mentioned, to and Includ- Ing Oct. 80, 1870, thera has been issucd of sil- very coin, no above stated, $22,006,712.16, of it amonat there has bien fasued for frno- tionn! currency redeemed and destroyed, $12,- 953,250(48. The demand for silver coln for clrenlation, though growing less urzent, still continucs fully equal to the capaclty of tho mints to supply (£, Until this demand ahall havo ceased, the coln- age will be continued as rapidly as practicable, to tho limit authorlzed by lnw, CUNNENCT REDEMPTION, Owlng to tho cxnaustion ot the appropriation for transportatlon of United States notcs and sccurities, the express charges on legal-tender and fractivnal notes, sent to this Department for redemption, and the returns therefor, have not been paid by the Government since the 1st of March last,” In consoquence, the redemption of such notes has greatly decreased, und tho paper currency of the Government Is rapldly becoming untit for circulntion. An appropriation sufll- clent tomect tho payment of such express charges Ia earnestly reconumonded. THHE NATIONAT BANKS, TUR REPORT OF TIHE COMITROLLEE OF THR cuRiBNCY contalns full statistics of tho reserves, taxation, dividends, earnings, and lusses of the Natlonal Buanks, together with a summary of thelr re- sources und Habilitics for ench year, since the system went fnto operation. Fromn this report ft appears thaty up to Oct. 3 of the present year, 2,343 banks in all bad been organized, of which 2,087 were in operatlon at that date, The re- turns of theso banks show that they then lad un agieregate capital of $400,802,2:42; surplua of $132,202,283; cIrculation outstanding, $391,544,- 020; Individual deposite, §851,835,210; loans, $27.574,070; wpeele (Including coln certificates), §2,80.767: legul-tendor notes (Includiing United States certilicates of doposit), $118,430,+ B47; redemptlon fund with tho United Btates ‘T'reasurer, $10,743,008. Tho act of Junc 20, 1374, authorized Natlonal Banks which desired to withdraw thelr clreu- lutiug notes, In whole or in part, to deposit law- ful mousy with the Treasurer of the United Btates [n sums of not less than $9,000, aud to Wthdraw o proportional amount of the bonds pledgedayeecurity forthelrnotes, Theactof Jen, 14, 1875, repeated utl provisivns of law lmiting the aggregate auount of Nutlonal-Bank cireulation, and made it the duty ol the Bccretury of the Treasury toretire Jegal-tender notes to the ex- tent of 80 per cent of the sumn of Natlonal-Bank notes thereatter {ssued, uutil tho amount of legul-tender notes outstanding should be re- duieed Lo $200,000,000, Bince the passage of the formeract, $5%850, 50 0! legal-tender noteshave been deposited in the Treasury Tor the purposy of rettring cirewdution, sud §57,122,000 of bank notes have heen redeemed and destroyed. The whole winount ot ADDITIONAL CIRCULATION ISSUED since the passage of the latier act, s $13,090,855; sl Jeal-tender notes equal to 80 per cent there- of, ot $14, 43,331, buve been rotired, leaving the amount of lezul-tender notes outstandlig on Nov, 1, 187, $407,55.716, Tho amount of Teat-tentler notes on deposit with the Treasurer ou Nov, L, for the urpose of retirlng eireulae tlon, was $W,010910, ‘Theamount of Nationate Bk uotes i creuiation on Nov, 1 was $30,. L340 Tews than on dune 20, 1874 und that of Hules Was Sl.(t‘l.’.ku lesa than on 133 the total decrense of legal-tender otes and Nutfunal-Bunk notvs, underthe operas I.h'n‘: of these ucte, belng §13,007, 748, The Comptroller, conshtering tho present year cspevial] nu[‘lruplluw for”that purpose, devoted & conshlerable’ portion of his report to a reviow of the banklng systems under which elr- culuthyz notes weie lssued previous to the ors ganizution of the Nutionul-Bauking system, and to the presentation, iu a concise and convonlent form, of the stutlstics of tho two bunks of thy Unlred Btates und ol the former Btate banks of the country, €0 far as they vould Lo obtained from otlieial and other rellable sources. “The tubles compllad by hin from estimates of Mr, Gallatin fu 1531 give the capital, elrculs tion, deposits, and svevie of thu banks of the country, including the two bunka of the Unfted States, for the years 1511, 1513, 1510, 1820, und 18205 wlso, slnflar fuformation as to the Staty banks from 133t to 1563, und the Nationa} HBunke since the orgunization of the system. ‘Thie Comptroller ulso prescuts, by keographie 8l divisions, the cupital and deposits of the Btate banks, private bankers, snd suvings banks of the couniry, which have been complied from returns wado to the Comulsioner of Interoal \ THE CHICAGO TRIBUNE: WEDNESDAY. DECEMBER G, I876—TWELVE PAGES, Revenne during the present year for purposes of taxation. Theso table exhiibit the GROWTII OF BANKING IN TiIS COUNTRY sinco 1811, atd show the total bank capital, at the present time, to be not less than seven hundred and twenty milllung, and the total bank deposits to be not leas thaa ninctecn hundred and seventy-four milliona, The amount of additional circulation ssued o Jan, 14, 1875, to Nov, 1, 1875, was $10,980,« The amount Isatted during the vear endiny Nov. 1, 1370, was $7,003,630: makinga tota from Jan, 14, 1375, to Nov. 1, 1870 (onc year and nine nnd a half onthe), of $18,030, Of this amount, $7,813,210 was lssued ' to 125 banks or+ ganized diring that perlod, with un aggregate capltal of $14,035,000, The rcmaining cirenla. tlon, amounting to $10,i67,105, was Issucd Lo banke previously organized. “Fhe amount of les al-tender notes retired wuder the operation of he net of Jan. 14, 1875, was 14,464,334, Thenet decreaso n the amount of National-Bank notes framn June 20, 1874, to Nov, 1, 1875, was $20,143,- 404 and the mnount on deposit with the Treas- urer for the purpore of retiring clretlation on Nov. 1, 1870, was $20,010,046. The larige reduc. tion ju bank circulation may be attributed to a desire to realize the premium upon the bonds at Uieir present high value in the market, the mar- fl“ between thio clrculation and the bomds be- ing carried ta profit accotint aud used eitlicr in lonns or other investiments, or for chargiug ofl losacs or paying dividends, 1f the market valuc of United States bonds should remaln nnclmnfied, 1t Is not probable that the amount of additional circulation to by Iesucd from Nov. 1, 1870, to Jan. 1, 1870 (two &%m and two months), would exceed $18,000,- ). 1f, howsverathere shonld be a materlal deeling In the value of bonds, it is to be pre. sumed that a cunsiderable amount thereof would be redeposited by the banks which have withdrawn bonds amounting to $65,102,800 since June 20, 187, The rrnm on circulation de. pends upon the price pald for the bonds and upon the rate of intcrest. If the business of thie country should revive, ar tho value of bonds decling, tho amount of circulation must be largely incrensed. Tho profit on clreulation fs ostimated at about 33 per cont. la fucalitles where the rate of interest Is 7 per cent, the value of circulation {s about 2i¢ per cent; where the rate s 10 per cent, the protits ars nbout 1 per cent, at tho present valuation of the bonds. COINAGE. The deposits ntgukl at_the mints and assay offices amount to ’7;430.270;50‘ allver deposits and purchases, $33,515,702%70. Total amount of bullion recefved and operated upon, $83,005,- 073.20, Deducting redeposits of bars made onet Issued by one institution and deposited ot ane other, thoe deposits were: Pum, 013,235,423 gl}_vgg_{?é,fifl.&':l.fll; maklog & tolal ot 800,- 7,887, Tho tolal gold colnage was $13,178,002.50. Total silver coluage, $10,120,502.50, of which 80,182,050 wero of trudc-«!ollum. The minor col ||n¥n amounted to $200,850. The total num- ber of pleces struck was 87,101,408. Total value of coinage, 857,505,815, ‘The report of tho Diractor of tha Mint pre- sents {n detall s full account of the operations of the different mints and nasay offlces, dlscuss- es at ‘some Jength the question of monctary standards, aud suggests some amendiments of the laws relating to the silver colnage, DUTIES ON IMPORTS, * TR RECEIPTS FROM CUSTOMS for the year ending Juno U0, 1875, were $157, 107,722.35, and at the corresponding dato of 1876 they wero $148,071,034.61, a dcecline of $0,005,732.74. The receipts for the first quarter of tho current fiscal year were $37,654,728,563, while for tho corresponding perlod of last year they wers §44,283,620.25, showing n decreaso of $0,078,807.72. For the month of October and November, 1876, the reccipts wero $20,247,043.97, and for the same months of last year wers $23,000,- £50.23. About three-fourths of the revenue from cus- toma is collected at the port of Now York, and the litigation® arising therefrom has so crowds ed the dockets of the courts in the southern district of that State that great delay In the decislon of tarlff questions hos unavoldably arlscn. Sults are brought for the reversal of decislons of the Department, pending which finportersare subjected to the payment, underjprotest, of du-~ ties which, after years of Iitization, may appear to havo been wrongfully assessed. 1n this way suite aro multiplicd, aud trade Is subjected to uncertalntics and losscs which a speedy final de~ clslon might obvlate. TWO METHODS OF OBVIATING BUOR DELATS are suggested. Tho frst I8 tho orgunization of & court of arbitration, such as 18 connected with the Chamber of Commerce of New York, with or without tho power to reuder flnal judgment, a8 might bo thought best. The second is the cslablishmont of & revenus court in the South- ern Distrlct of Now York, exclusively for tho trial of customs-rovenuo cases, analazous to the Court ot Exchequor in England, which origlual- 1y had only jurisdiction of cases urising In con- nection with the King's revenue. Under either syatom, the highest expert skill, both in law and fact, might be secured for the specdy dotermination of a peculinrly embarrass- ing class of little cases. There {s reason to belleve that the rovenue has sulfered great loss by cxvessive allowances for damago to finported merchandise oceurring on the vu\'n}e which allowances are now made undor Sce. 4,927 of the Revisod Btatutes, FRAUD ON TIHB REVENUE, by the collusion of dishonest subordinates in the Custom-House, can casily be practiced un- der this system; but even honest oflicors arg lible to be decetved through inndvortence and the intrinsle diffieulty of estimating the alleged damage by any practicable cxamluation. "Tho fact that many importers seriously object to having merchandise, on which such allowance bas been made, marked “*domaged,’ 18 some- ‘what suggestive, There scems no good reason why dnmufie of this character should not be mada the subject of Insurance, as well us other risks which are readily ussumod by underwriters, ‘The attontion of Congrees fs fnvited to the $BI (IL R. No, 1,712) to stmplify the appralse- maont of goods, wares, und merclinndlse tinport- ed fnto tho United Btates and subject toad valorem dutlea.” ‘The questions arlging under the provisions of the statute relating to “charges und commis- slons* havo been and must ever be munerous aud dlllluultl and 1t 13 certulnly deslrable to avold them if possible. To 'REVENT LOSS 0 THE REVENUR by the total repeal of the provistous referred to, 1t 1s recommended that the provislons of the bill be so changed ua to provide for adiding, in lew of all sucl charges and cotnmissions as are provided for by 8ee. 3,007 of the Reviscd State utes, a uniform charge of & per cont for com- misslons, Ever since the beginning of the Government, until the revislon of the stututes, the law, w fixing & maximum rate, hus lett. the compenna- tlon of inspectors of the customs discrotionary with the Becretary of tho TI’L’E!IH'&’. In the re- vislon the words conferring the discretion were repealed, and $8 per day was made the ubsolute rate of compensation, With permission <to - creaso it to 84 per Ainy In such ports as the Becretary might think advisabic. Constlorlng thut there are many collection districts where, from the fact the vigiluuee of inspectora 13 effective, but Mttle service fu the way of collecting dutles or DETECTING FRAUDS Is done, and where nll the duty required by the Guvernment s not incompatible with some other uccupation, U seems desirable thut the dlscretion given In th\eurllrr laws should bo vestored, While $45 day I8 not un excesstve compensation for customs ollicers cmployed In the larger ports, und plvlnfi thelr whole tluie to actlve ofliclul services, less than $3 o day would be suthicient for officers In snall ports wha ara required to watch agalnst violutions of the revenue, and who might, without detriment the service, have other occupations, * 1n compliance with the provisiuus of Sec, 4 of the logislutive, vxecutive, and judicial u[mrnnm atlon ucty approved Aug 15,1570, u * careful serutiny has been made of the force employed ip the collection of tho revenue (rom custuing, with a view of reducing the number of the sume,,’ lh”mvu of apeclal sgents ansfgned to tha uty, recelved from suventy-six collee. tion disteicts, rocommend an_agureguto reduction of 221 employed, involving decrewsy n the annual expensg of.. It 14 proposodto make a roduction per cout in salaries in certaln districts, Which will amountto. ... ,..... o eon e 200,000 There sl twenty-cight disteicts from which reports have not yot been recalv- . ed. Thees, it Is vatinated, i 4.4ho reduction about 25,000 Making o tothl reduction n annuul expenses of collecting tho rovenyo Ofiiiire sonnvnnrieensnssenenanine s SABT,BIT These reductions, ou the first of Jauuary proximo, will be made. i INTERNAL REVENUE. THE REFOKT OF TUK COMMISSIONEN OF INTEN- NAL REVENUE, herewlith transmitted, sets forth In detall the vondition of this branch of the publc service. The followlng shows the recefpts from the sev- esal obiecta of taxation under the intermal-rey- enue laws for tho fscal years ondod Jun 187 and 1870, reapeetively s 1,471, 2H0 4,000, 008 \ Cle...et 07 100, 9B Adlicalva’ stampa,, 1,557, 20 0,518,487 Back taxes nnder repesled laws.... 1,080,111 109, 631 Total ...s The amount of collcctionas, as Ahove reparted, {ncludes commissions on salo of stamps, pald tn kind, and cortain sums reported ascollected but not deposited during thie fiscal years in question, thus cousing an apparont discrepancy between the above smounts of callections and the amounts of such collections shown by warrants coverlng the deposits luto the Treasury, as clsewhere shown, Under the provisions contained in the Legle. Iative, Exceuttve, and Judicial Approprlation bill, approved Aug, B, 1870, the transmission of internal Revenuc stamps to tho oflleera of Internal Revenue can be made nnl{ through the nulls of the United States in reglstered " pack- uyges, & TN TOTAL VALUR OV bTAMIS forwarded to internal Revenue oflicers amounts Lo about $160,000,000 per punum. Ilitherto the vost of Lransporting such stamps by express, without risk to tlte Uovernment, has been about $40,000 per annuni, The present method fm- poses upun the Uovernment the risk, of trans- mitting thet l»{ mail, and of their delivery to the proper partles, thus adding to the risk of trangmission an opportunity for fraudulent transactions, 1n view of the Jarge amount Involved, and the risks Inrposed upon tho Governinent, us avbove stated, L recommend that the provisfons of the act reterred to be repealed. — TXPORTS AND IMPORTS, THR COIN VALUES OF THE EXIONTS AND IN~ ronts of the United Btates for tho last flacal year, as appeats from ofMctul returns made to and com- plled by the Bureau of Statistics, are os follows: Exports of domestic merchantdis 8525, 582,247 Exportsof foreign merchandiso.,. 14,802,424 Total sovienis Imports of goode . Lreens $10384,071 + 400,741, 100 Excers of exports over imports,.$ 79,613,481 For the aceal year 1875 there was an exouss of imports over expurte ummmllng to $10,502,725, showing a dilference of $09,200,200, Exports of specie and buillon.. Imjorts of specio and vullion,.., Excess of cxports ovor fmports.$ 40,600,021 Total excess of exports of mar-m“——‘— chandlee, and the precions met- AID OV IMPOrta,cue sees orersss $120, 213,102 IN TIlE REFONT OF MY PHEDEUESSOR the fact was stated, and Is more fully detalled in tho reportof tho Chief of the Bureau ot Btatistics, that thero was no law requiting per- sons exporting merchandise by land conveyance to Canada to file manifesta containing the quan- titles and values thereof. The valuo of our ex- ports to the Provinees of Ontarlo and Quebec,. during the Jast tiscal year, as tho detafled state~ ments furnished by the Commlssioner of Cus- toms of tho Domlnfon of Canada shuw, amount- ed to $10,507,5063 in excess of that returncd by the customs officers of the United States, With this additlon, the valne of the total exports of thio vear under conslderation would aniount to $550,802, 84, The attention of Congress Is fnvited to the subject, fu tha hope that the defective leglsla- ton above Indleated may bo remedied . durlng thie ensulng sesston, . ‘There was withdrawn from hond for consump- on, In excess of that entered for warchouse, ‘during the past fiscal year, merchandise of tho value of $18,319,340, TILE TOTAL EXI'OITATION OF BPECIE AND DULL~ 58,500, ® 000 302 8 108 was less than thot for the preceding ycar by $135,025,840, whitle the cxynrl.a of damestle goods baye Increased in value $20,298,147. Tmportations of merchiandise have decreased to the amount of $72,274,216 as compared with thoso of the preceding flacal year, nud of $100,- 005,153 ns compared with the fiscal year ended June 89, 1674, Thiero was un [nercage in tho value of the Im- portations of a few artlcles, chlelly raw products und necessaries admitied free, as follows: Barks, medichial, and corkwood, 8011,5105 colfeo, 86,- 107,500; dyeWoods In stivks, '$011,077; juto, raw, $371,490; silk, ruw, 8020302, TIERE WAB A DECHEABR In the valuo of the lmuorlnunn of _chemlienls, drugs, and d‘ycn of $2,031,817; Fum‘l $1H,0013 hides aud kins, $5,501,105% Indfn rubber guita Eumlm, crudo, $611,831; paper matorlals, §010,- :!.cn; $3,140,5473 tin In bars, blucks, and plgs, $510,023; wood, unmanufactured, $488, 001: malt. lquors, $5%0,633; cotton mianufac- turos, $5,012,803; furicy goods, S1LOI0K2; flax and munufactures of, $3,167,100; fruf!.s, $0H,- 1803 glnga and _glassware, 3003,107; lialr, 3507 8445 lenip, raw, $842,763: Iron, and manfacturca 33,8 15,8775 mum‘r cloth, $1,043,4974 lead, $830,003 5 featlier of al kinds, $1,04£,:57; oplum, $231,887; preclous stones, $010,870; fiuxsuud, $2,807,618; silkc manufactures, $184,050; soda, and ralts of, ‘$1,181,032; sugar and niolasses, 818,735,058; lln. and manufactures of, $2,050,- 848; tolaczo, and manufactnres of, $633,447; watches, ete., §5%5,116¢ wines, aplrlta, and cor- dluls, $1,174,130; wood, and manufuctures of, 1,015,005 Woul, unmanufuctured, 82,423,042} wool, ntunufactures of, 811,400,806, THERE WAS AN INCREASH in the exports of the follo urticles, the values belng stated n curred llan corn, W,M{! wheat, $8,775,033; whoat flour, $721,0305 copper, In nhifl bara, and sheots, §2,- 053,8503 cotton, raw, $2, (&.m,w:; cotton man- Incluruu, 33,“.’»{,0.1[]; lcnhwr. anl manufactures of, $3,744,000; ofl-cike, $630,285: mineral oll, crude, SBN,‘.‘!’»D; refined, [t m’sb 3 sperm, $510,533; shot and shell,’ $50%,455; bicon on hams, $11,05L,843; rafined sugar, $2,007,203; Lnl‘qu. £1,04,1705 Umber, sawed and howed, 41, : 1‘lxc'cxpnru of domestic gold and silver in ex- cesnof the finports were $34,102,010, 0s agalnst 02,850,412 for tho provious year, © TUERE WAS A DECREANE in tho value of the exportations of the follow- iIng articlea: Agricultural Implomouts, 3038, 9235 brass, and ioaunloctures of, &n-fll,t&'\'l' clocks aud parts of, $255,823; coppor ore $645,107; fruite, $318.216;" rhanufaclures o hemp, $1,623,8013 pig-iron, $307,690; steam- engines, locomotlve, $434,030; machinery, $1,- 04,4673 muskets, plstols, rifles, and aporting- guns, ‘$,845,2705 manufactures of lend, $32455- 583: rosln aidd turpentine, $335,708; beel, $1,- 01,0531 butter, $HIR505 clivcse, '§150.5%0 lard, $471,037; spirits of turpantine, §213,478; leaf tobaceo, $2,504,108; shouks, ataves, nu headinga, $1,285,923) COMMERCE, THHUY 18 LITTLE CHANGE in the propurtion of the forclgn carrying trade transaceted In forelgn vesscls, about 72 per cent of hinportsand exports, during the last flscal year, having been carrlod in foreign vessels as agalnst 74 per cent for the preceding yeor and T3 per cont for the fiacal year 1874 "The Reglator of the Treasury roports the total tonnage of vessels of the United States to be 4,270,458 tous, o decrease of 574,274 tons from that of the fiscnl year ended June 80, 1875, This decreane ls princlpully caused by tha droppling of canal-boat tonnage exempt under the act of Congress approved April 18, 1874, THE ACTUAL DACKEASH {a bolleved to be about 533,611 tons, thisamount belng tho excess of the Jossvs over the guins durlng the last flscal year, but this decreaso fs reduced to 574,274 tons, by corrections of the balances outstanding. The followlng table ex- bibits the total tounage for the lnst two years: 1474, 18786, ‘l’uu!-.! | Veasels,| Tune, Heglutered..| 2,U81[1,5659,828) 3, 000[1, 502,821 Koroiled and| licenved... | 20, 704[3, 200,004| 22,0262, 080,837 2] 23,03414,270, 458 Total ... | 2, 24314, s, TUX TONNAQR OF VEISHLY BUILT, as given by the Reglster, is 203,580 tons, being decrense from that of the precediuz year of 94,038 tons, or over 81 per centum. The num- ber of vessels built 1s 1,113, Olilelal numbers have been awarded by the Bureau of Statlstics during tha last fiscal'year to 1,783 vesscls, whoye carrying capacity amounts to 972,204 tons, and since July 1, 1876, to 635 vesscls of the uegregute tdnnage of 118,800, as scen by tho followlng statewent showing the number, cluss, and tonnage of vessels uficlally n;x;ln;buud duriuy the iscal year ended June 80, 1876: Clussand character of veasels, Vessals, Hatlluz-vasacls repurted as nein, 657 Tane. 115,714,568 Salllng-vessuls bullt prior 1G B70.00s s oo .o 0 E-Illurvcncl- not stated when buil ,e seeede 112 Bleam vessuls mllunl:tl s new. 204 Stoa essslsbullt priorto 1875 Gy essela not slated when bulls . o B 12,003.54 132,235.90 Steam-veracla Ly 10D Unrigged vessels. b 7,70 Total... verseesens o1, 7H3 292,204.18 The fotlowing table rliows the vesrcls num- ;mwi-gfln;’xd registered from July 1 to November ) Claszaud character of vessels, Ve Tons, falling-veaeels. 07,155,12 Bteam-veeasly 270.81 Unrigied ve 17, 880, 3¢ Total,.... 110,800.20 Of the number of stoam and malling veasals ahova Indicated, 78 wero new sea-goinie vesaels, exceeding 100 tons eacl, grouped as follows: Two veanels of over 2,000 tons each, 4,304,00 Twenty-five verscla of over 1,00t 1] 0 c . 47 4000730, 200, Ninetcen vesscls af H00 tonn each,, 13, 334,71 Twenly-seven v than 600 and over 100tons, . . . 7,807,907 .01,305,47 Aggregate tonnage, RRVENUE MAT This branch of the public scrvice lins been sat. Iafactory In it u}mm Jons during the past year, The Increase In its ofllcizncy, and the reanetion in the expense of condncting it, which It was claimed fn ndvance would_result from the reors ganization recently completed, ara fully reals Ized, The change’ in the charncter ond'size of the vesscls hos enabled them, without augments Ing thelr number, to perform the dutics re- quired in a mors prompt and thorough manner than was before possible. The following is a Uricf oxhibit of the general scrvices porformed by veasels of the revenue marine during the fis cal year endea 80th June last: Number of vesseln in distress A Number of llves raved, uvuuoe on Number of yesscls sctzed or reported for VIOIBtion Of 10W.iuieuesssetinnsoriironaan Number of veaacls boarded and examined., 1if, Number of miles cruised..uvvueeeereceresi, 104,261 The important and hazardous duty of mselat- hlrz vessels fu distress hns beon éncountered with courapnm\ promptitude b'y tho oflicers and men of “tho sorvice, In addition to tho number of lives saved, ax shown above, by the vessels while engaged In this limane worlc 1t ls worthy of note that during the past year they havoasslsted In resculng property, consiating of vessels and thelr vargocs imperlled by the sca, amounting to the estlinated value of $3,231,153, "The expense of matutainivg the service for the flecal year {s $839,753.87, a decided reduction oyer previous years. % A small steam propeller, eapeclnlly designed for harbor duty, has been constrneted and placed in commisslon at Philadelphia during the past scason. The rcv}ulrememn of tho service at that port are now fully provided for. The new vessel intended for the Pacllle const {s nearly ready to be asslgned to duty. This witl supply » ‘want which tho increasiog com- merce and the extension of our terrltory onthat conast by the nequisition of Aluska bave causod to Lo xruntl{ felt. Buveral of the vessels are now {n need of somewhat extensive repatrs, which, however, (t 18 deemed necossary to defer in view of the lim- ited appropriation made to muet the expensca of thu servico for the present flscal year, Unider tho act of July 31 Inst, authorizing the Secretary of tho Treasitry to appoint cadets in the revenue-marino serviee, the nocessary regu- lations governlng thelr adimission havé beon propared and promulgated, and arrangoments made for the examination of applicants, Recommendatlon has herotofore been made for lexlslative provision extending tho benelits of the Navy-penclon laws to the officers and men of the revenus marine, and for establish- ing a retired lst. IN TIME OF WAR, vessels of this servico nre by Inw subject to he called upon to co-operate with the nuvy, while in ponca’ they aro reyuired to engago In thy arduous and gurlluuu work of crulslng In aid ol vessels [n dlatress, a servico particularly cn- Joined durlng the rigora of winter, and at- tended with many dangers, yet the offleers and men are not entitled to penslons save when they have ineurred disability while co-uperating wlth the navy, and thon only at the low rutes allowed fn that servico by tho act of 1814, white tho rates of penslons to the oflieers and mon of the navy huvo been largely Inereased, and ex- m"dtml to thelr leirs, by subsequent onact- monts. About 10 per cent-of the line officers of the revonue marine are now withdrawn {rom active duty b( reason of permanent disability con- tracted fn the survice, and there are & number of othors still activel am‘p!nycll whose fntirnl- ties warrant thelr detaclinont on grounds of humauity and publlec advantage. Tho proper managoment of this serviee, and the dutics fm- {“’“d upon it by law in connection with the ife-suving sorvice, requiro the employment of & cousldcrable nwnber of officers upon specelnl duty on shore. At the samu thme thy number of line oftlcers is limited by Inw to ons of each. grads for cazh vessel fn tho service. In thoe ab- sonce of a retlred list, thorefore, considerabla ombarrassment Is experlenced In supplying com- ploments of ofticers to vessels for thalr safo and efticiont munagement, Further detriment and injury result from the hinderance te promo- tions, caused bLy the rotention of 80 many disabled and decroplt persons, the eflect buln¥ fo measurably weakon tho fnducenient to excellence In the “active' ofticers by Dblocking thelr advancemont, and to reduce the efliclency ol tho servico by keeping young men of ability and energy from the highdr grades of conunand, The recommendations for tho extenslon of the navy-penafon laws to the officors and mon of rovonue-cutters, and the cetublishment of n retired List for tho revenue murlne, are accord- {ugly ronowed. LIFE-SAVING SERVIOE. DURING TIIH PAST PISOAL YHAR anotherlife-saving district of the oloven suthor- {zed by law, designated as Distrlct No. 5, and omnbracing the cousts of Deluware, Maryland, and Virginia, has beon organized, and six of the elght statlons propuscd have been put in apera- ton thereln. Within the ahove-nameda period, the organts- atlon has comprised six distrlcts, and Included the Atlanticconst from the eastorn extremlity of Maine to Cupe Hatteras. Thocost of sus- taluing its operatfons, and tho results of the latter, aro eiven In detall In tho report of tho oftlcer In charee, farnlslicd as required by the act of July 81, 1875, g Hesides the six atatlons ostabllstied botweon Capes Ienlopen and Charles, elzhteon com- plete life-suving stations have been construvted sinco July 1, 1876, four of them on the Atlantie coast, and the remaining fourtuen on the lakes. FOUNTEEN LIFE-IOAT STATIONH have also beou located and built on the lakes, and flve houses of refugo havo been put up on the coast of Florlda, and are now f{n process of equivment. In ddditfou there has boen con- structed a new lilo-saving stution, dusigned to take the place of the present one, at Capa May, Now Jursoy. Ot the eight atatiouns authorized for the Pa- cific Conat, threa bave bten delayed on account of difficulty Iu obtalning titlo to the altes thore- for. Propoeals were fnvited and recolved for the remaining five, but being constdered oxor- " bitant were declined. New proposals for three of the requirod structures havy been recelved, and, appearingg to bo reasonable, have been nce cepted, No bids haye been made for the other iwo, and the wark of constructing them will probably have to b undertaken by the (lovern- ncen 5 ‘Tho occaston of the 1oss%¢ tie erow of tho lite-saving statlon, scven in mumber, at the wreek of the Italian bark Nuova Ottavia, off Currituck Beavh, North Carolina, on the nizht of the 1st of March last, suggests tho propriety of i;mvldlng suitable ponsions for tho wllows and orplians of mea who thus perlsh in the ef- fort tosave Jife, a Lienedt whi might also be properly extended to members of crews grown veteran or becotue disablo in thia ALDUOUS AND PERLIOUS SRRVICE. ‘These mou are Invariably poor, earning a scanty subsisteuco by flshing, ‘and largely dependent upon thelr sminl] pay us surtmen, and oge or in- Hrmity losscns thoir stender ineans of support, while death caves thelr familics unprovided for, The subject ol proper compuusation for the keupers of life-saviny statlons alsodvserves sorl. ous consideration. Thesu keepers are requlred to be men of exceptional guuliilcations anon) their fellows. Thutr duty {s to savo life and proporty Jeoparded by the stranding of vesacls, nm(y ars noted for “their mastory fn handling boats In dangerous scas, and In ‘the hazardous contizuitics of wiecks, und, buing Captalns of thelr respective crews, are responsible for the sclection "and cunduet of the latter, and nust have the faculty of commauding nen. They are also responslble for the publie property un- der thelr chargoat the statlons, At prosent the! "rewilvu finl{- il 2 per .un‘l;mi au 4 absolal necessary hAl thls should he ln’;nnuud. At the stlme of the roorganization in 1871, It wus barely possible tu secury pruper men at this yate, sml up to this thne they huve been rotained chielly upon the hope of sugmented remunerution, This hope hus almost censed to exist, aund the Buperintendents of thy districts represent that thie difll-ulty of ubtainluy rood keepers verges upon imposafullity, Unless AN ADNQUATR COMIENSATION 13 provided for thsse o the wervice niust Incvitahly sutfer, und thoe cauntry be dieeraced, upun some oceaslon uf shipwro:k, by the revela- tion that the serlous dutics of Alfe-savini huve fullew into lncompetent bands, Leglatatlon, therefore, to secira a A keepers of the v padiod, for A mg‘.rlrlnd- lite. uvflm statlons ‘s rcem}x‘s he suceess which has af ? ne !ln reorganization Iy ?ar'f?fii“b‘l'o'fi i fncat; but the conshderation of ity rag ap Jrem- hat tho time cany : 3.”3’1«"“3..'{\'5 r": crrcutlon inton n!ln‘ul ;::lluyitln‘l’n'l‘fiw mlnul‘trlnl.ur. o e : remalulng stations authorized, gmu':m:u ux': r?lllln:ltml ?onl(t "J L".h'n “‘cnl;:;fldfflufil.‘:'"'l y nship of the greafer all the lives and veanels Iniorfien fheceiic” g L iwalve the caro of over 150 tutfane ¢ olfii..fiffi:"’"'n"n'.':} dlmi'lplh:cutlnurn than l.“nhur;;! 3 determinalion and neguf; of proper sites for the statlons: AnTes s the lutter from time to leg "t?v' nlll‘cnh“l‘:?r:[l?r 4 a8 constant chages In the character of at, the grawing f ? erof the const, {‘;flu&. Wing frequency of wreeks at e other cauges, may g lmf o ldevlnlng. ercction, nn’d ""‘fr’ifi“r'vfi‘ on of statton-houses sultable for the accomig. datlon of crews ay bl the protection nlnd those they rescue, and for cquipments; the Judiclous purchin furniture and supplics; th " oy eflicient district mupemtenics o 5oL tble and keepers, a surfmen, and the constant supervlsion ot surfmol, o of thelr “(;m .Lm’ i the careful tabulation of wreck ata- TIE BENEPIT OF SIIPPING INTRRESTS: the perpetual reference to nlull“urluu:‘?u‘nrug of Inforinntion nt home aud abroad for dats and * suggestions calenlated to further the develop. ment and perfection of the systems and the u!;- ceasing survelllauce of all Dlans, devices, and Inventiona for establiabing communication ity wrecks, or saving lives mperfled upon the, fncluding the practical trinl and decialon pon the availibllity of suct os may be resented—al) partain to the scope of the Life- aving Service, and amply fustity ite formal creathon ns e and its committal to the care of an ex; erienced and able ofticer, who can devote to it Ym und(- vided facultics and encrgles, Tho legislation proper to accomplish thig eng is ’i‘l'nurclf;n’u{r‘c’:cunlnzlcn\lcd. io act of June 20, 1874, provides classes of lfo-saying mcdlln{’llm fest lf;rmt;‘v; stawed on thase persons who signally endanger thelr lives In tho elfort to rescuc others, aud the secoud for those who show In similar endeayors. o gulluutry less Lnzardous in degreo, IT 18 SUOOESTED that thera are Instances where, without 1ife bee Ing actunlly risked, signnl exertions are made {n renderlygs asalstance to shipwrecked or drown. ing persons, Involviug consfierable eacrifices of tinie, yersonal comfort, and praperty, and that a madification of the act, 80 as to recognlze, une tler the proviston for medals of the second clags, mt‘ll:: fin.;els‘,‘ might b: expedient, : der tho present system, a constant pa tho const i maintofnioy bythekeepers of' umfi{ saving stations for from fonr Lo six months of the year, togetlicr with some degres of ‘Watch- fulness for thie remainder, By vesting these keepers with the powers of inspectors of cus. tomg, an effective conat-guard, lurgely preven- tive of smugeling and ulnm’lcrlng of wrecks, might bo ecreatod without expense, and leglsla- tlon to this effect may, be deemed advisable, Durlog the year s¢veral donations of hooks, to form librariea for the use of the crows of life: saving statlons, have boen recefved from beney- olent persons, They will undoubtedly conduco to the welfars of the service, by refievi ng the tedium and mounotony of the watch at these fso- lated positions, and suitable cnses have been prepared for tleir protection, and niso to enable them*to be exchanged from tima to Lime be- tween the statlons, with o view of extending thelr benefits, ‘The usuial statistics of disasicrs to Amerlean shipping, required by act of Congress, June 20, 1874, will bo found appended to the annual re- port of the operations of the survice, LIGHT-IIOUSES, DURING TUE LAST ¥ISCAL YEAR twenty-nine new light-louses, &4 river lights, 13 fog-signals, 45 beacons, and 81 buoys have teen catablished, and 14 light-houses, 13 river lights, 1 light-ship, 11 beacons, and 7 buoys have been discontinued. The total numberof such s ab the close of the ' year were 037 light-houscs, 201 river Jights, 80 light-ships, 57 steam fog-sl- nals, 418 beacons, and 2,075 buoys, distributed upon an extent of ocean, lake, and river coast unequaled by that withia the scope of any simi- Iar cstablishiment In the world. The mulifarfous dutles connected Wwith the lighthouse service huve been satisfactorily per- formed by the Lighthouse Board, and the cn- tire cstnbiishment is In an eflicient and credita- ble conditton. ‘The proposed Introduction of mineral oft as an {lluminant for lighthouses has been delayed by aclaim that the burner used by the Light- Touse Board Infringes a patent granted to pri- vato parties. - Thie matter is recelving the atten- tlon of the Board and tho Dopartment, and it ls hopea that the delay will bo but temporary. The Jights recently placed upon the Western rivers continue to'give great satisfaction to the Immenso shipping interosts upon those waters, and the opinion I8 freely expreased by river-men that the lighting of the rivers, which las bren effected nt o COMPARATIVELT TRIPLING EXPENSE, has been of greater beneflt to cumuieree than all other measures tuken by {he Government for thelr hnprovement, Light-ship No. 41, for which an appropriation waa mule h{ Congrees, I nearly compluted. ‘I'hls vessel hnas been bullt with great care, and fitted with every uppliance to make hor ssfe ond efficient, §ho will have, for fog-signal pur- poses, a calorie slren, from which exceltent res sults are expocted, and will be a valuable addi- tion to the aids nevded upon our coast for the safoty of mariners, In Its estimates the Light-houss Board has agatn nsked nu approprition for huilding 8 light-house at or In the vicinity of AMHIICAN SHOAL, MLORIDA REEP, ta Mght the dark spacy betweon Sombroro and 8and Key Izlits, Owing to the strong and varl- able currents along the Florlda yeuf, navigation 18 difficult and danjeerous, many wrecks lovoly- ing heavy loes accurring cvery year, The light upon Auierican Bhoal is ono of “the syatem pro- posed hy the Light-liouse Board for purm-nemj and oflleiontly lighting this daugerous const, 8o should bo butlt without gnuecessary delay, The Board lus ulso estimated for money to lnco o light-ship and fog-slgnal upon Tfll\l(! lioul, & troublesomes and dangcrous lo:ality off tho south cuast of Lonlsiana, und for a hew steam-tendor for the Pacltlc const, Both these ftemnsurs of especlal fmportance, and should ro- colve attentiou. COAST BURVEY. THE IMPORTANT WORK COMITIED TO TAIS BRANOI OF THE PUBLIC EAVICE hos been advanced duriug the year by numer ous reconnafssances, triaugulutions, tidal oliser- vatlons, and exteusious of coast topography at nearly 100 locallties upon tho Atlantle, Gulf, and Paclflc consts, Thero have also been certal determinations of lutitude and longltude n somo of the interfor States of the Unfon, several of which have rcceutly instituted systematlc survoys of thelr aren, Tido-tables for the m'ln- clpal sca-partaof the United Btates havo !Mf: publislied, a number of now charts of the wu; finlshed, und others m;vu :ucclvm’ldul«!{!l\')‘l‘l:"“: g ond volnme of tho ¢ f:"'zm'#’nfi; :l"hl?u‘abilnlmllmcn under prepuration y d, :3‘#{.'.“.“:;',’.;‘;’;{-‘3 groouuucn AND NAVIGA TION, ik each of the dangers that beset tho coast Is veloped and inurked n its true relation ‘!t:! !(1.1; hore-line, Fortunately tho processes u.“ o such purposca avsll slso for utlxcrnblet o e finportance of which 18 upldly Imrefi m; alung the seaboard for surveys needful i e fmprovement of chanuel entrances, .niluol port-warden linesin harbor, involving stud & tho cffect of tides and currents whet conjo neronchnent, L m’i“l‘ly mf-l:lnu';u-nnw Telationa of this eatablish vith the Light-House Hoard have bu'u' mfifi:‘ln‘lfiej, mlul It-uurchlve» have mul:rl!nl::y“fir pisted tho englncering operations of the on the scacoast, MARINE MOSPITALS. = THA SUPERVISING BUBGEON-GENEMAL "“auu that & larger number of seamen havo .-';Ioa- themsclves of tho benefits of the Mmrln;- o pital Service durlng the flscal yoar 1570 tl‘u‘ K any previous year of the exlstence of tha! et fec. Incrensed facllitivs ars afforded for ol e {ng rellef, und mauy of the unl-rlng‘wlu. o fujurcd or taken sick at places where i Wit practicable to provide proper earo are 8 R the nearest rollef port ab the expense © w sorvice, Reliel I now furnished at :nluatty:w ports, and 10,801 seamen :unlnlv:&l Care ent durfug the yeur just closcd. m’l’h- expe;dnum from the fund cont.:lm{l[:l: by the scaman amounted to Mlfl.fll"l-’;’ ot ni:ccsnry repalrs ml:ln::k hu:g:‘tnl“ .’Ix:;:l:d'::[.. s ¢ ¢, fue ts, e I ia. it tima pald out ot ml: Al 4 k. " Mustyo Hopltals st Moblley A1 o % o v, witlels were Tense ot i Gl Loulsvltle K¥o N elittod aud aewn opeosdf oot 1, 175 and exchiatvo nso of seumen on Bept. b 5:‘::.‘1‘;0‘:0. respectively, e Clov land