Chicago Daily Tribune Newspaper, December 3, 1878, Page 10

16 THIL CHIC At mATy-yands., 17,365, 401,97 For misceiianeon: rra, ing publie nfidtngs, Heht-h rolecting the reveue... For interest on the puhilic'd Total ordlasry expenditores. Leaving asnrplus revenno of.... Which was anplfed as foll o SR eiichivi o o Hen Tressury. Total.. The amount duc the Sinkl year was £15,424,001.80,—leaving s detlciency on this account of $14,029,440.90. Compared with the previons fiscal vear, the recefpts for 1878 have decreased £11,984,706.00, in the following ftenis: In customs-revenue, $783,812.87; in Internal revenue, £8,048,783,00; in senal-annual tax on banks, §$215,408; in sales of Government property, £94,483.08; in profits on rolnage, $1,582,478.75: and In miscellaneous items, $1,267,740.30. Therc was an increase of $748,088.17, as follows: In proceeds of sales of public lands, $103,439.00; In premium on sales of coln, §67,621.52; and {n miscellancous items, €577,000,00,~making a net decrease In the re- celpta from all aources for the yesr of $11,230,- 0792 "I'nc decrease of revenue is principally due to the falling off in the recelpts from internal rev- enue, which was probably caused by the azita- tivn in Congress, fora Joug time, of tho re- duction of the tax on splrits and tobaceo. ‘The expenditures show an increaso of $7,781, 70,03, as foliows: {n the Navy Dopartment, 32,405,%60.01, ond In the iaterest on the public debt, $5,376,20,07,—the latter of which was due to the Jarge halupce of $7,420,610.81 uupald In- terest ot the commencement of the year, and to the change from senn-annusl to quarterly pay. ments of Intercst on 8§ per cent Londs converted fnto 4 per cents, which would not otherwlse hare heen made untll after the close of the year. There was a decregse of 80,477,411.21, a8 follows: fn the War Department, 84,978,634.03; 1n the Interior Dapartment, $1,474,460.13; and fo the civil and niscellancous, $3,074,803.03,~making & nct decrease In the expenditures of $1,005,~ 682.13, PISCAL TEAR 1870, For the present fiscal year the rovenue, actual 1nd estimated, will be s follows: Jorthe guars Eor the rematn: ier anded Sent, “ing inree.gunr- A teraarthe year, g S B L0810 & e TI 10 FTOM CUAOME, oy serss BIR W, 31, From { 24,575, 144,40 B4 N nul Fevenne, v 200,785.03 760,234,357 3,308,619.03 3,381,480.07 From repayon tereat by Paclfo Ka! Frond Companion. ... 07,710 952,202.00 rom custaniu- 244,533.03 703, 160.07 508, 800.70 1,491,109,2¢ 41,127,351 208,874 40 LRI ) 44,038.77 3; 71,003.31 1,728,031.60 o LOONUTAT 1,219,072.8) 874, 5011, 72041 $191, 1A 376,57 The expendiiures fur the same perlod, actual and estimated, will be: Por ihe quars ter ended Aept, B0, ju4, Actual. For theremain- ing three-quar. teraar ihe your, Eroenditurer, Estimaied, For civii and miscel. Inneous expenses, fo- nblfe Lukid- 4,510.02 § 70,035,420, TALDIT2Y N,00 4% 7D TWL40803 3 0,238,000.87 28,741,000,13 navy-yards. 4 4,520,742.84 10,470,257, 16 Foriateren o s pap: 02074 BT e dubt... .. - 33,007, 437.06 63,034, 572.04 Total ordinary ex- penditurer, $73.344,872.27 100, 7! recelpte, actual and eatimate Tpendiiures, sctual and eatimated.. 240, 10,00 Leaving s halancoof... 4,400,000 Avplicable to the Binking-Fund, which is csti- wated for the year at $36,054,007.87, FIRCAL YEAR 1880, ‘The revenuca of the fiscal year ending June 00, 1880, catimated upon existing laws, will be: 20,73 00, 140 vom £ales of public [snd,.. 1,000, 03,0} rom tax on clrculation au Natlonal danks. . 0,790,000.00 From repavment of Inicrest by Pacifia Haliway Companies 1400,000.00 v 1, 10000, 0 3,000,000,00 250,000.08 1,00 (e 00 From misceliaucous sources, LA Total onliniry recelp! 3, 30, 000,10 The estlinato of expenditnres for the same period, received from the several Executive De- partments, are as follow: propc; uiR prof $ 2,WL100.28 S S T X Treasury Deosrt War Departmen Navy Departmen 3730000 Interior 4271504 1000, (U 1, 4%, ) £.007,70,10 MG W00 D000, 00,00 T, T, 2 ‘_ll-)nd‘gl ele. &fl-\im.m Coliecting r IR, (N0 Miscellaunous, 13001200 Total esttmated oxnend = cludiug Bluking-Fund. Or an catimated doficit of .. £ 10037,2Y004 Excluding the Swking-Fund, the estimated expenditures will be $238,801,012.08,—showing o surplus of $23,105,087.43, By direction of the Presldent, the cstimated expenditures for the nexe fiscal vear have been Lased upon the avpropristions mude by Con- gresy for the prescnt Hacul year, Tho rule has Leen departed from only as to those brauches of the public service beloneing 1o Departments the heads of which deen the estimated Increase ju- dispensable, or where cxistiog law demauds 3 grester sums than was appropristed. Such fu- crease |s eothinated for os follows: Legislat Treasiry War Department. . Navy Deparuneat,. Interior Department Post-Otfice Deparcme Department of Justice. 27, 137, 360 04 Leas decreasy (n cattin meut of Sial Netincrease, , 643, 68 "Farnestly deslrous of co-operating with Con- gress luthe reduction of expeuditurcs to the lowest sum consistent with the proper cxecution of tho law, the Bucre las reducod the ex- venses of the customs service, duripg the last fiscal year, compared with the previous year, lu the sum of $778,493.25, aod hereln recommends changes of the law which will cnablo bim to make furtber reductions therein. ‘The great body ot expeaditures fs fized by laws which leave no discretion to Exceutive ofticers. The reduction of appropriations docs not reduce ex- penditures when the law requires the service to be perforued, or fixes the salary and number of employes. It must be accompanied by a careful revislon of tho laws, reduclog the ubjects of ex- pendituro or the bumber or compeosation of ewoloyes. {tis belleved that, by such a revls- fou, especlally of the postal laws, and by & liwm. itation of $he swount of appropristions for pub Yic works {n progress, by the postpouement of new works not indispcosable for the public service, aud by judiclous scrutiuy of disburse- meuts, the expeuditures for tho next fiscal year ueed not, io the aggregate, exceed the appro- vristions for the prescut fscal vear. ‘I'ie estlinate of revenne, based upon existing law, is $6,736,121.80 wore than the actual reve- Due of the past year. This estlinate can valy be renllzed by s stricy wod (wpartial enforcement of the Revenue lawa, 'This fs not only u legal duty of revenue ullicers, but it s the right of every bouest taxpayer. The coforcewment of the tax oo spirits und tubacco has, In somo ploces, been reslsted by formldable combina- tivos too powerful fur the Departwent, with tho furces at fts comwmand, to uvercome, ‘The cus- tows-duties, fu wany cases, bave been evaded by smuggling, traud, undervaluation, and faise ! clalms for drawbacks and damae-allowance, Soine of these obstructions are inctdont to the execution of any tax lat, but many of them may be overcome by sich modifieations of the laws as are herelnafter recomeacnded, Itis manifest, from thess estimates, that, however desirable it may be to reduce existing taxes, It ought not now to he done cxeept by supplsing the rednctions from othér sources of revenue. Btability and certalaty in the rate and subject of taxationare of great importance, and, therefare, the Secretary recommenids that no change be made in them during the present sneslon, except Lo convert certaln ad-valoremn dutics, hereinafler stated, fnto specife dutles. RESUMPTION _ OF SPECIE-PAY- MIENTS. ‘The important duty imposed on this Deoart- ment by the Resumption act, approved Jan. 14, 1875, has been steadily pursued duriog the past year, The plalu purpose of the act a to secure 10 all interests and ail classes the benefitsof a sound currency, redeemabls In coin, with the 1cast possiblc disturbance of exlsting rights and contracts. Three of its provislons bave been substantiaily carried Into execution, by the grad- ual substitution of fractional cola for fractional cuarrency, by the free colnage of gold, and by freo banking. There remains only the comple- tiou of preparatfons for resumption In coln on the st day of Jaanary, 1870, and its malnte-- nance thereafter upon the bnsis of existing laws, At the date of iy annual report to Congress In December, 1877, it was deemed necessary as s preparation for resumption to accumulate inthe ‘I'reaaury a coin rescrve of at least 40 per centof the smount of Unlited States notes outstanding. At that time it was anticipated that, under the provisions of the Resumption act, the volume of United States notea would be reduced to 8300, 000,000 by thie 1st day of January, 187, or soun therealter, and that a reserve fn coln of 8120,000,- 000 would then be suflicient. Congress, lowever, iu view of tho strong popular fecling agalost acontraction of the currency, by the act ap- mraved May 31, 1873, forbado the retirement of any United States notes after that date, leaving the amount 1o circulatfon $346,681,016. Upon the principle of safety upon which the Depart- ment was acting, that 40 per vent of coln was the amallest reserve upon which resumption cotld prudently be comumenced, It became nee- cssury to lucrease the coin reserve to $183,000, At the clgse of tho year 1877, this coln rescrve, in excess of coin Nabilitics, amounted to 863,- 016,030.99, of which $15,000,00) were obtained by the sale of 43¢ per cent, and $23,000,000 by the aale of 4 per cent bonds, the residue being aurvlus revenue, Subscquently, on the 11th day ol April, 1678, the Recretary entered uto a cot- tract with cartatnbankers in New York and Loo- don—tho partics to the previous contructofJune 4, 1877, alrcady communicated to Congress—for the sale of §3,000,000,000 43¢ per cent bonds for rflum’nlun purposes. The bouds were suld at a prumium ot 13¢ ner cent and accrucd Inter- est, lcsn 8 cominission of 3§ of 1 per cent. The cantract has been fuifliled, snd the net proceeds ~§50,500,000—have been pald intothe Treasury 1 gold cotn. Tho $5500,000 coln patd on the Halifax award have been replaced by the aale of thut amouut of 4 per cent Londs sold fur re- sumptiou purposes,—making the ageregate amount of bonds rold for thuse purposes 895,- 500,000, of which 815,000,000 were 3! per cent hotils, and 30,600,000 4 per cent Louds, “To this has boeu added the surplus revenuo from time to time. The amonnt of coln held in the Treasury on the 234 day of November last, fn excers of coln suflicient to pay all acerued coin llabilitica, was $141.833,100, and constitutes the voln reservo propared for resumption purposcs. ‘This sum wilt he dlintnished somewhat on the 1st of Janusry next by rcason of tho larze amount of Interest accrulng un that day In ex- ceas of the coib revenua received meanwhbile, In anticivation of resumption, and Iu vicw of the fact that the redemotion of United Ntates notes Is mandatory only at the oflice of the As- sistant Treasurer fo the City of Now York, It was deermed linportnat to securc the co-uveration of the Associated Banks of that cltylo the ready collectlon of drafts on thesc banksandin the pay- meat of Treasury druits held by them. Asatis- factory arrangement has been mode by which all draftson the bunks beld by tha Treasury are to be paid nt the Clesring-iiouse, and all drafts on the Treasury held by them ore to be pald to the Clearlny-llouse at the oflico of the Asslstant Troasurer, In Unitcd States notes: and, atter the 1st of January, Umted Hiates notes ure to bo received by them as coln. ‘This will greatly lessen the risk and labor of collections both to the Treasury and tho banks, Every step In theso proparations for resumpe tion has been accompanied with Increased bust- nesa and confidence. The accumuiation of voln, Instend of increasingsts price, as was feared by wany, hos steadily reduced It premium in the market, The devresstng and ruiuous losaces that followed the panic of 1870 had ol dunin- {shea in 1875, when the Resumption act pasved ; but every measure taken In the execution or en forcemont of this act has tended to lighten these lusses, and to reducs the orewlum on coln, 50 that now itis mercly nomiusl. The present condition of our trade, industry, sud cummercy, hereafter more fully stated, our am- ple reaerves, and the general contldence inspired in our fnanclal condition, seem to justily the opinion that we are prepared to commence and maintain resmnption from and afier the let day of January, A, D. 1870, 'The mcans and manner of dolng this are left largely to thie dlscretion of the Sccretary; but, from the nature of the duty lmposed, he must restore coin and bullion, when withdrawn {n the roccsd of redemptlon, either Ly the sslo of nds, or the use of the surplua reveaue, or of the notea redeemed from tine to time, ‘The power to sell any of the bonds described In the Hefuudlog uct continues after as well as befure resumption. ‘Though it may not be ofteu uscd, it 18 essential to enable this Depart- ment tomeet emcrgencies, Hy its exercise it 1s anticipated that the T'reasury at any time can readily obain coin to relnforee the reserve al- ready accwanlated. United States notes must, however, betho chlef mcans under exlsting law with whleh tho Department must ruatore coln aud bultlon when withdruwn n process of ro- . ‘Tho notes, when redeemed, must rily nccumulate in the T'reasury until their superior use and convenience for lreuls- tion enables the Departient to exchange them at_pur for colu or bulllon. “The act of Mav 31, 1STS, already referred to, vides that, when United Statcs notes are ro- or recetved in the Tre under any Inw, fromn any source whatever, hial! belunig to the Unlted States, they shall not bo re- tlred, canceled, or destroyed, but shall be re- ulnud. and pald out azaln, sud kept {n clresla: tion, | The power to refssue United Btatea notes was conferred by See. 1,670, Roviscd Btatutes, and was not himited by the Resumption act, As thls, howeyer, was questioned, Congress wisely removed the doubt, Notes redecmed are like other notes recalved Into the 'F'reavury. Payments of then can ba made ouly 1 consequence of approvriations mude by law, or fur the purchyse of bullivn, ur for tha retunding of the puniic debt, ‘Fhe current receipts from reveuue are suf- flelunt Lo meet the current expenditures as well o3 the accrulug interest on the public debt, Authority is conferred by the Refunding act to redeem 0 per cent bouds as they becotne res deemable, by the proceeds of the salo of bouda Learing u lower rute of (oterest. ‘The United Stutes uotes redeemned under the Resumption uct are, therefore, the Yfludpfl mewns provided for the purchase of bullion or colu with which to_mulutain resumptlon, but shuuld oculy be pald out wheu they can be used to replu‘e an crual smount ot coln withdrawn from the Hes sumption fund. They may, {8 I3 true, be usvd for current purposes lku other mouey, but, ‘wihien su used, their place is 8ited by mooey re- celved from taxces or other wources of revenue, 1n dally husiucss, no dtstinction need bewado between noncys from Whatever source received, but they may proverly be applied 10 any of the urposes authorized” by law, No duubt culn tabllities, such us futercat or priocipal of the public dcbl, will be ardinarliy paid and willlogly recelved lu United Brates notes, but, when de- manded, such paywents will be made coiuj and United Huates notes and coln wilt be used in the purchase of bullion, “This method bas al- ready boce adopted {o Colorado and North Curuling, aud urraugements are belug perfected tu vurchase butlion in this way io sll the win. iug regiuns of the United States, By the act approved Juue &, 1878, the Becret tary ul the Treasury ks wuthorized to coustiluto auy Buverinteudent ol & Mint or Assayer of soy Asssy-Oilice an Asslitant Treawaurer of tho Unlted Btates to recclve gold vola or bullfos on depont. By the Legafative Appropriation bill approved July 19,7 1574, the decrutary of the Tredsury ls suthorzed (o fsaue coln-certiticates lufifl“fltul to degositors of bullion ab tue suv- [ luts wnd Aasay-Otflces of the United Btates. These provisious, intended to secury to the producers of bullion more speedy paywent, will vecessarily briog foto the Mints sud Treasury the preat body of the preclous mctals mined io tho Unlicd States, sud will tend greatly to the easy und steady supply of bulllon fur coinage. Uvited States nutes, wlicu 8t par with colu, witl be readily reccived for bulllos lustesd of colu-certideates, sud with great wdvantago sod couveoleocw (0 the pro- ducers. Depusits of coip fu the Treasury wil), no doubl, coutiuue to be wade slter toe st of e. Tothy gold and allver cofn, from fta weizht and bulfs, will naturally seek such a safe deaoslt, whi pules redeem- able in cofn, frum thelr superior convenienee, will be circulated fnstend. After resumution, the distinction between coin and United Htates notes should be, as far as practleable, abandoned In the eurrent affafrs of the Gavernment; amld therefore no enin-certilicates shoubt be faaved except where expressly required hy the pro- visions of law, as tn the case of silver-certifl- vates, The rold-certifivates hitherio frstod by virtue of the discretion conferred upon the Secretary will not be {ssied alter the 1zt of Jan. unry next. The necessliy for them daring & suspension of speclc-pavment s vbrlons, but no longer exists when by law every Unlted States note is, in effect, 4 cofn-certificate. ‘The only purpose that conld be snhecrved by thelir isana hereafter wonld be to enanle pereons to convert thelr notes Into cofu-vertificates, and thus contract the curreucy and hoard rold in the vaults of the Treasury, without the fncon- venlence or risk of its custodr. For convenicnee, United Btates notes of the same denomination a8 the larger coln-cortifithtes will b issued. By existing law, customa-duties and the inter- et of the public debt are payable in cotn, and & porifon of the dutlus was speciflenlly plmfw.u] as o special fund for the payment of the interest, thus makipg one provision dependent upon the other, Aswe cannot, with dne regard to the public honor, repeal the obligation to pay coln, we ought not to fmpatr or repeal the means pro- vided to procuro cofn, When, happlly, onr notea are equal to coin, they will Le accepted as coln, both by the public creditor and by the Govern- ment; but this acceptance shonkd be lefs to the optlon of tho respective parties, nnd tha legal right on both sides to demand coln should be preserved fnviolate. The Secretary is of the opinfon that a chango of the law {8 uot nevessary 1o nuthorize this De- partment to recoive United States siotos for cuntoms-duties on and after Lhe ist of January, 1870, while they arc redeemable and are re- deemed on demand In col, After resumption it would scem a useless incunyenience to re- quire payment of auch duties incolu rather than tn United States notes. ‘The Resumption act, by clear fmplication, 2o far modlfics previous lawvs as to permit payments in United States notes as well as in cotn. The provision forcoln- ayments was made In the inkdst of war, when [ha notes were depreciated and the publte tie- cessities required an assurcd vevenue lu coln to sttpport the public eredit. This atone justided the refusal by the Government to take its own notes for the taxes levied hy it. It has now definitely assumed to pay these notes in coln, and this necessarily impiles tbu receint of these notes as coin. To refuse them is only to luvite their presentation for colm. Any other von- struction wouldrequire the notes to be present. ed to tha Asaistant Treasurer in New York for coin, and, it used In the purchass of bonds, to be roturned to the samo oflicer, or, If ysed for the payment of customs-duties, to be car- ried to the Collector of Custome, who must daily deposit In the Treasury all money receiv- ed by him. Itis not to be assumed that the law requires this indirect and inconventent process after the notes are redecmable it cvin on de- mund of the bolder. 'They are then at a parity with cofn, and both shouild be received indis- criminately. T Unlted States notes aro reccived for duties at tho Port of New York, they should bo re- celved for the same purpose in 6il other norts of the United States, or an unconstitutional nref- erence would be given to that port over other ports, If this privllege {s denfed to the citizens of other ports, they could make such use of these notes unly by tranaporting them to New York and transporting the coln to thelr homes for payment; and all this not only “without bepefit to tho Government, but with aloss in returning the coln again to New York, where It 1s required for redem[nlan purposes, The provision in the law fur redemption in Netr York was belleved Lo he practical redemp- tion in all parts of the United Stares. Actual redemption was confined to a stnirle lace from the necessity of maintatning only one coli ro- serve, and whera tho coln could be casily accu- mulated and kopt. With this view of the Resumptlon act, the Becretary will feel it to be his duty, unless Con- gress otherwise provides, to diréct that, after the lst day of January next, and_while United Btates notés aro redeemed at the Tressury, they be recelved the same us coln by the oflivers of this Department in oll paymenta fn all parts ot the United Btates, 1f any furthor provision of law fs deemed ncmunrylngoym o authorize the receipt of United States notes for custnmn-dues or for honds, the Secretary respectfully submits that tiis authority should continue onty while the notes are redeemed fn coln. However dealrabla continuous reswinption may be, and however confldent wo may feel in ita maintenance, yet tho experienco of many natlons has proven that it mav be bnpossible o periods of great emer- geney. In such ovents, the public faith de- mands that the custom-duties shall bo collected fn cofn and paid to the publle creditors; and this pledge should never be violated, or our ability to perforin It endangered. ? Heretolore, the Treasury, inthe dlsburse- ment of currency, has pald “out bllls of any de- nowination desired, 1n this way the number of blilsof alcss denomination than $ is de- termined by thedemand for them, Buch would appear to be tho true policy alter the 1st of dJanuary, It has been urged " that, with a stew to place In circulation silver cotus, uo bills of Iess than 85 should be lssued, It would scem to be more just aud expedient not tu - furce any form of monoy upon o public credltor, but to give him the option of the kind and denuminas tion, The convenlence of the public In this respect should bo consulted. ‘The only way b which moncys of different kinds and intrinafc values can bo maintained In circulation at par with each other, is by the obility, wheu one (s {n excess, to readily exchange {s fur the other. ‘This principle 1s applicable to coin rs wellas to paper-money. In this way the largest amount of money of different kinds can be matntained at par, the different purposcs for which each §s {ssued making o demand for it. Tho refusal or neglect;to malntain this species of redemption Inevitably cffects tho exclualon from cireulation of tho most valuable, which thercafter hecomes a commodity, boucht aud sold at a premhn, When the fiesumpllnn act passed, gold wus the only coln which by law was o legal-terder in paymient of all debts, ‘That act contemolated resumnption in gold coin only. No sllvor coin ot full legal-tender could then be_lawfully lssued, The only silver coln provided was fractionsl coln, which was a legal-tender for 85 only, The act spproved Feb, 28, 1873, mode a very tm- portant changa (n our colnage system. " The sllver dollar pravided for was made a legal-ten- der for all ‘debts, public and private, except where otberwise cxpressly stipulated fn 1ne contract, The sinount, of this coin lssued wiil more nmnerlg ba stated horealter, but {te ¢ifect upon tha Sro tem of resumption should be here comsidered, The Iaw Itself clearly shows that the sil dollar was not to supersede the gold doll nor did Cougress vroposs to sdopt the winile standard of aliver, but only ta cruate o bl-te- t2llie standard of silver and gold, of eyual value aud equal purchaslng power. Cunuress, there- fore, lhnited the amount of sliver dollars to be colued to not less than §2,000,000 uor wors than $4,000,000 per inonth, but did uot lmit the sygrogate smount nor the peeld of thme dur- Iz which this culnaze should continue. ‘Ihe market-valus of tho stiver fu the dollar, at tho dato of the passage of the act, was 34 cents i gold coln. Now 1t Is about 8 cents fn gald cotn. I It was intended by Congress to adopt the silver {nstead of the wold stanaurd, the awount provided for Is totally lnadequate for tae purpos, Experience, not ouly i tuis coun. try, but in European countries, bas estublisheld that a certaln amount of sliver coin mav he mafntained In crcutation @t par with gold, though of lege intriusic bullion value. 1t tvus, no doubt, the fotention of Cougress to provide & coln {u sllver which would suswer o luultitude of the purposes of businesa-life, without ban- {ahitnr from eirculation the establised gold coln of the country, To sccomplish this it is mdis- pensable efther that the sllver comn be limited in amount, or that {ts bulllos valuo be equul to that of the gold dollar. € not, its uso wiil be lmited 10 domestle purposes. [t cannot be exe orted except at its commercial value as buli- on. 11 fssucd in excess of demunds for do- mestic purpuses, it wiil necessarily fall in mur- ket-value, and, by & well-known priucipte of tinance, will Leeime the sole colu standund ot value. Gold will tis either hosrded ur exported. When two currencies, both legul, aro authorized without limlt, the cheaper alone will circulate, If, bowever, the lssue of the silver dollars is lumited to an umount for cirenlation, there wall bs o deprecistion, and thelr conyeulent uss will keep them st var with gold, as fractivnal- silyer colv, Lesued under tho act approved Feb, 21, 1553, was kept ut fi" with gold. ‘Toe wnonne of such coiv that cup thus be maintained at par with gold cannot be fairly tested uotll resumption {8 sccumplished, Aw yet paver-inoney bas becn depreciated, aud sile ver dollurs, betngg receivable for custumns ducs, bave naturally not entered futo gencral clreula- tion, but have returucd to the Treasury i pay- went of such duvs, aud thus the ouly “eifect of the attemnt of the Department to circalate them hias been to diminlsh the gold rescuue After resutnptlon thesa coing will circulate ja cunalderable sutus for swall psywents, ‘L'u the extent that such demsnd will givs cupluyment to sitver dollars, thelr use will be au aldto re- suwption ratber thuy @ bindrance, but, If {ssued iu excess of such demand, they will at ouce tend to displacy gold aud becuiny the sole standard, wud gradually, as they lucrease ju uvwmber, will 1all to thelr vulue us bullion. Eveu the fear or susuleion of such av excesa tendsto banlsh old, sud, If well established, will cause s conzlnuous dralu of guld uptil unperative uecessity will vuwpel resuitive fa sliver alone. The scrious elfects of suvl @ padival chuuse i our stub Z.cis Januare, a1 hereto! r AGO TRIBUNIS: 'WUESDAY, DECEMDIR 3, I878&—TWELVEl PAGES. of value cannat be exazzerated; and fts possl- Bty will ceeatly disturl-conildence in resumo- thon, aud way ke necessary larger rescrvea anl furthor sales of bonds, ‘The Sccretary, therefore, earnestly nvokes the attentlon of Conzress to this subjeet, with a view tnat, cliher durine the present or the noxt sesston, the amount of stiver doliars to bo fs- sudd ho timtted, or thelr ratto to gold for cofn- Ing varposes e changad. Goid and silver have varled (n value from time to thue in the hlstory of natlons, and laws have been passed to meet” this changlng value. In onr countrs, by the act of Aprilt 2, 1502, the ratlo between them was fixed ut vue of uufll o tifteen of silver. DBy tho act of June 29, 1834, the ratio wan changed to one of gold to sixteen of eltver. For more than a ventury the markot yalug of the two metals had vafied between these two ratlos, matnly resting at that fixed by the Latin natluns, of one to fifteen and o hall, But wo cannot overluok the fact that within a few vears, from canses frequently discussed in Congreas, a great chaugo has ocenrred in the retative valucs of the two metals, [t would seetn to he expedient to recognize this control- ling fact—one that no nation alone can chanyge —by o careful _readjustment of the legal ratlo for cofvugre of ona to sixteen, 50 _as to con- form to the relative market values of the two metala. The ratios herotofore fixed were always mode with that view, and, when made, dId conforn as near as might be, Now that the production and uso of the two metals have greatly changed in relative value, a corresponding vhauge nust be made in the colnage ratio. Thero Is no peenllar force or sauction in the present ratio that hould make us hesttate to adopt another, when, in the markets of the world, it 18 proven that such ratio Is not now the tria one. The addition of one-tenth or one-clohith to the thickness of the silver dollar would scarcely be perceived ns an Inconvenfence by the lolder, but would inepire confidence, and add greatly to its_circulation, As prices are now bascd on "Unlted States notes at par with gold, no disturbance of valucs would resull frum the chauge. It nppears from the recent Confercnce at Parls, Invited by us, that other nations will not Joln with us In tixing an internatlonal ratlo, and that edch country must ndapt its laws to its own |mlluy. The tendency o lato among com- mercla) atlons {8 to thu adoption of » singlo standard of gold, and the fssue of silver for fractional coln, We may, by Ignoring this tendency, giva temporarilv-increased value lo the stotes of silver beld in (iermany and France unul our murket absorbs them; but by ndopting a sliver staudard as nearly equal to gold as practicable, we make a murkes for our largo production of sllver, and furnish a fuil, honest dollar, that will bemeled. transported, or circulated, without disparageuient or re- roach, L It is respectfully submitted that the United States, already so” largely fntorested in tiade with all {mru of the world, anil bocoming, by its population, wealth, commerce, and produc- tions, a leadiog member of the family of na- tions, should not adopt a standard of less In- trinsic valuc than other commerclal nations.. Alike fntereated I sliver and gold, us the great producing country ot both, it should coin them at such a ratio und on such couditlons as will sg- cure the largest use and clrcuiation of hoth metals without displacing either. Gold muat necessarily be the standard of valuo in great transactions, from its zreater relative vatue, but it 18 not capablo of the alvislon required In sinall traneactions; whilo silver {s indispensablo for o multitude of daily wants, and {s tou bulky for use in the larger transactions of businces, and the cost of Ita_transportutlon for jong dls. tances would gereatly Increase tho present rates of exchange, It would, therefore, seem to ba the best policy for the present to limit the ag- gregato isaue uf,our silver dollars, based on the ratio of sixteen tu one, tu such sums as can clearly be mmalutained at parwith gold, until the price of silvor in the market shall assume a difl- nite ratlo to gold, when that ratlu should be adopted, and our colns mads to conforin to It and the Sacrotary respectiully recommends that he be suthorized to discontinue the colnago of the silver dullar when tho amuunt outstandlng shull exeeed 850,000,000, ‘Fha Secretary deems §b proper to atate. that, in the meantime, In tho exceution of tha law s it now standa, hie will feel 1t to be his dutyto ro- deem all United States notes prescated on and after Juu. 1 next, at the oMice of the Assistant ‘Treasurer of the United States in the City of New York, fn sums of not leas than 850, with elther gold or sliver colu, s desired by the holder, but reserving the legal option of the Governmeats and to oay out United Statos notes for oll otier demands on the Treusury, except whon colu Is demanded on coln Havlfls tles. It s duty ns au Exccutlve oflleor Lo frankly state his opinjune, so that, If he Is In error, Conur s inay preseribe such 8 policy as s best for the pablis luteres FUNDING, The amount nf 4 per cent bunds sold during tho present year, prior to Nov, £3, Is $100,270,- 000, of which 804,770,000 wete sold under tho Refunding act approved July 14, 1370. 8lx per cent bonds, commnouly kuown as 5-20s, to an cqual smount, have been redesmed, or will be redeemed o8 calls mature, ‘This beneticial process wos greatly retarded by the require- ment of tha law that subscriptions must be pald fn coln, tho {inconvenience of obtaining which, to the great body of the people outsldo of the large cities, deterred many sales, This will not affcct sales after resuinptlon,when bonds can be paid for with United States uotes, ‘The large absorption of United Btates sccurities In the American market, by reason of their ro- turn from Europe, tozether with the sale of 4 per cent bonds for resumption purposes, tendes to retard the sale of 4 per cent bunds. As trom the best advices, not mora thag £200,000,000 of United States bonds aro now held out of the country, it may be Iulrl{ antleipated that the lnnln of 4 per cent bonds hereatter will largely ucrense. Prior to May, 1877, United States bonds were mainly sold throuch ao association of bankars, Experience proves that, under the present plan of selling to all subscribers on terms fixed by public advertisement, though the agerogate of sales may ba less, thelr distribution is more factory. Under a popular loan the futere cst Is pald at bowme, and tho fuvestmont Is avuil- ablo at all thnes, without loss, to meet the necds of the holder, This poliey has been carefully fostered by other natlons, and ahould bo spe. clally so in ours, where every citizenequally par- Helpates In the goverument of bis country, ‘The bolding of thess bonds at bome, in small sums well distributed, Is of great wportance in cnlisting popular futerest tn our natfonal ered. It, and fu encouraglug habits of thrift; and such holding fn the country 1s far more stable ond Jees Hikely to disturb the market thau it wuuld be fu éities or by corporatious, where tue bonds can be promptly sold fn quantitics. "Thu three-mouths® public notice required by tho fourth sectlon of the Kelunding act to by Eiven to the bolders of the 520 bonds to be ro- deemed, nocessarily involves a loss to the Gov- erument by the pafmvnt of double Interest duriug that thue, ‘Ihe notice should uot be given until subseriptions are wade or are rea- sunably cestatu to be made. When they ara wade and the mouey {3 pald into the Treasury, whether it 1s kupt thero idlo durlog the three s or doposited with Notlonal banks cxiatine law, the Gavermnent not ouly piys tntercst un both classes of bunds during the wluuty davs, but, If the sules aro large, the tioarding of large sums may disturl the market, Under cxisting law this Is una- voidable; and, to tuiticate [t, the Becrotary deemed 1t expedient during the last sutnuier to ok calls fu auticipation of subscriptions; but this, though legal, might, in case of faflure of subscriptions, enibarrass the Uovernment in wayiug called bonds, The- loog notice required by law Is pot neceasary In the luterest of the holder of the bouds; for, as the calls ore made by public uotico, and the bonds are fndicated audd specitied by clase, date, and number, i the onder of thelr tumbers and tssie, he by ordinary altizence cou know betorehand whea bis bonds fn dus course will' probably be called, and wiil uot b taken by surpriso. ‘The Secretary thercfore recommends thiat the notice to ba glven for called bonds be, at his diseretion, nut less thau ten days nor more than three mouthe, In this wav he will beabls largely o avoid the payment of double ingervst, as well as the temporary coutraction of the cure r=acy, and ay tix the maturity of thocallat o thme when the luterest ol tue calica bunds te- cowvs due and payable. HBAVINGS, It has been the desire of the Department to pupularize the public loans, und Lring théw within easy reach of every dtizen who desires to fnyest bis saviogs, whother small or great, in these securitics. Tho ponulur loan of 1877, upen toall ahke by public sdvertisement, ub- sorbed 875,000,000 of 4 per cent bonds; aud duriog the present year these bonds bave been scld 1o the same manner. It {s bedieved that, without a change of exist. g law, tho sale of these bonds will largely lu- erease; but it would apfear advisable so to wodify the law tuat swaller sume tay bu fu- veated from thoe to timo throuzhs popular subd- scriptione, sndetnat through the Post-Otlices, or other uuents of the Uoverument, the freest upportunity may be given in all parts of the country for such investwents, 'be best wude suggeated bs, that the Depart- ment b authorized Lo fssus certiticates of de- pusit of the United Btates of the dewomivation ot §10, bearieg loterest ot the ruto of 3.63 per Coul Lee aunum, und coaveitivle at .uuy tiwe within ono year after thelr iseue Into tlic 4 ver cent honds authorlzed by the Refunding net, and to be {asued only In exchange for United States notes sent Lo the Treasary by mall or otherwire. Buch a provision of law, suppurted by sultable regulations, would coable sny person readily, without cost or risk, to convert his money Into an (Intereat-benring secarity of the United States, nnd the money so teceived could bo ap- plled to the redempiton of 6 per cent bonds, The Secratary therefore recommonds the prompt passage of such a law. ——— PTUBLIC MONEYS, The monetary transactions of the Govern- ment have been conducted without loss through the officea of the Treasurer, ten Assiatant Treas- urers, one Depositary, and 119 Natloual-Bank Depositaries, exclusive of those designated to receive any loan-subscriptions. Of the ontlre receipts of the Uoveroment, during the year, thero was deposited in National- Bank Depositories the amount of $09,731,053.48. Deposits recetved by the Bank Depositaries aro secured by a pledge of United Statea bonds held by the Treasurcr, and are paid out, from time to time, aa the convenlenca of the public servico may require, or transferreid by the bank, with- out oxponse to the (lovernment, to an Inde- pendent-Treasury oflice. By an act approved March 8, 1857, public dis- buratuz oflicers wers required to place all public funds intrusted to them for disbursement on de- posit with a Public Depositary, and to draw for the same only In favor of the person to whom paynient was to be maue, excopting that they, ight check In thelr own names when the pay- ments did not cxceed $20. The enforcement of this provision, necording to its letter, was found impracticable; and the nttentlon of Congress was called to 1t { the an- nual reports of the Secretary for 1857 and 1853, with o recomnendation for fts moditieation, No action {n the matter sppcars to bave been taken by Congress until the sctof Junc 14, 1864, reproduced aa Bee. 3,020, Kovised Statutes, was passed, ‘I'his appeared to supcrseda the act of 1857, in removing the restrictions as to the method in which the money was to be drawn; but, by an act avproved Feb. 27, 1877, Bec. 3,620 has been amended by requiring the checks to be drawn only in favor of the persons to whora payments are’to be mado. The object which the law cvidintly sceks to accomplish meota the catire apuroval of the De- partment; but to carry its provisions into effect would require Paymasters {n the army to draw thelr checka In favor of tho soldiers to be paid, Ly name; and Paymasters on naval vessels, sven durlog absonces for vears from the United Btates, to_ pay the officers and men only by drawing checks, in their tavor, on Depositartes {u the United States, The samo embarrassmont extends to all pub- 1lc dirburscmonts; and the attootion of Con- gress (s called to the matter, with the recome mendatfon that the scction be so amended that disbursements oy bo made under regualations to be prescribed by the Becretary of the Trensury. NATIONAL BANKS. The report of the Comptroller of tho Cur- rency presents full and faterestiog information 08 to tho Natlonal banks, The number In ex- istenco on Oct. 1 was 2,053, The amount of their clrculating notes outstandiog, fncluding those In liguidation, was $333,147,719; the capl- tal invested was $300,147,430; the surplus fund and profits were $157,830,003; the losns and dlscounts wero $830,531,542, This system of banks, though of recent growth and adopted as an experiment amid the necesaities developed Ly the Civil War, hos, un- dor wies mauagement, become tho *most impor- tant business-agency in the country. Though still under trinl, and subject at ail times to the diseretion of Congruss to discontioue and Huit its ecxistenco and operations, It may be falrly claimed es alreudy cetablished by experlment, that tho system possessca certain ndvantages over any other heretofore oxlsting {n this coun- try, and possible only with a Natlonal system. irst—The security of the bill-holder from loss througlt fallure of the bank. Second—The rapldity snd vertaioty of the do- teetion and prevention of counterfeiting, from tho fact that the notes are engraved, printed, and redeemed at the Treasury Department, Third—The {requent and careful examination of tne banks, and the publication of the detafled statements of their condition, Fourth—Uniformity and free clrculation of the notes throughout the United States, with- out respect to the place of thelr Issue. ifth—The admlirable provisions by which fulllbe bavks are placed in liquldation, uud their nsscts chienply and promptly applicd to the pay- meut of eredftors. These and other advantages derlved to the Eubll:: from & National system of banks ovor a tate system scem to be fully demonstrated, and, though frksome and apparéntly bard tothe banks, are a beoefit and security to the stocke botders and a ln!ef;uml to the publie. ‘The vnly franchise conferred by this syatem, that cannot ha freely enjoyed by private baokers under Statg law, s the power to {saue clreulat- ing notes, This, it _{s conceded, is u tranchise conferred by thie Government, but it is not the natare of o monopoly. It may bo exe: by any five persons who have the meaus and will comply with the law, ‘Whether tho power to lasue circulating notes should be granted to private corporations, or he exercised only by the Government, Is purcly a question af public policy and public juterest.” In behalf of a circulation fasucd by the Govern- ment, it s cisfmed that interest 1s saved to the public on the full awount of the notea {ssued. ‘T'o this it 18 roplied that the lssua of such notes nceossarily lnvolves thelr redemption in coin, and this can be sseurcd only b{‘ coln reserves and the ordinsry machinery of banks. . If the banks [ssue notes, they expect to derive a profit from thelr loan; but this profit is diminlshed by the burden of redemr\lnn. by tho large tuxes imposed upon the franchise, and by the risk al- waya incldent to the [ssue of circulating notes, ‘Ihesu are cousiderations which will, no doub eater fnto tho guestion of the perinanency o tho Nattonal-Danking system; but, as the banks of this system are each organized under the law for twaiity Yun. an0d none of them explro uotil June, 1858, it is respectfully subinitted that it is pood policy to continue the experiment until that dnte, when the Puhlta tnind will be betier prevared to consliler tho questions involved. ag COINS AND COINAGE, ‘The annual report of the Director of the Mint extilbits in detail tho operations of the several Sltota ana Assay-Oflices, and also presents lne teresting Inforination relstive to tha production of gold and silver fn the Unlted States, the vs- timated smount of jold and silver coln and bull- fon in tho couutry, the depreciation of sitver, tue position of the Amerlcan trade-dollar (o the Orlental trade, and other subjects counected di- rectly or indirectly with the colnage: ‘The valne of Yha gold colnago executed during Whe INet 04cal YEAr Wad. ..., ... 853, 708, 08000 Of trade-d 1 orey Of standard-aliver doiis; Of fractional-siver colu, And of infuor cola.. A total cotuage of, o0 881,120, 490,50 Tu addition to the colnage, fine and unparted bare were preparcd fordepositors 1o tho alount of $12,501,020.23 in gold, and $11,854,085.87 in silver, It ls manifost, from the proven capacity of the several Mluts, that our coluage facilitles aro ampla for ail purposes. . ‘e present production of bullien from the mines of tho United States abpears to upproxi- mate $100,000,000 ju value, All the gold bullion produced lu the country contajus morc or less silver, and the greater portion of the silver butlion frowm our nines contains & perventage of gola, waking it . ditleult to determine with ace curacy the proportion of esch. It is sute, how- ever, to state tuat the productivn of the two metals, caleulated at tholr coivivg rates, fs ucarly equal. Duriug the F“' 1877 and the first few montha of the prescni year, trade-dollars, tothoamount of prabably 4,0,0C0 pieces, were plaved {n cire culation in"the Btates east of the Rocky Mount- aing, with a full knowledge ou the part of the partics envaged In business that the colu was not a legul-tender. “This culn 18 In 1o sease money of the United States which the Governnient Is bound to re- deem or caro for. The Goverument stump uoon it §u to certily to Its welghit oud tineness for the wouveulenes of dealers [ sliver bullios. It is preckicly Hko auy other silver bullion asiayed at any Assay-Uflice or Miut. Tus limited tegal- teader quality origlually given to it wos taken awey belors any of the colns were put lmo Guestic dreulation, and i should not now ba &iven uuy value or attribute ut the expense of the public that ia not incldent to amy other silver bulllon, The Government has reccived uo benelt from this coloage, aud bas ucither res ceived it nor paid i out, 'The whole cuspection of the Goverumens witi tis bullioy was 1o ver- form the wechanleal work of sssayiug snd divid- fng 1t into coavenlent form for the werchant, ot lml cnat, aod for bis benefit, for exportation ouly, Kecent advices from our Miuister to China {n- dicate that » considerablo awount of trade-dul- lars {s now belug hoarded In that Empire, sud will ve returned o us If a discriwination s wade in their tavor over other bullion. No dis- tluctlon can bu ‘nu.ln between trade-dotlars la tle Unjted Btatds aud thoss out of the Unlied Statesi Lut, U redecued st all, they must sl be redeemed alike, The bullion fn 35,859,900 trade- doliars outatanding can now bo purchased from vur tincrs for 831,250,050, It would be a man- ifeat injustice to deprive them of our market for thelr builion, in order to diseriminato in favor of bulllon coined for pxportation and held chiefly In forelgn countries, At times tho fractionnl cofns of the United Btates accumulate at certain places and are wanted at others, It 1s recommended that this Department o authorized to redeem them In United States notes when presented v autns of ), or any multiple thereol, at the Mint at Philadclpbia, where they can be recofied, If necesaary, and distributed. ‘The aount of gold coin and butllon In the country Sept. 80 Director nt 825,304,500, and ol allver coln and bultlon ut 82,000,357, —a tutal ol $358,443,047, The ultlmlfln1 of the production of the precleus metals {n this country, aud of the amottnt of coln and hulllon, Iss matter attended with great difficulties, and the vstimates can anly bo regarded as approximately correct, though they have beon complled from the best attainable sources, ¥ reasun of the acts nuthorizing this Depart- ment to purchase gold and silver bullion at the scyeral Mints and Assay-Ofiices, its transportd- tion 1s thrown upon the Government. The groat body of tha bulifon accumulates n San Francis- co and Carson, and the chief transportation ls from those places to New York, «florts were nade to securs favorable rates, but the lowest offer 310 of 1 per ceut for finld, and 1210 per cent for allver, which was deemed to be exaesslve. Bilver coin and bullion can bo trunsported with bat little risk, whilo, at the rato nroposed for transporte fog & car contalning $250,000, or about cight tons, the cost would Le $3,000, The chief cost is In'the transportation over the Central aud Unfon Pacific Rajlroads, both largely indebted to tho United Btates. It 1s respect{ully submitted that the rate oyer thess roads Le prescribed by Congress, and that the pruceeds form vart af :.hn sinking-fuud of sald ‘ralironds, provided by L1 BUREAU OF ENGRAVING AND PRINTING. At the close of ths Jast flscal year thers was an upexpended balance of $852,830,17 of tno appropriation for labor and other expenscs of this Bureau, Of this amount, in sccordance with the act approved Juno 20, 1878, tho sum of 8327,530.50 will be expended la tha purchase of 8 site for aud the erection of a flre-proof bulld- fog for the Bureau, tha work on which Is now progressing satiafactorlly, and will probably be completed during the fall of 1870, It ls ps- sumed, from tho action of Congress at its luat session, that 1t holds that tho engraviug and printing of the public securitles can bs more clnupl{; perfectly, and safely done in this Bu- resu thon in private cstavllshments; and the Becretary has, thercefore, directed that all work of this descriptian, except certatn proprietary stamps, shall bo done thereln. The cost of the wark {8 lcss than one-half the prices previously paid. After careful Inqulry, {t bas been nscertalued that the prices vald 1or the paper used for pub- 1lc sccuritics are groatly in excess of fta cost, and proposals have been fuvited for the mana- facturo of a suitable paper, of a distinctive char acter, for this purpose,~no actlon upon which has yet boen takun, DISTRICT OF COLUMBIA, The act of Congreas of last seasiun, providing a permauent form of government for the Dis- trict of Columbla, committed Congress to au appropriation for the fiscal year ending June 80, 1870, and for futurc years, so long as suid act should remaln in force, of one-half of the coxpenses for tho government of sald District, as estimatos thercfor should be spproved by Congrces. It also provided that all taxos collected should bo pald into the Treasury of the United States; and that thoy, aswell asthe apprupriations to ho made by Congress, abould be disbursed for the expenses of sald District on Itemized vouchers, audiced and aporoved by tho Auditor of the District, and certifled by sald Commilasioners, or a mu- Jurity of them; and that the accounts of sald Commissioncrs, and the 'I'nx-Collectors aod all other officera required to account, should be sctiled and adjusted by the accountivg oficers ‘E’{u the Treasury Department of the United tes. . A provision was, lowever, enacted that the {nterest on tha .05 bonds of the District should be paid by the Becretary of the I'reasury, and credited na part of the appropriation for the year by tho United Btates towards the District’s ex- ensecs. P Tho act was approvea June 11, 1878; and the approval was conscquently too uear tho end of the sosslon of Concress to have estimates pre- pared for the fiscal year ending June 80, 1570, in conformity to the provisions of safd act. The Cowinlssioners of the District had, how- ever, on tho 21st of January, 1878, submitted estimates to Cougress, amended alterwards by them on the 4thof Juno of that year, for the gencral expenses of the Distrist for the flscal year ending Juno 80, 1870; and Congrzn,;:; the Bundry Clvil act, approved Juno £0, 1873, approprlated for the general expenses of tho District 81,250,000, to be disburaed by the Com- missioners for tho purposes sct forth in said last-nanied estimatos; aud the Hecretary of the ‘Treasury was authorizod to advance, from time to time, Lo sntd Commlssloners, from the money thus nprmprh(ad, such sums &g, in bis Judg- ment, might bs neccesary to carry on tho gove ernmont of the District, includlvg sccruing Interest on bonds. It has beeun held by the accounting ofilcers that these acts are to be construed together ns parts of ono scheme of leglslation. It will ba werecived that the disburscments made by the ominisslaners are to be rewrulated and limited by estimates approved by Congress; that ac- counts are to be kupt by the Comtnisslaners of tho District, indepondent of thoss kept by the ‘Tax-Collector and other offlcers. 1t has also been held that all disbursements for the cxpenses of the District, :xuc‘:’:\rhrru othierwise particularly specitied, aro to be made by the Cominissioners; that these disburae ments are to be regulated and lhmited by espl mates approved by Congress; that an aceurate account 1s to be kept by the Conpnissioners ol recelpts and dlsburscinents; that they aro to be made upon vouchers, sudited sud approved by the Auditor of the [Mitrict, and certified by at least two Commlssioncrs; that tho accounts of the Commissioners, with thy orleinal vouchers for dlsbursoments, are to be Umitted to the nccountlne officers of ths “Ureasury Department of th settlement and adjustiwen ud $hat advsuces far the payment of the current cxnanses of the District are to be made to the Commlssioners, fromt time to tune, by the Sccrotary of the ‘Treasury, us hoe shall apjrove requisitlons mado 13 estlnated by the , by them. ‘This construction has been adopted after o careful examinatlon of the scts, and will be cantinued uniess Conzress shall signlfy its dise approval by additivual legislation, . CLAIMS, Tho attention of Congress s azaln called to the necessity of some legislation as to the ad- Judication of ¢claims which are now within the Jurisdiction of this Department, m Whutle the Department is well organized for the Inveatigation of accounts accruing fn the or- dinary course of current business, it is not adapted to the examination of old and disputed clalms of a different character. For the proper investigation of such claims the methods adupted in all our Courts for ascer- talnlng the truth aro undoubtediy the best, For this purpose, & tribusal which will require the bost evidonce of which the uature of the case will admit—tho productlon of original papers rather than protended coples, the sworn state- mept_of tho witness himself to facts in ls own knowledge, and not the bearsay of thind partius, the examination uwnd cross-cxamination of the witness, not bis exparte statoment privately taken, & public ring, sod a public record of porecedings open ta lupection—1s esdential, ‘Fhese are some of tho salozuards whlch the expericace of the wisest leclslaturs bas placed around the judiclal Investization of questivos of law and fact. it 1s ovideut that this Department cannot fur- nish thewo wafeguards; sod s provision uf law which will relieve the Departiocat of all linpor- tant disputed Puul\um ol law and fact s ree- ommended. ‘Tho Court of Claing 13 a tribunal well quahitled for such jurisalction. It has the prostizeof 8 Court of Justiee; its Judues are sppointed for Ilfe. sud transact their business duliberately, systemutically, aud publicly, They ure puverned by tho ordinary rules of law, and their declatons are of record, with an sppeal in prué‘er cascs to the Buprems Court ot she Unlt- ey Btates. Iu thls connection, your attention Is fovited totle lmportance of providing some hmitation of time within which clulms ngainst Individuals snd azalnst the Govergment shall bo prosecuted, or, for want of such¥orosccution, be furevir barved. Buch Jmitations, which form past of tho codes of all civillzed pations, rest partly upon the theory that the public peace demands ou end of litlgation, Lut mainly upon the well- founded asswinption that o deisy beyond a rea- ronsble time to prosecute a clain furolshes o presutaption that it s uofuunded. Even a4 to real estats, au acoulesceoce In o kuowa adverse posscssion for twenty years, In wmost of vur Statcs, furokhes a conclusive bar to the ulalin of any pereon out of posscssion. Ths lialiation of "six years wfter the clafa United States for- " A bl will be preparcd and submit a nlnn-l. the Government first o Sy e Govern corties, o ed by inwin the Uourt of Glaims, séeme ! m{;m;x:hlm 3766 A ol b ith reaal 0 the clalma In fag, Government, especlally againat those -';yé"nfi' executad bonds an surcties, it seems Just n,' some Prorlslnn shotld be made for {he |,rn1.-l: tion of tha defendants, Cnscs frequently s whera rnlte aro hrought agaitst a suroty upoy ¢ bond, upon the reviston of some account uni‘w. has been apparently finally scttled for iy years, where the principal and othe; 14 T Miire havo dled or are fnsalvent, and whore ""f'(‘l"]‘“" ermnent slionld hava enforced it claimg whyy they wero nltve and solvent. In auch cage only rellef which the Becrotary rln‘(‘-:l.:fin.ln;“ under the gencral law authorlzing Compromiacs, —a renedy subject to much doubt ang emb:l:' T teintatt this sub ; cgiclation upon this subject alinuly to the quicting of old elnlmn,J‘a'llcllxn:”nlclfi;fl: ur fn favor of 1ho Giovernient., A deljuo thade as final by tho accountin:s ofilcer, or | the Secrotary, or ather offlcer of this I)mmn'. ment having jurisdiction, should bo regarded gy final, both i the Depariment and In all oty tribunals: and all propositions providing for tha re’vlnlulnhlnll‘he Court of Ult\l‘;nn or clsewhers, of such declslons, are opposcd to the tr . clplos of Tegisiution. e gy . e, DUTIES ON IMPORTS, The embarrassments alluded to In the Jagt an. nual report In regard to the collection of dugiey on sugar have not coased. Bolzurcs have beg made cf cargoes of sugar clalmed to be artt. ficially colored for the purpose of reducing the dutles at tho Custom-House, anda sultinvolying one of thess cases was tried at Baltimore it great expense to tho Government and to the Ime porters, and wasrecontly concluded,—the verdiy beln that the sugars were artificlally culored Alter tho prucess of manufacture was completed, but that it was ot proven that the {mporter of the suars had a knowledgo therdof at the timy of making entry, Though the clain of 1y Government, that the suzars hind heen artifiels]. Iy colored for the purposs of defraading the revenue, {8 mmntained, It 18 puwerless, undep the Anti-Molety act of fune 23, 1874, 10 enfores fiucs, penalties, and forfeltures, azuinst persony or property, unless there Is .proof of gullty knowledgo of fraud, It is deemed imperative that some change [y themode of collecting dutics on sugar shouly be had; and {t Is preforred, as stated in the jagt report, that the duty should be at one rate og all sugars, up to & polnt which wili excludy temptation elther to colorsugar for the purpow of reduclog’ tho duty, or tocommit (raud Ly means of “sampling” and claseitlcation. Tiy duties now are, to alarze extent, deyendeny upon the fidelity of tho samoler,—ons of thy lowest-pald oflicers in the public ecrvice, luthe event that dulica upon sucare ar made dependent to any constderable extent up. on color by the Duteh standard, ILt1s recom. monded that authority be given to this Dejar. ment to ascertaln the true saccharine strengty of {mparted suzars by means of the polariacope, and that tho ralations between tha calor o sugars nnd thelr saccharine strength be defile. 1y preseribed by Congrress. _In this councetion tho attentlon of Congroy 13 called to the operations of the Reclprociy Treaty betwaen Hawali and the Uniied Starey, coneluded Jan. 30, 1576, The value ol goudt shipped 1rom the Unlited Btates to Hawalt For tho year ended Dec. 31, 1875 (the yecr efore iha Lreaty went Into oparwlon), w And for the yoar ended Dee, ul, 18577 ... Excess In 1477 over 1973 ..., seee The s’ surrendered by i ih® #1239 ‘Tresty on goods imported fnto the United Hlates ar euded Dee. 31, 18477, B 17 < | Difference hetweon dutios remitted by the United Btatcs in 16i7, and value of vxcess of Importa I 1877 oveT 1873, 18,61 in an amount greater than the entirg cxcess of er porta In 1877 aver those of 1573, Of the dutles thus aurrendcred n 157, 8710,732 was on sugars slone. Tho advantazer liave thus far not been reclpracal, but, as hay been shown, have been larcely In favor of Hawail, and it s Prnhnblo that the benetits la favor of Hawall will Incrensa Jarzely, While not recommending a genéral revisto of tho tariff at the present time, it is deemed important that upon somearticlestne ad valoren dutles now assessed should bo converted luto specific duties. As a rule, speeiflc duties are te be preferred to either ad valoremjor compound rates, and, in any future revision of the tarifl, i| 18 hoped that Coneress will give preference jo this system of {mposlug duties, us far as pran ticable, ‘The arguinontin favor of specific du- tica applies with great force to kid gloves, con cernlog the value of which, under the present ad valorem duties, sorious differences of opiulca have occurred between the inporters and toe Govornment during the past vear, which have led to protracted delays in the ascertainmes! of tho dutablo yalue, und consequent njury te the mercantile community. While It may not bu practicable to frame s specific duty which would be entlrely cquitabi upon all classes of lenther gzloves, It 1s bellered that such specifle rates of duty can be levied as, whilo ylelding as much revenue ns the present rate based upon the market-value, will make s Juat distinction between the higher and fower &rades of gloves, and avold the uncertainty ans contention produced by the preseat duty, Tho auh']vct of specific dutiue upon slik plecer ods In also commended to the consideration of congress, 'The efforta of the Department to collect dutles on silks upon such a basia of value as shall meet the demands of the present lav have not been attended inull cases with success. The law contemplates Lhe assessment of dutyoa the market-valuo or wholesale price, and pre supposes a price st which any person in the ordinary courss pf trade may purchase the guuds, ~ European manufacturers of allks con- zn thele goods to agunts tn this country for le, and no eales for shipment to the United Btates are mads ln the open foreigu narket of such goods. Cousequently there s po basis upuudwulcn their dutiable value can be sscer- tained, 1t 18 bellovea that Involces of goods consigned tothe United Btates for salo are asa ruls un- dervalued, aud that by such consigunicats the tradu i sliks and kid gloves i3 kept withia the coutrol of o small munber of comnisslon-nee- chants, while the massof American fmporterd are excluded therofrom. ‘This fuulty svaten has had the effect, It not so dvalined, Jarzely to defrand the revenus, and 1o cuable the fuw wi coutrol the business to luvolce thelr goods st the lowest rates, and to commund the higheit rates (rom puripascrs. P Tho adoption of specitic duttes would plae the Importer who purchases in the forelzn mar- ket, uud the manufacturor who ships hia gwls an consunient, uvon an vqual foutlns ot tos Custom-louse, and obviate tho dilliculties 12 colleetinr the revenuo oo this class of goodi. Exswinations made duriug the past yessd the ofticers of this Department huve led to the conviction that thy present provisions of Jaw al- lowing abatements of dutics on gecouut of dam: agu to fmported merchandise on tho voyage of fuportation, ara neitber, upon the wholc, equit- able to the importer, nor fust to the Quern- ment. The extent of such damage on many clavacs of wouds can ouly be conjectured; and hys been ulleged 1has larger atlawnuces bars beon made ut some ports than ut otbers, ou goods of tho same clasy, which occupy sbout tie same timu I trunsit from tho forelen market. The repeal of all laws allowing damuzo upod the vuyage of lmportution would place ull per- sous ypou au cqual foutlug, as loss by daniage can by guarded agafust by prior lisursnce. There o reason to bolteve that thu larger - rting honsus of the United States would glsd- favor such a iweasure, and fts aduption i therclore recommeunded. ‘The coutinued experlence of this Department during thie past yeur bas Justified the recow- mendation made fu the fast”report o favor of such a chango In tho law as will offer incret Inducatgnts to parties who insy be sble 0 secure a knowledge of frauds upon the customs ruveuue, to bring [t to the atiention of 1be custons-ofilcers, ‘The pecuntary inducements which this De rimiont Las beon able to offur under existiog aws havo not been sulllciont to tnduce parties 10 miake wctive cforts to search out such frau and bring tho offeuders to punlslmeunt, T Bocretary does not recommeud a return 1o ¢ ‘ systew which prevalled prior to tho passagy, of tha so-catled Anul-Slotety act of Juua 23 15T 80 faras that system conferrod largo emolt ujouts upon officers uf the Government; but be s satistied that additlonal Jegislation I3 "“,“ sary In order to place witbin the control of thié artment the machinery necossary to develod proof of frauds, which under any system custome-dutics are hikely Lo arl Thers appears 10 be a nccessity for the m?w tion of some tneusurs by Conjress to securd greater eliclency aud unllonmity in appralse ments of imported merctiandise. Under the present svstem, exch local Agi pratecr 1s fudepcndent, aud has no knowledze & Ll actlou takeu by Avpralscrs at other port upoi the urtivles which he (s calied uoon wxm; prass. It thus occurs that the values (ullf[l' o the various ports are not at ull _thnes uol unl. upou the sanio class of goods. It fs ulsu 8 DA ter of fruquent vceurrcoce that uwn-bandlw‘ ¢lasallied uuder one rate of uut{; atoue uur”- whilo at otbier ports it Is entered by o Jufirc!» pame, and subjected to & dilferent rote fl‘wu! ’: vroper Commitiee of Cougress to renedy i and uther defects In tho present wachivery i collecting the customa-reveuue. = Every possible cflurt has been made dur: the past year to reduce tue expenses of wolet {ug the revonuu from custows, with the already stuted. ‘Thery are wany cistuil trivts, Bowever, Which might beabullansl &7 Ju which the dutereats of the Covertiasas i ing -